Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS
On April 9, 2025, we filed a Complaint for Declaratory
Judgment against Kiss Nail Products, Inc. (“Kiss Nail Products”) in the United States District Court for the Eastern District
of Pennsylvania ( NexGel, Inc. v. Kiss Nails Products, Inc. ). The dispute relates a takedown notice sent by Kiss Nail Products to
Amazon.com claiming that our ready-to-use eyelash extension products sold under our Silly George brand violate a United States patent
owned by Kiss Nail Products. Based on advice from our patent legal counsel, we believe the patent owned by Kiss Nails Products is invalid
and expect to prevail in our action for declaratory judgment to declare the patent invalid. However, if we are unable to prevail in our
action, certain of our ready-to-use eyelash extension products may be removed from Amazon.com, which would result in a material adverse
effect to our business and financial results.
From time to time, we may become involved in various
lawsuits and legal proceedings which arise in the ordinary course of business. 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 business. Except as described above, we
are currently not aware of any such legal proceedings or claims.
There are no material proceedings in which any of
our directors, officers or affiliates or any registered or beneficial shareholder of more than 5% of our common stock is an adverse party
or has a material interest adverse to our interest
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.