What changed in this filing

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Item 3. Legal Proceedings

2022-03-31 compared with 2021-03-25 · 5 added, 57 removed, 2 unchanged (97% of the section changed)

Legal Proceedings.

time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.

However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time

to time that may harm our business.

Company, Amro Albanna, our President and Chief Executive Officer, and Dr.

Shahrokh Shabahang, our Chief Innovation Officer, have

been named as cross-defendants in a counterclaim filed by Christopher Sechrist in an action entitled Shahrokh Shabahang v.

Sechrist, San Bernardino County Superior Court Case No.

CIVDS1831323.

In a cross-complaint, Mr.

Sechrist contends that he was

a partner in a dental practice with Dr.

Shabahang, and that disputes arose as between those partners.

Neither the Company nor

Albanna were partners in, or otherwise have an interest in, the dental practice.

Notwithstanding, and seemingly based solely

on the fact that Dr.

Shabahang became the Chief Innovation Officer for the Company, Mr.

Sechrist has brought claims against the

Company and Mr.

Both the Company and Mr.

Albanna believe that the Counterclaims filed by Mr.

Sechrist have no factual

or legal merit, and they intend to vigorously defend themselves in the action and to seek a dismissal of the case as against them

as soon as possible.

On May 26, 2020, Mr.

Sechrist filed a request for dismissal as to the Company and Mr.

Albanna with the Superior

Court of California, County of San Bernardino, San Bernardino District.

The clerk of the court entered the dismissal with prejudice

on May 26, 2020.

CEO, Amro Albanna, is a party to litigation matters unrelated to the Company or any of its properties.

Such litigations relate

to Innovation Economy Corporation (IEC), a company in which Mr.

Albanna served as the CEO and a Director from 2010 until 2017,

and its wholly-owned subsidiaries (Innovation Economy Corporation d/b/a ieCrowd).

The first litigation (ieCrowd v.

al, Superior Court, Riverside County) was originally commenced by IEC and its subsidiary after Mr.

Albanna was no longer affiliated

with IEC, against certain third-party defendants based upon claims related to their misconduct and mismanagement.

Such defendants

subsequently brought a countersuit against IEC and its subsidiary, in which they named Mr.

Albanna and others as defendants, alleging

that they were misled to invest in IEC and its subsidiary based upon misrepresentations by, among others, Mr.

cases have now been consolidated.

Albanna believes that the counteraction commenced by the third parties against him is without

merit and intends to defend himself.

The second matter (Calabria v.

ieCrowd) was commenced by Calabria Ventures

(the “Calabria Action”) more than 2 years after Mr.

Albanna was no longer affiliated with IEC, related to uncollected rent.

Albanna believes that the action commenced against him is without merit and intends to defend himself.

directly or through its Director and officer insurance policy) has covered all related legal costs to date.

On August 5, 2020,

the plaintiff in the Calabria Action filed a request for dismissal as to Mr.

Albanna with the Superior Court of California, County

of Riverside.

The clerk of the court entered the dismissal without prejudice on August 5, 2020.

From time to time, we may become

involved in various lawsuits and legal proceedings which arise in the ordinary course of business.

However, litigation is subject to inherent

uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

Mine Safety Disclosures.

Not applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 3. Legal Proceedings