{"url_path":"/sec/mrai/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Legal Proceedings**","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1844392/0001213900-26-057777-index.html","accession_number":"0001213900-26-057777","cik":"0001844392","ticker":"MRAI","issuer_name":"Marpai, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1844392/0001213900-26-057777-index.html","primary_entity_key":"0001844392","primary_entity_name":"Marpai, Inc."},"word_count":324,"has_tables":true,"body_markdown":"**Item\n1. Legal Proceedings**\n\n \n\nOn January 30, 2025, the Company was served with a civil complaint\nby Messer Financial Group Inc., a sublessee of the Company’s previously rented office space in Charlotte, NC, for breach of contract.\nOn July 28, 2025, the Company and the plaintiff conducted a mediation session, which was unsuccessful in resolving the dispute. On September\n22, 2025, the plaintiff commenced discovery proceedings in the litigation, and in September 2025, the Company was informed that the plaintiff’s\nexpert indicated estimated damages in excess of $5 million. On February 5, 2026, the Company agreed to a settlement agreement with\nMesser Financial Group Inc. pursuant to the settlement agreement, the Company is required to pay (i) a one-time lump sum of $10 thousandcash\nconsideration; (ii) issue restricted shares of common stock (“RSU”) of Marpai in an amount valued at $25 thousand as consideration\nfor Messer’s attorney’s fees; and (iii) 400,000 RSUs (together with the attorney’s fees RSUs, the “Stock\nConsideration”) in installments issuable as follows: (a) 100,000 restricted shares of common stock within thirty (30)\ndays of the Effective Date; (b) 100,000 restricted shares of common stock by July 1, 2026; (c) 100,000 restricted\nshares of common stock by January 1, 2027; and (d) 100,000 restricted shares of common stock by July 1, 2027. On January 3,\n2028, if the Total Value (defined below) of the Stock Consideration is less than $1.0 million, Marpai will (A) pay Messer an additional\n$250 thousand in cash, or (B) issue Messer $250 thousand in restricted shares of common stock of Marpai (MRAI), valued in the same manner\nas Total Value. Total Value shall be determined by averaging Marpai’s closing stock price on (A) the payment due date, (B) 45 days\nprior to the payment due date, and (C) 90 days prior to the payment due date.\n\n \n\nAfter\nMesser received the Cash Consideration, Messer voluntarily dismissed the Lawsuit in its entirety as to all Defendants with prejudice."}