▸ For the year ended December 31, 2024, financing activity to sustain ongoing losses included (1) issuance of common stock approximately $0.9 million and (2) payments on the 2022 Streeterville Note $1.0 million.· · · · · ● 1 ▸ Foreign currency fluctuations may adversely affect our financial results.· · · · · ● 1 ▸ Global trade policies, including tariffs, could increase costs and disrupt our supply chain, adversely affecting our operations and profitability.· · · · · ● 1 ▸ Historically, we have experienced long sales-cycles, as well as slow ramp-up by new customers to purchase large amounts of LED products from us. Given the fiercely competitive lighting market in which we operate, we are constantly trying to balance· · · · · ● 1 ▸ We may fail to secure sufficient additional financing, which could prevent us from executing our business plan and continuing as a going concern.· · · · · ● 1 ▸ Our Chief Executive Officer currently serves as our Principal Financial Officer, which may impact our internal controls and increase risks related to financial reporting.· · · · ● ● 2 ▸ Our business and operations are significantly dependent on Sander Electronics, which creates material conflicts of interest and business risks.· · · · ● ● 2 ▸ We may be subject to intellectual property infringement claims or other allegations by third parties, which may materially and adversely affect our business, results of operations and prospects.· · · ● ● ● 3 ▸ Growing concerns about climate change may result in the imposition of additional regulations or restrictions to which we may· ● ● ● ● ● 5 ▸ We may be exposed to certain regulatory and financial risks related to climate change.· ● ● ● ● ● 5 ▸ We have a history of failing to comply with the continued listing requirements of Nasdaq, although we have successfully cured all the pre-existed deficiency, we may not be able to cure any deficiency timely in the future.· · · · ● · 1 ▸ We rely on arrangements with independent shipping companies for the delivery of our products from vendors abroad. The failure or inability of these shipping companies to deliver products or the unavailability of shipping or port services, even· · · ● · · 1 ▸ Statements and Supplementary Data,” of this Annual Report includes disclosure describing the existence of conditions that raise substantial doubt about our ability to continue as a going concern for a reasonable period of time.· ● · · · · 1 ▸ Our failure to comply with the continued listing requirements of Nasdaq could adversely affect the price of our common stock and its liquidity.● ● ● ● ● · 5 ▸ The long-term impacts caused by the COVID-19 pandemic could continue to have an adverse effect on our business.● ● ● · · · 3 rw ▸ If we do not anticipate and effectively manage these risks, these factors may have a material adverse impact on our business operations.● · ● · ● ● 4 ▸ A significant portion of our business is dependent upon the existence of government funding, which may not be available into the future and could result in a reduction in sales and harm to our business.● ● ● ● ● ● 6 ▸ As a “thinly-traded” stock with a relatively small public float, the market price of our common stock is highly volatile and may decline regardless of our operating performance.● ● ● ● ● ● 6 ▸ Customers may be unable to obtain financing to make purchases from us.● ● ● ● ● ● 6 ▸ Depressed general economic conditions may adversely affect our operating results and financial condition.● ● ● ● ● ● 6 ▸ For the year ended December 31, 2025, we reported a net loss of $1.0 million and are dependent upon the availability of financing in order to continue our business.● ● ● ● ● ● 6 rw ▸ If we are not able to compete effectively against companies with lower cost structures or greater resources, or new competitors who enter our target markets, our sales will be adversely affected.● ● ● ● ● ● 6 ▸ If we are unable to attract or retain qualified personnel, our business and product development efforts could be harmed.● ● ● ● ● ● 6 ▸ If we are unable to implement plans to increase sales and control expenses to manage future growth effectively, our profitability goals and liquidity will be adversely affected.● ● ● ● ● ● 6 ▸ Our business may suffer if we fail to comply with government contracting laws and regulations.● ● ● ● ● ● 6 ▸ Our net sales might be adversely impacted if our lighting systems do not meet certain certification and compliance standards.● ● ● ● ● ● 6 ▸ Our operating results may fluctuate due to factors that are difficult to forecast and not within our control.● ● ● ● ● ● 6 ▸ Our products could contain defects, or they may be installed or operated incorrectly, which could reduce sales of those products or result in claims against us.● ● ● ● ● ● 6 ▸ Our results of operations, financial condition and business could be harmed if we are unable to balance customer demand and capacity.● ● ● ● ● ● 6 ▸ group Risks Associated with Legal and Regulatory Matters● ● ● ● ● ● 6 ▸ group Risks Associated with Our Business● ● ● ● ● ● 6 ▸ group Risks Associated with an Investment in Our Common Stock● ● ● ● ● ● 6 ▸ The ability to use our net operating loss carryforwards and certain other tax attributes may be limited.● ● ● ● ● ● 6 ▸ The cost of compliance with environmental, health, safety, and other laws and regulations could adversely affect our results of operations or financial condition.● ● ● ● ● ● 6 ▸ The exercise of outstanding warrants to purchase our common stock or the conversion of shares of our Series A Preferred Stock (as defined below) into shares of common stock may dilute the ownership interest of our investors.● ● ● ● ● ● 6 rw ▸ We could issue additional shares of common stock or preferred stock without stockholder approval, or new securities with terms or rights superior to those of our existing shareholders, which may adversely affect the market price of our common stock.● ● ● ● ● ● 6 rw ▸ We have a history of operating losses and will incur losses in the future as we continue our efforts to grow sales and streamline our operations at a profitable level.● ● ● ● ● ● 6 ▸ We have international operations and are subject to risks associated with operating in international markets.● ● ● ● ● ● 6 ▸ We have never paid dividends on our common stock, and we do not anticipate paying any cash dividends in the foreseeable future.● ● ● ● ● ● 6 ▸ We may be subject to confidential information theft or misuse, which could harm our business and results of operations.● ● ● ● ● ● 6 ▸ We may be subject to legal claims against us or claims by us that could have a significant impact on our resulting financial performance.● ● ● ● ● ● 6 
