Risk Factors Update Summary

• The company incurred an operating loss of $65 million for the year ended December 31, 2023, a decrease from $111 million in 2022.
• Added numerous data privacy and security laws, including data breach notification laws, with fines up to $1,500 per violation.
• The company's total indebtedness decreased from approximately $56 million to $25 million from 2022 to 2023.
• Introduced comprehensive privacy laws in various U.S. states, like the CCPA, with fines up to $7,500 per intentional violation.
• The number of employees increased from 161 to 272 full-time employees, with 25 contractors and 3 interns as of December 31, 2023.
• Disclosed potential fines of up to 20 million Euros under the EU GDPR and 17.5 million pounds sterling under the UK GDPR.
• The company's federal net operating loss carryforwards increased from $141 million to $197 million, and state net operating loss carryforwards increased from $142 million to $232 million from 2022 to 2023.
• Mentioned the completion of a business combination with ElectraMeccanica, issuing 1,766,388 shares of Common Stock.
• The company may face regulatory limitations on selling vehicles directly to consumers, impacting its ability to sell vehicles.
• Noted the potential impact of public health crises on business operations and the global economy.
• The company's financial results may vary significantly due to fluctuations in product development cycle, operating costs, and demand.
• The company relies on complex machinery for manufacturing, involving significant uncertainty and risk in operational performance and costs.