Risk Factors Update Summary

• Failure to comply with Nasdaq listing requirements could lead to delisting, impacting liquidity and market price.
• Our recent launch of new cash pay initiatives for Truvaga and TAC-STIM branded products may require significant investment. This could result in lost sales and harm our business.
• Our commercialization strategy may expose us to increased billing, cash application, and credit risks. This could result in lost sales and harm our business.
• Launching next generation app-enabled consumer product under Truvaga brand in 2024. This introduces a significant dependency on a third-party vendor for application development and management.
• We will be required to obtain additional funds to support commercial efforts for our VNS platform technology. This might result in increased financial strain.
• We may be subject to increased bad debt expenses due to bad debt expenses potentially impacting our results of operations and liquidity.
• Dependence on third-party software developers for the design and development of software for the new product. Failure to deliver required quantities or services could impede commercialization.
• Identified material weakness in internal control over financial reporting, affecting accurate financial reporting.
• An increasing portion of our 2024 sales will be made through Lovell's contract vehicles, concentrating our customer base further. This could adversely affect our business.
• Limited experience in selling app-enabled consumer wellness products, impacting the ability to forecast demand and inventory requirements.
• We intend to expand our direct-to-consumer business channel through ecommerce websites, increasing advertising and promotional activities in 2024. This will require significant investment.
• Material weakness in internal control over financial reporting related to payment security controls.
• Stock price volatility due to factors like product announcements, regulatory actions, and economic conditions.
• Reliance on third-party vendors for data storage and analytics, including cloud storage solutions, for the new Truvaga app-enabled consumer product. Any interruption or termination could significantly affect the product launch.
• We may face delays in payments by customers or disagreements with Lovell, impacting our results of operations and financial condition.
• Regulatory requirements for prescription gammaCore therapy and general wellness products, including expanding therapeutic indications, compliance, and marketing activities.
• Significant influence by principal stockholders and management owning approximately 24.4% of outstanding common stock.
• Risks related to intellectual property, including delays or failures in product development initiatives and potential lawsuits to protect proprietary technologies.
• Cybersecurity risk management strategy development and oversight by the Board of Directors.
• Cybersecurity risks, including data breaches, phishing scams, and cyberattacks, could disrupt operations and expose confidential information, leading to financial losses and reputational harm.
• Legal proceedings updates including dismissal of certain cases and ongoing defense in others.