Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS
In April 2019 the principals of WeSecure filed a lawsuit against the Company in California
Superior Court seeking a total of $199,358 plus attorney’s fees and damages. The total included claims for the non-payment of a
balance from the sale of WeSecure assets to the Company, unpaid consulting fees payable to the two principals of WeSecure, and labor code
violations. In June 2019, the parties settled all claims for $180,000, payable in 14 monthly installments, and a full release. The $122,000
balance owing at February 28, 2021 was paid in full on March 17, 2021.
The related legal costs are expensed as incurred.
ITEM 1A. RISK FACTORS
This item is not applicable to smaller reporting companies.
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