ACTION S.A.

Legal Proceedings Report • Oct 9, 2024

Report Content The Management Board ofQuarticOn S.A. (the "Company") hereby announces that on October 8, 2024,after reviewing the current situation of the Company and assessing itsfinancial condition, it decided to immediately file a petition fordeclaring bankruptcy of the Issuer due to the Issuer's permanent loss ofability to perform due obligations, i.e. fulfillment of the premisereferred to in Article 11 section 1 of the Act of February 28, 2003 -Bankruptcy Law.TheCompany carried out a significant reorganization in 2024: it changed itssales processes, restructured its costs and introduced new products. Atthe same time, in February 2024, it initiated the arrangement procedureand in May 2024 filed an application to the court for approval of thearrangement. In the developed business plan, the Company assumed a rapidincrease in revenues from the new AI Stylista Modowy product, whilemaintaining costs at a stable level and restructuring liabilities underthe arrangement. Unfortunately, the implementation of the sales recoveryplan in all product segments was much slower than assumed. Despite theimplemented cost discipline and the resulting improvement in the result,with an insufficient scale of sales growth, the Company does not fullymeet its current and overdue liabilities to creditors. In the opinion ofthe Management Board, the sales results achieved by the Company willalso not allow for the satisfaction of current and overdue liabilitiesafter approval of the arrangement, in accordance with the scheduleassumed in the application for approval of the arrangement.

The Issuer's Management Boardassumes that during the bankruptcy proceedings the Company will provideservices to customers based on the concluded agreements and will seek aninvestor interested in taking over its enterprise. In the opinion of theManagement Board, filing a bankruptcy petition is not only necessary inthe light of the applicable legal regulations, but also serves toprotect the legitimate interests of the Issuer and its stakeholders, inparticular creditors and shareholders.

The Issuer will inform aboutthe filing of the petition referred to above in the current report.

The Issuer discloses the aboveinformation to the public taking into account the assessment that theabove information has a significant impact on the Issuer's business inaccordance with Article 17 section 1 of Regulation (EU) No 596/2014 ofthe European Parliament and of the Council of 16 April 2014 on marketabuse (market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC of 16 April 2014 (OJ EU.L No.173, p. 1) EU No. 596/2014 (MAR).