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. The Company has reached a settlement with
Mr. Singer in the amount of $47,500 to be paid over a period of 3 months, which have been paid.
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. The matter has been settled.
On
August 3, 2021, MedRecycler-RI, Inc. received a demand letter related to moneys owed for the property leased in West Warwick, Rhode Island.
The Company is a guarantor to the lease. The Lease has since been discharged and terminated.
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.
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 2021.
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.
11
PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.