Pegasus Capital Advisors, L.P.

Allegations: LIGHTING SCIENCE GROUP CORPORATION ("LSG"), A PORTFOLIO COMPANY OF INVESTMENT FUNDS MANAGED BY REGISTRANT'S AFFILIATES, AND THE REGISTRANT, ALONG WITH OTHER PARTIES, ARE DEFENDANTS IN A LAWSUIT STYLED GEVERAN INVESTMENTS LIMITED V. LIGHTING SCIENCE GROUP CORP., ET AL., IN WHICH THE PLAINTIFF, GEVERAN INVESTMENT LIMITED ("GEVERAN") IS SEEKING $25 MILLION IN RESCISSIONARY DAMAGES, PLUS ATTORNEYS' FEES AND COSTS AND PRE-JUDGEMENT INTEREST, WITH RESPECT TO GEVERAN'S $25 MILLION PURCHASE OF COMMON STOCK OF LSG IN MAY 2011. Status: Final Summary: ON JUNE 22, 2012, GEVERAN INVESTMENTS LIMITED ("GEVERAN"), ONE OF THE STOCKHOLDERS IN LIGHTING SCIENCE GROUP CORPORATION ("LSG"), FILED A LAWSUIT AGAINST THE REGISTRANT, LSG AND SEVERAL OTHER DEFENDANTS SEEKING RESCISSION OF ITS $25.0 MILLION INVESTMENT IN LSG, RECOVERY OF ATTORNEYS' FEES AND COURT COSTS FOR ALLEGED VIOLATIONS OF THE FLORIDA SECURITIES LAWS RELATING TO ALLEGED UNTRUE STATEMENTS OF FACT PURPORTEDLY MADE BY IN LSG'S OFFERING MATERIALS IN CONNECTION WITH GEVERAN'S INVESTMENT IN LSG ON MAY 10, 2011. GEVERAN ALTERNATIVELY SEEKS UNSPECIFIED MONEY DAMAGES, AS WELL AS RECOVERY OF COURT COSTS, FOR ALLEGED COMMON LAW NEGLIGENT MISREPRESENTATION IN CONNECTION WITH GEVERAN'S PURCHASE OF LSG STOCK. ON AUGUST 28, 2014, THE COURT PRESIDING OVER THE LAWSUIT GRANTED GEVERAN'S MOTION FOR PARTIAL SUMMARY JUDGMENT WITH RESPECT TO ITS FIRST CAUSE OF ACTION FOR VIOLATION OF THE FLORIDA SECURITIES LAWS. ON NOVEMBER 25, 2015, THE COURT ENTERED JUDGMENT AGAINST THE DEFENDANTS, INCLUDING REGISTRANT, ON A JOINT AND SEVERAL BASIS, IN THE AMOUNT OF APPROXIMATELY $40.2 MILLION. ON DECEMBER 4, 2015, REGISTRANT, ALONG WITH THE OTHER DEFENDANTS, FILED A NOTICE OF APPEAL TO THE FLORIDA FIFTH DISTRICT COURT OF APPEAL AND POSTED A BOND SECURING THE JUDGMENT IN THE AMOUNT OF APPROXIMATELY $20.1 MILLION. DEFENDANT J.P. MORGAN SECURITIES, LLC ("J.P. MORGAN") ALSO POSTED A SEPARATE BOND IN THE AMOUNT OF APPROXIMATELY $20.1 MILLION, RESULTING IN TOTAL BONDING OF APPROXIMATELY $40.2 MILLION. ON JUNE 9, 2017, THE APPEALS COURT REVERSED THE TRIAL COURT'S GRANT OF SUMMARY JUDGMENT AGAINST THE REGISTRANT AND THE OTHER DEFENDANTS, AND THE CASE WAS REMANDED TO THE TRIAL COURT FOR FURTHER PROCEEDINGS. ON AUGUST 29, 2017, THE APPELLATE COURT GRANTED AN ORDER DISCHARGING THE APPEALS BONDS. THE TRIAL COURT HELD A CASE STATUS CONFERENCE ON DECEMBER 14, 2017, AT WHICH TIME THE TRIAL COURT ORDERED THE PARTIES TO PARTICIPATE IN A MEDIATION, WHICH WAS HELD ON FEBRUARY 27-28, 2018. TRIAL WAS SCHEDULED TO BEGIN ON AUGUST 27, 2018; HOWEVER, THE COURT'S BUSINESS DIVISION WAS DE-FUNDED EFFECTIVE JULY 1, 2018. AS A RESULT, ON JULY 1, 2018, THE CASE WAS REASSIGNED TO A NEW JUDGE IN A NEW DIVISION. THE NEW JUDGE HELD A CASE STATUS CONFERENCE ON OCTOBER 1, 2018, AT WHICH TIME THE COURT SCHEDULED TRIAL TO COMMENCE MAY 27, 2019. THE CASE WAS SETTLED ON APRIL 22, 2019 WITH NO ADMISSION OF WRONGDOING BY ANY PARTY.