Risk Factors Update Summary

• The Company issued $4,089,000 in principal amount of secured promissory notes, with an interest rate of 12%.
• Significant increase in the allowance for credit losses from $117,360 to $1.6 million. This change might result in higher bad debt expenses.
• This change signifies a significant inflow of funds through debt issuance, impacting the company's financial position.
• Gross profit decreased by $1.3 million from $10.3 million in 2022 to a gross loss of $0.1 million in 2023.
• This change indicates a substantial increase in future financial liabilities related to operating leases.
• Addition of the need to maintain and secure sufficient liquidity for ongoing investments in working capital. This change might result in improved financial stability.
• Stryve's net losses decreased from $33.2 million in 2022 to $19.0 million in 2023.
• Restricted Stock Units increased from 19 to 45, a significant rise of 26 units.
• Net deferred tax asset increased from $13,784,320 to $23,210,549, a significant rise of $9,426,229.
• This change indicates a substantial increase in future financial obligations related to operating leases.
• Topic 326 was significantly altered, with changes from 10 to 3 and 6 to 1.
• Allowance for Credit Losses significantly increased from $117,360 to $1,638,039, with provisions rising to $1,520,679.
• The Company adopted ASU 2020-06, simplifying the accounting for convertible instruments, effective for fiscal years beginning after December 15, 2021.
• Addition of in-store trade promotion strategies to drive repeat usage. This change might result in increased sales.
• Increase in Payroll liabilities from $602,669 to $1,004,141, a significant rise.
• Reduction in total operating lease obligations from $1,745 to $558. This change might result in improved financial flexibility.
• Section 50 - Paragraph 11 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Addition of long-term debt issuance details, excluding tax-exempt secured debt proceeds.
• Facility Fee increased to $40,000 at Second Amendment Date, with 1.0% fee on incremental increases.
• Topic 210, SubTopic 10, Section S99, Paragraph 1, Subparagraph (SX 210.5-02(29)) was added with a reference 38.
• Total deferred tax liabilities decreased from $67,223 to $35. This change might impact tax obligations significantly.
• Rent expense increased significantly from $406,817 to $1,118,564 for the years ended December 31, 2022 and 2023.
• The Company reduced the reserve for slow-moving and obsolete inventory from $508,827 to $82,391. This change might result in improved inventory turnover.
• Net loss before income taxes decreased by $14.2 million from $33.2 million in 2022 to $19 million in 2023.
• Number of shares granted decreased significantly from 550,000 to 22,000, impacting equity distribution.
• Addition of debt issuance costs for long-term debt classified as noncurrent, excluding lease obligations.
• Allowance for doubtful accounts and returns and deductions decreased from $117 million to $82 million.
• Deferred tax liabilities for Other decreased from $8,613,779 to $35, a notable reduction.
• This change might result in increased revenue from subleasing activities, impacting financial performance positively.
• The Company now performs a quantitative test for goodwill impairment if fair value is less than carrying amount.
• Long-term debt maturities show a significant increase from $2.26 billion in 2022 to $7.42 billion in 2023.
• Increase in forgiveness on paycheck protection program loan from $1,669,552 to $1,700,869.
• Stryve may need additional capital to finance operations or acquisitions, impacting growth.
• Increase in net operating loss from $19,040,984 to $33,140,445, impacting financial health significantly.
• The company implemented a Compensation Recovery Policy to recover Erroneously Awarded Compensation promptly.
• Stryve's outstanding debt obligations decreased from $32 million to $11 million in 2023.
• Inventory decreased significantly from $8,258,642 in 2022 to $7,215,981 in 2023.
• Common stock shares authorized decreased significantly from 200 to 15 million.
• The company completed a 1-for-15 reverse stock split, reducing authorized shares from 200,000,000 to 15,000,000.
• Topic 805 - SubTopic 30 was added, impacting revenue recognition, with a change from 2023 to 2024.
• Topic 852 - SubTopic 10 was revised to Topic 235 - SubTopic 10. This change could affect accounting treatments significantly.
• Deferred Tax Assets: Investment in partnership increased from $6,609 to $6,877 from 2022 to 2023.
• This change indicates a non-cash settlement of interest obligations, affecting the company's equity structure.
• Section 50 - Paragraph 7 now references Topic 852 instead of Topic 470.
• Restricted Stock Awards increased from $193 to $205, a notable increase of $12.
• Broker and commission payables rose from $859 to $10,900, a substantial increase.
• This change may affect the company's long-term lease commitments and financial planning.
• Section 50 - Paragraph 3 now references Subparagraph (d) instead of Subparagraph (c).
• Stock-based compensation expense rose from $1,156,207 to $1,079,370.
• Bad debt expense increased from $236 million to $697 million.
• Stryve's ability to continue as a going concern is uncertain, impacting stock price and operations.
• This change may affect the attractiveness of warrants and potential shareholder returns.
• Operating loss decreased by $16.8 million from $32.2 million in 2022 to $15.4 million in 2023.
• The Company issued $4,089,000 in secured promissory notes, including $1,175,000 from related parties. This change might impact the Company's debt structure and interest expenses.
• Concentration Risk percentages changed notably, e.g., Customer A from 17% to 10%.
• Stryve's accumulated deficit increased from approximately $117.3 million to $136 million through 2023.
• Valuation allowance increased by approximately $9,426,230 in 2023 compared to $5,170,541 in 2022.
• Preferred stock shares issued decreased from 382 to 299 million.
• Net deferred tax liability decreased from $67,223 to $23,210. This change could affect financial statements.
• Section 50 - Paragraph 31 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Section 50, Paragraph 11, Subparagraph (a) added with URI link. This enhances accessibility to specific information.
• Forfeited shares increased from 31 to 49, a substantial rise of 18 shares.
• Increase in short-term borrowings and current portion of long-term debt from $2,015,522 to $8,262,825.
• The Company recognized approximately $1,895,066 in interest expense inclusive of debt discount amortization of $1,374,631 for the year ended December 31, 2022.
• Net losses increased from approximately $33.1 million in 2022 to $19.0 million in 2023.
• Stock-based compensation accounting now includes adjustments for forfeitures when they occur.
• Topic 606 - SubTopic 10 was updated, affecting revenue recognition, with a shift from 2023 to 2024.
• Topic 250 was added with significant changes, including a decrease from 10 to 3.
• Section 50 - Paragraph 3 - Subparagraph (c) was updated to Section 50 - Paragraph 30 - Subparagraph (c). This change may impact financial reporting.
• Future minimum principal payments on debt increased notably from $6.11 billion to $17.95 billion.
• Increase in the ability to manage supply chain and expand production to meet future demand. This change might result in improved operational efficiency.
• Increase in financing lease obligations from $1,531 to $561. This change might result in increased debt obligations.
• Inclusion of per share amount received for each common stock issued in stock transaction.
• Term extended to 24 months post Second Amendment, with automatic annual renewal.
• Net Operating Loss: Increased from $6,894,644 to $9,660,705 from 2022 to 2023.
• Accounts Receivable Allowance increased from $117,360 to $1,638,039 due to provisions.
• Operating leases, Right-of-use assets decreased from $5,009,954 to $4,609,666 as of December 31.
• Changes in the financial statements include a decrease in Cash and cash equivalents from $623,163 to $369,114.
• Weighted average fair value per share for granted shares increased from $0 to $4.
• Section 50, Paragraph 1B, Subparagraph (SX 210.13-02(a)(4)(iv)) was added with a reference 32.
• Working capital deficit worsened from $7,400,000 to $5,800,000, affecting liquidity and operations.
• Charitable Contributions: Increased from $141,510 to $242,459 from 2022 to 2023.
• The Company recognized approximately $451,773 and $111,547 in interest expense for the years ended December 31, 2023 and 2022, respectively.
• Commercial Premium Finance Agreement Two's effective interest rate percentage increased from 64.00% to 66.10%.
• Topic 323 - SubTopic 10 is now included, impacting Section 50 - Paragraph 3.
• Number of shares vested decreased notably from 83,000 to 11,000, affecting ownership distribution.
• Net cash used in operating activities decreased by $21.6 million from $28.6 million in 2022 to $7.4 million in 2023.
• The Company increased the valuation allowance for deferred tax assets from $13,784,320 to $23,210,549. This change might affect future tax liabilities and net income.
• Operating lease liabilities (current) increased from $327,915 to $362,165 as of December 31.
• Topic 946, SubTopic 220, Section S99, Paragraph 1, Subparagraph (SX 210.5-02(29)) was added with a reference 12.
• Preferred Stock shares authorized decreased from 610,000 to 425,000. This change may impact stock issuance strategies.
• Early Termination Fee introduced, 2% if terminated within 12 months, 1% thereafter with 60-day notice.
• Section 50, Paragraph 7, Subparagraph (a) replaced Section 45, Paragraph 2. This indicates a structural reorganization.
• Definition added for per share decrease in exercise price of warrant, excluding antidilution change.
• Disclosure of seasonal factors affecting commodity inputs, primarily beef, since the pandemic. This change might result in supply chain challenges.
• Marketing and advertising payables increased from $217,075 to $329,530, a notable change.
• Antidilutive Securities excluded from EPS calculation increased from $10,294,118 to $10,294,118.
• The Company recognized approximately $478,001 and $28,214 in interest expense for the years ended December 31, 2023 and 2022, respectively.
• Forgiveness of Notes Receivable increased from $252,800 to $1,700,869.
• Operating expenses decreased from $41,555,096 to $31,457,476, a significant reduction.
• Short-term borrowings are expected to rise by $1.54 billion in the next twelve months.
• Section 50 - Paragraph 32 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Stryve's success depends on its ability to comply with laws and regulations, affecting financials.
• Line of credit facility drawn increased from $1,257,301 to $3,716,914, indicating increased borrowing.
• Section 50 - Paragraph 28 - Subparagraph (f) was changed to Section 50 - Paragraph 12 - Subparagraph (a). This change may impact financial disclosures.
• Stryve's outstanding indebtedness due within the next 12 months is $8.4 million as of December 31, 2023.
• Granted shares increased from 83,000 to 922,000, a significant rise of 839,000 shares.
• Accounts receivable decreased from $2,488,693 to $2,091,926, impacting liquidity.
• Impairment charges decreased from $363 million to $318 million.
• Property, Plant, and Equipment decreased from $8,816,573 to $7,150,775 in 2023.
• Working capital deficit increased from $3.5 million in 2022 to $7.8 million in 2023.
• Topic 740 - SubTopic 10 was revised, impacting unrecognized tax benefits, with changes from 2023 to 2024.
• Topic 740 saw notable changes, with values shifting from 8 to 3 and 4 to 1.
• Topic 250 changed to Topic 260. This may signify a shift in focus or operations.
• Prepaid media spend decreased from $1,534,548 to $0.
• Inventory changes include Raw Materials from $1,475,657 to $1,614,712 and Finished Goods from $2,898,803 to $2,898,803.
• The Company amended the Invoice Purchase and Security Agreement to decrease the maximum available deployment from $15,000,000 to $8,000,000. This change might impact liquidity and working capital.
• Maximum borrowing capacity for Class V Common Stock increased from $6,000,000 to $6,000,000.
• Warrants outstanding for Public Warrants decreased to $10,800,000. This change could affect future financial instruments.
• Net cash provided by financing activities decreased by $10.2 million from $41.2 million in 2022 to $31 million in 2023.
• Inventory increased from $199,979 to $5 million, indicating potential operational changes.
• Vested shares decreased from 257 to 71, a notable decrease of 186 shares.
• Section 50 - Paragraph 22 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Lease payments decreased from $908,863 to $268,960 for the year ended December 31, 2023.
• Professional fees payable rose from $204,950 to $679,850, a significant jump.
• Total bad debt expense increased from $372,363 to $697,876 for the year ended December 31, 2022.
• Inventory Finance Rider increased from $6 to $807, a substantial rise of $801.
• Salaries and wages increased by $1.2 million from $9.3 million in 2022 to $10.5 million in 2023.
• Warrant price per share increased from $3.60 to $54. This change may impact warrant valuation.
• Prepaid expenses decreased from $720,682 to $450,000, affecting short-term liquidity.
• Prepaid Expenses and Other Current Assets increased from $720,682 to $1,550,717.
• Related party payables increased from $100,000 to $400,000, a material change.
• Section 50 - Paragraph 30 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Additional borrowing capacity rose from $1,000,000 to $0.0, impacting financial flexibility.
• Advertising and marketing expenses decreased from $5,740,567 to $14,488,125.
• The Company recognized interest expenses of approximately $478,001 and $28,214 for the years ended December 31, 2023 and 2022, respectively. This change might indicate changes in borrowing costs.
• Section 50 - Paragraph 42 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Concentration of Credit Risk: Customer A's representation increased from 12% to 30% for the year ended December 31.
• Total current assets decreased from $12,921,215 to $8,381,701, impacting overall financial health.
• Increase in the number of shares issued during the period, affecting equity structure.
• Operating lease liabilities decreased from $5,062,043 to $4,734,128, a notable decrease of $327,915.
• The Company issued 7,964,550 warrants convertible to 530,970 shares of Class A common stock in April 2023. This change might impact future dilution and shareholder equity.
• Net cash used in investing activities increased by $2.5 million from $1.3 million in 2022 to $3.6 million in 2023.
• Restricted Stock Units (RSUs) shares vested decreased from 837 to 533. This change may affect employee compensation.
• Property, Plant, and Equipment values changed, e.g., Total cost from $14,264,090 to $13,982,254.
• Accrued expenses decreased from $1,634 to $978, a notable decrease.
• Dilutive securities increased from 22 to 29.
• The Company reduced the balance on the Revenue Loan and Security Agreement from $3,983,611 to $3,864,175. This change might indicate changes in outstanding debt levels.
• The Company adopted ASU 2016-13 as of January 1, 2023, with no material changes to financial statements.
• Unrecognized compensation cost decreased from $1,978 to $911. This change may impact future financial reporting.
• Goodwill and Intangible Assets values changed, e.g., Intangible asset, net from $4,362,024 to $4,362,359.
• Section 50 - Paragraph 5 added, referencing Publisher FASB, with URI https://asc.fasb.org/.
• Debt Instrument Long-term debt increased from $3,791,950 to $3,889,442, a moderate rise.
• Amortization period of intangible assets changed from 20 years to 13 years.
• Reduction in the number of shares due to reverse stock split, impacting stock structure.