{"url_path":"/sec/gwti/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Legal Proceedings.**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/1572386/0001493152-26-024621-index.html","accession_number":"0001493152-26-024621","cik":"0001572386","ticker":"GWTI","issuer_name":"GREENWAY TECHNOLOGIES, INC. & SUBSIDIARIES","edgar_url":"https://www.sec.gov/Archives/edgar/data/1572386/0001493152-26-024621-index.html","primary_entity_key":"0001572386","primary_entity_name":"GREENWAY TECHNOLOGIES, INC. & SUBSIDIARIES"},"word_count":974,"has_tables":true,"body_markdown":"**Item 1. Legal Proceedings.**\n\n \n\nOn\nSeptember 7, 2021, the Company was served with a demand for mediation and potential arbitration by Gregory Sanders, a previous employee\nof the Company. The demand claims Mr. Sanders had an employment agreement with the Company entitling him to certain compensation payments\nunder the contract. No conclusion was made during mediation which occurred in the fourth quarter of 2021. On October 25, 2023, there\nwas a hearing on Plaintiff’s motion for summary judgement. Plaintiff asserted 3 motions, all of which were denied by the court,\nas ordered on November 1, 2023. Plaintiff withdrew his action against the Company on January 11, 2024 and the court so ordered on the\nsame date.\n\n \n\nOn\nNovember 8, 2023, the Company was served with a demand for payments under various agreements with the plaintiffs. The Plaintiffs are\nRic Halden, Randy Moseley, Tunstall Canyon Group, LLC (“Tunstall Canyon”) and Chisos Equity Consultants, LLC (“Chisos”).\nRic Halden and Randy Moseley were founders of the Company and served as officers and directors of the Company until 2017, when each of\nthem resigned all positions with the Company. The Company believes that Tunstall Canyon and Chisos are majority-owned by Ric Halden.\nAs of June 30, 2025, the Company had accrued liabilities in the amount of $1,672,074 to Ric Halden, Randy Moseley and Tunstall Canyon,\nwhich are all included in the liabilities reflected on the accompanying consolidated balance sheet. The court set an original trial date\nfor November 25, 2024. The Plaintiffs and the Company petitioned the Court for a new trial date, which was granted and a new trial date\nwas set for May 26, 2025. On March 28, 2025, Plaintiffs and the Company again petitioned the Court for a new trial date. The request\nwas granted and the trial was reset set for September 15, 2025. Trial was subsequently reset to December 1, 2025.\n\n \n\nThe\nPlaintiffs, Ric Halden, Randy Moseley, Tunstall Canyon and Chisos, filed a Traditional Motion for Partial Summary Judgement , or in the\nAlternative, Traditional Motion for Partial Summary Judgement as to Liability Only which was originally set to be set to be heard by\nthe Court on March 26, 2025. Plaintiffs and the Company agreed to reset the hearing to at least 45 days after March 26, 2025. A new hearing\ndate was set for July 9, 2025.\n\n \n\nThe\nPlaintiffs, Ric Halden, Randy Moseley, Tunstall Canyon and Chisos, filed a Traditional Motion for Partial Summary Judgement, or in the\nAlternative, Traditional Motion for Partial Summary Judgement as to Liability Only which was originally set to be heard by the Court\non March 26, 2025. Plaintiffs and the Company agreed to reset the hearing to at least 45 days after March 26, 2025. On April 29, 2025,\nTunstall Canyon, LLC filed a second traditional motion for partial summary judgement. The hearing was set for July 19, 2025. The Company\ndid not challenge the motion and on July 9, 2025, the court granted a summary judgement in the amount of $335,234 plus prejudgement interest\nat a rate of 18% per year from January 1, 2025, until the date of a Final Judgement in the case. The amount payable to Tunstall Canyon\nis fully recorded as a liability by the Company.\n\n \n\nOn\nOctober 30, 2025, this dispute was fully resolved on the following terms: (1) Greenway to issue Ric Halden 2,000,000 shares of restricted\nstock in Greenway by November 6, 2025 (representing a value of $80,000 at a price of $.04 per share); (2) Greenway to make a payment\nto Plaintiffs in the amount of $50,000 by February 27, 2026; (3) Greenway to pay $900,000 in twelve (12) monthly installments beginning\non August 1, 2026. Greenway’s payment obligations will be secured by an Agreed Judgment in the amount of $1,250,000 that will held\nin trust by Plaintiff’s counsel and only filed with a court in the event of a non-cured default by Greenway. In exchange for these\nobligations, the lawsuit will be dismissed and Plaintiffs will execute a release of all claims against Greenway that could have been\nbrought in the litigation. This includes the withdrawal of the summary judgement granted to Tunstall Canyon by the court on July 9, 2025\nin the amount of $335,234 plus prejudgement interest at a rate of 18% per year from January 1, 2025. Further, Plaintiff, Randy Moseley,\nrelinquished his claims against the Company. The Company reflected a liability to Randy Moseley in the amount of $714,663 as of September\n30, 2025.\n\n \n\nOn\nDecember 9, 2025, the court approved an AGREED ORDER OF DISMISSAL WITH PREJUDICE.\n\n \n\nThe\nCompany recognized a gain of $648,783 related to the legal settlement.\n\n \n\nThe\nCompany defaulted on its obligation to pay $50,000 by February 27,2026. The Plaintiff hold an Agreed Judgement in the amount of $1,250,000,\nwhich can be exercised at any time. At the date of this filing, the Plaintiff has not exercised the rights under the Agreed Judgement.\n\n \n\nOn May 4, 2026, the Company received a notice that the plaintiffs stating the if the Company does not cure the default\nwithin 15 days, it will be in formal breach of the settlement agreement. It also states that the Plaintiffs intend to exercise it rights\nunder the Agreed Judgement. The Company is in negotiations with the Plaintiffs to settle this matter without the Plaintiffs exercising\ntheir rights under the Agreed Judgement. The outcome of these negotiations is not certain. In the event the Plaintiff exercises its rights\nunder the agreed judgement, the liability to the Planififfs would increase from $950,000 to $1,250,000\n\n \n\nThe\nCompany is subject to litigation, claims, investigations, and audits arising from time to time in the ordinary course of business. Although\nlegal proceedings are inherently unpredictable, the Company believes that it has valid defenses with respect to any matters currently\npending against the Company and intends to defend itself vigorously"}