Risk Factors Update Summary

• Negative cash flows from operating activities increased significantly from $42.6 million in 2022 to $94.4 million in 2023.
• Operating covenants and restrictions from Loan Agreement with GM and convertible note arrangement with KDT could impact financial flexibility.
• Worldwide economic conditions could disrupt operations, affecting ability to attain goals. This may have a material adverse effect.
• Accumulated deficit increased from $627 million to $673 million as of December 31, 2023.
• Revenue from top ten direct customers increased from 72% in 2022 to 80% in 2023.
• Increased issued U.S. patents from 59 to 75 and foreign patents from 196 to 358.
• Planned capital expenditures for 2024 increased from $125 million to $0 million.
• Total revenue from foreign sales increased from $66.4 million in 2022 to $87.7 million in 2023.
• Initiated patent infringement actions in 2023, ongoing proceedings, and invalidation actions against Korean patents.
• Total revenue from top two customers increased from 54% in 2022 to 60% in 2023.
• Increased shares of common stock issued from 1,679,060 to 6,791,607 in private and underwritten offerings.
• Anticipated extended construction timeframe for second manufacturing facility and increased research and development expenses in 2024.
• Increased control by executive officers, directors, and principal stockholders from 25% to 23%.
• Increased general and administrative expenses in 2024 and long term, with absolute dollars increasing.