Risk Factors Update Summary

• The company's net losses increased significantly from $22.2 million in 2021 to $51.8 million in 2023.
• A small number of stockholders now have control over the Company, potentially impacting decision-making.
• Increased reliance on cloud-based services and remote access to information systems increases cybersecurity risks.
• The accumulated deficit rose from $285.8 million as of December 31, 2023.
• Debt financing may involve restrictive covenants, hindering future capital acquisition and business opportunities.
• Potential theft, unauthorized access, or loss of data could adversely impact sales and reputation.
• The company experienced significant leadership changes in 2023, appointing a new CFO in March and a new CEO in September.
• Failure to comply with data protection laws, such as GDPR, could result in penalties up to 4% of worldwide annual revenues.
• Compromises in the security of information systems could lead to operational interruptions.
• Cybersecurity incidents could lead to negative publicity, liability exposure, and decreased consumer confidence.
• Changes in tax laws could impact the Company's effective tax rate and future operating results.
• The Company's ability to generate cash flow and distribute dividends may be limited by its organizational structure.
• The Company faces risks related to the employment of hospitality personnel and third-party services.