LEGAL PROCEEDINGS.
−Removed: Under a loan and security agreement dated February 2, 2016, the Company loaned the principal amount of $200,000 to C2Go, Inc.
+Added: C2Go Note Receivable
+Added: Under a loan and security agreement dated February 2, 2016, we loaned the principal amount of $200,000 to C2Go, Inc.
with an interest rate of 10% per annum for a term of 18 months.
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C2Go defaulted under the note by failing to repay the loan plus interest on August 2, 2017.
−Removed: On December 7, 2017, the Company entered into a note purchase and settlement agreement with C2Go and Mercury Investment Partners LLC.
−Removed: Pursuant to the note purchase and settlement agreement, Mercury Investment Partners agreed to purchase the note and the rights secured by the security agreement with all rights and obligations and to pay to a sum of $200,000 in three installments.
−Removed: The first installment of $50,000 was paid on December 7, 2017.
−Removed: The second installment of $50,000 was due on April 30, 2018, and the remaining amount of $100,000 was due on October 31, 2018.
−Removed: In return, the Company agreed to waive all interest due and payable under the terms of the C2Go loan.
−Removed: Mercury Investment Partners has not paid the amount due April 30, 2018 or the amount due on October 31, 2018.
−Removed: The Company issued a letter of default.
−Removed: The Company agreed to extend the due date of the $50,000 payment due April 30, 2018 to May 16, 2018.
−Removed: $5,000 of the $50,000 due was received on July 5, 2018.
−Removed: On or about August 14, 2018, a notice of default was sent to Mercury Investment Partners.
−Removed: Mercury Investment Partners did not respond to the letter or make payment in full to the Company.
−Removed: On September 4, 2018, the Company filed suit against Mercury Investment Partners in Bexar County District Court.
−Removed: The default judgment against Mercury Investment Partners was granted on December 21, 2018.
−Removed: The Company retained the services of legal counsel to represent the Company in collecting on the judgment.
−Removed: Counsel has domesticated the Texas judgment and the Company was issued a lien on a property owned by Mercury that is valued over $1.0 million by the court.
−Removed: The Company is unsure if any equity exists which would allow the Company to potentially recover the funds owed.
−Removed: On or about June 7, 2019, Mercury Investment Partners was served a subpoena to produce certain documents on July 3, 2019 in Colorado.
−Removed: A representative of Mercury Investment Partners did not appear in court on the assigned date and time.
−Removed: Subsequently, Mercury placed the property up for sale though Mercury is aware the Company has a valid lien in place on the property.
−Removed: There are no assurances that the Company will be able to recover the remaining $145,000 principal and there are no assurances there will be any assets for the Company to recover from its lien on all the assets of C2Go if payment in full of the obligation is not made.
−Removed: The loss reserve on the note receivable as of December 31, 2019 and 2018 , respectively was $145,000 and $36,250 reflecting a "more likely than not" recognition threshold.
−Removed: Aside from the lawsuit described above, we may be involved in legal matters arising in the ordinary course of business from time to time.
−Removed: While we believe that such matters are currently not material, there can be no assurance that matters arising in the ordinary
−Removed: course of business for which we are or could become involved in litigation will not have a material adverse effect on our business, financial condition or results of operations.
+Added: On December 7, 2017, we entered into a note purchase and settlement agreement with C2Go and Mercury Investment Partners LLC.
+Added: There are no assurances that we will be able to recover the remaining $145,000 principal and there are no assurances there will be any assets for us to recover from our lien on all the assets of C2Go if payment in full of the obligation is not made.
+Added: The loss reserve on the note receivable as of December 31, 2020 and 2019 , was $145,000 reflecting a "more likely than not" recognition threshold.
+Added: Vaden Landers
+Added: On January 19, 2021, we initiated a lawsuit in Bexar County, Texas against our former Chief Revenue Officer, Vaden Landers.
+Added: In the lawsuit, which is styled:
+Added: Vaden Landers , Cause No.
+Added: 2021CI01069, 407th Judicial District Court, Bexar County, Texas, we allege that Mr.
+Added: Landers violated the provisions of his employment agreement dated September 1, 2017 - specifically his non-compete obligations.
+Added: The state court lawsuit only seeks injunctive relief against Landers.
+Added: We also instituted an action before the American Arbitration Association on February 2, 2021.
+Added: Landers has refused to participate in the arbitration proceeding and has not filed an answer in the proceeding.
+Added: Landers has answered the state court lawsuit, denying our allegations.
+Added: Landers has also asserted counterclaim against us for breach of contract, tortious interference with contract and defamation.
+Added: Landers seeks damages in excess of $1,000,000.
+Added: Landers’ allegations and do not believe that his counterclaims have any merit.
+Added: Through our investigation, we learned that Mr.
+Added: Landers committed other violations of his employment agreement and intend to pursue those claims in arbitration.
+Added: Both the state court litigation and the arbitration are in their initial stages and no discovery has been conducted by the parties.
+Added: Aside from the lawsuits described above, we may be involved in legal matters arising in the ordinary course of business from time to time.
+Added: While we believe that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which we are or could become involved in litigation will not have a material adverse effect on our business, financial condition or results of operations.
MINE SAFETY DISCLOSURES.
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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.