King, as for the lawsuit involving Quirk & Cindy. That has not played out yet but "it may appear" as if it has? yes no doubt HDC will be on their toes, one way or another no longer slacking if that was the case before.
As for fiduciary responsibility to shareholders? they are reporting are they not.
As for the Settlement money, that was listed in the recent 10-k as follows.......
Other Income and Expense
The Company received a total payment of $6.6 million as a result of the NeoGenomics arbitration ruling. $1.5 million of the arbitration award was attributed to “milestone and royalty payments”, with the remaining $5.1 million attributed to punitive damages. Hence, the Company reported $5.1 million as other income for the period ending December 31, 2019.
Other income was immaterial for the year ended December 31, 2018. For the year ended December 31, 2017, the unrealized loss on NeoGenomics stock held at the end of the reporting period was $13,077. For the period ending December 31, 2016, the company recorded other income of $82,138 as a result of realizing a gain on NeoGenomics stock in the amount of $12,395 along with a $69,743 gain on payables restructuring.
Other expense for the year ended December 31, 2019 totaled $3.7 million, primarily as a result of litigation related fees. Other expense totaled $25,854 for 2018 and $1,210 for 2017 as a result of interest expense. For the year ended December 31, 2016 other expense totaled $1.2 million resulting from a change in warrants liability. As previously disclosed, the Company had issued options and warrants which exceeded the amount of common shares available if the holders exercised all of the previously issued outstanding options and warrants. This created a common stock warrant liability for the Company. During the first quarter of 2016, based upon the trading price of the Company’s common stock, this liability increased to $940,812 and during the second quarter of 2016 increased to $1,196,612. At the Annual Shareholder Meeting of the Company held on May 17, 2016, the shareholders approved an increase to the authorized shares of common and preferred stock. As a result, on May 17, 2016 common stock warrant liability for the Company was eliminated.
Liquidity and Capital Resources
At December 31, 2019, the Company had $2.3 million in cash and total current liabilities of $884,897. The primary amount of current liabilities relates to $206,637 in dividends payable, $440,089 in accrued wages and $200,000 in convertible debt. As a result, we will have sufficient resources to meet all of our current obligations. The Company is pursuing licensing activity and collaborations to increase revenue. Additionally,
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the Company is evaluating options to secure funding for infringement activities to protect its proprietary technology or other forms of fund raising either in the debt or equity markets. None of these options are definitive and there is no guarantee the Company will be successful in these fund-raising efforts. The Company estimates cash will be depleted by the second quarter of 2023 unless the Company is able to increase revenues or raise additional capital.
At December 31, 2019, the Company had no contractual obligations that require disclosure.
The Company has relied primarily on equity and debt financing for liquidity. The Company produced sales, licensing, and developmental revenue starting in late 2005 and must increase revenues in order to generate sufficient cash to continue operations. The Company’s plan to have sufficient cash to support operations is comprised of generating revenue through licensing its patent portfolio, providing services related to those patents, protecting its proprietary technology against infringers and obtaining additional equity or debt financing. Previous leadership was never able to generate significant revenue, as further described above. The current leadership created the largest revenue in 2019 and is utilizing that revenue to explore future opportunities for the Company. Additionally, proceeds from arbitration in 2019 increased cash balances and are being utilized.
Cash Flow from Operating, Investing and Financing Activities
For the year ended December 31, 2019, the Company had net income of $1.56 million with $2.2 million of cash being generated by operating activities. During 2019 a total of $92,940 was provided by financing activities resulting from proceeds received from convertible debt. As a result, the Company realized a net increase of cash of $2.3 million during the year ended December 31, 2019.
