Risk Factors Update Summary

• Cooperation with FTC and SEC investigations, including a subpoena from the SEC in February 2024. This could lead to significant penalties or claims.
• Incurred net losses increased from $86.4 million in 2022 to $106.3 million in 2023.
• Changes in privacy laws, such as the CCPA and CPRA, may impact compliance costs and operations.
• Increase in gross federal net operating losses from $124.3 million to $142.4 million in 2023.
• Accumulated deficit rose from $192 million to $298 million as of December 31, 2023.
• Issued U.S. patents increased from 8 to 24, and issued foreign patents increased from 13 to 24.
• Loss of emerging growth company status and smaller reporting company status, impacting reporting requirements.
• Sales to government entities accounted for 4% of revenue in 2023, up from 1% in 2022.
• Increased focus on cybersecurity risks due to evolving threats and potential breaches.
• Change in accounting treatment of public warrants and Founder Shares, leading to potential material gains or losses.
• Sales force personnel increased from 97 as of December 31, 2022, to 139 as of December 31, 2023.
• Implementation of controls related to financial reporting and disclosures to address material weaknesses.
• Potential impact of future sales of common stock on market price due to expired lock-up restrictions.
• Loss of emerging growth company status may result in increased costs and resource burdens.