Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS.
From time to time, we may be involved
in litigation that arises through the normal course of business. As of the date of this filing and except as set forth below, we are neither
a party to any litigation nor are we aware of any such threatened or pending litigation which we believe might result in a material adverse
effect to our business.
On April 1, 2026, Cycurion, Inc.
filed a complaint against the Company in the General Court of Justice, Superior Court Division, Wake County, North Carolina, together
with an unidentified “John Doe” defendant. The complaint alleges that on March 16, 2026, the Company disseminated a press
release concerning Cycurion that the plaintiff contends was fabricated and submitted to the Company by an unauthorized third party, and
asserts claims against the Company for common law defamation, violation of the North Carolina Unfair and Deceptive Trade Practices Act,
and common law negligence. The plaintiff seeks monetary damages. The Company believes the claims against it are without merit and intends
to defend the matter vigorously. This litigation matter is covered under the Company’s insurance policies. At this time, the Company
is unable to reasonably estimate the amount or range of possible loss, if any, that may result from this matter, and accordingly no accrual
for any loss contingency has been recorded in the accompanying condensed consolidated financial statements. The Company does not expect
the outcome of this litigation to have a material adverse effect on its financial condition or results of operations, or cash flows, although
there can be no assurance as to the ultimate outcome.
ITEM 1A. RISK FACTORS.
There have been no material changes
to our risk factors as previously disclosed in our most recent Form 10-K filing.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.