Risk Factors Update Summary

• The company may expend resources on less profitable products, impacting profitability. This change might result in missed opportunities and reduced profitability.
• Potential failure to meet Sarbanes-Oxley Act Section 404 standards could materially impact business and share price.
• Financial industry instability, like bank closures, could impair access to funding sources significantly.
• Accumulated deficit increased from $214 million to $252 million. This change indicates a significant increase in financial losses.
• Number of outstanding warrants to purchase shares increased from approximately 2.5 million to 3.3 million. This change may dilute existing shareholders' ownership.
• Analyst coverage impacts stock price; downgrades or inaccurate research could lead to declines.
• Adverse economic conditions could affect ability to raise capital and strain partners' survival.
• Impacts of financial events on counterparties could lead to delays in accessing funds.
• Cash balance decreased from approximately $15 million to $3 million. This change may impact operations and necessitate additional financing.
• Stock price ranged from $1.25 to $1.71 per share. This change may impact investor perception and market capitalization.
• Number of shares reserved for issuance under equity incentive plans decreased from 818,072 to 399,170. This change may impact employee incentives and stock-based compensation.
• Uncertainty from global conflicts like the Russian invasion of Ukraine may negatively impact operations.
• Liquidity problems in the financial services industry could adversely affect business operations.
• Outstanding principal amount under Convertible Promissory Note decreased from $12.5 million to $6 million. This change may affect debt obligations and financial flexibility.