Note 6 – Commitments and Contingencies

Litigation, Claims and Assessments

In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations.

Previously, the Company entered into a litigation with Bang Holdings in order to have the restrictions on its shares removed. A settlement was reached in which Bang Holdings agreed to remove the restriction on the Company’s shares. Our investment in Bang Holdings Corp., is recorded at fair value on December 31, 2022 and December 31, 2021. In December 31, 2021, a loss of $195,000 was recorded through other expense on the income statement for the period then ended.

Consulting Fees

The Company paid its CEO $10,000 per month as compensation on a month-to-month basis however this terminated in the second quarter of 2022. It was recorded in general and administrative expenses-related parties on the consolidated statement of operations.