Risk Factors Update Summary

• Incurred net losses increased significantly from $154.7 million in 2022 to $1,006.3 million in 2023.
• Issuance of common stock may dilute ownership interest, depress stock price, and increase publicly traded shares.
• Net cash used in operating activities rose from $63.1 million in 2022 to $179.2 million in 2023.
• Issued warrants for 382,436 Preferred D shares exercisable into 1,438,009 common shares.
• Significant additional capital needed for operations may result in substantial stockholder dilution.
• Accumulated deficit increased from $305.1 million in 2022 to $862.2 million in 2023.
• Completed reverse stock splits to maintain NASDAQ compliance, impacting outstanding shares and market price.
• Potential significant dilution to stockholders due to commitments to issue common stock and convertible securities.
• Issuance of additional common stock under equity incentive plan may dilute stockholder interest significantly.
• Bollinger goodwill impairment of $64.0 million and other write-downs adversely affected fiscal 2023 results.
• Exclusive forum provision for stockholder litigation may limit stockholders' ability to obtain favorable dispute forums.
• Changes in tax laws may materially affect business, financial condition, and operating results.
• Difficulty in obtaining regulatory approvals for quality cars may impact business operations.
• Compliance with evolving regulations for electric vehicles may be burdensome, time-consuming, and expensive.