Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS
We are party to a lawsuit filed by our former Chief Financial Officer
alleging wrongful termination. The complaint was filed on June 25, 2025, in the Superior Court of the State of Washington in and for King
County, and seeks damages and other relief. We believe the claims are without merit and intend to vigorously defend against the allegations.
We are currently engaged in settlement discussions related to this matter. The ultimate outcome and timing of resolution remain uncertain.
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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