Risk Factors Update Summary

• We identified material weaknesses in our internal controls over financial reporting, risking investor confidence. This could lead to a decline in our stock price.
• The loss of any major customer could adversely affect operations, as major customers account for significant sales.
• An impairment loss of $2,897,737 was recognized for intangible assets associated with Nexus in 2023. This change highlights potential risks in asset valuation and financial stability.
• Common Stock Purchase Warrants issued on June 3, 2024, may impact future capital raising efforts.
• Goodwill from the acquisition of DSO is now $1,342,000 as of December 31, 2023. This change might result in increased scrutiny over asset valuations.
• Stockholders’ equity as of September 30, 2023, was $951,836, below Nasdaq's requirement of $2,500,000, risking delisting.
• Our auditors issued a going concern opinion, expressing doubt about our ability to continue operations due to a working capital deficiency of approximately $7 million and an accumulated deficit of $67.7 million.
• The company recognized an impairment of intangible assets of $5,843,501, or 71.04% of revenues, during 2023, which was not present in 2022.
• Mr. Minton's annual base salary increased from $200,000 to $250,000 on July 1, 2021, and further to $300,000 upon contract extension. This change might result in increased executive compensation costs.
• There has been an increase in access to weight management medications, potentially decreasing demand for our nutritional supplements.
• Mr. Bergman's annual base salary rose from $175,000 to $200,000 on January 1, 2022, and to $250,000 on January 1, 2023. This change reflects a significant increase in executive compensation.
• An impairment loss of $2,603,233 was recognized for intangible assets of Ceautamed in 2023. This change suggests ongoing challenges in maintaining asset value.
• Secured Promissory Note issued to Abbsi LLC on March 5, 2024, could affect liquidity.
• Goodwill from the acquisition of Nexus is now $1,703,000 as of December 31, 2023, indicating significant investment. This change could affect future impairment assessments.
• The working capital deficiency increased to approximately $19.7 million, raising substantial doubt about the company's ability to continue as a going concern.
• We may not regain compliance with Nasdaq's Equity Rule, affecting our stock's marketability and investor confidence.
• An impairment loss of $342,531 was recognized for the license agreement associated with GSP in 2023. This change may impact investor confidence in asset management.
• The net loss for 2023 was $22,675,741, a decrease of $7,302,075, or 24.36%, compared to the previous year’s loss.
• The maximum number of shares available under the 2022 Plan increased from 635 to 22,222 shares, enhancing equity compensation opportunities for employees. This change could lead to greater employee retention and motivation.
• We are an emerging growth company, allowing us to delay compliance with new accounting standards, potentially impacting financial statement comparability.
• New Independent Director Agreements with Heather Granato and Loren Brown may enhance governance structure.
• The ongoing conflicts in Ukraine and the Middle East may disrupt our ability to obtain certain raw materials, impacting production costs.
• We plan to raise additional capital through equity offerings or debt financing, which could dilute existing stockholders' interests.
• Cash used in operations was $5,848,553 for 2023, an improvement from $9,685,871 in 2022, indicating better cash management.
• We plan to engage external experts for cybersecurity risk management, enhancing our defenses against evolving threats.
• The company incurred expenses related to Trilogy of $46,686 in 2023, compared to $0 in 2022. This change indicates increased reliance on related party transactions for management services.
• The company reported a decrease in revenues of $7,676,737, or 48.27%, to $8,225,792 for the year ended December 31, 2023.
• The accrued expenses related party increased from $947,951 in 2022 to $264,141 in 2023, indicating a significant change in financial obligations to related parties.