What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2022-03-18 compared with 2021-03-29 · 45 added, 30 removed, 5 unchanged (94% of the section changed)

LEGAL PROCEEDINGS

On August 7, 2018, we commenced an action

against North Empire LLC, or North Empire, in the Supreme Court of the State of New York, County of New York for breach of a Securities

Purchase Agreement or Agreement in which we are seeking damages in an amount to be determined at trial, but in no event less than

On August 2, 2018, North Empire filed a Summons with Notice against us, also in the same Court, in which they allege

damages in an amount of $11.4 million arising from an alleged breach of the Agreement.

August 7, 2018, we commenced an action against North Empire LLC, or North Empire, in the Supreme Court of the State of New York, County

of New York for breach of a Securities Purchase Agreement or Agreement in which we are seeking damages in an amount to be determined

at trial, but in no event less than $616,000.

On August 2, 2018, North Empire filed a Summons with Notice against us, also in the same

Court, in which they allege damages in an amount of $11.4 million arising from an alleged breach of the Agreement.

On September 6, 2018,

North Empire filed a Notice of Discontinuance of the action it had filed on August 2, 2018.

On September 27, 2018, North Empire filed

a Notice of Discontinuance of the action it had filed on August 2, 2018.

On September 27, 2018, North Empire filed an answer and

asserted counterclaims in the action commenced by us against them, alleging that we failed to deliver stock certificates to North

Empire causing damage to North Empire in the amount of $10,958,589.

North Empire also filed a third-party complaint against our

CEO and now former Chairman of the Board asserting similar claims against them in their individual capacities.

an answer and asserted counterclaims in the action commenced by us against them, alleging that we failed to deliver stock certificates

to North Empire causing damage to North Empire in the amount of $10,958,589.

North Empire also filed a third-party complaint against

our CEO and now former Chairman of the Board asserting similar claims against them in their individual capacities.

On October 17, 2018,

2018, we filed a reply to North Empire’s counterclaims.

On November 15, 2018, our CEO and now former Chairman of the Board

filed a motion to dismiss North Empire’s third-party complaint.

On January 6, 2020, the Court granted the motion and dismissed

the third-party complaint.

we filed a reply to North Empire’s counterclaims.

On November 15, 2018, our CEO and now former Chairman of the Board filed a motion

to dismiss North Empire’s third-party complaint.

On January 6, 2020, the Court granted the motion and dismissed the third-party

Discovery has been completed and both parties have filed motions for summary judgment in connection with the claims and counterclaims.

to vigorously defend any claims made by North Empire.

In addition to the

above, from time to time, we may become in involved in lawsuits as well as subject to various legal proceedings, claims, threats

of litigation, and investigations in the ordinary course of business.

While certain matters to which we are a party may specify

the damages claimed, such claims may not represent reasonably possible losses.

Given the inherent uncertainties of litigation,

the ultimate outcome of these matters cannot be predicted at this time, nor can the amount of possible loss or range of loss,

if any, be reasonably estimated.

An unfavorable outcome

on any litigation matters could require us to pay substantial damages or could prevent us from selling certain of our products.

As a result, a settlement of, or an unfavorable outcome on, any of the matters referenced above or other litigation matters could

have a material adverse effect on our business, results of operations and financial condition.

On December 30, 2021, the Court denied both My Size and North Empire’s motions for summary judgment, arguing there were factual

issues to be determined at trial.

On January 26, 2022, the Company filed a notice of appeal of the summary judgment decision.

must be fully perfected and filed by July 26, 2022.

On February 3, 2022, the Company filed a motion to reargue the Court’s decision

denying the Company’s motion for summary judgment.

North Empire will file its opposition papers on or before March 31, 2022, and

the Company will file reply papers on April 29, 2022.

The return date on the motion to reargue is scheduled for May 2, 2022.

We intend to vigorously defend any claims made by North Empire.

Venture Capital Ltd

5, 2021, we were served with a legal complaint filed by Fidelity Venture Capital Ltd.

and Dror Atzmon in the Magistrate’s

Court in Tel Aviv for a monetary award in an amount of NIS 1,436,679 (approximately $450,000) and a declaratory relief.

The plaintiffs

allege that we breached our contractual obligations to pay them for services allegedly rendered to the us by the plaintiffs under a certain

consulting agreement dated July 2, 2014, in an amount of NIS 819,000 (approximately $256,000).

Additionally, the plaintiffs allege that

the we should compensate them for losses allegedly incurred by them following their investment in the sour shares issued under a certain

private offering.

In the alternative, the plaintiffs move that the court will declare the investment agreement void with full restitution

of plaintiffs’ original investment in an amount of NIS 1,329,650 (approximately $415,000).

We filed our statement of defense on

October 25, 2021.

The first preliminary court hearing of the case is scheduled for January 23, 2022.

The first court preliminary hearing

was held on March 1, 2022.

Following the first preliminary hearing and the Court’s comments and recommendation, the Plaintiffs

filed a motion to strike out the claim without prejudice.

On March 8, 2022 the Court ordered dismissal without prejudice of the claim.

MINE SAFETY DISCLOSURES

Not applicable.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 3. Legal Proceedings