Management Discussion and Analysis
As of Dec 31, 2020 LIG, Assets has a (loss) of ($379,263). BGTV Direct had a small profit of $5,439 while real
estate operations accounted for ($384,702). The company has new plans for BGTV Direct (see below) and going
forward will be focused on sustainable building technologies. Over the past eighteen months the company has spent
considerable time and resources resolving the 2015 audit and refiling of old and delinquent tax returns. This project
materially affected the ability to complete real estate transactions. The company was confident in the final result,
but the effort to resolve the issue was far greater than anticipated. Real estate projects are back on track with
multiple partners in negotiations for various projects, of which the Brentwood development is the primary shortterm focus. A very recent appraisal values the undeveloped land at $5.2mm. The company is pushing very hard to
get a deal done by April 30, 2021 but will keep striving for the best deal possible if necessary.
Successful closing of a Brentwood TN deal will also initiate an audit by a PCAOB Audit firm. We have been
continuously reviewing previous transactions while preparing for audit. There have been prior period adjustments
as this process continues. The current general ledger should be a relatively easy audit for any PCAOB registered
firm. The company is converting to a web based general ledger with subsidiary accounting and consolidations. A
CPA Firm in Nashville has been retained for general bookkeeping duties.
The company reiterates that management retains the right to repurchase stock at any time.
Brentwood TN Development
The company owns 60 acres of prime undeveloped land in Brentwood TN, just south of Nashville. The property is
located on Bluff Road in southeast Brentwood. The greater Nashville real estate market is one of the strongest in
the United States and developed lots in Brentwood are quite scarce. The original intent was to produce the first
‘Robert Plarr’ branded development of sustainable homes. However, at this point the company is heavily leaning
towards accepting a ‘buy out’ whereby a developer will take over the entire project. If successful, this would
significantly reduce debt and significantly increase liquidity. But all options are still being considered. The value of
the land is now appraised at $5.2mm and is very desirable to established homebuilders. Completing a development
deal is a primary focus for management. The company cautions investors that there can be no assurance a proposed
deal will close. However, it is clear the land has significant value.
FOREVER BOARD
In 2019 the company was awarded the rights to build up to four facilities to produce ‘ForeverBoard’, a Magnesium
Oxide replacement for conventional drywall. ForeverBoard is extremely resistant to rot, mold, mildew, fire, and has
superior insulating properties. The cost to produce is now the same as conventional drywall and demand is
increasing rapidly. Homebuilders as well as very large building supply firms are actively looking to replace
conventional drywall with a superior solution. Feedback from these types of firms has LIG Assets management
confident that Magnesium Oxide boards will be a significant part of the shift towards superior drywall solutions.
After Dec 31, 2020, the company negotiated a potential equity position in the ForeverBoard company. If a proposed
Brentwood deal closes the company will reinvest some of the proceeds into equity position. The company is
reviewing financing proposals for its own Forever Board plant potentially beginning construction in the second half
of 2021. The company expects this line of business to be a major focus going forward. If major contracts
materialize LIG Assets Inc. will assist ForeverBoard in going public.www.foreverboard.net.
Panama City Beach Home
The shareholders financing the model home are continuing to review designs and cost estimates. This Robert Plarr
Home will be optimized for waterfront locations. The structure can withstand 175 MPH winds allowing it to
survive most hurricanes. All living quarters are on the second and third floors allowing storm surge to pass
underneath. Hurricane survivable homes are the right product, in the right place, at the right price. Once the final
design is completed Horton World Solutions should begin building immediately. Robert Plarr has an exceptionally
long waiting list of individuals and families wanting to buy or build a Robert Plarr TM home. The Panama City
Model home will be a ‘proving ground’ confirming that the advanced technologies work and the cost per sq ft is
competitive with conventional homes. This will be a major focus upon completion of a Brentwood TN
development deal.
HORTON WORLD SOLUTIONS
In June 2019, the company reached a co-marketing agreement with Horton World Solutions (HWS). Despite
delays, this transaction could materially change the future profitability of the company. HWS is in the final stage of
activating their production facility and LIG Assets will more clearly outline the opportunity with HWS once the
production facility is complete and ready to start. Mr. Robert Plarr has been working with HWS over the past few
months to integrate his sustainable building technologies and methods into the HWS ‘affordable sustainability’
business model. Building the Panama City Beach home will accelerate this partnership. This partnership was
materially affected by Covid-19 as it delayed the construction of the manufacturing facility.
LIG Developments
LIG Developments (LIGD), was originally formed to provide light gauge steel framing and wall solutions for
residential and commercial structures, which we believe is a viable superior alternative for the construction
industry. The company is actively in negotiations with a proven steel framing company to merge assets into LIG
Developments. The company plans to utilize LIG developments to produce the steel frames for Robert Plarr
branded homes as well as more conventional designs. Successfully closing a Brentwood TN deal will provide funds
to reactivate this subsidiary.
BGTV Direct
BGTV Direct is a media purchasing, digital advertising, and content firm based in Carthage TN, and previously
owned by LIGA President Marvin Baker (see Note 13). There was very little effect on equity over the previous
years as the asset and liability were the same and the profit was close to breaks even.
At this point the Board believes it more advantageous to retain the $36mm payment to Mr. Baker and use the funds
on future Robert Plarr developments, ForeverBoard, and recycled steel framing. The intention is to return 80.1% of
BGTV Direct into a new publicly traded entity (see note 13) and retain 29.9% of the stock on the LIG Assets
balance sheet. BGTV will raise new funds to properly build out investments in Angola IN and effectively market
Identity Maxx Plus.
Live Stor America
Live Stor America is a 50% Joint Venture with Live Stor Ltd. of Nova Scotia and LIG Assets. This portion of the
business is being led by Board Member Allan Gillis. The Gillis family has been in the seafood business for more
than 70 years. Joint venture partner, Live Stor Ltd., is revolutionizing the storage of live seafood. The short-term
focus is on using the Asian carp as Lobster and Crab bait for the Nova Scotia fishing market. Restaurant demand
was severely depressed due to Covid-19, but the Gillis family expects the seafood business to start recovering in the
summer of 2021. This is a long-term investment which was contributed at zero cost to LIG assets.
Summary
The emphasis moving forward will be almost entirely on
1.) Sustainable Robert Plarr Homes in Partnership with Horton World Solutions
2.) ForeverBoard Magnesium Oxide Drywall replacement.
3.) Reenter the recycled steel framing business for commercial and residential structures.
The media subsidiary will be moved into a separate publicly traded company and raise funds for new investments
as well as effectively market Identity Maxx Plus.
The company has been relatively quiet about the partnership with Horton World Solutions (HWS). HWS is in the
process of completing their manufacturing facility and this will finally begin active marketing of ‘co-branded”
HWS-LIGA homes. The company will much more thoroughly address this upon the completion of the
manufacturing facility. HWS will be the builder of Panama City Beach model home.
We hope to obtain OTCQB status in 2021, depending upon the timing of a Brentwood TN development deal. OTCMarkets have implemented a new rule allowing an audit of the most recent fiscal year, of which 2020 will be used.
It also requires a closing stock price above $0.01 for 30 consecutive days. Successful Brentwood development, and
the HWS partnership should improve liquidity and make both conditions a reality. Management feels the company
is finally at an inflection point. Closing a Brentwood TN development deal is a primary key to reaching that
inflection point.
