Item 3. Legal Proceedings
Item
3. Legal Proceedings
Other
than the following proceedings, we are not a party to any material pending legal proceedings and, to the best of our knowledge,
none of our property or assets are the subject of any material pending legal proceedings.
On
October 12, 2023, the Supreme Court of the State of New York in the County of Albany entered a final judgment against the Company
approving the request of the Workers’ Compensation Board of the State of New York, the plaintiff in the case, seeking recovery
of an outstanding assessment/award in the sum of $7,500.
19
On
November 10, 2023, Philip Falcone, individually and on behalf of Madison and other named defendants, filed a Confession of
Judgment affirming that the Z4 Note had been issued to the Company, dated December 28, 2021, by Z4 Management, which was
guaranteed by each of FFO1 and FFO2. The Z4 Note was initially payable on February 15, 2022, and had an original principal
balance of $500,000.00 with an interest rate of 12% per annum. The Z4 Note’s expiration date was extended to July 5,
2022, then further extended to March 31, 2023, and as of October 1, 2023, the revised principal balance, along with interest
accrued, totaled $581,304. On such date, Z4 Management filed an Affidavit of Default affirming that the Z4 Note was in
default and requesting a judgment in the amount of $581,304 against Madison, FFO1, FFO2, and Mr. Falcone personally in favor
of Z4 Management. On December 5, 2023, a judgement in favor Z4 Management in the sum of $581,304 was rendered against
Madison, Mr. Falcone, FFO1 and FFO2.
Item
4. Mine Safety Disclosures.
Not
Applicable.
20
PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.