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Commitments and Contingencies
9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 7 - COMMITMENTS AND CONTINGENCIES

 

During August 2019, a lawsuit was filed against the Company and its parent Company, Gix. The plaintiffs claim that they were entitled to receive shares of the Company as a part of the consideration in Gix’s acquisition of the Company. In management’s opinion, the plaintiffs’ claims are based on incorrect assumptions that relate to the distribution of shares between the plaintiffs and other former shareholders of the Company prior to Gix’s acquisition which would have resulted in the receipt of shares in the acquisition transaction. During September 2020, a settlement was reached between the parties which was later approved by the court. The settlement outlines that in exchange for the voluntary waiver of claims made by the plaintiffs, Gix will issue 63,350 shares of its common stock held in trust in favor of securing the transaction by which Gix acquired shares of ViewBix Ltd. in November 2018. The remaining shares in the trust account will be used to indemnify Gix for any expenses related to the litigation. Since the consideration paid was in Gix’s shares, and as the claims relate to the distribution of shares between the plaintiffs and other former shareholders of the Company, the settlement did not impact on the Company’s financial statements.

 

In June 2017, a lawsuit was filed by a former CEO of the Company with the Tel Aviv District Court (the “Tel Aviv Court”) against the Company claiming certain damages in the total amount of $100, under the assertion of wrongful termination by the Company and Emerald Israel. The Company believes these claims to be unsubstantiated and wholly without merit and accordingly filed its 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 has been set.

 

As of September 30, 2020, the company’s management, in consultation with its legal advisors, believes that the CEO's claims will not be successful therefore the financial statements do not include a provision for the above mentioned.