Risk Factors Update Summary

• Hymas and George Gu now beneficially own 37.8% of total outstanding shares, approximately 92,647,986 shares.
• Management raised concerns about the ability to continue as a going concern.
• The company no longer qualifies as a controlled company under Nasdaq rules as of December 20, 2023.
• Former controlling shareholders and affiliates may significantly influence matters requiring stockholder approval.
• Settlement with SEC requiring payment of $25.0 million. This settlement poses financial risk.
• The number of shares of Class A common stock decreased from approximately 43 million to 11 million.
• Settlement with SEC includes a civil monetary penalty of $25.0 million paid in installments.
• Former controlling shareholders distributed 52.8 million shares, losing majority control.
• Gross revenue adjusted from $1.07 billion to $1.235 billion, impacting financial reporting obligations.
• Company faced delisting from Nasdaq due to non-compliance with filing rules and minimum bid price.
• Restructuring plan may result in unexpected costs, disruptions, and difficulties in achieving anticipated savings.
• Litigation risks include derivative lawsuits, SEC investigations, and potential adverse impacts on financial results.
• Compliance with privacy laws like GDPR and CCPA may increase costs and liabilities.