What changed in this filing

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Item 3. Legal Proceedings

2022-03-25 compared with 2021-03-29 · 30 added, 32 removed, 3 unchanged (95% of the section changed)

LEGAL PROCEEDINGS

A number of actions

have been commenced against us in the ordinary course of business by vendors, landlords and former landlords, including a third

party claim as a result of an injury suffered on a portion of a leased property not occupied by us.

As certain of these claims

represent amounts included in accounts payable they are not specifically discussed herein.

Contract Pharmacal

(“Contract Pharmacal”) commenced an action on October 2, 2018, relating to a Sublease entered into between us

and Contract Pharmacal in May 2018 with respect to the property that was formerly occupied by Welding Metallurgy, Inc.

(“WMI”),

at 110 Plant Avenue, Hauppauge, New York.

In the action, Contract Pharmacal seeks damages for an amount in excess of $1,000,000

for our failure to make the entire premises available by the Sublease commencement date.

We dispute the validity of the claims

asserted by Contract Pharmacal and believe we have meritorious defenses to those claims.

The pace of litigation in the civil courts

in New York has been slowed by the impact of Covid-19.

The Court has ordered us and Contract Pharmacal to complete discovery, which

On December 20, 2018,

we completed the sale of all of the outstanding shares of our subsidiary, WMI, to CPI Aerostructures (“CPI”).

ensued a dispute with CPI regarding amounts it claimed were due based upon the value it ascribed to the inventory as of the closing

On December 23, 2020, we reached an agreement with CPI to settle the working capital dispute.

Pursuant to the settlement,

the escrow agent released to CPI the $1,380,684 remaining in the escrow account which had been established at the closing and we

exchanged mutual releases customary in the circumstances.

From time to time we

may be engaged in various lawsuits and legal proceedings in the ordinary course of our business.

We are currently not aware of

any legal proceedings the ultimate outcome of which, in our judgment based on information currently available, would have a material

adverse effect on our business, financial condition or operating results.

There are no proceedings in which any of our directors,

officers or affiliates, or any registered or beneficial stockholder of our common stock, is an adverse party or has a material

interest adverse to our interest.

A number of actions have been

commenced against us in the ordinary course of business by vendors, landlords and former landlords, including a third party claim as a

result of an injury suffered on a portion of a leased property not occupied by us.

As certain of these claims represent amounts included

in accounts payable they are not specifically discussed herein.

On October 2, 2018, Contract

Pharmacal Corp.

(“Contract Pharmacal”) commenced an action, relating to a Sublease entered into between us and Contract Pharmacal

in May 2018 with respect to the property formerly occupied by our subsidiary Welding Metallurgy, Inc.

(“WMI”), at 110 Plant

Avenue, Hauppauge, New York.

In the action, Contract Pharmacal sought damages for an amount in excess of $1,000,000 for our failure to

make the entire premises available by the Sublease commencement date.

On July 8, 2021, the Court denied Contract Phamacal’s motion

for summary judgement.

In the Order, the court granted Contract Pharmacal’s Motions to drop its claim for specific performance

and to amend its Complaint to reduce its claim for damages to $700,000.

Contract Pharmacal filed a Motion to reargue which the Court

denied on November 30, 2021.

On March 10, 2022, Contract Pharmacal filed an appeal to the Court’s decision with the Appellate Division

which we will oppose.

We dispute the validity of the claims asserted by Contract Pharmacal, continue to believe we have a meritorious

defense to those claims and intend to dispute the validity of the claim asserted by Contract Pharmacal.

From time to time we may be

engaged in various lawsuits and legal proceedings in the ordinary course of our business.

We are currently not aware of any legal proceedings

the ultimate outcome of which, in our judgment based on information currently available, would have a material adverse effect on our business,

financial condition or operating results.

There are no proceedings in which any of our directors, officers or affiliates, or any registered

or beneficial stockholder of our common stock, is an adverse party or has a material interest adverse to our interest.

MINE SAFETY DISCLOSURES

1 unchanged sentence

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