NOTE 15 – SUBSEQUENT EVENTS
| | 1. | In October 2024, the Company borrowed another $250,000 from Sushruta to
meet certain working capital needs evidenced by an additional One-Year Note in such principal amount. In October 2024, our SSI-India
subsidiary’s working capital facilities from HDFC Bank were increased by an additional US$1.08 million. |
| | 2. | In April 2024, an ex-shareholder of Otto commenced litigation in the Bahamas, seeking legal confirmation that it holds 9,000 shares (approximately a 9% interest) in Otto. The litigation, in which Otto is one of the defendants, relates to a purported transaction in 2021, at which time Dr. Sudhir Srivastava, the Company’s Chairman, Chief Executive Officer and principal shareholder, was the sole shareholder of Otto. The plaintiff in the litigation alleges that at that time, it acquired the 9,000 Otto shares from Dr. Srivastava. However, as the plaintiff failed to pay the agreed upon consideration for the shares, in July 2022, the shareholding was cancelled. Dr. Srivastava has recently filed an action in the Bahamas to confirm the cancellation of the shares and reconfirm their ownership and both actions are pending in the Bahamian courts. The Bahamian court has issued an interim order to maintain the status quo as it stands today with respect to the 9,000 Otto shares at the center of the dispute, as well as Otto’s shareholdings in SSI-India and SSI-India’s assets during the pendency of the litigation. Based on legal opinions obtained from counsel, the Company believes that there will be a favorable outcome in this case. |
Notwithstanding the foregoing, Dr. Srivastava
and the Company have entered into an Indemnification Agreement on October 12, 2024, pursuant to which Dr. Srivastava has agreed to fully
indemnify the Company for any claims, damages and costs (including legal fees) which it incurs in connection with this litigation or in
relation to any of his ventures prior to consummation of the CardioVentures Merger in April 2023.
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