What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2023-09-15 compared with 2022-09-28 · 24 added, 24 removed, 6 unchanged (89% of the section changed)

LEGAL PROCEEDINGS

Our former placement agent, Boustead Securities LLC, has brought a

legal action against us following our communication to Boustead to unilaterally terminate an engagement agreement under which we and Boustead

had originally intended for Boustead to be engaged to act as an exclusive underwriter in our initial public offering.

To date, we have

been unable to reach a settlement with Boustead.

On April 30, 2021, Boustead filed a statement of claim with FINRA demanding to arbitrate

the dispute, and is seeking, among other things, monetary damages against the Company and D.A.

Legal Proceedings

former placement agent, Boustead Securities LLC ("Boustead”), has brought a legal action against us following our communication

to Boustead to unilaterally terminate an engagement agreement under which we and Boustead had originally intended for Boustead to be engaged

to act as an exclusive underwriter in our initial public offering.

To date, we have been unable to reach a settlement with Boustead.

April 30, 2021, Boustead filed a statement of claim with FINRA demanding to arbitrate the dispute, and is seeking, among other things,

monetary damages against the Company and D.A.

Davidson & Co.

We are presently waiting

for the FINRA panel to schedule a hearing date on the matter.

We believe that we have meritorious defenses to any claims that Boustead

may assert, and we do not believe that such claims will have a material adverse effect on our business, financial condition or operating

The matter is presently scheduled to have a pre-hearing conference before

a FINRA arbitration panel on September 26, 2023.

The actual FINRA arbitration, however, has been postponed and, as a result, a date for

the FINRA arbitration hearing has not yet been set.

The Company and its special litigation counsel are in the process of preparing for

We believe that we have meritorious defenses to any claims that Boustead may assert, and we do not believe that such claims

will have a material adverse effect on our business, financial condition, or operating results.

However, we have agreed to indemnify D.A.

Davidson & Co.

and the other underwriters who participated in our initial public

offering against any liability or expense they may incur or be subject to arising out of the Boustead dispute.

In addition, Chenlong Tan,

our Chairman, President and Chief Executive Officer and a beneficial owner more than 5% of our common stock, has agreed to reimburse us

for any judgments, fines and amounts paid or actually incurred by us or an indemnitee in connection with such legal action or in connection

with any settlement agreement entered into by us or an indemnitee up to a maximum of $3.5 million in the aggregate, with the sole source

of funding for such reimbursement to come from sales of shares then owned by Mr.

For further information, see “ Risk Factors – Prior to our initial public offering we unilaterally

terminated an engagement agreement with Boustead Securities LLC and may be subject to litigation in the event we are not able to come

to agreement on the amounts Boustead deems itself to be owed under such agreement ” and “ Certain Relationships and Related Transactions .”

We are not presently party

to any pending or other threatened legal proceedings or claims that we believe will have a material adverse effect on our business, financial

condition or operating results, although from time to time, we may become involved in legal proceedings in the ordinary course of business.

and the other underwriters who participated in our initial public offering against any liability or expense they may

incur or be subject to arising out of the Boustead dispute.

In addition, Chenlong Tan, our Chairman, President, and Chief Executive Officer

and a beneficial owner of more than 5% of our common stock, has agreed to reimburse us for any judgments, fines and amounts paid or actually

incurred by us or an indemnitee in connection with such legal action or in connection with any settlement agreement entered into by us

or an indemnitee up to a maximum of $3.5 million in the aggregate, with the sole source of funding for such reimbursement to come from

sales of shares then owned by Mr.

than the above, we are not presently party to any pending or other threatened legal proceedings or claims that we believe will have a

material adverse effect on our business, financial condition, or operating results, although from time to time, we may become involved

in legal proceedings in the ordinary course of business.

MINE SAFETY 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.

What changed 10-K

Item 3. Legal Proceedings