Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  



On October 7, 2019, Lineal completed the acquisition of 80% of the outstanding membership interests of Evercon Energy LLC (“Evercon”). Evercon provides pipeline solutions and field services, project management and inspection services, energy infrastructure maintenance, facilities construction, fabrication and heavy civil construction services in and around College Station, Texas. The total purchase price paid for the acquisition was (a) $25,000 in cash at closing and $15,000 in cash per month for the six months following the closing; (b) the assumption of a $100,000 promissory note owed by Evercon to a bank lender (which note was acquired by the Company), and the release of the seller’s personal guaranty of such debt; and (c) the agreement to fund the operating expenses of Evercon, and pay certain expenses of the seller, in an aggregate amount of up to $50,000 per month, for six months following the closing, with the Company having the right to terminate such obligations six months after closing under certain circumstances. 


Subsequent to September 30, 2019, the Series C Holders converted 4 shares of Series C Preferred Stock into 1,957,488 shares of common stock of which no shares remained to be issued as of November 18, 2019.


On October 15, 2019, the Company entered into a Settlement and Mutual Release Agreement (the “Release”) with Regal Consulting, LLC (“Regal”), pursuant to which it agreed to settle and terminate the consulting agreement with Regal on November 15, 2018, as amended on February 13, 2019. Specifically, the Company agreed to issue Regal 1,514 shares of the Company’s restricted common stock and to pay Regal $17,500 in consideration for agreeing to terminate the agreement. The Company and Regal also provided each other mutual releases in connection with the Release.