Risk Factors Update Summary

• Loss before income tax increased by $2,757 from $9,547 to $12,304.
• Enhanced cybersecurity measures include a multilayer approach, third-party assessments, and quarterly risk assessments.
• Issued Senior Secured 15% Original Issue Discount Convertible Promissory Notes up to $5,200,000, resulting in gross proceeds of up to $4,420,000.
• Revenue concentration shifted significantly from the top customer accounting for 77% in 2022 to 23% in 2023.
• Introduced Series A Super Voting Preferred Stock with 6,000 shares outstanding, each entitling 1,000 votes.
• Significant investments made to comply with regulatory standards, including NERC CIP and Sarbanes-Oxley Act.
• The number of options granted increased from 186,500 to 514,000, a significant rise.
• Net loss per common share increased from $0 to $2.
• The top five customers' revenue concentration decreased from 73% in 2022 to 77% in 2023.
• The Parent company's ownership decreased from approximately 61% to 59.18% of common stock.
• The number of unvested options decreased from 696,135 to 377,4,000.
• Cybersecurity team continuously assesses threats, engages external expertise, and conducts regular simulations.
• The weighted average grant date fair value of options granted increased from $0.25 to $0.53.
• Added warrants to purchase shares equal to 50% of the face value of Notes divided by the volume weighted average price.
• Weighted average shares outstanding used in per common share computations decreased by 3,512 from 36,740 to 33,228.
• The number of shares outstanding increased from 41,709,649 to 53,909,531.
• The unrecognized share-based compensation expense decreased from $121,490 to $1.7 million.
• Included a provision limiting stockholder ownership to 4.99% (or 9.99% with notice) after exercising warrants.
• The audit fees increased from $165,875 to $313,500, while administrative fees decreased from $28,500 to $10,000.
• Revenue from Software Services increased by $1 million or 8% to $15.6 million for the year.
• Balance at December 31, 2022, increased by $6,000 from $16,135 to $22,135.
• Introduced a clause allowing cashless exercise of warrants instead of cash payment for shares.
• Revenue from Managed Services and Support decreased by $0.5 million, or 31%, to $1.2 million.
• The number of shares beneficially owned by the Chief Executive Officer increased from 750 to 21,692.
• Revenue decreased by $12,683 from $45,886 to $33,203.
• Operating profit by Operating Segment decreased by $3,621 from $5,757 to $1,136.
• Top 5 customers' revenue distribution changed, with Customer 1 increasing to 52% of revenue.
• Cost of Revenue from Software Services increased by $1.1 million, or 127%, to $20.2 million.
• Customer relationships intangible asset decreased by $2,523 from $8,667 to $6,144.