Item 1. Legal Proceedings
Item
1. Legal Proceedings
On
July 16, 2020, we were served in an action filed in the United States District Court for the District of Utah claiming that the
Company promulgated false and misleading press releases to increase the price of our stock to improperly benefit the officers
and directors of the Company. The Plaintiff, Gelt Trading, Ltd., a Cayman Islands limited company, demands compensatory damages
sustained as a result of our alleged wrongdoing in an amount to be proven at trial. We will vigorously defend this action as we
do not believe it has any merit.
In
addition, there is a threatened lawsuit from former consultants claiming compensation for services rendered in 2015. We will vigorously
defend this matter if it results in a lawsuit.
From
time to time, we may become involved in litigation relating to claims arising out of our operations in the normal course of business.
Although we have received inquiries from FINRA, NASDAQ and the SEC, to which we have responded, to the best of our knowledge,
no governmental authority is contemplating any proceeding to which we are a party or to which any of our properties or businesses
are subject, which would reasonably be likely to have a material adverse effect on the Company.
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