Innovation Pharmaceuticals Inc (IPIX)

[Rdunn88]

LR, I found the compensation agreement between CTIX and Leo. Leo clearly has enough ownership between shares and other rewards to survive any down-fall to this company. Of course, the patents have to be worth what someone would be willing to pay, while the little shareholders lose everything... When Ihubers keep saying CTIX has 8 million in cash, they forget to subtract out the liabilities. Over 2 million is owed to Leo as interest piles up.

http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10908731-949-400609&type=sect&TabIndex=2&dcn=0001477932-15-005843&nav=1&src=Yahoo

11. Note Payable – Related Party

During the year ended June 30, 2010, Mr. Ehrlich loaned the Company a total of approximately $973,000. A condition for this note was that the Ehrlich Promissory Note A and Ehrlich Promissory Note B be replaced with a new note, Ehrlich Promissory Note C . The Ehrlich Promissory Note C is an unsecured demand note that bears 9% simple interest per annum and is convertible into the Company’s common stock at $0.50 per share. The note requires that the interest rate on the amounts due on Ehrlich Promissory Notes A and B be changed retroactively, beginning October 1, 2009, to 9%. On April 1, 2011, the Company amended the Ehrlich Promissory Note C and agreed to retroactively convert accrued interest of approximately $97,000 through December 31, 2010 into additional principal. During the year ended June 30, 2011, Mr. Ehrlich loaned the Company an additional (approximate) $997,000 which brought the total balance of the demand note to approximately $2,002,000. During the year ended June 30, 2012, Mr. Ehrlich loaned the Company an additional $20,000 which brought the balance of the demand note to approximately $2,022,000.

F-17


On May 8, 2012, the Company did not have the ability to repay the Ehrlich Promissory Note C loan and agreed to change the interest rate on the outstanding balance of principal and interest of approximately $2,248,000, as of March 31, 2012, from 9% simple interest to 10% simple interest, and the Company issued 2,000,000 Equity Incentive Options exercisable at $0.51 per share equal to 110% of the closing bid price of $0.46 per share on May 7, 2012. Options are valid for ten (10) years from the date of issuance.


At June 30, 2015 and June 30, 2014, approximately $73,000 and $237,000 was accrued as interest expense on this note.


At June 30, 2015 and June 30, 2014, principal balances of the demand note was approximately $2,022,000.