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 Bernardino County. The complaint alleges an employee of SMCL committed employment practice violations against a
former temporary employee not employed by us. Management investigated the allegation and engaged an employment attorney to defend the
lawsuit. The complaint sought damages estimated to be no less than $500,000 in money judgement. The
case was referred to arbitration and a settlement agreement was negotiated in favor of the plaintiff and settled for $30,000 and the
case was dismissed on December 13, 2022.
As
of this filing, management is not aware of any legal proceedings other than matters that arise in the ordinary course of business.
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