Risk Factors Update Summary

• Net loss increased from $59 million in 2022 to $152 million in 2023.
• The California Consumer Privacy Act of 2018 was amended by the California Privacy Rights Act of 2020, expanding residents' rights and increasing compliance costs.
• Accumulated deficit rose from approximately $297 million to $449 million.
• Future capital requirements may vary significantly, impacting operations and prospects.
• Several state privacy laws took effect in 2023, including the Colorado Privacy Act, Connecticut Personal Data Privacy Act, and Utah Consumer Privacy Act.
• Compliance with GDPR, U.K. GDPR, and national data protection laws is crucial to avoid fines and penalties.
• Cash, cash equivalents, and marketable securities decreased from $348 million to $704 million.
• Loss of key personnel may impact operations and product development.
• The U.K. GDPR, effective from January 1, 2021, imposes strict rules on personal data transfer out of the EU.
• Market volatility, including factors like global pandemics and economic conditions, may impact stock prices.
• Raised $100 million in February 2023, extending funding into the second half of 2027.
• Increased number of employees to 102 by December 31, 2022.
• The EU-U.S. Data Privacy Shield Framework was declared invalid, leading to increased compliance obligations for data transfers.
• ESG factors may impose additional costs and risks, impacting business operations and financial condition.