Item 3. Legal Proceedings
Item
3.
Legal
Proceedings.
On
October 19, 2019 the Company was served with a lawsuit by Norman 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 $90,378. While fully reserved, Greenway vigorously
disputes the total amount claimed. Greenway has asserted counterclaims based upon alleged conflicts of interest, breaches of fiduciary
duty and violations of the Texas Deceptive Trade Practices Act (“DTPA”). During the fourth quarter of 2021, the two parties
met for mediation, but no conclusion was reached. Greenway is confident in its defenses and counterclaims and intends to vigorously defend
its interests and prosecute its claims.
On
September 7, 2021, the Company was served with a demand for mediation and potential arbitration by Gregory Sanders, a previous employee
of the Company. The demand claims Mr. Sanders had an employment agreement with the Company entitling him to certain compensation payments
under the contract. No conclusion was met during mediation which occurred in the fourth quarter of 2021. Greenway is confident in its
defenses and counterclaims and intends to vigorously defend its interests and prosecute its claims.
Item
4.
Mine
Safety Disclosures.
Not
applicable.
- 12 -
PART
II
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