Xiao-I Corporation (NASDAQ:AIXI), a leading developer of AI solutions, today provides an additional material update on its variable interest entity (VIE)'s ongoing patent infringement lawsuit against Apple Computer Trading (Shanghai) Co., Ltd., Apple Inc., and Apple Computer Trading (Shanghai) Co., Ltd. (collectively, "Apple") (the "Lawsuit"). The Lawsuit centers on allegations that Apple infringed on the VIE's intellectual property rights related to core artificial intelligence technology, with the legal proceedings having advanced through key appellate stages since the Company's last update.

As previously disclosed on November 1, 2024, the Shanghai High People's Court convened the second session of hearings in the case on that date, following the conclusion of the trial phase on July 31, 2024. Subsequent to this hearing, on September 3, 2024, Apple filed appeals with the Supreme People's Court of the People's Republic of China (the "Supreme People's Court"), in which Apple sought a ruling to invalidate the core AI patents of Xiao-I's VIE that form the basis of the infringement claims in the Lawsuit.

On March 27, 2026, the Supreme People's Court rendered its final second-instance judgments on Apple's appeal. In the ruling, the Supreme People's Court formally rejected Apple's application to have Xiao-I's VIE's relevant patents declared invalid and affirmed the legality and validity of such patents in full. This judgment constitutes a final and binding ruling under the laws of the People's Republic of China, with no further right of appeal available to either party in respect of the patent validity determination.

While Xiao-I Corporation remains confident in the merits of its case, there can be no assurance as to the ultimate outcome of the remaining proceedings against Apple, there is no guarantee that the Company will be awarded any financial compensation. Investors are strongly encouraged to conduct their own due diligence and review all relevant information before making investment decisions.

Xiao-I will keep shareholders and the public informed of any material further developments, if any, in a timely manner.