Risk Factors Update Summary

• Inflation could adversely affect business and financial results, with increasing costs of raw materials and labor.
• Convertible preferred stock dividends accrue at a rate of 9% per annum.
• Increased mortgage interest rates negatively impacted net new orders and cancellation rates.
• Convertible preferred stock is convertible into Class A common stock based on average sales price.
• Labor shortages may worsen due to stringent immigration eligibility requirements in Florida, impacting operations.
• Convertible preferred stock redemption could lead to cash consideration equal to initial liquidation value.
• Increased energy, transportation, and raw material costs could have a material adverse effect on operations.
• Increased utilization of AI solutions may lead to higher operational and security expenses.
• The CEO's significant control over voting power may lead to conflicts of interest and affect stock price.
• Business success depends on maintaining the Dream Finders brand reputation for quality and integrity.
• Failure to meet financial covenants could result in default under financing agreements, limiting financing options.
• Unfavorable media related to the industry could impact liquidity, financial condition, and results.
• Exclusion from stock indices could reduce investment and make Class A common stock less attractive.
• Global economic and political instability could adversely affect business strategies and growth opportunities.