CMG Holdings Group Inc (CMGO)

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3rd Quarter Financials CMG HOLDINGS GROUP, INC.
4. Notes Payable
Convertible Promissory Notes
During the nine months ended September 30, 2019 and year ended December 31, 2018, the Company did not
issue any new convertible promissory notes.
The Company settled an amount due that was in dispute of $62,000. The Company settled this amount for $25,000.
An expense was taken for the $25,000 for the three months ended March 31, 2019.

5. Legal Proceedings
We are subject to certain claims and litigation in the ordinary course of business. It is the opinion of management
that the outcome of such matters will not have a material adverse effect on our consolidated financial position,
results of operations or cash flows.
In January 2019, the Company settled a lawsuit. The Company received an initial payment of $268,198 during the
quarter ended March 31, 2019 as part of the settlement. The Company received an additional $148,000 during the
quarter ended June 30, 2019. The Company received an additional $148,000 during the quarter ended September 30,
2019.
In October 2014, Ronald Burkhard, XA’s former Executive Chairman and former member of the Company's Board of
Directors filed a lawsuit in the Supreme Court of the State of New York, County of New York, alleging breach of
his employment contract and seeking approximately $695,000 in damages•. This lawsuit, where a judgement was
entered against the Company for approximately $775,000, was settled with Burkhard for $105,000.
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