Risk Factors Update Summary

• Granted an additional 180-calendar day period for compliance with Minimum Bid Price Requirement.
• Issued warrants with anti-dilution provisions that could result in substantial dilution for stockholders.
• A large customer provided notice to cease services in February 2024, potentially impacting revenue.
• Acuitas Group Holdings, LLC owns approximately 40.6% of outstanding common stock.
• Failure to maintain effective internal controls could adversely affect operating results and market.
• Secured debt outstanding decreased from $19.3 million to $3.5 million, affecting financial condition.
• Stockholder ownership changed from 40.6% to 61%, impacting control and decision-making.
• Borrowed $19.0 million in principal amount of secured debt from Acuitas under Keep Well Agreement.
• Holders of Series A Preferred Stock have the right to elect two directors to the board.
• Working capital decreased from $4.8 million to $0.6 million, impacting liquidity.
• Potential delisting from Nasdaq due to bid price non-compliance, affecting stock liquidity.
• Raised $6.3 million through a public offering of common stock, pre-funded warrants, and warrants.
• Monthly cash burn rate decreased from $21 million to $13 million, affecting cash flow.
• Cybersecurity risks highlighted, emphasizing the importance of data protection and potential breaches.