We are pleased to see that the jury invalidated the claim of United States Patent No. 7,541,444 asserted by Illumina in the trial in the Northern District of California. This patent contained the broadest of all the asserted claims and had the longest remaining life of the five asserted patents. With this result, MGI may potentially begin selling CoolMPS technology-based products in the U.S. ten months earlier, by August 2022.

In addition, the jury awarded Illumina much smaller damages ($8 Million), only a third of what it was seeking. We firmly believe that MGI has not infringed any valid Illumina claim and are evaluating options for post-trial proceedings.

An upcoming trial in Delaware scheduled for April 2022 will determine if Illumina has willfully infringed two patents owned by Complete Genomics, a U.S. affiliate of MGI. We also have pending antitrust claims against Illumina in the U.S. District Court for the Northern District of California.