Item 3 Legal Proceedings.
−Removed: From time to time, we may become involved in legal proceedings arising in the ordinary course of business.
−Removed: We are not currently a party to any litigation or legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business.
−Removed: Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors.
+Added: From time to time, the Company is a party to or otherwise involved in legal proceedings, including suits, assessments, regulatory actions and investigations generally arising out of the normal course of business.
+Added: Such proceedings can be costly, time consuming, and unpredictable.
+Added: Therefore, no assurance can be given on the outcome of any proceeding or the potential impact on our results of operations or financial condition.
+Added: On December 23, 2022, a lawsuit was filed by Altor BioScience, LLC and NantCell, Inc., collectively, Altor/NantCell, against the Company in U.S.
+Added: District Court for the Southern District of Florida, or the Court, alleging misappropriation of trade secrets under state and federal laws, inducement of breach of contract and breach of fiduciary duty, tortious interference with contractual relations, specific performance, conversion, unjust enrichment, specific performance for assignment of patents and patent applications, constructive trust, and replevin.
+Added: The complaint against the Company is based on very similar allegations as those alleged by Altor/NantCell in an arbitration commenced in December 2022 against the Company’s Founder and Chief Executive Officer, Dr.
+Added: Wong, who was formerly employed by Altor/NantCell.
+Added: Altor/NantCell alleges that Dr.
+Added: Wong purportedly took Altor/NantCell’s confidential and trade-secret information and used it to form and build competing products for the Company.
+Added: Altor/NantCell allege that each of the provisional applications that the Company has filed for relate to the use of fusion proteins, tissue factor, and other proprietary data that were developed at Altor/NantCell, while Dr.
+Added: Wong was an employee of or consultant to Altor/NantCell, and using its resources.
+Added: Altor/NantCell seeks compensatory and punitive damages, attorneys’
+Added: fees and costs, and equitable relief including an order requiring the company to assign title and all rights to the Company’s patents and provisional applications to Altor/NantCell.
+Added: On January 31, 2023, the Company filed a motion to compel arbitration, a motion for the stay of the litigation, and a motion to dismiss the complaint (“motion to compel”), which are currently pending before the Court.
+Added: On March 10, 2023, the Company filed a motion to temporarily stay discovery pending the Company’s motion to compel, which the Court granted on March 13, 2023.
+Added: Although adverse decisions (or settlements) may occur in the lawsuit described above, it is not possible to reasonably estimate the possible loss or range of loss, if any, associated therewith at this time and, as such, no accrual for these matters has been recorded within our audited financial statements included elsewhere in this Annual Report.
+Added: If liability is determined, it could have a material adverse effect on the Company’s business, results of operations and financial condition.
Item 4 Mine Saf ety Disclosures.
1 unchanged sentence
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.