Item 1. Legal Proceedings
Item 1. Legal Proceedings.
In April 2024, an ex-shareholder of Otto Pvt Ltd.,
an indirect wholly owned Bahamian subsidiary of SSi(“ Otto ”) commenced litigation in the Bahamas, seeking legal confirmation
that it holds 9,000 shares (approximately a 9% interest) in Otto. The litigation, in which Otto is one of the defendants, relates to a
purported transaction in 2021, at which time Dr. Sudhir Srivastava, the Company’s Chairman, Chief Executive Officer and principal
shareholder, was the sole shareholder of Otto. The plaintiff in the litigation alleges that at that time, it acquired the 9,000 Otto shares
from Dr. Srivastava. However, as the plaintiff failed to pay the agreed upon consideration for the shares, in July 2022, the shareholding
was cancelled. Dr. Srivastava along with Otto, has recently filed an action in the Bahamas to confirm the cancellation of the shares and
reconfirm their ownership and both actions are pending in the Bahamian courts. The Bahamian court has issued an interim order to maintain
the status quo as it stands today with respect to the 9,000 Otto shares at the center of the dispute, as well as Otto’s shareholdings
in Sudhir Srivastava Innovations Pvt Ltd. (“ SSI-India ”), our Indian operating subsidiary and SSI-India’s assets
during the pendency of the litigation. Based on legal opinions obtained from counsel, the Company believes that there will be a favorable
outcome in this case.
Notwithstanding the foregoing, Dr. Srivastava
and the Company have entered into an Indemnification Agreement on October 12, 2024, pursuant to which Dr. Srivastava has agreed to fully
indemnify the Company for any claims, damages and costs (including legal fees) which it incurs in connection with this litigation or in
relation to any of his ventures prior to consummation of the Company’s acquisition by merger of CardioVentures, Inc. in April 2023.
In addition to the foregoing and other matters which have been reported
in the Company’s previous periodic Exchange Act filings, from time to time, the Company may become involved in various lawsuits
and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse
result in any such matter may harm the Company’s business.
Item 1A. Risk Factors.
Not Applicable.
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