Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS
The
Company is the subject of a lawsuit recently commenced by its former chief financial officer alleging wrongful termination. Based on
information currently available to the Company and the advice of legal counsel, management believes that the outcome of this lawsuit
is not probable to result in a material adverse effect on the Company’s financial position, results of operations, or cash flows.
While the Company intends to vigorously defend itself against these allegations, the ultimate outcome of the lawsuit is not possible
to predict. At this time given the uncertainties inherent in litigation, it is not reasonable to estimate the amount or range of any
potential loss, and therefore no liability has been accrued in the accompanying financial statements.
Other
than as set forth above, there are no legal matters pending against the Company.
ITEM
1A. RISK FACTORS
The
Company is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined
in Rule 12b-2 of the Exchange Act.
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM
3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM
4. MINE SAFETY DISCLOSURES
None.
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