Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS
On March 7, 2025, Cisco
Systems, Inc. and Cisco Technology, Inc. filed 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. Patent Nos. 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 than as described above, there are no material
pending legal proceedings to which we are a party or of which any of our property is the subject.
ITEM 1A. RISK FACTORS
There were no material changes to the Risk Factors
disclosed in “Item 1A. Risk Factors” in the Form 10-K during the three months ended March 31, 2025. For more information
concerning our risk factors, please see “Item 1A. Risk Factors” in the Form 10-K.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.