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Investor Presentaiton

RISK FACTORS (CONT.) • . . • • . • • • • • . GLAAM's revenue largely depends on continuing domestic and global demand for architectural glass, large media displays, and associated digital content. Its sales may not grow at the rate it expects. If new construction levels out and repair and remodeling markets decline, such market pressures could negatively affect GLAAM's results of operations. GLAAM's government sector sales, which comprise a significant portion of its sales, may be negatively affected by presidential and congressional elections, policy changes, government land development plan changes and other political local political events. The IT, vertical real estate and large format wallscape sectors are regulated and any new or modified regulatory restrictions could negatively affect GLAAM's sales and results of operations. Changes in building codes could lower the demand for GLAAM's G-Glass technology. GLAAM sometimes manages the installation of its products, which subjects it to risks and costs that may impact its profit margin. GLAAM sometimes relies on third-party contractors for the installation of its products, which subjects it to risks and costs that are out of its control. GLAAM is subject to labor, health, construction/building and safety regulations, and may be exposed to liabilities and potential costs for lack of compliance. GLAAM will incur increased costs and become subject to additional regulations and financial reporting obligations as a result of becoming a newly public company. GLAAM relies on key researchers and engineers, senior management and production facility operators, and the loss of the services of any such personnel or the inability to attract and retain them may negatively affect its business. Equipment failures, delays in deliveries and catastrophic loss at GLAAM's manufacturing facilities could lead to production curtailments or shutdowns that prevent it from producing its products. GLAAM may be adversely affected by disruptions to its manufacturing facilities or disruptions to its customer, supplier or employee base. GLAAM operates with a modest inventory, which may make it difficult for it to efficiently allocate capacity on a timely basis in response to changes in demand. GLAAM may experience losses on inventories. Any issues or delays in meeting GLAAM's projected manufacturing costs and production capacity could adversely impact its business, prospects, operating results and financial condition. GLAAM's failure to properly manage the distribution of its products and services could result in the loss of revenues and profits. GLAAM's business involves complex manufacturing processes that may cause personal injury or property damage, subjecting it to liabilities and possible losses or other disruptions of its operations in the future, which may not be covered by insurance. GLAAM's business relies on its patent rights which may be narrowed in scope or found to be invalid or otherwise unenforceable. Failure to protect its intellectual property rights could impair GLAAM's competitiveness and harm its business and future prospects. GLAAM is subject to potential exposure to environmental liabilities and is subject to environmental regulation and any such liabilities or regulation may negatively affect its costs and results of operations in the future. Earthquakes, tsunamis, floods, severe health epidemics (including the ongoing global COVID-19 pandemic and any possible recurrence of other types of widespread infectious diseases) and other natural calamities could materially adversely affect GLAAM's business, results of operations or financial condition. GLAAM's business, results of operations and financial condition have been, and could continue to be, adversely affected by the COVID-19 pandemic. GLAAM continues to face significant risks associated with its international expansion strategy. GLAAM's financial results could vary significantly from quarter to quarter and are difficult to predict. GLAAM PRIVATE AND CONFIDENTIAL // 52 ◉CAPTIVISION
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