LZG International estimates $12.9M in known liabilities
Bringing LZG's filings current would require audited financial statements for several years, at a cost it cannot fund without diverting money otherwise available to creditors.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
LZG International, Inc. (LZGI) says it has no operations or revenue and that its liabilities substantially exceed its assets. Its board recommends winding down through an assignment of all assets for creditors under Chapter 727, Florida Statutes, which it describes as a cost-effective and orderly way to maximize creditor recovery. Shareholders will receive materials regarding approval of the assignment.
As of May 25, 2026, LZG estimated known liabilities at approximately $12,881,640, excluding contingent liabilities, including Genius Group Ltd.’s disputed claim based on an arbitration award that has not been confirmed. After the SEC instituted a proceeding on September 3, 2026, to suspend or revoke registration of LZG common stock, LZG said it will consent to revocation. After revocation, LZG will no longer file periodic reports, and brokers and dealers will not be permitted to effect transactions in its common stock.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Major pointLZG says liabilities substantially exceed assets; known liabilities were approximately $12,881,640 as of May 25, 2026. 420× market cap
8-K Event Classification
Key Figures
Key Terms
assignment for the benefit of creditors financial
contingent liabilities financial
Section 12(j) regulatory
revocation of the registration regulatory
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much in liabilities did LZGI report?
What does LZGI's board recommend?
Why will LZGI consent to revocation of its common-stock registration?
What happens to LZGI stock after revocation?
AI-generated analysis. How Rhea-AI works. Not financial advice.
EXHIBIT 99.1
SHAREHOLDER UPDATE OF LZG INTERNATIONAL, INC.
Issued Pursuant to the Stipulation and Agreement of Settlement in Carey et al. v. Moe et al., Case No. 2024-019773-CA-01 (Fla. 11th Jud. Cir. Ct.)
On June 15, 2026, the Court entered its Order and Final Judgment approving the Stipulation and Agreement of Settlement dated May 21, 2026, in Carey et al. v. Moe et al., Case No. 2024-019773-CA-01, pending in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida (the “Court-Approved Settlement”). This Shareholder Update is issued pursuant to the Court-Approved Settlement.
LZG has no operations, and its liabilities substantially exceed its assets.
LZG International, Inc. (“LZG”) has no operations and no revenue. As required by the Court-Approved Settlement, this Shareholder Update refers to the Statement of Liabilities prepared under the Court-Approved Settlement as of May 25, 2026, which at that time estimated LZG’s known liabilities at approximately $12,881,640 and did not include contingent liabilities, including the disputed claim of Genius Group Ltd. based on an arbitration award that has not been confirmed. LZG’s liabilities substantially exceed its assets. LZG’s remaining funds are limited.
The Board considered each alternative available to LZG.
The Board considered an assignment for the benefit of creditors, dissolution, the appointment of a custodian or receiver, and a petition under Chapter 7 or Chapter 11 of the Bankruptcy Code. LZG has no operating business to reorganize under Chapter 11, and dissolution, a custodianship or receivership, or a Chapter 7 liquidation would each cost more than an assignment for the benefit of creditors and reduce the funds available to LZG’s creditors.
The Board has determined that LZG has no practical alternative but to wind down its affairs.
Based on its assessment of those alternatives, the Board has determined that LZG has no practical alternative but to wind down its affairs.
The Board recommends an assignment for the benefit of creditors.
The Board recommends that LZG make an assignment of all of its assets for the benefit of its creditors under Chapter 727, Florida Statutes, because an assignment is the most cost-effective and orderly means of maximizing the recovery available to LZG’s creditors. Shareholders will receive further materials regarding the approval of the assignment.
| 1 |
LZG will consent to the revocation of the registration of its common stock.
LZG has not filed a periodic report with the Securities and Exchange Commission since its Form 10-Q for the period ended February 28, 2023. On September 3, 2026, the Commission instituted a proceeding under Section 12(j) of the Securities Exchange Act of 1934 to suspend or revoke the registration of LZG’s common stock (Administrative Proceeding File No. 3-22695). Bringing LZG’s filings current would require audited financial statements for several years, at a cost LZG cannot fund without diverting money otherwise available to its creditors. The Board has therefore determined that LZG will consent to the revocation of the registration of its common stock. After revocation, LZG will no longer file periodic reports with the Commission, and brokers and dealers will not be permitted to effect transactions in LZG’s common stock.
Forward-looking statements.
This update contains forward-looking statements. These statements reflect the Board’s current views and involve risks and uncertainties, and actual results may differ materially.
John New, Sole Director
Dated: _________________
Questions regarding this Update may be directed to counsel for the Company:
Tom M. Fini
Catafago Fini LLP
One Grand Central Place
60 East 42nd Street, 47th Floor
New York, New York 10165
Cell: 917-561-4143
tom@catafagofini.com
| 2 |