LEGAL PROCEEDINGS
−Removed: We are currently not a party, nor is our property subject, to any material pending legal proceedings.
From time to time, we may be subject to various claims, lawsuits and other legal and administrative proceedings that may arise in the ordinary course of business.
−Removed: Some of these claims, lawsuits and other proceedings may involve highly complex issues that are subject to substantial uncertainties, and could result in damages, fines, penalties, non-monetary sanctions or relief.
−Removed: We recognize provisions for claims or pending litigation when we determine that an unfavorable outcome is probable and the amount of loss can be reasonably estimated.
−Removed: Due to the inherent uncertain nature of litigation, the ultimate outcome or actual cost of settlement may materially vary from estimates.
−Removed: As of September 30, 2025, we did not recognize any provisions for legal proceedings.
+Added: Some of these claims, lawsuits and proceedings may involve highly complex issues that are subject to substantial uncertainties, and could result in damages, fines, penalties, non-monetary sanctions or relief.
+Added: Other than as described below, we are not currently a party to any known claim, lawsuit or proceeding.
+Added: On February 27, 2026, Five Star Clean Fuels filed an original petition against the Company seeking a declaratory judgment that a letter agreement between a subsidiary of the Company and a predecessor of Five Star Clean Fuels constituted a binding contract that effectuates a grant to Five Star Clean Fuels of certain non-exclusive rights to utilize the STG+® technology.
+Added: The petition primarily seeks non-monetary relief, other than court costs and attorney fees.
+Added: The Company intends to defend its position against the claim.
+Added: At this time, the Company is unable to reasonably estimate a possible financial loss or range of financial loss, if any, that may be incurred to resolve this matter.
+Added: See Note 7 in the accompanying unaudited condensed consolidated financial statements for further information.
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.