{"url_path":"/sec/aerg/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 LEGAL PROCEEDINGS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-14","source_url":"https://www.sec.gov/Archives/edgar/data/879911/0001213900-26-056008-index.html","accession_number":"0001213900-26-056008","cik":"0000879911","ticker":"AERG","issuer_name":"APPLIED ENERGETICS, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/879911/0001213900-26-056008-index.html","primary_entity_key":"0000879911","primary_entity_name":"APPLIED ENERGETICS, INC."},"word_count":289,"has_tables":true,"body_markdown":"** **\n\n**ITEM 1. LEGAL PROCEEDINGS**\n\n** **\n\nOn January 15, 2021, the company filed a complaint in the United States\nDistrict Court, Southern District of New York, against Gusrae, Kaplan & Nusbaum (GKN) and Ryan Whalen for malpractice and breach of\nNew York Rules of Professional Conduct by both parties as former counsel to the company. On May 28, 2021, GKN and Mr. Whalen filed a motion\nto dismiss the complaint. On June 25, 2021, the company filed an opposition to the motion. On July 13, 2021, GKN and Mr. Whalen filed\ntheir reply brief. On March 30, 2022, United States Magistrate Judge Debra Freeman signed an order denying the motion of GKN and Mr. Whalen\nto dismiss the company’s claim for malpractice and for rescission of the shares-for-fees agreement under which GKN and Whalen received\n1,242,710 shares of the company’s common stock. The motion was partially granted as to the separate claim for violation of NYRPC\n1.7 and 1.8 because the court found that it was duplicative of the malpractice claim. Motions for summary judgment in the case are fully\nbriefed, and the judge held oral arguments on August 7, 2025. On September 17, 2025, the court issued an Opinion and Order denying both\nparties’ motions for Summary Judgment. The parties participated in a mediation on April 23, 2026. The pre-trial conference, originally\nset for October, was extended to May 20, 2026, to accommodate the mediation. No date has been set for trial.\n\n \n\nAs with any litigation, the\ncompany cannot predict the outcome with certainty, but the company expects to provide further updates on the status of the litigation\nas circumstances warrant.\n\n \n\nThe company may, from time\nto time, be involved in legal proceedings arising from the normal course of business."}