[Everlight] Progress Update on Patent Litigation with Nichia in Germany (Supplementary Update, April 25, 2026)

1. Parties involved in the legal matter: Plaintiff: Nichia Corporation Defendants: Everlight Electronics Co., Ltd. and its German subsidiary, Everlight Electronics Europe GmbH

2. Court name or authority: District Court of Düsseldorf, Germany

3. Case reference number: 4a O 9/25

4. Date of event: May 22, 2026

5. Details of the event (including subject of dispute): This case is an extension of patent litigation conducted in Germany between 2012 and 2017 between Everlight Electronics Co., Ltd. and its German subsidiary, Everlight Electronics Europe GmbH (collectively, the Company), and Nichia Corporation (Nichia). It involves a dispute over damages related to Nichia's expired European patent EP936682 (German YAG patent DE69702929).

6. Processing: Nichia originally requested damages of approximately €2.5 million from the District Court of Düsseldorf. Following active defense by the Company, the court supported a portion of the Company's arguments, reducing the judgment amount to €1.63 million. The Company respects the first-instance court judgment. However, although the damage amount has been significantly reduced, the Company believes there is still room for legal argument and will evaluate filing an appeal.

7. Impact on financial operations: The patent involved has already expired on July 29, 2017, and thus has no impact on the Company's current products or operations.

8. Countermeasures: The Company believes there is room for further legal argument and will file an appeal to fully defend the rights and interests of its customers and shareholders.

9. Other information: None.