What changed 10-Q

Item 1. Legal Proceedings

2026-05-08 compared with 2026-01-30 · 2 added, 2 removed, 3 unchanged (57% of the section changed)

2 unchanged sentences

The lawsuit against PEAG LLG d/b/a JLab Audio was dismissed on November 20, 2025 following resolution of the litigation between the parties.

One lawsuit is still unresolved and pending in the U.S.

District Court in the District of Utah (Skullcandy, Inc.).

In late March 2026, a Utah federal judge dismissed the Company’s lawsuit against Skullcandy, Inc., the last remaining patent infringement lawsuit in a series of legal actions filed starting in 2020.

The Company is appealing this decision.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.