UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01 Other Events
As previously disclosed, certain subsidiaries (the “Naples Subsidiaries”) of Clearday, Inc. (the “Company” or “we”) and James Walesa, the Company’s Chief Executive Officer, are parties to litigation regarding the Company’s residential community in Naples, Florida. This litigation was referred to as the Benworth Action that was summarized in the Company’s Quarterly Report on Form 10-Q for the Quarterly Period ended September 30, 2023 that was filed by the Company with the Securities Exchange Commission on January 16, 2024 (the “Recent Quarterly Report”) in footnote 7 to the financial statements of the Company included in the Recent Quarterly Report. The Benworth Action arises from a default in the mortgage loan that was previously disclosed by the Company.
On February 5, a Final Judgement of Foreclosure (the “Judgement”) was entered in the Benworth Action. The Judgement provides for the total amounts due in favor of the plaintiff of $6,177,863.28, additional interest at the annual rate of 9.09% from the date of the Judgement, a lien on the property, and the scheduled date for a foreclosure sale of the property on April 4, 2024.
The Company is assessing its alternatives regarding this Judgement, including raising capital sufficient to redeem the property through a negotiated transaction. There can be no assurance that any transaction that would result in the Company raising sufficient capital or being able to redeem the property will be consummated on acceptable terms or at all.
This Current Report on Form 8-K contains only a brief description of the material terms of the Judgement entered into against the Naples Subsidiaries and Mr. Walesa, and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such description is qualified in its entirety by reference to the full text of the Judgement which is attached as Exhibit 10.1 to this Current Report on Form 8-K, and is incorporated herein by reference.
Forward Looking Statements
This communication contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning the Company. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of the Company, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the risks regarding the Company and its business, generally; risks related to the Company’s ability to correctly estimate and manage its operating expenses and develop its innovate non-acute care businesses and the acceptance of its proposed products and services, including with respect to future financial and operating results; the ability of the Company to protect its intellectual property rights; competitive responses to the Company’s businesses including its innovative non-acute care business; unexpected costs, charges or expenses; regulatory requirements or developments; changes in capital resource requirements; and legislative, regulatory, political and economic developments. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC and the registration statement regarding the Company’s previously announced merger, that was filed and declared effective. The Company can give no assurance that the actual results will not be materially different than those based on the forward looking statements. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| No. | Description | |
| 10.1 | ||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
* Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CLEARDAY, INC. | ||
| By: | /s/ James Walesa | |
| Name: | James Walesa | |
| Title: | Chief Executive Officer | |
| Dated: February 9, 2024 | ||