Note 12  Commitments and Contingencies From time to time, the Company is party to certain legal proceedings that arise in the ordinary course and are incidental to our business. Future events or circumstances, currently unknown to management, will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity or results of operations in any future reporting periods. The following is a list of current litigation: Salem, et al. v. Pineapple Express, Inc., et al. JAMS Arbitration Reference Number: 1210035565 was filed July 13, 2018. This matter arises from a certain Agreement and Plan of Merger and Reorganization dated February 12, 2016. Claimants sought forfeiture of certain IP rights, more specifically, Registered Mark "THC" standard character mark (U.S. Trademark Reg. No. 1954405 registered on February 6, 1996) and Domain Name www.thc.com, together with proceeds Respondents have received from any royalty or licensing payments relating to the IP rights from the date of Forfeiture, as well as costs for reasonable attorneys ' fees. Arbitration was conducted on July 17-19, 2019. The arbitrator issued an award on December 23, 2019 upholding the Claimants exercise of the put option. The Claimants filed a petition to confirm the arbitration award before the Los Angeles Superior Court, in the matter entitled, Pineapple Express v. Salem, bearing LASC Case No. SC129690, set for hearing on April 28, 2020. Respondents are opposing Claimants motion. Respondents intend to reserve consideration for any appeal from the final order and any judgment to issue thereon. Based on the pending award, the Company has accrued the $1,000,000 put option exercise amount and recorded a $1,000,000 stock subscription receivable. Pineapple Express v. Ramsey Salem JAMS Arbitration Reference Number: 1220063897 was filed December 4, 2019. This matter arises from claims of breach of contract, more specifically the confidentiality provisions of certain Agreement and Plan of Merger and Reorganization dated February 12, 2016, entered into between the parties and arising from the disclosure of the interim arbitration award in the matter entitled and above-referenced as: Salem, et al. v. Pineapple Express, Inc., et al. JAMS Arbitration Reference Number: 1210035565, filed July 13, 2018, by Respondent. The matter is presently pending before JAMS. Hawkeye v. Pineapple Express, Inc., et al. Los Angeles Superior Court Case Number: BC708868 was filed June 6, 2018. Plaintiff claimed damages against Defendant in the excess of $900,000 arising from a series of successive amended and revised revenue sharing agreements pertaining to rental income from certain leasehold for premises more commonly known as 65421 San Jacinto Lane, Desert Hot Springs, CA 92240 which was not realized through no fault of Defendants. Nor are Defendants contracting parties to the lease agreement or original revenue sharing agreement for which consideration was paid. Defendants deny all allegations of claims asserted in the Complaint. Notwithstanding, the parties settled the matter pursuant to a confidential settlement agreement in or about January 3, 2020. However, the matter was reduced to an entry of judgment by the court in or about February 21, 2020 for the amount of $615,000, which monies remain due and outstanding and are accrued for in the Companys advances on agreements liability as of December 31, 2018. The parties are cooperating to resolve this matter pursuant to the terms of the agreed upon settlement. Sharper, Inc. v. Pineapple Express, Inc., et al., Los Angeles Superior Court Case Number: 18SMCV00149 was filed November 1, 2018. Complaint for money with an amount in controversy of $32,500. The matter arises from certain claim for goods and services rendered beyond the contract claim which is wholly disputed. The court case matter was stayed on February 11, 2019 pending the outcome of Arbitration. Finnegan &amp; Diba was substituted out of the matter on June 14, 2019. The matter was arbitrated through other counsel and the arbitrator issued a final award in favor of Petitioner in or about September 4, 2019, for the principal amount of $15,375, which has been accrued for as of December 31, 2018 and 2017. An order confirming arbitration award is pending before the Los Angeles Superior Court in the above-entitled matter. Cunningham v. Pineapple Express, Inc., Los Angeles Superior Court Case Number: BS171779: Judgment, ordered by the Department of Industrial Relations, Labor Commissioner's Office was entered by the Court on December 11, 2017. The amount of judgment entered was $47,674. Enforcement on the Judgment is continuing. Finnegan &amp; Diba was retained to defend enforcement proceedings and substituted out of the matter on or about June 14, 2019. This was accrued for in the Companys accounts payable and accrued liabilities as of December 31, 2018 and 2017. Pineapple Express, Inc. v. Cunningham Los Angeles Superior Court Case Number: SC 127731 was filed June 21, 2017. This action arose from certain complaint and cross-complaint which were both dismissed. Defendant Cunningham pursued a cost judgment against Plaintiff and obtained a judgment in the amount of $2,367, which remains outstanding to date and since January 22, 2018. Enforcement proceedings have ensued and said judgment remains outstanding to date. Finnegan &amp; Diba, ALC was not the counsel of record when judgment was entered and only addressed enforcement proceedings until such time is was substituted out as counsel of record in or about June 14, 2019. The Hit Channel, Inc. v. Pineapple Express, Inc. Los Angeles Superior Court Case Number: 19STCV09006 was filed in or about March 14, 2019. This action arose from certain complaint and cross-complaint arising from certain licensing agreement entered into between the parties for the commercial exploitation of the URL and Domain Name THC.com. The matter has since resolved pursuant to the confidential settlement agreement entered into by and between the parties, the licensing agreement has been deemed terminated, and the matter has been dismissed with prejudice by order of the court on February 14, 2020. The Hit Channel was awarded $40,000 and 545,000 shares of Pineapple Express restricted stock as settlement. The Company also received www.THCExpress.com from The Hit Channel as part of the Settlement Agreement. This amount was determined as the amount that The Hit Channel, Inc. was able to pay back its investors and incurred costs. The Company believed this was less than what future litigation would cost. The Company does not have any outstanding liability due to The Hit Channel as of December 31, 2018. StoryCorp Consulting, dba Wells Compliance Group v. Pineapple Express, Inc. JAMS Arbitration Reference Number: 1210037058 was filed December 18, 2019. This matter arises from dispute over certain services agreement entered into between the parties in or about January 31, 2019. The parties are currently entering into a settlement agreement so as not to have to go through arbitration. Russ Schamun v. Pineapple Express Consulting, Inc. This is a small claims matter for $7,500 filed by an independent contractor. There was a hearing date on August 23, 2019 and judgment was awarded to Russ Schamun. This creditor will be satisfied once Pineapple Express is in a position to satisfy the judgment. The $7,500 has been accrued for as of December 31, 2018. Orr Builders, Et. AL v. Pineapple Express, Inc. This action is the culmination of a multiplicity of actions and cross-actions arising from the claims to title relating to certain real property more commonly known as 65241 San Jacinto Lane, Desert Hot Springs, California 92240-5014 and construction disputes for building projects thereon. Pineapple Express Inc. and its subsidiaries were dismissed from this action and will only be subject to a deficiency judgment, if any, when the property is sold. Searock Stafford CM, Inc. v. Pineapple Express, Inc. Litigation arose for unpaid management fees for construction on a building and land project not secured by Pineapple Express more commonly known as 65241 San Jacinto Lane, Desert Hot Springs, CA California 92240-5014. All claims were satisfied in full and the parties no longer have a dispute. The final settlement was paid in July 2017 for $46,443 which was accrued for in the Companys accounts payable and accrued liabilities balance as of December 31, 2017. SRFF v. Pineapple Express, Inc. This matter resulted in a stipulated judgment whereas former SEC counsel claimed approximately $60,000 in legal work that was not paid for. Pineapple Express claimed that the work being charged for (a registration statement to be filed with the SEC) was not completed. Regardless of this fact, PNPL signed a payment plan and confession of judgment if the plan was not honored. The result was a judgment entered in favor of SRFF because of the confession. This creditor will be satisfied once Pineapple Express is in a position to satisfy the judgment. The settlement amount has been accrued for in the Companys accounts payable balance at December 31, 2017 and 2018.