SurePure, Inc. (OTCMKTS:SURP) Files An 8-K Other EventsItem 8.01
During the fourth quarter of 2016, we reported that we had received a notice from the Debt Enforcement Authority Zug (the “Authority”) on behalf of the Canton of Zug, Switzerland, relating to a possible seizure of the assets of our SPOAG subsidiary. The basis for the notice of seizure was SPOAG’s failure to pay payroll taxes and social security obligations owing to the Canton of Zug included in the obligations referred to above. Following discussions with the Authority, the Authority agreed to a revised payment schedule for the payment of the overdue payroll taxes, with payments by SPOAG to be made before December 31, 2016. We did not make payments as and, as a result, the Authority rejected the plan.
As disclosed in Note 10 to our consolidated financial statements for the quarter ended March 31, 2017 as included in our Form 10-Q for that quarter filed on May 23, 2017 (the “March 31 Form 10-Q”), the unpaid balance of this liability was approximately $256,000 and was included in accounts payable and other current liabilities in the accompanying consolidated balance sheets as of March 31, 2017.
On May 22, 2017, we received an additional notice from the Authority on behalf of the Canton of Zug. The notice requires that we present ourselves on June 1, 2017 to permit the seizure of the assets of SPOAG. The principal assets of SPOAG are the international patents which covers our SurePure Photopurification Technology. If we were to be divested of ownership of these patents, then the new holder of the patents could bring legal proceedings to force us to cease manufacturing or selling products that use our technology until the patents expire in October 2020. As a result, we would likely be forced to cease operations.
We have also been advised by the Swiss social security fund that, unless we bring the past due contributions up to date by May 31, 2017, SPOAG’s registration with this fund will be terminated. SPOAG will then be in contravention of local laws and regulations in this regard and may become subject to additional penalties.
We are attempting to secure funds for the payments to have been made under the payment plan and as required by the social security fund on or before March 31, 2017, to hold discussions with the Authority with a view to deferring all or part of the remaining payment obligation and to request that the Authority withdraw its seizure notice. We cannot predict whether we will be successful in arranging the payments or these discussions or whether, if held, the discussions will result in deferral of any of the obligations or the withdrawal of the seizure notice.
Additionally as noted in our March 31 Form 10-Q, we have incurred recurring operating losses and have a working capital deficiency. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
For a complete understanding of our financial results and financial position, investors are referred to our March 31 Form 10-Q. Our SEC reports can be found on our website.
About SurePure, Inc. (OTCMKTS:SURP)
SurePure, Inc. is a development-stage company. The Company designs, manufactures, markets, sells or licenses and maintains its Turbulator systems for liquid photopurification technology in the global marketplace (SurePure Photopurification Technology or Technology). Its Technology uses ultraviolet (UV) light in the C band (UVC) to process, preserve and sustain the natural quality of food ingredients, such as liquid egg and animal feed constituents, and beverage products, such as juices and concentrates, sugar syrup bases, alcoholic beverages and farm milk. In addition to the foregoing applications, its SurePure Photopurification Technology is tested for its capacity to reduce the microbial loads in turbid liquids intended for human consumption, such as dairy products, flavored water and coconut water, liquids with industrial applications, such as diesel and bio-ethanol, and liquids with pharmaceutical applications, such as eye preparations, saline drips and personal care products. SurePure, Inc. (OTCMKTS:SURP) Recent Trading Information
SurePure, Inc. (OTCMKTS:SURP) closed its last trading session down -0.0115 at 0.0645 with shares trading hands.