NOTE 12  COMMITMENTS Technology License Agreement The Company entered into a technology license agreement with a third-party vendor for consulting services. Under the agreement, the Company will pay the vendor a minimum consulting amount of $100,000 per year, plus a royalty of 7% of all net sales of the vendors products above $1,428,571 per calendar year. For each of the three and nine months ended September 30, 2019 and 2018, $25,000 and $70,000, respectively, was recorded as research and development expense under the agreement on the Condensed Consolidated Statements of Operations related to the minimum annual fee. A total of $133,333 and $58,333 was owed under the amended agreement at each of September 30, 2019 and December 31, 2018, respectively. Litigation Employment Matters On September 25, 2018, Matthew Geschke (the Plaintiff) filed a breach of contract case against the Company in the San Diego Superior Court of San Diego, California, under case number 37-2018-00031350-CU-OE-NC. The Plaintiff claims damages of $335,000 for breach of an employment contract when the Company terminated the Plaintiffs employment agreement on February 22, 2018. The case is in the early discovery phase of litigation and no trial date has been set yet. The Company believes the case is without merit, and intends to vigorously define this case. On September 27, 2019, Dennis Forchic (the Plaintiff) filed a breach of contract case against the Company in the Los Angeles Superior Court of Los Angeles, California, under case number 19STCV34592, alleging that the Company wrongfully terminated the Plaintiffs employment agreement on February 5, 2018. The Plaintiff claims damages of $646,000 for unpaid severance, unpaid reimbursed expenses, and unpaid health benefits. In addition, the Plaintiff claims damages for failing to compensate Plaintiff for 3,000,000 stock options which vested on termination. The case is in the early discovery phase of litigation and no trial date has been set yet. The Company believes the case is without merit, and intends to vigorously define this case. The Company has recorded $448,719 related to this matter as Due to former officer and shareholder on the Condensed Consolidated Balance Sheet, as well as the 3,000,000 stock options as described in Note 11. Lease Abandonment On February 15, 2019, MSCP, L.L.C (MSCP), filed suit in the Superior Court of Arizona, County of Maricopa, Case No. CV2019-001613 against the Company and YLK. The case arises from YLKs alleged breach of a certain lease agreement dated May 19, 2018 (the Lease), for the lease of certain real property located at 4301 W. Buckeye Road, Phoenix, Arizona 85043 (the Premises), between MSCP and YLK, which the Company guaranteed. MSCP filed the lawsuit after YLK provided a notice of termination for, amongst other reasons, MSCPs failure to disclose various material information regarding code, safety, structural and other issues in the Premises that rendered the Premises unsuitable for use, unless the Company undertook significant and extraneous costs that were not contemplated under the Lease to remedy said issues in and outside of the Premises. MSCPs complaint alleged counts for breach of lease and waste and breach of guaranty. MSCP is seeking compensatory damages, rents and other charges due under the lease, and attorneys fees and costs. The Company just recently filed its answer denying the allegations as well as having filed counterclaims for fraud in the inducement, negligent misrepresentation, breach of the implied covenant of good faith and fair dealing, rescission of contract, unjust enrichment and punitive damages; and the Company intends to vigorously defend this action. At the date of notice of termination, the Company had a remaining lease obligation of approximately $6,000,000. No liabilities have been provided for losses incurred on the Companys early termination of the lease, as such amounts are not practicably determinable. Breach of Contract On August 7, 2019, Rose Law Group PC (RLG) filed a breach of contract case against the Company in the Superior Court of the State of Arizona, County of Maricopa, Case No. CV2019-008484 against us. RLG alleges breach of a contract to pay RLG for legal representation, and requested a judgement for $143,836, which is included in accounts payable and accrued expenses on the accompanying balance sheet. On September 12, 2019, DPA, Inc., or DPA, filed suit in the Superior Court of Arizona, County of Maricopa, Case No. CV2019-008265 against us. The plaintiff alleges the Company breached an agreement to pay DPA for architectural design services related to a facility in Arizona and has requested a judgment for $251,923 plus interest, which is included in accounts payable and accrued expenses on the accompanying balance sheet. On September 18, 2019, the DPA was awarded judgement against the Company for $251,923 plus interest at 18% per annum from June 6, 2019 until paid.