Risk Factors Update Summary

• Russia's invasion of Ukraine and the Israel Hamas War exacerbate existing business risks. This change might result in increased operational challenges and financial instability.
• There is substantial doubt about our ability to continue as a going concern. As of March 31, 2024, we had an accumulated deficit of $238.7 million.
• The proposed PPV Spin-Out may result in a special dividend of approximately 19% of PPVOne's common stock to stockholders.
• PodcastOne generates a substantial portion of its revenues from podcast and advertising sales. If it fails to grow, financial results may be adversely affected.
• CPS is subject to data security and privacy risks that could negatively affect our results, operations, or reputation.
• Our outstanding consolidated indebtedness as of March 31, 2024, was $11.8 million, net of fees. This could impact our ability to secure future financing.
• Future sales and issuances of common stock could result in substantial dilution for existing stockholders, impacting stock price.
• We are subject to cybersecurity risks, especially heightened due to geopolitical tensions. This could disrupt operations and lead to significant financial exposure.
• CPS faces intense competition from numerous competitors, including Alibaba Group, eBay, and Temu, affecting market position.
• Our online festivals and events growth strategy relies on maintaining popularity, which is challenging amid changing consumer preferences.