Legal Proceedings.
−Removed: On June 7, 2022, the Company filed a lawsuit (the “Lawsuit”) in Utah naming as defendants the vendors from which the Company ordered equipment for its facility in Utah (collectively the “Defendants”).
−Removed: The Lawsuit relates to certain equipment ordered from Defendants and paid for by the Company, which Defendants never delivered.
−Removed: In the Lawsuit the Company is seeking the following relief:
−Removed: compensatory damages in the amount $490,000, representing the money the Company paid for the machines it never received, lost profits in the form of mask sales it could have made if Defendants had delivered the machines on the promised date, and other monetary and equitable relief.
−Removed: In 2022, the Company wrote off the $490,000 balance of the deposit paid for the equipment, pending any recovery in the Lawsuit.
−Removed: As of the date hereof, no counterclaims have been asserted against the Company.
−Removed: The Company believes there would not be any meritorious claims against the Company in the Lawsuit.
−Removed: The final outcome of the Lawsuit, including the potential amount of any recovery for the Company’s claims, is uncertain.
−Removed: Any potential recovery represents a gain contingency in accordance with ASC 450, Contingencies, that has not been recorded as the matter was not resolved as of December 31, 2024.
−Removed: Any recovery will be recorded when received.
The Company is subject to various pending and threatened litigation actions in the ordinary course of business.
2 unchanged sentences
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.