Item 1. Legal Proceedings
Item
1. Legal Proceedings.
From
time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However,
litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may
harm our business.
Shimon
Shukron
In
July 2024, the Company was served with a legal complaint filed by Shimon Shukron in the Magistrate’s Court in Herzliya (the “Court”)
for a monetary award in an amount of NIS 1,895,345 (approximately $510). The plaintiff alleges that due to the fire that broke out at
Orgad’s warehouse in January 2023, the fire spread to the plaintiff’s business and caused heavy damage to the structure and
contents, inventory of the business and loss of profits. The Company filed its statement of defense in September 2024. At this preliminary
stage, the plaintiff did not provide sufficient documents to support his claims regarding the extent of the alleged damage. In June 2025,
the Court appointed a third party appraiser to assess the damages. The Company evaluates the claim at a sum of NIS 325,000 (approximately
$102), at this stage add and is recorded under current liabilities in the consolidated balance sheet.
Item
1A. Risk Factors.
There have been no material
changes to our risk factors from those disclosed in “Part I. Item 1A. Risk Factors” in the Company’s Annual Report
on Form 10-K filed with the SEC on April 15, 2026.
19
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item
3. Defaults Upon Senior Securities.
None.
Item
4. Mine Safety Disclosures.
Not
applicable.
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