Core Viewpoint - Pixelworks, Inc. has successfully completed the sale of its shares in Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. to a special purpose entity led by VeriSilicon Microelectronics, resulting in significant cash proceeds for the company [1]. Group 1: Transaction Details - The transaction involved the transfer of all outstanding capital stock in Pixelworks Shanghai to the Buyer, yielding cash proceeds of approximately RMB 357 million, or about $51 million USD, net of transaction costs and withholding taxes [1]. - An additional amount of approximately RMB 8.7 million, or about $1.2 million USD, is being held in an escrow account pending the resolution of certain tax matters in China [1]. - All previous repurchase rights held by other prior shareholders of Pixelworks Shanghai were fully released upon the closing of the transaction [1]. Group 2: Company Overview - Pixelworks provides innovative video and display processing solutions, enhancing viewing experiences across various screens, including cinema and smartphones [2]. - The company has over 20 years of experience in delivering image processing innovations to leading providers in consumer electronics, professional displays, and video streaming services [2].

Core Viewpoint - Pixelworks, Inc. is seeking shareholder approval for the sale of its subsidiary, Pixelworks Semiconductor Technology (Shanghai), with the Special Meeting of Stockholders adjourned to December 31, 2025, to allow more time for voting on Proposal 1 [1][2]. Proposal Details - Proposal 1 aims to authorize the sale of all shares of Pixelworks Shanghai held indirectly by the Company [1]. - As of December 19, 2025, approximately 98% of the proxies received voted in favor of Proposal 1, but this only accounted for about 61% of the outstanding shares on the record date [2]. - The Board of Directors, along with leading independent proxy voting advisory groups, recommends shareholders vote FOR Proposal 1 [2]. Meeting Logistics - The adjourned Special Meeting will be held virtually, allowing shareholders of record on October 17, 2025, to participate and vote [4]. - Votes must be received by 11:59 p.m. Eastern time on December 30, 2025, to be counted, with additional voting options available during the reconvened meeting [5]. Purchase Agreement Terms - The Purchase Agreement allows either party to terminate the agreement if the sale does not close by December 15, 2025; however, neither party has sought termination to date [3]. Company Overview - Pixelworks provides innovative video and display processing solutions, enhancing viewing experiences across various screens, including cinema and smartphones [10].

Core Points - Pixelworks, Inc. has adjourned its Special Meeting of Stockholders to December 8, 2025, due to insufficient votes for Proposal 1, which seeks to authorize the sale of its subsidiary, Pixelworks Semiconductor Technology (Shanghai) [1][2] - Approximately 98% of the votes cast were in favor of Proposal 1, but this only accounted for about 57% of the total outstanding shares required for approval [2] - The Board of Directors believes that the approval of Proposal 1 is in the best interests of the Company and its shareholders, with recommendations from leading independent proxy voting advisory groups to vote in favor [2] Voting Information - Shareholders who have not yet voted are encouraged to do so by December 7, 2025, at 11:59 p.m. Eastern time [4][6] - The adjourned Special Meeting will be held virtually, allowing shareholders to participate and vote by dialing a designated number [3] - Votes must be received by the specified deadline to be counted, and record holders can vote during the reconvened meeting [6] Company Background - Pixelworks, Inc. specializes in video and display processing solutions, providing technology that enhances viewing experiences across various screens [12]

Core Insights - Pixelworks Shanghai has received approximately $1.6 million in new subsidies, recognizing its contributions to technology innovation and advanced R&D capabilities [1][2] - The subsidies are linked to Pixelworks Shanghai's designation as a "Little Giant" enterprise by the China Ministry of Industry and Information Technology, highlighting its investments in semiconductor design and R&D [1][3] Group 1 - Pixelworks Shanghai is integral to the company's 25-year history of developing innovative image processing solutions that enhance visual quality and user experience [2] - Recent advancements include the integration of AI enhancements with distributed rendering architecture, significantly improving rendering performance for mobile devices and gaming [2] - The awarded subsidies aim to offset previous investments in intellectual property, EDA software, and initial chip production [2] Group 2 - The "Little Giant" designation was achieved after an extensive certification process, recognizing outstanding small and medium-sized enterprises based on strict criteria [3] - Certified enterprises benefit from increased visibility and can apply for local and national government subsidies, including grants and reimbursements for R&D investments [3] - Pixelworks has a 20-year history of delivering image processing innovations to various sectors, including consumer electronics and video streaming services [4]