Risk Factors Update Summary

• The California Privacy Rights Act (CPRA) went into effect on January 1, 2023, increasing obligations and costs.
• Added risks related to the Pending Merger with Walmart, including potential adverse effects on business, financial condition, and stock price if not completed. Litigation and employee uncertainty highlighted.
• The CPRA imposed a 15% alternative minimum income tax on certain corporations' global adjustment financial statement income.
• TV OEMs adoption risk mentioned, impacting revenue and profitability, with a shift from analog to high-definition and 4K televisions.
• Various states enacted privacy legislation similar to the CPRA, with effective dates ranging from 2023 to 2026.
• Increased emphasis on risks related to breaches of confidentiality or security of information, potentially detrimental to financial condition and operations.
• The CPRA introduced new data privacy rights and obligations, potentially leading to increased compliance costs.
• Mentioned risks related to financial and accounting matters, including previously identified material weakness in internal control over financial reporting.
• New state privacy laws require significant investments in resources to comply before 2023, impacting financials.
• Highlighted risks related to supply chain disruptions, potential harm or termination of relationships with retailers, and loss of market share.
• The CPRA created the California Privacy Protection Agency (CPPA) with enforcement authority over privacy laws.
• Added risks related to the inability to accurately predict consumer preferences, offer new devices, and potential impacts on revenue and market share.
• Failure to maintain effective internal controls over financial reporting could impact financial accuracy.
• Mentioned risks related to the inability to maintain effective internal control over financial reporting, potentially leading to significant damages and expenses.