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Latest 10-Q filed 11/19/2024 · Compared against 8/19/2024
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ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on April 15, 2024 except as described below.
An auction of the assets of our hemp division was conducted under Article 9 of the Uniform Commercial Code following allegations by certain affiliated creditors that we were in breach of our obligations under certain notes and a forbearance agreement. See Item 1. Legal Proceedings.
In June 2024 our Board of Directors concluded that as a result of the impact of the auction on the hemp division, it is no longer feasible to continue our hemp operations. As a result, we will no longer pursue the development, manufacture or sale of hemp derived products.
Historically, revenues from our hemp division supported, in part, our durable medical equipment business conducted through Duramed. Due to the elimination of support from the hemp division, Duramed is operating with reduced staff which has adversely impacted revenues. Going forward, our primary focus will be on protecting and commercializing the cannabis patents recently acquired by Nascent; however, the discontinuance of our hemp division and its impact on the Duramed division increases the risk that we will not be able to continue as a going concern.