Risk Factors Update Summary

• The company completed a debt restructuring transaction, including a $25.0 million delayed draw new money financing.
• Material weaknesses in internal control over financial reporting may result in costly corrective measures.
• The company recognized impairments of goodwill and other intangible assets, totaling $289.5 million in 2023.
• Reduced number of shares reserved for future issuance under equity incentive plans from 92 million to 0.
• Preferred Equityholders owning over 50% of common stock votes may significantly influence company decisions.
• The company experienced elevated rates of attrition in senior management during 2022 and 2021.
• Series B Preferred Stock stapled to 2L Notes provides voting rights, diluting existing stockholders' interests.
• Potential dilution and adverse effects on stock price from conversion of 2L Notes into common stock.
• The company may need to amend the 2021 Equity Incentive Plan to increase the share reserve.
• Reverse Stock Split may affect liquidity of common stock if market price doesn't generate interest.
• Redemption of Series A Senior Preferred Stock may not be economically favorable, leading to adverse consequences.
• The company's net operating losses include federal NOLs of $77.9 million and state NOLs of $39.5 million.
• The company may experience an additional "ownership change" impacting its net operating losses.
• The company identified material weaknesses related to the income tax provision in its internal controls.