Risk Factors Update Summary

• We experienced transaction losses of $39.0 million in 2023, $41.9 million in 2022, and $29.7 million in 2021, which may lead to regulatory actions or significant losses.
• Sales of a substantial number of shares could depress stock price and impair capital raising.
• Increased regulatory scrutiny and changes may impact operations and financial results significantly.
• Potential adverse impact from changes in consumer protection laws and regulations in the UK and EEA.
• Net losses were $117.8 million in 2023, $114.0 million in 2022, and $38.8 million in 2021, impacting financial condition and future prospects.
• Future issuance of common stock may result in substantial dilution to existing stockholders.
• Risks related to potential regulatory changes impacting fees, exchange rates, and business operations.
• Increased scrutiny on ESG practices could result in additional costs and impact brand reputation.
• Revenue increased from $653.6 million in 2022 to $944.3 million in 2023, with send volume growing from $28.6 billion to $39.5 billion, indicating significant growth.
• Limited experience managing a publicly traded company may lead to additional costs and resources.
• Losses as a percentage of total send volume decreased from 0.15% in 2022 to 0.10% in 2023, showing improved risk management.
• Increased risks related to compliance management system weaknesses and penalties for non-compliance.
• Failure to comply with complex laws on socially responsible activities could harm business.
• Headcount grew from over 750 employees in the previous four years, indicating rapid expansion and potential operational challenges.
• Risks associated with fraudulent activities, money laundering, and potential regulatory interventions.
• Failure to comply with privacy, cybersecurity laws across multiple jurisdictions could harm financial condition and operating results.
• Operational risks due to reliance on cloud services, data security, and potential service disruptions.
• Cybersecurity breaches, service outages, or incidents could result in serious harm to business, reputation, and financial condition.
• Risks related to financial reporting accuracy, internal controls, and potential liabilities from legal proceedings.