Risk Factors Update Summary

• The price of polysilicon has significantly increased due to a coal shortage in China, impacting costs. This change might result in increased production costs for solar energy systems.
• We will need to raise additional working capital to continue operations, requiring significant revenue levels. As of December 31, 2023, we had $198.4 million in outstanding short-term borrowing.
• In Q4 2022, the Polish parliament implemented a lower price cap, significantly reducing forecasted revenues for the Polish solar park portfolio.
• Foreign financing and currency risk may adversely affect profit margins and investing activities. This change might result in increased costs or reduced revenue.
• Solis Bond Company DAC's bondholders approved extensions of temporary waivers until April 30, 2024, impacting €87.9 million (approximately $95.3 million) in debt obligations.
• The delay between significant upfront investments in solar parks and receiving revenue could adversely affect liquidity.
• Our substantial indebtedness could adversely affect our business, financial condition, and results of operations.
• Recent spot pricing for solar modules has increased, partly due to elevated commodity and freight costs. This change could lead to higher prices for customers and reduced margins.
• Our substantial indebtedness could adversely affect our financial condition and results of operations. The degree of leverage may increase, impacting our ability to satisfy obligations.
• The development of solar power projects may face significant delays or cost overruns due to contractor performance issues.
• We have warrants outstanding to purchase up to 12,345,000 shares of our common stock. This could impact shareholder dilution significantly.
• Decreases in the spot market price of electricity could harm our revenue and reduce competitiveness.
• Our project operations may be adversely affected by weather, climate conditions, and natural disasters.
• The reduction or elimination of government subsidies may adversely affect our business and financial condition. These subsidies are crucial for the economic viability of our solar parks.
• As of April 2024, we have approximately 8 operating parks, totaling 44 MWp and $16 million in annual revenues.
• The European Commission's RePowerEU plan aims to double solar photovoltaic capacity by 2025, increasing dependency on external raw materials.
• We may issue up to 8,000,000 shares under the 2023 Plan, potentially diluting existing ownership interests.
• The solar industry might experience structural imbalances between supply and demand, affecting pricing and competition. This could significantly impact profitability for project developers and module manufacturers.
• Cyber-attacks targeting energy projects have increased, posing risks to operations and potentially leading to significant financial losses.
• New regulations in Poland impose obligations on energy companies, potentially impacting revenues from power generation and sales during 2023.
• The company relies on a limited number of suppliers for solar components, making it vulnerable to shortages and price fluctuations.
• The acquisition of renewable energy facilities is subject to substantial risk, impacting future growth.
• Shortages in the supply of silicon could adversely affect the availability and cost of solar photovoltaic modules. This may lead to increased costs and reduced margins for the company.
• The Inflation Reduction Act extends investment tax credits, but uncertainties regarding eligibility could impact available tax benefits for solar projects.
• The ongoing invasion of Ukraine may disrupt operations and lead to significant volatility in commodity prices and supply chains.
• Development of solar power projects requires significant management attention and may not be successful. Delays in obtaining permits and approvals could materially affect our operations.
• We identified material weaknesses in our internal control over financial reporting as of December 31, 2023, which could undermine investor confidence.
• Recent increases in inflation could adversely affect our business and operational costs.
• The company faces risks related to compliance with diverse laws and regulations across multiple jurisdictions, which could result in fines or operational disruptions.
• We cannot estimate costs or time for our remediation plan, which may prolong existing control deficiencies.
• The lingering effects of the COVID-19 pandemic are causing supply constraints, resulting in increased costs for solar modules and inverters. Continued constraints could adversely affect the solar business.
• The timing gap between investments in solar parks and revenue generation could strain liquidity. Delays in project completion may adversely impact profitability and cash flow.
• Our certificate of incorporation limits stockholder ability to bring claims in favorable judicial forums, potentially affecting investor rights.