Risk Factors Update Summary

• Conditions in Israel may materially and adversely affect our business due to recent conflicts. This change highlights potential operational disruptions and financial impacts.
• Our gross margin and results of operations may be adversely affected by inflation, supply chain constraints, or other reasons. This change emphasizes the financial risks associated with external economic factors.
• The OECD introduced Pillar Two Model Rules for a global minimum tax of 15% applicable to large multinational corporations, impacting our operations in fiscal 2025.
• Sales to one customer accounted for 12% of our net revenue in fiscal 2024, up from 10% in fiscal 2023. This change indicates increased reliance on a single customer for revenue.
• Environmental, social, and governance (ESG) matters may adversely affect relationships with customers and investors, leading to potential revenue loss and reputational harm.
• Rising interest rates increase the cost of our outstanding borrowings under our Term Loan Facility. This change could adversely affect our net income or loss due to higher interest expenses.
• Increased focus on ESG compliance may result in additional direct costs and indirect costs from suppliers, impacting financial results and operational efficiency.
• Our business and operating results are substantially dependent on international trade, with tariffs potentially impacting gross margins. This change underscores the risks associated with global market dynamics.