Risk Factors Update Summary

• The UFLPA creates a rebuttable presumption that goods made in certain regions are produced with forced labor, complicating our import processes.
• The ongoing conflict between Ukraine and Russia, and tensions in the Middle East may disrupt economies. This change might result in increased operational risks and financial instability.
• We may suffer delays introducing products due to parts unavailability or labor shortages, resulting in loss or delay of revenue.
• The ongoing war in the Middle East is now highlighted as a risk to business operations.
• Our cash requirements may necessitate seeking additional debt or equity financing, potentially on unfavorable terms. This change could impact our financial flexibility and operational strategies.
• Our third-party manufacturers predominantly operate outside the U.S., exposing us to risks from tariffs and trade barriers, potentially increasing costs.
• Our financing requirements may not be met, necessitating additional debt or equity financing, impacting our operations and financial condition.
• The regulatory environment is now described as globally fluid, impacting compliance and operations.
• A substantial portion of our product portfolio relies on unlicensed RF spectrum; its unavailability could decrease revenues. This change might lead to significant revenue losses if spectrum becomes restricted.
• We rely on third-party logistics and warehousing providers, and any disruption could harm our reputation and result in lost sales.
• Tax examinations by authorities now extend to 2020, increasing potential liabilities for prior years.
• ESG matters could negatively impact our reputation and business, reflecting increasing regulatory scrutiny.
• We face risks related to health epidemics, which could disrupt manufacturing and sales operations. This change highlights vulnerabilities that may affect overall business continuity and revenue generation.
• Vector Capital's ownership has decreased from 53% to 51%, potentially affecting shareholder influence.
• Our gross margin may decline due to competitive pricing pressures and demand fluctuations. This change indicates potential challenges in maintaining profitability amidst market volatility.