Risk Factors Update Summary

• Construction of hydrogen fueling stations subject to delays, cost overruns, and regulatory challenges, impacting business expansion.
• Identified material weakness in ITGCs in 2022, completed remedial actions in 2023.
• Amended Equity Distribution Agreement with Citigroup provides access to approximately $311.7 million as of January 30, 2024.
• Product recalls in 2022 and 2023 resulted in significant expenses and may adversely affect financial condition.
• Incurred net losses increased significantly from $690.4 million in 2021 to $966.3 million in 2023.
• Implemented enhanced IT management review and testing plan to monitor ITGCs.
• "Announced a recall of BEV trucks in August 2023 and may continue to experience recalls." This could impact brand reputation and financials.
• Identified and remediated material weakness related to control deficiencies in financial statements for Q3 2023.
• "Recall resulted in a $24.9 million loss, recorded in 2023 financials." Significant financial impact.
• "Received a $41.9 million grant to build hydrogen refueling stations in 2023." Significant grant impacting operations.
• Plans to expand operations significantly, including hiring/training personnel, forecasting production, and building hydrogen fueling stations.
• Dependence on dealer network for sales, facing competition for dealers, and potential loss of significant dealers.
• "Dependent on suppliers like Bosch for battery packs until 2030." Supply chain risk.
• "Identified material weaknesses in internal controls over financial reporting." Risk to accurate financial reporting.
• Facing legal challenges in selling directly to fleets or end users, impacting costs and business operations.
• "Issued $200 million, $123 million, and $21.6 million in convertible notes." Financial implications.
• Non-compliance with Nasdaq minimum bid price requirement, must reach $1.00 per share within 180 days.
• "May face challenges related to safety perceptions of commercial electric vehicles." Potential impact on sales.
• Potential delisting from Nasdaq due to non-compliance may adversely affect liquidity and market price.
• Experienced changes in management, success depends on attracting and retaining key employees.
• Retail and individual investor sentiment may influence short interest and stock price volatility.