What changed in this filing

/stocks — the workspaceLOADING

Item 1. Legal Proceedings

2024-05-15 compared with 2024-02-13 · 72 added, 38 removed, 12 unchanged (90% of the section changed)

10 unchanged sentences

The Company has a number of legal situations involved with the winding down of its clinic business activities.

These include claims regarding certain construction contracts and cancellation of leases.

The following is a summary as of this filing:

The Wayzata, MN clinic leases was terminated for a commitment to pay $25,000.

The two Denver, Colorado clinic leases, known as Quincy and Radiant, possession has been relinquished to the landlords.

The lease obligations remain in negotiations as does the handling of the mechanics liens placed on the property.

On December 1, 2023, a judgement was issued from the District Court of Denver County, Colorado against Mitesco, Inc.

and The Good Clinic, LLC in favor of the landlord in the amount of $348,764.

Claims for rent beyond November, and any defenses thereto, are preserved.

The Eagan clinic, aka Vikings clinic, the Good Clinic gave up possession in January of 2023.

The mechanics lien has been placed on the property and was settled by the landlord in a confidential settlement.

The Landlord terminated the lease as of March 3, 2023.

Mitesco is now in settlement negotiations with the landlord for the handling of lease obligations.

The Landlord file suit against the Company on July 21, 2023 for unpaid rent, expenses related to unpaid lease obligations and the settled construction lien.

A Summary Judgment was granted December 4, 2023 in the amount of $488,491.

Plaintiff has submitted a separate request for attorneys’ fees and we are awaiting entry of final judgment.

Paul clinic possession was relinquished in March 2023.

The handling of lease obligations remains in negotiation as does the handling of the mechanics liens placed on the properties.

Our existing legal counsel has agreed to represent Mitesco, Inc.

and The Good Clinic in these matters.

In Ramsey County, Continental 560 Fund LLC (Case No.

62-CV-23-2910) initiated a lawsuit.

The Company’s attorney will prepare a Notice of Appearance and draft Answer in the Continental 560 Fund matter.

The deadline under the Minnesota Rules of Civil Procedure for filing an answer has passed.

Accordingly, the plaintiff could seek a default judgment at any time.

A Stipulation for Judgment was filed December 21, 2023 in the amount of $421,678.

These include claims regarding certain construction contracts and cancellation of leases as noted below:

Nordhaus Clinic

On November 1, 2020, we entered into an agreement to open a clinic in Minneapolis, Minnesota.

The initial lease term is eight years.

Fixed rent payments under the initial term are approximately $511,000.

On November 6, 2023, the Company received a termination notice from the landlord indicating the lease had been terminated.

No additional claims have been received by the landlord and the Company believes no additional amounts are owed.

Egan Clinic a.k.a.

On October 14, 2021, we entered into an agreement to open a clinic in Eagan, Minnesota, which began operations in the fourth quarter of 2021.

The initial lease term is for 96 months.

Fixed rent payments under the initial term are approximately $767,000.

A Summary Judgment was granted on December 4, 2023, in the amount of $488,491, and the entry of final judgment was entered on December 15, 2023 and the Company has released the property back to the leaseholder.

Paul Clinic a.k.a.

On August 31, 2021, we entered into an agreement to open a clinic in St.

Paul, Minnesota, which began operations in the fourth quarter of 2021.

The initial lease term is for 114 months.

Fixed rent payments under the initial term are approximately $1,153,000.

A stipulation for Judgment was filed on December 21, 2023 in the amount of $415,266.

The stipulated judgment includes $178,542 in unpaid back rent, $172,124 in resolution of mechanics’ liens, and $64,600 in attorneys’ fees.

We are awaiting a final entry of judgment by the Court.

Louis Park clinic possession was relinquished in April 2023.

The handling of lease obligations remains in negotiations as does the handling of the mechanics liens placed on the properties.

The plaintiff’s counsel reached out to our attorney to reinitiate negotiations.

We proposed to our attorney a settlement approach using a zero coupon note with common stock used as collateral.

We are awaiting reply.

The Maple Grove clinic eviction occurred in April 2023.

The handling of lease obligations remains in negotiations as does the handling of the mechanics liens placed on the properties.

On August 22, 2023 the landlord filed a lawsuit related to alleged unmet lease obligations and related to a construction lien on the property by the general contractor related to alleged non-payment of construction expenses.

We have been told the facility has been re-leased but have not received notice of such or cancelation of the lease.

The Northeast Minneapolis clinic, aka Nordhaus clinic, possession was relinquished in May 2023.

There is no lien on the property.

The handling of lease obligations remains in negotiations with the landlord.

Final entry of judgment by the Court was entered against the Company on January 19, 2024, and the Company has released the property back to the leaseholder.

Louis Park Clinic a.k.a.

Excelsior & Grand

On May 24, 2021, we entered into an agreement to open a clinic in St.

Louis Park, Minnesota, which began operations in the third quarter of 2021.

The initial lease term is seven years.

Fixed rent payments under the initial term are approximately $673,000.

The Company agreed to and executed a Confession of Judgment in the amount of $425,351 on April 2, 2024 and has released the property back to the leaseholder.

We received the fully executed and recorded judgement on April 10, 2024.

Eden Prairie Clinic a.k.a.

On June 8, 2021, we entered into an agreement to open a clinic in Eden Prairie, Minnesota, which began operation in the third quarter of 2021.

The initial lease term is eight years.

Fixed rent payments under the initial term are approximately $620,000.

The Company has surrendered possession of the property and is currently in negotiations the amounts owed and is in the process of settling the remaining amounts owed.

Maple Grove Clinic a.k.a.

On October 8, 2021, we entered into an agreement to open a clinic in Maple Grove, Minnesota which began operation in the fourth quarter of 2021.

The initial lease term is for 108 months.

Fixed rent payments under the initial term are approximately $1,153,127.

On October 22, 2022, the Company entered into a settlement agreement with the leaseholder for $219,576 and the Company has released the property back to the leaseholder.

Radiant Clinic a.k.a.

On September 9, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords.

The initial lease term is for 90 months.

Fixed rent payments under the initial term are approximately $782,000.

As of April 10, 2024, the Company has settled the amounts owed to the leaseholder and full resolution of all liens for approximately $530,000 and the Company has released the property back to the leaseholder.

Quincy Clinic a.k.a.

On September 28, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first quarter of 2023 but possession of which has been relinquished to the landlords.

The initial lease term is for 94 months.

Fixed rent payments under the initial term are approximately $1,079,000.

A Final Judgment was granted on November 14, 2023, in the amount of $348,764 including interest, fees and other costs.

The Company has released the property back to the leaseholder.

The following table summarizes the status of our property settlements as noted above and the total settlement amounts as of the date of the filing:

ALSO KNOWN AS:

PROPERTY NAME/OWNER

ORIGINAL OBLIGATION

SETTLEMENT AMOUNT

TYPE OF SETTLEMENT

MINNEAPOLIS, MN

CASH PAYMENT OBLIGATION

DEFAULT JUDGEMENT

LOUIS PARK, MN

EXCELSIOR & GRAND

DEFAULT JUDGEMENT

CONTINENTAL 560

DEFAULT JUDGEMENT

MAPLE GROVE, MN

SETTLEMENT AGREE

DEFAULT JUDGEMENT

Administrative offices

On June 24, 2021, we entered into an agreement to open an administrative office in St.

Louis Park, Minnesota.

The initial lease term is 2.5 years.

Fixed rent payments under the initial term are approximately $244,000.

We have not entered into a settlement agreement on this site as of the date of this filing but expect to shortly.

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-Q

Item 1. Legal Proceedings