Owlet, Inc.

From time to time, we may become involved in various legal proceedings that arise in the ordinary course of business. We evaluate any claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, and the expected effect on us of defending the claims and a potential adverse result. However, the results of any litigation, investigations or other legal proceedings are inherently unpredictable and expensive. Any claims against us, whether meritorious or not, could be time consuming, result in costly litigation, damage to our reputation, and divert significant resources. If any legal proceedings were to be determined adversely to us, or we were to enter into a settlement agreement, we could be exposed to monetary damages or limits on our ability to operate our business, which could have an adverse effect on our business, financial condition, and operating results.

On August 3, 2026, the U.S. District Court for the Central District of California entered final orders granting final approval of the settlements in both the consolidated securities class action (Butala v. Owlet, Inc., Case No. 2:21-cv-09016-FLA-SSC) and the consolidated shareholder derivative action (Vargas v. Workman, et al., Case No. 2:24-cv-07258-FLA-PVC), fully resolving and dismissing both matters with prejudice.

For a detailed description of these finalized settlements and our general legal proceedings, see Note 5, Commitments and Contingencies, within the Notes to Condensed Consolidated Financial Statements included elsewhere in this Report, which is incorporated herein by reference.