Red Cat Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 10 - Notes Receivable

Note 10 - Notes Receivable	12 Months Ended
Dec. 31, 2013
Notes
Note 10 - Notes Receivable	NOTE 10 - NOTES RECEIVABLE During 2013 the company sold its working subsidiary Pipeline Nutrition U.S.A. Inc. to a related party and delayed the collection of a note receivable from December 31, 2013 until December 31, 2014 in exchange for increasing the note to $135,000. In addition to delaying on the collection of their note the Company will receive $165,000 in total, $5,000 in February 2014 and the balance of $160,000 at March 1, 2015. This note has an 8% stated interest rate payable upon maturity of the note. Additionally the Company will receive royalties from all future Pipeline sales at an agreed upon formula after payments of the note.

Note 10 - Notes Receivable

12 Months Ended

Dec. 31, 2013

NOTE 10 - NOTES RECEIVABLE

During 2013 the company sold its working subsidiary Pipeline Nutrition U.S.A. Inc. to a related party and delayed the collection of a note receivable from December 31, 2013 until December 31, 2014 in exchange for increasing the note to $135,000. In addition to delaying on the collection of their note the Company will receive $165,000 in total, $5,000 in February 2014 and the balance of $160,000 at March 1, 2015. This note has an 8% stated interest rate payable upon maturity of the note. Additionally the Company will receive royalties from all future Pipeline sales at an agreed upon formula after payments of the note.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

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