Risk Factors Update Summary

• The merger with Redbox included the assumption of $359.9 million of debt.
• The company's common stock trading below $5 subjects it to "penny stock rules," impacting liquidity and marketability.
• Operating results post-acquisition have not met expectations, leading to defaults and terminations.
• The company faces delisting from Nasdaq, with a scheduled appeal in May 2024.
• Management is implementing cost and capital expenditure reductions due to underperformance.
• The company sold an aggregate of 1,200,703 shares of Series A Preferred Stock.
• The company assumed approximately $366.3 million of Redbox indebtedness post-merger.
• The company's total liabilities decreased from approximately $920 million to $796 million.
• The level of indebtedness assumed in the Redbox acquisition has materially adversely affected the company.
• The company received a delisting notice for its securities from Nasdaq in March 2024.
• The company may face challenges in resolving disputes satisfactorily, potentially causing material harm.
• The company's ability to continue as a going concern is in doubt, impacting stockholders and debt holders.