In we entered into an agreement with Platinum-Montaur to provide us with a credit facility of up to million. In connection with the closing of the Asset Sale to Cardinal Health the Company repaid to PPCO an aggregate of approximately million in partial satisfaction of the Company’s liabilities, obligations and indebtedness under the Platinum Loan Agreement between the Company and Platinum-Montaur, which were transferred by Platinum-Montaur to PPCO. The Company was informed by PPVA that it was the owner of additional amounts owed on the Platinum-Montaur loan. PPVA claims a balance of approximately million was due upon closing of the Asset Sale. That amount is also subject to competing claims of ownership by Dr. Michael Goldberg, the Company’s President and Chief Executive Officer. The Company has yet paid any amounts to PPVA or Dr. Goldberg given the pending dispute.

 

On Platinum-Montaur commenced an action against the Company in the Supreme Court of the State of New York, County of New York, seeking damages of approximately million purportedly due as of plus interest accruing thereafter. The claims asserted are for breach of contract and unjust enrichment in connection with funds received by the Company under the Platinum Loan Agreement. Said action was removed to the United States District of New York on An initial pretrial conference was held on At the conference the Court stayed the deadline for the Company to answer or otherwise respond to the complaint. The Court also directed the parties to engage in informal jurisdictional discovery and a follow up status conference was held on during which the Court set a briefing schedule and determined that Navidea’s motion to dismiss was due on The Company filed its motion to dismiss in advance of the filing deadline. A settlement conference was held on and attended by a representative of Navidea and counsel, Dr. Goldberg and counsel, and counsel for PPVA and PPCO.  PPCO requested participation in the conference due to certain recent issues that have arisen concerning potential liability of PPCO to Navidea under the release and indemnification provisions of the payoff letter issued by PPCO in connection with the payment PPCO has received under the Platinum Loan Agreement.  The settlement conference resulted in agreement. Because the funds sought by Platinum-Montaur are subject to claims of competing ownership, the Company intends to continue to defend itself in the action.

 

During the -month periods ended and and of interest was compounded and added to the balance of the Platinum Note, respectively. As of the remaining outstanding principal balance of the Platinum Note was approximately million.

 

The Platinum Note is reflected on the consolidated balance sheets at its estimated fair value, which includes the estimated fair value of the embedded conversion option of at and Changes in the estimated fair value of the Platinum Note were decreases of and respectively, and were recorded as non-cash changes in fair value of the conversion option during the -month periods ended and The estimated fair value of the Platinum Note was million and million as of and respectively.

 

 

As disclosed in the Company’s Annual Report on Form -K and other filings, the Company has been engaged in ongoing litigation with CRG, in its capacity as a lender and as control agent for other affiliated lenders party to the CRG Loan Agreement, in the Texas Court relating to CRG’s claims of default under the terms the CRG Loan Agreement. Following a trial in the Texas Court ruled that the Company’s total obligation to CRG is in excess of million, limited to million under the parties’ Global Settlement Agreement reached in The Texas Court acknowledged only the million payment made in concluding that the Company owed CRG another million, however the Texas Court did expressly take the Company’s payment of million into account and awarded, as part of the million, amounts that had already been paid as part of the million. The Company believes that this  million should be credited against the million; CRG disagrees.

 

On the Company filed an emergency motion to set supersedeas bond and to modify judgment, describing the double recovery created by the million award without taking into account the million payment in requesting that the judgment be modified to set the supersedeas amount at million so that the Company could stay enforcement of the judgment pending appeal. The Texas Court refused to rule on this motion, and the court of appeals entered an order compelling the Texas Court to set a supersedeas amount. On the Texas Court ordered the Company to put up a supersedeas bond in the amount of  million. The Company filed for an emergency stay of the order in the appellate court in Harris County. On the appellate court denied the Company’s emergency stay motion. The Company continues to believe that the million paid to CRG in should be credited as payment toward the million total, and the Company intends to further contest the matter through the appellate court in Texas.

 

On CRG drew approximately million on the letter of credit. This was in addition to the million and the million that Navidea had previously paid to CRG.

 

On Navidea filed suit in the Ohio Court against the Lenders.  The suit asserts that the Lenders fraudulently induced Navidea to enter into a settlement agreement and breached the terms of the same through certain actions taken by the Lenders in connection with the Global Settlement Agreement reached in pursuant to which Navidea agreed to pay up to million to Lenders, as well as through actions and misrepresentations by CRG after the Global Settlement Agreement was executed.  The suit also asserts claims for conversion and unjust enrichment against the Lenders for their collection of more than million, the maximum permitted under the Global Settlement Agreement, and their double recovery of amounts paid as part of the million paid in and recovered again as part of the million. CRG’s double recovery and recovery of more than million are due to CRG drawing the entire million on the Cardinal Health letter of credit. To date, answer or other response or motion has been filed by the Lenders to Navidea’s complaint.

 

In a related proceeding before the Ohio Court, initially filed in and under which the Global Settlement Agreement was reached in the Ohio Court has issued preliminary findings that the settlement gave rise to a million cap on amounts owed to Lenders by Navidea and that Navidea might have been properly credited for certain funds in excess of million previously swept by Lenders from a bank account owned by Navidea.  The Ohio Court also made a preliminary ruling that it possessed jurisdiction to interpret the settlement agreement at issue. The Company intends to pursue recovery of the million, and other damages, in the Ohio Court.

 

On CRG filed a new suit against the Company in the Texas Court. This new suit seeks a declaratory judgment that CRG did breach the Global Settlement Agreement by drawing approximately million on the Cardinal Health letter of credit. On CRG moved the Texas Court to issue an anti-suit injunction barring the Company from litigating in the Ohio Court. The Texas Court denied that motion on CRG served the Company with the new Texas suit on and the Company’s answer is due on The Company intends to contest this issue in the Ohio Court, the Texas Court, and on appeal in Texas. See Notes and (b).

 

 

In we prepaid of insurance premiums through the issuance of a note payable to IPFS Corporation (“IPFS”) with an interest rate of The note was payable in monthly installments of with the final payment due in

 

In we prepaid of insurance premiums through the issuance of a note payable to IPFS with an interest rate of The note is payable in monthly installments of with the final payment due in The balance of the note is approximately and as of and respectively, and is included in notes payable, current in the consolidated balance sheets.

 

 

During the -month periods ended and we recorded interest expense of and million, respectively, related to our notes payable. Of these amounts, and was compounded and added to the balance of our notes payable during the -month periods ended and respectively.