Item 1. Legal Proceedings
Item 1. Legal Proceedings
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also explicitly expired on September 11, 2024 (at which point, by its own terms, it was “no longer in force”), and was not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. On May 1, 2025, the Company reached a settlement agreement to resolve a dispute with
High Impact. In connection with the settlement, pursuant to which the Company paid $210 thousand in Q2 2025.
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.
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not applicable.
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