Item 3. Legal Proceedings
ITEM 3. LEGAL
PROCEEDINGS
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 what it claims was the Sublease commencement date. On July 8, 2021, the Court denied Contract Pharmacal’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. Subsequently, Contract Pharmacal moved to amend its Complaint. We opposed
and the Court denied the request to amend the Complaint. 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. The Appellate
Division upheld the denial of Contract Pharmacal’s motion for summary judgement and upheld the denial of its motion to amend its
Complaint. On March 29, 2023, Contract Pharmacal filed a motion to reargue the appeal previously denied by the Appellate Division. 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.
19
PART
II
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