Announcement of the Updates on the Litigation Involving the Company

 Announcement of the Updates on the Litigation
Involving the Company

1.Parties to the legal matter:
  Plaintiff: OWLINK Technology INC
  Defendant: The Company
2.Name of the court or punishing agency of the legal matter:
  United States District Court of the Central District of California
3.Reference/Case number of relevant documents of the legal matter:
  Case No.: 8:21-cv-00717-JLS-KES
4.Date of occurrence of the event:2022/06/24
5.Details of occurrence (including the matter under dispute):
  Plaintiff, OWLINK Technology INC, alleges that the Company breached the
  compensation payment provisions of the Exclusive Business Management
  Agreement in a lawsuit filed in the Superior Court of California of the
  County of Orange. Plaintiff then engaged local counsel to remove this case
  to United States District Court of the Central District of California.
6.Handling procedure:
  We engaged local counsel to handle the case in accordance with the
  procedural rules, and the court arranged a mediation between the
  parties on June 16, 2022 (U.S. local time). Since the parties did not
  had reached a consensus after the mediation, then after several days
  of negotiation for the resolution provided by both parties, still could
  not reach a consensus until now, so Cypress took the attorney advice then
  continued the following process.
7.Impact on the Company's finance and business and projected amount:
  Since there is no confirmed consensus after the mediation, Cypress can not
  presume Impact on the Company's Finance and Business.
8.Countermeasures and improvement status:None.
9.Any other matters that need to be specified:None.