Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS.
On August 3, 2023, the Circuit Court of Cook County,
Illinois granted the Company’s motion to file a Verified Second Amended Complaint (“Complaint”) in the previously disclosed
lawsuit by the Company against Ludmila Smolyansky and Edward Smolyansky and transferred the matter to the Chancery Division of the Circuit
Court of Cook County, Illinois for adjudication of the Company’s motion for a preliminary injunction and trial on Count I of the
Complaint seeking a permanent injunction. The Complaint alleges additional violations of agreements between the Company and Edward Smolyansky
by Mr. Smolyansky. Such additional ongoing activity by Mr. Smolyansky prompted the Company to request the additional relief of a
preliminary injunction and permanent injunction against Mr. Smolyansky.
Additional information regarding legal proceedings
is available in Note 9, Commitment and Contingencies.
ITEM 1A. RISK FACTORS.
There have been no material changes from the risk
factors disclosed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
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