Due to circumstances and
the uncertainty surrounding the effects of the outbreak of the coronavirus, or COVID-19, the Company has determined that it
will delay the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, or the Quarterly
Report, by up to 45 days in reliance on the U.S. Securities and Exchange Commission’s, or the SEC, March 25,
2020 Order (Release No. 34-88465), or the Order. The Order allows for the delay of certain filings required under the Securities
and Exchange Act of 1934, as amended.
The Company’s operations
and business have experienced disruptions due to the unprecedented conditions surrounding the spread of COVID-19 throughout
North America, Israel and the world. In particular, COVID-19 and measures implemented to reduce the spread of the virus
have limited access to the Company’s facilities and disrupted its normal interactions with its accounting personnel, legal
advisors, auditors and others involved in the preparation of the Quarterly Report. Notwithstanding the foregoing, the Company expects
to file the Quarterly Report no later than June 25, 2020, 45 days after the original due date of the Quarterly Report.
If the Quarterly Report is filed by June 25, 2020, it will be deemed timely filed by the SEC.
In light of the current
COVID-19 pandemic, the Company currently anticipates including the following risk factor in the Quarterly Report, subject to further
development:
The COVID-19 pandemic, or any other pandemic, epidemic
or outbreak of an infectious disease, may materially and adversely affect our business and operations.
The recent outbreak of COVID-19 originated
in Wuhan, China, in December 2019 and has since spread to multiple countries, including the United States, Israel and many European
countries in which we operate. On March 11, 2020, the World Health Organization declared the outbreak a pandemic. While COVID-19
is still spreading and the final implications of the pandemic are difficult to estimate at this stage, it is clear that it has
affected the lives of a large portion of the global population. At this time, the pandemic has caused states of emergency to be
declared in various countries, travel restrictions imposed globally, quarantines established in certain jurisdictions and various
institutions and companies being closed. We are actively monitoring the pandemic and we are taking any necessary measures to respond
to the situation in cooperation with the various stakeholders.
Due to the uncertainty surrounding the
COVID-19 pandemic, we will continue to assess the situation, including government-imposed restrictions, market by market. It is
not possible at this time to estimate the full impact that the COVID-19 pandemic could have on our business, the continued spread
of COVID-19, and any additional measures taken by governments, health officials or by us in response to such spread, could have
on our business, results of operations and financial condition. The COVID-19 pandemic and mitigation measures have also negatively
impacted global economic conditions, which, in turn, could adversely affect our business, results of operations and financial condition.
The extent to which the COVID-19 outbreak continues to impact our financial condition will depend on future developments that are
highly uncertain and cannot be predicted, including new government actions or restrictions, new information that may emerge concerning
the severity, longevity and impact of the COVID-19 pandemic on economic activity.