Risk Factors Update Summary

• Future growth depends on increasing revenue per customer. Failure may slow growth significantly.
• Addition of approximately 700 individual independent contractors across 14 foreign countries, notably in Mexico, India, and Costa Rica.
• Expanded lines of business to 22 states, increasing regulatory risks and compliance challenges.
• Concerns regarding the ability to make scheduled payments, pay interest, or refinance indebtedness, especially the 6.75% convertible senior notes due 2028.
• Emphasis on the importance of attracting, developing, motivating, and retaining highly qualified employees for future success.
• Entered a collaboration agreement with Aon, receiving $25 million in cash and additional payments.
• Increased competition for skilled personnel in foreign jurisdictions, especially in information technology, leading to higher costs.
• Increased marketing expenditures may not be cost-effective, impacting financial condition and results.
• Facing risks from changes in laws and regulations, including privacy laws, impacting operations.
• Risks associated with acquisitions and divestitures, including challenges in integration, potential disputes, and impairment charges.
• Risks related to compliance with anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, in jurisdictions of operation.
• Increased net operating loss carryforwards to $425.4109 million for federal and state tax purposes.
• Potential impact on financial condition and operations due to misclassification of independent contractors.
• Accumulated deficit of $722.585 million as of December 31, 2023, with significant operating losses.
• Loss reserves may be inadequate, leading to financial risks and market expectations challenges.
• Impact of default under the 2028 Notes indenture on business, financial condition, and results of operations, potentially leading to bankruptcy or liquidation.
• Enhanced internal control over financial reporting, addressing material weaknesses, ensuring effectiveness.
• Failure to communicate effectively with consumers and service providers may adversely affect operations.
• Dependence on key personnel and retention challenges could harm business operations and growth prospects.