Annual report pursuant to Section 13 and 15(d)

Note 5 - Commitments

v3.20.1
Note 5 - Commitments
12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
Note
5
– Commitments
 
Consulting Agreements
 
On
November 13, 2017,
the Company hired Ramez Elgammal as Vice President of Technology. Mr. Elgammal will lead new business development and sales initiatives for the Company’s proprietary liquid silicon precursor, CHS. The
one
-year consulting agreement was effective as of
November 15, 2017
and continued in full force and effect through
November 14, 2018
whereupon the agreement was renewed on a month to month term. Under the terms of the agreement. Mr. Elgammal is compensated at the rate of
$125
per hour. The Company paid Mr. Elgammal a fee of
$22,188
and
$58,063
for the years ended
December 31, 2019
and
2018
respectively.
 
The Company entered into a
one
-year independent consulting agreement with Concordia Financial Group (“Concordia”) effective
August 1, 2016,
and month-to-month thereafter. Under the terms of the agreement, Concordia will provide business strategy services by assisting the Company by reviewing and evaluating the Company's plans, personnel, board composition, technology, development of business models, building financial models for projections, developing materials to describe the Company, developing capital sources and assisting and advising the Company in its financial negotiations with capital sources. Concordia also advises with respect to effective registration of offerings of Company securities, the management team, the Company's development of near and long-term budgets, marketing strategies and plans, and assists in presentations related to the above services. Concordia is paid an hourly fee of
$185.
The Company recognized expense of
$68,247
and
$54,483
during the years ended
December 31, 2019
and
2018,
respectively. 
 
North Dakota State University Sponsored Research Agreement
 
The Company entered into a Sponsored Research Agreement (“SRA”) dated
August 14, 2015
with North Dakota State University Research Foundation (“NDSU/RF”). With the proposed research for this project, NDSU/RF planned to make prototypical compounds and materials from CHS and CHS derivatives with the potential;
1
) to act as efficient photoactive materials for solar cells,
2
) to serve in electro active devices for optimization of current and voltage performance,
3
) to perform at high levels of efficiency as silicon anodes in lightweight batteries (silicon has more than
11
times the capacity of carbon in the ubiquitous carbon based batteries), and,
4
) to be incorporated into specialty inks for printed electronics applications. The research was conducted
August 14, 2015
through
August 31, 2016.
The Company agreed to reimburse NDSU/RF for all costs incurred in performing the research up to a maximum amount of
$70,000.
On
June 7, 2016
the Company and NDSU/RF mutually agreed to amend the SRA. Under the terms of the amendment the term was extended to
June 30, 2017
and the consideration was increased by
$120,000
to a maximum amount of
$190,000.
 
As of
December 31, 2019,
the remaining balance of the SRA to be paid under the terms of the agreement is
$93,578.
  As of
December 31, 2019,
and pursuant to the SRA, Coretec was in arrears on the payment of that obligation. Accordingly, as of
December 31, 2019,
Coretec would be considered in default under the SRA because of the unpaid obligations, which could allow NDSU/RF to exercise various options under the SRA, including an option to terminate the SRA if we do
not
cure the default within
10
business days after receiving written notice by NDSU/RF.  Due to Coretec’s belief that certain obligations of NDSU/RF were unsatisfied, Coretec has actively communicated with NDSU/RF in order to determine what obligations are owed and what actions all parties are required to take, and will agree to take, in furtherance of the SRA. In connection with such objective, Coretec has sent NDSU/RF a detailed communication setting forth, among other things, the basis for its belief that (i) the payment obligation was
not
due to NDSU/RF; and (ii) NDSU/RF does
not
have the right to enforce a default.  As of the date of this report, there have been
no
legal proceedings initiated in connection with the SRA.  However,
no
assurances can be made that the active communications between the parties will result in a resolution or that legal proceedings will
not
be initiated in the future.