What changed in this filing

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Item 3. Legal Proceedings

2021-04-15 compared with 2020-05-14 · 28 added, 8 removed, 2 unchanged (95% of the section changed)

LEGAL PROCEEDINGS.

July 12, 2019, counsel representing two of the Company’s lenders holding approximately $100,000 in aggregate in principal

of convertible notes, sent a demand letter to the Company noting the Company is in default for the Company’s failure to

repay the notes at maturity including unpaid interest and an unpaid 35% premium to the principal amount of the notes.

retained counsel, which responded to the lender’s counsel.

As of the date of the report, a third party has purchased the

convertible notes from the initial lenders.

than the above, we know of no legal proceedings to which we are a party or to which any of our property is the subject which are

pending, threatened or contemplated or any unsatisfied judgments against us.

March 4, 2021 a Complaint and Demand for Jury Trial (the “Complaint”) was filed by a plaintiff (the “Plaintiff”)

in the United States District Court for the Southern District of New York.

The Complaint named Ozop Energy Solutions, Inc.

(“OZOP”)

and Brian Conway, Ozop’s Chief Executive Officer, (the “CEO”).

OZOP and the CEO are collectively referred to herein

as “Defendants”.

The Complaint alleges that the Plaintiff’s purchase and sale of OZOP’s securities, and damages

caused by OZOP and its CEO, were violations of federal and state securities law and common laws.

This securities fraud complaint is based

on two (2) press releases issued by OZOP:

the first dated January 12, 2021, which the complainant alleges contained materially false

and misleading information about the execution of a Master Supply Agreement, and the second dated February 5, 2021, that retracted the

press release it issued on January 12, 2021.

In reliance on OZOP’s January 12, 2021 press release (which was retracted and corrected

by OZOP’s February 5, 2021 press release), on the same date, Plaintiff sold all of his 4,370,180 OZOP shares on the public market.

The Plaintiff alleges that the February 5, 2021 corrective press release (which retracted the January 12, 2021 press release and corrected

the material misrepresentations provided therein) caused a dramatic increase in the price of OZOP’s shares, significantly in excess

of the price at which Plaintiff sold his OZOP shares on January 12, 2021 (in reliance on the January 12, 2021 press release), causing

Plaintiff to suffer significant losses, in excess of two Million Dollars, as a direct and proximate result of Defendants’

misrepresentations.

The Company disputes the allegations in the Complaint has engaged counsel to vigorously defend the Company and the

November 12, 2020, a former employee of PCTI filed a Charge of Discrimination against PCTI, for wrongful discharge based on sex

and retaliation with the Equal Employment Opportunity Commission (“EEOC”) and the Pennsylvania Human Relations Commission

for events occurring on or before June 3, 2020.

The matter is currently under investigation with the EEOC.

than the above, we know of no legal proceedings to which we are a party or to which any of our property is the subject, which

are pending, threatened or contemplated or any unsatisfied judgments against the Company.

MINE SAFETY DISCLOSURES.

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