Note 11 - Legal Proceedings	3 Months Ended
Mar. 31, 2021
Notes to Financial Statements
Legal Matters and Contingencies [Text Block]	Note 11. Legal Proceedings Vaden Landers On January 19, 2021, the Company initiated a lawsuit in Bexar County, Texas against its former Chief Revenue Officer, Vaden Landers. In the lawsuit, which is styled: Usio, Inc. v. Vaden Landers , Cause No. 2021CI01069, 407th Judicial District Court, Bexar County, Texas, the Company alleges that Mr. Landers violated the provisions of his employment agreement dated September 1, 2017 - specifically that Mr. Landers violated his non-compete obligations. The state court lawsuit only seeks injunctive relief against Mr. Landers. The Company also instituted an action before the American Arbitration Association on February 2, 2021. Mr. Landers initially refused to participate in the arbitration proceeding. After hearings in Bexar County state court proceeding, all of the parties' claims, excluding Mr. Lander's claims for defamation and tortious interference with contract, were ordered to be heard by the American Arbitration Association. The Company denies Mr. Landers' allegations and does not believe that his counterclaims have any merit. On or about April 27, 2021, Mr. Landers filed his Answering Statement and Counterclaim against Usio in the arbitration proceeding. Therein, Mr. Landers alleged a variety of defenses to the Company's claim that Mr. Landers violated the non-compete provisions of his Employment Agreement. Mr. Landers also asserts a counterclaim for a declaratory judgment finding the non-compete provisions are unenforceable. Mr. Landers further alleges that the Company breached the terms of his Employment Agreement because Mr. Landers' resignation was for Good Reason thus entitling Mr. Landers to deferred compensation. The Company denies Mr. Landers' allegations. Through its investigation, the Company has learned that Mr. Landers committed other violations of his employment agreement and intends to pursue those claims in arbitration. Both the state court litigation and the arbitration are in their initial stages. The Company recently served Mr. Landers with a request for production of documents in the Bexar County state court proceeding, but Mr. Landers has not responded at this time. Aside from the proceedings above, the Company may be involved in legal matters arising in the ordinary course of business from time to time. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is or could become involved in litigation will not have a material adverse effect on its business, financial condition or results of operations.

Note

11.

Legal Proceedings

Vaden Landers

January 19, 2021,

the Company initiated a lawsuit in Bexar County, Texas against its former Chief Revenue Officer, Vaden Landers. In the lawsuit, which is styled:

Usio, Inc. v. Vaden Landers

, Cause

No.

2021CI01069,

407th

Judicial District Court, Bexar County, Texas, the Company alleges that Mr. Landers violated the provisions of his employment agreement dated

September 1, 2017 -

specifically that Mr. Landers violated his non-compete obligations. The state court lawsuit only seeks injunctive relief against Mr. Landers. The Company also instituted an action before the American Arbitration Association on

February 2, 2021.

Mr. Landers initially refused to participate in the arbitration proceeding. After hearings in Bexar County state court proceeding, all of the parties' claims, excluding Mr. Lander's claims for defamation and tortious interference with contract, were ordered to be heard by the American Arbitration Association. The Company denies Mr. Landers' allegations and does

not

believe that his counterclaims have any merit.

On or about

April 27, 2021,

Mr. Landers filed his Answering Statement and Counterclaim against Usio in the arbitration proceeding. Therein, Mr. Landers alleged a variety of defenses to the Company's claim that Mr. Landers violated the non-compete provisions of his Employment Agreement. Mr. Landers also asserts a counterclaim for a declaratory judgment finding the non-compete provisions are unenforceable. Mr. Landers further alleges that the Company breached the terms of his Employment Agreement because Mr. Landers' resignation was for Good Reason thus entitling Mr. Landers to deferred compensation. The Company denies Mr. Landers' allegations.

Through its investigation, the Company has learned that Mr. Landers committed other violations of his employment agreement and intends to pursue those claims in arbitration. Both the state court litigation and the arbitration are in their initial stages. The Company recently served Mr. Landers with a request for production of documents in the Bexar County state court proceeding, but Mr. Landers has

not

responded at this time.

Aside from the proceedings above, the Company

may

be involved in legal matters arising in the ordinary course of business from time to time. While the Company believes that such matters are currently

not

material, there can be

assurance that matters arising in the ordinary course of business for which the Company is or could become involved in litigation will

not

have a material adverse effect on its business, financial condition or results of operations.