The Company reserves for contingent liabilities based on ASC 450, Contingencies, when it determines that a liability is probable and reasonably estimable. From time to time, the Company may become involved in litigation relating to claims arising in the ordinary course of the business; however, unless otherwise noted, there are no claims or actions pending or threatened against the Company that, if adversely determined, would in the Company's management's judgment have a material adverse effect on the Company.

Former Employee Matters

On December 28, 2022, the Company’s former Chief Marketing Officer (the “Former CMO”) filed a complaint (the “Original Complaint”) in the United States District Court for the District of Maryland, alleging that his termination constituted race and age discrimination and that the Company retaliated against him. The Former CMO subsequently voluntarily dismissed his age discrimination claims. In July 2026, following a jury trial on the race discrimination and retaliation claims, the jury returned a unanimous verdict in favor of the Company. The court subsequently entered judgment in favor of the Company. The period for post-trial motions or an appeal has not yet expired.