PIXELWORKS, INC

Pixelworks, Inc. (the Company or Pixelworks ) provides industry-leading content creation, video delivery and display processing solutions, and technology that enable highly authentic viewing experiences with superior visual quality across all screens, from cinema to smartphone and beyond. Pixelworks has been delivering image processing innovations to leading providers of consumer electronics, professional displays, and video streaming services for more than 20 years. On January 6, 2026 (the Closing Date ), the Company completed the previously announced sale (the Sale ) of all of the shares of common stock of Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. ( PWSH ) held by Pixelworks Semiconductor Technology Company, LLC, a wholly owned subsidiary of the Company ( Pixelworks LLC ), to Tiansui Xinyuan Technology (Shanghai) Co., Ltd. (the Buyer ). The terms of the Sale were set forth in a Purchase Agreement dated as of October 15, 2025 (the Purchase Agreement ), among the Company, PWSH, Pixelworks LLC, all other shareholders of PWSH except VeriSilicon Microelectronics (Shanghai) Co., Ltd. (each, a Selling Shareholder"), and the Buyer. Each Selling Shareholder and VeriSilicon Microelectronics (Shanghai) Co., Ltd. (collectively, the Minority Shareholders ) and Pixelworks LLC also entered into Support Agreements (the Support Agreements ), and Pixelworks LLC, PWSH and each of the Minority Shareholders entered into a Termination and Release Agreement (the Release Agreement ), in each case dated October 14, 2025.