Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS
On
September 11, 2020, a Complaint was filed against the Company’s SMCL subsidiary and various staffing agencies used by SMCL in a
Superior Court of San Bernadino County. The complaint alleges an employee of SMCL committed employment practice violations against a
former temporary employee not employed by SMCL. Management has investigated the allegation and has engaged with an employment attorney
to defend the lawsuit. Management does not believe the claims have merit and does not believe the lawsuit will have a material adverse
effect on our financial results.
Management
is not aware of any other legal proceedings other than matters that arise in the ordinary course of business.
ITEM
1A. RISK FACTORS
Not
applicable for smaller reporting companies
ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None
ITEM
3. DEFAULTS UPON SENIOR SECURITIES
We
are not currently in default upon any of our senior securities.
ITEM
4. MINE SAFETY DISCLOSURES
None.
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