19. LITIGATION On May 17, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 482,771.87. On June 19, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 482,771.87 in total. The same supplierfiled another lawsuit against Boqi Zhengji for unpaid outstanding payable of RMB 322,771 on March 17, 2020. The parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB322,771 in total. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On June 26, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payable of RMB 184,490.77. On Sep.12, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 184,490.77 in total. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On July 8, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 64,535. On August 1, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 64,535.00 in total. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On July 10, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 122,360.20. On August 9, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 101,253.40 in total. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On July 18, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 288,440.00. On September 4, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 288,440.00 in total. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On August 25, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 137,449.90. On October 23, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 137,449.90 in total. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On August 25, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 230,281.55. On October 2, 2019, Shenyang Heping District Peoples Court ruled that Boqi Zhengji had to pay the outstanding balance RMB 230,281.55 to the supplier within 10 days. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On September 10, 2019, one of Boqi Zhengjis suppliers filed a lawsuit against Boqi Zhengji for unpaid outstanding payables of RMB 395,378.90. On October 18, 2019, the parties entered into a court-supervised settlement where Boqi Zhengji agreed to pay the supplier RMB 395,378.90 plus interest. Boqi Zhengji failed to pay the settlement amount. The enforcement of the settlement has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced. On April 1, 2020, the Guizhou Province Xiuwen County Peoples Court ordered the attachment of two of Shudes bank accounts pursuant to a pre-litigation attachment application filed by one of Shudes suppliers in connection with unpaid outstanding payables of approximately RMB 365,200 (approximately $51,437). The total amount of cash in the two accounts subject to the attachment is RMB 570,902 (approximately $80,409). The attachment order has a term of one (1) year, renewable upon fifteen days notice. The parties have reached a settlement agreement whereby Shude agreed to pay off the outstanding payables in four installment payments. The first three installments were paid and the remaining payment of RMB100,000 is payable by November 30, 2020. Upon payment of the final installment, the attachment of the two bank accounts will be released. As of the date of this report, the last payment of RMB100,000 remains outstanding which is payable by November 30, 2020. The attachment of the two bank accounts will be removed in the fourth quarter of 2020. On September 17, 2020, fifteen employees commenced employment arbitration proceedings against Boqi Zhengji for unpaid salary in the aggregate amount of RMB19,616, which resulted in an arbitration decision in favor of the employees. Boqi Zhengji failed to pay the arbitration order amount. The enforcement of the arbitration order has been temporarily suspended by the court due to the lack of assets against which such judgment can be enforced.