Risk Factors Update Summary

• We have identified conditions raising substantial doubt about our ability to continue as a going concern, with shareholders' equity at a deficit of $1.9 million.
• Funding raised of at least $10 million is required, which could significantly impact operational capabilities.
• If FPA holders retain approximately 4 million shares, we must pay $2.00 per share or issue shares at $2.50, impacting cash flow.
• Our total account receivables increased from approximately $13.4 million to approximately $23.7 million, raising the risk of non-collection.
• Changes and uncertainties in the tax system could materially adversely affect our financial condition and results of operations. This may increase our estimated tax liability significantly.
• The Company has a direct or indirect shareholding achieving at least $60 million, impacting investor confidence.
• Our top five clients accounted for 49.8% of revenue in 2024, down from 63.8% in 2023, indicating increased revenue concentration risk.
• We may need to issue additional Class A ordinary shares in respect of approximately 4 million shares, potentially diluting investor ownership.
• The Company may issue additional Class A ordinary shares, which could dilute current investors' ownership percentages.
• Minimum trading volume benchmark set at 60,000 shares over a 26-week average, affecting liquidity.
• We have identified material weaknesses in our internal control over financial reporting, which could adversely affect investor confidence and our Class A ordinary shares' value.
• The escalation of the Israel-Hamas war may disrupt operations and adversely affect our business, financial condition, and results of operations.
• We may be subject to liability claims if we breach our contracts, and our insurance may be inadequate to cover losses, potentially leading to significant financial impacts.
• An aggregate of 21,337,000 Exchanged Shares remain to be issued, potentially diluting existing shareholders' ownership.
• The loss of a major client could create a revenue gap, significantly affecting cash flow and profitability, especially if a key client is involved.
• Our cash flows and results of operations may be adversely affected if we cannot collect on receivables, particularly in newly expanded markets like the Middle East and APAC.
• Increased pricing pressure from key clients may reduce our revenue and gross profits, adversely affecting financial results.
• We may face difficulties expanding operations into countries where we have no prior operating experience, impacting our results.