DIGI INTERNATIONAL INC

During the three months ended March 31, 2024, no director or officer of the Company adopted, modified orterminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation

S-K.

Immaterial Correction of Prior Period Financial Statements

As discussed in Note 6 to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q, the Company discovered a disclosure error related to the measure of profit and loss previously disclosed. ASC 280-10-50-22 requires the disclosure of the measure of profit or loss as reviewed by the CODM. Our CODM reviews the measures of profit for each operating segment excluding certain costs that are directly attributable to reportable segments, which are unallocated to the operating segments. As a result, the Company has corrected the disclosure to separately disclose the unallocated expenses outside of the IoT Products & Services and IoT Solutions segments gross profit and operating income (loss) amounts. The errors have no impact on the consolidated balance sheet, consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows. Management has evaluated the misstatement and concluded it was not material to prior periods. The Company will also correct the Consolidated Financial Statements for the prior periods that will be presented in the Form 10-K filing for the year ended September 30, 2023. The Company will also correct the comparable Q3 2023 and Q1 2024 Condensed Consolidated Financial Statements that will be presented in the Q3 2024 and Q1 2025 Form 10-Q filings, respectively.

The following tables reflect the effects of the corrected disclosures of the Company's previously reported Condensed Consolidated Financial Statements for the three months ended December 31, 2023, three and nine month ended June 30, 2023 and for the years ended September 30, 2023 and September 30, 2022, which will be corrected in future filings: