Windswept Environmental Systems, Inc. (fka WEGI)

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WEGI IS TRYING TO COLLECT 7.5 MILLION IN LAWSUITS>

PLEASE NOTE THESE FUNDS > "...are included in our accounts receivable"

Item 1. Legal Proceedings


We are a plaintiff in approximately 19 lawsuits claiming an aggregate of approximately $7,500,000 pursuant to which we are seeking to collect amounts we believe are owed to us by customers that are included in our accounts receivable, primarily with respect to modifications to our scope of work. The defendants in these actions have asserted counterclaims for an aggregate of approximately $1,500,000.


We are a party to other litigation matters and claims that are normal in the course of our operations, and while the results of such litigation and claims cannot be predicted with certainty, management believes that the final outcome of such matters will not have a materially adverse effect on our consolidated financial statements, results of operations and cash flows.