NOTE 21– INVESTMENT IN BIOCHAR NOW, LLC

In September 2017, the Company entered into loan and equity purchase agreement with BioChar Now, LLC (“BioChar”) which provided for an initial loan of $300,000 by the Company to BioChar and a subsequent loan of up to $7.7 million made or arranged by the Company. In exchange for these loans, the Company is entitled to repayment of all loaned capital and up to a 20% equity interest in BioChar, obtained as the loans are made in proportion to the  amounts the individual loans represent of the full $8 million proposed loan. The Company has no fixed commitment to fund any losses of BioChar and has no investment basis in BioChar, therefore the Company has suspended the recognition of losses under the equity method of accounting.

The Company made the initial $300,000 loan on September 14, 2017 which bears interest of 6% per annum and is repayable out of sales of product gross sale proceeds from BioChar’s Berthoud, Colorado facility beginning six months after receipt of the loan. If the loan is not repaid in full after 18 months, the interest rate will increase to 12%. As of December 31, 2017, the Company impaired the full amount of the $300,000 note receivable due to the absence of necessary gross profit from BioChar’s Berthoud facility to commence monthly installments are required under the note.