Risk Factors Update Summary

• The company faces the risk of litigation and potential infringement of intellectual property rights of third parties.
• The integration process of acquired companies and assets, such as Weta Digital and ironSource, could adversely affect financial results.
• The company faces increasing risks related to emerging regulations on biometric privacy laws, which may result in litigation and noncompliance penalties.
• The company has experienced significant net losses on a GAAP basis since inception.
• Increased exposure to cybersecurity risks and vulnerabilities, including threats from hackers and nation-states, poses a significant risk to our sensitive information and IT assets.
• The strengthening of the U.S. dollar could negatively impact our financial condition and operating results.
• Difficulties assimilating or integrating businesses, technologies, data, personnel, or operations of acquired companies may arise.
• Changes in the management team, including hiring or departure of executives and key employees, could disrupt the business.
• The addition of digital service taxes could create additional administrative burdens and decrease future sales.
• The company's limited operating history at its current scale may impact future performance.
• Revenue growth has varied and declined in certain quarters, which may impact future performance.
• Changes in privacy regulations and consumer resistance to targeted advertising pose challenges to the company's ability to deliver tailored advertisements and reach customers.
• Unforeseen operating difficulties may be encountered during the transition and integration process.
• The company must attract and retain highly qualified talent, particularly in competitive areas like the San Francisco Bay Area and Tel Aviv.
• Costs and expenses are expected to increase, potentially affecting future results of operations.
• The company issued 112,547,375 shares in the ironSource Merger, potentially impacting dilution to stockholders.
• Failure to obtain, maintain, and protect our intellectual property rights may result in increased costs, legal disputes, and adverse effects on profitability.
• The success of integrating ironSource and other growth strategies is crucial for future results.
• The company's operations in China are subject to frequent changes in the economic, legal, and political landscape, which could impact business operations and result in additional restrictions.
• Changes in effective tax rate or tax liability may have a material adverse effect on the company's results of operations.
• Uncertainties in the interpretation and application of tax laws and regulations could materially affect the company's tax obligations and effective tax rate.
• The company relies on the performance of highly skilled personnel, including management and other key employees, for success.
• The company entered into capped call transactions to manage the value of their common stock.
• Compliance with anti-corruption, anti-bribery, and anti-money laundering laws is costly and noncompliance could lead to penalties, investigations, and reputational harm.
• Failure to realize anticipated benefits and synergies from the ironSource merger may negatively impact financials.
• The company intends to make significant investments in research, sales, marketing, and administration.
• Cultural challenges may arise when integrating with the company, particularly if key personnel choose not to work for us.
• Our ability to increase adoption of our platform may be hindered if competitors develop and introduce products that are easier to use than ours.
• Macroeconomic trends like inflation, rising interest rates, and supply chain issues may cause disruption in the global financial markets, impacting our financial condition.
• Difficulties retaining customers of acquired businesses due to changes in ownership or management may occur.
• Changes in accounting principles may result in post-implementation issues and increased compliance costs.
• Litigation or disputes, including securities class action lawsuits, employment claims, and commercial disputes, could harm the company's reputation and financial condition.
• Compliance with privacy and data security laws, such as the EU GDPR and UK GDPR, imposes significant burdens and penalties.
• The company's products and services are subject to export controls and economic sanctions laws, and noncompliance could result in fines, penalties, and loss of business opportunities.
• Compliance with laws and regulations worldwide, particularly regarding data protection and privacy, may impact the functionality and effectiveness of the company's solutions.
• Failure to improve systems and processes could strain operational and financial resources.
• Significant costs, expenses, and fees have been incurred for professional services and other transaction costs.
• Our reliance on third-party vendors and infrastructure for our platform operations and solutions introduces additional cybersecurity risks and potential downtime.
• Selling to government and highly regulated entities presents challenges and risks, including the demand for non-standard contract terms and certifications.
• The company may face challenges in transferring personal information from the EEA and UK to the U.S. due to data transfer restrictions.
• Our global operations subject us to potential fluctuations in exchange rates, which could materially impact our results of operations.
• Litigation related to the ironSource Merger and potential future litigation could result in significant costs and expenses.
• The issuance of convertible notes and potential dilution of stock ownership may impact the company's financial results and stock price.
• Changes in import and export regulations may cause delays in the introduction of the company's products and services in global markets.
• The company's amended and restated bylaws include provisions that may prevent changes in board members.
• The company must comply with emerging state privacy and data security laws, such as the CCPA and CPRA, which could harm the business.
• The conditional conversion feature of the 2026 Notes, if triggered, may adversely affect the company's financial position and operating results.
• The company's choice of forum provisions may limit a stockholder's ability to bring legal action in the United States.
• The company's compliance with Section 404 requires substantial expenses and significant management efforts.