Company: VYND
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001079973-25-000779
Chunk: 11

Company: Vynleads, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 11
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addition to the foregoing fees, we have agreed to reimburse CRG Finance AG for its pre-approved out of pocket expenses it incurs under
the terms of the agreement. The agreement contains customary confidentiality and indemnification provisions.

    12 
    VYNLEADS, INC.NOTES TO CONDENSED FINANCIAL STATEMENTSMarch 31, 2025(UNAUDITED) 

Contingencies

In April 2016, we entered into a Promotion and Royalty
Agreement (the “Agreement”) with a consultant to obtain certain promotional services from him (the “Promoter”),
including the use of his name and appearance. In consideration for the services rendered by the Promoter, we agreed to use commercially
reasonable efforts to promote and sell a book authored by him (the “Book”) and to pay him a percentage of the sales of the
Book after deductions for all direct costs of fulfilling such sales (the “Royalty”). During the course of 2017, the Promoter
initiated a series of informal claims and filed unauthorized uniform commercial code financing statements (“UCC Liens”) in
several states as liens against us and certain of our officers, directors, and founders, alleging non-payment for the Royalty amounts
due under the Agreement. We dispute the Promoter’s claims and have determined that any and all amounts due to the Promoter under
the Agreement have been paid in full. We have succeeded in removing certain of the UCC Liens and are pursuing action to remove the remaining
unauthorized UCC Liens. We do not believe that the claims of the Promoter are valid in any respect.

7.       Concentration
of Credit Risk and Major Customers and Suppliers

We purchase our inventory of herbal/natural supplements
from one supplier. While we believe that we will be able to find a secondary supplier, there could be a manufacturing delay in the transition
to a new supplier and such a supply interruption would materially impact our business for some period of time.

8.       Credit
Card Settlement

On May 21, 2024, the Company entered into a settlement
agreement with American Express to settle the Company’s outstanding balance of $6,287. American Express agreed to forgive the remaining
balance if a one-time payment of $1,571 was paid. The Company paid the settlement amount and the forgiveness of this debt resulted in
a one-time gain recognized in the Company’s financial statements as of December