Risk Factors Update Summary

• Added text regarding accumulated deficit of $3.9 billion as of December 31, 2023.
• The loss of Fuel Cell Net Energy Metering (FC NEM) may impact sales in California.
• Lengthy sales and installation cycles may range from nine to twelve months or more, impacting revenue recognition.
• Ability to use deferred tax assets may be limited, subject to higher tax liability.
• Net operating loss carryforwards limitations could hinder offsetting future taxable income.
• Financing challenges could negatively impact revenue and business if funding is not secured promptly.
• Two customers accounted for 37% of total revenue in 2023, down from 38% in 2022.
• Mentioned the need to continue to improve the useful life of fuel cell technology and reduce warranty servicing costs.
• Delays in manufacturing equipment delivery may expose the company to new laws and regulations.
• Changes in stock ownership factors could result in ownership changes, impacting tax benefits.
• Failure to reduce Energy Server costs may hinder profitability, affecting business and prospects.
• Expansion into new markets while maintaining margins requires continued cost reduction efforts.
• Highlighted the potential impact of quarterly fluctuations in financial condition and results of operations.
• Noted the challenges in efficiently operating the business during growth to meet product demands.
• Debt agreements may limit investment flexibility, impacting competitive pressures and growth plans.
• Inability to generate sufficient cash for debt obligations could lead to alternative financing plans.
• Discussed the importance of scaling quality control with the increase in production to maintain standards.
• Data security breaches and cyberattacks could compromise intellectual property, causing significant damage.
• Added information on the need to effectively manage capital expenditures and control costs during expansion.
• Mentioned the reliance on governmental incentive programs for business growth and revenue increase.
• Increased scrutiny on ESG practices could result in additional costs and harm brand reputation.