On March 11, 2025, Effort Premier Solutions LDA (“Effort”) and Elói Serafim Alves Ferreira initiated arbitration proceedings against us and our subsidiary AstroNova Portugal, Unipessoal, Lda. (“AstroNova Portugal”) in the Arbitration Center located in Oporto, Portugal (the “Arbitration Court”). The claim alleges, among other things, breaches of the MTEX acquisition agreement and damage to Mr. Ferreira’s professional reputation. On May 15, 2026, we, together with AstroNova Portugal and MTEX., entered into a settlement agreement with Effort, Mr. Ferreira and Atlantiprestígio to resolve all claims arising out of and relating to the MTEX acquisition. Under the terms of the settlement: •Atlantiprestígio will transfer to AstroNova Portugal an industrial property located in Porto, Portugal, currently leased by MTEX: •The parties agreed to a value of €2.5 million for the property; •Atlantiprestígio will waive amounts due under the related lease: •We will cause the release of certain personal guarantees provided by Mr. Ferreira and spouse; •The parties agreed to mutual releases of claims and allocation of arbitration costs; and •The arbitration proceeding and related legal actions will be terminated upon final registration of the property in the name of AstroNova Portugal. As a result of the settlement, we no longer expect the arbitration or related proceedings to proceed to adjudication, subject to completion of the required property registration. There are no other pending or threatened legal proceedings against us that we believe to be material to our financial position or results of operations.