{"url_path":"/sec/miti/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 LEGAL PROCEEDINGS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/802257/0001185185-26-001982-index.html","accession_number":"0001185185-26-001982","cik":"0000802257","ticker":"MITI","issuer_name":"Mitesco, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/802257/0001185185-26-001982-index.html","primary_entity_key":"0000802257","primary_entity_name":"Mitesco, Inc."},"word_count":645,"has_tables":true,"body_markdown":"**ITEM\n1. LEGAL PROCEEDINGS**\n\n \n\nThe\nCompany has a number of legal situations involved with the winding down of its clinic business activities. These include claims regarding\ncertain construction contracts and cancellation of leases as noted below:\n\n \n\n**LOCATION**\n \n**PROPERTY\nNAME**\n \n**ORIGINAL\nOBLIGATION**\n \n \n**SETTLEMENT\nAMOUNT**\n \n \n**DATE\nOF\nAWARD**\n \n**INTEREST\nRATE**\n \n \n**INTEREST\nACCRUED\nON SETTLEMENT**\n \n \n**TOTAL\nSETTLEMENT\nOBLIGATION**\n \n \n**TYPE\nOF\nSETTLEMENT**\n\nWAYZETTA,\nMN\n \nWAZETTA\nBAY\n \n$\n407,000\n \n \n$\n25,000\n \n \nNA\n \n \n-\n \n \n \n-\n \n \n$\n25,000\n \n \nCASH\nPAYMENT OBLIGATION\n\nEAGAN,\nMN\n \nVIKINGS\n \n$\n767,000\n \n \n$\n488,491\n \n \n12/7/2023\n \n \n10\n%\n \n$\n113,089\n \n \n$\n601,580\n \n \nDEFAULT\nJUDGEMENT\n\nST.\nLOUIS PARK, MN\n \nEXCELSIOR\n \n$\n673,000\n \n \n$\n425,350\n \n \n5/22/2024\n \n \n10\n%\n \n$\n79,010\n \n \n$\n504,360\n \n \nDEFAULT\nJUDGEMENT\n\nST.\nPAUL, MN\n \nCONTINENTAL\n560\n \n$\n1,153,000\n \n \n$\n415,606\n \n \n1/22/2024\n \n \n10\n%\n \n$\n90,978\n \n \n$\n506,584\n \n \nDEFAULT\nJUDGEMENT\n\nMAPLE\nGROVE, MN\n \nBUTTNICK\n \n$\n1,153,127\n \n \n$\n219,000\n \n \n10/3/2022\n \n \n10\n%\n \n$\n76,500\n \n \n$\n295,500\n \n \nSETTLEMENT\nAGREEMENT\n\nDENVER,\nCO\n \nRADIANT\n \n$\n782,000\n \n \n$\n530,557\n \n \n \n \n \n-\n \n \n \n-\n \n \n$\n530,557\n \n \nDISMISSED\n\nDENVER,\nCO\n \nQUINCY\n \n$\n1,079,000\n \n \n$\n848,764\n \n \n11/14/2023\n \n \n12\n%\n \n \n138,486\n \n \n$\n987,250\n \n \nDEFAULT\nJUDGEMENT\n\n \n \nTOTAL\n \n$\n6,014,127\n \n \n$\n2,952,768\n \n \n \n \n \n \n \n \n$\n498,063\n \n \n$\n3,450,831\n \n \n \n\n \n\n*Quincy\nClinic a.k.a. 1776 Curtis*\n\n \n\nOn\nSeptember 28, 2021, we entered into an agreement to open a clinic in Denver, Colorado, which was expected to begin operation in the first\nquarter of 2023 but possession of which has been relinquished to the landlords. The initial lease term is 94 months. Fixed rent payments\nunder the initial term are approximately $1,079,000. A Final Judgment was granted on November 14, 2023, in the amount of $348,764 including\ninterest, fees and other costs. The Company has released the property back to the leaseholder. The owner of the property has filed before\nthe same court, an action against the Company (Case No. 2022 CV 33173, Division: 409, Consolidated with 2022CV33653) seeking to modify\nthe final settlement for an additional $900,000. We intend to vigorously defend the Company as our position is that there is no basis\nfor this claim.\n\n \n\n*Administrative\noffice*\n\n \n\nOn\nJune 24, 2021, we entered into an agreement to open an administrative office in St. Louis Park, Minnesota. The initial lease term is\n2.5 years. Fixed rent payments under the initial term were approximately $244,000. We believe that there is no further obligation in\nthis situation, but we do not have such documented in writing at this time.\n\n \n\n**Gardner\nDebt for Equity Agreement and other obligations**\n\n \n\nThe\nCompany entered into a debt-for-equity exchange agreement with Gardner Builders Holdings, LLC (the “Creditor”) on January\n7, 2022 (the “Agreement”). Pursuant to the Agreement, the Company issued shares of restricted common stock, par value $0.01\nper share, of MITI (the “Restricted Shares”) to the Creditor in exchange for the Company Debt Obligations, as defined below.\n\n \n\nThe\nAgreement settled certain accounts payable amounts owed by the Company to the Creditor (the “Accounts Payable Amount”) as\nwell as then upcoming amounts that would become due between the date of the Agreement and April 1, 2022. The Agreement also settled incurred\ninterest and penalties on the amounts due through January 5, 2022, as well as future interest payments on amounts to be incurred in the\nfirst quarter of 2022 (collectively, the “Additional Costs”, and combined with the Accounts Payable Amount, the “Company\nDebt Obligations”). The Accounts Payable Amount was $500,000, the Additional Costs were $294,912 and the conversion price was $12.50.\nAs a result, 63,593 Restricted Shares were authorized to be issued. The Company’s Board of Directors approved the Agreement on\nJanuary 5, 2022. Much of the amounts claimed by Gardner have been resolved by the settlements with the various leaseholders where Gardner\nhad filed liens. During 2021 and through 2022 a total of $2,305,155 was paid by the Company directly to Gardner for their services. As\nof the date of this filing the Company is continuing an effort to negotiate a settlement of any remaining obligations to this vendor.\n\n \n\n23\n\n[Table of Contents](#TableOfContents)"}