EASE READ IMPORTANT
Litigation
On December 13, 2013, TCA filed suit against the Company and one of the Company’s officers asserting that the Company breached the credit agreement. TCA was seeking approximately $513,000. The Company engaged in settlement discussions with TCA, and an agreement was reached on August 12, 2014 (see Note 6).
On February 7, 2014, a former contractor of the Company filed suit against the Company for an unpaid account. The plaintiff is seeking approximately $65,000 from the Company. Subsequently, the Company filed a counter suit against the former contractor and two of its officers alleging breach of contract, fraud and racketeering. Discovery is not complete in these cases, and at this time, the Company cannot determine the likelihood of an outcome or a range of possible damages. The Company intends to vigorously defend the lawsuit and prosecute its cause of action.
On May 28, 2014, an entity believed to be formed by two former contractors of the Company, filed suit against the Company, two of its principles, and a former contractor for fraud in the inducement, fraud, rescission, unfair trade practices, civil rico, and authorized practice of law. The plaintiff is seeking approximately $450,000 from the Company. Discovery is not complete in these cases, and at this time, the Company cannot determine the likelihood of an outcome or a range of possible damages. The Company intends to vigorously defend the lawsuit as it believes the case is frivolous and prosecute its cause of action.
On September 27, 2014, a former contractor of the Company filed suit against the Company for an unpaid account. The plaintiff is seeking approximately $125,000 from the Company. the Company cannot determine the likelihood of an outcome or a range of possible damages. The Company intends to vigorously defend the lawsuit on the grounds that the contractor never performed any services under the contract and prosecute its cause of action
