NOTE 8 – COMMITMENTS AND CONTINGENCIES

From time to time, the Company may be involved in litigation that arises through the normal course of business. On June 18, 2026, Brainstorm Cell Therapeutics Ltd., the Company’s wholly owned Israeli subsidiary, was served with a statement of claim filed by Sourasky University Medical Center (“Ichilov”) in the Magistrates’ Court of Tel Aviv-Jaffa. The claim alleges breach of an agreement for the use of clean rooms at Ichilov’s facility and seeks NIS 2,117,950 (approximately $0.7 million), in alleged unpaid use fees, interest and related charges, as well as a declaration that the subsidiary fundamentally breached the agreement. The statement of defense, together with any counterclaim, is due in October, 2026. The subsidiary denies the claim, intends to contest it vigorously.

At this time, the Company is unable to reasonably estimate the amount or range of possible loss, if any, that may result from this matter. The Company has already included approximately $570,000 in overdue rent as trade payables. Accordingly no additional accrual for any loss contingency has been recorded in the accompanying consolidated financial statements. The Company does not expect the outcome of this litigation to have a material adverse effect on its financial condition or results of operations, or cash flows, although there can be no assurance as to the ultimate outcome.