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. The parties
have entered into a settlement agreement involving the payment of cash and the issuance of a warrant to the plaintiff. Upon payment
of the settlement amount in accordance with the terms of the settlement agreement, the matter will be fully resolved.
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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