Item 1. Legal Proceedings
Item 1. Legal Proceedings.
From time to time, we may be subject to legal
proceedings, investigations and claims incidental to the conduct of our business.
Other than disclosed above, we are not a party
to, nor are we aware of, any legal proceedings, investigations or claims which, in the opinion of our management, are likely to have a
material adverse effect on our business, financial condition or results of operations.
On March 17, 2021, the FDA sent a letter to Aspire
North America requesting that Aspire North America submit documents relating to its marketing practices for Aspire products. Specifically,
the FDA requested documents related to youth exposure to Aspire North America’s social media marketing of Aspire as well as Aspire
North America’s use of influencers in social media marketing. This request applied to all of Aspire electronic nicotine delivery
system (ENDS) products and their components or parts. The FDA requested these documents based on the epidemic of youth ENDS use and based
on Aspire North America’s marketing of Aspire products on social media platforms (e.g., Facebook, YouTube, and Instagram). The FDA
requested that Aspire North America respond within 60 days but granted a 30-day extension. On June 15, 2021, Aspire North America provided
the required information to the FDA. To date, the FDA has not substantively responded or taken any further action in the matter. However,
we cannot assure you that the FDA will consider the response adequate and will not initiate regulatory or enforcement action based on
an alleged failure to comply with the request or that the FDA will not initiate regulatory or enforcement action on other grounds based
on the contents of the documents produced in the response. Either result could materially and adversely affect our business, financial
condition, and results of operations.
Item 1A. Risk Factors
As a “smaller reporting
company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item. Our current
risk factors are set forth in our Form 10-K, filed with the SEC on September 19, 2023.
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds
None.
Item 3. Defaults upon Senior Securities
None.
Item 4. Mine and Safety Disclosure
Not applicable
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