Risk Factors Update Summary

• Allegations of violating Securities Act of 1933 Sections 11, 12(a)(2), and 15 could result in significant monetary liability.
• Failure to meet Nasdaq Capital Market listing requirements may lead to delisting, affecting stock price and ability to raise capital.
• Historical growth rates and financial performance now reflect historical growth rates and financial performance. This change might result in a more accurate reflection of the company's past performance.
• Implementation of temporary salary cuts, layoffs, and furloughs resulted in increased regrettable employee attrition.
• Potential impact of CCPA and similar laws on advertising technologies could lead to compliance challenges and increased costs.
• Active subscriber growth rate decreased year over year in fiscal year 2023. This change might lead to a decline in revenue growth and profitability.
• The company plans to focus on growing traffic and conversion rates in fiscal year 2024. This change could impact customer acquisition and retention.
• Reduction in promotional pricing for Subscription in the third and fourth quarters of 2023. This change could affect subscriber acquisition and retention strategies.
• Continued regulatory focus on automatically renewing subscription offerings, such as California's Automatic Renewal Law.
• GDPR compliance requirements evolving rapidly, posing ongoing compliance challenges and potential penalties for noncompliance.
• Revenue was roughly flat year-over-year in fiscal year 2023, with a modest increase anticipated in revenue growth rate. This change could impact the company's financial performance.
• Marketing expenses were allocated to acquire additional rental product purchases in the second half of 2023. This change might impact subscriber acquisition costs and overall profitability.
• Challenges enforcing all intellectual property rights may impede business expansion efforts outside the U.S.
• Net loss decreased from $138 million in 2023 to $113 million in 2024. This change might indicate improved financial performance.