Risk Factors Update Summary

• The merger with Redbox included the assumption of $359.9 million of debt.
• Addition of penny stock rules disclosure due to common stock trading below $5, impacting liquidity.
• Operating results post-acquisition have not met expectations, leading to an increasing number of defaults and terminations.
• Delisting notice received in March 2024, with an appeal scheduled in May 2024.
• The company assumed approximately $366.3 million of Redbox indebtedness, impacting financial position.
• Suspension of dividends on Series A Preferred Stock due to lack of surplus.
• Failure to declare and pay dividends for 18 consecutive months could lead to significant consequences.
• The company may need to seek protection under bankruptcy laws due to financial obligations.
• Impairment charge of $380.8 million related to underperformance of Redbox could adversely affect the business.
• Limited resources and attention due to multiple committees may divert management focus from day-to-day operations.