Risk Factors Update Summary

• Private Placement Offering raised approximately $42.2 million, significantly increasing gross proceeds.
• The Company now has the discretion to recover Erroneously-Awarded Compensation through various means, including cash repayment or forfeiture of equity awards.
• Weighted average fair value of options granted to consultants decreased from $2.57 to $1.50.
• The Executive Officer Clawback Policy now includes definitions for "Accounting Restatement" and "Erroneously-Awarded Compensation."
• Change from 2022 to 2023: Revenue increased by $1,034,000, or 20.0%, to $6,205,000, driven by CGuard EPS sales growth.
• Net cash provided by financing activities increased from $35,034 to $37,534, a significant change.
• Net cash used in operating activities increased by $834,000 to $16,376,000, primarily due to higher expenses.
• Cash and cash equivalents at the end of the year decreased from $12,004 to $9,640.
• Cash and cash equivalents increased by $4,008,000, reaching $9,640,000 as of December 31, 2023.
• Weighted average fair value of restricted stock granted decreased from $2.42 to $1.95.
• The Policy outlines the calculation of Erroneously-Awarded Compensation for cash awards, equity awards, and stock price-based compensation.
• Change from 2022 to 2023: Gross profit increased by $690,000, or 61%, to $1,807,000, with a gross margin increase to 29%.
• Change from 2022 to 2023: Research and development expenses increased by $2,652,000, or 42%, to $7,981,000, mainly due to increased compensation expenses.
• Short-term bank deposits increased by $7,829,000 to $13,171,000 as of December 31, 2023.
• Total unrecognized compensation cost on employee share-based compensation increased from $18 million to $30 million.
• Non-cash lease incentive decreased from $91 to $45, impacting right-of-use assets and lease liabilities.
• Change from 2022 to 2023: Selling and marketing expenses increased by $201,000, or 5%, to $865,000, driven by increased salary expenses.
• Marketable securities increased by $7,035,000 to $29,036,000 as of December 31, 2023.
• Change from 2022 to 2023: General and administrative expenses increased by $2,748,000, or 33%, to $11,104,000, primarily due to increased compensation expenses.
• Total current assets increased by $22,833,000 to $44,159,000, while total current liabilities increased by $950,000.
• Change from 2022 to 2023: Financial income increased by $1,042,000, to $1,292,000, primarily from interest income and exchange rate changes.
• Working capital increased by $21,491,000 to $16,256,139,000 as of December 31, 2023.
• Change from 2022 to 2023: Net loss increased by $3,425,000, or 24%, to $19,916,000, due to increased operating expenses.