Volt Carbon Technologies Inc (TORVF)

[surfkast]

CONTINGENCY
The Company has been named as a defendant in a statement of claim filed on January 5, 2021
in the Province of Ontario. The plaintiff is seeking $814,820 for unpaid compensation, and
$1,000,000 for wrongful termination and damages. The unaudited condensed consolidated
interim financial statements include a provision for unpaid compensation of $241,820.
Management has filed a statement of defense and counterclaim. The counterclaim against the
plaintiff and other non-arm’s length parties seeks damages up to $3 million, plus further
amounts which will be particularized prior to trial. The parties are in the process of exchanging
affidavits of documents. Examinations for discovery have yet to be scheduled because the
plaintiff is in the process of retaining new counsel. As the outcome of this lawsuit and any
liability to the Company cannot be reasonably determined at this time, no additional provisions
have been made in the unaudited condensed consolidated interim financial statements.