Re: Reverse Splits
in response to
by
posted on
Mar 16, 2021 11:25AM
Combining Classic Mineral Exploration with State of the Art Technology
In the 10-Q LBSR filed (in December 2019) for the three months ended 10/31/2019, this is the statement under the heading of Legal Proceedings:
We currently have no outstanding litigation.
In the next filing - the 10-K filed for the year ended 1/31/2020, this is under Legal Proceedings:
On August 22, 2019 (and amended on December 23, 2019), the Company filed a complaint with the Superior Court of Arizona (Case No. C20194139), demanding the titles and possession of certain vehicles and equipment of the Company from our former CEO, as well as seeking recovery of damages from the former CEO in an amount of not less than $50,000. None of the vehicles and equipment, individually or in total, have any material net book value (being fully depreciated) as of January 31, 2020.
If I'm calculating correctly, 8/22/2019 is before 10/31/2019, which would mean the statement We currently have no outstanding litigation as of 10/31/2019 would be incorrect.
Also notice that the vehicles and equipment are fully depreciated - they have no value on the company's books. And why would you sue to get $50,000 from somebody that you owe 2-3-4 times that amount. Assuming this is the entirety of the lawsuit, what a waste of time and money. I'm wondering if title to the vehicles is in JB's name, because if it wasn't, why didn't they seize those items when they stole everything else.
Does anyone other than Jay need a company car? And does he not have a vehicle for running around on the property?
Has anyone read the lawsuit and can tell us what the 'recovery of damages' entails?