I think this has to do w Clinical Herbal
“due to the difficulty in accounting for the disposition of an existing subsidiary” (From recent extension)
Disposition of Clinical and Herbal. (This from 2019 10k)
Based on the approval received from the Board of Directors in June 2020, the Company sold the outstanding stock of CHII to Charles Scott for $1,000, based on an independent valuation report confirming that the equity interest in CHII held by the Company had no value. As part of the transaction, the Company has assumed responsibility for repaying a line of credit provided by Mr. Scott to the Company and its subsidiaries, with a balance due on $199,219. The major effect of the transaction will be to remove the current debt of CHII, approximately $1,526,750, from the consolidated balance sheet of the Company.
As part of the process of executing the Share Exchange Agreement with CHII, an independent valuation of CHII was performed by Centri Valuation Services, LLC, as of June 15, 2020. Based, in part, on this valuation, the terms of the Share Exchange Agreement with CHII are such that, to reflect any difference between the CHII Valuation and the liabilities being released from the SOLI consolidated financial statements by CHII, Charles O. Scott will receive consideration in the form of 1,000,000 shares of SOLI common stock, in addition to a payment from SOLI to Mr. Scott of $50,000, which is due within 90 days of the Closing Date.
Upon the closing of the Share Exchange Agreement with CHII, SOLI’s then President, CFO and Director, Joshua Flood, resigned as an officer and director of SOLI in order to devote his full-time efforts to running the day to day operations of CHII as its President. Mr. Flood submitted his resignation in May 2020 effective at the Closing. Upon Mr. Flood’s resignation from SOLI, Charles O. Scott, and the other officers and directors of SOLI will remain the same, the CFO position was assumed by Charles O. Scott, and our current Director, Gregory Arms also assumed the position of Interim President of SOLI.
