What changed in this filing

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Item 1. Legal Proceedings

2023-07-18 compared with 2022-11-04 · 78 added, 60 removed, 2 unchanged (99% of the section changed)

Legal Proceedings

DarkPulse, Inc.

Twitter, Inc.

As disclosed in greater detail in the Company’s

Form 10-K, filed April 15, 2022, the Company’s investigation of the Investor News matter remains ongoing.

On October 21, 2022, the Company filed a petition

against Twitter, Inc.

in the Supreme Court of the State of New York County of New York to compel disclosure of the owner(s) and operator(s)

of two certain Twitter accounts:

“Mike Wood” (@MIKEWOOD) and “Bull Meechum” (@BullMeechum3).

The petition seeks

disclosure of the owner(s) and operator(s) of the aforementioned accounts so the Company can commence an action against such individuals

for damages arising from false, misleading, and untrue statements made by the same.

On October 25, 2022, the court signed an order

to show cause directing Twitter to show cause on or before November 4, 2022 as to why an order compelling disclosure of the identities

of the owner(s) / operator(s) of the @MIKEWOOD and @BullMeechum3 Twitter accounts should not be made.

Carebourn Capital, L.P.

DarkPulse, Inc.

As disclosed in greater detail in the Company’s

Form 10-Q, filed August 10, 2022, the Company remains in active litigation with Carebourn Capital, L.P.

(“Carebourn”) in Minnesota

There are no material updates to this litigation.

The Company remains committed to actively litigating

its affirmative defenses and claims for relief under the Securities Exchange Act of 1934.

More Capital, LLC v.

DarkPulse, Inc.

As disclosed in greater detail in the Company’s

Form 10-Q, filed August 10, 2022, the Company remains in active litigation with More Capital, LLC (“More”) in Minnesota State

There are no material updates to this litigation.

The Company remains committed to actively litigating

its affirmative defenses and claims for relief under the Securities Exchange Act of 1934.

Goodman et al.

DarkPulse, Inc.

As disclosed in greater detail in the Company’s

Form 10-Q, filed November 15, 2021, on September 10, 2021, Stephen Goodman, Mark Banash, and David Singer (“Former Officers”)

commenced suit against the Company in Arizona Superior Court, Maricopa County.

As of the date hereof, the Company is engaged

in settlement negotiations with the Former Officers.

DarkPulse, Inc.

FirstFire Global Opportunities Fund, LLC, and

As disclosed in greater detail in the Company’s

Form 10-Q, filed August 10, 2022, the Company remains in active litigation with FirstFire Global Opportunities Fund, LLC (“FirstFire”),

and Eli Fireman (“Fireman”) (FirstFire and Fireman together, the “FirstFire Parties”).

As previously disclosed therein, the FirstFire

Parties’ motion to dismiss the Company’s first amended complaint has been fully submitted to the Court.

On May 26, 2022, the

FirstFire Parties requested oral arguments on their motion to dismiss.

As of the date hereof, oral arguments have not been scheduled and,

further, no decision has been rendered on the FirstFire Parties’ motion to dismiss.

The Company remains committed to actively litigating

its claims for relief under the Securities Exchange Act of 1934.

Benner et al v.

DarkPulse, Inc.

EMA Financial, LLC et al

As disclosed in greater detail in the Company’s

Form 10-Q, filed August 10, 2022, the Company remains in active litigation with EMA Financial, LLC (“EMA”), EMA Group, Inc.

(“EMA Group”), and Felicia Preston (“Preston”) (EMA, EMA Group, and Preston together, the “EMA Parties”).

As of July 22, 2022, the EMA Parties’ motion

to dismiss the Company’s first amended complaint is fully submitted.

As of the date hereof, no decision has been rendered on the

EMA Parties’ motion to dismiss.

The Company remains committed to actively litigating

its claims for relief under the Securities Exchange Act of 1934 and Racketeer Influenced and Corrupt Organizations Act.

On March 29, 2023, J.

Merlin Benner, Phillip J.

Benner, Benjamin P.

Benner, Jonas M.

Benner, and Angelica M.

Benner (collectively, the “ Benner Parties ”) commenced

an action in the United States District Court for the Southern District of Texas against the Company and its Chief Executive Officer,

Dennis O’Leary, individually, alleging (i) the Company is in breach of contracts between the Company and the Benner Parties as it

concerns Remote Intelligence, LLC and Wildlife Specialists, LLC, (ii) violation of Texas Uniform Fraudulent Transfer Act by the Company,

and (iii) defamation by Mr.

On June 30, 2023, the Company and Mr.

O'Leary filed their Answer to

the Benner Parties' Complaint.

The Company intends to vigorously defend itself against the Benner Parties’ lawsuit.

Optilan (UK) Limited

– Compulsory Liquidation

On June 28, 2023, an

order was made by the English courts to place Optilan (UK) Limited (“ Optilan UK ”) into compulsory liquidation.

liquidation is a formal, legal insolvency procedure that results in a company being forcibly liquidated by the courts.

was initiated by the presentation of a winding petition served on Optilan UK by an unpaid creditor.

Optilan UK was unable to settle

the creditor payment ahead of the wining up hearing in court and consequently, the court made an order for the company to be wound up/liquidated.

At the point the order was made, Optilan UK ceased operating, and the directors’ powers ceased.

All employment contracts terminated

as did other contractual relationships with clients and customers whose contracts allowed for termination following the company’s

entry into liquidation.

We understand the other companies in the Optilan group remain solvent and continue to operate.

At the same time, the

court appointed the Official Receiver's Office (the “ OR ”) to take the appointment as liquidator of Optilan UK.

An official receiver is a licensed insolvency practitioner who has been appointed by the courts to ensure the company is wound down as

per the compulsory order.

The OR has taken control of the Optilan UK’s assets.

The primary objective

of the OR, who is also an officer of the court, is to repay as much as possible to the creditors.

The OR will undertake an initial

interview with the directors to identify urgent matters, and thereafter undertake a full interview with the directors to further their

investigation work.

The OR will also conduct a separate interview as regards the directors’ conduct and report this back to the

Insolvency Service.

Creditors can also nominate

their own choice of liquidator to replace the OR.

The OR will consider nominations from creditors and ordinarily the largest unsecured

creditor will be able to appoint their own choice of liquidator.

The liquidator acts in the interests of all creditors.

intention for DarkPulse (as largest unsecured creditor of Optilan UK) to try and replace the liquidator for one of its choice.

The liquidator's fees

are generally paid out of the company's assets.

The liquidator must make payment to creditors in a particular order as set out below:

· Secured creditors with a fixed charge;

· Liquidator fees;

· Preferential creditors (employees);

· Secondary preferential creditors (HMRC);

· Secured creditors with a floating charge;

· Unsecured creditors (which includes DarkPulse debts).

Unsecured creditors rank equally.

The main result of compulsory

liquidation is the complete dissolution of the business of Optilan UK.

However, assets of Optilan UK can be purchased at fair market value.

DarkPulse has expressed a desire to acquire certain assets of Optilan UK from the liquidator.

If DarkPulse does not

purchase the assets of Optilan UK, the liquidator will go out to competitors and may try to find a buyer.

If they cannot find one, any

contracts will be disclaimed (cannot be performed), and tangible assets will be disposed of at auction to get the best price.

Most liquidations take

around 6 to 12 months to conclude.

This period usually affords the liquidator sufficient time to dispose of the company’s assets,

agree creditor claims and make a distribution to creditors (if there are any funds available), conclude the company’s tax affairs

and fill the necessary closure paperwork.

During the process,

the subsidiaries can continue to operate, and DarkPulse can support those operations as well as attempt to sign new contracts with the

current customers of Optilan UK.

From time to time, we may become involved in litigation

relating to claims arising out of our operations in the normal course of business.

We are not currently involved in any pending legal

proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we are

a party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on our business,

financial condition and operating results.

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.

What changed 10-Q

Item 1. Legal Proceedings