What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2021-09-29 compared with 2020-09-22 · 48 added, 26 removed, 6 unchanged (93% of the section changed)

LEGAL PROCEEDINGS.

The Company is currently involved in no

litigation matters.

On September 25, 2014, Pennvest exercised

its right to declare the Pennvest Loan in default and has accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal,

interest plus late charges) on or before October 24, 2014.

PA1 did not make the payment and does not have the resources to

make the payment demanded by Pennvest.

During August 2012, the Company provided Pennvest (and the PADEP) with data demonstrating

that the Kreider 1 system met the ‘technology guaranty’

standards which were incorporated in the Pennvest financing

documents and, as a result, the Pennvest Loan is now solely an obligation of PA1.

However, the Company’s consolidated

balance sheet as of June 30, 2020 reflects the Pennvest Loan as a liability of $9,585,883 despite the fact that the obligation

The Company is currently involved in no litigation

matters excerpt :

On September 10, 2021, the Company filed a federal lawsuit ‘in rem’

to recover the <biontech.com> domain and the unknown ‘John Doe’

who hacked and attempted to steal the website.

The litigation

has been filed in the United States District Court for the Eastern District of Virginia, Alexandria Division under the heading ‘Bion

Environmental Technologies, Inc., Plaintiff, vs John Doe and <biontech.com>, Defendants’

1:21-cv-01034), seeking

recovery of the domain name and other relief as set forth therein.

On September 25, 2014, Pennvest exercised its right

to declare the Pennvest Loan in default and accelerated the Pennvest Loan and demanded that PA1 pay $8,137,117 (principal, interest plus

late charges) on or before October 24, 2014.

PA1 did not make the payment and does not have the resources to make the payments demanded

PA1 commenced discussions and negotiations with Pennvest concerning this matter but Pennvest rejected PA1’s proposal

made during the fall of 2014.

PA1 made a new proposal to Pennvest during September 2021 which proposal is presently under consideration

PA1 provides Pennvest with its financial statements (which include a description of system status) annually.

During the 2021

fiscal year, Pennvest’s auditors requested a ‘corrective action plan’

and PA1 informed Pennvest that “…

there is no viable corrective action plan for the Pennvest Loan (‘Loan’).

The facility funded by the Loan has been shut down

for many years (which has been disclosed in the annual financial reports to Pennvest and in public filings by the parent of PA1) and the

technology utilized in the facility is now obsolete.

The facility has not been commercially operated for approximately six years and has

generated zero income.

We recommend that Pennvest take appropriate steps to remove and sell the equipment.”

Pennvest recently responded

favorably to the approach of selling the equipment but no actions have yet taken place.

PA1 and the Company are currently discussing proposals

with Pennvest seeking full resolution to these matters.

The Company anticipates additional communication with Pennvest on this matter

during the current year.

It is not possible at this date to predict the final outcome of this matter, but the Company believes it is likely

that that the equipment will be sold with the proceeds delivered to Pennvest during our current fiscal year.

However, the resolution of

these matters including the manner and means of such equipment sale has not been agreed upon as of this date.

PA1 will evaluate the appropriate

manner to resolve/wrap-up its business over the balance of this calendar year.

During August 2012, the Company provided Pennvest

(and the PADEP) with data demonstrating that the Kreider 1 system met the ‘technology guaranty’

standards which were incorporated

in the Pennvest financing documents and, as a result, the Pennvest Loan is now solely an obligation of PA1.

However, the Company’s

consolidated balance sheet as of June 30, 2021 reflects the Pennvest Loan as a liability of $9,868,495 despite the fact that the obligation

(if any) solely an obligation of PA 1 .

PA1 commenced discussions and negotiations

with Pennvest concerning this matter during 2014 but Pennvest rejected PA1’s most recent formal proposal made during the

fall of 2014.

No formal or informal proposals are presently under consideration and only sporadic communication has taken place

regarding the matters involved over the last 5+ years.

It is not possible at this date to predict the outcome of such this matter,

but the Company believes that a loan modification agreement (coupled with an agreement regarding a technology update and re-start

of full operations of the Kreider 1 System) may be reached in the context of the future development of the Kreider 2 system if/when

a robust market for nutrient reductions develops in Pennsylvania, of which there is no assurance.

PA1 and Bion will continue to

evaluate various options with regard to Kreider 1 over the next six (6) to twelve (12) months.

Litigation has not commenced in this matter

but has been threatened by Pennvest.

Such litigation is likely if negotiations do not produce a resolution (although the likelihood

is somewhat reduced by the passage of time).

Such litigation is likely if negotiations do not produce a resolution (although the likelihood is

somewhat reduced by the passage of time).

The Company currently is not involved in any other material litigation.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 3. Legal Proceedings