Risk Factors Update Summary

• The company reported a significant increase in cash and cash equivalents from $79,812 to $140,615. This change might result in improved liquidity and operational flexibility.
• Liquidity increased by $77 million during fiscal 2024, primarily due to cash provided by operations.
• We may experience increases in construction costs, including higher costs of materials and labor due to inflation. This change might result in significant operational impacts.
• Total liquidity rose from $92 million to $169 million, enhancing financial stability for the company.
• The ABL Facility's borrowing base increased from $67 million to $90 million, enhancing financial capacity for operations and investments.
• The customer filed a second amended counterclaim, increasing alleged damages to a range of $69.6 million to $97.9 million, including $46.9 million for unspecified "other damages."
• The definition of “NOLV” is amended to include a percentage of Equipment cost. This change might result in more accurate asset valuations.
• We filed a lien for $5.6 million due to outstanding balances, indicating potential liquidity issues.
• A material security breach could lead to costs in investigation and remediation, potentially resulting in significant financial harm.
• The ABL Facility's maximum borrowings increased from $90 million to $115 million, improving borrowing capacity.
• Remaining performance obligations rose from $459 million to $1 billion, indicating strong future revenue potential and contract backlog.
• An amendment fee of $20,000 is now required for the Credit Agreement. This change might impact cash flow management.
• We recognized $5.0 million, $1.3 million, and $0.6 million of expense for cash-settled restricted stock units in fiscal years 2024, 2023, and 2022, respectively.
• The company reported a net loss of $24.98 million for fiscal 2024, compared to $52.36 million in fiscal 2023.
• As of June 30, 2024, our borrowing base was $60.9 million, down from $67.0 million in 2023, indicating reduced liquidity.
• The company recognized a goodwill impairment risk for two reporting units with a combined total of $16 million, which may affect future financial performance.
• The company reported a net loss of $31,224, which could impact investor confidence and stock performance moving forward.
• Our trial regarding the breach of contract case is scheduled for September 2023, which could materially affect financial results.
• The “Reset Date” is defined as January 1, 2024, affecting future appraisals and valuations.
• The company may incur significant costs to protect against cybersecurity threats, impacting financial results and operational stability.
• Goodwill impairment testing indicated two reporting units at higher risk, totaling $20 million as of June 30, 2024.
• We believe we have substantial legal defenses against claims, but litigation outcomes are inherently unpredictable, potentially impacting financial position.
• We expect to recognize approximately 47% of our total backlog reported as revenue within fiscal 2025, affecting future revenue projections.