Risk Factors Update Summary

• Net sales increased from $163,181 to $166,424. This change might result in increased revenue.
• Loss of largest customer's net sales representation decreased from 15% to 13% in 2023.
• Enhanced cybersecurity measures implemented, with significant investments in resources for protection and detection.
• Net losses incurred each year since inception, with a significant amount invested in growing business.
• Disruption at third-party manufacturing and distribution facilities could have a material adverse effect.
• Retail sales increased from $145,041 to $148,299. This change might indicate growing consumer demand.
• Increase in the number of holders of record for Class A and Class B common stock.
• The Company increased its valuation allowance against deferred tax assets from $72 million to $75 million.
• Addition of a Clawback Policy for recoupment of excess Incentive-Based Compensation. This change might result in significant financial implications for executives.
• Change in vesting schedule for Restricted Stock Units (RSUs) from 12 to 18 months post-Termination of Employment.
• Failure to effectively compete in the commercial beverage industry may hinder market position improvement.
• E-commerce channel represented a significant portion of sales, with most sales expected through a small number of customers.
• Dependence on a limited number of suppliers for raw materials, impacting product supply and profitability.
• Addition of accelerated vesting clause for RSUs upon Qualifying Termination post-Change in Control.
• Deferred tax assets subject to the Tax Receivable Agreement were determined to be fully realizable, totaling $55.8 million in 2022 and $56.2 million in 2023.
• Failure to maintain relationships with existing customers or develop new ones may harm business growth.
• Gross profit increased by $4.7 million, primarily driven by pricing increases and partially offset by lower volumes.
• Property and equipment, net increased from $4,641 to $2,109. This change might impact asset valuation.
• Introduction of a policy for recouping excess compensation due to financial restatements. This could impact executive compensation significantly.
• The Company added a Tax Receivable Agreement (TRA) with shareholders, impacting deferred tax assets and liabilities.
• Inclusion of a provision for Dividend Equivalents for RSUs. This change may affect total compensation for participants.
• Selling and marketing expenses increased by $9.4 million due to higher warehousing and distribution costs.
• Introduction of Dividend Equivalents for RSUs based on cash dividends paid to holders of Common Stock.
• General and administrative expenses increased by $9.3 million, primarily due to increased headcount and personnel costs.
• Adoption of ASU 2021-04 affecting accounting restatements and recoupment of excess compensation. This may impact financial reporting accuracy.
• Inclusion of clawback provision for RSUs and shares of Common Stock issued pursuant to Vested RSUs.
• The Company diversified its sources of supply for stevia leaf extract, testing and approving a new supplier in 2023.
• Equity-based compensation expense decreased by $18.6 million, mainly due to the acceleration of vesting of RSU awards.
• Implementation of a policy for recouping Incentive-Based Compensation based on financial reporting measures. This could affect executive compensation structures.
• Clarification on the expiration and exercisability of Nonqualified Stock Options post-Termination of Employment.
• The Company increased its equity-based compensation from $26.9 million to $77.7 million in 2022.
• Net cash used in operating activities decreased by $4.5 million, primarily due to a net loss of $28.3 million.
• Introduction of a Recovery Period definition for recouping excess compensation. This may impact the timing of recoupment actions.
• The Company's net loss decreased from $47.6 million to $28.3 million in 2023.
• Inclusion of a provision for the Company to recover excess Incentive-Based Compensation. This change may lead to financial adjustments for executives.
• The Company's total equity increased from $81.8 million to $109.9 million in 2023.