Item 1. Legal Proceedings
Item
1. Legal Proceedings
On
March 23, 2025, a complaint was filed against our wholly owned Israeli subsidiary, Duke Israel, by LOOL T.V. Ltd. (the “Plaintiff”),
an Israeli company, in the Tel Aviv-Yafo Magistrate’s Court (Case No. 60460-03-25). The complaint asserts that pursuant to an agreement
of principles between Duke Israel and the Plaintiff, Duke Israel is in breach of the agreement, specifically with respect to an allegation
that the parties were required to set up a partnership with respect to certain services provided to the IEC. The complaint asserts a claim
for breach of contract, unlawful use of intellectual property that is not exclusively owned by Duke Israel and unjust enrichment with
regards to the agreement of principles. In addition, the Plaintiff’s complaint seeks an order for a permanent injunction to prevent
Duke Israel from continuing providing these services to the IEC, and an order to enforce the agreement of principles ordering Duke Israel
to act as necessary to establish a partnership or joint venture.
The Company has filed a statement of defense against the complaint and
believe that the allegations are baseless and without merit and intend to vigorously defend our rights. In addition, the complaint does
not impact the continued performance of the agreement between Duke Israel and IEC, and we do not believe the complaint will have a material
effect on our business, financial condition or results of operations.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.