Risk Factors Update Summary

• President Biden signed an Executive Order aimed at protecting consumers against harms caused by artificial intelligence.
• Elevate settled a case agreeing to charge rates up to 24% and refund overcharged consumers.
• The company's loan funding programs are exposed to risks from recent bank failures, including disruptions in the banking sector.
• Failure to maintain diverse and resilient loan funding from institutional investors could adversely affect operations.
• An independent third-party firm was engaged to perform periodic fair lending assessments over the AI underwriting models.
• Opportunity Financial faced a complaint in 2021 for violating California usury laws.
• The CFPB issued interpretive statements impacting business practices, including compliance obligations under the Equal Credit Opportunity Act.
• The CFPB announced supervision of at least three non-bank fintech companies, increasing regulatory scrutiny.
• Laws in Illinois, Maine, and New Mexico capped interest rates on certain loans at 36%.
• Following a number of quantitative assessments, Relman has published a fourth and final report summarizing the development during the monitorship.
• The company's revenue declined in 2023, with a net loss of $240.1 million.
• The company relies on third-party vendors and software, subject to increased regulatory scrutiny and potential impacts on financial condition.
• Warehouse credit facility increased from $175 million to $250 million until June 15, 2025.
• The legal and regulatory environment surrounding the AI lending marketplace is relatively new and may require interpretive guidance.
• Valuation allowance recorded for net deferred tax assets in federal, state, and local tax jurisdictions.
• Stock authorization decreased from 740 million to 669 million shares of common stock.
• Implementation of "sell-to-cover" transactions may result in dilution to stockholders.