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On March 21, 2013, the Company and its subsidiary, Digital Focus, Inc. (DFI), filed a lawsuit in the Eighth Judicial District Court for Clark County, Nevada (the “Court”) against Dimension, Inc. and related parties in order to protect and resolve its rights as to certain intellectual property. In response to the Company’s complaint, Dimension filed a cross-complaint alleging ten causes of action, among them malicious prosecution, and declaratory relief. In recent years, however, the Company has completed development of new digital compression and scaling technologies that are unrelated to the Company’s original technology that is the subject of the lawsuit. The Company’s new technologies include new proprietary algorithms that are described at least in part in provisional patent applications filed by the Company in 2015.

As a result of such new product developments, the Company no longer saw the need to continue to spend valuable resources litigating over technology that was not in development by the Company. Accordingly, upon motion made by the Company and granted by the Court, the Company’s claims against the Defendants were voluntarily dismissed on January 21, 2016. On or about April 25, 2016, the Court granted in part TMMI’s motion for summary judgment on Dimension’s counterclaims and dismissed almost all of the counterclaims, leaving only the two abuse of process and declaratory relief claims. Ultimately, Dimension dismissed the abuse of process claim without prejudice. After a trial held in November of 2016, the Court entered judgment in Dimension’s favor and declaring that Dimension was the owner of the single certain PVS/SGI license in question. Following the trial, Dimension filed a motion for an award of attorney’s fees, which was denied by the court. Costs in the approximate amount of $54,000 were awarded to Dimension. Both parties appealed to the Nevada Supreme Court, and in December of 2018, the Nevada Supreme Court upheld both the declaratory judgment in favor of Dimension and in favor of TMMI, the denial of Dimension’s motion for attorney’s fees.

In July of 2019, Dimension filed a new case in the Court against the Company and certain of its current and former officers again alleging an abuse of process claim related to the original suit described above. In September of 2019, the Company moved to dismiss this new suit based on Nevada’s Anti-SLAPP statute as the matters have been settled by the court. The Company’s motion to dismiss anti-SLAPP was denied on the basis of a technical issue of Rec Judicata. The Company took an interlocutory appeal of that decision to the Nevada Supreme Court. At a settlement conference held in February of 2020, the parties reached an agreement in principle to settle the litigation and any and all claims between them. That proposed settlement did not reach an agreeable conclusion. TMMI’s appeal of the Rec Judicata issue in its Anti-SLAPP Motion was voluntarily withdrawn by TMMI to consolidate its resources for a final adjudication of the litigation. The court approved the withdrawal on October 19, 2020 and TMMI proceeded in the litigation preparing its counterclaim against Dimension, Inc. for damages in excess of $5,000,000.00. TMMI’s counter claim for $5,000,000 against Dimension, Inc. has now been filed and accepted by the Nevada State court.

For further information Court records can be accessed through the following link:

Eighth Judicial District Court Records Inquiry

District Civil/Criminal Records

Case Number# A-19-798443-C

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