Company: MYSZ
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001641172-25-000990
Chunk: 1306

Company: My Size, Inc.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1A
Chunk 1306
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as a publicly traded company.

Any
future or current litigation could have a material adverse impact on our results of operations, financial condition and liquidity.

From
time to time, we may be subject to litigation, including, among others, potential stockholder derivative actions and class actions. Risks
associated with legal liability are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant
periods of time. Subject to certain exceptions, our Amended and Restated Certificate of Incorporation, or Certificate of Incorporation,
and Amended and Restated Bylaws, or Bylaws, require us to indemnify and advance expenses to our officers and directors involved in legal
proceedings. To date we have obtained directors and officers’ liability, or D&O, insurance to cover some of the risk exposure
for our directors and officers. Such insurance generally pays the expenses (including amounts paid to plaintiffs, fines, and expenses
including attorneys’ fees) of officers and directors who are the subject of a lawsuit as a result of their service to us. There
can be no assurance that we will be able to continue to maintain this insurance at reasonable rates or at all, or in amounts adequate
to cover such expenses should such a lawsuit occur. Without D&O insurance, the amounts we would pay to indemnify our officers and
directors should they be subject to legal action based on their service to us could have a material adverse effect on our financial condition,
results of operations and liquidity. Such lawsuits, and any related publicity, may result in substantial costs and, among other things,
divert the attention of management and our employees. An unfavorable outcome in any claim or proceeding against us could have a material
adverse impact on our financial position and results of operations for the period in which the unfavorable outcome occurs, and potentially
in future periods. Further, any settlement announced by us may expose us to further claims against us by third parties seeking monetary
or other damages which, even if unsuccessful, would divert management attention from the business and cause us to incur costs, possibly
material, to defend such matters, which could have a material adverse impact on our financial position. See “Legal Proceedings”
for more information regarding our involvement in ongoing litigation matters.

Federal,
state and local or Israeli tax rules may adversely impact our results of operations and financial position.

We
are subject to federal, state and local taxes in the U.S., as well as local taxes in Israel in respect to our operations in Israel. Although