Risk Factors Update Summary

• Identified material weakness in internal controls over financial reporting related to accounting for noncash value of down round feature triggered on preferred stock.
• The Company incurred net losses of $85.5 million in Fiscal Year 2023, a decrease from $210 million.
• Restated Quarterly Report on Form 10-Q for quarter ended September 30, 2023, due to error in unaudited financial statements.
• Noncash expenses totaled $17.3 million and $60.1 million in Fiscal Years 2023 and 2022, respectively.
• The Company's auditors expressed substantial doubt about its ability to continue as a going concern.
• The Company's financial results are highly seasonal, with significant revenue occurring in the second half of the fiscal year.
• Share-based compensation expense increased from $2.4 million in 2022 to $4.3 million in 2023.
• Accumulated deficit increased to $249 million, including a $50.3 million noncash goodwill impairment charge.
• The Company's growth is dependent on expanding product offerings and user engagement strategies.
• Revenue sources include advertising, service offerings, and direct-to-consumer offers, with fluctuations in customer concentration.