Risk Factors Update Summary

• We incurred losses from operations of $46.4 million in 2024 and $35.5 million in 2023. This trend may continue, raising concerns about our financial stability.
• New provisions limit minority stockholders' ability to elect directors, potentially impacting governance significantly.
• Sales to Leidos Holdings, Inc. accounted for approximately 40% of net revenues, posing significant risk if lost.
• We have substantial doubt about our ability to continue as a going concern due to inadequate liquidity for the next approximately ninety days.
• We cannot guarantee that our patents will provide meaningful protection, affecting our business and financial condition.
• The Board can issue shares without stockholder approval, risking dilution for hostile acquirers.
• We received a delinquency notification from Nasdaq due to non-compliance with a minimum market capitalization of $50 million.
• We do not anticipate paying cash dividends on our Class A Common Stock, limiting returns to capital appreciation only.
• Our accumulated deficit reached $104.5 million as of September 30, 2024, indicating ongoing financial challenges.
• The company identified material weaknesses in internal control over financial reporting, potentially affecting financial accuracy.
• Special meetings can only be called by select executives, delaying stockholder actions and proposals.
• We may fail to successfully acquire or integrate new businesses, which could harm our financial results and growth prospects.
• We will remain an emerging growth company until we exceed $1.235 billion in annual gross revenue or $700 million in market value.
• The Amendment to the Warrant Agreement mandates arbitration for disputes, potentially limiting legal recourse for investors.
• Inflation and unfavorable global economic conditions could weaken demand for products, impacting financial results significantly.
• The markets for our 5G semiconductor products are still developing, creating uncertainty about future revenue and market acceptance.
• A supermajority vote is required to amend certain Charter provisions, making changes more difficult.
• The reliance on offshore manufacturers exposes the company to supply chain disruptions and increased production costs.
• The company may redeem Public Warrants at $0.01, potentially disadvantaging warrant holders significantly.
• The potential for product defects could lead to substantial liability, including costs for recalls and damages.