Legal Proceedings
−Removed: From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.
−Removed: 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.
−Removed: As of the date of this report, we are not subject to any proceeding that is not in the ordinary course of business or that is material to the financial condition of our business.
+Added: From time to time, the Company is a party to various claims and legal proceedings that arise in the ordinary course of business.
+Added: Except as discussed below, the Company is not currently a party to any pending or threatened litigation, the outcome of which would be expected to have a material adverse effect on its financial condition, results of operations, or cash flows.
+Added: The Company discloses contingent liabilities even if the liability is not probable or estimable, or both, if there is a reasonable possibility that a material loss may have been incurred.
+Added: Employee Class Action
+Added: On July 24, 2024, a former employee (“Plaintiff”) filed a class action lawsuit against the Company and its subsidiary C Enterprises, Inc., in San Diego County Superior Court.
+Added: The case is before the Honorable Gregory W.
+Added: Pollack, and asserts allegations of California state law violations pertaining to:
+Added: (1) straight time wages;
+Added: (2) overtime wages;
+Added: (3) meal periods;
+Added: (4) rest periods;
+Added: (5) business expense reimbursement;
+Added: (6) timely payment of wages at termination;
+Added: (7) provision of accurate itemized wage statements;
+Added: and (8) California’s unfair competition law.
+Added: This action seeks damages on behalf of a putative class of non-exempt employees who worked for the Company in California at any time from July 24, 2020, through the present.
+Added: On July 23, 2024, Plaintiff provided notice of the alleged violations of law above to California’s Labor and Workforce Development Agency (“LWDA”) under the Private Attorneys General Act of 2004 (“PAGA”).
+Added: On or about October 18, 2024, Plaintiff filed her First Amended Complaint (“FAC”), which amended her class complaint to include a cause of action under PAGA, whereby Plaintiff seeks penalties on behalf of the State of California and other similarly situated employees for the period of August 14, 2023, through the present.
+Added: As of September 11, 2025, no class certification deadline or trial date has been set.
+Added: The parties attended private mediation on August 7, 2025.
+Added: The parties thereafter reached a settlement in principle, for which the parties are currently negotiating a long-form settlement agreement.
+Added: Any settlement will be subject to Court approval.
+Added: A case management conference is scheduled for December 19, 2025.
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.