Risk Factors Update Summary

• Risks related to the proposed merger with Thoma Bravo were added, including potential adverse effects and termination fees.
• Obligations related to data privacy and security have increased significantly, requiring significant resources.
• A material weakness in internal control over financial reporting was identified, impacting financial results.
• Numerous U.S. states have enacted comprehensive privacy laws impacting business operations and potential fines.
• Revenue increased by $16 million in 2023 compared to 2022, with potential impacts on future growth.
• The company faces increased scrutiny from regulators and potential legal consequences for data privacy violations.
• Accumulated deficit increased to $449 million as of December 31, 2023, from $402 million in 2022.
• The use of AI/ML presents privacy and security risks, impacting operations, legal liability, and reputation.
• Changes in executive leadership and senior management may impact operations and strategic planning.
• Failure to comply with privacy laws could result in severe penalties, reputational harm, and slow adoption of AI.
• A $1 million increase in restructuring charges associated with the 2022 Strategic Realignment program.
• The company's ability to use net operating losses is subject to limitations and may impact financial results.
• A $1 million increase in revenue from 2022 to 2023, potentially affecting future growth.
• Changes in tax laws may affect the deductibility of research and experimental expenses, impacting financial results.