8 unchanged sentences
The Company has not accrued for any such contingent liabilities, but such contingent liabilities could be realized which could have a material adverse impact on the Company’s financial condition.
+Added: On January 2, 2026, a stockholder derivative complaint was filed by Joel Friedman in the U.S.
+Added: Federal District Court, Central District of California on behalf of the Company and against the members of the Company’s Board of Directors and certain of the Company’s executive officers.
+Added: The complaint alleges that certain of the Company’s officers and the board of directors substantially damaged the Company by filing false and misleading statements that omitted material adverse facts regarding Brian Kahn's involvement in the Prophecy fraud and the regulatory scrutiny that the Company would face because of its entanglements with Kahn and Franchise Group.
+Added: Claims include breach of fiduciary duties, waste of corporate assets, and unjust enrichment.
+Added: The Company believes that these claims are meritless and intends to defend this action.
On July 11, 2025, the Company’s subsidiary, B.
19 unchanged sentences
On November 22, 2024, each of the Company and Mr.
−Removed: Riley received an additional SEC subpoena requesting the production of certain additional documents and information relating to Franchise Group, Inc.
+Added: Riley received an
+Added: additional SEC subpoena requesting the production of certain additional documents and information relating to Franchise Group, Inc.
(including its holding company, Freedom VCM Holdings, LLC) as well as Mr.
4 unchanged sentences
Riley, had no involvement with, or knowledge of, any alleged misconduct concerning Mr.
−Removed: or any of his affiliates.
+Added: Kahn or any of his affiliates.
The receipt of subpoenas is not an indication that the SEC or its staff has determined that any violations of law have occurred.
16 unchanged sentences
The amended complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
+Added: On December 12, 2025, the District Court granted in part and denied in part the Company’s motion to dismiss the consolidated amended complaint.
+Added: The matter will now move into discovery and class certification proceedings.
The Company cannot estimate the amount of potential liability, if any, that could arise from these matters and believes these claims are meritless and intends to defend these actions.
8 unchanged sentences
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.