Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS
The
Company is currently pursuing legal claims against two former employees who resigned to launch a competing business, RedLPR (“RedLPR
case”). The claims include trade secret misappropriation and tortious interference. Related to the RedLPR case, the Company
recently was named a defendant in a Mississippi state lawsuit brought by Riverland Technologies. Riverland is also a party to
the previously mentioned claims. And finally, the company was named defendant in a case involving a former employee who claims
he is owed approximately $60 thousand in unpaid commissions. The company’s position is that the former employee’s
claims have no apparent factual basis and appear to be designed to force a quick “nuisance value” settlement.
ITEM
1A. RISK FACTORS
Not
applicable.
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM
3. DEFAULTS UPON SENIOR SECURITIES.
Not
applicable.
ITEM
4. MINE SAFETY DISCLOSURES
Not
applicable.
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