Risk Factors Update Summary

• Equity awards now valued using Black-Scholes & Monte Carlo methods, impacting share-based compensation expenses.
• Change in Fair Value of Contingent Consideration increased by $1.9 million, resulting in a gain of $1.9 million.
• The company launched a cloud services business with various risks that could adversely affect operations.
• Amortization expense related to intangible assets for the year ended December 31, 2023 increased to $1,582,889 from $569,042.
• The Company transitioned from providing a platform for content creators to acting as the agent.
• The Company updated its Policy for the Recovery of Erroneously Awarded Compensation effective October 12, 2023.
• Negative media campaigns may impact financial performance and relationships with partners.
• The Company incurred advertising expenses of $4,550,742 in 2023, a significant increase from $1,666,912 in 2022.
• Amortization and Depreciation increased by $3.3 million to $4.8 million due to infrastructure build-out.
• Operating lease costs for the year ended December 31, 2023 increased to $848,849 from $564,842.
• Change in fair value measurement criteria for financial instruments, affecting warrant liability and contingent consideration.
• Income tax recovery increased to $25,139,555 from $2,440,079.
• The Company recognized revenue of $80,963,451 in 2023, a significant increase from $39,384,284 in 2022.
• Issuance of 1,100,000 restricted stock units in connection with the Qualifying Transaction. This may impact shareholder sentiment.
• Goodwill balance increased to $10,722,655,391 from $585,578,221.
• Increase in fair value of contingent consideration from $3,491,741 to $7,696,605. Significant financial impact.
• Revenue recognition details added for advertising fees, licensing fees, and other services, impacting revenue reporting.
• Net book value increased from $1,356 to $1,473.
• Paid endorsements by content creators may expose the company to regulatory risks and liability.
• The Company capitalized costs related to internal use software and website development, with estimated useful life up to five years.
• Share-based compensation expenses increased to $16,134,714 from $1,933,403.
• Interest income increased by $3.1 million to $3.1 million due to higher cash balance.
• The Company acquired North River Project Inc. for $7,293,000 in cash upfront and future contingent cash payments of up to $10,000,000.
• The Policy now includes detailed definitions and procedures for Accounting Restatements and Clawback Eligible Incentive Compensation.
• Future amortization expense for the five succeeding fiscal years increased significantly.
• The company's management team has limited experience managing a public company, posing additional risks.
• The Company recognized a change in fair value of contingent consideration of $1,922,381 due to stock price changes.
• The Company adjusted provisional amounts related to the acquisition, increasing upfront share consideration by $143,716.
• Significant increase in amortization of contract acquisition costs from $225,415 in 2022 to $6,994,890 in 2023.
• Change in customer concentration risk with one customer accounting for 46% of revenue, up from 45%.
• The Committee has broad discretion to determine recovery methods for Erroneously Awarded Compensation.
• Change in fair value of warrant liability increased by $21.0 million to $21.0 million.
• Litigation involving antitrust lawsuits and defamation claims could result in significant damages.
• Hours of Uploaded Video Per Day increased by 147 to 520, representing a 21% increase.
• Capitalized content costs rose from $507,392 in 2022 to $4,172,570 in 2023, impacting prepaid expenses.
• Increase in related party expenses from $13,060,008 to $13,916,425. Potential governance concerns.
• Detailed explanation of principal vs. agent evaluation for revenue recognition added for clarity.
• Net loss decreased by $2.0 million to $116.4 million, a 1.7% decrease.
• Changes in laws and regulations may restrict content moderation practices, impacting business operations.
• Repayment of outstanding loan through the surrender of 26,731 shares of Class A Common Stock. Financial impact.
• Total revenue increased by $9.6 million to $39.8 million in the year ended December 31, 2023.
• Changes in fair value measurement hierarchy for financial instruments, emphasizing observable inputs for valuation.
• The company's stock ownership structure may lead to concentrated control and affect stockholder interests.
• Adoption, termination, or modification of trading arrangements by directors and officers. Potential impact on stock price.
• Change in fair value of contingent consideration from $1,135,200 to $1,569,360. Financial implications.