Nixxy, Inc.

From time to time, the Company is involved in legal proceedings arising in the ordinary course of business. The Company evaluates all claims on a case-by-case basis and establishes accruals when a loss is probable and reasonably estimable. Except as described below, the Company is not currently a party to any material legal proceedings.

BKR Strategy Group Matter

The Company initiated litigation against BKR Strategy Group related to unpaid invoices and a $0.5 million promissory note executed on November 30, 2021. On June 21, 2022, tendered judgment in favor of the Company in the amount of $0.5 million, plus 12% interest. The Company dismissed a related secondary action. No additional accrual has been recorded in connection with this matter.

Pipl, Inc.

On September 6, 2023, the Company was served with a civil lawsuit filed by Pipl, Inc. in the Superior Court of Connecticut alleging non-payment of services rendered between January 3, 2021, and December 7, 2022 in an amount exceeding $267 thousand plus interest and costs. The Company has filed a counterclaim. The matter remains pending. At this time, the Company cannot reasonably estimate the outcome.

Creditors Adjustment Bureau, Inc.

On March 13, 2024, Creditors Adjustment Bureau, Inc. filed a complaint in the Superior Court of California alleging amounts due under assigned contracts totaling approximately $214 thousand plus interest and fees. The Company is defending the action. The matter remains in preliminary stages, and the Company cannot estimate the potential loss, if any.

HireTeammate, Inc. (d/b/a hireEZ)

On November 20, 2024, Recruiter.com Inc. was named as a defendant in a lawsuit filed in the Supreme Court of New York alleging breach of contract related to unpaid platform management services totaling approximately $79 thousand plus interest and costs. The matter is pending.

Regal Nutra, LLC and Dauntless Media, LLC Arbitration

In 2025, Regal Nutra, LLC and Dauntless Media, LLC initiated arbitration proceedings through JAMS in New York against Nixxy, Inc. and others, alleging breach of contract and fraud related to a series of business arrangements. The Company has objected to jurisdiction, asserting it was not a party to the agreements at issue, has no relationship with the claimants, and did not agree to arbitration. The arbitration remains pending. The Company cannot estimate potential loss, if any.