Item 1. Legal Proceedings
Item
1.
Legal
Proceedings.
On
October 19, 2019 the Company was served with a lawsuit by Norman Reynolds (“ Reynolds ”), a previously engaged
counsel by the Company. The suit was filed in Harris County District Court, Houston, Texas, asserting claims for unpaid fees of
$90,377. While fully reserved, the Company vigorously disputed the total amount claimed and has asserted counterclaims based upon
Reynolds’ alleged conflicts of interest, breaches of fiduciary duty and violations of the Texas Deceptive Trade Practices
Act. We are confident in the Company’s defenses and counterclaims and intend to continue to vigorously defend the Company’s
interests and prosecute its claims.
There
are no other active material legal matters as of the date of this report. See also Note 10 - Commitments and Contingencies –
Legal Matters herein above to the unaudited condensed consolidated financial statements included elsewhere in this report and
incorporated herein by reference.
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