Hi 007, 

Thank-you for your compliments.  It was a team effort for sure, and our investors played no small part.

Also, thank-you for posting your question here.  I will do my best to answer.

First and foremost, it is important for the Poster you quoted to realize that this issue, like many decisions, was made based upon numerous factors and it was not just a straight line connecting a to b and, as such, complicates a simple answer. Also, it is important to understand that Board discussions are not the purview of the public, albeit the conclusions are.

Notwithstanding the above, I do believe the following facts could be of some help:

1. This was a claim and not a law suit.

2. It was not with me, but with my father and his Company (original IP holder)

3. The issue was discovered during KPMG’s audit of 2017 and as such had to be disclosed in the 2017-year end financials.

4. The claim was settled at the end of April (when the stock was trading at between 53-56 cents).

5. The claim was settled for a significant value below the claim amount (claim was above $5.4MM and settlement was approx. $3.4MM).

6. The claim was settled for shares rather than $$$$.

7. Most importantly the claim was not settled with shares priced at market (53-56 cents), but an arrangement was made to settle some of the claim with 70 cent units with the balance at 59 cents…both above market.

Other facts that can speak to this issue are:

1. KPMG signed off on the statements

2. The quality and background of our board members

3. The Secretary of the board is also the company’s legal counsel

4. The quality of board member that recently joined which, in my opinion, significantly strengthens the board, and who would not have joined until he was fully comfortable with all aspects of the recent audit, including this claim and its resolution.

Bottom line:

A $5.4MM claim was made which obviously the Board recognized as being a claim.  Had it been paid in cash it would have been disastrous for the Company which I am sure even the Poster you quoted could see.  It was also important that this be settled sooner rather than latter, and not have it hanging out there as an unresolved $5.4MM claim, for obvious reasons. I would suggest that as long as this issue was unresolved the Company would have a difficult, if not imposable, time raising capital.  Had the claim been settled in full with stock prices prevailing at the time, shares of over 10MM would have been issued.  Nobody usually trades a cash claim for stock at prevailing market price, unless you can unload the stock and access the cash relatively quickly.  Usually more stock is given to offset the perceived risk.  The more illiquid a stock the more stock that is usually given.  In this situation we settled the claim not only at a Lower amount but ALSO at higher stock prices.

Hope that helps,

Peter