LIG Assets Inc (LIGA)

[tigerpac]

First off, the report is NOT a 10-Q. This is just a standard OTC unaudited quarterly report.

Secondly, it appears the report suffers from too many cooks in the kitchen. Multiple CPA's involved right now somehow booked $605,675 for Brentwood, TN land onto the Balance Sheet. Yes, the same land they sold in August 2021. Of course no notes to explain this entry.

Also, the Foreverboard equity somehow climbed from $500,000 to $1,052,633 without ever completing the holding company transaction that was discussed in a Feb 2022 PR: Again, nothing to explain how they arrived at $1.052 million.

"As disclosed in the Supplemental Disclosure at OTC Markets, LIG Assets’ total investment of $585,675 USD, will receive a 4% royalty on the sales of ForeverBoard produced at the Shafter, CA facility. The Royalty agreement is capped at $1,200,000 USD over a three-year period. The royalty agreement provides a cash flow and yield ‘floor’ for LIGA. Current customer negotiations suggest a high probability that the plant will be delivering truckload volumes of product over the next 12-16 weeks.

The royalty agreement is part of a two-step process and will be converted to an equity position upon completion of Holding Company for the express purpose of expanding ForeverBoard Plants in the United States and Canada. The Holding Company is expected to be formed no later than April 30, 2022. LIGA will own 51% of the new ‘ForeverBoard Inc.’ The Shafter, CA plant will be transferred into the new LLC and LIGA will purchase the equity of the minority shareholder for $1,500,000 USD. As compensation for a favorable purchase price the minority shareholder will participate in the future upside of the new ‘ForeverBoard, Inc.’ LIGA currently expects aid from the State of Indiana to help fund the new – and much larger – expansion plant in northern Indiana. The expansion plant will have four to five times the capacity of the CA plant."

If LIGA is overstating assets then it means that equity is also being overstated.

I totally believe management is setting up LIGA to be failing ticker here and drive whatever value they can to SMEV and the eventual spin off BGTV.

Lastly, Baker throws out the fishing lure regarding the Buck Lake Ranch property stating he has received an offer to sell land and buildings for $6.2 million. BGTV is the entity that stands to gain the most out of this, not LIGA.. I wonder how long Baker can drag the BGTV spin off out? 2023, 2024?

Mr. Baker has already received a $6.2 million offer to purchase Buck Lake Ranch ‘as is’. However, upon
obtaining zoning for the new RV ‘pull through’ slots the expected sale value is expected to roughly $8.7 million.
A campground similar in size to the proposed fully developed Buck Lake Ranch sold for over $30 million.
BGTV has advanced over $1mm Buck Lake Ranch and will be paid back in installments from continuing
operations or in lump sum should a sale occur.

NOTE 14 – BUCK LAKE RANCH
BGTV Direct currently owns 50.01% of Buck Lake ranch, which will increase to 80%. Most of the debt on the
BGTV Direct balance sheet was used to finance expansion of Buck Lake Ranch. We are currently not
consolidating the Buck Lake financials as a CPA firm in northern IN will be hired to clean up the books and will
no longer be relevant post spin-off.
LIG Assets has advanced $450,000 to BGTV for the purchase of expansion land. Upon securing the larger
development loan to develop Buck Lake Ranch, this intercorporate transaction will be paid back. Mr. Baker has
already received an offer more than $6mm from a well know management firm.
BGTV carries a large receivable of over $1mm due from Buck Lake ranch. This will be paid in installments of
continuing to operate, or paid off in lump sum if sold.