LEGAL PROCEEDINGS
−Removed: December 1, 2020, Sheppard, Mullin, Richter & Hampton LLP (“Sheppard Mullin”), the Company’s former securities
−Removed: counsel, filed a demand for arbitration at JAMS in New York, New York against the Company, alleging the Company’s breach of an
−Removed: engagement agreement dated January 4, 2018, and a failure of the Company to pay $487,390.73 of outstanding legal fees to Sheppard Mullin.
−Removed: Sheppard Mullin was awarded $459,250.88 in unpaid legal fees, disbursements and interest on June 25, 2021.
−Removed: A judgement confirming the
−Removed: arbitration award was entered on September 8, 2021 in the Federal District Court located in Denver, Colorado.
−Removed: September 23, 2021, the Company entered into a Resolution Agreement and Release (the “Resolution Agreement”) with Sheppard
−Removed: Mullin concerning the $459,250.88 judgement entered against the Company.
−Removed: Under the terms of the Resolution Agreement, the Company was
−Removed: required to make a $25,000 initial payment by September 30, 2021 and is required to make $15,000 monthly payments from October 2021 to
−Removed: January 2023 with a final $10,000 payment due in February 2023.
−Removed: The Company has made all of its required payments under the Resolution
+Added: time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.
+Added: 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.
+Added: Except as set forth below, we are currently not aware of any such legal proceedings or claims that will have, individually or in the
+Added: aggregate, a material adverse effect on our business, financial condition or operating results.
+Added: On October 25, 2024, Arena Special Opportunities Fund, LP and other related entities (“Arena”) filed a lawsuit in New York
+Added: State Court (the “Action”).
+Added: The complaint for the lawsuit alleges, among other things, a purported breach of contract based
+Added: on an alleged equity conditions failure.
+Added: The Company believes that the Action lacks merit.
+Added: In the event this Action is not summarily
+Added: dismissed, the Company intends to vigorously defend against it.
are unable to estimate a reasonably possible loss or range of loss, if any, that may result from these matters.
7 unchanged sentences
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.