Despite issuing a Report on Form 8-K on October 28, 2016, asserting that the Board of Directors of CoroWare, Inc. (“Company’) intended to wind down the operations of the Company and its subsidiaries, the Company has instead since the aforesaid date continued its operations and has pursued and has been presented with various joint venture opportunities with private companies engaged in shipping, logistics and related services and products.
On January 7, 2017, the Board of Directors authorized its management team to pursue joint venture opportunities through CoroWare, Inc.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Item 2.05 Costs Associated with Exit or of Disposal Activities.
See the entry below for Item 8.01 Other Events.
Item 8.01 Other Events.
The Board of Directors of CoroWare, Inc., at a meeting held on October 28, 2016, has determined that CoroWare, Inc. and all of its subsidiaries (“CoroWare) shall cease operations on or about November 1, 2016 as a consequence of CoroWare’s insufficient cash reserves, accumulated tax and debt liabilities, and certain recent events resulting from the Notice of Default from YA Global Investments, LP (“YA Global”) received on October 22, 2016. CoroWare filed a Form 8-K/A on October 27, 2016 describing the Notice of Default dated October 22, 2016 on a Debenture in favor of YA Global and pursuant to which YA Global has accelerated the amount to be immediately due and owing under the Debenture to be a total of $2,885,607.98 ($2,769,990.00 principal and $115,617.98 interest (as of Oct. 18, 2016)).
Moreover, YA Global Investments has asserted its security interest in all CoroWare assets, including accounts receivable payments from CoroWare’s customers; and has elected to receive all outstanding accounts payable payments due and owing to CoroWare directly from those customers. This action impacted CoroWare’s ability to satisfy all short term and long term financial obligations.
As a result, the Board of Directors intends to wind down the operations of CoroWare, Inc. and all of its subsidiaries in an orderly fashion. At the time of this filing, CoroWare is unable in good faith to determine an estimate of the total costs (or range of costs) to be incurred that will be associated with this course of action.