DIRTT ENVIRONMENTAL SOLUTIONS LTD

There have been no material developments in the legal proceedings previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Report on Form 10-Q for the quarters ended March 31, 2024 and June 30, 2024 except as described below regarding DIRTT’s litigation against Falkbuilt, Messrs. Smed and Loberg, and their associates.

With respect to the Utah Unfair Competition Case, Falkbuilt has refused to respond to discovery or supplement its prior discovery, and DIRTT is preparing for motion practice. While Falkbuilt also resisted the entry of a scheduling order, after motion practice and an order from the magistrate judge, the Court entered a scheduling order requiring discovery to be completed by February 2025. The Court set a pretrial conference for October 17, 2025. DIRTT has also retained two experts. Briefing on Falkbuilt’s motion to stay the case and renewed motion to move the case to Canada is fully briefed. DIRTT is proceeding as though the motion will be denied. We are seeking $100 million of damages as part of the second amended complaint.

In the Canadian Non-Compete Case, on October 25, 2024, the Honourable Mr. Justice Poelman of the Court of King's Bench of Alberta granted a Court Order directing the Clerk of the Court to schedule an 8-week Trial on the first available dates after December 8, 2025, to determine all the issues (including damages and liability). The Clerk should schedule the exact Trial dates in the two weeks following this decision, but the Trial will be completed in the first half of 2026. Once the Trial date has been scheduled, DIRTT will withdraw its summary judgment application as the Trial will cover all of the issues in dispute between the parties.