Litigation On March 29, 2019, DLT Resolution Corp. and DLT Resolution Inc. was served with a Statement of Claimants 300-306 Town Centre Boulevard Limited Partnership/Court File No. CV-19-00617228-000 (Toronto) for unpaid rent and lost revenue related to the premises. In this action, the Plaintiff has claimed damages against the Defendants DLT Resolution Corp. and DLT Resolution Inc. in the amount of $567,385 for an alleged breach of lease. The Plaintiff has claimed damages against the Defendant DLT Resolution Inc. in the amount of $567,385 for allegedly wrongfully inducing a breach of lease and tortious interference with contractual relations. The Plaintiff has further claimed damages against the Defendant DLT Resolution Inc. in the amount of $567,385 for allegedly oppressive conduct under the Ontario Business Corporations Act. The Plaintiff has further claimed compensation for its legal costs and for pre-judgment interest. The Company filed a statement of Defense citing, amongst other things, that it has never entered into any agreement with the landlord, nor guaranteed any such liability. The Defendants DLT Resolution Corp. and DLT Resolution Inc. intend to contest the claim vigorously. There is no intention to make a settlement offer nor have instructions been received to make a settlement offer at this juncture. Since the statement of defense was delivered on 16 May 2019, the Company had no further communication from counsel for the Plaintiff nor have any steps been taken to move the litigation forward. Although there can be no assurance of the Companys ability to dismiss the claim, management feels the claim is without merit and is confident it will receive a ruling in its favor. Leases Commitment Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. USI has an operating lease for its Edmonton, Canada facility that started in March 2019 and terminates in February 2022. There was no sublease rental income for the three-month periods ended September 30, 2020 and 2019. USI paid approximately $2,137 and $6,538 against the Lease obligation in the three and nine months ended September 30, 2020. USIs lease agreement does not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. ROU lease asset and lease liability for the operating lease is recorded in the balance sheet as follows: As of September 30, 2020 Operating lease - right of use asset $ 9,082 Lease obligations  operating leases, current portion $ 8,149 Lease obligations  operating leases, net of current portion 3,214 Total lease liability $ 11,362 Weighted average remaining lease term (in years) 1.4 Weighted average discount rate 7.75 % Future lease payments included in the measurement of lease liabilities on the unaudited balance sheet as of September 30, 2020, for the following five fiscal years and thereafter were as follows: For the year ending December 31, 2020 $ 1,801 2021 7,206 2022 1,201 Total future minimum lease payments 10,208 Present value adjustment 1,679 Total $ 8,528 Other Commitments As permitted under Canadian Corporations Business Act, USI agrees to indemnify officers and directors for certain events or occurrences while the officer or director is, or was, serving at USIs request in this capacity. The term of the indemnification period is indefinite. There is no limit on the amount of future payments USI could be required to make under these indemnification agreements; however, USI maintains insurance policy coverage that may enable USI to recover a portion of any amounts paid. As a result of USIs insurance policy coverage, management believes the estimated fair value of these indemnifications is minimal. Accordingly, USI did not record any indemnification liabilities as of September 30, 2020 and December 31, 2019.