Risk Factors Update Summary

• Material gaps identified in risk management for cryptocurrencies include: high volatility, regulatory changes, and cybersecurity.
• Expansion into NFT gaming, StaaS, and solo-staking ceased, impacting revenue and operations.
• Changes made to address these gaps include revising investment strategies, enhancing cybersecurity tools, and providing specialized training.
• Risks associated with safeguarding digital assets include security breaches, third-party risks, regulatory compliance, and operational risks.
• User fluctuation across jurisdictions affects revenue and growth, necessitating continuous innovation and value.
• Risks related to holding cryptocurrencies include extreme volatility, legal uncertainties, and regulatory interventions.
• Concentrated ownership by chairman may influence stockholder approval and delay change in control.
• Failure to maintain active user base could significantly impact financial performance and growth.
• Digital assets stored with third-party custodian Matrixport, with $50 million insurance coverage, but no insurance policies for the company's digital assets.
• Adoption of fresh start accounting post-Chapter 11 emergence may impact comparability of financial statements.
• Holding $7,123,300 in ETH as of December 31, 2023, exposes the company to cryptocurrency volatility.
• Holding $0.297 million in USDC and $0.09 million in USDT as of December 31, 2023, for stablecoin stability.