Notice of Conclusion of Settlement Agreement

Overview of the Settlement

Mobile Factory, Inc. has settled out of court the dispute arising from the share transfer agreement with Mr. Natsuki Kataoka, including the lawsuit and counterclaim. The settlement will reorganize the relationship between the parties and the capital relationship with Suishow Inc.; the shares of Mobile Factory held by Mr. Kataoka will be disposed of in a prescribed manner, and the Suishow shares held by Mobile Factory will be transferred to Mr. Kataoka. Upon receipt of the settlement payment from Mr. Kataoka, Mobile Factory intends to withdraw the lawsuit, and Mr. Kataoka is expected to withdraw the counterclaim. Portions of the settlement details will not be disclosed due to confidentiality provisions.

Outlook and Impact

Profits arising from receipt of the settlement payment and potential reversal of accrued liabilities are planned to be recognized as special gain in the consolidated financial statements for the fiscal year ending December 2026. The total amount of the special gain is expected to exceed 30% of the net income attributable to owners of parent for the most recent consolidated fiscal year. The impact on consolidated results from other exercises of rights and fulfillment of obligations under the settlement agreement is currently being examined and will be disclosed upon release of additional information.