Dais Corporation (DLYT)

[JoeyMiggs]

DLYT had a royalty agreement and licensing agreement with Soex where the Hong Kong company didn't fulfill their obligations. Dias filed a lawsuit against the company and Dias is owed $450,000 of the $500,000 and about 37,500,000 of their common shares back, and they're also owed 25% equity in the Hong Kong firm. It sounds like the firm in breach maybe stole some intellectual property and manufactured their own goods, backing out of the agreement. I'm trying to do more research here, but I don't think the files are publicly available. It sounds like it's still in the courts.

The company has a right to collect something like 18% interest annually.

Question is, what is that 25% stake worth in the Soex subsidiary, the Hong Kong company? And how much interest has accumulated over the years compounding at 1.5% per month, or 18% annually? It's been 37 months.

Here is a link to prove it...
https://dockets.justia.com/docket/florida/flmdce/8:2015cv02362/315837

Here is a the 13g showing their ownership of 37.5 million shares...
https://www.streetinsider.com/SEC+Filings/Form+SC+13D+DAIS+ANALYTIC+CORP+Filed+by%3A+SoEX+%28Hong+Kong%29+Industry+%26amp%3B+Investment+Co.%2C+Ltd./11149841.html

From their latest 10-Q note 8;

Pursuant to the Distribution Agreement, Soex is in material breach of the following:
(1) Section  1(a)  of  the  Distribution  Agreement  for  Soex's  failure  to  make  a  $225,000  payment  to  us  for  the  appointment  of  Soex  as  the  exclusive
distributor of the Products in the Field and Territory (the "Distribution Payment Default") in accordance with the terms set forth in the Distribution
Agreement. Such payment was due on October 20, 2014 (the "Payment Date").
(2) Section 8(b) of the Distribution Agreement for Soex's failure to make a $225,000 payment to us for the grant of the license and right to manufacture,
sell,  lease  and  distribute  Products  (excluding  manufacture  of  MTM),  and  to  use  the  Intellectual  Property  in  connection  therewith  (the  "License
Payment  Default"  and,  together  with  the  Distribution  Payment  Default,  the  "Payment  Default")  in  accordance  with  the  terms  set  forth  in  the
Distribution Agreement. Such payment was due on the Payment Date.
(3) Section  15(b)  of  the  Distribution  Agreement  for  Soex's  failure  to  issue  to  us  25%  of  the  equity  (the  "Equity  Default")  of  SOEX  (Beijing)
Environmental Protection Technology Company Limited (the "China Subsidiary").

..... Because of the material breaches, we terminated the Distribution Agreement. As provided in Section 14(e) of the Distribution Agreement, we have the right to
enforce any obligation due to us by the Soex. As a result, Soex still must (a) pay the remaining $450,000 due under the Distribution Agreement and the amount of
Royalties due, plus interest at 1.5% per month (18% per year) with interest accruing from the date that payment was due and (b) issue to us 25% of the equity of
SOEX (Beijing) Environmental Protection Technology Company Limited. As provided in Section 14(b), neither us nor Soex shall be liable for compensation,
reimbursement, or damages due to loss of profits on sales or anticipated sales or losses due to expenditures, investments or commitments made, or in connection
with the establishment, development or maintenance of the business.
Further,  in  consideration  of  the  issuance  of  the  Shares  to  Soex  and  the  equity  to  Zan  under  the  Soex  SPA  was  the  covenant  that  Soex  would  enter  into  a
Distribution Agreement and establish a subsidiary in China and issue shares to us in the China Subsidiary. With Soex's Equity Default, Soex breached the Soex
SPA and we are seeking return of the Shares from Soex in the lawsuit filed in July 2015.
The litigation has been moved to the U.S. District Court for the Middle District of Florida where Soex has instituted a counterclaim (Civil Docket Case #: 8:15-
CV-02362-MSS-EAJ). We believe we have a strong case against Soex because of its breaches of the agreements, however, we cannot make any predictions about
the success of its action against Soex or whether or not Soex will have the assets to satisfy any judgment.