Risk Factors Update Summary

• The company faces potential delisting from Nasdaq if the closing bid price remains below $1.00.
• Added risks related to potential strategic transactions, including costs, complexity, and negative consequences. This may significantly impact cash flow and future distributions.
• Increased accumulated deficit from $217 million to $256 million, indicating a significant financial burden.
• Executive officers, directors, and affiliates collectively hold approximately 11% of outstanding voting stock.
• Delisting could lead to trading on OTC markets, limiting liquidity and potentially affecting stock value.
• Cash decreased from $66 million to $33 million, potentially impacting operations and strategic plans.
• Reduction in full-time employees from 45 to 13, indicating a significant organizational restructuring.
• Potential delisting from Nasdaq due to non-compliance with the Minimum Bid Price Requirement, impacting stock liquidity.
• Risks related to intellectual property rights, supply chain disruptions, and geopolitical instability affecting operations and growth.
• Risks related to tax laws changes and ownership changes impacting net operating losses and future tax liabilities.