[WiiBoom] (Arbitration Result Correction Announcement - Correction items as described in 9-Other matters that should be stated) On behalf of subsidiary Liewei, announcement of the final arbitration result regarding damages claimed by ASCION company due to products sold by the subsidiary.
WiiBoom's subsidiary, Liewei, announced a revised arbitration outcome with ASCION regarding product defects and delayed shipments. Liewei has already accrued approximately US$46.6 million in compensation to ASCION, with an additional US$1.46 million in interest and other costs expected to be accrued. Liewei has applied to the federal court to vacate the arbitration award.
📋 Article Processing Timeline
- 📰 Published: April 10, 2026 at 09:00
- 🔍 Collected: April 13, 2026 at 08:00 (71h 0m after Published)
- 🤖 AI Analyzed: April 13, 2026 at 10:55 (2h 55m after Collected)
1. Parties to the legal event: Subsidiary Liewei Co., Ltd. is the defendant, and the plaintiff is ASCION, LLC dba REVERIE (hereinafter referred to as "ASCION Company") regarding a claim for damages. In addition, Subsidiary Liewei Co., Ltd., in the same arbitration proceeding, separately requested that Cross Respondents Xienci Leads Inc. and Dah Sheng International Co., Ltd. bear joint and several liability with ASCION Company for unpaid goods and damages.
2. Name of court or disposition authority for the legal event: AMERICAN ARBITRATION ASSOCIATION, INTERNATIONAL CENTRE FOR DISPUTE RESOLUTION, International Arbitration Tribunal.
3. Case number of relevant legal document: CASE NO. 01-21-0004-1652.
4. Date of occurrence: April 10, 2026 (115/04/10 ROC calendar).
5. Original cause of occurrence (including subject of dispute): ASCION Company initiated commercial arbitration against Subsidiary Liewei Co., Ltd. in 2021 (110 ROC calendar) at the International Centre for Dispute Resolution (hereinafter referred to as "ICDR") of the American Arbitration Association due to product defects and delayed shipments. Initially, it sought compensation of over US$18,000 thousand, which ASCION Company later increased to approximately US$143,984 thousand in 2025 (114 ROC calendar). In addition, Subsidiary Liewei Co., Ltd. also counterclaimed against ASCION Company for unpaid goods and damages in the arbitration proceedings, and requested that Xienci Leads Inc. and Dah Sheng International Co., Ltd. bear joint and several liability for ASCION Company's unpaid goods and damages. The arbitration hearing process concluded at the end of October 2024 (113 ROC calendar).
6. Handling process:
6.1 The company first received a Partial Final Award from ICDR on July 31, 2025 (Taiwan time), which ruled that Subsidiary Liewei Co., Ltd. must pay ASCION Company a total of US$26,999,276.52. The aforementioned partial award has been announced in accordance with relevant laws.
6.2 Recently, the company received notification from Subsidiary Liewei Co., Ltd. that the subsidiary received the Final Award from ICDR via its lawyers on February 18, 2026 (Taiwan time), thus concluding the arbitration process. According to the Final Award, in addition to the compensation amount mentioned in 6.1, the company's subsidiary Liewei Co., Ltd. shall also pay and return (hereinafter collectively referred to as "payments"):
(1) Interest derived from the aforementioned amount to ASCION Company, calculated up to July 30, 2025, amounting to US$13,699,494.65.
(2) Interest to ASCION Company, calculated from July 31, 2025, to the actual payment date, based on the sum of the amounts in 6.1 and (1), estimated to be approximately US$3,412,006.57.
(3) Attorney fees and legal related expenses paid by ASCION Company in the arbitration case, amounting to US$2,499,724.7, plus interest calculated from October 31, 2025, to the actual payment date, estimated to be approximately US$133,957.84.
(4) ICDR administrative fees and arbitrator fees to ASCION Company, amounting to US$283,299.41.
(5) Attorney fees and legal related expenses paid by Xienci Leads Inc. and Dah Sheng International Co., Ltd. in the arbitration case, amounting to US$848,833.05, plus interest calculated from October 31, 2025, to the actual payment date, estimated to be approximately US$45,488.15.
(6) ICDR administrative fees and arbitrator fees to Xienci Leads Inc. and Dah Sheng International Co., Ltd., amounting to US$139,959.12.
The above content is hereby disclosed.
7. Impact on company's financial operations and estimated impact amount:
In addition to accruing US$26,999,276.52 in compensation in Q2 2025 (114 ROC calendar), Subsidiary Liewei Co., Ltd. further accrued US$19,574,260.8 in compensation and interest in Q4 2025 (114 ROC calendar), totaling US$46,573,537.32 in compensation for 2025. An additional US$25,372.83 in compensation and an estimated US$1,463,129.86 in interest will be accrued in 2026 (115 ROC calendar).
8. Countermeasures and improvement status:
To protect the company's and shareholders' rights, Subsidiary Liewei Co., Ltd. has legally filed a Motion to Vacate the arbitration award with the U.S. Federal Court. In addition, Subsidiary Liewei Co., Ltd. will legally proceed with necessary procedures, including carefully evaluating subsequent disposition measures such as liquidation or bankruptcy proceedings, depending on the litigation progress and relevant factors.
9. Other matters that should be stated (if the subject of the event or resolution is a public offering or higher company, this material information also complies with Article 7, Paragraph 2 of the Enforcement Rules of the Securities and Exchange Act regarding matters that have a significant impact on shareholders' equity or securities prices):
The judgment result was received on February 18, 2026, and a revised arbitration award was received on April 10, 2026, with the compensation amount increasing by US$25,372.83.
As of the announcement date, Liewei Co., Ltd. has not yet paid the compensation and interest, so interest continues to be estimated.
2. Name of court or disposition authority for the legal event: AMERICAN ARBITRATION ASSOCIATION, INTERNATIONAL CENTRE FOR DISPUTE RESOLUTION, International Arbitration Tribunal.
3. Case number of relevant legal document: CASE NO. 01-21-0004-1652.
4. Date of occurrence: April 10, 2026 (115/04/10 ROC calendar).
5. Original cause of occurrence (including subject of dispute): ASCION Company initiated commercial arbitration against Subsidiary Liewei Co., Ltd. in 2021 (110 ROC calendar) at the International Centre for Dispute Resolution (hereinafter referred to as "ICDR") of the American Arbitration Association due to product defects and delayed shipments. Initially, it sought compensation of over US$18,000 thousand, which ASCION Company later increased to approximately US$143,984 thousand in 2025 (114 ROC calendar). In addition, Subsidiary Liewei Co., Ltd. also counterclaimed against ASCION Company for unpaid goods and damages in the arbitration proceedings, and requested that Xienci Leads Inc. and Dah Sheng International Co., Ltd. bear joint and several liability for ASCION Company's unpaid goods and damages. The arbitration hearing process concluded at the end of October 2024 (113 ROC calendar).
6. Handling process:
6.1 The company first received a Partial Final Award from ICDR on July 31, 2025 (Taiwan time), which ruled that Subsidiary Liewei Co., Ltd. must pay ASCION Company a total of US$26,999,276.52. The aforementioned partial award has been announced in accordance with relevant laws.
6.2 Recently, the company received notification from Subsidiary Liewei Co., Ltd. that the subsidiary received the Final Award from ICDR via its lawyers on February 18, 2026 (Taiwan time), thus concluding the arbitration process. According to the Final Award, in addition to the compensation amount mentioned in 6.1, the company's subsidiary Liewei Co., Ltd. shall also pay and return (hereinafter collectively referred to as "payments"):
(1) Interest derived from the aforementioned amount to ASCION Company, calculated up to July 30, 2025, amounting to US$13,699,494.65.
(2) Interest to ASCION Company, calculated from July 31, 2025, to the actual payment date, based on the sum of the amounts in 6.1 and (1), estimated to be approximately US$3,412,006.57.
(3) Attorney fees and legal related expenses paid by ASCION Company in the arbitration case, amounting to US$2,499,724.7, plus interest calculated from October 31, 2025, to the actual payment date, estimated to be approximately US$133,957.84.
(4) ICDR administrative fees and arbitrator fees to ASCION Company, amounting to US$283,299.41.
(5) Attorney fees and legal related expenses paid by Xienci Leads Inc. and Dah Sheng International Co., Ltd. in the arbitration case, amounting to US$848,833.05, plus interest calculated from October 31, 2025, to the actual payment date, estimated to be approximately US$45,488.15.
(6) ICDR administrative fees and arbitrator fees to Xienci Leads Inc. and Dah Sheng International Co., Ltd., amounting to US$139,959.12.
The above content is hereby disclosed.
7. Impact on company's financial operations and estimated impact amount:
In addition to accruing US$26,999,276.52 in compensation in Q2 2025 (114 ROC calendar), Subsidiary Liewei Co., Ltd. further accrued US$19,574,260.8 in compensation and interest in Q4 2025 (114 ROC calendar), totaling US$46,573,537.32 in compensation for 2025. An additional US$25,372.83 in compensation and an estimated US$1,463,129.86 in interest will be accrued in 2026 (115 ROC calendar).
8. Countermeasures and improvement status:
To protect the company's and shareholders' rights, Subsidiary Liewei Co., Ltd. has legally filed a Motion to Vacate the arbitration award with the U.S. Federal Court. In addition, Subsidiary Liewei Co., Ltd. will legally proceed with necessary procedures, including carefully evaluating subsequent disposition measures such as liquidation or bankruptcy proceedings, depending on the litigation progress and relevant factors.
9. Other matters that should be stated (if the subject of the event or resolution is a public offering or higher company, this material information also complies with Article 7, Paragraph 2 of the Enforcement Rules of the Securities and Exchange Act regarding matters that have a significant impact on shareholders' equity or securities prices):
The judgment result was received on February 18, 2026, and a revised arbitration award was received on April 10, 2026, with the compensation amount increasing by US$25,372.83.
As of the announcement date, Liewei Co., Ltd. has not yet paid the compensation and interest, so interest continues to be estimated.