Item 1. Legal Proceedings
Item
1. Legal Proceedings
Except
as described below, we are currently not involved in any litigation that we believe could have a material adverse effect on our financial
condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any
of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our
subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
Gary
Shover
A
shareholder of NaturalShrimp Holdings, Inc. (“NSH”), Gary Shover, filed suit against the Company on August 11, 2020 in the
Northern District of Texas, Dallas Division, alleging breach of contract for the Company’s failure to exchange common shares of
the Company for shares Mr. Shover owns in NSH. On November 15, 2021, a hearing was held before the US District Court for the Northern
District of Texas, Dallas Division at which time Mr. Shover and the Company presented arguments as to why the Court should approve a
joint motion for settlement. After considering the argument of counsel and taking questions from those NSH Shareholders who were present
through video conferencing link, the Court approved the motion of the parties to allow Mr. Shover and all like and similarly situated
NSH Shareholders to exchange each share of NSH held by a NSH Shareholder for a share of the Company. A final Order was signed on December
6, 2021 and the case was closed by an Order of the Court of the same date. The Company is to issue approximately 93 million shares in
settlement, which as of December 6, 2021 was recognized as stock payable on the Company’s balance sheet, and its fair value of
$29,388,000, based on the market value of the Company’s common shares of $0.316 on the date the case was closed, has been recognized
in the Company’s statement of operations as legal settlement. As of March 31, 2022, 28,494,706 of the shares presented in Stock
Payable have been issued, with the fair value of $9,415,950 reclassified out of Stock Payable. In the six months through September 30,
2022, an additional 61,558.203 of shares of common stock, with a fair value of $19,445,284, were issued out of the Stock Payable.
33
The
Company has resolved all outstanding litigation involving the Company and there are no suits or cases pending in which the Company is
a party.
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