Risk Factors Update Summary

• Risks related to completing the new production facility in Conway, Arkansas, with construction starting in late 2022, and potential expenses incurred, impacting ability to meet demand and revenue targets.
• Increased costs due to disruptions in the supply chain could result in decreased revenues.
• Increased net losses and uncertainty in achieving profitability due to large investments in distribution network, with net losses reported as $34.6 million in 2023, $55.5 million in 2022, and $21.3 million in 2021.
• Quality control problems could lead to product recalls, affecting sales and brand reputation.
• Potential limitations on future growth opportunities due to overestimating addressable market size, impacting future growth prospects and financial condition.
• A significant product liability claim or judgment may reduce sales and harm the company's reputation.
• Risks associated with international business expansion, including exposure to additional regulatory regimes and compliance challenges.
• Climate change and water scarcity could have a material adverse effect on business operations.
• Increased risks related to cybersecurity threats, including sophisticated hacking techniques and potential breaches, impacting business operations and financial condition.
• Fluctuations in business due to seasonality and market conditions could impact performance.
• Risks associated with maintaining effective internal controls over financial reporting, with identified material weaknesses impacting financial statements and disclosures.
• Risks related to outstanding warrants, with 19,372,144,916 warrants outstanding as of 2023, potentially leading to dilution and affecting market price of Common Shares.