Item 3. Legal Proceedings
ITEM
3. Legal Proceedings
From
time to time, the Company has become and may become involved in certain lawsuits and legal proceedings which arise in the ordinary course
of business, or as the result of current or previous investments, or current or previous subsidiaries, or current or previous employees,
or current or previous directors, or as a result of acquisitions and dispositions or other corporate activities. The Company intends
to vigorously defend its positions. However, litigation is subject to inherent uncertainties, and an adverse result in these or other
matters may arise from time to time that may harm our financial position or our business, and the outcome of these matters cannot be
ultimately predicted.
To the knowledge of our management team, except as
set forth below, there is no material litigation, arbitration or governmental proceeding currently pending against us or any members of
our management team in their capacity as such.
On September 11, 2023, the Company entered into an
agreement with High Impact Analytics, LLC (“High Impact”) whereby the latter would provide sales management and support services
in exchange for a variable fee. The agreement contained a provision requiring 30 days’ written notice for “cancellation”,
following which High Impact would be entitled to commissions for 120 days thereafter; the agreement also explicitly expired on September
11, 2024 (at which point, by its own terms, it was “no longer in force”), and was not renewed. High Impact demanded continuing
variable fee payments on the grounds that the Company had not “cancelled” the agreement, and the Company responded that the
agreement expressly terminated on September 11, 2024, such that no cancellation was required. On March 13, 2025, High Impact filed suit
in Benton County, Arkansas, alleging that it is entitled to fees in the amount of $500,000, or alternatively treble damages under Ark.
Code Ann. § 4-70-301. The Company denies any liability to High Impact and is examining its legal options in response to the foregoing
complaint.
ITEM
4. Mine Safety Disclosure
Not
Applicable.
21
Index
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.