Item 3. Legal Proceedings
Item
3. Legal Proceedings
On
May 28, 2019, William Singer, our former President and a former Director, filed suit against the Company and our wholly owned
subsidiary, Street Smart Outdoor Corp., in Superior Court of New Jersey, Monmouth County, Law Division. Mr. Singer alleges breach
of contract and has demanded $450,000.00 in lost wages. The matter is currently pending in Superior Court.
On
November 14, 2019 suit was filed against the Company by shareholders James J. Loures, Jr. and Justin Derkack requesting that the
Company reverse the underlying transactions related to the MedRecycler-RI, Inc. project such that 100% of the revenues and profits
generated from the project remain with the Company. We do not believe that there are merits to the claim given the explicit determination
by those authorities approving permanent financing for the project that they will not approve financing so long as the Company
has direct ownership in MedRecycler-RI, Inc. The matter is currently pending in Superior Court.
From
time to time the Company is a party to various legal or administrative proceedings arising in the ordinary course of our business.
While any litigation contains an element of uncertainty, we have no reason to believe that the outcome of such proceedings will
have a material adverse effect on the financial condition or results of operations of the Company.
Currently,
the Company is not involved in any other pending or threatened material litigation or other material legal proceedings, nor have
we been made aware of any pending or threatened regulatory audits.
There
is no material bankruptcy, receivership, or similar proceeding with respect to the Company or any of its significant subsidiaries.
However, given the Company’s insolvency, there is a high risk that the Company may be forced to file for bankruptcy if the
Company is unable to meet its capital requirements in 2019.
There
are no administrative or judicial proceedings arising from any federal, state, or local provisions that have been enacted or adopted
regulating the discharge of materials into the environment or primary for the purpose of protecting the environment.
In
addition, no proceeding or action described in this Item 3 were terminated in the past 12 months.
12
PART
II
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