LEGAL PROCEEDINGS
−Removed: On May 4, 2020, we received a loan in the amount of $460,406 from the United States Small Business Administration under the Payroll Protection Program.
−Removed: Subsequent to June 30, 2020, we determined that errors had been made in the application submitted to obtain the loan.
−Removed: On July 21, 2020, Bank of America notified the Company in writing that it should not have received $440,000 of the loan proceeds, representing an amount for the refinancing of an Economic Injury Disaster Loan which we did receive.
−Removed: Bank of America has requested that we remit such funds back to Bank of America.
−Removed: We are presently attempting to negotiate repayment of the loan.
−Removed: If we are not successful in negotiating repayment terms, it could have a material adverse effect on our financial condition.
−Removed: During management's review of the Company’s recent PPP loan application after the loan had been disbursed to the Company, it was determined that the information provided by Ms.
−Removed: Smith, the Company’s former President and COO, was not representative of the Company’s situation.
−Removed: After consulting with legal counsel, the Board of Directors voted to remove Ms.
−Removed: Smith from its Board of Directors, and all other capacities due to the misstatements she made in the loan application.
−Removed: Subsequent to that decision, effective July 1, 2020, Ms.
−Removed: Smith submitted a resignation from all positions with the Company, which was accepted by the Board and management.
−Removed: Smith subsequently retained counsel and indicated her intent to file an administrative charge of discrimination in Colorado under certain provisions of the anti-discrimination laws of that state.
−Removed: On August 18, 2020, the Company received formal notice that a complaint has been filed with the Colorado Civil Rights Division by Ms.
−Removed: Smith naming the Company as the Respondent.
−Removed: As of the date of this filing, we have been advised that the Colorado Civil Rights Division has dismissed this matter effective March 1, 2021.
−Removed: Smith requested a “Right-to-Sue” letter, which she received, giving her a right to sue in District Court for 90 days from the date of the dismissed action.
−Removed: On June 23, 2021, the Company and the former President and COO reached a confidential settlement and release agreement releasing both parties of any future claims which included the cancellation of certain previously issued shares and stock options.
−Removed: The impact of this settlement is reflected in the Company’s financial statements as of June 30, 2021.
−Removed: Terra Nova Matter
−Removed: On May 4, 2021, Mitesco, Inc.
−Removed: was served with a Statement of Nature of Dispute, Claims and Issues to be Arbitrated in which Claimant Terra Nova Capital Equities, Inc.
−Removed: (Terranova) makes claims related to alleged breach of an agreement between the Parties dated August 17, 2020.
−Removed: Terra Nova claims damages in the amount of $385,000.
−Removed: On June 3, 2021, the Company and Terra Nova Capital Equities, Inc.
−Removed: reached a settlement agreement in the amount of $70,000 with half being paid on the signing of the agreement and the remaining 50 percent being paid in equal installments on September 30, 2021, and December 31, 2021
+Added: During March 2020, in response to the COVID-19 crisis, the federal government announced plans to offer loans to small businesses in various forms, including the Payroll Protection Program, or "PPP", established as part of the Corona Virus Aid, Relief and Economic Security Act (“CARES Act”) and administered by the U.S.
+Added: Small Business Administration.
+Added: On April 25, 2020, the Company entered an unsecured Promissory Note (the “Note”) with Bank of America for a loan in the original principal amount of approximately $460,000, and the Company received the full amount of the loan proceeds on May 4, 2020.
+Added: The current balance is $460,406 and the Company is currently in discussions for a) a partial forgiveness and b) the conversion of any remaining balance into a term note.
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.