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, we were served with a legal complaint filed by Shimon Shukron in the Magistrate’s Court in Herzliya for a monetary award
in an amount of NIS 1,895,345 (approximately $510,000). 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. We filed our 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. Based on the Company’s legal advisors,
the Company evaluate the chances of the claim to succeed for only a nominal sum of NIS 175,000 (approximately $51) , at this stage.
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