What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2023-03-31 compared with 2013-04-01 · 16 added, 33 removed, 2 unchanged (96% of the section changed)

Legal Proceedings.

On October 27, 2011,

the Company, together with National Amusements Inc.

and the MovieTickets.com Joint Venture, filed a lawsuit against AMC Entertainment

(“AMC”) and MovieTickets.com Inc.

(as nominal defendant) (Case No.

50 2011 CA 016684) in the Circuit Court of

the 15th Judicial Circuit in and for Palm Beach County, Florida relating to MovieTickets.com.

On February 8, 2012, MovieTickets.com,

joined the lawsuit against AMC and an amended complaint was filed.

MovieTickets.com is an online movie ticketing service

in which Hollywood Media, National Amusements, Inc.

and AMC each own a 26.2% equity interest.

The amended complaint

alleges that AMC has breached and continues to breach the MovieTickets.com Joint Venture Agreement, which obligates AMC to exclusively

provide its ticket inventory to MovieTickets.com, and has breached its contractual and common law duties of good faith, fair dealing,

and loyalty with respect to the MovieTickets.com Joint Venture and its joint venturers, Hollywood Media and National Amusements,

Inc., as a result of various actions by AMC.

The amended complaint contends that when AMC’s demands for greater control

and a larger share of MovieTickets.com were not met, AMC breached and continues to breach the MovieTickets.com Joint Venture Agreement,

which obligates AMC to exclusively provide its ticket inventory to MovieTickets.com.

The amended complaint further specifies breaches

by AMC of its contractual and common law duties of good faith, fair dealing, and loyalty and violations of Florida’s Deceptive

and Unfair Trade Practices Act.

Among other things, the plaintiffs allege in the amended complaint that AMC used its inside

position with MovieTickets.com and access to MovieTickets.com’s proprietary information in order to advance AMC’s

own goals in contravention of its duty of loyalty to the joint venture and to the detriment of MovieTickets.com.

Hollywood Media and

the other plaintiffs have asked for a jury trial and are seeking unspecified consequential damages and have reserved the right

to seek punitive damages.

Hollywood Media and the other plaintiffs also are seeking a declaratory judgment that

AMC is obligated to make available on MovieTickets.com’s website AMC’s ticket inventory for sale on an exclusive basis

and to honor its contractual and common law fiduciary duties of good faith and loyalty to the MovieTickets.com Joint Venture and

its joint venturers, Hollywood Media and National Amusements, Inc.

noted above, NetCo owns all rights to the “Tom Clancy’s Net Force” intellectual property in all media, including film,

television, and video games.

As part of the joint venture, NetCo has published more than a dozen books and had an ABC miniseries.

Tom Clancy passed away in 2013, his estate and business partners refused to cooperate in exploiting the intellectual property.

trying to amicably resolve the dispute, the Company initiated arbitration proceedings with the American Arbitration Association.

Company’s arbitration demand asserts claims for breach of the joint venture agreement and breach of fiduciary duty.

arise from C.P.

Group’s failure to make reasonable, good faith efforts to exploit the full array of media rights relating to Net

The Company’s goal is to maximize the total potential value of the NetCo intellectual property across video games, streaming,

digital media, merchandising and other ancillary markets.

The Company believes that the value of the intellectual property is significant.

arbitration evidentiary hearing concluded on October 20, 2022, and the arbitrator ordered the parties to submit post-hearing briefs.

Final briefs were filed in January 2023.

It is unknown as to how long the arbitrator will take to render his decision.

fund efforts to maximize the value of NetCo, NovelStem has secured non-recourse litigation funding.

Mine Safety Disclosures.

General Instruction G2]

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 3. Legal Proceedings