Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS.
From time to time, we may be subject to litigation and claims arising in the ordinary course of business. We are
not currently a party to any material legal proceedings and we are not aware of any pending or threatened legal proceeding against us
that we believe could have a material adverse effect on our business, operating results, cash flows or financial condition. Notwithstanding
the foregoing, our business, including
our funding portal and broker-dealer subsidiaries are subject to extensive regulations. Regulatory bodies include, but are not limited
to, the SEC, FINRA, and the Nasdaq Stock Market. As a result, f rom
time to time, we may be subject to various regulatory inquiries, governmental investigations, or other claims arising in the ordinary
course of our business related to our operations and/or compliance with applicable laws and regulations. Further, while the Company fully
cooperates with such matters, the cost of responding to such matters, including legal fees can be extensive, and the outcome of any of
these matters is inherently uncertain. These matters may also divert financial and management resources that would otherwise be used to
benefit our operations. No assurances can be given that the results of these matters will be favorable to us, and an adverse outcome in
any such matter could have a material adverse effect on our business, financial position, and results of operations.
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