Form 8-K Shows CVD Entertainment Corp. Receives Arbitration Demand and Complaint

On January 19, 2015, CVD Equipment Corporation (the “Company”) received an Arbitration Demand and Complaint which was filed with the American Arbitration Association by Development Specialists, Inc., an Illinois corporation (“DSI”), solely in its capacity as an assignee for the benefit of creditors of CM Manufacturing, Inc. f/k/a Stion Corporation (“Stion”), a Delaware corporation, (collectively the “Plaintiff”). In its compliant, the Plaintiff claims, among other things, that the Company breached its agreement with Stion by failing to design, engineer, manufacture and timely deliver a certain custom furnace used in the manufacture of solar panels. The Plaintiff also asserts claims relating to breach of warranty, conversion, misappropriation of trade secrets and a declaration that DSI is not liable under the Company's proof of claim filed against Stion in connection with Stion's October 2013 assignment for the benefit of its creditors in favor of DSI or Stion's agreements with Company. Plaintiff seeks monetary damages of approximately $6.9 million plus interest and attorney's fees, and certain injunctive relief and other unspecified money damages. The Company believes that these claims have no merit and intends to vigorously defend its interests in this matter.