Risk Factors Update Summary

• Increased legal and financial compliance costs to XBP Europe could potentially have a significant adverse effect.
• The company seeks to refinance approximately $1.1 billion of long-term debt, which represents 26% of total consolidated assets.
• The company's ability to generate positive cash flow is crucial for its long-term viability.
• Economic downturns like those in North America and EMEA could result in decreased demand.
• Failure to comply with U.S. Foreign Corrupt Practices Act and other anti-corruption laws could have adverse consequences.
• The outstanding shares of Common Stock increased significantly from 1,259,393,748 at the start of 2022 to 1,655,365,353 at the end of 2023.
• The company may need to effect one or more reverse stock splits to maintain Nasdaq listing.
• The company's cybersecurity vulnerabilities and criminal activities pose a significant risk to its operations and customer data security.
• Failure to attract, train, and retain skilled professionals may materially adversely affect business.
• Failure to comply with privacy and security regulations could result in expenses and liabilities.
• Compliance with industry-specific laws and regulations may limit customer use and adoption of services.
• The company received a notice from Nasdaq regarding non-compliance with listing rules, potentially leading to delisting.
• The company faces increased competition as more companies enter its markets, potentially impacting revenue and profitability.
• Increased labor costs due to competition may lead to higher operating expenses.