Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2016 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Contingencies |
Note 16 Contingencies
On April 23, 2015, a complaint was filed by the Company in federal district court (District of New Jersey) against ChubeWorkx Guernsey Limited (ChubeWorkx) for breach of contract (the Breach of Contract Claim) for failure of timely interest payments by ChubeWorkx under a promissory note (the Chube Note) entered into by the Company and ChubeWorkx in December 2014. As part of this action, the Company also filed a preliminary injunction which sought to bar ChubeWorkx from disposing of the Companys common stock owned by ChubeWorkx for which the Company retained a right of sale in the event of a default by ChubeWorkx under the Chube Note. A consent decree has been finalized and entered by the court to resolve the issues of the preliminary injunction which requires ChubeWorkx to escrow a certain of number of shares of the Companys common stock currently held by ChubeWorkx until the Breach of Contract Claim has been fully adjudicated. The Breach of Contract Claim is currently in the discovery phase and while the parties have communicated in good faith to resolve this dispute all discussions to date have not yielded any results. This case was closed by the court pursuant to an order entered on December 22, 2015 as requested by Akers in light of near final settlement discussions with Chubeworks regarding the settlement and release of all claims between the parties.
On August 21, 2015, Chubeworkx filed a lawsuit against the Company in The High Court of Justice, Queens Bench Division Commercial Court, Royal Courts of Justice, United Kingdom, alleging a breach of contract under the exclusive license agreement entered into by Chubeworkx with Company in June 2012 and damages resulting from said alleged breach. The lawsuit is in the preliminary stage and was suspended by mutual agreement of the parties pursuant to ongoing global settlement discussions which were focused on settling all outstanding claims between the parties.
The Company and ChubeWorkx have agreed in principal to all of the material terms of a global settlement for all existing claims and pending law suits between them. The parties are working with their counsel to finalize and execute the settlement agreements. No accrual for losses was necessary as of June 30, 2016 and no loss is expected as a result of the settlement.
Legal fees were expensed in the period in which they were incurred. |