Risk Factors Update Summary

• We incurred net losses of $69.4 million in fiscal year 2024, compared to $99.7 million in 2023. This change might result in increased scrutiny from investors regarding profitability.
• Global tax developments may significantly impact our business, cash flows, or financial results, including new provisions from the Inflation Reduction Act.
• Our loan security agreement provides a first-priority lien against substantially all assets, limiting operational flexibility. This change could adversely affect our financial condition.
• Changes in laws regarding data protection could increase compliance costs and expose us to significant penalties. This evolving regulatory landscape may adversely affect our operations and financial results.
• Our ability to raise capital may be limited; failure to do so could hinder growth and execution of our business strategy.
• We have an AI strategy to embed industry-specific AI throughout our platform, which may present risks and challenges. If competitors adopt AI faster, our market position could weaken.
• As of 12/2024, we had 599 shares of common stock authorized but unissued, down from 604 shares previously.
• Future offerings of debt or equity securities may materially adversely affect the market price of our common stock. This could lead to decreased investor confidence and stockholder value.
• The pandemic and public health crises may adversely affect demand and operations, leading to economic downturns and increased market volatility.
• The trading prices for our common stock have been highly volatile, influenced by circumstances unrelated to our operating performance.