Risk Factors Update Summary

• The company's ability to utilize net operating loss carryforwards may be substantially limited due to an "ownership change" under Section 382 of the Internal Revenue Code. This change might result in a significant reduction in tax benefits.
• Failure to remediate identified material weaknesses in internal controls over financial reporting could impact accurate and timely financial reporting. This could lead to potential misstatements and regulatory issues.
• The company's financial results and business may be adversely affected by sustained inflation and increased interest rates. This could impact profitability and growth strategies.
• A decline in lithium prices may increase competition from traditional lithium-ion batteries, potentially affecting demand for the company's products.
• The company's success depends on key personnel, and the loss of any principal member of the management team could adversely affect business operations.
• Cybersecurity breaches, including attempts to gain unauthorized access to IT systems, could impact sales, operations, and customer trust. This poses a risk to the company's reputation and financial stability.
• Supply chain issues, including disruptions caused by global challenges like transportation delays and raw material shortages, could adversely affect operations and financial results.