Risk Factors Update Summary

• Operating cash is primarily held in deposit accounts, with a majority in one institution.
• Added "or profitability" to "results of operations", emphasizing potential decline in profitability.
• Noted "increased competition" from large tech companies and managed service providers, indicating heightened competitive pressure.
• Increased attention to data protection and privacy regulations, including GDPR and U.K. GDPR compliance.
• Added "man made" to "manmade problems", specifying the nature of potential disruptions.
• Mentioned "service releases" in addition to "new product introductions", indicating a broader product strategy.
• Added "and platform" to "product development", showing a focus on platform expansion and development.
• Adoption of the EU-U.S. Data Privacy Framework adequacy decision in 2023.
• A decrease from 652 to 610 full-time employees as of December 2023.
• Intellectual property litigation risks, including recent lawsuits against Josh.AI Inc. and AVA Inc.
• Highlighted "manmade problems such as war or terrorism" as a risk factor, acknowledging geopolitical risks.
• Included "Eastern Europe, and the Middle East" under "current political tensions in Asia", expanding geopolitical concerns.
• Risks related to international operations, including currency exchange rate fluctuations and geopolitical instability.
• Potential significant legal, accounting, and other expenses may be incurred in the future.
• Potential impact of the Israel-Hamas War on regional instability and global markets.
• Risks related to substantial indebtedness, including variable interest rates and debt service obligations.
• Dilution of ownership for existing stockholders due to future acquisitions paid for with stock.