Item 3. Legal Proceedings
Item 3. Legal Proceedings
We may from time to time
become a party to various legal or administrative proceedings arising in the ordinary course of our business. We are currently not a party
to any legal or administrative proceedings and are not aware of any pending or threatened legal or administrative proceedings against
us in all material aspects other than the following:
In February 17, 2022, FT
Global Capital, Inc. (“FTG”), filed a lawsuit against the Company in the Commercial Division of New York Supreme Court. FTG
has brought a breach of contract action against the Company to recover fees in connection with an agreement that the parties entered into
in April 2019 (the “Agreement”). The Company has answered FTG’s complaint and has denied the allegations because it
is the Company’s position that FTG did not fulfill its obligations under the terms of the Agreement. Discovery is continuing.
The ultimate resolution
of the proceedings may have a material adverse impact on our business, financial condition, results of operations or cash flows. Failure
to settle the proceedings or other unfavorable outcomes in this proceedings could result in significant damages, additional penalties
or other remedies imposed against the Company. Litigation of this kind could result in substantial costs and a diversion of our management’s
attention and resources. It could also result in our reputation being harmed and our stock price could decline as a result of allegations
made in the course of the proceedings, regardless of the truthfulness of the allegations.
Item 4. Mine Safety Disclosures
Not Applicable.
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PART II
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.