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On June 5, 2026, Katapult Holdings, Inc. (the " Company") reached an agreement to settle a putative patent lawsuit, captioned Flexshopper, Inc. v. Katapult Holdings, Inc., filed on September 30, 2024 in the U.S. District Court for the Eastern District of Texas, Marshall Division, (Case No. 2:24-cv-00795-JRG). The complaint alleged patent infringement of United States Patent Nos. 10,089,682; 10,282,778; 10,891,687; 11,966,969; and 12,067,611 ("Subject Patents") and sought an injunction as well as damages for alleged lost profits and willfulness. The settlement provides the Company and its affiliates, and their successors and assigns, a nonexclusive, perpetual, irrevocable, fully paid-up, royalty-free, worldwide license to the Subject Patents. The Company's affiliates explicitly includes Aaron's Intermediate HoldCo, Inc., ("Aaron's") and CCF Holdings LLC ("CCFI"), and each of their affiliates. Additionally, Flexshopper and the entity that purchased the Flexshopper patents, ReadySett LLC ("ReadySett"), fully releases and forever discharges and covenants not to sue the Company and its affiliates and their successors and assigns for direct or indirect infringement of any of the Subject Patents. In exchange, the Company agreed to pay a lump sum amount to Flexshopper and fully releases and forever discharges Flexshopper and its affiliates and their successors and assigns of all its claims. Flexshopper and ReadySett dismissed the claims brought in the lawsuit with prejudice on June 8, 2026.