Accrued Litigation Settlement

3 Months Ended

Mar. 31, 2023

Accrued Litigation Settlement

Accrued Litigation Settlement

 Note 7. Accrued Litigation Settlement

On June 15, 2022, the Security and Exchange Commission’s (SEC) investigation of the Company, initially reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, was settled through the filing of a consent judgment without the Company admitting or denying the SEC’s allegations. As part of the settlement, the Company is required to pay a civil penalty of $450,000, payable in four installments as follows:

· $50,000 upon the entry of the judgment;

· $100,000 within 90 days of the entry of the judgment;

· $150,000 within 180 days of the entry of the judgment; and

· $150,000 within 270 days of the entry of the judgment, plus statutory interest on payments made  after 30 days of the entry of the judgment pursuant to U.S.C. Section 1961

The Company has made total payments of $250,000 towards the civil penalty through March 31, 2023.  As of March 31, 2023 and December 31, 2022, the remaining balance was $200,000 and $300,000, respectively.