Risk Factors Update Summary

• Addition of emerging technologies like artificial intelligence and machine learning subject to new laws.
• Inclusion of potential significant fines, penalties, and corrective actions for non-compliance with laws.
• Cybersecurity risks have been added, with a focus on potential breaches and impacts. This change might result in increased vulnerability to cyber attacks.
• Expansion of regulatory risks related to FDA enforcement actions, litigation, fines, and penalties.
• Costs have increased from $63.2 million to $110.4 million in 2022, and to $144.3 million in 2021. This change indicates a significant rise in losses.
• The U.S. eyewear market size decreased from $76 billion in 2022 to $66 billion in 2023. This change reflects a notable decline in market value.
• Glasses wearers purchasing new glasses increased from every two years to every two and a half years. This change may impact customer purchasing frequency.
• Increase in net operating loss carryforward from $219 million to $196 million.
• The number of retail stores has increased from 200 to 237, with 195 locations in the U.S. and 5 in Canada. This change signifies an expansion in physical retail presence.
• The prescription eyeglasses market size decreased from $43 billion in 2022 to $36 billion in 2023. This change indicates a reduction in the market value.
• Implementation of new controls and processes to improve IT-dependent and application controls.
• The number of adults in the U.S. using some form of vision correction decreased from approximately 275 million to 208 million. This change suggests a decrease in the market size.
• Potential impacts of climate change legislation on energy-related costs and operating expenses.
• Uncertainty regarding the potential impact of future climate change legislation and regulations.