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Legal Proceedings
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings

Note 9 Legal Proceedings

 

In the course of our business, the Company is routinely involved in proceedings such as disputes involving goods or services provided by various third parties, which the Company does not consider likely to be material to the technology we develop or license, or the products we develop for commercialization, but which can result in costs and diversions of resources to pursue and resolve.

 

On November 29, 2021, R. L. Engler filed suit against us in Superior Court in San Diego County, CA, asserting breach of contract for failure to pay a $307,000 promissory note dated March 18, 2021. We entered into a Payment Agreement and Assignment Agreement with the lender in January, 2022, under which we agreed to assign 10% of all funds received by the Company, including proceeds from future equity and debt financing, as payment on the promissory note and the lender agreed not to take any action to collect on the promissory note until December 31, 2023. Our obligations under the promissory note, Payment Agreement and Assignment Agreement are secured by a stipulated judgment for $329,000 being amounts outstanding under the promissory note, plus reimbursement of attorneys’ fees and costs.

 

On March 3, 2022, The Chris Loughridge Trust dated November 27, 2001, the landlord for the facilities that we lease as our corporate headquarters at 11230 Sorrento Valley Road, Suite #220, San Diego, CA 92121, filed an unlawful detainer action against us in the Superior Court of California, County of San Diego. The action seeks payment of approximately $47,500 of unpaid rent, fees and expenses and to terminate our possession of the premises. The non-payment is principally related to our financial position in 2021, after the period covered by this annual report. We have accrued the unpaid rent in our financial statements for the year ended December 31, 2021. We hope to reach a mutually accepted compromise on the unpaid rent, and a new lease as our finances permit.