What changed in this filing

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Item 1. Legal Proceedings

2020-11-09 compared with 2020-08-12 · 31 added, 14 removed, 8 unchanged (85% of the section changed)

6 unchanged sentences

as such, in which an adverse decision could have a material adverse effect, other than as set forth below.

August 7, 2019, Viewbix Ltd.

was named as a co-defendant in a civil lawsuit filed with the Jerusalem District Court (the “Jerusalem

Court”) by three shareholders of Viewbix Ltd.

(in this section, the “Shareholders”), alleging that they were

entitled to receive certain preferred shares in Viewbix Ltd., pursuant to a certain 2007 loan agreement by and between Viewbix

and the petitioning Shareholders, following the sale of Viewbix Ltd.

On August 7, 2019, Viewbix

was named as a co-defendant in a civil lawsuit filed with the Jerusalem District Court (the “Jerusalem Court”)

by three shareholders of Viewbix Ltd.

(in this section, the “Shareholders”), alleging that they were entitled to receive

certain preferred shares in Viewbix Ltd., pursuant to a certain 2007 loan agreement by and between Viewbix Ltd.

and the petitioning

Shareholders, following the sale of Viewbix Ltd.

shares to Gix (the “Conversion”).

The Shareholders

sought declaratory recourse from the Jerusalem Court, pursuant to which the Shareholders demanded, inter alia , shares in

Gix on a post-Conversion basis or in a form of alternative compensation.

On February 27, 2020, the parties presented their respective

arguments before the Jerusalem Court, and the Jerusalem Court determined that the Company is entitled to file a motion for dismissal

of the claims by the Shareholders by March 31, 2020, which has subsequently been postponed to August 9, 2020.

Notwithstanding

the foregoing, the parties remain actively engaged in ongoing settlement negotiations.

The Shareholders sought declaratory

recourse from the Jerusalem Court, pursuant to which the Shareholders demanded, inter alia , shares in Gix on a post-Conversion

basis or in an alternative form of compensation.

On February 27, 2020, the parties presented their respective arguments

before the Jerusalem Court, and the Jerusalem Court determined that the Company is entitled to file a motion for dismissal

of the claims by the Shareholders by March 31, 2020, which was subsequently postponed to August 9, 2020.

On September 24,

2020, the parties submitted before the Jerusalem Court a settlement proposal, which was thereafter approved by the Jerusalem Court

on the same date (the “Settlement”).

The Settlement provided, inter alia , that in exchange for the voluntary

waiver of claims held by the Shareholders, Gix instructed the trustee holding the instant shares of Gix, which were issued

by Gix as part of the transaction where Gix acquired share capital of Viewbix in November 2018, to issue 63,350

Gix shares of Common Stock to the Shareholders, whereby the remaining shares in the trust account will be used to indemnify Gix

for any expenses related to the instant litigation.

Since the compensation was provided with Gix shares, the settlement has no

effect on the Company’s financial statements.

In June 2017, a lawsuit

was filed with the Tel Aviv District Court (the “Tel Aviv Court”) against Emerald Israel, and other defendants, claiming

certain damages in the total amount of approximately $100,000, under the assertion of wrongful termination by Emerald Israel.

We believe these claims to be unsubstantiated and wholly without merit and accordingly filed our response with the Tel

Aviv Court in October of 2017.

The dispute was initially heard by the Tel Aviv Court on February 13, 2020 and a supplemental hearing

was set for March 19, 2020, which was subsequently postponed twice, initially to September 29, 2020 and subsequently

to February 12, 2021.

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-Q

Item 1. Legal Proceedings