LEGAL PROCEEDINGS.
−Removed: From time to time, we may become involved in various
−Removed: lawsuits and legal proceedings which arise in the ordinary course of business.
−Removed: However, litigation is subject to inherent uncertainties,
−Removed: and an adverse result in these or other matters may arise from time to time that may harm our business.
−Removed: Except as set forth below, we
−Removed: are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial
−Removed: condition or operating results.
−Removed: On August 20, 2024, Matthew Atkinson, our former
−Removed: Chief Executive Officer and a significant stockholder, filed a complaint against our company in the District Court of Douglas County,
−Removed: In his complaint, he alleges that we failed to pay him compensation in the amount of $123,625.76, unreimbursed expenses in the
−Removed: amount of $1,815.25, and accrued and unpaid vacation in the amount of $6,153.84, or $131,594.85 in the aggregate.
−Removed: He alleges that we are
−Removed: obligated to pay him these amounts under an executive employment agreement between him and our company, and that he had become entitled
−Removed: to these amounts before he resigned his employment in February 2024.
−Removed: Based on these allegations, Mr.
−Removed: Atkinson asserts in his complaint
−Removed: causes of action for violation of the Nebraska Wage Payment and Collection Act, or the Act, breach of contract, and promissory estoppel.
−Removed: His complaints ask for a judgment that:
−Removed: (a) awards him damages in amount to be proved at trial but no less than $131,594.85, (b) assesses
−Removed: a penalty against our company pursuant to the Act in the amount of $263,189.70, and (c) awards Mr.
−Removed: Atkinson an amount for his reasonable
−Removed: costs and attorney’s fees incurred in litigating this matter and pre- and post-judgment interest.
−Removed: On November 25, 2024, Mr.
−Removed: filed an amended complaint to add our Chief Executive Officer, Clayton Adams, and Chief Financial Officer, David Enholm, as defendants.
+Added: time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business.
+Added: litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may
+Added: harm our business.
+Added: We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect
+Added: on our business, financial condition or operating results.
RISK FACTORS.
−Removed: Not applicable.
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.