v3.26.1
LITIGATION LIABILITY
6 Months Ended
Jun. 30, 2026
Litigation Liability  
LITIGATION LIABILITY

NOTE 5 – LITIGATION LIABILITY

 

On December 12, 2024, the Court of Alaska entered a judgment against the Company. The total judgment recognized in the year ended December 31, 2024 was $618,994. The judgment accrues interest at an annual rate of 8.5% until paid.

 

Interest expense totaled $14,959 and $26,179 during the three months ended June 30, 2026 and 2025, respectively. Interest expense totaled $25,964 and $26,179 during the six months ended June 30, 2026 and 2025, respectively. The total litigation payable balance as of June 30, 2026, is $697,341, consisting of the $671,377 balance at December 31, 2025 plus 2026 accrued interest of $25,964.

 

The Company is actively pursuing legal remedies to vacate the judgment on the grounds that the underlying asset purchase agreement was never consummated and no assets were delivered. The full amount of the judgment, together with accrued interest, has been recognized as a litigation payable in the accompanying consolidated balance sheet, as the obligation constitutes a determinable legal liability recorded in accordance with ASC 450.