Note 13 - Commitments, Legal Claims, And Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Note 13 - Commitments, Legal Claims, And Contingencies

NOTE 13 – COMMITMENTS, LEGAL CLAIMS, AND CONTINGENCIES

As discussed in Note 5, the Company is committed to contributing $2,000,000 to CleanWave by February 14, 2021 to fund the joint venture’s operations. The Company had contributed $511,573 as of June 30, 2019.

The Company has experienced a shortage of cash to pay many of its service providers and contractors on a timely basis. This has resulted in demands for payment, liens and lawsuits filed against the Company. The following are current lawsuits and liens outstanding and that are in various stages of verification by the Company and negotiation with the creditors:

Consultant or Service Provider	Date Filed	Amount	Accrued as of June 30, 2019	Status
Gravity Capital	May 13, 2019	$ 1,690,761	$ 1,690,761	Past Due
Emigdio Preciado	June 7, 2019	$ 46,750	$ 46,750	Lien, Verifying
Rolando Dizon	June 10, 2019	$ 60,320	$ 60,320	Lien, Verifying
Samuel Ochoa (12th Str)	June 10, 2019	$ 438,730	$ 438,730	Lien, Verifying
Asphalt Surfacing	July 8, 2019	$ 26,750	$ 26,750	Lien, Verifying
Gibraltar Construction	August 8, 2019	$ 311,577	$ 311,577	Lawsuit, Negotiation
Samuel Ochoa (10th Str)	September 3, 2019	$ 399,800	$ 399,800	Lawsuit, Negotiation
Eric Tran et al	September 17, 2019	$ 1,504,488	$ 1,504,488	Lawsuit, Verifying
Mark Mersman (Severance)	September 25, 2019	$ 125,000	$ 125,000	Threatened
Scott Cox (Severance)	September 25, 2019	$ 125,000	$ 125,500	Threatened

The Company accrued the amounts as noted above but has not agreed that these amounts are all legitimate payables. Of the above accrual balance, $545,000 is classified as a contingent liability since this amount is lacking support and will likely be disputed by the Company.