MICRONET ENERTEC TECHNOLOGIES, INC. (NASDAQ:MICT) Files An 8-K Other Events
Item 8.01Other Events

On March 30, 2017, Micronet Ltd. (the “Subsidiary”), a subsidiary in which Micronet Enertec Technologies, Inc. (the “Company”) has a majority equity interest, filed an immediate report with the Tel Aviv Stock Exchange (the “TASE”) announcing that it received notice from a client (the “Client”), relating to tests performed by the Client which to Client position revealed a defect in the materials included in the battery integrated into a certain product of the Subsidiary purchased by the Client, and that the Client further reported the issue to the United States National Highway Traffic Safety Administration (the “Regulator”) in a form of a complaint. According to the information provided to the Subsidiary by the Client, the complaint refers to an older product of the Subsidiary, which has been sold for a few years. Similar problems in the specific product were previously handled under the warranty provided to this Client, in the ordinary course of business and included problem fixing, battery changing and software updates.

In light of the Client’s notice, the Subsidiary announced that it shall perform independent tests to examine the Client’s complaint (including addressing the issue with the battery manufacturer) and if required, will simultaneously address the issue with the Regulator.

At present, the Subsidiary has reported that it cannot confirm the Client’s complaint, that it has not received any documentation in connection with the complaint and that it has no knowledge of such defect in the battery as noted by the Client.

The Subsidiary advised in its immediate report that the Client further noted its intention to continue working with the Subsidiary and maintain the business relationship therewith, and recently submitted a significant order in the amount of $2 million.

The Subsidiary reported in its immediate report that since the product discussed is an older generation product, and since the Subsidiary is currently marketing advanced products, in the Subsidiary’s opinion, the issue at hand will not materially affect the Subsidiary’s prospective sales.

In its immediate report, the Subsidiary clarified that the product at issue is part of the portfolio of products purchased by the Company from Beijer in connection with the transaction with Beijer that was consummated in June 2014.

The Subsidiary and the Client are working together to find a technical and commercial solution for the end users using the product at issue.