Global Interactive Technologies, Inc.

Item 1. Legal Proceedings.

On November 6, 2024, the Securities and Futures Commission of Korea (the “SFC”), a body of the Financial Services Commission of Korea, imposed an administrative fine of KRW 142,100,000 (approximately $0.1 million) on Hanryu Holdings, Inc. (the former name of the Company), alleging that the Company failed to submit a securities registration statement in Korea in connection with the portion of the IPO funds raised from Korean investors in 2023.

In response, the Company contested the notice, asserting that it only held an information session without soliciting subscriptions, and that Hanryu Holdings, Inc. is a U.S. corporation not subject to Korean regulations and therefore not obligated to file a securities registration statement in Korea. However, on March 27, 2025, the SFC rejected the Company’s objection.

As a result, on June 24, 2025, the Company filed an administrative appeal with the Korea Central Administrative Appeals Commission seeking cancellation of the administrative fine. An administrative appeal to the Administrative Appeals Commission is a non-judicial procedure that can be filed prior to an administrative lawsuit, and based on the outcome of the appeal, the Company may file an administrative lawsuit with the court.

Regarding the administrative appeal filed against the imposition of a fine of KRW 142,100,000 by the SFC, the Korean Central Administrative Appeals Commission scheduled a hearing for October 14, 2025. As a result of the hearing, the Commission dismissed the Company’s appeal to cancel the fine of KRW 142,100,000.

The Company received the written decision of the administrative appeal from the Central Administrative Appeals Commission by mail on November 6, 2025. The Company has brought an action for cancellation of the fine before the Seoul Administrative Court (Case No. 2026Guhap50446), with the Company as plaintiff and the SFC as defendant. The next hearing is scheduled for October 16, 2026, and a first-instance judgment is expected in the first half of 2027. The fine has not been paid pending the outcome of the proceedings, and the Company has not recorded an accrual for this matter. See Note 12 “Commitments and Contingencies” to the Condensed Consolidated Financial Statements.

The information set forth under “Legal Matters” in Note 12 “Commitments and Contingencies” to the Condensed Consolidated Financial Statements included in Part I, Item 1 of this report, and the complaint filed by the Company’s former Chief Financial Officer with the Korean Ministry of Employment and Labor, is incorporated herein by reference.

Additionally, from time to time, we may be involved in various proceedings and litigation, claims and other legal matters arising in the ordinary course of business. Some of these claims, lawsuits, and other proceedings may involve highly complex issues that are subject to substantial uncertainties, and could result in damages, fines, penalties, nonmonetary sanctions, or relief. Management is not currently aware of any other material pending legal proceedings, except for ordinary routine litigation incidental to the business, in which we or any of our subsidiaries are involved, or where our property is subject to such proceedings.