Legal Proceedings
−Removed: On January 6, 2020, the Company’s former Chief Executive Officer, Scott Crane, filed suit in the U.S.
−Removed: District Court for the Eastern District of Texas alleging various claims in connection with the
−Removed: Company’s termination of his employment in July 2019.
−Removed: In general, the suit asserted that the Company terminated Mr.
−Removed: Crane for the purpose of depriving him of certain equity compensation that would otherwise have become due to him on October 15,
−Removed: The case proceeded to a jury trial, which resulted in a verdict in favor of Crane on his breach of contract claim.
−Removed: On February 9, 2022, the Court entered a $1.9 million judgment against the Company inclusive of attorney fees, court costs and
−Removed: pre-judgment interest.
−Removed: The Company has filed an appeal of the judgment to the Fifth Circuit Court of Appeals.
−Removed: There are three possibilities upon decision by the Fifth Circuit Court of Appeals:
−Removed: the judgment could be affirmed;
−Removed: the judgment could be
−Removed: reversed and the matter sent for a new trial;
−Removed: or, the judgment could be reversed and judgment entered in favor of the Company.
−Removed: Due to the range of possible decisions by the Fifth Circuit Court of Appeals, it is impossible to predict the ultimate
−Removed: outcome at this time.
−Removed: The Company is subject to other claims and legal actions in the ordinary course of its business.
−Removed: The Company believes that all such claims and actions currently pending against it are either
−Removed: adequately covered by insurance or would not have a material adverse effect on the Company’s annual results of operations, cash flows or financial condition if decided in a manner that is unfavorable to the Company.
+Added: The Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters
+Added: arising out of the normal course of business.
+Added: Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s annual results of operations or
+Added: financial condition if decided in a manner that is unfavorable to the Company.
Not required for a smaller reporting company.
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.