Factorial Energy Inc.

Item 1. Legal Proceedings

From time to time, in the ordinary course of business, we are subject to litigation and regulatory examinations as well as information gathering requests, inquiries and investigations. On October 7, 2026, the arbitrator in an arbitration between the Company and a vendor before the International Centre for Dispute Resolution issued a final award in favor of the vendor, requiring the Company to pay a net amount of approximately $4.5 million. For additional information, see Note 10, “Commitments and Contingencies — Legal Proceedings,” to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report, which is incorporated herein by reference. As of the date of this Quarterly Report, there were no other such matters which we believe would have a material adverse impact on our business, operating results or financial condition.