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Subsequent Events
9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
Subsequent Events

Note 12 – Subsequent Events

 

In accordance with ASC 855, Subsequent Events, the Company has evaluated all subsequent events through the date the financial statements were available to be issued. No material subsequent events occurred after September 30, 2023, other than as set out below:

 

On October 20, 2023, Green Ice, LLC and Sweet Cut Grow, LLC (“Claimants”) filed an Arbitration Petition against the Company in Denver, Colorado. The Claimants allege a breach by the Company of two contracts – an Engineering Agreement with Green Ice, dated January 14, 2021 (“Engineering Agreement”), and an Equipment Agreement with Sweet Cut Grow, dated March 29, 2021 (“Equipment Agreement”).

 

The Arbitration Petition alleges causes of action for breach of the Engineering Agreement, Breach of the Equipment Agreement, Breach of the Warranties under the Equipment Agreement, and Unjust Enrichment in the amount of moneys paid by Claimant to CEA to date under the contracts, of $1,049,280.

 

Given the Arbitration Petition’s current uncertainty around estimability and success of claims, we have not recorded an accrual for any potential loss related to this matter.

 

Regardless, we intend to generally defend the claims on the basis that we promptly addressed all problems, and that any issues with defective HVAC equipment are the responsibility of our third-party equipment manufacturer.