+Added: LEGAL PROCEEDINGS.
a description of our legal proceedings, see Note 7 – Commitments and Contingencies – Litigation, Disputes, and Settlements
−Removed: in Part 1, Item 1 of this Quarterly Report on Form 10-Q.
−Removed: Farkas Group, Inc.
+Added: in Part I, Item 1 of this Quarterly Report on Form 10-Q.
(“FGI”), a Florida corporation whose principal is former Company CEO, Michael D.
−Removed: Farkas, filed a
−Removed: demand for arbitration on April 1, 2024, alleging that the Company owes FGI commissions pursuant to a November 17, 2009 commission
−Removed: agreement between the parties.
−Removed: The Company filed an answer denying the claim and counterclaimed against FGI, Mr.
−Removed: Farkas, and one of
−Removed: his companies, NextNRG Holdings (“NEXT”), alleging that FGI, Mr.
−Removed: Farkas, and NEXT are in violation of non-compete
+Added: Farkas, filed a demand for
+Added: arbitration on April 1, 2024, alleging that the Company owes FGI commissions pursuant to a November 17, 2009 commission agreement
+Added: between the parties.
+Added: The amount of commission was not stated but application of the theories articulated in the pleading would have
+Added: required payment of more than $20 million in commissions.
+Added: The Company filed an answer denying the claim and counterclaimed against
+Added: Farkas, and one of his companies, NextNRG Holdings (“NEXT”), alleging that FGI, Mr.
+Added: Farkas, and NEXT are in
+Added: violation of non-compete agreements.
NEXT later filed a petition with the Florida Superior Court to stay the arbitration as to NEXT.
−Removed: The Florida Court denied
−Removed: NEXT’s petition, and the arbitration resumed in March 2025.
−Removed: The arbitration hearing occurred in August 2025.
−Removed: In October 2025,
−Removed: the Arbitrator issued an interim award which requires the Company to provide an accounting within 90 days applying the
−Removed: Arbitrator’s determinations regarding the Commission Agreement.
−Removed: The Company anticipates that the accounting will result in a
−Removed: final award of less than $100,000 with an ongoing obligation to pay a de minimis monthly amount that is expected to decline to zero over time.
−Removed: The Arbitrator denied the
−Removed: Company’s claim for injunctive relief.
−Removed: The Arbitrator declined to award attorneys’ fees to either party.
+Added: The Florida Court denied NEXT’s petition, and the arbitration resumed in March 2025.
+Added: The arbitration hearing occurred in
+Added: In October 2025, the Arbitrator issued an interim award which rejected many of the theories advocated by FGI and
+Added: requires the Company to provide an accounting within 90 days applying the Arbitrator’s determinations regarding the Commission
+Added: The Arbitrator denied the Company’s claim for injunctive relief.
+Added: The Arbitrator declined to award attorneys’
+Added: fees to either party.
+Added: The Company later prepared the accounting which resulted in a final award requiring the Company to pay
+Added: approximately $72,000, plus quarterly commissions on revenue derived from certain chargers installed prior to June 30, 2017.
+Added: Company estimates the quarterly payments will be less than $10,000 per quarter, declining over time to zero.
+Added: The first payment
+Added: was approximately $10,000 and paid in April 2026.
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.