Item 3. Legal Proceedings
ITEM 3. 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.
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.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II
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