Commitments and Contingencies Disclosure [Text Block] | 6. Legal Matters The Company is a party to various legal actions and administrative proceedings arising in the normal course of business. In the opinion of Company's management, resolution of these matters is not RELATED PARTIES AND RELATED PARTY LITIGATION: SBS, SPAR Administrative Services, Inc. (" SAS Infotech not November 2018 Majority Stockholders 53.2% May 3, 2018 ( January 1, 2020 ( January 22, 2020). Bartels' Retirement and Director Compensation, 16 Subsequent Events Delaware Litigation Settlement On September 4, 2018, Chancery Court September 21, 2018 ( Proposed Amendments On September 18, 2018, one 8 §225 No. 2018 00687 225 225 On January 18, 2019, four 225 Delaware Settlement 225 Delaware Actions In the Delaware Settlement, the parties agreed to amend and restate SGRP's By-Laws (the " 2019 2019 January 18, 2019. 2019 Additionally, as part of the Delaware Settlement, the parties to the Delaware Actions executed a Limited Mutual Release Agreement limited to the Actions and subject to specific exclusions (the " Delaware Releases January 18, 2019. The Delaware Releases are limited to matters related to those actions described therein and subject to specific exclusions, and the parties expressly preserved all unrelated actions and claims. Accordingly, there remain a number of unresolved claims and actions (each a " Non-Settled Matter SBS Bankruptcy, Settlement, and March 2020 Infotech Litigation and Settlement Advancement Claims Advancement Claims From October 2018 January 2019, 225 On November 2, 2018, SGRP's Audit Committee determined on November 5, 2018, not not no On November 28, 2018, Bartels Advancement Complaint Allocated By-Laws Expenses In December 2018 Bartels Advancement Settlement April 2019. not On December 3, 2018, Brown Advancement Demand Counsel advised that Brown had been sued as a stockholder and conspirator in the By-Laws Action against him, and not not 6.02 not, not On January 27, 2019, February 2, 2019. March 21, 2020, No not April 23, 2020, No April 2020, 2019 SBS Bankruptcy, Settlement and March 2020 On November 23, 2018, 11 SBS Chapter 11 March 18, 2019, 11 $378,838 $12,963 $1,839,459 Clothier" On August 6, 2019, SMF Bankruptcy Court July 26, 2019 ( Settlement Agreement 11 10 SBS Bankruptcy, Settlement, and March 2020 On August 6, 2019, 11 Plan of Reorganization not On March 6, 2020, $1,707,374 third March 2020 March 2020 not At SGRP’s March 2020 March 17, 2020, $1.3 $3 The March 2020 PAGA Rodgers not no March 2020 July 2019 no $500,000 Infotech Litigation and Settlement On September 19, 2018, Infotech one Infotech Action $190,000 In 2016, SPAR BSMT 10% May 3, 2018. Robert G. Brown incurred his alleged expenses associated with the transaction through Infotech, including salary allocations for unauthorized personnel and claims for his "lost tax breaks". Robert G. Brown submitted his unauthorized and unsubstantiated "expenses" to SGRP, and SGRP's Audit Committee allowed approximately $50,000 $150,000 $190,000 In 2018, $900,000 2013 not Romanian Claim 2018. In order to avoid the expenses of protracted litigation, SGRP's Management and the Audit Committee agreed that it would be in the best interest of all stockholders to reach a reasonable settlement of both the Infotech Action and the Romanian Claim for installment payments in reasonable amounts and mutual releases of all other related claims. Management had offed $225,000 $275,000. $275,000 October 8, 2019 ( Infotech Settlement Agreement October 30, 2019, The Infotech Settlement Agreement requires the Company to make payments totaling $275,000 four $75,000 $75,000 30 October 30, 2019); ( $75,000 60 $50,000 90 first four December 31, 2019. January 2020, The Company believes that the robust and comprehensive mutual releases in the Infotech Settlement Agreement SBS Field Specialist Litigation The Company's merchandising, audit, assembly and other services for its domestic clients are performed by field merchandising, auditing, assembly and other field personnel (each a " Field Specialist August 2018 not not not not no July 27, 2018. 10 Related Party Transactions Domestic Related Party Services The appropriateness of SBS' treatment of Field Specialists as independent contractors had been periodically subject to legal challenge (both currently and historically) by various states and others. SBS' expenses of defending those challenges and other proceedings generally were, through but not The Company settled its potential liability (as a current or former party) under two not Any claim made and proven by Robert G. Brown, William H. Bartels, SBS, SAS, any other related party or any third SBS Clothier Litigation Melissa Clothier was engaged by SBS (then known as SPAR Marketing Services, Inc.) and provided services pursuant to the terms of an "Independent Merchandiser Agreement" with SBS (prepared solely by SBS) acknowledging her engagement as an independent contractor. On June 30, 2014, No. RG12 639317, Clothier Case July 16, 2008, June 30, 2014. The court ordered that the case be heard in two one September 9, 2016, Clothier Misclassification Determination two Facing significant potential damages in the Clothier Case, SGRP chose, and on June 7, 2018, Clothier Settlement September 20, 2019. $1.3 2018, $1.3 four first $325,000 December 2019. $975,000 December 31, 2019. Since SGRP has no June 7, 2018) SBS did not not 6 Commitments and Contingencies -- Legal Matters -- SBS Bankruptcy, Settlement and March 2020 SAS Settlement Discussions and Arbitration SBS and SGRP Hogan Litigation Paradise Hogan was engaged by and provided services to SBS as an independent contractor pursuant to the terms of an "Independent Contractor Master Agreement" with SBS (prepared solely by SBS) acknowledging his engagement as an independent contractor. On January 6, 2017, No. 1:17 10024 March 28, 2017, On March 12, 2018, not not On January 25, 2019, not Facing lengthy and costly litigation and significant potential damages in the Hogan Case, on March 27, 2019, no not Hogan Settlement November 2019, $250,000 three December 2019 first $150,000. $100,000 December 31, 2019 $50,000 March 2020 $50,000 June 2020. |