Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS.
From time to time, we may become involved in
various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties,
and an adverse result in these or other matters may arise from time to time that may harm our business. Except as set forth below, we
are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business,
financial condition or operating results.
On August 20, 2024, Matthew Atkinson, our
former Chief Executive Officer and a significant stockholder, filed a complaint against our company in the District Court of Douglas
County, Nebraska. In his complaint, he alleges that we failed to pay him compensation in the amount of $123,625.76, unreimbursed
expenses in the amount of $1,815.25, and accrued and unpaid vacation in the amount of $6,153.84, or $131,594.85 in the aggregate. He
alleges that we are obligated to pay him these amounts under an executive employment agreement between him and our company, and that
he had become entitled to these amounts before he resigned his employment in February 2024. Based on these allegations, Mr. Atkinson
asserts in his complaint causes of action for violation of the Nebraska Wage Payment and Collection Act, or the Act, breach of
contract, and promissory estoppel. His complaints asks for a judgment that: (a) awards him damages in amount to be proved at trial
but no less than $131,594.85, (b) assesses a penalty against our company pursuant to the Act in the amount of $263,189.70, and (c)
awards Mr. Atkinson an amount for his reasonable costs and attorney’s fees incurred in litigating this matter and pre- and
post-judgment interest.
ITEM 1A. RISK
FACTORS.
Not applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.