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However, litigation is subject to inherent uncertainties and an adverse result in these or other matters may arise from time to time that may harm our business.
−Removed: We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results, except as set forth below.
−Removed: de Lacy, David Maley, and Judith Schrecker v.
−Removed: ClearSign Technologies Corporation, Case No.
−Removed: 2026-0082-CDW (Delaware Court of Chancery)
−Removed: On January 16, 2026, the Former Directors filed a petition for advancement in the Delaware court of Chancery for an advancement of legal fees relating to a request, by us, for the Former Directors to return material generated by the Special Committee.
−Removed: The advancement proceeding effectuated an advancement of monies to the Former Directors counsel for monies incurred to represent the Former Directors in this matter.
−Removed: The advancement proceeding followed a prescribed court process where the legal fees were reviewed to determine a reasonable amount payable to the Former Directors’ counsel for representation in this matter.
−Removed: We do not believe this proceeding will have a material adverse effect on the future operations of the Company.
−Removed: In addition, we do not anticipate any additional claims for advancement of legal fees in this case in the future.
−Removed: The total advancement request amounted to $319 thousand, which was paid in full during the three months ended March 31, 2026.
+Added: We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.
+Added: Refer to Item 1 of Part II of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, for prior updates to our legal proceedings during our 2026 fiscal year.
+Added: Additional information relating to our legal proceedings is included in “Note 10 - Commitments and Contingencies” to the accompanying unaudited condensed consolidated financial statements, which is incorporated herein by reference.
We incorporate herein by reference the risk factors included under “Part I - Item 1A.
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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.