Risk Factors Update Summary

• The company no longer qualifies as a controlled company under Nasdaq rules as of December 20, 2023.
• Former controlling shareholders may beneficially own 37.8% of outstanding shares, approximately 92,647,986 shares.
• Management raised concerns about the ability to continue as a going concern.
• Settlement with SEC includes a civil monetary penalty of $25.0 million paid in installments.
• The number of shares of Class A common stock decreased from approximately 43 million to 11 million.
• Settlement with SEC requiring payment of $25.0 million. This settlement poses financial risk.
• Gross revenue adjusted from $1.07 billion to $1.235 billion, impacting financial reporting obligations.
• Company may face delisting from Nasdaq due to non-compliance with minimum bid price requirement.
• Former controlling shareholders no longer own a majority interest, affecting control and influence.
• Company underwent a restructuring plan to improve operational effectiveness and cost reduction.
• Received notice of non-compliance with Nasdaq Listing Rule 5550(a)(2) due to stock price below $1.00.
• Material weaknesses in internal controls over financial reporting identified and not yet fully remediated.
• Legal proceedings and investigations may impact the company's financial condition and results of operations.
• Impairment of investment in Raven SR due to financial challenges, liquidity, and access to capital.
• Risks related to intellectual property co-ownership with affiliates and potential negative impacts on business operations.
• Compliance with privacy laws like GDPR and CCPA may increase costs and potential liability.
• Risks associated with inventory management, including inventory obsolescence and excess inventory.