My Size, Inc. 10-Q

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 $636). 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 such 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. In August 2026, the Company and Shimon Shukron have entered into an agreement, pursuant to which the Company will pay NIS 425,000 in three monthly payments for all claims made (approximately $143), which agreement was approved by the Court. The total agreed amount has been accrued and recorded as current liabilities in the consolidated balance sheet as of June 30, 2026.