GEO JS TECH / CWRN 12/31/2013
http://www.sec.gov/Archives/edgar/data/156938.../geojs.htm
Page 18 - LEGAL PROCEEDINGS
From time-to-time, we may be involved in various claims, lawsuits, and disputes with third parties incidental to the normal operations of the business. As of the date of this prospectus, we are not aware of any material claims, lawsuits, and disputes with third parties or regulatory proceedings that would have any material effect on our company, except as set forth below
GEO Tech is a party to an action filed on July 6, 2012 in the Harris County, Texas Judicial Court titled GEO JS Tech Group Corp, Inc. vs. Robert L. Cotton, et. al. GEO Tech’s action is based on breach of contract, breach of fiduciary duty and tortuous interference of an existing contract with defendant, Cotton & Western Mining, Inc. The action involves payments claimed to be due under a contract for equipment related to the shipment of iron mineral and the return of the equipment. In a related action, the defendants filed an action in September 2012 in the Superior Court of San Diego County, California titled Cotton & Western Mining, Inc. vs. GEO J.S. Tech Group, Inc., et al., in which they allege similar claims against GEO Tech.
On July 19, 2013 , the Texas Court ruled that it has subject matter jurisdiction over the matter and has the authority to rule in the case between the parties since the Texas case was filed prior to the California case. Furthermore, GEO Tech has sought sanctions against all the Defendants for discovery abuse, which sanctions have been granted by the Court. The sanctions include barring the Defendants from producing any supporting evidence at trial or allowing them to produce witnesses at trial. An initial trial date was set for November 4, 2013 , but has been continued. Our complaint asks for injunctive relief, for the return of the company’s initial capital investment, the company’s share of profits from two previous shipments of iron mineral , and for the return of the company’s equipment that Defendants have in their possession. The company believes that it has meritorious claims against Robert L. Cotton and Cotton & Western Mining, Inc., although no outcome can be determined at this time.
Page F-16
During the fiscal year March 31, 2012, the Company paid $4,553,553 production cost, $318,429 management fees and $218,959 royalty fees to Pan American Mineral Ventures, S.A. DE C.V., Baja California, Mexico, which was a 50% equal share joint venture partner for Mexico mineral exploration projects since September 26, 2010.Sharon Vasquez owned 60% and Robert Cotton owned 40% of Pan American Mineral Ventures, S.A. DE C.V.
The nature of the $4,553,553 production cost payment were made for $1,775,076 trucking and gasoline, $1,680,303 heavy equipment lease, $579,456 port fee, $148,336 salary for Mexico personnel, $119,602 general administration, $126,780 maintenance, $100,000 royalty to land owner, $24,000 rent.
Mad.
