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LEGAL
9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
LEGAL

NOTE 12 — LEGAL

 

From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material effect on the Company’s business, financial condition, results of operations or cash flows.

 

In August 2023, a creditor of Push Interactive, LLC, (“Push”) the wholly-owned subsidiary of DLQ, Inc. filed a complaint against Push in the Superior Court of the State of California, County of Los Angeles, claiming an unpaid principal amount of $48,879.00 were due. On January 26, 2024, the parties entered into a Mutual Release and Settlement Agreement whereby Push was to pay the creditor the total sum of $55,000.00 payable in six installments beginning on March 1, 2024. On June 12, 2024, the Court entered a Notice of Entry of Judgement against Push in the amount of $35,240.00 for the unpaid balance.

 

On February 26, 2024, a former employee of DLQ, Inc. filed a AAA arbitration demand against the Company, Logiq, Inc. and DLQ, Inc. claiming breach of contract and statutory wage payment violations. The parties agreed to stay the arbitration to explore possible resolution of the dispute, subject to rescission. On May 22, 2024 the stay was rescinded and the parties are proceeding with the arbitration, which is in the early stages. Although the Company intends to vigorously defend against these claims, there is no guarantee that they will prevail. The Company is currently unable to determine the ultimate outcome of these proceedings or to determine the amount or range of potential losses associated with the proceedings.