What changed in this filing

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Item 3. Legal Proceedings

2026-05-14 compared with 2025-04-15 · 24 added, 28 removed, 2 unchanged (96% of the section changed)

LEGAL PROCEEDINGS.

We were involved as a plaintiff in a Complaint filed

in the SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SAN DIEGO NORTH COUNTY (the “Complaint”) on November

The Complaint alleges that former employees would place an order from a customer for purchase of product from OZOP with

funds the exact source of which is presently unknown.

OZOP alleges that next, the customer would sell that product to OZOP’s customers

at a price marked up from the price for which the customer purchased from OZOP – to the benefit of Defendants and to the detriment

of OZOP, their employer at the time.

The Complaint further alleges that the former employees falsely represented that the price the customer

was obtaining from other suppliers and therefore was willing to pay for OZOP product decreased, which allowed them to use the customer

to then sell additional product to OZOP’s customers at increasingly larger margins, thus further wrongfully enriching themselves

to the detriment of their employer, OZOP.

The lawsuit also alleges that the employees were also making false statements to Ozop’s

customers regarding the financial condition of Ozop and the lack of module inventory.

On April 4, 2024, the Company executed a Settlement

Agreement (the “Settlement”) with its former employees and Your Home Solutions Corp (“YHS”).

YHS and the former

employees were all defendants (the “Defendants”) in the Complaint.

Pursuant to the terms of the Settlement, the Defendants

paid the Company $1,125,000 during the year ended December 31, 2024.

In exchange, the Company agreed to release all Defendants from the

lawsuit and to deliver 11 containers of solar panels.

Upon the receipt of the $1,125,000 and the delivery of the 11 containers, and pursuant

to the Settlement, the Company recorded sales of $728,640, a credit of $125,000 to legal expense and for the year ended December 31, 2024,

recorded a gain on litigation settlement of $271,360.

Other than the above, we know of no legal proceedings

to which we are a party or to which any of our property is the subject, which are pending, threatened or contemplated or any unsatisfied

judgments against the Company.

were involved as a plaintiff in a Complaint filed in the SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF SAN DIEGO NORTH

COUNTY (the “Complaint”) on November 14, 2022 .

The Complaint alleges that former employees would place an order

from a customer for purchase of product from OZOP with funds the exact source of which is presently unknown.

OZOP alleges that next,

the customer would sell that product to OZOP’s customers at a price marked up from the price for which the customer purchased from

OZOP – to the benefit of Defendants and to the detriment of OZOP, their employer at the time.

The Complaint further alleges that

the former employees falsely represented that the price the customer was obtaining from other suppliers and therefore was willing to

pay for OZOP product decreased, which allowed them to use the customer to then sell additional product to OZOP’s customers at increasingly

larger margins, thus further wrongfully enriching themselves to the detriment of their employer, OZOP.

The lawsuit also alleges that

the employees were also making false statements to Ozop’s customers regarding the financial condition of Ozop and the lack of module

April 4, 2024, the Company executed a Settlement Agreement (the “Settlement”) with its former employees and Your Home Solutions

Corp (“YHS”).

YHS and the former employees were all defendants (the “Defendants”) in the Complaint.

to the terms of the Settlement, the Defendants paid the Company $1,125,000 during the year ended December 31, 2024.

In exchange, the

Company agreed to release all Defendants from the lawsuit and to deliver 11 containers of solar panels.

Upon the receipt of the $1,125,000

and the delivery of the 11 containers, and pursuant to the Settlement, the Company recorded sales of $728,640, a credit of $125,000 to

legal expense and for the year ended December 31, 2024, recorded a gain on litigation settlement of $271,360.

than the above, we know of no legal proceedings to which we are a party or to which any of our property is the subject, which are pending,

threatened or contemplated or any unsatisfied judgments against the Company.

MINE SAFETY DISCLOSURES.

Not applicable.

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