ITYS
2 days ago
I SUSPECT same will happen with GEVI/MFB and lawsuit out of wood work as INVESTORS who bought in at .12 won't be able to get their money out
YET Conboy fills his pockets !
RINSE REPEAT of ECOB
ECOB SEC Filings - Eco Building Products, Inc. - Annual Report, Proxy Statement, Prospectus (fintel.io)
Item 1.02 Termination of a Material Definitive Agreement
https://fintel.io/sfs/us/ecob
On May 1, 2015, Eco Building Products, Inc. (the ?Company?) received a letter from The Home Depot, Inc. (?Home Depot?) that the Amendment #2 to The Home Depot Supplier Buying Agreement, dated as of February 10, 2014 (the ?Agreement?) was terminated. Home Depot will continue to sell through any Company products remaining in their stores but as of May 11, 2015 (the ?Termination Date?), any pending purchase orders would be cancelled.
ECO Building Products, Inc. – https://www.bamsec.com/companies/1409885/eco-building-products-inc
On February 14, 2011, Eco Building Products, Inc., formerly EcoBlu Products Inc. (“Eco”) entered into an investment agreement (the “Investment Agreement”) with Manhattan Resources Limited, a Singapore Corporation (“MRL”) and Dato’ Low Tuck Kwong (“LTK”), a controlling shareholder of MRL (the “Investment Agreement”). On February 14, 2011, Eco also entered into a revolving credit and warrant purchase agreement (the “Credit and Warrant Agreement”) with MRL. Agreements, securities, and obligations also were confirmed with SLM Holding PTE, Ltd. (SLM) a wholly owned subsidiary of MRL, and Swanny Sujanty, an individual, including transfer of 9,500,000 shares of restricted stock from Steve Conboy, the CEO of Eco, to Swanny Sujanty. Copies of these above agreements (the "Past Agreements") and their terms were disclosed under the Eco Form 8-K filling on February 16, 2011. Herein "MRL" includes MRL, LTK, SLM, and Swanny Sujanty, considered affiliates to MRL by Eco. At various points, the past year, Eco, offered MRL for MRL and affiliates, an arrangement whereby all their interests in Eco and all obligations of Eco to any of them would be exchanged for a promise to make a future buyout payment.
On July 9, 2012 lawyers for Eco advised Eco that the aspect of the Offer, below, and the communication that an agreement was reached is legal grounds, subject to potential judicial determination, supporting Eco's conclusion that MRL has agreed to Eco's offer including selling all interests back to Eco for promise of a future payment, as stated below. If judicial action was taken, Eco may or may not be successful. Previously, on June 13, 2012, Eco was advised that MRL had accepted Eco's Offer.
The Offer was as follows:
1. MRL surrenders all rights and interests in Eco. This includes all securities.
2. Eco agrees to repay or pay MRL the sum of $10,000,000 USD on or before 24 months from acceptance, or June 13, 2014. (Recently determined to be an additional $500,000 USD, total $10,500,000.)
3. The only obligation that survives the settlement or agreement is the obligation of Eco to pay the sum stated. Based on the Offer and the communicated acceptance, Eco proceeded to prepare and provide a document to memorialize the agreement but was informed by MRL that it was not accepted. Various communications followed.
On or about September 7, 2012, a law firm claiming to represent MRL supplied a letter to Eco. On September 19, 2012 Eco obtained the advice of litigation counsel which, after review and consultation,
concluded to the effect that the letter is material, notwithstanding current or recently past communications impacting upon the veracity of the contents of the letter, or the intention of the letter. The contents of the letter include statements advising Eco that Eco is in breach of the Revolving Credit and Warrant Purchase Agreement referenced above ("Revolving Agreement"), and the Investment Agreement dated February 14, 2011 referenced above. It is not clear if that law firm (the firm that sent the letter) also represents the other parties noted in the agreements other than MRL. The letter claims the transactions, previously reported, by Eco relating to the Purchase Agreement and granting of a security interest, August 13, 2012, per the previously filed Form 8K of Eco August 22, 2012, was a breach of various provisions of the agreements relating to MRL, they (MRL) will enforce their rights, and reserve rights, and that an Event of Default has happened under Section 6(a) of Revolving Agreement, in that Eco failed to pay the $5,000,000 allegedly due. The same claims of default as to interest, and that they do not agree that MRL agreed to forebear from individually enforcing rights or remedies. Eco takes the position that an agreement, altering the rights of MRL and related others, was previously offered and accepted and that it means that MRL and noted affiliates surrendered to Eco rights and interests in Eco and no longer can claim they own securities in Eco, and this was in exchange for Eco supplying the concurrent promise to pay the sum of $10,500,000 by June 13, 2014; that the securities held by MRL and affiliates are or should be deemed cancelled or retired; and that Eco is willing to negotiate and entertain, though not obligated, repaying the sum with interest, as well as any "amendment" or terms for orderly procedures of the parties. This would mean that Eco also believes the Past Agreements no longer apply. Eco is now seeking the advice of counsel and has believes that MRL is open to settle and resolve the differences and demands of MRL communicated to Eco and while it plans to vigorously defend and protect its interests, it also continues to express the interest to reach an amicable resolution with MRL. No assurance can be given that Eco will be successful in the resolution, if possible, of such claims.
Name and Principal Position Fiscal
Year Salary ($) Bonus Option
Awards All Other
Compensation Total ($)
Steve Conboy, President,
CEO, CFO Director (1) 2012
2011
$ 315,000
Principal Executive & Financial Officer
Mark Vuozzo (2)
Chief Technical Officer and Director 2012
2011 $
$ 235,000
Pursuant to the terms of the Credit and Warrant Agreement, MRL extended a $5,000,000 revolving facility (the “Loan Facility”) in advances of $500,000, each, from time to time. On July 26, 2011, the Company borrowed $3.0 million on the Loan Facility. In consideration of the Loan Facility, the Company issued MRL a 5-year warrant to subscribe for 50,000,000 common shares at an exercise price of $0.10 per share (the “Warrant”). The warrants were valued at $3,025,148 on July 26, 2011 and expire on July 26, 2016. The valuation of these warrants was determined using the multi-nomial lattice model using an exercise period of 5 years, risk free rate of 1.51%, volatility of 163%, and an exercise price of the warrant is $0.1 per share.
During the year ended June 30, 2011, the Company entered into an investment agreement and a revolving credit and warrant purchase agreement with Manhattan Resources Limited, a Singapore Corporation (“MRL”) and Dato’ Low Tuck Kwong (“LTK”), a controlling shareholder of MRL. Under investment agreement, the Company received $5,000,000 in exchange for issuing 81,000,000 shares of its common stock. Subsequently, upon the effective date of the revolving credit and warrant purchase agreement the Company has the ability to borrow up to an additional $5,000,000. Besides the $3,000,000 was borrowed in July, 2011 the remaining $2,000,000 was borrowed between October and November 2011. With the infusion of the initial $5,000,000 under the investment agreement and up to an additional $5,000,000 under the revolving credit and warrant purchase agreement, management believes it the funding provides sufficient capital to continue operating the Company and allow it to become profitable, however; no assurances can be made that current or anticipated future sources of funds will enable the Company to finance future periods’ operations. As of October 12, 2012 the Company had cash on hand of $72,799 and $5,000,000 of capital available to them under the MRL line of credit, of which the entire $5,000,000 was borrowed during October and December, 2011 and the Company has stopped paying interests recently due to the Company position, contradicted by MRL, that termination of agreement applies and that MRL is no longer the major investor of the Company. Since the Company had borrowed the entire $5,000,000 line of credit during the three months ended December 31, 2011, which made no available credit under this agreement at this period.
Name and Principal Position Fiscal
Year Salary ($) Bonus Option
Awards All Other
Compensation Total ($)
Steve Conboy, President,
CEO, CFO Director (1) 2012
2011 $
$ 315,000
Principal Executive & Financial Officer
Mark Vuozzo (2)
Chief Technical Officer and Director 2012
2011 $
$ 235,000
14. Subsequent Events
During the year ended June 30, 2012, the Company offered MRL, an arrangement for all their interests in Eco and all obligations of Eco to any of them would be exchanged for a promise to make a future buyout payment. On July 9, 2012 lawyers for Eco advised Eco that the aspect of the Offer, below, and the communication that an agreement was reached is legal grounds, subject to potential judicial determination, supporting Eco's conclusion that MRL has agreed to Eco's offer including selling all interests back to Eco for promise of a future payment, as stated below. If judicial action was taken, Eco may or may not be successful.
Previously, on June 13, 2012, Eco was advised that MRL had accepted Eco's Offer.
The Offer was as follows:
1. MRL surrenders all rights and interests in Eco. This includes all securities.
2. Eco agrees to repay or pay MRL the sum of $10,000,000 USD on or before 24 months from acceptance, or June 13, 2014. (Recently determined to be an additional $500,000 USD as an interest, total $10,500,000.)
3. The only obligation that survives the settlement or agreement is the obligation of Eco to pay the sum stated.
In order to continue to gain market shares in the lumber industry, on July 11, 2012, the company received one hundred million or $100,000,000.00 dollar standby letter of credit from InsurFinancial Holdings Plc backed by Bank of China to support the major expansion in the Company's core business. This facility credit support will last for four years and will not expire until December 4th, 2016.
Additionally, the agreement grants an option that allows InsurFinancial Holdings, Plc to convert their fee into an equity investment of up to five million or $5,000.000.00 dollars each year for the next four years. The option calls for the share price of the additional equity investment to be calculated at 120% of the three month trailing average of ECOB's stock. The Company now has the availability of credit which should enhance credit support for the future liabilities incurred in the rapid expansion of the demand for its products.
On August 13, 2012, the Company entered into a Securities Purchase Agreement wherein the Company agreed to privately issue and sell and the purchaser identified on the signature page to the Purchase Agreement or the Purchaser agreed to purchase (i) $1 million, in the aggregate, of Original Issue Discount Senior Secured Convertible Debentures due on November 13, 2012 or the Debentures and (ii) an aggregate of 3,500,000 shares of the Company's common stock, par value $0.001 per share. The closing of the Offering occurred on August 13, 2012.
The Company sold to the Purchaser the Debenture having a principal amount of $1,080,000. At any time after the six month anniversary of the Original Issue Date until the Debenture is no longer outstanding, the Debenture shall be convertible, in whole or in part, into shares of Common Stock at the option of holder, subject to certain conversion limitations set forth in the Debenture, at a conversion price equal to the lesser of (i) $0.08, subject to adjustment there under, and (ii) 80% of the average of the lowest 3 closing prices during the 3 trading days immediately prior to any such date of conversion.
2012 10-K – ECO Building Products, In
STOLE BLUWOOD/ REVERSED
Purchase, Distribution & Services Agreement #1
On August 24, 2009, the Company entered into a Purchase, Distribution & Services Agreement, (the “Agreement”) with the owner of technical data and intellectual property for a protective coating, in order to obtain an exclusive supply of the product, use of the technical data, intellectual property and other information relating to the product and use of the trademarks, together with certain distribution, marketing and sales rights. Pursuant to the Agreement, the Company has guaranteed it will purchase a minimum of fifty (50) 275 gallon totes of product in the first twelve month period. The Company is required to increase the minimum quantities by 25% in the second year, to 62.5 totes. The initial term of the agreement is two years and will renew for additional one year terms without further action unless otherwise terminated.
With regard to the above agreement, the Company learned fiscal 2010 from third parties that the seller's formula contains a toxic and carcinogenic contaminant known as chlorothalonil. After confronting the manufacturer, it was confirmed the toxin exists in the product and the Company immediately terminated the agreement with cause. The Company’s management does not know how long the toxin has been in the solution. Testing and investigation is ongoing. The seller has indicated nothing as to removing the toxin and is continuing its own investigation of its liabilities.
The Company has not made all of its original purchase commitments in this agreement, due to non-performance by the seller and the existence toxins as described above. Further, the Company had temporarily discontinued selling the product and was pursuing alternative solutions internationally. Management believes that the issue has been isolated to the concentrate form and is not affecting the end user coated product. The Company is currently in the discovery phase of determining the overall impact of this issue, but legal counsel has advised the Company that the seller is responsible for any liabilities generated from the use of the product.
SCREWED ASIANS OUT OF 10M/ TRIED TO REVERSE THEIR BLENDS
Purchase, Distribution & Services Agreement #2
On January 18, 2011, the Company entered into an AF21 Product, Purchase, Sales, Distribution & Service Agreement, (the “Agreement”), with Newstar Holding Pte Ltd, a Singapore Corporation, and Randall Hart, an Indonesian National, the inventors and owners of technical data and intellectual property for a protective coating in order to obtain an exclusive supply of the product, together with certain distribution, marketing and sales rights. In addition, a significant shareholder of Newstar Holding Pte Ltd is also a significant shareholder of MRL. The product is a non-toxic non-corrosive fire inhibitor. Pursuant to the Agreement, the Company guaranteed it will purchase a minimum of six hundred fifty (650) two hundred and forty five (245) gallon totes of product in the first two-year period at a cost of $11.40 per gallon, making the total purchase commitment $1,815,450 for the first two years. The Company is required to increase the minimum quantities in the third year to 842 totes at $11.40 per gallon, making the total purchase commitment $2,351,706 for year three. In the fourth year the Company is required to increase the minimum quantities to 1,264 totes at $11.40 per gallon, making the total purchase commitment $3,530,352 for year four. There are no penalty clauses other than cancellation of the agreement if the minimum purchase commitments are not met. If the agreement were to be cancelled it would have a significant impact on the Company's operations until a replacement product could be arranged.
Legal Proceedings
The Company has filed a legal action against the company with which it has signed a Purchase, Distribution and Services Agreement, for lack of performance in the delivery of chemical product and protection of sales territory (see Purchase, Distribution & Services Agreement #1, described above). The Company accrues the legal costs associated with loss contingencies as the associated legal services are rendered.
Moreover, on or about September 7, 2012, a law firm claiming to represent MRL supplied a letter to Eco. On September 19, 2012 Eco obtained the advice of litigation counsel which, after review and consultation, concluded to the effect that the letter is material, notwithstanding current or recently past communications impacting upon the veracity of the contents of the letter, or the intention of the letter. The contents of the letter include statements advising Eco that Eco is in breach of the Revolving Credit and Warrant Purchase Agreement referenced above ("Revolving Agreement"), and the Investment Agreement dated February 14, 2011 referenced above. It is not clear if that law firm (the firm that sent the letter) also represents the other parties noted in the agreements other than MRL. The letter claims the transactions, previously reported, by Eco relating to the Purchase Agreement and granting of a security interest, August 13, 2012, per the previously filed Form 8K of Eco August 22, 2012, was a breach of various provisions of the agreements relating to MRL, they (MRL) will enforce their rights, and reserve rights, and that an Event of Default has happened under Section 6(a) of Revolving Agreement, in that Eco failed to pay the $5,000,000 allegedly due. The same claims of default as to interest, and that they do not agree that MRL agreed to forebear from individually enforcing rights or remedies.
Eco takes the position that an agreement, altering the rights of MRL and related others, was previously offered and accepted and that it means that MRL and noted affiliates surrendered to Eco rights and interests in Eco and no longer can claim they own securities in Eco, and this was in exchange for Eco supplying the concurrent promise to pay the sum of $10,500,000 by June 13, 2014; that the securities held by MRL and affiliates are or should be deemed cancelled or retired; and that Eco is willing to negotiate and entertain, though not obligated, repaying the sum with interest, as well as any "amendment" or terms for orderly procedures of the parties. This would mean that Eco also believes the Past Agreements no longer apply.
Eco is now seeking the advice of counsel and has believes that MRL is open to settle and resolve the differences and demands of MRL communicated to Eco and while it plans to vigorously defend and protect its interests, it also continues to express the interest to reach an amicable resolution with MRL. No assurance can be given that Eco will be successful in the resolution, if possible, of such claims.
SEC letters to conboy
UPLOAD – ECO Building Products, Inc. – BamSEC
Purchase, Distribution & Services Agreement #1
On August 24, 2009, the Company entered into a Purchase, Distribution & Services Agreement, (the “Agreement”) with the owner of technical data and intellectual property for a protective coating, in order to obtain an exclusive supply of the product, use of the technical data, intellectual property and other information relating to the product and use of the trademarks, together with certain distribution, marketing and sales rights. Pursuant to the Agreement, the Company has guaranteed it will purchase a minimum of fifty (50) 275 gallon totes of product in the first twelve month period. The Company is required to increase the minimum quantities by 25% in the second year, to 62.5 totes. The initial term of the agreement is two years and will renew for additional one year terms without further action unless otherwise terminated.
With regard to the above agreement, the Company has learned from third parties that the seller's formula contains a toxic and carcinogenic contaminant known as chlorothalonil. After confronting the manufacturer, it was confirmed the toxin exists in the product. The Company’s management does not know how long the toxin has been in the solution. Testing and investigation is ongoing. The seller has indicated nothing as to removing the toxin and is continuing its own investigation of its liabilities.
22
________________________________________
Table of Contents
ECOBLU PRODUCTS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
(UNAUDITED)
________________________________________
The Company has not made all of its original purchase commitments in this agreement, due to non-performance by the seller and the existence toxins as described above. Further, the Company has discontinued selling the product and is pursuing alternative solutions. Management believes that the issue has been isolated to the concentrate form and is not affecting the end user coated product. The Company is currently in the discovery phase of determining the overall impact of this issue, but legal counsel has advised the Company that the seller is responsible for any liabilities generated from the use of the product.
Purchase, Distribution & Services Agreement #2
On July 26, 2009, the Company entered into an AF21 Product, Purchase, Sales, Distribution & Service Agreement, (the “Agreement”), with Megola, Inc., the owner of technical data and intellectual property for a protective coating in order to obtain an exclusive supply of the product, together with certain distribution, marketing and sales rights. The product is a non-toxic non-corrosive fire inhibitor. Pursuant to the Agreement, the Company guaranteed it will purchase a minimum of four hundred fifty five (455) two hundred and forty five (245) gallon totes of product in the first twelve month period. The Company is required to increase the minimum quantities in the second year, to 842 totes and in the third year to 1,263 totes.
The current agreement expired on November 11, 2010. In December 2010, the Company purchased 37,500 gallons of AF21 at a total price of $303,750. This inventory was used as partial security for the Company’s $570,500 short-term borrowing from Manhattan Resources Limited (see Note 6). As of the date of these financial statements, the Company has no obligation to purchase additional inventory from Megola, Inc.
13. Subsequent Events
On September 9, 2010, the Company’s Board of Directors approved a resolution to increase the number of authorized shares from 100,000,000 to 500,000,000. In October 2010 the Company filed a Schedule 14C Information Statement with the SEC stating the same, which was declared effective by the Commission in November 2010. The Company submitted the necessary amended articles of incorporation to the State of Colorado in December 2010, and these were approved by Colorado in January 2011.
On February 14, 2011, the Company entered into an investment agreement (the “Investment Agreement”) with Manhattan Resources Limited, a Singapore Corporation (“MRL”) and Dato’ Low Tuck Kwong (“LTK”), a controlling shareholder of MRL (the “Investment Agreement”).
________________________________________
Table of Contents
ECOBLU PRODUCTS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
(UNAUDITED)
________________________________________
On February 14, 2011, the Company also entered into a revolving credit and warrant purchase agreement (the “Credit and Warrant Agreement”) with MRL. A summary of the material terms of these two agreements are as follows:
(i) Pursuant to the terms of the Investment Agreement, LTK will subscribe for 81,000,000 shares in the Company (“Sale Shares”), representing approximately 45.5 percent of the Company’s resulting total issued and outstanding common equity, for an aggregate consideration of $5,000,000. LTK will sell the Sale Shares to MRL, for the same consideration, subject to approval from shareholders of MRL.
(ii) Pursuant to the terms of the Credit and Warrant Agreement, MRL will extend a $5,000,000 revolving facility (the “Loan Facility”). In consideration of the Loan Facility, the Company will issue MRL a warrant to subscribe for 50,000,000 common shares at an exercise price of $0.10 per share (the “Warrant”).
In the event MRL purchases the Sale Shares from LTK and if they fully exercised the Warrant which would be granted upon final approval of the Credit and Warrant Agreement, both of which are subject to MRL shareholder approval, MRL would acquire an aggregate of 131,000,000 Shares representing approximately 54.5 percent of the resulting total issued and outstanding common equity of the Company, for an aggregate consideration of $10,000,000. As of the date of these financial statements no warrants have been issued to MRL due to the remaining approval requirements.
On February 16, 2011, the Company received payment of $5,000,000 from LTK pursuant to the Investment Agreement.
ITYS
2 days ago
MANY who thinks Conboy is a crook lol
December 11, 2020 12:10:35 PM
Post#
Conman's horse shit resignation after the 3rd product test proved a scam, never passed a fire, rot, mold and termite test. Never!
https://www.hbsdealer.com/news/conboy-stepping-down-ecob
The fall guy: Mark Vuozzo And Conman attempt to sell a remix of stolen patented trade secrets, Conman say's: I know Nuthink! Nothink!
YET! Conman Resigned 2015!!! https://www.sec.gov/Archives/edgar/data/1409885/000149315219014034/form10-k.htm ("resignation of Chief Executive Officer
On June 15, 2015, Mr. Steve Conboy submitted a letter to the Board of Directors (the “Board”) of the Company resigning from the positions of Chief Executive Officer and President and Chairman of the Board, effective immediately on such date.
Appointment of Chief Executive Officer
Effective as of the close of business on June 15, 2015")
So, Conery, (Con ya more) Sues Vouzzo? > https://casetext.com/case/mak-llc-v-vuozzo
As of June 30, 2017, we had 4 full time employees consisting of Mr. Tom Comery, our Chief Executive Officer, Mr. Mark Vuozzo, our Chief Technical Officer, a Controller and a Director of Operations. Mr. Vuozzo was put on unpaid administrative leave on or about June 30, 2017 and has subsequently left the company.
After our fiscal year end of June 30, 2017, the Company hired Jinxue Jiang, PhD. as the Company’s Director of Chemistry and Technology. Dr. Jiang officially assumed his new role on August 14, 2017. He will be responsible for leading the Company’s scientific efforts including research and new product development. Dr. Jiang is also the author of fifteen peer reviewed papers and two patents and is considered a subject matter expert in the areas of wood physics and chemistry as well as polymer science. He has extensive experience in wood protection, high performance composites, adhesives and coatings as well as intumescent fire retardants.
Stolen from Singapore inventor and holder or world rights, Conman walks out Scott free and begins his own stolen juice LCC.
"Steve has built this company with breakthrough products, his sheer will and the spirit of his team," said lead independent director Gerry Czarnecki. "He has powered through a lot of obstacles to get the company where it is today. He, of course, will remain an important stockholder of Eco, and in that role will stand to benefit from the long-term success of the company."
Czarnecki added, "After seven years of building this company, Steve has determined it is now time to pass the baton on to new leadership. While we will miss him greatly, we do respect his decision. We offer our deeply felt thanks and wish him all the best."
"Eco has been a phenomenal experience for me, personally, and I am so proud of the world-class team I leave behind," Steve Conboy said. "Eco's team is in great shape to face the future as they ramp up to support higher volume production of Eco's unique coating services in the national supply chain with the ability to attract more customers from coast to coast."
Not only from Day one, ECO Blue crap, based on simple formulas Conman stole, but Hey just get ya a Payola product citification from the jackals and you too can BS your scam and rip off fool's with delusions of 'get rich-quick- NONSENCE!!
But really, seriously all it took me years ago when ConMan's boiler room kept cold calling was to look at the financial statments, 10K's and Q's.They's so full of spit! exaggerated nonsense juxtaposition balance to make it appear as there was something but, numbers don't lie Con artists do!
I ,mean even had you the slightest hope this fire crap was worthwhile, screw that too, the main feature of formula is as common as 1,000's of others that are no more protective than Dow's fire crap. Albeit, you'd be better of with Dow verses scam rip-off BS.
Add in The suite I've sited, This POS is ripe for a class action from hell.
2015 conman resigned? That usually means as the financals indicate, he was stealing money in the books (two sets of books, [wink]).You'd want to pierce the corporate shield and woop ConMan's A! up-side down and sideways. !
Otherwise? READ THE DAM FINACIAL STATEMENTS AND CONTRACTS. Before chasing get-rick-quick delusions!
About Us | M-Fire Technologies (mfiretechnologies.com)
AF31-EV | M-Fire Technologies (mfiretechnologies.com)
Outstanding payroll taxes
Beginning in December 2009, Eco incurred unpaid federal payroll tax liability. This liability continued to grow. At June 30, 2015, The Company owed approximately $730,000 in past due federal and state payroll taxes, of which approximately $660,000 is due to the Internal Revenue Service (IRS). There were also penalties and interest incurred. The Company subsequently paid $25,000 to the IRS under a $20,000 per month payment arrangement. Due to financial constraints, the Company could not continue the payment arrangement. The IRS intervened and has executed a UCC filing for the outstanding tax liability. No payment arrangement exists for State tax purposes. The IRS has designated Eco Building Products, Inc as unable to pay currently and no action is being taken at this time. The Company has accrued balance of $654,390 as of June 30, 2017 and 2016 and is included in payroll and taxes payable in the consolidated balance sheets.
Port of Tacoma v Eco Building Products
On May 27, 2016, the prior landlord of the Tacoma, WA, facility obtained a judgment for the collection of unpaid rent in the amount of $168,998 inclusive of interest and attorney fees. The Company has accrued balance of approximately $180,000 as of June 30, 2017 and 2016, respectively, and is included in other payables and accrued expenses in the consolidated balance sheets.
World Global Financing v. Eco Building Products, Inc.
On or about October 15, 2016, A Summons & Complaint has been filed for the sum of $31,118 pertaining to a default on a contract with World Global Financing. This litigation is pending, and the Company has a high level of confidence it will prevail. As a result, no accrual has been established as of June 30, 2017.
Muaz Mutwakil v. Eco Building Products, Inc.
Muaz Mutwakil v. Eco (Superior Court, San Diego County, CA) : Muaz Mutwakil (“Mutwakil”) brought a lawsuit against Eco on January 5, 2017, claiming breach of contract and seeking payment of purported commissions. The Company disputes the validity of the allegations and is vigorously contesting the allegations. The Company thus far has obtained no evidence that Eco and Mr. Mutwakil entered into any agreement and thus, subject to subsequent production of evidence substantiating the claims, is confident about its defense of this action. On May 22, 2018, Mr. Mutawakil submitted a motion to dismiss the complaint with prejudice. Motion to dismiss the case with prejudice was granted.
Pending Litigation between Eco Building Products and former Chief Technical Officer and Board Officer Mark Vuozzo
In May of 2017, Mr. Vuozzo filed a demand for arbitration with the AAA for unpaid salary under a purported employment agreement that the Company is disputing and litigating in CO. This file has since been closed by the AAA. On June 16, 2017 Mr. Vuozzo filed a claim for unpaid wages with the CA Labor Commission which was later dismissed on June 27, 2017 and the file was closed.
On June 26, 2017, the Company filed suit in Colorado against its former CTO, Mark Vuozzo, seeking to enjoin him from retaining, using or disclosing the Company’s intellectual properties including trade secrets. Mr. Vuozzo has since signed a NDA pertaining to such IP and trade secrets as well as a sworn affidavit declaring that he has not retained, nor will he use or disclose any Company trade secrets or confidential information. Further, the Company is disputing the validity of Mr. Vuozzo’s purported employment contract and is seeking damages associated with breach of fiduciary responsibilities. The court recorded notice of Mr. Vuozzo filing a bankruptcy petition. The case was dismissed on February 25, 2018.
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