Risk Factors Update Summary

• Potential liability and expense for trademark and copyright infringement claims added. This could result in costly litigation.
• Increased exposure to greater-than-anticipated tax liabilities, including penalties and interest, may adversely affect financial results.
• Net losses decreased from $38.6 million in 2021 to $6.3 million in 2022.
• Accumulated deficit increased from $148.4 million in 2022 to $161.7 million in 2023.
• Increased risk of substantial damages, settlement costs, fines, and penalties from intellectual property infringement assertions.
• Potential liability and expense for claims, including class actions, related to caregiver pay model.
• Revenue dependency on top customers decreased from 27% to 36% in 2022.
• Reliance on third-party payment service providers may lead to increased transaction fees and fines.
• Material weaknesses in internal control over financial reporting identified, impacting accurate reporting.
• Risks related to cybersecurity incidents, breaches, and data protection vulnerabilities could impact operations.
• Increased costs and administrative burdens as a public company, impacting financial condition and operations.
• Failure to manage risks may adversely affect long-term benefits and financial condition.
• Failure to adequately protect intellectual property may result in infringement claims affecting business.
• Limited experience of management team in managing a public company, potentially affecting operations.
• Increased focus on attracting and retaining Pet Caregivers and Pet Parents for business growth.
• Shareholder activism risks, potential litigation, and volatility in stock price could adversely affect financial condition.
• Dependence on highly skilled employees for effective growth and operations.
• Lack of independent underwriter for shares listed on Nasdaq Global Market may impact investor confidence.
• Potential impact of reclassification of Pet Caregivers as employees on business operations.