Disclosure

At the board of directors held on October 23, 2026, RECS Innovation Co., Ltd. decided to issue new shares through third-party allocation as follows, and therefore announces this in accordance with Article 418, Paragraph 4 of the Commercial Act and Article 4 of the Company's Articles of Incorporation.

1. Purpose and basis for issuance of new shares

For the purpose of the company's research and development, business expansion and procurement of operating funds, new shares are issued based on Article 418, Paragraph 2 of the Commercial Act and Article 15, Paragraph 2, Items 8 and 9 of the Company's Articles of Incorporation.

2. Issuance of new shares

Agenda No. 1: Issuance of new shares to private investment associations
1. Type of new stock: Registered redeemable convertible preferred stock (RCPS)
2. Number of shares to be issued: 2,907 shares
3. Par value per share: Gold 5,000 won
4. Issue price per share: 34,400 won in gold
5. Total issue price: Gold 100,000,800 won
6. New stock acquisition method: Payment through third party allocation
7. Assignment target: Gwangju-Jeonnam region early-stage private investment association
8. Number of shares allocated: 2,907 shares
9. Subscription date: November 1, 2026
10. Payment due date: November 2, 2026
11. New stock effective date: November 3, 2026
12. Matters regarding investment in kind: Not applicable

No. 2: Issuance of new shares through crowdy securities type crowdfunding
1. Type of new stock: Registered redeemable convertible preferred stock (RCPS)
2. Number of shares to be issued: Within 2,739 shares
3. Par value per share: Gold 5,000 won
4. Issue price per share: Gold 36,517 won
5. Total issuance price: within KRW 100,020,063 in gold
6. New stock acquisition method: Payment through third-party allocation through online small investment brokerage
7. Applicants for allocation: Investors who completed subscription and payment through Crowdy
8. Number of shares allocated: Confirmed according to subscription and payment results
9. Subscription period: From November 10, 2026 to November 30, 2026
10. Payment due date: December 10, 2026
11. Effective date of new shares: December 11, 2026
12. Matters regarding investment in kind: Not applicable

3. Main contents of types of stocks

A. No. 1 New Share Issuance

- Voting rights are 1 per share, and the duration is 10 years from the effective date of the new shares. If repayment is not completed after requesting repayment, it will be extended until repayment is completed.
- Preferred dividend is 1% per year based on face amount per share, and is a participatory and cumulative condition.
- 1 share when distributing remaining assets The issuance price and an annual amount of 5% thereof are distributed in preference to common stocks, and are a condition of participation.
- Shareholders can claim redemption until the expiration of the term after 3 years from the effective date. The redemption price is the amount by adding 4% per annum from the effective date to the redemption date to the issue price and deducting the dividends paid. Redemption is within the range of distributable profits. 
- Conversion to common stock can be requested within the period of existence, the conversion ratio is 1:1, and the conversion price is 34,400 won per share. Upon expiration of the term, it is automatically converted to common stock.
- Other detailed issuance conditions are in accordance with Appendix 1 of the relevant investment agreement.

B. No. 2 New Share Issuance

Detailed rights such as preferred dividend rate, redemption claim period and addition rate, conversion ratio and conversion period are subject to the confirmed issuance conditions of this crowdfunding and the securities issuance conditions posted on Crowdy.

4. Matters related to payment and issuance

A. The 1st Shinju stock payment address is Shinhan Bank Co., Ltd. Naju Bitgaram Branch.

B. Subscription and payment for No. 2 new shares are carried out in accordance with the procedures of Crowdy, an online small investment broker. Only stocks for which subscription and payment have been completed are issued, and unsubscribed shares are not issued.

C. The expected date for the issuance of the 2nd new stock certificate is January 21, 2027.

The above is announced.

October 23, 2026

RECS Innovation Co., Ltd.
CEO Lim Jeong-min