LQR House Inc.

ITEM 1. LEGAL PROCEEDINGS

As previously disclosed in the Company’s Current Reports on Form 8-K filed on July 15, 2025 and September 26, 2025, the Company, together with certain current and former officers and directors, was named as a defendant in an action filed by Kingbird Ventures, LLC in the Eighth Judicial District Court, Clark County, Nevada. The complaint alleged, among other things, breach of fiduciary duty and related claims arising from corporate governance matters. On September 22, 2025, the Company and other defendants entered into settlement agreements with Kingbird Ventures and related parties to resolve all matters in the litigation. The settlements provide for mutual releases and a total cash payment obligation of approximately $13 million from the Nevada Defendants (as defined in the agreements), including an initial payment of $7.5 million made in September 2025 and a remaining balance of approximately $5.5 million due by December 18, 2025. No admission of liability was made by any party.