Company: MMTIF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001062993-25-003888
Chunk: 31

Company: MICROMEM TECHNOLOGIES INC
Filing Date: 2025-02-28
Form: 20-F
Item: Item 5
Chunk 31
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 $1,051,739.83.

With respect to the Company's efforts to collect on that Judgement, a settlement ("Settlement") was reached during October 2021. Pursuant to the Settlement, the Company received an initial one-time payment and is entitled to additional monthly payments over a period of up to six years. The Company will record those payments as and when they are received. The total amount to be received by the Company if Mr. Van Fleet makes all the required payments under the terms of the Settlement will be less than the amount of the Judgement obtained by the Company, but if Mr. Van Fleet does not comply with the terms of the Settlement, it also provides the Company a means of enforcing a larger judgement against Mr. Van Fleet that is substantially in line with the Judgement. To date Mr. Van Fleet has complied with the payment terms of the Judgement.

(4)Legal matter: Litigation with ex-controller

On November 1, 2023, a former employee filed a statement of claim with the Ontario Superior Court in the amount of $410,000 CDN alleging multiple claims relating to employment termination without reasonable notice against the Company. The Company filed a statement of defence and counterclaim on November 29, 2023 denying all liability to the former employee. Discoveries with legal counsel were completed in August 2024. Mediation proceedings were completed in October 2024. At that time the claim was reduced to $48,000. However, the mediation process did not result in a resolution of this matter. We anticipate that a resolution of this matter may develop in 2025; otherwise, the matter may proceed to a trial hearing at some point in future.

No provision has been recorded in these consolidated financial statements as the Company continues to consider the claims of the former employee to be without merit.

Translation of Foreign Currencies:

Our functional and reporting currency is the United States dollar. Accounts recorded in foreign currency have been converted to United States dollars as follows: Monetary assets and liabilities are translated at exchange rates at the consolidated balance sheet dates; non-monetary assets are translated using the historical rate of exchange in effect at the translation dates; revenues and expenses are translated using the average rate of exchange for the year, which rate approximates the rate of exchange prevailing at the transaction dates; and gains and losses resulting from the translation are included in the determination of net loss for the period.

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES