{"url_path":"/sec/gpus/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 ****LEGAL PROCEEDINGS**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-18","source_url":"https://www.sec.gov/Archives/edgar/data/896493/0001214659-26-006542-index.html","accession_number":"0001214659-26-006542","cik":"0000896493","ticker":"GPUS","issuer_name":"Hyperscale Data, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/896493/0001214659-26-006542-index.html","primary_entity_key":"0000896493","primary_entity_name":"Hyperscale Data, Inc."},"word_count":246,"has_tables":true,"body_markdown":"**ITEM 1.****LEGAL PROCEEDINGS**\n\n \n\n**Litigation Matters**\n\n \n\nThe Company is involved in\nlitigation arising from other matters in the ordinary course of business. We are regularly subject to claims, suits, regulatory and government\ninvestigations, and other proceedings involving labor and employment, commercial disputes, and other matters. Such claims, suits, regulatory\nand government investigations, and other proceedings could result in fines, civil penalties, or other adverse consequences.\n\n \n\nCertain of these outstanding\nmatters include speculative, substantial or indeterminate monetary amounts. We record a liability when we believe that it is probable\nthat a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is reasonably possible and the loss\nor range of loss can be estimated, we disclose the reasonably possible loss. We evaluate developments in our legal matters that could\naffect the amount of liability that has been previously accrued, and the matters and related reasonably possible losses disclosed, and\nmake adjustments as appropriate. Significant judgment is required to determine both likelihood of there being a loss and the estimated\namount of a loss related to such matters.\n\n \n\n**Other Litigation Matters**\n\n \n\nWith respect to our other\noutstanding matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either\nindividually or in aggregate, have a material adverse effect on our business, consolidated financial position, results of operations,\nor cash flows. However, the outcome of such matters is inherently unpredictable and subject to significant uncertainties."}