Vendor Contract Problem - software license audit threat

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.
Illustrative scenario prepared by my practice.
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
Hypothetical question

Has anyone dealt with something like this? I'm not sure what my options are.

software license audit threat. I've been dealing with this for about 7 weeks now and the situation isn't improving.

The contract was signed 13 months ago. I have a copy of the original agreement. The total amount in dispute is approximately $118,000.

Am I overthinking this or is this a real legal issue worth pursuing?

Illustrative response

Have you tried reaching out to your state's labor board? They sometimes have free resources or mediation services.