2393 Everlight: Update on Patent Litigation with Nichia

This case is an extension of patent litigation between Everlight Electronics and its German subsidiary and Nichia Corporation conducted in Germany between 2012 and 2017, involving damages for Nichia's expired European patent EP936682. Nichia originally claimed approximately 2.5 million EUR. Following our defense, the court supported some of our arguments, reducing the damages to 1.63 million EUR. We respect the first-instance ruling but believe there is room for legal dispute and will evaluate an appeal. The patent in question expired on July 29, 2017, and has no impact on our current products or operations.