Sollensys Corp. (OTC: SOLS) CEO Frank Woo said the company continues to work to restart the operations of its Korean production subsidiary, Sollensys Korea.
“Our key challenges at present are to raise funds to provide working capital, resolve a legal challenge facing our subsidiary and assess recapitalization and/or restructuring alternatives,” Woo said.
As previously reported in the company´s 2011 audited financial statements, a lawsuit filed against the subsidiary by KIAT is based upon the subsidiary being selected by the Korean government as a technology development company for “2011 Touch Convergence Cluster Project.” The subsidiary received support from the Korean government in 2011, but was unable to fulfill all its commitments under the KIAT agreement due to a suspension of production caused by insufficient capitalization. KIAT´s lawsuit is based on its claim against the subsidiary for recovery of the subsidies paid to the subsidiary.
During 2012 and up to December 30, 2013, KIAT and the subsidiary have held meetings to reach a resolution, but no agreement has yet been made.
Sollensys, through its subsidiaries, develops touch screen panels for use in consumer products. The company holds various patents and proprietary technology on the touch screen panel sensors and the manufacturing process. The company was formerly known as Health Directory, Inc. and changed its name to Sollensys Corp. in August 2012. Sollensys Corp. was founded in 2010 and is based in San Jose, California. The company´s website is at http://www.sollensys.com.