On February 29, 2012 we lent $50,000 to Ellamate, Inc., a third party that is also a customer, under the terms of a $50,000 Promissory Note. The note, which bears interest at 12% per annum, is due on August 28, 2012. As additional interest to us under the note, the lender will pay us 3% of their “residual” income over the term of the note. Residual income is defined as income derived from the profits generated by merchant service fees from the processing of credit and debit cards along with online ACH (automated clearing house transactions). A copy of the note is filed as Exhibit 10.28 to this report. We funded this note through proceeds we received from short-term borrowings during the quarter as described earlier in this report. The Company believes that the additional residual income on this note will yield up to an additional 30% return on is note beyond the 12% base interest.
You don't need to be a bank to lend money to make money.
Company is fully compliant with all rules, regulations, and reporting requirements. Breaking no laws. Please see Exhibits 31.1 and 31.2 of the most recently filed 1Q12 10-Q.
All consulting agreements, notes, etc. are filed with the quarterly or annual reports as exhibits. Everything that happens is disclosed. If you spent as much time reading as you obviously do speculating you might feel a bit better. See following link.