Risk Factors Update Summary

• Delisting could harm capital raising through alternative financing sources. This might result in difficulty raising capital.
• The company may not have sufficient cash flow to fund conversions of unsecured convertible notes, potentially impacting financial condition. This could result in a fundamental change in the ability to continue as a going concern.
• Management is implementing remediation plans to address control deficiencies in IT systems.
• Complex Networks disposed of a business and is optimizing its balance sheet. This could result in significant asset write-down charges.
• Operating losses incurred in the past and potential future losses may impact profitability. The company may not maintain profitability in the future.
• Failure to list on a national securities exchange could trigger a fundamental change. This could lead to repurchasing Notes.
• The company reduced expenses by approximately 16% through workforce reduction after the Disposition.
• Significant decrease in goodwill from $91.6 million to $57.3 million and intangible assets from $121.3 million to $26.7 million.
• The company has experienced a significant decrease in total revenue, with a 26% decrease from 2022 to 2023.
• The company may incur significant expenses or unanticipated costs related to acquisitions and strategic initiatives.
• Increased inflation due to supply constraints and federal stimulus funding may affect interest rates. This could impact market price.
• The company incurred significant costs for remediation efforts and recorded material impairment charges in 2022.
• Potential delisting from Nasdaq could subject common stock to "penny stock" rules. This may increase transaction costs.
• The company faces risks related to integrating acquisitions, which may disrupt operations and harm financial results.
• Sales of a substantial number of shares could occur at any time. This could reduce the market price.
• The company implemented a restructuring plan to enable individual brands to operate autonomously, impacting growth prospects.
• Failure to list on a national securities exchange could subject the company to state regulation. This may impact the ability to offer securities.
• The company may face challenges in retaining key personnel, potentially impacting the execution of plans and strategies.
• The company is subject to evolving U.S. and foreign laws and regulations. Changes could result in claims, increased costs, or harm to the business.
• The company's historical financial results have fluctuated and may not be reliable indicators of future performance.