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COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 13 – COMMITMENTS AND CONTINGENCIES

 

Employment contracts

 

Our Executive Officers have entered into employment contracts and confidentiality, non-disclosure and assignment of invention agreements. The most substantial provisions include;

 

  ● Compensation of three (3) times the employee’s annual salary upon the Termination Date and any target bonus earned, or if termination occurs within 12 months of a change in control, then the terminated employee shall receive two (2) times the employee’s annual salary and any target bonus earned.
  ● Continued coverage under any health, medical, dental or vision program or policy, in which they were eligible to participate at the time of employment termination, for 12 months.
  ● Provide outplacement services through one or more outside firms of the employee’s choosing up to an aggregate of $50,000.

 

There are no other arrangements or plans in which we provide pension, retirement or similar benefits for any of Executive Officers or Directors.

 

Litigation

 

In the normal course of business, the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and we accrue for adverse outcomes as they become probable and estimable.

 

On December 29, 2025, the Company terminated an officer for cause. The officer has contested all allegations and has, so far, submitted a worker rights complaint with the State of Washington Department of Labor and Industries (the “Department”), which the Company has contested as having no foundation or basis in fact.

 

On April 30, 2026, the Company was informed that the Department had sided with the plaintive and on June 11, 2026, the Company was on informed that the initial appeal concerning the investigation by the Department had determined that the worker rights complaint filed by a former officer was justified and assessed the Balance of Wages, Interest & NSF Fee Due to $186,960.97 with an interest accrual of 1% per month. The Company made an additional appeal claiming that the Departments decision as having no foundation or basis in fact and strongly believe it will be successful in its claim. Never the less, the Company’s recorded reserves should cover the assessed amount and will not affect future results.