PHOT in default on notes? Owes payroll and sales tax? Ouch
Sales,Payroll and Other Tax Liabilities
As of September 30, 2016, the Company owes approximately $118,900 in sales tax and $59,892 in payroll and other taxes.
Potential Convertible Note Defaults
Several of our convertible promissory notes remain outstanding beyond their respective maturity dates. This may trigger an event of default under the respective agreements. We are working with these noteholders to convert their notes into common stock and intends to resolve these outstanding issues as soon as practicable.
Other Legal Proceedings
We are in default on our Portland, Maine store lease and we are negotiating with the landlord. We have been sued for non-payment of lease payments at closed stores in Boulder, Colorado and Plaistow, New Hampshire. We are currently subject to legal actions with various vendors and a former officer.
It is possible that additional lawsuits may be filed and served on the Company.
Potential Convertible Note Defaults
Several of the Company’s convertible promissory notes remain outstanding beyond their respective maturity dates. This may trigger an event of default under the respective agreements. The Company is working with these noteholders to convert their notes into common stock and intends to resolve these outstanding issues as soon as practicable. Any default could have a significant adverse effect on our cash flows and should we be unsuccessful in negotiating an extension or other modification, we may have to restructure our operations, divest all or a portion of its business, or file for bankruptcy.
We are dependent on key personnel and we are default under Employment and Consulting Agreements
