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.
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ITEM 1A. RISK FACTORS
This item is not applicable to smaller reporting companies.
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