Item 1. Legal Proceedings
Item
1. Legal Proceedings
We
are not currently involved in any material legal proceedings, other than as disclosed below. From time-to-time we are, and we anticipate
that we will be, involved in legal proceedings, claims, and litigation arising in the ordinary course of our business and otherwise.
The ultimate costs to resolve any such matters could have a material adverse effect on our financial statements. We could be forced to
incur material expenses with respect to these legal proceedings, and in the event that there is an outcome in any that is adverse to
us, our financial position and prospects could be harmed.
On
October 27, 2025, the Company received a grand jury subpoena from the U.S. Attorney’s Office in connection with an investigation
in the Southern District of New York. The subpoena calls for the production of documents relating to the Company’s initial public
offering. The Company has produced records in response to that grand jury subpoena. Subsequently, the Company received an additional
DOJ request for information to include documents and communications relating to four contracts the Company executed after its IPO. The
Company is complying with this additional request for information.
On
October 28, 2025, the Company learned that the SEC is conducting a related investigation pursuant to its authority. On March 10,
2026, the Company received a subpoena for documents from the SEC, which also calls for the production of documents and
communications related to the Company’s initial public offering and other items. The Company is aware that its former Chief
Executive Officer also received a SEC subpoena that seeks records and communications relating to these investigations.
The
Company is fully cooperating with both investigations and will comply with its obligations under the subpoenas. The Company cannot predict
the scope or timing of the investigations, the resolution or the outcome of the investigations, the costs or the potential impact on
the Company.
As of the reporting date, the investigations remain ongoing, no conclusions
have been reached, and no final determinations have been made.
Item
1A. Risk Factors
As
of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the risk factors disclosed in our Annual Report
on Form 10-K filed with the SEC on March 18, 2026.
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