Risk Factors Update Summary

• Loss of DOE award negatively impacts reputation, access to funding, and management resources.
• Revenue heavily depends on a limited customer base, with top five customers accounting for 48.6% in 2023.
• Cybersecurity threats pose risk to operations due to potential disruptions and data breaches.
• Order backlog decreased from $410 million to $276.4 million in 2023.
• Changes in regulations in China could significantly impact operations, increasing costs and limiting activities.
• Identified a material weakness in internal controls over financial reporting, impacting financial results.
• Potential prohibition of trading in the U.S. if PCAOB can't fully inspect China-based auditors.
• Dependence on intellectual property protection, with risks of unauthorized access and infringement.
• Litigation related to intellectual property claims may result in significant costs and distract staff.
• Impact of securities analysts' coverage on stock price and trading volume, affecting visibility in financial markets.