TROOPS, Inc. (NASDAQ: TROO) Issues Statement Rebutting Misleading Short-Seller Report and Provides Update on Hong Kong Legal Proceedings

As previously disclosed, on June 23, 2025, the High Court of the Hong Kong Special Administrative Region Court of First Instance issued a judgment in Action No. HCA 938/2022 (https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=169843&QS=%2B%7C%28Hca%2C938%2F2022%29&TP=JU). Among other orders, the Court held that:

-  TROOPS, Inc. and its subsidiaries SGOCO International (HK) Limited and Giant Connection Limited, amongst other defendants, are jointly and severally liable for payment of HK$163,400,000; and

-  The Company and its subsidiary SGOCO International (HK) Limited, amongst other defendants, are jointly and severally liable for payment of HK$241,400,000

The Company and its subsidiaries are only three of eleven jointly and severally liable defendants. This indicates that the Company should be liable to pay only a portion of the judgment sum, given that other defendants are also liable for the judgment and have already provided assets to the court as security under court injunctions.

In addition, the Company filed a Notice of Appeal on July 21, 2025. The Hong Kong Court of Appeal has scheduled the appeal hearing for February 24 - 26, 2027, while the hearing for stay of execution of the judgment took place on May 8, 2026 and the hearing for directions on consequential matters took place on August 20, 2026.

No adverse conclusions have been reached by the Court in these hearings. Stay of execution of the judgment has been granted by the Court and remains in effect until the results of the appeal hearing scheduled for February 2027. As a result, enforcement of the judgment is stayed, and the related Cayman Islands winding-up petition continues to be adjourned in accordance with prior consent orders pending resolution of the Hong Kong appeal process.

These developments directly contradict the Report's central premise of an imminent "endgame," winding-up order, or Nasdaq suspension risk arising from the August 20 hearing. The Company's legal position remains protected by the stay, and management continues to prosecute the appeal vigorously with the goal of overturning or substantially reducing the judgment.

The Report recycles previously disclosed information, adds speculative interpretations about the Company's resources, trading activity, and ability to fund its defense, and draws conclusions that are neither supported by the record nor consistent with the current status of the proceedings. TROOPS, Inc. remains a going concern, continues to operate its businesses, and is committed to protecting the interests of its shareholders through the appeal and, where appropriate, other legal avenues.

Management reiterates its confidence in the merits of the appeal and its determination to pursue all available remedies. The Company will continue to provide updates on material developments in accordance with its disclosure obligations.

About TROOPS, Inc.

TROOPS, Inc. is a conglomerate group of various businesses with its headquarters based in Hong Kong. The group is principally engaged in (a) money lending business in Hong Kong providing mortgage loans to high quality target borrowers, (b) property investment to generate additional rental income and, (c) the development, operation and management of an online financial marketplace that provides one-stop financial technology solutions including API services by leveraging artificial intelligence, big data and blockchain, and cloud computing (SaaS), (d) advisory and referral services in relation to the application of migration, education and visa renewal to its customers, and (e) consultancy services for insurance products in respect of insurance referral to insurance brokers. The group's vision is to operate as a conglomerate to build synergy within its own sustainable ecosystem thereby creating value to its shareholders.

For more information about TROOPS, Inc., please visit our investor relations website: www.troops.co

Safe Harbor and Informational Statement

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Forward-looking statements in this release include, without limitation, the effectiveness of the Company's multiple-brand, multiple channel strategy and the transitioning of its product development and sales focus and to a "light-asset" model, Although the Company's management believes that such forward-looking statements are reasonable, it cannot guarantee that such expectations are, or will be, correct. These forward looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. These forward-looking statements can change as a result of many possible events or factors not all of which are known to the Company, which may include, without limitation, our ability to have effective internal control over financial reporting; our success in designing and distributing products under brands licensed from others; management of sales trend and client mix; possibility of securing loans and other financing without efficient fixed assets as collaterals; changes in government policy in China; China's overall economic conditions and local market economic conditions; our ability to expand through strategic acquisitions and establishment of new locations; compliance with government regulations; legislation or regulatory environments; geopolitical events, and other events and/or risks outlined in TROOPS' filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F and other filings. All information provided in this press release and in the attachments is as of the date of the issuance, and TROOPS does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

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SOURCE TROOPS