Risk Factors Update Summary

• Increased inventory levels may lead to write-downs and impact financial performance. Recorded significant charges due to excess and obsolete inventory in Q4 2023.
• The company may suffer delays introducing new products due to parts unavailability or labor shortages.
• The company's financial and accounting risks include potential insufficiency of cash for future working capital and investments.
• Reliance on third-party manufacturers may result in delays, quality issues, and reduced control over costs. Delays or quality problems could harm reputation and relationships.
• The company may face disruptions in supply chains, leading to loss or delay of revenue.
• The company may experience delays in the manufacture and supply of products due to component supply interruptions.
• The company may face challenges in logistics, impacting its ability to procure required components and fulfill sales orders.
• Shift of manufacturing from China to Vietnam may mitigate geopolitical risks and enhance operations.
• Competition in FWB and Enterprise Wi-Fi markets is intense and subject to rapid technological change. Expect competition to persist, intensify, and increase in the future.
• The company relies on third-party manufacturers predominantly outside the U.S., exposing it to international risks.
• The company may experience disruptions and delays in its supply chain, leading to increased inventory carrying costs.
• Ownership stake decreased from 53% to 51%, potentially impacting decision-making and control.
• Tax examinations now cover years up to 2020, increasing regulatory uncertainty and compliance risks.