Risk Factors Update Summary

• Delisting could harm capital raising through alternative sources. This could result in loss of confidence by investors.
• The company may not have sufficient cash flow to fund conversions of unsecured convertible notes in cash. This could impact financial condition.
• Management is implementing plans to address control deficiencies, including centralizing IT functions and enhancing oversight.
• Disposed of a business and optimized balance sheet, evaluating assets for potential sale.
• Introduced new content or services at different balance sheet values, potentially leading to asset write-down charges.
• Failure to list on Nasdaq could trigger a fundamental change, requiring repurchase of Notes.
• Operating losses incurred in the past and potential future losses may hinder profitability.
• 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 recorded a non-cash goodwill impairment charge of $102.3 million for the year-ended December 31, 2023.
• Implemented a workforce reduction plan of approximately 16%, aiming for more agile operations.
• Increased inflation due to supply constraints and macroeconomic shifts may affect interest rates.
• Revenue decreased by 26% from 2022 to 2023, indicating a significant decline in financial performance.
• Accumulated deficit increased to $611.8 million as of December 31, 2023, reflecting ongoing financial challenges.
• The company repaid approximately $30.9 million of Notes on March 7, 2024, reducing outstanding Notes to approximately $119.1 million.
• Potential delisting from Nasdaq could subject common stock to "penny stock" rules.
• The company may issue additional shares, increasing dilution risk, with the potential to impact stock price.
• Net loss from continuing operations was $60.3 million for the year ended December 31, 2023, indicating financial struggles.
• Increased sales of Class A common stock could reduce market price and increase transaction costs.
• The company's ability to use net operating loss carryforwards may be limited, impacting future tax benefits.
• Failure to attract, retain, and motivate key personnel could harm business operations and growth.
• Failure to list on national securities exchange may subject the company to state regulation.
• Decreased expenses since 2022 may not be sufficient to offset revenue declines and financial challenges.
• Emerging growth company status may impact attractiveness to investors and comparability with other companies.
• Failure to comply with Nasdaq's listing requirements may lead to delisting, impacting stock liquidity.