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Note 16 - Subsequent Event
12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Subsequent Events [Text Block]
NOTE
16.
SUBSEQUENT EVENT
 
On
March 27, 2020,
Net Element, Inc., our Company entered into a Master Exchange Agreement, (the “Agreement”) with ESOUSA Holdings, LLC. Prior to entering into the Agreement, ESOUSA agreed to acquire an existing promissory note that had been previously issued by the Company, of up to
$2,000,000
in principal amount outstanding plus interest due to RBL Capital Group, LLC. Pursuant to the Agreement, the Company has the right, at any time prior to
March 27, 2021,
to request ESOUSA, and ESOUSA agreed upon each such request, to exchange this promissory note in tranches on the dates when the Company instructs ESOUSA, for such number of shares of the Company’s common stock (“Common Stock”) as determined under the Agreement based upon the number of shares of Common Stock (already in ESOUSA’s possession) that ESOUSA sold in order to finance its purchase of such tranche of the promissory note from RBL Capital Group, LLC. ESOUSA will purchase each tranche of the promissory note equal to
88%
of the gross proceeds from the shares of Common Stock sold by ESOUSA to finance the purchase of such Exchange Amount from RBL Capital Group, LLC. Each such tranche to be
$148,000
unless otherwise agreed to by the Company and ESOUSA. The Company received its
first
tranche of
$148,000
on
March 27, 2020,
less any fees.