A.K.A. BRANDS HOLDING CORP.

In April 2024, we received a cease and desist letter alleging copyright infringement and related claims, and, in 2024, we accrued $2.0 million to general and administrative expenses for current estimated losses in connection with these claims. On July 23, 2025, we entered into a final settlement agreement for this matter, wherein we agreed to pay, or have our insurers pay to the claimant on our behalf, a total of $16.5 million to the claimant in settlement costs. As part of the final settlement agreement, the Company paid $1.1 million and subsequently released the remaining $0.9 million previously accrued for this matter.

In addition, we are subject to legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties. We currently are not certain whether the ultimate outcome of such legal proceedings, individually or in the aggregate, will have a material adverse effect on our financial position, results of operations or cash flows. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on our results of operations in the period in which the ruling occurs. The estimate of the potential impact from such legal proceedings on our financial position or results of operations could change in the future.