Risk Factors Update Summary

• Creating a formalized ESG strategy with a cross-functional team to enhance environmental and social responsibility.
• Net loss increased significantly from $763 million to $149 million, with a decrease in accumulated deficit from $835 million to $793 million.
• Implementing an ESG materiality assessment to monitor progress and develop a baseline assessment.
• Sales cycle reduced from 18-12 months to 12-24 months, impacting average selling price and operations.
• Enhancing environmental responsibility by complying with legal requirements and implementing sustainable practices.
• Exclusive license with Atomistic for microLED technology involves $30 million cash commitments and equity issuance.
• Committing to reduce energy consumption, track emissions monthly, and verify compliance with regulations.
• Increased focus on cybersecurity risks due to evolving threats and potential impact on operations.
• Promoting an environmentally friendly approach by reducing power and raw materials usage in products.
• Dependence on third-party suppliers for micro-displays and critical components poses risks of supply chain disruptions.
• Addressing shortages and long lead times by developing suitable alternate sources of supply.
• Legal and regulatory risks related to intellectual property infringement and compliance with privacy laws are intensifying.
• Encouraging ethical organizational governance and transparency through a Whistleblower Ethics Hotline.
• Human capital resources increased to just under 100 employees, with a focus on employee relations and diversity.