What changed in this filing

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Item 3. Legal Proceedings

2025-03-24 compared with 2024-03-15 · 31 added, 22 removed, 6 unchanged (90% of the section changed)

LEGAL PROCEEDINGS

On July 23, 2021, a

wholly owned subsidiary of the Company, Paltalk Holdings, Inc., filed a patent infringement lawsuit against WebEx Communications, Inc.,

Cisco WebEx LLC, and Cisco Systems, Inc.

Cisco WebEx Litigation

On July 23, 2021, a wholly

owned subsidiary of the Company, Paltalk Holdings, filed a patent infringement lawsuit (the “ Lawsuit ”) against

WebEx Communications, Inc., Cisco WebEx LLC, and Cisco Systems, Inc.

(collectively, “ Cisco ”), in the U.S.

District Court for the Western District of

Texas (the “Court”).

The Company alleges that certain of Cisco’s products have infringed U.S.

and that the Company is entitled to damages.

A Markman hearing took

place on February 24, 2022.

On September 7, 2022, the United States Patent Office issued a reexamination of U.S.

and on January 19, 2023, the Examiner issued an Ex Parte Reexamination Certificate, ending the reexamination and confirming the patentability

of claims 1-10 of U.S.

On June 29, 2023, the Court held a pretrial conference with the parties and denied Cisco’s

motion for summary judgment.

The trial is expected to be held in April of 2024.

If the Company receives a jury verdict in its favor or receives settlement

proceeds in connection with the foregoing litigation, the exact amount of such proceeds to be received by the Company will be determined

based on a number of factors and will reflect the deduction of significant litigation-related expenses, including legal fees.

Consequently,

the Company will not receive the majority of any gross proceeds resulting from any potential verdict or settlement.

For the foregoing

reasons, we are unable to predict the outcome of this litigation and its ultimate cost.

Court for the Western District of Texas (the “ Court ”).

The Company alleged that certain of Cisco’s products

have infringed U.S.

6,683,858, and that the Company was entitled to damages.

On August 29, 2024, the

jury awarded the Company $65.7 million (the “ Award ”) in a jury verdict in connection with the Lawsuit.

8, 2024, an order granting a motion for final judgment was entered into in the Court in connection with the Lawsuit.

The final judgment

was entered in the Company’s favor in the amount of the Award and started the time for filing any post-trial motions or appeal.

The exact amount of the

Award proceeds to be received by the Company will be determined based on a number of factors and will reflect the deduction of significant

litigation-related expenses, including legal fees.

Consequently, the Company estimates that it would receive no more than one third of

the gross proceeds in connection with the Award, which Award is subject to post-trial proceedings (including any potential appellate proceedings

Cisco ManyCam Litigation

On March 7, 2025, Cisco Systems, Inc.

and Cisco Technology, Inc.

a complaint against the Company in the U.S.

District Court for the District of Delaware, alleging that the Company’s ManyCam software

has infringed U.S.

8,830,293 and 8,941,708 and seeking damages and injunctive relief.

The Company intends to vigorously defend

itself against these claims.

The Company has not recorded any liability for this matter as it does not believe a loss is probable, and

it cannot estimate any reasonably possible loss or range of possible loss.

It is possible that an unfavorable resolution to this matter

could have an adverse effect on the Company’s results of operations, financial position or cash flows.

To our knowledge, other

3 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.

What changed 10-K

Item 3. Legal Proceedings