Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS
On June 22, 2021, Thomas Seifert’s
employment as the Company’s Chief Financial Officer was terminated for cause. Mr. Seifert asserts that the termination was not for
cause and that he is owed all compensation payable under his employment agreement executed in June 2021. The Company’s position
is that Mr. Seifert is not owed any additional consideration or compensation relating to his prior service with the Company, or arising
under any employment agreement. The Company believes it has adequate defenses to any such claims. The Company has determined to initiate
litigation against Mr. Seifert asserting a number of claims including, but not limited to, rescission of the employment agreement, fraud
in the inducement in connection with the execution of the employment agreement, and breach of the fiduciary duties of good faith and loyalty.
The Company does not expect to seek substantial monetary relief in the litigation.
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