It is a lot worse than that...OWOO's World Class Management Style (ie "Kick the Can Down the Road") backfired on them in this case with Gel. Instead of paying off the original debt (thru conversion at a higher price) for only $50,000 - they ended up compounding the problem by entering into new debt** to pay off the judgment which was nearly twice as high ($98,000) risking a conversion price on the new debt that may be at an even lower price than the original debt - simply brilliant!
The LG lawsuit is just as bad - the original debt is $186,158 in principal and accrued interest. Following various hearings, on August 7, 2015, the Company was ordered by the court to pay $296,086
**Entering into new convertible notes seems to have been the only solution since they have ZERO cash.
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