Risk Factors Update Summary

• Net loss decreased from $36.3 million in 2022 to $27.9 million in 2023, with an accumulated deficit of $186 million as of December 31, 2023.
• The company's cybersecurity risk management program includes detailed policies, processes, and practices to address evolving threats and ensure data security.
• Leased office space increased to 28,970 sq ft for technical integration and training.
• Long and unpredictable sales cycles may impact operating results due to factors like educating customers. This could lead to delays in revenue generation.
• The company faces intense competition in the market, with competitors offering lower prices, potentially impacting operating results negatively.
• One-time capital dividend of $20 per share paid in 2023, totaling over $165.9 million.
• The company invested in businesses, technologies, and assets, seeking to complement its business, with a focus on cybersecurity.
• The company's common stock price experienced significant fluctuations, ranging from $3.53 to $12.60 in 2023, adjusted for a 1-for-20 reverse stock split.
• Research and Development expenses increased to $9,713 in 2023 from $6,406 in 2022.
• The company's products are highly technical and may contain errors, leading to potential harm to reputation and increased service costs.
• Selling, General and Administrative expenses rose to $21,739 in 2023 from $15,722 in 2022.
• Interest and Other Income increased to $3,495 in 2023 from $1,848 in 2022.
• Cash and cash equivalents decreased to $26,289 as of December 31, 2023, from $86,561 in 2022.
• Short-term investments decreased to $27,258 as of December 31, 2023, from $65,462 in 2022.