Risk Factors Update Summary

• The company identified four material weaknesses in internal control over financial reporting, up from three in the previous year.
• Uncertainty in credit markets and increasing interest rates could negatively impact customers' and vendors' ability to finance operations.
• The company's ability to attract and retain qualified personnel may be negatively affected by the ongoing strategic alternative review process.
• Changes in executive titles and roles may create additional value for stockholders.
• The strategic review process may require significant resources and expenses, potentially causing disruption and volatility in stock price.
• The company has a pending project in Russia that could result in a $4.0 million reversal of receivables if tighter sanctions or restrictions are imposed.
• The company's ability to obtain financing or refinancing may be negatively impacted by disruptions in the credit markets and increasing interest rates.