Max Sound Corp (OTCMKTS:MAXD)’s progress in its litigation against VSL as hardly moved an inch. The company had recently provided an update stating that VSL had asked for a 30-day extension for the case on account of a change of its legal counsel.
Following which, the hearing of the court has now been rescheduled to April 7, 2016. Despite the extension of the case, the company’s CEO John Blaisure is confident that the company will receive positive outcome in the end. The litigation dates back to April 13, 2015, when VSL Communications Ltd Director, Robert Newell Artese, filed an application with the United Kingdom’s Companies House to dissolve it from the Registers.
Apart from this, Max Sound is involved in another litigation against the internet giant, Alphabet Inc. (NASDQ:GOOG). The company’s appeal to reconsider the decision has so far been rejected by the Northern District Court. The case relates to the failure of the company to produce a written instrument that proves that it has obtained rights to become the virtual assignee of 339 patent. However, Max Sound defends itself by stating that it is not the virtual assignee but exclusive licensee of the patent.
While the company is involved in a series of legal tussles, it has nothing more to justify a dismal account of its financial affairs. The company’s cash balance stands at $20,000. Its current assets are meager at $146,000 while its current liabilities are as steep as $7.5 million. The company failed to report any revenues so far, whereas its net loss sits at $2.75 million. The problems around Max Sound multiplies further given the fact that as much as $2 million of the company’s current liabilities are in the form of convertible notes at a discounted price of 40%. Such a state of financial position seeks an early attention from the company, which is quite occupied with its legal affairs.
The stock of the company plunged by nearly 39% to $0.0044 during the previous day’s trade.