|6 Months Ended
Jul. 31, 2022
Note 9. Legal Proceedings
The Company may be subject to legal proceedings and claims arising from contracts or other matters from time to time in the ordinary course of business. Management is not aware of any pending or threatened litigation where the ultimate disposition or resolution could have a material adverse effect on the Company’s financial position, results of operations or liquidity.
Lawsuit – District Court of Travis County, Texas, 353rd Judicial District
On February 9, 2022, a plaintiff filed a lawsuit against numerous parties, one of which included the Company in the caption. The complaint failed to include the Company in any claim made in the complaint. The Company’s verified denial was filed on March 17, 2022. The Company filed its motion to be dismissed from the case subsequent to its verified denial, and was summarily dismissed from the case on May 23, 2022. The Company filed its motion to the court for fees and costs compensated by the plaintiff. The plaintiff also included a subsidiary of the Company in its complaint - Vengar. The Company responded on behalf of Vengar with a motion to dismiss Vengar from the suit, with a corresponding request for attorney fees and costs.
Lawsuit - District Court of Clark County, Nevada; United States District Court for the District of Nevada
On June 1, 2022, plaintiff Apex Operations, LLC et. al. filed a lawsuit which included the Company as a defendant. On July 20, 2022, the Company filed a Notice of Removal to Federal Court, which was granted by the court. Currently, all further actions for the dispute will be brought to the United State District Court for the District of Nevada. On August 24, 2022, counsel for the plaintiff advised local counsel for the Company that the plaintiff will be voluntarily dismissing the Company.