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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>As filed with the Securities and Exchange Commission
on November 1, 2024</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM S-1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>REGISTRATION STATEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>UNDER</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>THE SECURITIES ACT OF 1933</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Faraday
Future Intelligent Electric Inc.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Exact Name of Registrant as Specified in Its
Charter)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>3711</B></FONT></TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 32%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>84-4720320</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(State or Other Jurisdiction of<BR>
Incorporation or Organization)</B></FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(Primary standard industrial<BR>
 classification code number)</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>(I.R.S. Employer<BR>
Identification No.)</B></FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>18455 S. Figueroa Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Gardena, CA 90248<BR>
(424) 276-7616<BR>
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant&rsquo;s Principal Executive Offices)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Koti Meka</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Chief Financial Officer</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Faraday Future Intelligent Electric Inc.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>18455 S. Figueroa Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Gardena, CA 90248</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(310) 415-4807</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(Name, Address, Including Zip Code, and Telephone
Number, Including Area Code, of Agent for Service)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>Copies to:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>M. Ali Panjwani</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pryor Cashman LLP</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>7 Times Square</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>New York, NY 10036</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Tel: (212) 421-4100</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Approximate date of commencement
of proposed sale to the public: From time to time after the effective date of this registration statement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If any of the securities being
registered on this form are to be offered on a delayed or continuous basis pursuant to Rule&nbsp;415&nbsp;under the&nbsp;Securities Act
of 1933&nbsp;check the following box:&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this form is filed to register
additional securities for an offering pursuant to Rule&nbsp;462(b)&nbsp;under the&nbsp;Securities Act, check the following box and list
the&nbsp;Securities Act&nbsp;registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this form is a post-effective
amendment filed pursuant to Rule&nbsp;462(c)&nbsp;under the&nbsp;Securities Act, check the following box and list the&nbsp;Securities
Act&nbsp;registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If this form is a post-effective
amendment filed pursuant to Rule&nbsp;462(d)&nbsp;under the&nbsp;Securities Act, check the following box and list the&nbsp;Securities
Act&nbsp;registration statement number of the earlier effective registration statement for the same offering. <FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging
growth company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo; &ldquo;smaller reporting
company,&rdquo; and &ldquo;emerging growth company&rdquo; in Rule&nbsp;12b-2&nbsp;of the&nbsp;Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt">Large accelerated filer&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-size: 10pt">Accelerated filer </FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Non-accelerated filer &nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Smaller reporting company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Emerging growth company </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section&nbsp;7(a)(2)(B) of the Securities Act.&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 10.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The registrant hereby amends
this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further
amendment that specifically states that this registration statement shall thereafter become effective in accordance with Section&nbsp;8(a)
of the Securities Act or until the registration statement shall become effective on such date as the Securities and Exchange Commission,
acting pursuant to said Section&nbsp;8(a), may determine.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="color: Red">The
information in this preliminary prospectus is not complete and may be changed. Neither we nor the selling securityholders may sell these
securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus
is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or
sale is not permitted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt; color: Red"><B>PRELIMINARY PROSPECTUS</B></FONT></TD>
    <TD STYLE="color: Red; text-align: right"><B>SUBJECT TO COMPLETION &mdash; DATED NOVEMBER 1, 2024</B></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Up to 29,659,781 Shares of Class A Common Stock
Issued to a Former Vendor and</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Issuable Upon Exercise of the Warrants and PA
Warrants and Conversion of the SPA Notes and Applicable Tranche D Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus relates to the issuance by us, and the offer and sale
from time to time by the Selling Securityholders, of up to an aggregate of 29,659,781 shares of the Class A common stock, par value $0.0001
per share, of Faraday Future Intelligent Electric Inc. (&ldquo;FFIE&rdquo; and such Class A common stock, the &ldquo;Class A Common Stock&rdquo;),
of which (i) up to 28,017,654 Class A Common Stock are issuable upon exercise of certain warrants (the &ldquo;Warrants&rdquo;), and placement
agent warrants (the &ldquo;PA Warrants&rdquo;); and conversion of certain secured convertible promissory notes (the &ldquo;Secured Notes&rdquo;)
and certain Incremental Notes (as defined below, together with the Secured Notes, the &ldquo;SPA Notes&rdquo;) underlying the incremental
warrants (the &ldquo;Incremental Warrants&rdquo;, together with the Warrants and PA Warrants, the &ldquo;SPA Warrants&rdquo;), issued
in a private placement (such Class A Common Stock, as exercisable and convertible under the SPA Notes and the Warrants and PA Warrants,
the &ldquo;SPA Shares&rdquo;), to certain institutional investors pursuant to a Securities Purchase Agreement, dated as of September 5,
2024 (the &ldquo;SPA&rdquo;, with Secured Notes, Warrants, and Incremental Warrants, the &ldquo;Financing Documents&rdquo;); (ii) up to
561,833 shares of Class A Common Stock underlying the Applicable Tranche D Notes held by several holders, issued by the Company pursuant
to certain Pre-existing SPA; and (iii) 1,080,294 shares of Class A Common Stock issued to Palantir Technologies Inc. (&ldquo;Palantir&rdquo;)
in settlement of amounts owed to Palantir. Additional details regarding the securities to which this prospectus relates and the Selling
Securityholders are set forth in this prospectus under &ldquo;<I>Information Related to Offered Securities</I>&rdquo; and &ldquo;<I>Description
of Securities.</I>&rdquo;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are registering the securities
for resale pursuant to the Selling Securityholders&rsquo; registration rights under the SPA between us and the Selling Securityholders.
Our registration of the securities covered by this prospectus does not mean that the Selling Securityholders will offer or sell any of
the SPA Shares. The Selling Securityholders may offer, sell or distribute all or a portion of their SPA Shares in a number of different
ways and at varying prices, including publicly or through private transactions at prevailing market prices or at negotiated prices. We
will not receive any proceeds from the sale of the SPA Shares pursuant to this prospectus. We provide more information about how the Selling
Securityholders may sell the SPA Shares in the section entitled &ldquo;<I>Plan of Distribution</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Sales of a substantial
number of shares of Class A Common Stock in the public market, including the resale of the shares of common stock held by FFIE stockholders
pursuant to this prospectus or pursuant to Rule 144, could occur at any time. These sales, or the perception in the market that the holders
of a large number of shares of Class A Common Stock intend to sell shares, could reduce the market price of the Class A Common Stock and
make it more difficult for you to sell your holdings at times and prices that you determine are appropriate. Furthermore, we expect that,
because there is a large number of shares being registered pursuant to the registration statement of which this prospectus forms a part,
the Selling Securityholders will continue to offer the securities covered thereby pursuant to this prospectus or pursuant to Rule 144
for a significant period of time, the precise duration of which cannot be predicted. Accordingly, the adverse market and price pressures
resulting from an offering pursuant to the registration statement may continue for an extended period of time</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our shares of Class A Common
Stock and our public warrants (&ldquo;Public Warrants&rdquo;) are listed on The Nasdaq Stock Market (&ldquo;Nasdaq&rdquo;), under the
symbols &ldquo;FFIE&rdquo; and &ldquo;FFIEW,&rdquo; respectively. On October 28, 2024, the closing price of our Class A Common Stock was
$2.24 per share and the closing price of our Public Warrants was $0.021 per Public Warrant.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>The shares of Class A Common
Stock being offered pursuant to this prospectus are shares of Faraday Future Intelligent Electric Inc. (&ldquo;FFIE&rdquo;), a holding
company incorporated in the State of Delaware. As a holding company with no material operations of its own, FFIE conducts its operations
through its operating subsidiaries. We currently have a majority of our operations in the U.S. conducted through our U.S.-domiciled operating
subsidiaries. We also operate our business in the People&rsquo;s Republic of China and plan to have significant operations in the future
in both Mainland China and Hong Kong (together, &ldquo;PRC&rdquo; or &ldquo;China&rdquo;) through our subsidiaries organized in the PRC
(collectively, the &ldquo;PRC Subsidiaries&rdquo;). Investors in our Class A Common Stock should be aware that they are purchasing equity
solely in FFIE, a Delaware holding company. There are various risks associated with our current operating presence in China and the potential
expansion of our operations in PRC, which is subject to political and economic influence from China. Recently, the Chinese government
initiated a series of regulatory actions and made statements to regulate business operations in China with little advance notice, including
cracking down on illegal activities in the securities market, enhancing supervision over China-based companies that seek to conduct offshore
securities offerings or be listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts
in anti-monopoly enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon legislative or administrative
regulation-making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will
be modified or promulgated if any, and the potential impact such modified or new laws and regulations will have on our business operations,
our ability to accept foreign investments and to maintain FFIE&rsquo;s listing on a U.S. exchange. The Chinese government may intervene
or influence the operations of our PRC Subsidiaries, or at any time exert more control over offerings conducted overseas and foreign investment
in China-based issuers in accordance with PRC laws and regulations, which could result in a material change in our operations and/or a
material reduction in the value of our Class A Common Stock. Additionally, the governmental and regulatory interference could significantly
limit or completely hinder our and the Selling Securityholders&rsquo; ability to offer or continue to offer our shares of Class A Common
Stock to investors and cause the value of such securities to significantly decline or be worthless. For a detailed description of risks
related to our PRC operations, see &ldquo;<I>Risk Factors &ndash; Risks Related to FF&rsquo;s Operations in China.</I>&rdquo;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>We are an &ldquo;emerging
growth company&rdquo; under federal securities laws and are subject to reduced public company reporting requirements. Investing in our
Class A Common Stock involves a high degree of risks. See the section entitled &ldquo;<I>Risk Factors&rdquo; </I>beginning on page 15</B>&nbsp;
<B>of this prospectus to read about factors you should consider before buying our securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>The date of this prospectus is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2024.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 88%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1.5pt solid; text-align: center; width: 10%"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_001"><FONT STYLE="font-size: 10pt">ABOUT THIS PROSPECTUS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">ii</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_002"><FONT STYLE="font-size: 10pt">CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">iii</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_003"><FONT STYLE="font-size: 10pt">SUMMARY</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_004"><FONT STYLE="font-size: 10pt">RISK FACTORS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">15</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#e_001">SELECTED FINANCIAL DATA</A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">68</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_005"><FONT STYLE="font-size: 10pt">USE OF PROCEEDS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">71</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_006"><FONT STYLE="font-size: 10pt">DETERMINATION OF OFFERING PRICE</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">71</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_007"><FONT STYLE="font-size: 10pt">MARKET INFORMATION FOR CLASS A COMMON STOCK AND DIVIDEND POLICY</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">71</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 9.25pt; text-indent: -9pt"><FONT STYLE="font-size: 10pt"><A HREF="#a_008">MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">73</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_009"><FONT STYLE="font-size: 10pt">BUSINESS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">107</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_010"><FONT STYLE="font-size: 10pt">MANAGEMENT</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">135</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_011"><FONT STYLE="font-size: 10pt">EXECUTIVE AND DIRECTOR COMPENSATION</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">144</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_012"><FONT STYLE="font-size: 10pt">CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">155</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_013"><FONT STYLE="font-size: 10pt">PRINCIPAL STOCKHOLDERS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">169</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_014"><FONT STYLE="font-size: 10pt">SELLING SECURITYHOLDERS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">171</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_015"><FONT STYLE="font-size: 10pt">DESCRIPTION OF SECURITIES</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">176</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_016"><FONT STYLE="font-size: 10pt">MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">192</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_017"><FONT STYLE="font-size: 10pt">PLAN OF DISTRIBUTION</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">195</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_018"><FONT STYLE="font-size: 10pt">LEGAL MATTERS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">198</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_019"><FONT STYLE="font-size: 10pt">EXPERTS</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">198</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><A HREF="#a_020"><FONT STYLE="font-size: 10pt">CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">198</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><A HREF="#a_021"><FONT STYLE="font-size: 10pt">WHERE YOU CAN FIND MORE INFORMATION</FONT></A></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">199</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><A HREF="#h_002">INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</A></P>


</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">199</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">You should rely only on the
information provided in this prospectus, as well as the information incorporated by reference into this prospectus and any applicable
prospectus supplement. Neither we nor the Selling Securityholders have authorized anyone to provide you with different information. Neither
we nor the Selling Securityholders are making an offer of these securities in any jurisdiction where the offer is not permitted. You should
not assume that the information in this prospectus, any applicable prospectus supplement or any documents incorporated by reference is
accurate as of any date other than the date of the applicable document. Since the respective dates of this prospectus and the documents
incorporated by reference into this prospectus, our business, financial condition, results of operations and prospects may have changed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Unless the context indicates
otherwise, references in this prospectus to &ldquo;FFIE&rdquo; refer to Faraday Future Intelligent Electric Inc. (f/k/a Property Solutions
Acquisition Corp.), a holding company incorporated in the State of Delaware, and not to its subsidiaries, and references herein to the
&ldquo;Company,&rdquo; &ldquo;FF,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our&rdquo; and similar terms refer to FFIE and its
consolidated subsidiaries. We refer to our primary operating subsidiary in the U.S., Faraday&amp;Future Inc., as &ldquo;FF U.S.&rdquo;
We refer to all our subsidiaries organized in China (including Hong Kong) collectively as the &ldquo;PRC Subsidiaries,&rdquo; a complete
list of which is set forth in <I>Exhibit 21.1</I> to the registration statement of which this prospectus forms a part.&nbsp; References
to &ldquo;PSAC&rdquo; refer to Property Solutions Acquisition Corp., a Delaware corporation, our predecessor company prior to the consummation
of the Business Combination (as defined herein), and &ldquo;Legacy FF&rdquo; refers to FF Intelligent Mobility Global Holdings Ltd., an
exempted company with limited liability incorporated under the laws of the Cayman Islands, together with its consolidated subsidiaries,
prior to the Business Combination (as defined herein).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_001"></A>ABOUT THIS PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus is part of
a registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;). The Selling Securityholders
may, from time to time, sell the securities offered by them described in this prospectus. We will not receive any proceeds from the sale
by such Selling Securityholders of the SPA Shares offered by them described in this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Neither we nor the Selling
Securityholders have authorized anyone to provide you with any information or to make any representations other than those contained in
this prospectus, or any applicable prospectus supplement or any free writing prospectuses prepared by or on behalf of us or to which we
have referred you. Neither we nor the Selling Securityholders take responsibility for, and can provide no assurance as to the reliability
of, any other information that others may give you. Neither we nor the Selling Securityholders will make an offer to sell these securities
in any jurisdiction where the offer or sale is not permitted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may also provide a prospectus
supplement or post-effective amendment to the registration statement to add information to, or update or change information contained
in, this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective amendment to the
registration statement together with the additional information to which we refer you in the section of this prospectus entitled &ldquo;<I>Where
You Can Find More Information</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_002"></A>CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus, any accompanying
prospectus supplement and the documents incorporated by reference herein and therein may contain forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although
the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable,
the Company cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are
inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements
concerning the Company&rsquo;s possible or assumed future actions, business strategies, events or results of operations, are forward-looking
statements. These statements may be preceded by, followed by or include the words &ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; &ldquo;expects,&rdquo;
&ldquo;projects,&rdquo; &ldquo;forecasts,&rdquo; &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;should,&rdquo; &ldquo;seeks,&rdquo; &ldquo;plans,&rdquo;
&ldquo;scheduled,&rdquo; &ldquo;anticipates&rdquo; or &ldquo;intends&rdquo; or similar expressions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Forward-looking statements
are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should
understand that the following important factors, among others, could affect the Company&rsquo;s future results and could cause those results
or other outcomes to differ materially from those expressed or implied in the Company&rsquo;s forward-looking statements:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to continue as a going concern and improve its liquidity and financial
                                            position;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to pay its outstanding obligations;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to remediate its material weaknesses in internal control over financial
                                            reporting and the risks related to the restatement of previously issued consolidated financial
                                            statements;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s limited operating history and the significant barriers to growth it faces;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s history of losses and expectation of continued losses;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to execute on its plans to develop and market its vehicles and the
                                            timing of these development programs;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s estimates of the size of the markets for its vehicles and cost to bring those
                                            vehicles to market; the rate and degree of market acceptance of the Company&rsquo;s vehicles;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to cover future warrant claims;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            success of other competing manufacturers;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            performance and security of the Company&rsquo;s vehicles;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">current
                                            and potential litigation involving the Company;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to receive funds from, satisfy the conditions precedent of and close
                                            on the various financings described elsewhere by the Company;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            result of future financing efforts, the failure of any of which could result in the Company
                                            seeking protection under the Bankruptcy Code;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s indebtedness; the Company&rsquo;s ability to cover future warranty claims;
                                            the Company&rsquo;s ability to use its &ldquo;at-the-market&rdquo; program; insurance coverage;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general
                                            economic and market conditions impacting demand for the Company&rsquo;s products;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential
                                            negative impacts of a reverse stock split;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">potential
                                            cost, headcount and salary reduction actions may not be sufficient or may not achieve their
                                            expected results;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">circumstances
                                            outside of the Company&rsquo;s control, such as natural disasters, climate change, health epidemics
                                            and pandemics, terrorist attacks, and civil unrest;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">risks
                                            related to the Company&rsquo;s operations in China;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            success of the Company&rsquo;s remedial measures taken in response to the Special Committee findings;
                                            the Company&rsquo;s dependence on its suppliers and contract manufacturer;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to develop and protect its technologies;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            Company&rsquo;s ability to protect against cybersecurity risks; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            ability of the Company to attract and retain employees, any adverse developments in existing
                                            legal proceedings or the initiation of new legal proceedings, and volatility of the Company&rsquo;s
                                            stock price.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
and other factors that could cause actual results to differ from those implied by the forward-looking statements in this prospectus are
more fully described in the &ldquo;<I>Risk Factors</I>&rdquo; section. The risks described in &ldquo;<I>Risk Factors</I>&rdquo; are not
exhaustive. New risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, nor can the Company
assess the impact of all such risk factors on its business or the extent to which any factor or combination of factors may cause actual
results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. The Company
undertakes no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_003"></A>SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>This
summary highlights selected information appearing elsewhere in this prospectus, or the documents incorporated by reference herein. Because
it is a summary, it may not contain all of the information that may be important to you. To understand this offering fully, you should
read this entire prospectus, the registration statement of which this prospectus is a part and the documents incorporated by reference
herein carefully, including the information set forth under the heading &ldquo;Risk Factors&rdquo; and our financial statements.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
Company</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
is a California-based global shared intelligent mobility ecosystem company with a vision to disrupt the automotive industry.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">With
headquarters in Los Angeles, California, the Company designs and engineers next-generation intelligent, connected, electric vehicles.
FF manufactures vehicles at its production facility in Hanford, California, with the possibility of additional future production capacity
needs addressed through a contract manufacturing partner in South Korea. The Company has additional engineering, sales, and operational
capabilities in China and is exploring opportunities for potential manufacturing capabilities in China through a joint venture or other
arrangement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
its founding, the Company has created major innovations in technology and products, and a user centered business model. We believe these
innovations will enable FF to set new standards in luxury and performance that will enhance quality of life and redefine the future of
intelligent mobility.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Background
</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Property
Solutions Acquisition Corp., a special purpose acquisition company incorporated in Delaware, completed its initial public offering in
July 2020. On July 21, 2021, Faraday Future Intelligent Electric Inc. (f/k/a Property Solutions Acquisition Corp.), a Delaware corporation,
consummated the previously announced business combination pursuant to that certain Agreement and Plan of Merger, dated as of January
27, 2021 (as amended, the &ldquo;Merger Agreement&rdquo;), by and among FFIE, PSAC Merger Sub Ltd., an exempted company with limited
liability incorporated under the laws of the Cayman Islands and wholly-owned subsidiary of PSAC (&ldquo;Merger Sub&rdquo;), and FF Intelligent
Mobility Global Holdings Ltd., an exempted company with limited liability incorporated under the laws of the Cayman Islands (&ldquo;Legacy
FF&rdquo;). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Legacy FF, with Legacy FF surviving the merger
as a wholly-owned subsidiary of FFIE (the &ldquo;Business Combination&rdquo;). Upon the consummation of the Business Combination, the
registrant changed its name from &ldquo;Property Solutions Acquisition Corp.&rdquo; to &ldquo;Faraday Future Intelligent Electric Inc.&rdquo;
Legacy FF is considered FFIE&rsquo;s accounting acquirer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the
Merger Agreement, the Business Combination was effected on July 21, 2021 through the merger of Merger Sub with and into Legacy FF, with
Legacy FF surviving as the surviving company and a wholly-owned subsidiary of FFIE. Upon closing the Business Combination, FFIE received
$229.6 million in gross proceeds, of which FFIE received $206.4 million in cash, after payment of PSAC&rsquo;s transaction costs related
to the Business Combination and redemptions of $0.2 million. At the closing of the Business Combination, the outstanding Legacy FF Class&nbsp;A
ordinary shares, par value $0.00001 per share, Legacy FF Class&nbsp;B ordinary shares, par value $0.00001 per share, Legacy FF Class&nbsp;A-1
preferred shares, par value $0.00001 per share, Legacy FF Class&nbsp;A-2 preferred shares, par value $0.00001 per share, Legacy FF Class&nbsp;A-3
preferred shares, par value $0.00001 per share and Legacy FF redeemable preferred shares, par value $0.00001 per share were cancelled
and converted into a right to receive a pro rata portion of the 127.9 million shares of Class A Common Stock (13,323 shares of Class A
Common Stock after giving effect to subsequent reverse stock splits), and the outstanding Legacy FF converting debt and certain other
outstanding liabilities of Legacy FF were canceled and converted into the right to receive pro rata portions of approximately 24.5 million
shares of Class A Common Stock (2,553 shares of Class A Common Stock after giving effect to subsequent reverse stock splits) and the outstanding
Legacy FF Class&nbsp;B preferred shares, par value $0.00001 per share were canceled and converted into the right to receive pro rata portions
of approximately 64.0 million shares of Class B common stock (6,667 shares of Class B common stock after giving effect to subsequent reverse
stock splits), par value $0.0001 per share, of FFIE (the &ldquo;Class B Common Stock,&rdquo; and together with the Class A Common Stock,
the &ldquo;Common Stock&rdquo;). Additionally, Legacy FF options and Legacy FF warrants that were outstanding immediately prior to the
closing of the Business Combination (and by their terms did not terminate upon the closing of the Business Combination) remained outstanding
and converted into the right to purchase pro rata portions of approximately 44.9 million shares of Class A Common Stock (4,678 shares
of Class A Common Stock after giving effect to subsequent reverse stock splits). Holders of the Legacy FF shares issued and outstanding
as of immediately prior to the closing of the Business Combination also have the contingent right to receive up to 25.0 million shares
of Class A Common Stock (2,605 shares of Class A Common Stock after giving effect to subsequent reverse stock splits) in two tranches
upon the occurrence of certain stock price-based triggering events as set forth in the Merger Agreement (&ldquo;Earnout Shares&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On July 21, 2021, a number of purchasers (each, a &ldquo;Subscriber&rdquo;)
purchased from FFIE an aggregate of 76.1 million shares of Class A Common Stock (7,928 shares of Class A Common Stock after giving effect
to subsequent reverse stock splits) (the &ldquo;PIPE Shares&rdquo;), for a purchase price of $10.00 per share ($96,000 per share after
giving effect to subsequent reverse stock splits) and an aggregate purchase price of $761.4 million, out of which FFIE received $692.4
million after payment of FFIE&rsquo;s transaction costs of $69.0 million), pursuant to separate subscription agreements entered into effective
as of January 27, 2021 (each, a &ldquo;Subscription Agreement&rdquo; and such investment in the PIPE Shares by the Subscribers collectively,
the &ldquo;Private Placement&rdquo;). Pursuant to the Subscription Agreements, FFIE gave certain registration rights to the Subscribers
with respect to the PIPE Shares. The sale of the PIPE Shares was consummated concurrently with the closing of the Business Combination.</P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
shares of Class A Common Stock and our Public Warrants are currently listed on The Nasdaq Stock Market (&ldquo;Nasdaq&rdquo;) under the
symbols &ldquo;FFIE&rdquo; and &ldquo;FFIEW,&rdquo; respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The rights of holders of our Common Stock are governed by our third
amended and restated certificate of incorporation, as amended (the &ldquo;Amended and Restated Charter&rdquo;), our amended and restated
bylaws (the &ldquo;Amended and Restated Bylaws&rdquo;) and the Delaware General Corporation Law (the &ldquo;DGCL&rdquo;). The Pre-existing
SPA Notes were issued pursuant to the Securities Purchase Agreement, dated as of August 14, 2022, as amended on September 23, 2022 (the
&ldquo;Pre-existing SPA&rdquo;), between FFIE and an institutional investor (&ldquo;Investor&rdquo;), the Joinder and Amendment Agreement
to the Pre-existing SPA (the &ldquo;Joinder&rdquo;), dated as of September 25, 2022, by and among FFIE, Senyun International Ltd., the
Investor and RAAJJ Trading LLC (&ldquo;RAAJJ&rdquo;), the Limited Consent and Third Amendment to the Pre-existing SPA (the &ldquo;Third
Amendment&rdquo;), dated as of October 24, 2022, by and among the parties thereto, the Limited Consent and Amendment to the Pre-existing
SPA (the &ldquo;Fourth Amendment&rdquo;), dated as of November 8, 2022, by and among the parties thereto, the Letter Agreement and Amendment
to the Pre-existing SPA (the &ldquo;Senyun Amendment&rdquo;), dated as of December 28, 2022, by and among FFIE, the Investor, and Senyun,
the Limited Consent and Amendment No. 5 to the Pre-existing SPA (the &ldquo;Fifth Amendment&rdquo;), dated as of January 25, 2023, by
and among FFIE, Senyun, the Investor and other purchasers, the Amendment No. 6 to the Pre-existing SPA (the &ldquo;Sixth Amendment&rdquo;),
dated as of February 6, 2023, by and among FFIE, Senyun, FF Top Holding Ltd (&ldquo;FF Top&rdquo;), the Investor, Acuitas Capital, LLC
(&ldquo;Acuitas&rdquo;) and other purchasers, the Amendment No. 7 to the Pre-existing SPA (the &ldquo;Seventh Amendment&rdquo;), dated
as of March 23, 2023, by and among FFIE, Senyun, other purchasers, and the Amendment No. 8 to the Pre-existing SPA (the &ldquo;Eighth
Amendment&rdquo;), dated as of May 9, 2023, by and among FFIE, Senyun, other purchasers. In addition to the Pre-existing SPA Notes, certain
warrants were issued pursuant to the Pre-existing SPA and Joinder (the &ldquo;Pre-existing SPA Warrants&rdquo;). For more information,
see the section entitled &ldquo;<I>Description of Securities</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2021, the Company and Palantir entered into a Master Subscription Agreement (&ldquo;MSA&rdquo;) that sets froth the terms of the
Palantir&rsquo;s platform hosting arrangement, which was expected to be used as a central operating system for data and analytics. On
April 26, 2023, the Company received a letter from Palantir providing a notice of dispute regarding the Company&rsquo;s alleged material
breach of the MSA. The letter asserted that the Company had not paid invoices totaling $12.3 million of past due fees. On July 7, 2023,
Palantir filed a demand for Arbitration against the Company with Judicial Arbitration and Mediations Services, Inc., regarding a dispute
between Palantir and the Company over the MSA. Palantir alleged that the Company had refused to make payments under the MSA. Palantir
asserted claims for: (i) breach of contract; (ii) breach of the covenant of good faith and fair dealing; and (iii) unjust enrichment.
Palantir alleged that the amount in controversy was $41.5 million. On August 4, 2023, the Company submitted its response to Palantir&rsquo;s
arbitration demand. The Company&rsquo;s response included both affirmative defenses and a general denial of all allegations in Palantir&rsquo;s
arbitration demand. On March 11, 2024, the Company and Palantir executed a Settlement and Release Agreement in order to terminate the
MSA and resolve the disputes. The Company agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late
payments. This settlement includes mutual waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and
Palantir entered into an amendment to the Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.75 million
in cash, the Company agreed to issue Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A
Common Stock by October 1, 2024. The August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million
shares of Class A Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 2, 2024, the Company entered into that certain Waiver Agreement (the &ldquo;Waiver Agreement&rdquo;) with certain investors (each,
a &ldquo;Holder&rdquo; and, collectively, the &ldquo;Holders&rdquo;), who (a) beneficially own and hold one or more of the following
securities of the Company: (i) certain secured convertible notes of the Company (including any secured convertible notes issued in exchange
therefor, collectively, the &ldquo;Original Secured Notes&rdquo;) that were issued pursuant to that certain Pre-existing SPA, and (ii)
certain unsecured convertible notes of the Company (including any unsecured convertible notes issued in exchange therefore, collectively,
the &ldquo;Original Unsecured Notes&rdquo;, and together with the Original Secured Notes, the &ldquo;Original Notes&rdquo;) that were
issued pursuant to that certain Securities Purchase Agreement, dated as of May 8, 2023 (as amended, supplemented or otherwise modified
from time to time, the &ldquo;Original Unsecured SPA&rdquo;) and (b) have the right to acquire one or more of: (i) certain additional
secured convertible notes issuable in accordance with the terms to the Pre-existing SPA (the &ldquo;Additional Secured Notes&rdquo;)
and (ii) certain additional unsecured convertible notes (the &ldquo;Additional Unsecured Notes&rdquo;, and together with the Additional
Secured Notes, the &ldquo;Additional Notes&rdquo;, and together with the Original Notes, the &ldquo;Original SPA Notes&rdquo;), issuable
pursuant to the Original Unsecured SPA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to the Waiver Agreement, the Company had certain obligations under the Original SPA Notes to pay accrued and unpaid interest and a make-whole
amount of additional interest (the &ldquo;Make-Whole Amount&rdquo;) in cash in connection with conversions of such Original SPA Notes.
In an effort to reduce the Company&rsquo;s ongoing cash obligations pursuant to such Original SPA Notes and to encourage the continued
conversion of the Original SPA Notes into shares of Class A Common Stock, the Company has agreed to make certain voluntary adjustments
to the Original SPA Notes as described below. Pursuant to the Waiver Agreement, the Company irrevocably agreed that with respect to each
conversion of any Original SPA Note on or after the effective date of the Waiver Agreement, if the Holder delivers a conversion notice
(the &ldquo;Notice of Conversion&rdquo;) to the Company at a time that 90% of the VWAP (as defined in the Original SPA Notes) of the
Company&rsquo;s Class A Common Stock as of the trading day ended immediately prior to the time at which such Notice of Conversion is
delivered to the Company (each, an &ldquo;Adjustment Price&rdquo;) is less than the conversion price then in effect pursuant to the applicable
Original SPA Note (the &ldquo;Conversion Price&rdquo;), the Company shall voluntary reduce the conversion price solely with respect to
such portion of such Original SPA Note to be converted in accordance with such notice of conversion (and not with respect to any other
portion of such Original SPA Note) to such adjustment price (the &ldquo;Voluntary Adjustment&rdquo;). The Company also agreed, in exchange
for the Holder&rsquo;s waiver of any accrued and unpaid interest (if any, as of such conversion date) (an &ldquo;Interim Interest Waiver&rdquo;)
with respect to such aggregate principal of such Original SPA Note to be converted pursuant to such applicable notice of conversion (the
&ldquo;Full Voluntary Adjustment&rdquo;), to (i) further reduce such adjustment price in respect of a Voluntary Adjustment (as adjusted,
each a &ldquo;Full Adjustment Price&rdquo;); and (ii) issue a number of shares of the Company&rsquo;s Class A Common Stock to the Holder
such that the aggregate number of shares of Class A Common Stock to be issued to the Holder in such conversion at such Full Adjustment
Price equals the quotient of (x) the sum of (i) such aggregate principal of such Original SPA Note to be converted pursuant to such applicable
notice of conversion and (ii) any accrued and unpaid interest thereon, divided by (y) such adjustment price prior to any Interim Interest
Waiver. Such Full Voluntary Adjustment shall be applicable until the fifth (5th) business day after the Company delivers written notice
to the Holder electing to revoke such election.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Waiver Agreement, the Holders irrevocably agreed that instead of receiving the accrued and unpaid interest, each holder of any
such applicable Original SPA Note shall receive upon conversion of such Original SPA Note an amount in cash equal to all accrued and
unpaid interest on such Original SPA Note to such date of conversion (or such cash amount shall be deemed satisfied in full without any
payment of cash by the Company if the Company effects a Full Voluntary Adjustment with respect to the applicable notice of conversion)
with respect to the applicable notice of conversion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further
pursuant to the Waiver Agreement, a Holder&rsquo;s right to purchase any Additional Notes in any agreement with the Company (including,
without limitation, the Pre-existing SPA and/or the Original Unsecured SPA, as applicable) shall be extended until the first (1<SUP>st</SUP>)
anniversary of the effective date of the Waiver Agreement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company also intends to incorporate the changes in the Waiver Agreement into certain of its other existing notes and notes issuable in
the future pursuant to existing purchase agreements, as applicable, through one or more waivers, amendments and/or exchange agreements,
as applicable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 5, 2024, the Company entered into the SPA with certain institutional investors as purchasers (the &ldquo;Investors&rdquo;).
Pursuant to the SPA, the Company agreed to sell, and the Investors agreed to purchase, for approximately $30 million (collectively, the
&ldquo;Purchase Price&rdquo;), of which approximately $22.5 million was paid in cash and approximately $7.5 million was converted from
a previous loan to the Company, certain Secured Notes, Warrants and Incremental Warrants in two closings. The initial closing occurred
on September 12, 2024 and the second closing occurred on September 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Recent
Developments</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Recent
Governance Developments</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 9, 2024, Li Han resigned as a director of the Company for personal reasons. Ms. Han also served as a member of the Nominating and
Corporate Governance Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Effective
June 21, 2024, Macias Gini &amp; O&rsquo;Connell LLP (&ldquo;MGO&rdquo;)&nbsp;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">was
appointed as the Company&rsquo;s independent registered public accounting firm as of and for the year ending December 31, 2024. The appointment
of MGO follows the notification by Mazars USA LLP to FFIE on April 9, 2024 that it would resign as an auditor of the Company and, effective
on May 31, 2024, and would no longer be FFIE&rsquo;s independent registered public accounting firm.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 15, 2024, Jonathan Maroko notified the Company of his decision to resign from his position as Interim Chief Financial Officer
of the Company, effective September 20, 2024. <FONT STYLE="background-color: white">On September 17, 2024, the Board of Directors (the
&ldquo;Board&rdquo;) of the Company appointed Koti Meka as the Company&rsquo;s Chief Financial Officer and principal financial officer,
effective September 23, 2024.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
August 1, 2024, the Company filed </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a third amendment
<FONT STYLE="background-color: white">to the Company&rsquo;s </FONT>Amended and Restated Charter <FONT STYLE="background-color: white">with
the office of the Secretary of State of the State of Delaware to effect an increase in the number of authorized shares of Common Stock&rdquo;
from 463,312,500 to 4,169,812,500, increasing the total number of authorized shares of Common Stock and preferred stock from 473,312,500
to 4,179,812,500.</FONT> The Certificate of Amendment was authorized by the stockholders of the Company at the Company&rsquo;s Annual
Meeting of Stockholders held on July 31, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Reverse
Stock Splits</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 23, 2024,&nbsp; <FONT STYLE="background-color: white">the Company</FONT>&nbsp;filed a second amendment (the &ldquo;2<SUP>nd
</SUP>Certificate of Amendment&rdquo;) to the Company&rsquo;s Amended and Restated Charter with the Secretary of State of the State of
Delaware to effect a reverse stock split at a ratio of 1:3 and to set the number of authorized shares of Class A Common Stock to 463,312,500
(which is 1,389,937,500 divided by 3). The 2<SUP>nd</SUP> Certificate of Amendment was authorized by the stockholders of the Company
at the Company&rsquo;s Special Meeting of Stockholders held on&nbsp;<FONT STYLE="background-color: white">February 5, 2024</FONT>.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the 2<SUP>nd</SUP> Certificate of Amendment, effective as of 5:00 p.m., Eastern Time, on February 29, 2024, every three shares of
the issued and outstanding Class A Common Stock will be automatically converted into one share of Class A Common Stock, without any change
in par value per share and the number of authorized shares of Class A Common Stock will be reduced to 463,312,500.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 29, 2024, the number of shares of Class A Common Stock reserved for issuance under the Company&rsquo;s Amended and Restated
2021 Stock Incentive Plan, the Company&rsquo;s Smart King Ltd. Equity Incentive Plan, and the Company&rsquo;s Smart King Ltd. Special
Talent Incentive Plan (collectively, the &ldquo;Plans&rdquo;), as well as the number of shares subject to the then-outstanding awards
under each of the Plans, were proportionately adjusted, using the 1-for-3 ratio, rounded down to the nearest whole share. In addition,
the exercise price of the then-outstanding options under each of the Plans was proportionately adjusted, using the 1-for-3 ratio, rounded
up to the nearest whole cent. Proportionate adjustments were made to the number of shares of Class A Common Stock issuable upon exercise
or conversion of the Company&rsquo;s outstanding warrants and convertible securities, as well as the applicable exercise or conversion
prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 14, 2024, the Company filed a fourth amendment (the &ldquo;4<SUP>th</SUP> Certificate of Amendment&rdquo;) to the Company&rsquo;s
Amended and Restated Charter with the Secretary of State of the State of Delaware to effect a reverse stock split at a ratio of 1:40
and to set the number of authorized shares of Class A Common Stock to 104,245,313 (which is 4,169,812,500 divided by 40, the reverse
stock split ratio determined by the Board). The 4<SUP>th</SUP> Certificate of Amendment was authorized by the stockholders of the Company
at the Company&rsquo;s Annual Meeting of Stockholders held on July 31, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the 4<SUP>th</SUP> Certificate of Amendment, effective as of 5:00 p.m., Eastern Time, on August 16, 2024, every 40 shares of the issued
and outstanding Class A Common Stock will be automatically converted into one share of Class A Common Stock, without any change in par
value per share, and the number of authorized shares of Class A Common Stock will be reduced to 104,245,313.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 16, 2024, the number of shares of Class A Common Stock reserved for issuance under the Plans, as well as the number of shares
subject to the then-outstanding awards under each of the Plans, will be proportionately adjusted, using the 1-for-40 ratio, rounded down
to the nearest whole share. In addition, the exercise price of the then-outstanding options under each of the Plans will be proportionately
adjusted, using the 1-for-40 ratio, rounded up to the nearest whole cent. Proportionate adjustments will be made to the number of shares
of Class A Common Stock issuable upon exercise or conversion of the Company&rsquo;s outstanding warrants and convertible securities,
as well as the applicable exercise or conversion prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Annual
Meeting of Stockholders</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the 2024 Annual Meeting, held on July 31, 2024, FFIE stockholders (1) elected each of Mr. Matthias Aydt, Mr. Chui Tin Mok, Mr. Chad Chen,
Ms. Li Han, Mr. Jie Sheng and Ms. Lev Parker to the Board to serve and hold office until the 2024 annual meeting of stockholders and
until their respective successors have been duly elected and qualified, or until their earlier death, resignation or removal, (2) approved
a proposal to ratify the selection of Macias Gini &amp; O&rsquo;Connell LLP (&ldquo;MGO&rdquo;) as the independent registered public
accounting firm of FFIE for the year ending December 31, 2024, (3) approved an amendment to the Charter to increase the number of authorized
shares of Class A Common Stock from 463,312,500 to 4,169,812,500, increasing the total number of authorized shares of Class A Common
Stock and preferred stock from 473,312,500 to 4,179,812,500, (4) approved an amendment to the Charter to effect (i) a reverse stock split
of the Class A Common Stock by a ratio of any whole number in the range of 1-for-2 to 1-for-40, with such ratio to be determined in the
discretion of the Board and with such action to be effected at such time and date, if at all, as determined by the Board within one year
after the conclusion of the Annual Meeting, and (ii) a corresponding reduction in the total number of shares of Class A Common Stock
the Company is authorized to issue, (5) <FONT STYLE="background-color: white">approved an amendment to the 2021 Plan in order to increase
the number of shares of </FONT>Class A <FONT STYLE="background-color: white">Class A Common Stock available for issuance under the 2021
Plan by an additional 88,252,926 shares</FONT>. The 2024 Annual Meeting was held as required by Nasdaq Listing Rule 5620(a) and to regain
compliance with the applicable annual meeting Nasdaq listing rules. Prior to the 2024 Annual Meeting, FFIE&rsquo;s last stockholder meeting
at which FFIE directors were elected had been held on April 14, 2023. On December 28, 2023, FF received a letter from the Listing Qualifications
Staff of Nasdaq noting that FF was not in compliance with the requirement to maintain a minimum bid price of $1.00 per share for 30 consecutive
trading days for continued listing on Nasdaq, as set forth in Nasdaq Listing Rule 5550(a)(2) (the &ldquo;Minimum Bid Price Requirement&rdquo;).
Beginning on November 9, 2023, FF&rsquo;s closing bid price of the Class A Common Stock has been below $1.00 per share. Pursuant to Nasdaq
Listing Rule 5810(c)(3)(A), FF was initially provided 180 calendar days from receipt of the notice from Nasdaq to regain compliance with
the Minimum Bid Price Requirement. On April 18, 2024, Nasdaq notified FF that since it had not yet filed this Form 10-K, it no longer
complied with Listing Rule 5250(c)(1). Pursuant to Listing Rule 5810(c)(2)(A), this deficiency was an additional basis for delisting.
On April 24, 2024, FF received a letter from Nasdaq indicating that FF was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii),
as FF&rsquo;s Class A Common Stock had a closing bid price of $0.10 or less for ten consecutive trading days (the &ldquo;Low Priced Stocks
Rule&rdquo;). The letter indicated that, as a result, the Nasdaq staff had determined to delist FF&rsquo;s securities from The Nasdaq
Capital Market (the &ldquo;Delisting Determination&rdquo;). On May 1, 2024, FF requested a hearing to appeal the Delisting Determination,
which stayed the suspension of FF&rsquo;s securities for 15 days. FF also requested an extended stay of the suspension pending such hearing
with Nasdaq&rsquo;s Hearings Panel (the &ldquo;Panel&rdquo;), which Nasdaq granted on May 28, 2024. The Nasdaq Hearings Panel has granted
the Company&rsquo;s request for continued listing, conditional upon meeting the minimum bid price requirement by August 31, 2024. On
August 14, 2024, the Company filed a 4<SUP>th</SUP> Certificate of Amendment to the Company&rsquo;s Amended and Restated Charter with
the Secretary of State of the State of Delaware to effect a reverse stock split at a ratio of 1:40 and to set the number of authorized
shares of Class A Common Stock to 104,245,313 (which is 4,169,812,500 divided by 40, the reverse stock split ratio determined by the
Board). The 4<SUP>th</SUP> Certificate of Amendment was authorized by the stockholders of the Company at the Company&rsquo;s Annual Meeting
of Stockholders held on July 31, 2024. Pursuant to the 4<SUP>th</SUP> Certificate of Amendment, effective as of 5:00 p.m., Eastern Time,
on August 16, 2024, every 40 shares of the issued and outstanding Class A Common Stock was automatically converted into one share of
Class A Common Stock, without any change in par value per share, and the number of authorized shares of Class A Common Stock was reduced
to 104,245,313. <FONT STYLE="background-color: white">On September 4, 2024, the Company&nbsp;</FONT>received a letter from the Office
of the General Counsel of The Nasdaq Stock Market LLC (&ldquo;Nasdaq&rdquo;) notifying the Company that it has regained compliance with
the Nasdaq Capital Market&rsquo;s minimum bid price requirement and periodic filing requirement (the &ldquo;Periodic Filing Rule&rdquo;)
as required by the Panel decision dated June 26, 2024, as amended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Interim
CFO Transition and Appointment of New Independent Auditor</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Ms.
Han resigned from her position as Interim Chief Financial Officer of the Company effective as of July 5, 2023. Ms. Han resigned from
her position as Chief Accounting Officer of the Company as of February 2, 2024.</FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
July 11, 2023 the <FONT STYLE="background-color: white">Board appointed&nbsp;Jonathan&nbsp;Maroko</FONT> as Interim Chief Financial Officer,
principal financial officer and principal accounting officer effective July 24, 2023. On September 15, 2024, Jonathan Maroko notified
the Company of his decision to resign from his position as Interim Chief Financial Officer of the Company, effective September 20, 2024.
<FONT STYLE="background-color: white">On September 17, 2024, the Board of the Company appointed Koti Meka as the Company&rsquo;s Chief
Financial Officer and principal financial officer, effective September 23, 2024.</FONT></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Effective
June 21, 2024, MGO&nbsp;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">was appointed as the Company&rsquo;s
independent registered public accounting firm as of and for the year ending December 31, 2024. The appointment of MGO follows the notification
by Mazars USA LLP to FFIE on April 9, 2024 that it would resign as an auditor of the Company and, effective on May 31, 2024, and would
no longer be FFIE&rsquo;s independent registered public accounting firm.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PRC
Subsidiaries</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FFIE
is a holding company incorporated in the State of Delaware. &ldquo;FF U.S.&rdquo;, FF&rsquo;s primary U.S. operating subsidiary, was
incorporated and founded in the State of California in May 2014. We refer to all our subsidiaries organized in China (including Hong
Kong) collectively as the &ldquo;PRC Subsidiaries.&rdquo; A complete list of our subsidiaries is set forth in Exhibit 21.1 to this Registration
Statement on Form S-1. As of September 30, 2024, our only operating subsidiaries in China (including Hong Kong) are FF Automotive (China)
Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive Technology Co., Ltd., each of which was organized in the
PRC.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>How
Cash is Transferred Through Our Corporate Organization</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
organizational chart below shows FFIE&rsquo;s operating subsidiaries<SUP>*</SUP> as of the date hereof:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><IMG SRC="image_002.jpg" ALT="" STYLE="width: 624px; height: 293px">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Excludes subsidiaries
    with immaterial operations. FF Hong Kong Holding Limited is a holding company subsidiary organized in Hong Kong. As of the date hereof,
    LeSEE Automotive (Beijing) Co. Ltd., a subsidiary organized in China, has immaterial operations.</I></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC has currency and capital transfer regulations that require us to comply with certain requirements for the movement of capital in
and out of the PRC. FFIE is able to transfer cash (U.S. Dollars) to the PRC Subsidiaries through capital contributions (increasing FFIE&rsquo;s
capital investment in the PRC Subsidiaries). FFIE may receive cash or assets declared as dividends from the PRC Subsidiaries. The PRC
Subsidiaries can transfer funds to each other when necessary, by way of intercompany loans in the following manners:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            Hong Kong Holding Limited, as the holding company of all the other PRC Subsidiaries, can
                                            transfer cash to any PRC Subsidiary through capital contribution. We note Hong Kong&rsquo;s
                                            banking system is outside PRC mainland&rsquo;s banking system. As a result, when FF Hong
                                            Kong Holding Limited transfers cash to a PRC Subsidiary, it is required to follow the SAFE
                                            (as defined below) process and regulation.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            Hong Kong Holding Limited, as the holding company of all the other PRC Subsidiaries, may
                                            receive cash or assets declared as dividends from the other PRC Subsidiaries.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Among
                                            PRC Subsidiaries other than FF Hong Kong Holding Limited, one PRC Subsidiary can provide
                                            funds through intercompany loan to another PRC Subsidiary and each such PRC Subsidiary is
                                            required to follow the rules of China Banking Regulatory Commission and other relevant Chinese
                                            authorities. Additionally, one PRC Subsidiary can transfer cash to its subsidiary through
                                            capital contribution, and any PRC Subsidiary may receive cash or assets declared as dividends
                                            from any of its subsidiaries.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
2022 and 2023, FF U.S. extended loans in an aggregated amount of $8.0 million and $16.3 million, respectively, to FF Hong Kong Holding
Limited to fund the operations of the PRC Subsidiaries. We will continue to assess the PRC Subsidiaries&rsquo; requirements to fund their
operations and intend to effect additional contributions as appropriate. As of December&nbsp;31, 2023, our only operating subsidiaries
in China (including Hong Kong) are FF Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive
Technology Co., Ltd., each of which was organized in the PRC. The PRC Subsidiaries have not transferred cash or other assets to FFIE,
including by way of dividends. FFIE does not currently plan or anticipate transferring cash or other assets from our operations in China
to any non-Chinese entity.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Capital
contributions to PRC companies are mainly governed by the Company Law and Foreign Investment Law of the People&rsquo;s Republic of China,
and the dividends and distributions from the PRC Subsidiaries are subject to regulations and restrictions of the PRC on dividends and
payment to parties outside of the PRC. Applicable PRC law permits payment of dividends to FFIE by our PRC Subsidiaries only out of their
net income, if any, determined in accordance with PRC accounting standards and regulations. Our operating PRC Subsidiaries are required
to set aside a portion of their net income, if any, each year to fund general reserves for appropriations until such reserves have reached
50% of the relevant entity&rsquo;s registered capital. These reserves are not distributable as cash dividends. A PRC company is not permitted
to distribute any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be
distributed together with distributable profits from the current fiscal year. In addition, registered share capital and capital reserve
accounts are also restricted from withdrawal in the PRC, up to the amount of net assets held in each operating subsidiary.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>PRC
Restrictions on Foreign Exchange and Transfer of Cash</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
PRC laws, if certain procedural requirements are satisfied, the payment of current account items, including profit distributions and
trade and service related foreign exchange transactions, can be made in foreign currencies between entities, across borders, and to
U.S. investors without prior approval from State Administration of Foreign Exchange (the &ldquo;SAFE&rdquo;) or its local branches.
However, where Chinese Yuan (&ldquo;CNY&rdquo;) is to be converted into foreign currency and remitted out of China to pay capital
expenses, such as the repayment of loans denominated in foreign currencies, approval from or registration with SAFE or its
authorized banks is required. The PRC government may take measures at its discretion from time to time to restrict access to foreign
currencies for current account or capital account transactions. If the foreign exchange control system prevents our PRC Subsidiaries
from obtaining sufficient foreign currencies to satisfy their foreign currency demands, our PRC Subsidiaries may not be able to pay
dividends in foreign currencies to FFIE. Further, we cannot assure you that new regulations or policies will not be promulgated in
the future that would have the effect of further restricting the remittance of CNY into or out of the PRC. We cannot assure you, in
light of the restrictions in place, or any amendment thereof, that the PRC Subsidiaries will be able to fund their future activities
which are conducted in foreign currencies, including the payment of dividends.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
under PRC laws, dividends may be paid only out of distributable profits. Distributable profits are the net profit as determined under
PRC GAAP, less any recovery of accumulated losses and appropriations to statutory and other reserves required to be made. Our PRC Subsidiaries
shall appropriate 10% of the net profits as reported in their statutory financial statements (after offsetting any prior year&rsquo;s
losses) to the statutory surplus reserves until the reserves have reached 50% of their registered capital. As a result, our PRC Subsidiaries
may not have sufficient, or any, distributable profits to pay dividends to us. See &ldquo;<I>Risk Factors&ndash;Risks Related to FF&rsquo;s
Operations in China&ndash;FFIE is a holding company and, in the future, may rely on dividends and other distributions on equity paid
by the PRC Subsidiaries to fund any cash and financing requirements that FFIE may have, and the restrictions on PRC Subsidiaries&rsquo;
ability to pay dividends or make other payments to FFIE could restrict FFIE&rsquo;s ability to satisfy its liquidity requirements and
have a material adverse effect on FFIE&rsquo;s ability to conduct its business</I>&rdquo; for a more detailed discussion of the relevant
risks relating to restrictions on foreign exchange and transfer of cash.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Requirements
Under PRC Laws and Regulations</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
current PRC laws and regulations, each of our PRC Subsidiaries is required to obtain a business license to operate in the PRC. Our PRC
Subsidiaries have all received the requisite business license to operate, and no application for business license had been denied.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
our operations in the PRC expand, our PRC Subsidiaries will be required to obtain approvals, licenses, permits and registrations from
PRC regulatory authorities, such as the State Administration for Market Regulation, the National Development and Reform Commission, Ministry
of Commerce (&ldquo;MOFCOM&rdquo;), and the Ministry of Industry and Information Technology (&ldquo;MIIT&rdquo;), which oversee different
aspects of the electric vehicle business. As of December&nbsp;31, 2023, no application by our PRC Subsidiaries for any such approvals,
licenses, permits and registrations that are currently applicable to them had been denied, but there can be no assurance that the PRC
Subsidiaries will be able to maintain their existing licenses or obtain new ones. See &ldquo;Risk Factors&ndash;Risks Related to FF&rsquo;s
Operations in China&ndash;FF may be adversely affected by the complexity, uncertainties and changes in PRC regulations on internet-related
business, automotive businesses and other business carried out by FF&rsquo;s PRC Subsidiaries.&rdquo; for a more detailed discussion
of the risks relevant to the regulations relating to the operations of the PRC Subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not believe any permission is required from any Chinese authorities (including the China Securities Regulatory Commission (the &ldquo;CSRC&rdquo;)
and the Cyberspace Administration of China (the &ldquo;CAC&rdquo;)) in connection with our previous offerings or listing. We do not and
immediately prior to the filing of this Registration Statement on Form S-1, possess over one million of PRC-based individual&rsquo;s
personal information. After consulting our PRC counsel, we believe we are currently not subject to the requirement under the Cybersecurity
Review Measures that a network platform operator which possesses more than one million users&rsquo; personal information must apply for
a cybersecurity review with CAC before listing abroad. In addition, as of December&nbsp;31, 2023, after consulting our PRC counsel, we
are not aware of any other laws or regulations currently effective in the PRC which explicitly require us to obtain any permission from
the CSRC or other Chinese authorities for our previous offering or listing, nor had we received any inquiry, notice, or warning from
the CSRC or any other Chinese authorities in such respects. The PRC authorities have promulgated new or proposed laws and regulations
recently to further regulate securities offerings that are conducted overseas and/or foreign investment in China-based issuers. According
to these new laws and regulations and the draft laws and regulations if enacted in their current forms, in connection with our future
securities offering activities, we may be required to fulfill filing, reporting procedures with the CSRC, and may be required to go through
cybersecurity review by the PRC authorities. However, there are uncertainties with respect to whether we will be able to fully comply
with requirements to obtain such permissions and approvals from, or complete such reporting or filing procedures with PRC authorities.
For more detailed information, see &ldquo;Risk Factors&ndash;<I>Risks Related to FF&rsquo;s Operations in China&ndash;The approval of,
or filing or other administrative procedures with, the CSRC or other PRC governmental authorities may be required in connection with
certain of our financing activities, and, if required, we cannot predict if we will be able to obtain such approval or complete such
filing or other administrative procedures&rdquo;</I>&nbsp;and &ldquo;Risk Factors&ndash;<I>Risks Related to FF&rsquo;s Operations in
China&ndash;We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data
protection. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure
to comply with related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially
and adversely affect our business and results of operations</I>&rdquo; for a more detailed discussion of the relevant risks relating
to the applicable of PRC laws and Regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Summary
Risk Factors</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
investment in our Class A Common Stock involves substantial risk. The occurrence of one or more of the events or circumstances described
in the section entitled &ldquo;<I>Risk Factors</I>,&rdquo; alone or in combination with other events or circumstances, may have a material
adverse effect on our business, cash flows, financial condition and results of operations. Important factors and risks that could cause
actual results to differ materially from those in the forward-looking statements include, among others, the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 13.5pt; text-indent: -13.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Risks
Related to FF&rsquo;s Business and Industry</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            does not have sufficient liquidity to pay its outstanding obligations and to operate its
                                            business and it will likely file for bankruptcy protection if it is unable to access additional
                                            capital.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has missed rental payments on all of its leased properties.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has a limited operating history and faces significant barriers to growth in the electric
                                            vehicle industry.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has incurred substantial losses in the operation of its business and anticipates that it
                                            will continue to do so.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            expects its operating expenses to increase significantly, which may impede its ability to
                                            achieve profitability.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            operating results forecast relies in large part upon assumptions and analyses developed by
                                            its management. If these assumptions and analyses prove to be incorrect, its actual operating
                                            results could suffer.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            payroll expenses reduction plan may not be successful.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has significant unfunded commitments from its investors. If FF is unable to satisfy the conditions
                                            to funding or if there is a dispute regarding the conversion requirements related to the
                                            unfunded commitments, FF may not have enough capital to support its business and could be
                                            subject to investor legal claims.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has historically incurred substantial indebtedness and may incur substantial additional indebtedness
                                            in the future, and it may not be able to refinance borrowings on terms that are acceptable
                                            to FF, or at all.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            production and delivery of the FF 91 Futurist has experienced, and may continue to experience,
                                            significant delays.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-binding
                                            pre-orders and other non-binding indications of interest may not be converted into binding
                                            orders/sales.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            may have insufficient reserves to cover future warranty claims.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has taken remedial measures in response to the Special Committee findings that may be unsuccessful.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is involved in an SEC investigation and may be further subject to investigations and legal
                                            proceedings related to the matters underlying the Special Committee investigation and other
                                            matters.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            will depend on revenue generated from a single series of vehicles for the foreseeable future.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            market for FF&rsquo;s vehicles, including its SLMD vehicles, is nascent and not established.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            depends on its suppliers, the majority of which are single-source suppliers.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            decision to manufacture its own vehicles in its leased FF ieFactory does not guarantee FF
                                            will not incur significant delays in the production of the vehicles.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has minimal experience servicing and repairing its vehicles.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
                                            in U.S. and international trade policies may adversely impact FF&rsquo;s business and operating
                                            results.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            faces competition from multiple sources, including new and established domestic and international
                                            competitors, and expects to face competition from others in the future, including competition
                                            from companies with new technology.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            go-to-market and sales strategy will require substantial investment and commitment of resources
                                            and is subject to numerous risks and uncertainties.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                            FF is unable to attract and/or retain key employees and hire qualified Board members, officers
                                            and other individuals, its ability to compete could be harmed.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            discovery of defects in vehicles may result in delays in production and delivery of new models,
                                            recall campaigns or increased warranty costs.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            may become subject to product liability claims, which could harm its financial condition
                                            and liquidity.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                            FF is sued for infringing or misappropriating intellectual property rights of third parties,
                                            litigation could be costly and time consuming and could prevent FF from developing or commercializing
                                            its future products.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has elected to protect some of its technologies as trade secrets rather than as patents,
                                            however, this approach has certain risks and disadvantages.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is dependent upon its proprietary intellectual properties.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is subject to stringent and changing laws, regulations, standards and contractual obligations
                                            related to data privacy and security.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is subject to cybersecurity risks relating to its various systems and software, or that of
                                            any third party that FF relies upon, and any failure, cyber event or breach of security could
                                            substantially harm FF.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            and its suppliers and manufacturing partners may be subject to increased environmental and
                                            safety or other regulations and disclosure rules resulting in higher costs, cash expenditures,
                                            and/or sales restrictions.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            might not obtain/maintain sufficient insurance coverage, which could expose FF to significant
                                            costs and disruption.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yueting
                                            Jia&rsquo;s public image may color public and market perceptions of FF. Negative information about
                                            Mr. Jia may adversely impact FF. Disassociating from Mr. Jia could also adversely impact
                                            FF.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yueting
                                            Jia is subject to restrictions in China that may adversely impact FF&rsquo;s China strategy.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yueting
                                            Jia and FF Global, over which Mr. Jia exercises significant influence, have control over
                                            the FF&rsquo;s management, business and operations, and may use this control in ways that
                                            are not aligned with FF&rsquo;s interests.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disputes
                                            with FF&rsquo;s stockholders are costly and distracting.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is subject to legal proceedings, claims, and disputes arising both in and outside the ordinary
                                            course of business.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I></I></B></FONT></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Risks
Related to FF&rsquo;s Operations in China</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Policy
                                            changes of the PRC government may materially and adversely affect FF.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Uncertainties
                                            with respect to the Chinese legal system, regulations and policies could have a material
                                            adverse effect.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fluctuations
                                            in exchange rates could result in foreign currency exchange losses to FF.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Changes
                                            in the laws and regulations of China or noncompliance with applicable laws and regulations
                                            may have a significant impact on FF&rsquo;s business, results of operations and financial
                                            condition.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is a holding company and may rely on dividends and other distributions on equity paid by
                                            the PRC Subsidiaries.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC
                                            regulation of loans to and direct investments in PRC entities by offshore holding companies
                                            may delay or prevent FF from making loans or additional capital contributions to the PRC
                                            Subsidiaries.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            PRC government can take regulatory actions and make statements to regulate business operations
                                            in China with little advance notice.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental
                                            authorities may be required in connection with certain of FF&rsquo;s financing activities,
                                            and, if required, it cannot predict if it will be able to obtain such approval or complete
                                            such filing or other administrative procedures.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">U.S.
                                            regulatory bodies may be limited in their ability to conduct investigations or inspections
                                            of our China operations.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
                                            significant portion of FF&rsquo;s financing is expected to come from investors in China,
                                            and such investment is subject to delay due to due diligence review, including know your
                                            customer, anti-money laundering and other review.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Risks
Related to the Restatement</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            inability to remediate in its internal control over financial reporting, or identification
                                            of additional material weaknesses or other failure to maintain effective internal control
                                            over financial reporting, has, and could further, result in material misstatements in FF&rsquo;s
                                            consolidated financial statements and FF&rsquo;s ability to accurately or timely report.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            faces risks related to the restatement&nbsp;of its previously issued consolidated financial
                                            statements.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Risks
Related to FF&rsquo;s Common Stock</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            is not able to continue to utilize its &ldquo;at-the-market&rdquo; equity program.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            may not be in compliance with the continued listing requirements for Nasdaq in the future,
                                            the failure of which may cause the Company to be delisted, the failure to be in compliance
                                            with the Nasdaq continued listing requirements could also affect the market price and liquidity
                                            for the FF&rsquo;s Common Stock and reduce the FF&rsquo;s ability to raise additional capital.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            price of the Class A Common Stock has been and may continue to be volatile, and you could
                                            lose all or part of your investment.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            may issue additional shares of Common Stock or preferred shares, which would dilute stockholder
                                            interests.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            has granted preferential director nomination rights to certain investors which may cause
                                            FF to fall out of compliance with Nasdaq listing rules.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Claims
                                            for indemnification by FF&rsquo;s directors and officers may reduce its available funds to
                                            satisfy successful third-party claims against it and may reduce the amount of money available
                                            to it.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Additional
Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
principal executive office is located at 18455 S. Figueroa Street, Gardena, CA 90248 (telephone number (424) 276-7616). The Company&rsquo;s
website is located at www.ff.com and its investor relations website is located at investors.ff.com. Information contained on our website
or connected thereto does not constitute part of, and is not incorporated by reference into, this prospectus or the registration statement
of which it is a part.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
OFFERING</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 49%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Issuer
    </FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Faraday Future Intelligent Electric Inc.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares
    of Class A Common Stock offered by the Selling Securityholders</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Up to 29,659,781 shares
    of Class A Common Stock, of which (i) 28,017,654 are issuable upon the exercise of the SPA Warrants and conversion of the SPA Notes,
    (ii) 561,833 shares of Class A Common Stock are exercisable upon the conversion of the Applicable Tranche D Notes, and (iii) 1,080,294
    shares of Class A Common Stock were issued to Palantir in settlement of amounts owed to Palantir. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares
    of Class A Common Stock outstanding prior to exercise of all outstanding warrants and options and conversion of all outstanding convertible
    notes</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">33,377,187 shares of Class
    A Common Stock (as of October 8, 2024).</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares
    of Class A Common Stock outstanding assuming the issuance of shares upon the exercise of the SPA Warrants and conversion of SPA Notes
    and upon the conversion of the Applicable Tranche D Notes offered hereby</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">63,036,877 shares of Class
    A Common Stock (based on total shares outstanding as of October 8, 2024).</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use
    of Proceeds </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We will not receive any
    proceeds from the sale of shares of Class A Common Stock by the Selling Securityholders.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Market
    for Class A Common Stock and Public Warrants </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our shares of Class A Common
    Stock and Public Warrants are currently traded on Nasdaq under the symbols &ldquo;FFIE&rdquo; and &ldquo;FFIEW,&rdquo; respectively.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risk
    Factors </B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>See &ldquo;<I>Risk Factors</I>&rdquo;
    and other information included in this prospectus for a discussion of factors you should consider before investing in our securities.</B></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
additional information concerning the offering, see &ldquo;<I>Plan of Distribution</I>.&rdquo;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INFORMATION
RELATED TO OFFERED SECURITIES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">25,286,260 shares of Class A Common Stock underlying the SPA Notes
at a conversion price of $5.24 per share, or, alternatively under certain conditions described therein, at the minimum floor price of
$1.048 per share, 2,528,626 shares of Class A Common Stock underlying the Warrants exercisable at 6.29 per share (the &ldquo;Exercise
Price&rdquo;), 202,768 shares of Class A Common Stock underlying the PA Warrants exercisable at the Exercise Price, 561,833 shares of
Class A Common Stock underlying the Applicable Tranche D Notes held by certain holders and 1,080,294 shares of Class A Common Stock issued
to Palantir in settlement of amounts owed to Palantir, which, in the aggregate, represents a total of 29,659,781 shares of Class A Common
Stock of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table includes
information relating to the shares of Class A Common Stock offered hereby, including the purchase price each Selling Securityholder paid
for its securities and the potential profit relating to such securities (as of October 28, 2024).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Offered Shares</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Number of <BR>
Shares</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Exercise <BR>
Price</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Effective <BR>
Purchase <BR>
Price Per <BR>
Share(1)</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Potential <BR>
Profit&nbsp;per <BR>
Share(3)</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Total <BR>
Potential <BR>
Profit(3)</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 40%; text-align: left">Shares of Class A Common Stock issuable upon conversion of the SPA Notes (1)(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">25,286,260</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.048</FONT></TD><TD STYLE="width: 1%; text-align: left">(6)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1.192</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">30,141,221.92</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Shares of Class A Common Stock issuable upon Exercise of the Warrants(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,528,626</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-4.05</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-10,240,935.30</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Shares of Class A Common Stock issuable upon Exercise of the PA Warrants(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">202,768</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.29</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">(2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-4.05</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-821,210.40</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Shares of Class A Common Stock issuable upon conversion of the Applicable Tranche D Notes(4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">561,833</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.282</TD><TD STYLE="text-align: left">(7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-0.042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-23,596.99</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Shares of Class A Common Stock issued to Palantir(5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,080,294</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,419,858.56</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes 12,643,130
    shares of Class A Common Stock issuable upon conversion of the Secured Notes, and an additional 12,643,130 shares of Class A Common
    Stock issuable upon conversion of the Incremental Notes. </FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
September 5, 2024, the Company entered into an SPA with certain institutional investors as purchasers (the &ldquo;Investors&rdquo;).
Pursuant to the SPA, the Company agreed to sell, and the Investors agreed to purchase, for approximately $30 million, certain Secured
Notes, Warrants, and Incremental Warrants in two closings. The initial closing was completed on September 12, 2024, and the subsequent
closing was completed on September 30, 2024. Capitalized terms used herein and not otherwise defined shall have the respective meanings
set forth in the Secured Notes.</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Secured Notes </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Maturity Date; Interest.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">Pursuant to the Secured Notes, interest shall commence accruing on
the date thereof at the interest rate of 10% per annum (the &ldquo;Interest Rate&rdquo;) and shall be computed on the basis of a 360-day
year and twelve 30-day months and shall be payable on a Conversion Date with respect to the Conversion Amount being converted on such
Conversion Date, with any remaining accrued and unpaid Interest payable on the fifth anniversary of the issuance date thereof (the &ldquo;Maturity
Date&rdquo;) (each, an &ldquo;Interest Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">Interest shall be payable on each Interest Date, to the noteholders
on the applicable Interest Date, in shares of Class A Common Stock of the Company, so long as there has been no Equity Conditions Failure;
provided however, that the Company may, at its option following notice to the noteholders, pay Interest on any Interest Date in cash or
in a combination of cash and shares. Prior to the payment of Interest on an Interest Date, interest on this Note shall accrue at the Interest
Rate and be payable by way of inclusion of the Interest in the Conversion Amount on each Conversion Date, or upon any redemption, unless
in the event of an event of default, in which case the interest rate of the Secured Notes shall automatically be increased to 18% per
annum (&ldquo;Interest Adjustments&rdquo;). In the event such default has been cured, such Interest Adjustments shall cease to be effective
as of the calendar day immediately following the date of such cure; provided that the interest as calculated and unpaid at such increased
rate during the continuance of that certain default shall continue to apply to the extent relating to the days after the occurrence of
such default through and including the date of such cure of such default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">The Maturity Date may be extended by the noteholders under circumstances
specified therein. On the Maturity Date, the Company shall pay to the noteholder an amount in cash representing all outstanding principal,
accrued and unpaid interest on such principal and interest and accrued and unpaid Late Charges. Other than as specifically permitted by
the Secured Note, the Company may not prepay any portion of the outstanding principal and accrued, unpaid interest or accrued and unpaid
Late Charges on principal and interest, if any.</P>

<P STYLE="margin: 0">&nbsp;</P>

</DIV>

<P STYLE="margin: 0"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Conversion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Conversion at Option of Holder</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">Each holder of Secured Notes may convert all, or any part, of the outstanding
principal of the Secured Notes, at any time at such holder&rsquo;s option, into shares of Class A Common Stock, at a conversion price
per share of $5.24 (the &ldquo;Conversion Price&rdquo;), subject to adjustment under certain circumstances described in the Secured Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Alternate Conversion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">Each holder may alternatively elect to convert the Secured Notes, at
any time at such holder&rsquo;s option, into shares of our Class A Common Stock at the &ldquo;Alternate Conversion Price&rdquo; equal
to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the Conversion Price then in effect; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the greater of:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">o</TD><TD STYLE="text-align: justify">the floor price of $1.048; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">o</TD><TD STYLE="text-align: justify">the volume weighted average price of our common stock during
the five Trading Days ending and including the Trading Day immediately preceding the delivery or deemed delivery of the applicable conversion
notice.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Ranking; Security Interest</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">The Secured Notes will be junior secured obligations of the Company
and will be secured by a security interest in substantially all of the assets of the Company, pursuant to a security agreement. In addition,
certain subsidiaries of the Company (each, a &ldquo;Subsidiary Grantor&rdquo;) in the SPA secured the Company&rsquo;s obligations under
the Financing Documents by granting a perfected lien upon substantially all of the personal property of each Subsidiary Grantor, for the
benefit of the Investors. The Company is utilizing the proceeds of this offering for general corporate purposes and working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Registration Rights.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">The Company has agreed to file a registration statement providing for
the resale by the Investors of all shares issuable pursuant to the Financing Documents with the Securities and Exchange Commission, or
SEC, within forty-five (45) calendar days of the date of the SPA or as soon as practicable thereafter, seek effectiveness within 90 days
following the date of the SPA, and keep such registration statement effective at all times until no Investors owns any Warrants or shares
of Common Stock issuable upon exercise thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in"><I>Warrants.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Warrants are exercisable immediately
on the date thereof with a term of five (5) years to purchase an aggregate of 5,728,770 shares of Class A Common Stock at an exercise
price of $6.29, subject to adjustment under certain circumstances described in the Warrants.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">The Incremental Warrants are exercisable immediately on the date thereof
with a term of one (1) year to purchase the Secured Notes at an exercise price of equal to the principal amount of the Secured Notes issued
to such Purchaser, subject to adjustment under certain circumstances described in the Incremental Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">The Company has agreed to issue certain
PA Warrants to Univest Securities LLC, the sole placement agent of this transaction. The PA Warrants are exercisable immediately on the
date thereof with a term of five (5) years to purchase an aggregate of 202,768 shares of Class A Common Stock at an exercise price of
$6.29, subject to adjustment under certain circumstances described in the PA Warrants.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.25in">A holder of the Warrants and PA Warrants shall not have the right to
exercise any portion of these warrants to the extent that, after giving effect to such conversion, the holder (together with certain related
parties) would beneficially own in excess of 4.99%, or the &ldquo;Maximum Percentage&rdquo;, of shares of our common stock outstanding
immediately after giving effect to such conversion. The Maximum Percentage may be raised or lowered to any other percentage not in excess
of 9.99%, at the option of the holder, except that any increase will only be effective upon 61 days&rsquo; prior notice to us.</P>

<P STYLE="margin: 0">&nbsp;</P>

</DIV>

<P STYLE="margin: 0"></P>

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<DIV STYLE="padding: 3pt; border: Black 1.5pt solid">

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Potential profit is calculated based on the closing price of the Company&rsquo;s
Class A Common Stock on October 28, 2024, which is $2.24 per share.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">Includes 233,592 shares issuable upon conversion of the Tranche D Note
held by FF Adventures SPV XVIII LLC, 49,859 shares issuable upon conversion of the Tranche D Note held by FF Aventuras SPV XI LLC, 79,753
shares issuable upon conversion of the Tranche D Note held by FF Venturas SPV X LLC, 86,372 shares issuable upon conversion of the Tranche
D Note held by FF Ventures SPV IX LLC, and 112,257 shares issuable upon conversion of the Tranche D Note held by FF Vitality Ventures
LLC, in each case, issued by the Company pursuant to the Pre-existing SPA.</P></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In July 2021, the Company
    and Palantir entered into a MSA that sets froth the terms of the Palantir&rsquo;s platform hosting arrangement, which was expected
    to be used as a central operating system for data and analytics. On April 26, 2023, the Company received a letter from Palantir providing
    a notice of dispute regarding the Company&rsquo;s alleged material breach of the MSA. The letter asserted that the Company had not
    paid invoices totaling $12.3 million of past due fees. On July 7, 2023, Palantir filed a Demand for Arbitration against the Company
    with Judicial Arbitration and Mediations Services, Inc., regarding a dispute between Palantir and the Company over the MSA. Palantir
    alleged that the Company had refused to make payments under the MSA. Palantir asserted claims for: (i) breach of contract; (ii) breach
    of the covenant of good faith and fair dealing; and (iii) unjust enrichment. Palantir alleged that the amount in controversy was
    $41.5 million. On August 4, 2023, the Company submitted its response to Palantir&rsquo;s arbitration demand. The Company&rsquo;s
    response included both affirmative defenses and a general denial of all allegations in Palantir&rsquo;s arbitration demand. On March
    11, 2024, the Company and Palantir executed a Settlement and Release Agreement in order to terminate the MSA and resolve the disputes.
    The Company agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late payments. This settlement
    includes mutual waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and Palantir entered into
    an amendment to the Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.8 million in cash, the
    Company agreed to issue Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A Common Stock
    by October 1, 2024. The August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million shares
    of Common Stock. </FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The calculation of Potential
    Profit per Share is based upon the floor price of the SPA Notes.</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based on 90% of VWAP (as
    defined in each of the Applicable Tranche D Notes) as of October 1, 2024.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_004"></A>RISK
FACTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Investing
in our securities involves risks. Before you make a decision to buy our securities, in addition to the risks and uncertainties discussed
above under &ldquo;Cautionary Note Regarding Forward-Looking Statements,&rdquo; you should carefully consider the specific risks set
forth herein. If any of these risks actually occur, it may materially harm our business, financial condition, liquidity, and results
of operations. As a result, the market price of our securities could decline, and you could lose all or part of your investment. Additionally,
the risks and uncertainties described in this prospectus, any prospectus supplement or in any document incorporated by reference herein
or therein are not the only risks and uncertainties that we face. Additional risks and uncertainties not presently known to us or that
we currently believe to be immaterial may become material and adversely affect our business.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Risks
Related to FF&rsquo;s Business and Industry</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
does not have sufficient liquidity to pay its outstanding obligations and to operate its business and it will likely file for bankruptcy
protection if we are unable to access additional capital.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Since
inception, we have incurred cumulative losses from operations, negative cash flows from operating activities and has an accumulated deficit
of $3,958.5 million, $3,526.8 million and $2,907.6 million as of December&nbsp;31, 2023, 2022 and 2021, respectively. We expect to continue
to generate significant operating losses for the foreseeable future. Based on our recurring losses from operations since inception and
continued cash outflows from operating activities, in our audited consolidated financial statements for the years ended December&nbsp;31,
2023 and 2022, we concluded that this circumstance raised substantial doubt about our ability to continue as a going concern within one
year from the original issuance date of such financial statements. Similarly, in their audit reports on the consolidated financial statements
for the years ended December&nbsp;31, 2023 and 2022, our former independent registered public accounting firm included an explanatory
paragraph stating that our recurring losses from operations and continued cash outflows from operating activities raised substantial
doubt about our ability to continue as a going concern. Our consolidated financial statements for the years ended December&nbsp;31, 2023
and 2022 do not include any adjustments that may result from the outcome of this uncertainty. As of the date our consolidated financial
statements for the year ended December&nbsp;31, 2023 were issued, our management determined that FF would be required to obtain additional
funding to continue as a going concern, resulting in there being substantial doubt about its ability to continue as a going concern.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
only recognized $0.8 million in revenue during the second half of the year ended December 31, 2023. FF relies on capital from investors
to support its operations. To date, we have primarily financed our operations through the sale of our Class A Common Stock, warrants
and convertible notes. For example, on June 16, 2023, we filed a Registration Statement on Form S-3 covering the offering of up to $300.0
million of Class A Common Stock and warrants, which was declared effective by the SEC on June 28, 2023 (the &ldquo;Registration Statement&rdquo;).
On September 26, 2023, we also entered into a sales agreement with Stifel, Nicolaus &amp; Company, Incorporated, B. Riley Securities,
Inc., A.G.P./Alliance Global Partners, Wedbush Securities Inc. and Maxim Group LLC, as sales agents, to sell shares of Common Stock,
from time to time, with aggregate gross sales proceeds of up to $90.0 million pursuant to the Registration Statement as an &ldquo;at-the-market&rdquo;
(the &ldquo;ATM Program&rdquo;) offering under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;). The ATM Program
was the primary source of liquidity for FF from September to December 2023. As of December&nbsp;31, 2023, our principal source of liquidity
was cash totaling $1.9 million, which was held for working capital and general corporate purposes. As of December&nbsp;31, 2023, our
cash position was $4.0 million, including restricted cash of $2.1 million. For a discussion of our capital needs and the current status
of our financing efforts, see &ldquo;<I>FF does not have sufficient liquidity to pay its outstanding obligations and to operate its business
and it will likely file for bankruptcy protection if it is unable to access additional capital.</I>&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not have sufficient cash on hand to meet our current obligations and are unable to generate cash through our ATM Program or via our
Registration Statement because we are not currently S-3 eligible. For further detail, see &ldquo;<I>FF is not able to continue to utilize
its &ldquo;at the market program.&rdquo;</I>&nbsp;We may have limited remaining authorized share availability as we issue more shares
to generate cash through equity or equity-linked issuances. If we are unable to find additional sources of capital, we will lack sufficient
resources to fund our outstanding obligations and continue operations and we will likely have to file for bankruptcy protection and our
assets will likely be liquidated. Our equity holders would likely not receive any recovery at all in a bankruptcy scenario.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
has missed rental payments on all of its leased properties.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
leases three facilities in California and three facilities in China for manufacturing, retail, office, administrative services, R&amp;D
and strategic planning purposes. FF is behind on rental payments at all locations. FF can provide no assurances that any forbearance
of its lease obligations will be provided to it, nor that FF will be able to regain compliance with its lease obligations. If, as a result,
FF&rsquo;s leases are terminated, FF may not be able to continue production of its vehicles. If FF is unable to continue production,
FF will likely have to file for bankruptcy protection and its assets will likely be liquidated. FF&rsquo;s equity holders would likely
not receive any recovery at all in a bankruptcy scenario.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
has a limited operating history and faces significant barriers to growth in the electric vehicle industry.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
expects to need substantial additional financing to start the third phase of its three phase delivery plan. There cannot be any assurance
that FF will be able to develop the manufacturing capabilities and processes, or secure reliable sources of component supply to meet
the quality, engineering, design or production standards, or the required production volumes to successfully grow into a viable business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
FF has started production and delivery on its first electric vehicle, it faces significant barriers to growth in the electric vehicle
industry, including continuity in development and production of safe and quality vehicles, brand recognition, customer base, marketing
channels, pricing policies, talent management, value-added service packages and sustained technological advancement. If FF fails to address
any or all of these risks and barriers to entry and growth, its business and results of operation may be materially and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given
FF&rsquo;s limited operating history, the likelihood of its success must be evaluated especially considering the risks, expenses, complications,
delays and the competitive environment in which it operates. There is, therefore, no assurance that FF&rsquo;s business plan will prove
successful. FF will continue to encounter risks and difficulties frequently experienced by early commercial stage companies, including
scaling its infrastructure and headcount, and may encounter unforeseen expenses, difficulties or delays in connection with its growth.
In addition, due to the capital-intensive nature of FF&rsquo;s business, it can be expected to continue to incur substantial operating
expenses without generating sufficient revenues to cover those expenditures. There is no assurance FF will ever be able to generate revenue
consistently, raise additional capital when required or operate profitably. Any investment in FF is therefore highly speculative.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
has incurred substantial losses in the operation of its business and anticipates that it will continue to do so. It may never achieve
or sustain profitability.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">The
design, engineering, manufacturing, sales and service of intelligent, connected electric vehicles is a capital-intensive business. FF
has incurred losses from operations and has had negative cash flows from operating activities since inception. FF incurred a net loss
of $431.7 million and $602.2 million for the years ended December&nbsp;31, 2023 and 2022, respectively. Net cash used in operating activities
was $278.2 million and $383.1 million for the years ended December&nbsp;31, 2023 and 2022, respectively, and $29.1 million for the six
months ended June 30, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
may incur unforeseen expenses, or encounter difficulties, complications, and delays in delivering the FF 91 series, and therefore may
never generate sufficient revenues to sustain itself. Even though FF has begun initial deliveries of the FF 91 series, it may continue
to incur substantial losses for a variety of reasons, including the lack of demand for the FF 91 series and the relevant services, vehicle
service and warranty costs, increasing competition, challenging macroeconomic conditions, regulatory changes and other risks discussed
herein, and so it may never achieve or sustain profitability.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given
the risks associated with FF&rsquo;s ability to obtain additional funding to execute on its plans to develop and deliver vehicles and
begin to generate significant revenue, the amount of additional funding needed could differ from earlier estimates and the timing to
reach profitability and positive cash flows could be further delayed. Based on delays in obtaining sufficient funding relative to its
plans, as well as the likelihood that FF&rsquo;s plan will be implemented successfully, timely, or at all, once such funding is in place,
FF cannot estimate a breakeven point at this time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
has delayed the development of other planned vehicles in the portfolio (FF 81 series, FF 71 series, and SLMD) and substantially reduced
incremental spending on the development of future vehicles with the goal of reducing new capital requirements in 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
expects its operating expenses to increase significantly in the future, which may impede its ability to achieve profitability.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
expects to further incur significant operating costs including R&amp;D expenses, capital expenditures relating to its manufacturing capacities,
additional operating costs and expenses for production ramp-up, raw material procurement costs, general and administrative expenses as
it seeks to scale its operations, and sales, marketing, and distribution expenses as it builds its brand and markets its vehicles. Additionally,
it may incur significant costs as it delivers the FF 91 series, including vehicle service and warranty expenses.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
ability to become profitable will not only depend on its ability to successfully market its vehicles and other products and services,
but also to control costs. Ultimately, FF may not be able to adequately control costs associated with its operations for reasons outside
its control, including the cost of raw materials such as aluminum, steel and lithium-ion cells. Substantial increases in such costs could
increase FF&rsquo;s cost of revenue and its operating expenses and reduce its margins. Additionally, currency fluctuations, inflationary
pressures, tariffs or shortages in petroleum and other economic or political conditions could result in significant increases in logistics
and freight charges and raw material costs. If FF is unable to design, develop, manufacture, market, sell and service its vehicles, including
providing service in a cost-efficient manner, its margins, profitability, and prospects would be materially and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
rate at which FF may incur costs and losses may increase significantly as it:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">continues to develop the FF 91, and potentially refocuses on the FF 81, and FF 71 series and SLMD electric
vehicle models;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">continues to develop and equip its manufacturing facility in Hanford, California to produce the FF 91
series, and prepares for manufacturing capabilities in South Korea and other potential manufacturing options, and in China for additional
production capacity for the FF 91 series and other electric vehicle models;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">builds up inventories of parts and components for the FF 91 series;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">starts the research and development of new product Faraday X and is under the process of establishing
the bridge strategy;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">develops and expands its design, development, maintenance, servicing and repair capabilities;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">potentially looks to open offline FF stores; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">increases its sales and marketing activities.&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in; background-color: white">These
efforts may be more expensive than FF currently anticipates, and these efforts may not result in increases in revenues, which could further
increase its losses. As FF is seeking funding to realize its business operations plan based on its estimated capital requirements, any
cost overruns that deviate from FF&rsquo;s estimates may materially and adversely affect its business prospects, financial condition and
results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF&rsquo;s operating
results forecast relies in large part upon assumptions and analyses developed by its management. If these assumptions and analyses prove
to be incorrect, its actual operating results could suffer.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
operates in a capital-intensive industry which requires significant cash to fund its operations, and FF will require substantial additional
capital to support the continued production and delivery of the FF 91 series, put FF on a path toward cash flow break-even, and satisfy
its additional capital needs, including resuming development of its other electric vehicle models. See &ldquo;-&nbsp;<I>FF does not have
sufficient liquidity to pay its outstanding obligations and to operate its business and it will likely file for bankruptcy protection
if it is unable to access additional capital&rdquo;</I>&nbsp;for a discussion of FF&rsquo;s capital needs and the current status of its
financing efforts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
operating results forecast largely relies on management&rsquo;s assumptions and analyses, which could be incorrect. Additionally, there
cannot be any assurance that FF&rsquo;s current fundraising efforts will be successful. Whether actual operating and financial results
and business developments will be consistent with FF&rsquo;s expectations and assumptions as reflected in the forecast depends on a number
of factors, many of which are outside FF&rsquo;s control, including, but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>whether it can obtain sufficient and timely capital to sustain and grow its business, including the development of future vehicle
models;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>its ability to manage growth;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>whether it can manage relationships with key suppliers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>whether it can sign up and manage relationships with business partners for them to invest in and operate sales and service centers;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>the ability to obtain necessary regulatory approvals;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>demand for its products and services in its target markets;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>the timing and cost of new and existing marketing and promotional efforts;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>competition, including established and future competitors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>its ability to retain existing key management, to integrate recent hires and to attract, retain and motivate qualified personnel;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>the overall strength and stability of domestic and international economies;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>regulatory, legislative and political changes; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>consumer spending habits.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Specifically,
FF&rsquo;s operating results forecast is based on projected purchase prices, unit costs for materials, manufacturing, labor, packaging
and logistics, warranty, sales, marketing and service, tariffs, and its projected number of orders for the vehicles with factors such
as industry benchmarks taken into consideration. Any of these factors could turn out to be different than those anticipated. Unfavorable
changes in any of these or other factors, most of which are beyond FF&rsquo;s control, could materially and adversely affect its business,
prospects, financial results and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF has significant
unfunded commitments from its investors. If FF is unable to satisfy the conditions to funding or if there is a dispute regarding the conversion
requirements related to the unfunded commitments, FF may not have enough capital to support its business and could be subject to investor
legal claims.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Pursuant
to the Pre-existing SPA, Original Unsecured SPA, the Unsecured Streeterville SPA, FFVV Joinder, and the Senyun Joinder, (as defined in
Note 7,&nbsp;<I>Notes Payable&nbsp;</I>to the Notes to Consolidated Financial Statements) FF has obtained commitments from several investors
totaling $595.3 million in convertible note financing and $20.0 million in committed forced warrant exercise proceeds, subject to certain
conditions. A total of $396.7 million under these commitments had been funded as of October 8, 2024 ($314.9 million net of original discount
and transaction costs) with the remaining unfunded commitment of $198.7 million. Investors of the convertible notes have the option to
purchase an additional up to 100% of the committed notes at the same economics. In the aggregate, including the additional financing the
Company completed in September 2024, these investors have an option to invest an additional $396 million of which the $48.4 million ($41.2
million net of original issuance discount and transaction fees) has been funded with the remaining optional funding of $347.6 million.
There can be no assurance that FF will be able to successfully satisfy the conditions to receive the additional funding. Further, if FF
fails to satisfy these funding conditions to receive the unfunded commitments, FF may be required to further delay its production and
delivery plans for the FF 91 2.0 Futurist Alliance, reduce headcount, liquidate our assets, file for bankruptcy, reorganize, merge with
another entity, and/or cease operations. In addition, during and after the third quarter of 2023, FF temporarily suspended effecting the
conversion requests from its noteholders. As of and since December 31, 2023, FF was and had been in default on the Pre-existing SPA Notes.
While FF has begun effecting these conversion requests, there can be no assurance that FF will not again suspend effecting such requests
in a manner that could result in an event of default and monetary penalties under the various securities purchase agreements. Further,
FF may be subject to legal claims by the investors, which could have a material and adverse impact on FF&rsquo;s reputation and financial
condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF may also be subject to legal claims arising from disagreement over
the terms of its securities. For example, FF previously issued certain convertible notes (the &ldquo;Senyun Notes&rdquo;) to Senyun. The
Senyun Notes are subject to a restriction that FF will not convert the Senyun Notes, and Senyun will not have the right to convert the
Senyun Notes, to the extent that Senyun would own more than 9.99% of FF&rsquo;s outstanding Class A Common Stock of FF after giving effect
to the conversion. In May 2023, Senyun requested to convert the Senyun Notes into shares of Common Stock and FF converted a certain amount
of the Senyun Notes. FF did not convert the Senyun Notes that would have resulted in Senyun owning more than 9.99% of the Common Stock.
However, Senyun believes that the Senyun Notes should have been converted in full in accordance with its interpretation of conversion
limitations in the Senyun Notes. FF disputes this interpretation. In July 2023 and October 2023, Senyun sent FF a letter outlining its
position and reserving its rights under the Pre-existing SPA. Further, pursuant to the Senyun Joinder, Senyun agreed to exercise its option
to purchase $15.0 million of Tranche A Notes (as defined in Note 7,&nbsp;<I>Notes Payable</I>, in the Notes to the Consolidated Financial
Statements contained herein) in accordance with the terms of the Secured SPA, with funding of 75% of such amount within five business
days of the date of the Senyun Joinder and the remaining 25% of such amount within three business days thereafter, subject to certain
conditions which have been satisfied. As of December 31, 2023, Senyun had funded $11.5 million of its obligation and had not funded the
remaining $3.5 million. It is not possible at this time to predict the outcome of the disagreement with Senyun.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Further,
any litigation, proceedings or dispute related to legal claims of FF&rsquo;s investors, even those without merit, may divert FF&rsquo;s
financial and management resources that would otherwise be used to benefit the future performance of FF&rsquo;s operations. Any adverse
determination against FF in any potential proceedings may also result in settlements, injunctions or damages that could have a material
adverse effect on FF&rsquo;s business, financial condition and results of operations and investors or other financing sources may be unwilling
to provide additional funding to FF on commercially reasonable terms, or at all, as a result of any legal claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>MHL and V W Investment
are purchasers of the Unsecured SPA Notes (as defined in Notes 7, Notes Payable to the Notes to Consolidated Financial Statements) and
are affiliates of FF Global and a longtime FF stockholder, respectively, and such purchasers have limited assets.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
May 8, 2023, FF entered into the Unsecured SPA with Metaverse Horizon Limited (&ldquo;MHL&rdquo;) and V W Investment Holding Limited (&ldquo;V
W Investment&rdquo;) to issue and sell, subject to the satisfaction of certain closing conditions, $100.0&nbsp;million aggregate principal
amount of FF&rsquo;s senior unsecured convertible promissory notes. MHL and V W Investment committed to fund in eight subsequent closings
fifteen days apart, subject to the satisfaction of certain closing conditions. MHL who is the anchor investor in the Unsecured SPA Notes
and has committed $80.0&nbsp;million of the funding, is an independent investment fund with investors including FF Global, and V W Investment
is an affiliate of Mr. Lijun Jin, a long-term shareholder of FF. As such MHL is a related party of FF as MHL&rsquo;s investors include
ax subsidiary FF Global. FF Global has control over FF&rsquo;s management, business and operations, and may use this control in ways that
are not aligned with FF&rsquo;s business or financial objectives or strategies or that are otherwise inconsistent with FF&rsquo;s interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Further,
in connection with the Unsecured SPA, FF entered into equity commitment letters with each of FF Global Partners Investment LLC (formerly
known as FF Top Holdings LLC) and Mr. Jin to support the obligations of MHL and V W Investment under the Unsecured SPA subject to the
limitations set forth therein. If MHL or V W Investment are unable to fund their commitments and FF Global and/or Mr. Jin breach their
obligations under their equity commitment letters with FF, it may not be able to recover the damages caused by such breach(es) from FF
Global due to the nature of their assets, including the fact that many of Mr. Jin&rsquo;s assets are not located in the United States
and FF Global&rsquo;s only assets are shares of FF&rsquo;s Class B Common Stock, a note payable from FF, and a capital commitment from
an investor with terms not disclosed to FF or third party beneficiary rights in favor of FF. If MHL and/or V W Investment do not fund
their commitments and FF is unable to recover damages under the equity commitment letters, FF may need to seek additional investors or
other financing sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">There
can be no assurance that FF would be able to attract additional investors or other financing source. If we are unable to attract additional
investors or other financing sources in a timely manner or on acceptable terms, or at all, we may be required to further delay our production
and delivery plans for the FF 91 Futurist, reduce headcount, liquidate our assets, file for bankruptcy, reorganize, merge with another
entity, and/or cease operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF has historically
incurred substantial indebtedness and may incur substantial additional indebtedness in the future, and it may not be able to refinance
borrowings on terms that are acceptable to FF, or at all.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Although
FF settled the majority of its debt in either equity or cash upon consummation of the Business Combination and paid off certain other
indebtedness with the proceeds of the Business Combination, FF may incur additional indebtedness from time to time to support its operations.
If FF incurs additional debt, the risks it faces as a result of indebtedness and leverage could intensify. The incurrence of any additional
debt could:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">limit FF&rsquo;s ability to satisfy obligations under certain debt instruments, to the extent there are any;</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">cause FF to seek bankruptcy protection or enter into other insolvency proceedings in the event FF is not able to renew or refinance
any existing indebtedness as it becomes due;</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">increase FF&rsquo;s vulnerability to adverse general economic and industry conditions;</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">require FF to dedicate a substantial portion of cash flow from operations to servicing and repaying indebtedness, thereby reducing
the availability of cash flow to fund its working capital, capital expenditures, and other general corporate purposes;</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">increase its exposure to interest rate and exchange rate fluctuations;</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">limit its ability to borrow additional funds and impose additional financial and other restrictions on FF, including limitations on
declaring dividends; and</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">increase the cost of additional financing.&nbsp;&nbsp;&nbsp;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Commercial
banks, financial institutions and individual lenders may have concerns in providing additional financing for FF&rsquo;s operations. The
governments of the United&nbsp;States, China and Europe may also pass measures or take other actions that may tighten credit available
in relevant markets. Any future monetary tightening measures as well as other monetary, fiscal and industrial policy changes and/or political
actions by those governments could materially and adversely affect FF&rsquo;s cost and availability of financing, liquidity, access to
capital, and ability to operate our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>The production
and delivery of the FF 91 Futurist has experienced, and may continue to experience, significant delays.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
future business depends in large part on its ability to execute its plans to develop, manufacture, market, and deliver electric vehicles,
including the FF 91, FF 81 and FF 71 series, and SLMD electric vehicle models that appeal to customers. Based on certain management assumptions,
including timely completion of certain testing and the suppliers meeting our supply chain requirement, FF originally expected deliveries
of the FF 91 to users to begin before the end of April 2023. The first phase of the three-phase delivery plan began at the end of May
2023. In addition, due to a supplier&rsquo;s timing constraints and the completion of an additional system testing related to FF&rsquo;s
enhanced safety testing of a single unique product feature of the FF 91 2.0 Futurist Alliance, the second phase of the three-phase delivery
plan originally contemplated to begin by June 30, 2023, began in August 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Production
or delivery of the FF 91 Futurist has experienced further delays due to insufficient capital and may experience further delays due to
reasons such as supply shortages and constraints, design defects, additional system testing, talent gaps, and/or force majeure. FF needs
substantial additional financing to start the third phase of the delivery plan and is in discussions with additional potential investors
to obtain such financing. Further, FF relies on third-party suppliers for the provision and development of many key components used in
the FF 91 Futurist and other models. To the extent FF&rsquo;s suppliers experience any further delays in providing or developing necessary
components or if they experience quality issues, FF could experience further delays in delivering on its timelines. In addition, if FF
has to adjust and/or reduce or suspend certain payments to suppliers, such adjustments and/or reductions could further delay the production
and deliveries of the FF 91 Futurist.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent FF were to further meaningfully delay additional production and delivery of the FF 91 series, potential consumers may lose
confidence in FF, and customers who have placed pre-orders for the FF 91 Futurist may cancel pre-orders, which may curtail FF&rsquo;s
growth prospects. Additionally, FF&rsquo;s competitors may move more quickly to market than FF, which could impact FF&rsquo;s ability
to grow its market share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Non-binding pre-orders
and other non-binding indications of interest may not be converted into binding orders or sales.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">While
the Company has announced that its first users of the FF 91 2.0 Futurist Alliance have joined or are currently considering participating
in the Developer Co-creation Project, as of October 8, 2024, FF had sold five and leased out nine FF 91 2.0 vehicles. These Developer
Co-creation Officers entered into consulting, branding, and other arrangements with FF in exchange for fees ranging from approximately
$150,000 to $475,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Further,
although FF has engaged in marketing activities in anticipation of starting customer deliveries of the FF 91 series and FF had received
303 non-binding, fully refundable pre-orders in the U.S. and China as of December 31, 2023 and other non-binding indications of interest,
FF does not have binding purchase orders or commitments from customers to purchase any of FF&rsquo;s vehicles in development. As such,
there can be no assurance that the pre-orders and other indications of interest would be converted into binding orders or sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Until
the time that FF&rsquo;s products are commercially available for purchase and FF is able to scale up its marketing function to support
sales, there will be substantial uncertainty as to customer demand for FF vehicles. The potentially long wait from the time a non-binding
pre-order is made or other indication of interest is provided until the time FF vehicles are delivered, and any delays beyond expected
wait times, could also impact customer decisions on whether to ultimately make a purchase. Even if FF is able to obtain binding orders,
customers may limit their volume of purchases initially as they assess FF&rsquo;s vehicles and whether to make a broader transition to
electric vehicles. Commercializing the FF 91 Futurist and other vehicles in FF&rsquo;s development pipeline will be a long process and
depends on FF&rsquo;s ability to fund and scale up its productions, including through securing additional funding for its operations,
the consummation of various third-party agreements and expanding FF&rsquo;s marketing functions, as well as the safety, reliability, efficiency
and quality of FF&rsquo;s vehicles, and the support and service that will be available. It will also depend on factors outside of FF&rsquo;s
control, such as competition, general market conditions and broader trends in vehicle electrification and fleet management, that could
impact customer buying decisions. As a result, there is significant uncertainty regarding demand for FF&rsquo;s products and the pace
and levels of growth that FF may be able to achieve.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>If FF has insufficient
reserves to cover future warranty claims, its business, prospects, financial condition, results of operations, and cash flows could be
materially and adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
our vehicles are produced and delivered, we will need to maintain warranty reserves to cover warranty-related claims. If our warranty
reserves are inadequate to cover future warranty claims on our vehicles, our business, prospects, financial condition, results of operations,
and cash flows could be materially and adversely affected. Additionally, estimating the necessary amount of warranty reserves is inherently
uncertain, particularly in light of our limited operating history and limited field data available to us, and changes to such estimates
based on real-world observations may cause material changes to our warranty reserves. In the future, we may become subject to significant
and unexpected warranty expenses. There can be no assurances that then-existing warranty reserves will be sufficient to cover all claims.
In addition, if future laws or regulations impose additional warranty obligations on us that go beyond our manufacturer&rsquo;s warranty,
we may be exposed to materially higher warranty expenses than we expect, and our reserves may be insufficient to cover such expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF has taken remedial
measures in response to the Special Committee findings. There can be no assurance that such remedial measures will be successful. In addition,
such remedial measures have not been fully implemented in light of the corporate governance agreements with FF Top and FF Global and the
recent assessment by the Board of FF&rsquo;s management structure, including management roles, responsibilities and reporting lines, and
changes to the Board.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
November 2021, the Board established a special committee of independent directors (the &ldquo;Special Committee&rdquo;) to investigate
allegations of inaccurate Company disclosures. The Special Committee engaged independent legal counsel and a forensic accounting firm
to assist in its review. The Special Committee made several findings, including that certain statements made by or on behalf of FF in
connection with the PIPE Financing were inaccurate; that deficiencies exist in FF&rsquo;s internal control environment; and that certain
of FF&rsquo;s policies and procedures required enhancement. Based on the results of the Special Committee investigation and subsequent
investigative work based on the Special Committee&rsquo;s findings performed under the direction of the Executive Chairperson and reporting
to the Audit Committee, the Board directed management to implement a number of remedial measures. See Note 10,&nbsp;<I>Commitments and
Contingencies, in the Notes to the Consolidated Financial Statements</I>&nbsp;for more information regarding the findings and remedial
actions relating to the Special Committee investigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">There
can be no guarantee that the Special Committee investigation revealed all instances of inaccurate disclosure or other deficiencies, or
that other existing or past inaccuracies or deficiencies will not be revealed in the future. Additional inaccuracies or deficiencies could
subject FF to further litigation and regulatory investigations and could contribute to a failure of FF to meet its SEC reporting obligations
in a timely manner, any of which could adversely impact investor confidence in FF, contribute to a decline in trading prices for FF&rsquo;s
securities and interfere with FF&rsquo;s ability to access financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
September 23, 2022, FF entered into an agreement with FF Global and FF Top (the &ldquo;Heads of Agreement&rdquo;) pursuant to which FF
agreed to and implemented significant changes to the Board and Company governance. Certain of such changes have altered some of the remedial
measures of the Special Committee and/or preclude FF from fully implementing other remedial measures. For instance, Ms. Swenson, who was
appointed to the position of Executive Chairperson that the Board created based on the Special Committee investigation, tendered her resignation
from her role as both Executive Chairperson and member of the Board on October 3, 2022, effective immediately, and Mr. Adam (Xin) He was
appointed to serve as Interim (non-Executive) Chairman of the Board effective as of the same date. On July 31, 2023, Mr. He tendered his
resignation from the Board, effective immediately. FF expects that the current Board will select a permanent Chairperson of the Board.
Following the resignation of Ms. Swenson, all FF management (including Mr. Yueting Jia) reported directly or indirectly to the Global
CEO of FF (previously Dr. Breitfeld and Mr. Xuefeng Chen). In addition, Mr. Jia was, effective as of October 4, 2022, also appointed as
Founder Advisor, in which capacity he acts as an advisor to the Board with no change to his current compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
January 13, 2023, FF entered into an amended shareholder agreement with FF Global (only with respect to the amendment of the Heads of
Agreement) and FF Top (the &ldquo;Amended Shareholder Agreement&rdquo;), pursuant to which various terms of the Heads of Agreement were
amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
February 26, 2023, after the Board&rsquo;s assessment of FF&rsquo;s management structure, the Board approved Mr. Yueting Jia (alongside
Mr. Xuefeng Chen) reporting directly to the Board, as well as FF&rsquo;s product, mobility ecosystem, I.A.I., and advanced R&amp;D technology
departments reporting directly to Mr. Jia. The Board also approved FF&rsquo;s user ecosystem, capital markets, human resources and administration,
corporate strategy and China departments reporting to both Mr. Jia and Mr. Xuefeng Chen. FF&rsquo;s remaining departments continued to
report to Mr. Xuefeng Chen. Mr. Chen subsequently resigned from his position as Global CEO and was replaced by Matthias Aydt. Based on
the changes to his responsibilities within FF, the Board determined that Mr. Jia is an &ldquo;officer&rdquo; of FF within the meaning
of Section 16 of the Exchange Act (a &ldquo;Section 16 officer&rdquo;) and an &ldquo;executive officer&rdquo; of FF under Rule 3b-7 under
the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Given
the governance changes pursuant to the Heads of Agreement such as those described above and further changes to the composition of the
Board, there can be no assurance that the remedial actions approved by the Board in connection with the Special Committee investigation
will be fully implemented or successful. FF&rsquo;s Board and management intend to continue to evaluate the Special Committee remedial
actions and take actions in the best interest of FF and its stakeholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF is involved
in an SEC investigation and may be further subject to investigations and legal proceedings related to the matters underlying the Special
Committee investigation and other matters, which may result in adverse findings, damages, the imposition of fines or other penalties,
increased costs and expenses and the diversion of management&rsquo;s time and resources.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 23, 2021, a putative class action lawsuit alleging violations of the Exchange Act was filed in the United States District Court,
Central District of California, against FF, among others, and its former Global CEO, its former Chief Financial Officer (&ldquo;CFO&rdquo;),
its current Chief Product and User Ecosystem Officer, as well as the CFO of Legacy FF and former CFO of FF, three independent directors
of PSAC, and the Co-CEOs of PSAC. Also, in 2021, 2022 and 2023, putative stockholder derivative lawsuits were filed against numerous current
and former officers and directors of FF alleging violations of the Exchange Act and various common law claims. In addition, on June 14,
2022, a verified stockholder class action complaint was filed in the Court of Chancery of the State of Delaware against, among others,
FF, its former Global CEO, its former CFO and its current Chief Product and User Ecosystem Officer alleging breaches of fiduciary duties
(the &ldquo;Yun Class Action&rdquo;). Lastly, on September 21, 2022, a verified stockholder class action complaint was filed in the Court
of Chancery of the State of Delaware against, among others, FF, the Co-CEOs and independent directors of PSAC, and certain third-party
advisors to PSAC, alleging breaches of fiduciary duties, and aiding and abetting the alleged breaches, in connection with disclosures
and stockholder voting leading up to the Business Combination (the &ldquo;Cleveland Class Action&rdquo;), which action subsequently was
consolidated with the Yun Class Action with the complaint in the Cleveland Class Action being designated as the operative pleading. In
April, 2023, the defendants respectively filed motions to dismiss the complaint which are scheduled to be heard by the court on May 4,
2024. See Note 10,&nbsp;<I>Commitments and Contingencies &ndash; Legal Proceedings,&nbsp;</I>in the Notes to the Consolidated Financial
Statements for further information regarding these lawsuits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
connection with the Special Committee investigation, FF, certain members of the management team and FF employees received a notice of
preservation and subpoena from the staff of the SEC stating that the SEC had commenced a formal investigation relating to the matters
that were the subject of the Special Committee investigation beginning in October 2021. FF, which had previously voluntarily contacted
the SEC in connection with the Special Committee investigation, is cooperating fully with the SEC&rsquo;s investigation. The outcome of
such an investigation is difficult to predict, and the SEC has expanded the scope of its investigation beyond that of the Special Committee.
In addition, the SEC may subject our directors, officers and employees to fines, penalties and other punitive actions. In June 2022, FF
received a preliminary request for information from the U.S. Department of Justice (&ldquo;DOJ&rdquo;) in connection with the matters
that were the subject of the Special Committee investigation. FF has responded to that request and intends to fully cooperate with any
future requests from the DOJ. We have incurred, and may continue to incur, significant expenses related to legal, accounting and other
professional services in connection with the SEC investigation. At this stage, we are unable to assess whether any material loss or adverse
effect is reasonably possible as a result of the SEC&rsquo;s investigation or estimate the range of any potential loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
October 20, 2022, FF received a subpoena from the SEC requiring FF to produce certain documents relating to FF&rsquo;s transactions with
Senyun. On March 31, 2023, FF received questions from the SEC regarding FF&rsquo;s disclosed delivery estimates regarding the start of
production of the FF 91 Futurist. On March 23, 2023, FF received from the SEC a request to supplement production and on May 18, 2023,
FF received an additional subpoena from the SEC. On July 14, 2023, FF received an additional request from the SEC to supplement production
related to the May 18, 2023 subpoena and documents related to the consulting or sales agreements with the first three users of the FF
9.1 Futurist Alliance. On each of January 30, 2024, and April 8, 2024, FF received a subpoena from the SEC requiring FF to produce certain
additional documents relating to the SEC&rsquo;s investigation. FF has fully complied with and intends to continue to fully comply with
the subpoenas.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
has incurred, and may continue to incur, significant legal, accounting and other professional services expenditures in connection with
the Special Committee investigation, SEC investigation, SEC inquiries, the stockholders lawsuits and DOJ inquiry. Any legal proceedings
resulting from these investigations and litigation, including further shareholder derivative litigation or governmental inquiries or investigations
may further divert management&rsquo;s time and attention and may result in the incurrence of significant expense, including legal fees.
Such legal proceedings could also have a material adverse effect on our business, financial condition, results of operations and cash
flows including as a result of such expenses or arising from any consequences of such legal proceedings including damages, monetary fines,
sanctions, penalties, adverse publicity and damage to reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF will depend
on revenue generated from a single series of vehicles for the foreseeable future.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
success will initially depend substantially on the future sales and success of the FF 91 series. FF expects the FF&nbsp;91 series to be
its only manufactured vehicle in the market in the near future; it remains uncertain when FF will raise sufficient funding to complete
design, development, tooling, production, and deliveries of its second model, the FF 81 series. Historically, automobile customers have
come to expect a variety of vehicle models offered in a manufacturer&rsquo;s fleet and new and improved vehicle models to be introduced
frequently. It remains uncertain if FF&rsquo;s business will generate sufficient funds or FF will be able to obtain sufficient funds through
other means to introduce new vehicle models on a regular basis. Given that FF&rsquo;s business will depend on a single or limited number
of models in the foreseeable future, to the extent a particular model is not well-received by the market, FF&rsquo;s business prospects,
financial condition and operating results could be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>The market for
FF&rsquo;s vehicles, including its SLMD vehicles, is nascent and not established.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
B2C passenger electric vehicles are planned to be with leading design and provide superior driving experience and personalized user experience
in their respective customer segments. FF&nbsp;believes its electric vehicles represent the &ldquo;smart mobility&rdquo; of the next generation.
FF&rsquo;s growth is highly dependent upon the consumers&rsquo; reception and adoption of FF&rsquo;s vision as to what the future of transportation
and mobility should embody. Although there are many automakers introducing multiple options of mass-market electric vehicles, the market
for electric vehicles with ultra-new technology and cutting-edge styling is still nascent and untested. In addition to vehicles targeting
end-customers, FF plans to build the SLMD vehicles targeting B2B business-to-business last-mile delivery logistics companies. FF believes
its modular approach to vehicle design provides adaptive and sustainable solutions in the commercial vehicle segment, thus meeting the
needs of commercial vehicle owners. However, there is uncertainty as to the future demands for FF&rsquo;s vehicles in both B2B and B2C
market segments, and there is no assurance that the retail and commercial vehicle market FF&nbsp;envisions for its vehicles will be established.
To a large extent, it depends on general economic, political, and social conditions, all of which are beyond FF&rsquo;s control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF depends on its
suppliers, the majority of which are single-source suppliers. The inability of these suppliers to deliver necessary components for FF&rsquo;s
products according to the schedule and at prices, quality levels and volumes acceptable to FF, or FF&rsquo;s inability to efficiently
manage these suppliers, could have a material adverse effect on its business prospects, financial condition and operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
FF 91 model incorporates approximately 1,800 purchased components sourced from approximately 150 suppliers, many of whom are currently
FF&rsquo;s single-source suppliers for the components they supply, and FF expects this to be similar for any other vehicles FF may produce.
The supply chain exposes FF to multiple potential sources of delivery failure or component shortages. For example, on June 16, 2023, FF
announced that due to a supplier&rsquo;s timing constraints and the completion of an additional system testing related to FF&rsquo;s enhanced
safety testing of a single unique product feature of the FF 91 2.0 Futurist Alliance, the timing of its previously announced FF 91 2.0
Futurist Alliance Phase 2 delivery would be delayed to August 2023 from the end of the second quarter 2023. Additionally, in view of FF&rsquo;s
current cash position, it has delayed payment to suppliers, which in some cases has resulted in, and may continue to result in, certain
of such suppliers ceasing to do business with FF. FF is in active negotiations with suppliers to minimize these risks and has been successful
in retaining the majority of key suppliers. To the extent FF&rsquo;s suppliers experience any delays or stoppages in providing FF with
or developing necessary components or experience quality issues, or if they otherwise decide to cease doing business with FF, FF could
experience further delays, some of which may be significant, in delivering on its planned timelines.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Currently,
FF has not approved secondary sources for the key single sourced components used in the FF 91 series. Generally, FF does not maintain
long-term agreements with these single-source suppliers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Historically,
certain suppliers ceased supplying their components and initiated legal claims against FF when FF failed to make overdue payments. While
most of these prior legal claims have been settled through the vendor trust FF established in April&nbsp;2019 (&ldquo;Vendor Trust&rdquo;),
there are still a number of remaining and new disputes with suppliers in the U.S. and in China. Some suppliers have requested accelerated
payments and other terms and conditions as a result of our past payment history and concerns about FF&rsquo;s financial condition, leading
to less favorable payment terms than FF had anticipated, and delaying or putting at risk certain deliveries. More recently, some suppliers
have initiated legal claims against FF as FF fails to make overdue payments and more suppliers may continue to do so in the future. Any
disruption in the supply of components, whether or not from a single-source supplier, could temporarily disrupt FF&rsquo;s production
until a satisfactory alternative supplier is found, which can be time consuming and costly. There can be no assurance that FF would be
able to successfully retain alternative suppliers or supplies in a timely manner or on acceptable terms, if at all. If FF is unable to
efficiently manage its suppliers, including its relationship with them, FF&rsquo;s business, prospects, financial condition and operating
results may be materially and adversely affected. Additionally, changes in business and/or political conditions, force majeure events,
changes in regulatory framework and other factors beyond FF&rsquo;s control could also affect the suppliers&rsquo; ability to deliver
components in a timely manner. Any of the foregoing could materially and adversely affect FF&rsquo;s business, prospects, financial condition
and operating results and could result in a material change in FF&rsquo;s operations and a material reduction in the market value of FF&rsquo;s
securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>If any of FF&rsquo;s
suppliers become economically distressed or go bankrupt, FF may be required to provide substantial financial support or take other measures
to ensure supplies of components or materials, which could increase FF&rsquo;s costs, affect its liquidity or cause production disruptions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
expects to purchase various types of equipment, raw materials and manufactured component parts from its suppliers. If any of these suppliers
experience substantial financial difficulties, cease operations, or otherwise face business disruptions, FF may be required to provide
substantial financial support to ensure supply continuity, or FF would have to take other measures to ensure components and materials
remain available. Any disruption could affect FF&rsquo;s ability to deliver vehicles and could increase FF&rsquo;s costs and negatively
affect its liquidity and financial performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF faces a number
of challenges in the sale and marketing of its vehicles.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
plans to enhance its brand recognition, improve its brand reputation and grow its client base by substantial investments in marketing
and business development activities. However, FF cannot guarantee that its marketing spending or the marketing strategies it plans to
adopt will have their anticipated effect or generate returns. FF faces a number of challenges in the sale and marketing of its vehicles,
including, without limitation:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Demand in the automobile industry is highly volatile;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Final delivered range, performance and quality of FF&rsquo;s vehicles may vary from estimates;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">It is expensive to establish a strong brand. FF may not succeed in continuing to establish, maintain and
strengthen the FF brand in a cost-efficient manner, or at all;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Many consumers are not aware of the benefits of FF&rsquo;s products, which may depend on factors beyond
FF&rsquo;s control such as transition of consumer behaviors;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF competes with other automotive manufacturers for consumer spending;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Many other automotive manufacturers have already manufactured and sold electric vehicles providing them
with a marketing advantage;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF&rsquo;s failure to keep up with rapid technological changes could make its vehicles less attractive
than those of competitors or make potential customers unwilling to pay a premium for FF&rsquo;s vehicles;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF may not be able to attract a sufficient number of retail partners to support its expected sales volumes;
and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF&rsquo;s efforts to develop and market its SLMD vehicles might not be successful given the fact that
its target customers are commercial logistic companies which have different requirements compared to retail consumers.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">If
FF is unable to efficiently enhance its brand and market its products, its business prospects, financial condition and operating results
may be adversely and materially affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF needs to develop
complex software and technology systems in coordination with vendors and suppliers to reach production for its electric vehicles, and
there can be no assurance such systems will be successfully developed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
vehicles will use a substantial amount of third-party and in-house software code and complex hardware to operate. The development of such
advanced technologies is inherently complex, and FF will need to coordinate with vendors and suppliers to achieve development for its
electric vehicles. Defects and errors may be revealed over time, and FF&rsquo;s control over the performance of third-party services and
systems may be limited. FF is relying on third-party suppliers to develop and manage emerging technologies for use in its vehicles, including
lithium-ion battery technology. As technology in electric vehicles is constantly evolving, FF may also need to rely on suppliers to develop
technologies that are not yet commercially viable. There can be no assurance that FF&rsquo;s suppliers will be able to meet the technological
requirements, production timing, and volume requirements needed to support FF&rsquo;s business plan. Nor can FF assure that such emerging
technologies and systems will be successfully developed on commercially reasonable terms, or at all. FF&rsquo;s potential inability to
develop the necessary software and technology systems may harm its competitive position and its business, prospects, financial condition
and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF&rsquo;s decision
to manufacture its own vehicles in its leased FF ieFactory California does not guarantee FF will not incur significant delays in the production
of the vehicles.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
plans to continue to build-out its leased FF ieFactory California to support the production of the FF 91 series. Additionally, this construction
may experience unexpected delays or other difficulties which could further increase costs and/or adversely affect FF&rsquo;s scheduled
timeline to manufacture and deliver vehicles. Further, manufacturing and assembling components in-house in the FF ieFactory does not guarantee
that the production of its vehicles will be on schedule. Various risks and uncertainties inherent in all new manufacturing processes could
result in delays in the production of FF&rsquo;s vehicles, including for example those with respect to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">pace of bringing production equipment and processes online with the capability to manufacture high-quality
units at scale;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">compliance with complex and evolving environmental, workplace safety and similar regulations;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">channels to secure necessary equipment, tools and components from suppliers on acceptable terms and in
a timely manner;</TD></TR></TABLE>

<P STYLE="text-align: center; margin-top: 0; margin-bottom: 0">&nbsp;</P>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the ability to attract, recruit, hire and train skilled employees;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">quality controls;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">a health emergency, difficult economic conditions and international political tensions; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">other delays and cost overruns.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Production and
manufacturing of some of FF&rsquo;s vehicles may be outsourced to a third-party contract manufacturer in South Korea and potentially through
a joint venture in China. If such contract manufacturer or joint venture fails to produce and deliver vehicles in a timely manner for
any reason, FF&rsquo;s business, prospects, financial condition and results of operation could be materially harmed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
plans to outsource the manufacturing of some of its vehicles to a third-party contract manufacturer in South Korea and may also set up
a joint venture in China for vehicle manufacturing, which FF may heavily rely upon. Collaboration with third parties for the manufacturing
of vehicles is subject to risks that may be outside FF&rsquo;s control. FF has yet to enter into any legally binding definitive agreements
regarding such third-party contract manufacturers (other than with a third-party contract manufacturer in South Korea) or joint venture,
and the parties could revise or terminate the preliminary memorandum of understanding and cooperation agreement. The parties may also
not reach agreement on legally binding definitive documents regarding such joint venture, could abandon the related preliminary memorandum
of understanding and cooperation agreement and pursue other commercial arrangements (such as contract manufacturing or sale) or could
terminate the preliminary memorandum of understanding and cooperation agreement at any time before the definitive agreements are signed.
Even though the definitive agreement has been signed with the third-party contract manufacturer in South Korea, there remains uncertainty
if the manufacturing facility will be built-out as planned or if the parties will cooperate with each other as agreed.&nbsp;<B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, FF could experience delays if such third-party contract manufacturing partner or joint venture does not meet agreed upon timelines
or experiences capacity constraints. There is risk of potential disputes with business partners, and FF could be affected by adverse publicity
related to its business partners, whether or not such publicity is related to their collaboration with FF. FF&rsquo;s ability to successfully
build a premium brand could also be adversely affected by perceptions if the quality of the third-contract manufacturing partners or joint
venture&rsquo;s products not related to FF&rsquo;s products are questioned. Furthermore, there can be no assurance that FF will successfully
ensure its manufacturing partners or joint ventures maintain appropriate quality standards, with any failure to do so adversely affecting
customers&rsquo; perceptions of FF&rsquo;s self-manufactured electric vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">If
FF experiences delays, disputes or other difficulties with third-party manufacturers or joint ventures that FF outsources orders to, there
can be no assurance that it would be able to engage other third parties or to establish or expand its own production capacity to meet
the needs of its customers in a timely manner or on acceptable terms, or at all. The expense and time required to complete any transition,
and to assure that vehicles manufactured at facilities of new manufacturers comply with FF&rsquo;s quality standards and regulatory requirements
may be greater than anticipated. Any of the foregoing could adversely affect FF&rsquo;s business, results of operations, financial condition
and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF has minimal
experience servicing and repairing its vehicles. The inability to adequately service vehicles may adversely affect FF&rsquo;s business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
has minimal experience servicing and repairing its vehicles. Servicing EVs is different than servicing vehicles with internal combustion
engines and requires specialized skills, including high voltage training and servicing techniques. Although FF is planning to internalize
most aspects of vehicle service over time, initially FF plans to partner with third parties to enable nationwide coverage for roadside
and off-road assistance and collision repair needs. There can be no assurance that FF will be able to enter into an acceptable arrangement
with any such third-party providers. Although such servicing partners may have experience in servicing other vehicles, they will initially
have limited experience in servicing FF vehicles. There can be no assurance that such service arrangements will adequately address the
service requirements of FF&rsquo;s customers to their satisfaction, or that FF and its servicing partners will have sufficient resources,
experience, or inventory to meet these service requirements in a timely manner as the volume of EVs we deliver increases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, a number of states currently impose limitations on the ability of manufacturers to directly service vehicles. The application
of these state laws to our operations could hinder or impede our ability to provide services for our vehicles from a location in every
state. As a result, if FF is unable to roll out and establish a widespread service network that complies with applicable laws, customer
satisfaction could be adversely affected, which in turn could materially and adversely affect FF&rsquo;s reputation and thus its business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
the future, additional pressure may be placed on FF&rsquo;s customer support team or partners, and FF may be unable to respond quickly
enough to accommodate short-term increases in customer demand for technical support. Customer behavior and usage may result in higher
than expected maintenance and repair costs, which may negatively affect FF&rsquo;s business. FF also could be unable to modify the future
scope and delivery of its technical support to compete with changes in the technical support provided by its competitors. Increased customer
demand for support, without corresponding revenue, could increase costs and negatively affect FF&rsquo;s results of operations. If FF
is unable to successfully address the service requirements of its customers or establish a market perception that FF maintains high-quality
support, FF may be subject to claims from customers, including loss of revenue or damages, and FF&rsquo;s business could be materially
and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Changes in U.S.
and international trade policies, including the export and import controls and laws, particularly with regard to China, may adversely
impact FF&rsquo;s business and operating results.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
operates with a United&nbsp;States and China dual-home market strategy, partnering with leading international suppliers from North America,
Europe and Asia. While FF believes this is the best strategic business model, it also is more subject to risks associated with international
trade conflicts including between the United&nbsp;States and China, particularly with respect to export and import controls and laws.
Former President Donald J. Trump advocated for greater restrictions on international trade in general, which significantly increased tariffs
on certain goods imported into the United&nbsp;States - particularly from China. Former President Trump also took steps toward restricting
trade in certain goods. In response, China and other countries imposed similar retaliatory tariffs and other measures and such international
trade conflicts have continued under the Biden administration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
December 23, 2021, the Uyghur Forced Labor Prevention Act, which effectively prohibits imports of any goods made either wholly or in part
in Xinjiang, was signed into law. The law went into effect on June 21, 2022. The law prohibits &ldquo;the importation of goods made with
forced labor&rdquo; unless U.S. Customs and Border Protection determines, based on &ldquo;clear and convincing evidence&rdquo;, that the
goods in question were not produced &ldquo;wholly or in part by forced labor&rdquo;, and submits a report to the U.S. Congress setting
out its findings. While we do not currently expect that this law will directly affect our supplies, since we do not believe that our suppliers
source materials from Xinjiang for the products they sell to us, other renewable energy companies&rsquo; attempts to shift suppliers in
response to this law, withhold release orders, or other policy developments could result in shortages, delays, and/or price increases
that could disrupt our own supply chain or cause our suppliers to renegotiate existing arrangements with us or fail to perform on such
obligations. Broader policy uncertainty could also reduce Chinese panel production, affecting supplies and/or prices for panels, regardless
of supplier. While we have developed multiple supply sources in a variety of countries, we could still be adversely affected by increases
in our costs, negative publicity related to the industry, or other adverse consequences to our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Rising
political tensions could reduce trade volume, investment, technological exchange and other economic activities between major international
economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets. Additionally,
increasing tariffs could impact raw material prices, the cost of component parts and transportation. Any of the foregoing could have an
adverse effect on FF&rsquo;s business, prospects, financial condition and results of operations. The Biden administration may also enact
policy changes that could have an impact on FF&rsquo;s business, such as the recent Executive Order on Addressing United States Investments
in Certain National Security Technologies and Products in Countries of Concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Continued or increased
price competition in the automotive industry generally, and in electric and other alternative fuel vehicles, may harm FF&rsquo;s business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Increased
competition could result in lower vehicle unit sales, increased inventory, price reductions, revenue shortfalls, loss of customers and
loss of market share, which could harm FF&rsquo;s business, prospects, financial condition and operating results. For example, the automotive
industry has witnessed increasing price competition over the years. With more competitors entering the field, many manufacturers are facing
downward price pressure and have been adjusting their pricing strategies. FF may not have the same financial resources as some of the
competitors to allow it to adjust pricing strategies, which may result in a loss of customers and future market share. On the other hand,
if FF follows the downward price adjustment trend, its ability to generate revenues and achieve profitability may be adversely affected.
Any of the foregoing may harm FF&rsquo;s business, prospects, results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF faces competition
from multiple sources, including new and established domestic and international competitors, and expects to face competition from others
in the future, including competition from companies with new technology. This fierce competition may adversely affect FF&rsquo;s revenues,
increase its costs to acquire new customers, and hinder its ability to acquire new customers.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
automotive market in the United&nbsp;States, China, Middle East and the E.U, which are FF&rsquo;s target markets, is and will remain highly
competitive. A significant and growing number of established and new automobile manufacturers, as well as other companies, have entered
or are reported to have plans to enter the alternative fuel vehicle market, including hybrid, plug-in hybrid and fully electric vehicles,
as well as the market for autonomous driving technology and applications. In some cases, such competitors have announced an intention
to produce electric vehicles exclusively at some point in the future. FF directly competes with other pure-play electric vehicle companies
targeting the high-end market segment, and to a lesser extent with NEVs and ICE vehicles in the mid- to high-end market segment offered
by traditional OEMs. In light of the increased demand and regulatory push for and technology changes in connection with the alternative
fuel vehicles, FF expects competition in the industry to intensify with more new players in the future, including companies with new technology.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Many
of FF&rsquo;s current and potential competitors, have significantly greater financial, technical, manufacturing, marketing, distribution
and other resources than FF, and are able to devote greater resources to the design, development, manufacturing, distribution, promotion,
sale and support of their products than FF. In order to acquire customers and better compete, FF may have to incur significant expenses
for marketing and business development activities and discounts. Any inability to successfully compete with new or existing competitors
may prevent FF from attracting new customers and result in loss of market share. By the time FF starts delivering FF 91 on a larger scale,
a substantial portion of the market share may have already been taken by FF&rsquo;s competitors. There can be no assurance that FF will
be able to compete successfully in global and local markets, failure of which may materially and adversely affect FF&rsquo;s business,
prospects, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF&rsquo;s go-to-market
and sales strategy, including its own and partner stores and showrooms as well as FF&rsquo;s online web platform, will require substantial
investment and commitment of resources and is subject to numerous risks and uncertainties.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
intends to establish online and offline marketing, sales, and after-sales channels, which consist of its own stores, partner stores and
showrooms and an online web platform. FF plans to distribute its vehicles in certain key markets through its direct stores, while establishing
a distribution model of direct sales and partner-owned stores and showrooms in other markets. Users will be able to place orders and purchase
FF&rsquo;s vehicles exclusively through an online platform while assigning the transaction to a specific store or showroom. Establishing
FF&rsquo;s direct stores rather than exclusively distributing its vehicles though partner stores will require significant capital expenditures
and may result in reduced or slower expansion of FF&rsquo;s distribution and sales systems in the key markets compared to a traditional
dealership system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
expects the partner stores and showrooms will be compensated from the sales and services that are conducted online and from the capital
upside of the FF equity that the retail partners may receive as an incentive for making their initial investment in stores of showrooms.
However, FF cannot assure that its partner business model will be as attractive as that of traditional OEMs and thus that FF will be able
to scale up its network to an adequate size. In addition, FF is not in a position to guarantee that it will be able to generate sufficient
traffic to FF&rsquo;s online web platform or to attract enough users to place orders. Moreover, FF will be competing with automakers with
well-established distribution channels, which places significant risk to the successful implementation of FF&rsquo;s business plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">If
FF is unable to roll out and establish a broad network covering both online and offline channels that fully meet customers&rsquo; expectations,
consumer experience could be adversely affected, which could in turn materially and adversely affect FF&rsquo;s business, financial condition,
results of operations and prospects. Implementing the FF&nbsp;business model is subject to numerous significant challenges, including
obtaining permits and approvals from government authorities, and FF may not be successful in addressing these challenges. In addition,
dealer trade associations may mount challenges to FF&rsquo;s distribution strategy by challenging the legality of FF&rsquo;s operations
in court and employing administrative and legislative processes to attempt to prohibit or limit FF&rsquo;s ability to operate. All these
would have a material and adverse effect on FF&rsquo;s business, prospects, results of operations and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Difficult economic
conditions, financial or economic crises, or the perceived threat of such a crisis, including a significant decrease in consumer confidence,
may affect consumer purchases of premium items, such as FF&rsquo;s&nbsp;electric vehicles.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Sales
of premium consumer products, such as the FF 91 Futurist and other electric vehicles, depend in part on discretionary consumer spending
and therefore may decline based on adverse changes in general economic conditions. The global economy and financial markets experience
significant disruptions from time to time, constantly facing new challenges, including ongoing trade disputes and tariffs, as well as
the related economic policies taken by various governments around the world. It is unclear whether these challenges will be successfully
addressed and what effects they may have. Any prolonged slowdown in economic development might lead to tighter credit markets, increased
market volatility, sudden drops in business and consumer confidence and dramatic changes in business and consumer behaviors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Difficult
macroeconomic conditions, such as decreases in per capita income and disposable income, increased and prolonged unemployment, a decline
in consumer confidence, and/or reduced spending by businesses could have a material adverse effect on future investor interest or customer
demand for FF&rsquo;s vehicles. In response to the perceived uncertainty in economic conditions, consumers might delay, reduce or cancel
purchases of such electric vehicles. Potential customers may seek to reduce spending by foregoing luxurious new energy vehicles. Decreased
demand for FF vehicles, particularly in the United&nbsp;States and China, could negatively affect the business, prospects, financial condition
and results of operations of FF.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF faces risks
related to natural disasters, climate change, health epidemics and pandemics, terrorist attacks, civil unrest and other circumstances
outside its control, which could significantly disrupt FF&rsquo;s operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
occurrence of unforeseen or catastrophic events, including the emergence of an epidemic, pandemic (such as the COVID-19 pandemic) or other
widespread health emergency, civil unrest, war (such as the conflict in Ukraine), terrorist attacks, climate change or natural disasters
could create economic and financial disruptions. These types of events could lead to operational difficulties, impair FF&rsquo;s ability
to manage its business and expose FF&rsquo;s business activities to significant losses. FF&rsquo;s management and operational teams are
based in the United&nbsp;States and China. FF has a manufacturing facility in Hanford, California, and has executed an agreement with
a contract manufacturer in South Korea. FF is also exploring other potential contract manufacturing options in addition to the contract
manufacturer in South Korea. Additionally, FF may establish manufacturing through a joint venture in China and/or other regions for certain
future vehicle models. An unforeseen or catastrophic event in any of these regions could adversely impact FF&rsquo;s operations.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>If FF is unable
to attract and/or retain key employees and hire qualified Board members, officers and other individuals, its ability to compete could
be harmed.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
future success depends, in part, upon its ability to retain key members of its senior management team and the Board, and to attract and
retain other highly qualified individuals for the Board and senior management positions. FF has experienced significant changes in the
membership of the Board and senior management team, including most recently the resignations of Jonathon Maroko from his position as an
interim Chief Financial Officer, the resignation of Li Han from her position as a member of the Board and member of Nominating and Corporate
Governance Committee. This significant recent turnover has disrupted, and potential future turnover could further disrupt, FF&rsquo;s
operations, strategic focus or ability to drive stockholder value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">If
FF fails to attract new skilled personnel for senior management positions and the Board, or if&nbsp;one&nbsp;or more of them are unable
or unwilling to continue their services with FF, FF&nbsp;may not be able to replace them easily, in a timely manner, or at all. Movements
in the price of Class A Common Stock, including any decline, may significantly affect the value of employee stock options, which may at
any time be insufficient to counteract more lucrative offers from other companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, FF may incur additional expenses to recruit, train and retain qualified personnel. Certain current and former executives of
FF adopted a global partnership program to retain, and provide incentives for, certain key management members. However, there is no guarantee
that FF will be able to attract other qualified candidates to fill certain positions. The failure to do so may lead to difficulties in
effectively executing FF&rsquo;s business strategies, and its business, prospects, financial condition and results of operations could
be materially and adversely affected. Furthermore, if any of FF&rsquo;s&nbsp;executive officers or key employees join a competitor or
form a competing company, FF may lose know-how and be poorly positioned in the marketplace.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Unionization activities
or labor disputes may disrupt FF&rsquo;s business and operations and affect its profitability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Although
none of our employees are currently represented by organized labor unions, it is not uncommon for employees at companies in the automobile
industry to belong to a union, which can result in higher employee costs and increased risk of work stoppages. Although FF works diligently
to provide the best possible work environment for its employees, they could still decide to join or seek representation by organized labor
unions, or FF may be required to become a union signatory. FF&rsquo;s business and operations as well as its profitability could be adversely
affected if unionized activities such as work stoppages occur, or if FF becomes involved in labor disputes or other actions filed by labor
unions. Any unfavorable outcome in such disputes could create a negative perception of how FF treats its employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>If FF&rsquo;s employees
were to engage in strikes or other work stoppages, or if third-party strikes or work stoppages cause supply chain interruptions, FF&rsquo;s
business, prospects, operations, financial condition and liquidity could be materially adversely affected.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">A
strike or work stoppage by FF&rsquo;s employees or by employees of FF&rsquo;s outsourcing partners or suppliers could have a material
adverse effect on its business, prospects, operations, financial condition and liquidity. Work stoppages at FF&rsquo;s suppliers may cause
supply chain interruptions, which could materially and adversely impact FF&rsquo;s&nbsp;operations given its limited, and in most cases,
single-source supply chain. If a work stoppage occurs, it could delay the manufacture and sale of FF&rsquo;s products, disrupt its business
and operations, or have an adverse effect on FF&rsquo;s cash flow, all of which could materially and adversely affect FF&rsquo;s business,
prospects, operating results, financial condition and liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>The discovery of
defects in vehicles may result in delays in production and delivery of new models, recall campaigns or increased warranty costs, which
may adversely affect FF&rsquo;s brand and result in a decrease in the residual value of FF&rsquo;s&nbsp;vehicles.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
vehicles may contain design and manufacturing defects. The design and manufacturing of FF&rsquo;s vehicles are complex and could contain
latent defects and errors, which may cause its vehicles not to perform or operate as expected or even result in property damage, personal
injuries or death. Furthermore, FF&rsquo;s vehicles use a substantial amount of third-party and in-house software codes and complex hardware
to operate. Advanced technologies are inherently complex, and defects and errors may be revealed over time. While FF has performed extensive
internal testing on its vehicles and the related software and hardware systems, and will continue this testing and evaluation, FF has
a limited frame of reference by which to assess the long-term performance of its vehicles and systems. There can be no assurance that
FF will detect or fix the defects in a timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
discovery of defects in FF&rsquo;s vehicles may result in delays in production and delivery of new models, recall campaigns, product liability
claims or increased warranty costs and other expenses, and may decrease the residual values of vehicles that are subject to leasing arrangements.
FF might from time to time, voluntarily or involuntarily, initiate vehicle recalls if any of FF&rsquo;s vehicles, including any systems
or parts sourced from suppliers and contractors, prove to be defective or noncompliant with applicable laws and regulations. For example,
on March 1, 2024, FF issued a voluntary recall of certain 2023 FF 91 2.0 vehicles when it was discovered that these vehicles had a software
issue that could prevent the airbag malfunction light from illuminating in case of an airbag control unit communications fault. Such recalls,
whether voluntary or involuntary or caused by systems or components engineered or manufactured by FF or by suppliers and contractors,
could require that FF incur significant costs relating to logistics and/or repair. All of the foregoing could materially harm FF&rsquo;s
brand image, business, prospects, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may become subject
to product liability claims, which could harm its financial condition and liquidity if it is not able to successfully defend or insure
against such claims.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
may become subject to product liability claims, even those without merit, which could harm its business, prospects, operating results,
and financial condition. The automobile industry experiences significant product liability claims and FF faces inherent risk of exposure
to claims in the event its vehicles do not perform as expected or malfunction resulting in personal injury or death. The risks in this
area are particularly pronounced given FF has limited field experience for its vehicles and currently does not have product liability
insurance. A successful product liability claim against FF could require it to pay a substantial monetary award. Moreover, a product liability
claim could generate substantial negative publicity about FF&rsquo;s vehicles and business and inhibit or prevent commercialization of
other future vehicle candidates, which would have a material adverse effect on FF&rsquo;s brand, business, prospects and operating results.
Any insurance coverage FF is able to obtain in the future might not be sufficient to cover all potential product liability claims. FF
may not be able to secure additional product liability insurance coverage on commercially acceptable terms or at reasonable costs when
needed, which could have a material and adverse effect on FF&rsquo;s operating results and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>If FF is sued for
infringing or misappropriating intellectual property rights of third parties, litigation could be costly and time consuming and could
prevent FF from developing or commercializing its future products.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
is subject to litigation risks from third parties alleging infringement of their intellectual property, which could be time consuming
and costly, regardless of whether the claims have merit. Individuals, organizations and companies, including FF&rsquo;s competitors, may
hold or obtain patents, trademarks and/or other proprietary rights that would prevent, limit or interfere with its ability to make, use,
develop, sell and/or market FF&rsquo;s vehicles or components, and may bring claims alleging FF&rsquo;s infringement of such rights. If
FF is determined to have or believes there is a high likelihood that FF has infringed upon a third party&rsquo;s intellectual property
rights, not only may FF be required to pay substantial damages or settlement costs, but FF may also be required to cease sales of its
vehicles, incorporate certain components into its vehicles, or offer vehicles or other goods or services that incorporate or use the challenged
intellectual property, seek a license from the holder of the infringed intellectual property rights (which license may not be available
on reasonable terms or at all), redesign the vehicles or other goods or services, establish and maintain alternative branding for FF&rsquo;s
products and services, and/or alter FF&rsquo;s business strategy, all of which could prevent FF from developing or commercializing its
vehicles and adversely and materially hamper its business, prospects, financial condition and results of operations. In addition, any
litigation or claims, whether or not valid, could result in substantial costs, negative publicity, and diversion of resources and management
attention.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may be subject
to damages resulting from claims that FF or its employees have wrongfully used or disclosed alleged trade secrets or other intellectual
property rights of former employers of FF&rsquo;s employees.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Many
of FF&rsquo;s employees were previously employed by other automotive companies or by suppliers to automotive companies. FF may be subject
to claims that it or these employees have inadvertently or otherwise used or disclosed trade secrets or other proprietary information
of their former employers. Litigation may be necessary to defend against these claims. If FF fails in defending such claims, in addition
to paying monetary damages, it may lose valuable intellectual property rights or personnel. A loss of key personnel or their work product
could hamper or prevent FF&rsquo;s ability to commercialize its products, which could severely harm FF&rsquo;s business, prospects, results
of operations and financial condition. Even if FF is successful in defending against these claims, litigation could result in substantial
costs, negative publicity and demand on management resources, which would materially adversely affect its business, prospects, brand,
financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF has elected
to protect some of its technologies as trade secrets rather than as patents, however, this approach has certain risks and disadvantages.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
has elected to protect many of its technological developments as trade secrets rather than filing patent applications on them. If another
person has filed or files in the future a patent application on the same subject invention FF may be precluded from subsequently filing
for its own patent on such invention. In addition, if the other person&rsquo;s patent application is granted, FF&rsquo;s continued use
of its technological development could then constitute infringement of the other person&rsquo;s patent. In that case FF could be forced
to stop using the affected technology or to pay royalties to continue using it. These risks are heightened for FF given the large number
of patent filings in the industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Another
risk of reliance upon trade secret protection is that there is no guarantee that the efforts FF has made to keep its trade secrets secret
will be successful. Trade secrets may be taken or used without FF&rsquo;s authorization or knowledge, including via information security
breaches. It is difficult to detect that trade secrets are being misappropriated, and it is very difficult and expensive to prove disclosure
or unauthorized use in court and to obtain an adequate remedy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF is dependent
upon its proprietary intellectual properties.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
considers its copyrights, trademarks, trade names, internet domain names, patents and other intellectual property assets invaluable to
its ability to develop and protect new technology, grow its business and enhance FF&rsquo;s brand recognition. FF has invested significant
resources to develop its intellectual property assets. Failure to successfully maintain or protect these assets could harm FF&rsquo;s
business. The steps FF has taken to protect its intellectual property rights may not be adequate or prevent theft and use of its trade
secrets by others or prevent competitors from copying its newly developed technology. If FF is unable to protect its proprietary rights
or if third parties independently develop or gain access to similar technology, FF&rsquo;s business, revenue, reputation and competitive
position could be harmed. For example, the measures FF takes to protect its intellectual property from unauthorized use by others may
not be effective for various reasons, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">any patent applications FF submits may not result in the issuance of patents;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the scope of FF&rsquo;s issued patents may not be broad enough to protect its proprietary rights;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF&rsquo;s issued patents may be challenged and/or invalidated by its competitors or others;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">the costs associated with enforcing patents, confidentiality and invention agreements and/or other intellectual
property rights may make aggressive enforcement impracticable;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">current and future competitors may circumvent FF&rsquo;s patents;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF&rsquo;s in-licensed patents may be invalidated, or the owners of these patents may breach their license
arrangements; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">even if FF obtains a favorable outcome in litigation asserting its rights, FF may not be able to obtain
an adequate remedy, especially in the context of unauthorized persons copying or reverse engineering FF&rsquo;s products or technology.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
may need to resort to litigation to enforce its intellectual property rights if its intellectual property rights are infringed or misappropriated,
which could be costly and time consuming. Additionally, protection of FF&rsquo;s&nbsp;intellectual property rights in different jurisdictions
may vary in their effectiveness. FF has little patent coverage anywhere in the world except the United&nbsp;States and China. Implementation
and enforcement of Chinese intellectual property-related laws historically has been considered to be deficient and ineffective. Moreover,
with FF&rsquo;s ownership of patents limited mostly to those issued in China and the United&nbsp;States, FF may find it impossible to
prevent competitors from copying its patented advancements in vehicles manufactured and sold elsewhere.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Despite
FF&rsquo;s efforts to protect its proprietary rights, third parties may still attempt to copy or otherwise obtain and use its intellectual
property or seek court declarations that such third parties&rsquo; intellectual property does not infringe upon FF&rsquo;s intellectual
property rights, or they may be able to independently develop technologies that are the same as or similar to FF&rsquo;s technologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may not be able
to obtain patent protection on certain of its technological developments, and may face better-funded competitors with formidable patent
portfolios.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
may not be able to obtain patent protection for certain of its technological developments because some of its existing applications were
abandoned and applicable filing deadlines for seeking to protect such technologies may have passed in the United&nbsp;States and around
the world. Also, FF has elected to protect some of its technologies as trade secrets rather than as patents. However, this approach risks
the wrongful disclosure and use of FF&rsquo;s trade secrets by departing employees and others. FF has delayed filing for patent protection
on certain of its technological developments in recent years due to financial constraints. Because patents are granted on a first-to-file
basis, a delay in patent filings, such as this, can result in other companies filing for and obtaining the same inventions either independently
derived or otherwise. In addition, inventions not subject to an earlier filing date as disclosed in an active application can result in
FF&rsquo;s inventions or patents being &ldquo;blocked&rdquo; by prior art in the meantime. The consequences of the filing delays could
place FF at a disadvantage relative to competitors that have been continuously more active in filing patent applications and could leave
FF unable to protect its technologies that differentiate FF&rsquo;s vehicles from the vehicles of its competitors. FF also faces better-funded
competitors with formidable patent portfolios and there can be no guarantee that one or more competitors has not and/or will not obtain
patent protection on features necessary to implement in FF&rsquo;s vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF is subject to
stringent and changing laws, regulations, standards and contractual obligations related to data privacy and security, and FF&rsquo;s actual
or perceived failure to comply with such obligations could harm its reputation, subject it to significant fines and liability, or otherwise
adversely affect FF&rsquo;s business, prospects, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
plans to permit certain of its business partners to collect, process, store, and in some cases transfer across borders, personally identifiable
information concerning the drivers and passengers of FF&rsquo;s vehicles. Such information may include among other things faces, names,
geolocation information, payment data, and preferences. Although FF has adopted security policies and measures, including technology,
to protect its customer information and other proprietary data, it may be required to expend significant resources to further comply with
information security laws, data breach notification requirements, as well as privacy and data protection law if third parties improperly
obtain or use personal information of FF&rsquo;s customers or FF otherwise experiences a data loss with respect to its customers&rsquo;
personal information. Moreover, privacy and data protection laws are constantly evolving, and new requirements may limit or disrupt FF&rsquo;s
data practices, restrict our ability to market our products, impact operations and increase legal and reputational risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
plans to operate on a global basis, and thus FF will face a significant burden to comply with data privacy and information security laws
and regulations in the United&nbsp;States at the federal and state level, China, Brazil, Europe, the UK and the rest of the world. Although
FF endeavors to comply with all such laws and regulations, as well as FF&rsquo;s own policies and obligations under contracts with third
parties, FF may at times fail to do so or be alleged to have failed to do so. Any failure or perceived failure by FF to comply with such
privacy, data protection or information security laws, regulations, policies, and obligations in one or more jurisdictions could expose
FF to litigation, awards, fines or judgments, civil and/or criminal penalties or negative publicity, and could adversely affect FF&rsquo;s
business, financial condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
global regulatory framework governing the collection, processing, storage, use and sharing of personal information, is rapidly evolving
and is likely to continue to be subject to uncertainty and varying interpretations. In the United&nbsp;States, certain state laws may
be more stringent or broader in scope, or offer greater individual rights, with respect to sensitive and personal information than federal,
international or other state laws, and such laws may differ from each other, which may complicate compliance efforts. For example, California
enacted the California Consumer Privacy Act of 2018 (&ldquo;CCPA&rdquo;) which went into effect in January&nbsp;2020 and became enforceable
by the California Attorney General in July&nbsp;2020, and which, among other things, requires companies covered by the legislation to
provide new disclosures to California consumers and afford such consumers new rights of access and deletion for personal information,
as well as the right to opt out of certain sales of personal information. The CCPA provides for civil penalties for violations, as well
as a private right of action for certain data breaches that result in the loss of personal information. This private right of action may
increase the likelihood of, and risks associated with, data breach litigation. Additionally, a California ballot initiative, the California
Privacy Rights Act (&ldquo;CPRA&rdquo;) was passed in November&nbsp;2020 and its amendments to the CCPA went into effect January 1, 2023.
The CPRA amendments impose additional obligations on in-scope companies and significantly modify the CCPA, including by expanding consumers&rsquo;
rights with respect to certain sensitive personal information. The CPRA amendments also created a new state agency vested with authority
to implement and enforce the CCPA, and which is presently engaged in rulemaking processes that can introduce additional burdens or obligations
on FF&rsquo;s compliance programs and data practices. Moreover, additional states such as Virginia, Colorado, Connecticut and Utah have
passed similar legislation that went into effect in 2023, and further states may follow. Additionally, the Federal Trade Commission has
issued an Advanced Notice of Proposed Rulemaking in August of 2022 indicating its interest in developing broad regulations around information
security and commercial surveillance practices that may further impact our business. The effects of these new privacy laws and regulations
are potentially significant and may require FF to modify its data collection or processing practices and policies and to incur substantial
costs and expenses in an effort to comply and increase our potential exposure to regulatory enforcement and/or litigation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Internationally,
many jurisdictions have established their own data security and privacy legal framework with which FF or its clients may need to comply,
including, but not limited to, the E.U. The E.U.&rsquo;s data protection landscape is currently unstable, resulting in possible significant
operational costs for internal compliance and risk to FF&rsquo;s business. In China, the Personal Information Protection Law was passed
on August 20, 2021 and took effect on November 1, 2021, imposing restrictions on entities that collect and process personal data and sensitive
information about subjects in China. China also has a cybersecurity regulatory regime that may also add to our regulatory compliance risks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Failure
by FF, whether actual or perceived, to comply with federal, state or international privacy, data protection or security laws or regulations
could result in regulatory or litigation-related actions against FF, legal liability, fines, damages and other costs, and could adversely
affect its business, financial condition, results of operations and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF is subject to
cybersecurity risks relating to its various systems and software, or that of any third party that FF relies upon, and any failure, cyber
event or breach of security could prevent FF from effectively operating its business, harm its reputation or subject FF to significant
liability.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
business requires it to use and store confidential information, including information relating to its suppliers and other third parties,
and FF&rsquo;s customers&rsquo; personal information and preferences.&nbsp;FF and the business partners storing its data are routinely
subject to cybersecurity threats and attacks. Information security risks have increased in recent years in part because of the proliferation
of new technologies and the increased sophistication and activities of organized crime, hackers, terrorists, state-sponsored actors, and
other external parties. Moreover, cybersecurity laws are increasing in complexity and creating expanded areas for potential legal liability
in the wake of data breaches or technological vulnerabilities. FF&rsquo;s vehicles contain complex IT systems and software to support
interactive and other functions. FF maintains policies, procedures and technological safeguards and has implemented policy, procedural,
technical, physical and administrative controls intended to prevent unauthorized access to its IT networks and vehicles&rsquo; systems.
However, FF regularly defends against and responds to information security incidents, vulnerabilities and other security events. Unauthorized
persons may gain unauthorized access to modify, alter, insert malicious code and use such networks and systems or gain access to confidential
information of our suppliers, other third parties or customers, or our software or other technologies may have vulnerabilities that lead
to operational interruptions, data losses, or other harms. In the event FF&rsquo;s or FF business partners&rsquo; data system protection,
disaster recovery, business continuity or secure software and development lifecycle efforts are unsuccessful and such systems or the data
systems of vehicles are compromised, FF could suffer substantial harm. The conflict between Russia and Ukraine may increase the risk of
cyberattacks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
cannot entirely eliminate the risk of improper or unauthorized access to or disclosure of data or personal information, technological
vulnerabilities or other security events that impact the integrity or availability of FF&rsquo;s data systems and operations, or the related
costs FF may incur to mitigate the consequences from such events. Additionally, FF cannot guarantee that its insurance coverage would
be sufficient to cover all losses. Moreover, FF has limited control over and limited ability to monitor FF&rsquo;s third-party business
partners that collect, store, and process information, including personally identifiable information, on FF&rsquo;s behalf. They and their
systems could be the subject of cyberattacks, just as FF could, and they may or may not put into practice the policies and safeguards
they should in order to comply with applicable laws, regulations, and their contractual obligations to FF. A vulnerability in a third-party
business partner&rsquo;s software or systems, a failure of FF&rsquo;s third-party business partner&rsquo;s safeguards, policies or procedures,
or a breach of a third-party business provider&rsquo;s software or systems could result in the compromise of the confidentiality, integrity
or availability of FF&rsquo;s systems or vehicles, or the data stored by FF&rsquo;s business partners.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent that FF&rsquo;s vehicles are commercialized, there can be no assurance that these vulnerabilities related to FF&rsquo;s systems
and software will not be exploited in the future before they can be identified, or that FF&rsquo;s remediation efforts will be successful.
A major breach of FF&rsquo;s network security and systems could have negative consequences for its business, prospects, financial condition
and results of operation including possible fines, penalties and damages, reduced customer demand for FF&rsquo;s vehicles and harm to
its reputation and brand. Any cyberattacks, unauthorized access, disruption, damage or control of FF&rsquo;s IT networks and systems or
any loss or leakage of data or information stored in its systems could result in disruption of FF&rsquo;s operations and legal claims
or proceedings. In addition, regardless of their veracity, reports of cyberattacks to our networks, systems or data, as well as other
factors that may result in the perception that FF&rsquo;s networks, systems or data are vulnerable to &ldquo;hacking,&rdquo; could further
negatively affect FF&rsquo;s brand and harm its business, prospects, financial condition and results of operation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may not be able
to obtain regulatory approval for its vehicles.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Motor
vehicles are subject to substantial regulation under international, federal, state and local laws. Vehicles produced by FF will be required
to comply with the applicable safety, product and other standards and regulations in FF&rsquo;s targeted markets. For example, FF&rsquo;s
vehicles in the U.S. are subject to numerous regulatory requirements established by the NHTSA, including all applicable Federal Motor
Vehicle Safety Standards (&ldquo;FMVSS&rdquo;). FF&rsquo;s vehicles must also obtain emissions certification from either the EPA or CARB.
Rigorous testing and the use of approved materials and equipment are among the requirements for achieving federal certification. In addition,
FF&rsquo;s vehicles sold in China must pass various tests and undergo a certification process and be affixed with the China Compulsory
Certification (&ldquo;CCC&rdquo;), before delivery from the factory and sale, and such certification is also subject to periodic renewal.
FF may fail to obtain or renew the required certification or regulatory approval for its vehicles, which may prevent FF from delivering,
selling and/or importing/exporting its vehicles, and therefore materially and adversely affect its business, results of operations, financial
condition and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF and its suppliers
and manufacturing partners may be subject to increased environmental and safety or other regulations and disclosure rules resulting in
higher costs, cash expenditures, and/or sales restrictions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
a manufacturing company, including with respect to the current FF ieFactory California facility, its planned future facility with a third-party
manufacturer in South Korea and other potential contract manufacturing options, and its planned joint venture in China, FF and its suppliers
and manufacturing partners are or will be subject to complex environmental, manufacturing, health and safety laws and regulations at numerous
jurisdictional levels in the U.S., South Korea and other locations where they may expand operations, including laws relating to the use,
handling, storage, recycling, disposal and human exposure to hazardous materials and relating to the construction, expansion and maintenance
of their facilities. Evolving disclosure rules on environmental matters may also entail additional compliance and reporting costs, including,
for instance, the new climate change reporting rules recently adopted by the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
costs of compliance, including remediating contamination if any is found on FF or its manufacturing partner&rsquo;s properties, and any
changes to their operations mandated by new or amended laws, may be significant. FF and/or its suppliers and manufacturing partners may
be required to incur additional costs to comply with any changes to such regulations, and any failures to comply could result in significant
expenses, delays or fines. FF and its suppliers and manufacturing partners will be subject to laws, regulations and standards applicable
to the supply, manufacture, import, sale and service of automobiles in different jurisdictions and relating to vehicle safety, fuel economy
and emissions, among other things, in different jurisdictions which often may be materially different from each other. As a result, FF
and/or its suppliers and manufacturing partners may need to make additional investments in the applicable vehicles and systems to ensure
regulatory compliance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Additionally,
there is a variety of international, federal and state regulations that may apply to autonomous vehicles, which include many existing
vehicle standards that were not originally intended to apply to vehicles that may not have a driver. For example, there are currently
no federal U.S. regulations pertaining to the safety of autonomous vehicles; however, NHTSA has established recommended guidelines. Certain
states have legal restrictions on autonomous vehicles, and many other states are considering them. Such regulations continue to rapidly
change, which increases the likelihood of a patchwork of complex or conflicting regulations. This could result in higher costs and cash
expenditures, or may delay products or restrict self-driving features and availability, any of which could adversely affect our business,
prospects, financial condition and results of operation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may be subject
to anti-corruption, anti-bribery, anti-money laundering, economic sanctions and other similar laws and regulations, and non-compliance
with such laws and regulations could subject FF to civil, criminal and administrative penalties, remedial measures and legal expenses,
all of which could adversely affect FF&rsquo;s business, prospects, results of operations, financial condition and reputation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
is or will be subject to laws with respect to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and
other similar laws and regulations in various jurisdictions in which FF conducts, or in the future may conduct, activities, including
the U.S. Foreign Corrupt Practices Act (&ldquo;FCPA&rdquo;) and other anti-corruption laws and regulations. The FCPA prohibits FF and
its officers, directors, employees and business partners acting on its behalf, including agents, from offering, promising, authorizing
or providing anything of value to a &ldquo;foreign official&rdquo; for the purposes of influencing official decisions or obtaining or
retaining business or otherwise obtaining favorable treatment. The FCPA also requires companies to make and keep books, records and accounts
that accurately reflect transactions and dispositions of assets and to maintain a system of adequate internal accounting controls. A violation
of these laws or regulations could adversely affect FF&rsquo;s business, prospects, results of operations, financial condition and reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
policies and procedures designed to ensure compliance with these regulations may not be sufficient, and its directors, officers, employees,
representatives, consultants, agents, and business partners could engage in improper conduct for which FF may be held responsible. Non-compliance
with anti-corruption, anti-bribery, anti-money laundering or financial and economic sanctions laws could subject FF to adverse media coverage,
investigations, and severe administrative, civil and criminal sanctions, collateral consequences, remedial measures and legal expenses,
all of which could materially and adversely affect FF&rsquo;s business, prospects, results of operations, financial condition and reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Increases in costs,
disruption of supply or shortage of materials used to manufacture FF&rsquo;s vehicles, in particular for lithium-ion cells or electronic
components, could harm its business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
incurs significant costs related to procuring components and raw materials required to manufacture its vehicles. FF may experience cost
increases, supply disruption and/or shortages relating to components and raw materials, which could materially and adversely impact its
business, prospects, financial condition and operating results. FF uses various components and raw materials in its business, such as
steel, aluminum, and lithium battery cells. The prices for these materials fluctuate, and their available supply may be unstable, depending
on market conditions and global demand for these materials, including as a result of increased production of electric vehicles by FF&rsquo;s
competitors, as well as unforeseeable events such as the COVID-19 pandemic.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">For
instance, FF is exposed to multiple risks relating to lithium battery cells or electronic components, including but not limited to: (i)&nbsp;an
increase in the cost, or decrease in the available supply, of materials used in the battery cells, such as lithium, nickel, cobalt and
manganese; (ii)&nbsp;disruption in the supply of battery cells or electronic components due to quality issues or recalls by battery cell
or electronic component manufacturers; and (iii)&nbsp;the inability or unwillingness of FF&rsquo;s current battery cell or electronic
component manufacturers to build or operate battery cell or electronic components manufacturing plants to supply the numbers of lithium
cells or electronic components required to support the growth of the electric vehicle industry as demand for such battery cells or electronic
components increases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
business is dependent on the continued supply of battery cells for the battery packs used in its vehicles and other electronic components.
While FF believes several sources of the battery cells are available for such battery packs, it has to date fully qualified only one supplier
for the battery cells used in such battery packs and has very limited flexibility in changing battery cell suppliers. Any disruption in
the supply of battery cells or electronic components from such suppliers could disrupt production of FF&rsquo;s vehicles until such time
as a different supplier is fully qualified. There can be no assurance that FF would be able to successfully retain alternative suppliers
on a timely basis, on acceptable terms or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Furthermore,
tariffs or shortages in petroleum and other economic conditions may result in significant increases in freight charges and material costs.
In addition, a growth in popularity of electric vehicles without a significant expansion in battery cell production capacity could result
in shortages which would result in increased materials costs to FF thereby negatively impacting its business, prospects, financial condition
and results of operations. Substantial increases in the prices for FF&rsquo;s raw materials or components would increase its operating
costs, and could reduce margins if FF cannot recoup the increased costs through increased vehicle prices. Any attempts to increase product
prices in response to increased material costs could result in a decrease in sales and therefore materially and adversely affect FF&rsquo;s
brand, business, prospects, financial condition and operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may be subject
to risks associated with autonomous driving technology.</I></B></P>

<P STYLE="text-indent: 0.25in; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
FF 91 series is designed with autonomous driving functionalities and FF plans to continue its R&amp;D efforts in autonomous driving technology.
However, such functionality is relatively new and poses risks, such as from defective software performance or unauthorized access or security
attacks by other persons. The safety of such technologies also depends in part on user interaction, and users may not be accustomed to
using such technologies. Such failures could lead to accidents, injury and death. For example, there have already been fatal accidents
caused by autonomous driving vehicles developed by other leading market players. Any accidents involving self-driving vehicles&nbsp;&mdash;
even if involving those of FF&rsquo;s competitors&nbsp;&mdash; may result in lawsuits, liability and negative publicity and increase calls
for more restrictive laws and regulations governing self-driving vehicles or to keep in place laws and regulations in locations that do
not permit drivers to employ the self-driving functionality. Any of the foregoing could materially and adversely affect FF&rsquo;s business,
results of operations, financial condition, reputation and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Autonomous
driving technology is also subject to considerable regulatory uncertainty as the law evolves to catch up with the rapidly evolving nature
of the technology itself, all of which are beyond FF&rsquo;s control. Also see &ldquo;<I>FF and its manufacturing partners may be subject
to increased environmental and safety or other regulations and disclosure rules resulting in higher costs, cash expenditures, and/or sales
restrictions</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Developments in
new energy technology or improvements in the fuel economy of internal combustion engines or significant reduction in gas prices may materially
and adversely affect FF&rsquo;s business, prospects, financial condition and results of operation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Significant
developments in alternative technologies, such as advanced diesel, ethanol, or compressed natural gas or improvements in the fuel economy
of the internal combustion engine or significant reduction in gas prices may materially and adversely affect FF&rsquo;s business, prospects,
financial condition and results of operation. Other fuels or sources of energy, such as hydrogen fuel cells, may emerge as customers&rsquo;
preferred alternative to battery electric vehicles. FF is currently a pure battery electric vehicle company. Any failure by FF to develop
new or enhanced technologies or processes, or to react to changes in existing technologies or consumer preferences, could result in the
loss of competitiveness of FF&rsquo;s vehicles, decreased revenue and a loss of market share to competitors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF&rsquo;s vehicles
will make use of lithium-ion battery cells, which have been observed to catch fire or vent smoke and flame.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF&rsquo;s
vehicles will make use of lithium-ion battery cells, which have been reported that on rare occasions, can rapidly release the energy they
store by venting smoke and flames in a manner that can ignite nearby materials as well as other lithium-ion cells. While the FF battery
pack has been designed with the management system and thermal event alarming system which should actively and continuously monitor each
cell voltage and also the battery pack temperature and pressure condition to prevent such incidents, a field or testing failure of our
vehicles or battery packs could occur, which could subject FF to product liability claims, product recalls, or redesign efforts, and lead
to negative publicity. Moreover, any failure of a competitor&rsquo;s electric vehicle or energy storage product may cause indirect adverse
publicity for FF and FF&rsquo;s products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, FF will need to store a significant number of lithium-ion cells at its facilities. Any mishandling of battery packs may cause
disruption to business operations and cause damage and injuries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may not be able
to guarantee customers access to efficient, economical and comprehensive charging solutions.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
has not built any commercial charging infrastructure, and FF&rsquo;s customers will have to rely on private and publicly accessible charging
infrastructure, which is generally considered to be insufficient, especially in China. FF may not have competitive advantages in terms
of proprietary charging infrastructure or holistic charging solutions. Some competitors may provide charging services via self-owned charging
infrastructure, battery swapping and charging vehicles, which FF may not be able to deliver.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
charging services FF may provide could fail to meet the expectations and demands of FF&rsquo;s customers, who may lose confidence in FF
and its vehicles. This may also deter potential customers from purchasing FF&rsquo;s vehicles. In addition, even if FF has the ability
and plan to build its own charging infrastructure, it may not be cost-effective and FF may face difficulties in finding proper locations
and obtaining relevant government permits and approvals. To the extent FF is unable to meet its customers&rsquo; expectations or demand,
or faces difficulties in developing efficient, economical and comprehensive charging solutions, FF&rsquo;s reputation, business, financial
condition and results of operations may be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF will face risks
associated with international operations, including possible unfavorable regulatory, political, currency, tax and labor conditions, which
could harm its business, prospects, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
has a global footprint with domestic and international operations and subsidiaries. Accordingly, FF&nbsp;is subject to a variety of legal,
political and regulatory requirements and social, environmental and economic conditions over which FF has little control. For example,
FF may be impacted by trade policies, environmental conditions, political uncertainty and economic cycles involving the U.S. and China,
which are inherently unpredictable. FF is subject to a number of risks particularly associated with international business activities
that may increase FF&rsquo;s costs, impact its ability to sell vehicles and require significant management attention. These risks include
conforming FF&rsquo;s vehicles to various international regulatory and safety requirements as well as charging and other electric infrastructures,
organizing local operating entities, difficulty in establishing, staffing and managing foreign operations, challenges in attracting customers,
hedging against foreign exchange risk, compliance with foreign labor laws and restrictions, and foreign government taxes, regulations
and permit requirements, FF&rsquo;s ability to enforce its contractual rights, trade restrictions, customs regulations, tariffs and price
or exchange controls, and preferences of foreign nations for domestically manufactured products. If FF does not sufficiently address any
of these challenges, its business, prospects, financial condition and results of operations may be materially and adversely affected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF might not obtain
and maintain sufficient insurance coverage, which could expose FF to significant costs and business disruption.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">To
the extent FF commercializes its vehicles, FF may only obtain and maintain a limited liability insurance coverage for its products and
business operations. A successful liability claim against FF due to injuries suffered by the users of its vehicles or services could materially
and adversely affect FF&rsquo;s business, prospects, financial condition, results of operations and reputation. In addition, FF does not
have any business disruption insurance. Any&nbsp;business disruption event could result in substantial cost and diversion of resources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Government financial
support, incentives and policies for electric vehicles are subject to change. Discontinuation of any of the government subsidies or imposition
of any additional taxes or surcharges could adversely affect FF&rsquo;s business, prospects, financial condition and results of operations.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Government
financial support and subsidies are critical to electric vehicle sales and changing consumer behaviors. Any reduction, discontinuation,
elimination or discriminatory application of government financial support, subsidies and economic incentives because of policy changes,
fiscal tightening, or the perceived success of electric vehicles or other reasons may result in the diminished competitiveness of the
electric vehicle industry generally or FF&rsquo;s electric vehicles in particular. Competitors who have already rolled out their electric
vehicles before the phase-out or discontinuation of these incentives may be able to expand their customer base more effectively, which
could place FF at a competitive disadvantage. While certain tax credits and other incentives for alternative energy production, alternative
fuel and electric vehicles have been available in the past, there is no guarantee that these programs will be available in the future.
If current tax incentives or saleable electric vehicle emissions credits are not available in the future, or if additional taxes or surcharges
are imposed, FF&rsquo;s business, prospects, financial condition and results of operations could be harmed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF may engage in
direct-to-consumer leasing or financing arrangements in the future which will expose FF to credit, compliance and residual value risks,
the failure of which to manage may materially harm FF&rsquo;s business, prospects, financial condition and results of operation.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
expects the availability of financing or leasing programs to be important for its potential customers and may offer financing or leasing
arrangements for its vehicles or collaborate with third parties to provide such arrangements in the future. However, FF may not be able
to obtain adequate funding for its future financing or leasing programs or offer terms acceptable to potential customers. If FF is unable
to provide compelling financing or leasing arrangements for its vehicles, it may be unable to grow the vehicle orders and deliveries,
which could materially and adversely harm FF&rsquo;s business, prospects, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Additionally,
if FF does not successfully monitor and comply with applicable national, state, and/or local consumer protection laws and regulations
governing these transactions, FF may become subject to enforcement actions or penalties, either of which may harm its business and reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Moreover,
offering leasing or financing arrangements will expose FF to risks commonly associated with the extension of credit. Credit risk is the
potential loss that may arise from any failure in the ability or willingness of the customer to fulfill its contractual obligations when
they fall due. In the event of a widespread economic downturn or other catastrophic event, FF&rsquo;s customers may be unable or unwilling
to satisfy their payment obligations on a timely basis or at all. Moreover, competitive pressure and challenging markets may increase
credit risk through loans and leases to financially weak customers and extended payment terms. If a significant number of FF&rsquo;s customers
default, FF may incur credit losses and/or have to recognize impairment charges with respect to the underlying assets, which may be substantial.
Any such credit losses and/or impairment charges could adversely affect FF&rsquo;s business, prospects, operating results or financial
condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Further,
in lease arrangements, the profitability of any vehicles returned to FF at the end of their leases depends on FF&rsquo;s ability to accurately
project such vehicles&rsquo; residual values at the outset of the leases, and such values may fluctuate prior to the end of their terms
depending on various factors such as supply and demand of FF&rsquo;s used vehicles, economic cycles, and the pricing of new vehicles.
FF may incur substantial losses if its vehicles&rsquo; fair market value deteriorates faster than projected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Yueting Jia, FF&rsquo;s
founder and Chief Product and User Ecosystem Officer, is closely associated with FF&rsquo;s image and brand, and his public image may
color public and market perceptions of FF. Negative information about Mr. Jia may adversely impact FF. Disassociating from Mr. Jia could
also adversely impact FF.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Because
of his position as the founder of FF and his continuing role with FF as Chief Product and User Ecosystem Officer, as Founder Advisor to
the Board (effective as of October 4, 2022), and, as of February 26, 2023, a Section 16 officer and an &ldquo;executive officer&rdquo;
of FF under Rule 3b-7 of the Exchange Act, Mr. Jia is closely associated with the image and brand of FF. As a result, his activities,
media coverage about his activities and those of his affiliates and public and market perception of him and his role within FF all contribute
to public and market perception of FF, which in turn impacts, among other things, FF&rsquo;s ability to conduct business, FF&rsquo;s relationships
with its management and employees, FF&rsquo;s ability to raise financing and FF&rsquo;s relationships with government and regulatory officials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.75in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
the past, Mr. Jia&rsquo;s activities have resulted in him being subject to discipline by FF. He has also been the subject of regulatory
and legal scrutiny for his conduct at FF and in connection with his other business ventures. The following events and activities, among
others, and any future similar events and activities could generate negative perceptions about Mr. Jia and, by extension, FF:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Mr. Jia was disciplined as part of the Special Committee investigation. See &ldquo;Note 10, Commitments
and Contingencies, in the Notes to the Consolidated Financial Statements for more information regarding the findings and remedial actions
relating to the Special Committee investigation.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Mr. Jia personally declared Chapter 11 bankruptcy in 2019; the U.S. bankruptcy court approved a restructuring
plan in this proceeding in 2020.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The Shenzhen Stock Exchange (&ldquo;SSE&rdquo;) determined in 2019 that Mr. Jia was unsuitable for a position
as director, supervisor or executive officer of public listed companies in China. This action came as a result of the violation by Leshi
Information Technology Co., Ltd. (&ldquo;LeTV&rdquo;), an SSE-listed public company founded and controlled by Mr. Jia, of several listing
rules, including those related to related party transactions, discrepancies in LeTV&rsquo;s forecast and financials, and the use of proceeds
from a public offering.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">The China Securities Regulatory Commission notified Mr. Jia in 2021 of its decision to impose fines and
a permanent ban from entry into the securities market as a result of misrepresentations in LeTV&rsquo;s disclosure and financial statements,
fraud in connection with a private placement, and other violations of securities laws and listing requirements.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Although
FF is subject to risks from its ongoing association with Mr. Jia, if Mr. Jia ceased to be associated with FF, this also could adversely
impact FF&rsquo;s business, operations, brand, management and employee relations, and customer relationships, as well as FF&rsquo;s ability
to develop business in China. Customers, employees and investors could conclude that because of Mr. Jia&rsquo;s long relationship with
and involvement in FF&rsquo;s business, and the substantial contributions he has made to FF&rsquo;s strategy, products and competitive
positioning, a loss of Mr. Jia&rsquo;s involvement could significantly harm FF&rsquo;s business and prospects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Yueting Jia is
subject to restrictions in China that may continue if not all creditors participating in his personal bankruptcy restructuring plan request
his removal from such restrictions. These restrictions may adversely impact FF&rsquo;s China strategy.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
a condition to receiving distributions from the trust established as part of Mr. Jia&rsquo;s personal bankruptcy restructuring plan, Mr.
Jia&rsquo;s creditors are required to request his removal from a Chinese official list of dishonest judgment debtors and the lifting of
any consumption or travel restrictions that are currently imposed on him. This process has not been completed and Mr. Jia remains subject
to restrictions that prevent him from working for FF in China. Continuance of these restrictions would adversely impact FF because of
our reliance on him to develop our business in China, which is a crucial part of our growth strategy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Yueting Jia and
FF Global, over which Mr. Jia exercises significant influence, have control over FF&rsquo;s management, business and operations, and may
use this control in ways that are not aligned with FF&rsquo;s business or financial objectives or strategies or that are otherwise inconsistent
with the FF&rsquo;s interests.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Mr.
Yueting Jia founded FF in 2014, and was its Chief Executive Officer from 2017 until 2019. He chose and led the team creating the FF 91
series, and is our current Chief Product &amp; User Ecosystem Officer, Mr. Jia continues to be an integral part of the innovation and
development of our products. In addition, under the Heads of Agreement, FF agreed to reinstitute the FF Transformation Committee, a management
committee without decision-making authority (of which Mr. Jia is a member and Mr. Jerry Wang is initially an observer as a representative
of FF Global) that discusses business matters being undertaken by FF. Effective as of October 4, 2022, Mr. Jia was also appointed as Founder
Advisor, in which capacity he acts as an advisor to the Board (with no change to his current compensation). On February 26, 2023, after
an assessment by the Board of FF&rsquo;s management structure, the Board approved Mr. Jia (alongside FF&rsquo;s then Global CEO, Mr. Xuefeng
Chen) reporting directly to the Board, as well as FF&rsquo;s product, mobility ecosystem, I.A.I., and advanced R&amp;D technology departments
reporting directly to Mr. Jia. The Board also approved FF&rsquo;s user ecosystem, capital markets, human resources and administration,
corporate strategy and China departments reporting to both Mr. Jia and Mr. Xuefeng Chen, subject to processes and controls to be determined
by the Board after consultation with FF&rsquo;s management. FF&rsquo;s remaining departments continue to report to Mr. Xuefeng Chen. Based
on the changes to his responsibilities within FF, the Board determined that Mr. Jia is a Section 16 officer and an &ldquo;executive officer&rdquo;
of FF under Rule 3b-7 under the Exchange Act. As a result, Mr. Jia&rsquo;s responsibilities at FF have been expanded and his ability to
further influence FF, its management, business and operations has been increased.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
Global is controlled by a board of five voting managers that includes Mr. Jia and certain business associates and a family member, which
at times have included directors and senior executives of FF. Despite the participation of some members of our executive management in
the management of FF Global, FF Global is not under the control of our Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
Global, in turn, has control over FF&rsquo;s management, business and operations by several means, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">FF Global has substantial influence over the composition of our Board (in addition to FF Global&rsquo;s
director nomination rights under the Shareholder Agreement described below). Additionally, pursuant to the Amended Shareholder Agreement,
FF Top informed the Company that it may request the Company to submit a proposal to the Company stockholders for approval to amend the
Amended and Restated Charter to provide that (i) the voting power of the Class B Common Stock, of which FF Global owns all outstanding
shares, will be 10 votes per share and (ii) the voting power of the Class B Common Stock will increase from 10 votes per share to 20 votes
per share following the Company achieving an equity market capitalization of $3.0&#8239;billion.</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Control of the Partnership Program described in certain Company&rsquo;s annual report on Form 10-K (as
amended, the &ldquo;2023 Form 10-K&rdquo;) under &ldquo;Business &ndash; Partnership Program.&rdquo;&nbsp;Acting through FF Global, in
July 2019 certain current and former directors and executives of the Company established an arrangement which they refer to as the &ldquo;Partnership
Program.&rdquo; The Partnership Program provides financial benefits to certain Company directors, management and employees. The Partnership
Program is administered by FF Global and is not under the Company&rsquo;s supervision, and as a consequence the Company cannot be sure
that it has all information about the Partnership Program that would be necessary to evaluate or mitigate its impact on FF&rsquo;s ability
to set and ensure the execution of FF&rsquo;s business objectives and strategies.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><I>the exercise of rights to appoint and remove directors.&nbsp;</I>As previously
disclosed, beginning in June 2022, FF was party to a dispute with FF Global over various terms of the Shareholder Agreement (as then in
effect), including relating to FF Global&rsquo;s right to remove its designees from the Board. On September 23, 2022, FF entered into
the Heads of Agreement, which provided for a governance settlement with FF Top that gave FF Global significant influence over the nomination
and election of directors to the Board.</FONT>&nbsp;<FONT STYLE="font-size: 10pt">On January 13, 2023, FF entered into the Amended Shareholder
Agreement, which in part amended the Heads of Agreement.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Under
the Heads of Agreement, as amended by the Amended Shareholder Agreement, FF Global (through its subsidiary FF Top) had the right to select
four directors (at least two of whom must be independent directors) out of a total of seven directors to be included on the Board&rsquo;s
slate for the Company&rsquo;s 2023 annual meeting of stockholders. The four directors selected by FF Global are Mr. Chad Chen, Ms. Li
Han, Mr. Chui Tin Mok and Mr. Jie Sheng.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Amended Shareholder Agreement, FF Top currently has the right to nominate for election to the Board four designees until the first
date on which FF Top has ceased to beneficially own at least 88,890 shares of Common Stock for at least 365 consecutive days, with such
amount subject to adjustment in connection with any stock split, reverse stock split or other similar corporate action after the date
of the Amended Shareholder Agreement. Following the termination of FF Top&rsquo;s right to nominate four designees, FF Top will continue
to have the right to nominate a number of designees not less than the number equal to the total number of directors on the Board, multiplied
by the aggregate voting power of the shares of Common Stock and other securities of FF generally entitled to vote in the election of
directors of FF beneficially owned by FF Top and its affiliates, divided by the total voting power of the then-outstanding shares of
Common Stock issued as of the record date for any meeting of stockholders of FF at which directors are to be elected, rounding up to
the next whole director. The Amended Shareholder Agreement also requires FF to take all Necessary Action (as defined in the Amended Shareholder
Agreement) to cause to be appointed to any committee of the Board a number of FF Top designees that corresponds to the proportion that
the number of directors FF Top has the right to designate to the Board bears to the total number of directors on the Board, to the extent
such designees of FF Top are permitted to serve on such committees under the applicable rules and regulations of the SEC and applicable
listing rules. The designees of FF Top are required to include two independent directors for so long as FF Top is entitled to nominate
four designees, and FF is at all times required to cause the Board to include a sufficient number of independent directors who are not
designees of FF Top to comply with applicable listing standards, unless and until FF becomes a &ldquo;controlled company&rdquo; under
relevant listing exchange rules. FF Top has the /right to fill any vacancies created on the Board at any time by the death, disability,
retirement, removal, failure of being elected or resignation of any designee of FF Top. Further, FF Top has the right at any time, and
from time to time, to remove any designee of FF Top, and FF Top has the exclusive right to nominate a replacement nominee to fill any
vacancy so created by such removal or resignation of such designee of FF Top. FF will use its reasonable best efforts to take or cause
to be taken, to the fullest extent permitted by law, all necessary action to fill such vacancies or effect such removals in accordance
with the Amended Shareholder Agreement. The appointment or nomination for election of designees of FF Top (other than FF Top&rsquo;s
designees for the Company&rsquo;s 2023 annual meeting of stockholders, the appointment of whom was governed by the Heads of Agreement,
as amended by the Amended Shareholder Agreement) will be subject to the reasonable verification and/or approval by the Nominating and
Corporate Governance Committee of the Board based on the criteria set forth in the Amended Shareholder Agreement. If any designee of
FF Top fails to be elected at any meeting of FF&rsquo;s stockholders, then, upon FF Top&rsquo;s request in writing, FF will promptly
expand the size of the Board by a number of seats equal to the number of non-elected designees of FF Top, and FF Top will have the exclusive
right to fill the vacancy or vacancies on the Board created by such expansion (provided the individual or individuals who will fill such
vacancy or vacancies will not be the same designees of FF Top who failed to get elected, without prejudice to FF Top&rsquo;s right to
re-designate the non-elected designees as designees of FF Top in any other circumstance), and such new designees of FF Top will be appointed
to the Board by the Board promptly following their having been approved or deemed approved in accordance with the relevant criteria and
procedures set forth in the Amended Shareholder Agreement. Immediately prior to (and effective as of) the first meeting of stockholders
following such expansion of the Board, the Board will cause the size of the Board to be decreased back to seven.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
a result of the foregoing, FF Global has significant influence over the composition of the Board and, as a result, Mr. Jia and FF Global
have strengthened their already significant influence over FF.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Given
that Mr. Jia was disciplined by FF in connection with the Special Committee investigation, and in light of the regulatory sanctions he
has faced in China (as described above under &ldquo;<I>Yueting Jia, FF&rsquo;s founder and Chief Product and User Ecosystem Officer,
is closely associated with FF&rsquo;s image and brand, and his public image may color public and market perceptions of FF. Negative information
about Mr. Jia may adversely impact FF. Disassociating from Mr. Jia could also adversely impact FF</I>&rdquo;<I>)</I>, the fact that the
Board has determined that Mr. Jia is a Section 16 officer and as an &ldquo;executive officer&rdquo; of FF under Rule 3b-7 of the Exchange
Act, which both could imply that Mr. Jia has policy-making authority in FF, could adversely affect the outcome of the pending SEC and
DOJ investigations of FF in connection with the matters that were the subject of the Special Committee investigation. Moreover, as a
result of Mr. Jia&rsquo;s regulatory sanctions in China, the Board&rsquo;s determination that Mr. Jia is both a Section 16 officer and
an executive officer of FF could result in the delisting of FF&rsquo;s securities by Nasdaq, which would adversely impact our ongoing
financing efforts, business and financial position and materially impair the market for and market price of our Class A Common Stock
and warrants. If our securities are delisted by Nasdaq, we are unlikely to be able to raise sufficient additional funds in the near term,
and as a result may be required to further delay our production and delivery plans for the FF 91, reduce headcount, liquidate our assets,
file for bankruptcy, reorganize, merge with another entity, and/or cease operations.&nbsp;In determining that Mr. Jia is a Section 16
officer and as an &ldquo;executive officer&rdquo; of FF under Rule 3b-7 of the Exchange Act, the Board considered the value of Mr. Jia
to FF&rsquo;s product and technology innovation, I.A.I., advanced technology, product and technology power and future development and
his significant contributions to FF&rsquo;s financings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Jia maintains that the litigation previously initiated by FF Global for purposes of changing the Board and management of FF, which has
since been dismissed without prejudice pursuant to the Heads of Agreement, was a collective decision made by FF Global and was not Mr.
Jia&rsquo;s decision. See Note 10,&nbsp;<I>Commitments and Contingencies &ndash; Legal Proceedings,&nbsp;</I>in the Notes to the Consolidated
Financial Statements<I>.&nbsp;</I>Our interests may not coincide with the interests of Mr. Jia or FF Global in all circumstances. For
example, our Board may prioritize business or financial objectives or strategies that Mr. Jia or FF Global disagree with or that Mr.
Jia or FF Global consider not to be in their interest. In such a case, Mr. Jia or FF Global could use their significant influence over
FF&rsquo;s stockholders and potential investors, FF&rsquo;s management, business and operations to advance the interests of Mr. Jia or
FF Global notwithstanding any adverse impact on FF&rsquo;s interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Disputes
with FF&rsquo;s stockholders are costly and distracting.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have in the past been, and may in the future be, party to various disputes with our stockholders. For example, beginning in June 2022
FF and FF Global were party to a dispute over various terms of the Shareholder Agreement (as then in effect), including relating to FF
Global&rsquo;s right to remove its designees from the Board. As part of this dispute, on June 22, 2022, Matthias Aydt, FF&rsquo;s current
Global CEO and director and then a member of the board of managers of FF Global, after a discussion with a member of FF Global, relayed
to Mr. Brian Krolicki, a former member of the Board, that FF Global would pay Mr. Krolicki up to $700,000, offset by the amount of any
severance payments made by FF, if Mr. Krolicki resigned from the Board. This offer was rejected by Mr. Krolicki.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
FF entered into governance settlements with FF Top on September 23, 2022 and on January 13, 2023, which included general mutual releases
of claims, there can be no assurance that disputes with FF Global or FF&rsquo;s other stockholders will not arise in the future. For
instance, shortly following the execution of the Heads of Agreement, FF Global began making additional demands of FF which were beyond
the scope of the terms contemplated by the Heads of Agreement and pertained to, among other things, FF&rsquo;s management reporting lines
and certain governance matters. On September 30, 2022, FF Global alleged that FF was in material breach of the spirit of the Heads of
Agreement. FF believes it has complied with the applicable terms of the Heads of Agreement, and disputes any characterization to the
contrary. Such dispute could result in litigation, may consume substantial amounts of Board and management time, make it difficult for
the Board to operate in a constructive and collegial manner and are likely to be costly to FF. In addition, the diversion of management
and Board attention caused by such disputes may risk the successful completion of FF&rsquo;s ongoing financing efforts. If we are unable
to raise sufficient additional funds in the near term, we may be required to further delay our production and delivery plans for the
FF 91 Futurist, reduce headcount, liquidate our assets, file for bankruptcy, reorganize, merge with another entity, and/or cease operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
is subject to legal proceedings, claims, and disputes arising both in and outside the ordinary course of business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
has been, continues to be, and may in the future be involved in legal proceedings and claims arising both in and outside the ordinary
course of FF&rsquo;s business. We could also be subject to claims and litigation by investors based on the decline of the price of our
Common Stock. For example, FF has been involved in litigation with contractors and suppliers over past due payments and FF&rsquo;s subsidiaries
in the People&rsquo;s Republic of China (the &ldquo;PRC Subsidiaries&rdquo;) are involved in multiple proceedings or disputes involving
lease contracts, third-party suppliers or vendors, or labor disputes. Additionally, FF has in the past been, and may in the future be,
party to various disputes with our stockholders, such as the dispute with FF Global, the California Federal Derivative Action, the Delaware
Federal Derivative Actions, the Consolidated Delaware Class Action, and a putative class action (each as defined in Note 10,&nbsp;<I>Commitments
and Contingencies</I>), in the Notes to the Consolidated Financial Statements. See Note 10,&nbsp;<I>Commitments and Contingencies</I>&rdquo;,
in the Notes to the Consolidated Financial Statements and &ldquo;Part I, Item 13 Legal Proceedings&rdquo; for more information regarding
the current legal proceedings FF is involved in.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Such
litigation and other legal proceedings or disputes are inherently uncertain, divert managements time and attention, and are costly. Any
adverse judgments or settlements in some of these legal disputes, or future proceedings or disputes, may result in adverse monetary damages,
penalties or injunctive relief against FF, which could negatively impact its financial position, cash flows or results of operations.
Additionally, if one or more of those legal matters were resolved against FF in a reporting period for amounts above management&rsquo;s
expectations, FF&rsquo;s business prospects, financial condition and operating results could be materially adversely affected. Further,
any claims or litigation, regardless of outcome or if fully indemnified or insured, could damage FF&rsquo;s reputation and make it more
difficult to compete effectively or to obtain adequate insurance in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
while FF maintains insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities
and is subject to various exclusions as well as retentions and caps on amounts recoverable. Even if FF believes a claim is covered by
insurance, insurers may dispute its entitlement to recovery for a variety of potential reasons, which may affect the timing and, if the
insurers prevail, the amount of FF&rsquo;s recovery.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Risks
Related to FF&rsquo;s Operations in China</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">FF
operates in China, and plans to have significant operations in the future in China (including Hong Kong) through the PRC Subsidiaries,
and faces various legal and operational risks associated with doing business in China, which could result in a material change in the
operations of the PRC Subsidiaries, cause the value of FF&rsquo;s securities to significantly decline or become worthless, and significantly
limit or completely hinder FF&rsquo;s ability to accept foreign investments, and FF&rsquo;s ability to offer or continue to offer our
shares of Class A Common Stock and warrants to investors. FF also faces similar risks related to its expansion plans in Hong Kong, which
is subject to political and economic influence from China. These risks include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Changes
in the political and economic policies of the PRC government may materially and adversely affect FF&rsquo;s business, financial condition
and results of operations and may result in FF&rsquo;s inability to sustain its growth and expansion strategies.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of FF&rsquo;s dual-market strategy, substantial aspects of its business and operations may be based in China in the future, which
will increase FF&rsquo;s sensitivity to the economic, operational and legal risks specific to China. For example, China&rsquo;s economy
differs from the economies of most developed countries in many aspects, including, but not limited to, the degree of government involvement,
control of capital investment, reinvestment control of foreign exchange, control of intellectual property, allocation of resources, growth
rate and development level. Although the PRC government has implemented measures since the late 1970s emphasizing the utilization of
market forces for economic reform, including the reduction of state ownership of productive assets, and the establishment of improved
corporate governance in business enterprises, which are generally viewed as a positive development for foreign business investment, a
substantial portion of productive assets in China is still owned by the PRC government. In addition, the PRC government continues to
play a significant role in regulating industry development by imposing industrial policies. The PRC government also exercises significant
control over the PRC economic growth through allocating resources, controlling payments of foreign currency-denominated obligations,
setting monetary policy, and providing preferential treatment to particular industries or companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
China&rsquo;s economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among
various sectors of the economy, and the rate of growth has been slowing down. Some of the governmental measures may benefit the overall
Chinese economy, but may have a negative effect on us. For example, our financial condition and results of operations may be adversely
affected by government control over capital investments or changes in tax regulations. Higher inflation could adversely affect our results
of operations and financial condition. Furthermore, certain operating costs and expenses, such as employee compensation and office operating
expenses, may increase as a result of higher inflation. In addition, the PRC government has implemented in the past certain measures
to control the pace of economic growth. These measures may cause decreased economic activity, which in turn could lead to a reduction
in demand for our products and services, and consequently have a material adverse effect on our businesses, financial condition and results
of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">It
is unclear whether and how FF&rsquo;s current or future business, prospects, financial condition or results of operations may be affected
by changes in China&rsquo;s economic, political and social conditions and in its laws, regulations and policies. In addition, many of
the economic reforms carried out by the Chinese government are unprecedented or experimental and are expected to be refined and improved
over time. The ultimate effect of such refining and improving process may on FF&rsquo;s operations and business development is uncertain.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Uncertainties
with respect to the Chinese legal system, regulations and enforcement policies could have a material adverse effect on FF.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
operations in China are governed by PRC laws and regulations. As the PRC legal system continues to rapidly evolve, the interpretations
of many laws, regulations and rules and enforcement of these laws, regulations and rules may involve uncertainties. In addition, the
PRC government authorities may continue to promulgate new laws and regulations related to, among other things, foreign investment and
manufacturing in China. We cannot assure you that our business operations would not be deemed to violate any existing or future PRC laws
or regulations, which in turn could have a material adverse effect on our business and our ability to operate our business in China.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">From
time to time, the PRC Subsidiaries may have to resort to administrative and court proceedings to enforce our legal rights. However, since
PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms,
it may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy. Furthermore,
the PRC legal system is based in part on government policies and internal rules (some of which are not published in a timely manner or
at all) that may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime
after the violation. Such uncertainties, including uncertainty over the scope and effect of our contractual, property (including intellectual
property) and procedural rights, and any failure to respond to changes in the regulatory environment in China could materially and adversely
affect our business, impede the PRC Subsidiaries&rsquo; operations and reduce the value of your investment in FF.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Recently,
the General Office of the State Council and another PRC authority jointly issued the &ldquo;Opinions on Severely Cracking Down on Illegal
Securities Activities According to Law&rdquo; (the &ldquo;Opinions&rdquo;), which was promulgated on July 6, 2021. The Opinions emphasized
the need to strengthen the administration over illegal securities activities, the need to strengthen the supervision over overseas listings
by PRC-based companies and the need to revise the special provisions of the State Council on overseas issuance and listing of shares
by those companies. Effective measures, such as promoting the construction of relevant regulatory systems will be taken to deal with
the risks and incidents of PRC-based companies, and cybersecurity, data security, privacy protection requirements and similar matters.
On February 17, 2023, the China Securities Regulatory Commission (the &ldquo;CSRC&rdquo;) promulgated the Trial Administrative Measures
of the Overseas Securities Offering and Listing by Domestic companies (the &ldquo;Overseas Listing Trial Measures&rdquo;) and relevant
five guidelines, which became effective on March 31, 2023. The Overseas Listing Trial Measures will comprehensively reform the existing
regulatory regime for overseas securities offering and listing of PRC domestic companies by adopting a filing-based regulatory regime.
See &ldquo;<I>The approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental authorities may
be required in connection with certain of our financing activities, and, if required, we cannot predict if we will be able to obtain
such approval or complete such filing or other administrative procedures</I>&rdquo; for more details.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the PRC government may strengthen oversight and control over offerings conducted overseas and/or foreign investment in issuers with substantial
operations in China. Such actions taken by the PRC government may intervene or influence the PRC Subsidiaries&rsquo; operations at any
time, which are beyond our control. Therefore, any such action may adversely affect our operations and significantly limit or hinder
our ability to raise additional capital and reduce the value of our securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Uncertainties
regarding the enforcement of laws and the fact that rules and regulations in China can change quickly with little advance notice, along
with the risk that the Chinese government may intervene or influence the PRC Subsidiaries&rsquo; operations at any time, or may exert
more control over offerings conducted overseas and/or foreign investment in issuers with substantial operations in China could result
in a material change in our operations or financial performance and/or could result in a material reduction in the value of our Class
A Common Stock and warrants or hinder our ability to raise necessary capital.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Fluctuations
in exchange rates could result in foreign currency exchange losses to FF and may reduce the value of, and amount in U.S. Dollars of dividends
payable on, its Common Stock in foreign currency terms.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
value of the CNY against the U.S. Dollar and other currencies may fluctuate and is affected by, among other things, changes in political
and economic conditions and the foreign exchange policy adopted by the PRC government. In August 2015, the People&rsquo;s Bank of China
(the &ldquo;PBOC&rdquo;), changed the way it calculates the mid-point price of the CNY against the U.S. Dollar, requiring the market-makers
who submit for reference rates to consider the previous day&rsquo;s closing spot rate, foreign-exchange demand and supply as well as
changes in major currency rates. In 2018, the value of CNY appreciated by approximately 5.5% against the U.S. Dollar; in 2019, the CNY
appreciated by approximately 1.9% against the U.S. Dollar; in 2020, the CNY appreciated 7.0% against the U.S. Dollar; in 2021, the CNY
appreciated 2.7% against the U.S. Dollar; in 2022, the CNY appreciated 8.5% against the U.S. Dollar; and in 2023, the CNY appreciated
2.6% against the U.S. Dollar. It is difficult to predict how market forces or PRC or U.S. government policy, including any interest rate
increases by the Federal Reserve, may impact the exchange rate between the CNY and the U.S. Dollar in the future. There remains significant
international pressure on the PRC government to adopt a more flexible currency policy, including from the U.S. government, which has
threatened to label China as a &ldquo;currency manipulator,&rdquo; which could result in greater fluctuation of the CNY against the U.S.
Dollar. However, the PRC government may still at its discretion restrict access to foreign currencies for capital account or current
account transactions in the future. Therefore, it is difficult to predict how market forces or government policies may impact the exchange
rate between the CNY and the U.S. Dollar or other currencies in the future. In addition, the PBOC regularly intervenes in the foreign
exchange market to limit fluctuations in CNY exchange rates and achieve policy goals. If the exchange rate between the CNY and U.S. Dollar
fluctuates in an unanticipated manner, our results of operations and financial condition, and the value of, and dividends payable on,
our shares in foreign currency terms may be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Changes
in the laws and regulations of China or noncompliance with applicable laws and regulations may have a significant impact on FF&rsquo;s
business, results of operations and financial condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
operations in China are subject to the laws and regulations of China, which continue to evolve. For example, on January 9, 2021, China&rsquo;s
Ministry of Commerce (&ldquo;MOFCOM&rdquo;) issued the Rules on Blocking Improper Extraterritorial Application of Foreign Legislation
and Other Measures (the &ldquo;Blocking Rules&rdquo;), which established a blocking regime in China to counter the impact of foreign
sanctions on Chinese persons. The Blocking Rules have become effective upon issuance, but have only established a framework of implementation,
and the rules&rsquo; effects will remain unclear until the Chinese government provides clarity on the specific types of extraterritorial
measures to which the rules will apply. At this time, we do not know the extent to which the Blocking Rules will impact the operations
of the PRC Subsidiaries. There is no assurance that the PRC Subsidiaries will be able to comply fully with applicable laws and regulations
should there be any amendment to the existing regulatory regime or implementation of any new laws and regulations. In addition, the interpretations
of many laws and regulations are not always uniform and enforcement of these laws and regulations involve uncertainties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
continuance of the PRC Subsidiaries&rsquo; operations depends upon compliance with, among other things, applicable Chinese environmental,
health, safety, labor, social security, pension and other laws and regulations. Failure to comply with such laws and regulations could
result in fines, penalties or lawsuits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
our business and operations in China entail the procurement of licenses and permits from the relevant authorities. Rapidly evolving laws
and regulations and uncertainties regarding interpretations and enforcements thereof could impede the PRC Subsidiaries&rsquo; ability
to obtain or maintain the required permits, licenses and certificates required to conduct our businesses in China. Difficulties or failure
in obtaining the required permits, licenses and certificates could result in the PRC Subsidiaries&rsquo; inability to continue our business
in China in a manner consistent with past practice. In such an event, our business, results of operations and financial condition may
be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
is a holding company and, in the future, may rely on dividends and other distributions on equity paid by the PRC Subsidiaries to fund
any cash and financing requirements that FF may have, and the restrictions on the PRC Subsidiaries&rsquo; ability to pay dividends or
make other payments to FF could restrict FF&rsquo;s ability to satisfy its liquidity requirements and have a material adverse effect
on FF&rsquo;s ability to conduct its business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
is a holding company and conducts all of its business through its operating subsidiaries. FF may need to rely on dividends and other
distributions paid by its operating subsidiaries, including the PRC Subsidiaries, to fund any cash and financing requirements FF may
have. Any limitation on the ability of the PRC Subsidiaries to make payments to FF, including but not limited to foreign currencies control,
could have a material and adverse effect on FF&rsquo;s business, prospects, financial condition and results of operation, including FF&rsquo;s
ability to conduct business, or limit FF&rsquo;s&nbsp;ability to grow. Current PRC regulations permit the PRC Subsidiaries to pay dividends
to FF only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition,
the PRC Subsidiaries are required to set aside at least 10% of their accumulated profits each year, if any, to fund certain reserve funds
until the total amount set aside reaches 50% of their registered capital. The PRC Subsidiaries may also allocate a portion of their after-tax
profits based on PRC accounting standards to employee welfare and bonus funds at their discretion. These reserves are not distributable
as cash dividends. Furthermore, if the PRC Subsidiaries incur debt on their own behalf, the instruments governing the debt may restrict
their ability to pay dividends or make other payments to FF. Any limitation on the ability of the PRC Subsidiaries to distribute dividends
or to make payments to FF may restrict its ability to satisfy its liquidity requirements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the PRC Enterprise Income Tax Law (the &ldquo;EIT Law&rdquo;), and its implementation rules provide that a withholding tax
rate of up to 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted
or reduced according to treaties or arrangements between the PRC central government and governments of other countries or regions where
the non-PRC-resident enterprises are incorporated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC government may continue to strengthen its capital controls, and more restrictions and substantial vetting process may be put forward
by SAFE for cross-border transactions falling under both the current account and the capital account. Any limitation on the ability of
the PRC Subsidiaries to pay dividends or make other kinds of payments to FF could materially and adversely limit FF&rsquo;s ability to
grow, make investments or acquisitions that could be beneficial to FF&rsquo;s business, pay dividends, or otherwise fund and conduct
FF&rsquo;s business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Under
the EIT Law, FF may be classified as a PRC &ldquo;resident enterprise&rdquo; for PRC enterprise income tax purposes. Such classification
would likely result in unfavorable tax consequences to FF and its non-PRC enterprise stockholders and have a material adverse effect
on FF&rsquo;s results of operations and the value of your investment.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the EIT Law, as well as its implementing rules, an enterprise established outside the PRC with &ldquo;de facto management bodies&rdquo;
within the PRC is considered a &ldquo;resident enterprise&rdquo; for PRC enterprise income tax purposes and is generally subject to a
uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a &ldquo;de facto management
body&rdquo; is defined as a body that has material and overall management and control over the manufacturing and business operations,
personnel and human resources, finances and properties of an enterprise. In addition, a circular, known as SAT Circular 82, issued in
April 2009 by the State Administration of Taxation of the PRC (the &ldquo;SAT&rdquo;), specifies that certain offshore incorporated enterprises
controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or
resident in the PRC: senior management personnel and departments that are responsible for daily production, operation and management;
financial and personnel decision making bodies; key properties, accounting books, company seal, and minutes of board meetings and stockholders&rsquo;
meetings; and half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the SAT issued a bulletin,
known as SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82 and
clarify the reporting and filing obligations of such &ldquo;Chinese-controlled offshore incorporated resident enterprises.&rdquo; SAT
Bulletin 45 provides procedures and administrative details for the determination of resident status and administration on post-determination
matters. Although both SAT Circular 82 and SAT Bulletin 45 only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise
groups, not those controlled by PRC individuals or foreign individuals, the determining criteria set forth in SAT Circular 82 and SAT
Bulletin 45 may reflect the SAT&rsquo;s general position on how the &ldquo;de facto management body&rdquo; test should be applied in
determining the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises, PRC enterprise
groups or by PRC or foreign individuals.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not believe that FF, as a holding company incorporated in Delaware, meets all of the conditions above, and thus we do not believe
that FF is a PRC resident enterprise. However, if the PRC tax authorities determine that FF is a PRC resident enterprise for PRC enterprise
income tax purposes, a number of unfavorable PRC tax consequences could follow. First, FF will be subject to the uniform 25% enterprise
income tax on our world-wide income, which could materially reduce our net income.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, FF will also be subject to PRC enterprise income tax reporting obligations. However, the tax resident status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term &ldquo;de
facto management body.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Finally,
since there remains uncertainties regarding the interpretation and implementation of the EIT Law and its implementation rules, it is
uncertain whether, if FF is regarded as a PRC resident enterprise, any dividends payable by us to our investors and gains on the sale
of our Common Stock would become subject to PRC withholding tax, at a rate of 10% in the case of non-PRC enterprises (subject to the
provisions of any applicable tax treaty). It is unclear whether our non-PRC enterprise stockholders would be able to claim the benefits
of any tax treaties between their country of tax residence and the PRC in the event that FF is treated as a PRC resident enterprise.
Any such tax may reduce the returns on your investment in the Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
and its stockholders face uncertainty with respect to indirect transfers of equity interests in China resident enterprises through transfer
of non-Chinese-holding companies. Enhanced scrutiny by the Chinese tax authorities may have a negative impact on potential acquisitions
and dispositions it may pursue in the future.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
February 3, 2015, the SAT issued the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident
Enterprises, known as Bulletin 7. Pursuant to this Bulletin 7, an &ldquo;indirect transfer&rdquo; of assets, including non-publicly traded
equity interests in a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer
of PRC taxable assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding
payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income
tax. According to Bulletin 7, &ldquo;PRC taxable assets&rdquo; include assets attributed to an establishment in China, immovable properties
located in China, and equity investments in PRC resident enterprises, in respect of which gains from their transfer by a direct holder,
being a non-PRC resident enterprise, would be subject to PRC enterprise income taxes. When determining whether there is a &ldquo;reasonable
commercial purpose&rdquo; of the transaction arrangement, features to be taken into consideration include, without limitation: whether
the main value of the equity interest of the relevant offshore enterprise derives directly or indirectly from PRC taxable assets; whether
the assets of the relevant offshore enterprise mainly consists of direct or indirect investment in China or if its income mainly derives
from China; whether the offshore enterprise and its subsidiaries directly or indirectly holding PRC taxable assets have real commercial
nature which is evidenced by their actual function and risk exposure; the duration of existence of the stockholders, business model and
organizational structure; the income tax payable abroad on the income from the transaction of indirect transfer of PRC taxable assets;
the replicability of the transaction by direct transfer of PRC taxable assets; and the tax situation of such indirect transfer and applicable
tax treaties or similar arrangements. In respect of an indirect offshore transfer of assets of a PRC establishment, the resulting gain
is to be included with the enterprise income tax filing of the PRC establishment or place of business being transferred, and would consequently
be subject to PRC enterprise income tax at a rate of 25%. Where the underlying transfer relates to the immovable properties located in
China or to equity investments in a PRC resident enterprise, which is not related to a PRC establishment or place of business of a non-resident
enterprise, a PRC enterprise income tax of 10% would apply, subject to available preferential tax treatment under applicable tax treaties
or similar arrangements, and the party who is obligated to make the transfer payments has the withholding obligation. Bulletin 7 does
not apply to transactions of sale of shares by investors through a public stock exchange where such shares were acquired from a transaction
through a public stock exchange. On October 17, 2017, the SAT promulgated the Announcement of the SAT on Issues Concerning the Withholding
of Non-resident Enterprise Income Tax at Source, known as SAT Circular 37, which became effective on December 1, 2017 and was most recently
amended on June 15, 2018. SAT Circular 37, among other things, simplified procedures of withholding and payment of income tax levied
on non-resident enterprises.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved,
such as offshore restructuring, sale of the shares in our offshore subsidiaries or investments. Our company may be subject to filing
obligations or taxed if our company is transferor in such transactions, and may be subject to withholding obligations if our company
is transferee in such transactions under Bulletin 7 and SAT Circular 37. For transfer of shares in our company by investors that are
non-PRC resident enterprises, the PRC Subsidiaries may be requested to assist in the filing under Bulletin 7 and SAT Circular 37. As
a result, we may be required to expend valuable resources to comply with Bulletin 7 and SAT Circular 37 or to request the relevant transferors
from whom we purchase taxable assets to comply with these publications, or to establish that our company should not be taxed under these
publications, which may have a material adverse effect on our financial condition and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>PRC
regulation of loans to and direct investments in PRC entities by offshore holding companies may delay or prevent FF from making loans
or additional capital contributions to the PRC Subsidiaries, which could materially and adversely affect its liquidity and its ability
to fund and expand its business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
an offshore holding company with PRC Subsidiaries, FF may finance the operations of the PRC Subsidiaries by means of loans or capital
contributions. As permitted under PRC laws and regulations, we may make loans to the PRC Subsidiaries subject to the approval from governmental
authorities and limitation of amount, or we may make additional capital contributions to the PRC Subsidiaries. Furthermore, loans by
us to the PRC Subsidiaries to finance its activities cannot exceed the statutory limits, which is either the difference between the registered
capital and the total investment amount of such enterprise or a multiple of its net assets in the previous year. In addition, a foreign-invested
enterprise (&ldquo;FIE&rdquo;), will use its capital pursuant to the principle of authenticity and self-use within its business scope.
The capital of an FIE will not be used for the following purposes: (i) directly or indirectly used for payment beyond the business scope
of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly used for investment in securities
or investments other than banks&rsquo; principal-secured products unless otherwise provided by relevant laws and regulations; (iii) the
granting of loans to non-affiliated enterprises, except where it is expressly permitted in the business license; and (iv) paying the
expenses related to the purchase of real estate that is not for self-use (except for the foreign-invested real estate enterprises).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
light of the various requirements imposed by PRC regulations on loans to, and direct investment in, the PRC Subsidiaries by offshore
holding companies, and the fact that the PRC government may at its discretion restrict access to foreign currencies for current account
and capital account transactions in the future, we cannot assure you that we will be able to complete the necessary government registrations
or obtain the necessary government approvals on a timely basis, if at all, with respect to future loans by us to the PRC Subsidiaries
or with respect to future capital contributions by us to the PRC Subsidiaries. If we fail to complete such registrations or obtain such
approvals, our ability to capitalize or otherwise fund the PRC operations may be negatively affected, which could materially and adversely
affect our liquidity and our ability to fund and expand our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
PRC government can take regulatory actions and make statements to regulate business operations in China with little advance notice, so
FF&rsquo;s assertions and beliefs of the risks imposed by the Chinese legal and regulatory system cannot be certain.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Chinese government has taken and continues to take regulatory actions and make statements to regulate business operations in China, sometimes
with little advance notice. Our ability to operate and to expand our operations in China in the future may be harmed by changes in its
laws and regulations, including those relating to foreign investment, cybersecurity and date protection, foreign currency exchange, taxation,
environmental regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose
new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part
to ensure our compliance with such regulations or interpretations. Accordingly, government actions in the future could have a significant
effect on economic conditions in China, or particular regions thereof, and could require us to divest ourselves of any interest we then
hold in Chinese properties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
such, the PRC Subsidiaries could be subject to regulation by various political and regulatory entities, including various local and municipal
agencies and government sub-divisions. The PRC Subsidiaries may incur increased costs necessary to comply with existing and newly adopted
laws and regulations or penalties for any failure to comply. The PRC Subsidiaries&rsquo; operations could be adversely affected, directly
or indirectly, by existing or future laws and regulations relating to their business or industry. Given that the Chinese government may
intervene or influence the PRC Subsidiaries&rsquo; operations at any time, it could result in a material change in the PRC Subsidiaries&rsquo;
operations and a material reduction in the value of our Class A Common Stock and warrants. Given recent statements by the Chinese government
indicating an intent to exert more oversight and control over offerings that are conducted overseas, any such action could significantly
limit or completely hinder FF&rsquo;s ability to offer or continue to offer our shares of Class A Common Stock and warrants to investors
and cause the value of such securities to significantly decline or be worthless.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
it is uncertain when and whether FF will be required to obtain permission from the PRC government to maintain its listing on U.S. exchanges
in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although FF is currently not required
to obtain permission from the PRC government and has not received any denial to list on the U.S. exchange, as the PRC laws and regulations
are still evolving rapidly and their interpretation and implementation are subject to uncertainties, our operations could be adversely
affected, directly or indirectly, by existing or future PRC laws and regulations relating to its business or industry.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental authorities may be required in connection
with certain of FF&rsquo;s financing activities, and, if required, it cannot predict if it will be able to obtain such approval or complete
such filing or other administrative procedures.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC governmental authorities recently have strengthened oversight over offerings that are conducted overseas and/or foreign investment
in overseas-listed China-based issuers. Such actions taken by the PRC governmental authorities may intervene with our operations or financing
activities, which are beyond our control. For instance, on July 6, 2021, the relevant PRC governmental authorities promulgated the Opinions
on Strictly Cracking Down on Illegal Securities Activities, which emphasized the need to strengthen the administration over illegal securities
activities, the need to strengthen the supervision over overseas listings by PRC-based companies and the need to revise the special provisions
of the State Council on overseas issuance and listing of shares by those limited by shares companies. On February 17, 2023, the CSRC
promulgated the Trial Administrative Measures of the Overseas Securities Offering and Listing by Domestic Companies, or the Overseas
Listing Trial Measures, and relevant five guidelines, which became effective on March 31, 2023. According to the Overseas Listing Trial
Measures, companies in mainland China that seek to offer securities or list in overseas markets, either directly or indirectly, are required
to fulfill the filing procedure with the CSRC. The Overseas Listing Trial Measures provide that if the issuer meets both of the following
criteria, the overseas securities offering or listing conducted by such issuer will be deemed as an indirect overseas offering or listing
by PRC domestic companies: (i) more than 50% of any of the issuer&rsquo;s operating revenue, total profit, total assets or net assets
as documented in its audited consolidated financial statements for the most recent fiscal year is accounted for by companies in mainland
China; and (ii) the main parts of the issuer&rsquo;s business activities are conducted in mainland China, or its main place(s) of business
are located in mainland China, or the majority of senior management staff in charge of its business operations and management are PRC
citizens or have their usual place(s) of residence located in mainland China. Initial public offerings or listings in overseas markets
will be filed with the CSRC within three working days after the relevant application is submitted overseas, and subsequent securities
offerings of an issuer in the same overseas market where it has previously offered and listed securities will be filed with the CSRC
within three working days after the offering is completed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the Overseas Listing Trial Measures provide that an overseas listing or offering by a PRC domestic company is explicitly prohibited
under any of the following circumstances: (i) such securities offering and listing is explicitly prohibited by provisions in laws, administrative
regulations and relevant state rules; (ii) the intended securities offering and listing may endanger national security upon reviewed
and determined by competent authorities under the State Council in accordance with law; (iii) the domestic company intending to conduct
the securities offering and listing, or its controlling shareholder(s) and the actual controller, have committed relevant crimes such
as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist market economy during the
latest three years; (iv) the domestic company intending to conduct the securities offering and listing is currently under investigations
for suspicion of criminal offenses or major violations of laws and regulations, and no conclusion has yet been made thereof; or (v) there
are material ownership disputes over equity held by the domestic company&rsquo;s controlling shareholder(s) or by other shareholder(s)
that are controlled by the controlling shareholder(s) and/or actual controller.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
the Overseas Listing Trial Measures and the related guidelines are newly promulgated, there are uncertainties regarding their implementation
and interpretation. We cannot predict the impact of these new rules on our future securities offerings or other forms of financing activities,
if any, at this stage, or guarantee that we will be able to satisfy the scrutinized and new regulatory requirements in case they are
applicable to us. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional
requirement on us or otherwise tightening the regulations on PRC companies seeking overseas listing. If it is determined in the future
that approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental authorities are required for
our future financing or listing activities, we cannot assure you we can obtain such approval or complete such filing or other required
procedures in a timely manner. Any failure or delay in obtaining or completing such approval, filing or other required procedures, or
a rescission of any such approval or filing or other procedures, would subject us to sanctions by the CSRC or other PRC governmental
authorities. These PRC governmental authorities may impose fines and/or other penalties on our operations in China, limit our ability
to pay dividends outside of China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from our
offshore financing activities into China or take other actions that could materially and adversely affect our business, financial condition,
results of operations, and prospects. Any uncertainties or negative publicity arising from these events could also adversely affect our
business, financial condition, results of operations, and prospects.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
Mergers and Acquisitions Rules and certain other PRC regulations establish certain procedures for some acquisitions of Chinese companies
by foreign investors, which could make it more difficult for FF to pursue growth through acquisitions in China.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors adopted by six PRC regulatory agencies (the &ldquo;M&amp;A
Rules&rdquo;) and related regulations and rules concerning mergers and acquisitions established additional procedures and requirements
that could make merger and acquisition activities by foreign investors more time-consuming and complex. For example, the M&amp;A Rules
require that MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic
enterprise, if (i) any important industry is concerned, (ii) such transaction involves factors that have or may have an impact on the
national economic security, (iii) such transaction will lead to a change in control of a domestic enterprise which holds a famous trademark
or PRC time-honored brand, or (iv) or in circumstances where overseas companies are established or controlled by PRC enterprises or residents
acquire affiliated domestic companies. Moreover, the PRC Anti-Monopoly Law requires that transactions which are deemed concentrations
and involve parties with specified turnover thresholds must be cleared by the relevant anti-monopoly authority before they can be completed.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, in 2011, the General Office of the State Council promulgated a Notice on Establishing the Security Review System for Mergers
and Acquisitions of Domestic Enterprises by Foreign Investors, which officially established a security review system for mergers and
acquisitions of domestic enterprises by foreign investors. Also, the Rules on Implementation of Security Review System for the Merger
and Acquisition of Domestic Enterprises by Foreign Investors, issued by the MOFCOM and effective in September 2011 specify that mergers
and acquisitions by foreign investors that raise &ldquo;national defense and security&rdquo; concerns and mergers and acquisitions through
which foreign investors may acquire de facto control over domestic enterprises that raise &ldquo;national security&rdquo; concerns are
subject to strict review by the MOFCOM, and the Rules prohibit any activities attempting to bypass a security review, including by structuring
the transaction through a proxy, re-investment through multiple levels, leases, loans or control through contractual control arrangement
or offshore transactions. Furthermore, NDRC and MOFCOM promulgated the Measures for the Security Review of Foreign Investments, effective
January 18, 2021, which require foreign investors or relevant parties to file a prior report before making a foreign investment if such
investment involves military related industry, national defense security or taking control of an enterprise in a key industry that concerns
national security; and if a foreign investment will or may affect national security, the standing working office organized by NDRC and
MOFCOM will conduct a security review to decide whether to approve such investment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the future, we may grow our business in China by acquiring complementary businesses. Complying with the requirements of the above-mentioned
regulations and other relevant rules to complete such transactions, if required, could be time consuming, and any required approval processes,
including obtaining approval or clearance from the MOFCOM or its local counterparts and other relevant PRC authorities, may delay or
inhibit our ability to complete such transactions. It is unclear whether our business would be deemed to be in an industry that raises
&ldquo;national defense and security&rdquo; or &ldquo;national security&rdquo; concerns. However, the MOFCOM or other government agencies
may publish explanations in the future determining that our business is in an industry subject to the security review, in which case
our future acquisitions in the PRC, including those by way of entering into contractual control arrangements with target entities, may
be closely scrutinized or prohibited. Our ability to expand our business or maintain or expand our market share in China through future
acquisitions would as such be materially and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
may be adversely affected by the complexity, uncertainties and changes in PRC regulations on internet-related business, automotive businesses
and other business carried out by the PRC Subsidiaries.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Chinese government extensively regulates the internet and automotive industries and other business carried out by the PRC Subsidiaries,
such laws and regulations are relatively new and evolving, and their interpretation and enforcement involve significant uncertainties.
As a result, in certain circumstances it may be difficult to determine what actions or omissions may be deemed to be in violation of
applicable laws and regulations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Several
PRC regulatory authorities, such as the State Administration for Market Regulation, the NDRC, MOFCOM, and the MIIT of China, oversee
different aspects of the electric vehicle business, and the PRC Subsidiaries will be required to obtain a wide range of government approvals,
licenses, permits and registrations in connection with their operations in China. For example, according to the Administrative Rules
on the Admission of New Energy Vehicle Manufacturers and Products, promulgated by the MIIT on January 6, 2017 and amended on July 24,
2020, the MIIT is responsible for the national-wide administration of new energy vehicles and their manufacturers. The manufacturers
must apply to the MIIT for the entry approval to become a qualified manufacturer in China and must further apply to the MIIT for the
entry approval for the new energy passenger vehicles before commencing the manufacturing and sale of the new energy passenger vehicles
in China. Both of the new energy passenger vehicles and their manufacturers will be listed in the Announcement of the Vehicle Manufacturers
and Products issued by the MIIT from time to time, if they have obtained the entry approval from the MIIT. According to the Management
Measures for Automobile Sales promulgated by the MOFCOM in July 2017, corporate basic information filings must be made by automobile
dealers through the information system for the national automobile circulation operated by the MOFCOM within 90 days after the receipt
of a business license. Furthermore, the electric vehicle industry is relatively immature in China, and the government has not adopted
a clear regulatory framework to regulate the industry.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are substantial uncertainties regarding the interpretation and application of the existing PRC laws, regulations and policies and possible
new laws, regulations or policies relating to internet-related businesses as well as automotive businesses and companies. There is no
assurance that FF will be able to obtain all the permits or licenses related to its business in China, or will be able to maintain its
existing licenses or obtain new ones. In the event that the PRC government considers that FF was or is operating without the proper approvals,
licenses or permits, promulgates new laws and regulations that require additional approvals or licenses, or imposes additional restrictions
on the operation of any part of FF&rsquo;s business, the PRC government has the power, among other things, to levy fines, confiscate
FF&rsquo;s income, revoke its business licenses, and require FF to discontinue the relevant business or impose restrictions on the affected
portion of its business. Any of these actions by the PRC government may have a material adverse effect on FF&rsquo;s business, prospects,
financial condition and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
faces challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection.
Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with
related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially and adversely
affect its business and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
the regular course of our business, we obtain information about various aspects of our operations as well as regarding our employees
and third parties. The integrity and protection of FF, employee and third-party data are critical to our business. Our employees and
third parties expect that we will adequately protect their personal information. We are required by applicable laws to keep strictly
confidential the personal information that we collect, and to take adequate security measures to safeguard such information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PRC
regulators, including the CAC, the MIIT, and the Ministry of Public Security, have been increasingly focused on regulation in data security
and data protection. PRC regulatory requirements regarding cybersecurity are evolving. For instance, various regulatory bodies in China
have enforced data privacy and protection laws and regulations with varying and evolving standards and interpretations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
November 7, 2016, the Standing Committee of the PRC National People&rsquo;s Congress issued the Cyber Security Law of the PRC (the &ldquo;Cyber
Security Law&rdquo;), which became effective on June 1, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Cyber Security Law, network operators must not, without users&rsquo; consent, collect and disclose their personal information,
and may only collect users&rsquo; personal information necessary to provide their services. Providers are also obliged to provide security
maintenance for their products and services and must comply with provisions regarding the protection of personal information as stipulated
under the relevant laws and regulations.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC Criminal Law, as most recently amended in 2020, prohibits institutions, companies and their employees from selling or otherwise illegally
disclosing a citizen&rsquo;s personal information obtained in performing duties or providing services or obtaining such information through
theft or other illegal ways. The Civil Code of the PRC provides legal basis for privacy and personal information infringement claims
under the Chinese civil laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
June 10, 2021, the Standing Committee of the National People&rsquo;s Congress of China (the &ldquo;SCNPC&rdquo;), promulgated the PRC
Data Security Law, which took effect on September 1, 2021. The PRC Data Security Law imposes data security and privacy obligations on
entities and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based
on the importance of data in economic and social development, and the degree of harm it will cause to national security, public interests,
or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired
or used. The PRC Data Security Law also provides for a national security review procedure for data activities that may affect national
security and imposes export restrictions on certain data and information.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 16, 2021, the CAC and certain other PRC regulatory authorities promulgated the Several Provisions on the Management of
Automobile Data Security (Trial Implementation), which came into effect on October 1, 2021 and clearly stipulates that: (i) to carry
out personal information processing activities, automobile data processors must notify individuals of relevant information in a
prominent manner, obtain personal consent or comply with laws and administrative regulations in other circumstances; (ii) for the
processing of sensitive personal information, the automobile data processor must obtain separate consent from individuals, and meet
specific requirements; and (iii) automobile data processors must collect biometric information only with sufficient necessity and
for the purpose to enhance driving safety. In addition, these provisions also define the term of &ldquo;important data&rdquo;
thereunder and establish corresponding protection and regulation mechanisms on the important data.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
August 20, 2021, the SCNPC promulgated the PRC Personal Information Protection Law, which took effect on November 1, 2021. This legislation
marks China&rsquo;s first comprehensive legal attempt to define personal information and regulate the storing, transferring, and processing
of personal information. It restricts the cross-border transfer of personal information and has major implications for companies that
rely on data for their operations in China.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
December 2021, the CAC and 12 other related authorities promulgated the Cybersecurity Review Measures, which became effective on February
15, 2022. The Cybersecurity Review Measures stipulates that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            CSRC is included as one of the regulatory authorities for purposes of jointly establishing
                                            the state cybersecurity review working mechanism;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            purchase of network products and services by a &ldquo;critical information infrastructure
                                            operator&rdquo; and the data processing activities of a &ldquo;network platform operator&rdquo;
                                            that affect or may affect national security will be subject to the cybersecurity review;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">if
                                            a network platform operator who possesses personal information of more than one million users
                                            intends to go public in a foreign country, it must apply for a cybersecurity review with
                                            the CAC; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            relevant PRC governmental authorities may initiate cybersecurity review if they determine
                                            certain network products, services, or data processing activities affect or may affect national
                                            security.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
on November 14, 2021, the CAC published a discussion draft of Regulations on the Administration of Cyber Data Security for public comment,
which provides that data processors conducting the following activities must apply for cybersecurity review: (i) merger, reorganization
or division of internet platform operators that have acquired a large number of data resources related to national security, economic
development or public interests affects or may affect national security; (ii) listing abroad of data processors processing over one million
users&rsquo; personal information; (iii) listing in Hong Kong which affects or may affect national security; or (iv) other data processing
activities that affect or may affect national security. The draft also provides that operators of large internet platforms that set up
headquarters, operation centers or R&amp;D centers overseas will report to the national cyberspace administration and competent authorities.
In addition, the draft also requires that data processors processing important data or going public overseas will conduct an annual data
security self-assessment or entrust a data security service institution to do so, and submit the data security assessment report of the
previous year to the local branch of the Cyberspace Administration of China before January 31 each year. As of the date of this prospectus,
the above mentioned drafts have not been formally adopted, and substantial uncertainties exist with respect to their enactment timetable,
final content, interpretation and implementation. On July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Cross-border
Data Transmission, which took effect on September 1, 2022. These measures require the data processor providing data overseas and falling
under any of the following circumstances apply for the security assessment of cross-border data transmission by the national cybersecurity
authority through its local counterpart: (i) the data processor provides important data overseas; (ii) critical information infrastructure
operators and data processors processing personal information of more than one million individuals provide personal information overseas;
(iii) data processors which have provided personal information of 100,000 individuals or sensitive personal information of 10,000 individuals
overseas since January 1 of the previous year provides personal information overseas; and (iv) other situations required to declare security
assessment of cross-border data transmission as stipulated by the national cybersecurity authority.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
PRC Subsidiaries may become subject to enhanced cybersecurity review. Certain internet platforms in China have been reportedly subject
to heightened regulatory scrutiny in relation to cybersecurity matters. If the PRC Subsidiaries are deemed to be a critical information
infrastructure operator or a network platform operator that is engaged in data processing that affect or may affect national security,
they could be subject to PRC cybersecurity review. As of the date of this prospectus, we have not received any notice from any PRC governmental
authority identifying any of the PRC Subsidiaries as a &ldquo;critical information infrastructure operator&rdquo; or &ldquo;network platform
operator&rdquo; that is engaged in data processing which affects or may affect national security as mentioned above, or requiring us
to go through the cybersecurity review or initiating a cybersecurity review against us in such respects.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
advised by the PRC counsel, the above mentioned laws, regulations or the relevant drafts are relatively new and the PRC laws and regulations
relating to cybersecurity, information security, data privacy and protection are evolving rapidly, there remains significant uncertainty
in the enactment, interpretation and enforcement of such PRC laws, regulations or the relevant drafts, and the PRC Subsidiaries could
become subject to enhanced cybersecurity review or non-compliance investigations launched by PRC regulators in the future. Any failure
or delay in the completion of the cybersecurity review procedures or any other non-compliance investigations in accordance with the related
laws and regulations may result in fines or other penalties, including suspension of business, website closure, and revocation of prerequisite
licenses, as well as reputational damage or legal proceedings or actions to the PRC Subsidiaries, which may have material adverse effects
on our business, financial condition or results of operations. As of the date of this prospectus, the PRC Subsidiaries have not been
involved in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities, and they
have not received any inquiry, notice, warning, or sanction in such respect. However, as uncertainties remain regarding the interpretation
and implementation of these laws and regulations, we cannot assure you that the PRC Subsidiaries will comply with such regulations in
all respects and they may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>In
the event that the independent registered public accounting firm operating in China that FF uses as an auditor for its operations in
China is not permitted to be subject to inspection by PCAOB, then investors may be deprived of the benefits of such inspection.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Holding Foreign Companies Accountable Act (the &ldquo;HFCA&rdquo;), if the SEC determines that a company has filed audit reports
by a registered public accounting firm that has not been subject to inspection by the PCAOB for two consecutive years, the SEC shall
prohibit such ordinary shares from being traded on a national securities exchange or in the over-the-counter trading market in the U.S.
The PCAOB provides a framework to use when determining, as contemplated under the HFCA, whether the PCAOB is unable to inspect or investigate
completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities
in that jurisdiction. Additionally, the SEC has disclosure requirements that apply to registrants that the SEC identifies as having filed
an Annual Report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that
the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
previous auditor, the independent registered public accounting firm that issued the audit report included in 2023 Form 10-K, is registered
with the PCAOB, and is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance
with the applicable professional standards. Accordingly, we have not been identified as a &ldquo;Commission-Identified Issuer&rdquo;
by the PCAOB under the current framework of the HFCA. However, prior to 2022, the auditors of the PRC Subsidiaries were not subject to
inspection by the PCAOB and any future determination by the PCAOB that the PRC Subsidiaries&rsquo; auditors are not subject to inspection
could materially adversely affect FF.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
ability to retain an auditor subject to PCAOB inspection and investigation may depend on the relevant positions of U.S. and Chinese regulators.
If the PCAOB is unable to inspect or investigate completely FF&rsquo;s auditor in China because of a position taken by the Chinese authorities,
then such lack of inspection could cause trading in FF&rsquo;s securities to be prohibited under the HFCA, and ultimately result in a
determination by the SEC to delist FF&rsquo;s securities. Such a prohibition would substantially impair an investor&rsquo;s ability to
sell or purchase the Common Stock and negatively impact the price of the Common Stock. Accordingly, the HFCA calls for additional and
more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially non-U.S.
auditors. In addition, PCAOB inspections help improve future audit quality and effectiveness. Without the benefit of PCAOB inspections,
existing or potential investors could lose confidence in our reported financial information and the quality of our financial statements
with respect to the PRC Subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>U.S.
regulatory bodies may be limited in their ability to conduct investigations or inspections of FF&rsquo;s operations in China.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
SEC, the DOJ and other U.S. authorities may also have difficulties in bringing and enforcing actions against the PRC Subsidiaries or
the directors or executive officers of the PRC Subsidiaries. The SEC has stated that there are significant legal and other obstacles
to obtaining information needed for investigations or litigation in China. China has adopted a revised securities law that became effective
on March 1, 2020, Article 177 of which provides, among other things, that no overseas securities regulator is allowed to directly conduct
investigation or evidence collection activities within the territory of the PRC. Furthermore, on February 24, 2023, the CSRC and several
other Chinese authorities promulgated the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities
Offering and Listing by Domestic Companies, which provide that where an overseas securities regulator and a competent overseas authority
requests to inspect, investigate or collect evidence from a PRC domestic company concerning overseas offering and listing, or to inspect,
investigate, or collect evidence from the PRC domestic securities companies and securities service providers that undertake relevant
businesses for such PRC domestic companies, such inspection, investigation and evidence collection will be conducted under a cross-border
regulatory cooperation mechanism, and the CSRC or other competent Chinese authorities will provide necessary assistance pursuant to bilateral
and multilateral cooperation mechanisms. PRC domestic companies, securities companies and securities service providers must first obtain
approval from the CSRC or other competent Chinese authorities before cooperating with the inspection and investigation by the overseas
securities regulator or competent overseas authority, or providing documents and materials requested in such inspection and investigation.
Accordingly, without governmental approval in China, no entity or individual in China may provide documents and information relating
to securities business activities to overseas regulators when it is under direct investigation or evidence discovery conducted by overseas
regulators, which could present significant legal and other obstacles to obtaining information needed for investigations and litigation
conducted outside of China.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>There
may be difficulties in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments
or bringing original actions in China based on United States or other foreign laws against FF and its management.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
currently have operations, and plan to have significant operations and assets in the future, in China. Moreover, one of our current directors
is a national and resident of the PRC. As a result, it may not be possible to effect service of process within the United States or elsewhere
outside of China with regard to such persons or assets relating to our operations in China, including actions arising under applicable
U.S. federal and state securities laws. In addition, there are legal and other obstacles in China to providing information needed for
regulatory investigations or litigation initiated by regulators outside China. Overseas regulators may have difficulties in conducting
investigations or collecting evidence within China. It may also be difficult for investors to bring a lawsuit against us or our directors
or executive officers based on U.S. federal securities laws in a Chinese court. Moreover, China does not have treaties with the United
States providing for the reciprocal recognition and enforcement of judgments of courts. Therefore, even if a judgment were obtained against
us or our management for matters arising under U.S. federal or state securities laws or other applicable U.S. federal or state law, it
may be difficult to enforce such a judgment with respect to our operations or assets in China.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>A
significant portion of FF&rsquo;s financing in the near future is expected to come from investors in China, and such investment is subject
to delay due to due diligence review, including know your customer, anti-money laundering and other review.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
conduct due diligence, including know your customer, anti-money laundering and other review, on all potential financing sources. This
process has been time consuming, particularly in connection with review of investors in China, and may result in our not being able to
consummate any financing from these or other financing sources on a timely basis or at all. If we are unable to raise sufficient additional
funds in the near term, we may be required to further delay our production and delivery plans for the FF 91 Futurist, reduce headcount,
liquidate our assets, file for bankruptcy, reorganize, merge with another entity, and/or cease operations. For more information, see
&ldquo;<I>Risk Factors &ndash; Risks Related to FF&rsquo;s Business and Industry &ndash; FF does not have sufficient liquidity to pay
its outstanding obligations and to operate its business and it will likely file for bankruptcy protection if it is unable to access additional
capital.&rdquo;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Risks
Related to the Restatement</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
has identified material weaknesses in its internal control over financial reporting. FF&rsquo;s inability to remediate these material
weaknesses, or identification of additional material weaknesses in the future or other failure to maintain effective internal control
over financial reporting, has resulted, and could further result, in material misstatements in FF&rsquo;s consolidated financial statements
and FF&rsquo;s ability to accurately or timely report its financial condition or results of operations, which may adversely affect FF&rsquo;s
business and share price.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
management is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;). A material weakness is defined as a
deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. As a
result of these material weaknesses, FF&rsquo;s management concluded that its internal control over financial reporting was not effective
as of December 31, 2022 or December 31, 2023. FF has engaged in remediation efforts designed to address these material weaknesses. As
FF continues to evaluate and work to improve its internal control over financial reporting, FF may determine that additional measures
or modifications to the remediation plan are necessary. FF is working to remediate the material weaknesses, but full remediation could
go beyond December 31, 2024. At this time, we cannot predict the total costs expected to be incurred; however, the remediation measures
have been and will continue to be time consuming, costly, and a significant demand on our financial and operational resources.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
FF believes these efforts will remediate the material weaknesses, it will not be considered remediated until FF completes the design
and implementation of the enhanced controls, the controls operate for a sufficient period of time, and FF has concluded, through testing,
that these controls are effective. FF may not be able to complete its evaluation, testing or any required remediation in a timely fashion,
or at all. FF cannot assure you that the measures it has taken to date and may take in the future, will be sufficient to remediate the
control deficiencies that led to its material weaknesses in internal control over financial reporting or that they will prevent or avoid
potential future material weaknesses. The effectiveness of FF&rsquo;s internal control over financial reporting is subject to various
inherent limitations, including cost, judgments and assumptions, human error and the risk of fraud. The material weaknesses, or a failure
to promptly remediate them, may adversely affect our business, our reputation, our results of operations and the market price of our
Class A Common Stock. If FF is unable to remediate the material weaknesses in a timely manner, our investors, customers and other business
partners may lose confidence in our business or our financial reports, and our access to capital markets may be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, our ability to record, process, and report financial information accurately, and to prepare financial statements within the
time periods specified by the rules and regulations of the SEC and other regulatory authorities, could be adversely affected, which may
result in violations of applicable securities laws, stock exchange listing requirements and the covenants under our debt and equity agreements.
Any such delays or deficiencies could penalize us, including by limiting our ability to obtain financing, either in the public capital
markets or from private sources and hurt our reputation and could thereby impede our ability to implement our growth strategy. We could
also be exposed to lawsuits, investigations, or other legal actions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
control deficiencies resulting in the material weaknesses, in the aggregate, has resulted, and may in the future result, in misstatements
of accounts or disclosures that would result in a material misstatement of the annual or interim consolidated financial statements. For
example, in July 2023, FF identified errors in its Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report
on Form 10-Q for the periods ended March 31, 2023 and September 30, 2022, determined these financial statements should no longer be relied
upon, and subsequently restated them.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, we cannot be certain that we will not identify additional control deficiencies or material weaknesses in the future. If we
identify future control deficiencies or material weaknesses, these may lead to adverse effects on our business, our reputation, our results
of operations, and the market price of our Class A Common Stock. Further, if our remedial measures are insufficient to address the material
weaknesses, or if additional material weaknesses or significant deficiencies in our internal control are discovered or occur in the future,
our consolidated financial statements may contain material misstatements and we could be required to restate additional financial results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
FF has recently experienced substantial turnover in key management personnel, including legal, compliance, human resources and finance
personnel, as well as substantial changes to the composition of the Board, and further changes may occur in the future. As a result of
these Board and management changes, there can be no guarantee that FF&rsquo;s board of directors as composed in the future will agree
with decisions made by the Board regarding the material weakness and the necessary remedial measures, that they will not identify other
areas that require remediation or that they will continue to pursue the remediation measures. Any turnover of personnel, particularly
accounting, finance and legal personnel, may also negatively impact FF&rsquo;s internal controls over financial reporting and other disclosures
and our ability to prepare and make timely and accurate public disclosures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
faces risks related to the restatement&nbsp;of its previously issued consolidated financial statements.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
reached a determination to restate certain financial information and related footnote disclosures in our previously issued consolidated
financial statements for the 2022 Form 10-K for the period ended December 31, 2022 and Quarterly Reports on Form 10-Q for the periods
ended March 31, 2023 and September 30, 2022. As a result, we face a number of additional risks and uncertainties, which may affect investor
confidence in the accuracy of our financial disclosures and may raise reputational issues for our business. We expect to continue to
face many of the risks and challenges related to the&nbsp;restatement, including the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 16.2pt; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; color: rgb(33,37,41)">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
may face potential for litigation or other disputes, which may include, among others. Claims invoking the federal and state securities
laws, contractual claims or other claims arising from the restatement, and<FONT STYLE="font-style: normal; font-weight: normal; text-transform: none; color: rgb(33,37,41)"><BR>
<BR></FONT></FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            processes undertaken to effect the restatement may not have been adequate to identify and
                                            correct all errors in our historical financial statements and, as a result, we may discover
                                            additional errors and our financial statements remain subject to the risk of future restatement.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
cannot assure that all of the risks and challenges described above will be eliminated or that general reputational harm will not persist.
If one or more of the foregoing risks or challenges persist, our business, operations and financial condition are likely to be materially
and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Risks
Related to Our Common Stock</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
is not able to continue to utilize its &ldquo;at-the-market&rdquo; equity program.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
operations have consumed substantial amounts of cash since its inception. Historically, FF has primarily financed its operations through
the sale of its Common Stock, warrants and convertible notes. For example, on June 16, 2023, FF filed the Registration Statement which
was declared effective by the SEC on June 28, 2023. On September 26, 2023, FF also entered into a sales agreement with Stifel, Nicolaus
&amp; Company, Incorporated, B. Riley Securities, Inc., A.G.P./Alliance Global Partners, Wedbush Securities Inc. and Maxim Group LLC,
as sales agents, to sell shares of Class A Common Stock, from time to time, with aggregate gross sales proceeds of up to $90.0 million
pursuant to the Registration Statement as an ATM Program. The ATM Program was the primary source of liquidity for FF from September to
December 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
applicable SEC rules and regulations, because FF failed to timely file the 2023 Form 10-K, it is not eligible to access the ATM Program.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
alternative public and private transaction structures may be available, these may require additional time and cost, may impose operational
restrictions on FF, and may not be available on attractive terms. FF&rsquo;s inability to continue to raise capital when needed will
harm its business, financial condition and results of operations, and will likely cause FF&rsquo;s stock value to decline and FF will
likely have to file for bankruptcy protection and its assets will likely be liquidated. FF&rsquo;s equity holders would likely not receive
any recovery at all in a bankruptcy scenario.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
may not be in compliance with the continued listing requirements for Nasdaq in the future, the failure of which may cause the Company
to be delisted, the failure to be in compliance with the Nasdaq continued listing requirements could also affect the market price and
liquidity for the FF&rsquo;s Common Stock and reduce the FF&rsquo;s ability to raise additional capital.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 28, 2023, FF received a letter from the Listing Qualifications Staff of Nasdaq noting that FF was not in compliance with the
requirement to maintain a minimum bid price of $1.00 per share for 30 consecutive trading days for continued listing on Nasdaq, as set
forth in Nasdaq Listing Rule 5550(a)(2) (the &ldquo;Minimum Bid Price Requirement&rdquo;). Beginning on November 9, 2023, FF&rsquo;s
closing bid price of the Class A Common Stock has been below $1.00 per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to Nasdaq Listing Rule 5810(c)(3)(A), FF was initially provided 180 calendar days from receipt of the notice from Nasdaq to regain compliance
with the Minimum Bid Price Requirement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 18, 2024, Nasdaq notified FF that since it had not yet filed 2023 Form 10-K, it no longer complied with Listing Rule 5250(c)(1).
Pursuant to Listing Rule 5810(c)(2)(A), this deficiency was an additional basis for delisting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 24, 2024, FF received a letter from Nasdaq indicating that FF was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii),
as FF&rsquo;s Class A Common Stock had a closing bid price of $0.10 or less for ten consecutive trading days (the &ldquo;Low Priced Stocks
Rule&rdquo;). The letter indicated that, as a result, the Nasdaq staff had determined to delist FF&rsquo;s securities from The Nasdaq
Capital Market (the &ldquo;Delisting Determination&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
May 1, 2024, FF requested a hearing to appeal the Delisting Determination, which stayed the suspension of FF&rsquo;s securities for 15
days. FF also requested an extended stay of the suspension pending such hearing with Nasdaq&rsquo;s Hearings Panel (the &ldquo;Panel&rdquo;),
which Nasdaq granted on May 28, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Nasdaq Hearings Panel granted the Company&rsquo;s request for continued listing, conditional upon meeting the minimum bid price requirement
by August 31, 2024. On August 14, 2024, the Company filed the 4<SUP>th</SUP> Certificate of Amendment to the Company&rsquo;s Amended
and Restated Charter with the Secretary of State of the State of Delaware to effect a reverse stock split at a ratio of 1:40 and to set
the number of authorized shares of Class A Common Stock, par value $0.0001 per share, of the Company to 104,245,313 (which is 4,169,812,500
divided by 40, the reverse stock split ratio determined by the Board). The 4<SUP>th</SUP> Certificate of Amendment was authorized by
the stockholders of the Company at the Company&rsquo;s Annual Meeting of Stockholders held on July 31, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant
to the Certificate of Amendment, effective as of 5:00 p.m., Eastern Time, on August 16, 2024, every 40 shares of the issued and outstanding
Common Stock was automatically converted into one share of Common Stock, without any change in par value per share, and the number of
authorized shares of Common Stock was reduced to 104,245,313.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">On
September 4, 2024, the Company&nbsp;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">received a letter
from the Office of the General Counsel of the Nasdaq notifying the Company that it had regained compliance with the Nasdaq Capital Market&rsquo;s
minimum bid price requirement and periodic filing requirement (the &ldquo;Periodic Filing Rule&rdquo;) as required by the Panel decision
dated June 26, 2024, as amended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
will keep monitoring the Company&rsquo;s compliance with Nasdaq continued listing requirements. However, the Company cannot guarantee
that it will not fail to be compliant with these requirements in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is subject to a mandatory panel monitor for a period of one (1) year from September 4, 2024. If within that one-year monitoring
period, the Nasdaq Listing Qualifications staff (the &ldquo;Staff&rdquo;) finds the Company again out of compliance with the Periodic
Filing Rule that was the subject of the exception, the Company will not be permitted to provide the Staff with a plan of compliance with
respect to that deficiency and Staff will not be permitted to grant additional time for the Company to regain compliance with respect
to that deficiency, nor will the Company be afforded an applicable cure or compliance period pursuant to the Nasdaq Listing Rules 5810(c)(3).
The Staff will issue a Delist Determination Letter and the Company will have an opportunity to request a new hearing with the initial
Panel or a newly convened Hearings Panel if the initial Panel is unavailable. The Company&rsquo;s securities may be at that time delisted
from the Nasdaq.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, Nasdaq Listing Rule 5810(c)(3)(A)(iv) states that if a listed company that fails to meet the Minimum Bid Price Requirement after
effecting one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one, then FF
is not eligible for a Compliance Period. FF effected a 1-for-80 reverse stock split of its Common Stock on August 25, 2023, an additional
1-for-3 reverse stock split of its Common Stock on February&nbsp;29, 2024, and an additional 1-for-40 reverse stock split of its Common
Stock on August 16, 2024, if the Company again fails to meet the Minimum Bid price Requirement before August 25, 2025, the Common Stock
of the Company will be delisted and the Company is not subject to any additional reverse stock split.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
Nasdaq delists FF&rsquo;s shares from trading on its exchange for failure to meet the applicable listing standards, we and our stockholders
could face significant material adverse consequences including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            determination that our Common Stock is a &ldquo;penny stock&rdquo; which will require brokers
                                            trading in our Common Stock to adhere to more stringent rules, possibly resulting in a reduced
                                            level of trading activity in the secondary trading market for shares of our Common Stock;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            limited amount of news and analyst coverage; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a
                                            decreased ability to issue additional securities or obtain additional financing in the future.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
does not currently intend to pay dividends on the Class A Common Stock and, consequently, your ability to achieve a return on your investment
will depend on appreciation in the price of the Class A Common Stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
has no direct operations and no significant assets other than the ownership of the stock of its subsidiaries. As a result, FF will depend
on its subsidiaries for distributions, loans and other payments to generate the funds necessary to meet our financial obligations, including
our expenses as a publicly traded company, and to pay any dividends with respect to our Class A Common Stock. Applicable state law and
contractual restrictions, including in agreements governing the current or future indebtedness of FF, as well as the financial condition
and operating requirements of FF and limitations on the ability of the PRC Subsidiaries&rsquo; ability to pay dividends or make payment
to us, may limit our ability to obtain cash from FF subsidiaries. Thus, we do not expect to pay cash dividends on our Class A Common
Stock. Any future dividend payments are within the absolute discretion of our Board and will depend on, among other things, our results
of operations, working capital requirements, capital expenditure requirements, financial condition, level of indebtedness, contractual
restrictions with respect to payment of dividends, business opportunities, anticipated cash needs, provisions of applicable law and other
factors that our Board may deem relevant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
may be required to take write-downs or write-offs, or FF may be subject to restructuring, impairment or other charges that could have
a significant negative effect on FF&rsquo;s business, prospects, financial condition, results of operations and the trading price of
FF&rsquo;s securities, which could cause you to lose some or all of your investment.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Factors
outside of FF&rsquo;s control may, at any time, arise. As a result of these factors, FF may be forced to later write-down or write-off
assets, restructure its operations, or incur impairment or other charges that could result in FF reporting losses. Even though these
charges may be non-cash items and therefore not have an immediate impact on FF&rsquo;s liquidity, the fact that FF reports charges of
this nature could contribute to negative market perceptions about FF or its securities. In addition, charges of this nature may cause
FF to be unable to obtain future financing on favorable terms or at all.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
price of the Class A Common Stock has been and may continue to be highly volatile, and you could lose all or part of your investment.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
trading price of the Class A Common Stock has been and may continue to be highly volatile and could be attributable, among others, to
factors beyond our control, including limited trading volume. For example, our stock traded within a range of a high price of $72.00 and
a low price of $1.60 per share for the period from April 16, 2024, through October 30, 2024.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Any
of the factors listed below could have a material adverse effect on the market price of the Class A Common Stock and as a result your
investment in FF&rsquo;s securities, and FF&rsquo;s securities may trade at prices significantly below the price paid by you. In such
circumstances, the trading price of FF&rsquo;s securities may not recover and may experience a further decline. Factors affecting the
trading price of FF&rsquo;s securities may include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            failure to raise sufficient financing;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actual
                                            or anticipated fluctuations in FF&rsquo;s financial results or the financial results of companies
                                            perceived to be similar to it;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in the market&rsquo;s expectations about FF&rsquo;s operating results;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">success
                                            of competitors;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            ability to meet its three-phase delivery plan;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            operating results failing to meet the expectation of securities analysts or investors in
                                            a particular period;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            ability to attract and retain senior management or key operating personnel, and the addition
                                            or departure of key personnel;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in financial estimates and recommendations by securities analysts concerning FF or the transportation
                                            industry in general;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">operating
                                            and share price performance of other companies that investors deem comparable to FF;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            ability to market new and enhanced products and technologies on a timely basis;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in laws and regulations affecting FF&rsquo;s business;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
                                            ability to meet compliance requirements;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">commencement
                                            of, or involvement in, threatened or actual litigation and government investigations;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in FF&rsquo;s capital structure, such as future issuances of securities or the incurrence
                                            of additional debt;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            volume of FF&rsquo;s Common Stock available for public sale;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
                                            change in FF&rsquo;s Board or management;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">actions
                                            taken by FF&rsquo;s directors, executive officers or significant stockholders such as sales
                                            of FF&rsquo;s Common Stock, or the perception that such actions could occur;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ongoing
                                            and potential litigation involving FF, including the SEC investigation;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            implementation of the Special Committee&rsquo;s recommendations and FF&rsquo;s related remedial
                                            actions; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">general
                                            economic and political conditions such as recessions, interest rates, fuel prices, international
                                            currency fluctuations and acts of war or terrorism.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broad
market and industry factors may materially harm the market price of FF&rsquo;s securities irrespective of FF&rsquo;s operating performance.
The stock markets in general have experienced price and volume fluctuations that have often been unrelated or disproportionate to the
operating performance of the particular companies affected. The trading prices and valuations of these stocks, and of FF&rsquo;s securities,
may not be predictable. A loss of investor confidence in the market for electric vehicle manufacturers&rsquo; stocks or the stocks of
other companies which investors perceive to be similar to FF could depress FF&rsquo;s share price regardless of FF&rsquo;s business,
prospects, financial conditions or results of operations. A decline in the market price of FF&rsquo;s securities also could adversely
affect FF&rsquo;s ability to issue additional securities and FF&rsquo;s ability to obtain additional financing in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF&rsquo;s
ability to use net operating loss carryforwards and other tax attributes may be limited in connection with the Business Combination or
other ownership changes.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legacy
FF has net operating loss carryforwards for U.S. federal and state, as well as non-U.S., income tax purposes that are potentially available
to offset future taxable income, subject to certain limitations (including the limitations described below). If not utilized, U.S. federal
net operating loss carryforward amounts generated prior to January 1, 2018 will begin to expire 20 years after the tax year in which
such losses originated. Non-U.S. and state net operating loss carryforward amounts may also be subject to expiration. Realization of
these net operating loss carryforwards depends on the future taxable income of FF, and there is a risk that the existing carryforwards
of FF could expire unused and be unavailable to offset future income tax liabilities, which could materially and adversely affect FF&rsquo;s
operating results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
Section 382 of the Code, if a corporation undergoes an &ldquo;ownership change&rdquo; (generally defined as a greater than 50% change
(by value) in the ownership of its equity by certain stockholders over a three-year period), the corporation&rsquo;s ability to use its
pre-change net operating loss carryforwards and certain other pre-change tax attributes to offset its post-change income may be limited.
The applicable rules generally operate by focusing on changes in ownership among stockholders considered by the rules as owning, directly
or indirectly, 5% or more of the stock of a company, as well as changes in ownership arising from new issuances of stock by FF. Legacy
FF may have experienced ownership changes in the past and FF may have experienced an ownership change as a result of the Business Combination.
FF may also experience ownership changes in the future as a result of changes in the ownership of its stock, which may be outside our
control. Accordingly, FF&rsquo;s ability to utilize its net operating loss carryforwards could be limited by such ownership changes,
which could result in increased tax liability to FF, potentially decreasing the value of its stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
are additional limitations found under Sections 269, 383, and 384 of the Code that may also limit the use of net operating loss carryforwards
that may apply and result in increased tax liability to FF, potentially decreasing the value of the Common Stock. In addition, a Separate
Return Limitation Year (&ldquo;SRLY&rdquo;), generally encompasses all separate return years of a U.S. federal consolidated group member
(or predecessor in a Section 381 or other transaction), including tax years in which it joins a consolidated return of another group.
According to Treasury Regulation Section 1.1502-21, net operating losses of a member that arise in a SRLY may be applied against consolidated
taxable income only to the extent of the loss member&rsquo;s cumulative contribution to the consolidated taxable income. As a result,
this SRLY limitation may also increase FF&rsquo;s tax liability (by reducing the carryforward of certain net operating losses that otherwise
might be used to offset the amount of taxable gain), potentially decreasing the value of the Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF&rsquo;s
tax obligations and related filings have become significantly more complex and subject to greater risk of audit or examination by taxing
authorities, and outcomes resulting from such audits or examinations could adversely impact our business, prospects, financial condition
and results of operations, including our after-tax profitability and financial results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
operations are subject to significant income, withholding and other tax obligations in the United States and may become subject to taxes
in numerous additional state, local and non-U.S. jurisdictions with respect to our income, operations and subsidiaries related to those
jurisdictions. In addition, FF now has international supplier and customer relationships and may expand operations to multiple jurisdictions,
including jurisdictions in which the tax laws, their interpretation or their administration may not be favorable. Additionally, future
changes in tax law or regulations in any jurisdiction in which FF operates or will operate could result in changes to the taxation of
FF&rsquo;s income and operations, which could cause our after-tax profitability to be lower than anticipated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
potential future after-tax profitability could be subject to volatility or affected by numerous factors, including (a) the availability
of tax deductions, credits, exemptions, refunds (including refunds of value added taxes) and other benefits to reduce FF&rsquo;s tax
liabilities, (b) changes in the valuation of FF&rsquo;s deferred tax assets and liabilities, (c) expected timing and amount of the release
of any tax valuation allowances, (d) tax treatment of stock-based compensation, (e) changes in the relative amount of our earnings subject
to tax in the various jurisdictions in which FF operates or has subsidiaries, (f) the potential expansion of FF&rsquo;s business into
or otherwise becoming subject to tax in additional jurisdictions, (g) changes to FF&rsquo;s existing intercompany structure (and any
costs related thereto) and business operations, (h) the extent of FF&rsquo;s intercompany transactions and the extent to which taxing
authorities in the relevant jurisdictions respect those intercompany transactions and (i) FF&rsquo;s ability to structure its operations
in an efficient and competitive manner. Due to the complexity of multinational tax obligations and filings, FF may have a heightened
risk related to audits or examinations by U.S. federal, state, local and non-U.S. taxing authorities. Outcomes from these audits or examinations
could have an adverse effect on our business, prospects, financial condition and results of operations, including our after-tax profitability
and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
potential future after-tax profitability may also be adversely impacted by changes in the relevant tax laws and tax rates, treaties,
regulations, administrative practices and principles, judicial decisions and interpretations thereof, in each case, possibly with retroactive
effect. Additionally, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS recently entered into force
among the jurisdictions that have ratified it, although the United States has not yet entered into this convention. These recent changes
could negatively impact FF&rsquo;s taxation, especially if FF expands its relationships and operations internationally.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF&rsquo;s
failure to timely and effectively implement controls and procedures required by Section 404(a) of the Sarbanes-Oxley Act of 2002 (the
&ldquo;Sarbanes-Oxley Act&rdquo;) could have a material adverse effect on its business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
standards required for a public company under Section 404(a) of the Sarbanes-Oxley Act are significantly more stringent than those required
of Legacy FF as a privately-held company. Management may not be able to effectively and timely implement controls and procedures that
adequately respond to the increased regulatory compliance and reporting requirements that are now applicable after the consummation of
the Business Combination. As described in &ldquo;<I>Risk Factors &ndash; Risks Related to the Restatement &ndash; FF has identified material
weaknesses in its internal control over financial reporting. If FF is unable to remediate these material weaknesses, or if it identifies
additional material weaknesses in the future or otherwise fails to maintain effective internal control over financial reporting, could
result in material misstatements in FF&rsquo;s consolidated financial statements and FF&rsquo;s inability to accurately or timely report
its financial condition or results of operations, which may adversely affect FF&rsquo;s business and share price.</I>&rdquo;<I>&nbsp;</I>management
has identified material weaknesses in the Company&rsquo;s internal control over financial reporting. If FF does not remediate such material
weaknesses, or if other material weaknesses are identified, or if FF is not able to implement the additional requirements of Section
404(a) in a timely manner or with adequate compliance, it may not be able to assess whether its internal controls over financial reporting
are effective, which may subject it to adverse regulatory consequences and could harm investor confidence and the market price of its
securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
may issue additional shares of Common Stock or preferred shares, which would dilute the interest of FF stockholders.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
has and may, in the future, issue a substantial number of additional shares of Common Stock or preferred stock. The issuance of additional
shares of Common Stock or preferred stock:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">may
                                            significantly dilute the equity interest of investors;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">may
                                            subordinate the rights of holders of Common Stock if preferred stock is issued with rights
                                            senior to those afforded our Common Stock;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">could
                                            cause a change of control if a substantial number of shares of our Common Stock are issued,
                                            which may affect, among other things, our ability to use our net operating loss carry forwards,
                                            if any, and could result in the resignation or removal of our present officers and directors;
                                            and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">may
                                            adversely affect prevailing market prices for our Common Stock.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sales
of a substantial number of shares of our Class A Common Stock in the public market, including the resale of the shares of Common Stock
held by FF stockholders pursuant to Rule 144, could occur at any time. These sales, or the perception in the market that the holders
of a large number of shares of Common Stock intend to sell shares, could reduce the market price of the Class A Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, as of October 8, 2024, the Class A Common Stock was also subject to potential dilution from: (i) conversion of notes and exercise
of warrants for which 26,134 shares have been registered; (ii) conversion of notes which have satisfied the holding period subject to
Rule 144 eligibility; (iii) the exercise of up to 1,296,410 warrants; (iv) the exercise of up to 2,879 stock options; (v) the vesting
of 1,516,942 unvested RSUs; (vi) the issuance of up to 868 earnout shares pursuant to the triggering events in the merger agreement; (vii)
the issuance of up to 803 remaining registered shares of Class A Common Stock that FF may elect, in its sole discretion, to issue and
sell to YA II PN Ltd. (&ldquo;Yorkville&rdquo;) pursuant to the SEPA (as defined in Note 2,&nbsp;<I>Liquidity and Capital Resources and
Going Concern,&nbsp;</I>to the Notes to Consolidated Financial Statements) (FF currently does not have enough authorized and uncommitted
shares to access the SEPA); (viii) issuance of shares in connection with the ATM Program. Additionally, the Class A Common Stock is subject
to potential dilution upon the full conversion and exercise of the SPA Notes, SPA Warrants, Original Unsecured SPA Notes, Pre-existing
SPA Notes and Pre-existing SPA Warrants. The Class A Common Stock is also subject to potential dilution due to issuance of Common Stock
in connection with future equity and/or convertible debt financings. Sales of substantial numbers of such shares in the public market,
including the resale of the shares of Common Stock held by FF stockholders, could adversely affect the market price of the Class A Common
Stock, the impact of which is increased as the value of our stock price increases.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
issuance of additional shares of Common Stock, including upon full conversion of the principal amount of all outstanding notes and warrants
and/or the implementation of the full ratchet anti-dilution price protection in the notes and warrants would substantially dilute the
ownership interest of existing stockholders</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
shares of Class A Common Stock issuable upon full conversion and exercise of the SPA Notes, Pre-existing SPA Notes and the SPA Warrants
and Pre-existing SPA Warrants issued and issuable under the SPA and Pre-existing SPA, as amended, upon full conversion of the note issued
pursuant to Original Unsecured SPA, and upon full conversion and exercise of the Streeterville Note and the Streeterville Warrant will
result in significant additional dilution to the existing stockholders of FF. At a special meeting of FF stockholders held on November
3, 2022, FF stockholders approved (among other proposals) a proposal to approve, as is required by the applicable Nasdaq rules and regulations,
transactions involving notes and warrants issued to certain investors as committed under the SPA, the Joinder and the Third Amendment,
including the issuance of any shares in excess of 19.99% of the issued and outstanding shares of the Common Stock upon conversion of the
Pre-existing SPA Notes and exercise of the Pre-existing SPA Warrants. At a special meeting of FF stockholders held on March 30, 2023,
FF stockholders approved (among other proposals) a proposal to approve, as is required by the applicable Nasdaq rules and regulations,
additional transactions involving notes and warrants issued to certain investors as committed under the Sixth Amendment to the Pre-existing
SPA. At a special meeting of FF stockholders held on August 16, 2023, FF stockholders approved (among other proposals), as is required
by the applicable Nasdaq rules and regulations, additional transactions involving notes and warrants issued to MHL, V W Investment and
Senyun under the Original Unsecured SPA, as amended. At a special meeting of FF stockholders held on February 5, 2024, FF stockholders
approved (among other proposals), as is required by the applicable Nasdaq rules and regulations, additional transactions involving notes
and warrants issued to Streeterville Capital, LLC (&ldquo;Streeterville&rdquo;) under the Unsecured Streeterville SPA. To the extent the
Pre-existing SPA Notes, the Notes issued pursuant to notes issued pursuant to Original Unsecured SPA and the Streeterville Note are converted
and the Pre-existing SPA Warrants and the Streeterville Warrant are exercised, such conversions and exercises would have a significant
dilutive effect on the ownership interest of existing stockholders of FF.</P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
has granted preferential director nomination rights to certain investors which may cause FF to fall out of compliance with Nasdaq listing
rules.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
has been raising additional capital via debt or equity financings and expects to continue doing so in order to continue its operations.
See &ldquo;<I>Risk Factors &ndash; Risks Related to FF&rsquo;s Business and Industry &ndash; FF&nbsp;does not have sufficient liquidity
to pay its outstanding obligations and to operate its business and it will likely file for bankruptcy protection if it is unable to access&nbsp;additional
capital</I>.&rdquo; As discussed above, the sale of additional equity or convertible debt securities could result in further dilution
of the equity interests of our existing stockholders. Additionally, FF has entered into arrangements with certain of stockholders that
give them additional representation on the Board. Pursuant to the Amended Shareholder Agreement, FF Top has the right to nominate for
election to the Board four designees until the first date on which FF Top has ceased to beneficially own at least 88,890 shares of Common
Stock for at least 365 consecutive days, with such amount subject to adjustment in connection with any stock split, reverse stock split
or other similar corporate action after the date of the Amended Shareholder Agreement. Following the termination of FF Top&rsquo;s right
to nominate four designees, FF Top will continue to have the right to nominate a number of designees not less than the number equal to
the total number of directors on the Board, multiplied by the aggregate voting power of the shares of Common Stock and other securities
of FF generally entitled to vote in the election of directors of FF beneficially owned by FF Top and its affiliates, divided by the total
voting power of the then-outstanding shares of Common Stock issued as of the record date for any meeting of stockholders of FF at which
directors are to be elected, rounding up to the next whole director. Such right granted to FF Top or other similar rights granted to
other investors in the future may cause FF to fall out of compliance with certain of Nasdaq&rsquo;s listing rules, in particular Nasdaq
Rule 5640, which disallows the voting rights of existing stockholders to be disparately reduced through any corporate action or issuance,
and cause FF&rsquo;s Class A Common Stock to be delisted from Nasdaq.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF&rsquo;s
Amended and Restated Charter provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the
sole and exclusive forum for certain stockholder litigation matters, which could limit FF&rsquo;s stockholders&rsquo; ability to obtain
a chosen judicial forum for disputes with it or its directors, officers, employees or stockholders.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
Amended and Restated Charter requires to the fullest extent permitted by law, that derivative actions brought in our name, actions against
directors, officers and employees for breach of fiduciary duty and other similar actions may be brought in the Court of Chancery in the
State of Delaware or, if that court lacks subject matter jurisdiction, another federal or state court situated in the State of Delaware.
Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and
consented to the forum provisions in our certificate of incorporation. In addition, our Amended and Restated Charter provides that the
federal district courts of the United States will be the exclusive forum for the resolution of any complaint asserting a cause of action
under the&nbsp;Securities Act&nbsp;and the&nbsp;Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2020, the Delaware Supreme Court issued a decision in&nbsp;<I>Salzburg et al. v. Sciabacucchi</I>, which found that an exclusive
forum provision providing for claims under the&nbsp;Securities Act&nbsp;to be brought in federal court is facially valid under Delaware
law. It is unclear whether this decision will be appealed, or what the final outcome of this case will be. We intend to enforce this
provision, but we do not know whether courts in other jurisdictions will agree with this decision or enforce it.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
choice of forum provision may limit a stockholder&rsquo;s ability to bring a claim in a judicial forum of its choosing for disputes with
us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims. Alternatively,
if a court were to find the choice of forum provision contained in our Amended and Restated Charter to be inapplicable or unenforceable
in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm its business,
operating results and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Charter
documents and Delaware law could prevent a takeover that stockholders consider favorable and could also reduce the market price of the
Common Stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF&rsquo;s
Amended and Restated Charter and Amended and Restated Bylaws contain provisions that could delay or prevent a change in control of FF.
These provisions could also make it more difficult for stockholders to elect directors and take other corporate actions. These provisions
include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">authorizing
                                            the Board to issue preferred stock with voting or other rights or preferences that could
                                            discourage a takeover attempt or delay changes in control;</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prohibiting
                                            cumulative voting in the election of directors;</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">limiting
                                            the adoption, amendment or repeal of FF&rsquo;s Amended and Restated Bylaws or the repeal
                                            of the provisions of our Amended and Restated Charter regarding the election and removal
                                            of directors without the required approval of at least two-thirds of the shares entitled
                                            to vote at an election of directors;</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">prohibiting
                                            stockholder action by written consent; and</FONT></TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">limiting
                                            the persons who may call special meetings of stockholders.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">These
provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult
for stockholders to replace members of our Board, which is responsible for appointing the members of our management. In addition, the
provisions of Section 203 of the Delaware General Corporate Law (&ldquo;DGCL&rdquo;) govern FF. These provisions may prohibit large stockholders,
in particular those owning 15% or more of our outstanding voting stock, from merging or combining with FF for a certain period of time
without the consent of its Board. These and other provisions in our Amended and Restated Charter and Amended and Restated Bylaws and
under Delaware law could discourage potential takeover attempts, reduce the price investors might be willing to pay in the future for
shares of Class A Common Stock and result in the market price of Class A Common Stock being lower than it would be without these provisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Claims
for indemnification by FF&rsquo;s directors and officers may reduce its available funds to satisfy successful third-party claims against
it and may reduce the amount of money available to it.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Amended and Restated Charter and Amended and Restated Bylaws provide that we will indemnify our directors and officers, in each case
to the fullest extent permitted by Delaware law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, as permitted by Section 145 of the DGCL, our Amended and Restated Bylaws and our indemnification agreements that we entered
into with our directors and officers provide that:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            will indemnify our directors and officers for serving FF in those capacities or for serving
                                            other business enterprises at our request, to the fullest extent permitted by Delaware law.
                                            Delaware law provides that a corporation may indemnify such person if such person acted in
                                            good faith and in a manner such person reasonably believed to be in or not opposed to the
                                            best interests of the registrant and, with respect to any criminal proceeding, had no reasonable
                                            cause to believe such person&rsquo;s conduct was unlawful;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            may, in our discretion, indemnify employees and agents in those circumstances where indemnification
                                            is permitted by applicable law;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            will be required to advance expenses, as incurred, to our directors and officers in connection
                                            with defending a proceeding, except that such directors or officers will undertake to repay
                                            such advances if it is ultimately determined that such person is not entitled to indemnification;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            rights conferred in our Amended and Restated Bylaws are not exclusive, and we are authorized
                                            to enter into indemnification agreements with our directors, officers, employees and agents
                                            and to obtain insurance to indemnify such persons; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            may not retroactively amend provisions of our Amended and Restated Bylaws to reduce our indemnification
                                            obligations to directors, officers, employees and agents.&nbsp;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF&rsquo;s
dual-class structure may depress the trading price of the Class A Common Stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
cannot predict whether FF&rsquo;s dual-class structure will result in a lower or more volatile market price of the Class A Common Stock
or in adverse publicity or other adverse consequences. For example, certain index providers have announced restrictions on including
companies with multiple-class share structures in certain of their indexes. S&amp;P Dow Jones and FTSE Russell have announced changes
to their eligibility criteria for inclusion of shares of public companies on certain indices, including the S&amp;P 500, pursuant to
which companies with multiple classes of shares of common stock are excluded. In addition, several stockholder advisory firms have announced
their opposition to the use of multiple-class structures. As a result, the dual-class structure of the Common Stock may cause stockholder
advisory firms to publish negative commentary about FF&rsquo;s corporate governance practices or otherwise seek to cause us to change
our capital structure. Any such exclusion from indices or any actions or publications by stockholder advisory firms critical of our corporate
governance practices or capital structure could adversely affect the value and trading market of the Class A Common Stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
securities or industry analysts do not publish research or reports about FF&rsquo;s business or publish negative reports about its business,
its share price and trading volume could decline.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
trading market for our Class A Common Stock will depend on the research and reports that securities or industry analysts publish about
us or our business. If one or more of the analysts who cover FF downgrade our shares or change their opinion of our shares, our share
price would likely decline. If one or more of these analysts cease coverage of FF or fail to regularly publish reports on FF, we could
lose visibility in the financial markets, which could cause our share price or trading volume to decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>FF
has incurred and will continue to incur increased expenses and administrative burdens as a public company, which could have an adverse
effect on its business, financial condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the consummation of the Business Combination, FF has incurred and will continue to incur increased legal, accounting, administrative
and other costs and expenses as a public company that Legacy FF did not incur as a private company. The&nbsp;Sarbanes-Oxley Act&nbsp;,
including the requirements of Section 404, to the extent applicable to FF, as well as rules and regulations subsequently implemented
by the SEC, the&nbsp;Dodd-Frank Wall Street Reform and Consumer Protection Act&nbsp;of 2010 and the rules and regulations promulgated
and to be promulgated thereunder, the PCAOB and the securities exchanges, impose additional reporting and other obligations on public
companies. Compliance with public company requirements will increase costs and make certain activities more time consuming. Under a number
of those requirements, we have to carry out activities Legacy FF has not done previously. For example, FF has created committees of the
Board and adopted internal controls and disclosure controls and procedures. In addition, expenses associated with SEC reporting requirements
are incurred on a continuous basis. Furthermore, if any issues in complying with those requirements are identified (for example, if FF
identifies additional material weaknesses or significant deficiency in internal control over financial reporting), we would incur additional
costs rectifying those issues, and the existence of those issues could adversely affect our reputation or investor perceptions of it.
It may also be more expensive to obtain director and officer liability insurance. Risks associated with our status as a public company
may make it more difficult to attract and retain qualified persons to serve on our Board or as executive officers. The additional reporting
and other obligations imposed by these rules and regulations will increase legal and financial compliance costs and the costs of related
legal, accounting and administrative activities. These increased costs will require us to divert a significant amount of money that could
otherwise be used to expand the business and achieve strategic objectives. Advocacy efforts by stockholders and third parties may also
prompt additional changes in governance and reporting requirements, which could further increase costs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">Furthermore,
the need to establish the corporate infrastructure demanded of a public company may divert management&rsquo;s attention from implementing
our growth strategy, which could prevent us from improving our business, results of operations and financial condition. We have made,
and will continue to make, changes to our internal controls and procedures for financial reporting and accounting systems to meet our
reporting obligations as a publicly traded company. However, the measures we take may not be sufficient to satisfy our obligations as
a publicly traded company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">For
as long as we remain an &ldquo;emerging growth company&rdquo; as defined in the&nbsp;Jumpstart Our Business Startups Act of 2012 (the
&ldquo;JOBS Act&rdquo;), we may take advantage of certain exemptions from various reporting requirements that are applicable to other
public companies that are not &ldquo;emerging growth companies.&rdquo; See &ldquo;<I>The JOBS Act permits &ldquo;emerging growth companies&rdquo;
like FF to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not
emerging growth companies. The reduced reporting requirements applicable to us may make FF&rsquo;s shares of Common Stock less attractive
to investors</I>&rdquo; for more information. There is no guarantee that the exemptions available to us under the JOBS Act will result
in significant savings. To the extent we choose not to use exemptions from various reporting requirements under the&nbsp;JOBS Act, we
will incur additional compliance costs, which may impact earnings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>The&nbsp;JOBS Act&nbsp;permits
&ldquo;emerging growth companies&rdquo; like FF to take advantage of certain exemptions from various reporting requirements applicable
to other public companies that are not emerging growth companies. The reduced reporting requirements applicable to us may make FF&rsquo;s
shares of Common Stock less attractive to investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">FF
qualifies as an &ldquo;emerging growth company&rdquo; as defined in Section 2(a)(19) of the Securities Act, as modified by the&nbsp;JOBS
Act. As such, FF is eligible for and intends to take advantage of certain exemptions from various reporting requirements applicable to
other public companies that are not emerging growth companies for as long as it continues to be an emerging growth company, including,
but not limited to, (a) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act,
(b) reduced disclosure obligations regarding executive compensation in FF&rsquo;s periodic reports and proxy statements and (c) exemptions
from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute
payments not previously approved. As a result, FF&rsquo;s stockholders may not have access to certain information they may deem important.
FF will remain an emerging growth company until the earliest of (i) the last day of our fiscal year following July 24, 2025 (the fifth
anniversary of the consummation of PSAC&rsquo;s initial public offering), (ii) the last day of the fiscal year in which the market value
of FF&rsquo;s shares of Common Stock that are held by non-affiliates exceeds $700.0&nbsp;million as of June 30 of that fiscal year, (iii)
the last day of the fiscal year in which we have total annual gross revenue of $1.235&nbsp;billion or more during such fiscal year (as
indexed for inflation) or (iv) the date on which we have issued more than $1.0&nbsp;billion in non-convertible debt in the prior three-year
period. We cannot predict whether investors will find FF&rsquo;s securities less attractive because it will rely on these exemptions.
If some investors find FF&rsquo;s securities less attractive as a result of its reliance on these exemptions, the trading prices of FF&rsquo;s
securities may be lower than they otherwise would be, there may be a less active trading market for FF&rsquo;s securities and the trading
prices of FF&rsquo;s securities may be more volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a&nbsp;Securities Act&nbsp;registration statement declared effective
or do not have a class of securities registered under the&nbsp;Exchange Act) are required to comply with the new or revised financial
accounting standards. The&nbsp;JOBS Act&nbsp;provides that a company can elect to opt out of the extended transition period and comply
with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected
not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application
dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of FF&rsquo;s financial statements with another public company which is neither
an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible
because of the potential differences in accounting standards used. We cannot predict if investors will find our shares of Common Stock
less attractive because we will rely on these exemptions. If some investors find our shares of Common Stock less attractive as a result,
there may be a less active market for our shares of Common Stock and our share price may be more volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>If FF has not fully
developed and implemented all required accounting practices and policies and has been unable to provide the financial information required
of a U.S. publicly traded company in a timely and reliable manner.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">We
have failed to develop and maintain effective internal controls and procedures and disclosure procedures and controls, we have been unable
to provide financial information and required SEC reports that a U.S. publicly traded company is required to provide in a timely and reliable
fashion. Any such delays or deficiencies could penalize us, including by limiting our ability to obtain financing, either in the public
capital markets or from private sources and hurt our reputation and could thereby impede our ability to implement our growth strategy.
The delay in filing the 2023 Form 10-K has resulted in our failure to meet the requirements for listing of our shares of Common Stock
on Nasdaq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="e_001"></A><B>SELECTED HISTORICAL FINANCIAL DATA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt">On August 16, 2024, we effected
a 1-for-40 reverse stock split of our common stock. The following selected historical financial data was derived from our historical financial
statements that have been incorporated by reference into this prospectus, and recasts certain portions of such financial statements to
give effect to the reverse stock split. No other changes to our historical financial statements were made in recasting the amounts set
forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD><B>Consolidated Statements of Operations Data</B></TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Years Ended December 31,</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid">(in thousands, except shares)</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%">Revenue</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">784</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">-</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cost of revenues</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">42,607</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gross loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(41,823</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total operating expenses</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">244,231</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">437,144</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss before income taxes</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(431,635</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(602,178</TD>
    <TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net Loss</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(431,744</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(602,239</TD>
    <TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Per share information</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net loss per share of Class A and B Stock attributable to common stockholders:</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Basic</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(1,792.44</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(15,742.34</TD>
    <TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Diluted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(1,792.44</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">(15,742.34</TD>
    <TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Weighted average common shares used in computing net loss per share of Class A and Class B Common Stock <SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Basic</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">240,869</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,256</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Diluted</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">240,869</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">38,256</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended<BR>
 March 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 76%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Cost of revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,687</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Gross loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,685</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,923</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">95,484</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(48,217</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(144,973</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(48,217</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(144,973</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Per share information</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Net loss per share of Class A and B Stock attributable to common stockholders:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(26.23</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,928.76</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(26.23</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,928.76</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Weighted average common shares used in computing net loss per share of Class A and Class B Common Stock <SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,837,959</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,164</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,837,959</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,164</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 52%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">293</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">295</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">Cost of revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,970</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,613</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">41,657</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,613</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,677</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,613</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,362</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,613</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,932</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">49,366</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,855</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,214</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(108,681</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(124,900</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(156,898</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(269,873</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(108,685</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(124,928</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(156,902</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(269,901</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold">Per share information</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Net loss per share of Class A and B Common Stock attributable to common stockholders:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12.38</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,002.03</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(29.41</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,688.44</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(12.38</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,002.03</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(29.41</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,688.44</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Weighted average shares used in computing net loss per share of Class A and Class B Common Stock <SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,778,201</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,675</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,334,381</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,393</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.25in">Diluted</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,778,201</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">124,675</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,334,381</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,393</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Adjusted to give effect to
1-for-40 reverse stock split that became effective on August 16, 2024.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><B>Consolidated Balance Sheet Data</B></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>December&nbsp;31,</B></FONT></TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>December&nbsp;31,</B></FONT></TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid">(in thousands, except shares)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Total current assets</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">91,364</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">84,526</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">530,539</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">529,288</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total current liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">261,176</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">268,245</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">302,303</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">328,296</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Class A Common Stock, $0.0001&nbsp;par value;&nbsp;99,815,625 and 99,815,625
shares authorized;&nbsp;1,060,833&nbsp;and&nbsp;58,682&nbsp;shares issued and outstanding as of December 31, 2023 and 2022, respectively<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Class B Common Stock, $0.0001&nbsp;par value;&nbsp;4,429,688 and 4,429,688
shares authorized;&nbsp;6,667&nbsp;and&nbsp;6,667&nbsp;shares issued and outstanding as of December 31, 2023 and 2022, respectively<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-size: 10pt">Preferred Stock, $0.0001&nbsp;par value,&nbsp;10,000,000 shares authorized;&nbsp;zero&nbsp;shares
issued and outstanding as of December 31, 2023 and 2022, respectively<SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,180,873</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,724,242</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accumulated other comprehensive gain</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,862</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,505</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accumulated deficit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,958,499</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,526,755</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">228,236</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">200,992</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total liabilities and stockholders&rsquo; equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">530,539</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">529,288</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>March 31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>December&nbsp;31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>2024</B> <B></B></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>(Unaudited)</B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Total current assets</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">82,736</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">91,364</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">499,941</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">530,539</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total current liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">256,990</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">261,176</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">298,422</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">302,303</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Class A Common Stock, $0.0001&nbsp;par value;&nbsp;99,815,625 and 99,815,625
shares authorized;&nbsp;11,031,625&nbsp;and&nbsp;1,060,833&nbsp;shares issued and outstanding as of March 31, 2024 and December 31, 2023,
respectively<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Class B Common Stock, $0.0001&nbsp;par value;&nbsp;4,429,688 and 4,429,688
shares authorized;&nbsp;6,667&nbsp;and&nbsp;6,667&nbsp;shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-size: 10pt">Preferred Stock, $0.0001&nbsp;par value,&nbsp;10,000,00 shares authorized;&nbsp;10,000,000&nbsp;shares
issued and outstanding as of March 31, 2024 and December 31, 2023, respectively<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Additional paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,202,141</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,180,873</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accumulated other comprehensive gain</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,094</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,862</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accumulated deficit</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,006,716</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,958,499</TD>
    <TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total stockholders&rsquo; equity</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">201,519</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">228,236</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total liabilities and stockholders&rsquo; equity</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">499,941</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">530,539</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">June 30,</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-size: 10pt"><B>December&nbsp;31,</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><B>2024</B> <B></B></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center"><B>(Unaudited)</B></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; width: 76%; text-align: left">Total current assets</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">70,071</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">91,364</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total assets</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">457,888</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">530,539</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Total current liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">268,161</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">261,176</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total liabilities</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">309,206</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">302,303</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Class A Common Stock, $0.0001&nbsp;par value;&nbsp;99,815,625 and 99,815,625
shares authorized;&nbsp;11,031,625&nbsp;and&nbsp;1,060,833&nbsp;shares issued and outstanding as of June 30, 2024 and December 31, 2023,
respectively<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left"><FONT STYLE="font-size: 10pt">Class B Common Stock, $0.0001&nbsp;par value;&nbsp;4,429,688 and 4,429,688
shares authorized;&nbsp;6,667&nbsp;and&nbsp;6,667&nbsp;shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-size: 10pt">Preferred Stock, $0.0001&nbsp;par value,&nbsp;10,000,000 shares authorized;&nbsp;10,000,000
and zero&nbsp;shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively<SUP>(1)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">-</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Additional paid-in capital</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,257,356</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4,180,873</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accumulated other comprehensive gain</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">6,726</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">5,862</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; text-align: left">Accumulated deficit</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(4,115,401</TD>
    <TD STYLE="text-align: left">)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">(3,958,499</TD>
    <TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total stockholders&rsquo; equity</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">148,682</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">228,236</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: bold; text-align: left">Total liabilities and stockholders&rsquo; equity</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">457,888</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">530,539</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Adjusted to give effect to
1-for-40 reverse stock split that became effective on August 16, 2024.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_005"></A>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All of the Class A Common
Stock offered by the Selling Securityholders pursuant to this prospectus will be sold by the Selling Securityholders for their respective
accounts. The Company will not receive any of the proceeds from these sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Selling Securityholders
will pay any underwriting fees, discounts and selling commissions incurred by such Selling Securityholders in disposing of their Class
A Common Stock. Pursuant to a registration rights agreement entered into by FFIE and certain stockholders of FFIE, FFIE will bear all
other costs, fees and expenses incurred in effecting the registration of the Class A Common Stock covered by this prospectus, including,
without limitation, all registration and filing fees, Nasdaq listing fees and fees and expenses of counsel and independent registered
public accountants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_006"></A>DETERMINATION OF OFFERING PRICE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The offering price of the
shares of the Class A Common Stock underlying the SPA Notes, SPA Warrants and PA Warrants offered hereby is determined by reference to
the conversion and exercise prices of the SPA Notes, SPA Warrants and PA Warrants, respectively, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We cannot currently determine
the price or prices at which shares of Class A Common Stock may be sold by the Selling Securityholders under this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_007"></A>MARKET INFORMATION FOR CLASS A COMMON STOCK
AND DIVIDEND POLICY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Market Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our shares of Class A Common
Stock and Public Warrants are currently listed on Nasdaq under the symbols &ldquo;FFIE&rdquo; and &ldquo;FFIEW,&rdquo; respectively. Prior
to the consummation of the Business Combination, our Common Stock and Public Warrants were listed on Nasdaq under the symbols &ldquo;PSAC&rdquo;
and &ldquo;PSACW,&rdquo; respectively. As of October 28, 2024, there were 442 holders of record of our Class A Common Stock, one holder
of our Class B Common Stock, three holder of record of our Public Warrants, and one holder of warrants included in the private units purchased
in connection with the initial public offering of PSAC (&ldquo;Private Warrants&rdquo;).</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividend Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have not paid any cash
dividends on our Class A Common Stock or the warrants to date. Our Board may from time to time consider whether or not to institute a
dividend policy. It is our present intention to retain any earnings for use in our business operations and accordingly, we do not anticipate
our Board declaring any dividends in the foreseeable future. The payment of cash dividends in the future will be dependent upon our revenues
and earnings, if any, capital requirements and general financial condition. The payment of any cash dividends will be within the discretion
of our Board. Further, our ability to declare dividends will also be limited by restrictive covenants contained in our debt agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Securities Authorized for Issuance Under Equity Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><I>2021 Stock Incentive Plan
(&ldquo;2021 SI Plan&rdquo;)</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">In
July 2021, the Company adopted the 2021 SI Plan. The 2021 SI Plan allows the Board to grant incentive and nonqualified stock options,
restricted shares, unrestricted shares, restricted share units, and other stock-based awards for Class A Common Stock to employees, directors,
and non-employees. At the special meeting held on August 16, 2023, the Company&rsquo;s stockholders approved (among other proposals) an
amendment to the 2021 SI Plan to increase the number of shares of Class&nbsp;A&nbsp;Common Stock available for issuance under the 2021
SI Plan by an additional&nbsp;861,608&nbsp;shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">As
a result of the February 2024 Reverse Stock Split on March 1, 2024, the number of shares of Class A Common Stock reserved for issuance
under the 2021 SI Plan, the Company&rsquo;s Equity Incentive Plan, and the Company&rsquo;s Special Talent Incentive Plan (the &ldquo;Plans&rdquo;),
as well as the number of shares subject to the then-outstanding awards under each of the Plans, were proportionately adjusted, using the
1-for-3 ratio, rounded down to the nearest whole share. In addition, the exercise price of the then-outstanding stock options under each
of the Plans was proportionately adjusted, using the 1-for-3 ratio, rounded up to the nearest whole cent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">As of June 30, 2024 and December&nbsp;31,
2023, the Company had&nbsp;64,673&nbsp;and&nbsp;26,678 shares of Class A Common Stock available for future issuance under its 2021 SI
Plan after giving effect to the 1-for-40 reverse stock split<FONT STYLE="background-color: white">..</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">At
the annual meeting of stockholders held on July 31, 2024, the Company&rsquo;s stockholders approved (among other proposals) an amendment
to the 2021 SI Plan to increase the number of shares of Class A Common Stock available for issuance under the 2021 SI Plan by an additional&nbsp;</FONT>2.2
million<FONT STYLE="background-color: white">&nbsp;shares, </FONT>after giving effect to the 1-for-40 reverse stock split<FONT STYLE="background-color: white">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><I>SOP/SOD
Incentive Plan</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">On
February 23, 2023, the Board approved the Company&rsquo;s SOP/SOD Incentive Plan (&ldquo;Incentive Plan&rdquo;) granting: (i) cash bonuses
to all active employees of the Company that began employment at the Company prior to December 31, 2022 upon the commencement of the start
of production of the Company&rsquo;s FF 91 Futurist on or prior to March 31, 2023 and (ii) cash bonuses and equity incentive awards to
all active employees of the Company that began employment at the Company prior to December 31, 2022 upon the commencement of the start
of delivery of the Company&rsquo;s FF 91 Futurist on or prior to April 30, 2023 (&ldquo;Delivery Condition&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">On
August 17, 2023, the Board approved an amendment to the Incentive Plan (&ldquo;Incentive Plan Amendment&rdquo;) to reflect the updated
timing of the previously announced FF 91 2.0 Futurist Alliance phase two of its Delivery Plan from the end of April 2023 to the end of
the second quarter 2023 and subsequently to August 2023. The Incentive Plan Amendment is available to all active employees of the Company
that began employment at the Company prior to July 1, 2023 and reduced the cash bonuses and milestone based restricted stock units (&ldquo;RSUs&rdquo;)
by&nbsp;10% for the internal Company sign-off on requirements to commence phase two of the Company&rsquo;s Delivery Plan on or prior to
July 31, 2023 (&ldquo;New Delivery Condition&rdquo;). Pursuant to the Incentive Plan Amendment, RSU awards will be granted after the Company
has sufficient additional shares available for such issuance (&ldquo;Share Issuance Condition&rdquo;) and cash bonuses will be paid once
the Company has received an additional $15.0&nbsp;million in financings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">The
Incentive Plan Amendment includes the grant of RSUs to certain executive officers of the Company upon the Company&rsquo;s satisfaction
of the New Delivery Condition and the Share Issuance Condition with a grant date fair market value of approximately $8.0&nbsp;million,
subject to vesting in&nbsp;three&nbsp;annual installments on the first&nbsp;three&nbsp;anniversaries of the grant date, generally subject
to the applicable executive&rsquo;s continuous employment through each applicable vesting date. In addition, subject to the Share Issuance
Condition, upon the satisfaction of the New Delivery Condition and continuing for an&nbsp;eight-year&nbsp;period, certain executive officers
will annually receive a grant of fully-vested RSUs with a grant date fair market value of $0.8&nbsp;million, subject to their continued
employment through each grant date of the award.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">During
the three and six months ended June 30, 2024, the Company recognized a reduction of $1.3&nbsp;million and $1.1&nbsp;million of cash bonus
expense under the Incentive Plan, respectively. As a result of the Share Issuance Condition not yet being met, no RSUs have been granted
under the Incentive Plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="background-color: white">During
the six months ended </FONT>June 30<FONT STYLE="background-color: white">, 2024, the Company granted 763,889&nbsp;RSUs, which had a weighted-average
grant date fair value of $0.19&nbsp;per share. As of June&nbsp;30, 2024, the total remaining stock-based compensation expense for unvested
RSUs was $0.4&nbsp;million, which is expected to be recognized over a weighted-average period of&nbsp;0.72&nbsp;years.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition to the above, the Company granted 1,524,879 RSUs in September of 2024, with a weighted average grant date fair value of $3.99.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_008"></A>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF<BR>
FINANCIAL CONDITION AND RESULTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>The following discussion
and analysis is intended to help the reader understand FF&rsquo;s results of operations and financial condition. This discussion and analysis
is provided as a supplement to, and should be read in conjunction with, FF&rsquo;s audited consolidated financial statements and FF&rsquo;s
unaudited condensed consolidated financial statements and notes thereto included elsewhere in this prospectus. Some of the information
contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to FF&rsquo;s
plans and strategy for FF&rsquo;s business, includes forward-looking statements that involve risks and uncertainties. FF&rsquo;s actual
results may differ materially from management&rsquo;s expectations as a result of various factors, including but not limited to those
discussed in the sections entitled &ldquo;Risk Factors&rdquo; and &ldquo;Cautionary Note Regarding Forward-Looking Statements.&rdquo;
The objective of this section is to provide investors an understanding of the financial drivers and levers in FF&rsquo;s business and
describe the financial performance of the business.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Availability of Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">We
make available through our company website, free of charge, our company filings with the Securities and Exchange Commission (the &ldquo;SEC&rdquo;)
as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC. The reports we make available include
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, registration statements, and
any amendments to those documents. The website link to our SEC filings is investors.ff.com/financial-information/sec-filings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">We
intend to use press releases, our Investor Relations website, investor.ff.com, and certain social media accounts as a means of disclosing
information and observations about the Company and its business that may be of interest or material to our investors, material, non-public
information, and for complying with our disclosure obligations under Regulation FD: Instagram, Facebook, X, LinkedIn, YouTube, FF App,
WeChat, Weibo, Toutiao, Douyin, and Futu. The information and observations we post through these social media channels may be deemed material.
Accordingly, investors should monitor the Investor Relations website and these social media channels, in addition to following our press
releases, filings with the SEC, public conference calls, presentations, and webcasts. The social media channels that we intend to use
as a means of disclosing the information described above may be updated from time to time. The information contained on, or that may be
accessed through, our website or social media channels, is not incorporated by reference into, and is not a part of, this Report or any
other report or document filed with the SEC. Any reference to our website in this Report is intended to be an inactive textual reference
only.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">The
Company is a California-based, global, shared, intelligent, mobility ecosystem company is a global, shared, intelligent, mobility ecosystem
company with a vision to disrupt the automotive industry.. The Company is a holding company incorporated in the State of Delaware on February
11, 2020, conducts its operations through the subsidiaries of FF Intelligent Mobility Global Holdings Ltd. (&ldquo;Legacy FF&rdquo;),
which was founded in 2014 and is headquartered in Los Angeles, California. Our Class A Common Stock and Public Warrants trade on The Nasdaq
Capital Market (&ldquo;Nasdaq&rdquo;) under the ticker symbols &ldquo;FFIE&rdquo; and &ldquo;FFIEW,&rdquo; respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">FF
designs and engineers next-generation intelligent, connected, electric vehicles. We manufacture vehicles at our production facility in
Hanford, California (the &ldquo;FF ieFactory California&rdquo;), with additional future production capacity needs addressed through a
contract manufacturing agreement with Myoung Shin Co., Ltd. (&ldquo;Myoung Shin&rdquo;), an automotive manufacturer headquartered in South
Korea. We have additional engineering, sales, and operational capabilities in China and are exploring opportunities for potential manufacturing
capabilities in China through a joint venture or other arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Since
our founding, we have created major innovations in technology, products, and a user-centered business model. We believe these innovations
will enable us to set new standards in luxury and performance that will redefine the future of intelligent mobility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">We
believe the following combination of capabilities of our products, technology, the upgrade to FF Product and Technology Upgrade Generation
2.0 (PT Gen 2.0), team, and business model distinguish us from our competitors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">We have designed and developed a breakthrough mobility platform&#8239;&mdash; our proprietary Variable
Platform Architecture (&ldquo;VPA&rdquo;).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our propulsion system provides a competitive edge in acceleration and range, enabled by an expected industry-leading
inverter design, and propulsion system.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our advanced Internet Artificial Intelligence (&ldquo;I.A.I.&rdquo;) technology offers high-performance
computing, high speed internet connectivity, Over-the-Air (&ldquo;OTA&rdquo;) updating, an open ecosystem for third-party application
integration, and an advanced autonomous driving-ready system, in addition to several other proprietary innovations that enable us to build
an advanced, highly-personalized user experience.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Since inception, we have developed a portfolio of intellectual property, established our supply chain,
and assembled a global team of automotive and technology experts and innovators to achieve our goal of redefining the future of the automotive
industry. As of June&nbsp;30, 2024, we have been granted approximately 660 patents globally.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">We believe that the FF 91 Futurist (the &ldquo;FF 91,&rdquo; &ldquo;FF 91 Futurist,&rdquo; or &ldquo;FF
91 2.0 Futurist Alliance&rdquo;) is the first ultra-luxury electric vehicle to offer a highly-personalized, fully-connected user experience
for driver and passengers. We started production on the first FF 91 Futurist and delivered the first FF 91 2.0 Futurist Alliance in 2023.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Our planned B2C passenger vehicle pipeline includes the FF91 series, the FF81 series, and the FF71 series.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Subject to future financing, we plan to produce and deliver our second passenger vehicle, the FF 81, which
is expected to be designed to be a premium, mass-market electric vehicle positioned to compete against the Tesla Model S, Tesla Model
X, the BMW 5-series, the Range Rover Sport and similar vehicles.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Subject to future financing, we plan to develop a mass-market passenger vehicle, the FF 71. We expect
to start production and deliveries of the FF 71 subsequent to production and deliveries of the FF 81. The FF 71 is expected to be designed
to integrate full connectivity and advanced technology into a smaller vehicle size and is positioned to compete with vehicles such as
the Tesla Model 3, Tesla Model Y, and the BMW 3-series.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Subject to future financing, we plan to develop a Smart Last Mile Delivery (&ldquo;SLMD&rdquo;) vehicle
to address the high-growth, last-mile delivery opportunity, particularly in Europe, China and the U.S. Our modular VPA facilitates entry
into the last-mile delivery segment, allowing us to expand our total addressable market and avenues of growth.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">We have updated our corporate strategy to include a China-U.S. Automotive Bridge Strategy (the &ldquo;Bridge
Strategy&rdquo;). The Bridge Strategy marks a return to our earlier two-brand strategy, which seeks to distinguish between the spire segment
(FF brand) and mass market segment (second brand) of the EV industry. We intend to seek to establish a second mass market-focused brand
by working with one or more China-based OEMs and parts suppliers (&ldquo;Bridge Strategy Partners&rdquo;) and to procure quasi-complete
components and parts that we would enhance by adding AI and Vehicle Software technology and product R&amp;D found in our flagship FF 91
brand. This could create a compelling value proposition to consumers in the AI EV mass-market, which is a market that currently has limited
offerings. Via the Bridge Strategy, there is the potential to materially accelerate the production timeline for a mass-market AI EV. While
the mechanical platform of the mass-market product would be from Bridge Strategy Partners, we intend to seek to utilize a component mix
sufficient to reach part level duty by fulfilling the criteria for part supplier and manufacturing requirement. For a discussion of material
risks relating to the Bridge Strategy, please see Part II, Item 1A., Risk Factors &ndash; &ldquo;Our latest business strategy, which we
refer to as the Bridge Strategy, is subject to numerous risks and uncertainties&rdquo; in the Q1 2024 10-Q.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">All
FF vehicles are expected to be available for sale in the U.S., China and the Middle East, with potential expansion to European markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Emerging Growth Company Status</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">Section
102(b)(1) of the Jumpstart Our Business Startups Act (the &ldquo;JOBS Act&rdquo;) exempts emerging growth companies from being required
to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply
with the requirements that apply to non-emerging growth companies. Any such election to not take advantage of the extended transition
period is irrevocable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">We
are an &ldquo;emerging growth company&rdquo; as defined in Section 2(a) of the Securities Act and have elected to take advantage of the
benefits of the extended transition period for new or revised financial accounting standards. We expect to continue to take advantage
of the benefits of the extended transition period, although we may decide to early adopt such new or revised accounting standards to the
extent permitted by such standards. This may make it difficult or impossible to compare our financial results with the financial results
of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage
of the extended transition period exemptions because of the potential differences in accounting standards used.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Segment Information</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">On
February 26, 2023, after an assessment by the Board of Directors of the Company&rsquo;s management structure, the Board approved our Chief
Product and User Ecosystem Officer (Mr. Yueting Jia, who is also FF&rsquo;s founder) reporting directly to the Board. In addition, the
Board approved our product, mobility ecosystem, I.A.I., and advanced research and development (&ldquo;R&amp;D&rdquo;) technology departments
reporting directly to the Chief Product and User Ecosystem Officer. The Board also approved our user ecosystem, capital markets, human
resources and administration, corporate strategy and China departments reporting to both the Chief Product and User Ecosystem Officer
and the Global Chief Executive Officer, subject to processes and controls to be determined by the Board after consultation with our management.
Based on his responsibilities within the Company, the Board determined that Mr. Jia is an &ldquo;officer&rdquo; of the Company within
the meaning of Section 16 of the Exchange Act and an &ldquo;executive officer&rdquo; of the Company under Rule 3b-7 under the Exchange
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">We
have determined that our co-Chief Operating Decision Makers (&ldquo;co-CODMs&rdquo;) are both our Global CEO and our Chief Product and
User Ecosystem Officer. We have determined that we operate in one operating segment and one reportable segment, as the co-CODMs review
financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating
financial performance. Substantially all of our consolidated operating activities, including our long-lived assets, are located within
the United States. Given our early-revenue operating stage, we currently have no concentration exposure to products, services or customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recent Developments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">During the three months ended June&nbsp;30, 2024, these additional milestones and events took place:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">As of April 1, 2024, we completed our voluntary recall in the United States through an OTA software update.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">We announced, on April 9, 2024, the establishment of a Middle Eastern sales entity in Dubai, U.A.E.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">On April 22, 2024, we announced Werner Wilhelm as Executive Launch Director.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">On May 29, 2024, we announced plans to share the details of the Bridge Strategy in the following months.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">In June 2024, we determined that the previously announced future FF 91 Alliance Edition users, Rem D Koolhaas
and Emma Hernan, would not complete the acquisition of their respective FF cars, due to personal reasons.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">In
the period subsequent to June&nbsp;30, 2024, these additional milestones and events took place:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">On July 20, 2024, we held an interactive investor Community Day at our Los Angeles headquarters.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">In July 2024, we unveiled our innovative Bridge Strategy, making a return to a two-brand approach.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Recent Governance
Developments</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">On June 9, 2024, Li Han resigned as a director of the Company for personal reasons. Ms. Han also served
as a member of the Nominating and Corporate Governance Committee.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">On July 31, 2024, we announced the passage of each of the proposals presented at the annual meeting of
stockholders, including the re-election of all members of the Board.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">On April 18, 2024, Nasdaq notified us that since we had not yet filed our Form 10-K for the year ended
December 31, 2023, we no longer complied with Listing Rule 5250(c)(1). Pursuant to Listing Rule 5810(c)(2)(A), this deficiency was a basis
for delisting (in addition to our failure to maintain a minimum bid price of at least $1.00 per share for the prior 30-consecutive-trading-day
period from November 9, 2023 to December 27, 2023, as previously disclosed). We requested and were granted a hearing from the Nasdaq Hearings
Panel. On June 26, 2024, Nasdaq notified us that the Nasdaq Hearings Panel had granted our request for continued listing on Nasdaq subject
to our compliance with the periodic reporting requirement by July 31, 2024, and the minimum bid price requirement by August 31, 2024.
We met the periodic reporting compliance requirement by filing our Q1 2024 Form 10-Q on July 30, 2024.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="background-color: white"><I>Recent
Financing Developments</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Palantir Settlement</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in; background-color: white">In
July 2021, the Company and Palantir entered into a MSA that sets froth the terms of the Palantir&rsquo;s platform hosting arrangement,
which was expected to be used as a central operating system for data and analytics. On April 26, 2023, the Company received a letter from
Palantir providing a notice of dispute regarding the Company&rsquo;s alleged material breach of the MSA. The letter asserted that the
Company had not paid invoices totaling $12.3 million of past due fees. On July 7, 2023, Palantir filed a Demand for Arbitration against
the Company with Judicial Arbitration and Mediations Services, Inc., regarding a dispute between Palantir and the Company over the MSA.
Palantir alleged that the Company had refused to make payments under the MSA. Palantir asserted claims for: (i) breach of contract; (ii)
breach of the covenant of good faith and fair dealing; and (iii) unjust enrichment. Palantir alleged that the amount in controversy was
$41.5 million. On August 4, 2023, the Company submitted its response to Palantir&rsquo;s arbitration demand. The Company&rsquo;s response
included both affirmative defenses and a general denial of all allegations in Palantir&rsquo;s arbitration demand. On March 11, 2024,
the Company and Palantir executed a Settlement and Release Agreement in order to terminate the MSA and resolve the disputes. The Company
agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late payments. This settlement includes mutual
waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and Palantir entered into an amendment to the
Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.75 million in cash, the Company agreed to issue
Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A Common Stock by October 1, 2024. The
August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><I>Waiver Agreement</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
August 2, 2024, the Company entered into that certain Waiver Agreement with certain investors (each, a &ldquo;Holder&rdquo; and, collectively,
the &ldquo;Holders&rdquo;), who (a) beneficially own and hold one or more of the following securities of the Company: (i) certain secured
convertible notes of the Company (including any secured convertible notes issued in exchange therefor, collectively, the &ldquo;Pre-existing
SPA Notes&rdquo;) that were issued pursuant to that certain Securities Purchase Agreement, dated as of August 14, 2022 (as amended, supplemented
or otherwise modified from time to time, the &ldquo;Pre-existing SPA&rdquo;), and (ii) certain unsecured convertible notes of the Company
(including any unsecured convertible notes issued in exchange therefore, collectively, the &ldquo;Original Unsecured Notes&rdquo;, and
together with the Pre-existing SPA Notes, the &ldquo;Original Notes&rdquo;) that were issued pursuant to that certain Securities Purchase
Agreement, dated as of May 8, 2023 (as amended, supplemented or otherwise modified from time to time, the &ldquo;Original Unsecured SPA&rdquo;)
and (b) have the right to acquire one or more of: (i) certain additional secured convertible notes issuable in accordance with the terms
to the Pre-existing SPA (the &ldquo;Additional Secured Notes&rdquo;) and (ii) certain additional unsecured convertible notes (the &ldquo;Additional
Unsecured Notes&rdquo;, and together with the Additional Secured Notes, the &ldquo;Additional Notes&rdquo;, and together with the Original
Notes, the &ldquo;Original SPA Notes&rdquo;), issuable pursuant to the Unsecured SPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Prior
to the Waiver Agreement, the Company had certain obligations under the Pre-existing SPA Notes to pay accrued and unpaid interest and a
make-whole amount of additional interest (the &ldquo;Make-Whole Amount&rdquo;) in cash in connection with conversions of such Original
SPA Notes . In an effort to reduce the Company&rsquo;s ongoing cash obligations pursuant to such Original SPA Notes and to encourage the
continued conversion of the Original SPA Notes into shares of Common Stock, the Company has agreed to make certain voluntary adjustments
to the Original SPA Notes as described below. Pursuant to the Waiver Agreement, the Company irrevocably agreed that with respect to each
conversion of any Original SPA Notes on or after the effective date of the Waiver Agreement, if the Holder delivers a conversion notice
to the Company at a time that 90% of the VWAP (as defined in the Original SPA Notes ) of the Company&rsquo;s common stock as of the trading
day ended immediately prior to the time at which such Notice of Conversion is delivered to the Company is less than the conversion price
then in effect pursuant to the applicable Pre-existing SPA Notes, the Company shall voluntary reduce the conversion price solely with
respect to such portion of such Original SPA Notes to be converted in accordance with such notice of conversion (and not with respect
to any other portion of such Pre-existing SPA Notes) to such Adjustment Price (the &ldquo;<B>Voluntary Adjustment</B>&rdquo;). The Company
also agreed, in exchange for the Holder&rsquo;s waiver of any accrued and unpaid interest (if any, as of such conversion date) (an &ldquo;<B>Interim
Interest Waiver</B>&rdquo;) with respect to such aggregate principal of such Original SPA Notes to be converted pursuant to such applicable
Notice of Conversion (the &ldquo;<B>Full Voluntary Adjustment</B>&rdquo;), to (i) further reduce such Adjustment Price in respect of a
Voluntary Adjustment (as adjusted, each a &ldquo;<B>Full Adjustment Price</B>&rdquo;); and (ii) issue a number of shares of the Company&rsquo;s
common stock to the Holder such that the aggregate number of shares of common stock to be issued to the Holder in such conversion at such
Full Adjustment Price equals the quotient of (x) the sum of (i) such aggregate principal of such Original SPA Notes to be converted pursuant
to such applicable notice of conversion and (ii) any accrued and unpaid interest thereon, divided by (y) such Adjustment Price prior to
any Interim Interest Waiver. Such Full Voluntary Adjustment shall be applicable until the fifth (5th) business day after the Company delivers
written notice to the Holder electing to revoke such election.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Pursuant
to the Waiver Agreement, the Holder irrevocably agreed that instead of receiving the accrued and unpaid interest, each holder of any such
applicable Original SPA Notes shall receive upon conversion of such Original SPA Notes an amount in cash equal to all accrued and unpaid
interest on such Original SPA Notes to such date of conversion (or such cash amount shall be deemed satisfied in full without any payment
of cash by the Company if the Company effects a Full Voluntary Adjustment with respect to the applicable notice of conversion) with respect
to the applicable notice of conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Further
pursuant to the Waiver Agreement, a Holder&rsquo;s right to purchase any Additional Notes in any agreement with the Company (including,
without limitation, the Pre-existing SPA and/or the Original Unsecured SPA, as applicable) shall be extended until the first (1<SUP>st</SUP>)
anniversary of the effective date of the Waiver Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><I>New Securities Purchase Agreement and its Related Financing Documents.</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 27pt; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
September 5, 2024, the Company entered into the SPA with certain institutional investors as purchasers (the &ldquo;Investors&rdquo;).
Pursuant to the SPA, the Company has agreed to sell, and the Investors have agreed to purchase, for approximately $30 million, of which
approximately $22.5 million will be paid in cash and approximately $7.5 million will be converted from a previous loan to the Company,
certain Secured Notes, Warrants and Incremental Warrants in two closings. The initial closing occurred on September 12, 2024 and the subsequent
closing occurred on September 30, 2024. Capitalized terms used herein and not otherwise defined shall have the respective meanings set
forth in the Secured Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Secured Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Maturity Date; Interest.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Pursuant
to the Secured Notes, interest shall commence accruing on the date thereof at the interest rate of 10% per annum (the &ldquo;Interest
Rate&rdquo;) and shall be computed on the basis of a 360-day year and twelve 30-day months and shall be payable on a Conversion Date with
respect to the Conversion Amount being converted on such Conversion Date, with any remaining accrued and unpaid Interest payable on the
fifth anniversary of the issuance date thereof (the &ldquo;Maturity Date&rdquo;) (each, an &ldquo;Interest Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Interest
shall be payable on each Interest Date, to the noteholders on the applicable Interest Date, in shares of Class A Common Stock so long
as there has been no Equity Conditions Failure; provided however, that the Company may, at its option following notice to the noteholders,
pay Interest on any Interest Date in cash or in a combination of cash and shares. Prior to the payment of Interest on an Interest Date,
interest on this Note shall accrue at the Interest Rate and be payable by way of inclusion of the Interest in the Conversion Amount on
each Conversion Date, or upon any redemption, unless in the event of an event of default, in which case the interest rate of the Secured
Notes shall automatically be increased to 18% per annum (&ldquo;Interest Adjustments&rdquo;). In the event such default has been cured,
such Interest Adjustments shall cease to be effective as of the calendar day immediately following the date of such cure; provided that
the interest as calculated and unpaid at such increased rate during the continuance of that certain default shall continue to apply to
the extent relating to the days after the occurrence of such default through and including the date of such cure of such default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Maturity Date may be extended by the noteholders under circumstances specified therein. On the Maturity Date, the Company shall pay to
the noteholder an amount in cash representing all outstanding principal, accrued and unpaid interest on such principal and interest and
accrued and unpaid Late Charges. Other than as specifically permitted by the Secured Note, the Company may not prepay any portion of the
outstanding principal and accrued, unpaid interest or accrued and unpaid Late Charges on principal and interest, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Conversion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Conversion at Option
of Holder</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Each holder of Secured
Notes may convert all, or any part, of the outstanding principal of the Secured Notes, at any time at such holder&rsquo;s option, into
shares of Common Stock, at a conversion price per share of $5.24 (the &ldquo;Conversion Price&rdquo;), subject to adjustment under certain
circumstances described in the Secured Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Alternate Conversion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Each holder may alternatively
elect to convert the Secured Notes, at any time at such holder&rsquo;s option, into shares of our Common Stock at the &ldquo;Alternate
Conversion Price&rdquo; equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the Conversion Price then in effect; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">the greater of:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify">the floor price of $1.048; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">o</FONT></TD><TD STYLE="text-align: justify">the volume weighted average price of our common stock during the five Trading Days ending and including
the Trading Day immediately preceding the delivery or deemed delivery of the applicable conversion notice.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Limitations on Conversion</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Beneficial
Ownership Limitation</I>. A holder shall not have the right to convert any portion of a Secured Note to the extent that, after giving
effect to such conversion, the holder (together with certain related parties) would beneficially own in excess of 4.99%, or the &ldquo;Maximum
Percentage&rdquo;, of shares of our Common Stock outstanding immediately after giving effect to such conversion. The Maximum Percentage
may be raised or lowered to any other percentage not in excess of 9.99%, at the option of the holder, except that any increase will only
be effective upon 61 days&rsquo; prior notice to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Exchange
Cap Limitation.</I>&nbsp;Unless we obtain the approval of our stockholders in accordance with the rules and regulations of the Nasdaq
Capital Market, a maximum of 3,260,603 shares of our common stock (19.99% of the outstanding shares of our common stock on September 5,
2024) shall be issuable upon conversion or otherwise pursuant to the terms of the Secured Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Redemption Rights</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Company
Optional Redemption</I>. The Company has the option to redeem the Secured Notes at a 10% redemption premium to the greater of (i) the
shares of our Common Stock then outstanding under the Secured Notes and (ii) the equity value of our Common Stock underlying the Notes.
The equity value of our Common Stock underlying the Notes is calculated using the greatest closing sale price of our Common Stock during
the period commencing on the date immediately preceding notice of such redemption and ending on the Trading Day immediately prior to the
date the Company makes the entire payment required to be made for such redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Bankruptcy
Event of Default Mandatory Redemption</I>. Upon any bankruptcy event of default, we shall immediately redeem in cash all amounts due under
the Secured Notes at 25% premium unless the holder waives such right to receive such payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Casualty
Event Redemption</I>. Upon receipt of certain casualty proceeds, each holder of Secured Notes may require us to redeem in cash with the
net proceeds therefrom, the lesser of (x) a 10% redemption premium (or 25% if an event of default has then occurred and is continuing)
to the shares of our Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such casualty event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Asset
Sale Redemption</I>. Upon the occurrence of certain asset sales, each holder of Secured Notes may require us to redeem in cash with the
net proceeds therefrom, the lesser of (x) a 10% redemption premium (or 25% if an event of default has then occurred and is continuing)
to the shares of our Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such asset sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><I>Extraordinary
Receipt Redemption</I>. Upon the receipt of an Extraordinary Receipt, each holder of Secured Notes may require us to redeem in cash with
the net proceeds therefrom, the lesser of (x) a 10% redemption premium (or 25% if an event of default has then occurred and is continuing)
to the shares of our Common Stock then outstanding under the Secured Notes and (y) all of the net cash proceeds of such Extraordinary
Receipt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Ranking; Security
Interest</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Secured Notes will be junior secured obligations of the Company and will be secured by a security interest in substantially all of the
assets of the Company, pursuant to a security agreement. In addition, certain subsidiaries of the Company (each, a &ldquo;Subsidiary Grantor&rdquo;)
in the SPA secured the Company&rsquo;s obligations under the Financing Documents by granting a perfected lien upon substantially all of
the personal property of each Subsidiary Grantor, for the benefit of the Investors. The Company is utilizing the proceeds of this offering
for general corporate purposes and working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Registration Rights</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company has agreed to file a registration statement providing for the resale by the Investors of all shares issuable pursuant to the Financing
Documents with the Securities and Exchange Commission, or SEC, within forty-five (45) calendar days of the date of the SPA or as soon
as practicable thereafter, seek effectiveness within 90 days following the date of the SPA, and keep such registration statement effective
at all times until no Investors owns any Warrants or shares of Common Stock issuable upon exercise thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Warrants</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Warrants are exercisable immediately on the date thereof with a term of five (5) years to purchase an aggregate of 5,728,770 shares of
Common Stock at an exercise price of $6.29, subject to adjustment under certain circumstances described in the Warrants.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Incremental Warrants are exercisable immediately on the date thereof with a term of one (1) year to purchase the Secured Notes at an exercise
price of equal to the principal amount of the Secured Notes issued to such Purchaser, subject to adjustment under certain circumstances
described in the Incremental Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company has agreed to issue certain PA Warrants to Univest Securities LLC, the sole placement agent of this transaction. The PA Warrants
are exercisable immediately on the date thereof with a term of five (5) years to purchase an aggregate of 202,768 shares of Common Stock
at an exercise price of $6.29, subject to adjustment under certain circumstances described in the PA Warrants.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">A
holder of the Warrants and PA Warrants shall not have the right to exercise any portion of these warrants to the extent that, after giving
effect to such conversion, the holder (together with certain related parties) would beneficially own in excess of 4.99%, or the &ldquo;Maximum
Percentage&rdquo;, of shares of our common stock outstanding immediately after giving effect to such conversion. The Maximum Percentage
may be raised or lowered to any other percentage not in excess of 9.99%, at the option of the holder, except that any increase will only
be effective upon 61 days&rsquo; prior notice to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Components of FF&rsquo;s Results of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Key Factors Affecting Operating Results</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Our
performance and future success depend on several factors that present significant opportunities but also pose risks and challenges including
those discussed below and in the section titled &ldquo;<I>Risk Factors</I>&rdquo; in the 2023 Form 10-K and June 30, 2024 Form 10-Q.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Production and
Operations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
expect to continue to incur significant operating costs that will impact our future profitability, including R&amp;D expenses as we introduce
new models and improve existing models; capital expenditures for the expansion of our manufacturing capacities; additional operating costs
and expenses for production ramp-up; raw material procurement costs; general and administrative expenses as we scale our operations; interest
expense from debt financing activities; and selling and distribution expenses as we build our brand and market our vehicles. We may incur
significant costs in connection with our services as we deliver at scale the FF 91 Futurist, including servicing and warranty costs. Our
ability to become profitable in the future will depend on our ability to successfully market our vehicles and control our costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through
June&nbsp;30, 2024, we have sold a total of four and leased six vehicles. As a result, we will require substantial additional capital
to develop products and fund operations for the foreseeable future. Until we can generate sufficient revenue from product sales, we will
fund our ongoing operations through a combination of various funding and financing alternatives, including equipment financing of the
FF ieFactory California, secured syndicated debt financing, convertible notes, working capital loans, and equity offerings, among other
options. The particular funding mechanisms, terms, timing, and amounts are dependent on our assessment of opportunities available in the
marketplace and the circumstances of the business at the relevant time. Any delays in the successful completion of our FF ieFactory California
will impact our ability to generate revenue. For additional discussion of the substantial doubt about our ability to continue as a going
concern, see Note 2,&nbsp;<I>Liquidity and Capital Resources and Going Concern</I>&nbsp;in the notes to the Unaudited Condensed Consolidated
Financial Statements and for further details on liquidity, see the &ldquo;Liquidity and Capital Resources&rdquo; section below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Revenue Recognition</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
began the production of our FF 91 Futurist in March 2023 and started making deliveries to customers in August 2023. We sold and leased
zero vehicles during the three months ended June&nbsp;30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Automotive Sales Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Automotive
sales revenue includes revenues related to deliveries of new vehicles, and specific other features and services including home charger,
charger installation, 24/7 roadside assistance, OTA software updates, internet connectivity and destination fees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
recognize revenue on automotive sales upon delivery to the customer, which is when control of a vehicle transfers. Payments are typically
received at the point control transfers or in accordance with payment terms customary to the business and as indicated in the sales contract.
OTA software updates are provisioned upon transfer of control of a vehicle and recognized over time on a straight-line basis as we have
a stand-ready obligation to deliver such services to the customer. For obligations related to automotive sales, we estimate standalone
selling price by considering costs used to develop and deliver the good or service, third-party pricing of similar options and other information
that may be available. The transaction price is allocated among the performance obligations in proportion to the standalone selling price
of our performance obligations. Vehicle contracts do not contain a significant financing component.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Revenue
from promises to the customer that are considered immaterial are combined with the vehicle performance obligation and recognized when
the product has been transferred. We accrue costs to transfer these immaterial goods and services regardless of whether they have been
transferred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
provide customers with a residual value guarantee which may or may not be exercised in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Co-creation Arrangements</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As
part of our Futurist Product Officers (&ldquo;FPO&rdquo;) Co-Creation Delivery program that began in August 2023, we have entered into
co-creation agreements with certain customers. The arrangement leverages some of our sales and leasing customers to provide valuable driving
data, insights, marketing and brand awareness of the FF 91 vehicle. For the services performed, we compensate the respective customers
through a monthly consulting fee payment or a discount on their monthly lease payment. Management examined in detail the services provided
by each respective customer in accordance with the co-creation agreement, established various data points, and rationally assigned a dollar
amount that was deemed representative of the fair value of the services. Co-creation payments that exceed the fair value of the distinct
services performed by the customer are considered consideration paid to the customer and were treated as a reduction in revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
have entered into and may continue to enter into co-creator consulting agreements with our customers under which customers share feedback,
driving data, ideas, and experiences with our engineers, social media posts and other promotions in exchange for specified fees. We consider
these arrangements consideration payable to a customer. The consideration paid to the customer relates to marketing and R&amp;D services
that are distinct and could be purchased by us from a separate third party. We perform an analysis in which we maximize the use of observable
market inputs to ascribe a fair value to these services and record the fair value of these services to sales and marketing expense or
R&amp;D expense, as applicable. Any consideration payable to a customer that is above the fair value of the distinct services being provided
is treated as a reduction of revenue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Automotive Leasing
Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I><U>Operating Leasing
Program</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I><U></U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
have outstanding leases under our vehicle operating leasing program in the United States. Qualifying customers are permitted to lease
a vehicle for up to 36 months. At the end of the lease term, customers are generally required to return the vehicles to us. We account
for these leasing transactions as operating leases. We record leasing revenues to automotive leasing revenue on a straight-line basis
over the contractual term, and we record the depreciation of these vehicles to cost of automotive leasing revenue. Our policy is to exclude
taxes collected from a customer from the transaction price of automotive contracts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I><U>Sales-Type Leasing Program</U></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
have outstanding leases accounted for as sales-type leases under Accounting Standards Codification (&ldquo;ASC&rdquo;) 842, Leases (&ldquo;ASC
842&rdquo;). Customers have the right to purchase the vehicle at the end of the lease term, which is usually 36 months. A customer qualifies
under this program if the purchase option is reasonably certain to be exercised, and we therefore expect the customer to take title to
the vehicle at the end of the lease term after making all contractual payments. We recognize all revenue and costs associated with the
sales-type lease as automotive leasing revenue and automotive leasing cost of revenue, respectively, upon delivery of the vehicle to the
customer when collectability of lease payments is probable at lease commencement. If collectability of lease payments is not probable
at commencement, we recognize the lease payments as deposit liability and do not derecognize the leased vehicle until such point that
collectability of lease payments becomes probable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Customer Deposits
and Deferred Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our
customers may reserve a vehicle and preorder certain services by making a customer deposit, which is fully refundable at any time. Refundable
deposits, for vehicle reservations and services, received from customers prior to an executed vehicle purchase agreement are recorded
as customer deposits within Accrued expenses and other current liabilities on our Consolidated Balance Sheet.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">When
vehicle purchase agreements are executed, the consideration for the vehicle and any accompanying products and services must be paid in
advance prior to the transfer of products or services by us. Such advance payments are considered non-refundable, and we defer revenue
related to any products or services that are not yet transferred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Deferred
revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied,
as of the balance sheet date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Warranties</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
provide a manufacturer&rsquo;s warranty on all vehicles sold. The warranty covers the rectification of reported defects via repair, replacement,
or adjustment of faulty parts or components. The warranty does not cover any item where failure is due to normal wear and tear. This assurance-type
warranty does not create a performance obligation separate from the vehicle. Management tracks warranty claims by vehicle ID, owner, and
date. As we continue to manufacture and sell more vehicles, we will reassess and evaluate our warranty claims for purposes of our warranty
accrual.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Cost of Automotive
Sales Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cost
of revenue includes direct and indirect materials, labor costs, manufacturing overhead, including depreciation costs of tooling and machinery,
shipping and logistic costs, vehicle connectivity costs, and reserves for estimated warranty expenses. Cost of automotive sales revenues
also includes adjustments to warranty expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cost
of services and other revenue includes costs associated with providing non-warranty after-sales services, costs for retail merchandise,
and costs to provide vehicle insurance. Cost of services and other revenue also includes direct parts and material.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Cost of Automotive
Leasing Program</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Cost of automotive leasing
revenue includes the depreciation of operating lease vehicles, cost of goods sold associated with direct sales-type leases and warranty
expense related to leased vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Operating Expenses</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><I>Research and Development</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Research
and Development (&ldquo;R&amp;D&rdquo;) activities represent a significant part of our business. Our R&amp;D efforts focus on the design
and development of our electric vehicles and continuing to prepare our prototype electric vehicles to exceed industry standards for compliance,
innovation, and performance. R&amp;D expenses consist of personnel-related costs (including salaries, bonuses, benefits, and stock-based
compensation) for our employees focused on R&amp;D activities, other related costs, depreciation, R&amp;D services provided by co-creators,
and an allocation of overhead. We expect R&amp;D expenses to decrease in the near future as we substantially completed R&amp;D activities
related to the FF 91 in late 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Sales and Marketing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sales
and marketing expenses consist primarily of personnel-related costs (including salaries, bonuses, benefits, and stock-based compensation)
for our employees focused on sales and marketing, costs associated with sales and marketing activities, marketing services provided by
co-creators, and an allocation of overhead. Marketing activities are those related to introducing our brand and our electric vehicle prototypes
to the market. We expect selling and marketing expenses to continue to increase as we bring our electric vehicles to market and seek to
generate sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>General and Administrative</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">General
and administrative expenses consist primarily of personnel-related costs (including salaries, bonuses, benefits, and stock-based compensation)
for our employees associated with administrative services such as legal, human resources, information technology, accounting and finance,
other related costs, and legal loss contingency expenses, which are our estimates of future legal settlements. These expenses also include
certain third-party consulting services, certain facilities costs, and any corporate overhead costs not allocated to other expense categories.
We expect our general and administrative expenses to increase as we continue to grow our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Loss on Disposal of
Property, Plant and Equipment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Loss
on disposal of property, plant and equipment relates to the abandonment of certain FF 91 Futurist program construction in progress assets,
primarily vendor tooling, machinery, and equipment, due to the redesign of the related FF 91 components and implementation of our cost
reduction program. Charges associated with disposals are recognized within operating expenses in the Unaudited Condensed Consolidated
Statements of Operations and Comprehensive Loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Change in Fair Value
of Earnout Liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Legacy
FF stockholders, as of the July 21, 2021 closing date of the Business Combination (as defined in Note 10,&nbsp;<I>Commitments and Contingencies&nbsp;</I>in
the notes to the Unaudited Condensed Consolidated Financial Statements) until its fifth anniversary, are entitled to contingent consideration
of up to 104,167 additional shares of Class A Common Stock in the aggregate in two equal tranches upon the occurrence of each earnout
triggering event (&ldquo;Earnout Shares&rdquo;). We recognized the Earnout Shares at fair value upon the closing of the Business Combination
and classified them in Stockholders&rsquo; Equity since the Earnout Shares were determined to be indexed to our own stock and meet the
requirements for equity classification in accordance with ASC 815-40,&nbsp;<I>Derivatives and Hedging - Contracts in Entity&rsquo;s Own
Equity</I>. From time to time subsequent to the closing of the Business Combination, the Earnout Shares may be classified as derivative
liabilities under ASC 815,&nbsp;<I>Derivatives and Hedging</I>, due to us having insufficient authorized shares to fully settle the equity-linked
financial instruments in shares. The Earnout Shares reclassified as derivative instruments are recognized at fair value with changes in
fair value recognized in earnings until such time as the conditions giving rise to such derivative liability classification are settled
or we have sufficient authorized, unissued shares to settle such contracts with shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Non-operating</I></B><I>&nbsp;<B>Expenses</B></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Change in Fair Value
of (Related Party and Third Party) Notes Payable and Warrant Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Change
in fair value measurements consists of the losses and gains as a result of fair value measurements of certain notes payable and warrant
liabilities that we record at fair value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Loss on Settlement
of (Related Party and Third Party) Notes Payable</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Loss<FONT STYLE="background-color: white">&nbsp;on
settlement of notes payable consists of losses resulting from the settlement of notes payable as part of our ongoing financing activities
and losses incurred on modifications of our notes payable that qualify as an extinguishment pursuant to&nbsp;</FONT>ASC 470-50,&nbsp;<I>Debt&ndash;Modifications
and Extinguishments</I><FONT STYLE="background-color: white">.</FONT><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Related Party Interest
Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Related
party interest expense consists of interest expense on notes payable with related parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Interest
expense primarily consists of interest on outstanding notes payable not marked to fair value, capital leases, certain supplier payables,
and vendor payables in trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Other Expense, net</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;Other
expense, net consists of foreign currency transaction gains and losses and other expenses such as bank fees and late charges. Foreign
currency transaction gains and losses are generated by revaluation of debt and the settlements of invoices denominated in currencies other
than the functional currency. We expect other expense to fluctuate as we continue to transact internationally.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Results of Operations for three and six months ended June 30, 2024
and 2023 (<I>in thousands</I>) (Unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Comparison of results of
operations for the three months ended June 30, 2024 versus the three months ended June 30, 2023:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months&nbsp;Ended <BR> June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Unaudited Condensed Consolidated Statements of Operations</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-weight: bold; padding-left: 0pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">293</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">20,970</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,613</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Gross profit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(20,677</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,613</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,317</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,269</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,782</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,699</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,201</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17,062</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Lease impairment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,616</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">(Gain)/Loss on disposal on property, plant and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Change in fair value of earnout liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(664</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">29,932</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">49,366</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(50,609</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(55,979</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Change in fair value of notes payable and warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,245</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,324</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Change in fair value of related party notes payable and related party warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(332</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">384</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Loss on settlement of notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(46,978</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(85,392</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Loss on related party notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,492</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,719</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(209</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Related party interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,506</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(70</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Other expense, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(292</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,466</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(108,681</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(124,900</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt">Income tax provision</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(28</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(108,685</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(124,928</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended <BR>
June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; padding-left: 0pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">293</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">293</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">NM</FONT></TD><TD STYLE="width: 1%; text-align: left">*</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">NM = not meaningful.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Automotive sales revenue
was $0.3 million for the three months ended June 30, 2024. We started vehicle delivery to its customers during the third quarter of 2023.
We began delivering vehicles in the third quarter of 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Cost of Revenues</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended <BR>
June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; padding-left: 0pt">Cost of revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">20,970</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,613</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">14,357</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">217</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">NM = not meaningful.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Cost
of revenues was $21.0 million for the three months ended June 30, 2024. <FONT STYLE="background-color: white">On</FONT></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; background-color: white">&nbsp;</FONT><FONT STYLE="font-size: 10pt; background-color: white">March
29, 2023, we announced the start of production of our first electric vehicle, the FF 91 Futurist and, on April 14, 2023, our first production
FF 91 Futurist vehicle came off the line. We began delivering vehicles in the third quarter of 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Research and Development (R&amp;D)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended <BR> June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,317</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">25,269</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(21,952</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(87</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
decrease in R&amp;D expense was </FONT>primarily due to a decrease in personnel and compensation expenses of $21.2 million, a decrease
in stock-based compensation of $1.0 million due to a decrease in headcount as part of cost saving measures implemented by us in light
of its financial position, as well as the allocation of certain personnel from the R&amp;D department to production, and a decrease in
professional services expenses of $0.8 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Sales and Marketing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended <BR> June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Sales and marketing</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,782</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,699</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,917</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(77</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
decrease in sales and marketing expense was </FONT>due to a decrease in compensation expenses of $3.3 million, a decrease in professional
services expenses of $1.1 million, a decrease in marketing expenses of $0.7 million, a decrease in stock-based compensation expense of
$0.1 million, and a decrease in other miscellaneous expenses of $0.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General and Administrative</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">17,201</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">17,062</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">139</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The increase in general and
administrative expense was primarily due to an increase in information technology expense of $0.4 million, partially offset by a decrease
in stock-based compensation expense of $0.1 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Lease impairment loss</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Lease impairment loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,616</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,616</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">NM*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended
June 30, 2024, the we moved out of a leased store facility and a leased research facility while working with the landlords to negotiate
the related lease terminations, resulting in a lease ROU asset impairment loss of $7.5&nbsp;million for the loss of use of these two leased
facilities. We also terminated one of the operating leases in China, resulting in a net lease ROU asset impairment loss of $0.1&nbsp;million
during the three months ended June 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>(Gain)/Loss on Disposal on Property, Plant
and Equipment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">(Gain)/Loss on disposal on property, plant and equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">16</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">16</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">NM*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">NM = not meaningful.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We recognized an immaterial
Loss on disposal of property, plant and equipment for the three months ended June 30, 2024. There were no such transactions for the three
months ended June 30, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of Earnout Liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended <BR>
June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Change in fair value of earnout liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(664</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">664</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">NM*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">NM = not meaningful.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of April 21, 2023, we
reclassified the earnout obligation from equity classification to liability classification as a result of the us having insufficient authorized
shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40, <I>Derivatives and Hedging
- Contracts in Entity&rsquo;s Own Equity</I>. As a result of the reclassification, we reclassified $2.1 million out of Additional paid-in
capital into the Earnout liability. The $0.7 million decrease in the Earnout liability from April 21, 2023 to June 30, 2023 was recognized
as a gain in the Change in fair value of earnout liability during the three months ended June 30, 2023. There was no comparable transaction
during the three months ended June 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Change in Fair Value of Notes Payable and Warrant Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Change in fair value of notes payable and warrant liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(7,245</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">24,324</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(31,569</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(130</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended
June 30, 2024, the fair value of our outstanding notes and warrants were revalued at higher fair values than in the preceding three month
period. The increase in the fair value of the notes and warrants during the period was primarily driven by improvements in our stock price,
which also contributed to an improvement in our volatility assumption. During the three months ended June 30, 2023, the fair value of
our notes and warrants decreased substantially due to pricing inputs that use the market price of our Common Stock and debt discount rate,
which experienced a significant decline during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Change in Fair Value of Related Party Notes Payable and Related
Party Warrant Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-left: 0.125in">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended<BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Change in fair value of related party notes payable and related party warrant liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(332</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">384</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(716</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(186</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the three months ended
June 30, 2024, the fair value of our outstanding related party notes and warrants were revalued at higher fair values than in the preceding
three month period. The increase in the fair value of the related party notes and warrants during the period was primarily driven by improvements
in our stock price, which also contributed to an improvement in our volatility assumption. During the three months ended June 30, 2023,
the fair value of our related party notes and warrants decreased substantially due to pricing inputs that use the market price of our
Common Stock and debt discount rate, which experienced a significant decline during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Loss on Settlement of Notes Payable</I></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended <BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Loss on settlement of notes payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(46,978</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(183,528</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">136,550</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(74</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The <FONT STYLE="background-color: white">decrease</FONT>
in the Loss on settlement of notes payable during the three months ended June 30, 2024 was driven by a reduced conversion volume during
the period. In addition, during the three months ended June 30, 2023, we recognized an $11.4 million Loss on settlement of notes payable
from amendments to our Pre-existing SPA Notes in May 2023 accounted for as extinguishments. During the three months ended June 30, 2024,
note holders converted $15.4 million of notes payable compared with $94.4 million in the comparable prior year period. The impact of the
volume difference is offset by a larger loss on settlement per dollar of principal during the three months ended June 30, 2024. The increase
in the loss on settlement per dollar of principal was driven by the trailing-twelve-month trend of declines in the fair value of our notes
payable driven by the change in our stock price over the period and improvements in the conversion terms of the notes from June&nbsp;30,
2023 to June&nbsp;30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Loss on Related Party Notes Payable</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center; padding-bottom: 0pt; padding-left: 0pt">&nbsp;</TD><TD STYLE="text-align: center; padding-left: 0pt; font-weight: bold; padding-bottom: 0pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">Three Months Ended <BR> June 30,</TD><TD STYLE="text-align: center; padding-left: 0pt; padding-bottom: 0pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; padding-left: 0pt; font-weight: bold; padding-bottom: 0pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">Change</TD><TD STYLE="text-align: center; padding-left: 0pt; padding-bottom: 0pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 0pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; padding-left: 0pt; font-weight: bold; padding-bottom: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">2024</TD><TD STYLE="padding-left: 0pt; padding-bottom: 0pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-left: 0pt; font-weight: bold; padding-bottom: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">2023</TD><TD STYLE="padding-left: 0pt; padding-bottom: 0pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-left: 0pt; font-weight: bold; padding-bottom: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-left: 0pt; padding-bottom: 0pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; padding-left: 0pt; font-weight: bold; padding-bottom: 0pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; padding-bottom: 0pt; font-weight: bold; text-align: center; padding-left: 0pt"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-left: 0pt; padding-bottom: 0pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 0pt; width: 52%; text-align: justify; padding-left: 0pt">Loss on related party notes payable</TD><TD STYLE="padding-bottom: 0pt; width: 1%; padding-left: 0pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">$</TD><TD STYLE="padding-bottom: 0pt; width: 9%; text-align: right; padding-left: 0pt">&mdash;</TD><TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 0pt; width: 1%; padding-left: 0pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">$</TD><TD STYLE="padding-bottom: 0pt; width: 9%; text-align: right; padding-left: 0pt">(6,492</TD><TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">)</TD><TD STYLE="padding-bottom: 0pt; width: 1%; padding-left: 0pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">$</TD><TD STYLE="padding-bottom: 0pt; width: 9%; text-align: right; padding-left: 0pt">6,492</TD><TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 0pt; width: 1%; padding-left: 0pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">&nbsp;</TD><TD STYLE="padding-bottom: 0pt; width: 9%; text-align: right; padding-left: 0pt"><FONT STYLE="font-size: 10pt">NM*</FONT></TD><TD STYLE="padding-bottom: 0pt; width: 1%; text-align: left; padding-left: 0pt">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">NM = not meaningful.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There were no settlements
of related party notes payable during the three months ended June 30, 2024. During the three months ended June 30, 2023, the related party
converted Original Unsecured SPA Notes with principal balances of $12.0 million in exchange for 290,549 shares of our Class A Common Stock.
We recognized a Loss on settlement of related party notes payable for the difference between the fair value of the shares issued and the
fair value of the debt instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended <BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Interest expense</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,719</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(209</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,510</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(722</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The increase in Interest
expense was primarily due to the financial obligation on sale and leaseback transaction that did not exist during the three months ended
June 30, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Related Party Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Three Months Ended <BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Related party interest expense</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,506</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(70</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,436</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(2051</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The increase in Related party
interest expense was due to our default on the Chongquing Leshi Small Loan Co., Ltd. note, which resulted in a substantial increase in
our interest rate along with additional interest expense and penalties. As discussed in Note 8, <I>Related Party Transactions </I>in the
notes to the Unaudited Condensed Consolidated Financial Statements<I>, </I>we had previously negotiated with a related party to partially
forgive debt and interest on its related note, in exchange for the promise to make payments on a scheduled basis. The interest related
to this note was reinstated during the first quarter of 2024 due to our default on the underlying note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other Expense, net</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three Months Ended <BR> June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Other expense, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(292</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,466</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,174</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">80</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The change in Other expense,
net was primarily due to a decrease in foreign currency transaction losses resulting from the revaluation of transactions denominated
in currencies other than U.S. Dollars that are remeasured at the end of each period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Comparison of results of operations for the six months ended June 30,
2024 versus the six months ended June 30, 2023:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended <BR> June 30,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-style: italic">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left">Unaudited Condensed Consolidated Statements of Operations</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; font-weight: bold; padding-left: 0pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">295</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt; padding-left: 0pt">Cost of revenues</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">41,657</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">6,613</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,362</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,613</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">83,077</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,256</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,764</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,049</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,575</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Lease impairment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,616</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">(Gain)/Loss on disposal on property, plant and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(71</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,698</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Change in fair value of earnout liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,100</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0.125in">Total operating expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">52,855</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">145,214</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(94,217</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(151,827</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Change in fair value of notes payable and warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,640</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">72,459</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Change in fair value of related party notes payable and related party warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(339</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">384</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Loss on settlement of notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(58,381</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(183,528</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Loss on related party notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,295</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,492</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,944</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(501</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 0pt">Related party interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,600</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(70</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">Other expense, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">238</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(298</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 0pt">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(156,898</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(269,873</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt">Income tax provision</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(4</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(28</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0.125in">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(156,902</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(269,901</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Revenues</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended<BR>
 June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; padding-left: 0pt">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">295</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">295</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-size: 10pt">NM*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">NM = not meaningful.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Automotive sales revenue
was $0.3 million for the six months ended June 30, 2024. On March 29, 2023, we announced the start of production of our first electric
vehicle, the FF 91 Futurist and, on April 14, 2023, our first production FF 91 Futurist vehicle came off the line. We started vehicle
delivery to its customers during the third quarter of 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Cost of Revenues</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended <BR> June 30,</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; padding-bottom: 1.5pt; padding-left: 0pt">(in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>Amount</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-size: 10pt"><B>%</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; padding-left: 0pt">Cost of revenues</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">41,657</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">6,613</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">35,044</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">530</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Cost of revenues was $41.7
million for the six months ended June 30, 2024. We began production of vehicles during the second quarter of 2023 and began delivering
vehicles in the third quarter of 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Research and Development (R&amp;D)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Six Months Ended <BR> June 30,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0pt">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">10,005</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">83,077</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(73,072</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(88</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The decrease in R&amp;D expense
is primarily due to the reduction in ED&amp;T, General expenses and Information technology of $21.1 million, $4.0 million, and $2.0 million,
respectively, as we substantially completed R&amp;D activities related to the FF91 in late 2023 and moved into production. In addition,
there was a decrease in personnel and compensation expenses of $35.8 million due to a decrease in headcount resulting from both the substantial
completion of R&amp;D and cost saving measures implemented by us in light of our financial position, as well as a decrease in stock-based
compensation expense of $7.0 million resulting from the same reduction in headcount and revaluation of stock-based compensation resulting
from the transition of stock-based compensation from liability to equity classification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Sales and Marketing</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Sales and marketing</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,256</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">12,764</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(8,508</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(67</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
decrease in sales and mark</FONT>eting expense is primarily due to a decrease in personnel and compensation expenses of $5.0 million due
to a decrease in headcount as part of cost saving measures implemented by us in light of our financial position and a decrease of $0.6
million in stock-based compensation expense driven by reductions in headcount and the revaluation of stock-based compensation resulting
from the transition of stock-based compensation from liability to equity classification. In addition, there was a decrease in marketing
expenses and professional services expenses of $0.9 million and $0.8 million, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General and Administrative</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0in">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">31,049</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">43,575</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(12,526</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(29</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
decrease in gener</FONT>al and administrative expense was primarily due to the decrease in professional services expense of $8.3 million,
personnel and compensation expense of $2.9 million, and stock-based compensation expense of $1.5 million, due to a decrease in headcount
as part of cost saving measures implemented by us in light of our financial position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Lease impairment loss</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Six Months Ended <BR>
June 30, 2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center">%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Lease impairment loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,616</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,616</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">NM*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">During the six months ended
June 30, 2024, we moved out of a leased store facility and a leased research facility while working with the landlords to negotiate the
related lease terminations, resulting in a lease ROU asset impairment loss of $7.5&nbsp;million for the loss of use of these two leased
facilities. We also terminated one of the operating leases in China, resulting in a net lease ROU asset impairment loss of $0.1&nbsp;million
during the six months ended June 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>(Gain)/Loss on Disposal of Property, Plant and Equipment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">(Gain)/Loss on disposal on property, plant and equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(71</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,698</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,769</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(102</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The change in loss on disposal
of property, plant and equipment was primarily due to the non-recurring write-off of $3.7 million during the six months ended June 30,
2023 of certain construction in process assets that are not expected to be used as part of start of production.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of Earnout Liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic; text-align: left">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0in">Change in fair value of earnout liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,100</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,100</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(100</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">As of December 31, 2022, we
had reclassified our earnout obligation from equity classification to liability classification as a result of us having insufficient authorized
shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40, <I>Derivatives and Hedging
- Contracts in Entity&rsquo;s Own Equity</I>. On February 28, 2023, upon stockholder approval to increase our authorized shares, we had
sufficient authorized shares to fully settle all outstanding equity-linked financial instruments. Accordingly, we reclassified the fair
value of the Earnout liability of $5.0 million into Additional paid-in capital. The $2.8 million increase in the Earnout liability from
December 31, 2022 to February 28, 2023 was recognized as an expense in the Change in fair value of earnout liability during the six months
ended June 30, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, as of April 21,
2023, we again reclassified our earnout obligation from equity classification to liability classification as a result of us having insufficient
authorized shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40, <I>Derivatives
and Hedging - Contracts in Entity&rsquo;s Own Equity</I>. As a result of the reclassification, we reclassified $2.1 million out of Additional
paid-in capital into the Earnout liability. The $0.7 million decrease in the Earnout liability from April 21, 2023 to June 30, 2023 was
recognized as a gain in the Change in fair value of earnout liability during the six months ended June 30, 2024. There was no comparable
transaction during the six months ended June 30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Change in Fair Value of Notes Payable and Warrant Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Change in fair value of notes payable and warrant liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">20,640</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">72,459</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(51,819</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(72</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">During the six months ended
June 30, 2024 and 2023, the fair value of our outstanding notes and warrants were revalued at lower values than in the preceding six month
periods. Our outstanding notes and warrants were remeasured at predominantly lower fair values due to pricing inputs that use the market
price of our Common Stock and debt discount rate, which have experienced a decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">During the three months ended
June 30, 2023, the fair value of our notes and warrants decreased substantially due to pricing inputs that use the market price of our
Common Stock and debt discount rate, which experienced a significant decline during the period. The change in fair value during the six
months ended June 30, 2024 is smaller than during the six months ended June 30, 2023 predominantly due to improvements in our conversion
terms and a smaller decline in our stock price during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of Related Party Notes
Payable and Related Party Warrant Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 52%; text-align: left">Change in fair value of related party notes payable and related party warrant liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(339</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">384</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(723</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(188</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During the six months ended
June 30, 2024, the fair value of our outstanding related party notes and warrants were revalued at higher fair values than in the preceding
six month period. The increase in the fair value of the related party notes and warrants during the period was primarily driven by improvements
in our stock price, which also contributed to an improvement in our volatility assumption. During the six months ended June 30, 2023,
the fair value of our related party notes and warrants decreased substantially due to pricing inputs that use the market price of our
Common Stock and debt discount rate, which experienced a significant decline during the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Loss on Settlement of Notes Payable</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Loss on settlement of notes payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(58,381</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(183,528</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">125,147</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(68</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The decrease in the Loss
on settlement of notes payable during the six months ended June 30, 2024 was driven by a lower conversion volume during the period, partially
offset by a higher loss on settlement per dollar of principal. During the six months ended June 30, 2024, note holders converted $33.7
million of notes payable compared to $156.0 million in the comparable prior year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Loss on Related Party Notes Payable</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Loss on related party notes payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(14,295</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,492</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(7,803</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">120</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">During the six months ended
June 30, 2024, related party note holders converted $0.7 million of related party notes payable, which constituted the remaining outstanding
balance, in exchange for 1,324,292 shares of our Class A Common Stock and we recognized a Loss on settlement of related party notes payable
for the difference between the fair value of the shares issued and the fair value of the debt instrument. In addition, as discussed in
Note 8, <I>Related Party Transactions </I>in the notes to the Unaudited Condensed Consolidated Financial Statements<I>, </I>we also recognized
a $14.1 million loss on related party notes from the recognition of interest and penalties and the increase of principal due to our breach
of the agreement with Chongquing Leshi Small Loan Co., Ltd. There was no comparable related party loss in the comparable prior year period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">During the six months ended
June 30, 2023, a related party converted Original Unsecured SPA Notes with principal balances of $12.0 million in exchange for 290,549
shares of our Class A Common Stock. We recognized a Loss on settlement of related party notes payable for the difference between the fair
value of the shares issued and the fair value of the debt instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Interest expense</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,944</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(501</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,443</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(687</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The increase in Interest
expense was primarily due to the financial obligation on sale and leaseback transaction that did not exist during the six months ended
June 30, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Related Party Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Related party interest expense</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,600</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(70</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(6,530</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">9329</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The increase in Related party
interest expense was due to our default on the Chongquing Leshi Small Loan Co., Ltd note, which resulted in a substantial increase in
our interest rate along with additional interest expense and penalties. As discussed in Note 8, <I>Related Party Transactions, w</I>e
had previously negotiated with a related party to partially forgive debt and interest on its related note, in exchange for the promise
to make payments on a scheduled basis. The interest related to this note was reinstated for the first quarter of 2024 due to our default
on the underlying note.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other (Expense) Income, Net</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Other expense, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">238</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(298</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">536</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(180</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The change in Other expense,
net was primarily due to a decrease in foreign currency transaction losses resulting from the revaluation of transactions denominated
in currencies other than U.S. Dollars that are remeasured at the end of each period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"><FONT STYLE="background-color: white"><B>Comparison
of the Years Ended December 31, 2023 and 2022</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended <BR>
December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: left; font-weight: bold">(dollars in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Consolidated Statements of Operations</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Revenues</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Auto sales</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">784</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Cost of revenues</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Auto sales</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">42,607</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Gross loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(41,823</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Research and development</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">132,021</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">299,989</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Sales and marketing</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">22,836</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,689</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">82,888</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">112,771</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss on disposal of property and equipment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,453</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,695</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Change in fair value of earnout liability</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,033</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">244,231</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">437,144</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(286,054</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(437,144</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Change in fair value of notes payable and warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">89,860</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(70,512</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Change in fair value of related party notes payable and related party warrant liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,101</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Loss on settlement of notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(217,019</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(73,204</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Loss on settlement of related party notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,045</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,288</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,561</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Related party interest expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(753</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,879</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other expense, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,437</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(11,878</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Loss before income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(431,635</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(602,178</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Income tax provision</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(109</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(61</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; font-weight: bold; text-align: left">Net loss</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(431,744</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(602,239</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-weight: bold">(dollars in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">784</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">784</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Automotive sales revenue
was $0.8 million for the year ended <FONT STYLE="background-color: white">December 31, 2023</FONT>. We started vehicle delivery to our
customers during the third quarter of 2023 and this amount is primarily driven by the four cars that were sold through<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT><FONT STYLE="background-color: white">December
31, 2023</FONT>. There was no sales revenue for the year ended December 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Cost of Revenue</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-weight: bold">(dollars in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%">Cost of revenue</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">42,607</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">42,607</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">-</FONT></TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">Cost of revenue\ was $42.6
million for the year ended <FONT STYLE="background-color: white">December 31, 2023</FONT>. We started to recognize automotive sales revenue
during the year ended <FONT STYLE="background-color: white">December 31, 2023</FONT> and the corresponding cost of revenue. Cost of revenue
is primarily driven by higher costs of early-stage cost inefficiencies including lower fixed cost absorption largely due to depreciation
of tooling and machinery. To a lesser extent, cost of revenue includes higher initial manufacturing inefficiencies coupled with higher
initial cost of parts resulting from lower volume associated with delivery of the FF 91 Futurist vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Research and Development</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Research and development</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">132,021</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">299,989</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(167,968</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(56.0</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The decrease in R&amp;D expense
is primarily due to the reduction in engineering, design, and testing services of $125.9 million as we substantially completed R&amp;D
activities related to the FF 91 Futurist vehicle in 2022. Further, as we started production in March 2023, certain costs were recognized
as cost of revenue and certain materials purchases were capitalized to inventory versus all being recognized as R&amp;D expense. In addition,
there was a decrease in personnel and compensation expenses of $20.2 million due to a decrease in headcount and a decrease in professional
services of $15.1 million as part of cost saving measures implemented by us in light of our financial position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Sales and Marketing</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left; padding-left: 0in">Sales and marketing</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">22,836</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">21,689</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,147</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">5.3</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt"><FONT STYLE="background-color: white">Sales
and marketing expenses did not significantly fluctuate from the prior year. These efforts remained consistent as we only began vehicle
deliveries in the third quarter of 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><I>General
and Administrative</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-weight: bold">(dollars in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">General and administrative</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">82,888</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">112,771</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(29,883</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(26.5</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The decrease in general and
administrative expense is primarily due to a decrease in compensation expense of $20.6 million and professional services expenses of $18.6
million due to our financial position; partially offset by general costs of $12.2 million primarily related to an increase in property
insurance and Director &amp; Officer Insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Loss on disposal of property and equipment</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Change</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; font-weight: bold">(dollars in thousands)</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Loss on disposal of property and equipment</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">4,453</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,695</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,758</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">65.2</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The increase in loss on disposal
of property and equipment was the result of the sale of a property/equipment satisfying liquidity needs to fund short-term business activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of Earnout Liability</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Change in fair value of earnout liability</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,033</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,033</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of December 31, 2022, the
Company reclassified the earnout shares from equity classification to liability classification as a result of the Company having insufficient
authorized shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40, <I>Derivatives
and Hedging - Contracts in Entity&rsquo;s Own Equity</I>. As of August 25, 2023, we reclassified the Earnout Shares from liability classification
to equity classification as a result of us having sufficient authorized shares to share-settle the earnout, which was determined to be
equity classified under ASC 815-40, <I>Derivatives and Hedging - Contracts in Entity&rsquo;s Own Equity</I>. The $2.0 million decrease
in the earnout liability was recognized as a change in fair value of earnout liability during the third quarter of <FONT STYLE="background-color: white">2023
and there was no comparable expense in the prior period</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of Notes Payable and Warrant
Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Change in fair value of notes payable and warrant liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">89,860</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(70,512</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">160,372</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(227.4</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The change in the fair value
of notes payable and warrant liabilities is primarily due to notes payable and warrant liabilities revalued during 2023 at predominantly
lower fair values due to pricing inputs that use the market price of the Company&rsquo;s Common Stock and debt discount rate which have
experienced large declines. As of December 31, 2022 the Company had $41.7 million of notes payable outstanding, compared with $118.9
million outstanding as of <FONT STYLE="background-color: white">December 31, 2023</FONT>, excluding the impact of mark to market valuation
adjustments. During the year ended December 31, 2023, we recognized a gain in the change in fair value of notes payable and warrant liabilities
of $69.7 million, specific to the change in fair value of our warrant liabilities, which was driven by the significant decline in the
Company&rsquo;s stock price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Change in Fair Value of Related Party Payable
and Related Party Warrant Liabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 52%; text-align: left">Change in fair value of related party payable and related party warrant liabilities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,101</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">7,101</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We did not have any related
party notes payable or warrants that were re-measured at fair value during the year ended December 31, 2022. In May 2023,we entered into
Original Unsecured SPA Notes (as defined in Note 6, Accrued Expenses and Other Current Liabilities, in the Notes to the Consolidated
Financial Statements) with MHL, who is a related party, and V W Investment. On <FONT STYLE="background-color: white">December 31, 2023</FONT>,
the related party Original Unsecured SPA Notes and warrant were revalued at a lower fair value than at their issuance due to pricing
inputs that use the market price of the Class A Common Stock and debt discount rate which have experienced a decline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Loss on Settlement of Notes Payable </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Loss on settlement of notes payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(217,019</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(73,204</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(143,815</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">196.5</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The increase in the Loss on
settlement of notes payable during the year ended December 31, 2023 is primarily driven by a higher conversion volume during the period
and a larger loss on settlement per dollar principal. During the year ended December 31, 2023 note holders converted $200.6 million of
notes payable, excluding the impact of mark to market valuation adjustments, compared with $119.3 million in the year ended December 31,
2022. The increase in the loss on settlement per dollar of principal is driven by the trailing-twelve-month trend of declines in the fair
value of our notes payable driven by the change in the stock price over the period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Loss on Settlement of Related Party Notes Payable
</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Loss on settlement of related party notes payable</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(20,045</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(20,045</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We did not have any related
party notes payable that settled during the year ended December 31, 2022. In May 2023, we entered into Original Unsecured SPA Notes with
MHL, who is a related party. During the year ended <FONT STYLE="background-color: white">December 31, 2023</FONT>, the related party converted
Original Unsecured SPA Notes with prin<FONT STYLE="background-color: white">cipal balanc</FONT>es of $22.3 million in exchange for 5.0
million shares of Class A Common Stock. We recognized a loss on settlement of related party notes payable for the difference between the
fair value of the shares issued and the fair value of the debt instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Interest expense</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,288</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(5,561</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,273</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(58.9</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The decrease in interest expense
was primarily due to our repayment of $85.0 million of Ares notes payable principal and the conversion of $73.9 million of ATW NPA notes
payable principal into the Class A Common Stock in the year ended December 31, 2022. The Pre-existing SPA Notes are carried at fair value
and fluctuations in interest expense are included in the change in fair value of notes payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Related Party Interest Expense</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Related party interest expense</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(753</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,879</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,126</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(80.6</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The decrease in related party
interest expense was due to an agreement, dated December 27, 2022, with Chongqing Leshi Small Loan Co., Ltd, a related party, according
to which it was agreed that a portion of principal and all outstanding accrued interest was waived.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Other Expense, net</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended December 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">(dollars in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Other expense, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,437</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(11,878</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">9,441</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(79.5</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The change in other expense,
net was primarily due to a decrease in foreign currency transaction losses resulting from the revaluation of transactions denominated
in currencies other than U.S. Dollars that are remeasured at the end of each period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"><B>Liquidity and Capital Resources</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Going Concern</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have evaluated whether there
are certain conditions and events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going
concern within one year after the date that the Unaudited Condensed Consolidated Financial Statements are issued. Based on our recurring
losses from operations since inception and continued cash outflows from operating activities (all as described below), we have concluded
that there is substantial doubt about our ability to continue as a going concern for a period of one year from the date that the Unaudited
Condensed Consolidated Financial Statements were issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Unaudited Condensed Consolidated
Financial Statements or the Consolidated Financial Statements do not include any adjustments that might result from the outcome of this
uncertainty. Accordingly, the Unaudited Condensed Consolidated Financial Statements and the Consolidated Financial Statements have been
prepared on a basis that assumes we will continue as a going concern and that contemplates the realization of assets and satisfaction
of liabilities and commitments in the ordinary course of business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have and will continue to
devote substantial effort and, to the extent available, capital resources, to strategic planning, engineering, design, and development
of our electric vehicle platform, development of vehicle models, finalizing the build out of the FF ieFactory California manufacturing
facility, and capital raising. We incurred cumulative losses from operations, negative cash flows from operating activities, and have
an accumulated deficit of $4,115.4 million, an unrestricted cash balance of $0.8 million and a negative working capital position of $198.7
million, excluding restricted cash, as of June&nbsp;30, 2024. <FONT STYLE="background-color: white">We incurred cumulative losses from
operations, negative cash flows from operating activities, and have an accumulated deficit of $3,958.5 million, an unrestricted cash balance
of $1.9 million and a negative working capital position of $169.8 million as of December&nbsp;31, 2023.</FONT> During 2023, we delivered
our first vehicles but expect to continue generating significant operating losses for the foreseeable future. We have funded our operations
and capital needs primarily through the issuance of related party notes payable and notes payable (see Note 7, <I>Notes Payable</I> and
Note 8, <I>Related Party Transactions</I> in the notes to the Unaudited Condensed Consolidated Financial Statements and the <FONT STYLE="background-color: white">Consolidated
Financial Statements</FONT>), convertible notes, and the sale of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the Pre-existing
SPA, the Original Unsecured SPA, the Unsecured Streeterville SPA, the FFVV Joinder, and the Senyun Joinder (collectively the &ldquo;SPA
Commitments&rdquo;) (see Note 7, <I>Notes Payable</I> and Note 8, <I>Related Party Transactions </I>in the notes to the Unaudited Condensed
Consolidated Financial Statements and the <FONT STYLE="background-color: white">Consolidated Financial Statements</FONT>), we obtained
commitments from several investors. <FONT STYLE="background-color: white">As of December&nbsp;31, 2023, Optional Commitments under the
SPA Commitments totaled $366.0 million, of which $39.0 million was funded, $327.0 million remained to be funded, and $1.0 million was
outstanding.</FONT> As of June&nbsp;30, 2024, the SPA Commitments totaled $554.5 million, of which $343.2 million was funded, $211.3 million
remained to be funded, and $78.6 million in principal was outstanding. As of June&nbsp;30, 2024, Optional Commitments under the SPA Commitments
totaled $366.0 million, of which $47.2 million was funded, $318.8 million remained to be funded, and $9.2 million was outstanding. The
remaining amounts to be funded as of June&nbsp;30, 2024, are subject to the achievement of delivery milestones, satisfaction of closing
conditions, resolution of disputes with investors, and satisfaction or waiver of other conditions, including for a portion of such financing
an effective registration statement for the shares underlying the applicable notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may be unable to satisfy
the closing conditions under the SPA Commitments or obtain additional incremental convertible senior secured note purchasers under the
SPA Commitments or other debt or equity financing in a timely manner, on acceptable terms, or at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On November&nbsp;11, 2022,
we entered into a three-year Standby Equity Purchase Agreement (the &ldquo;SEPA&rdquo;) with YA II PN Ltd. (&ldquo;Yorkville&rdquo;).
Under terms of the SEPA, we may, at our option, issue and sell from time to time up to $200.0&nbsp;million (which can be increased up
to $350.0&nbsp;million in the aggregate under our option) of Class A Common Stock to an affiliate of Yorkville Advisors, subject to certain
limitations. <FONT STYLE="background-color: white">As of December&nbsp;31, 2023, we had the right to issue and sell up to an additional
$192.5 million, or $342.5 million if we exercises our option under the SEPA.</FONT> As of June&nbsp;30, 2024, we had the right to issue
and sell up to an additional $192.5 million, or $342.5 million if we exercise our option under the SEPA, of Class A Common Stock under
the SEPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">On
June 16, 2023, we filed a shelf registration on Form S-3 with the SEC (the &ldquo;Shelf Registration&rdquo;), which was declared effective
by the SEC on June 28, 2023. As a result, we may from time-to-time issue up to $300.0&nbsp;million of common stock and/or warrants in
the aggregate. As of December&nbsp;31, 2023, we had the right to sell up to $271.9 million under the Shelf Registration. Under applicable
SEC rules and regulations, because FF failed to timely file the 2023 Form 10-K it is not S-3 eligible and the Shelf Registration Statement
is no longer effective. See Note 11, Stockholders&rsquo; Equity, of the notes to the Consolidated Financial Statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, on September 26,
2023, we entered into a sales agreement with Stifel, Nicolaus &amp; Company, Incorporated, B. Riley Securities, Inc., A.G.P./Alliance
Global Partners, Wedbush Securities Inc. and Maxim Group LLC, as sales agents, to sell shares of Class A Common Stock, from time to time,
with aggregate gross sales proceeds of up to $90.0&nbsp;million pursuant to the Registration Statement as an &ldquo;at-the-market&rdquo;
offering under the Securities Act (the &ldquo;ATM Program&rdquo;). The ATM Program had been the primary source of liquidity for us since
September 2023. SEC rules and regulations, because we failed to timely file the 2023 Form 10-K and the Quarterly Report Form 10-Q for
the quarter ended March 31, 2024, it is not S-3 eligible and cannot access the ATM Program. As such, our current primary source of liquidity
is the issuance of various convertible note instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our ability to issue and sell
additional shares of common stock or warrants under the SEPA is constrained by the number of authorized shares of our common stock. We
must consider shares issuable under convertible debt, warrants or other obligations with equity rights. In addition, equity issuances
can potentially trigger provisions under the SPA Commitments that increase the number of shares to be issued upon conversion and reduce
the strike price of related warrants. This could result in us having inadequate authorized shares to meet our outstanding commitments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We project that we will require
substantial additional funds to continue operations and support production of the FF 91. If we are unable to find additional sources of
capital, we will not have sufficient resources to fund our outstanding obligations and continue operations and we will likely have to
file for bankruptcy protection and our assets will likely be liquidated. Our equity holders would likely not receive any recovery at all
in a bankruptcy scenario.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We continue to explore various
funding and financing alternatives to fund our ongoing operations and to ramp up production. The particular funding and financing mechanisms,
terms, timing, and amounts depend on our assessment of opportunities available in the marketplace and the circumstances of the business
at the relevant time. However, there have been delays in securing additional funding commitments, which have exacerbated supply chain
pressures, among other things. If our ongoing capital raising efforts are unsuccessful or significantly delayed, or if we experience prolonged
material adverse trends in our business, production will be delayed or decreased, and actual use of cash, production volume and revenue
for 2024 will vary from our previously disclosed forecasts, and such variances may be material. While we are actively engaged in negotiations
with potential financing sources, we may be unable to raise additional capital on terms acceptable to us or at all. In addition to the
risk that our assumptions and analyses may prove incorrect, the projections may underestimate the professional fees and other costs to
be incurred related to the pursuit of various financing options currently being considered and ongoing legal risks. Capital needs to fund
development of our remaining product portfolio will highly depend on the market success and profitability of the FF 91 and our ability
to accurately estimate and control costs. Apart from the FF 91 series, substantial additional capital would be required to fund operations,
research, development, and design efforts for future vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of and since June&nbsp;30,
2024, we were and have been in default on the SPA Commitments and we are presenting the related notes as current. Since April 2023, we
had been in default on, and since January&nbsp;1, 2024, have been in breach of, our debt agreement with Chongqing Leshi Small Loan Co.,
Ltd., a related party, with an outstanding principal balance of $7.6&nbsp;million and interest payable of $18.5 million as of June&nbsp;30,
2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><U>Sources of Liquidity</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 22.5pt">As of June&nbsp;30, 2024,
we maintained unrestricted cash on hand totaling $0.8&nbsp;million, which was held for working capital and general corporate purposes.
We also have access to various sources of additional capital, including the SEPA, the ATM Program, the SPA Commitments and other unsecured
convertible notes. Our current primary source of liquidity the issuance of various convertible note instruments. <FONT STYLE="background-color: white">As
of December&nbsp;31, 2023, our principal source of liquidity was cash on hand totaling $1.9 million, which was held for working capital
and general corporate purposes. We also have access to various sources of additional capital, including the SEPA and the SPA Commitments.&nbsp;</FONT>
Our ability to access these sources of capital and further information on amounts available is discussed in Note 2, <I>Liquidity and Capital
Resources and Going Concern</I> in the notes to the Unaudited Condensed Consolidated Financial Statements, and Consolidated Financial
Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Significant Related Party Notes Payable and
Notes Payable Facilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have been significantly
funded by notes payable from related parties and third parties. The related parties include employees as well as affiliates of employees
and affiliates and other companies controlled or previously controlled by our founder and Chief Product and User Ecosystem Officer. For
more information on the outstanding related party notes payable and notes payable as well as the related schedules of maturities, see
Note 7, <I>Notes Payable</I>, and Note 8, <I>Related Party Transactions</I>, of the notes to the Unaudited Condensed Consolidated Financial
Statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Related party notes payable
consists of the following as of June&nbsp;30, 2024:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-style: italic">(in thousands)</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Contractual<BR> Maturity<BR> Date</B></TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Contractual<BR> Interest<BR> Rates</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold; border-bottom: Black 1.5pt solid">Net<BR> Carrying<BR> Value</TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 55%; text-align: left">Related party notes &ndash; China</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: left; width: 20%">December 2023</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">18.0</TD>
    <TD STYLE="width: 1%; text-align: left">%</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD>
    <TD STYLE="width: 9%; text-align: right">7,577</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Related party notes &ndash; Unsecured Convertible</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">April 8, 2024</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0.0427</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1,951</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Related party notes&nbsp;&ndash; China various other</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Due on Demand</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&mdash;</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">3,805</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Related party notes&nbsp;&ndash; Convertible FFGP</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">May 2024</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4.27</TD>
    <TD STYLE="text-align: left">%</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD>
    <TD STYLE="text-align: right">250</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Related party notes&nbsp;&ndash; FFGP</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Various 2024</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">4.27%&nbsp;-&nbsp;5.27 </TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">%</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,576</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">15,159</TD>
    <TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Related party notes payable, current</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(15,159</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 4pt">Total: Related party notes payable, less current</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.35in">We have entered into notes payable agreements
with third parties, which consist of the following as of June&nbsp;30, 2024:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; border-bottom: Black 1.5pt solid; text-align: left; font-style: italic">(in thousands)</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center; font-weight: bold">Contractual<BR>
 Maturity&nbsp;Date</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Contractual<BR>
 Interest<BR>
 Rates</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Unpaid<BR>
 Principal<BR>
 Balance</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Fair Value<BR>
 Measurement<BR>
 Adjustments</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Original&nbsp;Issue<BR>
 Discount<BR>
 and<BR>
 Proceeds<BR>
 Allocated to<BR>
 Warrants</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Net<BR>
 Carrying<BR>
 Value</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; width: 28%; text-align: left">Pre-existing SPA Notes</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; width: 18%">Various</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 12%">10%-15%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">74,931</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(25,011</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">(7,205</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 7%; text-align: right">42,715</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Original Unsecured SPA Notes*</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Various dates in 2029</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">10%-15%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,815</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,501</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,503</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Original Unsecured Convertible Notes</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Various dates in 2024</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">4.27%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,080</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,105</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,185</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Notes&nbsp;payable&nbsp;&ndash; China other</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Due on Demand</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&mdash;%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,878</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,878</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left">Auto loans</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-bottom: 1.5pt; text-align: center">October 2026</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">6.99%</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">64</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">64</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-bottom: 4pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">110,768</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(21,717</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">(9,706</TD><TD STYLE="padding-bottom: 4pt; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">79,345</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left">Less: Related party notes payable</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,951</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left">Less: Notes payable, current portion</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(77,394</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left">Total: Notes payable, less current portion</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-bottom: 4pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">&mdash;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><I>*</I></TD><TD STYLE="text-align: justify"><I>includes amounts attributed to the Unsecured Streeterville
SPA</I></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All notes are classified as current as of June&nbsp;30, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Cash Flow Analysis</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">Presented below is a summary
of FF&rsquo;s cash flows for the fiscal year ended December 31, 2023:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">For the Year Ended<BR>
 December 31,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Net cash (used in) provided by</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(278,178</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(383,058</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(31,109</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(123,222</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">291,446</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,721</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Effect of exchange rate changes on cash and restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,352</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,038</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">Presented below is a summary
of FF&rsquo;s cash flows for the periods indicated:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center; font-style: italic"></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Six Months Ended <BR>
June 30,</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><I>(in thousands)</I></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2024</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center">&nbsp;<B>2023</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Net cash provided by (used in):</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; width: 76%; text-align: left">Operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(29,091</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(160,708</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(271</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,852</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,715</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">181,838</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Effect of exchange rate changes on cash and restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,604</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Operating Activities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">We continue to experience
negative cash flows from operations as we design and develop our vehicles and build our infrastructure both in the United States and China.
Our cash flows from operating activities are significantly affected by our cash investments to support the growth of our business in areas
such as R&amp;D associated with our electric vehicles, corporate planning, and general and administrative functions. Our operating cash
flows are also affected by our working capital needs to support growth and fluctuations in personnel-related expenditures, accounts payable,
accrued interest, other current liabilities, deposits, and other current assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash used in operating
activities was $278.2 million for the year ended December 31, 2023. The largest components of our cash used in operating activities during
the year ended December 31, 2023 were $286.1 million of operating losses, primarily driven by personnel and compensation expense of $98.0
million and professional services of $35.3 million as well as cost of goods sold of $42.6 million, and cash outflows related to increasing
inventory of $29.8 million and decreases to accrued expenses and other current and non-current liabilities of $42.5 million</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash used in operating
activities was $383.1 million for the year ended December 31, 2022. The largest components of our cash used by operating activities during
the year ended December 31, 2022 were professional and contracted services totaling $124.6 million, compensation, benefits and related
expenses totaling $120.4 million and prepaid insurance totaling $21.7 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash used in operating
activities was $29.1&nbsp;million for the six months ended June 30, 2024 as compared to $160.7&nbsp;million for the six months ended June
30, 2023. Cash used in operating activities was primarily made up of Net loss, depreciation expense, impairment on leases, changes in
fair value of and settlements on notes and related party notes payable and changes in working capital. The change in net cash used in
operating activities was primarily driven by decreases to net loss, to losses on settlement notes payable, and to changes in fair value
of notes payable and warrant liabilities, and by increases in depreciation expense, loss on impairment on leases, and loss on related
party notes payable, and a decrease in cash outflows from operating activities, partially offset by reductions in settlements on notes
payable, changes in the fair value of related party notes and a reduction in stock-based compensation expense.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Investing Activities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash used in investing
activities was $31.1 million and $123.2 million for the years ended December 31, 2023 and December 31, 2022, respectively, and is related
to acquisition of property and equipment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash used in investing
activities was $0.3&nbsp;million and $25.9&nbsp;million for the six months ended June 30, 2024 and 2023, respectively, and was related
to the significant decrease in the acquisition of fixed assets due to the reduction of liquidity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Financing Activities</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash provided by financing
activities was $291.4 million for the year ended December 31, 2023 and used in financing activities $6.7 million for the year ended December
31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Net cash provided by financing
activities during the year ended December 31, 2023 primarily consists of $210.5 million in proceeds from notes payable, $24.9 million
in proceeds from a sale and lease back transaction, the proceeds from the issuance of Class A Common Stock of $34.5 million, $21.0 million
in proceeds from related party notes payable, and the proceeds from exercise of warrants totaling $4.1 million, partially offset by issuance
costs of $2.5 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash used in financing
activities during the year ended December 31, 2022 primarily consists of cash payments of $87.3 million for settling notes payable and
accrued interest, $0.5 million for settling related party notes payable and accrued interest, $3.8 million for settling vendor payables
in trust, $1.9 million principal pay down for finance lease liabilities, and $0.8 million for repurchase and retirement of Class A Common
Stock. These were partially offset by $73.8 million in proceeds from the issuance of notes payable net of original issuance discounts,
$9.5 million from the exercise of stock options and $4.2 million in proceeds from the exercise of warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash provided by financing
activities was $26.7&nbsp;million and $181.8&nbsp;million for the six months ended June 30, 2024 and 2023, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash provided by financing
activities during the six months ended June 30, 2024 primarily consisted of $23.9 million in proceeds from notes payable, net of original
issue discount, and $3.0 million in proceeds from related party notes payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Net cash provided by financing
activities during the six months ended June 30, 2023 primarily consisted of $160.8 million in proceeds from notes payable, net of original
issue discount, and $4.1 million in proceeds from the exercise of warrants, offset by $1.8 million of notes payable transaction costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Effect of Exchange Rate Changes on Cash and
Restricted Cash</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">The effects of exchange rate
changes on cash and restricted cash was immaterial for the six months ended June 30, 2024 and $5.6 million for the six months ended June
30, 2023. The effects of exchange rate changes on cash and restricted cash result from fluctuations in the translation of assets and liabilities
denominated in foreign currencies, primarily Chinese Renminbi. Fluctuations in exchange rates against the U.S. Dollar may positively or
negatively affect our operating results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Off-Balance Sheet Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">We did not have any material
relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special
purpose entities, that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually
narrow or limited purposes. Thus, we did not have any off-balance sheet arrangements as of June&nbsp;30, 2024 and December&nbsp;31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Quantitative and Qualitative Disclosures About
Market Risk</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">This item is not applicable
as we are a smaller reporting company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Critical Accounting Estimates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">The preparation of our Unaudited
Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures of contingent liabilities, and the reported amounts of expenses during the reporting period. Management
has based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values that are not readily apparent from other sources.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Actual results may differ
from these estimates under different assumptions or conditions. Changes in the accounting estimates are reasonably likely to occur from
period to period. Accordingly, actual results could differ significantly from the estimates made by our management. To the extent that
there are material differences between these estimates and actual results, future financial statement presentation, financial condition,
results of operations, and cash flows will be affected. Given the global economic climate, estimates are subject to additional volatility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: justify; text-indent: 0.5in">Critical accounting estimates
are defined as estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably
likely to have a material impact on our financial condition or results of operations. Below is a list of critical accounting policies
the managements believes to reflect significant estimates and assumptions used in the preparation of the Consolidated Financial Statements.
For a description of our critical accounting estimates, see <I>Note 1, Nature of Business and Organization, and Summary of Significant
Accounting Policies</I> of the notes to Consolidated Financial Statements included herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 32%"><FONT STYLE="font-size: 10pt"><B>Judgements and Uncertainties</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Effect if Actual Results<BR>
 Differ from Assumptions</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B><I>Fair Value of Warrants</I></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FF has elected to measure certain warrants at fair value, mainly related to any related Pre-existing SPA notes. These warrants are liability classified instruments. Upon exercise, any difference between the fair value measurement and the exercise price would be recorded to the statement of operations.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FF estimates the fair value of warrants using a Monte Carlo simulation model where the significant assumptions used include the volatility of the FF&rsquo;s Class A Common Stock, the Company&rsquo;s expectations around the full ratchet trigger, the contractual term of the Pre-existing SPA Warrants, the risk-free rate and annual dividend yield. Fair value measurements associated with the liability-classified warrants represent Level 3 valuations under the fair value hierarchy.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">These estimates involve inherent uncertainties and the application of management&rsquo;s judgment. If FF had made different assumptions, the fair value of warrants and effect on the statement of operations due to exercise could have been different.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Expected volatility of the Class A Common Stock- FF determines the expected volatility by weighing the historical average volatilities of publicly traded industry peers and its own trading history. FF intends to continue to consistently apply this methodology using the same or similar public companies until a sufficient amount of historical information regarding the volatility of the its own Class A Common Stock price becomes available, unless circumstances change such that the identified companies are no longer similar to FF, in which case more suitable companies whose stock prices are publicly available would be utilized in the calculation.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">An increase in the risk-free interest rate will reduce the estimated fair value of a stock option grant, while a decrease in these factors will have an opposite effect.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Expectations around the full ratchet trigger - the warrants contain a provision to adjust the strike price if FF issues equity, under certain equity issuance mechanism, at a lower price. Management estimates the probability of this based on the current stock price.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Likewise, a decrease in volatility will decrease the estimated fair value of a stock option grant, while an increase in this factor will have the opposite effect.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Risk-free interest rate - The risk-free interest rate used to value awards is based on the United States Treasury yield in effect at the time of grant for a period consistent with the expected term of the award.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The Company does not expect to change the dividend yield assumption in the near future.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Dividend yield - The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends for the foreseeable future.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 32%"><FONT STYLE="font-size: 10pt"><B>Judgements and Uncertainties</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Effect if Actual Results<BR>
 Differ from Assumptions</B></FONT></TD></TR>
  <TR>
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B><I>Recognition and disclosure of contingent liabilities, including litigation reserves.</I></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FF is, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, the outcome of any such claims and disputes cannot be predicted with certainty.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Contingent liabilities, including litigation reserves involve a significant amount of judgment in determining whether a loss is probable and reasonably estimable due to the uncertainty involved in determining the likelihood of future events and estimating the financial statement impact of such events.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">If further developments or resolutions of a contingent matter are not consistent with our assumptions and judgments, we may need to recognize a significant charge in a future period related to an existing contingent matter.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">As of December 31, 2023 and 2022, FF had accrued legal contingencies of $21.6 million and $18.9 million, respectively, recorded within Accrued expenses and other current liabilities for potential financial exposure related to ongoing legal matters, primarily related to breach of contracts and employment matters, which are deemed both probable of loss and reasonably estimable. For the legal matters involving third party vendors, such as suppliers and equipment manufacturers, FF recorded an accrual in Accounts payable in the Consolidated Balance Sheets based on the amount invoiced by such vendors, which represents the minimum amount of loss out of the range of potential outcomes in accordance with ASC 450-20-30-1.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  </TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font-family: Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Description</B></FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center; width: 32%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Judgements
    and Uncertainties</B></FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Effect
    if Actual Results <BR>
    Differ from Assumptions</B></FONT></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif">
    <TD STYLE="font-family: Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Fair
    Value Measurements and Fair Value of Related Party Notes Payable and Notes Payable</I></B></FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 6pt Times New Roman, Times, Serif">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    accounting guidance for financial instruments allows entities to voluntarily choose to measure certain financial assets and liabilities
    at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless
    a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument
    should be reported in earnings at each subsequent reporting date.</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fair
    value measurement applies to financial assets and liabilities as well as other assets and liabilities carried at fair value on a
    recurring and nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or
    paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is
    a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset
    or liability. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded
    or disclosed at fair value, the Company considers the principal or most advantageous market in which the Company would transact and
    assumptions that market participants would use when pricing the asset or liability. </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain
    of the related party notes payable and notes payable contain embedded liquidation premiums with conversion rights that represent
    embedded derivatives whose value is directly related to the fair value of the Common Stock. As the value of the Common Stock increases,
    the value of these related party notes payable and notes payable increases, and as the value of Common Stock decreases, the value
    of these related party notes payable and notes payable decrease.</FONT></TD></TR>
  <TR STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
    has elected the fair value option for certain related party notes payable and notes payable with embedded derivatives. </FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of
    unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent,
    objective evidence surrounding the inputs used to measure fair value. A financial instrument&rsquo;s categorization within the fair
    value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy
    is as follows:</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 6pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 6pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="font-family: Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
    has elected to measure certain notes payable and related party notes payable at fair value. Specifically, the Pre-existing SPA Notes
    as they contain embedded liquidation premiums with conversion rights that represent embedded derivatives (see Note 7, Notes Payable,
    Note 8, Related Party Transactions and Note 13, Fair Value of Financial Instruments). The Company used a binomial lattice model and
    discounted cash flow methodology to value the Pre-existing SPA Notes. The significant assumptions used in the models include the
    volatility of the Class A Common Stock, the Company&rsquo;s expectations around the full ratchet trigger, the Company&rsquo;s debt
    discount rate based on a CCC rating, annual dividend yield, and the expected life of the instrument.</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
                                            1 - Valuations for assets and liabilities traded in active exchange markets, or interest
                                            in open-end mutual funds that allow a company to sell its ownership interest back at net
                                            asset value on a daily basis. Valuations are obtained from readily available pricing sources
                                            for market transactions involving identical assets, liabilities, or funds.</FONT></P>
                                    <P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
                                    <P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
                                    2 - Valuations for assets and liabilities traded in less active dealer, or broker markets, such as
                                    quoted prices for similar assets or liabilities or quoted prices in markets that are not active.
                                    Level 2 instruments typically include U.S. government and agency debt securities, and corporate obligations.
                                    Valuations are usually obtained through market data of the investment itself as well as market transactions
                                    involving comparable assets, liabilities or funds.</FONT></P>
                                    <P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
                                    <P STYLE="font-family: Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
                                    3 - Valuations for assets and liabilities that are derived from other valuation methodologies, such
                                    as option pricing models, discounted cash flow models and similar techniques, and not based on market
                                    exchange, dealer, or broker-traded transactions. Level 3 valuations incorporate certain assumptions
                                    and projections in determining the fair value assigned to such assets or liabilities. </FONT></P></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font-family: Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>
<P STYLE="margin: 0pt 0; font-size: 6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Description</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 32%"><FONT STYLE="font-size: 10pt"><B>Judgements and Uncertainties</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center; width: 33%"><FONT STYLE="font-size: 10pt"><B>Effect if Actual Results <BR>
Differ from Assumptions</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B><I>Impairment of Long-Lived Assets</I></B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FF its long-lived assets, consisting primarily of property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an assets (or asset groups) may not be recoverable. FF performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The recoverability of long-lived assets is determined by comparing the forecasted undiscounted cash flows attributable to such assets, including any cash flows upon their eventual disposition, to the assets carrying values. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, then the assets are written down to their fair value. </FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Increases or decreases in cash flow assumptions could cause corresponding increases to or decreases to the estimates of undiscounted cash flow amounts. Decreases in cash flow assumptions could cause management to incorrectly conclude that the assets (or asset groups) in question may not be recoverable and an asset impairment could be required.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">These forecasted undiscounted cash flows represent management&rsquo;s best estimates of the future outcomes. Assumptions that are significant to estimate the cash flows utilized include but are not limited to management&rsquo;s estimates of future production, sales revenue, lease revenue and all related costs as well as other assumptions such as future capital expenditures and volumetric growth rates.</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recent Accounting Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><BR>
See the sections titled &ldquo;<I>Recent Accounting Pronouncements&rdquo; in </I>Note 1, <I>Nature of Business and Organization, and Summary
of Significant Accounting Policies</I> in our Consolidated Financial Statements included herein for a discussion about our recently adopted
accounting pronouncements and the recently issued accounting pronouncements not yet adopted which are determined to be applicable to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_009"></A>BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Unless the context indicates
otherwise, references in this prospectus to &ldquo;FFIE&rdquo; refer to Faraday Future Intelligent Electric Inc. (f/k/a Property Solutions
Acquisition Corp.), a holding company incorporated in the State of Delaware, and not to its subsidiaries, and references herein to the
&ldquo;Company,&rdquo; &ldquo;FF,&rdquo; &ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our&rdquo; and similar terms refer to FFIE and its
consolidated subsidiaries. We refer to our primary operating subsidiary in the U.S., Faraday&amp;Future Inc., as &ldquo;FF U.S.&rdquo;
We refer to all our subsidiaries organized in China (including Hong Kong) collectively as the &ldquo;PRC Subsidiaries,&rdquo; a complete
list of which is set forth in Exhibit 21.1 to this prospectus. As of December 31, 2023, our only operating subsidiaries in mainland China
and in Hong Kong are FF Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive Technology Co.,
Ltd., each of which was organized in the PRC. The discussion of FF&rsquo;s business and the electric vehicle industry below is qualified
by, and should be read in conjunction with, the discussion of the risks related to FF&rsquo;s business and industry detailed elsewhere
in this prospectus. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Company Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF is a California-based global
shared intelligent mobility ecosystem company with a vision to disrupt the automotive industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With headquarters in Los Angeles,
California, the Company designs and engineers next-generation intelligent, connected, electric vehicles. FF manufactures vehicles at its
production facility in Hanford, California, with additional future production capacity needs addressed through a contract manufacturing
partner in South Korea. FF is also exploring other potential contract manufacturing options in addition to the contract manufacturer in
South Korea. The Company has additional engineering, sales, and operational capabilities in China and is exploring opportunities for potential
manufacturing capabilities in China through a joint venture or other arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since its founding, the Company
has created major innovations in technology and products, and a user centered business model. We believe these innovations will enable
FF to set new standards in luxury and performance that will enhance quality of life and redefine the future of intelligent mobility.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">FFIE
is a holding company incorporated in the State of Delaware. As a holding company with no material operations of its own, FFIE conducts
its operations through its operating subsidiaries. We currently have a majority of our operations in the U.S. conducted through our U.S.-domiciled
operating subsidiaries. We also operate our business in the People&rsquo;s Republic of China and plan to have significant operations in
the future in both Mainland China and Hong Kong (together, &ldquo;PRC&rdquo; or &ldquo;China&rdquo;) through our subsidiaries organized
in the PRC (collectively, the &ldquo;PRC Subsidiaries&rdquo;). Investors in FFIE&rsquo;s Class A Common Stock (the &ldquo;Class A Common
Stock,&rdquo; and with FFIE&rsquo;s Class B Common Stock, the &ldquo;Common Stock&rdquo;) are investors solely of FFIE, a Delaware holding
company. There are various risks associated with our current operating presence in China and the potential expansion of our operations
in China (including Hong Kong), which is subject to political and economic influence from China. Recently, the Chinese government initiated
a series of regulatory actions and made statements to regulate business operations in China with little advance notice, including cracking
down on illegal activities in the securities market, enhancing supervision over China-based companies that seek to conduct offshore securities
offering or to be listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly
enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon legislative or administrative regulation-making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated
if any, and the potential impact such modified or new laws and regulations will have on our business operations, our ability to accept
foreign investments and to maintain FFIE&rsquo;s listing on a U.S. exchange. The Chinese government may intervene or influence the operations
of our PRC Subsidiaries, or at any time exert more control over offerings conducted overseas and foreign investment in China-based issuers
</FONT>&nbsp;<FONT STYLE="font-size: 10pt">in accordance with PRC laws and regulations, which could result in a material change in our
operations and/or a material reduction in the value of our Class A Common Stock and public warrants. Additionally, the governmental and
regulatory interference could significantly limit or completely hinder our and our investors&rsquo; ability to offer or continue to offer
our shares of Class A Common Stock to investors and cause the value of such securities to significantly decline or be worthless. For a
detailed description of risks related to our PRC operations, see &ldquo;<I>Risk Factors - Risks Related to FF&rsquo;s Operations in China.</I>&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Technology</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s technology innovations
include its proprietary Variable Platform Architecture (&ldquo;VPA&rdquo;), propulsion system, and Internet, Autonomous Driving, and Intelligence
(&ldquo;I.A.I.&rdquo;) systems.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The VPA is a modular skateboard-like
platform which can be sized to accommodate various motor and powertrain configurations, enabling fast and capital efficient product development
for both the passenger and commercial vehicle segments. FF&rsquo;s propulsion system includes an industry-leading inverter design, and
a propulsion system that provides a competitive edge in electric drivetrain performance. FF&rsquo;s advanced I.A.I. technology offers
high-performance computing, high speed internet connectivity, Over-the-air (&ldquo;OTA&rdquo;) updates, an open ecosystem for third party
application integration, and an advanced autonomous driving-ready system, in addition to several other proprietary innovations that enable
the Company to build a highly personalized user experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2023, FF completed the upgrade
for the FF 91 Futurist vehicle from PT Gen 1.0 to PT Gen 2.0. This generational upgrade consisted of 26 significant upgrades to systems
and core components of both the EV area (the vehicle) and the I.A.I area (the advanced core of intelligence, autonomous driving and internet).
The 13 key upgrades to the EV area include improvements to the powertrain, battery, charging, chassis, and interior, and the 13 key upgrades
to I.A.I. include upgrades in computing, sensing, user interaction, and communication, as well as upgrades to the newest technology. Along
with other vehicle performance improvements, FF&rsquo;s technology is designed to deliver superior acceleration of 2.27 seconds from 0
to 60 mph and safety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In January 2024, FF delivered
its first major OTA upgrades for the FF 91 2.0 since it began making deliveries, consisting of 752 new additions and 846 improvements.
These upgrades and enhancements showcased a breakthrough in FF&rsquo;s user experience and technology and further reflected trends of
&ldquo;All-AI, All-Hyper, All-Ability, and user-focused Co-Creation value.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Since inception, FF has developed
a differentiated portfolio of valuable intellectual property. As of December 31, 2023, the Company had been granted approximately 660
patents (with approximately a third issued in the U.S., and slightly less than two-thirds issued in China, and the remaining issued in
other jurisdictions). These patents are issued to various FFIE entities, including Faraday Future, Faraday &amp; Future, FF Automotive
(China) Co., Ltd., Leka Automotive Intelligent Technology (Beijing) Co., Ltd., and LeEco Eco-Car (Zhejiang) Co., Ltd. Key patents include
FF&rsquo;s inverter assembly, integrated drive and motor assemblies, methods and apparatus for generating current commands for an interior
permanent magnet (&ldquo;IPM&rdquo;) motor, and keyless vehicle entry system. These key patents will expire in 2035 and 2036.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Products</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s B2C (business-to-consumer)
passenger vehicle pipeline includes the FF 91 series, the FF 81 series, and the FF 71 series, each designed to target different passenger
vehicle segments. In addition to passenger vehicles, and leveraging its VPA and other proprietary technology, FF plans to produce a Smart
Last Mile Delivery (&ldquo;SLMD&rdquo;) vehicle to address the high growth last mile delivery market. The FF 91 is the current production
flagship model, and future pipeline models are contingent upon funding availability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each of the three passenger
vehicle series is planned in two different configurations (the FF 91 also comes in a limited edition model). At the top end, the &ldquo;Futurist&rdquo;
configurations will drive FF&rsquo;s core brand values (design, superior driving experience, and personalized user experience enabled
through FF&rsquo;s unique I.A.I technologies) to the fullest. Offering multiple configurations allows FF to participate in a wide price
range within each vehicle series.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The
FF 91 series is designed to compete with Maybach, Bentley Bentayga, Lamborghini Urus, Ferrari Purosangue, Mercedes S-Class, Rolls Royce
Spectre, Porsche Taycan, BMW 7-Series, etc. On May 31, 2023, FF launched the Ultimate AI TechLuxury FF 91 2.0 Futurist Alliance, as well
as the eco product aiHypercar+, open for reservations in both the United States and China. On August 12, 2023, FF celebrated the delivery
of the first FF 91 2.0 Futurist Alliance to the first Developer Co-Creator. As of the date of this prospectus, the Company has delivered
14 cars.</FONT> </TD>
</TR><TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left">&#9679;</TD><TD STYLE="text-align: justify">FF 81 series, FF&rsquo;s second passenger vehicle, is envisioned to be a premium mass market electric
connected vehicle positioned to compete against Tesla Model S and Model X, Nio ES8, BMW 5-series, and similar vehicles.</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
     <TR STYLE="vertical-align: top; text-align: justify">
    <TD>&nbsp;</TD>
<TD STYLE="text-align: left">&#9679;</TD><TD STYLE="text-align: justify"> FF 71 series, FF&rsquo;s mass market passenger vehicle, plans to integrate connectivity and advanced technology
into a smaller vehicle size and positioned to compete against Tesla Model 3 and Model Y, BMW 3-series, and similar vehicles.</TD></TR>
     </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Product Positioning </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All FF passenger vehicles will
share common brand &ldquo;DNA&rdquo; of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Intelligence, Internet and connectivity;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">modern design: styling;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">superior driving experience:
leading power, performance and driving range; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">personalized user experience:
space, comfort and internet experience</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The flagship FF 91 series with
its recent product and technology upgrade to PT Gen 2.0 will define the FF brand DNA. This DNA will carry over to FF 81 and FF 71 series
vehicles at lower price points. With such brand DNA, FF believes its products will be ahead of competition in their respective segments
in terms of design, driving experience, interior comfort, connectivity, and user experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Robust Hybrid Manufacturing Strategy </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To implement a capital light
business model, FF has adopted a hybrid global manufacturing strategy consisting of its refurbished manufacturing facility in Hanford,
California and a collaboration with Myoung Shin, a contract manufacturing partner in South Korea. FF is also exploring other potential
contract manufacturing options in addition to the contract manufacturer agreement in South Korea. The Company is also exploring the possibility
of manufacturing capacity in China through a joint venture or other arrangement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date hereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FFIE leased a 1.1 million square
foot manufacturing facility in Hanford, California with an expected production capacity of approximately 10,000 vehicles per year; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FFIE entered into a definitive
contract manufacturing and supply agreement with Myoung Shin Co., Ltd. (&ldquo;Myoung Shin&rdquo;), a South Korea-based automotive manufacturer
and parts supplier, to manufacture the Company&rsquo;s second vehicle, the FF 81. The agreement has an initial term of nine years from
the start of production of the FF 81. Pursuant to the agreement, Myoung Shin shall maintain sufficient manufacturing capabilities and
capacity to supply FF 81 vehicles to FF in accordance with the Company&rsquo;s forecasts and purchase orders. FF and Myoung Shin will
each manufacture and supply certain FF 81 parts that Myoung Shin will use in the manufacture and assembly of FF 81 vehicles.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Distribution Model</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF launched its first passenger
vehicles in the U.S. in 2023. Additional markets may be added thereafter. FF plans to utilize a direct sales model integrating online
and offline sales channels to drive sales and user (including customers, drivers, and passengers of FF vehicles) operations to continuously
create value. FF&rsquo;s offline sales are planned through FF&rsquo;s self-owned stores as well as FF Partner-owned stores and showrooms.
The self-owned stores are expected to help establish the FF brand and provide seamless vehicle purchase experience, while the partner-owned
stores and showrooms will enable expansion of the sales and distribution network without substantial capital investment by FF.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FF&rsquo;s Competitive Strengths </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s products, technology,
team and business model provide strong competitive differentiation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>FF&rsquo;s proprietary VPA </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s proprietary VPA
is a skateboard-like platform that incorporates the critical components of an electric vehicle, and can be sized to accommodate various
motor and powertrain configurations. This flexible modular design supports a range of consumer and commercial vehicles and facilitates
rapid development of multiple vehicle programs to reduce cost and time to market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Product performance with industry-leading
propulsion technology</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s propulsion system
includes an industry-leading inverter design and proprietary drive propulsion system. FF&rsquo;s proprietary FF Echelon Inverter has the
technological advantage of driving a large amount of current in a small space using proprietary parallel Insulated Gate Bipolar Transistors
(&ldquo;IGBTs&rdquo;), achieving low inverter losses and high efficiency. The propulsion system has high torque accuracy with fast transient
response. The electric motor drive units are fully integrated with the inverter, transmission and control unit to create industry-leading
volume and design efficiency. Propelled by an integrated FF designed powertrain, FF&rsquo;s vehicles can achieve leading horsepower, efficiency,
and acceleration performance as recently attested by the U.S. Environmental Protection Agency (&ldquo;EPA&rdquo;) and California&rsquo;s
Air Resources Board (&ldquo;CARB&rdquo;) by confirming a range of 381 miles on a single charge and internally measured acceleration of
2.27 seconds from 0 to 60 mph for the FF 91.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Internet, Autonomous Driving, and Intelligence
(&ldquo;I.A.I&rdquo;) Technology </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s advanced I.A.I.
technology offers high-performance computing, high speed internet connectivity, OTA updates, an open ecosystem for third party application
integration, and an advanced autonomous driving-ready system, in addition to several other proprietary innovations that enable the Company
to build an advanced highly personalized user experience. The FF 91 series will feature a high-performance dual systems-on-a-chip (&ldquo;SoC&rdquo;)
computing platform for in-vehicle infotainment, a NVIDIA based autonomous driving hardware platform, and a high-speed connectivity system
that will be capable of up to three simultaneous 5G connections. Together, these systems will deliver a highly intelligent voice-first
user experience, and seamless cloud connectivity and a vehicle that is Level 3 highway autonomous driving ready.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s I.A.I system is
built on an enhanced Android Automotive code base and is upgraded with each release of Google&rsquo;s platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All FF vehicles use FF&rsquo;s
proprietary FFID unique identifier to deliver personalized content, apps and experiences. FFID provides a unique FF user profile that
ensures a consistent experience across the FF Ecosystem, as the user goes from one seat to another or even from one vehicle to another.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Strong intellectual property portfolio </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF has significant capabilities
in the areas of vehicle engineering, vehicle design and development, as well as software, internet, and AI. The Company has also developed
a number of proprietary processes, systems and technologies across these areas. FF&rsquo;s research and development efforts have resulted
in a strong intellectual property portfolio across battery, powertrain, software, user interface design and user experience design (&ldquo;UI/UX&rdquo;),
and advanced driver-assistance systems, among other areas. FF&rsquo;s proprietary inverter design provides high current and is integrated
into the electric drive unit, creating a high power-to-weight ratio. The patented keyless entry technology recognizes the user from a
distance, opens (rather than simply unlocking) doors and customizes the user&rsquo;s seating area using facial-recognition-prompted download
of FFID data. The eyes-free on-screen gestures controls enable users to open or close doors with one swipe, adjust temperature or volume
with three fingers anywhere on the Center Display. Patented autonomous driving technology will allow users to find empty space in a parking
lot and autonomously park using cameras, radars, LIDARs (Light Detection and Ranging), ultrasound and an inertial measurement unit (&ldquo;IMU&rdquo;)
(available after production and delivery via a software upgrade). FF believes its strong intellectual property portfolio will allow continued
differentiation from its competitors and shorten time to market for future products.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Visionary management with a strong record
of success </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF is led by a visionary management
team with a unique combination of automotive, communication, and internet experience. FF&rsquo;s Global CEO, Matthias Aydt has been at
FF for nearly eight years, before appointed the global CEO, he had previously served successively as head of Product Execution, head of
Vehicle R&amp;D and Vehicle engineering, Head of Product Definition &amp; Mobility Ecosystems, as well as head of Business Development.
Matthias Aydt has over 40 years of experience in luxury OEMs across technology, operations, and general management, including developing
and growing multinational organizations, establishing cross-functional work environments, designing and developing processes, project
management processes, and simultaneous engineering processes. Mr. Aydt has also received over 15 registered patents during his career
and is deeply committed to the Company, its employees, users, and investors in fulfilling the vision for a sustainable transportation
future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s founder and Chief
Product and User Ecosystem Officer, Mr. Yueting Jia, focuses on product and mobility ecosystem; internet and AI; and advanced R&amp;D
technology. Mr. Jia founded Leshi Information Technology Co., Ltd., a video streaming website in 2004. He also founded Le Holdings Co.
Ltd. (&ldquo;LeEco&rdquo;), an internet ecosystem and technology company with businesses including smart phones, smart TVs, smart cars,
internet sports, video content, internet finance and cloud computing. FF&rsquo;s other management team members have significant product,
industry and leadership experience in areas such as vehicle engineering, battery, powertrain, software, internet, AI, and consumer electronics.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Innovative Marketing and Sales Approach
Through User Co-Creation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As we look forward, FF&rsquo;s focus
is set on continued ramp of vehicle production and building its brand with Co-Creation. And these initiatives do more than just elevate
the brand presence; they cultivate a deep connection between FF and its community, offering an enriched brand journey.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At its core, Co-Creation transcends
mere collaboration; it&rsquo;s the manifestation of FF&rsquo;s commitment to centering our users in all our endeavors. Through collaborative
partnerships with Co-Creators, the Company believes that substantial value can be accessed across various aspects such as product development,
technological development, brand amplification, trust and loyalty, pricing power, strategic positioning, and brand marketing. This paradigm
sets us apart in the dynamic EV landscape, ensuring our offerings are not merely technologically superior but also resonate with the ever-evolving
expectations and aspirations of our clientele.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Electric Vehicle Industry Overview and Market
Opportunity </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">McKinsey &amp; Company released
a public report titled &ldquo;Five trends shaping tomorrow&rsquo;s luxury-car market&rdquo; in July, 2022 that segments the luxury-car
market based on four manufacturers&rsquo; suggested retail price (MSRP) tiers. These tiers consist of vehicles priced from $80,000 to
$149,000, $150,000 to $299,000, $300,000 to $500,000, and above $500,000. Each of these four luxury segments are projected to expand at
a compound annual growth rate of between 8 and 14 percent through 2031. In contrast, McKinsey projected that the market for cars with
an MSRP of less than $80,000 would remain virtually flat through the same time period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Driven by China&rsquo;s new
energy vehicle (&ldquo;NEV&rdquo;) credit and European CO2 regulations as well as city policies restricting new internal combustion engine
(&ldquo;ICE&rdquo;) vehicle sales, electric vehicle sales in China and Europe are estimated to exceed 65% of all passenger electric vehicle
sales by 2030, according to the Electric Vehicle Outlook 2022 report, a long-term forecast published by Bloomberg New Energy Finance (&ldquo;BNEF
Report&rdquo;). In addition, since many U.S. households have the infrastructure to install home charging, they are ideal adopters of electric
vehicles. According to the BNEF Report, by 2040, over three-quarters of all new passenger vehicles sold will be electric, with markets
in China and parts of Europe achieving even higher penetration. For commercial electric vehicles, demand for electric small vans, and
trucks are expected to rise quickly, with the U. S., Europe, and China markets expanding faster than the overall market, according to
the BNEF Report. In addition, the report notes that light-duty commercial vehicles will see the greatest surge in demand for electric
drivetrains among all commercial vehicles. FF believes its U.S. and China dual-home market strategy, as well as its innovative DNA, strong
technology portfolio, and emphasis on design, driving experience and personalized user experience will position it well in the passenger
electric vehicle segments in these markets. By leveraging the scalable design and modularity of FF&rsquo;s variable platform architecture,
FF is well-positioned to capitalize on growing demands for light, commercial electric vehicles. Additionally, FF&rsquo;s robust vehicle
engineering capabilities and extensive portfolio of technologies offer significant future licensing and strategic partnership opportunities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Key Drivers for Electric Vehicle Market
Growth </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Several important factors are
contributing to the popularity of electric vehicles, in both the passenger electric vehicle and light-duty commercial vehicle segments.
FF believes the following factors will continue to drive growth in these markets:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Increasing Environmental Awareness and Tightening
Emission Regulations</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Environmental concerns have
resulted in tightening emission regulations globally, and there is a broad consensus that further emission reductions will require increased
electrification in the automotive industry. The cost of regulatory compliance for ICE powertrains is rising sharply due to the natural
limitations of traditional ICE technologies. In response, global original equipment manufacturers (&ldquo;OEMs&rdquo;) are aggressively
shifting their strategies toward electric vehicles. At the same time, consumers are more concerned about the impact of goods they purchase,
both on their personal health and the environment. As consumer awareness increases, zero emission transportation has become a popular
and widely advocated urban lifestyle which has accelerated further development of the electric vehicle market. Consumer pressure can also
be seen in the commercial electric vehicle market. Being encouraged by their customers to reduce their carbon footprints, retailers, logistics
companies, and other corporations are highly incentivized to transition their existing fleets or new vehicle purchases toward electric
vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Decreasing Battery and Electric Vehicle Ownership
Costs</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Battery and battery-related
costs generally represent the most expensive components of an electric vehicle. The falling price of lithium-ion batteries is expected
to be among the most important factors affecting electric vehicle penetration in the future. Additionally, the average battery energy
density is expected to increase with continuous improvements in battery chemistries, improved materials, advanced engineering, and manufacturing
efficiencies. With improvements in battery technology and economies of scale, battery production costs (translated to electric vehicle
ownership costs) should continue to decrease. The BNEF Report stated that the average lithium-ion battery price had fallen by 89% from
2010 to 2021 to $131/kWh. They projected the cost of lithium-ion batteries would fall below $100/kWh by 2024 and continue to decline as
advancements in manufacturing and technology continue. According to the BNEF Report, price parity between electric vehicles and ICE is
expected to be reached by the mid-2020s in most vehicle segments, subject to variation between geographies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Strong Regulatory Push </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An increasing number of countries
are encouraging the adoption of electric vehicles or a shift away from fossil-fuel-powered vehicles. For example, in the U.S., both states
and municipalities have begun to roll out legislation banning combustion engines, with California mandating that every new passenger car
and truck sold to be zero-emission by 2035, and every new medium and heavy-duty truck sold be zero-emission by 2045. Fifteen additional
U.S. states and Washington, D.C. have announced they intend to follow California&rsquo;s lead in transitioning all sales of heavy-duty
trucks, vans and buses to zero-emission, with potentially more to follow in coming years. In China, the focused regulatory push has been
one of the strongest drivers of NEV penetration. In recent years, the Chinese government implemented a series of favorable policies encouraging
the purchase of electric vehicles and construction of electric vehicle charging infrastructure. Since 2015, the Chinese regulatory authorities
have provided subsidies to purchasers of electric vehicles. Although previous purchase subsidies were reduced in China by approximately
half in 2019, the Chinese government has continued to provide subsidies for charging infrastructure construction. Since 2016, the Chinese
central finance department has been incentivizing certain local governments with funds and subsidies for the construction and operation
of charging facilities and other relevant charging infrastructure, such as charging stations and battery swap stations. Europe, UK, Denmark,
Iceland, Ireland, the Netherlands, Slovenia, and Sweden have all announced plans to phase out combustion engines in some form or fashion
by 2030. These legislative tailwinds have already begun to force some legacy OEMs toward electrification, creating a strong need for a
modular, flexible, and cost-efficient electric vehicle solution, which will increase competition in the alternative energy vehicle industry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Growth of Electric &ldquo;Shared Mobility&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to the BNEF Report,
the global shared mobility fleet (<I>i.e</I>., ride-hailing and car-sharing) is expected to represent more than 15% of the total kilometers
traveled by passenger vehicles by 2040, up from less than 5% in 2019. Bloomberg data also predicted that due to electric vehicles&rsquo;
lower operating costs, they are anticipated to account for over 75% of shared mobility vehicles by 2040, representing a dramatic increase
from current low single digit penetration. At the same time, as vehicle consumers move to rely upon shared mobility fleets, and view ride-hailing
and car-sharing as a service, such trends may partially offset passenger vehicle demand growth.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Corporate History and Milestones</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF U.S., the Company&rsquo;s
primary U.S. operating subsidiary, was incorporated and founded in the State of California in May 2014. In July 2014, LeSee Automotive
(Beijing) Co., Ltd. (&ldquo;LeSee Beijing&rdquo;), which was previously the Company&rsquo;s primary Chinese operating entity, was formed
in China.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To facilitate global investment
of FF&rsquo;s business and operations in different jurisdictions, FF established a Cayman Islands holding company structure for the entities
within the group. As part of these efforts, Smart Technology Holdings Ltd. (formerly known as FF Global Holdings Ltd.) was incorporated
on May 23, 2014 in the Cayman Islands, which directly or indirectly owned and/or controlled 100% of the shareholding of all operating
subsidiaries in the group. In March 2017, FF established FF Automotive (China) Co., Ltd., as a Chinese wholly-foreign-owned entity (&ldquo;WFOE&rdquo;).
As part of a broader corporate reorganization, and to facilitate third-party investment, FF incorporated its top-level holding company,
FF Intelligent Mobility Global Holdings Ltd. (formerly known as Smart King Ltd.), in the Cayman Islands in November 2017, as the parent
company of Smart Technology Holdings Ltd. To enable effective control over FF&rsquo;s Chinese operating entity and its subsidiaries without
direct equity ownership, in November 2017, the WFOE entered into a series of contractual arrangements (&ldquo;VIE contractual arrangements&rdquo;)
with LeSee Beijing and LeSee Zhile Technology Co., Ltd., which previously held 100% of LeSee Beijing. The VIE contractual arrangement
enabled FF to exercise effective control over LeSee Beijing and its subsidiaries, to receive substantially all of the economic benefits
of such entities, and to have an exclusive option to purchase all or part of the equity interests in LeSee Beijing. The VIE contractual
arrangements were adjusted in the past three years and were terminated on August 5, 2020. LeSee Beijing is currently owned 99% by the
WFOE.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The organizational chart below
shows FFIE&rsquo;s operating subsidiaries* as of the date hereof:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_003.jpg" ALT="" STYLE="width: 828px; height: 461px">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><I>Excludes subsidiaries with
immaterial operations. FF Hong Kong Holding Limited is a holding company subsidiary organized in Hong Kong. As of the date hereof, LeSEE
Automotive (Beijing) Co. Ltd., a subsidiary organized in China, has immaterial operations.</I></FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>PRC Subsidiaries</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FFIE is a holding company incorporated
in the State of Delaware. &ldquo;FF U.S.&rdquo;, FF&rsquo;s primary U.S. operating subsidiary, was incorporated and founded in the State
of California in May 2014. We refer to all our subsidiaries organized in China (including Hong Kong) collectively as the &ldquo;PRC Subsidiaries.&rdquo;
A complete list of our subsidiaries is set forth in <I>Exhibit 21.1 </I>to this Registration Statement on Form S-1. As of December 31,
2023, our only operating subsidiaries in China (including Hong Kong) are FF Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co.,
Ltd. and Shanghai Faran Automotive Technology Co., Ltd., each of which was organized in the PRC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>How Cash is Transferred Through Our Corporate
Organization</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The PRC has currency and capital
transfer regulations that require us to comply with certain requirements for the movement of capital in and out of the PRC. FFIE is able
to transfer cash (U.S. Dollars) to the PRC Subsidiaries through capital contributions (increasing FFIE&rsquo;s capital investment in the
PRC Subsidiaries). FFIE may receive cash or assets declared as dividends from the PRC Subsidiaries. The PRC Subsidiaries can transfer
funds to each other when necessary, by way of intercompany loans in the following manners:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt; font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">FF Hong Kong Holding Limited, as the holding company of all the other PRC
Subsidiaries, can transfer cash to any PRC Subsidiary through capital contribution. We note Hong Kong&rsquo;s banking system is outside
PRC mainland&rsquo;s banking system. As a result, when FF Hong Kong Holding Limited transfers cash to a PRC Subsidiary, it is required
to follow the SAFE (as defined below) process and regulation.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">FF Hong Kong Holding Limited, as the holding company of all the other PRC Subsidiaries, may receive cash
or assets declared as dividends from the other PRC Subsidiaries.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Among PRC Subsidiaries other than FF Hong Kong Holding Limited, one PRC Subsidiary can provide funds through
intercompany loan to another PRC Subsidiary and each such PRC Subsidiary is required to follow the rules of China Banking Regulatory Commission
and other relevant Chinese authorities. Additionally, one PRC Subsidiary can transfer cash to its subsidiary through capital contribution,
and any PRC Subsidiary may receive cash or assets declared as dividends from any of its subsidiaries.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In 2022 and 2023, FF U.S. extended
loans in an aggregated amount of $8.0 million and $16.3 million, respectively, to FF Hong Kong Holding Limited to fund the operations
of the PRC Subsidiaries. We will continue to assess the PRC Subsidiaries&rsquo; requirements to fund their operations and intend to effect
additional contributions as appropriate. As of December 31, 2023, our only operating subsidiaries in China (including Hong Kong) are FF
Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive Technology Co., Ltd., each of which was
organized in the PRC. The PRC Subsidiaries have not transferred cash or other assets to FFIE, including by way of dividends. FFIE does
not currently plan or anticipate transferring cash or other assets from our operations in China to any non-Chinese entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Capital contributions to PRC
companies are mainly governed by the Company Law and Foreign Investment Law of the People&rsquo;s Republic of China, and the dividends
and distributions from the PRC Subsidiaries are subject to regulations and restrictions of the PRC on dividends and payment to parties
outside of the PRC. Applicable PRC law permits payment of dividends to FFIE by our PRC Subsidiaries only out of their net income, if any,
determined in accordance with PRC accounting standards and regulations. Our operating PRC Subsidiaries are required to set aside a portion
of their net income, if any, each year to fund general reserves for appropriations until such reserves have reached 50% of the relevant
entity&rsquo;s registered capital. These reserves are not distributable as cash dividends. A PRC company is not permitted to distribute
any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together
with distributable profits from the current fiscal year. In addition, registered share capital and capital reserve accounts are also restricted
from withdrawal in the PRC, up to the amount of net assets held in each operating subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>PRC Restrictions on Foreign Exchange and
Transfer of Cash</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under PRC laws, if certain
procedural requirements are satisfied, the payment of current account items, including profit distributions and trade and service related
foreign exchange transactions, can be made in foreign currencies between entities, across borders, and to U.S. investors without prior
approval from State Administration of Foreign Exchange (the &ldquo;SAFE&rdquo;) or its local branches. However, where Chinese Yuan (&ldquo;CNY&rdquo;)
is to be converted into foreign currency and remitted out of China to pay capital expenses, such as the repayment of loans denominated
in foreign currencies, approval from or registration with SAFE or its authorized banks is required. The PRC government may take measures
at its discretion from time to time to restrict access to foreign currencies for current account or capital account transactions. If the
foreign exchange control system prevents our PRC Subsidiaries from obtaining sufficient foreign currencies to satisfy their foreign currency
demands, our PRC Subsidiaries may not be able to pay dividends in foreign currencies to FFIE. Further, we cannot assure you that new regulations
or policies will not be promulgated in the future that would have the effect of further restricting the remittance of CNY into or out
of the PRC. We cannot assure you, in light of the restrictions in place, or any amendment thereof, that the PRC Subsidiaries will be able
to fund their future activities which are conducted in foreign currencies, including the payment of dividends.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Furthermore, under PRC laws,
dividends may be paid only out of distributable profits. Distributable profits are the net profit as determined under PRC GAAP, less any
recovery of accumulated losses and appropriations to statutory and other reserves required to be made. Our PRC Subsidiaries shall appropriate
10% of the net profits as reported in their statutory financial statements (after offsetting any prior year&rsquo;s losses) to the statutory
surplus reserves until the reserves have reached 50% of their registered capital. As a result, our PRC Subsidiaries may not have sufficient,
or any, distributable profits to pay dividends to us. See &ldquo;<I>Risk Factors-Risks Related to FF&rsquo;s Operations in China-FFIE
is a holding company and, in the future, may rely on dividends and other distributions on equity paid by the PRC Subsidiaries to fund
any cash and financing requirements that FFIE may have, and the restrictions on PRC Subsidiaries&rsquo; ability to pay dividends or make
other payments to FFIE could restrict FFIE&rsquo;s ability to satisfy its liquidity requirements and have a material adverse effect on
FFIE&rsquo;s ability to conduct its business</I>&rdquo; for a more detailed discussion of the relevant risks relating to restrictions
on foreign exchange and transfer of cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Requirements Under PRC Laws and Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under current PRC laws and
regulations, each of our PRC Subsidiaries is required to obtain a business license to operate in the PRC. Our PRC Subsidiaries have all
received the requisite business license to operate, and no application for business license had been denied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As our operations in the PRC
expand, our PRC Subsidiaries will be required to obtain approvals, licenses, permits and registrations from PRC regulatory authorities,
such as the State Administration for Market Regulation, the National Development and Reform Commission, Ministry of Commerce (&ldquo;MOFCOM&rdquo;),
and the Ministry of Industry and Information Technology (&ldquo;MIIT&rdquo;), which oversee different aspects of the electric vehicle
business. As of December 31, 2023, no application by our PRC Subsidiaries for any such approvals, licenses, permits and registrations
that are currently applicable to them had been denied, but there can be no assurance that the PRC Subsidiaries will be able to maintain
their existing licenses or obtain new ones. See &ldquo;Risk Factors-Risks Related to FF&rsquo;s Operations in China-FF may be adversely
affected by the complexity, uncertainties and changes in PRC regulations on internet-related business, automotive businesses and other
business carried out by FF&rsquo;s PRC Subsidiaries.&rdquo; for a more detailed discussion of the risks relevant to the regulations relating
to the operations of the PRC Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We do not believe any permission
is required from any Chinese authorities (including the China Securities Regulatory Commission (the &ldquo;CSRC&rdquo;) and the Cyberspace
Administration of China (the &ldquo;CAC&rdquo;)) in connection with our previous offerings or listing. We do not and immediately prior
to the filing of this Registration Statement on Form S-1, possess over one million of PRC-based individual&rsquo;s personal information.
After consulting our PRC counsel, we believe we are currently not subject to the requirement under the Cybersecurity Review Measures that
a network platform operator which possesses more than one million users&rsquo; personal information must apply for a cybersecurity review
with CAC before listing abroad. In addition, as of December 31, 2023, after consulting our PRC counsel, we are not aware of any other
laws or regulations currently effective in the PRC which explicitly require us to obtain any permission from the CSRC or other Chinese
authorities for our previous offering or listing, nor had we received any inquiry, notice, or warning from the CSRC or any other Chinese
authorities in such respects. The PRC authorities have promulgated new or proposed laws and regulations recently to further regulate securities
offerings that are conducted overseas and/or foreign investment in China-based issuers. According to these new laws and regulations and
the draft laws and regulations if enacted in their current forms, in connection with our future securities offering activities, we may
be required to fulfill filing, reporting procedures with the CSRC, and may be required to go through cybersecurity review by the PRC authorities.
However, there are uncertainties with respect to whether we will be able to fully comply with requirements to obtain such permissions
and approvals from, or complete such reporting or filing procedures with PRC authorities. For more detailed information, see &ldquo;Risk
Factors-<I>Risks Related to FF&rsquo;s Operations in China-The approval of, or filing or other administrative procedures with, the CSRC
or other PRC governmental authorities may be required in connection with certain of our financing activities, and, if required, we cannot
predict if we will be able to obtain such approval or complete such filing or other administrative procedures&rdquo;</I> and &ldquo;Risk
Factors-<I>Risks Related to FF&rsquo;s Operations in China-We face challenges from the evolving regulatory environment regarding cybersecurity,
information security, privacy and data protection. Many of these laws and regulations are subject to change and uncertain interpretation,
and any actual or alleged failure to comply with related laws and regulations regarding cybersecurity, information security, data privacy
and protection could materially and adversely affect our business and results of operations</I>&rdquo; for a more detailed discussion
of the relevant risks relating to the applicable of PRC laws and Regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Milestones</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Significant milestones in FF&rsquo;s
historical development and commercialization of FF&rsquo;s electric vehicles include the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">In January 2021, FF announced
that it entered into a definitive agreement for a business combination with PSAC. In July 2021, FF announced that merger was completed,
the Class A Common Stock (ticker: FFIE) and Public Warrants (ticker: FFIEW) of the combined company are listed on The Nasdaq Stock Market
on July 22, 2021.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">In September 2021, FF completed
the installation of pilot equipment in the pre-production build area of its Hanford, California facility.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">In February 2022, FF unveiled
the first production-intent FF 91 EV manufactured at its Hanford, California plant.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">In September 2022, FF announced
the FF 91 Futurist, the Ultimate Intelligent TechLuxury EV, was officially certified to have a robust rating of 381 miles of EV range
from the U.S. Environmental Protection Agency.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">In November 2022, FF announced
the CARB has certified the FF 91 Futurist as a zero-emissions vehicle (ZEV). The ZEV program is part of CARB&rsquo;s Advanced Clean Cars
package of coordinated standards that control smog-causing pollutants and greenhouse gas emissions of passenger vehicles in California.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On January 17, 2023, FF announced
that, in the third quarter of fiscal year 2022, it had reached a non-binding Cooperation Framework Agreement with the government of the
City of Huanggang in Hubei Province, China (&ldquo;Huanggang&rdquo;), for promoting FF&rsquo;s U.S.-China dual-home market strategy.
According to the Cooperation Framework Agreement, FF intends to relocate its FF China headquarters to Huanggang, while maintaining its
global headquarters in Los Angeles, California.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On March 29, 2023, FF successfully
started the production of the flagship FF 91 vehicle.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On April 14, 2023, the first
production FF 91 vehicle rolled off the line at the FF ieFactory California.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On May 25, 2023, FF announced
that the FF 91 successfully passed U.S. Federal Motor Vehicle Safety Standards (&ldquo;FMVSS&rdquo;) crash test requirements, first phase
of delivery plan set to begin May 31.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On May 31, 2023, FF launched
the Ultimate AI TechLuxury FF 91 2.0 Futurist Alliance as well as the eco product aiHypercar+, open for reservations in both the United
States and China.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On August 12, 2023, FF celebrated
the delivery of the first FF 91 2.0 Futurist Alliance to the first industry expert Developer Co-Creation Officer.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On November 23, 2023, FF announced
entry into Middle East, signed strategic cooperation agreements with Master Investment Group and Siraj Holding LLC, and announced the
FF 91 2.0 Futurist aiFalcon Limited Edition for the Middle East market.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">On September 20, 2024, FF announced
its second brand, Faraday X (FX), and two planned new products expected to be priced between $20,000 and $50,000, signed strategic framework
agreements or memorandums of understanding with four OEMs to fully promote range extended AIEV in the U.S.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Partnership Program </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Acting through FF Global Partners
LLC (&ldquo;FF Global&rdquo;), a shareholder of the Company, in July 2019 certain current and former executives of the Company established
a program which they refer to as the &ldquo;Partnership Program.&rdquo; As described below, the Partnership Program provides financial
benefits to certain Company directors, management and employees, which they are required to report to the Company pursuant to the Company&rsquo;s
Investment Reporting Policy. The Partnership Program is administered by FF Global and is not under the Company&rsquo;s supervision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Purpose of Partnership Program</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The purpose of the Partnership
Program is to help the Company and FF Global succeed, including by helping key Company employees remain aligned with the Company&rsquo;s
mission, interests and economic success, by awarding units representing membership interests in FF Global to such individuals. We have
been advised by FF Global that the VP of Human Resources in FF, who is also a member of FF Global, provides recommendations to the FF
Global Board of Managers regarding proposed awards based on, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">the individual&rsquo;s position in the Company and/or FF Global,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">the importance of the individual&rsquo;s role in the Company and/or FF Global,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">the individual&rsquo;s historical contributions to the Company and/or FF Global,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">the importance of the individual to the achievement of the Company&rsquo;s and FF Global&rsquo;s strategic objectives,</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">the individual&rsquo;s awards under the Company&rsquo;s employee stock option plan, and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">the individual&rsquo;s existing holdings of FF Global units.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The awards under the Partnership
Program have in the past been granted exclusively to current or former employees of the Company or its affiliates, FF Global may in the
future determine to grant awards to individuals who are not affiliated with the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to our Investment
Reporting Policy, members of our management and other employees are required to report information relating to their investments, including
their interests in FF Global. However, since the Company&rsquo;s board of directors does not have oversight over the Partnership Program,
the Company is not able to assess whether awards made by FF Global under the Partnership Program incentivize management and employee behavior
and activities that the Company intends to incentivize, or indeed, whether the Partnership Program effectively works against efforts by
the Company to manage its workforce. For example, as part of the special committee of independent directors established by the Board to
investigate allegations of inaccurate Company disclosures (&ldquo;Special Committee&rdquo;), as further discussed below, it was determined
that a Company employee who is also a beneficiary under the Partnership Program deliberately interfered with the Special Committee&rsquo;s
investigation. Although the Company disciplined this employee, the effectiveness of the Company&rsquo;s disciplinary efforts may have
been counteracted by awards this employee has received or expects to receive under the Partnership Program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Terms of Awards</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF Global units awarded under
the Partnership Program are purchased by the recipient from FF Global. The recipient pays the purchase price for their common units in
10 annual installments. The units entitle the recipient to receive distributions from FF Global when and if declared by the FF Global
Board of Managers on a pro rata basis based on their paid-in capital (after their contributions are all returned). FF Global units are
subject to redemption in certain cases, including upon termination of employment with FF Global or the Company or any of their affiliates,
at a redemption price that generally is no lower than the unreturned capital contributions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Scope of Partnership Program</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF Global has informed us that
to date a total of 34 individuals have received awards under the Partnership Program, that less than 16 individuals continue to hold such
awards, and that all recipients of such awards are current or former directors or employees of the Company or its affiliates. Some of
these individuals are or were members of the FF Global Board of Managers. In particular, we understand that (amounts below in single dollars):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Dr. Carsten Breitfeld, FF&rsquo;s
former Global CEO and a former director of FFIE, was a non-voting member of the FF Global Board of Managers until May 2022, and previously
held FF Global units. In connection with Dr. Breitfeld&rsquo;s voluntary resignation from FF Global in May 2022 to avoid any potential
conflicts of interest, Dr. Breitfeld forfeited his 13,000,000 FF Global units. On November 26, 2022, the Board voted to remove Dr. Breitfeld
as Global CEO and, on December 26, 2022, Dr. Breitfeld tendered his resignation from the Board, which was effective immediately.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Matthias Aydt, the current Global
CEO and a director of FFIE, was a member of the FF Global Board of Managers until June 2022, and previously held FF Global units. According
to information provided by Mr. Ruokun Jia, a nephew of Mr. Jia who was formerly an Assistant Treasurer of FFIE but who was terminated
for conduct during the Special Committee&rsquo;s investigation, Dream Sunrise is owned by an associate of him. On June 26, 2019, to finance
his acquisition of the FF Global units and his then concurrent loan to FF Global in the original principal amount of $4,257,792, Mr.
Aydt issued a note in the original principal amount of $4,624,392 to Dream Sunrise LLC (&ldquo;Dream Sunrise&rdquo;). On August 2, 2021,
FF Global paid down its loan obligations to Mr. Aydt by $2,071,722, by paying down Mr. Aydt&rsquo;s loan obligations to Dream Sunrise
by the same amount, evidenced by that certain Repayment Agreement, dated as of March 7, 2022, by and among Dream Sunrise, FF Global and
Mr. Aydt, an amended and restated note dated as of March 7, 2022 from FF Global to Mr. Aydt in the principal amount of $2,186,070 (the
&ldquo;Aydt-FF Global Note&rdquo;), replacing the prior note issued by FF Global to Mr. Aydt on June 26, 2019 in its entirety, and an
amended and restated note dated as of March 7, 2022 from Mr. Aydt to Dream Sunrise in the principal amount of $2,552,670 (the &ldquo;Dream
Sunrise-Aydt Note&rdquo;), replacing the prior note issued by Mr. Aydt to Dream Sunrise on June 26, 2019 in its entirety. In order to
avoid any potential conflicts of interest that his ownership of FF Global units presents toward his role as a director of FFIE, in June
2022, Mr. Aydt requested that FF Global redeem in full all of his FF Global units. On July 8, 2022, FF Global, Dream Sunrise and Mr.
Aydt entered into an Redemption Agreement, pursuant to which in exchange for FF Global&rsquo;s redemption in full of all of Mr. Aydt&rsquo;s
FF Global units and in satisfaction of all of FF Global&rsquo;s then outstanding loan obligations to Mr. Aydt under the Aydt-FF Global
Note, other than $87,743, which represents interests accrued on $366,600 of the principal amount under the Dream Sunrise-Aydt Note, FF
Global assumed all of Mr. Aydt&rsquo;s then outstanding loan obligations under the Dream Sunrise-Aydt Note. As of December 31, 2023,
the $87,743 that Mr. Aydt owes to Dream Sunrise remained outstanding.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">Qing
Ye, former director of FFIE and former Vice President of Business Development and FF PAR, previously held FF Global units. On June 26,
2019, to finance his acquisition of the FF Global units and his then concurrent loan to FF Global in the original principal amount of
$1,993,009, Mr. Ye issued a note in the original principal amount of $2,164,609 to Dream Sunrise. On June 13, 2022, FF Global paid down
its loan obligations to Mr. Ye by $969,742, by paying down Mr. Ye&rsquo;s loan obligations to Dream Sunrise by the same amount, evidenced
by an amended and restated note dated as of June 13, 2022 from FF Global to Mr. Ye in the principal amount of $1,023,267 (the &ldquo;Ye-FF
Global Note&rdquo;), replacing the prior note issued by FF Global to Mr. Ye on June 26, 2019 in its entirety, and an amended and restated
note dated as of June 13, 2022 from Mr. Ye to Dream Sunrise in the principal amount of $1,194,867 (the &ldquo;Dream Sunrise-Ye Note&rdquo;),
replacing the prior note issued by Mr. Ye to Dream Sunrise on June 26, 2019 in its entirety. In order to avoid any potential conflicts
of interest that his ownership of FF Global units presents towards his role as a director of FFIE, in June 2022, Mr. Ye requested that
FF Global redeem in full all of his FF Global units. On June 24, 2022, FF Global, Dream Sunrise and Mr. Ye entered into an Redemption
Agreement, pursuant to which in exchange for FF Global&rsquo;s redemption in full of all of Mr. Ye&rsquo;s FF Global units and in satisfaction
of all of FF Global&rsquo;s then outstanding loan obligations to Mr. Ye under the Ye-FF Global Note, other than $41,071, which represents
interests accrued on $171,600 of the principal amount under the Dream Sunrise-Ye Note, FF Global assumed all of Mr. Ye&rsquo;s then outstanding
loan obligations under the Dream Sunrise-Ye Note. As of December 31, 2023, the $41,071. that Mr. Ye owed to Dream Sunrise remained outstanding.
On January 25, 2023, Mr. Ye resigned as a member of the Board. Mr. Ye remained a consultant of the Company as an independent contractor
until September 15, 2023.</FONT>&nbsp;</P></TD>
</TR></TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%">
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in">&nbsp;</TD><TD STYLE="text-align: left; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><P STYLE="margin-top: 0; margin-bottom: 0">Robert
Kruse, FF&rsquo;s former Senior Vice President, Product Execution, previously held 1,500,000 FF Global units (prior to the Company&rsquo;s
reverse stock split). On November 29, 2022, Mr. Kruse resigned from the Company.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%">
     <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in">&nbsp;</TD><TD STYLE="text-align: left; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><P STYLE="margin-top: 0; margin-bottom: 0">Chui
Tin Mok, our Global Executive Vice President and the Global Head of User Ecosystem and a director of FFIE (effective January 25, 2023),
currently holds less than 100 FF Global units. On June 26, 2019, to finance his acquisition of the FF Global units and his then concurrent
loan to FF Global in the original principal amount of $2,264,783, Mr. Mok issued a note in the original principal amount of $2,459,783
to Dream Sunrise. In May 2022, Mr. Mok returned 3,120,000 of his FF Global units to FF Global pursuant to amendments to the governance
documents of FF Global. On March 7, 2022, FF Global paid down its loan obligations to Mr. Mok by $1,101,980, by paying down Mr. Mok&rsquo;s
loan obligations to Dream Sunrise by the same amount, evidenced by an amended and restated note dated as of March 7, 2022 from FF Global
to Mr. Mok in the principal amount of $1,162,803, replacing the prior note issued by FF Global to Mr. Mok on June 26, 2019 in its entirety,
and an amended and restated note dated as of March 7, 2022 from Mr. Mok to Dream Sunrise in the principal amount of $1,357,803, replacing
the prior note issued by Mr. Mok to Dream Sunrise on June 26, 2019 in its entirety.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%">
     <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in">&nbsp;</TD><TD STYLE="text-align: left; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><P STYLE="margin-top: 0; margin-bottom: 0">Hong
Rao, our Vice President of I.A.I. (Internet, Autonomous Driving, Intelligence), currently holds less than 100 FF Global units.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%">
     <TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in">&nbsp;</TD><TD STYLE="text-align: left; width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">In addition to the loans described above with respect to Mr. Aydt and Mr. Ye, a number of our other current and former employees have used funds loaned by Dream Sunrise to fund the purchase of their FF Global units and their concurrent loans to FF Global, including Chui Tin Mok and Jerry Wang who is a consultant to FF.</TD></TR>
     </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FF Technology</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>FF aiHyper 6x4 Architecture 2.0</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Underpinning the FF 91 2.0
is the &ldquo;FF aiHyper 6x4 Architecture 2.0.&rdquo; FF believes the integration of FF&rsquo;s six technology platforms with the four
technology systems, symbolized by &ldquo;6x4&rdquo;, lays the groundwork for our commitment to pioneering innovation and excellence in
the automotive sphere.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Variable Platform Architecture </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF believes one of its core
technology competencies is its proprietary Variable Platform Architecture (&ldquo;VPA&rdquo;). FF&rsquo;s VPA is a flexible and adaptable
skateboard-like platform featuring a monocoque vehicle structure with integrated chassis and body. The platform directly houses the critical
components of an electric vehicle, including all-wheel steering, suspension system, brakes, wheels, electric propulsion system, electronic
control units and high voltage battery, among others. Each of these component systems has been engineered in-house or in collaboration
with suppliers and has been integrated into the FF vehicle design with a view to strive for optimizing performance, efficient packaging,
and functional integration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As an integrated structure,
the skateboard-like platform can be shortened or lengthened to allow various wheelbases and battery pack sizes along with other options
to fit into the platform. It is designed to accommodate up to three motors and support single or dual rear motors and a single front motor.
The VPA can be configured in front-wheel-drive (&ldquo;FWD&rdquo;), rear-wheel-drive (&ldquo;RWD&rdquo;) or all-wheel-drive (&ldquo;AWD&rdquo;)
configurations. The platform enables scalable vehicle design and improves manufacturing flexibility as well as capital efficiency and
allows continuous improvement across product generations. It is also designed to reduce development time for future models leveraging
the platform, as most of research and development and a significant portion of the crash structure is integrated into the platform and
enables five star and equivalent safety performance. The modular design of the VPA is adaptable to support a wide range of FF vehicles
for both consumer and commercial vehicle markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Propulsion Technology</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">FF has designed an integrated
set of powertrain systems ideally suited for FF&rsquo;s modular VPA, which has been upgraded to PT Gen 2.0 to further enhance performance.
FF believes its proprietary and patented designed electric powertrain provides a competitive edge in horsepower, efficiency, and acceleration
performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>FF Echelon Inverter </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The inverter in FF&rsquo;s
electric vehicle powertrain governs the flow of high-voltage electrical current throughout the vehicle and serves to power the electric
motor, generating torque while driving and delivering energy into the battery pack while braking. The inverter converts direct current
from the battery pack into alternating current to drive the permanent magnet motors and provides &ldquo;regenerative braking&rdquo; functionality,
which captures energy from braking to charge the battery pack. The primary technological advantages of FF&rsquo;s designs include the
ability to drive large amounts of current in a small, physical package with high efficiency and low cost (low inverter losses to provide
98% of inverter efficiency) utilizing patented parallel IGBT technology and can achieve high torque accuracy with fast transient response.
The inverter can achieve high reliability due to tab bonds in the high current path. The monitoring system is integrated into the inverter
to provide enhanced safety. The patented FF Echelon Inverter is designed to have high power in a compact light weight package with high
reliability and durability and can support multiple motor configurations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Integrated Electric Motor Drive Units </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF designed its electric motor
drive units (including gearbox). The electric drive units are fully integrated with the inverter, transmission, and control unit to create
a compact and efficient design. The FF designed drive units have low noise and vibration that can greatly improve driving experience.
Depending on the power requirements of each model, the motors can be utilized individually or in two or three motor configurations. The
FF 91 Futurist, equipped with three integrated electric drive units (each is designed to deliver up to 350 horsepower), is expected to
deliver 1,050 horsepower and 12,510 Newton meters (&ldquo;Nm&rdquo;) of torque. FF believes its electric drive unit design is ahead of
many of its competitors in terms of performance because of its proprietary, advanced packaging, stator-rotor design, and unique inverter
layout.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;<B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Internet, Autonomous Driving, and Intelligence
(&ldquo;I.A.I.&rdquo;)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF utilizes an industry-leading
automotive grade dual-chip computing system running the Android Automotive operating system. FF&rsquo;s I.A.I system is built on an enhanced
Android Automotive code base and is upgraded with each release of Google&rsquo;s platform. FF&rsquo;s vehicles are designed with software
OTA capabilities, which allow software and applications in the vehicle to be updated and upgraded wirelessly to deliver continuous enhancements.
The vehicle is designed to be connected to FF&rsquo;s information cloud at all times. When there is a firmware or software update available,
FF&rsquo;s cloud will push an update message to the vehicle to notify the driver to schedule an update. Upgrades will be wirelessly downloaded
to the vehicle, installed, and enabled, including updates for firmware, operating systems, middleware, and applications. FF&rsquo;s patented
Future OS operating system allows multiple users to login through FF 91, preparing user&rsquo;s preferences per their cloud based FFID
profiles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For autonomous driving, FF&rsquo;s
advanced autonomous driving-ready system (&ldquo;ADAS&rdquo;) will deliver multiple ADAS features through a combination of FF&rsquo;s
own as well as industry partners&rsquo; applications. FF plans to devote resources to autonomous driving research and development and
plans to work with partners to deliver full autonomous-driving capabilities in highway and urban driving, as well as parking, across its
vehicle lines in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s Artificial Intelligence
system can actively learn preferences, habits, entertainment, and navigation routines of a user, and associates them with the user&rsquo;s
unique FFID (FF proprietary user ID). FFID provides a unique FF user profile that ensures a consistent experience across the FF Ecosystem,
as the user goes from one seat to another or even from one vehicle to another. The seamless design and interface of the in-vehicle infotainment
system planned in FF vehicles will offer multiple human-machine interface (&ldquo;HMI&rdquo;) options and facilitate a personalized user
experience for each seat in the vehicle. The enhanced user experience platform powered by Android enables seamless access to third party
applications. FF&rsquo;s patented Intelligent Aggregation Engine can pull content from multiple video applications and displays content
in a single area, removing the need to access multiple applications. The Intelligent Recommendation Engine that may be integrated in certain
FF series learns each passenger or driver&rsquo;s digital media preferences across multiple video applications and provide personalized
recommendations. The User Recognition function is embedded in each seat through facial or voice recognition, to deliver a suite of personalized
content and preferences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_004.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_005.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Electrical/ Electronic (&ldquo;E/E&rdquo;)
Architecture </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF has designed the first generation
of FF vehicle series (FF 91) with a domain-centralized E/E architecture, which enables architecture flexibility and maximizes performance
efficiency while meaningfully reducing the overall system complexity and weight. The domain-centralized E/E architecture will consolidate
the domain functions across five core high-performance domain control units (&ldquo;DCU&rdquo;) that manage, compute, and process controls
for propulsion, chassis, self-driving, body, and IoV (Internet of Vehicle-connected infotainment system). The E/E architecture of FF&rsquo;s
variable platform architecture is designed with the capacity to support the power and communication requirements necessary for seamless
integration with advanced autonomous systems as they evolve. All of FF&rsquo;s DCUs will support OTA updates and data collection.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FF Products</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF has developed an extensive
portfolio of proprietary technologies that will be embedded and integrated in FF vehicles. FF&rsquo;s B2C passenger vehicle pipeline includes
FF 91 series, FF 81 series and FF 71 series. In addition to passenger vehicles, leveraging its VPA, FF plans to produce a Smart Last Mile
Delivery (&ldquo;SLMD&rdquo;) vehicle to address the high growth last mile delivery opportunity. The FF 91 is the current production flagship
model, and future pipeline models are contingent upon funding availability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Passenger Vehicles</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each of the three passenger
vehicle series is planned in two different configurations. All passenger vehicles will share common brand &ldquo;DNA&rdquo; of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Intelligence, Internet and connectivity;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">modern design: styling;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">superior driving experience:
leading power, performance, and driving range; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">personalized user experience:
space, comfort, and internet experience.</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The flagship FF 91 series will
define the FF brand DNA. This DNA will carry over to FF 81 and FF 71 series. At the top end, the Futurist configurations of each of these
series will be designed to push the core brand values to the maximum. With this brand DNA, FF believes its products will be ahead of competition
in their respective segments in terms of design, driving experience, interior comfort, connectivity, and user experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>FF 91 </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With a wheelbase of 3,200 mm
(126 inches), FF 91, FF&rsquo;s flagship vehicle, is designed to be a high-performance luxury electric vehicle in the E-segment/Executive/Full-Size
or F-segment/Full-size luxury vehicle segment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF believes that FF 91 represents
a &ldquo;new species&rdquo; of electric mobility that combines high performance, precise handling, the comfort of a luxury passenger vehicle,
and an intelligent, connected user interface which provides a unique mobility experience to both driver and passenger. It leverages FF&rsquo;s
proprietary VPA, which is a skateboard-like platform structure designed and engineered in-house. This integrated platform provides measurable
improvements in overall vehicle structural performance, safety, and handling. FF 91 features a multi-motor configuration and an all-wheel
drive system. With three electric motors (one in the front and two in the rear), the top configuration (the FF 91 Futurist) is designed
to produce 1,050 horsepower and 12,510 Nm of torque to all four wheels. This enables the FF 91 Futurist to have torque vectoring in the
rear for enhanced vehicle dynamics and stability. Its all-wheel drive system offers greater traction control as well as precise power
distribution. This technology is designed to deliver superior acceleration of 2.27 seconds from 0 to 60 mph and safety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The variable platform architecture
for FF 91 series houses floor-mounted batteries, as well as FF&rsquo;s proprietary inverter, the FF Echelon Inverter, and integrated electric
motor drive units. All three elements, battery, inverter and drive units, support an achieved 381 miles EPA range. FF 91 is expected to
charge at up to a 200kW rate. FF plans to provide charging solutions available through FF&rsquo;s self-owned stores and FF Partner-owned
stores and showrooms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FF 91 aims to deliver a
top-quality experience that emphasizes personalization and comfort for all users of the vehicle, including both driver and passengers.
In terms of driver comfort, there are six driver-specific screens including an ultra-large heads-up display and slim instrument cluster.
The center information display supports on-screen gesturing with the swipe of a user&rsquo;s fingers. The reconfigurable 3D touch steering
wheel can allow further user configurability. The FF 91 is a connected device that has a voice-first user interface as well as an open
ecosystem for third-party applications and offers an immersive audio, video, and media experience. There are over 100 inches of high-resolution
viewing area across 11 displays embedded in the vehicle. These include industry&rsquo;s first 17-inch front passenger screen and a large
27-inch rear passenger display, allowing passengers to stream their favorite movies, TV shows and live sports while the FF 91 is in motion
without driver distraction. The voice-first foundation enables multiple natural commands at once, facilitating the areas of comfort (including
air conditioning, seat positions, and doors), productivity (including text, email, and phone calls), entertainment (including media playlists
and content search) and destination reaching (including refined search and navigation). The connectivity is powered by &ldquo;Super Mobile
AP&rdquo;, which consists of up to three 5G modems to realize aggregated high internet speed and great coverage by multiple carriers for
high-throughput and continuous coverage. The Artificial Intelligence system and use of FFID (automatically loaded through facial recognition
in each seat) carry the personalized user experience from seat-to-seat and vehicle-to-vehicle. The front and rear passengers will have
(post production and delivery) individual sound zones, which allow passengers in the front and passengers in the rear to listen to their
separate audio content with minimal sound interference. The luxury interior design of the FF 91 Futurist also features &ldquo;zero gravity&rdquo;
seats in the rear row (with industry leading 48.9 inches rear leg room and 60-degree recline). The vehicle will also offer a spa mode
with personalized seat position, ventilation, massage settings, light animations, and ambient sound.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For autonomous driving, FF
91 is expected to have an array of cameras, sensors and LIDARs. Once an autonomous driving software solution is validated and released,
FF anticipates that its autonomous driving system will deliver several highway autonomy and parking features, and through continuous learning
over time, will enable Autonomous Valet Parking (&ldquo;AVP&rdquo;) - where the vehicle can autonomously navigate a parking lot, find
a parking space and park itself. Eventually, the adaptive learning could allow the driver to use an application to park and summon the
vehicle after the driver has exited the vehicle.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF 91 will feature an advanced
autonomous driving system that will deliver multiple ADAS features through a combination of FF&rsquo;s own as well as partners&rsquo;
applications. FF plans to devote resources to autonomous driving research and development and plans to work with partners to deliver full
autonomous-driving capabilities in highway and urban driving, as well as parking, across its vehicle lines in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As limited edition, FF 91 2.0
Futurist Alliance currently has a list price, or MSRP, of $309,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_006.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_007.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_008.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>FF 81</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FF 81 series is FF&rsquo;s
planned second vehicle model and is aimed at the premium mass market in the D-segment or E-segment. The FF 81 will be designed and built
on FF&rsquo;s proprietary VPA enabling more than 60% carry-over of common parts from the FF 91. In addition, parts developed for the FF
81 can be carried back to FF 91 series. The large number of common parts shared across vehicle models creates economics of scale and reduces
costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FF 81 aims to deliver a
premium user experience that emphasizes personalization. The FF 81 is planned with high-performance computing and next generation connectivity
with a voice-first user interface and open ecosystem for third-party applications. It also has integrated, autonomous driving features
and the pertinent hardware capability, including cameras, radars, ultrasound sensors, and optional LIDAR(s).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF 81 Futurist is expected
to compete with vehicles such as the Tesla Models S/X, BMW X5 and Range Rover Sport and the like.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>FF 71</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s third planned passenger
vehicle, the FF 71 series, is expected to be a connected electric vehicle with a more compact size aiming at the mass market in the C-segment
or D-segment. The FF 71 will be designed to integrate full connectivity and advanced technology into a smaller vehicle size. FF will start
design and development of the FF 71 series after sufficient funding is secured in a timely manner.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF 71 Futurist is expected
to compete with vehicles such as the Porsche Macan, BMW X3, and Jaguar I-Pace.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_009.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Commercial Vehicles </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Smart Last Mile Delivery (&ldquo;SLMD&rdquo;)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF plans to provide purpose-built
Smart Last Mile Delivery vehicles by leveraging its proprietary technologies developed for FF&rsquo;s passenger vehicles, to build tailored
SLMD configurations to meet the exact customer needs, whether for fleet provider or last mile delivery divisions, while reducing development
time and costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_010.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s technical solutions
for advanced connectivity and user experience are well-suited to the SLMD market, where rapid growth is fueling demand for increasingly
sophisticated solutions and features. Such features may include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Advanced connectivity and telematics
for next-gen fleet management;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">OTA upgrade capability;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Third party application integration
on touch screen display;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Surround view cameras for improved
visibility; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Equipped with advanced autonomy
and ready-for-future capabilities.</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">SLMD&rsquo;s adaptive modular
design enables additional use cases (utilities, tradesmen, and others) with minimal additional time or investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Manufacturing Strategy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF builds its FF 91 series
vehicles in its manufacturing facility in Hanford, California, which has an estimated annual capacity of 10,000 vehicles. FF will conduct
operations similar to traditional vehicle manufacturing facilities such as body assembly, paint operations, final vehicle assembly, and
end-of-line testing for FF 91 in the Hanford manufacturing facility. FF intends for its vehicle engineering and manufacturing teams to
work alongside one another to streamline the feedback loop for rapid product enhancements and quality improvement and will extensively
utilize virtual manufacturing simulation methods to validate operations and improve the manufacturing processes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For additional capacity for
production of the FF 91 (<I>i.e.</I>, exceeding 10,000 vehicles annually), FF can expand production operations in Hanford or seek capacity
expansion elsewhere. For the FF 81, FF plans to outsource direct vehicle production to its contract manufacturing partner in South Korea,
as FF believes outsourcing will reduce capital investment and accelerate its go-to-market strategy for producing and delivering the FF
81, while providing the benefit of flexibility to scale volume to match demand level. FF may outsource the production of the FF 71 to
its contract manufacturing partner in South Korea or a manufacturing partner in China or elsewhere. These plans align with FF&rsquo;s
hybrid, flexible manufacturing strategy. For more information about FF&rsquo;s manufacturing facility, see the discussion below under
the heading &ldquo;<I>- Facilities</I>.&rdquo; For more information about FF&rsquo;s contract manufacturing and supply agreement with
Myoung Shin in South Korea, see the discussion below under the heading &ldquo;<I>- Key Agreements and Partnerships</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Sales, Delivery, and Servicing of Vehicle </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF initiated delivery of the
first FF 91s in 2023. FF is adopting a direct sales model that utilizes a mix of online and offline presence to drive sales. FF&rsquo;s
offline sales network will consist of FF experience centers and FF Partner-owned experience centers. The self-operated experience centers
are expected to establish FF brand awareness and provide a seamless vehicle purchase experience, while the FF Partner-owned experience
centers (established dealerships) are expected to expand the sales and distribution network without substantial capital investment by
FF.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s contemplated flagship
experience center, which is under construction, will be located in Beverly Hills, California. FF may consider other Company-operated experience
centers in the U.S., China and the Middle East. These locations would operate as experiential showrooms for FF&rsquo;s electric vehicle
models and would provide sales, after-sales, and charging services. The FF Partner-owned stores and showrooms would support FF&rsquo;s
online-to-offline sales model, vehicle delivery, charging service and other user operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All purchase transactions will
be processed online through FF&rsquo;s website or mobile apps, while FF Partners will support the process (including demonstration drives
and providing vehicle information) and receive compensation based on a revenue sharing model and territory and/or services performed.
Users accessing FF.com can directly purchase the vehicle online and can choose their closest FF experience centers or FF Partner-operated
experience centers and showroom for support. Customers going to an FF Partner-operated experience center will be supported by staff and
directed to FF.com for purchasing. FF believes that once the reputation of FF&rsquo;s vehicles has been established and users are familiar
with FF vehicles, an increasing share of the vehicle sales process is likely to be completed fully online. This will further free up offline
capacity and potentially increase productivity for FF&rsquo;s Partner-operated experience centers. As FF will oversee delivery of the
vehicles, both FF stores and FF Partner-operated experience centers and showrooms will be able to run their operations in an asset-light
fashion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FF Partner-owned experience
centers and showrooms will be the prioritized network for servicing FF&rsquo;s vehicles, which may include repair, maintenance, and bodywork
services. FF will also contract with select third-party service centers to ensure coverage and will deploy mobile service vans based on
user demand. To ramp up its service capabilities, FF Eco Sales Company, LLC, FF&rsquo;s sales subsidiary, has engaged Somit Solutions
(KPIT) to support FF Aftersales with the development of the underlying systems required to support all after-sales elements, such as repair
order, warranty, parts catalog, repair manuals to support the expansion of the FF Service Network. Additionally, FF plans to engage with
a national automotive services provider to support FF Aftersales operations, such as shipping logistics, as well as leveraging a service
center network. FF users will benefit from FF&rsquo;s connected remote service platform.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF outlined a 3-phase delivery
plan aimed at delivering the best experience to all our users. This initial phase launched at the end of May 2023, marking the start of
FF&rsquo;s delivery plan for the vehicle to the industry expert Futurist Product Officers (FPO).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In phase two, all FPO(s) are
invited to purchase the vehicle and take full possession, receiving comprehensive training on vehicle&rsquo;s features. The second phase launched
in August, 2023, and FF became a revenue generating company. In the meantime, FF continues to optimize its brand strategy, including the
second brand strategy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the third and final phase,
the FF 91 is made available to all users.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -1pt"><B><I>Co-Creation Program</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Instead of the traditional one-way sales and marketing
approach that is common in the automotive space, FF intends to build a direct and reciprocal relationship with our user base. On August
12, 2023, FF delivered the first FF 91 2.0 Futurist Alliance to its first industry expert Developer Co-Creator. FF intends to build brand
awareness through this program.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -1pt"><I>Other Sales and Service
Capabilities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">To
complement our brand-building efforts, our sales team was busy at building out our sales and services capabilities.</FONT>&nbsp;<FONT STYLE="font-size: 10pt">Here&rsquo;s
an overview of our recent advancements:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Leasing Program Launch: In collaboration
with Luxury Lease Partners, we&rsquo;ve initiated a leasing program for our FF 91 2.0 Futurist Alliance owners. With competitive pricing, customers
can acquire our flagship model with just a few electronic clicks, in line with our vision of an intelligent electric future.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Mobile Service Fleet: We&rsquo;ve
activated our mobile service fleet, offering on-demand concierge service to our first FF 91 2.0 Futurist Alliance owners.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Bureau of Automotive Repair
License: Holding a license from the California Bureau of Automotive Repair is a testament to our commitment to uphold the highest compliance
standards in vehicle maintenance, warranty repairs, and service.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Home Charging Installation Program
Activation: In alliance with Qmerit Electrification, we&rsquo;ve launched our home charging installation program. The FF Home Charger, which
supports up to 19.2 kW, is a Wi-Fi-connected smart charger compatible with most EVs.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Public Charging Program: Ensuring
uninterrupted travel for our vehicle owners, we&rsquo;ve rolled out a public charging program. Every FF 91 2.0 Futurist Alliance owner is entitled
to $1,000 charging credits, applicable across major US EV charging networks.</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -1pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -1pt"><B>FF Suppliers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF has partnered with suppliers
in North America, Europe, and Asia, and has on-boarded suppliers for all parts for the FF 91. FF aims to obtain systems, components, raw
materials, parts, manufacturing equipment, and other supplies and services from suppliers which FF believes to be reputable and reliable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF has significant capabilities
in the areas of vehicle engineering, development and design, and has developed a number of proprietary systems and technologies. As of
October 8, 2024, FF had been granted approximately 660 patents (with approximately a third issued in the U.S., slightly less than two-thirds
issued in China, and the remaining issued in other jurisdictions). These patents are issued to various FFIE entities, including Faraday
Future, Faraday &amp; Future, FF Automotive (China) Co., Ltd., Leka Automotive Intelligent Technology (Beijing) Co., Ltd., and LeEco Eco-Car
(Zhejiang) Co., Ltd. FF intends to continue to file additional patent applications with respect to its technology. FF&rsquo;s patented
technology covers UI/UX, powertrain, ADAS, body, hardware/software platform and chassis. Key patents include FF&rsquo;s inverter assembly,
integrated drive and motor assemblies, methods and apparatus for generating current commands for an interior permanent magnet (&ldquo;IPM&rdquo;)
motor and seamless vehicle access system. These key patents will expire in 2035 or 2036.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Properties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">FF leases all of its facilities.
The following table sets forth the location, approximate size, primary use and lease term of FF&rsquo;s major facilities as of December&nbsp;31,
2023:</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="text-align: left; vertical-align: bottom; width: 20%"><B>Location</B></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom; width: 12%"><B>Approximate<BR>
 Size<BR>
 (Building) <BR>
in Square<BR>
 Feet</B></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom; width: 45%"><B>Primary Use</B></TD>
    <TD STYLE="vertical-align: bottom; text-align: center; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom; width: 20%"><B>Lease <BR>
Expiration<BR>
 Date</B></TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="text-align: justify; border-top: black 1.5pt solid; vertical-align: top">Gardena, California</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: right; vertical-align: top">146,765</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; border-top: black 1.5pt solid; vertical-align: top">Global headquarters, research and development, office</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="border-top: black 1.5pt solid; text-align: center; vertical-align: top">April 30, 2027</TD></TR>
  <TR>
    <TD STYLE="text-align: justify; vertical-align: top">FF&rsquo;s ieFactory California</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">1,100,000</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">Manufacturing</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">October 19, 2028</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="text-align: justify; vertical-align: top">Beverly Hills, California</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">12,947</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">Retail</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">August 31, 2032</TD></TR>
  <TR>
    <TD STYLE="text-align: justify; vertical-align: top">San Jose, California</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">30,260</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">Office</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">March 31, 2025</TD></TR>
  <TR STYLE="background-color: #CCEEFF">
    <TD STYLE="text-align: justify; vertical-align: top">Gardena, California</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">12,650</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify; vertical-align: top">Office</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">March 31, 2027</TD></TR>
  <TR>
    <TD STYLE="text-align: justify; vertical-align: top">Beijing, China</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">273</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: top">Administrative services, research and development, strategic planning</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">December 14, 2024</TD></TR>
  </TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
is finalizing the refurbishment of the FF ieFactory California manufacturing facility.<B><I>&nbsp;</I></B>The facility is finishing the
main components which includes a body shop, a paint shop, component manufacturing and an assembly line. The FF ieFactory California manufacturing
facility is approximately 1.1 million square feet and, once it is built out, is expected to have the capacity to support a production
of 10,000 vehicles per year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">From
time to time, FF may become involved in legal proceedings arising in the ordinary course of business. We are currently a party to various
legal or governmental proceedings, the outcome of which, although currently uncertain, if determined adversely to us, could individually
or in the aggregate have a material adverse effect on our business, financial condition, and results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Key Agreements and Partnerships </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Strategic Partnership with Myoung Shin,
South Korea </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In February 2022, FF U.S. entered
into a definitive contract manufacturing and supply agreement with Myoung Shin Co., Ltd. (&ldquo;Myoung Shin&rdquo;), a South Korea-based
automotive manufacturer and parts supplier, to manufacture the Company&rsquo;s second vehicle, the FF 81. The agreement has an initial
term of nine years from the start of production of the FF 81. Pursuant to the agreement, Myoung Shin shall maintain sufficient manufacturing
capabilities and capacity to supply FF 81 vehicles to FF in accordance with the Company&rsquo;s forecasts and purchase orders. FF and
Myoung Shin will each manufacture and supply certain FF 81 parts that Myoung Shin will use in the manufacture and assembly of FF 81 vehicles.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Potential Partnership with Geely Holding
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In December 2020, FF U.S. entered
into a non-binding memorandum of understanding with Zhejiang Geely Holding Group Co., Ltd. (&ldquo;Geely Holding&rdquo;), who was also
a subscriber in the Private Placement, pursuant to which the parties contemplate a strategic cooperation in various areas including engineering,
technology, supply chain, and contract manufacturing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In January 2021, FF Intelligent
Mobility Global Holdings Ltd., FF Automotive (Zhuhai) Co., Ltd. and FF Hong Kong Holding Limited entered into a cooperation framework
agreement with Zhejiang Geely Holding Group Co., Ltd. pursuant to which Geely Holding agreed to explore the possibility of joint investment
in the technology licensing, contract manufacturing and joint venture with FF and the city, as well as to pursue the possibility of further
business cooperation with the joint venture. The joint venture and contract manufacturing projects with Geely Holding are on hold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>After-Sales and Service </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">FF U.S. has engaged Somit Solutions (KPIT) to support
the development of the underlying After-sales Service Systems (U.S. and China), plans to further engage a US based national automotive
services provider to support Aftersales Operations (U.S. only), and has engaged SalesForce (U.S. only) to deliver and service the FF 91
in compliance with governmental agencies and to support critical path alignment with the Company&rsquo;s user journeys.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Strategic Agreement with the City of Huanggang</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On January 17, 2023, FF announced
that, in the third quarter of fiscal year 2022, it had reached a non-binding Cooperation Framework Agreement with the government of the
City of Huanggang in Hubei Province, China (&ldquo;Huanggang&rdquo;), for promoting FF&rsquo;s U.S.-China dual-home market strategy. According
to the Cooperation Framework Agreement, FF intends to relocate its FF China headquarters to Huanggang, while maintaining its global headquarters
in Los Angeles, California. In accordance with the Cooperation Framework Agreement, both parties are expected to contribute their respective
advantages in investment, scientific and technological innovation, industrial transformation, location, and policy. Huanggang is expected
to actively assist FF by providing assistance with industrial layout and deployment of resources and providing financial and policy support.
The FF China headquarters is expected to be jointly funded by the Huanggang Government guide fund, industrial fund, and FF.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Human Capital Management and Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of October 1, 2024, FF had
238 full time employees globally. A majority of FF&rsquo;s employees are engaged in research and development and related engineering,
manufacturing, and supply chain functions. To preserve its current cash position, FF may implement additional headcount reductions, taking
into account FF&rsquo;s financial condition and market conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In the future, FF may ramp
up additional hiring efforts for its targeted vehicle production and delivery. FF&rsquo;s targeted hires typically have significant experience
working for reputable OEMs, software, internet, consumer electronics and artificial intelligence companies, as well as tier-one automotive
suppliers and engineering firms<B><I>. </I></B>FF has not experienced any work stoppages and considers its relationship with its employees
to be good. None of FF&rsquo;s employees are subject to a collective bargaining agreement or represented by a labor union.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The FF team is composed of
experienced talent from a variety of industry backgrounds and nationalities with a common goal of creating highly innovative and unique
products. FF&rsquo;s human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and
integrating existing and additional employees. FF is committed to the principle of ESG and is committed to building a safer, cleaner world.
We have a diverse workforce and are committed to maintaining the highest standards of ethics and behavior.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Governmental Regulations, Programs and Incentives
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF operates in an industry
that is subject to extensive environmental regulation, which has become more stringent over time. The laws and regulations to which FF
is subject govern, among others, vehicle emissions and the storage, handling, treatment, transportation and disposal of hazardous materials
and the remediation of environmental contamination. Compliance with such laws and regulations at an international, regional, national,
provincial and local level is critical to FF&rsquo;s ability to continue its operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Environmental standards applicable
to FF are established by the laws and regulations of the countries in which FF operates, standards adopted by regulatory agencies and
the permits and licenses issued to FF. Each of these sources is subject to periodic modifications and comprise what FF anticipates will
be increasingly stringent requirements. Violations of these laws, regulations or permits and licenses may result in substantial administrative,
civil or even criminal fines, penalties and orders to cease any violating operations or to conduct or pay for corrective work. In some
instances, violations may also result in the suspension or revocation of permits or licenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Vehicle Safety and Testing Regulation</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF vehicles will be subject
to, and must comply with, numerous regulatory requirements established by the National Highway Traffic Safety Administration (&ldquo;NHTSA&rdquo;),
including all applicable FMVSS. As a manufacturer, FF self-certifies that its vehicles meet all applicable FMVSSs before the vehicles
can be sold in the U.S. There are many FMVSSs that apply to FF vehicles, such as crash-worthiness requirements, active safety requirements
and electric vehicle requirements (e.g., limitations on electrolyte spillage, battery retention and avoidance of electric shock after
certain crash tests).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to FMVSS, FF is
required to comply with other federal laws administered by NHTSA, including the Corporate Average Fuel Economy (&ldquo;CAFE&rdquo;) standards,
Theft Prevention Act requirements, consumer information labeling requirements, early warning reporting requirements regarding warranty
claims, field reports, death and injury reports and foreign recalls and owners&rsquo; manual requirements. FF must also comply with the
Automobile Information and Disclosure Act, which requires manufacturers of motor vehicles to disclose certain information regarding the
manufacturer&rsquo;s suggested retail price, optional equipment and other pricing. In addition to meeting NHTSA obligations, FF is also
required to comply with the Environmental Protection Agency (EPA) and California Air Resource Board (CARB) with respect to annual compliance
certification and running change impacts in case the vehicle range is impacted by software or hardware updates. Additionally, NHTSA can,
at its discretion, purchase FF vehicles to run a New Car Assessment Program (NCAP), which would require the crash test results to be printed
on the Monroney Label, as part of the consumer information federal requirements, which combines both NHTSA and EPA consumer information
in a single document that is affixed to each new vehicle sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF vehicles sold outside of
the U.S. will be subject to similar foreign safety, environmental, and other regulations. If those regulations and standards are different
from those applicable in the U.S., FF will redesign and/or retest its vehicles. For example, the European Union (&ldquo;E.U.&rdquo;) has
published new Vehicle General Safety Regulations, applying from July 6, 2022, which introduced a range of mandatory advanced driver assistant
systems to improve road safety and establishes the legal framework for the approval of automated and fully driverless vehicles in the
EU., FF vehicles sold in China will be subject to compulsory product certification by certification authorities designated by the State
Certification and Accreditation Administration Committee. Additionally, for FF vehicles to be approved for manufacture and sale in China,
FF vehicles will need to be added to the Announcement of Vehicle Manufacturers and Products issued by the Ministry of Industry and Information
Technology (&ldquo;MIIT&rdquo;) of China, by showing compliance with the relevant safety and technical requirements and other conditions,
including among others, the Administrative Rules on the Admission of New Energy Vehicle Manufacturers and Products and the Administrative
Rules on the Admission of Passenger Vehicles Manufacturer and Products, and passing the review by the MIIT.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Battery Safety and Testing Regulations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF&rsquo;s battery packs must
conform to mandatory regulations governing the transport of &ldquo;dangerous goods&rdquo; that may present a risk in transportation, which
includes lithium-ion batteries, and are subject to regulations issued by the Pipeline and Hazardous Materials Safety Administration. (&ldquo;PHMSA&rdquo;).
These regulations are based on the UN Recommendations on the Safe Transport of Dangerous Goods Model Regulations and related UN Manual
Tests and Criteria. The regulations vary by mode of transportation when these items are shipped, such as by ocean vessel, rail, truck,
or air. FF will complete the applicable transportation tests for its battery packs, demonstrating its compliance with applicable regulations.
FF uses lithium-ion cells in its high-voltage battery packs. The use, storage and disposal of FF&rsquo;s battery packs is regulated under
federal law. FF will enter into agreements with third-party battery recycling companies to recycle FF&rsquo;s battery packs. In addition
to this, China and Europe have stringent battery safety regulations which FF designs its batteries to comply with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Environmental Credits</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In connection with the production,
delivery, and placement into service of FF&rsquo;s zero-emission vehicles, FF may earn tradable credits under certain governmental programs
designed to incentivize such activities. FF may sell FF future credits to automotive companies and other regulated entities who can use
the credits to comply with emission standards and other regulatory requirements. Under the Environmental Protection Agency&rsquo;s Light-Duty
Vehicle Greenhouse Gas Emissions Standards, FF may generate carbon dioxide emissions credits that can be sold to conventional internal
combustion engine vehicle manufacturers. On December 30, 2021, EPA issued new greenhouse gas emissions standards for model years 2023-2026
light duty vehicles that accelerates the annual year-over-year increase in the stringency of the standards from 1.5% to 5-10%. These standards
include carbon dioxide emission credit multipliers for the sale of electric vehicles, and EPA predicts that the standards will result
in electric and plug-in hybrid vehicles having a market share of approximately 17% by model year 2026. Similarly, on August 25, 2022,
the California Air Resources Board approved the Advanced Clean Cars II rule, which amends California&rsquo;s existing Zero Emission Vehicle
Regulation to require an increasing number of zero-emission vehicles starting with model year 2026 and growing to a 100% transition of
light duty passenger vehicles to electric vehicles by model year 2035. Under both federal and California regulations, FF may earn salable
regulatory credits as vehicle manufacturers are required to meet annual emissions or zero-emissions vehicle sales requirements or purchase
commensurate offset credits. FF may also earn similar fuel economy and clean fuels credits under other regulatory regimes in the U.S.
and abroad.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>EPA Emissions and Certification</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The U.S. Clean Air Act requires
that FF obtain a Certificate of Conformity issued by the EPA and approval under California Executive Order issued by CARB certifying that
FF vehicles comply with all applicable emissions requirements. A Certificate of Conformity is required for vehicles sold under the EPA
Clean Air Act&rsquo;s standards. A CARB Executive Order is required for vehicles sold in states that have adopted California&rsquo;s stricter
standards for emissions controls related to new vehicles and engines sold in such states. States that have adopted the California standards
as approved by EPA also recognize the CARB Executive Order for sales of vehicles, of which the FF 91 is certified under the CARB executive
order as a zero-emission vehicle. In addition to California, there are 17 other states that have either adopted or are in the process
of adopting the stricter California standards, including New York, Massachusetts, Vermont, Maine, Pennsylvania, Connecticut, Rhode Island,
Washington, Oregon, New Jersey, Maryland, Virginia, Delaware, Colorado, Minnesota, Nevada, Virginia, and New Mexico. FF has current for
the FF 91 both the EPA certificate of conformity and is certification from CARB as being a zero-emission vehicle, and an EPA attested
range of 381 miles. Starting in model year 2026, FF must also meet California data standardization requirements for zero-emission vehicles,
which specifies required vehicle and battery data that must be made available to vehicle owners through a scan tool device.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Regulation-</I></B><I>-<B>Self Driving </B></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Currently, there are no federal
U.S. regulations pertaining to the safety of self-driving vehicles; however, the NHTSA has established recommended guidelines. Certain
U.S. states have legal restrictions on self-driving vehicles, and many other states are considering them. This patchwork of licensing
requirements increases the legal complexity for FF&rsquo;s vehicles. In Europe, certain vehicle safety regulations apply to self-driving
braking and steering systems, and certain treaties also restrict the legality of certain higher levels of self-driving vehicles. Self-driving
laws and regulations are expected to continue to evolve in numerous jurisdictions in the U.S. and foreign countries, and may create restrictions
on self-driving features that FF develops. International standards exist for ensuring the safety of intended functionality, which provides
a framework for original equipment manufacturers (OEM) to build a safety case as part of the development of robustly designed and validated
self-driving vehicles. For the current deployment of self-driving vehicles, permits are required which include approved, limited, operational
design domains which define the limits to which self-driving vehicles are able to operate in.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Automobile Manufacturer and Dealer Regulation
</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">U.S. state laws regulate the
manufacture, distribution and sale of automobiles, and generally require motor vehicle manufacturers and dealers to be licensed in order
to sell vehicles directly to consumers in the state. FF will need to secure dealer licenses (or their equivalent) and engage in sales
activities for its self-operated experience centers and service centers, while partners in certain states will support by providing services
via partner-owned experience centers and showrooms. FF U.S. has received its dealer license from the State of California and is able to
sell automobiles across the U.S.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In China, automobile suppliers
and dealers are required to receive a business license and file and update the relevant information through the information management
system for the national automobile circulation operated by the competent commerce department in China. Additionally, according to the
Administrative Measures on Automobile Sales, automobile suppliers and dealers shall sell automobiles, spare parts, and other related products
that are in compliance with relevant provisions and standards of the state, and the dealers shall, in an appropriate manner, expressly
indicate the prices of automobiles, spare parts, and other related products as well as the rates of charges for various services on their
business premises, and shall not sell products at higher prices or charge other fees without express indication.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Competition </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF has experienced, and expects
to continue to experience, intense competition from several companies, particularly as the transportation sector increasingly shifts towards
low-emission, zero-emission, or carbon neutral solutions. Many established and new automobile manufacturers have entered or have announced
plans to enter the alternative fuel and electric vehicle market. Many major automobile manufacturers, such as Tesla, Porsche, Mercedes,
Rolls Royce and Audi, have electric vehicles available today. Other current and prospective automobile manufacturers are also developing
electric vehicles, for example Nio, xPeng, Li Auto, Lucid Motors, Canoo and Fisker, among others. In addition, several manufacturers offer
hybrid vehicles, including plug-in versions. FF directly competes with other pure-play electric vehicle companies targeting the high-end
segment, while also competing to a lesser extent with new energy vehicles (&ldquo;NEVs&rdquo;) and internal combustion engine (&ldquo;ICE&rdquo;)
vehicles in the mid to high-end segment offered by traditional OEMs. FF believes the primary competitive factors in the electric vehicle
market include, but are not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">pricing;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">technological innovation, recently
enhanced through PT Gen 2.0;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">vehicle performance, quality,
safety and reliability;</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">space, comfort, and user experience;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">service and charging options;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">design, styling, and interior
materials; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">manufacturing efficiency.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">FF believes that it will compete
favorably with its competitors on the basis of these factors. However, most of FF&rsquo;s current and potential competitors have greater
financial, technical, supply chain, manufacturing, marketing, and other resources than FF. They may be able to deploy greater resources
to the design, development, manufacturing, supply chain, distribution, promotion, sales, marketing, and support of their electric vehicles.
Additionally, FF&rsquo;s competitors may also have greater name recognition, longer operating histories, lower cost of materials, larger
sales forces, broader customer and industry relationships, and other resources than FF does.<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Enforceability</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain of our current operations
are conducted in the PRC through our wholly owned subsidiaries. All or a substantial portion of the assets of these persons are located
outside the U.S. and in the PRC. As a result, it may not be possible to effect service of process within the U.S. or elsewhere outside
the PRC upon these persons. In addition, uncertainty exists as to whether the courts of the PRC would recognize or enforce judgments of
U.S. courts obtained against us or such director predicated upon the civil liability provisions of the securities laws of the U.S. or
any state thereof, or be competent to hear original actions brought in the PRC against us or such director predicated upon the securities
laws of the U.S. or any state thereof. See &ldquo;<I>Risk Factors - Risks Related to FF&rsquo;s Operations in China - There may be difficulties
in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments or bringing original
actions in China based on United States or other foreign laws against us and our management</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_010"></A>MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following table sets forth, as of October 2,
2024, certain information regarding our directors and executive officers who are responsible for overseeing the management of our business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Name</B></TD>
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Age </B></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid"><B>Position</B></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 30%">Matthias Aydt</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top; width: 8%">67</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 60%">Global Chief Executive Officer and Director(4)</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">Yueting Jia</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">50</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Chief Product and User Ecosystem Officer</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top">Koti Meka</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">55</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Chief Financial Officer</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">Scott Graziano</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Global General Counsel</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top">Chui Tin Mok</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">49</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Executive Vice President, Head of User Ecosystem, and Director(4)</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">Hong Rao</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">53</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Vice President, I.A.I.</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top">Chad Chen</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">41</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director(1)(2)(3)</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">Jie Sheng</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">41</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director(1)(2)(3)(4)</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top">Lev Peker</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">42</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">Director(1)(3)</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>(1)</I></FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>Member of the Audit Committee</I></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>(2)</I></FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>Member of the Nominating and Corporate Governance Committee</I></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>(3)</I></FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>Member of the Compensation Committee</I></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>(4)</I></FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>Member of the Finance and Investment Committee</I></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Executive Officers and Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="background-color: white"><B><I>Mr.
Yueting Jia,&nbsp;</I></B>50, is the Founder of FF and has served as FF&rsquo;s Chief Product and User Ecosystem Officer since September
2019 and served as CEO from 2017 to September 2019. In 2003, Mr. Jia founded Xbell Union Communication Technology (Beijing) Co., a Singapore
publicly-listed company that developed and launched China&rsquo;s first mobile video streaming software system. In 2004, he founded LeTV,
a video streaming website. In 2011, YT Jia founded Le Holdings Co. Ltd (&ldquo;LeEco&rdquo;), which is an internet ecosystem technology
company with business segments including smart phones, smart TV, smart cars, internet sports, video content, internet finance and cloud
computing. In 2014, YT Jia founded FF. YT Jia defined and led the team in creating the FF 91. As Chief Product and User Ecosystem Officer,
YT Jia oversees activities in product innovation, strategy and definition; internet, AI and autonomous driving; user experience, user
acquisition and user operation, capital markets, human resources and administration, corporate strategy and China departments and reports
directly to the Board.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mr. Matthias Aydt</I></B>, 67,&nbsp; serves
as FF&rsquo;s Global Chief Executive Officer. Before that he served as FF&rsquo;s Senior Vice President of Product Execution since December
13, 2022, and had previously served as FF&rsquo;s Senior Vice President of Business Development and Product Definition since November
2019, overseeing business development of FF&rsquo;s business to business sales, technology licensing and strategic cooperation as well
as leading its product strategy for future products, and has served as a member the Board since July 2021. Mr. Aydt served as a member
of the Board since July 2021. Mr. Aydt has served in various leadership roles at FF, including Senior Vice President of Product Execution,
Vice President of Vehicle Engineering and Vehicle Chief Engineer and Head of Hardware Architecture. Mr. Aydt has extensive experience
in the automotive industry. Prior to joining FF in July 2016, Mr. Aydt served as the Vice President of Vehicle Engineering of Qoros Auto
from January 2015 to May 2016, held various positions at Magna Steyr from 2006 to 2014, including Branch Manager and Head of Project Management
at Magna Steyr China. Mr. Aydt received his Bachelor of Science degree from Fachhochschule Ulm - Hochschule f&uuml;r Technik.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="background-color: white"><B><I>Mr.
Scott Graziano,&nbsp;</I></B>53, has served as Global General Counsel at Faraday Future since September 2023. Prior to joining FF, he
served at Healthpeak Properties, Inc. (NYSE: DOC) from October 2015 to September 2023, including as Senior Vice President and Deputy General
Counsel beginning in February 2017, as well as Corporate Secretary. Prior to joining Healthpeak, Mr. Graziano served as Director &ndash;
Securities and Corporate Governance at Western Digital Corporation (NASDAQ: WDC). Prior to that, Mr. Graziano was a counsel at the law
firm of O&rsquo;Melveny &amp; Myers LLP in Newport Beach, California, and Shanghai, China, from November 2004 to January 2015, and an
associate at the law firm of Shearman &amp; Sterling LLP in New York City from September 2000 to November 2004.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mr. Chui Tin Mok</I></B>, 49,&nbsp;has served
as FF&rsquo;s Global Executive Vice President and the Global Head of User Ecosystem since August 2018 and was appointed to the Board effective
as of January 25, 2023. Mr. Mok is experienced in managing marketing and sales functions in global internet tech companies. Prior to joining
FF, Mr. Mok worked in Trend Lab Limited, which Mr. Mok founded in January 2018. From September 2017 to January 2018, Mr. Mok was the President
of EFT Solutions Limited (HKEx: 8062), a Hong Kong public company that provides online and offline payment solutions. From 2013 to 2017,
Mr. Mok served as the Group Chief Marketing Officer of LeEco Group and also the Chief Executive Officer of LeEco APAC. Mr. Mok served
as the Global Vice President of Sales and Marketing of Meizu Technology Co., Ltd. from 2010 to 2013. Mr. Mok received his Higher Diploma
in Building Service Engineering from Hong Kong Institute of Vocational Education, and his Executive Master&rsquo;s Degree in Business
Administration from International Business Academy of Switzerland.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Mok is well-qualified to serve on the Board
based on his management and sales experience with global technology companies.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mr. Koti Meka</I></B>, <FONT STYLE="background-color: white">55,
</FONT>was appointed to be the Chief Financial Officer effective September 23, 2024. <FONT STYLE="background-color: white">Mr. Meka had
served as the Company&rsquo;s Acting Head of Finance Operations since November 2023, managing finance operations, heading financial planning
and analysis, and supporting process improvement, target setting and cost-reduction efforts. Previously, he served as the Company&rsquo;s
Director of Finance (FP&amp;A) from July 2017 to November 2023, Operations Controller from August 2016 to July 2017, and Senior Manager,
Cost Estimating from February 2016 to August 2016. Prior to joining the Company in February 2016, Mr. Meka worked at Ford Motor Company
from July 2002 to February 2016 in cost optimization, product development finance and corporate finance, including leading financial analysis
at Ford Business Services Center in Chennai, India from December 2009 to July 2013. He holds an MBA from the University of Michigan-Dearborn,
an M.S. in Mechanical Engineering from Wayne State University and a B.Tech. in Mechanical Engineering from Jawaharlal Nehru Technological
University, India</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mr. Hong Rao</I></B><I>, </I><FONT STYLE="background-color: white">53,</FONT>&nbsp;has
served as FF&rsquo;s Vice President of I.A.I. (Internet, Autonomous Driving, Intelligence) since April 2015, overseeing technology innovation,
product and technology roadmap, system architecture, software and AI, among others. Prior to joining FF, Mr. Rao served as Co-Founder
and Chief Technology Officer at Borqs Technologies from October 2007 to March 2015 and held several engineering leadership positions at
Motorola from 2003 to 2007. Mr. Rao received his Master of Business Administration degree from Arizona State University, his Master of
Science degree in Electrical Engineering from Beijing Institute of Technology, and his Bachelor of Science degree in Electrical Engineering
from Shanghai University of Science &amp; Technology.&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mr. Chad Chen</I></B><I>, </I>41, was appointed
to the Board on October 27, 2022, pursuant to the FF Top Amendment to the FF Top Voting Agreement. See &ldquo;<I>Certain Relationships
and Related Person Transactions &ndash; Certain Relationships and Related Person Transactions &mdash; the Company &ndash; Voting Agreements
by FF Top Holding LLC and Season Smart Limited</I>&rdquo; for more information. He is a partner with the law firm of Yoka | Smith, LLP
(&ldquo;Yoka Smith&rdquo;), where he has practiced since 2012. Mr. Chen represents national and multinational clients in both litigation
and non-litigation matters. Mr. Chen&rsquo;s litigation practice includes representing corporate clients in commercial and business disputes,
product liability defense, and class action defense. His non-litigation practice encompasses contract management, counseling on business
transactions and serving as outside general counsel in dealing with local, state, and federal agencies, including the U.S. Department
of the Treasury, the U.S. Department of Commerce, the United States International Trade Commission, and various tax authorities. Prior
to joining Yoka Smith, Mr. Chen worked in-house at an alternative energy company and was an associate with Collins + Collins, LLP (formerly
Collins, Muir + Stewart LLP). He received his Juris Doctor degree from Southwestern Law School in Los Angeles, California and his Bachelor
of Arts in Economics and Political Science from the University of California, Irvine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Mr. Chad Chen is well-qualified to serve on the
Board based on his significant experience advising corporate clients in a wide variety of legal and compliance matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>Mr. Jie Sheng</I>, </B>41, has served as
a member of the Board since December 18, 2022. Mr. Sheng is currently the Head of Operations &amp; Finance Director of FF Global, a position
he has held since June 2022. FF Global, through its subsidiary FF Top, is the Company&rsquo;s largest stockholder. From October 2018 to
June 2022, Mr. Sheng served as Deputy Managing Director of China Aviation Fuel (Europe) Limited, a wholly-owned subsidiary of China Aviation
Oil (Singapore) Corporation (&ldquo;CAO&rdquo;), a Singapore Exchange-listed Company, which in turn is a majority-owned subsidiary of
China National Aviation Fuel Group Corporation, a Fortune 500 company and the largest Chinese state-owned aviation fuel supplier which
integrates the purchase, transportation, storage, quality management, sales and into-plane service of aviation fuel in China. From October
2008 to October 2018, Mr. Sheng served as Executive Director of Finance of North American Fuel Corporation, also a wholly-owned subsidiary
of CAO, which conducts aviation fuel procurement, supplies jet fuel, and engages in general aviation endeavors in North America. Mr. Sheng
received a master&rsquo;s degree in accounting and financial economics from the University of Essex in 2008.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.
Sheng is well-qualified to serve on the Board based on his extensive leadership experience in and knowledge of logistics in the transportation
industry.</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Mr.
Lev Peker,&nbsp;</I></B>42, has served as a member of the Board since August 4, 2023. Mr. Peker is an automotive and retail experienced
C-Suite executive who has served in the CEO role as well as on the board of directors at various public and private organizations. He
has a results-driven mindset and a strong track record of performance in turnaround and high-paced organizations. Mr. Peker is currently
the CEO of PartsiD, a leading digital commerce platform for the automotive aftermarket, a position he has held since April 2023. Prior
to this role, Mr. Peker served as the CEO of CarLotz, a nationwide used car consignment retailer (which recently merged with Shift Technologies),
from April 2022 to December 2022. Prior to that role, Mr. Peker was the CEO of CarParts.com from 2019 to 2022 where he oversaw a more
than doubling of annual revenue, a nearly fourfold improvement in EBITDA and an increase in market capitalization of over 500%. He also
led the organization through a turnaround and strategic repositioning, while creating a three-year plan to increase operational efficiency,
maximize inventory, and improve the customer experience. Mr. Peker has also held various executive roles at Adorama, Sears Holdings Corporation
and US Auto Parts in his career. Mr. Peker is a Certified Public Accountant (CPA), has an MBA from The Anderson School of Management
at UCLA and a BS in Accounting from USC&rsquo;s Marshall School of Business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.
Peker is well-qualified to serve on the Board based on his extensive corporate experience and expertise in the field.&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
are no family relationships among any of our directors or executive officers.</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;<B>&nbsp;</B>&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Independence
of Directors</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
adheres to the rules of Nasdaq in determining whether a director is independent. The Board has consulted, and will consult on an ongoing
basis, with its counsel to ensure that the Board&rsquo;s determinations are consistent with those rules and all relevant securities and
other laws and regulations regarding the independence of directors. Nasdaq listing standards generally define an &ldquo;independent director&rdquo;
as a person, other than an executive officer of a company or any other individual having a relationship which, in the opinion of the
Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The Board has determined
that Chad Chen, Jie Sheng and Lev Peker are independent directors.</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
independent members of the Board have regularly scheduled meetings at which only independent directors are present. A majority of the
Board will remain independent, meaning FF cannot elect to be a controlled company under Nasdaq listing rules, until the market capitalization
of FF exceeds $20.0 billion (or $3.0 billion if certain Charter Amendments are approved and made to the Amended and Restated Charter)
and the Board elects to become a controlled company as a result of FF Top having requisite voting power for FF to become a controlled
company, or FF otherwise becomes a controlled company.</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risk
Oversight</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board oversees the risk management activities designed and implemented by management. The Board executes its oversight responsibility
both directly and through its committees. The Board also considers specific risk topics, including risks associated with its strategic
initiatives, business plans and capital structure. FF&rsquo;s management, including its executive officers, is primarily responsible
for managing the risks associated with the operation and business of FF and provides appropriate updates to the Board and the Audit Committee.
The Board has delegated to the Audit Committee oversight of its risk management process, and its other committees also consider risk
as they perform their respective committee responsibilities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Audit Committee assists the Board in oversight of cybersecurity risks, in addition to oversight of the performance of our audit function.
We have implemented a number of security measures designed to protect our systems and data, including firewalls, antivirus and malware
detection tools, patches, log monitors, routine back-ups, system audits, routine password modifications, and back-up recovery procedures.
We utilize third-party cloud services in connection with our operations. We and our third-party service providers have also designed
certain security features into our solutions. FF employees receive a comprehensive information security awareness training periodically
throughout the year. Our Nominating and Corporate Governance Committee monitors the effectiveness of our Corporate Governance Guidelines,
including whether they are successful in preventing illegal or improper liability-creating conduct. The Nominating and Corporate Governance
Committee is also responsible for overseeing FF&rsquo;s environmental, sustainability and governance efforts and progress and related
risks. Our Compensation Committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage
excessive risk-taking. All committees report to the Board, as appropriate, including when a matter rises to the level of material or
enterprise risk.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Board
Composition</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board directs the management of FF&rsquo;s business and affairs, as provided by Delaware law, and conducts its business through meetings
of the Board and its standing committees. The Board consists of five members, all of whom are standing for re-election&nbsp;at the Annual
Meeting to serve a one-year&nbsp;term and until their successor has been duly elected and qualified or until their earlier death, resignation
or removal.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
January&nbsp;20, 2023, Mr.&nbsp;Qing Ye tendered his resignation from the Board, which resignation was effective immediately. Mr.&nbsp;Ye
remained a consultant of the Company as an independent contractor until September&nbsp;15, 2023. On January&nbsp;25, 2023, Mr.&nbsp;Chui
Tin Mok was appointed to the Board, effective immediately, following the resignation of Mr.&nbsp;Ye. On March&nbsp;9, 2023, Mr.&nbsp;Matthias
Aydt (at the time, the Company&rsquo;s Senior Vice President, Product Execution) tendered his resignation from&nbsp;the Board, effective
upon the nomination and approval by the Board of a replacement director. On March&nbsp;13, 2023, upon the recommendation of the Nominating
and Corporate Governance Committee, the Board appointed Ms. Li Han to fill the vacancy on the Board due to Mr.&nbsp;Aydt&rsquo;s resignation.
On July&nbsp;31, 2023, Mr.&nbsp;Adam (Xin) He tendered his resignation from the Board and as interim Board Chairman, which resignation
was effective immediately. On August&nbsp;4, 2023, upon the recommendation of the Nominating and Corporate Governance Committee, the
Board appointed Mr.&nbsp;Lev Peker to fill the vacancy on the Board due to Mr.&nbsp;He&rsquo;s resignation. On September&nbsp;16, 2023,
Mr.&nbsp;Xuefeng Chen tendered his resignation from the Board and as Global CEO, effective September&nbsp;29, 2023, in order to resume
his prior position as FF China Chief Executive Officer, based in China, and assume a new role as Executive Vice President of Global Industrialization
of the Company. On September&nbsp;21, 2023, the Board appointed Mr.&nbsp;Mattias Aydt to succeed Mr.&nbsp;Chen as Global CEO and as a
member of the Board, effective September&nbsp;29, 2023. On October&nbsp;10, 2023, Ms. Ke Sun tendered her resignation from the Board,
which resignation was effective immediately. On June&nbsp;9, 2024, Ms. Li Han tendered her resignation from the Board, which resignation
was effective immediately. In accordance with the Charter and FF Top&rsquo;s consent rights, the Board reduced the size of the Board
from seven to six on October&nbsp;16, 2023 and from six to five on June&nbsp;20, 2024, with such reductions resulting in no vacancies
on the Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Board
Leadership Structure</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board oversees the management of the business and affairs of FF and ensures that the long-term&nbsp;interests of stockholders are served.
It is the ultimate decision-making&nbsp;authority within FF except to those matters that are reserved for FF&rsquo;s stockholders, including
director elections. The Board meets on a regular basis and additionally as it deems appropriate. Pursuant to FF&rsquo;s Corporate Governance
Guidelines, the Board annually determines the leadership structure that it determines to be in the best interests of FF and its stockholders
at the time. If the Chairperson of the Board is not an independent director, the independent directors shall elect from among themselves
a director to serve as the Lead Independent Director upon the recommendation of the Nominating and Corporate Governance Committee. Although
annually elected, the Lead Independent Director is generally expected to serve for more than one year. If the Lead Independent Director
(if any) is not present at any meeting of the independent directors, a majority of the independent directors present shall select an
independent director to preside over that meeting.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Effective
as of October&nbsp;3, 2022, Mr.&nbsp;Adam (Xin) He was appointed Interim Chairperson of the Board following the resignations of the former
Executive Chairperson and the former Lead Independent Director. The Board believed that the appointment of an independent director as
Chairperson on an interim basis would ensure appropriate transition in Board leadership at a critical time, while allowing the then-Global&nbsp;CEO
to focus on FF&rsquo;s business, operations and strategy. As disclosed above, Mr.&nbsp;He resigned from the Board in July&nbsp;2023.
The Company expects that the current Board will select a permanent Chairperson of the Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
FF&rsquo;s Corporate Governance Guidelines, in addition to the duties set forth in the Bylaws or as otherwise prescribed by the Board,
from time to time, the duties of the Chairperson include (i)&nbsp;presiding at, and chairing, Board meetings and meetings of stockholders;
(ii)&nbsp;consulting with the Global CEO (if held by a different individual), other executive officers, the chairs of applicable committees
of the Board and the Office of the Secretary to the Board to establish agendas for each Board meeting; (iii)&nbsp;calling Board meetings;
(iv)&nbsp;leading the Board in discussions concerning the Global CEO&rsquo;s performance and Global CEO succession, if such position
is held by an individual other than the Global CEO; (v)&nbsp;approving meeting schedules for the Board; (vi)&nbsp;approving information
sent to the Board; (vii)&nbsp;serving as a liaison for stockholders who request direct communications with the Board; and (viii)&nbsp;performing
such other duties and exercising such other powers, as the Board shall from time to time delegate.</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Board
Meetings and Committees</B></FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">During
fiscal 2023, the Board held 38 meetings, some with recessed sessions. Each director of FFIE attended or participated in 75% or more of
the aggregate of the total number of meetings of the Board and the total number of meetings of all committees of the Board on which such
director served (in each case held during such director&rsquo;s relevant period of service).</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Audit
Committee Information</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF&rsquo;s
Audit Committee currently consists of Lev Peker, Chad Chen and Jie Sheng, each of whom is &ldquo;independent&rdquo; as such term is defined
for Audit Committee members under the rules of the SEC and the listing standards of Nasdaq. Lev Peker is the chair of the Audit Committee.
The Board has determined that Lev Peker, Chad Chen and Jie Sheng each qualifies as an &ldquo;audit committee financial expert&rdquo;
as defined under the rules of the SEC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
more fully described in its charter, the primary responsibilities of the Audit Committee include (i) to appoint the independent registered
public accounting firm and oversee the relationship, and approve the audit and non-audit services to be performed by the independent
registered accounting firm; (ii) to review FF&rsquo;s quarterly and annual financial statements with management and the independent registered
public accounting firm; (iii) to review FF&rsquo;s financial reporting processes and internal controls; (iv) to review and approve all
transactions between FF and related persons; and (v) to discuss the policies with respect to risk assessment and risk management, information
technology and cybersecurity risks, and other major litigation and financial risk exposures, and the steps management has taken to monitor
and control such exposures.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.45in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Audit Committee held 17 meetings during fiscal year 2023.&nbsp;The Audit Committee has adopted a written charter approved by the Board,
which is available on FF&rsquo;s website at&nbsp;https://investors.ff.com/corporate-governance/governance-overview.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Compensation
Committee</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF&rsquo;s
Compensation Committee is currently comprised of Chad Chen, Jie Sheng and Lev Peker, each of whom is &ldquo;independent&rdquo; as such
term is defined for Compensation Committee members under the rules of the SEC, the listing standards of Nasdaq and applicable rules of
the Internal Revenue Code of 1986, as amended. Mr.&nbsp;Sheng is the chair of the Compensation Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
more fully described in its charter, the primary responsibilities of the Compensation Committee include (i)&nbsp;to review and approve
the corporate goals and objectives relevant to Global CEO compensation, evaluate at least annually the Global CEO&rsquo;s performance
in light of those goals and objectives and make recommendations to the Board with respect to the Global CEO&rsquo;s compensation, including
salary, bonus, fees, benefits, incentive awards and perquisites, based on this evaluation; (ii)&nbsp;to recommend to the Board the compensation
of executive officers other than the Global CEO; (iii)&nbsp;to recommend to the Board the adoption, material modification or termination
of FF&rsquo;s compensation plans, including incentive compensation and equity-based&nbsp;plans, policies and programs; (iv)&nbsp;to recommend
to the Board appropriate compensation for FF&rsquo;s non-employee&nbsp;directors, including compensation and expense reimbursement policies
for attendance at Board and committee meetings; (v)&nbsp;to consider whether risks arising from FF&rsquo;s compensation plans, policies
and programs for its employees are reasonably likely to have a material adverse effect on FF, including whether FF&rsquo;s incentive
compensation plans encourage excessive or inappropriate risk taking; and (vi)&nbsp;to determine stock ownership guidelines and monitor
compliance with such guidelines. The Compensation Committee&rsquo;s charter provides that the Compensation Committee may form and delegate
authority to subcommittees consisting of one or more members when it deems appropriate. The Compensation Committee does not currently
intend to delegate any of its responsibilities to a subcommittee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Compensation Committee held 15 meetings during fiscal year 2023. The Compensation Committee has adopted a written charter approved by
the Board, which is available on FF&rsquo;s website at&nbsp;<I>https://investors.ff.com/corporate-governance/governance-overview</I>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Nominating
and Corporate Governance Committee</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF&rsquo;s
Nominating and Corporate Governance Committee (the &ldquo;Nominating Committee&rdquo;) is currently comprised of Chad Chen and Jie Sheng,
each of whom is &ldquo;independent&rdquo; under the rules of the SEC and the listing standards of Nasdaq. Mr.&nbsp;Chen is the chair
of the Nominating Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
more fully described in its charter, the primary responsibilities of the Nominating Committee include (i)&nbsp;to assist the Board in
identifying prospective director nominees and recommending nominees for each annual meeting of stockholders to the Board; (ii)&nbsp;to
make recommendations to the Board regarding its size, membership and leadership, as well as committee membership and structure; (iii)&nbsp;to
develop and recommend to the Board a set of corporate governance guidelines applicable to FF and to monitor compliance with such guidelines;
(iv)&nbsp;to oversee the annual self-evaluation&nbsp;process to determine whether the Board and its committees and individual directors
are functioning effectively and to report the results of the self-evaluation&nbsp;process to the Board; and (v)&nbsp;to oversee FF&rsquo;s
environmental, sustainability and governance efforts and progress.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Nominating Committee held 6 meetings during fiscal year 2023. The Nominating Committee has adopted a written charter approved by the
Board, which is available on FF&rsquo;s website at&nbsp;<I>https://investors.ff.com/corporate-governance/governance-overview</I>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Finance
and Investment Committee</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF&rsquo;s
Finance and Investment Committee is currently comprised of Matthias Aydt, Chui Tin Mok and Jie Sheng. Mr.&nbsp;Sheng is the chair of
the Finance and Investment Committee.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
more fully disclosed in its charter, the principal responsibilities of the Finance and Investment Committee include (i)&nbsp;upon consultation
with or recommendation from FF&rsquo;s Chief Financial Officer, to review with management and make recommendations to the Board matters
relating to the establishment of a share repurchase authorization, debt repurchases, issuance of debt and equity securities, dividend
policy, initiation or amendment of any revolving credit facilities and (a)&nbsp;any proposed merger or consolidation, (b)&nbsp;any significant
acquisition, sale, lease or exchange of property or assets and (c)&nbsp;other significant business transactions; (ii)&nbsp;in the event
of any merger or consolidation, to periodically review with management the progress and integration of the merger or consolidation, including
the achievement of business synergies, business opportunities or initiatives that may result in substantial capital expenditures, commitments
or exposures and major financial undertakings and financing transactions; (iii)&nbsp;to review FF&rsquo;s financial policies, capital
structure, strategy for obtaining financial resources, tax-planning&nbsp;strategies and use of cash flow and make such reports and recommendations
to the Board with respect thereto as it deems advisable; (iv)&nbsp;to oversee the development of long-term&nbsp;capital structure guidelines;
(v)&nbsp;to review the funding obligations and financial performance of benefits plans sponsored by FF; (vi)&nbsp;to review FF&rsquo;s
financial plans and objectives, and review and recommend to the Board annual financial plans, capital plans and budgets; (vii)&nbsp;to
review FF&rsquo;s cash management policies and activities, and review and recommend to the Board certain proposed issuances, repurchases
or redemptions of FF securities; (viii)&nbsp;to review debt limitations and material covenants, loan guarantees of third party debt and
obligations, strategic alliances and investments and target credit ratings; and (ix)&nbsp;to review risk assessment and risk management
policies and strategies for managing certain exposures to financial, operating, or economic risks, including hedging strategies related
to foreign currency, interest rates and other commercial risks, and the steps management has taken to monitor and control such risk exposures,
as well as review certain legal and regulatory matters that may have a material impact on FF&rsquo;s financing or risk management activities
(taking into account the review of FF&rsquo;s risk assessment and risk management policies and strategies managed through FF&rsquo;s
Audit Committee).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Finance and Investment Committee held 14 meetings during fiscal year 2023. The Finance and Investment Committee has adopted a written
charter approved by the Board, which is available on FF&rsquo;s website at&nbsp;<I>https://investors.ff.com/corporate-governance/governance-overview</I>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Code
of Ethics</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
has a Code of Ethics that applies to all of its employees, officers, and directors. This includes FF&rsquo;s principal executive officer,
principal financial officer, and principal accounting officer or controller, or persons performing similar functions. The full text of
the Code of Ethics is posted on FF&rsquo;s website at&nbsp;<I>www.ff.com</I>. FF intends to disclose on its website any future amendments
of the Code of Ethics or waivers that exempt any principal executive officer, principal financial officer, principal accounting officer
or controller, persons performing similar functions, or FF&rsquo;s directors from provisions in the Code of Ethics.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Guidelines
for Selecting Director Nominees</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board is responsible for nominating candidates for election to the Board and for filling vacancies on the Board that may occur between
annual meetings of stockholders, subject to the requirements of the A&amp;R Shareholder Agreement. The Nominating Committee is responsible
for identifying, screening and recommending director candidates (subject to the Heads of Agreement and A&amp;R Shareholder Agreement)
to the full Board, taking into consideration the needs of the Board and the qualifications of the candidates. The Board, based on the
recommendation of the Nominating Committee, will review each director&rsquo;s continuation on the Board in connection with the director&rsquo;s
re-election.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Nominating Committee also determines the criteria for Board membership. The guidelines for selecting nominees, which are specified in
the Nominating Committee charter, generally provide that persons to be nominated:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">should
                                            have demonstrated notable or significant achievements in business, education or public service;</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">should
                                            possess the requisite intelligence, education and experience to make a significant contribution
                                            to the Board and bring a range of skills, diverse perspectives and backgrounds to its deliberations;
                                            and</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">should
                                            have the highest ethical standards, a strong sense of professionalism and intense dedication
                                            to serving the interests of the stockholders.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.95in; text-align: justify; text-indent: -0.25in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
selecting director nominees, the Nominating Committee shall consider a number of qualifications relating to management and leadership
experience, background and integrity and professionalism, such as a general understanding of various business disciplines (e.g., marketing,
finance, etc.), FF&rsquo;s business environment, educational and professional background, analytical ability, independence, industry
experience, diversity of viewpoints and backgrounds, willingness to devote adequate time to Board duties, ability to act in and represent
the balanced best interests of FF and its stockholders as a whole, and support for the long term vision of FF.&nbsp;In conducting this
assessment, the Nominating Committee considers diversity, in the broadest sense, reflecting, but not limited to, gender, racial, ethnicity,
age, skills, industry and professional background. The Board evaluates each individual in the context of the Board as a whole with the
objective of retaining a group that is best equipped to help ensure FF&rsquo;s success and represent stockholder interests through sound
judgment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">It
is the policy of the Nominating Committee to consider persons for Board nomination identified by its members, management, stockholders,
investment bankers and others, and to evaluate those individuals using the same criteria. The Nominating Committee will not distinguish
among nominees recommended by stockholders and other persons. The Company&rsquo;s stockholders may recommend nominees for consideration
by the Nominating Committee by submitting the names and supporting information to the Company&rsquo;s Secretary or the Chair of the Nominating
Committee; provided that the nomination of directors by FF Top is subject to the A&amp;R Shareholder Agreement. Under the A&amp;R Shareholder
Agreement entered into between FF and FF Top, based on FF Top&rsquo;s voting power, FF Top currently has the right to nominate four out
of five directors on the Board.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Compensation
Committee Interlocks and Insider Participation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">None
of the members of the Compensation Committee is currently, or has been at any time, one of FF&rsquo;s officers or employees. None of
FF&rsquo;s executive officers currently serves, or has served since July&nbsp;2021, as a member of the board of directors or compensation
committee of any entity that has one or more executive officers serving as a member of the Board or Compensation Committee.</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><BR>
<BR></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Delinquent
Section 16(A) Reports</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
Section 16 of the Exchange Act, FF&rsquo;s directors, executive officers and any persons holding more than 10% of FF&rsquo;s common stock
are required to report initial ownership of FF common stock and any subsequent changes in ownership to the SEC. Specific due dates have
been established by the SEC, and FF is required to disclose below any failure to file required ownership reports by these dates. Based
solely upon a review of forms filed with the SEC and the written representations of such persons, FF is aware of no late Section 16(a)
filings except as follows: (i) for Rao Hong, failure to file a Form 4 related to a grant of performance stock option for start-of-production
of the EV car model FF 91; (ii) for Matthias Aydt, a late Form 4 filing related to a purchase of Series A preferred stock; (iii) for
Lev Peker, a late Form 4 filing related to a grant of restricted stock unit for his director services; (iv) for Li Han, a late Form 4
filing related to a grant of restricted stock unit for her director services; (v) for Chad Chen, a late Form 4 filing related to a grant
of restricted stock unit for his director services; and (vi) for Jie Sheng, a late Form 4 filing related to a grant of restricted stock
unit for his director services.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Attendance
at Annual Meetings of Stockholders by the Board</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Although
FF does not have a formal policy regarding attendance by members of the Board at FF&rsquo;s annual&nbsp;meetings of stockholders, directors
are strongly encouraged to attend. Three of FF&rsquo;s then-serving&nbsp;directors attended the 2023 annual meeting of stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Corporate
Governance Guidelines</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board has adopted Corporate Governance Guidelines, which provide the framework for FF&rsquo;s corporate governance along with the Charter,
Bylaws, committee charters and other key governance practices and policies. The Corporate Governance Guidelines cover a wide range of
subjects, including the conduct of Board meetings, independence and selection of directors, Board membership criteria, and Board committee
composition. The full text of the Corporate Governance Guidelines is posted on FF&rsquo;s website at&nbsp;<I>https://investors.ff.com/corporate-governance/governance-overview</I>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Code
of Business Conduct and Ethics</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
has a Code of Business Conduct and Ethics that applies to all of its employees, officers, and directors. This includes FF&rsquo;s principal
executive officer, principal financial officer, and principal accounting officer or controller, or persons performing similar functions.
The full text of the Code of Business Conduct and Ethics is posted on FF&rsquo;s website at&nbsp;<I>https://investors.ff.com/corporate-governance/governance-overview</I>.
FF intends to disclose on its website any future amendments of the Code of Business Conduct and Ethics or waivers that exempt any principal
executive officer, principal financial officer, principal accounting officer or controller, persons performing similar functions, or
FF&rsquo;s directors from provisions in the Code of Business Conduct and Ethics.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Prohibition
on Hedging and Pledging of Company Securities</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
part of FF&rsquo;s insider trading policy, all Company directors, officers, employees, independent contractors and consultants are prohibited
from engaging in short sales of our securities, establishing margin accounts, pledging FF securities as collateral for a loan, trading
in derivative securities, including buying or selling puts or calls on our securities, or otherwise engaging in any form of hedging or
monetization transactions (such as prepaid variable forwards, equity swaps, collars and exchange funds) involving FF securities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Stock
Ownership Guidelines</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board believes that, in order to more closely align the interests of executives and directors with the interests of FF&rsquo;s other
stockholders, FF&rsquo;s executive officers and directors should maintain a minimum level of equity interests in FF&rsquo;s Common Stock.
Accordingly, FF has stock ownership guidelines requiring ownership of shares with a value equal to at least six times base salary for
the Global CEO, two times base salary for other executive officers and three times the annual cash retainers for non-employee&nbsp;directors.
Until the required level of ownership is met, covered executives and covered directors are required to retain 50% of the after-tax&nbsp;shares
acquired upon exercise of stock options and vesting of equity awards. Shares subject to stock options, whether vested or unvested, and
unvested and unsettled performance-based&nbsp;stock awards do not count for purposes of determining whether a covered executive or covered
director is in compliance with the guidelines. Under the stock ownership guidelines, covered executives and covered directors must achieve
the required level of ownership by the later of (i)&nbsp;the five-year&nbsp;anniversary of the adoption of the guidelines and (ii)&nbsp;the
five-year&nbsp;anniversary of becoming an executive officer or a director, respectively. As of the Record Date, each of FF&rsquo;s covered
executives and covered directors was either in compliance with the guidelines or within the five-year&nbsp;phase-in&nbsp;period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Management
Succession Planning</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
part of the annual executive officer evaluation process, the Compensation Committee works with the Global CEO to plan for the succession
of the Global CEO and other senior executive officers, as well as to develop plans for interim or emergency succession for the Global
CEO and other senior executive officers in the event of retirement or an unexpected occurrence. The succession plan should include, among
other things, an assessment of the experience, performance and skills for possible successors to the Global CEO.&nbsp;The Board reviews
this succession plan at least annually.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Compensation Committee conducts a review at least annually of the performance of the Global CEO.&nbsp;The Compensation Committee establishes
the evaluation process and determines the criteria by which the Global CEO is evaluated. The results of this review are communicated
to the Global CEO.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Board
Succession Planning</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
part of the annual Board evaluation process, the Nominating Committee works with the Board to plan for the succession of the members
of the Board and each of its committees, as well as to develop plans for interim or emergency succession for Board and committee members
in the event of retirement or an unexpected occurrence. The succession plan should include, among other things, an assessment of the
experience, performance and skills for possible successors to the Board and committee members. The Board reviews this succession plan
at least annually.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Annual
Board, Committee and Individual Director Evaluation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
Board evaluates its performance and the performance of its committees on an annual basis through an evaluation process administered by
the Nominating Committee to determine whether it and its committees are functioning effectively and how to improve their effectiveness.
Each committee of the Board shall also evaluate its performance on an annual basis and report the results to the Board, acting through
the Nominating Committee. Each committee&rsquo;s evaluation must compare the performance of the committee with the requirements of its
written charter.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_011"></A>EXECUTIVE
AND DIRECTOR COMPENSATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
section discusses the material components of the executive compensation program for certain of FF&rsquo;s executive officers and directors.
The share amounts discussed in this section have been adjusted to reflect the 1-for-80&nbsp;reverse stock split effective August&nbsp;28,
2023, the 1-for-3&nbsp;reverse stock split effective February&nbsp;29, 2024 and the 1-for-40 reverse stock split effective August 16,
2024. As an &ldquo;emerging growth company&rdquo; as defined in the JOBS Act, FF is not required to include a Compensation Discussion
and Analysis section and has elected to apply the scaled back disclosure requirements applicable to emerging growth companies, which
require compensation disclosure for all individuals who served as FF&rsquo;s principal executive officer during 2023, its two most highly
compensated executive officers (other than the principal executive officer) whose total compensation for 2023 exceeded $100,000 and who
were serving as executive officers as of December&nbsp;31, 2023 and two additional individuals for whom disclosure would have been provided
but for the fact that such individual was not serving as an executive officer at the end of 2023. We refer to these individuals as &ldquo;named
executive officers.&rdquo; For 2023, FF&rsquo;s named executive officers and the positions each held as of December&nbsp;31, 2023 were:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Matthias
                                            Aydt, Global Chief Executive Officer<SUP>(1)</SUP></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Xuefeng
                                            (XF) Chen, former Global Chief Executive Officer<SUP>(2)</SUP></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ms.
                                            Yun Han, Former Chief Accounting Officer and Former Interim Chief Financial Officer<SUP>(3)</SUP></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Chui
                                            Tin Mok, Global Executive Vice President and Global Head of User Ecosystem</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;YT
                                            Jia, Chief Product and User Ecosystem Officer</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Aydt
                                            was appointed Global Chief Executive Officer effective September&nbsp;29, 2023.</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;XF
                                            Chen resigned from his position as Global Chief Executive Officer effective September&nbsp;29,
                                            2023.</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ms.
                                            Han resigned from her position as Interim Chief Financial Officer of the Company effective
                                            July&nbsp;5, 2023. Ms. Han resigned from her position as Chief Accounting Officer of the
                                            Company effective February&nbsp;2, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
expect that FF&rsquo;s executive compensation program will continue to evolve to reflect FF&rsquo;s status as a newly publicly-traded&nbsp;company,
while still supporting FF&rsquo;s overall business and compensation objectives of attracting, motivating and retaining individuals who
contribute to the long-term&nbsp;success of FF.&nbsp;The Compensation Committee of the Board is responsible for administering FF&rsquo;s
executive compensation program.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2023
Compensation of Named Executive Officers</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Base
Salary</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Base
salaries are intended to provide a level of compensation sufficient to attract and retain an effective management team, when considered
in combination with the other components of the executive compensation program. In general, FF seeks to provide a base salary level designed
to reflect each executive officer&rsquo;s scope of responsibility and accountability. Please see the &ldquo;Salary&rdquo; column in the
&ldquo;<I>Summary Compensation Table&nbsp;&mdash;&nbsp;Fiscal 2023</I>&rdquo; for the base salary amounts received by each named executive
officer in 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Bonuses</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the terms of their respective offer letter and employment agreement, as applicable, the named executive officers are eligible for
a discretionary target bonus for 2023 in the following amounts:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Aydt
                                            in the amount of $100,000.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Chen
                                            in the amount of $450,000.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Mok
                                            in the amount of $300,000.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ms.
                                            Han in the amount of $240,000.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: justify; width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Jia
                                            in the amount of $350,000.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Equity
Awards</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
further focus FF&rsquo;s executive officers on FF&rsquo;s long-term&nbsp;performance, FF has granted equity compensation in the form
of stock options and RSUs.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
early 2023, the Company granted Mr.&nbsp;Chen stock options to purchase 209&nbsp;shares of Common Stock, which would vest in eight equal
annual installments, and an award of 25 RSUs, which would vest in four equal annual installments. Mr.&nbsp;Chen was also granted performance-based&nbsp;stock
options to purchase 105&nbsp;shares of Common Stock and 63 performance-based&nbsp;RSUs, which would vest in four equal annual installments
on each of the first four anniversaries of the start of production of the Company&rsquo;s FF 91 model. These awards were forfeited upon
Mr.&nbsp;Chen&rsquo;s resignation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Please
see the &ldquo;<I>Summary Compensation Table&nbsp;&mdash;&nbsp;Fiscal 2023</I>&rdquo; and the &ldquo;<I>Outstanding Equity Awards at
2023 Fiscal&nbsp;Year-End</I>&rdquo; tables for further information regarding the equity grants received by the named executive officers
during 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Summary
Compensation Table&nbsp;&mdash;&nbsp;Fiscal 2023</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following table sets forth certain information concerning compensation paid to the named executive officers for the fiscal year ended
December&nbsp;31, 2023 and, to the extent required by the SEC executive compensation disclosure rules, 2022. Due to an administrative
error, the values previously reported in the Stock Awards and Option Awards columns, as well as the Total column, in the Summary Compensation
Table included the Company&rsquo;s Annual Report on Form 10-K&nbsp;for the year ended December&nbsp;31, 2023 filed with the SEC on May&nbsp;28,
2024 were not correct. The Company filed a Form 10-K/A for the year ended December&nbsp;31, 2023 on June&nbsp;24, 2024 correcting this
error. The table below reflects the corrected amounts. The Company has also determined that Jonathan Maroko is not a named executive
officer for 2023 and, accordingly, his compensation information is not presented in the table.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name
    and Principal Position</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Year</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Salary<BR>
    ($)<SUP>(1)</SUP></B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Bonus<BR>
    ($)<SUP>(2)</SUP></B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock<BR>
    Awards<BR> ($)<SUP>(3)</SUP></B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option<BR>
    Awards<BR> ($)<SUP>(3)</SUP></B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Non-Equity<BR>
    Incentive Plan<BR> Compensation<BR> ($)</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>All
    Other<BR> Compensation<BR> ($)<SUP>(4)</SUP></B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center; font-weight: bold; padding-bottom: 1.5pt; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total<BR>
    ($)</FONT></TD><TD STYLE="text-align: center; padding-bottom: 1.5pt; font-weight: bold; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 36%; font-weight: bold; text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Matthias
                                            Aydt</B></FONT></P>
                                                                <P STYLE="margin-left: 0.2in; text-indent: -0.125in; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal"><I>Global
                                            Chief Executive Officer</I></FONT></P></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">348,250</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,000</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 1%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; width: 5%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">353,250</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Xuefeng Chen</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">725,207</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">900,202</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">99,110</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">80,272</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,854,791</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.2in; font-style: italic; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Former
    Global Chief Executive Officer</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2022</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">487,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">500,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">987,500</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yun Han</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">390,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">325,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">715,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.2in; font-style: italic; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Former
    Chief Accounting Officer and Former Interim Chief Financial Officer</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2022</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">73,976</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">200,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">912,815</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,186,791</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chui Tin Mok</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">433,250</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">438,250</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.2in; font-style: italic; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Global
    Executive Vice President and Global Head of User Ecosystem</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2022</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">500,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,904</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">76</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">520,904</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>YT
                                            Jia</B></FONT></P>
                                                    <P STYLE="text-indent: -0.125in; margin-left: 0.2in; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-weight: normal"><I>Chief
                                            Product and User Ecosystem Officer</I></FONT></P></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2023</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">390,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">50,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">440,750</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            annualized base salaries for the named executive officers at the beginning of fiscal 2023
                                            were as follows: Mr.&nbsp;Aydt $400,000; Mr.&nbsp;Chen, $900,000; Ms. Han, $400,000; Mr.&nbsp;Mok,
                                            $500,000; and Mr.&nbsp;Jia, $450,000. In connection with Mr.&nbsp;Chen&rsquo;s resignation
                                            as Global Chief Executive Officer, Mr.&nbsp;Chen&rsquo;s annual base salary was reduced to
                                            $750,000 effective September&nbsp;29, 2023. In October&nbsp;2023, Messrs. Chen, Mok, Aydt
                                            and Jia agreed to a temporary salary reduction through November&nbsp;2023 to an annualized
                                            minimum wage of $66,000. In December&nbsp;2023, as part of the Company&rsquo;s cost cutting
                                            initiatives, the base salaries of all named executive officers, other than Mr.&nbsp;Chen,
                                            were reduced by 30%, and Mr.&nbsp;Chen&rsquo;s salary was reduced by approximately 50%.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            amounts reported in this column for each executive represent cash signing and retention bonuses.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            amounts reported in these columns reflect the grant date fair value of time-based&nbsp;RSUs,
                                            time-based&nbsp;stock option awards and PSU awards, as applicable, granted to the named executive
                                            officers during 2023 and 2022 and are accounted for in accordance with FASB ASC Topic&nbsp;718.
                                            For the assumptions used to value these awards, see Note&nbsp;12 (Stock-Based&nbsp;Compensation)
                                            in the Notes to Consolidated Financial Statements in the 2023 Form 10-K&nbsp;(or the corresponding
                                            note in the annual report for prior&nbsp;years).</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            amount reported in this column for Mr.&nbsp;Chen includes a housing allowance of $64,000
                                            and $16,272 for the payment of accrued paid time off and other benefits.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

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<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Employment
Agreements, Offer Letters and Other Compensatory Agreements</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Matthias
Aydt</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Aydt
entered into an offer letter with Faraday&amp;Future, Inc., a California corporation and a wholly-owned&nbsp;subsidiary of FF (&ldquo;FF
U.S.&rdquo;), dated March&nbsp;31, 2016, that provided for his employment as Vehicle Line Executive. The offer letter provided for Mr.&nbsp;Aydt
to receive an annual base salary of $240,000. The offer letter also provided that Mr.&nbsp;Aydt would be paid a signing bonus of $40,000
within 30&nbsp;days of his start date of July&nbsp;1, 2016 (the &ldquo;Employment Date&rdquo;), as well as a settling in allowance of
$6,000. Pursuant to the offer letter, Mr.&nbsp;Aydt is entitled to receive a discretionary annual performance bonus (with a target amount
of $40,000). Mr.&nbsp;Aydt is also entitled to participate in FF U.S.&rsquo;s health insurance, 401(k)&nbsp;plan, paid time off and paid
holidays. Pursuant to the offer letter, Mr.&nbsp;Aydt was entitled to receive an employee stock option grant equal to 250,000 stock options.
The stock option grant vested 25% on the first anniversary of the Employment Date and 1/36<SUP>th</SUP>&nbsp;on each of the following
36&nbsp;months, subject to Mr.&nbsp;Aydt&rsquo;s continued employment. Pursuant to the offer letter, Mr.&nbsp;Aydt&rsquo;s employment
constitutes employment at will.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Effective
September&nbsp;29, 2023, Mr.&nbsp;Aydt was appointed to the position of Global Chief Executive Officer of Faraday Future. In connection
with his appointment to Global Chief Executive Officer, the Board approved an annual base salary of $400,000, which was consistent with
his salary as Senior Vice President of Business Development and Product Definition. Mr.&nbsp;Aydt is also eligible to receive a discretionary
annual performance bonus of up to $100,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
September 4, 2024, the Board, upon the recommendation of the Compensation Committee of the Board, approved the following changes to the
compensatory arrangements of Mr. Aydt:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 23.75pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
                                            annual base salary of $700,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
                                            annual discretionary target bonus of $700,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A
                                            one-time recognition bonus of $500,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
                                            annual grant of time-based restricted stock units (&ldquo;RSUs&rdquo;) having a grant date
                                            fair value equal to $2.1 million</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">An
                                            annual grant of performance-based restricted stock units (&ldquo;PSUs&rdquo;) having a target
                                            grant date fair value equal to $2.1 million</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Annual
                                            Base Salary</U></I>:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9675;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beginning
    September 2024, (i) Mr. Aydt will initially be paid a pro-rated annual base salary of $550,000 (for so long as $350,000 (pro-rated)
    of such amount is used to purchase shares of the Company&rsquo;s Class A common stock as described below), Mr. Aydt&rsquo;s full
    annual base salary as approved by the Board will become effective upon such date that the Company restores in full the base salaries
    of all employees of the Company.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In furtherance
    of the above, Mr. Aydt has notified the Company that he intends to use a portion of his base salary (equal to approximately 64% of
    his initial pro-rated $550,000 base salary for Mr. Aydt) to purchase shares of the Company&rsquo;s Class A common stock pursuant
    to the previously disclosed Salary Deduction and Stock Purchase Agreements over the three-month period of September through November
    2024. Further, Mr. Aydt has informed the Company that, beginning in December 2024, he currently intends to continue to use the same
    portion of his initial pro-rated annual base salary described in the prior sentence to purchase shares of the Company&rsquo;s Class
    A common stock until such time that the Company restores in full the base salaries of all employees of the Company.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Recognition
                                            Bonus</U></I>: The one-time recognition bonus will be payable: (i) 25% on September 30, 2024,
                                            (ii) 25% on October 31, 2024, and (iii) 50% on the earlier of: (x) September 30, 2025 or
                                            (y) the date upon which the Company closes a future round of financing in an amount not less
                                            than $30 million (not including the Company&rsquo;s recently disclosed financing). In the
                                            event that Mr. Aydt voluntarily resigns or is terminated for cause (as customarily defined)
                                            prior to the four-year anniversary of the date of such executive&rsquo;s appointment to his
                                            current role, then the Company will be entitled to claw back either a pro rata portion (in
                                            the event of a voluntary resignation) or all amounts paid (in the event of a termination
                                            for cause) to such executive for such recognition bonus.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>RSUs</U></I>:
                                            The RSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan based on the closing price of the Company&rsquo;s
                                            Class A common stock on September 13, 2024 and will vest in equal 25% increments on each
                                            of the first four anniversaries of September 4, 2024, subject to the applicable executive&rsquo;s
                                            continued employment with the Company on each such vesting date.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>PSUs</U></I>:
                                            The PSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan based on the closing price of the Company&rsquo;s
                                            Class A common stock on September 13, 2024 and will vest in equal 20% installments on each
                                            of the first five anniversaries of the achievement of one or more applicable performance
                                            metrics to be approved by the Board, subject to the applicable executive&rsquo;s continued
                                            employment with the Company on each such vesting date.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Xuefeng
Chen (&ldquo;XF Chen&rdquo;)</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Effective
November&nbsp;28, 2022 (the &ldquo;Global CEO Effective Date&rdquo;), Mr.&nbsp;XF Chen was appointed to the position of Global CEO.&nbsp;In
connection with his appointment as Global CEO, FF and FF U.S., entered into an employment agreement with Mr.&nbsp;XF Chen, dated as of
November&nbsp;27, 2022 (the &ldquo;XF Employment Agreement&rdquo;), setting forth the terms of his employment and compensation. Pursuant
to such employment agreement and contingent on continued service as Global CEO, Mr.&nbsp;XF Chen was entitled to a base salary of $900,000
and was eligible for an annual performance-based&nbsp;bonus of up to $600,000 under the FF&rsquo;s bonus plan beginning in 2023. Mr.&nbsp;XF
Chen also received a cash signing and retention bonus of $500,000, subject to repayment (i)&nbsp;in full within 15&nbsp;business days
of termination of Mr.&nbsp;XF Chen for &ldquo;Cause&rdquo; (as defined in the employment agreement), or (ii)&nbsp;on a pro-rated&nbsp;basis,
within 15&nbsp;days, if Mr.&nbsp;XF Chen either resigns or is terminated without Cause within 36&nbsp;months of the Global CEO Effective
Date. In addition, Mr.&nbsp;XF Chen was eligible to participate in the 2021 Plan. Subject to the terms of the 2021 Plan, Mr.&nbsp;XF
Chen has received $250,000 in grant date fair value of restricted stock units (&ldquo;RSUs&rdquo;). Additionally, in accordance to the
terms of the 2021 Plan and subject to approval by the Board, Mr.&nbsp;XF Chen (i)&nbsp;received, as of the first anniversary of the Global
CEO Effective Date, $300,000 in grant date fair value of RSUs, and (ii)&nbsp;would receive (A)&nbsp;as of the second anniversary of the
Global CEO Effective Date, $400,000 in grant date fair value of RSUs, (B)&nbsp;as of the third anniversary of the Global CEO Effective
Date, $450,000 in grant date fair value of RSUs, and (C)&nbsp;as of the fourth anniversary of the Global CEO Effective Date, $600,000
in grant date fair value of RSUs. Each RSU grant would have vested in equal 25% increments on each of the first four anniversaries of
the applicable grant date, provided Mr.&nbsp;XF Chen remained employed with the Company on each such vesting date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Subject
to approval by the Board and the terms of the 2021 Plan, Mr.&nbsp;XF Chen was eligible based on continued service as Global CEO to receive
an additional number of performance-based&nbsp;restricted stock units (&ldquo;PSUs&rdquo;) having a target grant date fair value equal
to $2,000,000 if FF reached certain milestones and/or performance goals on certain dates, as specified by the Board (each a &ldquo;Milestone&rdquo;),
and would have been granted as follows: (i)&nbsp;$250,000 in value after FF achieves the first Milestone; (ii)&nbsp;$300,000 in value
after FF achieves the second Milestone; (iii)&nbsp;$400,000 in value after FF achieves the third Milestone; (iv)&nbsp;$450,000 in value
after FF achieves the fourth Milestone; and (v)&nbsp;$600,000 in value after FF achieves the fifth Milestone. If FF reached any such
Milestone, the PSUs associated with such Milestone were to be issued on the date(s)&nbsp;such Milestone was reached and were to vest
in equal one-third increments on each of the first three annual Milestone anniversary dates following the applicable grant date, provided
Mr.&nbsp;XF Chen remained employed with FF on each such vesting date. On February&nbsp;3, 2023, the Board granted Mr.&nbsp;XF Chen an
additional $650,000 of PSUs, which would have vested in equal one-fourth&nbsp;increments on each of the first four annual Milestone anniversary
dates.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to Mr.&nbsp;XF Chen&rsquo;s employment agreement, on February&nbsp;3, 2023, Mr.&nbsp;XF Chen received an option to purchase 2,000,000&nbsp;shares
of the Class&nbsp;A Common Stock (the &ldquo;Standard Grant&rdquo;) 50% of which would have vested in equal 25% increments on each of
the first four anniversaries of the Global CEO Effective Date, and the other 50% would have commenced vesting on the fourth anniversary
of the Global CEO Effective Date, and would have vested in equal 25% increments on each of the next four anniversaries of the Global
CEO Effective Date following such date, in each case, subject to Mr.&nbsp;XF Chen&rsquo;s continued employment on each such vesting date.
Mr.&nbsp;XF Chen also received a performance-based&nbsp;option to purchase 2,000,000&nbsp;shares of Class&nbsp;A Common Stock, which
started vesting upon the Company reaching certain milestones on certain dates, as specified by the Board (each, an &ldquo;Option Milestone,&rdquo;
and such grant, the &ldquo;Milestone-Based&nbsp;Grant&rdquo;). The portion of the Milestone-Based&nbsp;Grant subject to each Option Milestone
commenced vesting on the date such Option Milestone was achieved and would vest in equal 25% increments on each of the subsequent four
anniversaries of such date. The vesting of Mr.&nbsp;XF Chen&rsquo;s first 1,000,000 of the 2,000,000 performance-based&nbsp;option to
purchase shares of Class&nbsp;A Common Stock started upon the completion of the start of production Option Milestone on March&nbsp;29,
2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
September&nbsp;16, 2023, Mr.&nbsp;XF Chen notified the Company of his decision to resign from his position as Global CEO of the Company
effective September&nbsp;29, 2023. Mr.&nbsp;XF Chen also resigned from his position as a member of the Board, effective September&nbsp;29,
2023. Effective September&nbsp;29, 2023, Mr.&nbsp;XF Chen resumed his prior position as FF China Chief Executive Officer, based in China.
In this position, Mr.&nbsp;XF Chen focused on the launch of the FF 91 2.0 Futurist Alliance in China and the next stage of developments
with the dual home markets of China and the United&nbsp;States. Mr.&nbsp;XF Chen also focused on the implementation of the Company&rsquo;s
China business development plans, including establishing FF China joint venture, accessing China automotive market, integrating the China
supply chain, and ongoing costs reductions. In connection with his resignation as Global Chief Executive Officer, his employment agreement
was modified to provide for a base salary of $750,000 and eligibility for an annual performance-based&nbsp;bonus of up to $450,000 under
the Company&rsquo;s bonus plan. Mr.&nbsp;XF Chen&rsquo;s total annual cash target was reduced 20% to $1,200,000. All other compensation
terms set forth in his employment agreement remained unchanged.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;XF
Chen voluntarily terminated his employment with the Company in March&nbsp;2024 and did not receive any severance and all of his then-unvested&nbsp;awards
were forfeited.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Yun
Han</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with Ms. Han&rsquo;s appointment as Chief Accounting Officer and Interim Chief Financial Officer in October&nbsp;2022, the
Company entered into an offer letter with Ms. Yun Han, pursuant to which Ms. Han was entitled to receive an annual base salary of $400,000
and a one-time&nbsp;signing and retention bonus consisting of $200,000 in cash (the &ldquo;Cash Signing and Retention Bonus&rdquo;) and
RSUs having a grant date fair value of $200,000, which fully vested 30&nbsp;days after Ms. Yun Han&rsquo;s onboarding at the Company
(the &ldquo;Equity Signing and Retention Bonus&rdquo; and together with the Cash Signing and Retention Bonus, the &ldquo;Signing and
Retention Bonus&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Ms.
Han was eligible to receive a discretionary annual performance bonus of up to $240,000. Subject to the terms of the 2021 Plan, Ms. Han
received as of her start date with the Company, $300,000 in grant date fair value of RSUs. Additionally, Ms. Han received or would have
received (i)&nbsp;as of her first annual work anniversary with the Company, $400,000 in grant date fair value of RSUs, (ii)&nbsp;as of
her second annual work anniversary with the Company, $550,000 in grant date fair value of RSUs, and (iii)as of her third annual work
anniversary with the Company, $750,000 in grant date fair value of RSUs. Each RSU grant would vest in equal 25% increments on each of
the first four anniversaries of the applicable grant date, provided Ms. Han remained employed with the Company on each such vesting date.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Subject
to approval by the Board and the terms of the 2021 Plan, Ms. Han would be eligible to receive an additional number of PSUs having a target
value equal to $2,000,000 if the Company and Ms. Han reach certain milestones and/or performance goals on certain dates as specified
by the Board. The first tranche of such PSUs were granted to Ms. Han as of her start date and had a grant date fair value of $300,000
and would have vested on the first three anniversaries of the start of production of the Company&rsquo;s FF 91 model.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
July&nbsp;5, 2023, Ms. Han notified the Company of her decision to resign from her positions as Interim Chief Financial Officer, principal
financial officer and principal accounting officer effective immediately. At that time, Ms. Han continued her role as Chief Accounting
Officer of the Company. In February&nbsp;2024, Ms. Han resigned from the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Chui
Tin Mok</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Mok
entered into an offer letter with FF U.S., dated October&nbsp;10, 2018, that provides for his employment as FF&rsquo;s Global UP2U EVP.&nbsp;The
offer letter provides for Mr.&nbsp;Mok to receive an annual base salary of $500,000. The agreement also provides that Mr.&nbsp;Mok will
be paid a signing and retention bonus of $1,000,000, which vests over 60&nbsp;months through October&nbsp;2023, and that he is entitled
to receive a discretionary annual performance bonus (with a target amount of $300,000). Mr.&nbsp;Mok is also entitled to participate
in FF U.S.&rsquo;s health insurance, 401(k)&nbsp;plan, paid time off and paid holidays.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Yueting
Jia</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Jia
entered into an offer letter with Faraday&amp;Future Inc. in March&nbsp;2021 that provides for his employment as Founder and Chief Product
and User Ecosystem. The offer letter provides for Mr.&nbsp;Jia to receive an annual base salary of $600,000 and eligibility to receive
an annual performance bonus of up to $350,000. Mr.&nbsp;Jia is also entitled to participate in FF U.S.&rsquo;s health insurance, 401(k)&nbsp;plan,
paid time off and paid holidays.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">On
September 4, 2024, the Board, upon the recommendation of the Compensation Committee of the Board, approved the following changes to the
compensatory arrangements of Mr. Jia:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
                                            annual base salary of $680,000</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
                                            annual discretionary target bonus of $816,000</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
                                            one-time recognition bonus of $500,000</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
                                            annual grant of time-based RSUs having a grant date fair value equal to $2.04 million</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">An
                                            annual grant of PSUs having a target grant date fair value equal to $2.04 million</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Annual
                                            Base Salary</U></I>:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Beginning
    September 2024, Mr. Jia will initially be paid a pro-rated annual base salary of $612,000 (for so long as $340,000 (pro-rated) of
    such amount is used to purchase shares of the Company&rsquo;s Class A common stock as described below). Mr. Jia&rsquo;s full annual
    base salary as approved by the Board will become effective upon such date that the Company restores in full the base salaries of
    all employees of the Company.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9675;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In furtherance
    of the above, Mr. Jia has notified the Company that he intends to use a portion of his base salary (equal to approximately 56% of
    his initial pro-rated $612,000 base salary for Mr. Jia, in each case after-tax) to purchase shares of the Company&rsquo;s Class A
    common stock pursuant to the previously disclosed Salary Deduction and Stock Purchase Agreements over the three-month period of September
    through November 2024. Further, Mr. Jia has informed the Company that, beginning in December 2024, he currently intends to continue
    to use the same portion of his initial pro-rated annual base salary described in the prior sentence to purchase shares of the Company&rsquo;s
    Class A common stock until such time that the Company restores in full the base salaries of all employees of the Company.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>Recognition
                                            Bonus</U></I>: The one-time recognition bonus will be payable: (i) 25% on September 30, 2024,
                                            (ii) 25% on October 31, 2024, and (iii) 50% on the earlier of: (x) September 30, 2025 or
                                            (y) the date upon which the Company closes a future round of financing in an amount not less
                                            than $30 million (not including the Company&rsquo;s recently disclosed financing). In the
                                            event that Mr. Jia voluntarily resigns or is terminated for cause (as customarily defined)
                                            prior to the four-year anniversary of the date of such executive&rsquo;s appointment to his
                                            current role, then the Company will be entitled to claw back either a pro rata portion (in
                                            the event of a voluntary resignation) or all amounts paid (in the event of a termination
                                            for cause) to such executive for such recognition bonus.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>RSUs</U></I>:
                                            The RSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan) based on the closing price of the Company&rsquo;s
                                            Class A common stock on September 13, 2024 and will vest in equal 25% increments on each
                                            of the first four anniversaries of September 4, 2024, subject to the applicable executive&rsquo;s
                                            continued employment with the Company on each such vesting date.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I><U>PSUs</U></I>:
                                            The PSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan based on the closing price of the Company&rsquo;s
                                            Class A common stock on September 13, 2024 and will vest in equal 20% installments on each
                                            of the first five anniversaries of the achievement of one or more applicable performance
                                            metrics to be approved by the Board, subject to the applicable executive&rsquo;s continued
                                            employment with the Company on each such vesting date.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Outstanding
Equity Awards at 2023 Fiscal Year-End</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>FF
Equity Awards:</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
table below sets forth certain information concerning outstanding stock options to purchase Class&nbsp;A Common Stock of FF and RSUs
and PSUs that were unvested as of December&nbsp;31, 2023. The numbers of shares and option exercise prices give effect to both the 1-for-80&nbsp;reverse
stock split effective August 28,&nbsp;2023, the 1-for-3&nbsp;reverse stock split effective February&nbsp;29, 2024, and 1-for-40 reverse
stock split effective August 16, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="14" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Option
    Awards</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="18" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock
    Awards</B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-left: 0.125in; text-indent: -0.125in; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date
    of<BR> Grant</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number
    of<BR> Securities<BR> Underlying<BR> Unexercised<BR> Options&nbsp;(#)<BR> Exercisable</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number
    of<BR> Securities<BR> Underlying<BR> Unexercised<BR> Options&nbsp;(#)<BR> Unexercisable</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equity<BR>
    Incentive<BR> Plan<BR> Awards:<BR> Number of<BR> Securities<BR> Underlying<BR> Unexercised<BR> Unearned<BR> Options<BR> (#)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Option<BR>
    Exercise<BR> Price<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Option<BR>
    Expiration<BR> Date</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number<BR>
    of<BR> shares<BR> or units<BR> of stock<BR> that<BR> have not<BR> vested<BR> (#)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Market<BR>
    value of<BR> shares<BR> or units<BR> of stock<BR> that<BR> have<BR> not<BR> vested<BR> ($)<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equity<BR>
    incentive<BR> plan<BR> awards:<BR> number<BR> of<BR> unearned<BR> shares,<BR> units or<BR> other<BR> rights<BR> that<BR> have not<BR>
    vested (#)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equity
    incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested<BR> ($)<SUP>(1)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left; width: 12%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Matthias
    Aydt</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2/1/2018</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">10</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">0</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&mdash;</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">24,458.60</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2/1/2028</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 0.5%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 7%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 0.5%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">5/30/2019</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">23</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">24,470.83</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">5/30/2029</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7/26/2020</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">21</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">0</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">23,099.79</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7/26/2030</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">4/28/2021</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">16</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">76,297.24</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">4/28/2031</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">11/23/2022</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">3</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,544</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">11/23/2032</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Xuefeng
    Chen</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">1/20/2021</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">49</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">66</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">26,564.76</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">1/20/2031</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7/4/2021</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">45</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">30</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">106,802.54</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7/4/2031</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2/3/2023</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">34</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">280</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">10,368</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">2/3/2033</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">18</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(6)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">499</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">63</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(8)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,746</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yun
    Han</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">10/25/2022</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">94</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(7)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,606</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chui
    Tin Mok</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">5/30/2019</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">82</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">24,480</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">5/30/2029</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7/26/2020</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">25</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">23,099.79</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">7/26/2030</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">11/23/2022</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,544</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">11/23/2032</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yueting
    Jia</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">12/15/2022</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">60</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">59</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(5)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,544</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">12/15/2032</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>&nbsp;</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            dollar amounts shown are determined by multiplying the number of shares or units reported
                                            by the closing price of our common stock of $27.72 on December&nbsp;29, 2023, which was the
                                            last&nbsp;trading day in 2023.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
                                            option is scheduled to vest as follows (subject in each case to the named executive officer&rsquo;s
                                            continued employment through the applicable vesting date):</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 16&nbsp;shares, the vesting schedule is as follows:</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 8&nbsp;shares, in 8 equal monthly installments on the 29<SUP>th</SUP>&nbsp;day
                                            of each month through September&nbsp;29, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 3&nbsp;shares, in 3 equal monthly installments beginning on March&nbsp;29, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 3&nbsp;shares, in 3 equal monthly installments beginning on March&nbsp;29, 2025.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 2&nbsp;shares, in 2 equal monthly installments beginning on March&nbsp;29, 2026.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 2&nbsp;shares, in 2 equal annual installment on the 29<SUP>th</SUP>&nbsp;day of
                                            March each year through March&nbsp;29, 2025.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<!-- Field: Page; Sequence: 158; Value: 1 -->
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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
                                            option was scheduled to vest as follows (subject in each case to the named executive officer&rsquo;s
                                            continued employment through the applicable vesting date):</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 66&nbsp;shares, the vesting schedule was as follows:</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 27&nbsp;shares, in 27 equal monthly installments on the 15<SUP>th</SUP>&nbsp;day
                                            of each month through March&nbsp;15, 2026.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 39&nbsp;shares, in 39 equal monthly installments on the 29<SUP>th</SUP>&nbsp;day
                                            of each month through March&nbsp;29, 2027.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 30&nbsp;shares, the vesting schedule was as follows:</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 10&nbsp;shares, in 10 equal monthly installments on the 21<SUP>st</SUP>&nbsp;day
                                            of each month through October 21, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 5&nbsp;shares, in 5 equal monthly installments on the 21<SUP>st</SUP>&nbsp;day
                                            of each month through May&nbsp;21, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 15&nbsp;shares, in 15 equal monthly installments on the 21<SUP>st</SUP>&nbsp;day
                                            of each month through October&nbsp;21, 2025.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 280&nbsp;shares, the vesting schedule was as follows:</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 175&nbsp;shares, in 7 equal annual installments on the 28<SUP>th</SUP>&nbsp;day
                                            of November each year through November&nbsp;22, 2030.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 105&nbsp;shares, in 4 equal annual installments on the 29<SUP>th</SUP>&nbsp;day
                                            of March each year through March&nbsp;29, 2027.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.
Chen resigned from the Company in March&nbsp;2024 and each of his then-unvested&nbsp;awards were forfeited.</FONT></P>



<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
                                            option was scheduled to vest as follows (subject in each case to the named executive officer&rsquo;s
                                            continued employment through the applicable vesting date):</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 10&nbsp;shares, in 5 equal monthly installments on the eighth&nbsp;day of each
                                            month through May&nbsp;8, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 2&nbsp;shares,, in 2 equal monthly installments on the 26<SUP>th</SUP>&nbsp;day
                                            of each month through February&nbsp;26, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">With
                                            respect to 1&nbsp;shares, on March&nbsp;29, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
                                            option is scheduled to vest as follows (subject to the named executive officer&rsquo;s continued
                                            employment through the applicable vesting date): in 4 equal annual installments on the 29<SUP>th</SUP>&nbsp;day
                                            of March each year through March&nbsp;29, 2027.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
                                            RSUs were scheduled to vest in equal 25% increments on each of the first four anniversaries
                                            of the applicable grant date, provided Mr.&nbsp;Chen remained employed with the Company on
                                            each such vesting date.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="margin-left: 0.25in; text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.
Chen resigned from the Company in March&nbsp;2024 and each of his then-unvested&nbsp;awards were forfeited.</FONT></P>



<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(7)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
                                            RSUs were scheduled to vest in equal 25% increments on each of the first four anniversaries
                                            of the applicable grant date, provided Ms. Han remained employed with the Company on each
                                            such vesting date. Ms. Han resigned from the Company in February&nbsp;2024 and each of her
                                            then-unvested&nbsp;awards were forfeited.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(8)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">These
                                            PSUs were scheduled to vest in equal 25% increments on each of the first four anniversaries
                                            of the start of delivery of the Company&rsquo;s FF 91 model, provided Mr.&nbsp;Chen remained
                                            employed with the Company on each such vesting date.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt -0.25in; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.
Chen resigned from the Company in March&nbsp;2024 and each of his then-unvested&nbsp;awards were forfeited.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>FF
Global Equity Awards:</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain
members of Company management and other Company employees are equity owners of FF Global, which beneficially owned less than 1% of the
voting power of FF&rsquo;s fully diluted Common Stock as of June&nbsp;21, 2024. As of December&nbsp;31, 2023, Mr.&nbsp;Mok was the only
named executive officer who held one of these awards. His award was granted on June&nbsp;25, 2019, covers 82 equity units of FF Global
with a purchase price of $4,800 per unit, and has a ten-year&nbsp;term. The award is fully vested, but if the executive does not pay
an installment of the purchase price when due, the award will be forfeited to FF Global without consideration.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Description
of Retirement Plans</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
maintains a defined contribution 401(k)&nbsp;plan for the benefit of its full-time&nbsp;employees based in the United&nbsp;States. This
401(k)&nbsp;plan is intended to qualify under Section&nbsp;401 of the Internal Revenue Code of 1986, as amended, so that employee contributions
and income earned on such contributions are not taxable to employees until withdrawn. Employees may elect to defer a portion of their
eligible compensation, not to exceed the statutorily prescribed annual limit, in the form of elective deferral contributions to this
401(k)&nbsp;plan. This 401(k)&nbsp;plan also has a &ldquo;catch-up&nbsp;contribution&rdquo; feature for employees aged 50 or older (including
those who qualify as &ldquo;highly compensated&rdquo; employees) who can defer amounts over the statutory limit that applies to all other
employees. Currently, FF does not make any discretionary or matching employer contributions to the 401(k)&nbsp;plan. Participants are
always vested in their contributions to the 401(k)&nbsp;plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Director
Compensation Table&nbsp;&mdash;&nbsp;Fiscal 2023</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following table sets forth certain information concerning compensation paid to each of FF&rsquo;s non-employee&nbsp;directors during
2023. Mr.&nbsp;Aydt, Mr.&nbsp;Mok and Mr.&nbsp;Xuefeng Chen served in 2023 as directors and employees of FF; however, they did not receive
any additional compensation for their service on the Board during 2023. Please see the &ldquo;&mdash;&nbsp;<I>Summary Compensation Table&nbsp;&mdash;&nbsp;Fiscal
2023</I>&rdquo; for the compensation received by Mr.&nbsp;Chen and Mr.&nbsp;Aydt during 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Name</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Fees
    Earned or<BR> Paid in Cash<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Stock<BR>
    Awards<BR> ($)<SUP>(3)</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Option<BR>
    Awards<BR> ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total<BR>
    ($)</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Chad
    Chen</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">144,267</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">136,147</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">280,414</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Li
    Han</B><SUP>(1)(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">27,603</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">74,000</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">101,603</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Adam
    (Xin) He</B><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">257,708</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">90,253</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">347,961</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Lev
    Peker</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,712</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">41,918</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">56,630</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Jie
    Sheng</B><SUP>(1)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">134,606</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">114,476</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">249,082</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-indent: -10pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Ke
    Sun</B><SUP>(2)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">78,013</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">50,735</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">128,748</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0pt; margin-bottom: 0pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;Peker
                                            and Ms. Han were appointed to the Board effective August&nbsp;4, 2023 and March&nbsp;13,
                                            2023, respectively.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mr.&nbsp;He
                                            resigned from the Board effective July&nbsp;31, 2023. Ms. Sun resigned from the Board effective
                                            October&nbsp;10, 2023. Ms. Han resigned from the Board effective June&nbsp;9, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            amounts reported in this column reflect the grant date fair value of time-based&nbsp;RSUs
                                            granted to the director during 2023 and are accounted for in accordance with FASB ASC Topic&nbsp;718.
                                            For the assumptions used to value these awards, see Note&nbsp;12 (Stock-Based&nbsp;Compensation)
                                            in the Notes to Consolidated Financial Statements in the 2023 Form&nbsp;10-K. As of December&nbsp;31,
                                            2023, the non-employee&nbsp;directors held the following number of outstanding and unvested
                                            RSUs: Mr.&nbsp;Chen &mdash; 363; Ms. Han &mdash; 363; Mr.&nbsp;Peker &mdash;&nbsp;254; and
                                            Mr.&nbsp;Sheng&nbsp;&mdash;&nbsp;363.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Non-Employee
Director Compensation Policy</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following director compensation program relates to FF&rsquo;s non-employee&nbsp;directors and accordingly, Messrs. Xuefeng Chen did not,
and Mr.&nbsp;Aydt and Mr.&nbsp;Mok do not, receive compensation for their services as directors. The FF non-employee&nbsp;director compensation
program provides for the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Annual
                                            Board Cash Retainer:</I>&nbsp;$50,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Annual
                                            Lead Independent Director Cash Retainer:</I>&nbsp;$20,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Annual
                                            Committee Member Cash Retainers:</I></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Audit
                                            Committee: $10,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Compensation
                                            Committee: $6,250</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nominating
                                            and Corporate Governance Committee: $5,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Finance&nbsp;&amp;
                                            Investments Committee: $5,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Annual
                                            Executive Chairperson and Committee Chair Cash Premiums:</I></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Executive
                                            Chairperson: $30,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Audit
                                            Committee: $15,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Compensation
                                            Committee: $10,000</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nominating
                                            and Corporate Governance Committee: $7,500</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Finance&nbsp;&amp;
                                            Investments Committee: $7,500</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Annual
                                            RSU Award:&nbsp;$150,000</I></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>&#9679;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Compensation
                                            for Additional Time:</I>&nbsp;$1,500 per Board or Board committee meeting (excepting meetings
                                            of special committees of the Board) for every meeting above 15 per year (measured from August&nbsp;1
                                            to July&nbsp;31 of each year), up to a maximum of $20,000 for each calendar month.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>EQUITY
COMPENSATION PLAN INFORMATION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
following table sets forth information as of October 8, 2024 regarding the number of shares of our Common Stock that may be issued under
the Company&rsquo;s equity compensation plans. The share numbers and the exercise price of stock options reported in this section have
been adjusted to reflect the reverse stock splits effected on August&nbsp;25, 2023, February&nbsp;29, 2024 and August 2024. The Company
maintains three equity compensation plans: the 2021 Plan, the Smart King Ltd. Equity Incentive Plan (the &ldquo;Smart King EIP&rdquo;),
and the Smart King Ltd. Special Talent Incentive Plan (the &ldquo;Smart King STIP&rdquo;). The 2021 Plan was approved by the stockholders.
The Smart King EIP and Smart King STIP plans existed prior to the Company going public and therefore were not approved by the security
holders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Plan
    Category</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number<BR>
    of Securities<BR> to be Issued<BR> upon Exercise<BR> of&nbsp;Outstanding<BR> Options,<BR> Warrants<BR> and Rights</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Weighted<BR>
    Average<BR> Exercise Price<BR> of&nbsp;Outstanding<BR> Options,<BR> Warrants<BR> and Rights</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number<BR>
    of Securities<BR> Remaining<BR> Available<BR> for Future<BR> Issuance Under<BR> Equity<BR> Compensation<BR> Plans (excluding<BR>
    securities&nbsp;reflected<BR> in column (a))</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: center; border-bottom: Black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(c)</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equity Compensation
    Plans Approved By Security Holders:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; width: 64%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Faraday
    Future Intelligent Electric Inc. 2021 Incentive Plan</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,518,452</FONT></TD><TD STYLE="padding-bottom: 2.5pt; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(1)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">20,939.60</FONT></TD><TD STYLE="padding-bottom: 2.5pt; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(2)</SUP></FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">760,056</FONT></TD><TD STYLE="padding-bottom: 2.5pt; width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(3)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equity
    Compensation Plans Not Approved by Security Holders:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Smart
    King Ltd. Equity Incentive Plan</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,970</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">26,210.02</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(5)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.25in; text-indent: -0.125in; text-align: left; padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Smart
    King Ltd. Special Talent Incentive Plan</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">487</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">52,893</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(4)</SUP></FONT></TD><TD STYLE="padding-bottom: 1.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><SUP>(5)</SUP></FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,520,909</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">29,951.13</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">760,056</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Of
                                            the shares reported in the table, 1,518,030&nbsp;shares were subject to awards of restricted
                                            stock units, 422&nbsp;shares were subject to outstanding stock options, both under the 2021
                                            Plan.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Represents
                                            the weighted-average&nbsp;exercise price of options granted under the 2021 Plan.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">All
                                            of the securities reported in this column were then available for issuance under the 2021
                                            Plan. Shares available for issuance under the 2021 Plan generally may be used for any type
                                            of award authorized under that plan including stock options, stock appreciation rights, restricted
                                            stock, restricted stock units and performance shares.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
                                            weighted-average&nbsp;exercise price is calculated without taking into account outstanding
                                            awards of stock units.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
                                            are no remaining shares available for issuance under the Smart King EIP and the Smart King
                                            STIP.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a_012"></A>CERTAIN
RELATIONSHIPS AND RELATED PERSON TRANSACTIONS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition to the executive officer and director compensation arrangements discussed in the section titled &ldquo;Executive and Director
Compensation&rdquo; above, described below are the transactions since January 1, 2021 to which the Company has been a participant, in
which the amount involved in the transaction exceeds or will exceed $120,000 and in which any of the Company&rsquo;s directors, executive
officers, director nominees or holders of more than 5% of the Company&rsquo;s capital stock, or any immediate family member of, or person
sharing the household with, any of these individuals, had or will have a direct or indirect material interest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Certain
Relationships and Related Person Transactions&thinsp;&mdash;&thinsp;the Company&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Amended
and Restated Registration Rights Agreement</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the consummation of the Business Combination on July 21, 2021, Property Solutions Acquisition Sponsor, LLC (the &ldquo;PSAC
Sponsor&rdquo;), EarlyBirdCapital, Inc., FF Top and Season Smart Ltd. (&ldquo;Season Smart&rdquo;) (collectively, the &ldquo;A&amp;R
RRA Parties&rdquo;) entered into the Amended and Restated Registration Rights Agreement (the &ldquo;A&amp;R RRA&rdquo;) with the Company,
which became effective upon the consummation of the Business Combination. In accordance with the A&amp;R RRA, the A&amp;R RRA Parties
are entitled to have registered, in certain circumstances, the resale of shares of Class A Common Stock (and the shares of Class A Common
Stock underlying outstanding Company warrants) held by or issued to them at the closing of the Business Combination, subject to the terms
and conditions set forth therein. Within 45 days of the closing of the Business Combination, the Company was obligated to file a shelf
registration statement to register the resale of certain securities and the Company was required to use its reasonable best efforts to
have such shelf registration statement declared effective as soon as practicable after the filing thereof and no later than the earlier
of (x) the 90th calendar day following the filing date if the SEC notifies the Company that it will &ldquo;review&rdquo; the shelf registration
statement and (y) the tenth (10th) business day after the date the Company is notified in writing by the SEC that such shelf registration
statement will not be &ldquo;reviewed&rdquo; or will not be subject to further review. Additionally, at any time and from time to time
after one year (or 180 days with respect to Season Smart Ltd.) after the closing of the Business Combination, the A&amp;R RRA Parties
representing a majority-in-interest of the total number of shares of Class A Common Stock issued and outstanding on a fully diluted basis
held by the A&amp;R RRA Parties (or Season Smart) may make a written demand for registration for resale under the Securities Act of all
or part of the shares of Class A Common Stock (and the shares of Class A Common Stock underlying outstanding Company warrants) held by
or issued to them at the closing of the Business Combination in an underwritten offering involving gross proceeds of no less than $50,000,000.
The Company will not be obligated to effect more than an aggregate of two underwritten offerings per year (or three underwritten offerings
per year demanded by Season Smart) and, with respect to Season Smart, such shares of Class A Common Stock do not exceed more than 10%
of the outstanding shares of the Company. The A&amp;R RRA Parties will also be entitled to participate in certain registered offerings
by the Company, subject to certain limitations and restrictions. The Company will be required to pay certain expenses incurred in connection
with the exercise of the registration rights under the A&amp;R RRA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Indemnification
Agreements</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the closing of the Business Combination, the Company entered into indemnification agreements with its directors and executive
officers. Those indemnification agreements and the Bylaws require the Company to indemnify all directors and officers to the fullest
extent permitted by Delaware law against any and all expenses, judgments, liabilities, fines, penalties, and amounts paid in settlement
of any claims. The indemnification agreements also provide for the advancement or payment of all expenses to the indemnitee and for reimbursement
to the Company if it is found that such indemnitee is not entitled to such indemnification under applicable law.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Amended
and Restated Shareholder Agreement</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the Business Combination, the Company and FF Top entered into the Existing Shareholder Agreement pursuant to which, among
other things:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            Company and FF Top agreed on the initial composition of the Board;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
                                            Top has certain rights to nominate a number of directors to the Board;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
                                            Top has certain rights to remove and replace its director designees; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">FF
                                            Top also has the right for its nominees to serve on each committee of the Board proportionate
                                            to the number of nominees it has on the Board, subject to compliance with applicable law
                                            and stock exchange listing rules.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the Existing Shareholder Agreement, the Company and FF Top also agreed:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<FONT STYLE="color: #212529"><BR></FONT></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">to
                                            take all reasonably necessary action (subject to applicable Board fiduciary duties) to cause
                                            the initial directors to be nominated for another one-year term at the Company&rsquo;s first
                                            annual general meeting following the closing of the Business Combination; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">that
                                            Ms. Susan Swenson, Mr. Edwin Goh, Mr. Brian Krolicki and Mr. Lee Liu shall be deemed to be
                                            FF Top&rsquo;s designees for the Company&rsquo;s first and second annual general meetings
                                            following the closing of the Business Combination.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
September 23, 2022, the Company entered into the Heads of Agreement, and, on January 13, 2023, the Company entered into the Amended and
Restated Shareholder Agreement, pursuant to which the Company and FF Top agreed to the following matters:<FONT STYLE="color: #212529"><BR>
<BR></FONT></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #212529">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            Top will have the right to nominate for election to the Board four FF Top Designees until
                                            the first date on which FF Top has ceased to beneficially own at least 88,889 shares of Common
                                            Stock for at least 365 consecutive days, with such amount subject to adjustment in connection
                                            with any stock split, reverse stock split or other similar corporate action after the date
                                            of the Amended Shareholder Agreement (the &ldquo;Minimum Share Amount&rdquo;). Following
                                            the termination of FF Top&rsquo;s right to nominate four FF Top Designees, FF Top shall continue
                                            to have the right to nominate a number of FF Top Designees not less than the number equal
                                            to the total number of directors on the Board, multiplied by the aggregate voting power of
                                            the shares of Common Stock and other securities of the Company generally entitled to vote
                                            in the election of directors of the Company beneficially owned by FF Top and its affiliates,
                                            divided by the total voting power of the then-outstanding shares of Common Stock issued as
                                            of the record date for any meeting of stockholders of the Company at which directors are
                                            to be elected, rounding up to the next whole director. The Amended and Restated Shareholder
                                            Agreement also requires the Company to take all necessary action to cause to be appointed
                                            to any committee of the Board a number of FF Top Designees that corresponds to the proportion
                                            that the number of directors FF Top has the right to designate to the Board bears to the
                                            total number of directors on the Board, to the extent such FF Top Designees are permitted
                                            to serve on such committees under the applicable rules and regulations of the SEC and applicable
                                            listing rules. The FF Top Designees are required to include two independent directors for
                                            so long as FF Top is entitled to nominate four FF Top Designees, and the Company is at all
                                            times required to cause the Board to include a sufficient number of independent directors
                                            who are not FF Top Designees to comply with applicable listing standards, unless and until
                                            the Company becomes a &ldquo;controlled company&rdquo; under relevant listing exchange rules.
                                            FF Top shall have the right to fill any vacancies created on the Board at any time by the
                                            death, disability, retirement, removal, failure of being elected or resignation of any FF
                                            Top Designee. Further, FF Top has the right at any time, and from time to time, to remove
                                            any FF Top Designee, and FF Top has the exclusive right to nominate a replacement nominee
                                            to fill any vacancy so created by such removal or resignation of such FF Top Designee. The
                                            Company shall use its reasonable best efforts to take or cause to be taken, to the fullest
                                            extent permitted by law, all necessary action to fill such vacancies or effect such removals
                                            in accordance with the Amended and Restated Shareholder Agreement. The appointment or nomination
                                            for election of designees of FF Top (other than FF Top Designees for the Annual Meeting,
                                            the appointment of whom shall be governed by the Heads of Agreement, as amended by the Amended
                                            and Restated Shareholder Agreement) will be subject to the reasonable verification and/or
                                            approval by the Nominating and Corporate Governance Committee of the Board based on the criteria
                                            set forth in the Amended and Restated Shareholder Agreement. If any FF Top Designee fails
                                            to be elected at any meeting of the Company&rsquo;s stockholders, then, upon FF Top&rsquo;s
                                            request in writing, the Company shall promptly expand the size of the Board by a number of
                                            seats equal to the number of non-elected FF Top Designees, and FF Top shall have the exclusive
                                            right to fill the vacancy or vacancies on the Board created by such expansion (provided the
                                            individual or individuals who shall fill such vacancy or vacancies shall not be the same
                                            FF Top Designees who failed to get elected, without prejudice to FF Top&rsquo;s right to
                                            re-designate the non-elected designees as FF Top Designees in any other circumstance), and
                                            such new FF Top Designees shall be appointed to the Board by the Board promptly following
                                            their having been approved or deemed approved in accordance with the relevant criteria and
                                            procedures set forth in the Amended and Restated Shareholder Agreement. Immediately prior
                                            to (and effective as of) the first meeting of shareholders following such expansion of the
                                            Board, the Board shall cause the size of the Board to be decreased back to seven. This Board
                                            expansion right shall cease to have any further force or effect at such time as the voting
                                            power of each share of Class B Common Stock, by operation of the Charter, shall be twenty
                                            votes per share.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            size of the Board may not be increased without FF Top&rsquo;s prior written consent, which
                                            consent shall not be unreasonably withheld, conditioned or delayed (with it being reasonable
                                            for FF Top to withhold its consent to any change in the size of the Board that would result
                                            in a decrease in the proportion or percentage of the members of the Board who are designees
                                            of FF Top).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until
                                            the Company achieves an equity market capitalization of $3 billion, the Company agrees not
                                            to elect to be treated as a &ldquo;controlled company&rdquo; as defined under the rules of
                                            the securities exchange on which the Company is listed.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            Company agrees to cooperate with any written requests by FF Top relating to any such pledge
                                            of any of the shares of Common Stock of the Company owned by FF Top, or hypothecation or
                                            grant thereof, including delivery of letter agreements to lenders in form and substance reasonably
                                            satisfactory to such lenders (which may include agreements by the Company in respect of the
                                            exercise of remedies by such lenders) and, subject to applicable law (as defined in the Amended
                                            Shareholder Agreement), instructing the transfer agent to transfer any such shares of Common
                                            Stock subject to the pledge, hypothecation or grant into the facilities of The Depository
                                            Trust Company without restricted legends.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            Top has informed the Company that FF Top expects the following proposals will be submitted
                                            to the Company&rsquo;s stockholders for approval. Upon FF Top&rsquo;s written request (an
                                            &ldquo;Amendment Request&rdquo;), the Company shall submit for approval by the Company&rsquo;s
                                            stockholders, at each annual and special meeting of the Company&rsquo;s stockholders held
                                            during a reasonable number of years (which shall not be, in any event, fewer than seven years)
                                            following the date of the Amendment Request, binding proposals to amend the Charter to incorporate
                                            each of the amendments described below (the &ldquo;Charter Amendments&rdquo;), and to recommend
                                            in favor of such Charter Amendments at each such meeting and solicit proxies in favor of
                                            each such Charter Amendment at each such meeting using a well-regarded proxy solicitation
                                            firm. Each Charter Amendment is required to be in such form as FF Top, acting reasonably,
                                            shall approve:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amend
                                            Section 4.5(a) of the Charter (and any other applicable provisions thereof, if any) to provide
                                            that (i) the voting power of the Company&rsquo;s Class B Common Stock shall be ten votes
                                            per share with effect immediately upon the Company&rsquo;s stockholders&rsquo; approval of
                                            such amendment and (ii) the voting power of the Company&rsquo;s Class B Common Stock shall
                                            increase from ten votes per share to twenty votes per share immediately following the Company
                                            achieving a Qualifying Equity Market Capitalization (substituting $3.0 billion for $20.0
                                            billion in the definition of &ldquo;Qualifying Equity Market Capitalization&rdquo;).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amend
                                            Section 6.1 of the Charter (and any other applicable provisions thereof, if any) to provide
                                            that FF Top shall have the right to nominate, remove and/or replace FF Top Designees whom
                                            it is entitled to nominate pursuant to the Amended Shareholder Agreement by written consent,
                                            with such conforming changes to the certificate of incorporation as are required to give
                                            legal effect to the right to act by written consent under Delaware law.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further
                                            amend Section 6.1 of the Charter (and any other applicable provisions thereof, if any) to
                                            provide that for so long as FF Top continues to hold at least 15,168 shares of Common Stock
                                            (as such number may be adjusted due to any stock split, reverse stock split or other similar
                                            corporate action), the Company&rsquo;s stockholders shall be entitled to act by written consent
                                            by the signature of (a) the requisite number of stockholders required to pass such proposal
                                            at a meeting at which all stockholders entitled to vote on such proposal are present together
                                            with (b) FF Top.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further
                                            amend the Charter to provide that none of the rights afforded to FF Top in the Charter or
                                            in the Bylaws shall be amended without (a) unanimous approval of the Board and (b) the approval
                                            by (i) holders of two-thirds of all of the Company&rsquo;s issued and outstanding shares
                                            of Common Stock, voting together as a single class and (ii) holders of a majority of the
                                            Company&rsquo;s issued and outstanding shares of Class B Common Stock, voting together as
                                            a separate class.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If,
when FF Top first delivers an Amendment Request, the Company&rsquo;s next annual meeting is scheduled to be held more than 120 days after
the date of such request (or the Company has already mailed a definitive proxy statement with respect to the Company&rsquo;s next annual
meeting of stockholders), the Company shall promptly call a special meeting of its stockholders to consider and vote upon the Charter
Amendments, with the same recommendation and solicitation obligations of the Board described above. Promptly upon receipt of an Amendment
Request, the Company shall also, in cooperation with FF Top, make such conforming changes to the Bylaws as may reasonably be requested
by FF Top to make them consistent with the Charter Amendments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            Company has agreed not to enter into any transaction or series of related transactions that
                                            would require a stockholder vote under Nasdaq Listing Rule 5635(d) (without giving effect
                                            to Section 5635(f) thereof) without FF Top&rsquo;s prior written consent, which written consent
                                            shall not be unreasonably withheld, conditioned or delayed. Such consent right expires upon
                                            the earlier of (a) the conversion of the voting power of the Company&rsquo;s Class B Common
                                            Stock from one vote per share to ten votes per share and (b) the first date on which FF Top
                                            has ceased to beneficially own a number of shares of Common Stock at least equal to the Minimum
                                            Share Amount.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            Company has agreed that the investors under the Pre-existing SPA shall have, by operation
                                            of the Amended and Restated Shareholder Agreement and irrespective of any provision of the
                                            Pre-existing SPA to the contrary, the right to enter into any voting agreement or grant a
                                            voting proxy, at any time and on any terms, with or to FF Top with respect to any shares
                                            of Common Stock held by such investor, and that the Company shall take any and all such further
                                            action as may be necessary or desirous to give full effect to the foregoing (including without
                                            limitation, irrevocably waiving any rights that the Company may have to restrict the entry
                                            by any such persons into any such voting agreements or voting proxies pursuant to the Pre-existing
                                            SPA PA or otherwise and, solely to the extent required, amending the Pre-existing SPA). Each
                                            party to the Pre-existing SPA SA is a third-party beneficiary of, and may enforce, the foregoing
                                            provision under the Amended Shareholder Agreement; however, the Company and FF Top are permitted,
                                            acting alone without the consent of any such third-party beneficiary, to amend such provision
                                            in writing.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            Top agreed to vote all shares of Common Stock that it beneficially owns in favor of an increase
                                            in the Company&rsquo;s authorized shares of Class A Common Stock from 815 million to 1.69
                                            billion (before giving effect to the subsequent 1-for-80, 1-for-3 and 1-for-40 reverse stock
                                            splits) at the next meeting of the Company&rsquo;s stockholders held to consider such proposal
                                            (as such meeting may be adjourned or postponed). FF Top also agreed not to transfer, convert
                                            or otherwise take any action that would result in the conversion of any shares of Class B
                                            Common Stock into Class A Common Stock of the Company prior to the Company&rsquo;s receipt
                                            of stockholder approval for an increase in the number of authorized shares of Class A Common
                                            Stock in accordance with the foregoing. Such proposal was approved at a special meeting of
                                            stockholders of the Company on February 28, 2023.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF
                                            Top released and waived any and all claims it or any other &ldquo;FF Top Parties&rdquo; (i.e.,
                                            FF Top, FF Peak Holding LLC, a Delaware limited liability company, Pacific Technology Holding
                                            LLC, a Delaware limited liability company, FF Global and each of their affiliates, and their
                                            respective successors and assigns) may have had against the Company and the Company Parties
                                            (described below; such claims, the &ldquo;FF Top Claims&rdquo;) relating to matters occurring
                                            at any time after September 23, 2022 but prior to the execution of the Amended Shareholder
                                            Agreement (the &ldquo;FF Top Release&rdquo;). The FF Top Release does not (i) release any
                                            FF Top Claim or right that existed on or prior to September 23, 2022 but was not released
                                            pursuant to that certain Mutual Release, dated as of September 23, 2022, by and among the
                                            Company, FF Top, FF Global Partners LLC and the other parties thereto (the &ldquo;Prior Release&rdquo;)
                                            or (ii) release any claim or right under (or terminate) any agreement between one or more
                                            FF Top Parties on the one hand, and one or more Company Parties on the other hand (including
                                            without limitation the Amended and Restated Shareholder Agreement, the Heads of Agreement
                                            and the Prior Release).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            Company also released and waived any and all claims it or any other &ldquo;Company Parties&rdquo;
                                            (i.e., the Company and each of the Company&rsquo;s controlled affiliates, each individual
                                            currently serving as a director or on the management team of the Company or any of its controlled
                                            affiliates, and the respective successors and assigns of any of the foregoing) may have against
                                            FF Top Parties relating to any matters occurring at any time after September 23, 2022 but
                                            prior to the execution of the Amended and Restated Shareholder Agreement; provided that the
                                            Company Release does not (i) release any claim or right that existed on or prior to September
                                            23, 2022 but was not released pursuant to the Prior Release or (ii) release any claim or
                                            right under (or terminate) any agreement between one or more FF Top Parties on the one hand,
                                            and one or more Company Parties on the other hand (including without limitation the Amended
                                            and Restated Shareholder Agreement, Heads of Agreement and the Prior Release).</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF Shareholder
Lockup Agreements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Under
the Merger Agreement, as a condition to receiving Class A Common Stock after the closing of the Business Combination in respect of their
Legacy FF ordinary shares, Legacy FF&rsquo;s stockholders were required to execute lockup agreements pursuant to which such stockholders
must agree not to sell, transfer or take certain other actions with respect to such shares of Class A Common Stock for a period of 180
days after the closing of the Business Combination, subject to certain customary exceptions. Under the lock-up agreement entered into
by the Vendor Trust. certain holders of Legacy FF notes payable and related party notes payable and certain warrant holders of Legacy
FF, subject to certain limited exceptions, such parties agree that with respect to (a) 33% of the shares of Class A Common Stock received
by such Legacy FF stakeholders in connection with the closing of the Business Combination, not to sell, transfer or take certain other
actions with respect to such shares of Class A Common Stock for a period of 30 days after such closing (which expired on August 20, 2021),
(b) 33% of the shares of Class A Common Stock received by such Legacy FF stakeholders in connection with such closing (which expired on
September 19, 2021), not to sell, transfer or take certain other actions with respect to such shares of Class A Common Stock for a period
of 60 days after such closing, and (c) the remaining 33% of the shares of Class A Common Stock received by such Legacy FF stakeholders
in connection with the Business Combination, not to sell, transfer or take certain other actions with respect to such shares of Class
A Common Stock for a period of 90 days after such closing. The shares of Class A Common Stock to be issued to FF employees on account
of their reduced compensation will be subject to a vesting period of 90 days. The lockup agreements expired as of January 17, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: blue">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Sponsor Lockup
Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">Under the Merger Agreement,
as a condition to Legacy FF&rsquo;s obligation to close the Business Combination, PSAC was required to deliver to Legacy FF a lockup agreement
executed by the PSAC Sponsor pursuant to which the PSAC Sponsor agreed that (a) 50% of the shares of PSAC common stock held by the PSAC
Sponsor would not be sold, transferred or otherwise disposed of for a period ending the earlier of (i) the one year anniversary of the
closing of the Business Combination (or July 21, 2022), and (ii) the date on which the closing price of shares of PSAC common stock on
the principal securities exchange or securities market on which such shares are then traded equaled or exceeded $12.50, before giving
effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, per share for any twenty trading days within any thirty trading day period
after the closing of the Business Combination; and (b) the other 50% of the shares of PSAC common stock held by the PSAC Sponsor will
not be sold, transferred or otherwise disposed of for a period ending earlier of (i) the one year anniversary of the closing of the Business
Combination (or July 21, 2022) and (ii) the date on which PSAC completes a liquidation, merger, capital stock exchange or other similar
transaction that results in all of PSAC&rsquo;s stockholders having the right to exchange their shares for cash, securities or other property.
The lockup agreement expired on July 21, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Governance Agreement
with FF Top and FF Global</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
previously disclosed, beginning in June 2022, the Company was party to a dispute with FF Global, its then-largest stockholder, over various
terms of the Existing Shareholder Agreement, including relating to FF Global&rsquo;s right to remove its designees from the Board. On
September 23, 2022, the Company entered into the Heads of Agreement, pursuant to which, effective as of September 23, 2022, the Company
(a) increased the size of the Board from nine to ten, (b) appointed Mr. Adam (Xin) He to fill the vacancy resulting from such increase
in the size of the Board until the Annual Meeting, (c) appointed Mr. He to the Audit Committee and the Nominating and Corporate Governance
Committee of the Board and (d) agreed to not remove Mr. He from either committee prior to the Annual Meeting. Pursuant to the Heads of
Agreement, FF Top and FF Global caused all actions in the Court of Chancery of the State of Delaware, and any other forum, filed by FF
Top, FF Global and/or any of their respective controlled affiliates as of the effective date of the Heads of Agreement, naming the Company
or any of its directors or officers, to be dismissed without prejudice as of September 27, 2022. On January 13, 2023, the Company entered
into the Amended and Restated Shareholder Agreement, which amends certain terms of the Heads of Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Pursuant
to the Heads of Agreement, as amended by the Amended and Restated Shareholder Agreement, the Company, FF Global and FF Top agreed to the
following matters:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the resignation of the Company&rsquo;s Executive Chairperson, Ms. Susan Swenson, from all non-director
positions at the Company and all Board leadership and Board committee positions, upon the Company receiving $13.5 million in funding that
is immediately available for the Company&rsquo;s general use (which was satisfied upon the funding of the initial $10 million tranche
of Pre-existing SPA Notes from Senyun on October 27, 2022). It was also agreed that Ms. Swenson would not thereafter seek or accept new
non-director positions at the Company&#894;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the reinstitution of the former FF Transformation Committee, a management committee that will discuss
business matters being undertaken by the Company (the committee will not have any decision-making authority) and be comprised of the Company&rsquo;s
Global Chief Executive Officer (Mr. Xuefeng Chen), Founder/Chief Product and User Ecosystem Officer and Founder Advisor to the Board (Mr.
Yueting Jia), Interim Chief Financial Officer (Ms. Yun Han), the General Counsel and other senior leadership team members invited by members
of the FF Transformation Committee from time to time, with Mr. Jiawei Wang (an FF Top designee) being given committee observer status
subject to certain customary non-disclosure and confidentiality agreements; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">subject to the Company having entered into definitive agreements providing for at least $85 million of
additional or (in certain circumstances, accelerated) financing commitments in the aggregate and having received funding of at least $35
million immediately available for the Company&rsquo;s general use in connection therewith (which condition was, pursuant to the Amended
and Restated Shareholder Agreement, agreed to be satisfied):</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the Company would call, convene, hold and complete an annual meeting on the earliest date permitted under
Delaware law and applicable Nasdaq and SEC requirements;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the size of the Board would be reduced to seven members effective with the directors to be elected at
the next Annual Meeting;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the following individuals were nominated for election to the Board and included on the Board&rsquo;s recommended
slate at the Annual Meeting: (a) the Company&rsquo;s then-Global CEO, (b) four FF Top Designees, at least two of whom will be independent
directors, and (c) two independent directors selected by the Selection Committee, for which any member of the Selection Committee may
propose director candidates who will be included in the process with all final decisions made by the Selection Committee;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">no re-nomination of FF directors as of the date of the Heads of Agreement at the next annual meeting without
the consent of the Selection Committee;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">FF Top has the right to nominate for election to the Board four designees until the first date on which
FF Top has ceased to beneficially own the Minimum Share Amount. Following the termination of FF Top&rsquo;s right to nominate four designees,
FF Top shall continue to have the right to nominate a number of designees not less than the number equal to the total number of directors
on the Board, multiplied by the aggregate voting power of the shares of Common Stock and other securities of the Company generally entitled
to vote in the election of directors of the Company beneficially owned by FF Top and its affiliates, divided by the total voting power
of the then-outstanding shares of Common Stock issued as of the record date for any meeting of stockholders of the Company at which directors
are to be elected, rounding up to the next whole director; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the resignation of Ms. Swenson and Mr. Brian Krolicki as directors of the Company. It was also agreed
that (i) Ms. Swenson and Mr. Krolicki would not thereafter seek or accept re-appointment, re-nomination or re-election to the Board and
(ii) that following their resignations from the Board, their seats would be left empty until the Annual Meeting (which would result in
the Company having an eight person Board until the Annual Meeting).</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">On
October 3, 2022, Ms. Swenson tendered her resignation from her role as both Executive Chairperson and member of the Board effective immediately.
On October 28, 2022, Mr. Brian Krolicki tendered his resignation from the Board effective immediately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Mutual Release</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
September 23, 2022, the Company entered into a Mutual Release (the &ldquo;Mutual Release&rdquo;) with FF Global, its executive committee
members and their controlled affiliates, FF Global&rsquo;s controlled affiliates (including FF Top), and the directors of the Company
and their controlled affiliates (collectively, and together with the Company, the &ldquo;Release Parties&rdquo;), pursuant to which the
Release Parties agreed to a mutual release of claims and to settle various matters among them, including with respect to any differences
that arose out of the Company directors&rsquo; service as a director, employee, officer or manager of the Company up through and including
the date of the Mutual Release, subject to customary exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Voting Agreements
by FF Top Holding LLC and Season Smart Ltd.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
September 23, 2022, the Company entered into a letter agreement with each of FF Top and Season Smart, the two largest holders of Common
Stock, pursuant to which each of FF Top and Season Smart agreed to vote and did vote, with respect to all shares of Company voting stock
over which such party has voting control, in favor of any resolution presented to the stockholders of the Company at a stockholders&rsquo;
meeting to approve, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif; color: rgb(33,37,41)">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the issuance, in the aggregate, of more than 19.999% of the number of shares
of outstanding Common Stock (under Nasdaq Listing Rule 5635(d)) as a result of:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the issuance of up to (x) $57 million in principal amount of senior secured Tranche A convertible notes
at a conversion price of not below $1.05, before giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, per share of Class
A Common Stock for $27.0 million, and the remainder ($30 million) at a conversion price of not below $2.69, before giving effect to 1-to-80,
1-to-3 and 1-to-40 reverse stock splits, per share of Class A Common Stock, (y) $57 million in principal amount of senior secured Tranche
B convertible notes at a conversion price of not below $1.05, before giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits,
per share of Class A Common Stock for $27.0 million, and the remainder ($30 million) at a conversion price of not below $2.69, before
giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, per share of Class A Common Stock, and (z) 26,822,724, before giving
effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, shares of Class A Common Stock upon the exercise of associated warrants, in
each case, pursuant to the Existing Purchase Agreement (as then amended) and subject to the full-ratchet anti-dilution and most favored
nation protections therein&#894;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the issuance of up to 73,675,656, before giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits,
shares of Class A Common Stock upon the exercise of all previously issued convertible notes and warrants of the Company&#894; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the issuance of up to $60 million in principal amount of senior secured convertible notes by Senyun and/or
its affiliates&#894; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">an increase to the number of authorized shares of Common Stock to 900,000,000, before giving effect to
1-to-80, 1-to-3 and 1-to-40 reverse stock splits.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">In addition, each of FF
Top and Season Smart agreed in their respective voting agreements that, subject to the consent of such FF Top and Season Smart (with respect
to each such party&rsquo;s respective voting agreement), which consent is not to be unreasonably withheld, conditioned or delayed, the
Company may seek to further increase the number of authorized shares of Common Stock to up to a maximum of 1,500,000,000, before giving
effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, shares, and such party agrees to vote all shares with respect to which it
has voting power in favor of any resolutions presented to stockholders to effect such increase in the number of authorized shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
October 22, 2022, the Company and FF Top agreed to an amendment to FF Top&rsquo;s voting agreement, pursuant to which FF Top (i) reaffirmed
its commitment under the voting agreement, in light of the maturity date extension of notes under the Pre-existing SPA, to vote all of
its shares of Company voting stock in favor of the resolution to be presented to stockholders at the November 3, 2022 special meeting
to approve the issuance, in the aggregate, of more than 19.99% of the issued and outstanding shares of Common Stock underlying the various
instruments issued and issuable pursuant to the Pre-existing SPA; (ii) revised the condition precedent to FF Top&rsquo;s voting obligations
that the Company comply in all material respects with its obligations pursuant to the Heads of Agreement and any definitive documentation
contemplated by the Heads of Agreement to only apply to the period from and after October 22, 2022; and (iii) extended the deadline to
November 11, 2022 (which was subsequently extended to December 31, 2022) for the Company and FF Top to enter into an amendment to the
Existing Shareholder Agreement between FF Top and the Company and other definitive documentation contemplated by the Heads of Agreement
(provided that the failure of such amendment and other definitive documentation to be executed by such date will not, in and of itself,
release FF Top from its voting obligations).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
Top&rsquo;s obligations pursuant to the FF Top Voting Agreement were conditioned on (i) the appointment of Mr. Chad Chen (or a substitute
nominee, as applicable) to the Board as the fourth FF Top Designee no later than October 27, 2022 (provided that Mr. Chad Chen or a substitute
nominee, as applicable, is reasonably acceptable to the Nominating and Corporate Governance Committee of the Board with respect to the
Nasdaq independence rules and legal compliance and criminal compliance) (provided that if Mr. Chad Chen is not so reasonably acceptable
to the Nominating and Corporate Governance Committee of the Board, then FF Top will be permitted to nominate another individual to the
Board); and (ii) constructive engagement by Mr. Adam (Xin) He, the then-Interim Chairman of the Board, directly with representatives with
FF Top on certain additional governance and management matters and, to the extent the Interim Chairman of the Board so determines, in
his discretion, such matters will be put to a discussion and a vote of the full Board. On October 27, 2022, Mr. Chad Chen was appointed
to the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
Top&rsquo;s and Season Smart&rsquo;s obligations pursuant to their respective voting agreements are conditioned on the accuracy of certain
representations, compliance by the Company with certain covenants and the satisfaction of certain conditions, in each case as further
set forth in the applicable voting agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company also agreed in the FF Top Voting Agreement that FF Top may vote its shares of Common Stock in favor of each of the Krolicki and
Swenson removal proposals (if any), that neither FF Top nor the Company has any obligation to nominate or reappoint Mr. Krolicki or Ms.
Swenson to the Board at any time following their resignation or removal for any reason, that neither Mr. Krolicki nor Ms. Swenson shall
be re-appointed or re-nominated to the Board following their resignation or removal and that neither Mr. Krolicki nor Ms. Swenson shall
be (re)hired, (re)engaged or (re)appointed to any position at the Company following their resignation or removal from their respective
non-Board roles (if any) at the Company. On October 3, 2022, Ms. Swenson tendered her resignation from her role as both Executive Chairperson
and member of the Board effective immediately. On October 28, 2022, Mr. Brian Krolicki tendered his resignation from the Board effective
immediately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">At
a special meeting of Company stockholders held on November 3, 2022, Company stockholders approved the following three proposals: (1) a
proposal to approve, as is required by the applicable Nasdaq rules and regulations, transactions involving notes and warrants issued to
Purchasers as committed under the Pre-existing SPA (as then amended), including the issuance of any shares in excess of 19.99% of the
issued and outstanding shares of the Common Stock; (2) a proposal to increase total authorized shares of the Company from 825,000,000,
before giving effect to 1-to-80, 1-to-3, and 1-to-40 reverse stock splits, to 900,000,000, before giving effect to 1-to-80, 1-to-3, and
1-to-40 reverse stock splits, (the &ldquo;Share Authorization Proposal&rdquo;); and (3) a proposal to approve an amendment to the Charter
to effect a reverse stock split of the Common Stock by a ratio of any whole number in the range of 1-for-2 to 1-for-10, and a corresponding
reduction in the number of authorized shares of Common Stock (after adjustment of the number of authorized shares, if applicable, resulting
from stockholder approval of the Share Authorization Proposal), with such ratio to be determined in the discretion of the Board and with
such action to be effected at such time and date, if at all, as determined by the Board within one year after the conclusion of such special
meeting of stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF Top Expense
Reimbursements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
July 30, 2022, the Company entered into Preliminary Term Sheet with FF Top setting out a summary of the preliminary terms and conditions
for FF Top&rsquo;s assistance in arranging a proposed convertible term loan facility to the Company. In connection with the Preliminary
Term Sheet, the Company agreed to reimburse FF Top for its reasonable and documented out-of-pocket legal and diligence fees and expenses
incurred in connection with such financing efforts up to a $300,000 cap (the &ldquo;Original Cap&rdquo;), irrespective of whether or not
closing occurred, with $150,000 to be payable as a deposit upon execution of the Preliminary Term Sheet. Pursuant to the Preliminary Term
Sheet, the Company paid FF Top $150,000 on August 9, 2022 and $150,000 on December 16, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
January 31, 2023, the Company entered into a supplemental agreement to the Preliminary Term Sheet (the &ldquo;Supplemental Agreement&rdquo;)
with FF Top, pursuant to which the parties agreed, due to the high amount of FF Top&rsquo;s out-of-pocket legal fees and expenses incurred
in connection with assisting with and successfully closing this financing effort, to amend the Preliminary Term Sheet to increase the
Original Cap from $300,000 to $682,733.64. The Company agreed to pay the remaining $379,911.64 of the fee owed to FF Top as follows: (i)
fifty percent, equaling $189,955.82, within one business day of execution of the Supplemental Agreement, and (ii) fifty percent, equaling
$189,955.82, within one business day of consummation of new financing by the Company in an amount not less than $5.0 million or an earlier
date approved by the Board. Pursuant to the Preliminary Term Sheet, as amended by the Supplemental Agreement, the Company paid FF Top
$189,955.82 on February 1, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">FF
Top has requested additional expense reimbursements from the Company in connection with its efforts and expenses incurred related to resolving
corporate governance issues since 2022. FF Top may in the future continue to request, additional reasonable expense reimbursements and
indemnification from the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Payment on Behalf
of Ocean View</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
February 9, 2023, the Company made a payment of approximately $220,000 on behalf of Ocean View, an indemnified co-defendant, in connection
with a seizure of funds related to the outstanding judgment in ongoing litigation. Ocean View fulfilled its payment obligation under the
settlement arrangement of such litigation, but the Company did not make its payment on the outstanding judgment which caused such seizure
of funds of Ocean View. Following such seizure, the Company paid the outstanding judgment and all accrued interest. The Company expects
to receive the approximately $220,000 it paid on behalf of Ocean View following the release of such seizure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Certain Relationships
and Related Person Transactions&mdash;PSAC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Promissory Notes</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">On February 28, 2021, PSAC
issued an unsecured promissory note to the PSAC Sponsor pursuant to which PSAC may borrow up to an aggregate principal amount of $500,000
and on June 7, 2021 and July 8, 2021 PSAC issued another unsecured promissory note to the PSAC Sponsor pursuant to which PSAC may borrow
up a further $200,000 and $100,000, respectively (the &ldquo;Promissory Notes&rdquo;). The Promissory Notes were non-interest bearing.
At the closing of the Business Combination, all of the unpaid balance of the notes were converted into units consisting of one share of
Class A Common Stock and one warrant to purchase a share of Class A Common Stock at $10.00, before giving effect to 1-to-80, 1-to-3, and
1-to-40 reverse stock splits, per unit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Subscription Agreements</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
connection with the execution of the Merger Agreement, PSAC entered into separate subscription agreements with certain accredited investors
or qualified institutional buyers (collectively, the &ldquo;Subscription Investors&rdquo;), related to the purchase by Subscription Investors
of an aggregate of 76.1 million shares of Class A Common Stock for an aggregate purchase price of $761.4 million (such agreements, the
&ldquo;Subscription Agreements&rdquo;), concurrently with the execution of the Merger Agreement on January 27, 2021. The Subscription
Agreements require PSAC to use commercially reasonable efforts to have an effective shelf registration statement registering the resale
of the shares of PSAC common stock held by the Subscription Investors within 60 calendar days (or 90 calendar days if the SEC notifies
PSAC that it will review the registration statement) following the closing of the Business Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Agreement with
Riverside Management Group</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
July 18, 2021, PSAC entered into an omnibus transaction services fee agreement and acknowledgement with the PSAC Sponsor, FF, RMG and
Philip Kassin, Robert Mancini and James Carpenter (each, a &ldquo;Service Provider&rdquo; and, collectively, the &ldquo;Service Providers&rdquo;),
as subsequently amended by an amendment entered into on July 21, 2022, pursuant to which (i) the Service Providers, together with such
other service providers, who assisted the Service Providers as identified by the Service Providers, replaced RMG as the recipients of
the cash and share compensations under the Original RMG Agreement and (ii) the Company agreed to issue, and subsequently issued on July
22, 2022, 2,387,500 shares of Class A Common Stock in the aggregate to the Service Providers and such other service providers as identified
by the Service Providers in full consideration of certain consulting and advisory services provided by RMG in connection with the Business
Combination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Certain Relationships
and Related Person Transactions &mdash;Legacy FF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Restructuring Agreement
with Evergrande</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
November 2017, Legacy FF received a commitment from Season Smart, an affiliate of Evergrande Health Industry Group (&ldquo;Evergrande&rdquo;),
to provide $2.0 billion in funding, subject to certain conditions, in exchange for a 45% preferred equity stake in Legacy FF. Evergrande
initially funded $800 million in 2018, and the terms of the agreement provided that the remaining $1.2 billion would be contributed by
the end of 2019 and 2020, subject to certain conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">After
a dispute among Legacy FF, Season Smart and certain of their affiliates regarding, among other things, whether certain conditions to Season
Smart&rsquo;s requirement to provide additional funding were satisfied, on December 31, 2018, Legacy FF, Season Smart and certain of their
affiliates entered into a restructuring agreement pursuant to which Season Smart&rsquo;s preferred equity interest in Legacy FF was restructured
and reduced to 32% preferred equity stake in Legacy FF and the Legacy FF affiliated parties and Season Smart affiliated parties released
one another and their respective affiliates from certain claims (including Season Smart&rsquo;s obligation to make additional investments
in Legacy FF) (the &ldquo;Restructuring Agreement&rdquo;). In addition, the Restructuring Agreement provided that Legacy FF may at any
time before December 31, 2023 redeem, in part or in whole, the Legacy FF shares held by Season Smart at a predetermined redemption price.
The Restructuring Agreement also provided that, among other matters, (i) Season Smart agreed that Legacy FF could enter into new equity
financing arrangements without Season Smart&rsquo;s approval so long as the valuation for such equity financing is not less than a specified
threshold; (ii) Season Smart agreed to acquire Evergrande FF Holding (Hong Kong) Limited, which was previously a wholly-owned subsidiary
of Legacy FF and owned certain Chinese assets of Legacy FF; and (iii) Legacy FF revised its memorandum and articles of association to
provide Season Smart with certain rights. Certain Season Smart approval rights under the Restructuring Agreement were terminated at the
closing of the Business Combination under the transaction support agreement signed by Season Smart with PSAC and Legacy FF on January
27, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Borrowings from
Related Parties</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Related Party Notes
Payable</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Prior
to the Business Combination, FF funded its operations and capital needs primarily through the proceeds received from capital contributions
and the issuance of related party notes payable and notes payable. The notes payable and equity were significantly funded by entities
controlled or previously controlled by Mr. Yueting Jia, the founder and Chief Product and User Ecosystem Officer of the Company. As of
December 31, 2023 and 2022, the outstanding principal balance of FF&rsquo;s related party notes payable was $9.8 million and $9.0 million,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Related Party Notes
- NPA Tranche</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
April 29, 2019, Legacy FF entered into a note purchase agreement (as amended, restated and otherwise modified from time to time, the &ldquo;Note
Purchase Agreement&rdquo;) with certain purchasers, U.S. Bank National Association, as the notes agent, and Birch Lake Fund Management,
LP as the collateral agent. The principal amount of notes that may be issued under the Note Purchase Agreement was $200.0 million. The
notes issued under the Note Purchase Agreement bore interest at 10%, payable at the maturity date of the note. All notes issued under
the Note Purchase Agreement were collateralized by a first lien, with second payment priority, on substantially all tangible and intangible
assets of the borrowers and guarantors. The notes under the Note Purchase Agreement were subject to representations, warranties, and covenants
and were initially scheduled to mature on October 31, 2019. In October 2020, Legacy FF obtained an extension of the maturity date of the
notes under the Note Purchase Agreement to October 6, 2021. In connection with the Business Combination, the principal amount of the loans,
amounting to $27.7 million, were repaid in cash, with accrued interest and conversion premiums totaling $11.3 million converted into shares
of Class A Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Original Unsecured
SPA</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">MHL
is the anchor investor in the <I>Original </I>Unsecured SPA and has committed $80.0&nbsp;million of such funding. MHL is a related party
of the Company as MHL&rsquo;s investors include a subsidiary of FF Global. FF Global has control over the Company&rsquo;s management,
business and operations. See Note 7,&nbsp;<I>Notes Payable&nbsp;</I>to the Consolidated Financial Statements, for details on the <I>Original
</I>Unsecured SPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company elected the fair value option afforded by ASC 825,&nbsp;<I>Financial Instruments</I>, with respect to the <I>Original </I>Unsecured
SPA Notes because the notes include features, such as a contingently exercisable put option, which meet the definition of an embedded
derivative. The Company expensed the original issue discount and transaction costs to Changes in fair value of related party notes payable
and warrant liabilities in the Consolidated Statement of Operations and Comprehensive Loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Subsequent
to the issuance of the <I>Original </I>Unsecured SPA, MHL funded, net of original issue discounts, $20.7&nbsp;million in exchange for
the issuance of the <I>Original </I>Unsecured SPA Notes and related warrants. In connection with the <I>Original </I>Unsecured SPA, the
Company issued MHL warrants to purchase 35,405 shares of the Class A Common Stock at an exercise price of $214.20 per share, subject to
anti-dilution ratchet price protection, exercisable for seven years from the date of issuance (see Note 11,&nbsp;<I>Stockholders&rsquo; Equity</I>&nbsp;and
Note 7,&nbsp;<I>Notes Payable&nbsp;</I>to the Consolidated Financial Statements). During the year ended December&nbsp;31, 2023, MHL converted
$22.3&nbsp;million of gross principal balances in exchange for 5,010,651 shares of the Class A Common Stock. In connection with the conversion
of <I>Original </I>Unsecured SPA Notes, the Company recognized a $20.0&nbsp;million Loss on settlement of related party notes payable,
during the year ended December&nbsp;31, 2023, for the difference between the fair value of the shares issued and the fair value of the
debt instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Chinese Related Party
Notes Payable</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
of December 31, 2022, due to two separate note payable payoff settlement agreements entered into with Chongqing Leshi Small Loan Co.,
Ltd. (&ldquo;Chongqing&rdquo;) on December 27, 2022, according to which Chongqing agreed to forgive principal and all outstanding accrued
interest, the remaining principal balance of $4.7 million was agreed to be payable in five installment payments through December 31, 2023
and the current interest rate was set to 12%. The remaining amounts are due on demand to various other Chinese related party notes payable
holders and bear a 0% coupon. Interest at a rate of 10% is imputed on these related party notes payable as the interest rates prescribed
by the respective agreements are below market rates. As of April 1, 2023, the Company has been in breach of its debt agreement with, and
contractual obligation to make interest payments to, Chongqing , with an outstanding principal balance of $4.5&nbsp;million. As a result
of the default, the interest rate on the outstanding principal balance has increased to a rate of 18% per annum until the event of default
is no longer applicable. The Company recorded $0.1 million in interest expense in related party interest expense during the year ended
December&nbsp;31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>X-Butler previously
known as Warm Time Inc. (&ldquo;Warm Time&rdquo;) and Ocean View Drive Inc. (&ldquo;Ocean View&rdquo;) Transactions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company leased two real properties, located in Rancho Palos Verdes, California (the &ldquo;Rancho Palos Verdes Properties&rdquo;), from
X-Butler from January 1, 2018 through March 31, 2022. X-Butler in turn leased the Rancho Palos Verdes Properties from Yueting Jia, the
Company&rsquo;s founder and Chief Product and User Ecosystem Officer. The Rancho Palos Verdes Properties were used by the Company to provide
long-term or temporary housing to employees of the Company (including a former Global CEO. According to the agreement between the parties,
the Company paid X-Butler for rent and certain services, including catering, room services and organization of meetings, external gatherings
and events, for the Rancho Palos Verdes Properties. For the year ended December&nbsp;31, 2023, the Company paid to X-Butler less than
$0.1&nbsp;million, for rent and business development services rendered to the Company and its executives. The Company has recorded approximately
$0.1 million recorded in Accounts Payable as of December 31. 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">As
part of its relationship with the Company, X-Butler also served as the conduit for certain loans from Ocean View, an entity formerly controlled
by Mr. Jia and now wholly owned by the spouse of Mr. Ruokun Jia, who is the former Assistant Treasurer of the Company and Mr. Jia&rsquo;s
nephew. The loan principal was repaid to the Company in prior years and accrued interest on such loans remains outstanding as of December&nbsp;31,
2023 and 2022 in the amount of $0.0&nbsp;million for each period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
prior years, the Company advanced funding to Ocean View for various real estate purchases, including the Rancho Palos Verdes Properties,
and related expenses. As of December&nbsp;31, 2023 and 2022, the Company had a receivable in the amount of $0.0 million for each period,
due from Ocean View recorded in Deposits in the Consolidated Balance Sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
February 9, 2023, the Company made a payment of approximately $0.2&nbsp;million on behalf of Ocean View, an indemnified co-defendant,
in connection with a seizure of funds related to the outstanding judgment in ongoing litigation, also involving Han&rsquo;s San Jose Hospitality,
LLC. Ocean View fulfilled its payment obligation under the settlement arrangement of such litigation, but the Company did not make its
payment on the outstanding judgment which caused such seizure of funds of Ocean View. See Note 10,&nbsp;<I>Commitments and Contingencies&nbsp;</I>to
the Consolidated Financial Statements, for more information. Following such seizure, the Company paid the outstanding judgment and all
accrued interest. The Company received the return of such indemnification payment in April 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>FF Global Expense
Reimbursements and Consulting Fees</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
July 30, 2022, the Company entered into the Preliminary Term Sheet with FF Top, a subsidiary of FF Global, setting out a summary of the
preliminary terms and conditions for FF Top&rsquo;s assistance in arranging a proposed convertible term loan facility to the Company.
In connection with the Preliminary Term Sheet, the Company agreed to reimburse FF Top for its reasonable and documented out-of-pocket
legal and diligence fees and expenses incurred in connection with such financing efforts up to a $0.3&nbsp;million cap (the &ldquo;Original
Cap&rdquo;), irrespective of whether or not closing occurred, with $0.2&nbsp;million to be payable as a deposit upon execution of the
Preliminary Term Sheet. Pursuant to the Preliminary Term Sheet, the Company paid FF Top $0.2&nbsp;million on August 9, 2022 and $0.2&nbsp;million
on December 16, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
January 31, 2023, the Company entered into a supplemental agreement to the Term Sheet and with FF Global, pursuant to which the parties
agreed, due to the high amount of FF Global&rsquo;s out-of-pocket legal fees and expenses incurred in connection with its financing efforts,
to amend the Term Sheet to increase the cap for legal fees and expenses from $0.3&nbsp;million to $0.7&nbsp;million. The Company agreed
to pay the remaining $0.4&nbsp;million of the fees owed to FF Global as follows: (i) $0.2&nbsp;million within one business day of execution
of the Supplemental Agreement, and (ii) $0.2&nbsp;million within one business day of consummation of new financing by the Company in an
amount not less than $5.0&nbsp;million or an earlier date approved by the Board. Pursuant to the Term Sheet, as amended by the Supplemental
Agreement, the Company paid FF Global $0.2&nbsp;million on each of February 1, 2023 and February 6, 2023. On April 8, 2023, the Company
reimbursed FF Global for $0.2&nbsp;million related to legal expenses incurred by FF Global in connection with the Sixth Pre-existing SPA
Amendment. In addition, on April 10, 2023 and May 31, 2023, the Company reimbursed FF Global for $0.1&nbsp;million and $0.3&nbsp;million
related to legal expenses incurred by FF Global in connection with the Unsecured Financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
early February 2023, FF Global requested from the Company legal expense reimbursement of $6.5&nbsp;million for costs incurred related
to the governance changes at the Company, which was not approved by the Board as of the date the Consolidated Financial Statements were
issued. FF Global may in the future continue to request additional expense reimbursements and indemnification from the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
March 6, 2023, the Company entered into a consulting service agreement with an effective date of February 1, 2023 with FF Global (the
&ldquo;Consulting Services Agreement&rdquo;), according to which the Company agreed to pay a monthly consulting fee of $0.2&nbsp;million
to FF Global for the following services:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif; color: rgb(33,37,41)">&#9679;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Assistance in developing its funding strategy.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Assistance in developing its value return and management strategy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Consultation on and integration of stockholder relations and stockholder resources.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Supporting communications regarding stockholders meetings.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Developing existing stockholder financing strategy, including with respect to retail investors and others.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Assistance in risk management strategy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD>Assistance in capability build up and operation strategy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Consulting Services Agreement has an initial term of 12 months and automatically renews for successive 12 months periods unless earlier
terminated in accordance with the terms thereof. Effective March 6, 2024, the Consulting Agreement renewed automatically. Either party
may terminate the Consulting Services Agreement upon one month prior written notice to the other party. Upon any termination of the Consulting
Services Agreement, the Company shall promptly pay FF Global any accrued but unpaid fees hereunder and shall reimburse FF Global for any
unreimbursed expenses that are reimbursable thereunder. In addition, FF Global is entitled to reimbursement for all reasonable and documented
out-of-pocket travel, legal, and other out-of-pocket expenses incurred in connection with their services, which expenses shall not exceed
$0.1&nbsp;million without the prior written consent of the Company. The Company paid $1.8 million, respectively, to FF Global during the
year ended December&nbsp;31, 2023, pursuant to the Consulting Services Agreement. The Company has $0.6 million of amounts payable to FF
Global recorded in Accounts Payable and Accrued Liabilities in the Consolidated Balance Sheets at December&nbsp;31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Common Units of FF
Global</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">During
2022, certain executives and employees of the Company were granted the opportunity to subscribe to 2,500 common units of FF Global. The
subscription price of $4,800 per common unit, payable by the executives and employees of the Company, was financed through non-recourse
loans issued by FF Global payable in equal annual installments over ten years. The common units to be purchased with a non-recourse loan
are required to be treated for accounting purposes as stock options granted by FF Global to executives and employees of the Legacy FF.
The awards were valued using the Black-Scholes option pricing model. The grant date fair value of the units purchased through non-recourse
loans was immaterial for the years ended December&nbsp;31, 2023 and 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Advertising Services
Payable to Leshi Information Technology Co., Ltd. (&ldquo;LeTV&rdquo;)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company has recorded a payable to LeTV within Accrued expenses and other current liabilities in the amount of $7.5 million and $7.0&nbsp;million
as of December&nbsp;31, 2023 and December&nbsp;31, 2022, respectively, in connection with advertising services provided to the Company
in prior years. LeTV is a Shanghai Stock Exchange-listed public company founded and controlled by Mr. Yueting Jia, the Company&rsquo;s
founder and Chief Product and User Ecosystem Officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Other Related Party
Transactions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company pays for a vehicle lease totaling less than $0.1 million annually on behalf of Mr. Jia, the Company&rsquo;s founder and Chief
Product and User Ecosystem Officer. In addition, during 2023, the Company leased a FF 91 to Mr. Jia.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company owes a total of $0.2 million and $0.1&nbsp;million to various related parties as of December&nbsp;31, 2023 and 2022, respectively,
which is included in Accounts Payable within the Consolidated Balance Sheets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Procedures with Respect
to Review and Approval of Related Person Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Following
the consummation of the Business Combination, the Board adopted a written policy with respect to the review, approval and ratification
of related person transactions. Under the policy, FF&rsquo;s Audit Committee is responsible for reviewing and approving related person
transactions. In the course of its review and approval of related party transactions, the Audit Committee will consider the relevant facts
and circumstances to decide whether to approve such transactions. In particular, the policy requires the Audit Committee to consider,
among other factors it deems appropriate:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif; color: rgb(33,37,41)">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the related person&rsquo;s relationship to FF and interest in the transaction;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the material facts of the proposed transaction, including the proposed aggregate value of the transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the impact on a director&rsquo;s or a director nominee&rsquo;s independence in the event the related person
is a director or director nominee or an immediate family member of the director or director nominee;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">the benefits to FF of the proposed transaction;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">if applicable, the availability of other sources of comparable products or services; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">an assessment of whether the proposed transaction is on terms that are comparable to the terms available
to an unrelated third party or to employees generally.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Audit Committee may only approve those transactions that are in, or are not inconsistent with, FF&rsquo;s best interests and those of
FF&rsquo;s stockholders, as the Audit Committee determines in good faith.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
addition, under FF&rsquo;s Code of Business Conduct and Ethics, FF&rsquo;s employees, officers, directors and director nominees have an
affirmative responsibility to disclose any transaction or relationship that reasonably could be expected to give rise to a conflict of
interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_013"></A>PRINCIPAL STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
following table and accompanying footnotes set forth information with respect to the beneficial ownership of Common Stock, as of October
8, 2024, for (1) each person known by us to be the beneficial owner of more than 5% of the outstanding shares of Common Stock, (2) each
member of the Board, (3) each of our named executive officers and (4) all of the members of the Board and our executive officers, as a
group. As of October 8, 2024, there were outstanding 33,377,187 shares of Class A Common Stock, 6,667 shares of Class B Common Stock,
and 1,296,410 outstanding warrants to purchase shares of Class A Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
beneficial ownership percentages set forth in the table below are based on 33,383,854 shares of Common Stock issued and outstanding as
of October 8, 2024, (including for this purpose, 6,667 shares of Class A Common Stock issuable upon conversion of 6,667 shares of Class
B Common Stock held by FF Top, all as issued and outstanding shares as of October 8, 2024) and do not take into account the issuance of
any shares of Class A Common Stock upon the exercise of warrants to purchase up to 1,296,410 shares of Class A Common Stock that remain
outstanding, the exercise of any of the 2,871 outstanding options and vesting of unvested 1,529,761 RSUs (both within 60 days of October
8, 2024), or the conversion of any of the outstanding convertible notes. In computing the number of shares of Common Stock beneficially
owned by a person, we deemed to be outstanding all shares of Common Stock subject to warrants and stock options held by the person that
are currently exercisable or may be exercised within 60 days of October 8, 2024. We did not deem such shares outstanding, however, for
the purpose of computing the percentage ownership of any other person.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Beneficial
ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC. A person is a
&ldquo;beneficial owner&rdquo; of a security if that person has or shares &ldquo;voting power,&rdquo; which includes the power to vote
or to direct the voting of the security, or &ldquo;investment power,&rdquo; which includes the power to dispose of or to direct the disposition
of the security or has the right to acquire such powers within 60 days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Unless
otherwise noted in the footnotes to the following table, and subject to applicable community property laws, the persons and entities named
in the table have sole voting and investment power with respect to their beneficially owned Common Stock. Unless otherwise indicated,
the business address of each person listed in the table below is c/o Faraday Future Intelligent Electric Inc., 18455 S. Figueroa Street,
Gardena, California 90248.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Title of Class</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Name and Address of Beneficial Owner</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of Shares of Common Stock Beneficially Owned</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage of Class</TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic">Holder of Over 5%:</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD>N/A</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-style: italic">&nbsp;</TD>
    <TD STYLE="font-style: italic">Directors and Executive Officers</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 20%; text-align: left">Class A Common Stock</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 55%">Matthias Aydt(1)**</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">41,135</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD>Chad Chen(2)****</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,942</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Xuefeng Chen***</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">4</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Scott Graziano*****</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Yun Han******</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">0</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Li Han****</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">369</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Chui Tin Mok(3)****</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">32,106</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD>Jie Sheng(4)****</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,936</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD>Lev Peker(5)****</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">22,810</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Jonathan Maroko********</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">8,247</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Class A Common Stock</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Yueting Jia (6)*******</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">403,468</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">1.21</TD>
    <TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">All executive officers and directors as a group (11 individuals)</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">554,018</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">1.66</TD>
    <TD STYLE="font-weight: bold; text-align: left">%</TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Less
                                            than 1%.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">**</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
                                            Matthias Aydt was appointed Global CEO of the Company effective as of September 29, 2023.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">***</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
                                            Xuefeng Chen was appointed Global CEO of the Company effective as of November 27, 2022 and
                                            was appointed as a director of the Board on December 27, 2022. Mr. Chen resigned from his
                                            positions as Global CEO and director effective as of September 29, 2023.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.6in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">****</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
                                            Chad Chen was appointed as a director of the Board as of October 27, 2022. Mr. Jie Sheng
                                            was appointed as a director of the Board on December 18, 2022. Mr. Chui Tin Mok was appointed
                                            as a director of the Board on January 25, 2023. Ms. Li Han was appointed as a director of
                                            the Board on March 13, 2023, and resigned from the position on June 9, 2024. Mr. Lev Peker
                                            was appointed as a director of the Board on August 4, 2023.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0%; font-size: 10pt"></TD>
    <TD STYLE="width: 0.6in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*****</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Scott Graziano was appointed Global General Counsel of the Company effective as of September 25, 2023.</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.6in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">******</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Ms.
                                            Yun Han was appointed as Chief Accounting Officer and Interim Chief Financial Officer of
                                            the Company on October 22, 2022, effective as of October 25, 2022. Ms. Han resigned from
                                            her position as Interim Chief Financial Officer of the Company effective as of July 5, 2023.
                                            Ms. Han resigned from her position as Chief Accounting Officer of the Company as of February
                                            2, 2024.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.6in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*******</FONT>&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
                                            February 26, 2023, Mr. Yueting Jia was determined to be an &ldquo;officer&rdquo; of the Company
                                            within the meaning of Section 16 of the Exchange Act and an &ldquo;executive officer&rdquo;
                                            under Rule 3b-7 under the Exchange Act.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.6in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">********&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr. Jonathan Maroko was appointed Interim Chief Financial Officer of the Company effective as of July 24, 2023, and resigned from the position on September 15, 2024.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
                                            options to acquire 69 shares of Class A Common Stock and right to acquire 35,740 shares of
                                            class A common Stock that have vested or will vest within 60 days of October 8, 2024. To
                                            the Company&rsquo;s knowledge, Mr. Aydt has not sold any shares since the Company became
                                            a public company.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Includes right to acquire 22,556 shares of Class A Common Stock
that will vest within 60 days of October 8, 2024. To the Company&rsquo;s knowledge, Mr. Chen has not sold any shares since the Company
became a public company</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Includes options to acquire 115 shares of Class A Common Stock
and right to acquire 31,965 shares of class A common Stock that have vested or will vest within 60 days of October 8, 2024. To the Company&rsquo;s
knowledge, Mr. Mok has not sold any shares since the Company became a public company.</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
right to acquire 22,556 shares of Class A Common Stock that will vest within 60 days of October 8, 2024. To the Company&rsquo;s knowledge,
Mr. Sheng has not sold any shares since the Company became a public company</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes
right to acquire 22,556 shares of Class A Common Stock that will vest within 60 days of October 8, 2024. To the Company&rsquo;s knowledge,
Mr. Peker has not sold any shares since the Company became a public company.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Includes options to
                                                                                                                                                                 acquire 75 shares of Class A Common Stock and right to acquire 398,205 shares of class A common Stock that have vested or will vest
                                                                                                                                                                 within 60 days October 8, 2024. To the Company&rsquo;s knowledge, Mr. Jia has not sold any shares since the Company became a public
                                                                                                                                                                 company.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_014"></A>SELLING SECURITYHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus relates to the issuance by us, and the offer and sale
from time to time by the Selling Securityholders, of up to an aggregate of 29,659,781 shares of Class A Common Stock, of which 28,017,654
shares of Class A Common Stock are issuable upon conversion of the SPA Notes and the exercise of the SPA Warrants, 561,833 shares of Class
A Common Stock are issuable upon conversion of the Applicable Tranche D Notes, and 1,080,294 shares of Class A Common Stock issued to
Palantir in settlement of amounts owed to Palantir. The Selling Securityholders listed in the table below may from time to time offer
and sell any or all of the shares of Class A Common Stock set forth below pursuant to this prospectus and any accompanying prospectus
supplement. When we refer to the &ldquo;Selling Securityholders&rdquo; in this prospectus, we refer to the persons listed in the table
below, and the pledgees, donees, transferees, assignees, successors and other permitted transferees that hold any of the Selling Securityholders&rsquo;
interest in the shares of Class A Common Stock after the date of this prospectus. For additional information regarding the issuance of
the SPA Notes and the SPA Warrants, see &ldquo;<I>New SPA, SPA Warrants, and SPA Notes</I>&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table sets forth
information provided by or on behalf of each Selling Securityholder as of October 8, 2024 regarding the aggregate number of shares of
Class A Common Stock (including shares of Class A Common Stock issuable upon exercise of SPA Warrants or conversion of SPA Notes and Applicable
Tranche D Notes), the aggregate number of shares of Class A Common Stock (including shares of Class A Common Stock issuable upon exercise
of SPA Warrants or conversion of SPA Notes and Applicable Tranche D Notes) that may be offered from time to time by each Selling Securityholder
pursuant to this prospectus and any accompanying prospectus supplement, and the number of shares of Class A Common Stock (including shares
of Class A Common Stock issuable upon exercise of SPA Warrants or conversion of SPA Notes and Applicable Tranche D Notes), and percentage
ownership of, each Selling Securityholder after the sale of securities offered hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The applicable beneficial
ownership percentages prior to the offering set forth in the second column of the table below are based on 33,377,187 shares of Class
A Common Stock issued and outstanding as of October 8, 2024 (excluding, for this purpose, 6,667 shares of Class B Common Stock held by
FF Top, all as issued and outstanding shares as of October 8, 2024), and do not take into account the issuance of any shares of Class
A Common Stock upon the exercise of warrants to purchase up to 1,296,410 shares of Class A Common Stock that remain outstanding, the exercise
of any of the 2,879 outstanding options and vesting of 1,516,942 unvested RSUs (both as of October 8, 2024), and the applicable beneficial
ownership percentages after the offering in the fourth column of the table below are based on 63,036,876 shares of Class A Common Stock
outstanding after the offering.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of the Secured
Notes and Warrants, a selling stockholder may not convert the notes or exercise the warrants to the extents (but only to the extent) such
selling stockholder or any of its affiliates would beneficially own a number of shares of our Class A Common Stock which would exceed
4.99% or 9.99%, as applicable (the &ldquo;Maximum Percentage&rdquo;) of our outstanding shares. The number of shares in the second column
of the table below reflects these limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purpose of the calculations of the shares of Class A Common Stock
to be sold by a particular Selling Securityholder pursuant to this prospectus as listed in the third column of the table below we are
assuming, that (i) interest on the Secured Notes has not accrued, (ii) an event of default under the Secured Notes has not occurred, (iii)
the Secured Notes are converted at the floor price of $1.048, and (iv) the exercise of all of the Warrants in full without regard to any
limitations on exercise set forth in the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The fourth column of the table below represents the amount of shares
of Class A Common Stock that will be held by the Selling Securityholders after completion of this offering based on the assumptions that
(a) all shares of Class A Common Stock underlying the Secured Notes and the Warrants registered for sale by the registration statement
of which this prospectus is part of will be sold, and (b) no other shares of Class A Common Stock are acquired or sold by the Selling
Securityholders prior to completion of this offering. However, the Selling Securityholders are not obligated to sell all or any portion
of the shares of our Class A Common Stock offered pursuant to this prospectus. See &ldquo;<I>Plan of Distribution</I>.&rdquo; In particular,
the Selling Securityholders identified below may have sold, transferred or otherwise disposed of all or a portion of their securities
after the date on which they provided us with information regarding their securities. Any changed or new information given to us by the
Selling Securityholders, including regarding the identity of, and the securities held by, each Selling Securityholder, will be set forth
in a prospectus supplement or amendments to the registration statement of which this prospectus is a part, if and when necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number of Shares of Class A Common Stock<BR>
Beneficially Owned</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number of Shares of Class A Common Stock Being</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number of Shares of Class A Common Stock Owned<BR>
After Offering</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name of Selling Stockholder</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Offered</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Number</B></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Percent</B></FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="width: 40%; padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF Simplicity Ventures LLC (1)</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,772,902</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(1)</SUP></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,970,767</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.05</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">About Investment Pte. Ltd (3)(6)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,752,996</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(3)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,496,183</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Senyun International Limited (4)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(4)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9,446,564</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4,752,908</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Master Investment Group (5)(6)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,752,996</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(5)</SUP>&nbsp;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,099,237</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Univest Securities, LLC (&ldquo;Univest&rdquo;)(7)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202,768</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">202,768</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Palantir Technologies Inc.(8)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,080,294</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.24</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,080,294</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;</FONT></TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF Adventures SPV XVIII LLC (9)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">233,592</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,268,533</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.64</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF Aventuras SPV XI LLC (10)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">49,859</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">443,840</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.31</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF Venturas SPV X LLC (11)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">79,753</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">713,319</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.09</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF Ventures SPV IX LLC (12)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">86,372</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">993,371</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.88</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 9pt; text-indent: -9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">FF Vitality Ventures LLC (13)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3,704,456</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>(2)</SUP></FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.99</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">112,257</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">175,200</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">0.52</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">%</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">*</TD><TD STYLE="text-align: justify">less than 1%</TD>
</TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ATW Partners Opportunities Management, LLC (the &ldquo;Investment Manager&rdquo;)
acts as the investment manager of FF Simplicity Ventures LLC (&ldquo;FF Simplicity&rdquo;), and may be deemed to have voting and dispositive
power with respect to the shares of Class A Common Stock held by FF Simplicity. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing
members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting
power over the shares of Class A Common Stock held by FF Simplicity. The Investment Manager and the managing members each disclaim beneficial
ownership of the shares held by FF Simplicity. The address of the principal business office of each of the Investment Manager and FF Simplicity
is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;Number of Shares of Class A Common Stock Beneficially Owned&rdquo;
consists of shares of Class A Common Stock beneficially owned as of October 8, 2024 by each of FF Simplicity Ventures LLC, FF Adventures
SPV XVIII LLC, FF Aventuras SPV XI LLC, FF Venturas SPV X LLC, FF Ventures SPV IX LLC, and FF Vitality Ventures LLC (collectively, the
&ldquo;ATW Funds&rdquo;) which entities are under common control, after giving effect to the Maximum Percentage of 9.99% (although the
Maximum Percentage set forth in each security may be listed as 4.99% or 9.99% depending on the security, however, the ATW Funds have requested,
prior to the date hereof, an increase of the Maximum Percentage for each security to 9.99%, which will be effective 61 days after such
notice). Without regard to the Maximum Percentage, as of October 8, 2024, each of the ATW Funds would beneficially own an aggregate number
of 12,899,765 shares of our Class A Common Stock consisting of (A) FF Simplicity Ventures LLC would beneficially own an aggregate number
of 8,743,669 shares of our Class A Common Stock consisting of (i) 76,740 shares of Class A Common Stock held by this Selling Stockholder,
none of which are being registered under this prospectus; (ii) 2,624,046 shares of Class A Common Stock underlying the Secured Notes held
by this Selling Stockholder, converted at an alternate conversion price of $1.048 per share, all of which are being registered under this
prospectus; (iii) 524,810 shares of Class A Common Stock underlying the Warrants held by this Selling Stockholder, currently exercisable,
at a price of $6.29 per share, all of which are being registered under this prospectus; (iv) 2,624,046 shares of Class A Common Stock
underlying the Incremental Notes, converted at an alternate conversion price of $1.048 per share, issuable upon exercise of the Incremental
Warrants held by this Selling Stockholder, all of which are being registered under this prospectus; (v) 300,278 shares of Class A Common
Stock underlying the outstanding Applicable Tranche D Notes that were previously acquired by this Selling Stockholder, converted at a
conversion price of $2.282, none of which are being registered under this prospectus; (vi) 791 shares of Class A Common Stock underlying
the outstanding Pre-existing SPA Warrants that were previously acquired by this Selling Stockholder, none of which are being registered
under this prospectus; and (vii) 2,592,958 shares of Class A Common Stock underlying the outstanding Exchange Note that was previously
acquired by this Selling Stockholder, none of which are being registered under this prospectus; (B) FF Adventures SPV XVIII LLC would
beneficially own an aggregate number of 1,502,125 shares of our Class A Common Stock consisting of (i) 132,269 shares of Class A Common
Stock underlying the Streeterville Note previously acquired by this Selling Stockholder, converted at an conversion price of $2.282 per
share, none of which are being registered under this prospectus; (ii) 1,369,747 shares of Class A Common Stock underlying the outstanding
Tranche D Notes that were previously acquired by this Selling Stockholder, converted at a conversion price of $2.282, of which 233,592
shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered under this prospectus; and (iii) 109 shares
of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this Selling Stockholder, none of which are being
registered under this prospectus; (C) FF Aventuras SPV XI, LLC would beneficially own an aggregate number of 493,699 shares of our Class
A Common Stock consisting of (i) 46,278 shares of Class A Common Stock underlying the Streeterville Note previously acquired by this Selling
Stockholder, converted at an conversion price of $2.282 per share, none of which are being registered under this prospectus; (ii) 447,387
shares of Class A Common Stock underlying the outstanding Tranche D Notes that were previously acquired by this Selling Stockholder, converted
at a conversion price of $2.282, of which 49,859 shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered
under this prospectus; and (iii) 34 shares of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this
Selling Stockholder, none of which are being registered under this prospectus; (D)&nbsp;&nbsp;FF Venturas SPV X LLC would beneficially
own an aggregate number of 793,072 shares of our Class A Common Stock consisting of (i) 74,376 shares of Class A Common Stock underlying
the outstanding Streeterville Note previously acquired by this Selling Stockholder, converted at an conversion price of $2.282 per share,
none of which are being registered under this prospectus; (ii) 718,641 shares of Class A Common Stock underlying the outstanding Tranche
D Notes that were previously acquired by this Selling Stockholder, converted at a conversion price of $2.282, of which 79,753 shares of
Class A Common Stock underlying the Applicable Tranche D Notes are being registered under this prospectus, and (iii) 55 shares of Class
A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this Selling Stockholder, none of which are being registered
under this prospectus; (E) FF Venturas SPV IX LLC would beneficially own an aggregate number of 1,079,743 shares of our Class A Common
Stock consisting of (i) 103,580 shares of Class A Common Stock underlying the Streeterville Note previously acquired by this Selling Stockholder,
converted at an conversion price of $2.282 per share, none of which are being registered under this prospectus; (ii) 976,087 shares of
Class A Common Stock underlying the outstanding Tranche D Notes that were previously acquired by this Selling Stockholder, converted at
a conversion price of $2.282, of which 86,372 shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered
under this prospectus; and (iii) 76 shares of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this
Selling Stockholder, none of which are being registered under this prospectus; and (F) FF Vitality Ventures LLC would beneficially own
an aggregate number of 287,457 shares of our Class A Common Stock consisting of (i) 286,090 shares of Class A Common Stock underlying
the outstanding Tranche D Notes that were previously acquired by this Selling Stockholder, converted at a conversion price of $2.282,
of which 112,257 shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered under this prospectus;
and (ii) 1,367 shares of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this Selling Stockholder,
none of which are being registered under this prospectus.</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;Number of Shares of Class A Common Stock Beneficially Owned&rdquo; consists of shares of Class A Common Stock About Investment beneficially owns as of October 8, 2024, after giving effect to the limitation percentage, of 4.99% (the &ldquo;limitation Percentage&rdquo;). Without regard to the Limitation Percentage, as of October 8, 2024, shares of Class A Common Stock About Investment would beneficially own includes 10,496,182 shares of Class A Common Stock issuable to About Investment upon the conversion of the SPA Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants. &ldquo;Number of Shares of Class A Common Stock Being Offered&rdquo; includes 5,725,190 shares of Class A Common Stock issuable to About Investment upon the conversion of the Secured Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants at an exercise price of $6.29, within 60 days of October 8, 2024, and 4,770,992 shares of Class A Common Stock issuable upon conversion of the Incremental Notes issuable upon exercise of the Incremental Warrants. The SPA Notes, if available, are convertible at the Conversion Price or at the Alternate Price&rdquo;. The principal business address of the Selling Securityholder is 71 Robinson Road, Singapore, 068895.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;Number of Shares of Class A Common Stock Beneficially Owned&rdquo; consists of shares of Class A Common Stock Senyun beneficially owns as of October 8, 2024, after giving effect to the Maximum Percentage. Without regard to the Maximum Percentage, as of October 8, 2024, shares of Class A Common Stock Senyun would beneficially own would be 62,355,368, which includes (i) 24,354,131 shares of Class A Common Stock issuable to Senyun and conversion of the SPA Notes and the exercise of the SPA Warrants; (ii) 20,295,109 shares of Common Stock underlying the Incremental Notes, converted at an alternate conversion price of $1.048 per share, issuable upon exercise of the Incremental Warrants held by this Selling Stockholder; (iii) 17,696,703 shares of Class A Common Stock issuable to Senyun upon the conversion of Pre-existing SPA Notes and (iv) 9,435 shares of Class A Common Stock issuable to Senyun upon the exercise of Pre-existing SPA Warrants, in each case, within 60 days of October 8, 2024, &ldquo;Number of Shares of Class A Common Stock Being Offered&rdquo; includes 5,152,581 shares of Class A Common Stock issuable to Senyun upon the conversion of the Secured Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants at an exercise price of $6.29, within 60 days of October 8, 2024, and 4,293,893 shares of Class A Common Stock issuable upon conversion of the Incremental Notes issuable upon exercise of the Incremental Warrants. The SPA Notes, if available, are convertible at the Conversion Price or at the Alternate Price. The Warrants and the SPA Notes are subject to a blocker provision which prevents the holder from exercising the Warrants to the extent that, upon such exercise, the holder, together with its affiliates, would beneficially own in excess of 9.99% of the outstanding shares of FFIE Common Stock immediately after giving effect to the exercise thereof. Bo Zhang is the sole director of Senyun and may be deemed to beneficially own the securities held by Senyun. Mr. Zhang disclaims any beneficial ownership of the reported securities other than to the extent of his pecuniary interest therein. The address for Senyun is Flat/Rm. 1121, #11F, Ocean Centre Harbour City, 5 Canton Road, Hong Kong.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;Number of Shares of Class A Common Stock Beneficially Owned&rdquo; consists of shares of Class A Common Stock MIG beneficially owns as of October 8, 2024, after giving effect to the limitation percentage, of 4.99% (the &ldquo;limitation Percentage&rdquo;). Without regard to the Limitation Percentage, as of October 8, 2024, shares of Class A Common Stock MIG would beneficially own include 2,099,237 shares of Class A Common Stock issuable to MIG upon the conversion of the SPA Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants. &ldquo;Number of Shares of Class A Common Stock Being Offered&rdquo;, which includes 1,145,039 shares of Class A Common Stock issuable to MIG upon the conversion of the Secured Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants at an exercise price of $6.29, within 60 days of October 8, 2024, and 954,198 shares of Class A Common Stock issuable upon conversion of the Incremental Notes issuable upon exercise of the Incremental Warrants. The SPA Notes, if available, are convertible at the Conversion Price or at the Alternate Price&rdquo;. The address of MIG is 730, 1st Floor, Sheikh Mohammed Building, Nakheel, Ras Al Khaimah, UAE.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(6)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Warrants are subject to a blocker provision which prevents the holder from exercising the Warrants to the extent that, upon such exercise, the holder, together with its affiliates, would beneficially own in excess of 9.99% of the outstanding shares of FFIE Common Stock immediately after giving effect to the exercise thereof. The SPA Notes (other than Senyun&rsquo;s SPA Notes) are subject to a similar blocker provision which prevents the holder from converting the SPA Notes to the extent that, upon such conversion, the holder, together with its affiliates, would beneficially own in excess of 4.99% of the outstanding shares of FFIE Class A Common Stock immediately after giving effect to the conversion thereof. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(7)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;Number of Shares of Class A Common Stock Beneficially Owned&rdquo; and &ldquo;Number of Shares of Class A Common Stock Being Offered&rdquo; both include 202,768 shares of Class A Common Stock issuable upon the exercise of the PA Warrants, exercisable immediately at an exercise price of $6.29, which was issued in connection with Univest&rsquo;s role as placement agent in connection with the SPA. The PA Warrants are subject to a blocker provision which prevents the holder from exercising the PA Warrants to the extent that, upon such exercise, the holder, together with its affiliates, would beneficially own in excess of 4.99%, and in no event exceeds 9.99% of the outstanding shares of FFIE Common Stock immediately after giving effect to the exercise thereof, and in no event exceeds 9.99%.</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(8)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The principal business address of the Selling Securityholder is 1200 17<SUP>th</SUP> Street, Floor 15, Denver, Colorado 80202.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(9)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ATW Partners Opportunities Management, LLC (the &ldquo;Investment Manager&rdquo;) acts as the investment manager of FF Adventures SPV XVIII LLC (&ldquo;SPV XVIII&rdquo;), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV XVIII. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV XVIII. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV XVIII. The address of the principal business office of each of the Investment Manager and SPV XVIII is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(10)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ATW Partners Opportunities Management, LLC (the &ldquo;Investment Manager&rdquo;) acts as the investment manager of FF Aventuras SPV XI, LLC (&ldquo;SPV XI&rdquo;), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV XI. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV XI. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV XI. The address of the principal business office of each of the Investment Manager and SPV XI is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ATW Partners Opportunities Management, LLC (the &ldquo;Investment Manager&rdquo;) acts as the investment manager of FF Venturas SPV X, LLC (&ldquo;SPV X&rdquo;), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV X. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV X. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV X. The address of the principal business office of each of the Investment Manager and SPV X is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(12)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ATW Partners Opportunities Management, LLC (the &ldquo;Investment Manager&rdquo;) acts as the investment manager of FF Venturas SPV IX LLC (&ldquo;SPV IX&rdquo;), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV IX. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV IX. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV IX. The address of the principal business office of each of the Investment Manager and SPV IX is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119. </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(13)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">ATW Partners Opportunities Management, LLC (the &ldquo;Investment Manager&rdquo;) acts as the investment manager of FF Vitality Ventures LLC &ldquo;(Ventures&rdquo;), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by Ventures. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by Ventures. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by Ventures. The address of the principal business office of each of the Investment Manager and Ventures is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119. </FONT></TD></TR>
  </TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_015"></A>DESCRIPTION OF SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following summary of the
material terms of our securities is not intended to be a complete summary of the rights and preferences of such securities, and is qualified
by reference to our Amended and Restated Charter, our Amended and Restated Bylaws and the warrant-related documents described herein,
which are exhibits to the registration statement of which this prospectus is a part. We urge to you read each of the Amended and Restated
Charter, the Amended and Restated Bylaws and the warrant-related documents described herein in their entirety for a complete description
of the rights and preferences of our securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>General</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Amended and Restated Charter,
as amended, authorizes the issuance of up to the Corporation is authorized to issue is 114,245,313 shares, consisting of two classes of
stock: (i) 104,245,313 shares Common Stock, and (ii) 10,000,000 shares of Preferred Stock $0.0001 par value per share (the &ldquo;<B><I>Preferred
Stock</I></B>&rdquo;). The class of Common Stock shall be divided into two series of stock composed of (i) 99,815,625 shares of Class
A Common Stock (the &ldquo;<B><I>Class A Common Stock</I></B>&rdquo;), and (ii) 4,429,688 shares of Class B Common Stock (the &ldquo;<B><I>Class
B Common Stock</I></B>&rdquo;). For the avoidance of doubt, the Class A Common Stock and Class B Common Stock are separate series within
a single class of Common Stock, and are referred to herein together as the &ldquo;Common Stock.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of October 8, 2024, there
were outstanding 33,377,187 shares of Class A Common Stock, 6,667 shares of Class B Common Stock, no shares of Preferred Stock, 2,453
Public Warrants, 12 Private Warrants, 1,278,802 Ares NPA Warrants, an aggregate of 15,143 Pre-existing SPA Warrants and warrants underlying
the Original Unsecured SPA, Secured Notes with an aggregate principal amount of $30,019,724, 5,931,538 Warrants, Incremental Warrants
to purchase Incremental Notes in an aggregate principal amount up to $30,019,724, and 202,768 PA Warrants.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">As of the date of this prospectus, the holders
of Class&nbsp;A Common Stock and Class&nbsp;B Common Stock are entitled to one vote for each share held of record on all matters to be
voted on by stockholders. Pursuant to the Amended Shareholder Agreement, FF Top informed the Company that it expects the Company will
submit a proposal to the Company stockholders for approval to amend the Amended and Restated Charter to provide that (i) the voting power
of the Company&rsquo;s Class B Common Stock, of which FF Global owns all outstanding shares, will be ten votes per share and (ii) the
voting power of the Company&rsquo;s Class B Common Stock will increase from ten votes per share to twenty votes per share following the
occurrence of a Qualifying Equity Market Capitalization.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">A &ldquo;Qualifying Equity Market Capitalization&rdquo;
means FF, at the end of any 20 consecutive trading days, has a volume weighted average total equity market capitalization of at least
$20.0 billion as determined by multiplying the average closing sale price per share of Class&nbsp;A Common Stock on the Nasdaq (or such
other securities exchange on which PSAC&rsquo;s securities are then listed for trading) at the time of determination by the then total
number of issued shares of Class&nbsp;A Common Stock, Class&nbsp;B Common Stock and other shares of FFIE.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">Until such proposal is approved and the Amended
and Restated Charter is amended accordingly, the holders of Class B Common Stock are entitled to one vote for each share held of record,
and a $20.0 billion equity market capitalization would be required to increase the voting power of the Class B Common Stock to ten votes
per share.&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Shares of Class&nbsp;B Common Stock have the right
to convert into shares of Class&nbsp;A Common Stock at any time at the rate of one share of Class&nbsp;A Common Stock for each share of
Class&nbsp;B Common Stock. Class&nbsp;A Common Stock does not have the right to convert into Class&nbsp;B Common Stock.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">There is no cumulative voting with respect to the
election of directors, with the result that the holders of more than 50% of the voting power represented by shares of Common Stock voted
for the election of directors can elect all of the directors.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Holders of Common Stock will not have any conversion,
preemptive or other subscription rights and there will be no sinking fund or redemption provisions applicable to the Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Charter authorizes the
issuance of 10,000,000 shares of Preferred Stock with such designations, rights and preferences as may be determined from time to time
by the Board. The Board is empowered, without stockholder approval, to issue the preferred stock with dividend, liquidation, conversion,
voting or other rights which could adversely affect the voting power or other rights of the holders of Common Stock; provided that any
issuance of Preferred Stock with more than one vote per share will require the prior approval of the holders of a majority of the outstanding
shares of Class&nbsp;B Common Stock. In addition, the Preferred Stock could be utilized as a method of discouraging, delaying or preventing
a change in control of FF.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Description of Warrants </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Public Warrants and Private Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As of October 8, 2024, FF has Public Warrants outstanding
to purchase an aggregate of 2,453 shares of Class A Common Stock and 12 Private Warrants outstanding to purchase an aggregate of 2,465
shares of Class A Common Stock. References in this &ldquo;<I>Public Warrants and Private Warrants</I>&rdquo; subsection to &ldquo;Warrant&rdquo;
or &ldquo;Warrants&rdquo; refer only to the Public Warrants and Private Warrants. Each outstanding whole Warrant represents the right
to purchase one share of Class&nbsp;A Common Stock at a price of $110,400 per share, subject to adjustment as discussed below, at any
time commencing on the later of 30&nbsp;days after the consummation of a business combination and 12 months from the closing of the initial
public offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No Warrants will be exercisable for cash unless
there is an effective and current registration statement covering the shares of Class A Common Stock issuable upon exercise of the Warrants
and a current prospectus relating to such shares of Class A Common Stock. Notwithstanding the foregoing, if a registration statement covering
the shares of Class A Common Stock issuable upon exercise of the Public Warrants is not effective within a specified period following
the consummation of the Business Combination, Warrant holders may, until such time as there is an effective registration statement and
during any period when FF shall have failed to maintain an effective registration statement, exercise Warrants on a cashless basis pursuant
to the exemption provided by Section&nbsp;3(a)(9) of the Securities Act, provided that such exemption is available. If that exemption,
or another exemption, is not available, holders will not be able to exercise their Warrants on a cashless basis. In the event of such
cashless exercise, each holder would pay the exercise price by surrendering the Warrants for that number of shares of Class A Common Stock
equal to the quotient obtained by dividing (x)&nbsp;the product of the number of shares of Class A Common Stock underlying the Warrants,
multiplied by the difference between the exercise price of the Warrants and the &ldquo;fair market value&rdquo; (defined below) by (y)&nbsp;the
fair market value. The &ldquo;fair market value&rdquo; for this purpose will mean the average reported last sale price of the shares of
Class A Common Stock for the 5 trading days ending on the trading day prior to the date of exercise. The Warrants will expire on the fifth
anniversary of completion of the Business Combination, at 5:00 p.m., New&nbsp;York City time, or earlier upon redemption or liquidation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Private Warrants, as well as any Warrants underlying
additional units issued to the PSAC Sponsor or PSAC&rsquo;s officers, directors or their affiliates in payment of working capital loans,
are identical to the Warrants underlying the units offered in the initial public offering except that such Warrants will be exercisable
for cash or on a cashless basis, at the holder&rsquo;s option, and will not be redeemable by FF, in each case so long as they are still
held by the PSAC Sponsor or its permitted transferees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">FF may call the Warrants for redemption (excluding
the Private Warrants and any Warrants underlying additional units issued to the PSAC Sponsor, PSAC&rsquo;s officers, directors or their
affiliates in payment of working capital loans made to PSAC), in whole and not in part, at a price of $0.01 per Warrant,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">at any time while the Warrants are exercisable;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 60pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">upon not less than 30&nbsp;days&rsquo; prior written notice of redemption to each Warrant holder;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 60pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">if, and only if, the reported last sale price of the shares of Class A Common Stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 trading day period commencing at any time after the Warrants become exercisable and ending on the third business day prior to the notice of redemption to Warrant holders; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 60pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">if, and only if, there is a current registration statement in effect with respect to the shares underlying such Warrants.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The right to exercise will be forfeited unless
the Warrants are exercised prior to the date specified in the notice of redemption. On and after the redemption date, a record holder
of a Warrant will have no further rights except to receive the redemption price for such holder&rsquo;s Warrant upon surrender of such
Warrant.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If FF calls the Warrants for redemption as described
above, its management will have the option to require all holders that wish to exercise Warrants to do so on a &ldquo;cashless basis.&rdquo;
In such event, each holder would pay the exercise price by surrendering the Warrants for that number of shares of Class A Common Stock
equal to the quotient obtained by dividing (x)&nbsp;the product of the number of shares of Class A Common Stock underlying the Warrants,
multiplied by the difference between the exercise price of the Warrants and the &ldquo;fair market value&rdquo; (defined below) by (y)&nbsp;the
fair market value. The &ldquo;fair market value&rdquo; shall mean the average reported last sale price of the shares of Class A Common
Stock for the five trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders
of Warrants.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The exercise price and number of shares of Class
A Common Stock issuable on exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend,
extraordinary dividend or FF&rsquo;s recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted
for issuances of shares of Class A Common Stock at a price below their respective exercise prices.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Warrants may be exercised upon surrender of
the Warrant certificate on or prior to the expiration date at the offices of the Warrant agent, with the exercise form on the reverse
side of the Warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price, by certified or
official bank check payable to us, for the number of Warrants being exercised. The Warrant holders do not have the rights or privileges
of holders of shares of Class A Common Stock and any voting rights until they exercise their Warrants and receive shares of Class A Common
Stock. After the issuance of shares of Class A Common Stock upon exercise of the Warrants, each holder will be entitled to one vote for
each share held of record on all matters to be voted on by stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Warrant holders may elect to be subject to a restriction
on the exercise of their Warrants such that an electing Warrant holder would not be able to exercise their Warrants to the extent that,
after giving effect to such exercise, such holder would beneficially own in excess of 9.8% of the shares of Class A Common Stock outstanding.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">No fractional shares will be issued upon exercise
of the Warrants. If, upon exercise of the Warrants, a holder would be entitled to receive a fractional interest in a share, FF will, upon
exercise, round up to the nearest whole number of shares of Class A Common Stock to be issued to the Warrant holder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0pt; margin-bottom: 0pt"><I>Ares NPA Warrants</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On August 5, 2021, the Company entered into certain Note Purchase Agreement (&ldquo;Note Agreement&rdquo;) with Ares
Capital Corporation and its affiliates (&ldquo;Ares&rdquo;). Pursuant to the Note Agreement, the Company issued warrants (&ldquo;Ares NPA Warrants&rdquo;)
to Ares, totaling 670,092 warrants with an exercise price equals to $10 per share. Pursuant to an anti-dilution provision in the Note
Agreement, Ares shall receive additional warrants as a result of subsequent stock issuance events, such as the pre-existing SPA and the
SPA. As of December 31, 2023, the number of shares underlying the Ares NPA Warrants amounted to 228,482 (post all reverse stock splits).
Following a new $30 million offering on September 5, 2024, the total Ares NPA Warrants increased to 1,278,802. The warrant adjustments
are calculated based on a specific formula outlined in the agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Pre-existing SPA Warrants and Pre-existing SPA Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On August 14, 2022, FFIE entered into a Securities Purchase Agreement
(the &ldquo;Pre-existing SPA&rdquo;) with FF Simplicity, in its capacity as administrative agent and collateral agent (in such capacity,
the &ldquo;Agent&rdquo;), and certain purchasers including FF Simplicity and RAAJJ (collectively with additional purchasers from time
to time party thereto, the &ldquo;Purchasers&rdquo;), to issue and sell: $27.0 million aggregate principal amount of FFIE&rsquo;s senior
secured convertible notes (the &ldquo;Initial Bridge Notes&rdquo;); $10.0 million in aggregate principal amount of FFIE&rsquo;s senior
secured convertible notes (the &ldquo;Second Bridge Notes&rdquo;) on the 20th business day following the closing of the Initial Bridge
Notes, subject to certain closing conditions; and $15.0 million in aggregate principal amount of FFIE&rsquo;s senior secured convertible
notes (the &ldquo;Third Bridge Notes&rdquo; and with the Initial Bridge Notes and the Second Bridge Notes, the &ldquo;Bridge Notes&rdquo;)
on or prior to October 11, 2022, subject to certain closing conditions. Under the Pre-existing SPA (as amended by the Pre-existing SPA
Amendment), FFIE is permitted to obtain incremental senior secured convertible notes in an aggregate principal amount of $243.0 million
within 90 days after the closing of the Initial Bridge Notes (the &ldquo;Pre-existing Incremental Notes&rdquo; and together with the Bridge
Notes, the &ldquo;Pre-existing SPA Notes&rdquo;). Each of the exercise prices and conversion prices disclosed herein refer to the original
exercise prices and conversion prices of the Pre-existing SPA Warrants and Pre-existing SPA Notes, respectively, without taking into account
subsequent reverse stock splits. FFIE is in active discussions with several potential additional Purchasers of the Pre-existing SPA Notes
and other debt and equity investments in FFIE, but there is no assurance that any additional Pre-existing SPA Notes will be issued under
the Pre-existing SPA. Additionally, certain investors under the Pre-existing SPA may not fund their commitments until the Company increases
the number of authorized shares of its Class A Common Stock and registers the securities underlying the Pre-existing SPA Warrants and
Pre-existing SPA Notes in an effective registration statement. The Pre-existing SPA Notes are subject to an original issue discount of
10%, and were originally convertible into shares of Class A Common Stock at various conversion prices between $0.2275 and $1.05 per share,
plus an interest make-whole amount as set forth in the Pre-existing SPA and the Pre-existing SPA Notes, subject to customary adjustments,
including (1) full ratchet anti-dilution price protection (provided that, pursuant to the Fourth Amendment, the effective conversion price
for any such interest make-whole amount payable in shares of Class A Common Stock must not be lower than $0.21, and any such interest
make-whole amount can only be paid in shares of Class A Common Stock if certain price and volume requirements of Class A Common Stock
are met) (2) exercise price adjustments pursuant to subsequent events, including reverse stock split, and subsequent financings with lower
exercise and conversion prices and (3) customary waivers agreed upon between the holders and the Company. The shares of Class A Common
Stock issuable upon conversion of the Pre-existing SPA Notes are not transferable for six months without the prior written consent of
FFIE (which consent shall not be unreasonably withheld). On August 16, 2022, the Company received the $27.0 million aggregate principal
amount of the Initial Bridge Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Pre-existing SPA Notes are secured by the grant
of a first priority perfected lien upon substantially all of the personal and real property of FFIE and its subsidiaries, as well as guaranty
by substantially all of FFIE&rsquo;s domestic subsidiaries. The Pre-existing SPA Notes mature on October 27, 2028 or earlier under certain
conditions set forth in the Pre-existing SPA. The Pre-existing SPA Notes accrue interest at 10% per annum, provided that, subject to certain
conditions set forth in the Pre-existing SPA, FFIE may elect to pay such interest in shares of Class A Common Stock if FFIE also pays
the Purchasers an additional cash interest payment equal to 5% per annum. Except in the case of a mandatory prepayment pursuant to the
Pre-existing SPA, if any of the Pre-existing SPA Notes are prepaid, repaid, reduced, refinanced, or replaced in whole or in part prior
to the October 27, 2028 maturity date, then FFIE shall pay to the Purchaser a &ldquo;Premium Percentage&rdquo; in an amount ranging from
0% to 10% of the principal amount of such Note(s) determined in accordance with a schedule set forth in the Pre-existing SPA. Pursuant
to the Pre-existing SPA, each Purchaser that then owns at least $25.0 million principal amount of Pre-existing SPA Notes (when aggregated
with any affiliates of such Purchaser) shall have customary preemptive rights to participate in any future financing by FFIE as provided
in the Pre-existing SPA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a closing condition under the Pre-existing SPA
for funding of each of the Bridge Notes, FFIE is required to deliver to each of the Purchasers a Pre-existing SPA Warrant registered in
the name of such Purchaser to purchase up to a number of shares of Class A Common Stock equal to 33% of such shares issuable to such Purchaser
upon conversion of the Note, with an exercise price equal to $5.00 per share, subject to customary full ratchet anti-dilution price protection
and other adjustments, and are exercisable for seven years on a cash or cashless basis. FFIE may repurchase the Pre-existing SPA Warrants
for $0.01 per Pre-existing SPA Warrant share if and to the extent the volume weighted average prices of the Class A Common Stock during
20 of out 30 trading days prior to the repurchase is greater than $15.00 per share, subject to certain additional conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, under the Pre-existing SPA, the funding
of each of the Bridge Notes is subject to the satisfaction of the following closing conditions: (a) FFIE shall have duly honored all conversions
and redemptions scheduled to occur or occurring by virtue of one or more Notices of Conversion of the Purchaser pursuant to the Pre-existing
SPA Notes, if any, (b) FFIE shall have paid all liquidated damages and other amounts owing to a Purchaser in respect of the transaction
documents pursuant to the Pre-existing SPA, (c) FFIE shall have satisfied the current public information requirements under Rule 144 under
the Securities Act of 1933 on the applicable closing date, or on the applicable closing date there is an effective registration statement
pursuant to which the holder is permitted to utilize the prospectus thereunder to resell all of the shares of Class A Common Stock issuable
pursuant to the Pre-existing SPA, (d) FFIE&rsquo;s shares of Common Stock are trading on a trading market and all of the shares issuable
pursuant to the transaction documents under the Pre-existing SPA are listed or quoted for trading on such trading market, and FFIE believes
such trading will continue uninterrupted for the foreseeable future, (e) there is a sufficient number of authorized but unissued and otherwise
unreserved shares of Common Stock for the issuance of all of the shares then issuable pursuant to the transaction documents under the
Pre-existing SPA, (f) there is no existing event of default as defined in the Pre-existing SPA and no existing event which, with the passage
of time or the giving of notice, would constitute such an event of default, and (g) the applicable Purchaser is not in possession of any
information provided by FFIE, or any of its subsidiaries, or any of their officers, directors, employees, agents or affiliates, that constitutes,
or may constitute, material non-public information. Each Purchaser has the option, from time to time for 12 months after the effective
date of the abovementioned registration statement, to purchase additional senior secured convertible notes and Pre-existing SPA Warrants
of FFIE on the same terms as the Incremental Notes in an aggregate amount not to exceed the initial principal amount of the Bridge Notes
and Incremental Notes issued to such Purchaser (the &ldquo;Tranche B Notes&rdquo;), subject to certain conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Pre-existing SPA, FFIE has agreed
to use commercially reasonable efforts to hold a special meeting of stockholders to obtain stockholder approval, as is required by the
Nasdaq listing rules, with respect to the issuance of any shares of Class A Common Stock in excess of 19.99% of the issued and outstanding
shares of the Class A Common Stock upon conversion of the Pre-existing SPA Notes and exercise of the Pre-existing SPA Warrants being issued
to the Purchasers pursuant to the Pre-existing SPA. At a special meeting of FFIE stockholders held on November 3, 2022, FFIE stockholders
approved such issuance under the Nasdaq listing rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 23, 2022, the Pre-existing SPA was
amended pursuant to Amendment No. 1 to the Pre-existing SPA and Convertible Senior Secured Promissory Notes (the &ldquo;Pre-existing SPA
Amendment&rdquo;), pursuant to which, the Purchasers agreed to accelerate such funding obligations, with $7.5 million aggregate principal
amount of such notes (the &ldquo;Third Bridge Notes&rdquo;) being funded and issued on September 23, 2022, and the remaining $7.5 million
aggregate principal amount (the &ldquo;Fourth Bridge Notes&rdquo;) being funded and issued on October 11, 2022. The Purchasers also agreed
under the Pre-existing SPA Amendment to purchase an additional $5.0 million in aggregate principal amount of FFIE&rsquo;s senior secured
convertible notes (the &ldquo;Fifth Bridge Notes&rdquo; and together with the Third Bridge Notes and Fourth Bridge Notes, the &ldquo;Additional
Bridge Notes&rdquo;) upon the filing by FFIE of an amendment to FFIE&rsquo;s registration statement on Form S-1 (File No. 333-258993),
subject to certain closing conditions; however, the commitment to purchase the Fifth Bridge Notes automatically terminated upon the funding
of the initial $10.0 million tranche of Pre-existing SPA Notes to Senyun, which occurred on October 27, 2022. The Additional Bridge Notes
were originally convertible into shares of Class A Common Stock at a conversion price equal to $1.05, mature on October 27, 2028 (or earlier
under certain conditions set forth in the Pre-existing SPA) and are otherwise subject to the same terms and conditions disclosed by FFIE
in the Pre-existing SPA as applicable to the Notes and Bridge Notes described therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As a closing condition under the Pre-existing SPA
Amendment for funding of each of the Additional Bridge Notes, FFIE is required to deliver to each of the Purchasers a Pre-existing SPA
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Class A Common Stock equal to 33% of such shares
(except for the Fifth Bridge Notes, which shall equal 100% of such shares) issuable to such Purchaser upon conversion of the Note, with
an exercise price equal to $5.00 per share, subject to full ratchet anti-dilution price protection and other adjustments, and are exercisable
for seven years on a cash or cashless basis. FFIE may repurchase the Pre-existing SPA Warrants for $0.01 per warrant share if and to the
extent the volume weighted average prices of FFIE&rsquo;s Class A Common Stock during 20 of out 30 trading days prior to the repurchase
is greater than $15.00 per share, subject to certain additional conditions. On September 23, 2022, FFIE issued a Pre-existing SPA Warrant
to the Purchaser exercisable for 920,074 shares of Class A Common Stock, concurrent with the funding of the $7.5 million Third Bridge
Notes commitment, and on October 11, 2022, FFIE issued a Pre-existing SPA Warrant to the Purchaser exercisable for 2,357,142 shares of
Class A Common Stock, concurrent with the funding of the $7.5 million Fourth Bridge Notes commitment. Additionally, the Pre-existing SPA
Amendment has removed the 6-month lock-up period that otherwise applies to the Existing FSV Convertible Note, reduced the conversion price
of the Existing FSV Convertible Note to $1.05, reduced the lock-up period that otherwise applies to the Existing Second Bridge Note from
6 months to 3 months and similarly reduced the lock-up period that otherwise applies to each Third Bridge Note, Fourth Bridge Note, Fifth
Bridge Note, and other Incremental Note from 6 months to 3 months. The Pre-existing SPA Amendment also provides that the Existing Notes
will be secured by the grant of a second lien upon substantially all of the personal and real property of FFIE and its subsidiaries, as
well as guaranty by substantially all of FFIE&rsquo;s domestic subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">As additional consideration for the Agent&rsquo;s
entering into the Pre-existing SPA Amendment, FFIE has also issued to the Agent a warrant to purchase 10 shares of Class A Common Stock
(the &ldquo;Adjustment Warrant&rdquo;). The terms of the Adjustment Warrants are the same as the Pre-existing SPA Warrants described above,
except that the Adjustment Warrant (i) has an exercise price equal to $0.50 per share and (ii) does not have the optional repurchase provision
described above if stock trades above $15.00 per share. The full ratchet anti-dilution price provision in the Pre-existing SPA Warrants
held as of the date of the Pre-existing SPA Amendment by the ATW Investors was waived in connection with the Adjustment Warrant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On September 25, 2022, FFIE entered into a Joinder
and Amendment Agreement to the Pre-existing SPA (the &ldquo;Joinder&rdquo;) with Senyun, the agent, as administrative agent, collateral
agent, and Purchaser, FF Simplicity and RAAJJ, pursuant to which the Senyun agreed to purchase incremental notes under the Pre-existing
SPA in an aggregate principal amount of up to $60.0 million in certain installments. Pursuant to the Joinder, Senyun has all of the same
rights and obligations as a Purchaser under the Pre-existing SPA and all documents, instruments and agreements contemplated therein or
thereby (collectively, and together with the Joinder, the &ldquo;Financing Documents&rdquo;). In addition to Senyun&rsquo;s commitment
as set forth in the Joinder, the Joinder effectuated certain other amendments to the Pre-existing SPA, including, among other things,
permitting the Pre-existing SPA Notes to be funded in accordance with the Joinder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On October 24, 2022, FFIE entered into a Limited
Consent and Third Amendment to the Pre-existing SPA (the &ldquo;Third Amendment&rdquo;) with FF Simplicity as administrative and collateral
agent and purchaser, Senyun as purchaser, and RAAJJ as purchaser, pursuant to which the maturity date for the Pre-existing SPA Notes was
extended from August 14, 2026 to October 27, 2028 (<I>i.e.</I>, the sixth anniversary of the first funding date of Senyun&rsquo;s purchase
of Pre-existing SPA Notes (the &ldquo;First Senyun Funding Date&rdquo;)) or such earlier date that the Pre-existing SPA Notes become due
and payable pursuant to the Pre-existing SPA (the &ldquo;Maturity Date Extension&rdquo;). As a result of the Maturity Date Extension,
the total number of shares of Class A Common Stock issuable under the Pre-existing SPA is increased as compared to such number of shares
issuable under the Pre-existing SPA prior to the Third Amendment. The Maturity Date Extension increases the interest make-whole amount
as set forth in the Pre-existing SPA and the Pre-existing SPA Notes payable upon conversion of the Pre-existing SPA Notes, as such interest
make-whole amount includes all interest that would otherwise accrue on the Pre-existing SPA Notes if such Pre-existing SPA Notes were
held until the October 27, 2028 maturity date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As revised under the Third Amendment, Senyun has
agreed to acquire Notes from FFIE according to the following schedule: (a) $10.0 million in principal amount of Notes on the First Senyun
Funding Date; (b) $10.0 million in principal amount of Notes on a date that is no later than the later of (x) 14 business days after the
First Senyun Funding Date and (y) the receipt of approval of FFIE&rsquo;s stockholders under the applicable rules and regulations of Nasdaq
of the issuance of all of the shares of Class A Common Stock underlying the various convertible notes and warrants of the Company issued
and issuable pursuant to the Financing Documents in excess of 19.99% of the issued and outstanding shares of FFIE Class A Common Stock
(the &ldquo;Stockholder Approval&rdquo;), which Stockholder Approval was obtained on November 3, 2022, and which was funded on November
15, 2022; (c) $10.0 million in principal amount of Notes on a date that is no later than 15 business days after the later of (x) the effective
date of FFIE&rsquo;s registration statement on Form S-1 (File No. 333-258993), which registration statement was declared effective by
the SEC on February 8, 2023, and (y) receipt of the Stockholder Approval, and which was funded on different dates in December 2022; (d)
$10.0 million in principal amount of Notes within 30 business days after the later of (x) the effective date of the above noted Form S-1
and (y) receipt of the Stockholder Approval; and (e) $20.0 million in principal amount of Notes on a date that is no later than 10 business
days after the latest of (x) official delivery of the Company&rsquo;s FF 91 vehicle to the first batch of bona fide customers is made,
(y) the effective date of the above noted Form S-1 and (z) receipt of the Stockholder Approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, pursuant to the Third Amendment, each
Purchaser and the Agent waived certain defaults and events of default under the Financing Documents arising from (i) any amounts owed
as of the First Senyun Funding Date by FFIE or its subsidiaries to their respective trade counterparties, suppliers, vendors or, in each
case, other similar counterparties, that remain unpaid after the First Senyun Funding Date, (ii) any reduction in the workforce of FFIE
or its subsidiaries or any additional reduction in such workforce that occurs after September 23, 2022, and/or (iii) any reasonably foreseeable
consequence in respect of any of the foregoing clauses (i) or (ii).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On November 8, 2022, FFIE entered into a Limited
Consent and Amendment to the Pre-existing SPA (the &ldquo;Fourth Amendment&rdquo;) with FF Simplicity as administrative and collateral
agent and purchaser, Senyun as purchaser, and RAAJJ as purchaser, pursuant to which the parties agreed that (i) in no event will the effective
conversion price of any interest or interest make-whole amount payable in shares of Class A Common Stock in respect of Pre-existing SPA
Notes issued or issuable under the Pre-existing SPA be lower than $0.21 per share of Class A Common Stock, and (ii) in order for the Company
to make payment of any interest or interest make-whole amount in shares of Class A Common Stock, certain price and volume requirements
must be met, namely that (x) the VWAP of the Class A Common Stock is not less than $0.21 per share on any trading day during the preceding
seven trading day period, and (y) the total volume of the Class A Common Stock does not drop below $1.5 million on any trading day during
the same period (in each case, as adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar
transactions). On different dates in December 2022, Senyun funded aggregated amounts of $10.0 million in gross proceeds pursuant to the
Joinder. The Company received $9.0 million from such funding, net of original issue discount and transaction costs.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On December 28, 2022, FFIE entered into a Letter
Agreement and Amendment to the Pre-existing SPA (the &ldquo;Senyun Amendment&rdquo;) with FF Simplicity as administrative and collateral
agent and Senyun as purchaser, pursuant to which Senyun paid to the Company the first $4.0 million of its fourth funding tranche under
the Pre-existing SPA on January 3, 2023, as well as $2.0 million on January 6, 2023 and $4.0 million on January 18, 2023. In addition
to an amount of $60.0 million already committed by Senyun as part of the Joinder, pursuant to the Senyun Amendment, the Company has agreed
to issue and sell to Senyun, subject to the satisfaction of certain conditions (which include agreement by FFIE and Senyun on the terms
and conditions of the investment), incremental Pre-existing SPA Notes in an aggregate principal amount of $30.0 million: (i) $10.0 million
in principal amount of additional Pre-existing SPA Notes no later than January 31, 2023; (ii) $10.0 million in principal amount of additional
Pre-existing SPA Notes no later than February 28, 2023; and (iii) $10.0 million in principal amount of additional Pre-existing SPA Notes
no later than March 15, 2023. Pursuant to the Senyun Amendment, the Company has also approved the issuance to Senyun of such number of
shares of Class A Common Stock equal to the difference between (x) the actual number of shares of Class A Common Stock previously issued
to Senyun upon conversion of $19.0 million in principal amount of Pre-existing SPA Notes and (y) the number of such shares of Class A
Common Stock that would have been issued to Senyun had the conversion price applicable to such Pre-existing SPA Notes been $0.8925, taking
into account any beneficial ownership limitation applicable to Senyun.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On January 25, 2023, FFIE entered into a Limited
Consent and Amendment No. 5 to the Pre-existing SPA (the &ldquo;Fifth Amendment&rdquo;) with FF Simplicity as administrative and collateral
agent and Senyun as purchaser, pursuant to which Senyun agreed to purchase $10.0 million in principal amount of additional Pre-existing
SPA Notes no later than January 27, 2023, which $10.0 million amount was funded on January 26, 2023. Pursuant to the Fifth Amendment,
FFIE also agreed (a) to use commercially reasonable efforts to file an amendment to the registration statement on Form S-1 (File No. 333-268972)
no later than January 29, 2023 and to seek effectiveness of this registration statement on or prior to February 10, 2023, which registration
statement was declared effective by the SEC on February 8, 2023; (b) to use commercially reasonable efforts to file an additional registration
statement on Form S-1 registering the re-sale by Senyun of all remaining shares of Class A Common Stock underlying Senyun&rsquo;s SPA
Notes and SPA Warrants no later than February 10, 2023, which registration statement on Form S-1 (File No. 333-269729) was filed with
the SEC on February 13, 2023, and to seek effectiveness of such additional registration statement as promptly as practicable thereafter
(which registration statement was declared effective by the SEC on March 22, 2023); (c) to honor the conversion notice submitted by Senyun
on January 18, 2023, and to reserve sufficient shares of Class A Common Stock to satisfy the conversion and exercise of all of Senyun&rsquo;s
SPA Notes and SPA Warrants to the extent FFIE has sufficient authorized but unissued or uncommitted shares of Class A Common Stock. Additionally,
pursuant to the Fifth Amendment, FFIE and Senyun agreed to use commercially reasonable efforts to enter into definitive documentation
as promptly as practicable after the date of the Fifth Amendment, in connection with restructuring of the Pre-existing SPA Notes and Pre-existing
SPA Warrants and an additional investment as set forth on the term sheets attached to the Fifth Amendment, which definitive documentation
was executed in connection with the Sixth Amendment.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On February 3, 2023, FFIE entered into an Amendment
No. 6 to Securities Purchase Agreement (The &ldquo;Sixth Amendment&rdquo;) with FF Simplicity as administrative and collateral agent and
Senyun, FF Top, FF Simplicity, FF Prosperity, Acuitas and other purchasers, pursuant to which the purchasers thereunder agreed to purchase
up to $135.0 million (including $10.0 million previously funded by Senyun as an advanced payment) in aggregate principal amount of FFIE&rsquo;s
senior secured convertible notes (such additional Pre-existing SPA Notes, the &ldquo;Tranche C Notes&rdquo;) in accordance with the schedule
set forth in the Pre-existing SPA as follows, subject to certain conditions: (i) for Senyun, (A) no later than three business days after
the effective date of the Sixth Amendment, the purchase and issuance of $25.0 million in principal amount of Tranche C Notes (which principal
amount shall be reduced on a dollar-for-dollar basis by the $10.0 million previously funded by Senyun as an advanced payment) shall take
place, pursuant to which, on February 9, 2023 and February 10, 2023, FFIE received aggregate gross proceeds of $15.0 million; (B) no later
than ten business days after the effective date of the Sixth Amendment, the purchase and issuance of $25.0 million in principal amount
of Tranche C Notes shall take place, pursuant to which, on February 23, 2023, March 3, 2023, March 9, 2023 and March 10, 2023, the Company
received aggregate gross proceeds of $25.0 million; and (C) no later than five business days after receipt of (a) approval by FFIE stockholders
of an increase in number of authorized shares of Class A Common Stock to 1,690,000,000 (which approval was obtained during the special
meeting of stockholders held on February 28, 2023) and filing of an amendment to the Amended and Restated Charter to reflect such increase
in authorized shares (which amendment was filed with the Secretary of State of the State of Delaware on March 1, 2023), (b) approval by
FFIE stockholders as may be required by applicable Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which
approval was obtained during the special meeting of stockholders held on March 30, 2023), and (c) effectiveness of a registration statement
on Form S-1 (File No. 333-269729) registering the shares issuable under the Sixth Amendment (which registration statement was declared
effective by the SEC on March 22, 2023), the purchase and issuance of $25.0 million in principal amount of Tranche C Notes shall take
place; and (ii) for each other purchaser, (A) no later than three business days after the effective date of the Sixth Amendment, the purchase
and issuance of an aggregate principal amount of Tranche C Notes equal to 50% of such purchaser&rsquo;s commitment in respect of Tranche
C Notes as indicated on the commitment schedule in the Pre-existing SPA shall take place, pursuant to which, on February 8, 2023, FFIE
received aggregate gross proceeds of $30.0 million; and (B) no later than five business days after receipt of (a) approval by FFIE stockholders
of an increase in number of authorized shares of Class A Common Stock to 1,690,000,000 (which approval was obtained during the special
meeting of stockholders held on February 28, 2023) and filing of an amendment to the Amended and Restated Charter to reflect such increase
in authorized shares (which amendment was filed with the Secretary of State of the State of Delaware on March 1, 2023), (b) approval by
FFIE stockholders as may be required by applicable Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which
approval was obtained during the special meeting of stockholders held on March 30, 2023), and (c) effectiveness of a registration statement
on Form S-1 (File No. 333-269729) registering the shares issuable under the Sixth Amendment (which registration statement was declared
effective by the SEC on March 22, 2023), subject to the purchase and issuance of the remaining aggregate principal amount of the Tranche
C Notes equal to 50% of such purchaser&rsquo;s commitment in respect of Tranche C Notes as indicated on the commitment schedule in the
Pre-existing SPA shall take place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The funding of the Tranche C Notes are subject
to the following conditions precedent: (i) with respect to each Tranche C funding following the initial funding made within three business
days of the effective date of the Sixth Amendment, delivery by FFIE of a notice identifying the business day of the purchase and issuance
of such Tranche C Notes, which date is to be no earlier than two business days and no later than ten business days after the date of such
notice; (ii) delivery by FFIE of a warrant registered in the name of such purchaser to purchase up to a number of shares of Class A Common
Stock equal to 33% of such purchaser&rsquo;s conversion shares on the applicable closing date, with an exercise price equal to $1.05 per
share, subject to full ratchet anti-dilution price protection and other adjustments as set forth therein and a seven year termination
date; (iii) delivery by FFIE to such purchaser of the applicable Tranche C Note; (iv) subject to certain waivers as described in the Pre-existing
SPA, there being no default or event of default; (v) payment by FFIE of all legal fees and other transaction expenses incurred by purchasers
up to $0.15 million (or $0.3 million in the case of Senyun and FF Simplicity) in the aggregate, which fees and expenses can be paid by,
at FFIE&rsquo;s option, net funding of the applicable Tranche C Notes; and (vi) that the representations and warranties contained in the
related financing agreement are true and correct in all material respects as of the applicable closing dates, as set forth therein.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Tranche C Notes originally had a $1.05 base
conversion price subject to full ratchet anti-dilution price protection and other adjustments as set forth therein, five year interest
make-whole (calculated using the greater of (x) $0.21 per share of Class A Common Stock and (y) 90% of the lowest VWAP for the 5 consecutive
trading days ending on the trading day that is immediately prior to the date on which interest is paid in shares of Class A Common Stock),
10% per annum interest rate (or 15% if paid in Class A Common Stock subject to certain conditions). The Tranche C Notes and the Tranche
D Notes (as defined below) and Pre-existing SPA Warrants are subject to a pro rata cap on conversion or exercise (as applicable) equal
to 19.99% of FFIE&rsquo;s Class A Common Stock and Class B Common Stock as of the date of the Sixth Amendment until receipt of approval
by FFIE stockholders as may be required by applicable Nasdaq rules with respect to such conversion or exercise (which approval was obtained
during the special meeting of stockholders held on March 30, 2023), including the issuance of any shares of Class A Common Stock or Class
B Common Stock in excess of 19.99% of FFIE&rsquo;s Class A Common Stock and Class B Common Stock as of the date of the Sixth Amendment.
All of the Notes and Warrants (and the Exchange Notes described below) are subject to restrictions on conversion or exercise (other than
an Initial Reserve of 63,051,933 shares of Class A Common Stock for FF Simplicity and 18,857,143 shares of Class A Common Stock for Senyun)
until the approval by FFIE stockholders of an increase in number of authorized shares of Class A Common Stock to 1,690,000,000 (which
approval was obtained during the special meeting of stockholders held on February 28, 2023), and the right for purchasers to receive additional
warrant shares upon a down round financing has also been removed from all Pre-existing SPA Warrants. FFIE is required to use reasonable
best efforts to file a registration statement with respect to the resale of the shares of Class A Common Stock underlying the Pre-existing
SPA Notes and Pre-existing SPA Warrants on or prior to February 10, 2023, which registration statement on Form S-1 (File No. 333-269729)
was filed with the SEC on February 13, 2023, and to seek effectiveness of such registration statement within 90 days (which registration
statement was declared effective by the SEC on March 22, 2023), and FFIE is required to seek effectiveness of the registration statement
on Form S-1 (File No. 333-268972) on or prior to February 10, 2023 (which registration statement was declared effective by the SEC on
February 8, 2023). FFIE is also required to use reasonable best efforts to obtain approval by FFIE stockholders of an increase in number
of authorized shares of Class A Common Stock to 1,690,000,000 (which approval was obtained during the special meeting of stockholders
held on February 28, 2023) within 45 days (or 60 days if necessary) and approval by FFIE stockholders as may be required by applicable
Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which approval was obtained during the special meeting
of stockholders held on March 30, 2023), including the issuance of any shares of Class A Common Stock or Class B Common Stock in excess
of 19.99% of FFIE&rsquo;s Class A Common Stock and Class B Common Stock as of the date of the Sixth Amendment within 60 days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Each purchaser also has the option to purchase
a certain amount of additional Pre-existing SPA Notes and Pre-existing SPA Warrants from time to time for twelve months from the effective
date of the Sixth Amendment, as set forth in the Pre-existing SPA (such additional Pre-existing SPA Notes, the &ldquo;Tranche D Notes&rdquo;).
Additionally, pursuant to the Sixth Amendment, (A) FF Simplicity and Senyun agreed that, with respect to their allotments of previous
commitments to purchase SPA Notes, no more than the following percentages of their allotment may be purchased on or before the following
dates without the prior written consent of FFIE: (i) 100% on or before February 10, 2023; (ii) 90% on or before February 28, 2023; (iii)
80% on or before March 24, 2023; (iv) 70% on or before April 21, 2023; and (v) 60% after April 21, 2023 through and including the twenty-fourth
month from the effective date of the Sixth Amendment, and (B) certain Pre-existing SPA Notes issued to FF Simplicity with an aggregate
outstanding principal amount of $21.6 million and certain Pre-existing SPA Notes issued to Senyun with an aggregate principal amount of
$9.4 million were replaced by new replacement notes with a $0.8925 base conversion price subject to full ratchet anti-dilution price protection
and other adjustments as set forth therein, six-year interest make-whole, and otherwise on similar terms as the previously issued Pre-existing
SPA Notes.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the Sixth Amendment and the Exchange
Agreements entered into concurrently therewith between FFIE, one the one hand, and holders of ATW NPA Warrants and Pre-existing SPA Warrants,
on the other hand (collectively, the &ldquo;Exchange Agreements&rdquo;), (i) the provision under the ATW NPA Warrants and Pre-existing
SPA Warrants then-issued that allowed investors to receive the right to purchase additional shares in connection with down round financings
was removed, (ii) the ATW NPA Warrants and FF Simplicity&rsquo;s Pre-existing SPA Warrants then issued, exercisable for an aggregate of
198,129,990 shares of Class A Common Stock, were exchanged for a combination of new warrants, exercisable at $0.2275 per share subject
to full ratchet anti-dilution price protection and other adjustments, for an aggregate of 42,489,346 shares of Class A Common Stock and
new senior secured convertible notes with aggregate principal amount of $25.0 million, and (ii) Senyun&rsquo;s Pre-existing SPA Warrants
then issued, exercisable for an aggregate amount of 276,270,842 shares of Class A Common Stock, were exchanged for a combination of new
warrants, each exercisable at $0.2275 per share subject to full ratchet anti-dilution price protection and other adjustments, for an aggregate
of 48,000,000 shares of Class A Common Stock and new senior secured convertible notes with aggregate principal amount of $16.0 million
(collectively with the notes issued pursuant to clause (ii), the &ldquo;Exchange Notes&rdquo;). The Exchange Notes are convertible at
a conversion rate calculated at the lesser of (a) 90% of the VWAP for the trading day that is immediately prior to the date on which interest
is paid in shares of Class A Common Stock or (b) the greater of (x) $0.21 per share of Class A Common Stock and (y) 90% of the average
VWAP for the 5 consecutive trading days ending on the trading day that is immediately prior to the date on which interest is paid in shares
of Class A Common Stock. The Exchange Notes will constitute Pre-existing SPA Notes, except: (i) the holders thereof do not have the option
under the Pre-existing SPA to purchase certain additional Pre-existing SPA Notes within 24 months from the effective date of the Sixth
Amendment; (ii) such notes are not subject to any prepayment premium or penalty applicable to other Pre-existing SPA Notes; (iii) such
notes are not subject to an original discount of 10%; and (iv) such notes are not entitled to the most favorable terms granted to other
Pre-existing SPA Notes purchased simultaneously or after the purchase of such notes. Such notes are prepayable and redeemable at par at
any time by FFIE upon fifteen days&rsquo; prior written notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 23, 2023, FFIE entered into an Amendment
No. 7 to Securities Purchase Agreement (&ldquo;Seventh Amendment&rdquo;) with FF Simplicity, as administrative agent, collateral agent
and purchaser, Senyun, as purchaser, and FF Prosperity, a Delaware limited liability company, as purchaser, pursuant to which FFIE, Senyun,
FF Prosperity and FF Simplicity agreed to amend the funding timeline of certain Tranche C Notes, and FF Simplicity agreed to purchase
additional notes under the Pre-existing SPA. Under the amended funding timeline, (i) Senyun agreed to purchase (a) $10.0 million in principal
amount of Tranche C Notes (amended to include an additional original issue discount of four percent (4%), which additional original issue
discount shall not impact the interest make-whole amount, as set forth in the Pre-existing SPA, in such Tranche C Notes) no later than
one business day (amended from five business days) after the effectiveness of FFIE&rsquo;s registration statement on Form S-1 (File No.
333-269729) (which registration statement was declared effective by the SEC on March 22, 2023) and receipt of approval by FFIE stockholders
as may be required by applicable Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which approval was
obtained during the special meeting of stockholders held on March 30, 2023), subject to the filing by FFIE of a current report on Form
8-K disclosing such stockholder approval, and (b) $15.0 million in principal amount of Tranche C Notes no later than five business days
after the effectiveness of FFIE&rsquo;s registration statement on Form S-1 (File No. 333-269729) (which registration statement was declared
effective by the SEC on March 22, 2023) and receipt of approval by FFIE stockholders as may be required by applicable Nasdaq rules with
respect to transactions contemplated under the Sixth Amendment (which approval was obtained during the special meeting of stockholders
held on March 30, 2023), and (ii) FF Prosperity agreed to purchase the remaining aggregate principal amount of the Tranche C Notes equal
to 50% of FF Prosperity&rsquo;s commitment in respect of Tranche C Notes (amended to include an additional original issue discount of
four percent (4%), which additional original issue discount shall not impact the interest make-whole amount, as set forth in the Pre-existing
SPA, in such Tranche C Notes) no later than one business day (amended from five business days) after the effectiveness of FFIE&rsquo;s
registration statement on Form S-1 (File No. 333-269729) (which registration statement was declared effective by the SEC on March 22,
2023) and receipt of approval by FFIE stockholders as may be required by applicable Nasdaq rules with respect to transactions contemplated
under the Sixth Amendment (which approval was obtained during the special meeting of stockholders held on March 30, 2023), subject to
the filing by FFIE of a current report on Form 8-K disclosing such stockholder approval. FF Simplicity further agreed to purchase, on
or prior to March 27, 2023, $5.0 million in principal amount of Tranche B Notes subject to an additional original issue discount of six
percent (6%) (which additional original issue discount shall not impact the interest make-whole amount, as set forth in the Pre-existing
SPA, in such Tranche B Notes). Such notes were originally permitted to be purchased on or prior to April 21, 2023. FFIE also agreed to
reimburse each of Senyun and FF Simplicity up to $0.02 million each for reasonable and documented out-of-pocket legal expenses incurred
in connection with the Seventh Amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 8, 2023, FFIE entered into an Amendment
No. 8 to Securities Purchase Agreement with Senyun as purchaser, and, on May 9, 2023, FFIE entered into an Amendment to ATW Notes and
Warrants with FF Simplicity and FF Prosperity as purchasers (together, the &ldquo;Eighth Amendment&rdquo;). Pursuant to the Eighth Amendment,
the parties agreed to the following amendments to all outstanding and issuable Pre-existing SPA Notes of Senyun, FF Simplicity and FF
Prosperity: (i) the floor price for conversion of the Pre-existing SPA Notes was amended from $0.21 to $0.10 (or, for FF Simplicity and
FF Prosperity, if lower, the floor price of notes issued under the Unsecured SPA); (ii) each such Pre-existing SPA Note was amended such
that interest on the Pre-existing SPA Note, originally required to be paid on the aggregate unconverted and then outstanding principal
amount of each Pre-existing SPA Note quarterly on January 1, April 1, July 1 or October 1, was amended to be payable upon conversion of
principal of the Pre-existing SPA Note; (iii) the conversion price for the Pre-existing SPA Notes was amended from $1.05 to $0.8925, subject
to adjustment as set forth in such Pre-existing SPA Notes; and (iv) the exercise price for the Pre-existing SPA Warrants was amended from
$1.05 to $0.8925, subject to adjustment as set forth in such Pre-existing SPA Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Palantir Settlement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">In
July 2021, the Company and Palantir entered into a MSA that sets froth the terms of the Palantir&rsquo;s platform hosting arrangement,
which was expected to be used as a central operating system for data and analytics. On April 26, 2023, the Company received a letter from
Palantir providing a notice of dispute regarding the Company&rsquo;s alleged material breach of the MSA. The letter asserted that the
Company had not paid invoices totaling $12.3 million of past due fees. On July 7, 2023, Palantir filed a Demand for Arbitration against
the Company with Judicial Arbitration and Mediations Services, Inc., regarding a dispute between Palantir and the Company over the MSA.
Palantir alleged that the Company had refused to make payments under the MSA. Palantir asserted claims for: (i) breach of contract; (ii)
breach of the covenant of good faith and fair dealing; and (iii) unjust enrichment. Palantir alleged that the amount in controversy was
$41.5 million. On August 4, 2023, the Company submitted its response to Palantir&rsquo;s arbitration demand. The Company&rsquo;s response
included both affirmative defenses and a general denial of all allegations in Palantir&rsquo;s arbitration demand. On March 11, 2024,
the Company and Palantir executed a Settlement and Release Agreement in order to terminate the MSA and resolve the disputes. The Company
agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late payments. This settlement includes mutual
waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and Palantir entered into an amendment to the
Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.75 million in cash, the Company agreed to issue
Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A Common Stock by October 1, 2024. The
August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million shares of Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 27pt; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Wavier Agreement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="color: #212529">On
August 2, 2024, the Company entered into that certain Waiver Agreement (the &ldquo;Waiver Agreement&rdquo;) with certain investors (each,
a &ldquo;Holder&rdquo; and, collectively, the &ldquo;Holders&rdquo;), who (a) beneficially own and hold one or more of the following securities
of the Company: (i) certain secured convertible notes of the Company (including any secured convertible notes issued in exchange therefor,
collectively, the &ldquo;Pre-Existing SPA Notes&rdquo;) that were issued pursuant to that certain </FONT>Pre-existing SPA<FONT STYLE="color: #212529">,
and (ii) certain unsecured convertible notes of the Company (including any unsecured convertible notes issued in exchange therefore, collectively,
the &ldquo;Original Unsecured Notes&rdquo;, and together with the Pre-Existing SPA Notes, the &ldquo;Original Notes&rdquo;) that were
issued pursuant to that certain Pre-Existing SPA, dated as of May 8, 2023 (as amended, supplemented or otherwise modified from time to
time, the &ldquo;Original Unsecured SPA&rdquo;) and (b) have the right to acquire one or more of: (i) certain additional secured convertible
notes issuable in accordance with the terms to the </FONT>Pre-existing SPA <FONT STYLE="color: #212529">(the &ldquo;Additional Secured
Notes&rdquo;) and (ii) certain additional unsecured convertible notes (the &ldquo;Additional Unsecured Notes&rdquo;, and together with
the Additional Secured Notes, the &ldquo;Additional Notes&rdquo;, and together with the Original Notes, the &ldquo;Original SPA Notes&rdquo;),
issuable pursuant to the Original Unsecured SPA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="color: #212529">Prior
to the Waiver Agreement, the Company had certain obligations under the Original SPA Notes to pay accrued and unpaid interest and a
make-whole amount of additional interest (the &ldquo;Make-Whole Amount&rdquo;) in cash in connection with conversions of such
Original SPA Notes. In an effort to reduce the Company&rsquo;s ongoing cash obligations pursuant to such Original SPA Notes and to
encourage the continued conversion of the Original SPA Notes into shares of </FONT>Class A <FONT STYLE="color: #212529">Common
Stock, the Company has agreed to make certain voluntary adjustments to the Original SPA Notes as described below. Pursuant to the
Waiver Agreement, the Company irrevocably agreed that with respect to each conversion of any Original SPA Note on or after the
effective date of the Waiver Agreement, if the Holder delivers a conversion notice (the &ldquo;Notice of Conversion&rdquo;) to the
Company at a time that 90% of the VWAP (as defined in the Original SPA Notes) of the Company&rsquo;s </FONT>Class A <FONT STYLE="color: #212529">Common
Stock as of the trading day ended immediately prior to the time at which such Notice of Conversion is delivered to the Company
(each, an &ldquo;Adjustment Price&rdquo;) is less than the conversion price then in effect pursuant to the applicable Original SPA
Note, the Company shall voluntary reduce the conversion price solely with respect to such portion of such Original SPA Note to be
converted in accordance with such notice of conversion (and not with respect to any other portion of such Original SPA Note) to such
adjustment price (the &ldquo;Voluntary Adjustment&rdquo;). The Company also agreed, in exchange for the Holder&rsquo;s waiver of any
accrued and unpaid interest (if any, as of such conversion date) (an &ldquo;Interim Interest Waiver&rdquo;) with respect to such
aggregate principal of such Original SPA Note to be converted pursuant to such applicable notice of conversion (the &ldquo;Full
Voluntary Adjustment&rdquo;), to (i) further reduce such adjustment price in respect of a Voluntary Adjustment (as adjusted, each a
&ldquo;Full Adjustment Price&rdquo;); and (ii) issue a number of shares of the Company&rsquo;s </FONT>Class A <FONT STYLE="color: #212529">Common
Stock to the Holder such that the aggregate number of shares of Class A Common Stock to be issued to the Holder in such conversion
at such Full Adjustment Price equals the quotient of (x) the sum of (i) such aggregate principal of such Original SPA Notes to be
converted pursuant to such applicable notice of conversion and (ii) any accrued and unpaid interest thereon, divided by (y) such
adjustment price prior to any Interim Interest Waiver. Such Full Voluntary Adjustment shall be applicable until the fifth (5th)
business day after the Company delivers written notice to the Holder electing to revoke such election.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">Pursuant
to the Waiver Agreement, the Holders irrevocably agreed that instead of receiving the accrued and unpaid interest, each holder of any
such applicable Original SPA Note shall receive upon conversion of such Original SPA Note an amount in cash equal to all accrued and unpaid
interest on such Original SPA Note to such date of conversion (or such cash amount shall be deemed satisfied in full without any payment
of cash by the Company if the Company effects a Full Voluntary Adjustment with respect to the applicable notice of conversion) with respect
to the applicable notice of conversion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white; color: #212529">Further
pursuant to the Waiver Agreement, a Holder&rsquo;s right to purchase any Additional Notes in any agreement with the Company (including,
without limitation, the Pre-existing SPA and/or the Original Unsecured SPA, as applicable) shall be extended until the first (1<SUP>st</SUP>)
anniversary of the effective date of the Waiver Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; color: #212529">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Company also intends to incorporate
the changes in the Waiver Agreement into certain of its other existing notes and notes issuable in the future pursuant to existing purchase
agreements, as applicable, through one or more waivers, amendments and/or exchange agreements, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>New SPA, SPA Warrants, and SPA Notes</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">On September 5, 2024, the Company entered into a Securities Purchase
Agreement (the &ldquo;Purchase Agreement&rdquo;) with certain institutional investors as purchasers (the &ldquo;Investors&rdquo;). Pursuant
to the Purchase Agreement, the Company agreed to sell, and the Investors agreed to purchase, for approximately $30 million, of which approximately
$22.5 million was paid in cash and approximately $7.5 million was converted from a previous loan to the Company, certain secured promissory
notes (the &ldquo;Secured Notes&rdquo;), warrants (the &ldquo;Warrants&rdquo;) and incremental warrants (the &ldquo;Incremental Warrants&rdquo;,
together with the Secured Notes, the Warrants, the &ldquo;Financing Documents&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Secured Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Maturity Date; Interest.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">Pursuant to the Secured Notes, interest shall commence accruing on
the date thereof at the interest rate of 10% per annum (the &ldquo;Interest Rate&rdquo;) and shall be computed on the basis of a 360-day
year and twelve 30-day months and shall be payable on a Conversion Date with respect to the Conversion Amount being converted on such
Conversion Date, with any remaining accrued and unpaid Interest payable on the fifth anniversary of the issuance date thereof (the &ldquo;Maturity
Date&rdquo;) (each, an &ldquo;Interest Date&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">Interest shall be payable on each Interest Date, to the noteholders
on the applicable Interest Date, in shares of Class A Common Stock so long as there has been no Equity Conditions Failure; provided however,
that the Company may, at its option following notice to the noteholders, pay Interest on any Interest Date in cash or in a combination
of cash and shares. Prior to the payment of Interest on an Interest Date, interest on this Note shall accrue at the Interest Rate and
be payable by way of inclusion of the Interest in the Conversion Amount on each Conversion Date, or upon any redemption, unless in the
event of an event of default, in which case the interest rate of the Secured Notes shall automatically be increased to 18% per annum (&ldquo;Interest
Adjustments&rdquo;). In the event such default has been cured, such Interest Adjustments shall cease to be effective as of the calendar
day immediately following the date of such cure; provided that the interest as calculated and unpaid at such increased rate during the
continuance of that certain default shall continue to apply to the extent relating to the days after the occurrence of such default through
and including the date of such cure of such default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Maturity Date may be extended by the noteholders under circumstances
specified therein. On the Maturity Date, the Company shall pay to the noteholder an amount in cash representing all outstanding principal,
accrued and unpaid interest on such principal and interest and accrued and unpaid Late Charges. Other than as specifically permitted by
the Secured Note, the Company may not prepay any portion of the outstanding principal and accrued, unpaid interest or accrued and unpaid
Late Charges on principal and interest, if any.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Conversion</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Conversion at Option of Holder</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">Each holder of Secured Notes may convert all, or any part, of the outstanding
principal of the Secured Notes, at any time at such holder&rsquo;s option, into shares of <FONT STYLE="color: #212529">Class A </FONT>Common
Stock, at a conversion price per share of $5.24 (the &ldquo;Conversion Price&rdquo;), subject to adjustment under certain circumstances
described in the Secured Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Alternate Conversion</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; color: #212529">Each holder may alternatively elect to convert the Secured Notes, at
any time at such holder&rsquo;s option, into shares of our <FONT STYLE="color: #212529">Class A </FONT>Common Stock at the &ldquo;Alternate
Conversion Price&rdquo; equal to the lesser of:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the Conversion Price then in effect; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify">the greater of:</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">o</TD><TD STYLE="text-align: justify">the floor price of $1.048; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left">o</TD><TD STYLE="text-align: justify">the volume weighted average price of our <FONT STYLE="color: #212529">Class
A </FONT>Common Stock during the five Trading Days ending and including the Trading Day immediately preceding the delivery or deemed
delivery of the applicable conversion notice.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Limitations on Conversion</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Beneficial Ownership Limitation</I>. A holder shall not have the
right to convert any portion of a Secured Note to the extent that, after giving effect to such conversion, the holder (together with certain
related parties) would beneficially own in excess of 4.99%, or the &ldquo;Maximum Percentage&rdquo;, of shares of our Class A Common Stock
outstanding immediately after giving effect to such conversion. The Maximum Percentage may be raised or lowered to any other percentage
not in excess of 9.99%, at the option of the holder, except that any increase will only be effective upon 61 days&rsquo; prior notice
to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Exchange Cap Limitation</I>. Unless we obtain the approval of our
stockholders in accordance with the rules and regulations of the Nasdaq Capital Market, a maximum of 3,260,603 shares of our <FONT STYLE="color: #212529">Class
A </FONT>Common Stock (19.99% of the outstanding shares of our <FONT STYLE="color: #212529">Class A </FONT>Common Stock on September 5,
2024) shall be issuable upon conversion or otherwise pursuant to the terms of the Secured Notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Redemption Rights</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Company Optional Redemption</I>. The Company has the option to redeem
the Secured Notes at a 10% redemption premium to the greater of (i) the shares of our <FONT STYLE="color: #212529">Class A </FONT>Common
Stock then outstanding under the Secured Notes and (ii) the equity value of our <FONT STYLE="color: #212529">Class A </FONT>Common Stock
underlying the Notes. The equity value of our <FONT STYLE="color: #212529">Class A </FONT>Common Stock underlying the Notes is calculated
using the greatest closing sale price of our <FONT STYLE="color: #212529">Class A </FONT>Common Stock during the period commencing on
the date immediately preceding notice of such redemption and ending on the Trading Day immediately prior to the date the Company makes
the entire payment required to be made for such redemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Bankruptcy Event of Default Mandatory Redemption</I>. Upon any bankruptcy
event of default, we shall immediately redeem in cash all amounts due under the Secured Notes at 25% premium unless the holder waives
such right to receive such payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Casualty Event Redemption</I>. Upon receipt of certain casualty
proceeds, each holder of Secured Notes may require us to redeem in cash with the net proceeds therefrom, the lesser of (x) a 10% redemption
premium (or 25% if an event of default has then occurred and is continuing) to the shares of our <FONT STYLE="color: #212529">Class A
</FONT>Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such casualty event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Asset Sale Redemption</I>. Upon the occurrence of certain asset
sales, each holder of Secured Notes may require us to redeem in cash with the net proceeds therefrom, the lesser of (x) a 10% redemption
premium (or 25% if an event of default has then occurred and is continuing) to the shares of our <FONT STYLE="color: #212529">Class A
</FONT>Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such asset sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529"><I>Extraordinary Receipt Redemption</I>. Upon the receipt of an Extraordinary
Receipt, each holder of Secured Notes may require us to redeem in cash with the net proceeds therefrom, the lesser of (x) a 10% redemption
premium (or 25% if an event of default has then occurred and is continuing) to the shares of our <FONT STYLE="color: #212529">Class A
</FONT>Common Stock then outstanding under the Secured Notes and (y) all of the net cash proceeds of such Extraordinary Receipt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Ranking; Security Interest.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Secured Notes will be junior secured obligations of the Company
and will be secured by a security interest in substantially all of the assets of the Company, pursuant to a security agreement. In addition,
certain subsidiaries of the Company (each, a &ldquo;Subsidiary Grantor&rdquo;) in the Purchase Agreement secured the Company&rsquo;s obligations
under the Financing Documents by granting a perfected lien upon substantially all of the personal property of each Subsidiary Grantor,
for the benefit of the Investors. The Company is utilizing the proceeds of this offering for general corporate purposes and working capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>Registration Rights.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Company has agreed to file a registration statement providing for
the resale by the Investors of all shares issuable pursuant to the Financing Documents with the Securities and Exchange Commission, or
SEC, within forty-five (45) calendar days of the date of the Purchase Agreement or as soon as practicable thereafter, seek effectiveness
within 90 days following the date of the Purchase Agreement, and keep such registration statement effective at all times until no Investors
owns any Warrants or shares of <FONT STYLE="color: #212529">Class A </FONT>Common Stock issuable upon exercise thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Warrants</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Warrants are exercisable immediately on the date thereof with a
term of five (5) years to purchase an aggregate of 5,728,770 shares of <FONT STYLE="color: #212529">Class A </FONT>Common Stock at an
exercise price of $6.29, subject to adjustment under certain circumstances described in the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Incremental Warrants are exercisable immediately on the date thereof
with a term of one (1) year to purchase the Secured Notes at an exercise price of equal to the principal amount of the Secured Notes issued
to such Purchaser, subject to adjustment under certain circumstances described in the Incremental Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">The Company has agreed to issue certain placement agent warrants (&ldquo;PA
Warrants&rdquo;) to Univest Securities LLC, the sole placement agent of this transaction. The PA Warrants are exercisable immediately
on the date thereof with a term of five (5) years to purchase an aggregate of 202,768 shares of <FONT STYLE="color: #212529">Class A </FONT>Common
Stock at an exercise price of $6.29, subject to adjustment under certain circumstances described in the PA Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">Limitations on Exercise. A holder of the Warrants shall not have the
right to exercise any portion of these warrants to the extent that, after giving effect to such conversion, the holder (together with
certain related parties) would beneficially own in excess of 9.99%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">PA Warrants shall not have the right to exercise any portion of these
warrants to the extent that, after giving effect to such conversion, the holder (together with certain related parties) would beneficially
own in excess of 4.99%, or the &ldquo;Maximum Percentage&rdquo;, of shares of our <FONT STYLE="color: #212529">Class A </FONT>Common Stock
outstanding immediately after giving effect to such conversion. The Maximum Percentage may be raised or lowered to any other percentage
not in excess of 9.99%, at the option of the holder, except that any increase will only be effective upon 61 days&rsquo; prior notice
to us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in; color: #212529">The issuance of the Secured Notes and Warrants is being made in reliance
on the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), for the offer
and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company has agreed
to file a registration statement registering the resale by the Investors of the maximum number of shares issuable upon conversion of the
Secured Notes and exercise of the Warrants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; color: #212529">The Purchase Agreement and certain other transaction documents have
been attached as exhibits to this report to provide security holders with information regarding their terms. They are not intended to
provide any other factual information about the parties to the transaction documents or any of their respective affiliates. The representations,
warranties and covenants contained in the transaction documents were made only for the purposes of such transaction documents and as of
specified dates, were solely for the benefit of the parties to such transaction documents and may be subject to limitations agreed upon
by the contracting parties. The representations and warranties may have been made for the purposes of allocating contractual risk between
the parties to the transaction documents instead of establishing these matters as facts and may be subject to standards of materiality
applicable to the contracting parties that differ from those applicable to security holders. Security holders are not third-party beneficiaries
under the transaction documents. Accordingly, they should not rely on the representations, warranties and covenants contained in the transaction
documents or any descriptions thereof as characterizations of the actual state of facts or condition of any of the parties or any of their
respective affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Certain Anti-Takeover Provisions of Delaware Law </B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the Amended and Restated Charter, FF has
certain anti-takeover provisions in place as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Special Meeting of Stockholders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Bylaws provide that special
meetings of stockholders may be called only by (i)&nbsp;the Chairperson of the Board, (ii)&nbsp;the chief executive officer or (iii)&nbsp;a
majority vote of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Advance Notice Requirements for Stockholder Proposals and Director
Nominations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Bylaws provide that stockholders
seeking to bring business before FF&rsquo;s special meeting of stockholders, or to nominate candidates for election as directors at FF&rsquo;s
special meeting of stockholders, must provide timely notice of their intent in writing subject to certain exceptions for FF Top Board
designees under the Shareholder Agreement. To be timely, a stockholder&rsquo;s notice will need to be received by FF secretary at FF&rsquo;s
principal executive offices no later than the close of business on the 90<SUP>th</SUP> day nor earlier than the open of business on the
120<SUP>th</SUP> day prior to the anniversary date of the immediately preceding special meeting of stockholders. Pursuant to Rule&nbsp;14a-8
of the Exchange Act, proposals seeking inclusion in FF&rsquo;s annual proxy statement must comply with the notice periods contained therein.
The Amended and Restated Bylaws also specify certain requirements as to the form and content of a stockholders&rsquo; meeting. These provisions
may preclude FF stockholders from bringing matters before the special meeting of stockholders or from making nominations for directors
at FF&rsquo;s special meeting of stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Authorized but Unissued Shares</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">FF&rsquo;s authorized but unissued Common Stock
and Preferred Stock will be available for future issuances without stockholder approval and could be utilized for a variety of corporate
purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized
but unissued and unreserved Common Stock and Preferred Stock could render more difficult or discourage an attempt to obtain control of
FF by means of a proxy contest, tender offer, merger or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Exclusive Forum Selection</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Charter requires, to the
fullest extent permitted by law, that derivative actions brought in FF&rsquo;s name, actions against directors, officers and employees
for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware and, if brought
outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service of process on such stockholder&rsquo;s
counsel except any action (A)&nbsp;as to which the Court of Chancery in the State of Delaware determines that there is an indispensable
party not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction
of the Court of Chancery within 10 days following such determination), (B)&nbsp;which is vested in the exclusive jurisdiction of a court
or forum other than the Court of Chancery or (C)&nbsp;for which the Court of Chancery does not have subject matter jurisdiction. The Amended
and Restated Charter also requires that the federal district courts of the United&nbsp;States of America be the exclusive forum for the
resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended, and/or the Securities Exchange
Act of 1934, as amended. Any person or entity purchasing or otherwise acquiring any interest in shares of <FONT STYLE="color: #212529">Class
A </FONT>Common Stock shall be deemed to have notice of and consented to the forum provisions in the Amended and Restated Charter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">This choice of forum provision may limit a stockholder&rsquo;s
ability to bring a claim in a judicial forum that it finds favorable for disputes with FF or any of FF&rsquo;s directors, officers, other
employees or stockholders, which may discourage lawsuits with respect to such claims. FF cannot be certain that a court will decide that
this provision is either applicable or enforceable, and if a court were to find the choice of forum provision contained in the Amended
and Restated Charter to be inapplicable or unenforceable in an action, FF may incur additional costs associated with resolving such action
in other jurisdictions, which could harm FF&rsquo;s business, operating results and financial condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Charter provides that
the exclusive forum provision will be applicable to the fullest extent permitted by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Limitation on Liability and Indemnification of Directors and
Officers</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Charter provides that
directors and officers will be indemnified by FF to the fullest extent authorized by Delaware law as it now exists or may in the future
be amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">The Amended and Restated Bylaws also permit FF
to secure insurance on behalf of any officer, director or employee for any liability arising out of his or her actions, regardless of
whether Delaware law would permit indemnification. FF has purchased a policy of directors&rsquo; and officers&rsquo; liability insurance
that insures FF&rsquo;s directors and officers against the cost of defense, settlement or payment of a judgment in some circumstances
and insures FF against its obligations to indemnify the directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">These provisions may discourage stockholders from
bringing a lawsuit against FF&rsquo;s directors for breach of their fiduciary duty. These provisions also may have the effect of reducing
the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit
FF and FF stockholders. Furthermore, a stockholder&rsquo;s investment may be adversely affected to the extent FF pays the costs of settlement
and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, the insurance
and the indemnity agreements are necessary to attract and retain talented and experienced directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to FF&rsquo;s directors, officers and controlling persons pursuant to the foregoing provisions,
or otherwise, FF has been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_016"></A>MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
TO NON-U.S. HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following is a summary of material United States
federal income tax consequences of the purchase, ownership and disposition of our Class A Common Stock as of the date hereof. This discussion
is limited to non-U.S. holders (as defined below) who purchase our Class A Common Stock pursuant to this offering and who hold our Class
A Common Stock as a &ldquo;capital asset&rdquo; within the meaning of Section 1221 of the Code (generally, property held for investment).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A &ldquo;non-U.S. holder&rdquo; means a beneficial
owner of our Class A Common Stock (other than an entity or arrangement treated as a partnership for United States federal income tax purposes)
that is not, for United States federal income tax purposes, any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an individual citizen or resident of the United States;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a corporation (or any other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an estate the income of which is subject to United States federal income taxation regardless of its source; or a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person for United States federal income tax purposes.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This summary is based upon provisions of the United
States Internal Revenue Code of 1986, as amended, or the &ldquo;Code,&rdquo; United States Treasury regulations promulgated thereunder,
rulings, judicial decisions, published positions of the Internal Revenue Service, or &ldquo;IRS,&rdquo; and other applicable authorities,
as of the date hereof. Those authorities are subject to different interpretations and may be changed, perhaps retroactively, so as to
result in United States federal income tax consequences different from those summarized below. This summary does not address all aspects
of United States federal income taxes and does not deal with any estate or gift tax consequences or any foreign, state, local or other
tax considerations (including any aspects of the unearned income Medicare contribution tax pursuant to the Health Care and Education Reconciliation
Act of 2010) that may be relevant to non-U.S. holders in light of their particular circumstances. In addition, it does not represent a
detailed description of the United States federal income tax consequences applicable to you if you are subject to special treatment under
the United States federal income tax laws (including if you are a former citizen or long-term resident of the United States, foreign pension
fund, tax qualified retirement plan, bank, financial institution, insurance company, investment fund, tax-exempt organization, governmental
organization, trader, broker or dealer in securities, &ldquo;controlled foreign corporation,&rdquo; &ldquo;passive foreign investment
company,&rdquo; a partnership or other pass-through entity for United States federal income tax purposes (or an investor in such a pass-through
entity), person subject to the alternative minimum tax, person that owns, or has owned, actually or constructively, more than 5% of our
Class A Common Stock, person who has elected to mark securities to market, person who acquired shares of our Class A Common Stock as compensation
or otherwise in connection with the performance of services, person who has acquired shares of our Class A Common Stock as part of a straddle,
hedge, conversion transaction or other integrated investment or an accrual-method taxpayer subject to special tax accounting rules under
Section 451(b) of the Code). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe
in this summary.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a partnership (or other entity or arrangement
treated as a partnership for United States federal income tax purposes) holds our Class A Common Stock, the tax treatment of a partner
will generally depend upon the status of the partner and the activities of the partnership. If you are a partnership (or other entity
or arrangement treated as a partnership for United States federal income tax purposes) or partner of a partnership holding our Class A
Common Stock, you should consult your tax advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>If you
are considering the purchase of our Class A common stock, you should consult your own tax advisors concerning the particular United States
federal income tax consequences to you of the purchase, ownership and disposition of our Class A common stock, as well as the consequences
to you arising under other United States federal tax laws, the laws of any other taxing jurisdiction, OR AN APPLICABLE TAX TREATY. IN
ADDITION, YOU SHOULD CONSULT WITH YOUR TAX ADVISOR WITH RESPECT TO POTENTIAL CHANGES IN UNITED STATES FEDERAL TAX LAW AS WELL AS POTENTIAL
CHANGES IN STATE, LOCAL OR FOREIGN TAX LAWS.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dividends</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In the event that we make a distribution of cash
or other property (other than certain pro rata distributions of our stock) in respect of our Class A Common Stock, the distribution generally
will be treated as a dividend for United States federal income tax purposes to the extent it is paid from our current or accumulated earnings
and profits, as determined under United States federal income tax principles. Any portion of a distribution that exceeds our current and
accumulated earnings and profits generally will be treated first as a tax-free return of capital, causing a reduction in the adjusted
tax basis of a non-U.S. holder&rsquo;s Class A Common Stock, and to the extent the amount of the distribution exceeds a non-U.S. holder&rsquo;s
adjusted tax basis in our Class A Common Stock, the excess will be treated as gain from the disposition of our Class A Common Stock (the
tax treatment of which is discussed below under &ldquo;<I>Gain on Disposition of Class A Common Stock</I>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the discussions below regarding effectively
connected income, backup withholding and Sections 1471 through 1474 of the Code (such Sections commonly referred to as &ldquo;FATCA&rdquo;),
dividends paid to a non-U.S. holder generally will be subject to withholding of United States federal income tax at a 30% rate or such
lower rate as may be specified by an applicable income tax treaty. A non-U.S. holder who wishes to claim the benefit of an applicable
treaty rate and avoid backup withholding, as discussed below, for dividends will be required (a) to provide the applicable withholding
agent with a properly executed IRS Form W-8BEN or Form W- 8BEN-E (or other applicable form) certifying under penalty of perjury that such
holder is not a United States person as defined under the Code and is eligible for treaty benefits or (b) if our Class A Common Stock
is held through certain foreign intermediaries, to satisfy the relevant certification requirements of applicable United States Treasury
regulations. Special certification and other requirements apply to certain non-U.S. holders that are pass-through entities rather than
corporations or individuals. A non-U.S. holder eligible for a reduced rate of United States federal withholding tax pursuant to an income
tax treaty may be eligible to obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the
IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Dividends that are effectively connected with the
conduct of a trade or business by the non-U.S. holder within the United States (and, if required by an applicable income tax treaty, are
attributable to a United States permanent establishment) are not subject to the withholding tax. To claim the exemption, the non-U.S.
holder must generally furnish a valid IRS Form W-8ECI (or applicable successor form) to the applicable withholding agent certifying eligibility
for exemption. However, any such effectively connected dividends paid on our Class A Common Stock generally will be subject to United
States federal income tax on a net income basis in the same manner as if the non-U.S. holder were a United States person as defined under
the Code. Any such effectively connected dividends received by a foreign corporation may be subject to an additional &ldquo;branch profits
tax&rdquo; at a 30% rate or such lower rate as may be specified by an applicable income tax treaty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Gain on Disposition of Class A Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Subject to the discussion of backup withholding
and FATCA below, any gain realized by a non-U.S. holder on the sale or other disposition of our Class A Common Stock generally will not
be subject to United States federal income tax unless:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the gain is effectively connected with a trade or business of the non-U.S. holder in the United States (and, if required by an applicable income tax treaty, is attributable to a United States permanent establishment of the non-U.S. holder);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of that disposition, and certain other conditions are met; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">we are or have been a &ldquo;United States real property holding corporation&rdquo; for United States federal income tax purposes at any time within the shorter of the five-year period preceding the disposition or the non-U.S. holder&rsquo;s holding period for our Class A Common Stock, and our Class A Common Stock is not regularly traded on an established securities market during the calendar year in which the sale or other disposition occurs.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in">A non-U.S. holder described in the first bullet
point immediately above will be subject to tax on the gain derived from the sale or other disposition in the same manner as if the non-U.S.
holder were a United States person as defined under the Code. In addition, if any non-U.S. holder described in the first bullet point
immediately above is a foreign corporation, the gain realized by such non-U.S. holder may be subject to an additional &ldquo;branch profits
tax&rdquo; at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. An individual non-U.S. holder described
in the second bullet point immediately above will be subject to a 30% (or such lower rate as may be specified by an applicable income
tax treaty) tax on the gain derived from the sale or other disposition, which gain may be offset by United States source capital losses
even though the individual is not considered a resident of the United States, provided that the non-U.S. holder has timely filed United
States federal income tax returns with respect to such losses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Generally, a corporation is a &ldquo;United States
real property holding corporation&rdquo; if the fair market value of its United States real property interests equals or exceeds 50% of
the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business
(all as determined for United States federal income tax purposes). We believe we are not and do not anticipate becoming a &ldquo;United
States real property holding corporation&rdquo; for United States federal income tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Non-U.S. holders should consult their tax advisors
regarding any applicable income tax treaties that may provide for different rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Information Reporting and Backup Withholding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Annual reports are required to be filed with the
IRS and provided to each non-U.S. holder indicating the amount of distributions on our Class A Common Stock paid to such holder and the
amount of any tax withheld with respect to such distributions. These information reporting requirements apply even if no withholding was
required because the distributions were effectively connected with the non-U.S. holder&rsquo;s conduct of a United States trade or business,
or withholding was reduced or eliminated by an applicable income tax treaty. Copies of the information returns reporting such distributions
and any withholding may also be made available to the tax authorities in the country in which the non-U.S. holder resides under the provisions
of an applicable income tax treaty.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A non-U.S. holder will not be subject to backup
withholding on dividends received if such holder certifies under penalty of perjury that it is a non-U.S. holder (and the payor does not
have actual knowledge or reason to know that such holder is a United States person as defined under the Code), including by providing
a valid IRS Form W-8BEN, IRS Form W-8BEN-E or IRS Form W-8ECI, or such holder otherwise establishes an exemption.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Information reporting and backup withholding generally
are not required with respect to the amount of any proceeds from the sale or other disposition of our Class A Common Stock by a non-U.S.
holder outside the United States through a foreign office of a foreign broker that does not have certain specified connections to the
United States. However, if a non-U.S. holder sells or otherwise disposes of its shares of Class A Common Stock through a United States
broker or the United States offices of a foreign broker, the broker will generally be required to report the amount of proceeds paid to
the non-U.S. holder to the IRS and also backup withhold on that amount unless such non-U.S. holder provides appropriate certification
to the broker of its status as a non-U.S. holder (and the payor does not have actual knowledge or reason to know that such holder is a
United States person) or otherwise establishes an exemption. Information reporting will also apply if a non-U.S. holder sells its shares
of Class A Common Stock through a foreign broker deriving more than a specified percentage of its income from United States sources or
having certain other connections to the United States, unless such broker has documentary evidence in its records that such non-U.S. holder
is a non-U.S. holder (and the payor does not have actual knowledge or reason to know that such holder is a United States person) and certain
other conditions are met, or such non-U.S. holder otherwise establishes an exemption.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Backup withholding is not an additional tax and
any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a non-U.S. holder&rsquo;s United
States federal income tax liability provided the required information is timely furnished to the IRS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Additional Withholding Requirements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under FATCA, a 30% United States federal withholding
tax may apply to any dividends paid on our Class A Common Stock paid to (i) a &ldquo;foreign financial institution&rdquo; (as specifically
defined in the Code) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption
from FATCA, or (y) its compliance (or deemed compliance) with FATCA (which may alternatively be in the form of compliance with an intergovernmental
agreement with the United States) in a manner which avoids withholding, or (ii) a &ldquo;non-financial foreign entity&rdquo; (as specifically
defined in the Code) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption
from FATCA, or (y) adequate information regarding certain substantial United States beneficial owners of such entity (if any). If a dividend
payment is both subject to withholding under FATCA and subject to the withholding tax discussed above under &ldquo;<I>Dividends</I>,&rdquo;
the withholding under FATCA may be credited against, and therefore reduce, such other withholding tax. An intergovernmental agreement
between the United States and an applicable foreign country may modify these requirements. Under certain circumstances, a non-U.S. holder
might be eligible for refunds or credits of such taxes. FATCA currently applies to dividends paid on our Class A Common Stock. The Treasury
Secretary has issued proposed regulations providing that the withholding provisions under FATCA do not apply with respect to gross proceeds
from a sale or other disposition of our Class A Common Stock, which may be relied upon by taxpayers until final regulations are issued.
You should consult your own tax advisors regarding these requirements and whether they may be relevant to your ownership and disposition
of our Class A Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_017"></A>PLAN OF DISTRIBUTION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We are registering up to 29,659,781 shares of Class A Common Stock,
of which 28,017,654 shares of Class A Common Stock are issuable upon conversion of the SPA Notes and the exercise of the SPA Warrants
by the holders thereof from time to time, 561,833 shares of Class A Common Stock are issuable upon conversion of the Applicable Tranche
D Notes, and 1,080,294 shares of Class A Common Stock were issued to Palantir in settlement of amounts owed to Palantir. We are required
to pay all fees and expenses incident to the registration of the shares of our Class A Common Stock to be offered and sold pursuant to
this prospectus. The Selling Securityholders will bear all commissions and discounts, if any, attributable to their sale of shares of
our Class A Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We will not receive any proceeds from the sale
of the shares of Class A Common Stock by the Selling Securityholders. The aggregate proceeds to the Selling Securityholders will be the
purchase price of the securities less any discounts and commissions borne by the Selling Securityholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The shares of Class A Common Stock beneficially
owned by the Selling Securityholders covered by this prospectus may be offered and sold from time to time by the Selling Securityholders.
The term &ldquo;Selling Securityholders&rdquo; includes donees, pledgees, transferees or other successors in interest selling securities
received after the date of this prospectus from a Selling Securityholder as a gift, pledge, partnership distribution or other transfer.
The Selling Securityholders will act independently of us in making decisions with respect to the timing, manner and size of each sale.
Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms then prevailing
or at prices related to the then current market price or in negotiated transactions. The Selling Securityholders may sell their shares
of Class A Common Stock by one or more of, or a combination of, the following methods:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">purchases by a broker-dealer as principal and resale by such broker-dealer for its own account pursuant to this prospectus;</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">ordinary brokerage transactions and transactions in which the broker solicits purchasers;</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">block trades in which the broker-dealer so engaged will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an over-the-counter distribution in accordance with the rules of Nasdaq;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">through trading plans entered
into by a Selling Securityholder pursuant to Rule 10b5-1 under the Exchange Act, that are in place at the time of an offering pursuant
to this prospectus and any applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of
parameters described in such trading plans;</FONT></TD>
</TR></TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">to or through underwriters or broker-dealers;</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">in &ldquo;at the market&rdquo; offerings, as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an exchange or other similar offerings through sales agents;</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">in privately negotiated transactions;</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">in options transactions;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">through a combination of any of the above methods of sale; or</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any other method permitted pursuant to applicable law.</FONT></TD></TR>
  </TABLE>
<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, any shares that qualify for sale pursuant
to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To the extent required, this prospectus may be
amended or supplemented from time to time to describe a specific plan of distribution. In connection with distributions of the shares
or otherwise, the Selling Securityholders may enter into hedging transactions with broker-dealers or other financial institutions. In
connection with such transactions, broker-dealers or other financial institutions may engage in short sales of shares of Class A Common
Stock in the course of hedging transactions, broker-dealers or other financial institutions may engage in short sales of shares of Class
A Common Stock in the course of hedging the positions they assume with Selling Securityholders. The Selling Securityholders may also sell
shares of Class A Common Stock short and redeliver the shares to close out such short positions. The Selling Securityholders may also
enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to such broker-dealer
or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such transaction). The Selling Securityholders may also pledge
shares to a broker-dealer or other financial institution, and, upon a default, such broker-dealer or other financial institution, may
effect sales of the pledged shares pursuant to this prospectus (as supplemented or amended to reflect such transaction).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A Selling Securityholder may enter into derivative
transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions.
If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell securities covered
by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use securities
pledged by any Selling Securityholder or borrowed from any Selling Securityholder or others to settle those sales or to close out any
related open borrowings of stock, and may use securities received from any Selling Securityholder in settlement of those derivatives to
close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and will be identified
in the applicable prospectus supplement (or a post-effective amendment). In addition, any Selling Securityholder may otherwise loan or
pledge securities to a financial institution or other third party that in turn may sell the securities short using this prospectus. Such
financial institution or other third party may transfer its economic short position to investors in our securities or in connection with
a concurrent offering of other securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In effecting sales, broker-dealers
or agents engaged by the Selling Securityholders may arrange for other broker-dealers to participate. Broker-dealers or agents may receive
commissions, discounts or concessions from the Selling Securityholders in amounts to be negotiated immediately prior to the sale.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In offering the shares covered
by this prospectus, the Selling Securityholders and any broker-dealers who execute sales for the Selling Securityholders may be deemed
to be &ldquo;underwriters&rdquo; within the meaning of the Securities Act in connection with such sales. Any profits realized by the Selling
Securityholders and the compensation of any broker-dealer may be deemed to be underwriting discounts and commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In order to comply with the
securities laws of certain states, if applicable, the shares must be sold in such jurisdictions only through registered or licensed brokers
or dealers. In addition, in certain states the shares may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have advised the Selling
Securityholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and
to the activities of the Selling Securityholders and their affiliates. In addition, we will make copies of this prospectus available to
the Selling Securityholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The Selling Securityholders
may indemnify any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including
liabilities arising under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At the time a particular offer
of shares is made, if required, a prospectus supplement will be distributed that will set forth the number of shares being offered and
the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter, any discount,
commission and other item constituting compensation, any discount, commission or concession allowed or reallowed or paid to any dealer,
and the proposed selling price to the public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_018"></A>LEGAL MATTERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The validity of the securities
offered by this prospectus has been passed upon for us by Pryor Cashman LLP, New York, New York. If the validity of any securities is
also passed upon by counsel for the underwriters, dealers or agents of an offering of those securities, that counsel will be named in
the applicable prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="a_019"></A><B>EXPERTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The financial statements as
of December 31, 2023 and 2022 and for the years then ended incorporated by reference in this prospectus have been so included in reliance
on the reports (which contains an explanatory paragraph relating to the Company&rsquo;s ability to continue as a going concern as described
in Note 2 to the financial statements) of Mazars USA LLP, an independent registered public accounting firm, given on the authority of
said firm as experts in auditing and accounting.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_020"></A>CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 9, 2024, Mazars USA
LLP (&ldquo;Mazars&rdquo;) notified FFIE that it would <FONT STYLE="background-color: white">resign as the Company&rsquo;s auditor effective
May 31, 2024.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
report of Mazars on the Company&rsquo;s financial statements for the fiscal year ended December 31, 2022,&nbsp;did not contain an adverse
opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principle, but did&nbsp;contain
an emphasis of a matter related to substantial doubt about the Company&rsquo;s ability to continue as a going concern.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">During
the fiscal year ended December 31, 2023 and 2022, there were no disagreements (as that term is defined in Item 304(a)(1)(iv) of Regulation
S-K and related instructions) between the Company and Mazars on any matter of accounting principles or practices, financial statement
disclosure or auditing scope or procedures which disagreements, if not resolved to the satisfaction of Mazars, would have caused Mazars
to make reference thereto in their report on the financial statements for such year. The Company disclosed in its Form 10-K/A for the
fiscal year ended December 31, 2023 and 2022, that it did not maintain effective internal control over financial reporting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company provided Mazars with a copy of the disclosures made and requested that Mazars furnish the Company with a letter addressed to the
Securities and Exchange Commission stating whether it agrees with the statements contained herein. A copy of Mazars&rsquo; letter, dated
April 15,&nbsp;2024, is filed as Exhibit 16.1 to the Current Report on Form 8-K, filed with the Securities and Exchange Commission on
April 15, 2024, which was incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Effective
on June 21, 2024, Macias Gini &amp; O&rsquo;Connell LLP (&ldquo;MGO&rdquo;) was engaged as the independent registered public accounting
firm for the Company for the fiscal year ending December 31, 2024.&nbsp;The engagement was approved by the Audit Committee of the Board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">During
the Company&rsquo;s two most recent fiscal years ended December 31, 2022 and December 31, 2023 and during the period from the end of the
most recently completed fiscal year ended December 31, 2023 through June 21, 2024, neither the Company nor anyone on its behalf consulted
with MGO, on behalf of the Company, regarding the application of accounting principles to a specified transaction (either completed or
proposed), the type of audit opinion that might be rendered on the Company&rsquo;s financial statements, or any matter that was either
the subject of a &ldquo;disagreement&rdquo; as defined in&nbsp;Item 304(a)(1)(iv) of&nbsp;Regulation S-K&nbsp;under the&nbsp;Securities
Exchange Act of 1934, as amended (the &ldquo;Exchange Act&rdquo;) and the instructions thereto, or a &ldquo;reportable event,&rdquo; as
defined in&nbsp;Item 304(a)(1)(v) of&nbsp;Regulation S-K&nbsp;under the&nbsp;Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
Company provided MGO with a copy of the disclosures it made. The Company has requested and received from MGO a letter addressed to the
SEC stating whether it agrees with the statements contained herein. A copy of MGO&rsquo;s letter, dated June 24, 2024, is filed as Exhibit
16.1 to the Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 24, 2024, which was incorporated by
reference herein.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_021"></A>WHERE YOU CAN FIND MORE INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have filed with the SEC
a registration statement on Form S-1 under the Securities Act with respect to the securities offered by this prospectus. This prospectus,
which forms a part of such registration statement, does not contain all of the information included in the registration statement. For
further information pertaining to us and our securities, you should refer to the registration statement and to its exhibits. The registration
statement has been filed electronically and may be obtained in any manner listed below. Whenever we make reference in this prospectus
to any of our contracts, agreements or other documents, the references are not necessarily complete. If a contract or document has been
filed as an exhibit to the registration statement or a report we file under the Exchange Act, you should refer to the copy of the contract
or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit to a registration
statement or report is qualified in all respects by the filed exhibit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We file annual, quarterly
and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the internet
at the SEC&rsquo;s website at <I>www.sec.gov</I> and on our website, free of charge, at <I>www.ff.com</I>. The information found on, or
that can be accessed from or that is hyperlinked to, our website is not part of this prospectus. You may inspect a copy of the registration
statement through the SEC&rsquo;s website, as provided herein.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="h_002"></A>INCORPORATION OF CERTAIN INFORMATION BY REFERENCE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SEC allows us to &ldquo;incorporate
by reference&rdquo; information that we file with it into this prospectus, which means that we can disclose important information to you
by referring you to those documents. The information incorporated by reference is an important part of this prospectus. The information
incorporated by reference is considered to be a part of this prospectus, and information that we file later with the SEC will automatically
update and supersede information contained in this prospectus and any accompanying prospectus supplement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We incorporate by reference
the documents listed below that we have previously filed with the SEC:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our Annual Reports on&nbsp;Form 10-K&nbsp;and Form 10-K/A for the fiscal year ended December 31, 2023, filed with the SEC on <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000162828024025420/ffie-20231231.htm">May 28, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000162828024025846/ffie-20231231.htm">May 30, 2024</A> and <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024055304/ea0208349-10ka2_faraday.htm">June 24, 2024</A>;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our Quarterly Reports on&nbsp;Form 10-Q&nbsp;for the fiscal quarter ended March 31, 2024 and June 30, 2024, filed with the SEC on <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000162828024033559/ffie-20240331.htm">July 30, 2024</A> and <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000162828024037267/ffie-20240630.htm">August 14, 2024</A>;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our Current Reports on
    Form 8-K filed with the SEC on <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024010694/ea192788-8k_faraday.htm">February 7, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024016665/ea0200677-8k_faraday.htm">February 26, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024023080/ea0201940-8k_faraday.htm">March 15, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024032985/ea0203918-8k_faraday.htm">April 15, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024035838/ea0204601-8k_faraday.htm">April 24, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024036697/ea0204780-8k_faraday.htm">April 26, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024047116/ea0206988-8k_faraday.htm">May 28, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024051797/ea0207678-8k_faraday.htm">June 11, 2024</A>, <A HREF="http://www.sec.gov/ix?doc=/Archives/edgar/data/1805521/000121390024055391/ea0208421-8k_faraday.htm">June 25, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024056701/ea0208655-8k_faraday.htm">June 27, 2024</A>, <A HREF="http://www.sec.gov/ix?doc=/Archives/edgar/data/1805521/000121390024061102/ea0209384-8k_faraday.htm">July 12, 2024</A>, <A HREF="http://www.sec.gov/ix?doc=/Archives/edgar/data/1805521/000121390024064185/ea0210395-8k_faraday.htm">August 1, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024064910/ea0210463-8k_faraday.htm">August 5, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024069327/ea0211502-8k_faraday.htm">August 15, 2024</A>,
    <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea0213532-8k_faraday.htm">September 6, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024077424/ea0214175-8k_faraday.htm">September 10, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024078666/ea0214549-8k_faraday.htm">September 13, 2024</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024079952/ea0215043-8k_faraday.htm">September 18, 2024</A> (other than any portions thereof deemed furnished and
    not filed); and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The description of our
    Common Stock in our Registration Statement on&nbsp;<A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390020017873/ea124315-8a12b_propertysolu.htm">Form
    8-A</A>, filed with the SEC on July 20, 2020, including any amendment or reports filed for the purpose of updating such description,
    including the Description of Capital Stock filed as </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif"><A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390023071375/ea184109-s3a2_faraday.htm">Exhibit 4.1</A> to our Annual Report on <A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000162828024025420/ffie-20231231.htm">Form 10-K</A>
    for the year ended December 31, 2023, as filed with the SEC on May 28, 2024.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">All reports and other documents
that we file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the&nbsp;Exchange Act&nbsp;after the date of the initial registration
statement and prior to effectiveness of the registration statement, and after the date of this prospectus but before the termination of
the offering of the securities hereunder will also be considered to be incorporated by reference into this prospectus from the date of
the filing of these reports and documents, and will supersede the information herein; provided, however, that all reports, exhibits and
other information that we &ldquo;furnish&rdquo; to the SEC will not be considered incorporated by reference into this prospectus. We undertake
to provide without charge to each person (including any beneficial owner) who receives a copy of this prospectus, upon written or oral
request, a copy of all of the preceding documents that are incorporated by reference (other than exhibits, unless the exhibits are specifically
incorporated by reference into these documents). You may request a copy of these materials in the manner set forth under the heading &ldquo;<I>Where
You Can Find More Information</I>,&rdquo; above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will provide you without
charge, upon your oral or written request, with a copy of any or all reports, proxy statements and other documents we file with the SEC,
as well as any or all of the documents incorporated by reference in this prospectus or the registration statement (other than exhibits
to such documents unless such exhibits are specifically incorporated by reference into such documents). Requests for such copies should
be directed to</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Faraday Future Intelligent Electric Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">18455 S. Figueroa Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Gardena, CA 90248</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(310) 415-4807</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_001.jpg" ALT=""></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Up to 29,659,781 Shares of Class A Common Stock
Issued to a Former Vendor</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>and</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Issuable Upon Exercise of the Warrants and
PA Warrants and Conversion of the SPA Notes and Applicable Tranche D Notes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Prospectus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>November 1, 2024</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left"><B>Information Not Required in Prospectus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item&nbsp;13. Other Expenses of Issuance and
Distribution.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is an estimate
of the expenses (all of which are to be paid by the registrant) that we may incur in connection with the securities being registered hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: justify">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: justify">SEC registration fee</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">23,840.10</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Legal fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Accounting fees and expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"></TD><TD STYLE="text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Miscellaneous</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">*</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 4pt">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">23,840.10</TD><TD STYLE="padding-bottom: 4pt; text-align: left">*</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">*</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">These fees are calculated based on the securities offered and the number of issuances and accordingly cannot be defined at this time.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 24pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will bear all costs, expenses
and fees in connection with the registration of the securities, including with regard to compliance with state securities or &ldquo;blue
sky&rdquo; laws. The Selling Securityholders, however, will bear all underwriting commissions and discounts, if any, attributable to their
sale of the securities. All amounts are estimates except the SEC registration fee and the FINRA filing fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item&nbsp;14. Indemnification of Directors
and Officers.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section&nbsp;145 of the DGCL
concerning indemnification of officers, directors, employees and agents is set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;Section&nbsp;145. Indemnification
of officers, directors, employees and agents; insurance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(a)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">A corporation shall have power
to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation)
by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the
request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys&rsquo; fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person
reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe the person&rsquo;s conduct was unlawful. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests of
the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person&rsquo;s conduct
was unlawful.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(b)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">A corporation shall have power
to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit
by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director,
officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys&rsquo; fees)
actually and reasonably incurred by the person in connection with the defense or settlement of such action or suit if the person acted
in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and except
that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be
liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person
is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(c)</FONT></TD>
    <TD STYLE="width: 0.25in">(1)</TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"> To the extent that a present
or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding
referred to in subsections (a)&nbsp;and (b)&nbsp;of this section, or in defense of any claim, issue or matter therein, such person shall
be indemnified against expenses (including attorneys&rsquo; fees) actually and reasonably incurred by such person in connection therewith.
For indemnification with respect to any act or omission occurring after December 31, 2020, references to &ldquo;officer&rdquo; for purposes
of these paragraphs (c)(1) and (2)&nbsp;of this section shall mean only a person who at the time of such act or omission is deemed to
have consented to service by the delivery of process to the registered agent of the corporation pursuant to &sect; 3114(b) of Title 10
(for purposes of this sentence only, treating residents of this State as if they were nonresidents to apply &sect; 3114(b) of Title 10
to this sentence).</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.75in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(2)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The corporation may indemnify
any other person who is not a present or former director or officer of the corporation against expenses (including attorneys&rsquo; fees)
actually and reasonably incurred by such person to the extent he or she has been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in subsections (a)&nbsp;and (b)&nbsp;of this section, or in defense of any claim, issue or
matter therein.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(d)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Any indemnification under subsections
(a)&nbsp;and (b)&nbsp;of this section (unless ordered by a court) shall be made by the corporation only as authorized in the specific
case upon a determination that indemnification of the present or former director, officer, employee or agent is proper in the circumstances
because the person has met the applicable standard of conduct set forth in subsections (a)&nbsp;and (b)&nbsp;of this section. Such determination
shall be made, with respect to a person who is a director or officer of the corporation at the time of such determination, (1)&nbsp;by
a majority vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum, or (2)&nbsp;by
a committee of such directors designated by majority vote of such directors, even though less than a quorum, or (3)&nbsp;if there are
no such directors, or if such directors so direct, by independent legal counsel in a written opinion, or (4)&nbsp;by the stockholders.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(e)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Expenses (including attorneys&rsquo;
fees) incurred by an officer or director of the corporation in defending any civil, criminal, administrative or investigative action,
suit or proceeding may be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt
of an undertaking by or on behalf of such director or officer to repay such amount if it shall ultimately be determined that such person
is not entitled to be indemnified by the corporation as authorized in this section. Such expenses (including attorneys&rsquo; fees) incurred
by former directors and officers or other employees and agents of the corporation or by persons serving at the request of the corporation
as directors, officers, employees or agents of another corporation, partnership, joint venture, trust or other enterprise may be so paid
upon such terms and conditions, if any, as the corporation deems appropriate.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(f)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The indemnification and advancement
of expenses provided by, or granted pursuant to, the other subsections of this section shall not be deemed exclusive of any other rights
to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in such person&rsquo;s official capacity and as to action in another capacity
while holding such office. A right to indemnification or to advancement of expenses arising under a provision of the certificate of incorporation
or a bylaw shall not be eliminated or impaired by an amendment to or repeal or elimination of the certificate of incorporation or the
bylaws after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action,
suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such
act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(g)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">A corporation shall have power
to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity,
or arising out of such person&rsquo;s status as such, whether or not the corporation would have the power to indemnify such person against
such liability under this section.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(h)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">For purposes of this section,
references to &ldquo;the corporation&rdquo; shall include, in addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had
power and authority to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer,
employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position
under this section with respect to the resulting or surviving corporation as such person would have with respect to such constituent
corporation if its separate existence had continued.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(i)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">For purposes of this section,
references to &ldquo;other enterprises&rdquo; shall include employee benefit plans; references to &ldquo;fines&rdquo; shall include any
excise taxes assessed on a person with respect to any employee benefit plan; and references to &ldquo;serving at the request of the corporation&rdquo;
shall include any service as a director, officer, employee or agent of the corporation which imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person
who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of
an employee benefit plan shall be deemed to have acted in a manner &ldquo;not opposed to the best interests of the corporation&rdquo;
as referred to in this section.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(j)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The indemnification and advancement
of expenses provided by, or granted pursuant to, this section shall, unless otherwise provided when authorized or ratified, continue
as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and
administrators of such a person.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">(k)</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The Court of Chancery is hereby
vested with exclusive jurisdiction to hear and determine all actions for advancement of expenses or indemnification brought under this
section or under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise. The Court of Chancery may summarily
determine a corporation&rsquo;s obligation to advance expenses (including attorneys&rsquo; fees).</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons pursuant to the
foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy
as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment of expenses incurred or paid by a director, officer or controlling person in a successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to the court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the
final adjudication of such issue.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 7.01 of the Amended
and Restated Charter provides:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;To the fullest extent
permitted by the DGCL, as the same exists or as may hereafter be amended, a director of the Corporation shall not be personally liable
to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the DGCL is amended after approval
by the stockholders of this Article&nbsp;VII to authorize corporate action further eliminating or limiting the personal liability of directors,
then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended,
automatically and without further action, upon the date of such amendment.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing
provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities
Act and is theretofore unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have entered into indemnification
agreements with each of our current directors and executive officers. These agreements require us to indemnify these individuals to the
fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us, and to advance expenses
incurred as a result of any proceeding against them as to which they could be indemnified. We also intend to enter into indemnification
agreements with future directors and executive officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item&nbsp;15. Recent Sales of Unregistered
Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The SPA Notes, the SPA Warrants
and the PA Warrants, were not registered under the Securities Act, and were issued in reliance on the exemption from registration requirements
thereof provided by Section&nbsp;4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder as a transaction by an issuer
not involving a public offering without any form of general solicitation or general advertising.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item&nbsp;16. Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; vertical-align: bottom; text-align: left; width: 9%"><FONT STYLE="font-size: 10pt"><B>Exhibit No.</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-right: 1.25pt; padding-left: 1.25pt; width: 1%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; vertical-align: bottom; text-align: left; width: 49%"><FONT STYLE="font-size: 10pt"><B>Description of Exhibits</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-right: 1.25pt; padding-left: 1.25pt; width: 1%; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; vertical-align: bottom; text-align: left; width: 40%"><FONT STYLE="font-size: 10pt"><B>Incorporation by Reference</B></FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">2.1+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021033654/fs42021a3_property.htm#T201">Agreement and Plan of Merger, dated as of January 27, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Annex A to Amendment No. 3 to Registration Statement on Form S-4 (File No. 333-255027) filed on June 23, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">2.2</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex2-2_property.htm">First Amendment to Agreement and Plan of Merger, dated as of February 25, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 2.2 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">2.3</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021030063/fs42021a1ex2-3_property.htm">Second Amendment to Agreement and Plan of Merger, dated as of May 3, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 2.3 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-255027) filed on June 1, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">2.4</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021033654/fs42021a3ex2-4_property.htm">Third Amendment to Agreement and Plan of Merger, dated as of June 14, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 2.4 to Amendment No. 3 to Registration Statement on Form S-4 (File No. 333-255027) filed on June 23, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">2.5</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021038096/ea144532ex2-5_propertysol.htm">Fourth Amendment to Agreement and Plan of Merger, dated as of July 12, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 2.5 to the Current Report on Form 8-K filed on July 22, 2021.</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023071438/ea184366ex3-1_faraday.htm"><FONT STYLE="font-size: 10pt">Th</FONT><FONT STYLE="font-size: 10pt">ir</FONT><FONT STYLE="font-size: 10pt">d Amended and Restated Certificate of Incorporation of the Company</FONT></A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 3.1 to the Current Report on Form 8-K filed on August 29, 2023.</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">3.2</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024010694/ea192788ex3-1_faraday.htm"><FONT STYLE="font-size: 10pt">Certificate of Amendment to the </FONT><FONT STYLE="font-size: 10pt">Thir</FONT><FONT STYLE="font-size: 10pt">d Amended and Restated Certificate of Incorporation of the Company</FONT></A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 3.1 to the Current Report on Form 8-K filed on February 7, 2024.</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">3.3</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024016665/ea0200677ex3-1_faraday.htm"><FONT STYLE="font-size: 10pt">Second</FONT> <FONT STYLE="font-size: 10pt">Certificate of Amendment to the Third Amended and Restated Certificate of Incorporation of the Company</FONT></A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 3.1 to the Current Report on Form 8-K filed on February 26, 2024.</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">3.4</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024064185/ea021039501ex3-1_faraday.htm">Third Certificate of Amendment to the Third Amended and Restated Certificate of Incorporation of the Company</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 3.1 to the Current Report on Form 8-K filed on August 1, 2024.</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">3.5</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024069327/ea021150201ex3-1_faraday.htm">Fourth Certificate of Amendment to the Third Amended and Restated Certificate of Incorporation of the Company</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 3.1 to the Current Report on Form 8-K filed on August 15, 2024.</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">3.6</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023049711/ea180273ex3-2_faraday.htm">Amended and Restated Bylaws of the Company</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit 3.2 to the Current Report on Form 8-K filed on June 16, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023071375/ea184109-s3a2_faraday.htm#a_009a" STYLE="-sec-extract: exhibit">Description of the Securities</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt 1.25pt; text-align: justify"><FONT STYLE="font-size: 10pt">S-3/A (Registration Statement) filed on August 29, 2023</FONT></TD></TR>
  </TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.2</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex4-2_property.htm">Specimen Common Stock Certificate</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.2 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.3</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex4-3_property.htm">Specimen Warrant Certificate</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.3 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.4</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex4-5_property.htm">Warrant Agreement between Continental Stock Transfer &amp; Trust Company and the Company</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.5 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.5</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022047732/ea164363ex4-1_faraday.htm">Form of Common Stock Purchase Warrant (under Securities Purchase Agreement, dated as of August 14, 2022)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on August 15, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.6</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex4-1_faradayfuture.htm">Form of Common Stock Purchase Warrant (under Amendment No. 1 to the Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.7</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex4-2_faradayfuture.htm">Form of Adjustment Warrant (under Amendment No. 1 to Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.2 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.8</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex4-1_faraday.htm">Form of Tranche C Warrant (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.9</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex4-2_faraday.htm">Form of Replacement Warrant (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.2 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.10</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex4-1_faraday.htm">Form of Common Stock Purchase Warrant (under Amendment No. 8 to Security Purchase Agreement, dated May 8, 2023)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.11</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex4-1_faraday.htm">Form of FFVV Common Stock Purchase Warrant.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.12</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex4-2_faraday.htm">Form of Senyun Common Stock Purchase Warrant.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.2 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.13</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023063824/ea182959ex4-1_faraday.htm">Common Stock Purchase Warrant, dated August 4, 2023, issued to Streeter Ville Capital, LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on August 7, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.14</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023078860/ea185663ex4-1_faraday.htm">Common Stock Purchase Warrant, dated September 21, 2023, issued to FF Vitality Ventures LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on September 22, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.15</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex4-1_faraday.htm">Form of Warrant</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.1 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.16</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex4-2_faraday.htm">Form of Incremental Warrant</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.2 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.17</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex4-3_faraday.htm">Form of Placement Agent Warrant</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.3 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.18</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex4-4_faraday.htm">Form of Secured Convertible Note</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 4.4 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">5.1*</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><A HREF="ea021794101ex5-1_faraday.htm">Opinion of Pryor Cashman LLP</A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021038096/ea144532ex10-1_propertysol.htm">Amended and Restated Registration Rights Agreement between the Company and certain holders identified therein</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on July 22, 2021.</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-10_property.htm">Form of Subscription Agreement between the Company and the subscribers party thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.10 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.3</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023003067/ea171709ex10-1_faraday.htm">Amended and Restated Shareholder Agreement dated as of January 13, 2023, by and between the Company and FF Top Holding LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on January 17, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.4</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-12_property.htm">Form of Support Agreement between FF Intelligent Mobility Global Holdings Ltd. and FF Top Holding Limited.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.12 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.5</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-13_property.htm">Form of Support Agreement between FF Intelligent Mobility Global Holdings Ltd. and Season Smart Limited.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.13 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.6</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-14_property.htm">Form of Support Agreement between FF Intelligent Mobility Global Holdings Ltd. and Founding Future Creditors Trust.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.14 to Registration Statement on Form S-4 (File No.333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.7</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-15_property.htm">Sponsor Support Agreement between Property Solutions Acquisition Corp. and Property Solutions Acquisition Sponsor, LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.15 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.8</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-16_property.htm">Form of Lock-up Agreement between the Company and certain stockholders party thereto.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.16 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.9</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-17_property.htm">Form of Lock-up Agreement between the Company and Property Solutions Acquisition Sponsor, LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.17 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.10#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024064185/ea021039501ex10-1_faraday.htm" STYLE="-sec-extract: exhibit">Faraday Future Intelligent Electric Inc. Amended and Restated 2021 Stock Incentive Plan, effective June 20, 2024</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">Exhibit 10.1 to the Current Report on Form 8-K filed on August 1, 2024</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.11</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-19_property.htm">Second Amended and Restated Note Purchase Agreement, dated as of October 9, 2020 among Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC, and Robin Prop Holdco LLC, as Issuers, the Guarantors party thereto, Birch Lake Fund Management, LP, as Collateral Agent for the benefit of the Secured Parties, U.S. Bank National Association, as Notes Agent for the Purchasers and the Purchasers Party Thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.19 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.12</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-20_property.htm">First Amendment and Waiver to Second Amended and Restated Note Purchase Agreement, dated as of January 13, 2021 among Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC, and Robin Prop Holdco LLC, as Issuers, the Guarantors Party Thereto, Birch Lake Fund Management, LP, as Collateral Agent for the benefit of the Secured Parties, U.S. Bank National Association, as Notes Agent for the Purchasers and the Purchasers party thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.20 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.13</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-21_property.htm">Second Amendment and Waiver to Second Amended and Restated Note Purchase Agreement, dated as of March 1, 2021 among Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC, and Robin Prop Holdco LLC, as Issuers, the Guarantors party thereto, Birch Lake Fund Management, LP, as Collateral Agent for the benefit of the Secured Parties, U.S. Bank National Association, as Notes Agent for the Purchasers and the Purchasers party thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.21 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.14</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-22_property.htm">Ares Capital Corporation Priority Last Out Secured Promissory Note by Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.22 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.15</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-23_property.htm">Ares Centre Street Partnership Priority Last Out Secured Promissory Note by Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.23 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.16</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-24_property.htm">Ares Credit Strategies Priority Last Out Secured Promissory Note by Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.24 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-25_property.htm">Ares Direct Finance I LP Priority Last Out Secured Promissory Note by Faraday&amp;Future Inc., FF Inc., Faraday SPE, LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.25 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  </TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.18#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-29_property.htm">Offer Letter dated October 10, 2018 between Tin Mok and Faraday&amp;Future Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.29 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.19#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-30_property.htm">Sign On Bonus Addendum Letter dated March 26, 2019 between Chui Tin Mok and Faraday&amp;Future Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.30 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.20#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-31_property.htm">Sign On Bonus Addendum Letter dated March 11, 2018 between Chui Tin Mok and Faraday&amp;Future Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.31 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.21#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-32_property.htm">Smart King Ltd. Equity Incentive Plan, as Adopted on February 1, 2018, as Amended and Restated Effective February 1, 2018</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.32 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.22#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-33_property.htm">Form of Smart King Ltd. Equity Incentive Plan Option Award Agreement (United States)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.33 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.23#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-34_property.htm">Form of Smart King Ltd. Equity Incentive Plan Option Award Agreement (China)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.34 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.24#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-35_property.htm">Smart King Ltd. Special Talent Incentive Plan, as Adopted on May 2, 2019, as Amended on July 26, 2020</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.35 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.25#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-36_property.htm">Form of Smart King Ltd. Special Talent Incentive Plan Share Option Agreement (Individual)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.36 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.26#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-37_property.htm">Form of Smart King Ltd. Special Talent Incentive Plan Share Option Agreement (Entity)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.37 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.27#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021020004/fs42021ex10-38_property.htm">Form of Amended and Restated Employment Agreement by and among Faraday Future Intelligent Electric Inc., Faraday&amp;Future Inc. and Dr. Carsten Breitfeld</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.38 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.28#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390021038096/ea144532ex10-32_propertysol.htm">Form of Director and Officer Indemnification Agreement by and between the Company and its directors and officers</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.32 to the Current Report on Form 8-K filed on July 22, 2021</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.29#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000162828022014386/ex1035firstamendmenttoempl.htm">First Amendment to Employment Agreement by and among Faraday Future Intelligent Electric Inc., Faraday&amp;Future Inc., and Carsten Breitfeld dated January 31, 2022.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.35 to the Annual Report on Form 10-K filed on May 13, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.30#</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022054056/ea165369ex10-1_faradayfuture.htm">Second Amendment to Amended and Restated Employment Agreement by and among Faraday Future Intelligent Electric Inc., Faraday&amp;Future Inc. and Carsten Breitfeld dated September 3, 2022</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on September 6, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.31#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022010235/ea156350ex10-1_faraday.htm">Management Services Agreement, dated as of February 23, 2022, by and between Faraday Future Intelligent Electric Inc. and AP Services, LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on March 2, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.32+^</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022051947/ea164019ex10-31_faraday.htm">Contract Manufacturing and Supply Agreement by and between Faraday&amp;Future Inc. and Myoung Shin Co., Ltd. dated February 4, 2022</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.31 to Amendment No. 3 to Registration Statement on Form S-1 (File No. 333-258993) filed on August 30, 2022</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.33+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022051947/ea164019ex10-32_faraday.htm">FF Global Partners LLC Second Amended and Restated Limited Liability Company Agreement dated as of May 16, 2022</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.32 to Amendment No. 3 to Registration Statement on Form S-1 (File No. 333-258993) filed on August 30, 2022 </FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.34</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000162828022019980/conversionpriceamendment.htm">Amendment letter agreement, dated as of July 26, 2022, among Faraday Future Intelligent Electric Inc., FF Aventuras SPV XI, LLC, FF Adventures SPV XVIII LLC, FF Ventures SPV IX LLC and FF Venturas SPV X LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on August 2, 2022.</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.35^</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022047732/ea164363ex10-1_faraday.htm">Securities Purchase Agreement, dated as of August 14, 2022, among Faraday Future Intelligent Electric Inc., FF Simplicity Ventures LLC and the purchasers from time to time party thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on August 15, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.36</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022047732/ea164363ex10-2_faraday.htm">Form of Convertible Senior Secured Promissory Note (under Securities Purchase Agreement, dated as of August 14, 2022)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on August 15, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.37+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-3_faradayfuture.htm">Amendment No. 1 to Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022, by and among Faraday Future Intelligent Electric Inc, the credit parties from time to time party thereto, the financial institutions or other entities from time to time party thereto and FF Simplicity Ventures LLC, as administrative and collateral agent</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.3 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.38</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-4_faradayfuture.htm">Form of Convertible Senior Secured Promissory Note (under Amendment No. 1 to Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.4 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.39</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-5_faradayfuture.htm">Joinder and Amendment Agreement, dated as of September 25, 2022, by and among Senyun International Ltd., FF Simplicity Ventures LLC, RAAJJ Trading LLC and Faraday Future Intelligent Electric Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.5 to the Current Report on Form 8-K filed on September 26, 2022 </FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.40</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-6_faradayfuture.htm">Warrant Exercise Agreement, dated as of September 23, 2022, among Faraday Future Intelligent Electric Inc. and the investors listed on the signature pages thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.6 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.41+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-7_faradayfuture.htm">Letter Agreement Regarding Advanced Approval, dated as of September 23, 2022, between Faraday Future Intelligent Electric Inc. and FF Top Holding LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.7 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.42+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-8_faradayfuture.htm">Letter Agreement Regarding Advanced Approval, dated as of September 23, 2022, between Faraday Future Intelligent Electric Inc. and Season Smart Limited</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.8 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.43</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-1_faradayfuture.htm">Heads of Agreement, dated as of September 23, 2022, by and among Faraday Future Intelligent Electric Inc., FF Global Partners LLC and FF Top Holding LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.44</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022058634/ea166277ex10-2_faradayfuture.htm">Mutual Release, dated as of September 23, 2022, among Faraday Future Intelligent Electric Inc., FF Global Partners LLC, FF Top Holding LLC and the other parties thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on September 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.45</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022063006/ea166955ex10-1_faraday.htm">Exchange Agreement, dated October 10, 2022, by and among Faraday Future Intelligent Electric Inc., FF Aventuras SPV XI LLC, FF Venturas SPV X LLC, FF Ventures SPV IX LLC and FF Adventures SPV XVIII LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on October 11, 2022</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.46</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022065097/ea167342ex10-1_faraday.htm">Exchange Agreement, dated as of October 19, 2022, by and among Faraday Future Intelligent Electric Inc., FF Aventuras SPV XI LLC, FF Venturas SPV X LLC, FF Ventures SPV IX LLC and FF Adventures SPV XVIII LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on October 20, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.47</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022070210/ea168200ex10-47_faraday.htm">Summary of Amendment dated October 22, 2022 to the Letter Agreement Regarding Advanced Approval, dated as of September 23, 2022, between Faraday Future Intelligent Electric Inc. and FF Top Holding LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.47 to Amendment No. 6 to Registration Statement on Form S-1 (File No. 333-258993) filed on November 8, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.48</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022066044/ea167527ex10-1_faraday.htm">Limited Consent and Third Amendment, dated as of October 24, 2022, by and among Senyun International Ltd., FF Simplicity Ventures LLC, RAAJJ Trading LLC and Faraday Future Intelligent Electric Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on October 25, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.49#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022066540/ea167616ex10-1_faraday.htm">Offer Letter, dated October 22, 2022, by and between Faraday Future Intelligent Electric Inc. and Yun Han</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on October 26, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.50#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022075569/ea169340ex10-1_faraday.htm">Employment Agreement, dated as of November 27, 2022, by and among Faraday Future Intelligent Electric Inc., Faraday&amp;Future Inc. and Xuefeng Chen</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on November 28, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.51</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022070139/ea168233ex10-1_faraday.htm">Limited Consent and Amendment, dated as of November 8, 2022, by and among Senyun International Ltd., FF Simplicity Ventures LLC, RAAJJ Trading LLC and Faraday Future Intelligent Electric Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on November 8, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.52</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022071631/ea168525ex10-1_faraday.htm">Standby Equity Purchase Agreement, dated as of November 11, 2022, by and between YA II PN, Ltd. and Faraday Future Intelligent Electric Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on November 14, 2022</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.53</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390022083563/ea170984ex10-1_faraday.htm">Letter Agreement, dated December 28, 2022, by and among Faraday Future Intelligent Electric Inc., Senyun International Ltd. and FF Simplicity Ventures LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on December 29, 2022</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.54</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008600/ea172608ex10-54_faraday.htm">Limited Consent and Amendment No. 5, dated January 25, 2023, by and among Faraday Future Intelligent Electric Inc., Senyun International Ltd. and FF Simplicity Ventures LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.54 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-268972) filed on February 7, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.55#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023006706/ea172406ex10-1_faraday.htm">Termination Agreement and General Release, dated January 30, 2023, by and among Carsten Breitfeld, Faraday Future Intelligent Electric Inc. and Faraday&amp;Future Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K/A filed on February 1, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.56+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex10-1_faraday.htm">Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023, by and among Faraday Future Intelligent Electric Inc., its subsidiaries party thereto, Senyun International Ltd., FF Top Holding LLC, FF Simplicity Ventures LLC and the other Purchasers party thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.57</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex10-2_faraday.htm">Form of Tranche C Note (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.58</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex10-3_faraday.htm">Form of Replacement Note (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.3 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.59</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex10-4_faraday.htm">Form of Exchange Note (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.4 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  </TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.60+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex10-5_faraday.htm">Exchange Agreement, dated as of February 3, 2023, by and between Faraday Future Intelligent Electric Inc. and Senyun International Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.5 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.61+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023008231/ea172761ex10-6_faraday.htm">Exchange Agreement, dated as of February 3, 2023, by and among Faraday Future Intelligent Electric Inc. and the affiliates of FF Simplicity Ventures LLC party thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.6 to the Current Report on Form 8-K filed on February 6, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.62</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000162828023007358/ex1062ffgp-ffieconsultings.htm">Consulting Services Agreement, dated as of March 6, 2023, by and between Faraday Future Intelligent Electric Inc. and FF Global Partners LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.62 to the Annual Report on Form 10-K/A filed on August 21, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.63</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023022236/ea175629ex10-1_faraday.htm">Amendment No. 7 to Securities Purchase Agreement, dated March 23, 2023, by and among Faraday Future Intelligent Electric Inc., FF Simplicity Ventures LLC, Senyun International Ltd., and FF Prosperity Ventures LLC</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on March 23, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.64</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex10-1_faraday.htm">Amendment No. 8 to Securities Purchase Agreement, dated May 8, 2023, by and between Faraday Future Intelligent Electric Inc. and Senyun International Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.65</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex10-2_faraday.htm">Amendment to ATW Notes and Warrants, dated as of May 9, 2023, by and among Faraday Future Intelligent Electric Inc., FF Simplicity Ventures LLC and FF Prosperity Ventures LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.66+</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex10-3_faraday.htm">Securities Purchase Agreement, dated as of May 8, 2023, among Faraday Future Intelligent Electric Inc. and the purchasers from time to time party thereto.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.3 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.67</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex10-4_faraday.htm">Form of Unsecured Convertible Senior Promissory Note.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.4 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.68</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex10-5_faraday.htm">Equity Commitment Letter, dated as of May 8, 2023, by and among FF Global Partners Investment LLC, Metaverse Horizon Limited and Faraday Future Intelligent Electric Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.5 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.69</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023037925/ea178198ex10-6_faraday.htm">Equity Commitment Letter, dated as of May 8, 2023, by and among V W Investment Holding Limited, Lijun Jin and Faraday Future Intelligent Electric Inc.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.6 to the Current Report on Form 8-K filed on May 10, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.70</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023049711/ea180273ex10-1_faraday.htm">Purchase Agreement, dated June 16, 2023, by and between the Company and Xuefeng Chen.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on June 16, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.71</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex10-1_faraday.htm">Amendment No. 1 to Securities Purchase Agreement, dated as of June 26, 2023, among Faraday Future Intelligent Electric Inc. and the Unsecured SPA Purchasers party thereto.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.72</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex10-2_faraday.htm">Joinder and Amendment Agreement, dated as of June 26, 2023, among Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.73</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex10-3_faraday.htm">Second Joinder and Amendment Agreement, dated as of June 26, 2023, among Faraday Future Intelligent Electric Inc. and Senyun International Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.3 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.74</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex10-4_faraday.htm">Form of FFVV Unsecured Convertible Senior Promissory Note.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.4 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>

<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.75</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023051859/ea180918ex10-5_faraday.htm">Form of Senyun International Ltd. Unsecured Convertible Senior Promissory Note.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.5 to the Current Report on Form 8-K filed on June 27, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.76#</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023056255/ea181642ex10-1_faraday.htm">Offer Letter, dated July 11, 2023.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on July 11, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.77</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023063824/ea182959ex10-1_faraday.htm">Securities Purchase Agreement, dated as of August 4, 2023, among Faraday Future Intelligent Electric Inc. and Streeterville Capital, LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on August 7, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.78</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023063824/ea182959ex10-2_faraday.htm">Unsecured Convertible Senior Promissory Note, dated August 4, 2023, issued to Streeterville Capital, LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on August 7, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.79</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023063824/ea182959ex10-3_faraday.htm">Amendment No. 9 to Securities Purchase Agreement, dated August 4 2023, by and between Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.3 to the Current Report on Form 8-K filed on August 7, 2023</FONT></TD></TR>
</TABLE>
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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.80</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023063824/ea182959ex10-4_faraday.htm">Amendment No. 10 to Securities Purchase Agreement, dated August 4, 2023, by and between Faraday Future Intelligent Electric Inc. and Senyun International Ltd.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.4 to the Current Report on Form 8-K filed on August 7, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.81</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023063824/ea182959ex10-5_faraday.htm">Waiver and Amendment Agreement, dated as of August 4, 2023, among Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.5 to the Current Report on Form 8-K filed on August 7, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.82</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023078444/ea185584ex10-1_faraday.htm">Form of Salary Deduction and Stock Purchase Agreement.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on September 22, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.83</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390023078860/ea185663ex10-1_faraday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Amendment Agreement, dated as of September 21, 2023, among Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.</FONT></A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on September 22, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.84</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390023078860/ea185663ex10-2_faraday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unsecured Convertible Senior Promissory Note, dated September 21, 2023, issued to FF Vitality Ventures LLC.</FONT></A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on September 22, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.85</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000101376223004944/ea186961ex10-1_faraday.htm">Lease Agreement dated October 19, 2023</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on October 19, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.86</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000101376223004944/ea186961ex10-2_faraday.htm">Guaranty of Lease dated October 19, 2023</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on October 19, 2023</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.87</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390023099308/ea190865ex10-1_faraday.htm">Purchase Agreement, dated December 21, 2023, by and between the Company and Matthias Aydt.</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K/A filed on December 28, 2023</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.88^</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000162828024025420/exhibit1088-redacted_farad.htm">Settlement Agreement, dated March 11, 2024, by and between the Faraday Future Intelligent Electric Inc. and Palantir Technologies, Inc.</A> </FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.88 to the Annual Report on Form 10-K filed on May 28, 2024</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.89</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000121390024064910/ea021046301ex10-1_faraday.htm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of Waiver Agreement, dated August 2, 2024, by and between the Company and the holders party thereto.</FONT></A></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on August 2, 2024</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.89</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex10-1_faraday.htm">Securities Purchase Agreement, dated September 5, 2024, by and among Faraday Future Intelligent Electric Inc. and the parties thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.90</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex10-2_faraday.htm">Form of Security Agreement</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.2 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.91</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024076294/ea021353201ex10-3_faraday.htm">Subordination and Intercreditor Agreement, dated September 5, 2024, by and among Faraday Future Intelligent Electric Inc. and the parties thereto</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.3 to the Current Report on Form 8-K filed on September 6, 2024</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.92</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000121390024079952/ea021504301ex10-1_faraday.htm">Offer Letter by and between Faraday Future Intelligent Electric Inc. and Koti Meka, dated September 17, 2024</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 10.1 to the Current Report on Form 8-K filed on September 18, 2024</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">21.1</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1805521/000162828024025420/ex211-ffiesubsx2023.htm">Subsidiaries of the Registrant</A></FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 21.1 to the Annual Report on Form 10-K filed on May 28, 2024</FONT></TD></TR>

<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23.1*</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea021794101ex23-1_faraday.htm">Consent of Mazars USA LLP, independent registered public accounting firm of the Company</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">23.2*</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif"><A HREF="ea021794101ex5-1_faraday.htm">Consent of Pryor Cashman LLP (included in Exhibit 5.1)</A></P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">97.1</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1805521/000162828024025420/exhibit971-clawbackpolicy.htm">Clawback Policy</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Exhibit 97.1 to the Annual Report on Form 10-K filed on May 28, 2024&nbsp;</FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">107*</FONT></TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-top: 1.5pt; padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea021794101ex-fee_faraday.htm">Filing Fee Table</A></FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-right: 1.25pt; padding-left: 1.25pt; text-align: justify">&nbsp;</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Filed
herewith.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">+</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">The schedules and exhibits
to this agreement have been omitted pursuant to Item&nbsp;601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit
will be furnished to the SEC upon request.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">#</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Indicates management contract
or compensatory plan or arrangement.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">^</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Portions of this exhibit have
been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Item&nbsp;17. Undertakings.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The undersigned registrant
hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">A.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To file, during any period in
which offers or sales are being made, a post-effective&nbsp;amendment to this registration statement:</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">To include any prospectus required by section 10(a)(3) of the Securities Act;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective&nbsp;amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule&nbsp;424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo; table in the effective registration statement.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">B.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">That, for the purpose of determining any liability under the Securities Act, each such post-effective&nbsp;amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">C.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">To remove from registration by means of a post-effective&nbsp;amendment any of the securities being registered which remain unsold at the termination of the offering.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">D.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">That, for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule&nbsp;424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule&nbsp;430B or other than prospectuses filed in reliance on Rule&nbsp;430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">E.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(i)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule&nbsp;424;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(ii)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(iii)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.75in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">(iv)</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">F.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.</FONT></TD></TR>
  </TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Los Angeles, State of California, on November 1, 2024.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-size: 10pt; text-transform: uppercase">FARADAY FUTURE INTELLIGENT&nbsp;ELECTRIC INC.</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify; width: 60%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 4%">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify; width: 36%">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">/s/ Matthias Aydt</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">Matthias Aydt</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt"><I>Global Chief Executive Officer</I></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">KNOW ALL MEN BY THESE PRESENTS,
that each of the undersigned constitutes and appoints Matthias Aydt, the Chief Executive Officer, his or her true and lawful attorney-in-fact
and agent, with full power of substitution and revocation, for him or her and in his or her name, place and stead, in any and all capacities,
to execute any or all amendments including any post-effective amendments and supplements to this Registration Statement, and any additional
Registration Statement filed pursuant to Rule 462(b), and to file the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and
perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he or she might or could
do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully
do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons in the capacities
and on the dates indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 36%; border-bottom: black 1.5pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 42%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 20%; border-bottom: black 1.5pt solid; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Matthias Aydt</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global Chief Executive Officer and Director</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 1, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Matthias Aydt</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(principal executive officer)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Koti Meka</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD ROWSPAN="2" STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chief Financial Officer (principal financial and accounting officer)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 1, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Koti Meka</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Chui Tin Mok</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 1, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chui Tin Mok</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Chad Chen</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 1, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chad Chen</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Jie Sheng</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 1, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jie Sheng</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1.5pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Lev Peker</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">November 1, 2024</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Lev Peker</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  </TABLE>

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{"company-data": {"conformed-name": "FARADAY FUTURE INTELLIGENT ELECTRIC INC.", "cik": "0001805521", "assigned-sic": "3711", "organization-name": "04 Manufacturing", "irs-number": "844720320", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-282953", "film-number": "241419683"}, "business-address": {"street1": "654 MADISON AVENUE, SUITE 1009", "city": "NEW YORK", "state": "NY", "zip": "10065", "phone": "646 502 9845"}, "mail-address": {"street1": "654 MADISON AVENUE, SUITE 1009", "city": "NEW YORK", "state": "NY", "zip": "10065"}, "former-company": {"former-conformed-name": "Property Solutions Acquisition Corp.", "date-changed": "20200304"}}
As filed with the Securities and Exchange Commission
on November 1, 2024
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
Faraday
Future Intelligent Electric Inc.
(Exact Name of Registrant as Specified in Its
Charter)
Delaware
3711
84-4720320
(State or Other Jurisdiction of
Incorporation or Organization)
(Primary standard industrial
classification code number)
(I.R.S. Employer
Identification No.)
18455 S. Figueroa Street
Gardena, CA 90248
(424) 276-7616
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant's Principal Executive Offices)
Koti Meka
Chief Financial Officer
Faraday Future Intelligent Electric Inc.
18455 S. Figueroa Street
Gardena, CA 90248
(310) 415-4807
(Name, Address, Including Zip Code, and Telephone
Number, Including Area Code, of Agent for Service)
Copies to:
M. Ali Panjwani
Pryor Cashman LLP
7 Times Square
New York, NY 10036
Tel: (212) 421-4100
Approximate date of commencement
of proposed sale to the public: From time to time after the effective date of this registration statement.
If any of the securities being
registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933 check the following box:
☒
If this form is filed to register
additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list
the Securities Act registration statement number of the earlier effective registration statement for the same offering.
☐
If this form is a post-effective
amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
☐
If this form is a post-effective
amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities
Act registration statement number of the earlier effective registration statement for the same offering.
☐
Indicate by check mark whether
the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging
growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting
company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
☐
The registrant hereby amends
this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further
amendment that specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a)
of the Securities Act or until the registration statement shall become effective on such date as the Securities and Exchange Commission,
acting pursuant to said Section 8(a), may determine.
The
information in this preliminary prospectus is not complete and may be changed. Neither we nor the selling securityholders may sell these
securities until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus
is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or
sale is not permitted.
PRELIMINARY PROSPECTUS
SUBJECT TO COMPLETION — DATED NOVEMBER 1, 2024
Up to 29,659,781 Shares of Class A Common Stock
Issued to a Former Vendor and
Issuable Upon Exercise of the Warrants and PA
Warrants and Conversion of the SPA Notes and Applicable Tranche D Notes
This prospectus relates to the issuance by us, and the offer and sale
from time to time by the Selling Securityholders, of up to an aggregate of 29,659,781 shares of the Class A common stock, par value $0.0001
per share, of Faraday Future Intelligent Electric Inc. ("FFIE" and such Class A common stock, the "Class A Common Stock"),
of which (i) up to 28,017,654 Class A Common Stock are issuable upon exercise of certain warrants (the "Warrants"), and placement
agent warrants (the "PA Warrants"); and conversion of certain secured convertible promissory notes (the "Secured Notes")
and certain Incremental Notes (as defined below, together with the Secured Notes, the "SPA Notes") underlying the incremental
warrants (the "Incremental Warrants", together with the Warrants and PA Warrants, the "SPA Warrants"), issued
in a private placement (such Class A Common Stock, as exercisable and convertible under the SPA Notes and the Warrants and PA Warrants,
the "SPA Shares"), to certain institutional investors pursuant to a Securities Purchase Agreement, dated as of September 5,
2024 (the "SPA", with Secured Notes, Warrants, and Incremental Warrants, the "Financing Documents"); (ii) up to
561,833 shares of Class A Common Stock underlying the Applicable Tranche D Notes held by several holders, issued by the Company pursuant
to certain Pre-existing SPA; and (iii) 1,080,294 shares of Class A Common Stock issued to Palantir Technologies Inc. ("Palantir")
in settlement of amounts owed to Palantir. Additional details regarding the securities to which this prospectus relates and the Selling
Securityholders are set forth in this prospectus under "
Information Related to Offered Securities
" and "
Description
of Securities.
"
We are registering the securities
for resale pursuant to the Selling Securityholders' registration rights under the SPA between us and the Selling Securityholders.
Our registration of the securities covered by this prospectus does not mean that the Selling Securityholders will offer or sell any of
the SPA Shares. The Selling Securityholders may offer, sell or distribute all or a portion of their SPA Shares in a number of different
ways and at varying prices, including publicly or through private transactions at prevailing market prices or at negotiated prices. We
will not receive any proceeds from the sale of the SPA Shares pursuant to this prospectus. We provide more information about how the Selling
Securityholders may sell the SPA Shares in the section entitled "
Plan of Distribution
."
Sales of a substantial
number of shares of Class A Common Stock in the public market, including the resale of the shares of common stock held by FFIE stockholders
pursuant to this prospectus or pursuant to Rule 144, could occur at any time. These sales, or the perception in the market that the holders
of a large number of shares of Class A Common Stock intend to sell shares, could reduce the market price of the Class A Common Stock and
make it more difficult for you to sell your holdings at times and prices that you determine are appropriate. Furthermore, we expect that,
because there is a large number of shares being registered pursuant to the registration statement of which this prospectus forms a part,
the Selling Securityholders will continue to offer the securities covered thereby pursuant to this prospectus or pursuant to Rule 144
for a significant period of time, the precise duration of which cannot be predicted. Accordingly, the adverse market and price pressures
resulting from an offering pursuant to the registration statement may continue for an extended period of time
.
Our shares of Class A Common
Stock and our public warrants ("Public Warrants") are listed on The Nasdaq Stock Market ("Nasdaq"), under the
symbols "FFIE" and "FFIEW," respectively. On October 28, 2024, the closing price of our Class A Common Stock was
$2.24 per share and the closing price of our Public Warrants was $0.021 per Public Warrant.
The shares of Class A Common
Stock being offered pursuant to this prospectus are shares of Faraday Future Intelligent Electric Inc. ("FFIE"), a holding
company incorporated in the State of Delaware. As a holding company with no material operations of its own, FFIE conducts its operations
through its operating subsidiaries. We currently have a majority of our operations in the U.S. conducted through our U.S.-domiciled operating
subsidiaries. We also operate our business in the People's Republic of China and plan to have significant operations in the future
in both Mainland China and Hong Kong (together, "PRC" or "China") through our subsidiaries organized in the PRC
(collectively, the "PRC Subsidiaries"). Investors in our Class A Common Stock should be aware that they are purchasing equity
solely in FFIE, a Delaware holding company. There are various risks associated with our current operating presence in China and the potential
expansion of our operations in PRC, which is subject to political and economic influence from China. Recently, the Chinese government
initiated a series of regulatory actions and made statements to regulate business operations in China with little advance notice, including
cracking down on illegal activities in the securities market, enhancing supervision over China-based companies that seek to conduct offshore
securities offerings or be listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts
in anti-monopoly enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon legislative or administrative
regulation-making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will
be modified or promulgated if any, and the potential impact such modified or new laws and regulations will have on our business operations,
our ability to accept foreign investments and to maintain FFIE's listing on a U.S. exchange. The Chinese government may intervene
or influence the operations of our PRC Subsidiaries, or at any time exert more control over offerings conducted overseas and foreign investment
in China-based issuers in accordance with PRC laws and regulations, which could result in a material change in our operations and/or a
material reduction in the value of our Class A Common Stock. Additionally, the governmental and regulatory interference could significantly
limit or completely hinder our and the Selling Securityholders' ability to offer or continue to offer our shares of Class A Common
Stock to investors and cause the value of such securities to significantly decline or be worthless. For a detailed description of risks
related to our PRC operations, see "
Risk Factors – Risks Related to FF's Operations in China.
"
We are an "emerging
growth company" under federal securities laws and are subject to reduced public company reporting requirements. Investing in our
Class A Common Stock involves a high degree of risks. See the section entitled "
Risk Factors"
beginning on page 15
of this prospectus to read about factors you should consider before buying our securities.
Neither the Securities
and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus
is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus is          ,
2024.
TABLE OF CONTENTS
Page
ABOUT THIS PROSPECTUS
ii
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
iii
SUMMARY
1
RISK FACTORS
15
SELECTED FINANCIAL DATA
68
USE OF PROCEEDS
71
DETERMINATION OF OFFERING PRICE
71
MARKET INFORMATION FOR CLASS A COMMON STOCK AND DIVIDEND POLICY
71
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
73
BUSINESS
107
MANAGEMENT
135
EXECUTIVE AND DIRECTOR COMPENSATION
144
CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
155
PRINCIPAL STOCKHOLDERS
169
SELLING SECURITYHOLDERS
171
DESCRIPTION OF SECURITIES
176
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS
192
PLAN OF DISTRIBUTION
195
LEGAL MATTERS
198
EXPERTS
198
CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
198
WHERE YOU CAN FIND MORE INFORMATION
199
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
199
You should rely only on the
information provided in this prospectus, as well as the information incorporated by reference into this prospectus and any applicable
prospectus supplement. Neither we nor the Selling Securityholders have authorized anyone to provide you with different information. Neither
we nor the Selling Securityholders are making an offer of these securities in any jurisdiction where the offer is not permitted. You should
not assume that the information in this prospectus, any applicable prospectus supplement or any documents incorporated by reference is
accurate as of any date other than the date of the applicable document. Since the respective dates of this prospectus and the documents
incorporated by reference into this prospectus, our business, financial condition, results of operations and prospects may have changed.
Unless the context indicates
otherwise, references in this prospectus to "FFIE" refer to Faraday Future Intelligent Electric Inc. (f/k/a Property Solutions
Acquisition Corp.), a holding company incorporated in the State of Delaware, and not to its subsidiaries, and references herein to the
"Company," "FF," "we," "us," "our" and similar terms refer to FFIE and its
consolidated subsidiaries. We refer to our primary operating subsidiary in the U.S., Faraday&Future Inc., as "FF U.S."
We refer to all our subsidiaries organized in China (including Hong Kong) collectively as the "PRC Subsidiaries," a complete
list of which is set forth in
Exhibit 21.1
to the registration statement of which this prospectus forms a part.  References
to "PSAC" refer to Property Solutions Acquisition Corp., a Delaware corporation, our predecessor company prior to the consummation
of the Business Combination (as defined herein), and "Legacy FF" refers to FF Intelligent Mobility Global Holdings Ltd., an
exempted company with limited liability incorporated under the laws of the Cayman Islands, together with its consolidated subsidiaries,
prior to the Business Combination (as defined herein).
i
ABOUT THIS PROSPECTUS
This prospectus is part of
a registration statement on Form S-1 that we filed with the Securities and Exchange Commission (the "SEC"). The Selling Securityholders
may, from time to time, sell the securities offered by them described in this prospectus. We will not receive any proceeds from the sale
by such Selling Securityholders of the SPA Shares offered by them described in this prospectus.
Neither we nor the Selling
Securityholders have authorized anyone to provide you with any information or to make any representations other than those contained in
this prospectus, or any applicable prospectus supplement or any free writing prospectuses prepared by or on behalf of us or to which we
have referred you. Neither we nor the Selling Securityholders take responsibility for, and can provide no assurance as to the reliability
of, any other information that others may give you. Neither we nor the Selling Securityholders will make an offer to sell these securities
in any jurisdiction where the offer or sale is not permitted.
We may also provide a prospectus
supplement or post-effective amendment to the registration statement to add information to, or update or change information contained
in, this prospectus. You should read both this prospectus and any applicable prospectus supplement or post-effective amendment to the
registration statement together with the additional information to which we refer you in the section of this prospectus entitled "
Where
You Can Find More Information
."
ii
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus, any accompanying
prospectus supplement and the documents incorporated by reference herein and therein may contain forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although
the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable,
the Company cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are
inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements
concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking
statements. These statements may be preceded by, followed by or include the words "believes," "estimates," "expects,"
"projects," "forecasts," "may," "will," "should," "seeks," "plans,"
"scheduled," "anticipates" or "intends" or similar expressions.
Forward-looking statements
are not guarantees of performance. You should not put undue reliance on these statements which speak only as of the date hereof. You should
understand that the following important factors, among others, could affect the Company's future results and could cause those results
or other outcomes to differ materially from those expressed or implied in the Company's forward-looking statements:
●
the
                                            Company's ability to continue as a going concern and improve its liquidity and financial
                                            position;
●
the
                                            Company's ability to pay its outstanding obligations;
●
the
                                            Company's ability to remediate its material weaknesses in internal control over financial
                                            reporting and the risks related to the restatement of previously issued consolidated financial
                                            statements;
●
the
                                            Company's limited operating history and the significant barriers to growth it faces;
●
the
                                            Company's history of losses and expectation of continued losses;
●
the
                                            Company's ability to execute on its plans to develop and market its vehicles and the
                                            timing of these development programs;
●
the
                                            Company's estimates of the size of the markets for its vehicles and cost to bring those
                                            vehicles to market; the rate and degree of market acceptance of the Company's vehicles;
●
the
                                            Company's ability to cover future warrant claims;
●
the
                                            success of other competing manufacturers;
●
the
                                            performance and security of the Company's vehicles;
●
current
                                            and potential litigation involving the Company;
●
the
                                            Company's ability to receive funds from, satisfy the conditions precedent of and close
                                            on the various financings described elsewhere by the Company;
●
the
                                            result of future financing efforts, the failure of any of which could result in the Company
                                            seeking protection under the Bankruptcy Code;
●
the
                                            Company's indebtedness; the Company's ability to cover future warranty claims;
                                            the Company's ability to use its "at-the-market" program; insurance coverage;
iii
●
general
                                            economic and market conditions impacting demand for the Company's products;
●
potential
                                            negative impacts of a reverse stock split;
●
potential
                                            cost, headcount and salary reduction actions may not be sufficient or may not achieve their
                                            expected results;
●
circumstances
                                            outside of the Company's control, such as natural disasters, climate change, health epidemics
                                            and pandemics, terrorist attacks, and civil unrest;
●
risks
                                            related to the Company's operations in China;
●
the
                                            success of the Company's remedial measures taken in response to the Special Committee findings;
                                            the Company's dependence on its suppliers and contract manufacturer;
●
the
                                            Company's ability to develop and protect its technologies;
●
the
                                            Company's ability to protect against cybersecurity risks; and
●
the
                                            ability of the Company to attract and retain employees, any adverse developments in existing
                                            legal proceedings or the initiation of new legal proceedings, and volatility of the Company's
                                            stock price.
These
and other factors that could cause actual results to differ from those implied by the forward-looking statements in this prospectus are
more fully described in the "
Risk Factors
" section. The risks described in "
Risk Factors
" are not
exhaustive. New risk factors emerge from time to time, and it is not possible for us to predict all such risk factors, nor can the Company
assess the impact of all such risk factors on its business or the extent to which any factor or combination of factors may cause actual
results to differ materially from those contained in any forward-looking statements. All forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their entirety by the foregoing cautionary statements. The Company
undertakes no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.
iv
SUMMARY
This
summary highlights selected information appearing elsewhere in this prospectus, or the documents incorporated by reference herein. Because
it is a summary, it may not contain all of the information that may be important to you. To understand this offering fully, you should
read this entire prospectus, the registration statement of which this prospectus is a part and the documents incorporated by reference
herein carefully, including the information set forth under the heading "Risk Factors" and our financial statements.
The
Company
FF
is a California-based global shared intelligent mobility ecosystem company with a vision to disrupt the automotive industry.
With
headquarters in Los Angeles, California, the Company designs and engineers next-generation intelligent, connected, electric vehicles.
FF manufactures vehicles at its production facility in Hanford, California, with the possibility of additional future production capacity
needs addressed through a contract manufacturing partner in South Korea. The Company has additional engineering, sales, and operational
capabilities in China and is exploring opportunities for potential manufacturing capabilities in China through a joint venture or other
arrangement.
Since
its founding, the Company has created major innovations in technology and products, and a user centered business model. We believe these
innovations will enable FF to set new standards in luxury and performance that will enhance quality of life and redefine the future of
intelligent mobility.
Background
Property
Solutions Acquisition Corp., a special purpose acquisition company incorporated in Delaware, completed its initial public offering in
July 2020. On July 21, 2021, Faraday Future Intelligent Electric Inc. (f/k/a Property Solutions Acquisition Corp.), a Delaware corporation,
consummated the previously announced business combination pursuant to that certain Agreement and Plan of Merger, dated as of January
27, 2021 (as amended, the "Merger Agreement"), by and among FFIE, PSAC Merger Sub Ltd., an exempted company with limited
liability incorporated under the laws of the Cayman Islands and wholly-owned subsidiary of PSAC ("Merger Sub"), and FF Intelligent
Mobility Global Holdings Ltd., an exempted company with limited liability incorporated under the laws of the Cayman Islands ("Legacy
FF"). Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Legacy FF, with Legacy FF surviving the merger
as a wholly-owned subsidiary of FFIE (the "Business Combination"). Upon the consummation of the Business Combination, the
registrant changed its name from "Property Solutions Acquisition Corp." to "Faraday Future Intelligent Electric Inc."
Legacy FF is considered FFIE's accounting acquirer.
Pursuant to the terms of the
Merger Agreement, the Business Combination was effected on July 21, 2021 through the merger of Merger Sub with and into Legacy FF, with
Legacy FF surviving as the surviving company and a wholly-owned subsidiary of FFIE. Upon closing the Business Combination, FFIE received
$229.6 million in gross proceeds, of which FFIE received $206.4 million in cash, after payment of PSAC's transaction costs related
to the Business Combination and redemptions of $0.2 million. At the closing of the Business Combination, the outstanding Legacy FF Class A
ordinary shares, par value $0.00001 per share, Legacy FF Class B ordinary shares, par value $0.00001 per share, Legacy FF Class A-1
preferred shares, par value $0.00001 per share, Legacy FF Class A-2 preferred shares, par value $0.00001 per share, Legacy FF Class A-3
preferred shares, par value $0.00001 per share and Legacy FF redeemable preferred shares, par value $0.00001 per share were cancelled
and converted into a right to receive a pro rata portion of the 127.9 million shares of Class A Common Stock (13,323 shares of Class A
Common Stock after giving effect to subsequent reverse stock splits), and the outstanding Legacy FF converting debt and certain other
outstanding liabilities of Legacy FF were canceled and converted into the right to receive pro rata portions of approximately 24.5 million
shares of Class A Common Stock (2,553 shares of Class A Common Stock after giving effect to subsequent reverse stock splits) and the outstanding
Legacy FF Class B preferred shares, par value $0.00001 per share were canceled and converted into the right to receive pro rata portions
of approximately 64.0 million shares of Class B common stock (6,667 shares of Class B common stock after giving effect to subsequent reverse
stock splits), par value $0.0001 per share, of FFIE (the "Class B Common Stock," and together with the Class A Common Stock,
the "Common Stock"). Additionally, Legacy FF options and Legacy FF warrants that were outstanding immediately prior to the
closing of the Business Combination (and by their terms did not terminate upon the closing of the Business Combination) remained outstanding
and converted into the right to purchase pro rata portions of approximately 44.9 million shares of Class A Common Stock (4,678 shares
of Class A Common Stock after giving effect to subsequent reverse stock splits). Holders of the Legacy FF shares issued and outstanding
as of immediately prior to the closing of the Business Combination also have the contingent right to receive up to 25.0 million shares
of Class A Common Stock (2,605 shares of Class A Common Stock after giving effect to subsequent reverse stock splits) in two tranches
upon the occurrence of certain stock price-based triggering events as set forth in the Merger Agreement ("Earnout Shares").
On July 21, 2021, a number of purchasers (each, a "Subscriber")
purchased from FFIE an aggregate of 76.1 million shares of Class A Common Stock (7,928 shares of Class A Common Stock after giving effect
to subsequent reverse stock splits) (the "PIPE Shares"), for a purchase price of $10.00 per share ($96,000 per share after
giving effect to subsequent reverse stock splits) and an aggregate purchase price of $761.4 million, out of which FFIE received $692.4
million after payment of FFIE's transaction costs of $69.0 million), pursuant to separate subscription agreements entered into effective
as of January 27, 2021 (each, a "Subscription Agreement" and such investment in the PIPE Shares by the Subscribers collectively,
the "Private Placement"). Pursuant to the Subscription Agreements, FFIE gave certain registration rights to the Subscribers
with respect to the PIPE Shares. The sale of the PIPE Shares was consummated concurrently with the closing of the Business Combination.
1
Our
shares of Class A Common Stock and our Public Warrants are currently listed on The Nasdaq Stock Market ("Nasdaq") under the
symbols "FFIE" and "FFIEW," respectively.
The rights of holders of our Common Stock are governed by our third
amended and restated certificate of incorporation, as amended (the "Amended and Restated Charter"), our amended and restated
bylaws (the "Amended and Restated Bylaws") and the Delaware General Corporation Law (the "DGCL"). The Pre-existing
SPA Notes were issued pursuant to the Securities Purchase Agreement, dated as of August 14, 2022, as amended on September 23, 2022 (the
"Pre-existing SPA"), between FFIE and an institutional investor ("Investor"), the Joinder and Amendment Agreement
to the Pre-existing SPA (the "Joinder"), dated as of September 25, 2022, by and among FFIE, Senyun International Ltd., the
Investor and RAAJJ Trading LLC ("RAAJJ"), the Limited Consent and Third Amendment to the Pre-existing SPA (the "Third
Amendment"), dated as of October 24, 2022, by and among the parties thereto, the Limited Consent and Amendment to the Pre-existing
SPA (the "Fourth Amendment"), dated as of November 8, 2022, by and among the parties thereto, the Letter Agreement and Amendment
to the Pre-existing SPA (the "Senyun Amendment"), dated as of December 28, 2022, by and among FFIE, the Investor, and Senyun,
the Limited Consent and Amendment No. 5 to the Pre-existing SPA (the "Fifth Amendment"), dated as of January 25, 2023, by
and among FFIE, Senyun, the Investor and other purchasers, the Amendment No. 6 to the Pre-existing SPA (the "Sixth Amendment"),
dated as of February 6, 2023, by and among FFIE, Senyun, FF Top Holding Ltd ("FF Top"), the Investor, Acuitas Capital, LLC
("Acuitas") and other purchasers, the Amendment No. 7 to the Pre-existing SPA (the "Seventh Amendment"), dated
as of March 23, 2023, by and among FFIE, Senyun, other purchasers, and the Amendment No. 8 to the Pre-existing SPA (the "Eighth
Amendment"), dated as of May 9, 2023, by and among FFIE, Senyun, other purchasers. In addition to the Pre-existing SPA Notes, certain
warrants were issued pursuant to the Pre-existing SPA and Joinder (the "Pre-existing SPA Warrants"). For more information,
see the section entitled "
Description of Securities
."
In
July 2021, the Company and Palantir entered into a Master Subscription Agreement ("MSA") that sets froth the terms of the
Palantir's platform hosting arrangement, which was expected to be used as a central operating system for data and analytics. On
April 26, 2023, the Company received a letter from Palantir providing a notice of dispute regarding the Company's alleged material
breach of the MSA. The letter asserted that the Company had not paid invoices totaling $12.3 million of past due fees. On July 7, 2023,
Palantir filed a demand for Arbitration against the Company with Judicial Arbitration and Mediations Services, Inc., regarding a dispute
between Palantir and the Company over the MSA. Palantir alleged that the Company had refused to make payments under the MSA. Palantir
asserted claims for: (i) breach of contract; (ii) breach of the covenant of good faith and fair dealing; and (iii) unjust enrichment.
Palantir alleged that the amount in controversy was $41.5 million. On August 4, 2023, the Company submitted its response to Palantir's
arbitration demand. The Company's response included both affirmative defenses and a general denial of all allegations in Palantir's
arbitration demand. On March 11, 2024, the Company and Palantir executed a Settlement and Release Agreement in order to terminate the
MSA and resolve the disputes. The Company agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late
payments. This settlement includes mutual waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and
Palantir entered into an amendment to the Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.75 million
in cash, the Company agreed to issue Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A
Common Stock by October 1, 2024. The August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million
shares of Class A Common Stock.
On
August 2, 2024, the Company entered into that certain Waiver Agreement (the "Waiver Agreement") with certain investors (each,
a "Holder" and, collectively, the "Holders"), who (a) beneficially own and hold one or more of the following
securities of the Company: (i) certain secured convertible notes of the Company (including any secured convertible notes issued in exchange
therefor, collectively, the "Original Secured Notes") that were issued pursuant to that certain Pre-existing SPA, and (ii)
certain unsecured convertible notes of the Company (including any unsecured convertible notes issued in exchange therefore, collectively,
the "Original Unsecured Notes", and together with the Original Secured Notes, the "Original Notes") that were
issued pursuant to that certain Securities Purchase Agreement, dated as of May 8, 2023 (as amended, supplemented or otherwise modified
from time to time, the "Original Unsecured SPA") and (b) have the right to acquire one or more of: (i) certain additional
secured convertible notes issuable in accordance with the terms to the Pre-existing SPA (the "Additional Secured Notes")
and (ii) certain additional unsecured convertible notes (the "Additional Unsecured Notes", and together with the Additional
Secured Notes, the "Additional Notes", and together with the Original Notes, the "Original SPA Notes"), issuable
pursuant to the Original Unsecured SPA.
2
Prior
to the Waiver Agreement, the Company had certain obligations under the Original SPA Notes to pay accrued and unpaid interest and a make-whole
amount of additional interest (the "Make-Whole Amount") in cash in connection with conversions of such Original SPA Notes.
In an effort to reduce the Company's ongoing cash obligations pursuant to such Original SPA Notes and to encourage the continued
conversion of the Original SPA Notes into shares of Class A Common Stock, the Company has agreed to make certain voluntary adjustments
to the Original SPA Notes as described below. Pursuant to the Waiver Agreement, the Company irrevocably agreed that with respect to each
conversion of any Original SPA Note on or after the effective date of the Waiver Agreement, if the Holder delivers a conversion notice
(the "Notice of Conversion") to the Company at a time that 90% of the VWAP (as defined in the Original SPA Notes) of the
Company's Class A Common Stock as of the trading day ended immediately prior to the time at which such Notice of Conversion is
delivered to the Company (each, an "Adjustment Price") is less than the conversion price then in effect pursuant to the applicable
Original SPA Note (the "Conversion Price"), the Company shall voluntary reduce the conversion price solely with respect to
such portion of such Original SPA Note to be converted in accordance with such notice of conversion (and not with respect to any other
portion of such Original SPA Note) to such adjustment price (the "Voluntary Adjustment"). The Company also agreed, in exchange
for the Holder's waiver of any accrued and unpaid interest (if any, as of such conversion date) (an "Interim Interest Waiver")
with respect to such aggregate principal of such Original SPA Note to be converted pursuant to such applicable notice of conversion (the
"Full Voluntary Adjustment"), to (i) further reduce such adjustment price in respect of a Voluntary Adjustment (as adjusted,
each a "Full Adjustment Price"); and (ii) issue a number of shares of the Company's Class A Common Stock to the Holder
such that the aggregate number of shares of Class A Common Stock to be issued to the Holder in such conversion at such Full Adjustment
Price equals the quotient of (x) the sum of (i) such aggregate principal of such Original SPA Note to be converted pursuant to such applicable
notice of conversion and (ii) any accrued and unpaid interest thereon, divided by (y) such adjustment price prior to any Interim Interest
Waiver. Such Full Voluntary Adjustment shall be applicable until the fifth (5th) business day after the Company delivers written notice
to the Holder electing to revoke such election.
Pursuant
to the Waiver Agreement, the Holders irrevocably agreed that instead of receiving the accrued and unpaid interest, each holder of any
such applicable Original SPA Note shall receive upon conversion of such Original SPA Note an amount in cash equal to all accrued and
unpaid interest on such Original SPA Note to such date of conversion (or such cash amount shall be deemed satisfied in full without any
payment of cash by the Company if the Company effects a Full Voluntary Adjustment with respect to the applicable notice of conversion)
with respect to the applicable notice of conversion.
Further
pursuant to the Waiver Agreement, a Holder's right to purchase any Additional Notes in any agreement with the Company (including,
without limitation, the Pre-existing SPA and/or the Original Unsecured SPA, as applicable) shall be extended until the first (1
st
)
anniversary of the effective date of the Waiver Agreement.
The
Company also intends to incorporate the changes in the Waiver Agreement into certain of its other existing notes and notes issuable in
the future pursuant to existing purchase agreements, as applicable, through one or more waivers, amendments and/or exchange agreements,
as applicable.
On
September 5, 2024, the Company entered into the SPA with certain institutional investors as purchasers (the "Investors").
Pursuant to the SPA, the Company agreed to sell, and the Investors agreed to purchase, for approximately $30 million (collectively, the
"Purchase Price"), of which approximately $22.5 million was paid in cash and approximately $7.5 million was converted from
a previous loan to the Company, certain Secured Notes, Warrants and Incremental Warrants in two closings. The initial closing occurred
on September 12, 2024 and the second closing occurred on September 30, 2024.
3
Recent
Developments
Recent
Governance Developments
On
June 9, 2024, Li Han resigned as a director of the Company for personal reasons. Ms. Han also served as a member of the Nominating and
Corporate Governance Committee.
Effective
June 21, 2024, Macias Gini & O'Connell LLP ("MGO")
was
appointed as the Company's independent registered public accounting firm as of and for the year ending December 31, 2024. The appointment
of MGO follows the notification by Mazars USA LLP to FFIE on April 9, 2024 that it would resign as an auditor of the Company and, effective
on May 31, 2024, and would no longer be FFIE's independent registered public accounting firm.
On
September 15, 2024, Jonathan Maroko notified the Company of his decision to resign from his position as Interim Chief Financial Officer
of the Company, effective September 20, 2024.
On September 17, 2024, the Board of Directors (the
"Board") of the Company appointed Koti Meka as the Company's Chief Financial Officer and principal financial officer,
effective September 23, 2024.
On
August 1, 2024, the Company filed
a third amendment
to the Company's
Amended and Restated Charter
with
the office of the Secretary of State of the State of Delaware to effect an increase in the number of authorized shares of Common Stock"
from 463,312,500 to 4,169,812,500, increasing the total number of authorized shares of Common Stock and preferred stock from 473,312,500
to 4,179,812,500.
The Certificate of Amendment was authorized by the stockholders of the Company at the Company's Annual
Meeting of Stockholders held on July 31, 2024.
Reverse
Stock Splits
On
February 23, 2024,
the Company
filed a second amendment (the "2
nd
Certificate of Amendment") to the Company's Amended and Restated Charter with the Secretary of State of the State of
Delaware to effect a reverse stock split at a ratio of 1:3 and to set the number of authorized shares of Class A Common Stock to 463,312,500
(which is 1,389,937,500 divided by 3). The 2
nd
Certificate of Amendment was authorized by the stockholders of the Company
at the Company's Special Meeting of Stockholders held on
February 5, 2024
.
Pursuant
to the 2
nd
Certificate of Amendment, effective as of 5:00 p.m., Eastern Time, on February 29, 2024, every three shares of
the issued and outstanding Class A Common Stock will be automatically converted into one share of Class A Common Stock, without any change
in par value per share and the number of authorized shares of Class A Common Stock will be reduced to 463,312,500.
On
February 29, 2024, the number of shares of Class A Common Stock reserved for issuance under the Company's Amended and Restated
2021 Stock Incentive Plan, the Company's Smart King Ltd. Equity Incentive Plan, and the Company's Smart King Ltd. Special
Talent Incentive Plan (collectively, the "Plans"), as well as the number of shares subject to the then-outstanding awards
under each of the Plans, were proportionately adjusted, using the 1-for-3 ratio, rounded down to the nearest whole share. In addition,
the exercise price of the then-outstanding options under each of the Plans was proportionately adjusted, using the 1-for-3 ratio, rounded
up to the nearest whole cent. Proportionate adjustments were made to the number of shares of Class A Common Stock issuable upon exercise
or conversion of the Company's outstanding warrants and convertible securities, as well as the applicable exercise or conversion
prices.
On
August 14, 2024, the Company filed a fourth amendment (the "4
th
Certificate of Amendment") to the Company's
Amended and Restated Charter with the Secretary of State of the State of Delaware to effect a reverse stock split at a ratio of 1:40
and to set the number of authorized shares of Class A Common Stock to 104,245,313 (which is 4,169,812,500 divided by 40, the reverse
stock split ratio determined by the Board). The 4
th
Certificate of Amendment was authorized by the stockholders of the Company
at the Company's Annual Meeting of Stockholders held on July 31, 2024.
Pursuant
to the 4
th
Certificate of Amendment, effective as of 5:00 p.m., Eastern Time, on August 16, 2024, every 40 shares of the issued
and outstanding Class A Common Stock will be automatically converted into one share of Class A Common Stock, without any change in par
value per share, and the number of authorized shares of Class A Common Stock will be reduced to 104,245,313.
On
August 16, 2024, the number of shares of Class A Common Stock reserved for issuance under the Plans, as well as the number of shares
subject to the then-outstanding awards under each of the Plans, will be proportionately adjusted, using the 1-for-40 ratio, rounded down
to the nearest whole share. In addition, the exercise price of the then-outstanding options under each of the Plans will be proportionately
adjusted, using the 1-for-40 ratio, rounded up to the nearest whole cent. Proportionate adjustments will be made to the number of shares
of Class A Common Stock issuable upon exercise or conversion of the Company's outstanding warrants and convertible securities,
as well as the applicable exercise or conversion prices.
4
Annual
Meeting of Stockholders
At
the 2024 Annual Meeting, held on July 31, 2024, FFIE stockholders (1) elected each of Mr. Matthias Aydt, Mr. Chui Tin Mok, Mr. Chad Chen,
Ms. Li Han, Mr. Jie Sheng and Ms. Lev Parker to the Board to serve and hold office until the 2024 annual meeting of stockholders and
until their respective successors have been duly elected and qualified, or until their earlier death, resignation or removal, (2) approved
a proposal to ratify the selection of Macias Gini & O'Connell LLP ("MGO") as the independent registered public
accounting firm of FFIE for the year ending December 31, 2024, (3) approved an amendment to the Charter to increase the number of authorized
shares of Class A Common Stock from 463,312,500 to 4,169,812,500, increasing the total number of authorized shares of Class A Common
Stock and preferred stock from 473,312,500 to 4,179,812,500, (4) approved an amendment to the Charter to effect (i) a reverse stock split
of the Class A Common Stock by a ratio of any whole number in the range of 1-for-2 to 1-for-40, with such ratio to be determined in the
discretion of the Board and with such action to be effected at such time and date, if at all, as determined by the Board within one year
after the conclusion of the Annual Meeting, and (ii) a corresponding reduction in the total number of shares of Class A Common Stock
the Company is authorized to issue, (5)
approved an amendment to the 2021 Plan in order to increase
the number of shares of
Class A
Class A Common Stock available for issuance under the 2021
Plan by an additional 88,252,926 shares
. The 2024 Annual Meeting was held as required by Nasdaq Listing Rule 5620(a) and to regain
compliance with the applicable annual meeting Nasdaq listing rules. Prior to the 2024 Annual Meeting, FFIE's last stockholder meeting
at which FFIE directors were elected had been held on April 14, 2023. On December 28, 2023, FF received a letter from the Listing Qualifications
Staff of Nasdaq noting that FF was not in compliance with the requirement to maintain a minimum bid price of $1.00 per share for 30 consecutive
trading days for continued listing on Nasdaq, as set forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement").
Beginning on November 9, 2023, FF's closing bid price of the Class A Common Stock has been below $1.00 per share. Pursuant to Nasdaq
Listing Rule 5810(c)(3)(A), FF was initially provided 180 calendar days from receipt of the notice from Nasdaq to regain compliance with
the Minimum Bid Price Requirement. On April 18, 2024, Nasdaq notified FF that since it had not yet filed this Form 10-K, it no longer
complied with Listing Rule 5250(c)(1). Pursuant to Listing Rule 5810(c)(2)(A), this deficiency was an additional basis for delisting.
On April 24, 2024, FF received a letter from Nasdaq indicating that FF was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii),
as FF's Class A Common Stock had a closing bid price of $0.10 or less for ten consecutive trading days (the "Low Priced Stocks
Rule"). The letter indicated that, as a result, the Nasdaq staff had determined to delist FF's securities from The Nasdaq
Capital Market (the "Delisting Determination"). On May 1, 2024, FF requested a hearing to appeal the Delisting Determination,
which stayed the suspension of FF's securities for 15 days. FF also requested an extended stay of the suspension pending such hearing
with Nasdaq's Hearings Panel (the "Panel"), which Nasdaq granted on May 28, 2024. The Nasdaq Hearings Panel has granted
the Company's request for continued listing, conditional upon meeting the minimum bid price requirement by August 31, 2024. On
August 14, 2024, the Company filed a 4
th
Certificate of Amendment to the Company's Amended and Restated Charter with
the Secretary of State of the State of Delaware to effect a reverse stock split at a ratio of 1:40 and to set the number of authorized
shares of Class A Common Stock to 104,245,313 (which is 4,169,812,500 divided by 40, the reverse stock split ratio determined by the
Board). The 4
th
Certificate of Amendment was authorized by the stockholders of the Company at the Company's Annual Meeting
of Stockholders held on July 31, 2024. Pursuant to the 4
th
Certificate of Amendment, effective as of 5:00 p.m., Eastern Time,
on August 16, 2024, every 40 shares of the issued and outstanding Class A Common Stock was automatically converted into one share of
Class A Common Stock, without any change in par value per share, and the number of authorized shares of Class A Common Stock was reduced
to 104,245,313.
On September 4, 2024, the Company
received a letter from the Office
of the General Counsel of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it has regained compliance with
the Nasdaq Capital Market's minimum bid price requirement and periodic filing requirement (the "Periodic Filing Rule")
as required by the Panel decision dated June 26, 2024, as amended.
Interim
CFO Transition and Appointment of New Independent Auditor
Ms.
Han resigned from her position as Interim Chief Financial Officer of the Company effective as of July 5, 2023. Ms. Han resigned from
her position as Chief Accounting Officer of the Company as of February 2, 2024.
On
July 11, 2023 the
Board appointed Jonathan Maroko
as Interim Chief Financial Officer,
principal financial officer and principal accounting officer effective July 24, 2023. On September 15, 2024, Jonathan Maroko notified
the Company of his decision to resign from his position as Interim Chief Financial Officer of the Company, effective September 20, 2024.
On September 17, 2024, the Board of the Company appointed Koti Meka as the Company's Chief
Financial Officer and principal financial officer, effective September 23, 2024.
Effective
June 21, 2024, MGO
was appointed as the Company's
independent registered public accounting firm as of and for the year ending December 31, 2024. The appointment of MGO follows the notification
by Mazars USA LLP to FFIE on April 9, 2024 that it would resign as an auditor of the Company and, effective on May 31, 2024, and would
no longer be FFIE's independent registered public accounting firm.
PRC
Subsidiaries
FFIE
is a holding company incorporated in the State of Delaware. "FF U.S.", FF's primary U.S. operating subsidiary, was
incorporated and founded in the State of California in May 2014. We refer to all our subsidiaries organized in China (including Hong
Kong) collectively as the "PRC Subsidiaries." A complete list of our subsidiaries is set forth in Exhibit 21.1 to this Registration
Statement on Form S-1. As of September 30, 2024, our only operating subsidiaries in China (including Hong Kong) are FF Automotive (China)
Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive Technology Co., Ltd., each of which was organized in the
PRC.
5
How
Cash is Transferred Through Our Corporate Organization
The
organizational chart below shows FFIE's operating subsidiaries
*
as of the date hereof:
*
Excludes subsidiaries
    with immaterial operations. FF Hong Kong Holding Limited is a holding company subsidiary organized in Hong Kong. As of the date hereof,
    LeSEE Automotive (Beijing) Co. Ltd., a subsidiary organized in China, has immaterial operations.
The
PRC has currency and capital transfer regulations that require us to comply with certain requirements for the movement of capital in
and out of the PRC. FFIE is able to transfer cash (U.S. Dollars) to the PRC Subsidiaries through capital contributions (increasing FFIE's
capital investment in the PRC Subsidiaries). FFIE may receive cash or assets declared as dividends from the PRC Subsidiaries. The PRC
Subsidiaries can transfer funds to each other when necessary, by way of intercompany loans in the following manners:
●
FF
                                            Hong Kong Holding Limited, as the holding company of all the other PRC Subsidiaries, can
                                            transfer cash to any PRC Subsidiary through capital contribution. We note Hong Kong's
                                            banking system is outside PRC mainland's banking system. As a result, when FF Hong
                                            Kong Holding Limited transfers cash to a PRC Subsidiary, it is required to follow the SAFE
                                            (as defined below) process and regulation.
●
FF
                                            Hong Kong Holding Limited, as the holding company of all the other PRC Subsidiaries, may
                                            receive cash or assets declared as dividends from the other PRC Subsidiaries.
●
Among
                                            PRC Subsidiaries other than FF Hong Kong Holding Limited, one PRC Subsidiary can provide
                                            funds through intercompany loan to another PRC Subsidiary and each such PRC Subsidiary is
                                            required to follow the rules of China Banking Regulatory Commission and other relevant Chinese
                                            authorities. Additionally, one PRC Subsidiary can transfer cash to its subsidiary through
                                            capital contribution, and any PRC Subsidiary may receive cash or assets declared as dividends
                                            from any of its subsidiaries.
In
2022 and 2023, FF U.S. extended loans in an aggregated amount of $8.0 million and $16.3 million, respectively, to FF Hong Kong Holding
Limited to fund the operations of the PRC Subsidiaries. We will continue to assess the PRC Subsidiaries' requirements to fund their
operations and intend to effect additional contributions as appropriate. As of December 31, 2023, our only operating subsidiaries
in China (including Hong Kong) are FF Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive
Technology Co., Ltd., each of which was organized in the PRC. The PRC Subsidiaries have not transferred cash or other assets to FFIE,
including by way of dividends. FFIE does not currently plan or anticipate transferring cash or other assets from our operations in China
to any non-Chinese entity.
6
Capital
contributions to PRC companies are mainly governed by the Company Law and Foreign Investment Law of the People's Republic of China,
and the dividends and distributions from the PRC Subsidiaries are subject to regulations and restrictions of the PRC on dividends and
payment to parties outside of the PRC. Applicable PRC law permits payment of dividends to FFIE by our PRC Subsidiaries only out of their
net income, if any, determined in accordance with PRC accounting standards and regulations. Our operating PRC Subsidiaries are required
to set aside a portion of their net income, if any, each year to fund general reserves for appropriations until such reserves have reached
50% of the relevant entity's registered capital. These reserves are not distributable as cash dividends. A PRC company is not permitted
to distribute any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be
distributed together with distributable profits from the current fiscal year. In addition, registered share capital and capital reserve
accounts are also restricted from withdrawal in the PRC, up to the amount of net assets held in each operating subsidiary.
PRC
Restrictions on Foreign Exchange and Transfer of Cash
Under
PRC laws, if certain procedural requirements are satisfied, the payment of current account items, including profit distributions and
trade and service related foreign exchange transactions, can be made in foreign currencies between entities, across borders, and to
U.S. investors without prior approval from State Administration of Foreign Exchange (the "SAFE") or its local branches.
However, where Chinese Yuan ("CNY") is to be converted into foreign currency and remitted out of China to pay capital
expenses, such as the repayment of loans denominated in foreign currencies, approval from or registration with SAFE or its
authorized banks is required. The PRC government may take measures at its discretion from time to time to restrict access to foreign
currencies for current account or capital account transactions. If the foreign exchange control system prevents our PRC Subsidiaries
from obtaining sufficient foreign currencies to satisfy their foreign currency demands, our PRC Subsidiaries may not be able to pay
dividends in foreign currencies to FFIE. Further, we cannot assure you that new regulations or policies will not be promulgated in
the future that would have the effect of further restricting the remittance of CNY into or out of the PRC. We cannot assure you, in
light of the restrictions in place, or any amendment thereof, that the PRC Subsidiaries will be able to fund their future activities
which are conducted in foreign currencies, including the payment of dividends.
Furthermore,
under PRC laws, dividends may be paid only out of distributable profits. Distributable profits are the net profit as determined under
PRC GAAP, less any recovery of accumulated losses and appropriations to statutory and other reserves required to be made. Our PRC Subsidiaries
shall appropriate 10% of the net profits as reported in their statutory financial statements (after offsetting any prior year's
losses) to the statutory surplus reserves until the reserves have reached 50% of their registered capital. As a result, our PRC Subsidiaries
may not have sufficient, or any, distributable profits to pay dividends to us. See "
Risk Factors–Risks Related to FF's
Operations in China–FFIE is a holding company and, in the future, may rely on dividends and other distributions on equity paid
by the PRC Subsidiaries to fund any cash and financing requirements that FFIE may have, and the restrictions on PRC Subsidiaries'
ability to pay dividends or make other payments to FFIE could restrict FFIE's ability to satisfy its liquidity requirements and
have a material adverse effect on FFIE's ability to conduct its business
" for a more detailed discussion of the relevant
risks relating to restrictions on foreign exchange and transfer of cash.
Requirements
Under PRC Laws and Regulations
Under
current PRC laws and regulations, each of our PRC Subsidiaries is required to obtain a business license to operate in the PRC. Our PRC
Subsidiaries have all received the requisite business license to operate, and no application for business license had been denied.
As
our operations in the PRC expand, our PRC Subsidiaries will be required to obtain approvals, licenses, permits and registrations from
PRC regulatory authorities, such as the State Administration for Market Regulation, the National Development and Reform Commission, Ministry
of Commerce ("MOFCOM"), and the Ministry of Industry and Information Technology ("MIIT"), which oversee different
aspects of the electric vehicle business. As of December 31, 2023, no application by our PRC Subsidiaries for any such approvals,
licenses, permits and registrations that are currently applicable to them had been denied, but there can be no assurance that the PRC
Subsidiaries will be able to maintain their existing licenses or obtain new ones. See "Risk Factors–Risks Related to FF's
Operations in China–FF may be adversely affected by the complexity, uncertainties and changes in PRC regulations on internet-related
business, automotive businesses and other business carried out by FF's PRC Subsidiaries." for a more detailed discussion
of the risks relevant to the regulations relating to the operations of the PRC Subsidiaries.
7
We
do not believe any permission is required from any Chinese authorities (including the China Securities Regulatory Commission (the "CSRC")
and the Cyberspace Administration of China (the "CAC")) in connection with our previous offerings or listing. We do not and
immediately prior to the filing of this Registration Statement on Form S-1, possess over one million of PRC-based individual's
personal information. After consulting our PRC counsel, we believe we are currently not subject to the requirement under the Cybersecurity
Review Measures that a network platform operator which possesses more than one million users' personal information must apply for
a cybersecurity review with CAC before listing abroad. In addition, as of December 31, 2023, after consulting our PRC counsel, we
are not aware of any other laws or regulations currently effective in the PRC which explicitly require us to obtain any permission from
the CSRC or other Chinese authorities for our previous offering or listing, nor had we received any inquiry, notice, or warning from
the CSRC or any other Chinese authorities in such respects. The PRC authorities have promulgated new or proposed laws and regulations
recently to further regulate securities offerings that are conducted overseas and/or foreign investment in China-based issuers. According
to these new laws and regulations and the draft laws and regulations if enacted in their current forms, in connection with our future
securities offering activities, we may be required to fulfill filing, reporting procedures with the CSRC, and may be required to go through
cybersecurity review by the PRC authorities. However, there are uncertainties with respect to whether we will be able to fully comply
with requirements to obtain such permissions and approvals from, or complete such reporting or filing procedures with PRC authorities.
For more detailed information, see "Risk Factors–
Risks Related to FF's Operations in China–The approval of,
or filing or other administrative procedures with, the CSRC or other PRC governmental authorities may be required in connection with
certain of our financing activities, and, if required, we cannot predict if we will be able to obtain such approval or complete such
filing or other administrative procedures"
and "Risk Factors–
Risks Related to FF's Operations in
China–We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data
protection. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure
to comply with related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially
and adversely affect our business and results of operations
" for a more detailed discussion of the relevant risks relating
to the applicable of PRC laws and Regulations.
Summary
Risk Factors
An
investment in our Class A Common Stock involves substantial risk. The occurrence of one or more of the events or circumstances described
in the section entitled "
Risk Factors
," alone or in combination with other events or circumstances, may have a material
adverse effect on our business, cash flows, financial condition and results of operations. Important factors and risks that could cause
actual results to differ materially from those in the forward-looking statements include, among others, the following:
Risks
Related to FF's Business and Industry
●
FF
                                            does not have sufficient liquidity to pay its outstanding obligations and to operate its
                                            business and it will likely file for bankruptcy protection if it is unable to access additional
                                            capital.
●
FF
                                            has missed rental payments on all of its leased properties.
●
FF
                                            has a limited operating history and faces significant barriers to growth in the electric
                                            vehicle industry.
●
FF
                                            has incurred substantial losses in the operation of its business and anticipates that it
                                            will continue to do so.
●
FF
                                            expects its operating expenses to increase significantly, which may impede its ability to
                                            achieve profitability.
●
FF's
                                            operating results forecast relies in large part upon assumptions and analyses developed by
                                            its management. If these assumptions and analyses prove to be incorrect, its actual operating
                                            results could suffer.
●
FF's
                                            payroll expenses reduction plan may not be successful.
●
FF
                                            has significant unfunded commitments from its investors. If FF is unable to satisfy the conditions
                                            to funding or if there is a dispute regarding the conversion requirements related to the
                                            unfunded commitments, FF may not have enough capital to support its business and could be
                                            subject to investor legal claims.
●
FF
                                            has historically incurred substantial indebtedness and may incur substantial additional indebtedness
                                            in the future, and it may not be able to refinance borrowings on terms that are acceptable
                                            to FF, or at all.
8
●
The
                                            production and delivery of the FF 91 Futurist has experienced, and may continue to experience,
                                            significant delays.
●
Non-binding
                                            pre-orders and other non-binding indications of interest may not be converted into binding
                                            orders/sales.
●
FF
                                            may have insufficient reserves to cover future warranty claims.
●
FF
                                            has taken remedial measures in response to the Special Committee findings that may be unsuccessful.
●
FF
                                            is involved in an SEC investigation and may be further subject to investigations and legal
                                            proceedings related to the matters underlying the Special Committee investigation and other
                                            matters.
●
FF
                                            will depend on revenue generated from a single series of vehicles for the foreseeable future.
●
The
                                            market for FF's vehicles, including its SLMD vehicles, is nascent and not established.
●
FF
                                            depends on its suppliers, the majority of which are single-source suppliers.
●
FF's
                                            decision to manufacture its own vehicles in its leased FF ieFactory does not guarantee FF
                                            will not incur significant delays in the production of the vehicles.
●
FF
                                            has minimal experience servicing and repairing its vehicles.
●
Changes
                                            in U.S. and international trade policies may adversely impact FF's business and operating
                                            results.
●
FF
                                            faces competition from multiple sources, including new and established domestic and international
                                            competitors, and expects to face competition from others in the future, including competition
                                            from companies with new technology.
●
FF's
                                            go-to-market and sales strategy will require substantial investment and commitment of resources
                                            and is subject to numerous risks and uncertainties.
●
If
                                            FF is unable to attract and/or retain key employees and hire qualified Board members, officers
                                            and other individuals, its ability to compete could be harmed.
●
The
                                            discovery of defects in vehicles may result in delays in production and delivery of new models,
                                            recall campaigns or increased warranty costs.
●
FF
                                            may become subject to product liability claims, which could harm its financial condition
                                            and liquidity.
●
If
                                            FF is sued for infringing or misappropriating intellectual property rights of third parties,
                                            litigation could be costly and time consuming and could prevent FF from developing or commercializing
                                            its future products.
●
FF
                                            has elected to protect some of its technologies as trade secrets rather than as patents,
                                            however, this approach has certain risks and disadvantages.
●
FF
                                            is dependent upon its proprietary intellectual properties.
●
FF
                                            is subject to stringent and changing laws, regulations, standards and contractual obligations
                                            related to data privacy and security.
●
FF
                                            is subject to cybersecurity risks relating to its various systems and software, or that of
                                            any third party that FF relies upon, and any failure, cyber event or breach of security could
                                            substantially harm FF.
●
FF
                                            and its suppliers and manufacturing partners may be subject to increased environmental and
                                            safety or other regulations and disclosure rules resulting in higher costs, cash expenditures,
                                            and/or sales restrictions.
●
FF
                                            might not obtain/maintain sufficient insurance coverage, which could expose FF to significant
                                            costs and disruption.
●
Yueting
                                            Jia's public image may color public and market perceptions of FF. Negative information about
                                            Mr. Jia may adversely impact FF. Disassociating from Mr. Jia could also adversely impact
                                            FF.
●
Yueting
                                            Jia is subject to restrictions in China that may adversely impact FF's China strategy.
●
Yueting
                                            Jia and FF Global, over which Mr. Jia exercises significant influence, have control over
                                            the FF's management, business and operations, and may use this control in ways that
                                            are not aligned with FF's interests.
●
Disputes
                                            with FF's stockholders are costly and distracting.
●
FF
                                            is subject to legal proceedings, claims, and disputes arising both in and outside the ordinary
                                            course of business.
9
Risks
Related to FF's Operations in China
●
Policy
                                            changes of the PRC government may materially and adversely affect FF.
●
Uncertainties
                                            with respect to the Chinese legal system, regulations and policies could have a material
                                            adverse effect.
●
Fluctuations
                                            in exchange rates could result in foreign currency exchange losses to FF.
●
Changes
                                            in the laws and regulations of China or noncompliance with applicable laws and regulations
                                            may have a significant impact on FF's business, results of operations and financial
                                            condition.
●
FF
                                            is a holding company and may rely on dividends and other distributions on equity paid by
                                            the PRC Subsidiaries.
●
PRC
                                            regulation of loans to and direct investments in PRC entities by offshore holding companies
                                            may delay or prevent FF from making loans or additional capital contributions to the PRC
                                            Subsidiaries.
●
The
                                            PRC government can take regulatory actions and make statements to regulate business operations
                                            in China with little advance notice.
●
The
                                            approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental
                                            authorities may be required in connection with certain of FF's financing activities,
                                            and, if required, it cannot predict if it will be able to obtain such approval or complete
                                            such filing or other administrative procedures.
●
U.S.
                                            regulatory bodies may be limited in their ability to conduct investigations or inspections
                                            of our China operations.
●
A
                                            significant portion of FF's financing is expected to come from investors in China,
                                            and such investment is subject to delay due to due diligence review, including know your
                                            customer, anti-money laundering and other review.
Risks
Related to the Restatement
●
FF's
                                            inability to remediate in its internal control over financial reporting, or identification
                                            of additional material weaknesses or other failure to maintain effective internal control
                                            over financial reporting, has, and could further, result in material misstatements in FF's
                                            consolidated financial statements and FF's ability to accurately or timely report.
●
FF
                                            faces risks related to the restatement of its previously issued consolidated financial
                                            statements.
Risks
Related to FF's Common Stock
●
FF
                                            is not able to continue to utilize its "at-the-market" equity program.
●
FF
                                            may not be in compliance with the continued listing requirements for Nasdaq in the future,
                                            the failure of which may cause the Company to be delisted, the failure to be in compliance
                                            with the Nasdaq continued listing requirements could also affect the market price and liquidity
                                            for the FF's Common Stock and reduce the FF's ability to raise additional capital.
●
The
                                            price of the Class A Common Stock has been and may continue to be volatile, and you could
                                            lose all or part of your investment.
●
FF
                                            may issue additional shares of Common Stock or preferred shares, which would dilute stockholder
                                            interests.
●
FF
                                            has granted preferential director nomination rights to certain investors which may cause
                                            FF to fall out of compliance with Nasdaq listing rules.
●
Claims
                                            for indemnification by FF's directors and officers may reduce its available funds to
                                            satisfy successful third-party claims against it and may reduce the amount of money available
                                            to it.
Additional
Information
FF's
principal executive office is located at 18455 S. Figueroa Street, Gardena, CA 90248 (telephone number (424) 276-7616). The Company's
website is located at www.ff.com and its investor relations website is located at investors.ff.com. Information contained on our website
or connected thereto does not constitute part of, and is not incorporated by reference into, this prospectus or the registration statement
of which it is a part.
10
THE
OFFERING
Issuer
Faraday Future Intelligent Electric Inc.
Shares
    of Class A Common Stock offered by the Selling Securityholders
Up to 29,659,781 shares
    of Class A Common Stock, of which (i) 28,017,654 are issuable upon the exercise of the SPA Warrants and conversion of the SPA Notes,
    (ii) 561,833 shares of Class A Common Stock are exercisable upon the conversion of the Applicable Tranche D Notes, and (iii) 1,080,294
    shares of Class A Common Stock were issued to Palantir in settlement of amounts owed to Palantir.
Shares
    of Class A Common Stock outstanding prior to exercise of all outstanding warrants and options and conversion of all outstanding convertible
    notes
33,377,187 shares of Class
    A Common Stock (as of October 8, 2024).
Shares
    of Class A Common Stock outstanding assuming the issuance of shares upon the exercise of the SPA Warrants and conversion of SPA Notes
    and upon the conversion of the Applicable Tranche D Notes offered hereby
63,036,877 shares of Class
    A Common Stock (based on total shares outstanding as of October 8, 2024).
Use
    of Proceeds
We will not receive any
    proceeds from the sale of shares of Class A Common Stock by the Selling Securityholders.
Market
    for Class A Common Stock and Public Warrants
Our shares of Class A Common
    Stock and Public Warrants are currently traded on Nasdaq under the symbols "FFIE" and "FFIEW," respectively.
Risk
    Factors
See "
Risk Factors
"
    and other information included in this prospectus for a discussion of factors you should consider before investing in our securities.
For
additional information concerning the offering, see "
Plan of Distribution
."
11
INFORMATION
RELATED TO OFFERED SECURITIES
25,286,260 shares of Class A Common Stock underlying the SPA Notes
at a conversion price of $5.24 per share, or, alternatively under certain conditions described therein, at the minimum floor price of
$1.048 per share, 2,528,626 shares of Class A Common Stock underlying the Warrants exercisable at 6.29 per share (the "Exercise
Price"), 202,768 shares of Class A Common Stock underlying the PA Warrants exercisable at the Exercise Price, 561,833 shares of
Class A Common Stock underlying the Applicable Tranche D Notes held by certain holders and 1,080,294 shares of Class A Common Stock issued
to Palantir in settlement of amounts owed to Palantir, which, in the aggregate, represents a total of 29,659,781 shares of Class A Common
Stock of the Company.
The following table includes
information relating to the shares of Class A Common Stock offered hereby, including the purchase price each Selling Securityholder paid
for its securities and the potential profit relating to such securities (as of October 28, 2024).
Offered Shares
Number of
Shares
Exercise
Price
Effective
Purchase
Price Per
Share(1)
Potential
Profit per
Share(3)
Total
Potential
Profit(3)
Shares of Class A Common Stock issuable upon conversion of the SPA Notes (1)(2)
25,286,260
1.048
(6)
—
(2)
$
1.192
$
30,141,221.92
Shares of Class A Common Stock issuable upon Exercise of the Warrants(2)
2,528,626
6.29
—
(2)
$
-4.05
$
-10,240,935.30
Shares of Class A Common Stock issuable upon Exercise of the PA Warrants(2)
202,768
6.29
—
(2)
$
-4.05
$
-821,210.40
Shares of Class A Common Stock issuable upon conversion of the Applicable Tranche D Notes(4)
561,833
2.282
(7)
—
$
-0.042
$
-23,596.99
Shares of Class A Common Stock issued to Palantir(5)
1,080,294
—
—
$
2.24
$
2,419,858.56
(1)
Includes 12,643,130
    shares of Class A Common Stock issuable upon conversion of the Secured Notes, and an additional 12,643,130 shares of Class A Common
    Stock issuable upon conversion of the Incremental Notes.
(2)
On
September 5, 2024, the Company entered into an SPA with certain institutional investors as purchasers (the "Investors").
Pursuant to the SPA, the Company agreed to sell, and the Investors agreed to purchase, for approximately $30 million, certain Secured
Notes, Warrants, and Incremental Warrants in two closings. The initial closing was completed on September 12, 2024, and the subsequent
closing was completed on September 30, 2024. Capitalized terms used herein and not otherwise defined shall have the respective meanings
set forth in the Secured Notes.
Secured Notes
Maturity Date; Interest.
Pursuant to the Secured Notes, interest shall commence accruing on
the date thereof at the interest rate of 10% per annum (the "Interest Rate") and shall be computed on the basis of a 360-day
year and twelve 30-day months and shall be payable on a Conversion Date with respect to the Conversion Amount being converted on such
Conversion Date, with any remaining accrued and unpaid Interest payable on the fifth anniversary of the issuance date thereof (the "Maturity
Date") (each, an "Interest Date").
Interest shall be payable on each Interest Date, to the noteholders
on the applicable Interest Date, in shares of Class A Common Stock of the Company, so long as there has been no Equity Conditions Failure;
provided however, that the Company may, at its option following notice to the noteholders, pay Interest on any Interest Date in cash or
in a combination of cash and shares. Prior to the payment of Interest on an Interest Date, interest on this Note shall accrue at the Interest
Rate and be payable by way of inclusion of the Interest in the Conversion Amount on each Conversion Date, or upon any redemption, unless
in the event of an event of default, in which case the interest rate of the Secured Notes shall automatically be increased to 18% per
annum ("Interest Adjustments"). In the event such default has been cured, such Interest Adjustments shall cease to be effective
as of the calendar day immediately following the date of such cure; provided that the interest as calculated and unpaid at such increased
rate during the continuance of that certain default shall continue to apply to the extent relating to the days after the occurrence of
such default through and including the date of such cure of such default.
The Maturity Date may be extended by the noteholders under circumstances
specified therein. On the Maturity Date, the Company shall pay to the noteholder an amount in cash representing all outstanding principal,
accrued and unpaid interest on such principal and interest and accrued and unpaid Late Charges. Other than as specifically permitted by
the Secured Note, the Company may not prepay any portion of the outstanding principal and accrued, unpaid interest or accrued and unpaid
Late Charges on principal and interest, if any.
12
Conversion
Conversion at Option of Holder
Each holder of Secured Notes may convert all, or any part, of the outstanding
principal of the Secured Notes, at any time at such holder's option, into shares of Class A Common Stock, at a conversion price
per share of $5.24 (the "Conversion Price"), subject to adjustment under certain circumstances described in the Secured Notes.
Alternate Conversion
Each holder may alternatively elect to convert the Secured Notes, at
any time at such holder's option, into shares of our Class A Common Stock at the "Alternate Conversion Price" equal
to the lesser of:
●
the Conversion Price then in effect; and
●
the greater of:
o
the floor price of $1.048; and
o
the volume weighted average price of our common stock during
the five Trading Days ending and including the Trading Day immediately preceding the delivery or deemed delivery of the applicable conversion
notice.
Ranking; Security Interest
.
The Secured Notes will be junior secured obligations of the Company
and will be secured by a security interest in substantially all of the assets of the Company, pursuant to a security agreement. In addition,
certain subsidiaries of the Company (each, a "Subsidiary Grantor") in the SPA secured the Company's obligations under
the Financing Documents by granting a perfected lien upon substantially all of the personal property of each Subsidiary Grantor, for the
benefit of the Investors. The Company is utilizing the proceeds of this offering for general corporate purposes and working capital.
Registration Rights.
The Company has agreed to file a registration statement providing for
the resale by the Investors of all shares issuable pursuant to the Financing Documents with the Securities and Exchange Commission, or
SEC, within forty-five (45) calendar days of the date of the SPA or as soon as practicable thereafter, seek effectiveness within 90 days
following the date of the SPA, and keep such registration statement effective at all times until no Investors owns any Warrants or shares
of Common Stock issuable upon exercise thereof.
Warrants.
The Warrants are exercisable immediately
on the date thereof with a term of five (5) years to purchase an aggregate of 5,728,770 shares of Class A Common Stock at an exercise
price of $6.29, subject to adjustment under certain circumstances described in the Warrants.
The Incremental Warrants are exercisable immediately on the date thereof
with a term of one (1) year to purchase the Secured Notes at an exercise price of equal to the principal amount of the Secured Notes issued
to such Purchaser, subject to adjustment under certain circumstances described in the Incremental Warrants.
The Company has agreed to issue certain
PA Warrants to Univest Securities LLC, the sole placement agent of this transaction. The PA Warrants are exercisable immediately on the
date thereof with a term of five (5) years to purchase an aggregate of 202,768 shares of Class A Common Stock at an exercise price of
$6.29, subject to adjustment under certain circumstances described in the PA Warrants.
A holder of the Warrants and PA Warrants shall not have the right to
exercise any portion of these warrants to the extent that, after giving effect to such conversion, the holder (together with certain related
parties) would beneficially own in excess of 4.99%, or the "Maximum Percentage", of shares of our common stock outstanding
immediately after giving effect to such conversion. The Maximum Percentage may be raised or lowered to any other percentage not in excess
of 9.99%, at the option of the holder, except that any increase will only be effective upon 61 days' prior notice to us.
13
(3)
Potential profit is calculated based on the closing price of the Company's
Class A Common Stock on October 28, 2024, which is $2.24 per share.
(4)
Includes 233,592 shares issuable upon conversion of the Tranche D Note
held by FF Adventures SPV XVIII LLC, 49,859 shares issuable upon conversion of the Tranche D Note held by FF Aventuras SPV XI LLC, 79,753
shares issuable upon conversion of the Tranche D Note held by FF Venturas SPV X LLC, 86,372 shares issuable upon conversion of the Tranche
D Note held by FF Ventures SPV IX LLC, and 112,257 shares issuable upon conversion of the Tranche D Note held by FF Vitality Ventures
LLC, in each case, issued by the Company pursuant to the Pre-existing SPA.
(5)
In July 2021, the Company
    and Palantir entered into a MSA that sets froth the terms of the Palantir's platform hosting arrangement, which was expected
    to be used as a central operating system for data and analytics. On April 26, 2023, the Company received a letter from Palantir providing
    a notice of dispute regarding the Company's alleged material breach of the MSA. The letter asserted that the Company had not
    paid invoices totaling $12.3 million of past due fees. On July 7, 2023, Palantir filed a Demand for Arbitration against the Company
    with Judicial Arbitration and Mediations Services, Inc., regarding a dispute between Palantir and the Company over the MSA. Palantir
    alleged that the Company had refused to make payments under the MSA. Palantir asserted claims for: (i) breach of contract; (ii) breach
    of the covenant of good faith and fair dealing; and (iii) unjust enrichment. Palantir alleged that the amount in controversy was
    $41.5 million. On August 4, 2023, the Company submitted its response to Palantir's arbitration demand. The Company's
    response included both affirmative defenses and a general denial of all allegations in Palantir's arbitration demand. On March
    11, 2024, the Company and Palantir executed a Settlement and Release Agreement in order to terminate the MSA and resolve the disputes.
    The Company agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late payments. This settlement
    includes mutual waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and Palantir entered into
    an amendment to the Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.8 million in cash, the
    Company agreed to issue Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A Common Stock
    by October 1, 2024. The August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million shares
    of Common Stock.
(6)
The calculation of Potential
    Profit per Share is based upon the floor price of the SPA Notes.
(7)
Based on 90% of VWAP (as
    defined in each of the Applicable Tranche D Notes) as of October 1, 2024.
14
RISK
FACTORS
Investing
in our securities involves risks. Before you make a decision to buy our securities, in addition to the risks and uncertainties discussed
above under "Cautionary Note Regarding Forward-Looking Statements," you should carefully consider the specific risks set
forth herein. If any of these risks actually occur, it may materially harm our business, financial condition, liquidity, and results
of operations. As a result, the market price of our securities could decline, and you could lose all or part of your investment. Additionally,
the risks and uncertainties described in this prospectus, any prospectus supplement or in any document incorporated by reference herein
or therein are not the only risks and uncertainties that we face. Additional risks and uncertainties not presently known to us or that
we currently believe to be immaterial may become material and adversely affect our business.
Risks
Related to FF's Business and Industry
FF
does not have sufficient liquidity to pay its outstanding obligations and to operate its business and it will likely file for bankruptcy
protection if we are unable to access additional capital.
Since
inception, we have incurred cumulative losses from operations, negative cash flows from operating activities and has an accumulated deficit
of $3,958.5 million, $3,526.8 million and $2,907.6 million as of December 31, 2023, 2022 and 2021, respectively. We expect to continue
to generate significant operating losses for the foreseeable future. Based on our recurring losses from operations since inception and
continued cash outflows from operating activities, in our audited consolidated financial statements for the years ended December 31,
2023 and 2022, we concluded that this circumstance raised substantial doubt about our ability to continue as a going concern within one
year from the original issuance date of such financial statements. Similarly, in their audit reports on the consolidated financial statements
for the years ended December 31, 2023 and 2022, our former independent registered public accounting firm included an explanatory
paragraph stating that our recurring losses from operations and continued cash outflows from operating activities raised substantial
doubt about our ability to continue as a going concern. Our consolidated financial statements for the years ended December 31, 2023
and 2022 do not include any adjustments that may result from the outcome of this uncertainty. As of the date our consolidated financial
statements for the year ended December 31, 2023 were issued, our management determined that FF would be required to obtain additional
funding to continue as a going concern, resulting in there being substantial doubt about its ability to continue as a going concern.
FF
only recognized $0.8 million in revenue during the second half of the year ended December 31, 2023. FF relies on capital from investors
to support its operations. To date, we have primarily financed our operations through the sale of our Class A Common Stock, warrants
and convertible notes. For example, on June 16, 2023, we filed a Registration Statement on Form S-3 covering the offering of up to $300.0
million of Class A Common Stock and warrants, which was declared effective by the SEC on June 28, 2023 (the "Registration Statement").
On September 26, 2023, we also entered into a sales agreement with Stifel, Nicolaus & Company, Incorporated, B. Riley Securities,
Inc., A.G.P./Alliance Global Partners, Wedbush Securities Inc. and Maxim Group LLC, as sales agents, to sell shares of Common Stock,
from time to time, with aggregate gross sales proceeds of up to $90.0 million pursuant to the Registration Statement as an "at-the-market"
(the "ATM Program") offering under the Securities Act of 1933, as amended (the "Securities Act"). The ATM Program
was the primary source of liquidity for FF from September to December 2023. As of December 31, 2023, our principal source of liquidity
was cash totaling $1.9 million, which was held for working capital and general corporate purposes. As of December 31, 2023, our
cash position was $4.0 million, including restricted cash of $2.1 million. For a discussion of our capital needs and the current status
of our financing efforts, see "
FF does not have sufficient liquidity to pay its outstanding obligations and to operate its business
and it will likely file for bankruptcy protection if it is unable to access additional capital.
"
We
do not have sufficient cash on hand to meet our current obligations and are unable to generate cash through our ATM Program or via our
Registration Statement because we are not currently S-3 eligible. For further detail, see "
FF is not able to continue to utilize
its "at the market program."
We may have limited remaining authorized share availability as we issue more shares
to generate cash through equity or equity-linked issuances. If we are unable to find additional sources of capital, we will lack sufficient
resources to fund our outstanding obligations and continue operations and we will likely have to file for bankruptcy protection and our
assets will likely be liquidated. Our equity holders would likely not receive any recovery at all in a bankruptcy scenario.
FF
has missed rental payments on all of its leased properties.
FF
leases three facilities in California and three facilities in China for manufacturing, retail, office, administrative services, R&D
and strategic planning purposes. FF is behind on rental payments at all locations. FF can provide no assurances that any forbearance
of its lease obligations will be provided to it, nor that FF will be able to regain compliance with its lease obligations. If, as a result,
FF's leases are terminated, FF may not be able to continue production of its vehicles. If FF is unable to continue production,
FF will likely have to file for bankruptcy protection and its assets will likely be liquidated. FF's equity holders would likely
not receive any recovery at all in a bankruptcy scenario.
15
FF
has a limited operating history and faces significant barriers to growth in the electric vehicle industry.
FF
expects to need substantial additional financing to start the third phase of its three phase delivery plan. There cannot be any assurance
that FF will be able to develop the manufacturing capabilities and processes, or secure reliable sources of component supply to meet
the quality, engineering, design or production standards, or the required production volumes to successfully grow into a viable business.
Although
FF has started production and delivery on its first electric vehicle, it faces significant barriers to growth in the electric vehicle
industry, including continuity in development and production of safe and quality vehicles, brand recognition, customer base, marketing
channels, pricing policies, talent management, value-added service packages and sustained technological advancement. If FF fails to address
any or all of these risks and barriers to entry and growth, its business and results of operation may be materially and adversely affected.
Given
FF's limited operating history, the likelihood of its success must be evaluated especially considering the risks, expenses, complications,
delays and the competitive environment in which it operates. There is, therefore, no assurance that FF's business plan will prove
successful. FF will continue to encounter risks and difficulties frequently experienced by early commercial stage companies, including
scaling its infrastructure and headcount, and may encounter unforeseen expenses, difficulties or delays in connection with its growth.
In addition, due to the capital-intensive nature of FF's business, it can be expected to continue to incur substantial operating
expenses without generating sufficient revenues to cover those expenditures. There is no assurance FF will ever be able to generate revenue
consistently, raise additional capital when required or operate profitably. Any investment in FF is therefore highly speculative.
FF
has incurred substantial losses in the operation of its business and anticipates that it will continue to do so. It may never achieve
or sustain profitability.
The
design, engineering, manufacturing, sales and service of intelligent, connected electric vehicles is a capital-intensive business. FF
has incurred losses from operations and has had negative cash flows from operating activities since inception. FF incurred a net loss
of $431.7 million and $602.2 million for the years ended December 31, 2023 and 2022, respectively. Net cash used in operating activities
was $278.2 million and $383.1 million for the years ended December 31, 2023 and 2022, respectively, and $29.1 million for the six
months ended June 30, 2024.
FF
may incur unforeseen expenses, or encounter difficulties, complications, and delays in delivering the FF 91 series, and therefore may
never generate sufficient revenues to sustain itself. Even though FF has begun initial deliveries of the FF 91 series, it may continue
to incur substantial losses for a variety of reasons, including the lack of demand for the FF 91 series and the relevant services, vehicle
service and warranty costs, increasing competition, challenging macroeconomic conditions, regulatory changes and other risks discussed
herein, and so it may never achieve or sustain profitability.
Given
the risks associated with FF's ability to obtain additional funding to execute on its plans to develop and deliver vehicles and
begin to generate significant revenue, the amount of additional funding needed could differ from earlier estimates and the timing to
reach profitability and positive cash flows could be further delayed. Based on delays in obtaining sufficient funding relative to its
plans, as well as the likelihood that FF's plan will be implemented successfully, timely, or at all, once such funding is in place,
FF cannot estimate a breakeven point at this time.
FF
has delayed the development of other planned vehicles in the portfolio (FF 81 series, FF 71 series, and SLMD) and substantially reduced
incremental spending on the development of future vehicles with the goal of reducing new capital requirements in 2024.
FF
expects its operating expenses to increase significantly in the future, which may impede its ability to achieve profitability.
FF
expects to further incur significant operating costs including R&D expenses, capital expenditures relating to its manufacturing capacities,
additional operating costs and expenses for production ramp-up, raw material procurement costs, general and administrative expenses as
it seeks to scale its operations, and sales, marketing, and distribution expenses as it builds its brand and markets its vehicles. Additionally,
it may incur significant costs as it delivers the FF 91 series, including vehicle service and warranty expenses.
FF's
ability to become profitable will not only depend on its ability to successfully market its vehicles and other products and services,
but also to control costs. Ultimately, FF may not be able to adequately control costs associated with its operations for reasons outside
its control, including the cost of raw materials such as aluminum, steel and lithium-ion cells. Substantial increases in such costs could
increase FF's cost of revenue and its operating expenses and reduce its margins. Additionally, currency fluctuations, inflationary
pressures, tariffs or shortages in petroleum and other economic or political conditions could result in significant increases in logistics
and freight charges and raw material costs. If FF is unable to design, develop, manufacture, market, sell and service its vehicles, including
providing service in a cost-efficient manner, its margins, profitability, and prospects would be materially and adversely affected.
16
The
rate at which FF may incur costs and losses may increase significantly as it:
●
continues to develop the FF 91, and potentially refocuses on the FF 81, and FF 71 series and SLMD electric
vehicle models;
●
continues to develop and equip its manufacturing facility in Hanford, California to produce the FF 91
series, and prepares for manufacturing capabilities in South Korea and other potential manufacturing options, and in China for additional
production capacity for the FF 91 series and other electric vehicle models;
●
builds up inventories of parts and components for the FF 91 series;
●
starts the research and development of new product Faraday X and is under the process of establishing
the bridge strategy;
●
develops and expands its design, development, maintenance, servicing and repair capabilities;
●
potentially looks to open offline FF stores; and
●
increases its sales and marketing activities.
These
efforts may be more expensive than FF currently anticipates, and these efforts may not result in increases in revenues, which could further
increase its losses. As FF is seeking funding to realize its business operations plan based on its estimated capital requirements, any
cost overruns that deviate from FF's estimates may materially and adversely affect its business prospects, financial condition and
results of operations.
FF's operating
results forecast relies in large part upon assumptions and analyses developed by its management. If these assumptions and analyses prove
to be incorrect, its actual operating results could suffer.
FF
operates in a capital-intensive industry which requires significant cash to fund its operations, and FF will require substantial additional
capital to support the continued production and delivery of the FF 91 series, put FF on a path toward cash flow break-even, and satisfy
its additional capital needs, including resuming development of its other electric vehicle models. See "-
FF does not have
sufficient liquidity to pay its outstanding obligations and to operate its business and it will likely file for bankruptcy protection
if it is unable to access additional capital"
for a discussion of FF's capital needs and the current status of its
financing efforts.
FF's
operating results forecast largely relies on management's assumptions and analyses, which could be incorrect. Additionally, there
cannot be any assurance that FF's current fundraising efforts will be successful. Whether actual operating and financial results
and business developments will be consistent with FF's expectations and assumptions as reflected in the forecast depends on a number
of factors, many of which are outside FF's control, including, but not limited to:
●
whether it can obtain sufficient and timely capital to sustain and grow its business, including the development of future vehicle
models;
●
its ability to manage growth;
●
whether it can manage relationships with key suppliers;
●
whether it can sign up and manage relationships with business partners for them to invest in and operate sales and service centers;
●
the ability to obtain necessary regulatory approvals;
●
demand for its products and services in its target markets;
●
the timing and cost of new and existing marketing and promotional efforts;
●
competition, including established and future competitors;
●
its ability to retain existing key management, to integrate recent hires and to attract, retain and motivate qualified personnel;
●
the overall strength and stability of domestic and international economies;
●
regulatory, legislative and political changes; and
●
consumer spending habits.
17
Specifically,
FF's operating results forecast is based on projected purchase prices, unit costs for materials, manufacturing, labor, packaging
and logistics, warranty, sales, marketing and service, tariffs, and its projected number of orders for the vehicles with factors such
as industry benchmarks taken into consideration. Any of these factors could turn out to be different than those anticipated. Unfavorable
changes in any of these or other factors, most of which are beyond FF's control, could materially and adversely affect its business,
prospects, financial results and results of operations.
FF has significant
unfunded commitments from its investors. If FF is unable to satisfy the conditions to funding or if there is a dispute regarding the conversion
requirements related to the unfunded commitments, FF may not have enough capital to support its business and could be subject to investor
legal claims.
Pursuant
to the Pre-existing SPA, Original Unsecured SPA, the Unsecured Streeterville SPA, FFVV Joinder, and the Senyun Joinder, (as defined in
Note 7,
Notes Payable
to the Notes to Consolidated Financial Statements) FF has obtained commitments from several investors
totaling $595.3 million in convertible note financing and $20.0 million in committed forced warrant exercise proceeds, subject to certain
conditions. A total of $396.7 million under these commitments had been funded as of October 8, 2024 ($314.9 million net of original discount
and transaction costs) with the remaining unfunded commitment of $198.7 million. Investors of the convertible notes have the option to
purchase an additional up to 100% of the committed notes at the same economics. In the aggregate, including the additional financing the
Company completed in September 2024, these investors have an option to invest an additional $396 million of which the $48.4 million ($41.2
million net of original issuance discount and transaction fees) has been funded with the remaining optional funding of $347.6 million.
There can be no assurance that FF will be able to successfully satisfy the conditions to receive the additional funding. Further, if FF
fails to satisfy these funding conditions to receive the unfunded commitments, FF may be required to further delay its production and
delivery plans for the FF 91 2.0 Futurist Alliance, reduce headcount, liquidate our assets, file for bankruptcy, reorganize, merge with
another entity, and/or cease operations. In addition, during and after the third quarter of 2023, FF temporarily suspended effecting the
conversion requests from its noteholders. As of and since December 31, 2023, FF was and had been in default on the Pre-existing SPA Notes.
While FF has begun effecting these conversion requests, there can be no assurance that FF will not again suspend effecting such requests
in a manner that could result in an event of default and monetary penalties under the various securities purchase agreements. Further,
FF may be subject to legal claims by the investors, which could have a material and adverse impact on FF's reputation and financial
condition.
FF may also be subject to legal claims arising from disagreement over
the terms of its securities. For example, FF previously issued certain convertible notes (the "Senyun Notes") to Senyun. The
Senyun Notes are subject to a restriction that FF will not convert the Senyun Notes, and Senyun will not have the right to convert the
Senyun Notes, to the extent that Senyun would own more than 9.99% of FF's outstanding Class A Common Stock of FF after giving effect
to the conversion. In May 2023, Senyun requested to convert the Senyun Notes into shares of Common Stock and FF converted a certain amount
of the Senyun Notes. FF did not convert the Senyun Notes that would have resulted in Senyun owning more than 9.99% of the Common Stock.
However, Senyun believes that the Senyun Notes should have been converted in full in accordance with its interpretation of conversion
limitations in the Senyun Notes. FF disputes this interpretation. In July 2023 and October 2023, Senyun sent FF a letter outlining its
position and reserving its rights under the Pre-existing SPA. Further, pursuant to the Senyun Joinder, Senyun agreed to exercise its option
to purchase $15.0 million of Tranche A Notes (as defined in Note 7,
Notes Payable
, in the Notes to the Consolidated Financial
Statements contained herein) in accordance with the terms of the Secured SPA, with funding of 75% of such amount within five business
days of the date of the Senyun Joinder and the remaining 25% of such amount within three business days thereafter, subject to certain
conditions which have been satisfied. As of December 31, 2023, Senyun had funded $11.5 million of its obligation and had not funded the
remaining $3.5 million. It is not possible at this time to predict the outcome of the disagreement with Senyun.
18
Further,
any litigation, proceedings or dispute related to legal claims of FF's investors, even those without merit, may divert FF's
financial and management resources that would otherwise be used to benefit the future performance of FF's operations. Any adverse
determination against FF in any potential proceedings may also result in settlements, injunctions or damages that could have a material
adverse effect on FF's business, financial condition and results of operations and investors or other financing sources may be unwilling
to provide additional funding to FF on commercially reasonable terms, or at all, as a result of any legal claims.
MHL and V W Investment
are purchasers of the Unsecured SPA Notes (as defined in Notes 7, Notes Payable to the Notes to Consolidated Financial Statements) and
are affiliates of FF Global and a longtime FF stockholder, respectively, and such purchasers have limited assets.
On
May 8, 2023, FF entered into the Unsecured SPA with Metaverse Horizon Limited ("MHL") and V W Investment Holding Limited ("V
W Investment") to issue and sell, subject to the satisfaction of certain closing conditions, $100.0 million aggregate principal
amount of FF's senior unsecured convertible promissory notes. MHL and V W Investment committed to fund in eight subsequent closings
fifteen days apart, subject to the satisfaction of certain closing conditions. MHL who is the anchor investor in the Unsecured SPA Notes
and has committed $80.0 million of the funding, is an independent investment fund with investors including FF Global, and V W Investment
is an affiliate of Mr. Lijun Jin, a long-term shareholder of FF. As such MHL is a related party of FF as MHL's investors include
ax subsidiary FF Global. FF Global has control over FF's management, business and operations, and may use this control in ways that
are not aligned with FF's business or financial objectives or strategies or that are otherwise inconsistent with FF's interests.
Further,
in connection with the Unsecured SPA, FF entered into equity commitment letters with each of FF Global Partners Investment LLC (formerly
known as FF Top Holdings LLC) and Mr. Jin to support the obligations of MHL and V W Investment under the Unsecured SPA subject to the
limitations set forth therein. If MHL or V W Investment are unable to fund their commitments and FF Global and/or Mr. Jin breach their
obligations under their equity commitment letters with FF, it may not be able to recover the damages caused by such breach(es) from FF
Global due to the nature of their assets, including the fact that many of Mr. Jin's assets are not located in the United States
and FF Global's only assets are shares of FF's Class B Common Stock, a note payable from FF, and a capital commitment from
an investor with terms not disclosed to FF or third party beneficiary rights in favor of FF. If MHL and/or V W Investment do not fund
their commitments and FF is unable to recover damages under the equity commitment letters, FF may need to seek additional investors or
other financing sources.
There
can be no assurance that FF would be able to attract additional investors or other financing source. If we are unable to attract additional
investors or other financing sources in a timely manner or on acceptable terms, or at all, we may be required to further delay our production
and delivery plans for the FF 91 Futurist, reduce headcount, liquidate our assets, file for bankruptcy, reorganize, merge with another
entity, and/or cease operations.
FF has historically
incurred substantial indebtedness and may incur substantial additional indebtedness in the future, and it may not be able to refinance
borrowings on terms that are acceptable to FF, or at all.
Although
FF settled the majority of its debt in either equity or cash upon consummation of the Business Combination and paid off certain other
indebtedness with the proceeds of the Business Combination, FF may incur additional indebtedness from time to time to support its operations.
If FF incurs additional debt, the risks it faces as a result of indebtedness and leverage could intensify. The incurrence of any additional
debt could:
●
limit FF's ability to satisfy obligations under certain debt instruments, to the extent there are any;
●
cause FF to seek bankruptcy protection or enter into other insolvency proceedings in the event FF is not able to renew or refinance
any existing indebtedness as it becomes due;
●
increase FF's vulnerability to adverse general economic and industry conditions;
●
require FF to dedicate a substantial portion of cash flow from operations to servicing and repaying indebtedness, thereby reducing
the availability of cash flow to fund its working capital, capital expenditures, and other general corporate purposes;
●
increase its exposure to interest rate and exchange rate fluctuations;
●
limit its ability to borrow additional funds and impose additional financial and other restrictions on FF, including limitations on
declaring dividends; and
●
increase the cost of additional financing.
19
Commercial
banks, financial institutions and individual lenders may have concerns in providing additional financing for FF's operations. The
governments of the United States, China and Europe may also pass measures or take other actions that may tighten credit available
in relevant markets. Any future monetary tightening measures as well as other monetary, fiscal and industrial policy changes and/or political
actions by those governments could materially and adversely affect FF's cost and availability of financing, liquidity, access to
capital, and ability to operate our business.
The production
and delivery of the FF 91 Futurist has experienced, and may continue to experience, significant delays.
FF's
future business depends in large part on its ability to execute its plans to develop, manufacture, market, and deliver electric vehicles,
including the FF 91, FF 81 and FF 71 series, and SLMD electric vehicle models that appeal to customers. Based on certain management assumptions,
including timely completion of certain testing and the suppliers meeting our supply chain requirement, FF originally expected deliveries
of the FF 91 to users to begin before the end of April 2023. The first phase of the three-phase delivery plan began at the end of May
2023. In addition, due to a supplier's timing constraints and the completion of an additional system testing related to FF's
enhanced safety testing of a single unique product feature of the FF 91 2.0 Futurist Alliance, the second phase of the three-phase delivery
plan originally contemplated to begin by June 30, 2023, began in August 2023.
Production
or delivery of the FF 91 Futurist has experienced further delays due to insufficient capital and may experience further delays due to
reasons such as supply shortages and constraints, design defects, additional system testing, talent gaps, and/or force majeure. FF needs
substantial additional financing to start the third phase of the delivery plan and is in discussions with additional potential investors
to obtain such financing. Further, FF relies on third-party suppliers for the provision and development of many key components used in
the FF 91 Futurist and other models. To the extent FF's suppliers experience any further delays in providing or developing necessary
components or if they experience quality issues, FF could experience further delays in delivering on its timelines. In addition, if FF
has to adjust and/or reduce or suspend certain payments to suppliers, such adjustments and/or reductions could further delay the production
and deliveries of the FF 91 Futurist.
To
the extent FF were to further meaningfully delay additional production and delivery of the FF 91 series, potential consumers may lose
confidence in FF, and customers who have placed pre-orders for the FF 91 Futurist may cancel pre-orders, which may curtail FF's
growth prospects. Additionally, FF's competitors may move more quickly to market than FF, which could impact FF's ability
to grow its market share.
Non-binding pre-orders
and other non-binding indications of interest may not be converted into binding orders or sales.
While
the Company has announced that its first users of the FF 91 2.0 Futurist Alliance have joined or are currently considering participating
in the Developer Co-creation Project, as of October 8, 2024, FF had sold five and leased out nine FF 91 2.0 vehicles. These Developer
Co-creation Officers entered into consulting, branding, and other arrangements with FF in exchange for fees ranging from approximately
$150,000 to $475,000.
Further,
although FF has engaged in marketing activities in anticipation of starting customer deliveries of the FF 91 series and FF had received
303 non-binding, fully refundable pre-orders in the U.S. and China as of December 31, 2023 and other non-binding indications of interest,
FF does not have binding purchase orders or commitments from customers to purchase any of FF's vehicles in development. As such,
there can be no assurance that the pre-orders and other indications of interest would be converted into binding orders or sales.
20
Until
the time that FF's products are commercially available for purchase and FF is able to scale up its marketing function to support
sales, there will be substantial uncertainty as to customer demand for FF vehicles. The potentially long wait from the time a non-binding
pre-order is made or other indication of interest is provided until the time FF vehicles are delivered, and any delays beyond expected
wait times, could also impact customer decisions on whether to ultimately make a purchase. Even if FF is able to obtain binding orders,
customers may limit their volume of purchases initially as they assess FF's vehicles and whether to make a broader transition to
electric vehicles. Commercializing the FF 91 Futurist and other vehicles in FF's development pipeline will be a long process and
depends on FF's ability to fund and scale up its productions, including through securing additional funding for its operations,
the consummation of various third-party agreements and expanding FF's marketing functions, as well as the safety, reliability, efficiency
and quality of FF's vehicles, and the support and service that will be available. It will also depend on factors outside of FF's
control, such as competition, general market conditions and broader trends in vehicle electrification and fleet management, that could
impact customer buying decisions. As a result, there is significant uncertainty regarding demand for FF's products and the pace
and levels of growth that FF may be able to achieve.
If FF has insufficient
reserves to cover future warranty claims, its business, prospects, financial condition, results of operations, and cash flows could be
materially and adversely affected.
As
our vehicles are produced and delivered, we will need to maintain warranty reserves to cover warranty-related claims. If our warranty
reserves are inadequate to cover future warranty claims on our vehicles, our business, prospects, financial condition, results of operations,
and cash flows could be materially and adversely affected. Additionally, estimating the necessary amount of warranty reserves is inherently
uncertain, particularly in light of our limited operating history and limited field data available to us, and changes to such estimates
based on real-world observations may cause material changes to our warranty reserves. In the future, we may become subject to significant
and unexpected warranty expenses. There can be no assurances that then-existing warranty reserves will be sufficient to cover all claims.
In addition, if future laws or regulations impose additional warranty obligations on us that go beyond our manufacturer's warranty,
we may be exposed to materially higher warranty expenses than we expect, and our reserves may be insufficient to cover such expenses.
FF has taken remedial
measures in response to the Special Committee findings. There can be no assurance that such remedial measures will be successful. In addition,
such remedial measures have not been fully implemented in light of the corporate governance agreements with FF Top and FF Global and the
recent assessment by the Board of FF's management structure, including management roles, responsibilities and reporting lines, and
changes to the Board.
In
November 2021, the Board established a special committee of independent directors (the "Special Committee") to investigate
allegations of inaccurate Company disclosures. The Special Committee engaged independent legal counsel and a forensic accounting firm
to assist in its review. The Special Committee made several findings, including that certain statements made by or on behalf of FF in
connection with the PIPE Financing were inaccurate; that deficiencies exist in FF's internal control environment; and that certain
of FF's policies and procedures required enhancement. Based on the results of the Special Committee investigation and subsequent
investigative work based on the Special Committee's findings performed under the direction of the Executive Chairperson and reporting
to the Audit Committee, the Board directed management to implement a number of remedial measures. See Note 10,
Commitments and
Contingencies, in the Notes to the Consolidated Financial Statements
for more information regarding the findings and remedial
actions relating to the Special Committee investigation.
There
can be no guarantee that the Special Committee investigation revealed all instances of inaccurate disclosure or other deficiencies, or
that other existing or past inaccuracies or deficiencies will not be revealed in the future. Additional inaccuracies or deficiencies could
subject FF to further litigation and regulatory investigations and could contribute to a failure of FF to meet its SEC reporting obligations
in a timely manner, any of which could adversely impact investor confidence in FF, contribute to a decline in trading prices for FF's
securities and interfere with FF's ability to access financing.
21
On
September 23, 2022, FF entered into an agreement with FF Global and FF Top (the "Heads of Agreement") pursuant to which FF
agreed to and implemented significant changes to the Board and Company governance. Certain of such changes have altered some of the remedial
measures of the Special Committee and/or preclude FF from fully implementing other remedial measures. For instance, Ms. Swenson, who was
appointed to the position of Executive Chairperson that the Board created based on the Special Committee investigation, tendered her resignation
from her role as both Executive Chairperson and member of the Board on October 3, 2022, effective immediately, and Mr. Adam (Xin) He was
appointed to serve as Interim (non-Executive) Chairman of the Board effective as of the same date. On July 31, 2023, Mr. He tendered his
resignation from the Board, effective immediately. FF expects that the current Board will select a permanent Chairperson of the Board.
Following the resignation of Ms. Swenson, all FF management (including Mr. Yueting Jia) reported directly or indirectly to the Global
CEO of FF (previously Dr. Breitfeld and Mr. Xuefeng Chen). In addition, Mr. Jia was, effective as of October 4, 2022, also appointed as
Founder Advisor, in which capacity he acts as an advisor to the Board with no change to his current compensation.
On
January 13, 2023, FF entered into an amended shareholder agreement with FF Global (only with respect to the amendment of the Heads of
Agreement) and FF Top (the "Amended Shareholder Agreement"), pursuant to which various terms of the Heads of Agreement were
amended.
On
February 26, 2023, after the Board's assessment of FF's management structure, the Board approved Mr. Yueting Jia (alongside
Mr. Xuefeng Chen) reporting directly to the Board, as well as FF's product, mobility ecosystem, I.A.I., and advanced R&D technology
departments reporting directly to Mr. Jia. The Board also approved FF's user ecosystem, capital markets, human resources and administration,
corporate strategy and China departments reporting to both Mr. Jia and Mr. Xuefeng Chen. FF's remaining departments continued to
report to Mr. Xuefeng Chen. Mr. Chen subsequently resigned from his position as Global CEO and was replaced by Matthias Aydt. Based on
the changes to his responsibilities within FF, the Board determined that Mr. Jia is an "officer" of FF within the meaning
of Section 16 of the Exchange Act (a "Section 16 officer") and an "executive officer" of FF under Rule 3b-7 under
the Exchange Act.
Given
the governance changes pursuant to the Heads of Agreement such as those described above and further changes to the composition of the
Board, there can be no assurance that the remedial actions approved by the Board in connection with the Special Committee investigation
will be fully implemented or successful. FF's Board and management intend to continue to evaluate the Special Committee remedial
actions and take actions in the best interest of FF and its stakeholders.
FF is involved
in an SEC investigation and may be further subject to investigations and legal proceedings related to the matters underlying the Special
Committee investigation and other matters, which may result in adverse findings, damages, the imposition of fines or other penalties,
increased costs and expenses and the diversion of management's time and resources.
On
December 23, 2021, a putative class action lawsuit alleging violations of the Exchange Act was filed in the United States District Court,
Central District of California, against FF, among others, and its former Global CEO, its former Chief Financial Officer ("CFO"),
its current Chief Product and User Ecosystem Officer, as well as the CFO of Legacy FF and former CFO of FF, three independent directors
of PSAC, and the Co-CEOs of PSAC. Also, in 2021, 2022 and 2023, putative stockholder derivative lawsuits were filed against numerous current
and former officers and directors of FF alleging violations of the Exchange Act and various common law claims. In addition, on June 14,
2022, a verified stockholder class action complaint was filed in the Court of Chancery of the State of Delaware against, among others,
FF, its former Global CEO, its former CFO and its current Chief Product and User Ecosystem Officer alleging breaches of fiduciary duties
(the "Yun Class Action"). Lastly, on September 21, 2022, a verified stockholder class action complaint was filed in the Court
of Chancery of the State of Delaware against, among others, FF, the Co-CEOs and independent directors of PSAC, and certain third-party
advisors to PSAC, alleging breaches of fiduciary duties, and aiding and abetting the alleged breaches, in connection with disclosures
and stockholder voting leading up to the Business Combination (the "Cleveland Class Action"), which action subsequently was
consolidated with the Yun Class Action with the complaint in the Cleveland Class Action being designated as the operative pleading. In
April, 2023, the defendants respectively filed motions to dismiss the complaint which are scheduled to be heard by the court on May 4,
2024. See Note 10,
Commitments and Contingencies – Legal Proceedings,
in the Notes to the Consolidated Financial
Statements for further information regarding these lawsuits.
22
In
connection with the Special Committee investigation, FF, certain members of the management team and FF employees received a notice of
preservation and subpoena from the staff of the SEC stating that the SEC had commenced a formal investigation relating to the matters
that were the subject of the Special Committee investigation beginning in October 2021. FF, which had previously voluntarily contacted
the SEC in connection with the Special Committee investigation, is cooperating fully with the SEC's investigation. The outcome of
such an investigation is difficult to predict, and the SEC has expanded the scope of its investigation beyond that of the Special Committee.
In addition, the SEC may subject our directors, officers and employees to fines, penalties and other punitive actions. In June 2022, FF
received a preliminary request for information from the U.S. Department of Justice ("DOJ") in connection with the matters
that were the subject of the Special Committee investigation. FF has responded to that request and intends to fully cooperate with any
future requests from the DOJ. We have incurred, and may continue to incur, significant expenses related to legal, accounting and other
professional services in connection with the SEC investigation. At this stage, we are unable to assess whether any material loss or adverse
effect is reasonably possible as a result of the SEC's investigation or estimate the range of any potential loss.
On
October 20, 2022, FF received a subpoena from the SEC requiring FF to produce certain documents relating to FF's transactions with
Senyun. On March 31, 2023, FF received questions from the SEC regarding FF's disclosed delivery estimates regarding the start of
production of the FF 91 Futurist. On March 23, 2023, FF received from the SEC a request to supplement production and on May 18, 2023,
FF received an additional subpoena from the SEC. On July 14, 2023, FF received an additional request from the SEC to supplement production
related to the May 18, 2023 subpoena and documents related to the consulting or sales agreements with the first three users of the FF
9.1 Futurist Alliance. On each of January 30, 2024, and April 8, 2024, FF received a subpoena from the SEC requiring FF to produce certain
additional documents relating to the SEC's investigation. FF has fully complied with and intends to continue to fully comply with
the subpoenas.
FF
has incurred, and may continue to incur, significant legal, accounting and other professional services expenditures in connection with
the Special Committee investigation, SEC investigation, SEC inquiries, the stockholders lawsuits and DOJ inquiry. Any legal proceedings
resulting from these investigations and litigation, including further shareholder derivative litigation or governmental inquiries or investigations
may further divert management's time and attention and may result in the incurrence of significant expense, including legal fees.
Such legal proceedings could also have a material adverse effect on our business, financial condition, results of operations and cash
flows including as a result of such expenses or arising from any consequences of such legal proceedings including damages, monetary fines,
sanctions, penalties, adverse publicity and damage to reputation.
FF will depend
on revenue generated from a single series of vehicles for the foreseeable future.
FF's
success will initially depend substantially on the future sales and success of the FF 91 series. FF expects the FF 91 series to be
its only manufactured vehicle in the market in the near future; it remains uncertain when FF will raise sufficient funding to complete
design, development, tooling, production, and deliveries of its second model, the FF 81 series. Historically, automobile customers have
come to expect a variety of vehicle models offered in a manufacturer's fleet and new and improved vehicle models to be introduced
frequently. It remains uncertain if FF's business will generate sufficient funds or FF will be able to obtain sufficient funds through
other means to introduce new vehicle models on a regular basis. Given that FF's business will depend on a single or limited number
of models in the foreseeable future, to the extent a particular model is not well-received by the market, FF's business prospects,
financial condition and operating results could be materially and adversely affected.
The market for
FF's vehicles, including its SLMD vehicles, is nascent and not established.
FF's
B2C passenger electric vehicles are planned to be with leading design and provide superior driving experience and personalized user experience
in their respective customer segments. FF believes its electric vehicles represent the "smart mobility" of the next generation.
FF's growth is highly dependent upon the consumers' reception and adoption of FF's vision as to what the future of transportation
and mobility should embody. Although there are many automakers introducing multiple options of mass-market electric vehicles, the market
for electric vehicles with ultra-new technology and cutting-edge styling is still nascent and untested. In addition to vehicles targeting
end-customers, FF plans to build the SLMD vehicles targeting B2B business-to-business last-mile delivery logistics companies. FF believes
its modular approach to vehicle design provides adaptive and sustainable solutions in the commercial vehicle segment, thus meeting the
needs of commercial vehicle owners. However, there is uncertainty as to the future demands for FF's vehicles in both B2B and B2C
market segments, and there is no assurance that the retail and commercial vehicle market FF envisions for its vehicles will be established.
To a large extent, it depends on general economic, political, and social conditions, all of which are beyond FF's control.
23
FF depends on its
suppliers, the majority of which are single-source suppliers. The inability of these suppliers to deliver necessary components for FF's
products according to the schedule and at prices, quality levels and volumes acceptable to FF, or FF's inability to efficiently
manage these suppliers, could have a material adverse effect on its business prospects, financial condition and operating results.
The
FF 91 model incorporates approximately 1,800 purchased components sourced from approximately 150 suppliers, many of whom are currently
FF's single-source suppliers for the components they supply, and FF expects this to be similar for any other vehicles FF may produce.
The supply chain exposes FF to multiple potential sources of delivery failure or component shortages. For example, on June 16, 2023, FF
announced that due to a supplier's timing constraints and the completion of an additional system testing related to FF's enhanced
safety testing of a single unique product feature of the FF 91 2.0 Futurist Alliance, the timing of its previously announced FF 91 2.0
Futurist Alliance Phase 2 delivery would be delayed to August 2023 from the end of the second quarter 2023. Additionally, in view of FF's
current cash position, it has delayed payment to suppliers, which in some cases has resulted in, and may continue to result in, certain
of such suppliers ceasing to do business with FF. FF is in active negotiations with suppliers to minimize these risks and has been successful
in retaining the majority of key suppliers. To the extent FF's suppliers experience any delays or stoppages in providing FF with
or developing necessary components or experience quality issues, or if they otherwise decide to cease doing business with FF, FF could
experience further delays, some of which may be significant, in delivering on its planned timelines.
Currently,
FF has not approved secondary sources for the key single sourced components used in the FF 91 series. Generally, FF does not maintain
long-term agreements with these single-source suppliers.
Historically,
certain suppliers ceased supplying their components and initiated legal claims against FF when FF failed to make overdue payments. While
most of these prior legal claims have been settled through the vendor trust FF established in April 2019 ("Vendor Trust"),
there are still a number of remaining and new disputes with suppliers in the U.S. and in China. Some suppliers have requested accelerated
payments and other terms and conditions as a result of our past payment history and concerns about FF's financial condition, leading
to less favorable payment terms than FF had anticipated, and delaying or putting at risk certain deliveries. More recently, some suppliers
have initiated legal claims against FF as FF fails to make overdue payments and more suppliers may continue to do so in the future. Any
disruption in the supply of components, whether or not from a single-source supplier, could temporarily disrupt FF's production
until a satisfactory alternative supplier is found, which can be time consuming and costly. There can be no assurance that FF would be
able to successfully retain alternative suppliers or supplies in a timely manner or on acceptable terms, if at all. If FF is unable to
efficiently manage its suppliers, including its relationship with them, FF's business, prospects, financial condition and operating
results may be materially and adversely affected. Additionally, changes in business and/or political conditions, force majeure events,
changes in regulatory framework and other factors beyond FF's control could also affect the suppliers' ability to deliver
components in a timely manner. Any of the foregoing could materially and adversely affect FF's business, prospects, financial condition
and operating results and could result in a material change in FF's operations and a material reduction in the market value of FF's
securities.
If any of FF's
suppliers become economically distressed or go bankrupt, FF may be required to provide substantial financial support or take other measures
to ensure supplies of components or materials, which could increase FF's costs, affect its liquidity or cause production disruptions.
FF
expects to purchase various types of equipment, raw materials and manufactured component parts from its suppliers. If any of these suppliers
experience substantial financial difficulties, cease operations, or otherwise face business disruptions, FF may be required to provide
substantial financial support to ensure supply continuity, or FF would have to take other measures to ensure components and materials
remain available. Any disruption could affect FF's ability to deliver vehicles and could increase FF's costs and negatively
affect its liquidity and financial performance.
24
FF faces a number
of challenges in the sale and marketing of its vehicles.
FF
plans to enhance its brand recognition, improve its brand reputation and grow its client base by substantial investments in marketing
and business development activities. However, FF cannot guarantee that its marketing spending or the marketing strategies it plans to
adopt will have their anticipated effect or generate returns. FF faces a number of challenges in the sale and marketing of its vehicles,
including, without limitation:
●
Demand in the automobile industry is highly volatile;
●
Final delivered range, performance and quality of FF's vehicles may vary from estimates;
●
It is expensive to establish a strong brand. FF may not succeed in continuing to establish, maintain and
strengthen the FF brand in a cost-efficient manner, or at all;
●
Many consumers are not aware of the benefits of FF's products, which may depend on factors beyond
FF's control such as transition of consumer behaviors;
●
FF competes with other automotive manufacturers for consumer spending;
●
Many other automotive manufacturers have already manufactured and sold electric vehicles providing them
with a marketing advantage;
●
FF's failure to keep up with rapid technological changes could make its vehicles less attractive
than those of competitors or make potential customers unwilling to pay a premium for FF's vehicles;
●
FF may not be able to attract a sufficient number of retail partners to support its expected sales volumes;
and
●
FF's efforts to develop and market its SLMD vehicles might not be successful given the fact that
its target customers are commercial logistic companies which have different requirements compared to retail consumers.
If
FF is unable to efficiently enhance its brand and market its products, its business prospects, financial condition and operating results
may be adversely and materially affected.
FF needs to develop
complex software and technology systems in coordination with vendors and suppliers to reach production for its electric vehicles, and
there can be no assurance such systems will be successfully developed.
FF's
vehicles will use a substantial amount of third-party and in-house software code and complex hardware to operate. The development of such
advanced technologies is inherently complex, and FF will need to coordinate with vendors and suppliers to achieve development for its
electric vehicles. Defects and errors may be revealed over time, and FF's control over the performance of third-party services and
systems may be limited. FF is relying on third-party suppliers to develop and manage emerging technologies for use in its vehicles, including
lithium-ion battery technology. As technology in electric vehicles is constantly evolving, FF may also need to rely on suppliers to develop
technologies that are not yet commercially viable. There can be no assurance that FF's suppliers will be able to meet the technological
requirements, production timing, and volume requirements needed to support FF's business plan. Nor can FF assure that such emerging
technologies and systems will be successfully developed on commercially reasonable terms, or at all. FF's potential inability to
develop the necessary software and technology systems may harm its competitive position and its business, prospects, financial condition
and operating results.
25
FF's decision
to manufacture its own vehicles in its leased FF ieFactory California does not guarantee FF will not incur significant delays in the production
of the vehicles.
FF
plans to continue to build-out its leased FF ieFactory California to support the production of the FF 91 series. Additionally, this construction
may experience unexpected delays or other difficulties which could further increase costs and/or adversely affect FF's scheduled
timeline to manufacture and deliver vehicles. Further, manufacturing and assembling components in-house in the FF ieFactory does not guarantee
that the production of its vehicles will be on schedule. Various risks and uncertainties inherent in all new manufacturing processes could
result in delays in the production of FF's vehicles, including for example those with respect to:
●
pace of bringing production equipment and processes online with the capability to manufacture high-quality
units at scale;
●
compliance with complex and evolving environmental, workplace safety and similar regulations;
●
channels to secure necessary equipment, tools and components from suppliers on acceptable terms and in
a timely manner;
●
the ability to attract, recruit, hire and train skilled employees;
●
quality controls;
●
a health emergency, difficult economic conditions and international political tensions; and
●
other delays and cost overruns.
Production and
manufacturing of some of FF's vehicles may be outsourced to a third-party contract manufacturer in South Korea and potentially through
a joint venture in China. If such contract manufacturer or joint venture fails to produce and deliver vehicles in a timely manner for
any reason, FF's business, prospects, financial condition and results of operation could be materially harmed.
FF
plans to outsource the manufacturing of some of its vehicles to a third-party contract manufacturer in South Korea and may also set up
a joint venture in China for vehicle manufacturing, which FF may heavily rely upon. Collaboration with third parties for the manufacturing
of vehicles is subject to risks that may be outside FF's control. FF has yet to enter into any legally binding definitive agreements
regarding such third-party contract manufacturers (other than with a third-party contract manufacturer in South Korea) or joint venture,
and the parties could revise or terminate the preliminary memorandum of understanding and cooperation agreement. The parties may also
not reach agreement on legally binding definitive documents regarding such joint venture, could abandon the related preliminary memorandum
of understanding and cooperation agreement and pursue other commercial arrangements (such as contract manufacturing or sale) or could
terminate the preliminary memorandum of understanding and cooperation agreement at any time before the definitive agreements are signed.
Even though the definitive agreement has been signed with the third-party contract manufacturer in South Korea, there remains uncertainty
if the manufacturing facility will be built-out as planned or if the parties will cooperate with each other as agreed.
In
addition, FF could experience delays if such third-party contract manufacturing partner or joint venture does not meet agreed upon timelines
or experiences capacity constraints. There is risk of potential disputes with business partners, and FF could be affected by adverse publicity
related to its business partners, whether or not such publicity is related to their collaboration with FF. FF's ability to successfully
build a premium brand could also be adversely affected by perceptions if the quality of the third-contract manufacturing partners or joint
venture's products not related to FF's products are questioned. Furthermore, there can be no assurance that FF will successfully
ensure its manufacturing partners or joint ventures maintain appropriate quality standards, with any failure to do so adversely affecting
customers' perceptions of FF's self-manufactured electric vehicles.
If
FF experiences delays, disputes or other difficulties with third-party manufacturers or joint ventures that FF outsources orders to, there
can be no assurance that it would be able to engage other third parties or to establish or expand its own production capacity to meet
the needs of its customers in a timely manner or on acceptable terms, or at all. The expense and time required to complete any transition,
and to assure that vehicles manufactured at facilities of new manufacturers comply with FF's quality standards and regulatory requirements
may be greater than anticipated. Any of the foregoing could adversely affect FF's business, results of operations, financial condition
and prospects.
26
FF has minimal
experience servicing and repairing its vehicles. The inability to adequately service vehicles may adversely affect FF's business.
FF
has minimal experience servicing and repairing its vehicles. Servicing EVs is different than servicing vehicles with internal combustion
engines and requires specialized skills, including high voltage training and servicing techniques. Although FF is planning to internalize
most aspects of vehicle service over time, initially FF plans to partner with third parties to enable nationwide coverage for roadside
and off-road assistance and collision repair needs. There can be no assurance that FF will be able to enter into an acceptable arrangement
with any such third-party providers. Although such servicing partners may have experience in servicing other vehicles, they will initially
have limited experience in servicing FF vehicles. There can be no assurance that such service arrangements will adequately address the
service requirements of FF's customers to their satisfaction, or that FF and its servicing partners will have sufficient resources,
experience, or inventory to meet these service requirements in a timely manner as the volume of EVs we deliver increases.
In
addition, a number of states currently impose limitations on the ability of manufacturers to directly service vehicles. The application
of these state laws to our operations could hinder or impede our ability to provide services for our vehicles from a location in every
state. As a result, if FF is unable to roll out and establish a widespread service network that complies with applicable laws, customer
satisfaction could be adversely affected, which in turn could materially and adversely affect FF's reputation and thus its business.
In
the future, additional pressure may be placed on FF's customer support team or partners, and FF may be unable to respond quickly
enough to accommodate short-term increases in customer demand for technical support. Customer behavior and usage may result in higher
than expected maintenance and repair costs, which may negatively affect FF's business. FF also could be unable to modify the future
scope and delivery of its technical support to compete with changes in the technical support provided by its competitors. Increased customer
demand for support, without corresponding revenue, could increase costs and negatively affect FF's results of operations. If FF
is unable to successfully address the service requirements of its customers or establish a market perception that FF maintains high-quality
support, FF may be subject to claims from customers, including loss of revenue or damages, and FF's business could be materially
and adversely affected.
Changes in U.S.
and international trade policies, including the export and import controls and laws, particularly with regard to China, may adversely
impact FF's business and operating results.
FF
operates with a United States and China dual-home market strategy, partnering with leading international suppliers from North America,
Europe and Asia. While FF believes this is the best strategic business model, it also is more subject to risks associated with international
trade conflicts including between the United States and China, particularly with respect to export and import controls and laws.
Former President Donald J. Trump advocated for greater restrictions on international trade in general, which significantly increased tariffs
on certain goods imported into the United States - particularly from China. Former President Trump also took steps toward restricting
trade in certain goods. In response, China and other countries imposed similar retaliatory tariffs and other measures and such international
trade conflicts have continued under the Biden administration.
On
December 23, 2021, the Uyghur Forced Labor Prevention Act, which effectively prohibits imports of any goods made either wholly or in part
in Xinjiang, was signed into law. The law went into effect on June 21, 2022. The law prohibits "the importation of goods made with
forced labor" unless U.S. Customs and Border Protection determines, based on "clear and convincing evidence", that the
goods in question were not produced "wholly or in part by forced labor", and submits a report to the U.S. Congress setting
out its findings. While we do not currently expect that this law will directly affect our supplies, since we do not believe that our suppliers
source materials from Xinjiang for the products they sell to us, other renewable energy companies' attempts to shift suppliers in
response to this law, withhold release orders, or other policy developments could result in shortages, delays, and/or price increases
that could disrupt our own supply chain or cause our suppliers to renegotiate existing arrangements with us or fail to perform on such
obligations. Broader policy uncertainty could also reduce Chinese panel production, affecting supplies and/or prices for panels, regardless
of supplier. While we have developed multiple supply sources in a variety of countries, we could still be adversely affected by increases
in our costs, negative publicity related to the industry, or other adverse consequences to our business.
27
Rising
political tensions could reduce trade volume, investment, technological exchange and other economic activities between major international
economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets. Additionally,
increasing tariffs could impact raw material prices, the cost of component parts and transportation. Any of the foregoing could have an
adverse effect on FF's business, prospects, financial condition and results of operations. The Biden administration may also enact
policy changes that could have an impact on FF's business, such as the recent Executive Order on Addressing United States Investments
in Certain National Security Technologies and Products in Countries of Concern.
Continued or increased
price competition in the automotive industry generally, and in electric and other alternative fuel vehicles, may harm FF's business.
Increased
competition could result in lower vehicle unit sales, increased inventory, price reductions, revenue shortfalls, loss of customers and
loss of market share, which could harm FF's business, prospects, financial condition and operating results. For example, the automotive
industry has witnessed increasing price competition over the years. With more competitors entering the field, many manufacturers are facing
downward price pressure and have been adjusting their pricing strategies. FF may not have the same financial resources as some of the
competitors to allow it to adjust pricing strategies, which may result in a loss of customers and future market share. On the other hand,
if FF follows the downward price adjustment trend, its ability to generate revenues and achieve profitability may be adversely affected.
Any of the foregoing may harm FF's business, prospects, results of operations and financial condition.
FF faces competition
from multiple sources, including new and established domestic and international competitors, and expects to face competition from others
in the future, including competition from companies with new technology. This fierce competition may adversely affect FF's revenues,
increase its costs to acquire new customers, and hinder its ability to acquire new customers.
The
automotive market in the United States, China, Middle East and the E.U, which are FF's target markets, is and will remain highly
competitive. A significant and growing number of established and new automobile manufacturers, as well as other companies, have entered
or are reported to have plans to enter the alternative fuel vehicle market, including hybrid, plug-in hybrid and fully electric vehicles,
as well as the market for autonomous driving technology and applications. In some cases, such competitors have announced an intention
to produce electric vehicles exclusively at some point in the future. FF directly competes with other pure-play electric vehicle companies
targeting the high-end market segment, and to a lesser extent with NEVs and ICE vehicles in the mid- to high-end market segment offered
by traditional OEMs. In light of the increased demand and regulatory push for and technology changes in connection with the alternative
fuel vehicles, FF expects competition in the industry to intensify with more new players in the future, including companies with new technology.
Many
of FF's current and potential competitors, have significantly greater financial, technical, manufacturing, marketing, distribution
and other resources than FF, and are able to devote greater resources to the design, development, manufacturing, distribution, promotion,
sale and support of their products than FF. In order to acquire customers and better compete, FF may have to incur significant expenses
for marketing and business development activities and discounts. Any inability to successfully compete with new or existing competitors
may prevent FF from attracting new customers and result in loss of market share. By the time FF starts delivering FF 91 on a larger scale,
a substantial portion of the market share may have already been taken by FF's competitors. There can be no assurance that FF will
be able to compete successfully in global and local markets, failure of which may materially and adversely affect FF's business,
prospects, financial condition and results of operations.
FF's go-to-market
and sales strategy, including its own and partner stores and showrooms as well as FF's online web platform, will require substantial
investment and commitment of resources and is subject to numerous risks and uncertainties.
FF
intends to establish online and offline marketing, sales, and after-sales channels, which consist of its own stores, partner stores and
showrooms and an online web platform. FF plans to distribute its vehicles in certain key markets through its direct stores, while establishing
a distribution model of direct sales and partner-owned stores and showrooms in other markets. Users will be able to place orders and purchase
FF's vehicles exclusively through an online platform while assigning the transaction to a specific store or showroom. Establishing
FF's direct stores rather than exclusively distributing its vehicles though partner stores will require significant capital expenditures
and may result in reduced or slower expansion of FF's distribution and sales systems in the key markets compared to a traditional
dealership system.
28
FF
expects the partner stores and showrooms will be compensated from the sales and services that are conducted online and from the capital
upside of the FF equity that the retail partners may receive as an incentive for making their initial investment in stores of showrooms.
However, FF cannot assure that its partner business model will be as attractive as that of traditional OEMs and thus that FF will be able
to scale up its network to an adequate size. In addition, FF is not in a position to guarantee that it will be able to generate sufficient
traffic to FF's online web platform or to attract enough users to place orders. Moreover, FF will be competing with automakers with
well-established distribution channels, which places significant risk to the successful implementation of FF's business plan.
If
FF is unable to roll out and establish a broad network covering both online and offline channels that fully meet customers' expectations,
consumer experience could be adversely affected, which could in turn materially and adversely affect FF's business, financial condition,
results of operations and prospects. Implementing the FF business model is subject to numerous significant challenges, including
obtaining permits and approvals from government authorities, and FF may not be successful in addressing these challenges. In addition,
dealer trade associations may mount challenges to FF's distribution strategy by challenging the legality of FF's operations
in court and employing administrative and legislative processes to attempt to prohibit or limit FF's ability to operate. All these
would have a material and adverse effect on FF's business, prospects, results of operations and financial condition.
Difficult economic
conditions, financial or economic crises, or the perceived threat of such a crisis, including a significant decrease in consumer confidence,
may affect consumer purchases of premium items, such as FF's electric vehicles.
Sales
of premium consumer products, such as the FF 91 Futurist and other electric vehicles, depend in part on discretionary consumer spending
and therefore may decline based on adverse changes in general economic conditions. The global economy and financial markets experience
significant disruptions from time to time, constantly facing new challenges, including ongoing trade disputes and tariffs, as well as
the related economic policies taken by various governments around the world. It is unclear whether these challenges will be successfully
addressed and what effects they may have. Any prolonged slowdown in economic development might lead to tighter credit markets, increased
market volatility, sudden drops in business and consumer confidence and dramatic changes in business and consumer behaviors.
Difficult
macroeconomic conditions, such as decreases in per capita income and disposable income, increased and prolonged unemployment, a decline
in consumer confidence, and/or reduced spending by businesses could have a material adverse effect on future investor interest or customer
demand for FF's vehicles. In response to the perceived uncertainty in economic conditions, consumers might delay, reduce or cancel
purchases of such electric vehicles. Potential customers may seek to reduce spending by foregoing luxurious new energy vehicles. Decreased
demand for FF vehicles, particularly in the United States and China, could negatively affect the business, prospects, financial condition
and results of operations of FF.
FF faces risks
related to natural disasters, climate change, health epidemics and pandemics, terrorist attacks, civil unrest and other circumstances
outside its control, which could significantly disrupt FF's operations.
The
occurrence of unforeseen or catastrophic events, including the emergence of an epidemic, pandemic (such as the COVID-19 pandemic) or other
widespread health emergency, civil unrest, war (such as the conflict in Ukraine), terrorist attacks, climate change or natural disasters
could create economic and financial disruptions. These types of events could lead to operational difficulties, impair FF's ability
to manage its business and expose FF's business activities to significant losses. FF's management and operational teams are
based in the United States and China. FF has a manufacturing facility in Hanford, California, and has executed an agreement with
a contract manufacturer in South Korea. FF is also exploring other potential contract manufacturing options in addition to the contract
manufacturer in South Korea. Additionally, FF may establish manufacturing through a joint venture in China and/or other regions for certain
future vehicle models. An unforeseen or catastrophic event in any of these regions could adversely impact FF's operations.
29
If FF is unable
to attract and/or retain key employees and hire qualified Board members, officers and other individuals, its ability to compete could
be harmed.
FF's
future success depends, in part, upon its ability to retain key members of its senior management team and the Board, and to attract and
retain other highly qualified individuals for the Board and senior management positions. FF has experienced significant changes in the
membership of the Board and senior management team, including most recently the resignations of Jonathon Maroko from his position as an
interim Chief Financial Officer, the resignation of Li Han from her position as a member of the Board and member of Nominating and Corporate
Governance Committee. This significant recent turnover has disrupted, and potential future turnover could further disrupt, FF's
operations, strategic focus or ability to drive stockholder value.
If
FF fails to attract new skilled personnel for senior management positions and the Board, or if one or more of them are unable
or unwilling to continue their services with FF, FF may not be able to replace them easily, in a timely manner, or at all. Movements
in the price of Class A Common Stock, including any decline, may significantly affect the value of employee stock options, which may at
any time be insufficient to counteract more lucrative offers from other companies.
In
addition, FF may incur additional expenses to recruit, train and retain qualified personnel. Certain current and former executives of
FF adopted a global partnership program to retain, and provide incentives for, certain key management members. However, there is no guarantee
that FF will be able to attract other qualified candidates to fill certain positions. The failure to do so may lead to difficulties in
effectively executing FF's business strategies, and its business, prospects, financial condition and results of operations could
be materially and adversely affected. Furthermore, if any of FF's executive officers or key employees join a competitor or
form a competing company, FF may lose know-how and be poorly positioned in the marketplace.
Unionization activities
or labor disputes may disrupt FF's business and operations and affect its profitability.
Although
none of our employees are currently represented by organized labor unions, it is not uncommon for employees at companies in the automobile
industry to belong to a union, which can result in higher employee costs and increased risk of work stoppages. Although FF works diligently
to provide the best possible work environment for its employees, they could still decide to join or seek representation by organized labor
unions, or FF may be required to become a union signatory. FF's business and operations as well as its profitability could be adversely
affected if unionized activities such as work stoppages occur, or if FF becomes involved in labor disputes or other actions filed by labor
unions. Any unfavorable outcome in such disputes could create a negative perception of how FF treats its employees.
If FF's employees
were to engage in strikes or other work stoppages, or if third-party strikes or work stoppages cause supply chain interruptions, FF's
business, prospects, operations, financial condition and liquidity could be materially adversely affected.
A
strike or work stoppage by FF's employees or by employees of FF's outsourcing partners or suppliers could have a material
adverse effect on its business, prospects, operations, financial condition and liquidity. Work stoppages at FF's suppliers may cause
supply chain interruptions, which could materially and adversely impact FF's operations given its limited, and in most cases,
single-source supply chain. If a work stoppage occurs, it could delay the manufacture and sale of FF's products, disrupt its business
and operations, or have an adverse effect on FF's cash flow, all of which could materially and adversely affect FF's business,
prospects, operating results, financial condition and liquidity.
30
The discovery of
defects in vehicles may result in delays in production and delivery of new models, recall campaigns or increased warranty costs, which
may adversely affect FF's brand and result in a decrease in the residual value of FF's vehicles.
FF's
vehicles may contain design and manufacturing defects. The design and manufacturing of FF's vehicles are complex and could contain
latent defects and errors, which may cause its vehicles not to perform or operate as expected or even result in property damage, personal
injuries or death. Furthermore, FF's vehicles use a substantial amount of third-party and in-house software codes and complex hardware
to operate. Advanced technologies are inherently complex, and defects and errors may be revealed over time. While FF has performed extensive
internal testing on its vehicles and the related software and hardware systems, and will continue this testing and evaluation, FF has
a limited frame of reference by which to assess the long-term performance of its vehicles and systems. There can be no assurance that
FF will detect or fix the defects in a timely manner.
The
discovery of defects in FF's vehicles may result in delays in production and delivery of new models, recall campaigns, product liability
claims or increased warranty costs and other expenses, and may decrease the residual values of vehicles that are subject to leasing arrangements.
FF might from time to time, voluntarily or involuntarily, initiate vehicle recalls if any of FF's vehicles, including any systems
or parts sourced from suppliers and contractors, prove to be defective or noncompliant with applicable laws and regulations. For example,
on March 1, 2024, FF issued a voluntary recall of certain 2023 FF 91 2.0 vehicles when it was discovered that these vehicles had a software
issue that could prevent the airbag malfunction light from illuminating in case of an airbag control unit communications fault. Such recalls,
whether voluntary or involuntary or caused by systems or components engineered or manufactured by FF or by suppliers and contractors,
could require that FF incur significant costs relating to logistics and/or repair. All of the foregoing could materially harm FF's
brand image, business, prospects, financial condition and results of operations.
FF may become subject
to product liability claims, which could harm its financial condition and liquidity if it is not able to successfully defend or insure
against such claims.
FF
may become subject to product liability claims, even those without merit, which could harm its business, prospects, operating results,
and financial condition. The automobile industry experiences significant product liability claims and FF faces inherent risk of exposure
to claims in the event its vehicles do not perform as expected or malfunction resulting in personal injury or death. The risks in this
area are particularly pronounced given FF has limited field experience for its vehicles and currently does not have product liability
insurance. A successful product liability claim against FF could require it to pay a substantial monetary award. Moreover, a product liability
claim could generate substantial negative publicity about FF's vehicles and business and inhibit or prevent commercialization of
other future vehicle candidates, which would have a material adverse effect on FF's brand, business, prospects and operating results.
Any insurance coverage FF is able to obtain in the future might not be sufficient to cover all potential product liability claims. FF
may not be able to secure additional product liability insurance coverage on commercially acceptable terms or at reasonable costs when
needed, which could have a material and adverse effect on FF's operating results and financial condition.
If FF is sued for
infringing or misappropriating intellectual property rights of third parties, litigation could be costly and time consuming and could
prevent FF from developing or commercializing its future products.
FF
is subject to litigation risks from third parties alleging infringement of their intellectual property, which could be time consuming
and costly, regardless of whether the claims have merit. Individuals, organizations and companies, including FF's competitors, may
hold or obtain patents, trademarks and/or other proprietary rights that would prevent, limit or interfere with its ability to make, use,
develop, sell and/or market FF's vehicles or components, and may bring claims alleging FF's infringement of such rights. If
FF is determined to have or believes there is a high likelihood that FF has infringed upon a third party's intellectual property
rights, not only may FF be required to pay substantial damages or settlement costs, but FF may also be required to cease sales of its
vehicles, incorporate certain components into its vehicles, or offer vehicles or other goods or services that incorporate or use the challenged
intellectual property, seek a license from the holder of the infringed intellectual property rights (which license may not be available
on reasonable terms or at all), redesign the vehicles or other goods or services, establish and maintain alternative branding for FF's
products and services, and/or alter FF's business strategy, all of which could prevent FF from developing or commercializing its
vehicles and adversely and materially hamper its business, prospects, financial condition and results of operations. In addition, any
litigation or claims, whether or not valid, could result in substantial costs, negative publicity, and diversion of resources and management
attention.
31
FF may be subject
to damages resulting from claims that FF or its employees have wrongfully used or disclosed alleged trade secrets or other intellectual
property rights of former employers of FF's employees.
Many
of FF's employees were previously employed by other automotive companies or by suppliers to automotive companies. FF may be subject
to claims that it or these employees have inadvertently or otherwise used or disclosed trade secrets or other proprietary information
of their former employers. Litigation may be necessary to defend against these claims. If FF fails in defending such claims, in addition
to paying monetary damages, it may lose valuable intellectual property rights or personnel. A loss of key personnel or their work product
could hamper or prevent FF's ability to commercialize its products, which could severely harm FF's business, prospects, results
of operations and financial condition. Even if FF is successful in defending against these claims, litigation could result in substantial
costs, negative publicity and demand on management resources, which would materially adversely affect its business, prospects, brand,
financial condition and results of operations.
FF has elected
to protect some of its technologies as trade secrets rather than as patents, however, this approach has certain risks and disadvantages.
FF
has elected to protect many of its technological developments as trade secrets rather than filing patent applications on them. If another
person has filed or files in the future a patent application on the same subject invention FF may be precluded from subsequently filing
for its own patent on such invention. In addition, if the other person's patent application is granted, FF's continued use
of its technological development could then constitute infringement of the other person's patent. In that case FF could be forced
to stop using the affected technology or to pay royalties to continue using it. These risks are heightened for FF given the large number
of patent filings in the industry.
Another
risk of reliance upon trade secret protection is that there is no guarantee that the efforts FF has made to keep its trade secrets secret
will be successful. Trade secrets may be taken or used without FF's authorization or knowledge, including via information security
breaches. It is difficult to detect that trade secrets are being misappropriated, and it is very difficult and expensive to prove disclosure
or unauthorized use in court and to obtain an adequate remedy.
FF is dependent
upon its proprietary intellectual properties.
FF
considers its copyrights, trademarks, trade names, internet domain names, patents and other intellectual property assets invaluable to
its ability to develop and protect new technology, grow its business and enhance FF's brand recognition. FF has invested significant
resources to develop its intellectual property assets. Failure to successfully maintain or protect these assets could harm FF's
business. The steps FF has taken to protect its intellectual property rights may not be adequate or prevent theft and use of its trade
secrets by others or prevent competitors from copying its newly developed technology. If FF is unable to protect its proprietary rights
or if third parties independently develop or gain access to similar technology, FF's business, revenue, reputation and competitive
position could be harmed. For example, the measures FF takes to protect its intellectual property from unauthorized use by others may
not be effective for various reasons, including the following:
●
any patent applications FF submits may not result in the issuance of patents;
●
the scope of FF's issued patents may not be broad enough to protect its proprietary rights;
●
FF's issued patents may be challenged and/or invalidated by its competitors or others;
●
the costs associated with enforcing patents, confidentiality and invention agreements and/or other intellectual
property rights may make aggressive enforcement impracticable;
●
current and future competitors may circumvent FF's patents;
●
FF's in-licensed patents may be invalidated, or the owners of these patents may breach their license
arrangements; and
●
even if FF obtains a favorable outcome in litigation asserting its rights, FF may not be able to obtain
an adequate remedy, especially in the context of unauthorized persons copying or reverse engineering FF's products or technology.
32
FF
may need to resort to litigation to enforce its intellectual property rights if its intellectual property rights are infringed or misappropriated,
which could be costly and time consuming. Additionally, protection of FF's intellectual property rights in different jurisdictions
may vary in their effectiveness. FF has little patent coverage anywhere in the world except the United States and China. Implementation
and enforcement of Chinese intellectual property-related laws historically has been considered to be deficient and ineffective. Moreover,
with FF's ownership of patents limited mostly to those issued in China and the United States, FF may find it impossible to
prevent competitors from copying its patented advancements in vehicles manufactured and sold elsewhere.
Despite
FF's efforts to protect its proprietary rights, third parties may still attempt to copy or otherwise obtain and use its intellectual
property or seek court declarations that such third parties' intellectual property does not infringe upon FF's intellectual
property rights, or they may be able to independently develop technologies that are the same as or similar to FF's technologies.
FF may not be able
to obtain patent protection on certain of its technological developments, and may face better-funded competitors with formidable patent
portfolios.
FF
may not be able to obtain patent protection for certain of its technological developments because some of its existing applications were
abandoned and applicable filing deadlines for seeking to protect such technologies may have passed in the United States and around
the world. Also, FF has elected to protect some of its technologies as trade secrets rather than as patents. However, this approach risks
the wrongful disclosure and use of FF's trade secrets by departing employees and others. FF has delayed filing for patent protection
on certain of its technological developments in recent years due to financial constraints. Because patents are granted on a first-to-file
basis, a delay in patent filings, such as this, can result in other companies filing for and obtaining the same inventions either independently
derived or otherwise. In addition, inventions not subject to an earlier filing date as disclosed in an active application can result in
FF's inventions or patents being "blocked" by prior art in the meantime. The consequences of the filing delays could
place FF at a disadvantage relative to competitors that have been continuously more active in filing patent applications and could leave
FF unable to protect its technologies that differentiate FF's vehicles from the vehicles of its competitors. FF also faces better-funded
competitors with formidable patent portfolios and there can be no guarantee that one or more competitors has not and/or will not obtain
patent protection on features necessary to implement in FF's vehicles.
FF is subject to
stringent and changing laws, regulations, standards and contractual obligations related to data privacy and security, and FF's actual
or perceived failure to comply with such obligations could harm its reputation, subject it to significant fines and liability, or otherwise
adversely affect FF's business, prospects, financial condition and results of operations.
FF
plans to permit certain of its business partners to collect, process, store, and in some cases transfer across borders, personally identifiable
information concerning the drivers and passengers of FF's vehicles. Such information may include among other things faces, names,
geolocation information, payment data, and preferences. Although FF has adopted security policies and measures, including technology,
to protect its customer information and other proprietary data, it may be required to expend significant resources to further comply with
information security laws, data breach notification requirements, as well as privacy and data protection law if third parties improperly
obtain or use personal information of FF's customers or FF otherwise experiences a data loss with respect to its customers'
personal information. Moreover, privacy and data protection laws are constantly evolving, and new requirements may limit or disrupt FF's
data practices, restrict our ability to market our products, impact operations and increase legal and reputational risks.
FF
plans to operate on a global basis, and thus FF will face a significant burden to comply with data privacy and information security laws
and regulations in the United States at the federal and state level, China, Brazil, Europe, the UK and the rest of the world. Although
FF endeavors to comply with all such laws and regulations, as well as FF's own policies and obligations under contracts with third
parties, FF may at times fail to do so or be alleged to have failed to do so. Any failure or perceived failure by FF to comply with such
privacy, data protection or information security laws, regulations, policies, and obligations in one or more jurisdictions could expose
FF to litigation, awards, fines or judgments, civil and/or criminal penalties or negative publicity, and could adversely affect FF's
business, financial condition, results of operations and prospects.
33
The
global regulatory framework governing the collection, processing, storage, use and sharing of personal information, is rapidly evolving
and is likely to continue to be subject to uncertainty and varying interpretations. In the United States, certain state laws may
be more stringent or broader in scope, or offer greater individual rights, with respect to sensitive and personal information than federal,
international or other state laws, and such laws may differ from each other, which may complicate compliance efforts. For example, California
enacted the California Consumer Privacy Act of 2018 ("CCPA") which went into effect in January 2020 and became enforceable
by the California Attorney General in July 2020, and which, among other things, requires companies covered by the legislation to
provide new disclosures to California consumers and afford such consumers new rights of access and deletion for personal information,
as well as the right to opt out of certain sales of personal information. The CCPA provides for civil penalties for violations, as well
as a private right of action for certain data breaches that result in the loss of personal information. This private right of action may
increase the likelihood of, and risks associated with, data breach litigation. Additionally, a California ballot initiative, the California
Privacy Rights Act ("CPRA") was passed in November 2020 and its amendments to the CCPA went into effect January 1, 2023.
The CPRA amendments impose additional obligations on in-scope companies and significantly modify the CCPA, including by expanding consumers'
rights with respect to certain sensitive personal information. The CPRA amendments also created a new state agency vested with authority
to implement and enforce the CCPA, and which is presently engaged in rulemaking processes that can introduce additional burdens or obligations
on FF's compliance programs and data practices. Moreover, additional states such as Virginia, Colorado, Connecticut and Utah have
passed similar legislation that went into effect in 2023, and further states may follow. Additionally, the Federal Trade Commission has
issued an Advanced Notice of Proposed Rulemaking in August of 2022 indicating its interest in developing broad regulations around information
security and commercial surveillance practices that may further impact our business. The effects of these new privacy laws and regulations
are potentially significant and may require FF to modify its data collection or processing practices and policies and to incur substantial
costs and expenses in an effort to comply and increase our potential exposure to regulatory enforcement and/or litigation.
Internationally,
many jurisdictions have established their own data security and privacy legal framework with which FF or its clients may need to comply,
including, but not limited to, the E.U. The E.U.'s data protection landscape is currently unstable, resulting in possible significant
operational costs for internal compliance and risk to FF's business. In China, the Personal Information Protection Law was passed
on August 20, 2021 and took effect on November 1, 2021, imposing restrictions on entities that collect and process personal data and sensitive
information about subjects in China. China also has a cybersecurity regulatory regime that may also add to our regulatory compliance risks.
Failure
by FF, whether actual or perceived, to comply with federal, state or international privacy, data protection or security laws or regulations
could result in regulatory or litigation-related actions against FF, legal liability, fines, damages and other costs, and could adversely
affect its business, financial condition, results of operations and prospects.
FF is subject to
cybersecurity risks relating to its various systems and software, or that of any third party that FF relies upon, and any failure, cyber
event or breach of security could prevent FF from effectively operating its business, harm its reputation or subject FF to significant
liability.
FF's
business requires it to use and store confidential information, including information relating to its suppliers and other third parties,
and FF's customers' personal information and preferences. FF and the business partners storing its data are routinely
subject to cybersecurity threats and attacks. Information security risks have increased in recent years in part because of the proliferation
of new technologies and the increased sophistication and activities of organized crime, hackers, terrorists, state-sponsored actors, and
other external parties. Moreover, cybersecurity laws are increasing in complexity and creating expanded areas for potential legal liability
in the wake of data breaches or technological vulnerabilities. FF's vehicles contain complex IT systems and software to support
interactive and other functions. FF maintains policies, procedures and technological safeguards and has implemented policy, procedural,
technical, physical and administrative controls intended to prevent unauthorized access to its IT networks and vehicles' systems.
However, FF regularly defends against and responds to information security incidents, vulnerabilities and other security events. Unauthorized
persons may gain unauthorized access to modify, alter, insert malicious code and use such networks and systems or gain access to confidential
information of our suppliers, other third parties or customers, or our software or other technologies may have vulnerabilities that lead
to operational interruptions, data losses, or other harms. In the event FF's or FF business partners' data system protection,
disaster recovery, business continuity or secure software and development lifecycle efforts are unsuccessful and such systems or the data
systems of vehicles are compromised, FF could suffer substantial harm. The conflict between Russia and Ukraine may increase the risk of
cyberattacks.
34
FF
cannot entirely eliminate the risk of improper or unauthorized access to or disclosure of data or personal information, technological
vulnerabilities or other security events that impact the integrity or availability of FF's data systems and operations, or the related
costs FF may incur to mitigate the consequences from such events. Additionally, FF cannot guarantee that its insurance coverage would
be sufficient to cover all losses. Moreover, FF has limited control over and limited ability to monitor FF's third-party business
partners that collect, store, and process information, including personally identifiable information, on FF's behalf. They and their
systems could be the subject of cyberattacks, just as FF could, and they may or may not put into practice the policies and safeguards
they should in order to comply with applicable laws, regulations, and their contractual obligations to FF. A vulnerability in a third-party
business partner's software or systems, a failure of FF's third-party business partner's safeguards, policies or procedures,
or a breach of a third-party business provider's software or systems could result in the compromise of the confidentiality, integrity
or availability of FF's systems or vehicles, or the data stored by FF's business partners.
To
the extent that FF's vehicles are commercialized, there can be no assurance that these vulnerabilities related to FF's systems
and software will not be exploited in the future before they can be identified, or that FF's remediation efforts will be successful.
A major breach of FF's network security and systems could have negative consequences for its business, prospects, financial condition
and results of operation including possible fines, penalties and damages, reduced customer demand for FF's vehicles and harm to
its reputation and brand. Any cyberattacks, unauthorized access, disruption, damage or control of FF's IT networks and systems or
any loss or leakage of data or information stored in its systems could result in disruption of FF's operations and legal claims
or proceedings. In addition, regardless of their veracity, reports of cyberattacks to our networks, systems or data, as well as other
factors that may result in the perception that FF's networks, systems or data are vulnerable to "hacking," could further
negatively affect FF's brand and harm its business, prospects, financial condition and results of operation.
FF may not be able
to obtain regulatory approval for its vehicles.
Motor
vehicles are subject to substantial regulation under international, federal, state and local laws. Vehicles produced by FF will be required
to comply with the applicable safety, product and other standards and regulations in FF's targeted markets. For example, FF's
vehicles in the U.S. are subject to numerous regulatory requirements established by the NHTSA, including all applicable Federal Motor
Vehicle Safety Standards ("FMVSS"). FF's vehicles must also obtain emissions certification from either the EPA or CARB.
Rigorous testing and the use of approved materials and equipment are among the requirements for achieving federal certification. In addition,
FF's vehicles sold in China must pass various tests and undergo a certification process and be affixed with the China Compulsory
Certification ("CCC"), before delivery from the factory and sale, and such certification is also subject to periodic renewal.
FF may fail to obtain or renew the required certification or regulatory approval for its vehicles, which may prevent FF from delivering,
selling and/or importing/exporting its vehicles, and therefore materially and adversely affect its business, results of operations, financial
condition and prospects.
FF and its suppliers
and manufacturing partners may be subject to increased environmental and safety or other regulations and disclosure rules resulting in
higher costs, cash expenditures, and/or sales restrictions.
As
a manufacturing company, including with respect to the current FF ieFactory California facility, its planned future facility with a third-party
manufacturer in South Korea and other potential contract manufacturing options, and its planned joint venture in China, FF and its suppliers
and manufacturing partners are or will be subject to complex environmental, manufacturing, health and safety laws and regulations at numerous
jurisdictional levels in the U.S., South Korea and other locations where they may expand operations, including laws relating to the use,
handling, storage, recycling, disposal and human exposure to hazardous materials and relating to the construction, expansion and maintenance
of their facilities. Evolving disclosure rules on environmental matters may also entail additional compliance and reporting costs, including,
for instance, the new climate change reporting rules recently adopted by the SEC.
35
The
costs of compliance, including remediating contamination if any is found on FF or its manufacturing partner's properties, and any
changes to their operations mandated by new or amended laws, may be significant. FF and/or its suppliers and manufacturing partners may
be required to incur additional costs to comply with any changes to such regulations, and any failures to comply could result in significant
expenses, delays or fines. FF and its suppliers and manufacturing partners will be subject to laws, regulations and standards applicable
to the supply, manufacture, import, sale and service of automobiles in different jurisdictions and relating to vehicle safety, fuel economy
and emissions, among other things, in different jurisdictions which often may be materially different from each other. As a result, FF
and/or its suppliers and manufacturing partners may need to make additional investments in the applicable vehicles and systems to ensure
regulatory compliance.
Additionally,
there is a variety of international, federal and state regulations that may apply to autonomous vehicles, which include many existing
vehicle standards that were not originally intended to apply to vehicles that may not have a driver. For example, there are currently
no federal U.S. regulations pertaining to the safety of autonomous vehicles; however, NHTSA has established recommended guidelines. Certain
states have legal restrictions on autonomous vehicles, and many other states are considering them. Such regulations continue to rapidly
change, which increases the likelihood of a patchwork of complex or conflicting regulations. This could result in higher costs and cash
expenditures, or may delay products or restrict self-driving features and availability, any of which could adversely affect our business,
prospects, financial condition and results of operation.
FF may be subject
to anti-corruption, anti-bribery, anti-money laundering, economic sanctions and other similar laws and regulations, and non-compliance
with such laws and regulations could subject FF to civil, criminal and administrative penalties, remedial measures and legal expenses,
all of which could adversely affect FF's business, prospects, results of operations, financial condition and reputation.
FF
is or will be subject to laws with respect to anti-corruption, anti-bribery, anti-money laundering, financial and economic sanctions and
other similar laws and regulations in various jurisdictions in which FF conducts, or in the future may conduct, activities, including
the U.S. Foreign Corrupt Practices Act ("FCPA") and other anti-corruption laws and regulations. The FCPA prohibits FF and
its officers, directors, employees and business partners acting on its behalf, including agents, from offering, promising, authorizing
or providing anything of value to a "foreign official" for the purposes of influencing official decisions or obtaining or
retaining business or otherwise obtaining favorable treatment. The FCPA also requires companies to make and keep books, records and accounts
that accurately reflect transactions and dispositions of assets and to maintain a system of adequate internal accounting controls. A violation
of these laws or regulations could adversely affect FF's business, prospects, results of operations, financial condition and reputation.
FF's
policies and procedures designed to ensure compliance with these regulations may not be sufficient, and its directors, officers, employees,
representatives, consultants, agents, and business partners could engage in improper conduct for which FF may be held responsible. Non-compliance
with anti-corruption, anti-bribery, anti-money laundering or financial and economic sanctions laws could subject FF to adverse media coverage,
investigations, and severe administrative, civil and criminal sanctions, collateral consequences, remedial measures and legal expenses,
all of which could materially and adversely affect FF's business, prospects, results of operations, financial condition and reputation.
Increases in costs,
disruption of supply or shortage of materials used to manufacture FF's vehicles, in particular for lithium-ion cells or electronic
components, could harm its business.
FF
incurs significant costs related to procuring components and raw materials required to manufacture its vehicles. FF may experience cost
increases, supply disruption and/or shortages relating to components and raw materials, which could materially and adversely impact its
business, prospects, financial condition and operating results. FF uses various components and raw materials in its business, such as
steel, aluminum, and lithium battery cells. The prices for these materials fluctuate, and their available supply may be unstable, depending
on market conditions and global demand for these materials, including as a result of increased production of electric vehicles by FF's
competitors, as well as unforeseeable events such as the COVID-19 pandemic.
36
For
instance, FF is exposed to multiple risks relating to lithium battery cells or electronic components, including but not limited to: (i) an
increase in the cost, or decrease in the available supply, of materials used in the battery cells, such as lithium, nickel, cobalt and
manganese; (ii) disruption in the supply of battery cells or electronic components due to quality issues or recalls by battery cell
or electronic component manufacturers; and (iii) the inability or unwillingness of FF's current battery cell or electronic
component manufacturers to build or operate battery cell or electronic components manufacturing plants to supply the numbers of lithium
cells or electronic components required to support the growth of the electric vehicle industry as demand for such battery cells or electronic
components increases.
FF's
business is dependent on the continued supply of battery cells for the battery packs used in its vehicles and other electronic components.
While FF believes several sources of the battery cells are available for such battery packs, it has to date fully qualified only one supplier
for the battery cells used in such battery packs and has very limited flexibility in changing battery cell suppliers. Any disruption in
the supply of battery cells or electronic components from such suppliers could disrupt production of FF's vehicles until such time
as a different supplier is fully qualified. There can be no assurance that FF would be able to successfully retain alternative suppliers
on a timely basis, on acceptable terms or at all.
Furthermore,
tariffs or shortages in petroleum and other economic conditions may result in significant increases in freight charges and material costs.
In addition, a growth in popularity of electric vehicles without a significant expansion in battery cell production capacity could result
in shortages which would result in increased materials costs to FF thereby negatively impacting its business, prospects, financial condition
and results of operations. Substantial increases in the prices for FF's raw materials or components would increase its operating
costs, and could reduce margins if FF cannot recoup the increased costs through increased vehicle prices. Any attempts to increase product
prices in response to increased material costs could result in a decrease in sales and therefore materially and adversely affect FF's
brand, business, prospects, financial condition and operating results.
FF may be subject
to risks associated with autonomous driving technology.
The
FF 91 series is designed with autonomous driving functionalities and FF plans to continue its R&D efforts in autonomous driving technology.
However, such functionality is relatively new and poses risks, such as from defective software performance or unauthorized access or security
attacks by other persons. The safety of such technologies also depends in part on user interaction, and users may not be accustomed to
using such technologies. Such failures could lead to accidents, injury and death. For example, there have already been fatal accidents
caused by autonomous driving vehicles developed by other leading market players. Any accidents involving self-driving vehicles —
even if involving those of FF's competitors — may result in lawsuits, liability and negative publicity and increase calls
for more restrictive laws and regulations governing self-driving vehicles or to keep in place laws and regulations in locations that do
not permit drivers to employ the self-driving functionality. Any of the foregoing could materially and adversely affect FF's business,
results of operations, financial condition, reputation and prospects.
Autonomous
driving technology is also subject to considerable regulatory uncertainty as the law evolves to catch up with the rapidly evolving nature
of the technology itself, all of which are beyond FF's control. Also see "
FF and its manufacturing partners may be subject
to increased environmental and safety or other regulations and disclosure rules resulting in higher costs, cash expenditures, and/or sales
restrictions
."
Developments in
new energy technology or improvements in the fuel economy of internal combustion engines or significant reduction in gas prices may materially
and adversely affect FF's business, prospects, financial condition and results of operation.
Significant
developments in alternative technologies, such as advanced diesel, ethanol, or compressed natural gas or improvements in the fuel economy
of the internal combustion engine or significant reduction in gas prices may materially and adversely affect FF's business, prospects,
financial condition and results of operation. Other fuels or sources of energy, such as hydrogen fuel cells, may emerge as customers'
preferred alternative to battery electric vehicles. FF is currently a pure battery electric vehicle company. Any failure by FF to develop
new or enhanced technologies or processes, or to react to changes in existing technologies or consumer preferences, could result in the
loss of competitiveness of FF's vehicles, decreased revenue and a loss of market share to competitors.
37
FF's vehicles
will make use of lithium-ion battery cells, which have been observed to catch fire or vent smoke and flame.
FF's
vehicles will make use of lithium-ion battery cells, which have been reported that on rare occasions, can rapidly release the energy they
store by venting smoke and flames in a manner that can ignite nearby materials as well as other lithium-ion cells. While the FF battery
pack has been designed with the management system and thermal event alarming system which should actively and continuously monitor each
cell voltage and also the battery pack temperature and pressure condition to prevent such incidents, a field or testing failure of our
vehicles or battery packs could occur, which could subject FF to product liability claims, product recalls, or redesign efforts, and lead
to negative publicity. Moreover, any failure of a competitor's electric vehicle or energy storage product may cause indirect adverse
publicity for FF and FF's products.
In
addition, FF will need to store a significant number of lithium-ion cells at its facilities. Any mishandling of battery packs may cause
disruption to business operations and cause damage and injuries.
FF may not be able
to guarantee customers access to efficient, economical and comprehensive charging solutions.
FF
has not built any commercial charging infrastructure, and FF's customers will have to rely on private and publicly accessible charging
infrastructure, which is generally considered to be insufficient, especially in China. FF may not have competitive advantages in terms
of proprietary charging infrastructure or holistic charging solutions. Some competitors may provide charging services via self-owned charging
infrastructure, battery swapping and charging vehicles, which FF may not be able to deliver.
The
charging services FF may provide could fail to meet the expectations and demands of FF's customers, who may lose confidence in FF
and its vehicles. This may also deter potential customers from purchasing FF's vehicles. In addition, even if FF has the ability
and plan to build its own charging infrastructure, it may not be cost-effective and FF may face difficulties in finding proper locations
and obtaining relevant government permits and approvals. To the extent FF is unable to meet its customers' expectations or demand,
or faces difficulties in developing efficient, economical and comprehensive charging solutions, FF's reputation, business, financial
condition and results of operations may be materially and adversely affected.
FF will face risks
associated with international operations, including possible unfavorable regulatory, political, currency, tax and labor conditions, which
could harm its business, prospects, financial condition and results of operations.
FF
has a global footprint with domestic and international operations and subsidiaries. Accordingly, FF is subject to a variety of legal,
political and regulatory requirements and social, environmental and economic conditions over which FF has little control. For example,
FF may be impacted by trade policies, environmental conditions, political uncertainty and economic cycles involving the U.S. and China,
which are inherently unpredictable. FF is subject to a number of risks particularly associated with international business activities
that may increase FF's costs, impact its ability to sell vehicles and require significant management attention. These risks include
conforming FF's vehicles to various international regulatory and safety requirements as well as charging and other electric infrastructures,
organizing local operating entities, difficulty in establishing, staffing and managing foreign operations, challenges in attracting customers,
hedging against foreign exchange risk, compliance with foreign labor laws and restrictions, and foreign government taxes, regulations
and permit requirements, FF's ability to enforce its contractual rights, trade restrictions, customs regulations, tariffs and price
or exchange controls, and preferences of foreign nations for domestically manufactured products. If FF does not sufficiently address any
of these challenges, its business, prospects, financial condition and results of operations may be materially and adversely affected.
FF might not obtain
and maintain sufficient insurance coverage, which could expose FF to significant costs and business disruption.
To
the extent FF commercializes its vehicles, FF may only obtain and maintain a limited liability insurance coverage for its products and
business operations. A successful liability claim against FF due to injuries suffered by the users of its vehicles or services could materially
and adversely affect FF's business, prospects, financial condition, results of operations and reputation. In addition, FF does not
have any business disruption insurance. Any business disruption event could result in substantial cost and diversion of resources.
38
Government financial
support, incentives and policies for electric vehicles are subject to change. Discontinuation of any of the government subsidies or imposition
of any additional taxes or surcharges could adversely affect FF's business, prospects, financial condition and results of operations.
Government
financial support and subsidies are critical to electric vehicle sales and changing consumer behaviors. Any reduction, discontinuation,
elimination or discriminatory application of government financial support, subsidies and economic incentives because of policy changes,
fiscal tightening, or the perceived success of electric vehicles or other reasons may result in the diminished competitiveness of the
electric vehicle industry generally or FF's electric vehicles in particular. Competitors who have already rolled out their electric
vehicles before the phase-out or discontinuation of these incentives may be able to expand their customer base more effectively, which
could place FF at a competitive disadvantage. While certain tax credits and other incentives for alternative energy production, alternative
fuel and electric vehicles have been available in the past, there is no guarantee that these programs will be available in the future.
If current tax incentives or saleable electric vehicle emissions credits are not available in the future, or if additional taxes or surcharges
are imposed, FF's business, prospects, financial condition and results of operations could be harmed.
FF may engage in
direct-to-consumer leasing or financing arrangements in the future which will expose FF to credit, compliance and residual value risks,
the failure of which to manage may materially harm FF's business, prospects, financial condition and results of operation.
FF
expects the availability of financing or leasing programs to be important for its potential customers and may offer financing or leasing
arrangements for its vehicles or collaborate with third parties to provide such arrangements in the future. However, FF may not be able
to obtain adequate funding for its future financing or leasing programs or offer terms acceptable to potential customers. If FF is unable
to provide compelling financing or leasing arrangements for its vehicles, it may be unable to grow the vehicle orders and deliveries,
which could materially and adversely harm FF's business, prospects, financial condition and results of operations.
Additionally,
if FF does not successfully monitor and comply with applicable national, state, and/or local consumer protection laws and regulations
governing these transactions, FF may become subject to enforcement actions or penalties, either of which may harm its business and reputation.
Moreover,
offering leasing or financing arrangements will expose FF to risks commonly associated with the extension of credit. Credit risk is the
potential loss that may arise from any failure in the ability or willingness of the customer to fulfill its contractual obligations when
they fall due. In the event of a widespread economic downturn or other catastrophic event, FF's customers may be unable or unwilling
to satisfy their payment obligations on a timely basis or at all. Moreover, competitive pressure and challenging markets may increase
credit risk through loans and leases to financially weak customers and extended payment terms. If a significant number of FF's customers
default, FF may incur credit losses and/or have to recognize impairment charges with respect to the underlying assets, which may be substantial.
Any such credit losses and/or impairment charges could adversely affect FF's business, prospects, operating results or financial
condition.
Further,
in lease arrangements, the profitability of any vehicles returned to FF at the end of their leases depends on FF's ability to accurately
project such vehicles' residual values at the outset of the leases, and such values may fluctuate prior to the end of their terms
depending on various factors such as supply and demand of FF's used vehicles, economic cycles, and the pricing of new vehicles.
FF may incur substantial losses if its vehicles' fair market value deteriorates faster than projected.
Yueting Jia, FF's
founder and Chief Product and User Ecosystem Officer, is closely associated with FF's image and brand, and his public image may
color public and market perceptions of FF. Negative information about Mr. Jia may adversely impact FF. Disassociating from Mr. Jia could
also adversely impact FF.
Because
of his position as the founder of FF and his continuing role with FF as Chief Product and User Ecosystem Officer, as Founder Advisor to
the Board (effective as of October 4, 2022), and, as of February 26, 2023, a Section 16 officer and an "executive officer"
of FF under Rule 3b-7 of the Exchange Act, Mr. Jia is closely associated with the image and brand of FF. As a result, his activities,
media coverage about his activities and those of his affiliates and public and market perception of him and his role within FF all contribute
to public and market perception of FF, which in turn impacts, among other things, FF's ability to conduct business, FF's relationships
with its management and employees, FF's ability to raise financing and FF's relationships with government and regulatory officials.
39
In
the past, Mr. Jia's activities have resulted in him being subject to discipline by FF. He has also been the subject of regulatory
and legal scrutiny for his conduct at FF and in connection with his other business ventures. The following events and activities, among
others, and any future similar events and activities could generate negative perceptions about Mr. Jia and, by extension, FF:
●
Mr. Jia was disciplined as part of the Special Committee investigation. See "Note 10, Commitments
and Contingencies, in the Notes to the Consolidated Financial Statements for more information regarding the findings and remedial actions
relating to the Special Committee investigation.
●
Mr. Jia personally declared Chapter 11 bankruptcy in 2019; the U.S. bankruptcy court approved a restructuring
plan in this proceeding in 2020.
●
The Shenzhen Stock Exchange ("SSE") determined in 2019 that Mr. Jia was unsuitable for a position
as director, supervisor or executive officer of public listed companies in China. This action came as a result of the violation by Leshi
Information Technology Co., Ltd. ("LeTV"), an SSE-listed public company founded and controlled by Mr. Jia, of several listing
rules, including those related to related party transactions, discrepancies in LeTV's forecast and financials, and the use of proceeds
from a public offering.
●
The China Securities Regulatory Commission notified Mr. Jia in 2021 of its decision to impose fines and
a permanent ban from entry into the securities market as a result of misrepresentations in LeTV's disclosure and financial statements,
fraud in connection with a private placement, and other violations of securities laws and listing requirements.
Although
FF is subject to risks from its ongoing association with Mr. Jia, if Mr. Jia ceased to be associated with FF, this also could adversely
impact FF's business, operations, brand, management and employee relations, and customer relationships, as well as FF's ability
to develop business in China. Customers, employees and investors could conclude that because of Mr. Jia's long relationship with
and involvement in FF's business, and the substantial contributions he has made to FF's strategy, products and competitive
positioning, a loss of Mr. Jia's involvement could significantly harm FF's business and prospects.
Yueting Jia is
subject to restrictions in China that may continue if not all creditors participating in his personal bankruptcy restructuring plan request
his removal from such restrictions. These restrictions may adversely impact FF's China strategy.
As
a condition to receiving distributions from the trust established as part of Mr. Jia's personal bankruptcy restructuring plan, Mr.
Jia's creditors are required to request his removal from a Chinese official list of dishonest judgment debtors and the lifting of
any consumption or travel restrictions that are currently imposed on him. This process has not been completed and Mr. Jia remains subject
to restrictions that prevent him from working for FF in China. Continuance of these restrictions would adversely impact FF because of
our reliance on him to develop our business in China, which is a crucial part of our growth strategy.
Yueting Jia and
FF Global, over which Mr. Jia exercises significant influence, have control over FF's management, business and operations, and may
use this control in ways that are not aligned with FF's business or financial objectives or strategies or that are otherwise inconsistent
with the FF's interests.
Mr.
Yueting Jia founded FF in 2014, and was its Chief Executive Officer from 2017 until 2019. He chose and led the team creating the FF 91
series, and is our current Chief Product & User Ecosystem Officer, Mr. Jia continues to be an integral part of the innovation and
development of our products. In addition, under the Heads of Agreement, FF agreed to reinstitute the FF Transformation Committee, a management
committee without decision-making authority (of which Mr. Jia is a member and Mr. Jerry Wang is initially an observer as a representative
of FF Global) that discusses business matters being undertaken by FF. Effective as of October 4, 2022, Mr. Jia was also appointed as Founder
Advisor, in which capacity he acts as an advisor to the Board (with no change to his current compensation). On February 26, 2023, after
an assessment by the Board of FF's management structure, the Board approved Mr. Jia (alongside FF's then Global CEO, Mr. Xuefeng
Chen) reporting directly to the Board, as well as FF's product, mobility ecosystem, I.A.I., and advanced R&D technology departments
reporting directly to Mr. Jia. The Board also approved FF's user ecosystem, capital markets, human resources and administration,
corporate strategy and China departments reporting to both Mr. Jia and Mr. Xuefeng Chen, subject to processes and controls to be determined
by the Board after consultation with FF's management. FF's remaining departments continue to report to Mr. Xuefeng Chen. Based
on the changes to his responsibilities within FF, the Board determined that Mr. Jia is a Section 16 officer and an "executive officer"
of FF under Rule 3b-7 under the Exchange Act. As a result, Mr. Jia's responsibilities at FF have been expanded and his ability to
further influence FF, its management, business and operations has been increased.
40
FF
Global is controlled by a board of five voting managers that includes Mr. Jia and certain business associates and a family member, which
at times have included directors and senior executives of FF. Despite the participation of some members of our executive management in
the management of FF Global, FF Global is not under the control of our Board.
FF
Global, in turn, has control over FF's management, business and operations by several means, including:
●
FF Global has substantial influence over the composition of our Board (in addition to FF Global's
director nomination rights under the Shareholder Agreement described below). Additionally, pursuant to the Amended Shareholder Agreement,
FF Top informed the Company that it may request the Company to submit a proposal to the Company stockholders for approval to amend the
Amended and Restated Charter to provide that (i) the voting power of the Class B Common Stock, of which FF Global owns all outstanding
shares, will be 10 votes per share and (ii) the voting power of the Class B Common Stock will increase from 10 votes per share to 20 votes
per share following the Company achieving an equity market capitalization of $3.0 billion.
●
Control of the Partnership Program described in certain Company's annual report on Form 10-K (as
amended, the "2023 Form 10-K") under "Business – Partnership Program." Acting through FF Global, in
July 2019 certain current and former directors and executives of the Company established an arrangement which they refer to as the "Partnership
Program." The Partnership Program provides financial benefits to certain Company directors, management and employees. The Partnership
Program is administered by FF Global and is not under the Company's supervision, and as a consequence the Company cannot be sure
that it has all information about the Partnership Program that would be necessary to evaluate or mitigate its impact on FF's ability
to set and ensure the execution of FF's business objectives and strategies.
●
the exercise of rights to appoint and remove directors.
As previously
disclosed, beginning in June 2022, FF was party to a dispute with FF Global over various terms of the Shareholder Agreement (as then in
effect), including relating to FF Global's right to remove its designees from the Board. On September 23, 2022, FF entered into
the Heads of Agreement, which provided for a governance settlement with FF Top that gave FF Global significant influence over the nomination
and election of directors to the Board.
On January 13, 2023, FF entered into the Amended Shareholder
Agreement, which in part amended the Heads of Agreement.
Under
the Heads of Agreement, as amended by the Amended Shareholder Agreement, FF Global (through its subsidiary FF Top) had the right to select
four directors (at least two of whom must be independent directors) out of a total of seven directors to be included on the Board's
slate for the Company's 2023 annual meeting of stockholders. The four directors selected by FF Global are Mr. Chad Chen, Ms. Li
Han, Mr. Chui Tin Mok and Mr. Jie Sheng.
41
Pursuant
to the Amended Shareholder Agreement, FF Top currently has the right to nominate for election to the Board four designees until the first
date on which FF Top has ceased to beneficially own at least 88,890 shares of Common Stock for at least 365 consecutive days, with such
amount subject to adjustment in connection with any stock split, reverse stock split or other similar corporate action after the date
of the Amended Shareholder Agreement. Following the termination of FF Top's right to nominate four designees, FF Top will continue
to have the right to nominate a number of designees not less than the number equal to the total number of directors on the Board, multiplied
by the aggregate voting power of the shares of Common Stock and other securities of FF generally entitled to vote in the election of
directors of FF beneficially owned by FF Top and its affiliates, divided by the total voting power of the then-outstanding shares of
Common Stock issued as of the record date for any meeting of stockholders of FF at which directors are to be elected, rounding up to
the next whole director. The Amended Shareholder Agreement also requires FF to take all Necessary Action (as defined in the Amended Shareholder
Agreement) to cause to be appointed to any committee of the Board a number of FF Top designees that corresponds to the proportion that
the number of directors FF Top has the right to designate to the Board bears to the total number of directors on the Board, to the extent
such designees of FF Top are permitted to serve on such committees under the applicable rules and regulations of the SEC and applicable
listing rules. The designees of FF Top are required to include two independent directors for so long as FF Top is entitled to nominate
four designees, and FF is at all times required to cause the Board to include a sufficient number of independent directors who are not
designees of FF Top to comply with applicable listing standards, unless and until FF becomes a "controlled company" under
relevant listing exchange rules. FF Top has the /right to fill any vacancies created on the Board at any time by the death, disability,
retirement, removal, failure of being elected or resignation of any designee of FF Top. Further, FF Top has the right at any time, and
from time to time, to remove any designee of FF Top, and FF Top has the exclusive right to nominate a replacement nominee to fill any
vacancy so created by such removal or resignation of such designee of FF Top. FF will use its reasonable best efforts to take or cause
to be taken, to the fullest extent permitted by law, all necessary action to fill such vacancies or effect such removals in accordance
with the Amended Shareholder Agreement. The appointment or nomination for election of designees of FF Top (other than FF Top's
designees for the Company's 2023 annual meeting of stockholders, the appointment of whom was governed by the Heads of Agreement,
as amended by the Amended Shareholder Agreement) will be subject to the reasonable verification and/or approval by the Nominating and
Corporate Governance Committee of the Board based on the criteria set forth in the Amended Shareholder Agreement. If any designee of
FF Top fails to be elected at any meeting of FF's stockholders, then, upon FF Top's request in writing, FF will promptly
expand the size of the Board by a number of seats equal to the number of non-elected designees of FF Top, and FF Top will have the exclusive
right to fill the vacancy or vacancies on the Board created by such expansion (provided the individual or individuals who will fill such
vacancy or vacancies will not be the same designees of FF Top who failed to get elected, without prejudice to FF Top's right to
re-designate the non-elected designees as designees of FF Top in any other circumstance), and such new designees of FF Top will be appointed
to the Board by the Board promptly following their having been approved or deemed approved in accordance with the relevant criteria and
procedures set forth in the Amended Shareholder Agreement. Immediately prior to (and effective as of) the first meeting of stockholders
following such expansion of the Board, the Board will cause the size of the Board to be decreased back to seven.
As
a result of the foregoing, FF Global has significant influence over the composition of the Board and, as a result, Mr. Jia and FF Global
have strengthened their already significant influence over FF.
Given
that Mr. Jia was disciplined by FF in connection with the Special Committee investigation, and in light of the regulatory sanctions he
has faced in China (as described above under "
Yueting Jia, FF's founder and Chief Product and User Ecosystem Officer,
is closely associated with FF's image and brand, and his public image may color public and market perceptions of FF. Negative information
about Mr. Jia may adversely impact FF. Disassociating from Mr. Jia could also adversely impact FF
"
)
, the fact that the
Board has determined that Mr. Jia is a Section 16 officer and as an "executive officer" of FF under Rule 3b-7 of the Exchange
Act, which both could imply that Mr. Jia has policy-making authority in FF, could adversely affect the outcome of the pending SEC and
DOJ investigations of FF in connection with the matters that were the subject of the Special Committee investigation. Moreover, as a
result of Mr. Jia's regulatory sanctions in China, the Board's determination that Mr. Jia is both a Section 16 officer and
an executive officer of FF could result in the delisting of FF's securities by Nasdaq, which would adversely impact our ongoing
financing efforts, business and financial position and materially impair the market for and market price of our Class A Common Stock
and warrants. If our securities are delisted by Nasdaq, we are unlikely to be able to raise sufficient additional funds in the near term,
and as a result may be required to further delay our production and delivery plans for the FF 91, reduce headcount, liquidate our assets,
file for bankruptcy, reorganize, merge with another entity, and/or cease operations. In determining that Mr. Jia is a Section 16
officer and as an "executive officer" of FF under Rule 3b-7 of the Exchange Act, the Board considered the value of Mr. Jia
to FF's product and technology innovation, I.A.I., advanced technology, product and technology power and future development and
his significant contributions to FF's financings.
42
Mr.
Jia maintains that the litigation previously initiated by FF Global for purposes of changing the Board and management of FF, which has
since been dismissed without prejudice pursuant to the Heads of Agreement, was a collective decision made by FF Global and was not Mr.
Jia's decision. See Note 10,
Commitments and Contingencies – Legal Proceedings,
in the Notes to the Consolidated
Financial Statements
.
Our interests may not coincide with the interests of Mr. Jia or FF Global in all circumstances. For
example, our Board may prioritize business or financial objectives or strategies that Mr. Jia or FF Global disagree with or that Mr.
Jia or FF Global consider not to be in their interest. In such a case, Mr. Jia or FF Global could use their significant influence over
FF's stockholders and potential investors, FF's management, business and operations to advance the interests of Mr. Jia or
FF Global notwithstanding any adverse impact on FF's interests.
Disputes
with FF's stockholders are costly and distracting.
We
have in the past been, and may in the future be, party to various disputes with our stockholders. For example, beginning in June 2022
FF and FF Global were party to a dispute over various terms of the Shareholder Agreement (as then in effect), including relating to FF
Global's right to remove its designees from the Board. As part of this dispute, on June 22, 2022, Matthias Aydt, FF's current
Global CEO and director and then a member of the board of managers of FF Global, after a discussion with a member of FF Global, relayed
to Mr. Brian Krolicki, a former member of the Board, that FF Global would pay Mr. Krolicki up to $700,000, offset by the amount of any
severance payments made by FF, if Mr. Krolicki resigned from the Board. This offer was rejected by Mr. Krolicki.
While
FF entered into governance settlements with FF Top on September 23, 2022 and on January 13, 2023, which included general mutual releases
of claims, there can be no assurance that disputes with FF Global or FF's other stockholders will not arise in the future. For
instance, shortly following the execution of the Heads of Agreement, FF Global began making additional demands of FF which were beyond
the scope of the terms contemplated by the Heads of Agreement and pertained to, among other things, FF's management reporting lines
and certain governance matters. On September 30, 2022, FF Global alleged that FF was in material breach of the spirit of the Heads of
Agreement. FF believes it has complied with the applicable terms of the Heads of Agreement, and disputes any characterization to the
contrary. Such dispute could result in litigation, may consume substantial amounts of Board and management time, make it difficult for
the Board to operate in a constructive and collegial manner and are likely to be costly to FF. In addition, the diversion of management
and Board attention caused by such disputes may risk the successful completion of FF's ongoing financing efforts. If we are unable
to raise sufficient additional funds in the near term, we may be required to further delay our production and delivery plans for the
FF 91 Futurist, reduce headcount, liquidate our assets, file for bankruptcy, reorganize, merge with another entity, and/or cease operations.
FF
is subject to legal proceedings, claims, and disputes arising both in and outside the ordinary course of business.
FF
has been, continues to be, and may in the future be involved in legal proceedings and claims arising both in and outside the ordinary
course of FF's business. We could also be subject to claims and litigation by investors based on the decline of the price of our
Common Stock. For example, FF has been involved in litigation with contractors and suppliers over past due payments and FF's subsidiaries
in the People's Republic of China (the "PRC Subsidiaries") are involved in multiple proceedings or disputes involving
lease contracts, third-party suppliers or vendors, or labor disputes. Additionally, FF has in the past been, and may in the future be,
party to various disputes with our stockholders, such as the dispute with FF Global, the California Federal Derivative Action, the Delaware
Federal Derivative Actions, the Consolidated Delaware Class Action, and a putative class action (each as defined in Note 10,
Commitments
and Contingencies
), in the Notes to the Consolidated Financial Statements. See Note 10,
Commitments and Contingencies
",
in the Notes to the Consolidated Financial Statements and "Part I, Item 13 Legal Proceedings" for more information regarding
the current legal proceedings FF is involved in.
Such
litigation and other legal proceedings or disputes are inherently uncertain, divert managements time and attention, and are costly. Any
adverse judgments or settlements in some of these legal disputes, or future proceedings or disputes, may result in adverse monetary damages,
penalties or injunctive relief against FF, which could negatively impact its financial position, cash flows or results of operations.
Additionally, if one or more of those legal matters were resolved against FF in a reporting period for amounts above management's
expectations, FF's business prospects, financial condition and operating results could be materially adversely affected. Further,
any claims or litigation, regardless of outcome or if fully indemnified or insured, could damage FF's reputation and make it more
difficult to compete effectively or to obtain adequate insurance in the future.
43
Furthermore,
while FF maintains insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities
and is subject to various exclusions as well as retentions and caps on amounts recoverable. Even if FF believes a claim is covered by
insurance, insurers may dispute its entitlement to recovery for a variety of potential reasons, which may affect the timing and, if the
insurers prevail, the amount of FF's recovery.
Risks
Related to FF's Operations in China
FF
operates in China, and plans to have significant operations in the future in China (including Hong Kong) through the PRC Subsidiaries,
and faces various legal and operational risks associated with doing business in China, which could result in a material change in the
operations of the PRC Subsidiaries, cause the value of FF's securities to significantly decline or become worthless, and significantly
limit or completely hinder FF's ability to accept foreign investments, and FF's ability to offer or continue to offer our
shares of Class A Common Stock and warrants to investors. FF also faces similar risks related to its expansion plans in Hong Kong, which
is subject to political and economic influence from China. These risks include:
Changes
in the political and economic policies of the PRC government may materially and adversely affect FF's business, financial condition
and results of operations and may result in FF's inability to sustain its growth and expansion strategies.
As
part of FF's dual-market strategy, substantial aspects of its business and operations may be based in China in the future, which
will increase FF's sensitivity to the economic, operational and legal risks specific to China. For example, China's economy
differs from the economies of most developed countries in many aspects, including, but not limited to, the degree of government involvement,
control of capital investment, reinvestment control of foreign exchange, control of intellectual property, allocation of resources, growth
rate and development level. Although the PRC government has implemented measures since the late 1970s emphasizing the utilization of
market forces for economic reform, including the reduction of state ownership of productive assets, and the establishment of improved
corporate governance in business enterprises, which are generally viewed as a positive development for foreign business investment, a
substantial portion of productive assets in China is still owned by the PRC government. In addition, the PRC government continues to
play a significant role in regulating industry development by imposing industrial policies. The PRC government also exercises significant
control over the PRC economic growth through allocating resources, controlling payments of foreign currency-denominated obligations,
setting monetary policy, and providing preferential treatment to particular industries or companies.
While
China's economy has experienced significant growth over the past decades, growth has been uneven, both geographically and among
various sectors of the economy, and the rate of growth has been slowing down. Some of the governmental measures may benefit the overall
Chinese economy, but may have a negative effect on us. For example, our financial condition and results of operations may be adversely
affected by government control over capital investments or changes in tax regulations. Higher inflation could adversely affect our results
of operations and financial condition. Furthermore, certain operating costs and expenses, such as employee compensation and office operating
expenses, may increase as a result of higher inflation. In addition, the PRC government has implemented in the past certain measures
to control the pace of economic growth. These measures may cause decreased economic activity, which in turn could lead to a reduction
in demand for our products and services, and consequently have a material adverse effect on our businesses, financial condition and results
of operations.
It
is unclear whether and how FF's current or future business, prospects, financial condition or results of operations may be affected
by changes in China's economic, political and social conditions and in its laws, regulations and policies. In addition, many of
the economic reforms carried out by the Chinese government are unprecedented or experimental and are expected to be refined and improved
over time. The ultimate effect of such refining and improving process may on FF's operations and business development is uncertain.
44
Uncertainties
with respect to the Chinese legal system, regulations and enforcement policies could have a material adverse effect on FF.
FF's
operations in China are governed by PRC laws and regulations. As the PRC legal system continues to rapidly evolve, the interpretations
of many laws, regulations and rules and enforcement of these laws, regulations and rules may involve uncertainties. In addition, the
PRC government authorities may continue to promulgate new laws and regulations related to, among other things, foreign investment and
manufacturing in China. We cannot assure you that our business operations would not be deemed to violate any existing or future PRC laws
or regulations, which in turn could have a material adverse effect on our business and our ability to operate our business in China.
From
time to time, the PRC Subsidiaries may have to resort to administrative and court proceedings to enforce our legal rights. However, since
PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms,
it may be difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy. Furthermore,
the PRC legal system is based in part on government policies and internal rules (some of which are not published in a timely manner or
at all) that may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime
after the violation. Such uncertainties, including uncertainty over the scope and effect of our contractual, property (including intellectual
property) and procedural rights, and any failure to respond to changes in the regulatory environment in China could materially and adversely
affect our business, impede the PRC Subsidiaries' operations and reduce the value of your investment in FF.
Recently,
the General Office of the State Council and another PRC authority jointly issued the "Opinions on Severely Cracking Down on Illegal
Securities Activities According to Law" (the "Opinions"), which was promulgated on July 6, 2021. The Opinions emphasized
the need to strengthen the administration over illegal securities activities, the need to strengthen the supervision over overseas listings
by PRC-based companies and the need to revise the special provisions of the State Council on overseas issuance and listing of shares
by those companies. Effective measures, such as promoting the construction of relevant regulatory systems will be taken to deal with
the risks and incidents of PRC-based companies, and cybersecurity, data security, privacy protection requirements and similar matters.
On February 17, 2023, the China Securities Regulatory Commission (the "CSRC") promulgated the Trial Administrative Measures
of the Overseas Securities Offering and Listing by Domestic companies (the "Overseas Listing Trial Measures") and relevant
five guidelines, which became effective on March 31, 2023. The Overseas Listing Trial Measures will comprehensively reform the existing
regulatory regime for overseas securities offering and listing of PRC domestic companies by adopting a filing-based regulatory regime.
See "
The approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental authorities may
be required in connection with certain of our financing activities, and, if required, we cannot predict if we will be able to obtain
such approval or complete such filing or other administrative procedures
" for more details.
Furthermore,
the PRC government may strengthen oversight and control over offerings conducted overseas and/or foreign investment in issuers with substantial
operations in China. Such actions taken by the PRC government may intervene or influence the PRC Subsidiaries' operations at any
time, which are beyond our control. Therefore, any such action may adversely affect our operations and significantly limit or hinder
our ability to raise additional capital and reduce the value of our securities.
Uncertainties
regarding the enforcement of laws and the fact that rules and regulations in China can change quickly with little advance notice, along
with the risk that the Chinese government may intervene or influence the PRC Subsidiaries' operations at any time, or may exert
more control over offerings conducted overseas and/or foreign investment in issuers with substantial operations in China could result
in a material change in our operations or financial performance and/or could result in a material reduction in the value of our Class
A Common Stock and warrants or hinder our ability to raise necessary capital.
45
Fluctuations
in exchange rates could result in foreign currency exchange losses to FF and may reduce the value of, and amount in U.S. Dollars of dividends
payable on, its Common Stock in foreign currency terms.
The
value of the CNY against the U.S. Dollar and other currencies may fluctuate and is affected by, among other things, changes in political
and economic conditions and the foreign exchange policy adopted by the PRC government. In August 2015, the People's Bank of China
(the "PBOC"), changed the way it calculates the mid-point price of the CNY against the U.S. Dollar, requiring the market-makers
who submit for reference rates to consider the previous day's closing spot rate, foreign-exchange demand and supply as well as
changes in major currency rates. In 2018, the value of CNY appreciated by approximately 5.5% against the U.S. Dollar; in 2019, the CNY
appreciated by approximately 1.9% against the U.S. Dollar; in 2020, the CNY appreciated 7.0% against the U.S. Dollar; in 2021, the CNY
appreciated 2.7% against the U.S. Dollar; in 2022, the CNY appreciated 8.5% against the U.S. Dollar; and in 2023, the CNY appreciated
2.6% against the U.S. Dollar. It is difficult to predict how market forces or PRC or U.S. government policy, including any interest rate
increases by the Federal Reserve, may impact the exchange rate between the CNY and the U.S. Dollar in the future. There remains significant
international pressure on the PRC government to adopt a more flexible currency policy, including from the U.S. government, which has
threatened to label China as a "currency manipulator," which could result in greater fluctuation of the CNY against the U.S.
Dollar. However, the PRC government may still at its discretion restrict access to foreign currencies for capital account or current
account transactions in the future. Therefore, it is difficult to predict how market forces or government policies may impact the exchange
rate between the CNY and the U.S. Dollar or other currencies in the future. In addition, the PBOC regularly intervenes in the foreign
exchange market to limit fluctuations in CNY exchange rates and achieve policy goals. If the exchange rate between the CNY and U.S. Dollar
fluctuates in an unanticipated manner, our results of operations and financial condition, and the value of, and dividends payable on,
our shares in foreign currency terms may be adversely affected.
Changes
in the laws and regulations of China or noncompliance with applicable laws and regulations may have a significant impact on FF's
business, results of operations and financial condition.
FF's
operations in China are subject to the laws and regulations of China, which continue to evolve. For example, on January 9, 2021, China's
Ministry of Commerce ("MOFCOM") issued the Rules on Blocking Improper Extraterritorial Application of Foreign Legislation
and Other Measures (the "Blocking Rules"), which established a blocking regime in China to counter the impact of foreign
sanctions on Chinese persons. The Blocking Rules have become effective upon issuance, but have only established a framework of implementation,
and the rules' effects will remain unclear until the Chinese government provides clarity on the specific types of extraterritorial
measures to which the rules will apply. At this time, we do not know the extent to which the Blocking Rules will impact the operations
of the PRC Subsidiaries. There is no assurance that the PRC Subsidiaries will be able to comply fully with applicable laws and regulations
should there be any amendment to the existing regulatory regime or implementation of any new laws and regulations. In addition, the interpretations
of many laws and regulations are not always uniform and enforcement of these laws and regulations involve uncertainties.
The
continuance of the PRC Subsidiaries' operations depends upon compliance with, among other things, applicable Chinese environmental,
health, safety, labor, social security, pension and other laws and regulations. Failure to comply with such laws and regulations could
result in fines, penalties or lawsuits.
Furthermore,
our business and operations in China entail the procurement of licenses and permits from the relevant authorities. Rapidly evolving laws
and regulations and uncertainties regarding interpretations and enforcements thereof could impede the PRC Subsidiaries' ability
to obtain or maintain the required permits, licenses and certificates required to conduct our businesses in China. Difficulties or failure
in obtaining the required permits, licenses and certificates could result in the PRC Subsidiaries' inability to continue our business
in China in a manner consistent with past practice. In such an event, our business, results of operations and financial condition may
be adversely affected.
FF
is a holding company and, in the future, may rely on dividends and other distributions on equity paid by the PRC Subsidiaries to fund
any cash and financing requirements that FF may have, and the restrictions on the PRC Subsidiaries' ability to pay dividends or
make other payments to FF could restrict FF's ability to satisfy its liquidity requirements and have a material adverse effect
on FF's ability to conduct its business.
FF
is a holding company and conducts all of its business through its operating subsidiaries. FF may need to rely on dividends and other
distributions paid by its operating subsidiaries, including the PRC Subsidiaries, to fund any cash and financing requirements FF may
have. Any limitation on the ability of the PRC Subsidiaries to make payments to FF, including but not limited to foreign currencies control,
could have a material and adverse effect on FF's business, prospects, financial condition and results of operation, including FF's
ability to conduct business, or limit FF's ability to grow. Current PRC regulations permit the PRC Subsidiaries to pay dividends
to FF only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition,
the PRC Subsidiaries are required to set aside at least 10% of their accumulated profits each year, if any, to fund certain reserve funds
until the total amount set aside reaches 50% of their registered capital. The PRC Subsidiaries may also allocate a portion of their after-tax
profits based on PRC accounting standards to employee welfare and bonus funds at their discretion. These reserves are not distributable
as cash dividends. Furthermore, if the PRC Subsidiaries incur debt on their own behalf, the instruments governing the debt may restrict
their ability to pay dividends or make other payments to FF. Any limitation on the ability of the PRC Subsidiaries to distribute dividends
or to make payments to FF may restrict its ability to satisfy its liquidity requirements.
46
In
addition, the PRC Enterprise Income Tax Law (the "EIT Law"), and its implementation rules provide that a withholding tax
rate of up to 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted
or reduced according to treaties or arrangements between the PRC central government and governments of other countries or regions where
the non-PRC-resident enterprises are incorporated.
The
PRC government may continue to strengthen its capital controls, and more restrictions and substantial vetting process may be put forward
by SAFE for cross-border transactions falling under both the current account and the capital account. Any limitation on the ability of
the PRC Subsidiaries to pay dividends or make other kinds of payments to FF could materially and adversely limit FF's ability to
grow, make investments or acquisitions that could be beneficial to FF's business, pay dividends, or otherwise fund and conduct
FF's business.
Under
the EIT Law, FF may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification
would likely result in unfavorable tax consequences to FF and its non-PRC enterprise stockholders and have a material adverse effect
on FF's results of operations and the value of your investment.
Under
the EIT Law, as well as its implementing rules, an enterprise established outside the PRC with "de facto management bodies"
within the PRC is considered a "resident enterprise" for PRC enterprise income tax purposes and is generally subject to a
uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a "de facto management
body" is defined as a body that has material and overall management and control over the manufacturing and business operations,
personnel and human resources, finances and properties of an enterprise. In addition, a circular, known as SAT Circular 82, issued in
April 2009 by the State Administration of Taxation of the PRC (the "SAT"), specifies that certain offshore incorporated enterprises
controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or
resident in the PRC: senior management personnel and departments that are responsible for daily production, operation and management;
financial and personnel decision making bodies; key properties, accounting books, company seal, and minutes of board meetings and stockholders'
meetings; and half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the SAT issued a bulletin,
known as SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82 and
clarify the reporting and filing obligations of such "Chinese-controlled offshore incorporated resident enterprises." SAT
Bulletin 45 provides procedures and administrative details for the determination of resident status and administration on post-determination
matters. Although both SAT Circular 82 and SAT Bulletin 45 only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise
groups, not those controlled by PRC individuals or foreign individuals, the determining criteria set forth in SAT Circular 82 and SAT
Bulletin 45 may reflect the SAT's general position on how the "de facto management body" test should be applied in
determining the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises, PRC enterprise
groups or by PRC or foreign individuals.
We
do not believe that FF, as a holding company incorporated in Delaware, meets all of the conditions above, and thus we do not believe
that FF is a PRC resident enterprise. However, if the PRC tax authorities determine that FF is a PRC resident enterprise for PRC enterprise
income tax purposes, a number of unfavorable PRC tax consequences could follow. First, FF will be subject to the uniform 25% enterprise
income tax on our world-wide income, which could materially reduce our net income.
In
addition, FF will also be subject to PRC enterprise income tax reporting obligations. However, the tax resident status of an enterprise
is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de
facto management body."
47
Finally,
since there remains uncertainties regarding the interpretation and implementation of the EIT Law and its implementation rules, it is
uncertain whether, if FF is regarded as a PRC resident enterprise, any dividends payable by us to our investors and gains on the sale
of our Common Stock would become subject to PRC withholding tax, at a rate of 10% in the case of non-PRC enterprises (subject to the
provisions of any applicable tax treaty). It is unclear whether our non-PRC enterprise stockholders would be able to claim the benefits
of any tax treaties between their country of tax residence and the PRC in the event that FF is treated as a PRC resident enterprise.
Any such tax may reduce the returns on your investment in the Common Stock.
FF
and its stockholders face uncertainty with respect to indirect transfers of equity interests in China resident enterprises through transfer
of non-Chinese-holding companies. Enhanced scrutiny by the Chinese tax authorities may have a negative impact on potential acquisitions
and dispositions it may pursue in the future.
On
February 3, 2015, the SAT issued the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident
Enterprises, known as Bulletin 7. Pursuant to this Bulletin 7, an "indirect transfer" of assets, including non-publicly traded
equity interests in a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer
of PRC taxable assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding
payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income
tax. According to Bulletin 7, "PRC taxable assets" include assets attributed to an establishment in China, immovable properties
located in China, and equity investments in PRC resident enterprises, in respect of which gains from their transfer by a direct holder,
being a non-PRC resident enterprise, would be subject to PRC enterprise income taxes. When determining whether there is a "reasonable
commercial purpose" of the transaction arrangement, features to be taken into consideration include, without limitation: whether
the main value of the equity interest of the relevant offshore enterprise derives directly or indirectly from PRC taxable assets; whether
the assets of the relevant offshore enterprise mainly consists of direct or indirect investment in China or if its income mainly derives
from China; whether the offshore enterprise and its subsidiaries directly or indirectly holding PRC taxable assets have real commercial
nature which is evidenced by their actual function and risk exposure; the duration of existence of the stockholders, business model and
organizational structure; the income tax payable abroad on the income from the transaction of indirect transfer of PRC taxable assets;
the replicability of the transaction by direct transfer of PRC taxable assets; and the tax situation of such indirect transfer and applicable
tax treaties or similar arrangements. In respect of an indirect offshore transfer of assets of a PRC establishment, the resulting gain
is to be included with the enterprise income tax filing of the PRC establishment or place of business being transferred, and would consequently
be subject to PRC enterprise income tax at a rate of 25%. Where the underlying transfer relates to the immovable properties located in
China or to equity investments in a PRC resident enterprise, which is not related to a PRC establishment or place of business of a non-resident
enterprise, a PRC enterprise income tax of 10% would apply, subject to available preferential tax treatment under applicable tax treaties
or similar arrangements, and the party who is obligated to make the transfer payments has the withholding obligation. Bulletin 7 does
not apply to transactions of sale of shares by investors through a public stock exchange where such shares were acquired from a transaction
through a public stock exchange. On October 17, 2017, the SAT promulgated the Announcement of the SAT on Issues Concerning the Withholding
of Non-resident Enterprise Income Tax at Source, known as SAT Circular 37, which became effective on December 1, 2017 and was most recently
amended on June 15, 2018. SAT Circular 37, among other things, simplified procedures of withholding and payment of income tax levied
on non-resident enterprises.
We
face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved,
such as offshore restructuring, sale of the shares in our offshore subsidiaries or investments. Our company may be subject to filing
obligations or taxed if our company is transferor in such transactions, and may be subject to withholding obligations if our company
is transferee in such transactions under Bulletin 7 and SAT Circular 37. For transfer of shares in our company by investors that are
non-PRC resident enterprises, the PRC Subsidiaries may be requested to assist in the filing under Bulletin 7 and SAT Circular 37. As
a result, we may be required to expend valuable resources to comply with Bulletin 7 and SAT Circular 37 or to request the relevant transferors
from whom we purchase taxable assets to comply with these publications, or to establish that our company should not be taxed under these
publications, which may have a material adverse effect on our financial condition and results of operations.
48
PRC
regulation of loans to and direct investments in PRC entities by offshore holding companies may delay or prevent FF from making loans
or additional capital contributions to the PRC Subsidiaries, which could materially and adversely affect its liquidity and its ability
to fund and expand its business.
As
an offshore holding company with PRC Subsidiaries, FF may finance the operations of the PRC Subsidiaries by means of loans or capital
contributions. As permitted under PRC laws and regulations, we may make loans to the PRC Subsidiaries subject to the approval from governmental
authorities and limitation of amount, or we may make additional capital contributions to the PRC Subsidiaries. Furthermore, loans by
us to the PRC Subsidiaries to finance its activities cannot exceed the statutory limits, which is either the difference between the registered
capital and the total investment amount of such enterprise or a multiple of its net assets in the previous year. In addition, a foreign-invested
enterprise ("FIE"), will use its capital pursuant to the principle of authenticity and self-use within its business scope.
The capital of an FIE will not be used for the following purposes: (i) directly or indirectly used for payment beyond the business scope
of the enterprises or the payment prohibited by relevant laws and regulations; (ii) directly or indirectly used for investment in securities
or investments other than banks' principal-secured products unless otherwise provided by relevant laws and regulations; (iii) the
granting of loans to non-affiliated enterprises, except where it is expressly permitted in the business license; and (iv) paying the
expenses related to the purchase of real estate that is not for self-use (except for the foreign-invested real estate enterprises).
In
light of the various requirements imposed by PRC regulations on loans to, and direct investment in, the PRC Subsidiaries by offshore
holding companies, and the fact that the PRC government may at its discretion restrict access to foreign currencies for current account
and capital account transactions in the future, we cannot assure you that we will be able to complete the necessary government registrations
or obtain the necessary government approvals on a timely basis, if at all, with respect to future loans by us to the PRC Subsidiaries
or with respect to future capital contributions by us to the PRC Subsidiaries. If we fail to complete such registrations or obtain such
approvals, our ability to capitalize or otherwise fund the PRC operations may be negatively affected, which could materially and adversely
affect our liquidity and our ability to fund and expand our business.
The
PRC government can take regulatory actions and make statements to regulate business operations in China with little advance notice, so
FF's assertions and beliefs of the risks imposed by the Chinese legal and regulatory system cannot be certain.
The
Chinese government has taken and continues to take regulatory actions and make statements to regulate business operations in China, sometimes
with little advance notice. Our ability to operate and to expand our operations in China in the future may be harmed by changes in its
laws and regulations, including those relating to foreign investment, cybersecurity and date protection, foreign currency exchange, taxation,
environmental regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose
new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part
to ensure our compliance with such regulations or interpretations. Accordingly, government actions in the future could have a significant
effect on economic conditions in China, or particular regions thereof, and could require us to divest ourselves of any interest we then
hold in Chinese properties.
As
such, the PRC Subsidiaries could be subject to regulation by various political and regulatory entities, including various local and municipal
agencies and government sub-divisions. The PRC Subsidiaries may incur increased costs necessary to comply with existing and newly adopted
laws and regulations or penalties for any failure to comply. The PRC Subsidiaries' operations could be adversely affected, directly
or indirectly, by existing or future laws and regulations relating to their business or industry. Given that the Chinese government may
intervene or influence the PRC Subsidiaries' operations at any time, it could result in a material change in the PRC Subsidiaries'
operations and a material reduction in the value of our Class A Common Stock and warrants. Given recent statements by the Chinese government
indicating an intent to exert more oversight and control over offerings that are conducted overseas, any such action could significantly
limit or completely hinder FF's ability to offer or continue to offer our shares of Class A Common Stock and warrants to investors
and cause the value of such securities to significantly decline or be worthless.
Furthermore,
it is uncertain when and whether FF will be required to obtain permission from the PRC government to maintain its listing on U.S. exchanges
in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although FF is currently not required
to obtain permission from the PRC government and has not received any denial to list on the U.S. exchange, as the PRC laws and regulations
are still evolving rapidly and their interpretation and implementation are subject to uncertainties, our operations could be adversely
affected, directly or indirectly, by existing or future PRC laws and regulations relating to its business or industry.
49
The
approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental authorities may be required in connection
with certain of FF's financing activities, and, if required, it cannot predict if it will be able to obtain such approval or complete
such filing or other administrative procedures.
The
PRC governmental authorities recently have strengthened oversight over offerings that are conducted overseas and/or foreign investment
in overseas-listed China-based issuers. Such actions taken by the PRC governmental authorities may intervene with our operations or financing
activities, which are beyond our control. For instance, on July 6, 2021, the relevant PRC governmental authorities promulgated the Opinions
on Strictly Cracking Down on Illegal Securities Activities, which emphasized the need to strengthen the administration over illegal securities
activities, the need to strengthen the supervision over overseas listings by PRC-based companies and the need to revise the special provisions
of the State Council on overseas issuance and listing of shares by those limited by shares companies. On February 17, 2023, the CSRC
promulgated the Trial Administrative Measures of the Overseas Securities Offering and Listing by Domestic Companies, or the Overseas
Listing Trial Measures, and relevant five guidelines, which became effective on March 31, 2023. According to the Overseas Listing Trial
Measures, companies in mainland China that seek to offer securities or list in overseas markets, either directly or indirectly, are required
to fulfill the filing procedure with the CSRC. The Overseas Listing Trial Measures provide that if the issuer meets both of the following
criteria, the overseas securities offering or listing conducted by such issuer will be deemed as an indirect overseas offering or listing
by PRC domestic companies: (i) more than 50% of any of the issuer's operating revenue, total profit, total assets or net assets
as documented in its audited consolidated financial statements for the most recent fiscal year is accounted for by companies in mainland
China; and (ii) the main parts of the issuer's business activities are conducted in mainland China, or its main place(s) of business
are located in mainland China, or the majority of senior management staff in charge of its business operations and management are PRC
citizens or have their usual place(s) of residence located in mainland China. Initial public offerings or listings in overseas markets
will be filed with the CSRC within three working days after the relevant application is submitted overseas, and subsequent securities
offerings of an issuer in the same overseas market where it has previously offered and listed securities will be filed with the CSRC
within three working days after the offering is completed.
In
addition, the Overseas Listing Trial Measures provide that an overseas listing or offering by a PRC domestic company is explicitly prohibited
under any of the following circumstances: (i) such securities offering and listing is explicitly prohibited by provisions in laws, administrative
regulations and relevant state rules; (ii) the intended securities offering and listing may endanger national security upon reviewed
and determined by competent authorities under the State Council in accordance with law; (iii) the domestic company intending to conduct
the securities offering and listing, or its controlling shareholder(s) and the actual controller, have committed relevant crimes such
as corruption, bribery, embezzlement, misappropriation of property or undermining the order of the socialist market economy during the
latest three years; (iv) the domestic company intending to conduct the securities offering and listing is currently under investigations
for suspicion of criminal offenses or major violations of laws and regulations, and no conclusion has yet been made thereof; or (v) there
are material ownership disputes over equity held by the domestic company's controlling shareholder(s) or by other shareholder(s)
that are controlled by the controlling shareholder(s) and/or actual controller.
As
the Overseas Listing Trial Measures and the related guidelines are newly promulgated, there are uncertainties regarding their implementation
and interpretation. We cannot predict the impact of these new rules on our future securities offerings or other forms of financing activities,
if any, at this stage, or guarantee that we will be able to satisfy the scrutinized and new regulatory requirements in case they are
applicable to us. In addition, we cannot guarantee that new rules or regulations promulgated in the future will not impose any additional
requirement on us or otherwise tightening the regulations on PRC companies seeking overseas listing. If it is determined in the future
that approval of, or filing or other administrative procedures with, the CSRC or other PRC governmental authorities are required for
our future financing or listing activities, we cannot assure you we can obtain such approval or complete such filing or other required
procedures in a timely manner. Any failure or delay in obtaining or completing such approval, filing or other required procedures, or
a rescission of any such approval or filing or other procedures, would subject us to sanctions by the CSRC or other PRC governmental
authorities. These PRC governmental authorities may impose fines and/or other penalties on our operations in China, limit our ability
to pay dividends outside of China, limit our operating privileges in China, delay or restrict the repatriation of the proceeds from our
offshore financing activities into China or take other actions that could materially and adversely affect our business, financial condition,
results of operations, and prospects. Any uncertainties or negative publicity arising from these events could also adversely affect our
business, financial condition, results of operations, and prospects.
50
The
Mergers and Acquisitions Rules and certain other PRC regulations establish certain procedures for some acquisitions of Chinese companies
by foreign investors, which could make it more difficult for FF to pursue growth through acquisitions in China.
The
Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors adopted by six PRC regulatory agencies (the "M&A
Rules") and related regulations and rules concerning mergers and acquisitions established additional procedures and requirements
that could make merger and acquisition activities by foreign investors more time-consuming and complex. For example, the M&A Rules
require that MOFCOM be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic
enterprise, if (i) any important industry is concerned, (ii) such transaction involves factors that have or may have an impact on the
national economic security, (iii) such transaction will lead to a change in control of a domestic enterprise which holds a famous trademark
or PRC time-honored brand, or (iv) or in circumstances where overseas companies are established or controlled by PRC enterprises or residents
acquire affiliated domestic companies. Moreover, the PRC Anti-Monopoly Law requires that transactions which are deemed concentrations
and involve parties with specified turnover thresholds must be cleared by the relevant anti-monopoly authority before they can be completed.
In
addition, in 2011, the General Office of the State Council promulgated a Notice on Establishing the Security Review System for Mergers
and Acquisitions of Domestic Enterprises by Foreign Investors, which officially established a security review system for mergers and
acquisitions of domestic enterprises by foreign investors. Also, the Rules on Implementation of Security Review System for the Merger
and Acquisition of Domestic Enterprises by Foreign Investors, issued by the MOFCOM and effective in September 2011 specify that mergers
and acquisitions by foreign investors that raise "national defense and security" concerns and mergers and acquisitions through
which foreign investors may acquire de facto control over domestic enterprises that raise "national security" concerns are
subject to strict review by the MOFCOM, and the Rules prohibit any activities attempting to bypass a security review, including by structuring
the transaction through a proxy, re-investment through multiple levels, leases, loans or control through contractual control arrangement
or offshore transactions. Furthermore, NDRC and MOFCOM promulgated the Measures for the Security Review of Foreign Investments, effective
January 18, 2021, which require foreign investors or relevant parties to file a prior report before making a foreign investment if such
investment involves military related industry, national defense security or taking control of an enterprise in a key industry that concerns
national security; and if a foreign investment will or may affect national security, the standing working office organized by NDRC and
MOFCOM will conduct a security review to decide whether to approve such investment.
In
the future, we may grow our business in China by acquiring complementary businesses. Complying with the requirements of the above-mentioned
regulations and other relevant rules to complete such transactions, if required, could be time consuming, and any required approval processes,
including obtaining approval or clearance from the MOFCOM or its local counterparts and other relevant PRC authorities, may delay or
inhibit our ability to complete such transactions. It is unclear whether our business would be deemed to be in an industry that raises
"national defense and security" or "national security" concerns. However, the MOFCOM or other government agencies
may publish explanations in the future determining that our business is in an industry subject to the security review, in which case
our future acquisitions in the PRC, including those by way of entering into contractual control arrangements with target entities, may
be closely scrutinized or prohibited. Our ability to expand our business or maintain or expand our market share in China through future
acquisitions would as such be materially and adversely affected.
FF
may be adversely affected by the complexity, uncertainties and changes in PRC regulations on internet-related business, automotive businesses
and other business carried out by the PRC Subsidiaries.
The
Chinese government extensively regulates the internet and automotive industries and other business carried out by the PRC Subsidiaries,
such laws and regulations are relatively new and evolving, and their interpretation and enforcement involve significant uncertainties.
As a result, in certain circumstances it may be difficult to determine what actions or omissions may be deemed to be in violation of
applicable laws and regulations.
51
Several
PRC regulatory authorities, such as the State Administration for Market Regulation, the NDRC, MOFCOM, and the MIIT of China, oversee
different aspects of the electric vehicle business, and the PRC Subsidiaries will be required to obtain a wide range of government approvals,
licenses, permits and registrations in connection with their operations in China. For example, according to the Administrative Rules
on the Admission of New Energy Vehicle Manufacturers and Products, promulgated by the MIIT on January 6, 2017 and amended on July 24,
2020, the MIIT is responsible for the national-wide administration of new energy vehicles and their manufacturers. The manufacturers
must apply to the MIIT for the entry approval to become a qualified manufacturer in China and must further apply to the MIIT for the
entry approval for the new energy passenger vehicles before commencing the manufacturing and sale of the new energy passenger vehicles
in China. Both of the new energy passenger vehicles and their manufacturers will be listed in the Announcement of the Vehicle Manufacturers
and Products issued by the MIIT from time to time, if they have obtained the entry approval from the MIIT. According to the Management
Measures for Automobile Sales promulgated by the MOFCOM in July 2017, corporate basic information filings must be made by automobile
dealers through the information system for the national automobile circulation operated by the MOFCOM within 90 days after the receipt
of a business license. Furthermore, the electric vehicle industry is relatively immature in China, and the government has not adopted
a clear regulatory framework to regulate the industry.
There
are substantial uncertainties regarding the interpretation and application of the existing PRC laws, regulations and policies and possible
new laws, regulations or policies relating to internet-related businesses as well as automotive businesses and companies. There is no
assurance that FF will be able to obtain all the permits or licenses related to its business in China, or will be able to maintain its
existing licenses or obtain new ones. In the event that the PRC government considers that FF was or is operating without the proper approvals,
licenses or permits, promulgates new laws and regulations that require additional approvals or licenses, or imposes additional restrictions
on the operation of any part of FF's business, the PRC government has the power, among other things, to levy fines, confiscate
FF's income, revoke its business licenses, and require FF to discontinue the relevant business or impose restrictions on the affected
portion of its business. Any of these actions by the PRC government may have a material adverse effect on FF's business, prospects,
financial condition and results of operations.
FF
faces challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection.
Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with
related laws and regulations regarding cybersecurity, information security, data privacy and protection could materially and adversely
affect its business and results of operations.
In
the regular course of our business, we obtain information about various aspects of our operations as well as regarding our employees
and third parties. The integrity and protection of FF, employee and third-party data are critical to our business. Our employees and
third parties expect that we will adequately protect their personal information. We are required by applicable laws to keep strictly
confidential the personal information that we collect, and to take adequate security measures to safeguard such information.
PRC
regulators, including the CAC, the MIIT, and the Ministry of Public Security, have been increasingly focused on regulation in data security
and data protection. PRC regulatory requirements regarding cybersecurity are evolving. For instance, various regulatory bodies in China
have enforced data privacy and protection laws and regulations with varying and evolving standards and interpretations.
52
On
November 7, 2016, the Standing Committee of the PRC National People's Congress issued the Cyber Security Law of the PRC (the "Cyber
Security Law"), which became effective on June 1, 2017.
Pursuant
to the Cyber Security Law, network operators must not, without users' consent, collect and disclose their personal information,
and may only collect users' personal information necessary to provide their services. Providers are also obliged to provide security
maintenance for their products and services and must comply with provisions regarding the protection of personal information as stipulated
under the relevant laws and regulations.
The
PRC Criminal Law, as most recently amended in 2020, prohibits institutions, companies and their employees from selling or otherwise illegally
disclosing a citizen's personal information obtained in performing duties or providing services or obtaining such information through
theft or other illegal ways. The Civil Code of the PRC provides legal basis for privacy and personal information infringement claims
under the Chinese civil laws.
On
June 10, 2021, the Standing Committee of the National People's Congress of China (the "SCNPC"), promulgated the PRC
Data Security Law, which took effect on September 1, 2021. The PRC Data Security Law imposes data security and privacy obligations on
entities and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based
on the importance of data in economic and social development, and the degree of harm it will cause to national security, public interests,
or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired
or used. The PRC Data Security Law also provides for a national security review procedure for data activities that may affect national
security and imposes export restrictions on certain data and information.
On
August 16, 2021, the CAC and certain other PRC regulatory authorities promulgated the Several Provisions on the Management of
Automobile Data Security (Trial Implementation), which came into effect on October 1, 2021 and clearly stipulates that: (i) to carry
out personal information processing activities, automobile data processors must notify individuals of relevant information in a
prominent manner, obtain personal consent or comply with laws and administrative regulations in other circumstances; (ii) for the
processing of sensitive personal information, the automobile data processor must obtain separate consent from individuals, and meet
specific requirements; and (iii) automobile data processors must collect biometric information only with sufficient necessity and
for the purpose to enhance driving safety. In addition, these provisions also define the term of "important data"
thereunder and establish corresponding protection and regulation mechanisms on the important data.
On
August 20, 2021, the SCNPC promulgated the PRC Personal Information Protection Law, which took effect on November 1, 2021. This legislation
marks China's first comprehensive legal attempt to define personal information and regulate the storing, transferring, and processing
of personal information. It restricts the cross-border transfer of personal information and has major implications for companies that
rely on data for their operations in China.
In
December 2021, the CAC and 12 other related authorities promulgated the Cybersecurity Review Measures, which became effective on February
15, 2022. The Cybersecurity Review Measures stipulates that:
●
the
                                            CSRC is included as one of the regulatory authorities for purposes of jointly establishing
                                            the state cybersecurity review working mechanism;
●
the
                                            purchase of network products and services by a "critical information infrastructure
                                            operator" and the data processing activities of a "network platform operator"
                                            that affect or may affect national security will be subject to the cybersecurity review;
●
if
                                            a network platform operator who possesses personal information of more than one million users
                                            intends to go public in a foreign country, it must apply for a cybersecurity review with
                                            the CAC; and
●
the
                                            relevant PRC governmental authorities may initiate cybersecurity review if they determine
                                            certain network products, services, or data processing activities affect or may affect national
                                            security.
Furthermore,
on November 14, 2021, the CAC published a discussion draft of Regulations on the Administration of Cyber Data Security for public comment,
which provides that data processors conducting the following activities must apply for cybersecurity review: (i) merger, reorganization
or division of internet platform operators that have acquired a large number of data resources related to national security, economic
development or public interests affects or may affect national security; (ii) listing abroad of data processors processing over one million
users' personal information; (iii) listing in Hong Kong which affects or may affect national security; or (iv) other data processing
activities that affect or may affect national security. The draft also provides that operators of large internet platforms that set up
headquarters, operation centers or R&D centers overseas will report to the national cyberspace administration and competent authorities.
In addition, the draft also requires that data processors processing important data or going public overseas will conduct an annual data
security self-assessment or entrust a data security service institution to do so, and submit the data security assessment report of the
previous year to the local branch of the Cyberspace Administration of China before January 31 each year. As of the date of this prospectus,
the above mentioned drafts have not been formally adopted, and substantial uncertainties exist with respect to their enactment timetable,
final content, interpretation and implementation. On July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Cross-border
Data Transmission, which took effect on September 1, 2022. These measures require the data processor providing data overseas and falling
under any of the following circumstances apply for the security assessment of cross-border data transmission by the national cybersecurity
authority through its local counterpart: (i) the data processor provides important data overseas; (ii) critical information infrastructure
operators and data processors processing personal information of more than one million individuals provide personal information overseas;
(iii) data processors which have provided personal information of 100,000 individuals or sensitive personal information of 10,000 individuals
overseas since January 1 of the previous year provides personal information overseas; and (iv) other situations required to declare security
assessment of cross-border data transmission as stipulated by the national cybersecurity authority.
53
The
PRC Subsidiaries may become subject to enhanced cybersecurity review. Certain internet platforms in China have been reportedly subject
to heightened regulatory scrutiny in relation to cybersecurity matters. If the PRC Subsidiaries are deemed to be a critical information
infrastructure operator or a network platform operator that is engaged in data processing that affect or may affect national security,
they could be subject to PRC cybersecurity review. As of the date of this prospectus, we have not received any notice from any PRC governmental
authority identifying any of the PRC Subsidiaries as a "critical information infrastructure operator" or "network platform
operator" that is engaged in data processing which affects or may affect national security as mentioned above, or requiring us
to go through the cybersecurity review or initiating a cybersecurity review against us in such respects.
As
advised by the PRC counsel, the above mentioned laws, regulations or the relevant drafts are relatively new and the PRC laws and regulations
relating to cybersecurity, information security, data privacy and protection are evolving rapidly, there remains significant uncertainty
in the enactment, interpretation and enforcement of such PRC laws, regulations or the relevant drafts, and the PRC Subsidiaries could
become subject to enhanced cybersecurity review or non-compliance investigations launched by PRC regulators in the future. Any failure
or delay in the completion of the cybersecurity review procedures or any other non-compliance investigations in accordance with the related
laws and regulations may result in fines or other penalties, including suspension of business, website closure, and revocation of prerequisite
licenses, as well as reputational damage or legal proceedings or actions to the PRC Subsidiaries, which may have material adverse effects
on our business, financial condition or results of operations. As of the date of this prospectus, the PRC Subsidiaries have not been
involved in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities, and they
have not received any inquiry, notice, warning, or sanction in such respect. However, as uncertainties remain regarding the interpretation
and implementation of these laws and regulations, we cannot assure you that the PRC Subsidiaries will comply with such regulations in
all respects and they may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities.
In
the event that the independent registered public accounting firm operating in China that FF uses as an auditor for its operations in
China is not permitted to be subject to inspection by PCAOB, then investors may be deprived of the benefits of such inspection.
Under
the Holding Foreign Companies Accountable Act (the "HFCA"), if the SEC determines that a company has filed audit reports
by a registered public accounting firm that has not been subject to inspection by the PCAOB for two consecutive years, the SEC shall
prohibit such ordinary shares from being traded on a national securities exchange or in the over-the-counter trading market in the U.S.
The PCAOB provides a framework to use when determining, as contemplated under the HFCA, whether the PCAOB is unable to inspect or investigate
completely registered public accounting firms located in a foreign jurisdiction because of a position taken by one or more authorities
in that jurisdiction. Additionally, the SEC has disclosure requirements that apply to registrants that the SEC identifies as having filed
an Annual Report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that
the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions.
Our
previous auditor, the independent registered public accounting firm that issued the audit report included in 2023 Form 10-K, is registered
with the PCAOB, and is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance
with the applicable professional standards. Accordingly, we have not been identified as a "Commission-Identified Issuer"
by the PCAOB under the current framework of the HFCA. However, prior to 2022, the auditors of the PRC Subsidiaries were not subject to
inspection by the PCAOB and any future determination by the PCAOB that the PRC Subsidiaries' auditors are not subject to inspection
could materially adversely affect FF.
54
Our
ability to retain an auditor subject to PCAOB inspection and investigation may depend on the relevant positions of U.S. and Chinese regulators.
If the PCAOB is unable to inspect or investigate completely FF's auditor in China because of a position taken by the Chinese authorities,
then such lack of inspection could cause trading in FF's securities to be prohibited under the HFCA, and ultimately result in a
determination by the SEC to delist FF's securities. Such a prohibition would substantially impair an investor's ability to
sell or purchase the Common Stock and negatively impact the price of the Common Stock. Accordingly, the HFCA calls for additional and
more stringent criteria to be applied to emerging market companies upon assessing the qualification of their auditors, especially non-U.S.
auditors. In addition, PCAOB inspections help improve future audit quality and effectiveness. Without the benefit of PCAOB inspections,
existing or potential investors could lose confidence in our reported financial information and the quality of our financial statements
with respect to the PRC Subsidiaries.
U.S.
regulatory bodies may be limited in their ability to conduct investigations or inspections of FF's operations in China.
The
SEC, the DOJ and other U.S. authorities may also have difficulties in bringing and enforcing actions against the PRC Subsidiaries or
the directors or executive officers of the PRC Subsidiaries. The SEC has stated that there are significant legal and other obstacles
to obtaining information needed for investigations or litigation in China. China has adopted a revised securities law that became effective
on March 1, 2020, Article 177 of which provides, among other things, that no overseas securities regulator is allowed to directly conduct
investigation or evidence collection activities within the territory of the PRC. Furthermore, on February 24, 2023, the CSRC and several
other Chinese authorities promulgated the Provisions on Strengthening Confidentiality and Archives Administration of Overseas Securities
Offering and Listing by Domestic Companies, which provide that where an overseas securities regulator and a competent overseas authority
requests to inspect, investigate or collect evidence from a PRC domestic company concerning overseas offering and listing, or to inspect,
investigate, or collect evidence from the PRC domestic securities companies and securities service providers that undertake relevant
businesses for such PRC domestic companies, such inspection, investigation and evidence collection will be conducted under a cross-border
regulatory cooperation mechanism, and the CSRC or other competent Chinese authorities will provide necessary assistance pursuant to bilateral
and multilateral cooperation mechanisms. PRC domestic companies, securities companies and securities service providers must first obtain
approval from the CSRC or other competent Chinese authorities before cooperating with the inspection and investigation by the overseas
securities regulator or competent overseas authority, or providing documents and materials requested in such inspection and investigation.
Accordingly, without governmental approval in China, no entity or individual in China may provide documents and information relating
to securities business activities to overseas regulators when it is under direct investigation or evidence discovery conducted by overseas
regulators, which could present significant legal and other obstacles to obtaining information needed for investigations and litigation
conducted outside of China.
There
may be difficulties in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments
or bringing original actions in China based on United States or other foreign laws against FF and its management.
We
currently have operations, and plan to have significant operations and assets in the future, in China. Moreover, one of our current directors
is a national and resident of the PRC. As a result, it may not be possible to effect service of process within the United States or elsewhere
outside of China with regard to such persons or assets relating to our operations in China, including actions arising under applicable
U.S. federal and state securities laws. In addition, there are legal and other obstacles in China to providing information needed for
regulatory investigations or litigation initiated by regulators outside China. Overseas regulators may have difficulties in conducting
investigations or collecting evidence within China. It may also be difficult for investors to bring a lawsuit against us or our directors
or executive officers based on U.S. federal securities laws in a Chinese court. Moreover, China does not have treaties with the United
States providing for the reciprocal recognition and enforcement of judgments of courts. Therefore, even if a judgment were obtained against
us or our management for matters arising under U.S. federal or state securities laws or other applicable U.S. federal or state law, it
may be difficult to enforce such a judgment with respect to our operations or assets in China.
55
A
significant portion of FF's financing in the near future is expected to come from investors in China, and such investment is subject
to delay due to due diligence review, including know your customer, anti-money laundering and other review.
We
conduct due diligence, including know your customer, anti-money laundering and other review, on all potential financing sources. This
process has been time consuming, particularly in connection with review of investors in China, and may result in our not being able to
consummate any financing from these or other financing sources on a timely basis or at all. If we are unable to raise sufficient additional
funds in the near term, we may be required to further delay our production and delivery plans for the FF 91 Futurist, reduce headcount,
liquidate our assets, file for bankruptcy, reorganize, merge with another entity, and/or cease operations. For more information, see
"
Risk Factors – Risks Related to FF's Business and Industry – FF does not have sufficient liquidity to pay
its outstanding obligations and to operate its business and it will likely file for bankruptcy protection if it is unable to access additional
capital."
Risks
Related to the Restatement
FF
has identified material weaknesses in its internal control over financial reporting. FF's inability to remediate these material
weaknesses, or identification of additional material weaknesses in the future or other failure to maintain effective internal control
over financial reporting, has resulted, and could further result, in material misstatements in FF's consolidated financial statements
and FF's ability to accurately or timely report its financial condition or results of operations, which may adversely affect FF's
business and share price.
FF's
management is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). A material weakness is defined as a
deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. As a
result of these material weaknesses, FF's management concluded that its internal control over financial reporting was not effective
as of December 31, 2022 or December 31, 2023. FF has engaged in remediation efforts designed to address these material weaknesses. As
FF continues to evaluate and work to improve its internal control over financial reporting, FF may determine that additional measures
or modifications to the remediation plan are necessary. FF is working to remediate the material weaknesses, but full remediation could
go beyond December 31, 2024. At this time, we cannot predict the total costs expected to be incurred; however, the remediation measures
have been and will continue to be time consuming, costly, and a significant demand on our financial and operational resources.
While
FF believes these efforts will remediate the material weaknesses, it will not be considered remediated until FF completes the design
and implementation of the enhanced controls, the controls operate for a sufficient period of time, and FF has concluded, through testing,
that these controls are effective. FF may not be able to complete its evaluation, testing or any required remediation in a timely fashion,
or at all. FF cannot assure you that the measures it has taken to date and may take in the future, will be sufficient to remediate the
control deficiencies that led to its material weaknesses in internal control over financial reporting or that they will prevent or avoid
potential future material weaknesses. The effectiveness of FF's internal control over financial reporting is subject to various
inherent limitations, including cost, judgments and assumptions, human error and the risk of fraud. The material weaknesses, or a failure
to promptly remediate them, may adversely affect our business, our reputation, our results of operations and the market price of our
Class A Common Stock. If FF is unable to remediate the material weaknesses in a timely manner, our investors, customers and other business
partners may lose confidence in our business or our financial reports, and our access to capital markets may be adversely affected.
In
addition, our ability to record, process, and report financial information accurately, and to prepare financial statements within the
time periods specified by the rules and regulations of the SEC and other regulatory authorities, could be adversely affected, which may
result in violations of applicable securities laws, stock exchange listing requirements and the covenants under our debt and equity agreements.
Any such delays or deficiencies could penalize us, including by limiting our ability to obtain financing, either in the public capital
markets or from private sources and hurt our reputation and could thereby impede our ability to implement our growth strategy. We could
also be exposed to lawsuits, investigations, or other legal actions.
The
control deficiencies resulting in the material weaknesses, in the aggregate, has resulted, and may in the future result, in misstatements
of accounts or disclosures that would result in a material misstatement of the annual or interim consolidated financial statements. For
example, in July 2023, FF identified errors in its Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Report
on Form 10-Q for the periods ended March 31, 2023 and September 30, 2022, determined these financial statements should no longer be relied
upon, and subsequently restated them.
In
addition, we cannot be certain that we will not identify additional control deficiencies or material weaknesses in the future. If we
identify future control deficiencies or material weaknesses, these may lead to adverse effects on our business, our reputation, our results
of operations, and the market price of our Class A Common Stock. Further, if our remedial measures are insufficient to address the material
weaknesses, or if additional material weaknesses or significant deficiencies in our internal control are discovered or occur in the future,
our consolidated financial statements may contain material misstatements and we could be required to restate additional financial results.
56
Further,
FF has recently experienced substantial turnover in key management personnel, including legal, compliance, human resources and finance
personnel, as well as substantial changes to the composition of the Board, and further changes may occur in the future. As a result of
these Board and management changes, there can be no guarantee that FF's board of directors as composed in the future will agree
with decisions made by the Board regarding the material weakness and the necessary remedial measures, that they will not identify other
areas that require remediation or that they will continue to pursue the remediation measures. Any turnover of personnel, particularly
accounting, finance and legal personnel, may also negatively impact FF's internal controls over financial reporting and other disclosures
and our ability to prepare and make timely and accurate public disclosures.
FF
faces risks related to the restatement of its previously issued consolidated financial statements.
We
reached a determination to restate certain financial information and related footnote disclosures in our previously issued consolidated
financial statements for the 2022 Form 10-K for the period ended December 31, 2022 and Quarterly Reports on Form 10-Q for the periods
ended March 31, 2023 and September 30, 2022. As a result, we face a number of additional risks and uncertainties, which may affect investor
confidence in the accuracy of our financial disclosures and may raise reputational issues for our business. We expect to continue to
face many of the risks and challenges related to the restatement, including the following:
●
we
may face potential for litigation or other disputes, which may include, among others. Claims invoking the federal and state securities
laws, contractual claims or other claims arising from the restatement, and
●
the
                                            processes undertaken to effect the restatement may not have been adequate to identify and
                                            correct all errors in our historical financial statements and, as a result, we may discover
                                            additional errors and our financial statements remain subject to the risk of future restatement.
We
cannot assure that all of the risks and challenges described above will be eliminated or that general reputational harm will not persist.
If one or more of the foregoing risks or challenges persist, our business, operations and financial condition are likely to be materially
and adversely affected.
Risks
Related to Our Common Stock
FF
is not able to continue to utilize its "at-the-market" equity program.
FF's
operations have consumed substantial amounts of cash since its inception. Historically, FF has primarily financed its operations through
the sale of its Common Stock, warrants and convertible notes. For example, on June 16, 2023, FF filed the Registration Statement which
was declared effective by the SEC on June 28, 2023. On September 26, 2023, FF also entered into a sales agreement with Stifel, Nicolaus
& Company, Incorporated, B. Riley Securities, Inc., A.G.P./Alliance Global Partners, Wedbush Securities Inc. and Maxim Group LLC,
as sales agents, to sell shares of Class A Common Stock, from time to time, with aggregate gross sales proceeds of up to $90.0 million
pursuant to the Registration Statement as an ATM Program. The ATM Program was the primary source of liquidity for FF from September to
December 2023.
57
Under
applicable SEC rules and regulations, because FF failed to timely file the 2023 Form 10-K, it is not eligible to access the ATM Program.
Although
alternative public and private transaction structures may be available, these may require additional time and cost, may impose operational
restrictions on FF, and may not be available on attractive terms. FF's inability to continue to raise capital when needed will
harm its business, financial condition and results of operations, and will likely cause FF's stock value to decline and FF will
likely have to file for bankruptcy protection and its assets will likely be liquidated. FF's equity holders would likely not receive
any recovery at all in a bankruptcy scenario.
FF
may not be in compliance with the continued listing requirements for Nasdaq in the future, the failure of which may cause the Company
to be delisted, the failure to be in compliance with the Nasdaq continued listing requirements could also affect the market price and
liquidity for the FF's Common Stock and reduce the FF's ability to raise additional capital.
On
December 28, 2023, FF received a letter from the Listing Qualifications Staff of Nasdaq noting that FF was not in compliance with the
requirement to maintain a minimum bid price of $1.00 per share for 30 consecutive trading days for continued listing on Nasdaq, as set
forth in Nasdaq Listing Rule 5550(a)(2) (the "Minimum Bid Price Requirement"). Beginning on November 9, 2023, FF's
closing bid price of the Class A Common Stock has been below $1.00 per share.
Pursuant
to Nasdaq Listing Rule 5810(c)(3)(A), FF was initially provided 180 calendar days from receipt of the notice from Nasdaq to regain compliance
with the Minimum Bid Price Requirement.
On
April 18, 2024, Nasdaq notified FF that since it had not yet filed 2023 Form 10-K, it no longer complied with Listing Rule 5250(c)(1).
Pursuant to Listing Rule 5810(c)(2)(A), this deficiency was an additional basis for delisting.
On
April 24, 2024, FF received a letter from Nasdaq indicating that FF was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii),
as FF's Class A Common Stock had a closing bid price of $0.10 or less for ten consecutive trading days (the "Low Priced Stocks
Rule"). The letter indicated that, as a result, the Nasdaq staff had determined to delist FF's securities from The Nasdaq
Capital Market (the "Delisting Determination").
On
May 1, 2024, FF requested a hearing to appeal the Delisting Determination, which stayed the suspension of FF's securities for 15
days. FF also requested an extended stay of the suspension pending such hearing with Nasdaq's Hearings Panel (the "Panel"),
which Nasdaq granted on May 28, 2024.
The
Nasdaq Hearings Panel granted the Company's request for continued listing, conditional upon meeting the minimum bid price requirement
by August 31, 2024. On August 14, 2024, the Company filed the 4
th
Certificate of Amendment to the Company's Amended
and Restated Charter with the Secretary of State of the State of Delaware to effect a reverse stock split at a ratio of 1:40 and to set
the number of authorized shares of Class A Common Stock, par value $0.0001 per share, of the Company to 104,245,313 (which is 4,169,812,500
divided by 40, the reverse stock split ratio determined by the Board). The 4
th
Certificate of Amendment was authorized by
the stockholders of the Company at the Company's Annual Meeting of Stockholders held on July 31, 2024.
Pursuant
to the Certificate of Amendment, effective as of 5:00 p.m., Eastern Time, on August 16, 2024, every 40 shares of the issued and outstanding
Common Stock was automatically converted into one share of Common Stock, without any change in par value per share, and the number of
authorized shares of Common Stock was reduced to 104,245,313.
58
On
September 4, 2024, the Company
received a letter
from the Office of the General Counsel of the Nasdaq notifying the Company that it had regained compliance with the Nasdaq Capital Market's
minimum bid price requirement and periodic filing requirement (the "Periodic Filing Rule") as required by the Panel decision
dated June 26, 2024, as amended.
FF
will keep monitoring the Company's compliance with Nasdaq continued listing requirements. However, the Company cannot guarantee
that it will not fail to be compliant with these requirements in the future.
The
Company is subject to a mandatory panel monitor for a period of one (1) year from September 4, 2024. If within that one-year monitoring
period, the Nasdaq Listing Qualifications staff (the "Staff") finds the Company again out of compliance with the Periodic
Filing Rule that was the subject of the exception, the Company will not be permitted to provide the Staff with a plan of compliance with
respect to that deficiency and Staff will not be permitted to grant additional time for the Company to regain compliance with respect
to that deficiency, nor will the Company be afforded an applicable cure or compliance period pursuant to the Nasdaq Listing Rules 5810(c)(3).
The Staff will issue a Delist Determination Letter and the Company will have an opportunity to request a new hearing with the initial
Panel or a newly convened Hearings Panel if the initial Panel is unavailable. The Company's securities may be at that time delisted
from the Nasdaq.
In
addition, Nasdaq Listing Rule 5810(c)(3)(A)(iv) states that if a listed company that fails to meet the Minimum Bid Price Requirement after
effecting one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one, then FF
is not eligible for a Compliance Period. FF effected a 1-for-80 reverse stock split of its Common Stock on August 25, 2023, an additional
1-for-3 reverse stock split of its Common Stock on February 29, 2024, and an additional 1-for-40 reverse stock split of its Common
Stock on August 16, 2024, if the Company again fails to meet the Minimum Bid price Requirement before August 25, 2025, the Common Stock
of the Company will be delisted and the Company is not subject to any additional reverse stock split.
If
Nasdaq delists FF's shares from trading on its exchange for failure to meet the applicable listing standards, we and our stockholders
could face significant material adverse consequences including:
●
a
                                            determination that our Common Stock is a "penny stock" which will require brokers
                                            trading in our Common Stock to adhere to more stringent rules, possibly resulting in a reduced
                                            level of trading activity in the secondary trading market for shares of our Common Stock;
●
a
                                            limited amount of news and analyst coverage; and
●
a
                                            decreased ability to issue additional securities or obtain additional financing in the future.
FF
does not currently intend to pay dividends on the Class A Common Stock and, consequently, your ability to achieve a return on your investment
will depend on appreciation in the price of the Class A Common Stock.
FF
has no direct operations and no significant assets other than the ownership of the stock of its subsidiaries. As a result, FF will depend
on its subsidiaries for distributions, loans and other payments to generate the funds necessary to meet our financial obligations, including
our expenses as a publicly traded company, and to pay any dividends with respect to our Class A Common Stock. Applicable state law and
contractual restrictions, including in agreements governing the current or future indebtedness of FF, as well as the financial condition
and operating requirements of FF and limitations on the ability of the PRC Subsidiaries' ability to pay dividends or make payment
to us, may limit our ability to obtain cash from FF subsidiaries. Thus, we do not expect to pay cash dividends on our Class A Common
Stock. Any future dividend payments are within the absolute discretion of our Board and will depend on, among other things, our results
of operations, working capital requirements, capital expenditure requirements, financial condition, level of indebtedness, contractual
restrictions with respect to payment of dividends, business opportunities, anticipated cash needs, provisions of applicable law and other
factors that our Board may deem relevant.
59
FF
may be required to take write-downs or write-offs, or FF may be subject to restructuring, impairment or other charges that could have
a significant negative effect on FF's business, prospects, financial condition, results of operations and the trading price of
FF's securities, which could cause you to lose some or all of your investment.
Factors
outside of FF's control may, at any time, arise. As a result of these factors, FF may be forced to later write-down or write-off
assets, restructure its operations, or incur impairment or other charges that could result in FF reporting losses. Even though these
charges may be non-cash items and therefore not have an immediate impact on FF's liquidity, the fact that FF reports charges of
this nature could contribute to negative market perceptions about FF or its securities. In addition, charges of this nature may cause
FF to be unable to obtain future financing on favorable terms or at all.
The
price of the Class A Common Stock has been and may continue to be highly volatile, and you could lose all or part of your investment.
The
trading price of the Class A Common Stock has been and may continue to be highly volatile and could be attributable, among others, to
factors beyond our control, including limited trading volume. For example, our stock traded within a range of a high price of $72.00 and
a low price of $1.60 per share for the period from April 16, 2024, through October 30, 2024.
Any
of the factors listed below could have a material adverse effect on the market price of the Class A Common Stock and as a result your
investment in FF's securities, and FF's securities may trade at prices significantly below the price paid by you. In such
circumstances, the trading price of FF's securities may not recover and may experience a further decline. Factors affecting the
trading price of FF's securities may include:
●
FF's
                                            failure to raise sufficient financing;
●
actual
                                            or anticipated fluctuations in FF's financial results or the financial results of companies
                                            perceived to be similar to it;
●
changes
                                            in the market's expectations about FF's operating results;
●
success
                                            of competitors;
●
FF's
                                            ability to meet its three-phase delivery plan;
●
FF's
                                            operating results failing to meet the expectation of securities analysts or investors in
                                            a particular period;
●
FF's
                                            ability to attract and retain senior management or key operating personnel, and the addition
                                            or departure of key personnel;
●
changes
                                            in financial estimates and recommendations by securities analysts concerning FF or the transportation
                                            industry in general;
●
operating
                                            and share price performance of other companies that investors deem comparable to FF;
●
FF's
                                            ability to market new and enhanced products and technologies on a timely basis;
●
changes
                                            in laws and regulations affecting FF's business;
●
FF's
                                            ability to meet compliance requirements;
60
●
commencement
                                            of, or involvement in, threatened or actual litigation and government investigations;
●
changes
                                            in FF's capital structure, such as future issuances of securities or the incurrence
                                            of additional debt;
●
the
                                            volume of FF's Common Stock available for public sale;
●
any
                                            change in FF's Board or management;
●
actions
                                            taken by FF's directors, executive officers or significant stockholders such as sales
                                            of FF's Common Stock, or the perception that such actions could occur;
●
ongoing
                                            and potential litigation involving FF, including the SEC investigation;
●
the
                                            implementation of the Special Committee's recommendations and FF's related remedial
                                            actions; and
●
general
                                            economic and political conditions such as recessions, interest rates, fuel prices, international
                                            currency fluctuations and acts of war or terrorism.
Broad
market and industry factors may materially harm the market price of FF's securities irrespective of FF's operating performance.
The stock markets in general have experienced price and volume fluctuations that have often been unrelated or disproportionate to the
operating performance of the particular companies affected. The trading prices and valuations of these stocks, and of FF's securities,
may not be predictable. A loss of investor confidence in the market for electric vehicle manufacturers' stocks or the stocks of
other companies which investors perceive to be similar to FF could depress FF's share price regardless of FF's business,
prospects, financial conditions or results of operations. A decline in the market price of FF's securities also could adversely
affect FF's ability to issue additional securities and FF's ability to obtain additional financing in the future.
FF's
ability to use net operating loss carryforwards and other tax attributes may be limited in connection with the Business Combination or
other ownership changes.
Legacy
FF has net operating loss carryforwards for U.S. federal and state, as well as non-U.S., income tax purposes that are potentially available
to offset future taxable income, subject to certain limitations (including the limitations described below). If not utilized, U.S. federal
net operating loss carryforward amounts generated prior to January 1, 2018 will begin to expire 20 years after the tax year in which
such losses originated. Non-U.S. and state net operating loss carryforward amounts may also be subject to expiration. Realization of
these net operating loss carryforwards depends on the future taxable income of FF, and there is a risk that the existing carryforwards
of FF could expire unused and be unavailable to offset future income tax liabilities, which could materially and adversely affect FF's
operating results.
Under
Section 382 of the Code, if a corporation undergoes an "ownership change" (generally defined as a greater than 50% change
(by value) in the ownership of its equity by certain stockholders over a three-year period), the corporation's ability to use its
pre-change net operating loss carryforwards and certain other pre-change tax attributes to offset its post-change income may be limited.
The applicable rules generally operate by focusing on changes in ownership among stockholders considered by the rules as owning, directly
or indirectly, 5% or more of the stock of a company, as well as changes in ownership arising from new issuances of stock by FF. Legacy
FF may have experienced ownership changes in the past and FF may have experienced an ownership change as a result of the Business Combination.
FF may also experience ownership changes in the future as a result of changes in the ownership of its stock, which may be outside our
control. Accordingly, FF's ability to utilize its net operating loss carryforwards could be limited by such ownership changes,
which could result in increased tax liability to FF, potentially decreasing the value of its stock.
61
There
are additional limitations found under Sections 269, 383, and 384 of the Code that may also limit the use of net operating loss carryforwards
that may apply and result in increased tax liability to FF, potentially decreasing the value of the Common Stock. In addition, a Separate
Return Limitation Year ("SRLY"), generally encompasses all separate return years of a U.S. federal consolidated group member
(or predecessor in a Section 381 or other transaction), including tax years in which it joins a consolidated return of another group.
According to Treasury Regulation Section 1.1502-21, net operating losses of a member that arise in a SRLY may be applied against consolidated
taxable income only to the extent of the loss member's cumulative contribution to the consolidated taxable income. As a result,
this SRLY limitation may also increase FF's tax liability (by reducing the carryforward of certain net operating losses that otherwise
might be used to offset the amount of taxable gain), potentially decreasing the value of the Common Stock.
FF's
tax obligations and related filings have become significantly more complex and subject to greater risk of audit or examination by taxing
authorities, and outcomes resulting from such audits or examinations could adversely impact our business, prospects, financial condition
and results of operations, including our after-tax profitability and financial results.
FF's
operations are subject to significant income, withholding and other tax obligations in the United States and may become subject to taxes
in numerous additional state, local and non-U.S. jurisdictions with respect to our income, operations and subsidiaries related to those
jurisdictions. In addition, FF now has international supplier and customer relationships and may expand operations to multiple jurisdictions,
including jurisdictions in which the tax laws, their interpretation or their administration may not be favorable. Additionally, future
changes in tax law or regulations in any jurisdiction in which FF operates or will operate could result in changes to the taxation of
FF's income and operations, which could cause our after-tax profitability to be lower than anticipated.
FF's
potential future after-tax profitability could be subject to volatility or affected by numerous factors, including (a) the availability
of tax deductions, credits, exemptions, refunds (including refunds of value added taxes) and other benefits to reduce FF's tax
liabilities, (b) changes in the valuation of FF's deferred tax assets and liabilities, (c) expected timing and amount of the release
of any tax valuation allowances, (d) tax treatment of stock-based compensation, (e) changes in the relative amount of our earnings subject
to tax in the various jurisdictions in which FF operates or has subsidiaries, (f) the potential expansion of FF's business into
or otherwise becoming subject to tax in additional jurisdictions, (g) changes to FF's existing intercompany structure (and any
costs related thereto) and business operations, (h) the extent of FF's intercompany transactions and the extent to which taxing
authorities in the relevant jurisdictions respect those intercompany transactions and (i) FF's ability to structure its operations
in an efficient and competitive manner. Due to the complexity of multinational tax obligations and filings, FF may have a heightened
risk related to audits or examinations by U.S. federal, state, local and non-U.S. taxing authorities. Outcomes from these audits or examinations
could have an adverse effect on our business, prospects, financial condition and results of operations, including our after-tax profitability
and financial condition.
FF's
potential future after-tax profitability may also be adversely impacted by changes in the relevant tax laws and tax rates, treaties,
regulations, administrative practices and principles, judicial decisions and interpretations thereof, in each case, possibly with retroactive
effect. Additionally, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS recently entered into force
among the jurisdictions that have ratified it, although the United States has not yet entered into this convention. These recent changes
could negatively impact FF's taxation, especially if FF expands its relationships and operations internationally.
FF's
failure to timely and effectively implement controls and procedures required by Section 404(a) of the Sarbanes-Oxley Act of 2002 (the
"Sarbanes-Oxley Act") could have a material adverse effect on its business.
The
standards required for a public company under Section 404(a) of the Sarbanes-Oxley Act are significantly more stringent than those required
of Legacy FF as a privately-held company. Management may not be able to effectively and timely implement controls and procedures that
adequately respond to the increased regulatory compliance and reporting requirements that are now applicable after the consummation of
the Business Combination. As described in "
Risk Factors – Risks Related to the Restatement – FF has identified material
weaknesses in its internal control over financial reporting. If FF is unable to remediate these material weaknesses, or if it identifies
additional material weaknesses in the future or otherwise fails to maintain effective internal control over financial reporting, could
result in material misstatements in FF's consolidated financial statements and FF's inability to accurately or timely report
its financial condition or results of operations, which may adversely affect FF's business and share price.
"
management
has identified material weaknesses in the Company's internal control over financial reporting. If FF does not remediate such material
weaknesses, or if other material weaknesses are identified, or if FF is not able to implement the additional requirements of Section
404(a) in a timely manner or with adequate compliance, it may not be able to assess whether its internal controls over financial reporting
are effective, which may subject it to adverse regulatory consequences and could harm investor confidence and the market price of its
securities.
62
FF
may issue additional shares of Common Stock or preferred shares, which would dilute the interest of FF stockholders.
FF
has and may, in the future, issue a substantial number of additional shares of Common Stock or preferred stock. The issuance of additional
shares of Common Stock or preferred stock:
●
may
                                            significantly dilute the equity interest of investors;
●
may
                                            subordinate the rights of holders of Common Stock if preferred stock is issued with rights
                                            senior to those afforded our Common Stock;
●
could
                                            cause a change of control if a substantial number of shares of our Common Stock are issued,
                                            which may affect, among other things, our ability to use our net operating loss carry forwards,
                                            if any, and could result in the resignation or removal of our present officers and directors;
                                            and
●
may
                                            adversely affect prevailing market prices for our Common Stock.
Sales
of a substantial number of shares of our Class A Common Stock in the public market, including the resale of the shares of Common Stock
held by FF stockholders pursuant to Rule 144, could occur at any time. These sales, or the perception in the market that the holders
of a large number of shares of Common Stock intend to sell shares, could reduce the market price of the Class A Common Stock.
In
addition, as of October 8, 2024, the Class A Common Stock was also subject to potential dilution from: (i) conversion of notes and exercise
of warrants for which 26,134 shares have been registered; (ii) conversion of notes which have satisfied the holding period subject to
Rule 144 eligibility; (iii) the exercise of up to 1,296,410 warrants; (iv) the exercise of up to 2,879 stock options; (v) the vesting
of 1,516,942 unvested RSUs; (vi) the issuance of up to 868 earnout shares pursuant to the triggering events in the merger agreement; (vii)
the issuance of up to 803 remaining registered shares of Class A Common Stock that FF may elect, in its sole discretion, to issue and
sell to YA II PN Ltd. ("Yorkville") pursuant to the SEPA (as defined in Note 2,
Liquidity and Capital Resources and
Going Concern,
to the Notes to Consolidated Financial Statements) (FF currently does not have enough authorized and uncommitted
shares to access the SEPA); (viii) issuance of shares in connection with the ATM Program. Additionally, the Class A Common Stock is subject
to potential dilution upon the full conversion and exercise of the SPA Notes, SPA Warrants, Original Unsecured SPA Notes, Pre-existing
SPA Notes and Pre-existing SPA Warrants. The Class A Common Stock is also subject to potential dilution due to issuance of Common Stock
in connection with future equity and/or convertible debt financings. Sales of substantial numbers of such shares in the public market,
including the resale of the shares of Common Stock held by FF stockholders, could adversely affect the market price of the Class A Common
Stock, the impact of which is increased as the value of our stock price increases.
The
issuance of additional shares of Common Stock, including upon full conversion of the principal amount of all outstanding notes and warrants
and/or the implementation of the full ratchet anti-dilution price protection in the notes and warrants would substantially dilute the
ownership interest of existing stockholders
The
shares of Class A Common Stock issuable upon full conversion and exercise of the SPA Notes, Pre-existing SPA Notes and the SPA Warrants
and Pre-existing SPA Warrants issued and issuable under the SPA and Pre-existing SPA, as amended, upon full conversion of the note issued
pursuant to Original Unsecured SPA, and upon full conversion and exercise of the Streeterville Note and the Streeterville Warrant will
result in significant additional dilution to the existing stockholders of FF. At a special meeting of FF stockholders held on November
3, 2022, FF stockholders approved (among other proposals) a proposal to approve, as is required by the applicable Nasdaq rules and regulations,
transactions involving notes and warrants issued to certain investors as committed under the SPA, the Joinder and the Third Amendment,
including the issuance of any shares in excess of 19.99% of the issued and outstanding shares of the Common Stock upon conversion of the
Pre-existing SPA Notes and exercise of the Pre-existing SPA Warrants. At a special meeting of FF stockholders held on March 30, 2023,
FF stockholders approved (among other proposals) a proposal to approve, as is required by the applicable Nasdaq rules and regulations,
additional transactions involving notes and warrants issued to certain investors as committed under the Sixth Amendment to the Pre-existing
SPA. At a special meeting of FF stockholders held on August 16, 2023, FF stockholders approved (among other proposals), as is required
by the applicable Nasdaq rules and regulations, additional transactions involving notes and warrants issued to MHL, V W Investment and
Senyun under the Original Unsecured SPA, as amended. At a special meeting of FF stockholders held on February 5, 2024, FF stockholders
approved (among other proposals), as is required by the applicable Nasdaq rules and regulations, additional transactions involving notes
and warrants issued to Streeterville Capital, LLC ("Streeterville") under the Unsecured Streeterville SPA. To the extent the
Pre-existing SPA Notes, the Notes issued pursuant to notes issued pursuant to Original Unsecured SPA and the Streeterville Note are converted
and the Pre-existing SPA Warrants and the Streeterville Warrant are exercised, such conversions and exercises would have a significant
dilutive effect on the ownership interest of existing stockholders of FF.
63
FF
has granted preferential director nomination rights to certain investors which may cause FF to fall out of compliance with Nasdaq listing
rules.
FF
has been raising additional capital via debt or equity financings and expects to continue doing so in order to continue its operations.
See "
Risk Factors – Risks Related to FF's Business and Industry – FF does not have sufficient liquidity
to pay its outstanding obligations and to operate its business and it will likely file for bankruptcy protection if it is unable to access additional
capital
." As discussed above, the sale of additional equity or convertible debt securities could result in further dilution
of the equity interests of our existing stockholders. Additionally, FF has entered into arrangements with certain of stockholders that
give them additional representation on the Board. Pursuant to the Amended Shareholder Agreement, FF Top has the right to nominate for
election to the Board four designees until the first date on which FF Top has ceased to beneficially own at least 88,890 shares of Common
Stock for at least 365 consecutive days, with such amount subject to adjustment in connection with any stock split, reverse stock split
or other similar corporate action after the date of the Amended Shareholder Agreement. Following the termination of FF Top's right
to nominate four designees, FF Top will continue to have the right to nominate a number of designees not less than the number equal to
the total number of directors on the Board, multiplied by the aggregate voting power of the shares of Common Stock and other securities
of FF generally entitled to vote in the election of directors of FF beneficially owned by FF Top and its affiliates, divided by the total
voting power of the then-outstanding shares of Common Stock issued as of the record date for any meeting of stockholders of FF at which
directors are to be elected, rounding up to the next whole director. Such right granted to FF Top or other similar rights granted to
other investors in the future may cause FF to fall out of compliance with certain of Nasdaq's listing rules, in particular Nasdaq
Rule 5640, which disallows the voting rights of existing stockholders to be disparately reduced through any corporate action or issuance,
and cause FF's Class A Common Stock to be delisted from Nasdaq.
FF's
Amended and Restated Charter provides, subject to limited exceptions, that the Court of Chancery of the State of Delaware will be the
sole and exclusive forum for certain stockholder litigation matters, which could limit FF's stockholders' ability to obtain
a chosen judicial forum for disputes with it or its directors, officers, employees or stockholders.
FF's
Amended and Restated Charter requires to the fullest extent permitted by law, that derivative actions brought in our name, actions against
directors, officers and employees for breach of fiduciary duty and other similar actions may be brought in the Court of Chancery in the
State of Delaware or, if that court lacks subject matter jurisdiction, another federal or state court situated in the State of Delaware.
Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and
consented to the forum provisions in our certificate of incorporation. In addition, our Amended and Restated Charter provides that the
federal district courts of the United States will be the exclusive forum for the resolution of any complaint asserting a cause of action
under the Securities Act and the Exchange Act.
In
March 2020, the Delaware Supreme Court issued a decision in
Salzburg et al. v. Sciabacucchi
, which found that an exclusive
forum provision providing for claims under the Securities Act to be brought in federal court is facially valid under Delaware
law. It is unclear whether this decision will be appealed, or what the final outcome of this case will be. We intend to enforce this
provision, but we do not know whether courts in other jurisdictions will agree with this decision or enforce it.
64
This
choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum of its choosing for disputes with
us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims. Alternatively,
if a court were to find the choice of forum provision contained in our Amended and Restated Charter to be inapplicable or unenforceable
in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm its business,
operating results and financial condition.
Charter
documents and Delaware law could prevent a takeover that stockholders consider favorable and could also reduce the market price of the
Common Stock.
FF's
Amended and Restated Charter and Amended and Restated Bylaws contain provisions that could delay or prevent a change in control of FF.
These provisions could also make it more difficult for stockholders to elect directors and take other corporate actions. These provisions
include:
●
authorizing
                                            the Board to issue preferred stock with voting or other rights or preferences that could
                                            discourage a takeover attempt or delay changes in control;
●
prohibiting
                                            cumulative voting in the election of directors;
●
limiting
                                            the adoption, amendment or repeal of FF's Amended and Restated Bylaws or the repeal
                                            of the provisions of our Amended and Restated Charter regarding the election and removal
                                            of directors without the required approval of at least two-thirds of the shares entitled
                                            to vote at an election of directors;
●
prohibiting
                                            stockholder action by written consent; and
●
limiting
                                            the persons who may call special meetings of stockholders.
These
provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult
for stockholders to replace members of our Board, which is responsible for appointing the members of our management. In addition, the
provisions of Section 203 of the Delaware General Corporate Law ("DGCL") govern FF. These provisions may prohibit large stockholders,
in particular those owning 15% or more of our outstanding voting stock, from merging or combining with FF for a certain period of time
without the consent of its Board. These and other provisions in our Amended and Restated Charter and Amended and Restated Bylaws and
under Delaware law could discourage potential takeover attempts, reduce the price investors might be willing to pay in the future for
shares of Class A Common Stock and result in the market price of Class A Common Stock being lower than it would be without these provisions.
Claims
for indemnification by FF's directors and officers may reduce its available funds to satisfy successful third-party claims against
it and may reduce the amount of money available to it.
Our
Amended and Restated Charter and Amended and Restated Bylaws provide that we will indemnify our directors and officers, in each case
to the fullest extent permitted by Delaware law.
In
addition, as permitted by Section 145 of the DGCL, our Amended and Restated Bylaws and our indemnification agreements that we entered
into with our directors and officers provide that:
●
We
                                            will indemnify our directors and officers for serving FF in those capacities or for serving
                                            other business enterprises at our request, to the fullest extent permitted by Delaware law.
                                            Delaware law provides that a corporation may indemnify such person if such person acted in
                                            good faith and in a manner such person reasonably believed to be in or not opposed to the
                                            best interests of the registrant and, with respect to any criminal proceeding, had no reasonable
                                            cause to believe such person's conduct was unlawful;
65
●
We
                                            may, in our discretion, indemnify employees and agents in those circumstances where indemnification
                                            is permitted by applicable law;
●
We
                                            will be required to advance expenses, as incurred, to our directors and officers in connection
                                            with defending a proceeding, except that such directors or officers will undertake to repay
                                            such advances if it is ultimately determined that such person is not entitled to indemnification;
●
The
                                            rights conferred in our Amended and Restated Bylaws are not exclusive, and we are authorized
                                            to enter into indemnification agreements with our directors, officers, employees and agents
                                            and to obtain insurance to indemnify such persons; and
●
We
                                            may not retroactively amend provisions of our Amended and Restated Bylaws to reduce our indemnification
                                            obligations to directors, officers, employees and agents.
FF's
dual-class structure may depress the trading price of the Class A Common Stock.
We
cannot predict whether FF's dual-class structure will result in a lower or more volatile market price of the Class A Common Stock
or in adverse publicity or other adverse consequences. For example, certain index providers have announced restrictions on including
companies with multiple-class share structures in certain of their indexes. S&P Dow Jones and FTSE Russell have announced changes
to their eligibility criteria for inclusion of shares of public companies on certain indices, including the S&P 500, pursuant to
which companies with multiple classes of shares of common stock are excluded. In addition, several stockholder advisory firms have announced
their opposition to the use of multiple-class structures. As a result, the dual-class structure of the Common Stock may cause stockholder
advisory firms to publish negative commentary about FF's corporate governance practices or otherwise seek to cause us to change
our capital structure. Any such exclusion from indices or any actions or publications by stockholder advisory firms critical of our corporate
governance practices or capital structure could adversely affect the value and trading market of the Class A Common Stock.
If
securities or industry analysts do not publish research or reports about FF's business or publish negative reports about its business,
its share price and trading volume could decline.
The
trading market for our Class A Common Stock will depend on the research and reports that securities or industry analysts publish about
us or our business. If one or more of the analysts who cover FF downgrade our shares or change their opinion of our shares, our share
price would likely decline. If one or more of these analysts cease coverage of FF or fail to regularly publish reports on FF, we could
lose visibility in the financial markets, which could cause our share price or trading volume to decline.
FF
has incurred and will continue to incur increased expenses and administrative burdens as a public company, which could have an adverse
effect on its business, financial condition and results of operations.
Following
the consummation of the Business Combination, FF has incurred and will continue to incur increased legal, accounting, administrative
and other costs and expenses as a public company that Legacy FF did not incur as a private company. The Sarbanes-Oxley Act ,
including the requirements of Section 404, to the extent applicable to FF, as well as rules and regulations subsequently implemented
by the SEC, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the rules and regulations promulgated
and to be promulgated thereunder, the PCAOB and the securities exchanges, impose additional reporting and other obligations on public
companies. Compliance with public company requirements will increase costs and make certain activities more time consuming. Under a number
of those requirements, we have to carry out activities Legacy FF has not done previously. For example, FF has created committees of the
Board and adopted internal controls and disclosure controls and procedures. In addition, expenses associated with SEC reporting requirements
are incurred on a continuous basis. Furthermore, if any issues in complying with those requirements are identified (for example, if FF
identifies additional material weaknesses or significant deficiency in internal control over financial reporting), we would incur additional
costs rectifying those issues, and the existence of those issues could adversely affect our reputation or investor perceptions of it.
It may also be more expensive to obtain director and officer liability insurance. Risks associated with our status as a public company
may make it more difficult to attract and retain qualified persons to serve on our Board or as executive officers. The additional reporting
and other obligations imposed by these rules and regulations will increase legal and financial compliance costs and the costs of related
legal, accounting and administrative activities. These increased costs will require us to divert a significant amount of money that could
otherwise be used to expand the business and achieve strategic objectives. Advocacy efforts by stockholders and third parties may also
prompt additional changes in governance and reporting requirements, which could further increase costs.
66
Furthermore,
the need to establish the corporate infrastructure demanded of a public company may divert management's attention from implementing
our growth strategy, which could prevent us from improving our business, results of operations and financial condition. We have made,
and will continue to make, changes to our internal controls and procedures for financial reporting and accounting systems to meet our
reporting obligations as a publicly traded company. However, the measures we take may not be sufficient to satisfy our obligations as
a publicly traded company.
For
as long as we remain an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the
"JOBS Act"), we may take advantage of certain exemptions from various reporting requirements that are applicable to other
public companies that are not "emerging growth companies." See "
The JOBS Act permits "emerging growth companies"
like FF to take advantage of certain exemptions from various reporting requirements applicable to other public companies that are not
emerging growth companies. The reduced reporting requirements applicable to us may make FF's shares of Common Stock less attractive
to investors
" for more information. There is no guarantee that the exemptions available to us under the JOBS Act will result
in significant savings. To the extent we choose not to use exemptions from various reporting requirements under the JOBS Act, we
will incur additional compliance costs, which may impact earnings.
The JOBS Act permits
"emerging growth companies" like FF to take advantage of certain exemptions from various reporting requirements applicable
to other public companies that are not emerging growth companies. The reduced reporting requirements applicable to us may make FF's
shares of Common Stock less attractive to investors.
FF
qualifies as an "emerging growth company" as defined in Section 2(a)(19) of the Securities Act, as modified by the JOBS
Act. As such, FF is eligible for and intends to take advantage of certain exemptions from various reporting requirements applicable to
other public companies that are not emerging growth companies for as long as it continues to be an emerging growth company, including,
but not limited to, (a) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act,
(b) reduced disclosure obligations regarding executive compensation in FF's periodic reports and proxy statements and (c) exemptions
from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute
payments not previously approved. As a result, FF's stockholders may not have access to certain information they may deem important.
FF will remain an emerging growth company until the earliest of (i) the last day of our fiscal year following July 24, 2025 (the fifth
anniversary of the consummation of PSAC's initial public offering), (ii) the last day of the fiscal year in which the market value
of FF's shares of Common Stock that are held by non-affiliates exceeds $700.0 million as of June 30 of that fiscal year, (iii)
the last day of the fiscal year in which we have total annual gross revenue of $1.235 billion or more during such fiscal year (as
indexed for inflation) or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt in the prior three-year
period. We cannot predict whether investors will find FF's securities less attractive because it will rely on these exemptions.
If some investors find FF's securities less attractive as a result of its reliance on these exemptions, the trading prices of FF's
securities may be lower than they otherwise would be, there may be a less active trading market for FF's securities and the trading
prices of FF's securities may be more volatile.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply
with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected
not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application
dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of FF's financial statements with another public company which is neither
an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible
because of the potential differences in accounting standards used. We cannot predict if investors will find our shares of Common Stock
less attractive because we will rely on these exemptions. If some investors find our shares of Common Stock less attractive as a result,
there may be a less active market for our shares of Common Stock and our share price may be more volatile.
If FF has not fully
developed and implemented all required accounting practices and policies and has been unable to provide the financial information required
of a U.S. publicly traded company in a timely and reliable manner.
We
have failed to develop and maintain effective internal controls and procedures and disclosure procedures and controls, we have been unable
to provide financial information and required SEC reports that a U.S. publicly traded company is required to provide in a timely and reliable
fashion. Any such delays or deficiencies could penalize us, including by limiting our ability to obtain financing, either in the public
capital markets or from private sources and hurt our reputation and could thereby impede our ability to implement our growth strategy.
The delay in filing the 2023 Form 10-K has resulted in our failure to meet the requirements for listing of our shares of Common Stock
on Nasdaq.
67
SELECTED HISTORICAL FINANCIAL DATA
On August 16, 2024, we effected
a 1-for-40 reverse stock split of our common stock. The following selected historical financial data was derived from our historical financial
statements that have been incorporated by reference into this prospectus, and recasts certain portions of such financial statements to
give effect to the reverse stock split. No other changes to our historical financial statements were made in recasting the amounts set
forth below.
Consolidated Statements of Operations Data
Years Ended December 31,
(in thousands, except shares)
2023
2022
Revenue
$
784
$
-
Cost of revenues
42,607
-
Gross loss
(41,823
)
-
Total operating expenses
244,231
437,144
Loss before income taxes
(431,635
)
(602,178
)
Net Loss
$
(431,744
)
$
(602,239
)
Per share information
Net loss per share of Class A and B Stock attributable to common stockholders:
Basic
$
(1,792.44
)
$
(15,742.34
)
Diluted
$
(1,792.44
)
$
(15,742.34
)
Weighted average common shares used in computing net loss per share of Class A and Class B Common Stock
(1)
Basic
240,869
38,256
Diluted
240,869
38,256
Three Months Ended
March 31,
2024
2023
Revenue
$
2
$
-
Cost of revenues
20,687
-
Gross loss
(20,685
)
-
Total operating expenses
22,923
95,484
Loss before income taxes
(48,217
)
(144,973
)
Net Loss
$
(48,217
)
$
(144,973
)
Per share information
Net loss per share of Class A and B Stock attributable to common stockholders:
Basic
$
(26.23
)
$
(1,928.76
)
Diluted
$
(26.23
)
$
(1,928.76
)
Weighted average common shares used in computing net loss per share of Class A and Class B Common Stock
(1)
Basic
1,837,959
75,164
Diluted
1,837,959
75,164
68
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenue
$
293
$
-
$
295
$
-
Cost of revenues
20,970
6,613
41,657
6,613
Gross profit
(20,677
)
(6,613
)
(41,362
)
(6,613
)
Total operating expenses
29,932
49,366
52,855
145,214
Loss before income taxes
(108,681
)
(124,900
)
(156,898
)
(269,873
)
Net Loss
$
(108,685
)
$
(124,928
)
$
(156,902
)
$
(269,901
)
Per share information
Net loss per share of Class A and B Common Stock attributable to common stockholders:
Basic
$
(12.38
)
$
(1,002.03
)
$
(29.41
)
$
(2,688.44
)
Diluted
$
(12.38
)
$
(1,002.03
)
$
(29.41
)
$
(2,688.44
)
Weighted average shares used in computing net loss per share of Class A and Class B Common Stock
(1)
Basic
8,778,201
124,675
5,334,381
100,393
Diluted
8,778,201
124,675
5,334,381
100,393
(1)
Adjusted to give effect to
1-for-40 reverse stock split that became effective on August 16, 2024.
Consolidated Balance Sheet Data
December 31,
December 31,
(in thousands, except shares)
2023
2022
Total current assets
$
91,364
$
84,526
Total assets
530,539
529,288
Total current liabilities
261,176
268,245
Total liabilities
302,303
328,296
Class A Common Stock, $0.0001 par value; 99,815,625 and 99,815,625
shares authorized; 1,060,833 and 58,682 shares issued and outstanding as of December 31, 2023 and 2022, respectively
(1)
-
-
Class B Common Stock, $0.0001 par value; 4,429,688 and 4,429,688
shares authorized; 6,667 and 6,667 shares issued and outstanding as of December 31, 2023 and 2022, respectively
(1)
-
-
Preferred Stock, $0.0001 par value, 10,000,000 shares authorized; zero shares
issued and outstanding as of December 31, 2023 and 2022, respectively
(1)
-
-
Additional paid-in capital
4,180,873
3,724,242
Accumulated other comprehensive gain
5,862
3,505
Accumulated deficit
(3,958,499
)
(3,526,755
)
Total stockholders' equity
228,236
200,992
Total liabilities and stockholders' equity
530,539
529,288
69
March 31,
December 31,
2024
2023
(Unaudited)
Total current assets
$
82,736
$
91,364
Total assets
499,941
530,539
Total current liabilities
256,990
261,176
Total liabilities
298,422
302,303
Class A Common Stock, $0.0001 par value; 99,815,625 and 99,815,625
shares authorized; 11,031,625 and 1,060,833 shares issued and outstanding as of March 31, 2024 and December 31, 2023,
respectively
(1)
-
-
Class B Common Stock, $0.0001 par value; 4,429,688 and 4,429,688
shares authorized; 6,667 and 6,667 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
(1)
-
-
Preferred Stock, $0.0001 par value, 10,000,00 shares authorized; 10,000,000 shares
issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
(1)
-
-
Additional paid-in capital
4,202,141
4,180,873
Accumulated other comprehensive gain
6,094
5,862
Accumulated deficit
(4,006,716
)
(3,958,499
)
Total stockholders' equity
201,519
228,236
Total liabilities and stockholders' equity
499,941
530,539
June 30,
December 31,
2024
2023
(Unaudited)
Total current assets
$
70,071
$
91,364
Total assets
457,888
530,539
Total current liabilities
268,161
261,176
Total liabilities
309,206
302,303
Class A Common Stock, $0.0001 par value; 99,815,625 and 99,815,625
shares authorized; 11,031,625 and 1,060,833 shares issued and outstanding as of June 30, 2024 and December 31, 2023,
respectively
(1)
1
-
Class B Common Stock, $0.0001 par value; 4,429,688 and 4,429,688
shares authorized; 6,667 and 6,667 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
(1)
-
-
Preferred Stock, $0.0001 par value, 10,000,000 shares authorized; 10,000,000
and zero shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
(1)
-
-
Additional paid-in capital
4,257,356
4,180,873
Accumulated other comprehensive gain
6,726
5,862
Accumulated deficit
(4,115,401
)
(3,958,499
)
Total stockholders' equity
148,682
228,236
Total liabilities and stockholders' equity
457,888
530,539
(1)
Adjusted to give effect to
1-for-40 reverse stock split that became effective on August 16, 2024.
70
USE OF PROCEEDS
All of the Class A Common
Stock offered by the Selling Securityholders pursuant to this prospectus will be sold by the Selling Securityholders for their respective
accounts. The Company will not receive any of the proceeds from these sales.
The Selling Securityholders
will pay any underwriting fees, discounts and selling commissions incurred by such Selling Securityholders in disposing of their Class
A Common Stock. Pursuant to a registration rights agreement entered into by FFIE and certain stockholders of FFIE, FFIE will bear all
other costs, fees and expenses incurred in effecting the registration of the Class A Common Stock covered by this prospectus, including,
without limitation, all registration and filing fees, Nasdaq listing fees and fees and expenses of counsel and independent registered
public accountants.
DETERMINATION OF OFFERING PRICE
The offering price of the
shares of the Class A Common Stock underlying the SPA Notes, SPA Warrants and PA Warrants offered hereby is determined by reference to
the conversion and exercise prices of the SPA Notes, SPA Warrants and PA Warrants, respectively, as applicable.
We cannot currently determine
the price or prices at which shares of Class A Common Stock may be sold by the Selling Securityholders under this prospectus.
MARKET INFORMATION FOR CLASS A COMMON STOCK
AND DIVIDEND POLICY
Market Information
Our shares of Class A Common
Stock and Public Warrants are currently listed on Nasdaq under the symbols "FFIE" and "FFIEW," respectively. Prior
to the consummation of the Business Combination, our Common Stock and Public Warrants were listed on Nasdaq under the symbols "PSAC"
and "PSACW," respectively. As of October 28, 2024, there were 442 holders of record of our Class A Common Stock, one holder
of our Class B Common Stock, three holder of record of our Public Warrants, and one holder of warrants included in the private units purchased
in connection with the initial public offering of PSAC ("Private Warrants").
Dividend Policy
We have not paid any cash
dividends on our Class A Common Stock or the warrants to date. Our Board may from time to time consider whether or not to institute a
dividend policy. It is our present intention to retain any earnings for use in our business operations and accordingly, we do not anticipate
our Board declaring any dividends in the foreseeable future. The payment of cash dividends in the future will be dependent upon our revenues
and earnings, if any, capital requirements and general financial condition. The payment of any cash dividends will be within the discretion
of our Board. Further, our ability to declare dividends will also be limited by restrictive covenants contained in our debt agreements.
71
Securities Authorized for Issuance Under Equity Incentive Plan
2021 Stock Incentive Plan
("2021 SI Plan")
In
July 2021, the Company adopted the 2021 SI Plan. The 2021 SI Plan allows the Board to grant incentive and nonqualified stock options,
restricted shares, unrestricted shares, restricted share units, and other stock-based awards for Class A Common Stock to employees, directors,
and non-employees. At the special meeting held on August 16, 2023, the Company's stockholders approved (among other proposals) an
amendment to the 2021 SI Plan to increase the number of shares of Class A Common Stock available for issuance under the 2021
SI Plan by an additional 861,608 shares.
As
a result of the February 2024 Reverse Stock Split on March 1, 2024, the number of shares of Class A Common Stock reserved for issuance
under the 2021 SI Plan, the Company's Equity Incentive Plan, and the Company's Special Talent Incentive Plan (the "Plans"),
as well as the number of shares subject to the then-outstanding awards under each of the Plans, were proportionately adjusted, using the
1-for-3 ratio, rounded down to the nearest whole share. In addition, the exercise price of the then-outstanding stock options under each
of the Plans was proportionately adjusted, using the 1-for-3 ratio, rounded up to the nearest whole cent.
As of June 30, 2024 and December 31,
2023, the Company had 64,673 and 26,678 shares of Class A Common Stock available for future issuance under its 2021 SI
Plan after giving effect to the 1-for-40 reverse stock split
..
At
the annual meeting of stockholders held on July 31, 2024, the Company's stockholders approved (among other proposals) an amendment
to the 2021 SI Plan to increase the number of shares of Class A Common Stock available for issuance under the 2021 SI Plan by an additional
2.2
million
shares,
after giving effect to the 1-for-40 reverse stock split
.
SOP/SOD
Incentive Plan
On
February 23, 2023, the Board approved the Company's SOP/SOD Incentive Plan ("Incentive Plan") granting: (i) cash bonuses
to all active employees of the Company that began employment at the Company prior to December 31, 2022 upon the commencement of the start
of production of the Company's FF 91 Futurist on or prior to March 31, 2023 and (ii) cash bonuses and equity incentive awards to
all active employees of the Company that began employment at the Company prior to December 31, 2022 upon the commencement of the start
of delivery of the Company's FF 91 Futurist on or prior to April 30, 2023 ("Delivery Condition").
On
August 17, 2023, the Board approved an amendment to the Incentive Plan ("Incentive Plan Amendment") to reflect the updated
timing of the previously announced FF 91 2.0 Futurist Alliance phase two of its Delivery Plan from the end of April 2023 to the end of
the second quarter 2023 and subsequently to August 2023. The Incentive Plan Amendment is available to all active employees of the Company
that began employment at the Company prior to July 1, 2023 and reduced the cash bonuses and milestone based restricted stock units ("RSUs")
by 10% for the internal Company sign-off on requirements to commence phase two of the Company's Delivery Plan on or prior to
July 31, 2023 ("New Delivery Condition"). Pursuant to the Incentive Plan Amendment, RSU awards will be granted after the Company
has sufficient additional shares available for such issuance ("Share Issuance Condition") and cash bonuses will be paid once
the Company has received an additional $15.0 million in financings.
The
Incentive Plan Amendment includes the grant of RSUs to certain executive officers of the Company upon the Company's satisfaction
of the New Delivery Condition and the Share Issuance Condition with a grant date fair market value of approximately $8.0 million,
subject to vesting in three annual installments on the first three anniversaries of the grant date, generally subject
to the applicable executive's continuous employment through each applicable vesting date. In addition, subject to the Share Issuance
Condition, upon the satisfaction of the New Delivery Condition and continuing for an eight-year period, certain executive officers
will annually receive a grant of fully-vested RSUs with a grant date fair market value of $0.8 million, subject to their continued
employment through each grant date of the award.
During
the three and six months ended June 30, 2024, the Company recognized a reduction of $1.3 million and $1.1 million of cash bonus
expense under the Incentive Plan, respectively. As a result of the Share Issuance Condition not yet being met, no RSUs have been granted
under the Incentive Plan.
During
the six months ended
June 30
, 2024, the Company granted 763,889 RSUs, which had a weighted-average
grant date fair value of $0.19 per share. As of June 30, 2024, the total remaining stock-based compensation expense for unvested
RSUs was $0.4 million, which is expected to be recognized over a weighted-average period of 0.72 years.
In
addition to the above, the Company granted 1,524,879 RSUs in September of 2024, with a weighted average grant date fair value of $3.99.
72
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion
and analysis is intended to help the reader understand FF's results of operations and financial condition. This discussion and analysis
is provided as a supplement to, and should be read in conjunction with, FF's audited consolidated financial statements and FF's
unaudited condensed consolidated financial statements and notes thereto included elsewhere in this prospectus. Some of the information
contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to FF's
plans and strategy for FF's business, includes forward-looking statements that involve risks and uncertainties. FF's actual
results may differ materially from management's expectations as a result of various factors, including but not limited to those
discussed in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements."
The objective of this section is to provide investors an understanding of the financial drivers and levers in FF's business and
describe the financial performance of the business.
Availability of Information
We
make available through our company website, free of charge, our company filings with the Securities and Exchange Commission (the "SEC")
as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC. The reports we make available include
annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, registration statements, and
any amendments to those documents. The website link to our SEC filings is investors.ff.com/financial-information/sec-filings.
We
intend to use press releases, our Investor Relations website, investor.ff.com, and certain social media accounts as a means of disclosing
information and observations about the Company and its business that may be of interest or material to our investors, material, non-public
information, and for complying with our disclosure obligations under Regulation FD: Instagram, Facebook, X, LinkedIn, YouTube, FF App,
WeChat, Weibo, Toutiao, Douyin, and Futu. The information and observations we post through these social media channels may be deemed material.
Accordingly, investors should monitor the Investor Relations website and these social media channels, in addition to following our press
releases, filings with the SEC, public conference calls, presentations, and webcasts. The social media channels that we intend to use
as a means of disclosing the information described above may be updated from time to time. The information contained on, or that may be
accessed through, our website or social media channels, is not incorporated by reference into, and is not a part of, this Report or any
other report or document filed with the SEC. Any reference to our website in this Report is intended to be an inactive textual reference
only.
Overview
The
Company is a California-based, global, shared, intelligent, mobility ecosystem company is a global, shared, intelligent, mobility ecosystem
company with a vision to disrupt the automotive industry.. The Company is a holding company incorporated in the State of Delaware on February
11, 2020, conducts its operations through the subsidiaries of FF Intelligent Mobility Global Holdings Ltd. ("Legacy FF"),
which was founded in 2014 and is headquartered in Los Angeles, California. Our Class A Common Stock and Public Warrants trade on The Nasdaq
Capital Market ("Nasdaq") under the ticker symbols "FFIE" and "FFIEW," respectively.
FF
designs and engineers next-generation intelligent, connected, electric vehicles. We manufacture vehicles at our production facility in
Hanford, California (the "FF ieFactory California"), with additional future production capacity needs addressed through a
contract manufacturing agreement with Myoung Shin Co., Ltd. ("Myoung Shin"), an automotive manufacturer headquartered in South
Korea. We have additional engineering, sales, and operational capabilities in China and are exploring opportunities for potential manufacturing
capabilities in China through a joint venture or other arrangements.
73
Since
our founding, we have created major innovations in technology, products, and a user-centered business model. We believe these innovations
will enable us to set new standards in luxury and performance that will redefine the future of intelligent mobility.
We
believe the following combination of capabilities of our products, technology, the upgrade to FF Product and Technology Upgrade Generation
2.0 (PT Gen 2.0), team, and business model distinguish us from our competitors:
●
We have designed and developed a breakthrough mobility platform — our proprietary Variable
Platform Architecture ("VPA").
●
Our propulsion system provides a competitive edge in acceleration and range, enabled by an expected industry-leading
inverter design, and propulsion system.
●
Our advanced Internet Artificial Intelligence ("I.A.I.") technology offers high-performance
computing, high speed internet connectivity, Over-the-Air ("OTA") updating, an open ecosystem for third-party application
integration, and an advanced autonomous driving-ready system, in addition to several other proprietary innovations that enable us to build
an advanced, highly-personalized user experience.
●
Since inception, we have developed a portfolio of intellectual property, established our supply chain,
and assembled a global team of automotive and technology experts and innovators to achieve our goal of redefining the future of the automotive
industry. As of June 30, 2024, we have been granted approximately 660 patents globally.
●
We believe that the FF 91 Futurist (the "FF 91," "FF 91 Futurist," or "FF
91 2.0 Futurist Alliance") is the first ultra-luxury electric vehicle to offer a highly-personalized, fully-connected user experience
for driver and passengers. We started production on the first FF 91 Futurist and delivered the first FF 91 2.0 Futurist Alliance in 2023.
●
Our planned B2C passenger vehicle pipeline includes the FF91 series, the FF81 series, and the FF71 series.
●
Subject to future financing, we plan to produce and deliver our second passenger vehicle, the FF 81, which
is expected to be designed to be a premium, mass-market electric vehicle positioned to compete against the Tesla Model S, Tesla Model
X, the BMW 5-series, the Range Rover Sport and similar vehicles.
●
Subject to future financing, we plan to develop a mass-market passenger vehicle, the FF 71. We expect
to start production and deliveries of the FF 71 subsequent to production and deliveries of the FF 81. The FF 71 is expected to be designed
to integrate full connectivity and advanced technology into a smaller vehicle size and is positioned to compete with vehicles such as
the Tesla Model 3, Tesla Model Y, and the BMW 3-series.
●
Subject to future financing, we plan to develop a Smart Last Mile Delivery ("SLMD") vehicle
to address the high-growth, last-mile delivery opportunity, particularly in Europe, China and the U.S. Our modular VPA facilitates entry
into the last-mile delivery segment, allowing us to expand our total addressable market and avenues of growth.
●
We have updated our corporate strategy to include a China-U.S. Automotive Bridge Strategy (the "Bridge
Strategy"). The Bridge Strategy marks a return to our earlier two-brand strategy, which seeks to distinguish between the spire segment
(FF brand) and mass market segment (second brand) of the EV industry. We intend to seek to establish a second mass market-focused brand
by working with one or more China-based OEMs and parts suppliers ("Bridge Strategy Partners") and to procure quasi-complete
components and parts that we would enhance by adding AI and Vehicle Software technology and product R&D found in our flagship FF 91
brand. This could create a compelling value proposition to consumers in the AI EV mass-market, which is a market that currently has limited
offerings. Via the Bridge Strategy, there is the potential to materially accelerate the production timeline for a mass-market AI EV. While
the mechanical platform of the mass-market product would be from Bridge Strategy Partners, we intend to seek to utilize a component mix
sufficient to reach part level duty by fulfilling the criteria for part supplier and manufacturing requirement. For a discussion of material
risks relating to the Bridge Strategy, please see Part II, Item 1A., Risk Factors – "Our latest business strategy, which we
refer to as the Bridge Strategy, is subject to numerous risks and uncertainties" in the Q1 2024 10-Q.
All
FF vehicles are expected to be available for sale in the U.S., China and the Middle East, with potential expansion to European markets.
74
Emerging Growth Company Status
Section
102(b)(1) of the Jumpstart Our Business Startups Act (the "JOBS Act") exempts emerging growth companies from being required
to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial
accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply
with the requirements that apply to non-emerging growth companies. Any such election to not take advantage of the extended transition
period is irrevocable.
We
are an "emerging growth company" as defined in Section 2(a) of the Securities Act and have elected to take advantage of the
benefits of the extended transition period for new or revised financial accounting standards. We expect to continue to take advantage
of the benefits of the extended transition period, although we may decide to early adopt such new or revised accounting standards to the
extent permitted by such standards. This may make it difficult or impossible to compare our financial results with the financial results
of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage
of the extended transition period exemptions because of the potential differences in accounting standards used.
Segment Information
On
February 26, 2023, after an assessment by the Board of Directors of the Company's management structure, the Board approved our Chief
Product and User Ecosystem Officer (Mr. Yueting Jia, who is also FF's founder) reporting directly to the Board. In addition, the
Board approved our product, mobility ecosystem, I.A.I., and advanced research and development ("R&D") technology departments
reporting directly to the Chief Product and User Ecosystem Officer. The Board also approved our user ecosystem, capital markets, human
resources and administration, corporate strategy and China departments reporting to both the Chief Product and User Ecosystem Officer
and the Global Chief Executive Officer, subject to processes and controls to be determined by the Board after consultation with our management.
Based on his responsibilities within the Company, the Board determined that Mr. Jia is an "officer" of the Company within
the meaning of Section 16 of the Exchange Act and an "executive officer" of the Company under Rule 3b-7 under the Exchange
Act.
We
have determined that our co-Chief Operating Decision Makers ("co-CODMs") are both our Global CEO and our Chief Product and
User Ecosystem Officer. We have determined that we operate in one operating segment and one reportable segment, as the co-CODMs review
financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating
financial performance. Substantially all of our consolidated operating activities, including our long-lived assets, are located within
the United States. Given our early-revenue operating stage, we currently have no concentration exposure to products, services or customers.
75
Recent Developments
●
During the three months ended June 30, 2024, these additional milestones and events took place:
●
As of April 1, 2024, we completed our voluntary recall in the United States through an OTA software update.
●
We announced, on April 9, 2024, the establishment of a Middle Eastern sales entity in Dubai, U.A.E.
●
On April 22, 2024, we announced Werner Wilhelm as Executive Launch Director.
●
On May 29, 2024, we announced plans to share the details of the Bridge Strategy in the following months.
●
In June 2024, we determined that the previously announced future FF 91 Alliance Edition users, Rem D Koolhaas
and Emma Hernan, would not complete the acquisition of their respective FF cars, due to personal reasons.
In
the period subsequent to June 30, 2024, these additional milestones and events took place:
●
On July 20, 2024, we held an interactive investor Community Day at our Los Angeles headquarters.
●
In July 2024, we unveiled our innovative Bridge Strategy, making a return to a two-brand approach.
Recent Governance
Developments
●
On June 9, 2024, Li Han resigned as a director of the Company for personal reasons. Ms. Han also served
as a member of the Nominating and Corporate Governance Committee.
●
On July 31, 2024, we announced the passage of each of the proposals presented at the annual meeting of
stockholders, including the re-election of all members of the Board.
●
On April 18, 2024, Nasdaq notified us that since we had not yet filed our Form 10-K for the year ended
December 31, 2023, we no longer complied with Listing Rule 5250(c)(1). Pursuant to Listing Rule 5810(c)(2)(A), this deficiency was a basis
for delisting (in addition to our failure to maintain a minimum bid price of at least $1.00 per share for the prior 30-consecutive-trading-day
period from November 9, 2023 to December 27, 2023, as previously disclosed). We requested and were granted a hearing from the Nasdaq Hearings
Panel. On June 26, 2024, Nasdaq notified us that the Nasdaq Hearings Panel had granted our request for continued listing on Nasdaq subject
to our compliance with the periodic reporting requirement by July 31, 2024, and the minimum bid price requirement by August 31, 2024.
We met the periodic reporting compliance requirement by filing our Q1 2024 Form 10-Q on July 30, 2024.
76
Recent
Financing Developments
●
Palantir Settlement
In
July 2021, the Company and Palantir entered into a MSA that sets froth the terms of the Palantir's platform hosting arrangement,
which was expected to be used as a central operating system for data and analytics. On April 26, 2023, the Company received a letter from
Palantir providing a notice of dispute regarding the Company's alleged material breach of the MSA. The letter asserted that the
Company had not paid invoices totaling $12.3 million of past due fees. On July 7, 2023, Palantir filed a Demand for Arbitration against
the Company with Judicial Arbitration and Mediations Services, Inc., regarding a dispute between Palantir and the Company over the MSA.
Palantir alleged that the Company had refused to make payments under the MSA. Palantir asserted claims for: (i) breach of contract; (ii)
breach of the covenant of good faith and fair dealing; and (iii) unjust enrichment. Palantir alleged that the amount in controversy was
$41.5 million. On August 4, 2023, the Company submitted its response to Palantir's arbitration demand. The Company's response
included both affirmative defenses and a general denial of all allegations in Palantir's arbitration demand. On March 11, 2024,
the Company and Palantir executed a Settlement and Release Agreement in order to terminate the MSA and resolve the disputes. The Company
agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late payments. This settlement includes mutual
waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and Palantir entered into an amendment to the
Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.75 million in cash, the Company agreed to issue
Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A Common Stock by October 1, 2024. The
August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million shares of Common Stock.
●
Waiver Agreement
On
August 2, 2024, the Company entered into that certain Waiver Agreement with certain investors (each, a "Holder" and, collectively,
the "Holders"), who (a) beneficially own and hold one or more of the following securities of the Company: (i) certain secured
convertible notes of the Company (including any secured convertible notes issued in exchange therefor, collectively, the "Pre-existing
SPA Notes") that were issued pursuant to that certain Securities Purchase Agreement, dated as of August 14, 2022 (as amended, supplemented
or otherwise modified from time to time, the "Pre-existing SPA"), and (ii) certain unsecured convertible notes of the Company
(including any unsecured convertible notes issued in exchange therefore, collectively, the "Original Unsecured Notes", and
together with the Pre-existing SPA Notes, the "Original Notes") that were issued pursuant to that certain Securities Purchase
Agreement, dated as of May 8, 2023 (as amended, supplemented or otherwise modified from time to time, the "Original Unsecured SPA")
and (b) have the right to acquire one or more of: (i) certain additional secured convertible notes issuable in accordance with the terms
to the Pre-existing SPA (the "Additional Secured Notes") and (ii) certain additional unsecured convertible notes (the "Additional
Unsecured Notes", and together with the Additional Secured Notes, the "Additional Notes", and together with the Original
Notes, the "Original SPA Notes"), issuable pursuant to the Unsecured SPA.
Prior
to the Waiver Agreement, the Company had certain obligations under the Pre-existing SPA Notes to pay accrued and unpaid interest and a
make-whole amount of additional interest (the "Make-Whole Amount") in cash in connection with conversions of such Original
SPA Notes . In an effort to reduce the Company's ongoing cash obligations pursuant to such Original SPA Notes and to encourage the
continued conversion of the Original SPA Notes into shares of Common Stock, the Company has agreed to make certain voluntary adjustments
to the Original SPA Notes as described below. Pursuant to the Waiver Agreement, the Company irrevocably agreed that with respect to each
conversion of any Original SPA Notes on or after the effective date of the Waiver Agreement, if the Holder delivers a conversion notice
to the Company at a time that 90% of the VWAP (as defined in the Original SPA Notes ) of the Company's common stock as of the trading
day ended immediately prior to the time at which such Notice of Conversion is delivered to the Company is less than the conversion price
then in effect pursuant to the applicable Pre-existing SPA Notes, the Company shall voluntary reduce the conversion price solely with
respect to such portion of such Original SPA Notes to be converted in accordance with such notice of conversion (and not with respect
to any other portion of such Pre-existing SPA Notes) to such Adjustment Price (the "
Voluntary Adjustment
"). The Company
also agreed, in exchange for the Holder's waiver of any accrued and unpaid interest (if any, as of such conversion date) (an "
Interim
Interest Waiver
") with respect to such aggregate principal of such Original SPA Notes to be converted pursuant to such applicable
Notice of Conversion (the "
Full Voluntary Adjustment
"), to (i) further reduce such Adjustment Price in respect of a
Voluntary Adjustment (as adjusted, each a "
Full Adjustment Price
"); and (ii) issue a number of shares of the Company's
common stock to the Holder such that the aggregate number of shares of common stock to be issued to the Holder in such conversion at such
Full Adjustment Price equals the quotient of (x) the sum of (i) such aggregate principal of such Original SPA Notes to be converted pursuant
to such applicable notice of conversion and (ii) any accrued and unpaid interest thereon, divided by (y) such Adjustment Price prior to
any Interim Interest Waiver. Such Full Voluntary Adjustment shall be applicable until the fifth (5th) business day after the Company delivers
written notice to the Holder electing to revoke such election.
77
Pursuant
to the Waiver Agreement, the Holder irrevocably agreed that instead of receiving the accrued and unpaid interest, each holder of any such
applicable Original SPA Notes shall receive upon conversion of such Original SPA Notes an amount in cash equal to all accrued and unpaid
interest on such Original SPA Notes to such date of conversion (or such cash amount shall be deemed satisfied in full without any payment
of cash by the Company if the Company effects a Full Voluntary Adjustment with respect to the applicable notice of conversion) with respect
to the applicable notice of conversion.
Further
pursuant to the Waiver Agreement, a Holder's right to purchase any Additional Notes in any agreement with the Company (including,
without limitation, the Pre-existing SPA and/or the Original Unsecured SPA, as applicable) shall be extended until the first (1
st
)
anniversary of the effective date of the Waiver Agreement.
●
New Securities Purchase Agreement and its Related Financing Documents.
On
September 5, 2024, the Company entered into the SPA with certain institutional investors as purchasers (the "Investors").
Pursuant to the SPA, the Company has agreed to sell, and the Investors have agreed to purchase, for approximately $30 million, of which
approximately $22.5 million will be paid in cash and approximately $7.5 million will be converted from a previous loan to the Company,
certain Secured Notes, Warrants and Incremental Warrants in two closings. The initial closing occurred on September 12, 2024 and the subsequent
closing occurred on September 30, 2024. Capitalized terms used herein and not otherwise defined shall have the respective meanings set
forth in the Secured Notes.
Secured Notes
Maturity Date; Interest.
Pursuant
to the Secured Notes, interest shall commence accruing on the date thereof at the interest rate of 10% per annum (the "Interest
Rate") and shall be computed on the basis of a 360-day year and twelve 30-day months and shall be payable on a Conversion Date with
respect to the Conversion Amount being converted on such Conversion Date, with any remaining accrued and unpaid Interest payable on the
fifth anniversary of the issuance date thereof (the "Maturity Date") (each, an "Interest Date").
Interest
shall be payable on each Interest Date, to the noteholders on the applicable Interest Date, in shares of Class A Common Stock so long
as there has been no Equity Conditions Failure; provided however, that the Company may, at its option following notice to the noteholders,
pay Interest on any Interest Date in cash or in a combination of cash and shares. Prior to the payment of Interest on an Interest Date,
interest on this Note shall accrue at the Interest Rate and be payable by way of inclusion of the Interest in the Conversion Amount on
each Conversion Date, or upon any redemption, unless in the event of an event of default, in which case the interest rate of the Secured
Notes shall automatically be increased to 18% per annum ("Interest Adjustments"). In the event such default has been cured,
such Interest Adjustments shall cease to be effective as of the calendar day immediately following the date of such cure; provided that
the interest as calculated and unpaid at such increased rate during the continuance of that certain default shall continue to apply to
the extent relating to the days after the occurrence of such default through and including the date of such cure of such default.
The
Maturity Date may be extended by the noteholders under circumstances specified therein. On the Maturity Date, the Company shall pay to
the noteholder an amount in cash representing all outstanding principal, accrued and unpaid interest on such principal and interest and
accrued and unpaid Late Charges. Other than as specifically permitted by the Secured Note, the Company may not prepay any portion of the
outstanding principal and accrued, unpaid interest or accrued and unpaid Late Charges on principal and interest, if any.
78
Conversion
Conversion at Option
of Holder
Each holder of Secured
Notes may convert all, or any part, of the outstanding principal of the Secured Notes, at any time at such holder's option, into
shares of Common Stock, at a conversion price per share of $5.24 (the "Conversion Price"), subject to adjustment under certain
circumstances described in the Secured Notes.
Alternate Conversion
Each holder may alternatively
elect to convert the Secured Notes, at any time at such holder's option, into shares of our Common Stock at the "Alternate
Conversion Price" equal to the lesser of:
●
the Conversion Price then in effect; and
●
the greater of:
o
the floor price of $1.048; and
o
the volume weighted average price of our common stock during the five Trading Days ending and including
the Trading Day immediately preceding the delivery or deemed delivery of the applicable conversion notice.
Limitations on Conversion
Beneficial
Ownership Limitation
. A holder shall not have the right to convert any portion of a Secured Note to the extent that, after giving
effect to such conversion, the holder (together with certain related parties) would beneficially own in excess of 4.99%, or the "Maximum
Percentage", of shares of our Common Stock outstanding immediately after giving effect to such conversion. The Maximum Percentage
may be raised or lowered to any other percentage not in excess of 9.99%, at the option of the holder, except that any increase will only
be effective upon 61 days' prior notice to us.
Exchange
Cap Limitation.
Unless we obtain the approval of our stockholders in accordance with the rules and regulations of the Nasdaq
Capital Market, a maximum of 3,260,603 shares of our common stock (19.99% of the outstanding shares of our common stock on September 5,
2024) shall be issuable upon conversion or otherwise pursuant to the terms of the Secured Notes.
Redemption Rights
Company
Optional Redemption
. The Company has the option to redeem the Secured Notes at a 10% redemption premium to the greater of (i) the
shares of our Common Stock then outstanding under the Secured Notes and (ii) the equity value of our Common Stock underlying the Notes.
The equity value of our Common Stock underlying the Notes is calculated using the greatest closing sale price of our Common Stock during
the period commencing on the date immediately preceding notice of such redemption and ending on the Trading Day immediately prior to the
date the Company makes the entire payment required to be made for such redemption.
Bankruptcy
Event of Default Mandatory Redemption
. Upon any bankruptcy event of default, we shall immediately redeem in cash all amounts due under
the Secured Notes at 25% premium unless the holder waives such right to receive such payment.
Casualty
Event Redemption
. Upon receipt of certain casualty proceeds, each holder of Secured Notes may require us to redeem in cash with the
net proceeds therefrom, the lesser of (x) a 10% redemption premium (or 25% if an event of default has then occurred and is continuing)
to the shares of our Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such casualty event.
Asset
Sale Redemption
. Upon the occurrence of certain asset sales, each holder of Secured Notes may require us to redeem in cash with the
net proceeds therefrom, the lesser of (x) a 10% redemption premium (or 25% if an event of default has then occurred and is continuing)
to the shares of our Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such asset sale.
Extraordinary
Receipt Redemption
. Upon the receipt of an Extraordinary Receipt, each holder of Secured Notes may require us to redeem in cash with
the net proceeds therefrom, the lesser of (x) a 10% redemption premium (or 25% if an event of default has then occurred and is continuing)
to the shares of our Common Stock then outstanding under the Secured Notes and (y) all of the net cash proceeds of such Extraordinary
Receipt.
79
Ranking; Security
Interest
.
The
Secured Notes will be junior secured obligations of the Company and will be secured by a security interest in substantially all of the
assets of the Company, pursuant to a security agreement. In addition, certain subsidiaries of the Company (each, a "Subsidiary Grantor")
in the SPA secured the Company's obligations under the Financing Documents by granting a perfected lien upon substantially all of
the personal property of each Subsidiary Grantor, for the benefit of the Investors. The Company is utilizing the proceeds of this offering
for general corporate purposes and working capital.
Registration Rights
.
The
Company has agreed to file a registration statement providing for the resale by the Investors of all shares issuable pursuant to the Financing
Documents with the Securities and Exchange Commission, or SEC, within forty-five (45) calendar days of the date of the SPA or as soon
as practicable thereafter, seek effectiveness within 90 days following the date of the SPA, and keep such registration statement effective
at all times until no Investors owns any Warrants or shares of Common Stock issuable upon exercise thereof.
Warrants
.
The
Warrants are exercisable immediately on the date thereof with a term of five (5) years to purchase an aggregate of 5,728,770 shares of
Common Stock at an exercise price of $6.29, subject to adjustment under certain circumstances described in the Warrants.
The
Incremental Warrants are exercisable immediately on the date thereof with a term of one (1) year to purchase the Secured Notes at an exercise
price of equal to the principal amount of the Secured Notes issued to such Purchaser, subject to adjustment under certain circumstances
described in the Incremental Warrants.
The
Company has agreed to issue certain PA Warrants to Univest Securities LLC, the sole placement agent of this transaction. The PA Warrants
are exercisable immediately on the date thereof with a term of five (5) years to purchase an aggregate of 202,768 shares of Common Stock
at an exercise price of $6.29, subject to adjustment under certain circumstances described in the PA Warrants.
A
holder of the Warrants and PA Warrants shall not have the right to exercise any portion of these warrants to the extent that, after giving
effect to such conversion, the holder (together with certain related parties) would beneficially own in excess of 4.99%, or the "Maximum
Percentage", of shares of our common stock outstanding immediately after giving effect to such conversion. The Maximum Percentage
may be raised or lowered to any other percentage not in excess of 9.99%, at the option of the holder, except that any increase will only
be effective upon 61 days' prior notice to us.
Components of FF's Results of Operations
Key Factors Affecting Operating Results
Our
performance and future success depend on several factors that present significant opportunities but also pose risks and challenges including
those discussed below and in the section titled "
Risk Factors
" in the 2023 Form 10-K and June 30, 2024 Form 10-Q.
80
Production and
Operations
We
expect to continue to incur significant operating costs that will impact our future profitability, including R&D expenses as we introduce
new models and improve existing models; capital expenditures for the expansion of our manufacturing capacities; additional operating costs
and expenses for production ramp-up; raw material procurement costs; general and administrative expenses as we scale our operations; interest
expense from debt financing activities; and selling and distribution expenses as we build our brand and market our vehicles. We may incur
significant costs in connection with our services as we deliver at scale the FF 91 Futurist, including servicing and warranty costs. Our
ability to become profitable in the future will depend on our ability to successfully market our vehicles and control our costs.
Through
June 30, 2024, we have sold a total of four and leased six vehicles. As a result, we will require substantial additional capital
to develop products and fund operations for the foreseeable future. Until we can generate sufficient revenue from product sales, we will
fund our ongoing operations through a combination of various funding and financing alternatives, including equipment financing of the
FF ieFactory California, secured syndicated debt financing, convertible notes, working capital loans, and equity offerings, among other
options. The particular funding mechanisms, terms, timing, and amounts are dependent on our assessment of opportunities available in the
marketplace and the circumstances of the business at the relevant time. Any delays in the successful completion of our FF ieFactory California
will impact our ability to generate revenue. For additional discussion of the substantial doubt about our ability to continue as a going
concern, see Note 2,
Liquidity and Capital Resources and Going Concern
in the notes to the Unaudited Condensed Consolidated
Financial Statements and for further details on liquidity, see the "Liquidity and Capital Resources" section below.
Revenue Recognition
We
began the production of our FF 91 Futurist in March 2023 and started making deliveries to customers in August 2023. We sold and leased
zero vehicles during the three months ended June 30, 2024.
Automotive Sales Revenue
Automotive
sales revenue includes revenues related to deliveries of new vehicles, and specific other features and services including home charger,
charger installation, 24/7 roadside assistance, OTA software updates, internet connectivity and destination fees.
We
recognize revenue on automotive sales upon delivery to the customer, which is when control of a vehicle transfers. Payments are typically
received at the point control transfers or in accordance with payment terms customary to the business and as indicated in the sales contract.
OTA software updates are provisioned upon transfer of control of a vehicle and recognized over time on a straight-line basis as we have
a stand-ready obligation to deliver such services to the customer. For obligations related to automotive sales, we estimate standalone
selling price by considering costs used to develop and deliver the good or service, third-party pricing of similar options and other information
that may be available. The transaction price is allocated among the performance obligations in proportion to the standalone selling price
of our performance obligations. Vehicle contracts do not contain a significant financing component.
Revenue
from promises to the customer that are considered immaterial are combined with the vehicle performance obligation and recognized when
the product has been transferred. We accrue costs to transfer these immaterial goods and services regardless of whether they have been
transferred.
We
provide customers with a residual value guarantee which may or may not be exercised in the future.
Co-creation Arrangements
As
part of our Futurist Product Officers ("FPO") Co-Creation Delivery program that began in August 2023, we have entered into
co-creation agreements with certain customers. The arrangement leverages some of our sales and leasing customers to provide valuable driving
data, insights, marketing and brand awareness of the FF 91 vehicle. For the services performed, we compensate the respective customers
through a monthly consulting fee payment or a discount on their monthly lease payment. Management examined in detail the services provided
by each respective customer in accordance with the co-creation agreement, established various data points, and rationally assigned a dollar
amount that was deemed representative of the fair value of the services. Co-creation payments that exceed the fair value of the distinct
services performed by the customer are considered consideration paid to the customer and were treated as a reduction in revenue.
81
We
have entered into and may continue to enter into co-creator consulting agreements with our customers under which customers share feedback,
driving data, ideas, and experiences with our engineers, social media posts and other promotions in exchange for specified fees. We consider
these arrangements consideration payable to a customer. The consideration paid to the customer relates to marketing and R&D services
that are distinct and could be purchased by us from a separate third party. We perform an analysis in which we maximize the use of observable
market inputs to ascribe a fair value to these services and record the fair value of these services to sales and marketing expense or
R&D expense, as applicable. Any consideration payable to a customer that is above the fair value of the distinct services being provided
is treated as a reduction of revenue.
Automotive Leasing
Revenue
Operating Leasing
Program
We
have outstanding leases under our vehicle operating leasing program in the United States. Qualifying customers are permitted to lease
a vehicle for up to 36 months. At the end of the lease term, customers are generally required to return the vehicles to us. We account
for these leasing transactions as operating leases. We record leasing revenues to automotive leasing revenue on a straight-line basis
over the contractual term, and we record the depreciation of these vehicles to cost of automotive leasing revenue. Our policy is to exclude
taxes collected from a customer from the transaction price of automotive contracts.
Sales-Type Leasing Program
We
have outstanding leases accounted for as sales-type leases under Accounting Standards Codification ("ASC") 842, Leases ("ASC
842"). Customers have the right to purchase the vehicle at the end of the lease term, which is usually 36 months. A customer qualifies
under this program if the purchase option is reasonably certain to be exercised, and we therefore expect the customer to take title to
the vehicle at the end of the lease term after making all contractual payments. We recognize all revenue and costs associated with the
sales-type lease as automotive leasing revenue and automotive leasing cost of revenue, respectively, upon delivery of the vehicle to the
customer when collectability of lease payments is probable at lease commencement. If collectability of lease payments is not probable
at commencement, we recognize the lease payments as deposit liability and do not derecognize the leased vehicle until such point that
collectability of lease payments becomes probable.
Customer Deposits
and Deferred Revenue
Our
customers may reserve a vehicle and preorder certain services by making a customer deposit, which is fully refundable at any time. Refundable
deposits, for vehicle reservations and services, received from customers prior to an executed vehicle purchase agreement are recorded
as customer deposits within Accrued expenses and other current liabilities on our Consolidated Balance Sheet.
When
vehicle purchase agreements are executed, the consideration for the vehicle and any accompanying products and services must be paid in
advance prior to the transfer of products or services by us. Such advance payments are considered non-refundable, and we defer revenue
related to any products or services that are not yet transferred.
Deferred
revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied,
as of the balance sheet date.
Warranties
We
provide a manufacturer's warranty on all vehicles sold. The warranty covers the rectification of reported defects via repair, replacement,
or adjustment of faulty parts or components. The warranty does not cover any item where failure is due to normal wear and tear. This assurance-type
warranty does not create a performance obligation separate from the vehicle. Management tracks warranty claims by vehicle ID, owner, and
date. As we continue to manufacture and sell more vehicles, we will reassess and evaluate our warranty claims for purposes of our warranty
accrual.
82
Cost of Automotive
Sales Revenue
Cost
of revenue includes direct and indirect materials, labor costs, manufacturing overhead, including depreciation costs of tooling and machinery,
shipping and logistic costs, vehicle connectivity costs, and reserves for estimated warranty expenses. Cost of automotive sales revenues
also includes adjustments to warranty expense.
Cost
of services and other revenue includes costs associated with providing non-warranty after-sales services, costs for retail merchandise,
and costs to provide vehicle insurance. Cost of services and other revenue also includes direct parts and material.
Cost of Automotive
Leasing Program
Cost of automotive leasing
revenue includes the depreciation of operating lease vehicles, cost of goods sold associated with direct sales-type leases and warranty
expense related to leased vehicles.
Operating Expenses
Research and Development
Research
and Development ("R&D") activities represent a significant part of our business. Our R&D efforts focus on the design
and development of our electric vehicles and continuing to prepare our prototype electric vehicles to exceed industry standards for compliance,
innovation, and performance. R&D expenses consist of personnel-related costs (including salaries, bonuses, benefits, and stock-based
compensation) for our employees focused on R&D activities, other related costs, depreciation, R&D services provided by co-creators,
and an allocation of overhead. We expect R&D expenses to decrease in the near future as we substantially completed R&D activities
related to the FF 91 in late 2023.
Sales and Marketing
Sales
and marketing expenses consist primarily of personnel-related costs (including salaries, bonuses, benefits, and stock-based compensation)
for our employees focused on sales and marketing, costs associated with sales and marketing activities, marketing services provided by
co-creators, and an allocation of overhead. Marketing activities are those related to introducing our brand and our electric vehicle prototypes
to the market. We expect selling and marketing expenses to continue to increase as we bring our electric vehicles to market and seek to
generate sales.
General and Administrative
General
and administrative expenses consist primarily of personnel-related costs (including salaries, bonuses, benefits, and stock-based compensation)
for our employees associated with administrative services such as legal, human resources, information technology, accounting and finance,
other related costs, and legal loss contingency expenses, which are our estimates of future legal settlements. These expenses also include
certain third-party consulting services, certain facilities costs, and any corporate overhead costs not allocated to other expense categories.
We expect our general and administrative expenses to increase as we continue to grow our business.
Loss on Disposal of
Property, Plant and Equipment
Loss
on disposal of property, plant and equipment relates to the abandonment of certain FF 91 Futurist program construction in progress assets,
primarily vendor tooling, machinery, and equipment, due to the redesign of the related FF 91 components and implementation of our cost
reduction program. Charges associated with disposals are recognized within operating expenses in the Unaudited Condensed Consolidated
Statements of Operations and Comprehensive Loss.
83
Change in Fair Value
of Earnout Liability
Legacy
FF stockholders, as of the July 21, 2021 closing date of the Business Combination (as defined in Note 10,
Commitments and Contingencies
in
the notes to the Unaudited Condensed Consolidated Financial Statements) until its fifth anniversary, are entitled to contingent consideration
of up to 104,167 additional shares of Class A Common Stock in the aggregate in two equal tranches upon the occurrence of each earnout
triggering event ("Earnout Shares"). We recognized the Earnout Shares at fair value upon the closing of the Business Combination
and classified them in Stockholders' Equity since the Earnout Shares were determined to be indexed to our own stock and meet the
requirements for equity classification in accordance with ASC 815-40,
Derivatives and Hedging - Contracts in Entity's Own
Equity
. From time to time subsequent to the closing of the Business Combination, the Earnout Shares may be classified as derivative
liabilities under ASC 815,
Derivatives and Hedging
, due to us having insufficient authorized shares to fully settle the equity-linked
financial instruments in shares. The Earnout Shares reclassified as derivative instruments are recognized at fair value with changes in
fair value recognized in earnings until such time as the conditions giving rise to such derivative liability classification are settled
or we have sufficient authorized, unissued shares to settle such contracts with shares.
Non-operating
Expenses
Change in Fair Value
of (Related Party and Third Party) Notes Payable and Warrant Liabilities
Change
in fair value measurements consists of the losses and gains as a result of fair value measurements of certain notes payable and warrant
liabilities that we record at fair value.
Loss on Settlement
of (Related Party and Third Party) Notes Payable
Loss
on
settlement of notes payable consists of losses resulting from the settlement of notes payable as part of our ongoing financing activities
and losses incurred on modifications of our notes payable that qualify as an extinguishment pursuant to
ASC 470-50,
Debt–Modifications
and Extinguishments
.
Related Party Interest
Expense
Related
party interest expense consists of interest expense on notes payable with related parties.
Interest Expense
Interest
expense primarily consists of interest on outstanding notes payable not marked to fair value, capital leases, certain supplier payables,
and vendor payables in trust.
Other Expense, net
Other
expense, net consists of foreign currency transaction gains and losses and other expenses such as bank fees and late charges. Foreign
currency transaction gains and losses are generated by revaluation of debt and the settlements of invoices denominated in currencies other
than the functional currency. We expect other expense to fluctuate as we continue to transact internationally.
84
Results of Operations for three and six months ended June 30, 2024
and 2023 (
in thousands
) (Unaudited)
Comparison of results of
operations for the three months ended June 30, 2024 versus the three months ended June 30, 2023:
Three Months Ended
June 30,
(in thousands)
2024
2023
Unaudited Condensed Consolidated Statements of Operations
Revenue
$
293
$
—
Cost of revenues
20,970
6,613
Gross profit
(20,677
)
(6,613
)
Operating expenses
Research and development
3,317
25,269
Sales and marketing
1,782
7,699
General and administrative
17,201
17,062
Lease impairment loss
7,616
—
(Gain)/Loss on disposal on property, plant and equipment
16
—
Change in fair value of earnout liability
—
(664
)
Total operating expenses
29,932
49,366
Loss from operations
(50,609
)
(55,979
)
Change in fair value of notes payable and warrant liabilities
(7,245
)
24,324
Change in fair value of related party notes payable and related party warrant liabilities
(332
)
384
Loss on settlement of notes payable
(46,978
)
(85,392
)
Loss on related party notes payable
—
(6,492
)
Interest expense
(1,719
)
(209
)
Related party interest expense
(1,506
)
(70
)
Other expense, net
(292
)
(1,466
)
Loss before income taxes
(108,681
)
(124,900
)
Income tax provision
(4
)
(28
)
Net loss
$
(108,685
)
$
(124,928
)
Revenue
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Revenue
$
293
$
—
$
293
NM
*
*
NM = not meaningful.
Automotive sales revenue
was $0.3 million for the three months ended June 30, 2024. We started vehicle delivery to its customers during the third quarter of 2023.
We began delivering vehicles in the third quarter of 2023.
Cost of Revenues
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Cost of revenues
$
20,970
$
6,613
$
14,357
217
%
*
NM = not meaningful.
Cost
of revenues was $21.0 million for the three months ended June 30, 2024.
On
March
29, 2023, we announced the start of production of our first electric vehicle, the FF 91 Futurist and, on April 14, 2023, our first production
FF 91 Futurist vehicle came off the line. We began delivering vehicles in the third quarter of 2023.
85
Research and Development (R&D)
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Research and development
$
3,317
$
25,269
$
(21,952
)
(87
)%
The
decrease in R&D expense was
primarily due to a decrease in personnel and compensation expenses of $21.2 million, a decrease
in stock-based compensation of $1.0 million due to a decrease in headcount as part of cost saving measures implemented by us in light
of its financial position, as well as the allocation of certain personnel from the R&D department to production, and a decrease in
professional services expenses of $0.8 million.
Sales and Marketing
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Sales and marketing
$
1,782
$
7,699
$
(5,917
)
(77
)%
The
decrease in sales and marketing expense was
due to a decrease in compensation expenses of $3.3 million, a decrease in professional
services expenses of $1.1 million, a decrease in marketing expenses of $0.7 million, a decrease in stock-based compensation expense of
$0.1 million, and a decrease in other miscellaneous expenses of $0.5 million.
General and Administrative
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
General and administrative
$
17,201
$
17,062
$
139
1
%
The increase in general and
administrative expense was primarily due to an increase in information technology expense of $0.4 million, partially offset by a decrease
in stock-based compensation expense of $0.1 million.
Lease impairment loss
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Lease impairment loss
$
7,616
$
—
$
7,616
NM*
During the three months ended
June 30, 2024, the we moved out of a leased store facility and a leased research facility while working with the landlords to negotiate
the related lease terminations, resulting in a lease ROU asset impairment loss of $7.5 million for the loss of use of these two leased
facilities. We also terminated one of the operating leases in China, resulting in a net lease ROU asset impairment loss of $0.1 million
during the three months ended June 30, 2024.
(Gain)/Loss on Disposal on Property, Plant
and Equipment
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
(Gain)/Loss on disposal on property, plant and equipment
$
16
$
—
$
16
NM*
*
NM = not meaningful.
We recognized an immaterial
Loss on disposal of property, plant and equipment for the three months ended June 30, 2024. There were no such transactions for the three
months ended June 30, 2023.
Change in Fair Value of Earnout Liability
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Change in fair value of earnout liability
$
—
$
(664
)
$
664
NM*
*
NM = not meaningful.
86
As of April 21, 2023, we
reclassified the earnout obligation from equity classification to liability classification as a result of the us having insufficient authorized
shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40,
Derivatives and Hedging
- Contracts in Entity's Own Equity
. As a result of the reclassification, we reclassified $2.1 million out of Additional paid-in
capital into the Earnout liability. The $0.7 million decrease in the Earnout liability from April 21, 2023 to June 30, 2023 was recognized
as a gain in the Change in fair value of earnout liability during the three months ended June 30, 2023. There was no comparable transaction
during the three months ended June 30, 2024.
Change in Fair Value of Notes Payable and Warrant Liabilities
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Change in fair value of notes payable and warrant liabilities
$
(7,245
)
$
24,324
$
(31,569
)
(130
)%
During the three months ended
June 30, 2024, the fair value of our outstanding notes and warrants were revalued at higher fair values than in the preceding three month
period. The increase in the fair value of the notes and warrants during the period was primarily driven by improvements in our stock price,
which also contributed to an improvement in our volatility assumption. During the three months ended June 30, 2023, the fair value of
our notes and warrants decreased substantially due to pricing inputs that use the market price of our Common Stock and debt discount rate,
which experienced a significant decline during the period.
Change in Fair Value of Related Party Notes Payable and Related
Party Warrant Liabilities
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Change in fair value of related party notes payable and related party warrant liabilities
$
(332
)
$
384
$
(716
)
(186
)%
During the three months ended
June 30, 2024, the fair value of our outstanding related party notes and warrants were revalued at higher fair values than in the preceding
three month period. The increase in the fair value of the related party notes and warrants during the period was primarily driven by improvements
in our stock price, which also contributed to an improvement in our volatility assumption. During the three months ended June 30, 2023,
the fair value of our related party notes and warrants decreased substantially due to pricing inputs that use the market price of our
Common Stock and debt discount rate, which experienced a significant decline during the period.
Loss on Settlement of Notes Payable
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Loss on settlement of notes payable
$
(46,978
)
$
(183,528
)
$
136,550
(74
)%
The
decrease
in the Loss on settlement of notes payable during the three months ended June 30, 2024 was driven by a reduced conversion volume during
the period. In addition, during the three months ended June 30, 2023, we recognized an $11.4 million Loss on settlement of notes payable
from amendments to our Pre-existing SPA Notes in May 2023 accounted for as extinguishments. During the three months ended June 30, 2024,
note holders converted $15.4 million of notes payable compared with $94.4 million in the comparable prior year period. The impact of the
volume difference is offset by a larger loss on settlement per dollar of principal during the three months ended June 30, 2024. The increase
in the loss on settlement per dollar of principal was driven by the trailing-twelve-month trend of declines in the fair value of our notes
payable driven by the change in our stock price over the period and improvements in the conversion terms of the notes from June 30,
2023 to June 30, 2024.
87
Loss on Related Party Notes Payable
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Loss on related party notes payable
$
—
$
(6,492
)
$
6,492
NM*
*
NM = not meaningful.
There were no settlements
of related party notes payable during the three months ended June 30, 2024. During the three months ended June 30, 2023, the related party
converted Original Unsecured SPA Notes with principal balances of $12.0 million in exchange for 290,549 shares of our Class A Common Stock.
We recognized a Loss on settlement of related party notes payable for the difference between the fair value of the shares issued and the
fair value of the debt instrument.
Interest Expense
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Interest expense
$
(1,719
)
$
(209
)
$
(1,510
)
(722
)%
The increase in Interest
expense was primarily due to the financial obligation on sale and leaseback transaction that did not exist during the three months ended
June 30, 2023.
Related Party Interest Expense
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Related party interest expense
$
(1,506
)
$
(70
)
$
(1,436
)
(2051
)%
The increase in Related party
interest expense was due to our default on the Chongquing Leshi Small Loan Co., Ltd. note, which resulted in a substantial increase in
our interest rate along with additional interest expense and penalties. As discussed in Note 8,
Related Party Transactions
in the
notes to the Unaudited Condensed Consolidated Financial Statements
,
we had previously negotiated with a related party to partially
forgive debt and interest on its related note, in exchange for the promise to make payments on a scheduled basis. The interest related
to this note was reinstated during the first quarter of 2024 due to our default on the underlying note.
Other Expense, net
Three Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Other expense, net
$
(292
)
$
(1,466
)
$
1,174
80
%
The change in Other expense,
net was primarily due to a decrease in foreign currency transaction losses resulting from the revaluation of transactions denominated
in currencies other than U.S. Dollars that are remeasured at the end of each period.
88
Comparison of results of operations for the six months ended June 30,
2024 versus the six months ended June 30, 2023:
Six Months Ended
June 30,
(in thousands)
2024
2023
Unaudited Condensed Consolidated Statements of Operations
Revenue
$
295
$
—
Cost of revenues
41,657
6,613
Gross profit
(41,362
)
(6,613
)
Operating expenses
Research and development
10,005
83,077
Sales and marketing
4,256
12,764
General and administrative
31,049
43,575
Lease impairment loss
7,616
—
(Gain)/Loss on disposal on property, plant and equipment
(71
)
3,698
Change in fair value of earnout liability
—
2,100
Total operating expenses
52,855
145,214
Loss from operations
(94,217
)
(151,827
)
Change in fair value of notes payable and warrant liabilities
20,640
72,459
Change in fair value of related party notes payable and related party warrant liabilities
(339
)
384
Loss on settlement of notes payable
(58,381
)
(183,528
)
Loss on related party notes payable
(14,295
)
(6,492
)
Interest expense
(3,944
)
(501
)
Related party interest expense
(6,600
)
(70
)
Other expense, net
238
(298
)
Loss before income taxes
(156,898
)
(269,873
)
Income tax provision
(4
)
(28
)
Net loss
$
(156,902
)
$
(269,901
)
Revenues
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Revenue
$
295
$
—
$
295
NM*
*
NM = not meaningful.
Automotive sales revenue
was $0.3 million for the six months ended June 30, 2024. On March 29, 2023, we announced the start of production of our first electric
vehicle, the FF 91 Futurist and, on April 14, 2023, our first production FF 91 Futurist vehicle came off the line. We started vehicle
delivery to its customers during the third quarter of 2023.
Cost of Revenues
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Cost of revenues
$
41,657
$
6,613
$
35,044
530
%
Cost of revenues was $41.7
million for the six months ended June 30, 2024. We began production of vehicles during the second quarter of 2023 and began delivering
vehicles in the third quarter of 2023.
89
Research and Development (R&D)
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Research and development
$
10,005
$
83,077
$
(73,072
)
(88
)%
The decrease in R&D expense
is primarily due to the reduction in ED&T, General expenses and Information technology of $21.1 million, $4.0 million, and $2.0 million,
respectively, as we substantially completed R&D activities related to the FF91 in late 2023 and moved into production. In addition,
there was a decrease in personnel and compensation expenses of $35.8 million due to a decrease in headcount resulting from both the substantial
completion of R&D and cost saving measures implemented by us in light of our financial position, as well as a decrease in stock-based
compensation expense of $7.0 million resulting from the same reduction in headcount and revaluation of stock-based compensation resulting
from the transition of stock-based compensation from liability to equity classification.
Sales and Marketing
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Sales and marketing
$
4,256
$
12,764
$
(8,508
)
(67
)%
The
decrease in sales and mark
eting expense is primarily due to a decrease in personnel and compensation expenses of $5.0 million due
to a decrease in headcount as part of cost saving measures implemented by us in light of our financial position and a decrease of $0.6
million in stock-based compensation expense driven by reductions in headcount and the revaluation of stock-based compensation resulting
from the transition of stock-based compensation from liability to equity classification. In addition, there was a decrease in marketing
expenses and professional services expenses of $0.9 million and $0.8 million, respectively.
General and Administrative
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
General and administrative
$
31,049
$
43,575
$
(12,526
)
(29
)%
The
decrease in gener
al and administrative expense was primarily due to the decrease in professional services expense of $8.3 million,
personnel and compensation expense of $2.9 million, and stock-based compensation expense of $1.5 million, due to a decrease in headcount
as part of cost saving measures implemented by us in light of our financial position.
Lease impairment loss
Six Months Ended
June 30, 2024
Change
(in thousands)
2024
2023
Amount
%
Lease impairment loss
$
7,616
$
—
$
7,616
NM*
During the six months ended
June 30, 2024, we moved out of a leased store facility and a leased research facility while working with the landlords to negotiate the
related lease terminations, resulting in a lease ROU asset impairment loss of $7.5 million for the loss of use of these two leased
facilities. We also terminated one of the operating leases in China, resulting in a net lease ROU asset impairment loss of $0.1 million
during the six months ended June 30, 2024.
90
(Gain)/Loss on Disposal of Property, Plant and Equipment
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
(Gain)/Loss on disposal on property, plant and equipment
$
(71
)
$
3,698
$
(3,769
)
(102
)%
The change in loss on disposal
of property, plant and equipment was primarily due to the non-recurring write-off of $3.7 million during the six months ended June 30,
2023 of certain construction in process assets that are not expected to be used as part of start of production.
Change in Fair Value of Earnout Liability
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Change in fair value of earnout liability
$
—
$
2,100
$
(2,100
)
(100
)%
As of December 31, 2022, we
had reclassified our earnout obligation from equity classification to liability classification as a result of us having insufficient authorized
shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40,
Derivatives and Hedging
- Contracts in Entity's Own Equity
. On February 28, 2023, upon stockholder approval to increase our authorized shares, we had
sufficient authorized shares to fully settle all outstanding equity-linked financial instruments. Accordingly, we reclassified the fair
value of the Earnout liability of $5.0 million into Additional paid-in capital. The $2.8 million increase in the Earnout liability from
December 31, 2022 to February 28, 2023 was recognized as an expense in the Change in fair value of earnout liability during the six months
ended June 30, 2023.
In addition, as of April 21,
2023, we again reclassified our earnout obligation from equity classification to liability classification as a result of us having insufficient
authorized shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40,
Derivatives
and Hedging - Contracts in Entity's Own Equity
. As a result of the reclassification, we reclassified $2.1 million out of Additional
paid-in capital into the Earnout liability. The $0.7 million decrease in the Earnout liability from April 21, 2023 to June 30, 2023 was
recognized as a gain in the Change in fair value of earnout liability during the six months ended June 30, 2024. There was no comparable
transaction during the six months ended June 30, 2024.
Change in Fair Value of Notes Payable and Warrant Liabilities
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Change in fair value of notes payable and warrant liabilities
$
20,640
$
72,459
$
(51,819
)
(72
)%
During the six months ended
June 30, 2024 and 2023, the fair value of our outstanding notes and warrants were revalued at lower values than in the preceding six month
periods. Our outstanding notes and warrants were remeasured at predominantly lower fair values due to pricing inputs that use the market
price of our Common Stock and debt discount rate, which have experienced a decline.
During the three months ended
June 30, 2023, the fair value of our notes and warrants decreased substantially due to pricing inputs that use the market price of our
Common Stock and debt discount rate, which experienced a significant decline during the period. The change in fair value during the six
months ended June 30, 2024 is smaller than during the six months ended June 30, 2023 predominantly due to improvements in our conversion
terms and a smaller decline in our stock price during the period.
Change in Fair Value of Related Party Notes
Payable and Related Party Warrant Liabilities
Six Months Ended June 30,
Change
(in thousands)
2024
2023
Amount
%
Change in fair value of related party notes payable and related party warrant liabilities
$
(339
)
$
384
$
(723
)
(188
)%
During the six months ended
June 30, 2024, the fair value of our outstanding related party notes and warrants were revalued at higher fair values than in the preceding
six month period. The increase in the fair value of the related party notes and warrants during the period was primarily driven by improvements
in our stock price, which also contributed to an improvement in our volatility assumption. During the six months ended June 30, 2023,
the fair value of our related party notes and warrants decreased substantially due to pricing inputs that use the market price of our
Common Stock and debt discount rate, which experienced a significant decline during the period.
91
Loss on Settlement of Notes Payable
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Loss on settlement of notes payable
$
(58,381
)
$
(183,528
)
$
125,147
(68
)%
The decrease in the Loss
on settlement of notes payable during the six months ended June 30, 2024 was driven by a lower conversion volume during the period, partially
offset by a higher loss on settlement per dollar of principal. During the six months ended June 30, 2024, note holders converted $33.7
million of notes payable compared to $156.0 million in the comparable prior year period.
Loss on Related Party Notes Payable
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Loss on related party notes payable
$
(14,295
)
$
(6,492
)
$
(7,803
)
120
%
During the six months ended
June 30, 2024, related party note holders converted $0.7 million of related party notes payable, which constituted the remaining outstanding
balance, in exchange for 1,324,292 shares of our Class A Common Stock and we recognized a Loss on settlement of related party notes payable
for the difference between the fair value of the shares issued and the fair value of the debt instrument. In addition, as discussed in
Note 8,
Related Party Transactions
in the notes to the Unaudited Condensed Consolidated Financial Statements
,
we also recognized
a $14.1 million loss on related party notes from the recognition of interest and penalties and the increase of principal due to our breach
of the agreement with Chongquing Leshi Small Loan Co., Ltd. There was no comparable related party loss in the comparable prior year period.
During the six months ended
June 30, 2023, a related party converted Original Unsecured SPA Notes with principal balances of $12.0 million in exchange for 290,549
shares of our Class A Common Stock. We recognized a Loss on settlement of related party notes payable for the difference between the fair
value of the shares issued and the fair value of the debt instrument.
Interest Expense
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Interest expense
$
(3,944
)
$
(501
)
$
(3,443
)
(687
)%
The increase in Interest
expense was primarily due to the financial obligation on sale and leaseback transaction that did not exist during the six months ended
June 30, 2023.
Related Party Interest Expense
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Related party interest expense
$
(6,600
)
$
(70
)
$
(6,530
)
9329
%
The increase in Related party
interest expense was due to our default on the Chongquing Leshi Small Loan Co., Ltd note, which resulted in a substantial increase in
our interest rate along with additional interest expense and penalties. As discussed in Note 8,
Related Party Transactions, w
e
had previously negotiated with a related party to partially forgive debt and interest on its related note, in exchange for the promise
to make payments on a scheduled basis. The interest related to this note was reinstated for the first quarter of 2024 due to our default
on the underlying note.
92
Other (Expense) Income, Net
Six Months Ended
June 30,
Change
(in thousands)
2024
2023
Amount
%
Other expense, net
$
238
$
(298
)
$
536
(180
)%
The change in Other expense,
net was primarily due to a decrease in foreign currency transaction losses resulting from the revaluation of transactions denominated
in currencies other than U.S. Dollars that are remeasured at the end of each period.
Comparison
of the Years Ended December 31, 2023 and 2022
Year Ended
December 31,
(dollars in thousands)
2023
2022
Consolidated Statements of Operations
Revenues
Auto sales
$
784
$
-
Cost of revenues
Auto sales
42,607
-
Gross loss
(41,823
)
-
Operating expenses
Research and development
132,021
299,989
Sales and marketing
22,836
21,689
General and administrative
82,888
112,771
Loss on disposal of property and equipment
4,453
2,695
Change in fair value of earnout liability
2,033
-
Total operating expenses
244,231
437,144
Loss from operations
(286,054
)
(437,144
)
Change in fair value of notes payable and warrant liabilities
89,860
(70,512
)
Change in fair value of related party notes payable and related party warrant liabilities
7,101
-
Loss on settlement of notes payable
(217,019
)
(73,204
)
Loss on settlement of related party notes payable
(20,045
)
-
Interest expense
(2,288
)
(5,561
)
Related party interest expense
(753
)
(3,879
)
Other expense, net
(2,437
)
(11,878
)
Loss before income taxes
(431,635
)
(602,178
)
Income tax provision
(109
)
(61
)
Net loss
$
(431,744
)
$
(602,239
)
Revenue
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Revenue
$
784
$
-
$
784
-
%
93
Automotive sales revenue
was $0.8 million for the year ended
December 31, 2023
. We started vehicle delivery to our
customers during the third quarter of 2023 and this amount is primarily driven by the four cars that were sold through
December
31, 2023
. There was no sales revenue for the year ended December 31, 2022.
Cost of Revenue
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Cost of revenue
$
42,607
$
-
$
42,607
-
%
Cost of revenue\ was $42.6
million for the year ended
December 31, 2023
. We started to recognize automotive sales revenue
during the year ended
December 31, 2023
and the corresponding cost of revenue. Cost of revenue
is primarily driven by higher costs of early-stage cost inefficiencies including lower fixed cost absorption largely due to depreciation
of tooling and machinery. To a lesser extent, cost of revenue includes higher initial manufacturing inefficiencies coupled with higher
initial cost of parts resulting from lower volume associated with delivery of the FF 91 Futurist vehicles.
Research and Development
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Research and development
$
132,021
$
299,989
$
(167,968
)
(56.0
)%
The decrease in R&D expense
is primarily due to the reduction in engineering, design, and testing services of $125.9 million as we substantially completed R&D
activities related to the FF 91 Futurist vehicle in 2022. Further, as we started production in March 2023, certain costs were recognized
as cost of revenue and certain materials purchases were capitalized to inventory versus all being recognized as R&D expense. In addition,
there was a decrease in personnel and compensation expenses of $20.2 million due to a decrease in headcount and a decrease in professional
services of $15.1 million as part of cost saving measures implemented by us in light of our financial position.
Sales and Marketing
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Sales and marketing
$
22,836
$
21,689
$
1,147
5.3
%
Sales
and marketing expenses did not significantly fluctuate from the prior year. These efforts remained consistent as we only began vehicle
deliveries in the third quarter of 2023.
General
and Administrative
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
General and administrative
$
82,888
$
112,771
$
(29,883
)
(26.5
)%
The decrease in general and
administrative expense is primarily due to a decrease in compensation expense of $20.6 million and professional services expenses of $18.6
million due to our financial position; partially offset by general costs of $12.2 million primarily related to an increase in property
insurance and Director & Officer Insurance.
Loss on disposal of property and equipment
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Loss on disposal of property and equipment
$
4,453
$
2,695
$
1,758
65.2
%
The increase in loss on disposal
of property and equipment was the result of the sale of a property/equipment satisfying liquidity needs to fund short-term business activities.
94
Change in Fair Value of Earnout Liability
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Change in fair value of earnout liability
$
2,033
$
-
$
2,033
-
%
As of December 31, 2022, the
Company reclassified the earnout shares from equity classification to liability classification as a result of the Company having insufficient
authorized shares to share-settle the earnout, which was previously determined to be equity classified under ASC 815-40,
Derivatives
and Hedging - Contracts in Entity's Own Equity
. As of August 25, 2023, we reclassified the Earnout Shares from liability classification
to equity classification as a result of us having sufficient authorized shares to share-settle the earnout, which was determined to be
equity classified under ASC 815-40,
Derivatives and Hedging - Contracts in Entity's Own Equity
. The $2.0 million decrease
in the earnout liability was recognized as a change in fair value of earnout liability during the third quarter of
2023
and there was no comparable expense in the prior period
.
Change in Fair Value of Notes Payable and Warrant
Liabilities
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Change in fair value of notes payable and warrant liabilities
$
89,860
$
(70,512
)
$
160,372
(227.4
)%
The change in the fair value
of notes payable and warrant liabilities is primarily due to notes payable and warrant liabilities revalued during 2023 at predominantly
lower fair values due to pricing inputs that use the market price of the Company's Common Stock and debt discount rate which have
experienced large declines. As of December 31, 2022 the Company had $41.7 million of notes payable outstanding, compared with $118.9
million outstanding as of
December 31, 2023
, excluding the impact of mark to market valuation
adjustments. During the year ended December 31, 2023, we recognized a gain in the change in fair value of notes payable and warrant liabilities
of $69.7 million, specific to the change in fair value of our warrant liabilities, which was driven by the significant decline in the
Company's stock price.
Change in Fair Value of Related Party Payable
and Related Party Warrant Liabilities
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Change in fair value of related party payable and related party warrant liabilities
$
7,101
$
-
$
7,101
-
%
We did not have any related
party notes payable or warrants that were re-measured at fair value during the year ended December 31, 2022. In May 2023,we entered into
Original Unsecured SPA Notes (as defined in Note 6, Accrued Expenses and Other Current Liabilities, in the Notes to the Consolidated
Financial Statements) with MHL, who is a related party, and V W Investment. On
December 31, 2023
,
the related party Original Unsecured SPA Notes and warrant were revalued at a lower fair value than at their issuance due to pricing
inputs that use the market price of the Class A Common Stock and debt discount rate which have experienced a decline.
Loss on Settlement of Notes Payable
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Loss on settlement of notes payable
$
(217,019
)
$
(73,204
)
$
(143,815
)
196.5
%
The increase in the Loss on
settlement of notes payable during the year ended December 31, 2023 is primarily driven by a higher conversion volume during the period
and a larger loss on settlement per dollar principal. During the year ended December 31, 2023 note holders converted $200.6 million of
notes payable, excluding the impact of mark to market valuation adjustments, compared with $119.3 million in the year ended December 31,
2022. The increase in the loss on settlement per dollar of principal is driven by the trailing-twelve-month trend of declines in the fair
value of our notes payable driven by the change in the stock price over the period.
95
Loss on Settlement of Related Party Notes Payable
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Loss on settlement of related party notes payable
$
(20,045
)
$
-
$
(20,045
)
-
%
We did not have any related
party notes payable that settled during the year ended December 31, 2022. In May 2023, we entered into Original Unsecured SPA Notes with
MHL, who is a related party. During the year ended
December 31, 2023
, the related party converted
Original Unsecured SPA Notes with prin
cipal balanc
es of $22.3 million in exchange for 5.0
million shares of Class A Common Stock. We recognized a loss on settlement of related party notes payable for the difference between the
fair value of the shares issued and the fair value of the debt instrument.
Interest Expense
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Interest expense
$
(2,288
)
$
(5,561
)
$
3,273
(58.9
)%
The decrease in interest expense
was primarily due to our repayment of $85.0 million of Ares notes payable principal and the conversion of $73.9 million of ATW NPA notes
payable principal into the Class A Common Stock in the year ended December 31, 2022. The Pre-existing SPA Notes are carried at fair value
and fluctuations in interest expense are included in the change in fair value of notes payable.
Related Party Interest Expense
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Related party interest expense
$
(753
)
$
(3,879
)
$
3,126
(80.6
)%
The decrease in related party
interest expense was due to an agreement, dated December 27, 2022, with Chongqing Leshi Small Loan Co., Ltd, a related party, according
to which it was agreed that a portion of principal and all outstanding accrued interest was waived.
Other Expense, net
Year Ended December 31,
Change
(dollars in thousands)
2023
2022
Amount
%
Other expense, net
$
(2,437
)
$
(11,878
)
$
9,441
(79.5
)%
The change in other expense,
net was primarily due to a decrease in foreign currency transaction losses resulting from the revaluation of transactions denominated
in currencies other than U.S. Dollars that are remeasured at the end of each period.
Liquidity and Capital Resources
Going Concern
We have evaluated whether there
are certain conditions and events, considered in the aggregate, that raise substantial doubt about our ability to continue as a going
concern within one year after the date that the Unaudited Condensed Consolidated Financial Statements are issued. Based on our recurring
losses from operations since inception and continued cash outflows from operating activities (all as described below), we have concluded
that there is substantial doubt about our ability to continue as a going concern for a period of one year from the date that the Unaudited
Condensed Consolidated Financial Statements were issued.
96
The Unaudited Condensed Consolidated
Financial Statements or the Consolidated Financial Statements do not include any adjustments that might result from the outcome of this
uncertainty. Accordingly, the Unaudited Condensed Consolidated Financial Statements and the Consolidated Financial Statements have been
prepared on a basis that assumes we will continue as a going concern and that contemplates the realization of assets and satisfaction
of liabilities and commitments in the ordinary course of business.
We have and will continue to
devote substantial effort and, to the extent available, capital resources, to strategic planning, engineering, design, and development
of our electric vehicle platform, development of vehicle models, finalizing the build out of the FF ieFactory California manufacturing
facility, and capital raising. We incurred cumulative losses from operations, negative cash flows from operating activities, and have
an accumulated deficit of $4,115.4 million, an unrestricted cash balance of $0.8 million and a negative working capital position of $198.7
million, excluding restricted cash, as of June 30, 2024.
We incurred cumulative losses from
operations, negative cash flows from operating activities, and have an accumulated deficit of $3,958.5 million, an unrestricted cash balance
of $1.9 million and a negative working capital position of $169.8 million as of December 31, 2023.
During 2023, we delivered
our first vehicles but expect to continue generating significant operating losses for the foreseeable future. We have funded our operations
and capital needs primarily through the issuance of related party notes payable and notes payable (see Note 7,
Notes Payable
and
Note 8,
Related Party Transactions
in the notes to the Unaudited Condensed Consolidated Financial Statements and the
Consolidated
Financial Statements
), convertible notes, and the sale of common stock.
Pursuant to the Pre-existing
SPA, the Original Unsecured SPA, the Unsecured Streeterville SPA, the FFVV Joinder, and the Senyun Joinder (collectively the "SPA
Commitments") (see Note 7,
Notes Payable
and Note 8,
Related Party Transactions
in the notes to the Unaudited Condensed
Consolidated Financial Statements and the
Consolidated Financial Statements
), we obtained
commitments from several investors.
As of December 31, 2023, Optional Commitments under the
SPA Commitments totaled $366.0 million, of which $39.0 million was funded, $327.0 million remained to be funded, and $1.0 million was
outstanding.
As of June 30, 2024, the SPA Commitments totaled $554.5 million, of which $343.2 million was funded, $211.3 million
remained to be funded, and $78.6 million in principal was outstanding. As of June 30, 2024, Optional Commitments under the SPA Commitments
totaled $366.0 million, of which $47.2 million was funded, $318.8 million remained to be funded, and $9.2 million was outstanding. The
remaining amounts to be funded as of June 30, 2024, are subject to the achievement of delivery milestones, satisfaction of closing
conditions, resolution of disputes with investors, and satisfaction or waiver of other conditions, including for a portion of such financing
an effective registration statement for the shares underlying the applicable notes.
We may be unable to satisfy
the closing conditions under the SPA Commitments or obtain additional incremental convertible senior secured note purchasers under the
SPA Commitments or other debt or equity financing in a timely manner, on acceptable terms, or at all.
On November 11, 2022,
we entered into a three-year Standby Equity Purchase Agreement (the "SEPA") with YA II PN Ltd. ("Yorkville").
Under terms of the SEPA, we may, at our option, issue and sell from time to time up to $200.0 million (which can be increased up
to $350.0 million in the aggregate under our option) of Class A Common Stock to an affiliate of Yorkville Advisors, subject to certain
limitations.
As of December 31, 2023, we had the right to issue and sell up to an additional
$192.5 million, or $342.5 million if we exercises our option under the SEPA.
As of June 30, 2024, we had the right to issue
and sell up to an additional $192.5 million, or $342.5 million if we exercise our option under the SEPA, of Class A Common Stock under
the SEPA.
On
June 16, 2023, we filed a shelf registration on Form S-3 with the SEC (the "Shelf Registration"), which was declared effective
by the SEC on June 28, 2023. As a result, we may from time-to-time issue up to $300.0 million of common stock and/or warrants in
the aggregate. As of December 31, 2023, we had the right to sell up to $271.9 million under the Shelf Registration. Under applicable
SEC rules and regulations, because FF failed to timely file the 2023 Form 10-K it is not S-3 eligible and the Shelf Registration Statement
is no longer effective. See Note 11, Stockholders' Equity, of the notes to the Consolidated Financial Statements.
In addition, on September 26,
2023, we entered into a sales agreement with Stifel, Nicolaus & Company, Incorporated, B. Riley Securities, Inc., A.G.P./Alliance
Global Partners, Wedbush Securities Inc. and Maxim Group LLC, as sales agents, to sell shares of Class A Common Stock, from time to time,
with aggregate gross sales proceeds of up to $90.0 million pursuant to the Registration Statement as an "at-the-market"
offering under the Securities Act (the "ATM Program"). The ATM Program had been the primary source of liquidity for us since
September 2023. SEC rules and regulations, because we failed to timely file the 2023 Form 10-K and the Quarterly Report Form 10-Q for
the quarter ended March 31, 2024, it is not S-3 eligible and cannot access the ATM Program. As such, our current primary source of liquidity
is the issuance of various convertible note instruments.
97
Our ability to issue and sell
additional shares of common stock or warrants under the SEPA is constrained by the number of authorized shares of our common stock. We
must consider shares issuable under convertible debt, warrants or other obligations with equity rights. In addition, equity issuances
can potentially trigger provisions under the SPA Commitments that increase the number of shares to be issued upon conversion and reduce
the strike price of related warrants. This could result in us having inadequate authorized shares to meet our outstanding commitments.
We project that we will require
substantial additional funds to continue operations and support production of the FF 91. If we are unable to find additional sources of
capital, we will not have sufficient resources to fund our outstanding obligations and continue operations and we will likely have to
file for bankruptcy protection and our assets will likely be liquidated. Our equity holders would likely not receive any recovery at all
in a bankruptcy scenario.
We continue to explore various
funding and financing alternatives to fund our ongoing operations and to ramp up production. The particular funding and financing mechanisms,
terms, timing, and amounts depend on our assessment of opportunities available in the marketplace and the circumstances of the business
at the relevant time. However, there have been delays in securing additional funding commitments, which have exacerbated supply chain
pressures, among other things. If our ongoing capital raising efforts are unsuccessful or significantly delayed, or if we experience prolonged
material adverse trends in our business, production will be delayed or decreased, and actual use of cash, production volume and revenue
for 2024 will vary from our previously disclosed forecasts, and such variances may be material. While we are actively engaged in negotiations
with potential financing sources, we may be unable to raise additional capital on terms acceptable to us or at all. In addition to the
risk that our assumptions and analyses may prove incorrect, the projections may underestimate the professional fees and other costs to
be incurred related to the pursuit of various financing options currently being considered and ongoing legal risks. Capital needs to fund
development of our remaining product portfolio will highly depend on the market success and profitability of the FF 91 and our ability
to accurately estimate and control costs. Apart from the FF 91 series, substantial additional capital would be required to fund operations,
research, development, and design efforts for future vehicles.
As of and since June 30,
2024, we were and have been in default on the SPA Commitments and we are presenting the related notes as current. Since April 2023, we
had been in default on, and since January 1, 2024, have been in breach of, our debt agreement with Chongqing Leshi Small Loan Co.,
Ltd., a related party, with an outstanding principal balance of $7.6 million and interest payable of $18.5 million as of June 30,
2024.
Sources of Liquidity
As of June 30, 2024,
we maintained unrestricted cash on hand totaling $0.8 million, which was held for working capital and general corporate purposes.
We also have access to various sources of additional capital, including the SEPA, the ATM Program, the SPA Commitments and other unsecured
convertible notes. Our current primary source of liquidity the issuance of various convertible note instruments.
As
of December 31, 2023, our principal source of liquidity was cash on hand totaling $1.9 million, which was held for working capital
and general corporate purposes. We also have access to various sources of additional capital, including the SEPA and the SPA Commitments.
Our ability to access these sources of capital and further information on amounts available is discussed in Note 2,
Liquidity and Capital
Resources and Going Concern
in the notes to the Unaudited Condensed Consolidated Financial Statements, and Consolidated Financial
Statements.
Significant Related Party Notes Payable and
Notes Payable Facilities
We have been significantly
funded by notes payable from related parties and third parties. The related parties include employees as well as affiliates of employees
and affiliates and other companies controlled or previously controlled by our founder and Chief Product and User Ecosystem Officer. For
more information on the outstanding related party notes payable and notes payable as well as the related schedules of maturities, see
Note 7,
Notes Payable
, and Note 8,
Related Party Transactions
, of the notes to the Unaudited Condensed Consolidated Financial
Statements.
98
Related party notes payable
consists of the following as of June 30, 2024:
(in thousands)
Contractual
Maturity
Date
Contractual
Interest
Rates
Net
Carrying
Value
Related party notes – China
December 2023
18.0
%
$
7,577
Related party notes – Unsecured Convertible
April 8, 2024
0.0427
1,951
Related party notes – China various other
Due on Demand
—
%
3,805
Related party notes – Convertible FFGP
May 2024
4.27
%
$
250
Related party notes – FFGP
Various 2024
4.27% - 5.27
%
$
1,576
15,159
Less: Related party notes payable, current
(15,159
)
Total: Related party notes payable, less current
$
—
We have entered into notes payable agreements
with third parties, which consist of the following as of June 30, 2024:
(in thousands)
Contractual
Maturity Date
Contractual
Interest
Rates
Unpaid
Principal
Balance
Fair Value
Measurement
Adjustments
Original Issue
Discount
and
Proceeds
Allocated to
Warrants
Net
Carrying
Value
Pre-existing SPA Notes
Various
10%-15%
$
74,931
$
(25,011
)
$
(7,205
)
$
42,715
Original Unsecured SPA Notes*
Various dates in 2029
10%-15%
12,815
189
(2,501
)
10,503
Original Unsecured Convertible Notes
Various dates in 2024
4.27%
18,080
3,105
—
21,185
Notes payable – China other
Due on Demand
—%
4,878
—
—
4,878
Auto loans
October 2026
6.99%
64
—
—
64
$
110,768
$
(21,717
)
$
(9,706
)
79,345
Less: Related party notes payable
$
(1,951
)
Less: Notes payable, current portion
(77,394
)
Total: Notes payable, less current portion
$
—
*
includes amounts attributed to the Unsecured Streeterville
SPA
All notes are classified as current as of June 30, 2024.
99
Cash Flow Analysis
Presented below is a summary
of FF's cash flows for the fiscal year ended December 31, 2023:
For the Year Ended
December 31,
2023
2022
Net cash (used in) provided by
Operating activities
(278,178
)
(383,058
)
Investing activities
(31,109
)
(123,222
)
Financing activities
291,446
(6,721
)
Effect of exchange rate changes on cash and restricted cash
3,352
1,038
Presented below is a summary
of FF's cash flows for the periods indicated:
Six Months Ended
June 30,
(in thousands)
2024
2023
Net cash provided by (used in):
Operating activities
$
(29,091
)
$
(160,708
)
Investing activities
(271
)
(25,852
)
Financing activities
26,715
181,838
Effect of exchange rate changes on cash and restricted cash
(1
)
5,604
Operating Activities
We continue to experience
negative cash flows from operations as we design and develop our vehicles and build our infrastructure both in the United States and China.
Our cash flows from operating activities are significantly affected by our cash investments to support the growth of our business in areas
such as R&D associated with our electric vehicles, corporate planning, and general and administrative functions. Our operating cash
flows are also affected by our working capital needs to support growth and fluctuations in personnel-related expenditures, accounts payable,
accrued interest, other current liabilities, deposits, and other current assets.
Net cash used in operating
activities was $278.2 million for the year ended December 31, 2023. The largest components of our cash used in operating activities during
the year ended December 31, 2023 were $286.1 million of operating losses, primarily driven by personnel and compensation expense of $98.0
million and professional services of $35.3 million as well as cost of goods sold of $42.6 million, and cash outflows related to increasing
inventory of $29.8 million and decreases to accrued expenses and other current and non-current liabilities of $42.5 million
Net cash used in operating
activities was $383.1 million for the year ended December 31, 2022. The largest components of our cash used by operating activities during
the year ended December 31, 2022 were professional and contracted services totaling $124.6 million, compensation, benefits and related
expenses totaling $120.4 million and prepaid insurance totaling $21.7 million.
Net cash used in operating
activities was $29.1 million for the six months ended June 30, 2024 as compared to $160.7 million for the six months ended June
30, 2023. Cash used in operating activities was primarily made up of Net loss, depreciation expense, impairment on leases, changes in
fair value of and settlements on notes and related party notes payable and changes in working capital. The change in net cash used in
operating activities was primarily driven by decreases to net loss, to losses on settlement notes payable, and to changes in fair value
of notes payable and warrant liabilities, and by increases in depreciation expense, loss on impairment on leases, and loss on related
party notes payable, and a decrease in cash outflows from operating activities, partially offset by reductions in settlements on notes
payable, changes in the fair value of related party notes and a reduction in stock-based compensation expense.
100
Investing Activities
Net cash used in investing
activities was $31.1 million and $123.2 million for the years ended December 31, 2023 and December 31, 2022, respectively, and is related
to acquisition of property and equipment.
Net cash used in investing
activities was $0.3 million and $25.9 million for the six months ended June 30, 2024 and 2023, respectively, and was related
to the significant decrease in the acquisition of fixed assets due to the reduction of liquidity.
Financing Activities
Net cash provided by financing
activities was $291.4 million for the year ended December 31, 2023 and used in financing activities $6.7 million for the year ended December
31, 2022.
Net cash provided by financing
activities during the year ended December 31, 2023 primarily consists of $210.5 million in proceeds from notes payable, $24.9 million
in proceeds from a sale and lease back transaction, the proceeds from the issuance of Class A Common Stock of $34.5 million, $21.0 million
in proceeds from related party notes payable, and the proceeds from exercise of warrants totaling $4.1 million, partially offset by issuance
costs of $2.5 million.
Net cash used in financing
activities during the year ended December 31, 2022 primarily consists of cash payments of $87.3 million for settling notes payable and
accrued interest, $0.5 million for settling related party notes payable and accrued interest, $3.8 million for settling vendor payables
in trust, $1.9 million principal pay down for finance lease liabilities, and $0.8 million for repurchase and retirement of Class A Common
Stock. These were partially offset by $73.8 million in proceeds from the issuance of notes payable net of original issuance discounts,
$9.5 million from the exercise of stock options and $4.2 million in proceeds from the exercise of warrants.
Net cash provided by financing
activities was $26.7 million and $181.8 million for the six months ended June 30, 2024 and 2023, respectively.
Net cash provided by financing
activities during the six months ended June 30, 2024 primarily consisted of $23.9 million in proceeds from notes payable, net of original
issue discount, and $3.0 million in proceeds from related party notes payable.
Net cash provided by financing
activities during the six months ended June 30, 2023 primarily consisted of $160.8 million in proceeds from notes payable, net of original
issue discount, and $4.1 million in proceeds from the exercise of warrants, offset by $1.8 million of notes payable transaction costs.
Effect of Exchange Rate Changes on Cash and
Restricted Cash
The effects of exchange rate
changes on cash and restricted cash was immaterial for the six months ended June 30, 2024 and $5.6 million for the six months ended June
30, 2023. The effects of exchange rate changes on cash and restricted cash result from fluctuations in the translation of assets and liabilities
denominated in foreign currencies, primarily Chinese Renminbi. Fluctuations in exchange rates against the U.S. Dollar may positively or
negatively affect our operating results.
101
Off-Balance Sheet Arrangements
We did not have any material
relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special
purpose entities, that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually
narrow or limited purposes. Thus, we did not have any off-balance sheet arrangements as of June 30, 2024 and December 31, 2023.
Quantitative and Qualitative Disclosures About
Market Risk
This item is not applicable
as we are a smaller reporting company.
Critical Accounting Estimates
The preparation of our Unaudited
Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosures of contingent liabilities, and the reported amounts of expenses during the reporting period. Management
has based its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying values that are not readily apparent from other sources.
Actual results may differ
from these estimates under different assumptions or conditions. Changes in the accounting estimates are reasonably likely to occur from
period to period. Accordingly, actual results could differ significantly from the estimates made by our management. To the extent that
there are material differences between these estimates and actual results, future financial statement presentation, financial condition,
results of operations, and cash flows will be affected. Given the global economic climate, estimates are subject to additional volatility.
Critical accounting estimates
are defined as estimates made in accordance with GAAP that involve a significant level of estimation uncertainty and have had or are reasonably
likely to have a material impact on our financial condition or results of operations. Below is a list of critical accounting policies
the managements believes to reflect significant estimates and assumptions used in the preparation of the Consolidated Financial Statements.
For a description of our critical accounting estimates, see
Note 1, Nature of Business and Organization, and Summary of Significant
Accounting Policies
of the notes to Consolidated Financial Statements included herein.
102
Description
Judgements and Uncertainties
Effect if Actual Results
Differ from Assumptions
Fair Value of Warrants
FF has elected to measure certain warrants at fair value, mainly related to any related Pre-existing SPA notes. These warrants are liability classified instruments. Upon exercise, any difference between the fair value measurement and the exercise price would be recorded to the statement of operations.
FF estimates the fair value of warrants using a Monte Carlo simulation model where the significant assumptions used include the volatility of the FF's Class A Common Stock, the Company's expectations around the full ratchet trigger, the contractual term of the Pre-existing SPA Warrants, the risk-free rate and annual dividend yield. Fair value measurements associated with the liability-classified warrants represent Level 3 valuations under the fair value hierarchy.
These estimates involve inherent uncertainties and the application of management's judgment. If FF had made different assumptions, the fair value of warrants and effect on the statement of operations due to exercise could have been different.
Expected volatility of the Class A Common Stock- FF determines the expected volatility by weighing the historical average volatilities of publicly traded industry peers and its own trading history. FF intends to continue to consistently apply this methodology using the same or similar public companies until a sufficient amount of historical information regarding the volatility of the its own Class A Common Stock price becomes available, unless circumstances change such that the identified companies are no longer similar to FF, in which case more suitable companies whose stock prices are publicly available would be utilized in the calculation.
An increase in the risk-free interest rate will reduce the estimated fair value of a stock option grant, while a decrease in these factors will have an opposite effect.
Expectations around the full ratchet trigger - the warrants contain a provision to adjust the strike price if FF issues equity, under certain equity issuance mechanism, at a lower price. Management estimates the probability of this based on the current stock price.
Likewise, a decrease in volatility will decrease the estimated fair value of a stock option grant, while an increase in this factor will have the opposite effect.
Risk-free interest rate - The risk-free interest rate used to value awards is based on the United States Treasury yield in effect at the time of grant for a period consistent with the expected term of the award.
The Company does not expect to change the dividend yield assumption in the near future.
Dividend yield - The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends for the foreseeable future.
103
Description
Judgements and Uncertainties
Effect if Actual Results
Differ from Assumptions
Recognition and disclosure of contingent liabilities, including litigation reserves.
FF is, from time to time, subject to claims and disputes arising in the normal course of business. In the opinion of management, the outcome of any such claims and disputes cannot be predicted with certainty.
Contingent liabilities, including litigation reserves involve a significant amount of judgment in determining whether a loss is probable and reasonably estimable due to the uncertainty involved in determining the likelihood of future events and estimating the financial statement impact of such events.
If further developments or resolutions of a contingent matter are not consistent with our assumptions and judgments, we may need to recognize a significant charge in a future period related to an existing contingent matter.
As of December 31, 2023 and 2022, FF had accrued legal contingencies of $21.6 million and $18.9 million, respectively, recorded within Accrued expenses and other current liabilities for potential financial exposure related to ongoing legal matters, primarily related to breach of contracts and employment matters, which are deemed both probable of loss and reasonably estimable. For the legal matters involving third party vendors, such as suppliers and equipment manufacturers, FF recorded an accrual in Accounts payable in the Consolidated Balance Sheets based on the amount invoiced by such vendors, which represents the minimum amount of loss out of the range of potential outcomes in accordance with ASC 450-20-30-1.
104
Description
Judgements
    and Uncertainties
Effect
    if Actual Results
Differ from Assumptions
Fair
    Value Measurements and Fair Value of Related Party Notes Payable and Notes Payable
The
    accounting guidance for financial instruments allows entities to voluntarily choose to measure certain financial assets and liabilities
    at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless
    a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument
    should be reported in earnings at each subsequent reporting date.
Fair
    value measurement applies to financial assets and liabilities as well as other assets and liabilities carried at fair value on a
    recurring and nonrecurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or
    paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is
    a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset
    or liability. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded
    or disclosed at fair value, the Company considers the principal or most advantageous market in which the Company would transact and
    assumptions that market participants would use when pricing the asset or liability.
Certain
    of the related party notes payable and notes payable contain embedded liquidation premiums with conversion rights that represent
    embedded derivatives whose value is directly related to the fair value of the Common Stock. As the value of the Common Stock increases,
    the value of these related party notes payable and notes payable increases, and as the value of Common Stock decreases, the value
    of these related party notes payable and notes payable decrease.
FF
    has elected the fair value option for certain related party notes payable and notes payable with embedded derivatives.
The
    accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of
    unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent,
    objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair
    value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy
    is as follows:
FF
    has elected to measure certain notes payable and related party notes payable at fair value. Specifically, the Pre-existing SPA Notes
    as they contain embedded liquidation premiums with conversion rights that represent embedded derivatives (see Note 7, Notes Payable,
    Note 8, Related Party Transactions and Note 13, Fair Value of Financial Instruments). The Company used a binomial lattice model and
    discounted cash flow methodology to value the Pre-existing SPA Notes. The significant assumptions used in the models include the
    volatility of the Class A Common Stock, the Company's expectations around the full ratchet trigger, the Company's debt
    discount rate based on a CCC rating, annual dividend yield, and the expected life of the instrument.
Level
                                            1 - Valuations for assets and liabilities traded in active exchange markets, or interest
                                            in open-end mutual funds that allow a company to sell its ownership interest back at net
                                            asset value on a daily basis. Valuations are obtained from readily available pricing sources
                                            for market transactions involving identical assets, liabilities, or funds.
Level
                                    2 - Valuations for assets and liabilities traded in less active dealer, or broker markets, such as
                                    quoted prices for similar assets or liabilities or quoted prices in markets that are not active.
                                    Level 2 instruments typically include U.S. government and agency debt securities, and corporate obligations.
                                    Valuations are usually obtained through market data of the investment itself as well as market transactions
                                    involving comparable assets, liabilities or funds.
Level
                                    3 - Valuations for assets and liabilities that are derived from other valuation methodologies, such
                                    as option pricing models, discounted cash flow models and similar techniques, and not based on market
                                    exchange, dealer, or broker-traded transactions. Level 3 valuations incorporate certain assumptions
                                    and projections in determining the fair value assigned to such assets or liabilities.
105
Description
Judgements and Uncertainties
Effect if Actual Results
Differ from Assumptions
Impairment of Long-Lived Assets
FF its long-lived assets, consisting primarily of property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an assets (or asset groups) may not be recoverable. FF performs impairment testing at the asset group level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities.
The recoverability of long-lived assets is determined by comparing the forecasted undiscounted cash flows attributable to such assets, including any cash flows upon their eventual disposition, to the assets carrying values. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, then the assets are written down to their fair value.
Increases or decreases in cash flow assumptions could cause corresponding increases to or decreases to the estimates of undiscounted cash flow amounts. Decreases in cash flow assumptions could cause management to incorrectly conclude that the assets (or asset groups) in question may not be recoverable and an asset impairment could be required.
These forecasted undiscounted cash flows represent management's best estimates of the future outcomes. Assumptions that are significant to estimate the cash flows utilized include but are not limited to management's estimates of future production, sales revenue, lease revenue and all related costs as well as other assumptions such as future capital expenditures and volumetric growth rates.
Recent Accounting Pronouncements
See the sections titled "
Recent Accounting Pronouncements" in
Note 1,
Nature of Business and Organization, and Summary
of Significant Accounting Policies
in our Consolidated Financial Statements included herein for a discussion about our recently adopted
accounting pronouncements and the recently issued accounting pronouncements not yet adopted which are determined to be applicable to us.
106
BUSINESS
Unless the context indicates
otherwise, references in this prospectus to "FFIE" refer to Faraday Future Intelligent Electric Inc. (f/k/a Property Solutions
Acquisition Corp.), a holding company incorporated in the State of Delaware, and not to its subsidiaries, and references herein to the
"Company," "FF," "we," "us," "our" and similar terms refer to FFIE and its
consolidated subsidiaries. We refer to our primary operating subsidiary in the U.S., Faraday&Future Inc., as "FF U.S."
We refer to all our subsidiaries organized in China (including Hong Kong) collectively as the "PRC Subsidiaries," a complete
list of which is set forth in Exhibit 21.1 to this prospectus. As of December 31, 2023, our only operating subsidiaries in mainland China
and in Hong Kong are FF Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive Technology Co.,
Ltd., each of which was organized in the PRC. The discussion of FF's business and the electric vehicle industry below is qualified
by, and should be read in conjunction with, the discussion of the risks related to FF's business and industry detailed elsewhere
in this prospectus.
Company Overview
FF is a California-based global
shared intelligent mobility ecosystem company with a vision to disrupt the automotive industry.
With headquarters in Los Angeles,
California, the Company designs and engineers next-generation intelligent, connected, electric vehicles. FF manufactures vehicles at its
production facility in Hanford, California, with additional future production capacity needs addressed through a contract manufacturing
partner in South Korea. FF is also exploring other potential contract manufacturing options in addition to the contract manufacturer in
South Korea. The Company has additional engineering, sales, and operational capabilities in China and is exploring opportunities for potential
manufacturing capabilities in China through a joint venture or other arrangement.
Since its founding, the Company
has created major innovations in technology and products, and a user centered business model. We believe these innovations will enable
FF to set new standards in luxury and performance that will enhance quality of life and redefine the future of intelligent mobility.
FFIE
is a holding company incorporated in the State of Delaware. As a holding company with no material operations of its own, FFIE conducts
its operations through its operating subsidiaries. We currently have a majority of our operations in the U.S. conducted through our U.S.-domiciled
operating subsidiaries. We also operate our business in the People's Republic of China and plan to have significant operations in
the future in both Mainland China and Hong Kong (together, "PRC" or "China") through our subsidiaries organized
in the PRC (collectively, the "PRC Subsidiaries"). Investors in FFIE's Class A Common Stock (the "Class A Common
Stock," and with FFIE's Class B Common Stock, the "Common Stock") are investors solely of FFIE, a Delaware holding
company. There are various risks associated with our current operating presence in China and the potential expansion of our operations
in China (including Hong Kong), which is subject to political and economic influence from China. Recently, the Chinese government initiated
a series of regulatory actions and made statements to regulate business operations in China with little advance notice, including cracking
down on illegal activities in the securities market, enhancing supervision over China-based companies that seek to conduct offshore securities
offering or to be listed overseas, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly
enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon legislative or administrative regulation-making
bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated
if any, and the potential impact such modified or new laws and regulations will have on our business operations, our ability to accept
foreign investments and to maintain FFIE's listing on a U.S. exchange. The Chinese government may intervene or influence the operations
of our PRC Subsidiaries, or at any time exert more control over offerings conducted overseas and foreign investment in China-based issuers
in accordance with PRC laws and regulations, which could result in a material change in our
operations and/or a material reduction in the value of our Class A Common Stock and public warrants. Additionally, the governmental and
regulatory interference could significantly limit or completely hinder our and our investors' ability to offer or continue to offer
our shares of Class A Common Stock to investors and cause the value of such securities to significantly decline or be worthless. For a
detailed description of risks related to our PRC operations, see "
Risk Factors - Risks Related to FF's Operations in China.
"
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Technology
FF's technology innovations
include its proprietary Variable Platform Architecture ("VPA"), propulsion system, and Internet, Autonomous Driving, and Intelligence
("I.A.I.") systems.
The VPA is a modular skateboard-like
platform which can be sized to accommodate various motor and powertrain configurations, enabling fast and capital efficient product development
for both the passenger and commercial vehicle segments. FF's propulsion system includes an industry-leading inverter design, and
a propulsion system that provides a competitive edge in electric drivetrain performance. FF's advanced I.A.I. technology offers
high-performance computing, high speed internet connectivity, Over-the-air ("OTA") updates, an open ecosystem for third party
application integration, and an advanced autonomous driving-ready system, in addition to several other proprietary innovations that enable
the Company to build a highly personalized user experience.
In 2023, FF completed the upgrade
for the FF 91 Futurist vehicle from PT Gen 1.0 to PT Gen 2.0. This generational upgrade consisted of 26 significant upgrades to systems
and core components of both the EV area (the vehicle) and the I.A.I area (the advanced core of intelligence, autonomous driving and internet).
The 13 key upgrades to the EV area include improvements to the powertrain, battery, charging, chassis, and interior, and the 13 key upgrades
to I.A.I. include upgrades in computing, sensing, user interaction, and communication, as well as upgrades to the newest technology. Along
with other vehicle performance improvements, FF's technology is designed to deliver superior acceleration of 2.27 seconds from 0
to 60 mph and safety.
In January 2024, FF delivered
its first major OTA upgrades for the FF 91 2.0 since it began making deliveries, consisting of 752 new additions and 846 improvements.
These upgrades and enhancements showcased a breakthrough in FF's user experience and technology and further reflected trends of
"All-AI, All-Hyper, All-Ability, and user-focused Co-Creation value."
Since inception, FF has developed
a differentiated portfolio of valuable intellectual property. As of December 31, 2023, the Company had been granted approximately 660
patents (with approximately a third issued in the U.S., and slightly less than two-thirds issued in China, and the remaining issued in
other jurisdictions). These patents are issued to various FFIE entities, including Faraday Future, Faraday & Future, FF Automotive
(China) Co., Ltd., Leka Automotive Intelligent Technology (Beijing) Co., Ltd., and LeEco Eco-Car (Zhejiang) Co., Ltd. Key patents include
FF's inverter assembly, integrated drive and motor assemblies, methods and apparatus for generating current commands for an interior
permanent magnet ("IPM") motor, and keyless vehicle entry system. These key patents will expire in 2035 and 2036.
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Products
FF's B2C (business-to-consumer)
passenger vehicle pipeline includes the FF 91 series, the FF 81 series, and the FF 71 series, each designed to target different passenger
vehicle segments. In addition to passenger vehicles, and leveraging its VPA and other proprietary technology, FF plans to produce a Smart
Last Mile Delivery ("SLMD") vehicle to address the high growth last mile delivery market. The FF 91 is the current production
flagship model, and future pipeline models are contingent upon funding availability.
Each of the three passenger
vehicle series is planned in two different configurations (the FF 91 also comes in a limited edition model). At the top end, the "Futurist"
configurations will drive FF's core brand values (design, superior driving experience, and personalized user experience enabled
through FF's unique I.A.I technologies) to the fullest. Offering multiple configurations allows FF to participate in a wide price
range within each vehicle series.
●
The
FF 91 series is designed to compete with Maybach, Bentley Bentayga, Lamborghini Urus, Ferrari Purosangue, Mercedes S-Class, Rolls Royce
Spectre, Porsche Taycan, BMW 7-Series, etc. On May 31, 2023, FF launched the Ultimate AI TechLuxury FF 91 2.0 Futurist Alliance, as well
as the eco product aiHypercar+, open for reservations in both the United States and China. On August 12, 2023, FF celebrated the delivery
of the first FF 91 2.0 Futurist Alliance to the first Developer Co-Creator. As of the date of this prospectus, the Company has delivered
14 cars.
●
FF 81 series, FF's second passenger vehicle, is envisioned to be a premium mass market electric
connected vehicle positioned to compete against Tesla Model S and Model X, Nio ES8, BMW 5-series, and similar vehicles.
●
FF 71 series, FF's mass market passenger vehicle, plans to integrate connectivity and advanced technology
into a smaller vehicle size and positioned to compete against Tesla Model 3 and Model Y, BMW 3-series, and similar vehicles.
Product Positioning
All FF passenger vehicles will
share common brand "DNA" of:
●
Intelligence, Internet and connectivity;
●
modern design: styling;
●
superior driving experience:
leading power, performance and driving range; and
●
personalized user experience:
space, comfort and internet experience
The flagship FF 91 series with
its recent product and technology upgrade to PT Gen 2.0 will define the FF brand DNA. This DNA will carry over to FF 81 and FF 71 series
vehicles at lower price points. With such brand DNA, FF believes its products will be ahead of competition in their respective segments
in terms of design, driving experience, interior comfort, connectivity, and user experience.
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Robust Hybrid Manufacturing Strategy
To implement a capital light
business model, FF has adopted a hybrid global manufacturing strategy consisting of its refurbished manufacturing facility in Hanford,
California and a collaboration with Myoung Shin, a contract manufacturing partner in South Korea. FF is also exploring other potential
contract manufacturing options in addition to the contract manufacturer agreement in South Korea. The Company is also exploring the possibility
of manufacturing capacity in China through a joint venture or other arrangement.
As of the date hereof:
●
FFIE leased a 1.1 million square
foot manufacturing facility in Hanford, California with an expected production capacity of approximately 10,000 vehicles per year; and
●
FFIE entered into a definitive
contract manufacturing and supply agreement with Myoung Shin Co., Ltd. ("Myoung Shin"), a South Korea-based automotive manufacturer
and parts supplier, to manufacture the Company's second vehicle, the FF 81. The agreement has an initial term of nine years from
the start of production of the FF 81. Pursuant to the agreement, Myoung Shin shall maintain sufficient manufacturing capabilities and
capacity to supply FF 81 vehicles to FF in accordance with the Company's forecasts and purchase orders. FF and Myoung Shin will
each manufacture and supply certain FF 81 parts that Myoung Shin will use in the manufacture and assembly of FF 81 vehicles.
Distribution Model
FF launched its first passenger
vehicles in the U.S. in 2023. Additional markets may be added thereafter. FF plans to utilize a direct sales model integrating online
and offline sales channels to drive sales and user (including customers, drivers, and passengers of FF vehicles) operations to continuously
create value. FF's offline sales are planned through FF's self-owned stores as well as FF Partner-owned stores and showrooms.
The self-owned stores are expected to help establish the FF brand and provide seamless vehicle purchase experience, while the partner-owned
stores and showrooms will enable expansion of the sales and distribution network without substantial capital investment by FF.
FF's Competitive Strengths
FF's products, technology,
team and business model provide strong competitive differentiation.
FF's proprietary VPA
FF's proprietary VPA
is a skateboard-like platform that incorporates the critical components of an electric vehicle, and can be sized to accommodate various
motor and powertrain configurations. This flexible modular design supports a range of consumer and commercial vehicles and facilitates
rapid development of multiple vehicle programs to reduce cost and time to market.
Product performance with industry-leading
propulsion technology
FF's propulsion system
includes an industry-leading inverter design and proprietary drive propulsion system. FF's proprietary FF Echelon Inverter has the
technological advantage of driving a large amount of current in a small space using proprietary parallel Insulated Gate Bipolar Transistors
("IGBTs"), achieving low inverter losses and high efficiency. The propulsion system has high torque accuracy with fast transient
response. The electric motor drive units are fully integrated with the inverter, transmission and control unit to create industry-leading
volume and design efficiency. Propelled by an integrated FF designed powertrain, FF's vehicles can achieve leading horsepower, efficiency,
and acceleration performance as recently attested by the U.S. Environmental Protection Agency ("EPA") and California's
Air Resources Board ("CARB") by confirming a range of 381 miles on a single charge and internally measured acceleration of
2.27 seconds from 0 to 60 mph for the FF 91.
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Internet, Autonomous Driving, and Intelligence
("I.A.I") Technology
FF's advanced I.A.I.
technology offers high-performance computing, high speed internet connectivity, OTA updates, an open ecosystem for third party application
integration, and an advanced autonomous driving-ready system, in addition to several other proprietary innovations that enable the Company
to build an advanced highly personalized user experience. The FF 91 series will feature a high-performance dual systems-on-a-chip ("SoC")
computing platform for in-vehicle infotainment, a NVIDIA based autonomous driving hardware platform, and a high-speed connectivity system
that will be capable of up to three simultaneous 5G connections. Together, these systems will deliver a highly intelligent voice-first
user experience, and seamless cloud connectivity and a vehicle that is Level 3 highway autonomous driving ready.
FF's I.A.I system is
built on an enhanced Android Automotive code base and is upgraded with each release of Google's platform.
All FF vehicles use FF's
proprietary FFID unique identifier to deliver personalized content, apps and experiences. FFID provides a unique FF user profile that
ensures a consistent experience across the FF Ecosystem, as the user goes from one seat to another or even from one vehicle to another.
Strong intellectual property portfolio
FF has significant capabilities
in the areas of vehicle engineering, vehicle design and development, as well as software, internet, and AI. The Company has also developed
a number of proprietary processes, systems and technologies across these areas. FF's research and development efforts have resulted
in a strong intellectual property portfolio across battery, powertrain, software, user interface design and user experience design ("UI/UX"),
and advanced driver-assistance systems, among other areas. FF's proprietary inverter design provides high current and is integrated
into the electric drive unit, creating a high power-to-weight ratio. The patented keyless entry technology recognizes the user from a
distance, opens (rather than simply unlocking) doors and customizes the user's seating area using facial-recognition-prompted download
of FFID data. The eyes-free on-screen gestures controls enable users to open or close doors with one swipe, adjust temperature or volume
with three fingers anywhere on the Center Display. Patented autonomous driving technology will allow users to find empty space in a parking
lot and autonomously park using cameras, radars, LIDARs (Light Detection and Ranging), ultrasound and an inertial measurement unit ("IMU")
(available after production and delivery via a software upgrade). FF believes its strong intellectual property portfolio will allow continued
differentiation from its competitors and shorten time to market for future products.
Visionary management with a strong record
of success
FF is led by a visionary management
team with a unique combination of automotive, communication, and internet experience. FF's Global CEO, Matthias Aydt has been at
FF for nearly eight years, before appointed the global CEO, he had previously served successively as head of Product Execution, head of
Vehicle R&D and Vehicle engineering, Head of Product Definition & Mobility Ecosystems, as well as head of Business Development.
Matthias Aydt has over 40 years of experience in luxury OEMs across technology, operations, and general management, including developing
and growing multinational organizations, establishing cross-functional work environments, designing and developing processes, project
management processes, and simultaneous engineering processes. Mr. Aydt has also received over 15 registered patents during his career
and is deeply committed to the Company, its employees, users, and investors in fulfilling the vision for a sustainable transportation
future.
FF's founder and Chief
Product and User Ecosystem Officer, Mr. Yueting Jia, focuses on product and mobility ecosystem; internet and AI; and advanced R&D
technology. Mr. Jia founded Leshi Information Technology Co., Ltd., a video streaming website in 2004. He also founded Le Holdings Co.
Ltd. ("LeEco"), an internet ecosystem and technology company with businesses including smart phones, smart TVs, smart cars,
internet sports, video content, internet finance and cloud computing. FF's other management team members have significant product,
industry and leadership experience in areas such as vehicle engineering, battery, powertrain, software, internet, AI, and consumer electronics.
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Innovative Marketing and Sales Approach
Through User Co-Creation
As we look forward, FF's focus
is set on continued ramp of vehicle production and building its brand with Co-Creation. And these initiatives do more than just elevate
the brand presence; they cultivate a deep connection between FF and its community, offering an enriched brand journey.
At its core, Co-Creation transcends
mere collaboration; it's the manifestation of FF's commitment to centering our users in all our endeavors. Through collaborative
partnerships with Co-Creators, the Company believes that substantial value can be accessed across various aspects such as product development,
technological development, brand amplification, trust and loyalty, pricing power, strategic positioning, and brand marketing. This paradigm
sets us apart in the dynamic EV landscape, ensuring our offerings are not merely technologically superior but also resonate with the ever-evolving
expectations and aspirations of our clientele.
Electric Vehicle Industry Overview and Market
Opportunity
McKinsey & Company released
a public report titled "Five trends shaping tomorrow's luxury-car market" in July, 2022 that segments the luxury-car
market based on four manufacturers' suggested retail price (MSRP) tiers. These tiers consist of vehicles priced from $80,000 to
$149,000, $150,000 to $299,000, $300,000 to $500,000, and above $500,000. Each of these four luxury segments are projected to expand at
a compound annual growth rate of between 8 and 14 percent through 2031. In contrast, McKinsey projected that the market for cars with
an MSRP of less than $80,000 would remain virtually flat through the same time period.
Driven by China's new
energy vehicle ("NEV") credit and European CO2 regulations as well as city policies restricting new internal combustion engine
("ICE") vehicle sales, electric vehicle sales in China and Europe are estimated to exceed 65% of all passenger electric vehicle
sales by 2030, according to the Electric Vehicle Outlook 2022 report, a long-term forecast published by Bloomberg New Energy Finance ("BNEF
Report"). In addition, since many U.S. households have the infrastructure to install home charging, they are ideal adopters of electric
vehicles. According to the BNEF Report, by 2040, over three-quarters of all new passenger vehicles sold will be electric, with markets
in China and parts of Europe achieving even higher penetration. For commercial electric vehicles, demand for electric small vans, and
trucks are expected to rise quickly, with the U. S., Europe, and China markets expanding faster than the overall market, according to
the BNEF Report. In addition, the report notes that light-duty commercial vehicles will see the greatest surge in demand for electric
drivetrains among all commercial vehicles. FF believes its U.S. and China dual-home market strategy, as well as its innovative DNA, strong
technology portfolio, and emphasis on design, driving experience and personalized user experience will position it well in the passenger
electric vehicle segments in these markets. By leveraging the scalable design and modularity of FF's variable platform architecture,
FF is well-positioned to capitalize on growing demands for light, commercial electric vehicles. Additionally, FF's robust vehicle
engineering capabilities and extensive portfolio of technologies offer significant future licensing and strategic partnership opportunities.
Key Drivers for Electric Vehicle Market
Growth
Several important factors are
contributing to the popularity of electric vehicles, in both the passenger electric vehicle and light-duty commercial vehicle segments.
FF believes the following factors will continue to drive growth in these markets:
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Increasing Environmental Awareness and Tightening
Emission Regulations
Environmental concerns have
resulted in tightening emission regulations globally, and there is a broad consensus that further emission reductions will require increased
electrification in the automotive industry. The cost of regulatory compliance for ICE powertrains is rising sharply due to the natural
limitations of traditional ICE technologies. In response, global original equipment manufacturers ("OEMs") are aggressively
shifting their strategies toward electric vehicles. At the same time, consumers are more concerned about the impact of goods they purchase,
both on their personal health and the environment. As consumer awareness increases, zero emission transportation has become a popular
and widely advocated urban lifestyle which has accelerated further development of the electric vehicle market. Consumer pressure can also
be seen in the commercial electric vehicle market. Being encouraged by their customers to reduce their carbon footprints, retailers, logistics
companies, and other corporations are highly incentivized to transition their existing fleets or new vehicle purchases toward electric
vehicles.
Decreasing Battery and Electric Vehicle Ownership
Costs
Battery and battery-related
costs generally represent the most expensive components of an electric vehicle. The falling price of lithium-ion batteries is expected
to be among the most important factors affecting electric vehicle penetration in the future. Additionally, the average battery energy
density is expected to increase with continuous improvements in battery chemistries, improved materials, advanced engineering, and manufacturing
efficiencies. With improvements in battery technology and economies of scale, battery production costs (translated to electric vehicle
ownership costs) should continue to decrease. The BNEF Report stated that the average lithium-ion battery price had fallen by 89% from
2010 to 2021 to $131/kWh. They projected the cost of lithium-ion batteries would fall below $100/kWh by 2024 and continue to decline as
advancements in manufacturing and technology continue. According to the BNEF Report, price parity between electric vehicles and ICE is
expected to be reached by the mid-2020s in most vehicle segments, subject to variation between geographies.
Strong Regulatory Push
An increasing number of countries
are encouraging the adoption of electric vehicles or a shift away from fossil-fuel-powered vehicles. For example, in the U.S., both states
and municipalities have begun to roll out legislation banning combustion engines, with California mandating that every new passenger car
and truck sold to be zero-emission by 2035, and every new medium and heavy-duty truck sold be zero-emission by 2045. Fifteen additional
U.S. states and Washington, D.C. have announced they intend to follow California's lead in transitioning all sales of heavy-duty
trucks, vans and buses to zero-emission, with potentially more to follow in coming years. In China, the focused regulatory push has been
one of the strongest drivers of NEV penetration. In recent years, the Chinese government implemented a series of favorable policies encouraging
the purchase of electric vehicles and construction of electric vehicle charging infrastructure. Since 2015, the Chinese regulatory authorities
have provided subsidies to purchasers of electric vehicles. Although previous purchase subsidies were reduced in China by approximately
half in 2019, the Chinese government has continued to provide subsidies for charging infrastructure construction. Since 2016, the Chinese
central finance department has been incentivizing certain local governments with funds and subsidies for the construction and operation
of charging facilities and other relevant charging infrastructure, such as charging stations and battery swap stations. Europe, UK, Denmark,
Iceland, Ireland, the Netherlands, Slovenia, and Sweden have all announced plans to phase out combustion engines in some form or fashion
by 2030. These legislative tailwinds have already begun to force some legacy OEMs toward electrification, creating a strong need for a
modular, flexible, and cost-efficient electric vehicle solution, which will increase competition in the alternative energy vehicle industry.
Growth of Electric "Shared Mobility"
According to the BNEF Report,
the global shared mobility fleet (
i.e
., ride-hailing and car-sharing) is expected to represent more than 15% of the total kilometers
traveled by passenger vehicles by 2040, up from less than 5% in 2019. Bloomberg data also predicted that due to electric vehicles'
lower operating costs, they are anticipated to account for over 75% of shared mobility vehicles by 2040, representing a dramatic increase
from current low single digit penetration. At the same time, as vehicle consumers move to rely upon shared mobility fleets, and view ride-hailing
and car-sharing as a service, such trends may partially offset passenger vehicle demand growth.
Corporate History and Milestones
FF U.S., the Company's
primary U.S. operating subsidiary, was incorporated and founded in the State of California in May 2014. In July 2014, LeSee Automotive
(Beijing) Co., Ltd. ("LeSee Beijing"), which was previously the Company's primary Chinese operating entity, was formed
in China.
113
To facilitate global investment
of FF's business and operations in different jurisdictions, FF established a Cayman Islands holding company structure for the entities
within the group. As part of these efforts, Smart Technology Holdings Ltd. (formerly known as FF Global Holdings Ltd.) was incorporated
on May 23, 2014 in the Cayman Islands, which directly or indirectly owned and/or controlled 100% of the shareholding of all operating
subsidiaries in the group. In March 2017, FF established FF Automotive (China) Co., Ltd., as a Chinese wholly-foreign-owned entity ("WFOE").
As part of a broader corporate reorganization, and to facilitate third-party investment, FF incorporated its top-level holding company,
FF Intelligent Mobility Global Holdings Ltd. (formerly known as Smart King Ltd.), in the Cayman Islands in November 2017, as the parent
company of Smart Technology Holdings Ltd. To enable effective control over FF's Chinese operating entity and its subsidiaries without
direct equity ownership, in November 2017, the WFOE entered into a series of contractual arrangements ("VIE contractual arrangements")
with LeSee Beijing and LeSee Zhile Technology Co., Ltd., which previously held 100% of LeSee Beijing. The VIE contractual arrangement
enabled FF to exercise effective control over LeSee Beijing and its subsidiaries, to receive substantially all of the economic benefits
of such entities, and to have an exclusive option to purchase all or part of the equity interests in LeSee Beijing. The VIE contractual
arrangements were adjusted in the past three years and were terminated on August 5, 2020. LeSee Beijing is currently owned 99% by the
WFOE.
The organizational chart below
shows FFIE's operating subsidiaries* as of the date hereof:
*
Excludes subsidiaries with
immaterial operations. FF Hong Kong Holding Limited is a holding company subsidiary organized in Hong Kong. As of the date hereof, LeSEE
Automotive (Beijing) Co. Ltd., a subsidiary organized in China, has immaterial operations.
PRC Subsidiaries
FFIE is a holding company incorporated
in the State of Delaware. "FF U.S.", FF's primary U.S. operating subsidiary, was incorporated and founded in the State
of California in May 2014. We refer to all our subsidiaries organized in China (including Hong Kong) collectively as the "PRC Subsidiaries."
A complete list of our subsidiaries is set forth in
Exhibit 21.1
to this Registration Statement on Form S-1. As of December 31,
2023, our only operating subsidiaries in China (including Hong Kong) are FF Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co.,
Ltd. and Shanghai Faran Automotive Technology Co., Ltd., each of which was organized in the PRC.
114
How Cash is Transferred Through Our Corporate
Organization
The PRC has currency and capital
transfer regulations that require us to comply with certain requirements for the movement of capital in and out of the PRC. FFIE is able
to transfer cash (U.S. Dollars) to the PRC Subsidiaries through capital contributions (increasing FFIE's capital investment in the
PRC Subsidiaries). FFIE may receive cash or assets declared as dividends from the PRC Subsidiaries. The PRC Subsidiaries can transfer
funds to each other when necessary, by way of intercompany loans in the following manners:
●
FF Hong Kong Holding Limited, as the holding company of all the other PRC
Subsidiaries, can transfer cash to any PRC Subsidiary through capital contribution. We note Hong Kong's banking system is outside
PRC mainland's banking system. As a result, when FF Hong Kong Holding Limited transfers cash to a PRC Subsidiary, it is required
to follow the SAFE (as defined below) process and regulation.
●
FF Hong Kong Holding Limited, as the holding company of all the other PRC Subsidiaries, may receive cash
or assets declared as dividends from the other PRC Subsidiaries.
●
Among PRC Subsidiaries other than FF Hong Kong Holding Limited, one PRC Subsidiary can provide funds through
intercompany loan to another PRC Subsidiary and each such PRC Subsidiary is required to follow the rules of China Banking Regulatory Commission
and other relevant Chinese authorities. Additionally, one PRC Subsidiary can transfer cash to its subsidiary through capital contribution,
and any PRC Subsidiary may receive cash or assets declared as dividends from any of its subsidiaries.
In 2022 and 2023, FF U.S. extended
loans in an aggregated amount of $8.0 million and $16.3 million, respectively, to FF Hong Kong Holding Limited to fund the operations
of the PRC Subsidiaries. We will continue to assess the PRC Subsidiaries' requirements to fund their operations and intend to effect
additional contributions as appropriate. As of December 31, 2023, our only operating subsidiaries in China (including Hong Kong) are FF
Automotive (China) Co. Ltd., Ruiyu Automotive (Beijing) Co., Ltd. and Shanghai Faran Automotive Technology Co., Ltd., each of which was
organized in the PRC. The PRC Subsidiaries have not transferred cash or other assets to FFIE, including by way of dividends. FFIE does
not currently plan or anticipate transferring cash or other assets from our operations in China to any non-Chinese entity.
Capital contributions to PRC
companies are mainly governed by the Company Law and Foreign Investment Law of the People's Republic of China, and the dividends
and distributions from the PRC Subsidiaries are subject to regulations and restrictions of the PRC on dividends and payment to parties
outside of the PRC. Applicable PRC law permits payment of dividends to FFIE by our PRC Subsidiaries only out of their net income, if any,
determined in accordance with PRC accounting standards and regulations. Our operating PRC Subsidiaries are required to set aside a portion
of their net income, if any, each year to fund general reserves for appropriations until such reserves have reached 50% of the relevant
entity's registered capital. These reserves are not distributable as cash dividends. A PRC company is not permitted to distribute
any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together
with distributable profits from the current fiscal year. In addition, registered share capital and capital reserve accounts are also restricted
from withdrawal in the PRC, up to the amount of net assets held in each operating subsidiary.
PRC Restrictions on Foreign Exchange and
Transfer of Cash
Under PRC laws, if certain
procedural requirements are satisfied, the payment of current account items, including profit distributions and trade and service related
foreign exchange transactions, can be made in foreign currencies between entities, across borders, and to U.S. investors without prior
approval from State Administration of Foreign Exchange (the "SAFE") or its local branches. However, where Chinese Yuan ("CNY")
is to be converted into foreign currency and remitted out of China to pay capital expenses, such as the repayment of loans denominated
in foreign currencies, approval from or registration with SAFE or its authorized banks is required. The PRC government may take measures
at its discretion from time to time to restrict access to foreign currencies for current account or capital account transactions. If the
foreign exchange control system prevents our PRC Subsidiaries from obtaining sufficient foreign currencies to satisfy their foreign currency
demands, our PRC Subsidiaries may not be able to pay dividends in foreign currencies to FFIE. Further, we cannot assure you that new regulations
or policies will not be promulgated in the future that would have the effect of further restricting the remittance of CNY into or out
of the PRC. We cannot assure you, in light of the restrictions in place, or any amendment thereof, that the PRC Subsidiaries will be able
to fund their future activities which are conducted in foreign currencies, including the payment of dividends.
115
Furthermore, under PRC laws,
dividends may be paid only out of distributable profits. Distributable profits are the net profit as determined under PRC GAAP, less any
recovery of accumulated losses and appropriations to statutory and other reserves required to be made. Our PRC Subsidiaries shall appropriate
10% of the net profits as reported in their statutory financial statements (after offsetting any prior year's losses) to the statutory
surplus reserves until the reserves have reached 50% of their registered capital. As a result, our PRC Subsidiaries may not have sufficient,
or any, distributable profits to pay dividends to us. See "
Risk Factors-Risks Related to FF's Operations in China-FFIE
is a holding company and, in the future, may rely on dividends and other distributions on equity paid by the PRC Subsidiaries to fund
any cash and financing requirements that FFIE may have, and the restrictions on PRC Subsidiaries' ability to pay dividends or make
other payments to FFIE could restrict FFIE's ability to satisfy its liquidity requirements and have a material adverse effect on
FFIE's ability to conduct its business
" for a more detailed discussion of the relevant risks relating to restrictions
on foreign exchange and transfer of cash.
Requirements Under PRC Laws and Regulations
Under current PRC laws and
regulations, each of our PRC Subsidiaries is required to obtain a business license to operate in the PRC. Our PRC Subsidiaries have all
received the requisite business license to operate, and no application for business license had been denied.
As our operations in the PRC
expand, our PRC Subsidiaries will be required to obtain approvals, licenses, permits and registrations from PRC regulatory authorities,
such as the State Administration for Market Regulation, the National Development and Reform Commission, Ministry of Commerce ("MOFCOM"),
and the Ministry of Industry and Information Technology ("MIIT"), which oversee different aspects of the electric vehicle
business. As of December 31, 2023, no application by our PRC Subsidiaries for any such approvals, licenses, permits and registrations
that are currently applicable to them had been denied, but there can be no assurance that the PRC Subsidiaries will be able to maintain
their existing licenses or obtain new ones. See "Risk Factors-Risks Related to FF's Operations in China-FF may be adversely
affected by the complexity, uncertainties and changes in PRC regulations on internet-related business, automotive businesses and other
business carried out by FF's PRC Subsidiaries." for a more detailed discussion of the risks relevant to the regulations relating
to the operations of the PRC Subsidiaries.
We do not believe any permission
is required from any Chinese authorities (including the China Securities Regulatory Commission (the "CSRC") and the Cyberspace
Administration of China (the "CAC")) in connection with our previous offerings or listing. We do not and immediately prior
to the filing of this Registration Statement on Form S-1, possess over one million of PRC-based individual's personal information.
After consulting our PRC counsel, we believe we are currently not subject to the requirement under the Cybersecurity Review Measures that
a network platform operator which possesses more than one million users' personal information must apply for a cybersecurity review
with CAC before listing abroad. In addition, as of December 31, 2023, after consulting our PRC counsel, we are not aware of any other
laws or regulations currently effective in the PRC which explicitly require us to obtain any permission from the CSRC or other Chinese
authorities for our previous offering or listing, nor had we received any inquiry, notice, or warning from the CSRC or any other Chinese
authorities in such respects. The PRC authorities have promulgated new or proposed laws and regulations recently to further regulate securities
offerings that are conducted overseas and/or foreign investment in China-based issuers. According to these new laws and regulations and
the draft laws and regulations if enacted in their current forms, in connection with our future securities offering activities, we may
be required to fulfill filing, reporting procedures with the CSRC, and may be required to go through cybersecurity review by the PRC authorities.
However, there are uncertainties with respect to whether we will be able to fully comply with requirements to obtain such permissions
and approvals from, or complete such reporting or filing procedures with PRC authorities. For more detailed information, see "Risk
Factors-
Risks Related to FF's Operations in China-The approval of, or filing or other administrative procedures with, the CSRC
or other PRC governmental authorities may be required in connection with certain of our financing activities, and, if required, we cannot
predict if we will be able to obtain such approval or complete such filing or other administrative procedures"
and "Risk
Factors-
Risks Related to FF's Operations in China-We face challenges from the evolving regulatory environment regarding cybersecurity,
information security, privacy and data protection. Many of these laws and regulations are subject to change and uncertain interpretation,
and any actual or alleged failure to comply with related laws and regulations regarding cybersecurity, information security, data privacy
and protection could materially and adversely affect our business and results of operations
" for a more detailed discussion
of the relevant risks relating to the applicable of PRC laws and Regulations.
116
Milestones
Significant milestones in FF's
historical development and commercialization of FF's electric vehicles include the following:
●
In January 2021, FF announced
that it entered into a definitive agreement for a business combination with PSAC. In July 2021, FF announced that merger was completed,
the Class A Common Stock (ticker: FFIE) and Public Warrants (ticker: FFIEW) of the combined company are listed on The Nasdaq Stock Market
on July 22, 2021.
●
In September 2021, FF completed
the installation of pilot equipment in the pre-production build area of its Hanford, California facility.
●
In February 2022, FF unveiled
the first production-intent FF 91 EV manufactured at its Hanford, California plant.
●
In September 2022, FF announced
the FF 91 Futurist, the Ultimate Intelligent TechLuxury EV, was officially certified to have a robust rating of 381 miles of EV range
from the U.S. Environmental Protection Agency.
●
In November 2022, FF announced
the CARB has certified the FF 91 Futurist as a zero-emissions vehicle (ZEV). The ZEV program is part of CARB's Advanced Clean Cars
package of coordinated standards that control smog-causing pollutants and greenhouse gas emissions of passenger vehicles in California.
●
On January 17, 2023, FF announced
that, in the third quarter of fiscal year 2022, it had reached a non-binding Cooperation Framework Agreement with the government of the
City of Huanggang in Hubei Province, China ("Huanggang"), for promoting FF's U.S.-China dual-home market strategy.
According to the Cooperation Framework Agreement, FF intends to relocate its FF China headquarters to Huanggang, while maintaining its
global headquarters in Los Angeles, California.
●
On March 29, 2023, FF successfully
started the production of the flagship FF 91 vehicle.
●
On April 14, 2023, the first
production FF 91 vehicle rolled off the line at the FF ieFactory California.
●
On May 25, 2023, FF announced
that the FF 91 successfully passed U.S. Federal Motor Vehicle Safety Standards ("FMVSS") crash test requirements, first phase
of delivery plan set to begin May 31.
●
On May 31, 2023, FF launched
the Ultimate AI TechLuxury FF 91 2.0 Futurist Alliance as well as the eco product aiHypercar+, open for reservations in both the United
States and China.
●
On August 12, 2023, FF celebrated
the delivery of the first FF 91 2.0 Futurist Alliance to the first industry expert Developer Co-Creation Officer.
●
On November 23, 2023, FF announced
entry into Middle East, signed strategic cooperation agreements with Master Investment Group and Siraj Holding LLC, and announced the
FF 91 2.0 Futurist aiFalcon Limited Edition for the Middle East market.
●
On September 20, 2024, FF announced
its second brand, Faraday X (FX), and two planned new products expected to be priced between $20,000 and $50,000, signed strategic framework
agreements or memorandums of understanding with four OEMs to fully promote range extended AIEV in the U.S.
117
Partnership Program
Acting through FF Global Partners
LLC ("FF Global"), a shareholder of the Company, in July 2019 certain current and former executives of the Company established
a program which they refer to as the "Partnership Program." As described below, the Partnership Program provides financial
benefits to certain Company directors, management and employees, which they are required to report to the Company pursuant to the Company's
Investment Reporting Policy. The Partnership Program is administered by FF Global and is not under the Company's supervision.
Purpose of Partnership Program
The purpose of the Partnership
Program is to help the Company and FF Global succeed, including by helping key Company employees remain aligned with the Company's
mission, interests and economic success, by awarding units representing membership interests in FF Global to such individuals. We have
been advised by FF Global that the VP of Human Resources in FF, who is also a member of FF Global, provides recommendations to the FF
Global Board of Managers regarding proposed awards based on, among other things:
●
the individual's position in the Company and/or FF Global,
●
the importance of the individual's role in the Company and/or FF Global,
●
the individual's historical contributions to the Company and/or FF Global,
●
the importance of the individual to the achievement of the Company's and FF Global's strategic objectives,
●
the individual's awards under the Company's employee stock option plan, and
●
the individual's existing holdings of FF Global units.
The awards under the Partnership
Program have in the past been granted exclusively to current or former employees of the Company or its affiliates, FF Global may in the
future determine to grant awards to individuals who are not affiliated with the Company.
Pursuant to our Investment
Reporting Policy, members of our management and other employees are required to report information relating to their investments, including
their interests in FF Global. However, since the Company's board of directors does not have oversight over the Partnership Program,
the Company is not able to assess whether awards made by FF Global under the Partnership Program incentivize management and employee behavior
and activities that the Company intends to incentivize, or indeed, whether the Partnership Program effectively works against efforts by
the Company to manage its workforce. For example, as part of the special committee of independent directors established by the Board to
investigate allegations of inaccurate Company disclosures ("Special Committee"), as further discussed below, it was determined
that a Company employee who is also a beneficiary under the Partnership Program deliberately interfered with the Special Committee's
investigation. Although the Company disciplined this employee, the effectiveness of the Company's disciplinary efforts may have
been counteracted by awards this employee has received or expects to receive under the Partnership Program.
Terms of Awards
FF Global units awarded under
the Partnership Program are purchased by the recipient from FF Global. The recipient pays the purchase price for their common units in
10 annual installments. The units entitle the recipient to receive distributions from FF Global when and if declared by the FF Global
Board of Managers on a pro rata basis based on their paid-in capital (after their contributions are all returned). FF Global units are
subject to redemption in certain cases, including upon termination of employment with FF Global or the Company or any of their affiliates,
at a redemption price that generally is no lower than the unreturned capital contributions.
118
Scope of Partnership Program
FF Global has informed us that
to date a total of 34 individuals have received awards under the Partnership Program, that less than 16 individuals continue to hold such
awards, and that all recipients of such awards are current or former directors or employees of the Company or its affiliates. Some of
these individuals are or were members of the FF Global Board of Managers. In particular, we understand that (amounts below in single dollars):
●
Dr. Carsten Breitfeld, FF's
former Global CEO and a former director of FFIE, was a non-voting member of the FF Global Board of Managers until May 2022, and previously
held FF Global units. In connection with Dr. Breitfeld's voluntary resignation from FF Global in May 2022 to avoid any potential
conflicts of interest, Dr. Breitfeld forfeited his 13,000,000 FF Global units. On November 26, 2022, the Board voted to remove Dr. Breitfeld
as Global CEO and, on December 26, 2022, Dr. Breitfeld tendered his resignation from the Board, which was effective immediately.
●
Matthias Aydt, the current Global
CEO and a director of FFIE, was a member of the FF Global Board of Managers until June 2022, and previously held FF Global units. According
to information provided by Mr. Ruokun Jia, a nephew of Mr. Jia who was formerly an Assistant Treasurer of FFIE but who was terminated
for conduct during the Special Committee's investigation, Dream Sunrise is owned by an associate of him. On June 26, 2019, to finance
his acquisition of the FF Global units and his then concurrent loan to FF Global in the original principal amount of $4,257,792, Mr.
Aydt issued a note in the original principal amount of $4,624,392 to Dream Sunrise LLC ("Dream Sunrise"). On August 2, 2021,
FF Global paid down its loan obligations to Mr. Aydt by $2,071,722, by paying down Mr. Aydt's loan obligations to Dream Sunrise
by the same amount, evidenced by that certain Repayment Agreement, dated as of March 7, 2022, by and among Dream Sunrise, FF Global and
Mr. Aydt, an amended and restated note dated as of March 7, 2022 from FF Global to Mr. Aydt in the principal amount of $2,186,070 (the
"Aydt-FF Global Note"), replacing the prior note issued by FF Global to Mr. Aydt on June 26, 2019 in its entirety, and an
amended and restated note dated as of March 7, 2022 from Mr. Aydt to Dream Sunrise in the principal amount of $2,552,670 (the "Dream
Sunrise-Aydt Note"), replacing the prior note issued by Mr. Aydt to Dream Sunrise on June 26, 2019 in its entirety. In order to
avoid any potential conflicts of interest that his ownership of FF Global units presents toward his role as a director of FFIE, in June
2022, Mr. Aydt requested that FF Global redeem in full all of his FF Global units. On July 8, 2022, FF Global, Dream Sunrise and Mr.
Aydt entered into an Redemption Agreement, pursuant to which in exchange for FF Global's redemption in full of all of Mr. Aydt's
FF Global units and in satisfaction of all of FF Global's then outstanding loan obligations to Mr. Aydt under the Aydt-FF Global
Note, other than $87,743, which represents interests accrued on $366,600 of the principal amount under the Dream Sunrise-Aydt Note, FF
Global assumed all of Mr. Aydt's then outstanding loan obligations under the Dream Sunrise-Aydt Note. As of December 31, 2023,
the $87,743 that Mr. Aydt owes to Dream Sunrise remained outstanding.
●
Qing
Ye, former director of FFIE and former Vice President of Business Development and FF PAR, previously held FF Global units. On June 26,
2019, to finance his acquisition of the FF Global units and his then concurrent loan to FF Global in the original principal amount of
$1,993,009, Mr. Ye issued a note in the original principal amount of $2,164,609 to Dream Sunrise. On June 13, 2022, FF Global paid down
its loan obligations to Mr. Ye by $969,742, by paying down Mr. Ye's loan obligations to Dream Sunrise by the same amount, evidenced
by an amended and restated note dated as of June 13, 2022 from FF Global to Mr. Ye in the principal amount of $1,023,267 (the "Ye-FF
Global Note"), replacing the prior note issued by FF Global to Mr. Ye on June 26, 2019 in its entirety, and an amended and restated
note dated as of June 13, 2022 from Mr. Ye to Dream Sunrise in the principal amount of $1,194,867 (the "Dream Sunrise-Ye Note"),
replacing the prior note issued by Mr. Ye to Dream Sunrise on June 26, 2019 in its entirety. In order to avoid any potential conflicts
of interest that his ownership of FF Global units presents towards his role as a director of FFIE, in June 2022, Mr. Ye requested that
FF Global redeem in full all of his FF Global units. On June 24, 2022, FF Global, Dream Sunrise and Mr. Ye entered into an Redemption
Agreement, pursuant to which in exchange for FF Global's redemption in full of all of Mr. Ye's FF Global units and in satisfaction
of all of FF Global's then outstanding loan obligations to Mr. Ye under the Ye-FF Global Note, other than $41,071, which represents
interests accrued on $171,600 of the principal amount under the Dream Sunrise-Ye Note, FF Global assumed all of Mr. Ye's then outstanding
loan obligations under the Dream Sunrise-Ye Note. As of December 31, 2023, the $41,071. that Mr. Ye owed to Dream Sunrise remained outstanding.
On January 25, 2023, Mr. Ye resigned as a member of the Board. Mr. Ye remained a consultant of the Company as an independent contractor
until September 15, 2023.
119
●
Robert
Kruse, FF's former Senior Vice President, Product Execution, previously held 1,500,000 FF Global units (prior to the Company's
reverse stock split). On November 29, 2022, Mr. Kruse resigned from the Company.
●
Chui
Tin Mok, our Global Executive Vice President and the Global Head of User Ecosystem and a director of FFIE (effective January 25, 2023),
currently holds less than 100 FF Global units. On June 26, 2019, to finance his acquisition of the FF Global units and his then concurrent
loan to FF Global in the original principal amount of $2,264,783, Mr. Mok issued a note in the original principal amount of $2,459,783
to Dream Sunrise. In May 2022, Mr. Mok returned 3,120,000 of his FF Global units to FF Global pursuant to amendments to the governance
documents of FF Global. On March 7, 2022, FF Global paid down its loan obligations to Mr. Mok by $1,101,980, by paying down Mr. Mok's
loan obligations to Dream Sunrise by the same amount, evidenced by an amended and restated note dated as of March 7, 2022 from FF Global
to Mr. Mok in the principal amount of $1,162,803, replacing the prior note issued by FF Global to Mr. Mok on June 26, 2019 in its entirety,
and an amended and restated note dated as of March 7, 2022 from Mr. Mok to Dream Sunrise in the principal amount of $1,357,803, replacing
the prior note issued by Mr. Mok to Dream Sunrise on June 26, 2019 in its entirety.
●
Hong
Rao, our Vice President of I.A.I. (Internet, Autonomous Driving, Intelligence), currently holds less than 100 FF Global units.
●
In addition to the loans described above with respect to Mr. Aydt and Mr. Ye, a number of our other current and former employees have used funds loaned by Dream Sunrise to fund the purchase of their FF Global units and their concurrent loans to FF Global, including Chui Tin Mok and Jerry Wang who is a consultant to FF.
FF Technology
FF aiHyper 6x4 Architecture 2.0
Underpinning the FF 91 2.0
is the "FF aiHyper 6x4 Architecture 2.0." FF believes the integration of FF's six technology platforms with the four
technology systems, symbolized by "6x4", lays the groundwork for our commitment to pioneering innovation and excellence in
the automotive sphere.
Variable Platform Architecture
FF believes one of its core
technology competencies is its proprietary Variable Platform Architecture ("VPA"). FF's VPA is a flexible and adaptable
skateboard-like platform featuring a monocoque vehicle structure with integrated chassis and body. The platform directly houses the critical
components of an electric vehicle, including all-wheel steering, suspension system, brakes, wheels, electric propulsion system, electronic
control units and high voltage battery, among others. Each of these component systems has been engineered in-house or in collaboration
with suppliers and has been integrated into the FF vehicle design with a view to strive for optimizing performance, efficient packaging,
and functional integration.
As an integrated structure,
the skateboard-like platform can be shortened or lengthened to allow various wheelbases and battery pack sizes along with other options
to fit into the platform. It is designed to accommodate up to three motors and support single or dual rear motors and a single front motor.
The VPA can be configured in front-wheel-drive ("FWD"), rear-wheel-drive ("RWD") or all-wheel-drive ("AWD")
configurations. The platform enables scalable vehicle design and improves manufacturing flexibility as well as capital efficiency and
allows continuous improvement across product generations. It is also designed to reduce development time for future models leveraging
the platform, as most of research and development and a significant portion of the crash structure is integrated into the platform and
enables five star and equivalent safety performance. The modular design of the VPA is adaptable to support a wide range of FF vehicles
for both consumer and commercial vehicle markets.
120
Propulsion Technology
FF has designed an integrated
set of powertrain systems ideally suited for FF's modular VPA, which has been upgraded to PT Gen 2.0 to further enhance performance.
FF believes its proprietary and patented designed electric powertrain provides a competitive edge in horsepower, efficiency, and acceleration
performance.
FF Echelon Inverter
The inverter in FF's
electric vehicle powertrain governs the flow of high-voltage electrical current throughout the vehicle and serves to power the electric
motor, generating torque while driving and delivering energy into the battery pack while braking. The inverter converts direct current
from the battery pack into alternating current to drive the permanent magnet motors and provides "regenerative braking" functionality,
which captures energy from braking to charge the battery pack. The primary technological advantages of FF's designs include the
ability to drive large amounts of current in a small, physical package with high efficiency and low cost (low inverter losses to provide
98% of inverter efficiency) utilizing patented parallel IGBT technology and can achieve high torque accuracy with fast transient response.
The inverter can achieve high reliability due to tab bonds in the high current path. The monitoring system is integrated into the inverter
to provide enhanced safety. The patented FF Echelon Inverter is designed to have high power in a compact light weight package with high
reliability and durability and can support multiple motor configurations.
Integrated Electric Motor Drive Units
FF designed its electric motor
drive units (including gearbox). The electric drive units are fully integrated with the inverter, transmission, and control unit to create
a compact and efficient design. The FF designed drive units have low noise and vibration that can greatly improve driving experience.
Depending on the power requirements of each model, the motors can be utilized individually or in two or three motor configurations. The
FF 91 Futurist, equipped with three integrated electric drive units (each is designed to deliver up to 350 horsepower), is expected to
deliver 1,050 horsepower and 12,510 Newton meters ("Nm") of torque. FF believes its electric drive unit design is ahead of
many of its competitors in terms of performance because of its proprietary, advanced packaging, stator-rotor design, and unique inverter
layout.
Internet, Autonomous Driving, and Intelligence
("I.A.I.")
FF utilizes an industry-leading
automotive grade dual-chip computing system running the Android Automotive operating system. FF's I.A.I system is built on an enhanced
Android Automotive code base and is upgraded with each release of Google's platform. FF's vehicles are designed with software
OTA capabilities, which allow software and applications in the vehicle to be updated and upgraded wirelessly to deliver continuous enhancements.
The vehicle is designed to be connected to FF's information cloud at all times. When there is a firmware or software update available,
FF's cloud will push an update message to the vehicle to notify the driver to schedule an update. Upgrades will be wirelessly downloaded
to the vehicle, installed, and enabled, including updates for firmware, operating systems, middleware, and applications. FF's patented
Future OS operating system allows multiple users to login through FF 91, preparing user's preferences per their cloud based FFID
profiles.
For autonomous driving, FF's
advanced autonomous driving-ready system ("ADAS") will deliver multiple ADAS features through a combination of FF's
own as well as industry partners' applications. FF plans to devote resources to autonomous driving research and development and
plans to work with partners to deliver full autonomous-driving capabilities in highway and urban driving, as well as parking, across its
vehicle lines in the future.
FF's Artificial Intelligence
system can actively learn preferences, habits, entertainment, and navigation routines of a user, and associates them with the user's
unique FFID (FF proprietary user ID). FFID provides a unique FF user profile that ensures a consistent experience across the FF Ecosystem,
as the user goes from one seat to another or even from one vehicle to another. The seamless design and interface of the in-vehicle infotainment
system planned in FF vehicles will offer multiple human-machine interface ("HMI") options and facilitate a personalized user
experience for each seat in the vehicle. The enhanced user experience platform powered by Android enables seamless access to third party
applications. FF's patented Intelligent Aggregation Engine can pull content from multiple video applications and displays content
in a single area, removing the need to access multiple applications. The Intelligent Recommendation Engine that may be integrated in certain
FF series learns each passenger or driver's digital media preferences across multiple video applications and provide personalized
recommendations. The User Recognition function is embedded in each seat through facial or voice recognition, to deliver a suite of personalized
content and preferences.
121
Electrical/ Electronic ("E/E")
Architecture
FF has designed the first generation
of FF vehicle series (FF 91) with a domain-centralized E/E architecture, which enables architecture flexibility and maximizes performance
efficiency while meaningfully reducing the overall system complexity and weight. The domain-centralized E/E architecture will consolidate
the domain functions across five core high-performance domain control units ("DCU") that manage, compute, and process controls
for propulsion, chassis, self-driving, body, and IoV (Internet of Vehicle-connected infotainment system). The E/E architecture of FF's
variable platform architecture is designed with the capacity to support the power and communication requirements necessary for seamless
integration with advanced autonomous systems as they evolve. All of FF's DCUs will support OTA updates and data collection.
FF Products
FF has developed an extensive
portfolio of proprietary technologies that will be embedded and integrated in FF vehicles. FF's B2C passenger vehicle pipeline includes
FF 91 series, FF 81 series and FF 71 series. In addition to passenger vehicles, leveraging its VPA, FF plans to produce a Smart Last Mile
Delivery ("SLMD") vehicle to address the high growth last mile delivery opportunity. The FF 91 is the current production flagship
model, and future pipeline models are contingent upon funding availability.
Passenger Vehicles
Each of the three passenger
vehicle series is planned in two different configurations. All passenger vehicles will share common brand "DNA" of:
●
Intelligence, Internet and connectivity;
●
modern design: styling;
122
●
superior driving experience:
leading power, performance, and driving range; and
●
personalized user experience:
space, comfort, and internet experience.
The flagship FF 91 series will
define the FF brand DNA. This DNA will carry over to FF 81 and FF 71 series. At the top end, the Futurist configurations of each of these
series will be designed to push the core brand values to the maximum. With this brand DNA, FF believes its products will be ahead of competition
in their respective segments in terms of design, driving experience, interior comfort, connectivity, and user experience.
FF 91
With a wheelbase of 3,200 mm
(126 inches), FF 91, FF's flagship vehicle, is designed to be a high-performance luxury electric vehicle in the E-segment/Executive/Full-Size
or F-segment/Full-size luxury vehicle segment.
FF believes that FF 91 represents
a "new species" of electric mobility that combines high performance, precise handling, the comfort of a luxury passenger vehicle,
and an intelligent, connected user interface which provides a unique mobility experience to both driver and passenger. It leverages FF's
proprietary VPA, which is a skateboard-like platform structure designed and engineered in-house. This integrated platform provides measurable
improvements in overall vehicle structural performance, safety, and handling. FF 91 features a multi-motor configuration and an all-wheel
drive system. With three electric motors (one in the front and two in the rear), the top configuration (the FF 91 Futurist) is designed
to produce 1,050 horsepower and 12,510 Nm of torque to all four wheels. This enables the FF 91 Futurist to have torque vectoring in the
rear for enhanced vehicle dynamics and stability. Its all-wheel drive system offers greater traction control as well as precise power
distribution. This technology is designed to deliver superior acceleration of 2.27 seconds from 0 to 60 mph and safety.
The variable platform architecture
for FF 91 series houses floor-mounted batteries, as well as FF's proprietary inverter, the FF Echelon Inverter, and integrated electric
motor drive units. All three elements, battery, inverter and drive units, support an achieved 381 miles EPA range. FF 91 is expected to
charge at up to a 200kW rate. FF plans to provide charging solutions available through FF's self-owned stores and FF Partner-owned
stores and showrooms.
The FF 91 aims to deliver a
top-quality experience that emphasizes personalization and comfort for all users of the vehicle, including both driver and passengers.
In terms of driver comfort, there are six driver-specific screens including an ultra-large heads-up display and slim instrument cluster.
The center information display supports on-screen gesturing with the swipe of a user's fingers. The reconfigurable 3D touch steering
wheel can allow further user configurability. The FF 91 is a connected device that has a voice-first user interface as well as an open
ecosystem for third-party applications and offers an immersive audio, video, and media experience. There are over 100 inches of high-resolution
viewing area across 11 displays embedded in the vehicle. These include industry's first 17-inch front passenger screen and a large
27-inch rear passenger display, allowing passengers to stream their favorite movies, TV shows and live sports while the FF 91 is in motion
without driver distraction. The voice-first foundation enables multiple natural commands at once, facilitating the areas of comfort (including
air conditioning, seat positions, and doors), productivity (including text, email, and phone calls), entertainment (including media playlists
and content search) and destination reaching (including refined search and navigation). The connectivity is powered by "Super Mobile
AP", which consists of up to three 5G modems to realize aggregated high internet speed and great coverage by multiple carriers for
high-throughput and continuous coverage. The Artificial Intelligence system and use of FFID (automatically loaded through facial recognition
in each seat) carry the personalized user experience from seat-to-seat and vehicle-to-vehicle. The front and rear passengers will have
(post production and delivery) individual sound zones, which allow passengers in the front and passengers in the rear to listen to their
separate audio content with minimal sound interference. The luxury interior design of the FF 91 Futurist also features "zero gravity"
seats in the rear row (with industry leading 48.9 inches rear leg room and 60-degree recline). The vehicle will also offer a spa mode
with personalized seat position, ventilation, massage settings, light animations, and ambient sound.
For autonomous driving, FF
91 is expected to have an array of cameras, sensors and LIDARs. Once an autonomous driving software solution is validated and released,
FF anticipates that its autonomous driving system will deliver several highway autonomy and parking features, and through continuous learning
over time, will enable Autonomous Valet Parking ("AVP") - where the vehicle can autonomously navigate a parking lot, find
a parking space and park itself. Eventually, the adaptive learning could allow the driver to use an application to park and summon the
vehicle after the driver has exited the vehicle.
123
FF 91 will feature an advanced
autonomous driving system that will deliver multiple ADAS features through a combination of FF's own as well as partners'
applications. FF plans to devote resources to autonomous driving research and development and plans to work with partners to deliver full
autonomous-driving capabilities in highway and urban driving, as well as parking, across its vehicle lines in the future.
As limited edition, FF 91 2.0
Futurist Alliance currently has a list price, or MSRP, of $309,000.
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FF 81
The FF 81 series is FF's
planned second vehicle model and is aimed at the premium mass market in the D-segment or E-segment. The FF 81 will be designed and built
on FF's proprietary VPA enabling more than 60% carry-over of common parts from the FF 91. In addition, parts developed for the FF
81 can be carried back to FF 91 series. The large number of common parts shared across vehicle models creates economics of scale and reduces
costs.
The FF 81 aims to deliver a
premium user experience that emphasizes personalization. The FF 81 is planned with high-performance computing and next generation connectivity
with a voice-first user interface and open ecosystem for third-party applications. It also has integrated, autonomous driving features
and the pertinent hardware capability, including cameras, radars, ultrasound sensors, and optional LIDAR(s).
FF 81 Futurist is expected
to compete with vehicles such as the Tesla Models S/X, BMW X5 and Range Rover Sport and the like.
125
FF 71
FF's third planned passenger
vehicle, the FF 71 series, is expected to be a connected electric vehicle with a more compact size aiming at the mass market in the C-segment
or D-segment. The FF 71 will be designed to integrate full connectivity and advanced technology into a smaller vehicle size. FF will start
design and development of the FF 71 series after sufficient funding is secured in a timely manner.
FF 71 Futurist is expected
to compete with vehicles such as the Porsche Macan, BMW X3, and Jaguar I-Pace.
Commercial Vehicles
Smart Last Mile Delivery ("SLMD")
FF plans to provide purpose-built
Smart Last Mile Delivery vehicles by leveraging its proprietary technologies developed for FF's passenger vehicles, to build tailored
SLMD configurations to meet the exact customer needs, whether for fleet provider or last mile delivery divisions, while reducing development
time and costs.
126
FF's technical solutions
for advanced connectivity and user experience are well-suited to the SLMD market, where rapid growth is fueling demand for increasingly
sophisticated solutions and features. Such features may include:
●
Advanced connectivity and telematics
for next-gen fleet management;
●
OTA upgrade capability;
●
Third party application integration
on touch screen display;
●
Surround view cameras for improved
visibility; and
●
Equipped with advanced autonomy
and ready-for-future capabilities.
SLMD's adaptive modular
design enables additional use cases (utilities, tradesmen, and others) with minimal additional time or investment.
Manufacturing Strategy
FF builds its FF 91 series
vehicles in its manufacturing facility in Hanford, California, which has an estimated annual capacity of 10,000 vehicles. FF will conduct
operations similar to traditional vehicle manufacturing facilities such as body assembly, paint operations, final vehicle assembly, and
end-of-line testing for FF 91 in the Hanford manufacturing facility. FF intends for its vehicle engineering and manufacturing teams to
work alongside one another to streamline the feedback loop for rapid product enhancements and quality improvement and will extensively
utilize virtual manufacturing simulation methods to validate operations and improve the manufacturing processes.
For additional capacity for
production of the FF 91 (
i.e.
, exceeding 10,000 vehicles annually), FF can expand production operations in Hanford or seek capacity
expansion elsewhere. For the FF 81, FF plans to outsource direct vehicle production to its contract manufacturing partner in South Korea,
as FF believes outsourcing will reduce capital investment and accelerate its go-to-market strategy for producing and delivering the FF
81, while providing the benefit of flexibility to scale volume to match demand level. FF may outsource the production of the FF 71 to
its contract manufacturing partner in South Korea or a manufacturing partner in China or elsewhere. These plans align with FF's
hybrid, flexible manufacturing strategy. For more information about FF's manufacturing facility, see the discussion below under
the heading "
- Facilities
." For more information about FF's contract manufacturing and supply agreement with
Myoung Shin in South Korea, see the discussion below under the heading "
- Key Agreements and Partnerships
."
Sales, Delivery, and Servicing of Vehicle
FF initiated delivery of the
first FF 91s in 2023. FF is adopting a direct sales model that utilizes a mix of online and offline presence to drive sales. FF's
offline sales network will consist of FF experience centers and FF Partner-owned experience centers. The self-operated experience centers
are expected to establish FF brand awareness and provide a seamless vehicle purchase experience, while the FF Partner-owned experience
centers (established dealerships) are expected to expand the sales and distribution network without substantial capital investment by
FF.
127
FF's contemplated flagship
experience center, which is under construction, will be located in Beverly Hills, California. FF may consider other Company-operated experience
centers in the U.S., China and the Middle East. These locations would operate as experiential showrooms for FF's electric vehicle
models and would provide sales, after-sales, and charging services. The FF Partner-owned stores and showrooms would support FF's
online-to-offline sales model, vehicle delivery, charging service and other user operations.
All purchase transactions will
be processed online through FF's website or mobile apps, while FF Partners will support the process (including demonstration drives
and providing vehicle information) and receive compensation based on a revenue sharing model and territory and/or services performed.
Users accessing FF.com can directly purchase the vehicle online and can choose their closest FF experience centers or FF Partner-operated
experience centers and showroom for support. Customers going to an FF Partner-operated experience center will be supported by staff and
directed to FF.com for purchasing. FF believes that once the reputation of FF's vehicles has been established and users are familiar
with FF vehicles, an increasing share of the vehicle sales process is likely to be completed fully online. This will further free up offline
capacity and potentially increase productivity for FF's Partner-operated experience centers. As FF will oversee delivery of the
vehicles, both FF stores and FF Partner-operated experience centers and showrooms will be able to run their operations in an asset-light
fashion.
The FF Partner-owned experience
centers and showrooms will be the prioritized network for servicing FF's vehicles, which may include repair, maintenance, and bodywork
services. FF will also contract with select third-party service centers to ensure coverage and will deploy mobile service vans based on
user demand. To ramp up its service capabilities, FF Eco Sales Company, LLC, FF's sales subsidiary, has engaged Somit Solutions
(KPIT) to support FF Aftersales with the development of the underlying systems required to support all after-sales elements, such as repair
order, warranty, parts catalog, repair manuals to support the expansion of the FF Service Network. Additionally, FF plans to engage with
a national automotive services provider to support FF Aftersales operations, such as shipping logistics, as well as leveraging a service
center network. FF users will benefit from FF's connected remote service platform.
FF outlined a 3-phase delivery
plan aimed at delivering the best experience to all our users. This initial phase launched at the end of May 2023, marking the start of
FF's delivery plan for the vehicle to the industry expert Futurist Product Officers (FPO).
In phase two, all FPO(s) are
invited to purchase the vehicle and take full possession, receiving comprehensive training on vehicle's features. The second phase launched
in August, 2023, and FF became a revenue generating company. In the meantime, FF continues to optimize its brand strategy, including the
second brand strategy.
In the third and final phase,
the FF 91 is made available to all users.
Co-Creation Program
Instead of the traditional one-way sales and marketing
approach that is common in the automotive space, FF intends to build a direct and reciprocal relationship with our user base. On August
12, 2023, FF delivered the first FF 91 2.0 Futurist Alliance to its first industry expert Developer Co-Creator. FF intends to build brand
awareness through this program.
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Other Sales and Service
Capabilities
To
complement our brand-building efforts, our sales team was busy at building out our sales and services capabilities.
Here's
an overview of our recent advancements:
●
Leasing Program Launch: In collaboration
with Luxury Lease Partners, we've initiated a leasing program for our FF 91 2.0 Futurist Alliance owners. With competitive pricing, customers
can acquire our flagship model with just a few electronic clicks, in line with our vision of an intelligent electric future.
●
Mobile Service Fleet: We've
activated our mobile service fleet, offering on-demand concierge service to our first FF 91 2.0 Futurist Alliance owners.
●
Bureau of Automotive Repair
License: Holding a license from the California Bureau of Automotive Repair is a testament to our commitment to uphold the highest compliance
standards in vehicle maintenance, warranty repairs, and service.
●
Home Charging Installation Program
Activation: In alliance with Qmerit Electrification, we've launched our home charging installation program. The FF Home Charger, which
supports up to 19.2 kW, is a Wi-Fi-connected smart charger compatible with most EVs.
●
Public Charging Program: Ensuring
uninterrupted travel for our vehicle owners, we've rolled out a public charging program. Every FF 91 2.0 Futurist Alliance owner is entitled
to $1,000 charging credits, applicable across major US EV charging networks.
FF Suppliers
FF has partnered with suppliers
in North America, Europe, and Asia, and has on-boarded suppliers for all parts for the FF 91. FF aims to obtain systems, components, raw
materials, parts, manufacturing equipment, and other supplies and services from suppliers which FF believes to be reputable and reliable.
Intellectual Property
FF has significant capabilities
in the areas of vehicle engineering, development and design, and has developed a number of proprietary systems and technologies. As of
October 8, 2024, FF had been granted approximately 660 patents (with approximately a third issued in the U.S., slightly less than two-thirds
issued in China, and the remaining issued in other jurisdictions). These patents are issued to various FFIE entities, including Faraday
Future, Faraday & Future, FF Automotive (China) Co., Ltd., Leka Automotive Intelligent Technology (Beijing) Co., Ltd., and LeEco Eco-Car
(Zhejiang) Co., Ltd. FF intends to continue to file additional patent applications with respect to its technology. FF's patented
technology covers UI/UX, powertrain, ADAS, body, hardware/software platform and chassis. Key patents include FF's inverter assembly,
integrated drive and motor assemblies, methods and apparatus for generating current commands for an interior permanent magnet ("IPM")
motor and seamless vehicle access system. These key patents will expire in 2035 or 2036.
129
Properties
FF leases all of its facilities.
The following table sets forth the location, approximate size, primary use and lease term of FF's major facilities as of December 31,
2023:
Location
Approximate
Size
(Building)
in Square
Feet
Primary Use
Lease
Expiration
Date
Gardena, California
146,765
Global headquarters, research and development, office
April 30, 2027
FF's ieFactory California
1,100,000
Manufacturing
October 19, 2028
Beverly Hills, California
12,947
Retail
August 31, 2032
San Jose, California
30,260
Office
March 31, 2025
Gardena, California
12,650
Office
March 31, 2027
Beijing, China
273
Administrative services, research and development, strategic planning
December 14, 2024
FF
is finalizing the refurbishment of the FF ieFactory California manufacturing facility.
The facility is finishing the
main components which includes a body shop, a paint shop, component manufacturing and an assembly line. The FF ieFactory California manufacturing
facility is approximately 1.1 million square feet and, once it is built out, is expected to have the capacity to support a production
of 10,000 vehicles per year.
Legal Proceedings
From
time to time, FF may become involved in legal proceedings arising in the ordinary course of business. We are currently a party to various
legal or governmental proceedings, the outcome of which, although currently uncertain, if determined adversely to us, could individually
or in the aggregate have a material adverse effect on our business, financial condition, and results of operations.
Key Agreements and Partnerships
Strategic Partnership with Myoung Shin,
South Korea
In February 2022, FF U.S. entered
into a definitive contract manufacturing and supply agreement with Myoung Shin Co., Ltd. ("Myoung Shin"), a South Korea-based
automotive manufacturer and parts supplier, to manufacture the Company's second vehicle, the FF 81. The agreement has an initial
term of nine years from the start of production of the FF 81. Pursuant to the agreement, Myoung Shin shall maintain sufficient manufacturing
capabilities and capacity to supply FF 81 vehicles to FF in accordance with the Company's forecasts and purchase orders. FF and
Myoung Shin will each manufacture and supply certain FF 81 parts that Myoung Shin will use in the manufacture and assembly of FF 81 vehicles.
Potential Partnership with Geely Holding
In December 2020, FF U.S. entered
into a non-binding memorandum of understanding with Zhejiang Geely Holding Group Co., Ltd. ("Geely Holding"), who was also
a subscriber in the Private Placement, pursuant to which the parties contemplate a strategic cooperation in various areas including engineering,
technology, supply chain, and contract manufacturing.
In January 2021, FF Intelligent
Mobility Global Holdings Ltd., FF Automotive (Zhuhai) Co., Ltd. and FF Hong Kong Holding Limited entered into a cooperation framework
agreement with Zhejiang Geely Holding Group Co., Ltd. pursuant to which Geely Holding agreed to explore the possibility of joint investment
in the technology licensing, contract manufacturing and joint venture with FF and the city, as well as to pursue the possibility of further
business cooperation with the joint venture. The joint venture and contract manufacturing projects with Geely Holding are on hold.
130
After-Sales and Service
FF U.S. has engaged Somit Solutions (KPIT) to support
the development of the underlying After-sales Service Systems (U.S. and China), plans to further engage a US based national automotive
services provider to support Aftersales Operations (U.S. only), and has engaged SalesForce (U.S. only) to deliver and service the FF 91
in compliance with governmental agencies and to support critical path alignment with the Company's user journeys.
Strategic Agreement with the City of Huanggang
On January 17, 2023, FF announced
that, in the third quarter of fiscal year 2022, it had reached a non-binding Cooperation Framework Agreement with the government of the
City of Huanggang in Hubei Province, China ("Huanggang"), for promoting FF's U.S.-China dual-home market strategy. According
to the Cooperation Framework Agreement, FF intends to relocate its FF China headquarters to Huanggang, while maintaining its global headquarters
in Los Angeles, California. In accordance with the Cooperation Framework Agreement, both parties are expected to contribute their respective
advantages in investment, scientific and technological innovation, industrial transformation, location, and policy. Huanggang is expected
to actively assist FF by providing assistance with industrial layout and deployment of resources and providing financial and policy support.
The FF China headquarters is expected to be jointly funded by the Huanggang Government guide fund, industrial fund, and FF.
Human Capital Management and Resources
As of October 1, 2024, FF had
238 full time employees globally. A majority of FF's employees are engaged in research and development and related engineering,
manufacturing, and supply chain functions. To preserve its current cash position, FF may implement additional headcount reductions, taking
into account FF's financial condition and market conditions.
In the future, FF may ramp
up additional hiring efforts for its targeted vehicle production and delivery. FF's targeted hires typically have significant experience
working for reputable OEMs, software, internet, consumer electronics and artificial intelligence companies, as well as tier-one automotive
suppliers and engineering firms
.
FF has not experienced any work stoppages and considers its relationship with its employees
to be good. None of FF's employees are subject to a collective bargaining agreement or represented by a labor union.
The FF team is composed of
experienced talent from a variety of industry backgrounds and nationalities with a common goal of creating highly innovative and unique
products. FF's human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing and
integrating existing and additional employees. FF is committed to the principle of ESG and is committed to building a safer, cleaner world.
We have a diverse workforce and are committed to maintaining the highest standards of ethics and behavior.
Governmental Regulations, Programs and Incentives
FF operates in an industry
that is subject to extensive environmental regulation, which has become more stringent over time. The laws and regulations to which FF
is subject govern, among others, vehicle emissions and the storage, handling, treatment, transportation and disposal of hazardous materials
and the remediation of environmental contamination. Compliance with such laws and regulations at an international, regional, national,
provincial and local level is critical to FF's ability to continue its operations.
Environmental standards applicable
to FF are established by the laws and regulations of the countries in which FF operates, standards adopted by regulatory agencies and
the permits and licenses issued to FF. Each of these sources is subject to periodic modifications and comprise what FF anticipates will
be increasingly stringent requirements. Violations of these laws, regulations or permits and licenses may result in substantial administrative,
civil or even criminal fines, penalties and orders to cease any violating operations or to conduct or pay for corrective work. In some
instances, violations may also result in the suspension or revocation of permits or licenses.
131
Vehicle Safety and Testing Regulation
FF vehicles will be subject
to, and must comply with, numerous regulatory requirements established by the National Highway Traffic Safety Administration ("NHTSA"),
including all applicable FMVSS. As a manufacturer, FF self-certifies that its vehicles meet all applicable FMVSSs before the vehicles
can be sold in the U.S. There are many FMVSSs that apply to FF vehicles, such as crash-worthiness requirements, active safety requirements
and electric vehicle requirements (e.g., limitations on electrolyte spillage, battery retention and avoidance of electric shock after
certain crash tests).
In addition to FMVSS, FF is
required to comply with other federal laws administered by NHTSA, including the Corporate Average Fuel Economy ("CAFE") standards,
Theft Prevention Act requirements, consumer information labeling requirements, early warning reporting requirements regarding warranty
claims, field reports, death and injury reports and foreign recalls and owners' manual requirements. FF must also comply with the
Automobile Information and Disclosure Act, which requires manufacturers of motor vehicles to disclose certain information regarding the
manufacturer's suggested retail price, optional equipment and other pricing. In addition to meeting NHTSA obligations, FF is also
required to comply with the Environmental Protection Agency (EPA) and California Air Resource Board (CARB) with respect to annual compliance
certification and running change impacts in case the vehicle range is impacted by software or hardware updates. Additionally, NHTSA can,
at its discretion, purchase FF vehicles to run a New Car Assessment Program (NCAP), which would require the crash test results to be printed
on the Monroney Label, as part of the consumer information federal requirements, which combines both NHTSA and EPA consumer information
in a single document that is affixed to each new vehicle sold.
FF vehicles sold outside of
the U.S. will be subject to similar foreign safety, environmental, and other regulations. If those regulations and standards are different
from those applicable in the U.S., FF will redesign and/or retest its vehicles. For example, the European Union ("E.U.") has
published new Vehicle General Safety Regulations, applying from July 6, 2022, which introduced a range of mandatory advanced driver assistant
systems to improve road safety and establishes the legal framework for the approval of automated and fully driverless vehicles in the
EU., FF vehicles sold in China will be subject to compulsory product certification by certification authorities designated by the State
Certification and Accreditation Administration Committee. Additionally, for FF vehicles to be approved for manufacture and sale in China,
FF vehicles will need to be added to the Announcement of Vehicle Manufacturers and Products issued by the Ministry of Industry and Information
Technology ("MIIT") of China, by showing compliance with the relevant safety and technical requirements and other conditions,
including among others, the Administrative Rules on the Admission of New Energy Vehicle Manufacturers and Products and the Administrative
Rules on the Admission of Passenger Vehicles Manufacturer and Products, and passing the review by the MIIT.
Battery Safety and Testing Regulations
FF's battery packs must
conform to mandatory regulations governing the transport of "dangerous goods" that may present a risk in transportation, which
includes lithium-ion batteries, and are subject to regulations issued by the Pipeline and Hazardous Materials Safety Administration. ("PHMSA").
These regulations are based on the UN Recommendations on the Safe Transport of Dangerous Goods Model Regulations and related UN Manual
Tests and Criteria. The regulations vary by mode of transportation when these items are shipped, such as by ocean vessel, rail, truck,
or air. FF will complete the applicable transportation tests for its battery packs, demonstrating its compliance with applicable regulations.
FF uses lithium-ion cells in its high-voltage battery packs. The use, storage and disposal of FF's battery packs is regulated under
federal law. FF will enter into agreements with third-party battery recycling companies to recycle FF's battery packs. In addition
to this, China and Europe have stringent battery safety regulations which FF designs its batteries to comply with.
132
Environmental Credits
In connection with the production,
delivery, and placement into service of FF's zero-emission vehicles, FF may earn tradable credits under certain governmental programs
designed to incentivize such activities. FF may sell FF future credits to automotive companies and other regulated entities who can use
the credits to comply with emission standards and other regulatory requirements. Under the Environmental Protection Agency's Light-Duty
Vehicle Greenhouse Gas Emissions Standards, FF may generate carbon dioxide emissions credits that can be sold to conventional internal
combustion engine vehicle manufacturers. On December 30, 2021, EPA issued new greenhouse gas emissions standards for model years 2023-2026
light duty vehicles that accelerates the annual year-over-year increase in the stringency of the standards from 1.5% to 5-10%. These standards
include carbon dioxide emission credit multipliers for the sale of electric vehicles, and EPA predicts that the standards will result
in electric and plug-in hybrid vehicles having a market share of approximately 17% by model year 2026. Similarly, on August 25, 2022,
the California Air Resources Board approved the Advanced Clean Cars II rule, which amends California's existing Zero Emission Vehicle
Regulation to require an increasing number of zero-emission vehicles starting with model year 2026 and growing to a 100% transition of
light duty passenger vehicles to electric vehicles by model year 2035. Under both federal and California regulations, FF may earn salable
regulatory credits as vehicle manufacturers are required to meet annual emissions or zero-emissions vehicle sales requirements or purchase
commensurate offset credits. FF may also earn similar fuel economy and clean fuels credits under other regulatory regimes in the U.S.
and abroad.
EPA Emissions and Certification
The U.S. Clean Air Act requires
that FF obtain a Certificate of Conformity issued by the EPA and approval under California Executive Order issued by CARB certifying that
FF vehicles comply with all applicable emissions requirements. A Certificate of Conformity is required for vehicles sold under the EPA
Clean Air Act's standards. A CARB Executive Order is required for vehicles sold in states that have adopted California's stricter
standards for emissions controls related to new vehicles and engines sold in such states. States that have adopted the California standards
as approved by EPA also recognize the CARB Executive Order for sales of vehicles, of which the FF 91 is certified under the CARB executive
order as a zero-emission vehicle. In addition to California, there are 17 other states that have either adopted or are in the process
of adopting the stricter California standards, including New York, Massachusetts, Vermont, Maine, Pennsylvania, Connecticut, Rhode Island,
Washington, Oregon, New Jersey, Maryland, Virginia, Delaware, Colorado, Minnesota, Nevada, Virginia, and New Mexico. FF has current for
the FF 91 both the EPA certificate of conformity and is certification from CARB as being a zero-emission vehicle, and an EPA attested
range of 381 miles. Starting in model year 2026, FF must also meet California data standardization requirements for zero-emission vehicles,
which specifies required vehicle and battery data that must be made available to vehicle owners through a scan tool device.
Regulation-
-
Self Driving
Currently, there are no federal
U.S. regulations pertaining to the safety of self-driving vehicles; however, the NHTSA has established recommended guidelines. Certain
U.S. states have legal restrictions on self-driving vehicles, and many other states are considering them. This patchwork of licensing
requirements increases the legal complexity for FF's vehicles. In Europe, certain vehicle safety regulations apply to self-driving
braking and steering systems, and certain treaties also restrict the legality of certain higher levels of self-driving vehicles. Self-driving
laws and regulations are expected to continue to evolve in numerous jurisdictions in the U.S. and foreign countries, and may create restrictions
on self-driving features that FF develops. International standards exist for ensuring the safety of intended functionality, which provides
a framework for original equipment manufacturers (OEM) to build a safety case as part of the development of robustly designed and validated
self-driving vehicles. For the current deployment of self-driving vehicles, permits are required which include approved, limited, operational
design domains which define the limits to which self-driving vehicles are able to operate in.
Automobile Manufacturer and Dealer Regulation
U.S. state laws regulate the
manufacture, distribution and sale of automobiles, and generally require motor vehicle manufacturers and dealers to be licensed in order
to sell vehicles directly to consumers in the state. FF will need to secure dealer licenses (or their equivalent) and engage in sales
activities for its self-operated experience centers and service centers, while partners in certain states will support by providing services
via partner-owned experience centers and showrooms. FF U.S. has received its dealer license from the State of California and is able to
sell automobiles across the U.S.
In China, automobile suppliers
and dealers are required to receive a business license and file and update the relevant information through the information management
system for the national automobile circulation operated by the competent commerce department in China. Additionally, according to the
Administrative Measures on Automobile Sales, automobile suppliers and dealers shall sell automobiles, spare parts, and other related products
that are in compliance with relevant provisions and standards of the state, and the dealers shall, in an appropriate manner, expressly
indicate the prices of automobiles, spare parts, and other related products as well as the rates of charges for various services on their
business premises, and shall not sell products at higher prices or charge other fees without express indication.
133
Competition
FF has experienced, and expects
to continue to experience, intense competition from several companies, particularly as the transportation sector increasingly shifts towards
low-emission, zero-emission, or carbon neutral solutions. Many established and new automobile manufacturers have entered or have announced
plans to enter the alternative fuel and electric vehicle market. Many major automobile manufacturers, such as Tesla, Porsche, Mercedes,
Rolls Royce and Audi, have electric vehicles available today. Other current and prospective automobile manufacturers are also developing
electric vehicles, for example Nio, xPeng, Li Auto, Lucid Motors, Canoo and Fisker, among others. In addition, several manufacturers offer
hybrid vehicles, including plug-in versions. FF directly competes with other pure-play electric vehicle companies targeting the high-end
segment, while also competing to a lesser extent with new energy vehicles ("NEVs") and internal combustion engine ("ICE")
vehicles in the mid to high-end segment offered by traditional OEMs. FF believes the primary competitive factors in the electric vehicle
market include, but are not limited to:
●
pricing;
●
technological innovation, recently
enhanced through PT Gen 2.0;
●
vehicle performance, quality,
safety and reliability;
●
space, comfort, and user experience;
●
service and charging options;
●
design, styling, and interior
materials; and
●
manufacturing efficiency.
FF believes that it will compete
favorably with its competitors on the basis of these factors. However, most of FF's current and potential competitors have greater
financial, technical, supply chain, manufacturing, marketing, and other resources than FF. They may be able to deploy greater resources
to the design, development, manufacturing, supply chain, distribution, promotion, sales, marketing, and support of their electric vehicles.
Additionally, FF's competitors may also have greater name recognition, longer operating histories, lower cost of materials, larger
sales forces, broader customer and industry relationships, and other resources than FF does.
Enforceability
Certain of our current operations
are conducted in the PRC through our wholly owned subsidiaries. All or a substantial portion of the assets of these persons are located
outside the U.S. and in the PRC. As a result, it may not be possible to effect service of process within the U.S. or elsewhere outside
the PRC upon these persons. In addition, uncertainty exists as to whether the courts of the PRC would recognize or enforce judgments of
U.S. courts obtained against us or such director predicated upon the civil liability provisions of the securities laws of the U.S. or
any state thereof, or be competent to hear original actions brought in the PRC against us or such director predicated upon the securities
laws of the U.S. or any state thereof. See "
Risk Factors - Risks Related to FF's Operations in China - There may be difficulties
in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments or bringing original
actions in China based on United States or other foreign laws against us and our management
."
134
MANAGEMENT
The following table sets forth, as of October 2,
2024, certain information regarding our directors and executive officers who are responsible for overseeing the management of our business.
Name
Age
Position
Matthias Aydt
67
Global Chief Executive Officer and Director(4)
Yueting Jia
50
Chief Product and User Ecosystem Officer
Koti Meka
55
Chief Financial Officer
Scott Graziano
53
Global General Counsel
Chui Tin Mok
49
Executive Vice President, Head of User Ecosystem, and Director(4)
Hong Rao
53
Vice President, I.A.I.
Chad Chen
41
Director(1)(2)(3)
Jie Sheng
41
Director(1)(2)(3)(4)
Lev Peker
42
Director(1)(3)
(1)
Member of the Audit Committee
(2)
Member of the Nominating and Corporate Governance Committee
(3)
Member of the Compensation Committee
(4)
Member of the Finance and Investment Committee
Executive Officers and Directors
Mr.
Yueting Jia,
50, is the Founder of FF and has served as FF's Chief Product and User Ecosystem Officer since September
2019 and served as CEO from 2017 to September 2019. In 2003, Mr. Jia founded Xbell Union Communication Technology (Beijing) Co., a Singapore
publicly-listed company that developed and launched China's first mobile video streaming software system. In 2004, he founded LeTV,
a video streaming website. In 2011, YT Jia founded Le Holdings Co. Ltd ("LeEco"), which is an internet ecosystem technology
company with business segments including smart phones, smart TV, smart cars, internet sports, video content, internet finance and cloud
computing. In 2014, YT Jia founded FF. YT Jia defined and led the team in creating the FF 91. As Chief Product and User Ecosystem Officer,
YT Jia oversees activities in product innovation, strategy and definition; internet, AI and autonomous driving; user experience, user
acquisition and user operation, capital markets, human resources and administration, corporate strategy and China departments and reports
directly to the Board.
Mr. Matthias Aydt
, 67,  serves
as FF's Global Chief Executive Officer. Before that he served as FF's Senior Vice President of Product Execution since December
13, 2022, and had previously served as FF's Senior Vice President of Business Development and Product Definition since November
2019, overseeing business development of FF's business to business sales, technology licensing and strategic cooperation as well
as leading its product strategy for future products, and has served as a member the Board since July 2021. Mr. Aydt served as a member
of the Board since July 2021. Mr. Aydt has served in various leadership roles at FF, including Senior Vice President of Product Execution,
Vice President of Vehicle Engineering and Vehicle Chief Engineer and Head of Hardware Architecture. Mr. Aydt has extensive experience
in the automotive industry. Prior to joining FF in July 2016, Mr. Aydt served as the Vice President of Vehicle Engineering of Qoros Auto
from January 2015 to May 2016, held various positions at Magna Steyr from 2006 to 2014, including Branch Manager and Head of Project Management
at Magna Steyr China. Mr. Aydt received his Bachelor of Science degree from Fachhochschule Ulm - Hochschule für Technik.
Mr.
Scott Graziano,
53, has served as Global General Counsel at Faraday Future since September 2023. Prior to joining FF, he
served at Healthpeak Properties, Inc. (NYSE: DOC) from October 2015 to September 2023, including as Senior Vice President and Deputy General
Counsel beginning in February 2017, as well as Corporate Secretary. Prior to joining Healthpeak, Mr. Graziano served as Director –
Securities and Corporate Governance at Western Digital Corporation (NASDAQ: WDC). Prior to that, Mr. Graziano was a counsel at the law
firm of O'Melveny & Myers LLP in Newport Beach, California, and Shanghai, China, from November 2004 to January 2015, and an
associate at the law firm of Shearman & Sterling LLP in New York City from September 2000 to November 2004.
135
Mr. Chui Tin Mok
, 49, has served
as FF's Global Executive Vice President and the Global Head of User Ecosystem since August 2018 and was appointed to the Board effective
as of January 25, 2023. Mr. Mok is experienced in managing marketing and sales functions in global internet tech companies. Prior to joining
FF, Mr. Mok worked in Trend Lab Limited, which Mr. Mok founded in January 2018. From September 2017 to January 2018, Mr. Mok was the President
of EFT Solutions Limited (HKEx: 8062), a Hong Kong public company that provides online and offline payment solutions. From 2013 to 2017,
Mr. Mok served as the Group Chief Marketing Officer of LeEco Group and also the Chief Executive Officer of LeEco APAC. Mr. Mok served
as the Global Vice President of Sales and Marketing of Meizu Technology Co., Ltd. from 2010 to 2013. Mr. Mok received his Higher Diploma
in Building Service Engineering from Hong Kong Institute of Vocational Education, and his Executive Master's Degree in Business
Administration from International Business Academy of Switzerland.
Mr. Mok is well-qualified to serve on the Board
based on his management and sales experience with global technology companies.
Mr. Koti Meka
,
55,
was appointed to be the Chief Financial Officer effective September 23, 2024.
Mr. Meka had
served as the Company's Acting Head of Finance Operations since November 2023, managing finance operations, heading financial planning
and analysis, and supporting process improvement, target setting and cost-reduction efforts. Previously, he served as the Company's
Director of Finance (FP&A) from July 2017 to November 2023, Operations Controller from August 2016 to July 2017, and Senior Manager,
Cost Estimating from February 2016 to August 2016. Prior to joining the Company in February 2016, Mr. Meka worked at Ford Motor Company
from July 2002 to February 2016 in cost optimization, product development finance and corporate finance, including leading financial analysis
at Ford Business Services Center in Chennai, India from December 2009 to July 2013. He holds an MBA from the University of Michigan-Dearborn,
an M.S. in Mechanical Engineering from Wayne State University and a B.Tech. in Mechanical Engineering from Jawaharlal Nehru Technological
University, India
Mr. Hong Rao
,
53,
has
served as FF's Vice President of I.A.I. (Internet, Autonomous Driving, Intelligence) since April 2015, overseeing technology innovation,
product and technology roadmap, system architecture, software and AI, among others. Prior to joining FF, Mr. Rao served as Co-Founder
and Chief Technology Officer at Borqs Technologies from October 2007 to March 2015 and held several engineering leadership positions at
Motorola from 2003 to 2007. Mr. Rao received his Master of Business Administration degree from Arizona State University, his Master of
Science degree in Electrical Engineering from Beijing Institute of Technology, and his Bachelor of Science degree in Electrical Engineering
from Shanghai University of Science & Technology.
Mr. Chad Chen
,
41, was appointed
to the Board on October 27, 2022, pursuant to the FF Top Amendment to the FF Top Voting Agreement. See "
Certain Relationships
and Related Person Transactions – Certain Relationships and Related Person Transactions — the Company – Voting Agreements
by FF Top Holding LLC and Season Smart Limited
" for more information. He is a partner with the law firm of Yoka | Smith, LLP
("Yoka Smith"), where he has practiced since 2012. Mr. Chen represents national and multinational clients in both litigation
and non-litigation matters. Mr. Chen's litigation practice includes representing corporate clients in commercial and business disputes,
product liability defense, and class action defense. His non-litigation practice encompasses contract management, counseling on business
transactions and serving as outside general counsel in dealing with local, state, and federal agencies, including the U.S. Department
of the Treasury, the U.S. Department of Commerce, the United States International Trade Commission, and various tax authorities. Prior
to joining Yoka Smith, Mr. Chen worked in-house at an alternative energy company and was an associate with Collins + Collins, LLP (formerly
Collins, Muir + Stewart LLP). He received his Juris Doctor degree from Southwestern Law School in Los Angeles, California and his Bachelor
of Arts in Economics and Political Science from the University of California, Irvine.
Mr. Chad Chen is well-qualified to serve on the
Board based on his significant experience advising corporate clients in a wide variety of legal and compliance matters.
Mr. Jie Sheng
,
41, has served as
a member of the Board since December 18, 2022. Mr. Sheng is currently the Head of Operations & Finance Director of FF Global, a position
he has held since June 2022. FF Global, through its subsidiary FF Top, is the Company's largest stockholder. From October 2018 to
June 2022, Mr. Sheng served as Deputy Managing Director of China Aviation Fuel (Europe) Limited, a wholly-owned subsidiary of China Aviation
Oil (Singapore) Corporation ("CAO"), a Singapore Exchange-listed Company, which in turn is a majority-owned subsidiary of
China National Aviation Fuel Group Corporation, a Fortune 500 company and the largest Chinese state-owned aviation fuel supplier which
integrates the purchase, transportation, storage, quality management, sales and into-plane service of aviation fuel in China. From October
2008 to October 2018, Mr. Sheng served as Executive Director of Finance of North American Fuel Corporation, also a wholly-owned subsidiary
of CAO, which conducts aviation fuel procurement, supplies jet fuel, and engages in general aviation endeavors in North America. Mr. Sheng
received a master's degree in accounting and financial economics from the University of Essex in 2008.
136
Mr.
Sheng is well-qualified to serve on the Board based on his extensive leadership experience in and knowledge of logistics in the transportation
industry.
Mr.
Lev Peker,
42, has served as a member of the Board since August 4, 2023. Mr. Peker is an automotive and retail experienced
C-Suite executive who has served in the CEO role as well as on the board of directors at various public and private organizations. He
has a results-driven mindset and a strong track record of performance in turnaround and high-paced organizations. Mr. Peker is currently
the CEO of PartsiD, a leading digital commerce platform for the automotive aftermarket, a position he has held since April 2023. Prior
to this role, Mr. Peker served as the CEO of CarLotz, a nationwide used car consignment retailer (which recently merged with Shift Technologies),
from April 2022 to December 2022. Prior to that role, Mr. Peker was the CEO of CarParts.com from 2019 to 2022 where he oversaw a more
than doubling of annual revenue, a nearly fourfold improvement in EBITDA and an increase in market capitalization of over 500%. He also
led the organization through a turnaround and strategic repositioning, while creating a three-year plan to increase operational efficiency,
maximize inventory, and improve the customer experience. Mr. Peker has also held various executive roles at Adorama, Sears Holdings Corporation
and US Auto Parts in his career. Mr. Peker is a Certified Public Accountant (CPA), has an MBA from The Anderson School of Management
at UCLA and a BS in Accounting from USC's Marshall School of Business.
Mr.
Peker is well-qualified to serve on the Board based on his extensive corporate experience and expertise in the field.
There
are no family relationships among any of our directors or executive officers.
Independence
of Directors
FF
adheres to the rules of Nasdaq in determining whether a director is independent. The Board has consulted, and will consult on an ongoing
basis, with its counsel to ensure that the Board's determinations are consistent with those rules and all relevant securities and
other laws and regulations regarding the independence of directors. Nasdaq listing standards generally define an "independent director"
as a person, other than an executive officer of a company or any other individual having a relationship which, in the opinion of the
Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The Board has determined
that Chad Chen, Jie Sheng and Lev Peker are independent directors.
The
independent members of the Board have regularly scheduled meetings at which only independent directors are present. A majority of the
Board will remain independent, meaning FF cannot elect to be a controlled company under Nasdaq listing rules, until the market capitalization
of FF exceeds $20.0 billion (or $3.0 billion if certain Charter Amendments are approved and made to the Amended and Restated Charter)
and the Board elects to become a controlled company as a result of FF Top having requisite voting power for FF to become a controlled
company, or FF otherwise becomes a controlled company.
Risk
Oversight
The
Board oversees the risk management activities designed and implemented by management. The Board executes its oversight responsibility
both directly and through its committees. The Board also considers specific risk topics, including risks associated with its strategic
initiatives, business plans and capital structure. FF's management, including its executive officers, is primarily responsible
for managing the risks associated with the operation and business of FF and provides appropriate updates to the Board and the Audit Committee.
The Board has delegated to the Audit Committee oversight of its risk management process, and its other committees also consider risk
as they perform their respective committee responsibilities.
137
The
Audit Committee assists the Board in oversight of cybersecurity risks, in addition to oversight of the performance of our audit function.
We have implemented a number of security measures designed to protect our systems and data, including firewalls, antivirus and malware
detection tools, patches, log monitors, routine back-ups, system audits, routine password modifications, and back-up recovery procedures.
We utilize third-party cloud services in connection with our operations. We and our third-party service providers have also designed
certain security features into our solutions. FF employees receive a comprehensive information security awareness training periodically
throughout the year. Our Nominating and Corporate Governance Committee monitors the effectiveness of our Corporate Governance Guidelines,
including whether they are successful in preventing illegal or improper liability-creating conduct. The Nominating and Corporate Governance
Committee is also responsible for overseeing FF's environmental, sustainability and governance efforts and progress and related
risks. Our Compensation Committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage
excessive risk-taking. All committees report to the Board, as appropriate, including when a matter rises to the level of material or
enterprise risk.
Board
Composition
The
Board directs the management of FF's business and affairs, as provided by Delaware law, and conducts its business through meetings
of the Board and its standing committees. The Board consists of five members, all of whom are standing for re-election at the Annual
Meeting to serve a one-year term and until their successor has been duly elected and qualified or until their earlier death, resignation
or removal.
On
January 20, 2023, Mr. Qing Ye tendered his resignation from the Board, which resignation was effective immediately. Mr. Ye
remained a consultant of the Company as an independent contractor until September 15, 2023. On January 25, 2023, Mr. Chui
Tin Mok was appointed to the Board, effective immediately, following the resignation of Mr. Ye. On March 9, 2023, Mr. Matthias
Aydt (at the time, the Company's Senior Vice President, Product Execution) tendered his resignation from the Board, effective
upon the nomination and approval by the Board of a replacement director. On March 13, 2023, upon the recommendation of the Nominating
and Corporate Governance Committee, the Board appointed Ms. Li Han to fill the vacancy on the Board due to Mr. Aydt's resignation.
On July 31, 2023, Mr. Adam (Xin) He tendered his resignation from the Board and as interim Board Chairman, which resignation
was effective immediately. On August 4, 2023, upon the recommendation of the Nominating and Corporate Governance Committee, the
Board appointed Mr. Lev Peker to fill the vacancy on the Board due to Mr. He's resignation. On September 16, 2023,
Mr. Xuefeng Chen tendered his resignation from the Board and as Global CEO, effective September 29, 2023, in order to resume
his prior position as FF China Chief Executive Officer, based in China, and assume a new role as Executive Vice President of Global Industrialization
of the Company. On September 21, 2023, the Board appointed Mr. Mattias Aydt to succeed Mr. Chen as Global CEO and as a
member of the Board, effective September 29, 2023. On October 10, 2023, Ms. Ke Sun tendered her resignation from the Board,
which resignation was effective immediately. On June 9, 2024, Ms. Li Han tendered her resignation from the Board, which resignation
was effective immediately. In accordance with the Charter and FF Top's consent rights, the Board reduced the size of the Board
from seven to six on October 16, 2023 and from six to five on June 20, 2024, with such reductions resulting in no vacancies
on the Board.
Board
Leadership Structure
The
Board oversees the management of the business and affairs of FF and ensures that the long-term interests of stockholders are served.
It is the ultimate decision-making authority within FF except to those matters that are reserved for FF's stockholders, including
director elections. The Board meets on a regular basis and additionally as it deems appropriate. Pursuant to FF's Corporate Governance
Guidelines, the Board annually determines the leadership structure that it determines to be in the best interests of FF and its stockholders
at the time. If the Chairperson of the Board is not an independent director, the independent directors shall elect from among themselves
a director to serve as the Lead Independent Director upon the recommendation of the Nominating and Corporate Governance Committee. Although
annually elected, the Lead Independent Director is generally expected to serve for more than one year. If the Lead Independent Director
(if any) is not present at any meeting of the independent directors, a majority of the independent directors present shall select an
independent director to preside over that meeting.
Effective
as of October 3, 2022, Mr. Adam (Xin) He was appointed Interim Chairperson of the Board following the resignations of the former
Executive Chairperson and the former Lead Independent Director. The Board believed that the appointment of an independent director as
Chairperson on an interim basis would ensure appropriate transition in Board leadership at a critical time, while allowing the then-Global CEO
to focus on FF's business, operations and strategy. As disclosed above, Mr. He resigned from the Board in July 2023.
The Company expects that the current Board will select a permanent Chairperson of the Board.
138
Under
FF's Corporate Governance Guidelines, in addition to the duties set forth in the Bylaws or as otherwise prescribed by the Board,
from time to time, the duties of the Chairperson include (i) presiding at, and chairing, Board meetings and meetings of stockholders;
(ii) consulting with the Global CEO (if held by a different individual), other executive officers, the chairs of applicable committees
of the Board and the Office of the Secretary to the Board to establish agendas for each Board meeting; (iii) calling Board meetings;
(iv) leading the Board in discussions concerning the Global CEO's performance and Global CEO succession, if such position
is held by an individual other than the Global CEO; (v) approving meeting schedules for the Board; (vi) approving information
sent to the Board; (vii) serving as a liaison for stockholders who request direct communications with the Board; and (viii) performing
such other duties and exercising such other powers, as the Board shall from time to time delegate.
Board
Meetings and Committees
During
fiscal 2023, the Board held 38 meetings, some with recessed sessions. Each director of FFIE attended or participated in 75% or more of
the aggregate of the total number of meetings of the Board and the total number of meetings of all committees of the Board on which such
director served (in each case held during such director's relevant period of service).
Audit
Committee Information
FF's
Audit Committee currently consists of Lev Peker, Chad Chen and Jie Sheng, each of whom is "independent" as such term is defined
for Audit Committee members under the rules of the SEC and the listing standards of Nasdaq. Lev Peker is the chair of the Audit Committee.
The Board has determined that Lev Peker, Chad Chen and Jie Sheng each qualifies as an "audit committee financial expert"
as defined under the rules of the SEC.
As
more fully described in its charter, the primary responsibilities of the Audit Committee include (i) to appoint the independent registered
public accounting firm and oversee the relationship, and approve the audit and non-audit services to be performed by the independent
registered accounting firm; (ii) to review FF's quarterly and annual financial statements with management and the independent registered
public accounting firm; (iii) to review FF's financial reporting processes and internal controls; (iv) to review and approve all
transactions between FF and related persons; and (v) to discuss the policies with respect to risk assessment and risk management, information
technology and cybersecurity risks, and other major litigation and financial risk exposures, and the steps management has taken to monitor
and control such exposures.
The
Audit Committee held 17 meetings during fiscal year 2023. The Audit Committee has adopted a written charter approved by the Board,
which is available on FF's website at https://investors.ff.com/corporate-governance/governance-overview.
Compensation
Committee
FF's
Compensation Committee is currently comprised of Chad Chen, Jie Sheng and Lev Peker, each of whom is "independent" as such
term is defined for Compensation Committee members under the rules of the SEC, the listing standards of Nasdaq and applicable rules of
the Internal Revenue Code of 1986, as amended. Mr. Sheng is the chair of the Compensation Committee.
As
more fully described in its charter, the primary responsibilities of the Compensation Committee include (i) to review and approve
the corporate goals and objectives relevant to Global CEO compensation, evaluate at least annually the Global CEO's performance
in light of those goals and objectives and make recommendations to the Board with respect to the Global CEO's compensation, including
salary, bonus, fees, benefits, incentive awards and perquisites, based on this evaluation; (ii) to recommend to the Board the compensation
of executive officers other than the Global CEO; (iii) to recommend to the Board the adoption, material modification or termination
of FF's compensation plans, including incentive compensation and equity-based plans, policies and programs; (iv) to recommend
to the Board appropriate compensation for FF's non-employee directors, including compensation and expense reimbursement policies
for attendance at Board and committee meetings; (v) to consider whether risks arising from FF's compensation plans, policies
and programs for its employees are reasonably likely to have a material adverse effect on FF, including whether FF's incentive
compensation plans encourage excessive or inappropriate risk taking; and (vi) to determine stock ownership guidelines and monitor
compliance with such guidelines. The Compensation Committee's charter provides that the Compensation Committee may form and delegate
authority to subcommittees consisting of one or more members when it deems appropriate. The Compensation Committee does not currently
intend to delegate any of its responsibilities to a subcommittee.
139
The
Compensation Committee held 15 meetings during fiscal year 2023. The Compensation Committee has adopted a written charter approved by
the Board, which is available on FF's website at
https://investors.ff.com/corporate-governance/governance-overview
.
Nominating
and Corporate Governance Committee
FF's
Nominating and Corporate Governance Committee (the "Nominating Committee") is currently comprised of Chad Chen and Jie Sheng,
each of whom is "independent" under the rules of the SEC and the listing standards of Nasdaq. Mr. Chen is the chair
of the Nominating Committee.
As
more fully described in its charter, the primary responsibilities of the Nominating Committee include (i) to assist the Board in
identifying prospective director nominees and recommending nominees for each annual meeting of stockholders to the Board; (ii) to
make recommendations to the Board regarding its size, membership and leadership, as well as committee membership and structure; (iii) to
develop and recommend to the Board a set of corporate governance guidelines applicable to FF and to monitor compliance with such guidelines;
(iv) to oversee the annual self-evaluation process to determine whether the Board and its committees and individual directors
are functioning effectively and to report the results of the self-evaluation process to the Board; and (v) to oversee FF's
environmental, sustainability and governance efforts and progress.
The
Nominating Committee held 6 meetings during fiscal year 2023. The Nominating Committee has adopted a written charter approved by the
Board, which is available on FF's website at
https://investors.ff.com/corporate-governance/governance-overview
.
Finance
and Investment Committee
FF's
Finance and Investment Committee is currently comprised of Matthias Aydt, Chui Tin Mok and Jie Sheng. Mr. Sheng is the chair of
the Finance and Investment Committee.
As
more fully disclosed in its charter, the principal responsibilities of the Finance and Investment Committee include (i) upon consultation
with or recommendation from FF's Chief Financial Officer, to review with management and make recommendations to the Board matters
relating to the establishment of a share repurchase authorization, debt repurchases, issuance of debt and equity securities, dividend
policy, initiation or amendment of any revolving credit facilities and (a) any proposed merger or consolidation, (b) any significant
acquisition, sale, lease or exchange of property or assets and (c) other significant business transactions; (ii) in the event
of any merger or consolidation, to periodically review with management the progress and integration of the merger or consolidation, including
the achievement of business synergies, business opportunities or initiatives that may result in substantial capital expenditures, commitments
or exposures and major financial undertakings and financing transactions; (iii) to review FF's financial policies, capital
structure, strategy for obtaining financial resources, tax-planning strategies and use of cash flow and make such reports and recommendations
to the Board with respect thereto as it deems advisable; (iv) to oversee the development of long-term capital structure guidelines;
(v) to review the funding obligations and financial performance of benefits plans sponsored by FF; (vi) to review FF's
financial plans and objectives, and review and recommend to the Board annual financial plans, capital plans and budgets; (vii) to
review FF's cash management policies and activities, and review and recommend to the Board certain proposed issuances, repurchases
or redemptions of FF securities; (viii) to review debt limitations and material covenants, loan guarantees of third party debt and
obligations, strategic alliances and investments and target credit ratings; and (ix) to review risk assessment and risk management
policies and strategies for managing certain exposures to financial, operating, or economic risks, including hedging strategies related
to foreign currency, interest rates and other commercial risks, and the steps management has taken to monitor and control such risk exposures,
as well as review certain legal and regulatory matters that may have a material impact on FF's financing or risk management activities
(taking into account the review of FF's risk assessment and risk management policies and strategies managed through FF's
Audit Committee).
The
Finance and Investment Committee held 14 meetings during fiscal year 2023. The Finance and Investment Committee has adopted a written
charter approved by the Board, which is available on FF's website at
https://investors.ff.com/corporate-governance/governance-overview
.
140
Code
of Ethics
FF
has a Code of Ethics that applies to all of its employees, officers, and directors. This includes FF's principal executive officer,
principal financial officer, and principal accounting officer or controller, or persons performing similar functions. The full text of
the Code of Ethics is posted on FF's website at
www.ff.com
. FF intends to disclose on its website any future amendments
of the Code of Ethics or waivers that exempt any principal executive officer, principal financial officer, principal accounting officer
or controller, persons performing similar functions, or FF's directors from provisions in the Code of Ethics.
Guidelines
for Selecting Director Nominees
The
Board is responsible for nominating candidates for election to the Board and for filling vacancies on the Board that may occur between
annual meetings of stockholders, subject to the requirements of the A&R Shareholder Agreement. The Nominating Committee is responsible
for identifying, screening and recommending director candidates (subject to the Heads of Agreement and A&R Shareholder Agreement)
to the full Board, taking into consideration the needs of the Board and the qualifications of the candidates. The Board, based on the
recommendation of the Nominating Committee, will review each director's continuation on the Board in connection with the director's
re-election.
The
Nominating Committee also determines the criteria for Board membership. The guidelines for selecting nominees, which are specified in
the Nominating Committee charter, generally provide that persons to be nominated:
●
should
                                            have demonstrated notable or significant achievements in business, education or public service;
●
should
                                            possess the requisite intelligence, education and experience to make a significant contribution
                                            to the Board and bring a range of skills, diverse perspectives and backgrounds to its deliberations;
                                            and
●
should
                                            have the highest ethical standards, a strong sense of professionalism and intense dedication
                                            to serving the interests of the stockholders.
In
selecting director nominees, the Nominating Committee shall consider a number of qualifications relating to management and leadership
experience, background and integrity and professionalism, such as a general understanding of various business disciplines (e.g., marketing,
finance, etc.), FF's business environment, educational and professional background, analytical ability, independence, industry
experience, diversity of viewpoints and backgrounds, willingness to devote adequate time to Board duties, ability to act in and represent
the balanced best interests of FF and its stockholders as a whole, and support for the long term vision of FF. In conducting this
assessment, the Nominating Committee considers diversity, in the broadest sense, reflecting, but not limited to, gender, racial, ethnicity,
age, skills, industry and professional background. The Board evaluates each individual in the context of the Board as a whole with the
objective of retaining a group that is best equipped to help ensure FF's success and represent stockholder interests through sound
judgment.
It
is the policy of the Nominating Committee to consider persons for Board nomination identified by its members, management, stockholders,
investment bankers and others, and to evaluate those individuals using the same criteria. The Nominating Committee will not distinguish
among nominees recommended by stockholders and other persons. The Company's stockholders may recommend nominees for consideration
by the Nominating Committee by submitting the names and supporting information to the Company's Secretary or the Chair of the Nominating
Committee; provided that the nomination of directors by FF Top is subject to the A&R Shareholder Agreement. Under the A&R Shareholder
Agreement entered into between FF and FF Top, based on FF Top's voting power, FF Top currently has the right to nominate four out
of five directors on the Board.
141
Compensation
Committee Interlocks and Insider Participation
None
of the members of the Compensation Committee is currently, or has been at any time, one of FF's officers or employees. None of
FF's executive officers currently serves, or has served since July 2021, as a member of the board of directors or compensation
committee of any entity that has one or more executive officers serving as a member of the Board or Compensation Committee.
Delinquent
Section 16(A) Reports
Under
Section 16 of the Exchange Act, FF's directors, executive officers and any persons holding more than 10% of FF's common stock
are required to report initial ownership of FF common stock and any subsequent changes in ownership to the SEC. Specific due dates have
been established by the SEC, and FF is required to disclose below any failure to file required ownership reports by these dates. Based
solely upon a review of forms filed with the SEC and the written representations of such persons, FF is aware of no late Section 16(a)
filings except as follows: (i) for Rao Hong, failure to file a Form 4 related to a grant of performance stock option for start-of-production
of the EV car model FF 91; (ii) for Matthias Aydt, a late Form 4 filing related to a purchase of Series A preferred stock; (iii) for
Lev Peker, a late Form 4 filing related to a grant of restricted stock unit for his director services; (iv) for Li Han, a late Form 4
filing related to a grant of restricted stock unit for her director services; (v) for Chad Chen, a late Form 4 filing related to a grant
of restricted stock unit for his director services; and (vi) for Jie Sheng, a late Form 4 filing related to a grant of restricted stock
unit for his director services.
Attendance
at Annual Meetings of Stockholders by the Board
Although
FF does not have a formal policy regarding attendance by members of the Board at FF's annual meetings of stockholders, directors
are strongly encouraged to attend. Three of FF's then-serving directors attended the 2023 annual meeting of stockholders.
Corporate
Governance Guidelines
The
Board has adopted Corporate Governance Guidelines, which provide the framework for FF's corporate governance along with the Charter,
Bylaws, committee charters and other key governance practices and policies. The Corporate Governance Guidelines cover a wide range of
subjects, including the conduct of Board meetings, independence and selection of directors, Board membership criteria, and Board committee
composition. The full text of the Corporate Governance Guidelines is posted on FF's website at
https://investors.ff.com/corporate-governance/governance-overview
.
Code
of Business Conduct and Ethics
FF
has a Code of Business Conduct and Ethics that applies to all of its employees, officers, and directors. This includes FF's principal
executive officer, principal financial officer, and principal accounting officer or controller, or persons performing similar functions.
The full text of the Code of Business Conduct and Ethics is posted on FF's website at
https://investors.ff.com/corporate-governance/governance-overview
.
FF intends to disclose on its website any future amendments of the Code of Business Conduct and Ethics or waivers that exempt any principal
executive officer, principal financial officer, principal accounting officer or controller, persons performing similar functions, or
FF's directors from provisions in the Code of Business Conduct and Ethics.
Prohibition
on Hedging and Pledging of Company Securities
As
part of FF's insider trading policy, all Company directors, officers, employees, independent contractors and consultants are prohibited
from engaging in short sales of our securities, establishing margin accounts, pledging FF securities as collateral for a loan, trading
in derivative securities, including buying or selling puts or calls on our securities, or otherwise engaging in any form of hedging or
monetization transactions (such as prepaid variable forwards, equity swaps, collars and exchange funds) involving FF securities.
142
Stock
Ownership Guidelines
The
Board believes that, in order to more closely align the interests of executives and directors with the interests of FF's other
stockholders, FF's executive officers and directors should maintain a minimum level of equity interests in FF's Common Stock.
Accordingly, FF has stock ownership guidelines requiring ownership of shares with a value equal to at least six times base salary for
the Global CEO, two times base salary for other executive officers and three times the annual cash retainers for non-employee directors.
Until the required level of ownership is met, covered executives and covered directors are required to retain 50% of the after-tax shares
acquired upon exercise of stock options and vesting of equity awards. Shares subject to stock options, whether vested or unvested, and
unvested and unsettled performance-based stock awards do not count for purposes of determining whether a covered executive or covered
director is in compliance with the guidelines. Under the stock ownership guidelines, covered executives and covered directors must achieve
the required level of ownership by the later of (i) the five-year anniversary of the adoption of the guidelines and (ii) the
five-year anniversary of becoming an executive officer or a director, respectively. As of the Record Date, each of FF's covered
executives and covered directors was either in compliance with the guidelines or within the five-year phase-in period.
Management
Succession Planning
As
part of the annual executive officer evaluation process, the Compensation Committee works with the Global CEO to plan for the succession
of the Global CEO and other senior executive officers, as well as to develop plans for interim or emergency succession for the Global
CEO and other senior executive officers in the event of retirement or an unexpected occurrence. The succession plan should include, among
other things, an assessment of the experience, performance and skills for possible successors to the Global CEO. The Board reviews
this succession plan at least annually.
The
Compensation Committee conducts a review at least annually of the performance of the Global CEO. The Compensation Committee establishes
the evaluation process and determines the criteria by which the Global CEO is evaluated. The results of this review are communicated
to the Global CEO.
Board
Succession Planning
As
part of the annual Board evaluation process, the Nominating Committee works with the Board to plan for the succession of the members
of the Board and each of its committees, as well as to develop plans for interim or emergency succession for Board and committee members
in the event of retirement or an unexpected occurrence. The succession plan should include, among other things, an assessment of the
experience, performance and skills for possible successors to the Board and committee members. The Board reviews this succession plan
at least annually.
Annual
Board, Committee and Individual Director Evaluation
The
Board evaluates its performance and the performance of its committees on an annual basis through an evaluation process administered by
the Nominating Committee to determine whether it and its committees are functioning effectively and how to improve their effectiveness.
Each committee of the Board shall also evaluate its performance on an annual basis and report the results to the Board, acting through
the Nominating Committee. Each committee's evaluation must compare the performance of the committee with the requirements of its
written charter.
143
EXECUTIVE
AND DIRECTOR COMPENSATION
This
section discusses the material components of the executive compensation program for certain of FF's executive officers and directors.
The share amounts discussed in this section have been adjusted to reflect the 1-for-80 reverse stock split effective August 28,
2023, the 1-for-3 reverse stock split effective February 29, 2024 and the 1-for-40 reverse stock split effective August 16,
2024. As an "emerging growth company" as defined in the JOBS Act, FF is not required to include a Compensation Discussion
and Analysis section and has elected to apply the scaled back disclosure requirements applicable to emerging growth companies, which
require compensation disclosure for all individuals who served as FF's principal executive officer during 2023, its two most highly
compensated executive officers (other than the principal executive officer) whose total compensation for 2023 exceeded $100,000 and who
were serving as executive officers as of December 31, 2023 and two additional individuals for whom disclosure would have been provided
but for the fact that such individual was not serving as an executive officer at the end of 2023. We refer to these individuals as "named
executive officers." For 2023, FF's named executive officers and the positions each held as of December 31, 2023 were:
●
Mr. Matthias
                                            Aydt, Global Chief Executive Officer
(1)
●
Mr. Xuefeng
                                            (XF) Chen, former Global Chief Executive Officer
(2)
●
Ms.
                                            Yun Han, Former Chief Accounting Officer and Former Interim Chief Financial Officer
(3)
●
Mr. Chui
                                            Tin Mok, Global Executive Vice President and Global Head of User Ecosystem
●
Mr. YT
                                            Jia, Chief Product and User Ecosystem Officer
(1)
Mr. Aydt
                                            was appointed Global Chief Executive Officer effective September 29, 2023.
(2)
Mr. XF
                                            Chen resigned from his position as Global Chief Executive Officer effective September 29,
                                            2023.
(3)
Ms.
                                            Han resigned from her position as Interim Chief Financial Officer of the Company effective
                                            July 5, 2023. Ms. Han resigned from her position as Chief Accounting Officer of the
                                            Company effective February 2, 2024.
We
expect that FF's executive compensation program will continue to evolve to reflect FF's status as a newly publicly-traded company,
while still supporting FF's overall business and compensation objectives of attracting, motivating and retaining individuals who
contribute to the long-term success of FF. The Compensation Committee of the Board is responsible for administering FF's
executive compensation program.
2023
Compensation of Named Executive Officers
Base
Salary
Base
salaries are intended to provide a level of compensation sufficient to attract and retain an effective management team, when considered
in combination with the other components of the executive compensation program. In general, FF seeks to provide a base salary level designed
to reflect each executive officer's scope of responsibility and accountability. Please see the "Salary" column in the
"
Summary Compensation Table — Fiscal 2023
" for the base salary amounts received by each named executive
officer in 2023.
Bonuses
Pursuant
to the terms of their respective offer letter and employment agreement, as applicable, the named executive officers are eligible for
a discretionary target bonus for 2023 in the following amounts:
●
Mr. Aydt
                                            in the amount of $100,000.
●
Mr. Chen
                                            in the amount of $450,000.
●
Mr. Mok
                                            in the amount of $300,000.
●
Ms.
                                            Han in the amount of $240,000.
●
Mr. Jia
                                            in the amount of $350,000.
Equity
Awards
To
further focus FF's executive officers on FF's long-term performance, FF has granted equity compensation in the form
of stock options and RSUs.
In
early 2023, the Company granted Mr. Chen stock options to purchase 209 shares of Common Stock, which would vest in eight equal
annual installments, and an award of 25 RSUs, which would vest in four equal annual installments. Mr. Chen was also granted performance-based stock
options to purchase 105 shares of Common Stock and 63 performance-based RSUs, which would vest in four equal annual installments
on each of the first four anniversaries of the start of production of the Company's FF 91 model. These awards were forfeited upon
Mr. Chen's resignation.
Please
see the "
Summary Compensation Table — Fiscal 2023
" and the "
Outstanding Equity Awards at
2023 Fiscal Year-End
" tables for further information regarding the equity grants received by the named executive officers
during 2023.
144
Summary
Compensation Table — Fiscal 2023
The
following table sets forth certain information concerning compensation paid to the named executive officers for the fiscal year ended
December 31, 2023 and, to the extent required by the SEC executive compensation disclosure rules, 2022. Due to an administrative
error, the values previously reported in the Stock Awards and Option Awards columns, as well as the Total column, in the Summary Compensation
Table included the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on May 28,
2024 were not correct. The Company filed a Form 10-K/A for the year ended December 31, 2023 on June 24, 2024 correcting this
error. The table below reflects the corrected amounts. The Company has also determined that Jonathan Maroko is not a named executive
officer for 2023 and, accordingly, his compensation information is not presented in the table.
Name
    and Principal Position
Year
Salary
($)
(1)
Bonus
($)
(2)
Stock
Awards
($)
(3)
Option
Awards
($)
(3)
Non-Equity
Incentive Plan
Compensation
($)
All
    Other
Compensation
($)
(4)
Total
($)
Matthias
                                            Aydt
Global
                                            Chief Executive Officer
2023
348,250
5,000
—
—
—
—
353,250
Xuefeng Chen
2023
725,207
50,000
900,202
99,110
—
80,272
1,854,791
Former
    Global Chief Executive Officer
2022
487,500
500,000
—
—
—
—
987,500
Yun Han
2023
390,000
325,000
—
—
—
—
715,000
Former
    Chief Accounting Officer and Former Interim Chief Financial Officer
2022
73,976
200,000
912,815
—
—
—
1,186,791
Chui Tin Mok
2023
433,250
5,000
—
—
—
—
438,250
Global
    Executive Vice President and Global Head of User Ecosystem
2022
500,000
—
20,904
76
—
—
520,904
YT
                                            Jia
Chief
                                            Product and User Ecosystem Officer
2023
390,750
50,000
—
—
—
—
440,750
(1)
The
                                            annualized base salaries for the named executive officers at the beginning of fiscal 2023
                                            were as follows: Mr. Aydt $400,000; Mr. Chen, $900,000; Ms. Han, $400,000; Mr. Mok,
                                            $500,000; and Mr. Jia, $450,000. In connection with Mr. Chen's resignation
                                            as Global Chief Executive Officer, Mr. Chen's annual base salary was reduced to
                                            $750,000 effective September 29, 2023. In October 2023, Messrs. Chen, Mok, Aydt
                                            and Jia agreed to a temporary salary reduction through November 2023 to an annualized
                                            minimum wage of $66,000. In December 2023, as part of the Company's cost cutting
                                            initiatives, the base salaries of all named executive officers, other than Mr. Chen,
                                            were reduced by 30%, and Mr. Chen's salary was reduced by approximately 50%.
(2)
The
                                            amounts reported in this column for each executive represent cash signing and retention bonuses.
(3)
The
                                            amounts reported in these columns reflect the grant date fair value of time-based RSUs,
                                            time-based stock option awards and PSU awards, as applicable, granted to the named executive
                                            officers during 2023 and 2022 and are accounted for in accordance with FASB ASC Topic 718.
                                            For the assumptions used to value these awards, see Note 12 (Stock-Based Compensation)
                                            in the Notes to Consolidated Financial Statements in the 2023 Form 10-K (or the corresponding
                                            note in the annual report for prior years).
(4)
The
                                            amount reported in this column for Mr. Chen includes a housing allowance of $64,000
                                            and $16,272 for the payment of accrued paid time off and other benefits.
145
Employment
Agreements, Offer Letters and Other Compensatory Agreements
Matthias
Aydt
Mr. Aydt
entered into an offer letter with Faraday&Future, Inc., a California corporation and a wholly-owned subsidiary of FF ("FF
U.S."), dated March 31, 2016, that provided for his employment as Vehicle Line Executive. The offer letter provided for Mr. Aydt
to receive an annual base salary of $240,000. The offer letter also provided that Mr. Aydt would be paid a signing bonus of $40,000
within 30 days of his start date of July 1, 2016 (the "Employment Date"), as well as a settling in allowance of
$6,000. Pursuant to the offer letter, Mr. Aydt is entitled to receive a discretionary annual performance bonus (with a target amount
of $40,000). Mr. Aydt is also entitled to participate in FF U.S.'s health insurance, 401(k) plan, paid time off and paid
holidays. Pursuant to the offer letter, Mr. Aydt was entitled to receive an employee stock option grant equal to 250,000 stock options.
The stock option grant vested 25% on the first anniversary of the Employment Date and 1/36
th
on each of the following
36 months, subject to Mr. Aydt's continued employment. Pursuant to the offer letter, Mr. Aydt's employment
constitutes employment at will.
Effective
September 29, 2023, Mr. Aydt was appointed to the position of Global Chief Executive Officer of Faraday Future. In connection
with his appointment to Global Chief Executive Officer, the Board approved an annual base salary of $400,000, which was consistent with
his salary as Senior Vice President of Business Development and Product Definition. Mr. Aydt is also eligible to receive a discretionary
annual performance bonus of up to $100,000.
On
September 4, 2024, the Board, upon the recommendation of the Compensation Committee of the Board, approved the following changes to the
compensatory arrangements of Mr. Aydt:
●
An
                                            annual base salary of $700,000
●
An
                                            annual discretionary target bonus of $700,000
●
A
                                            one-time recognition bonus of $500,000
●
An
                                            annual grant of time-based restricted stock units ("RSUs") having a grant date
                                            fair value equal to $2.1 million
●
An
                                            annual grant of performance-based restricted stock units ("PSUs") having a target
                                            grant date fair value equal to $2.1 million
●
Annual
                                            Base Salary
:
○
Beginning
    September 2024, (i) Mr. Aydt will initially be paid a pro-rated annual base salary of $550,000 (for so long as $350,000 (pro-rated)
    of such amount is used to purchase shares of the Company's Class A common stock as described below), Mr. Aydt's full
    annual base salary as approved by the Board will become effective upon such date that the Company restores in full the base salaries
    of all employees of the Company.
146
○
In furtherance
    of the above, Mr. Aydt has notified the Company that he intends to use a portion of his base salary (equal to approximately 64% of
    his initial pro-rated $550,000 base salary for Mr. Aydt) to purchase shares of the Company's Class A common stock pursuant
    to the previously disclosed Salary Deduction and Stock Purchase Agreements over the three-month period of September through November
    2024. Further, Mr. Aydt has informed the Company that, beginning in December 2024, he currently intends to continue to use the same
    portion of his initial pro-rated annual base salary described in the prior sentence to purchase shares of the Company's Class
    A common stock until such time that the Company restores in full the base salaries of all employees of the Company.
●
Recognition
                                            Bonus
: The one-time recognition bonus will be payable: (i) 25% on September 30, 2024,
                                            (ii) 25% on October 31, 2024, and (iii) 50% on the earlier of: (x) September 30, 2025 or
                                            (y) the date upon which the Company closes a future round of financing in an amount not less
                                            than $30 million (not including the Company's recently disclosed financing). In the
                                            event that Mr. Aydt voluntarily resigns or is terminated for cause (as customarily defined)
                                            prior to the four-year anniversary of the date of such executive's appointment to his
                                            current role, then the Company will be entitled to claw back either a pro rata portion (in
                                            the event of a voluntary resignation) or all amounts paid (in the event of a termination
                                            for cause) to such executive for such recognition bonus.
●
RSUs
:
                                            The RSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan based on the closing price of the Company's
                                            Class A common stock on September 13, 2024 and will vest in equal 25% increments on each
                                            of the first four anniversaries of September 4, 2024, subject to the applicable executive's
                                            continued employment with the Company on each such vesting date.
●
PSUs
:
                                            The PSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan based on the closing price of the Company's
                                            Class A common stock on September 13, 2024 and will vest in equal 20% installments on each
                                            of the first five anniversaries of the achievement of one or more applicable performance
                                            metrics to be approved by the Board, subject to the applicable executive's continued
                                            employment with the Company on each such vesting date.
Xuefeng
Chen ("XF Chen")
Effective
November 28, 2022 (the "Global CEO Effective Date"), Mr. XF Chen was appointed to the position of Global CEO. In
connection with his appointment as Global CEO, FF and FF U.S., entered into an employment agreement with Mr. XF Chen, dated as of
November 27, 2022 (the "XF Employment Agreement"), setting forth the terms of his employment and compensation. Pursuant
to such employment agreement and contingent on continued service as Global CEO, Mr. XF Chen was entitled to a base salary of $900,000
and was eligible for an annual performance-based bonus of up to $600,000 under the FF's bonus plan beginning in 2023. Mr. XF
Chen also received a cash signing and retention bonus of $500,000, subject to repayment (i) in full within 15 business days
of termination of Mr. XF Chen for "Cause" (as defined in the employment agreement), or (ii) on a pro-rated basis,
within 15 days, if Mr. XF Chen either resigns or is terminated without Cause within 36 months of the Global CEO Effective
Date. In addition, Mr. XF Chen was eligible to participate in the 2021 Plan. Subject to the terms of the 2021 Plan, Mr. XF
Chen has received $250,000 in grant date fair value of restricted stock units ("RSUs"). Additionally, in accordance to the
terms of the 2021 Plan and subject to approval by the Board, Mr. XF Chen (i) received, as of the first anniversary of the Global
CEO Effective Date, $300,000 in grant date fair value of RSUs, and (ii) would receive (A) as of the second anniversary of the
Global CEO Effective Date, $400,000 in grant date fair value of RSUs, (B) as of the third anniversary of the Global CEO Effective
Date, $450,000 in grant date fair value of RSUs, and (C) as of the fourth anniversary of the Global CEO Effective Date, $600,000
in grant date fair value of RSUs. Each RSU grant would have vested in equal 25% increments on each of the first four anniversaries of
the applicable grant date, provided Mr. XF Chen remained employed with the Company on each such vesting date.
147
Subject
to approval by the Board and the terms of the 2021 Plan, Mr. XF Chen was eligible based on continued service as Global CEO to receive
an additional number of performance-based restricted stock units ("PSUs") having a target grant date fair value equal
to $2,000,000 if FF reached certain milestones and/or performance goals on certain dates, as specified by the Board (each a "Milestone"),
and would have been granted as follows: (i) $250,000 in value after FF achieves the first Milestone; (ii) $300,000 in value
after FF achieves the second Milestone; (iii) $400,000 in value after FF achieves the third Milestone; (iv) $450,000 in value
after FF achieves the fourth Milestone; and (v) $600,000 in value after FF achieves the fifth Milestone. If FF reached any such
Milestone, the PSUs associated with such Milestone were to be issued on the date(s) such Milestone was reached and were to vest
in equal one-third increments on each of the first three annual Milestone anniversary dates following the applicable grant date, provided
Mr. XF Chen remained employed with FF on each such vesting date. On February 3, 2023, the Board granted Mr. XF Chen an
additional $650,000 of PSUs, which would have vested in equal one-fourth increments on each of the first four annual Milestone anniversary
dates.
Pursuant
to Mr. XF Chen's employment agreement, on February 3, 2023, Mr. XF Chen received an option to purchase 2,000,000 shares
of the Class A Common Stock (the "Standard Grant") 50% of which would have vested in equal 25% increments on each of
the first four anniversaries of the Global CEO Effective Date, and the other 50% would have commenced vesting on the fourth anniversary
of the Global CEO Effective Date, and would have vested in equal 25% increments on each of the next four anniversaries of the Global
CEO Effective Date following such date, in each case, subject to Mr. XF Chen's continued employment on each such vesting date.
Mr. XF Chen also received a performance-based option to purchase 2,000,000 shares of Class A Common Stock, which
started vesting upon the Company reaching certain milestones on certain dates, as specified by the Board (each, an "Option Milestone,"
and such grant, the "Milestone-Based Grant"). The portion of the Milestone-Based Grant subject to each Option Milestone
commenced vesting on the date such Option Milestone was achieved and would vest in equal 25% increments on each of the subsequent four
anniversaries of such date. The vesting of Mr. XF Chen's first 1,000,000 of the 2,000,000 performance-based option to
purchase shares of Class A Common Stock started upon the completion of the start of production Option Milestone on March 29,
2023.
On
September 16, 2023, Mr. XF Chen notified the Company of his decision to resign from his position as Global CEO of the Company
effective September 29, 2023. Mr. XF Chen also resigned from his position as a member of the Board, effective September 29,
2023. Effective September 29, 2023, Mr. XF Chen resumed his prior position as FF China Chief Executive Officer, based in China.
In this position, Mr. XF Chen focused on the launch of the FF 91 2.0 Futurist Alliance in China and the next stage of developments
with the dual home markets of China and the United States. Mr. XF Chen also focused on the implementation of the Company's
China business development plans, including establishing FF China joint venture, accessing China automotive market, integrating the China
supply chain, and ongoing costs reductions. In connection with his resignation as Global Chief Executive Officer, his employment agreement
was modified to provide for a base salary of $750,000 and eligibility for an annual performance-based bonus of up to $450,000 under
the Company's bonus plan. Mr. XF Chen's total annual cash target was reduced 20% to $1,200,000. All other compensation
terms set forth in his employment agreement remained unchanged.
Mr. XF
Chen voluntarily terminated his employment with the Company in March 2024 and did not receive any severance and all of his then-unvested awards
were forfeited.
Yun
Han
In
connection with Ms. Han's appointment as Chief Accounting Officer and Interim Chief Financial Officer in October 2022, the
Company entered into an offer letter with Ms. Yun Han, pursuant to which Ms. Han was entitled to receive an annual base salary of $400,000
and a one-time signing and retention bonus consisting of $200,000 in cash (the "Cash Signing and Retention Bonus") and
RSUs having a grant date fair value of $200,000, which fully vested 30 days after Ms. Yun Han's onboarding at the Company
(the "Equity Signing and Retention Bonus" and together with the Cash Signing and Retention Bonus, the "Signing and
Retention Bonus").
Ms.
Han was eligible to receive a discretionary annual performance bonus of up to $240,000. Subject to the terms of the 2021 Plan, Ms. Han
received as of her start date with the Company, $300,000 in grant date fair value of RSUs. Additionally, Ms. Han received or would have
received (i) as of her first annual work anniversary with the Company, $400,000 in grant date fair value of RSUs, (ii) as of
her second annual work anniversary with the Company, $550,000 in grant date fair value of RSUs, and (iii)as of her third annual work
anniversary with the Company, $750,000 in grant date fair value of RSUs. Each RSU grant would vest in equal 25% increments on each of
the first four anniversaries of the applicable grant date, provided Ms. Han remained employed with the Company on each such vesting date.
148
Subject
to approval by the Board and the terms of the 2021 Plan, Ms. Han would be eligible to receive an additional number of PSUs having a target
value equal to $2,000,000 if the Company and Ms. Han reach certain milestones and/or performance goals on certain dates as specified
by the Board. The first tranche of such PSUs were granted to Ms. Han as of her start date and had a grant date fair value of $300,000
and would have vested on the first three anniversaries of the start of production of the Company's FF 91 model.
On
July 5, 2023, Ms. Han notified the Company of her decision to resign from her positions as Interim Chief Financial Officer, principal
financial officer and principal accounting officer effective immediately. At that time, Ms. Han continued her role as Chief Accounting
Officer of the Company. In February 2024, Ms. Han resigned from the Company.
Chui
Tin Mok
Mr. Mok
entered into an offer letter with FF U.S., dated October 10, 2018, that provides for his employment as FF's Global UP2U EVP. The
offer letter provides for Mr. Mok to receive an annual base salary of $500,000. The agreement also provides that Mr. Mok will
be paid a signing and retention bonus of $1,000,000, which vests over 60 months through October 2023, and that he is entitled
to receive a discretionary annual performance bonus (with a target amount of $300,000). Mr. Mok is also entitled to participate
in FF U.S.'s health insurance, 401(k) plan, paid time off and paid holidays.
Yueting
Jia
Mr. Jia
entered into an offer letter with Faraday&Future Inc. in March 2021 that provides for his employment as Founder and Chief Product
and User Ecosystem. The offer letter provides for Mr. Jia to receive an annual base salary of $600,000 and eligibility to receive
an annual performance bonus of up to $350,000. Mr. Jia is also entitled to participate in FF U.S.'s health insurance, 401(k) plan,
paid time off and paid holidays.
On
September 4, 2024, the Board, upon the recommendation of the Compensation Committee of the Board, approved the following changes to the
compensatory arrangements of Mr. Jia:
●
An
                                            annual base salary of $680,000
●
An
                                            annual discretionary target bonus of $816,000
●
A
                                            one-time recognition bonus of $500,000
●
An
                                            annual grant of time-based RSUs having a grant date fair value equal to $2.04 million
●
An
                                            annual grant of PSUs having a target grant date fair value equal to $2.04 million
●
Annual
                                            Base Salary
:
○
Beginning
    September 2024, Mr. Jia will initially be paid a pro-rated annual base salary of $612,000 (for so long as $340,000 (pro-rated) of
    such amount is used to purchase shares of the Company's Class A common stock as described below). Mr. Jia's full annual
    base salary as approved by the Board will become effective upon such date that the Company restores in full the base salaries of
    all employees of the Company.
149
○
In furtherance
    of the above, Mr. Jia has notified the Company that he intends to use a portion of his base salary (equal to approximately 56% of
    his initial pro-rated $612,000 base salary for Mr. Jia, in each case after-tax) to purchase shares of the Company's Class A
    common stock pursuant to the previously disclosed Salary Deduction and Stock Purchase Agreements over the three-month period of September
    through November 2024. Further, Mr. Jia has informed the Company that, beginning in December 2024, he currently intends to continue
    to use the same portion of his initial pro-rated annual base salary described in the prior sentence to purchase shares of the Company's
    Class A common stock until such time that the Company restores in full the base salaries of all employees of the Company.
●
Recognition
                                            Bonus
: The one-time recognition bonus will be payable: (i) 25% on September 30, 2024,
                                            (ii) 25% on October 31, 2024, and (iii) 50% on the earlier of: (x) September 30, 2025 or
                                            (y) the date upon which the Company closes a future round of financing in an amount not less
                                            than $30 million (not including the Company's recently disclosed financing). In the
                                            event that Mr. Jia voluntarily resigns or is terminated for cause (as customarily defined)
                                            prior to the four-year anniversary of the date of such executive's appointment to his
                                            current role, then the Company will be entitled to claw back either a pro rata portion (in
                                            the event of a voluntary resignation) or all amounts paid (in the event of a termination
                                            for cause) to such executive for such recognition bonus.
●
RSUs
:
                                            The RSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan) based on the closing price of the Company's
                                            Class A common stock on September 13, 2024 and will vest in equal 25% increments on each
                                            of the first four anniversaries of September 4, 2024, subject to the applicable executive's
                                            continued employment with the Company on each such vesting date.
●
PSUs
:
                                            The PSUs are intended to be granted after the Company has sufficient additional shares registered
                                            and available for issuance under the 2021 Plan based on the closing price of the Company's
                                            Class A common stock on September 13, 2024 and will vest in equal 20% installments on each
                                            of the first five anniversaries of the achievement of one or more applicable performance
                                            metrics to be approved by the Board, subject to the applicable executive's continued
                                            employment with the Company on each such vesting date.
150
Outstanding
Equity Awards at 2023 Fiscal Year-End
FF
Equity Awards:
The
table below sets forth certain information concerning outstanding stock options to purchase Class A Common Stock of FF and RSUs
and PSUs that were unvested as of December 31, 2023. The numbers of shares and option exercise prices give effect to both the 1-for-80 reverse
stock split effective August 28, 2023, the 1-for-3 reverse stock split effective February 29, 2024, and 1-for-40 reverse
stock split effective August 16, 2024.
Option
    Awards
Stock
    Awards
Name
Date
    of
Grant
Number
    of
Securities
Underlying
Unexercised
Options (#)
Exercisable
Number
    of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
Option
Exercise
Price
($)
Option
Expiration
Date
Number
of
shares
or units
of stock
that
have not
vested
(#)
Market
value of
shares
or units
of stock
that
have
not
vested
($)
(1)
Equity
incentive
plan
awards:
number
of
unearned
shares,
units or
other
rights
that
have not
vested (#)
Equity
    incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested
($)
(1)
Matthias
    Aydt
2/1/2018
10
0
(2)
—
24,458.60
2/1/2028
—
—
—
—
5/30/2019
23
0
(2)
—
24,470.83
5/30/2029
—
—
—
—
7/26/2020
21
0
(2)
—
23,099.79
7/26/2030
—
—
—
—
4/28/2021
—
16
(2)
—
76,297.24
4/28/2031
—
—
—
—
11/23/2022
3
2
(2)
—
8,544
11/23/2032
—
—
—
—
Xuefeng
    Chen
1/20/2021
49
66
(3)
—
26,564.76
1/20/2031
—
—
—
—
7/4/2021
45
30
(3)
—
106,802.54
7/4/2031
—
—
—
—
2/3/2023
34
280
(3)
—
10,368
2/3/2033
18
(6)
499
63
(8)
1,746
Yun
    Han
10/25/2022
—
—
—
—
—
94
(7)
2,606
—
—
Chui
    Tin Mok
5/30/2019
82
10
(4)
—
24,480
5/30/2029
—
—
—
—
7/26/2020
25
2
—
23,099.79
7/26/2030
—
—
—
—
11/23/2022
2
1
—
8,544
11/23/2032
—
—
—
—
Yueting
    Jia
12/15/2022
60
59
(5)
—
8,544
12/15/2032
—
—
—
—
(1)
The
                                            dollar amounts shown are determined by multiplying the number of shares or units reported
                                            by the closing price of our common stock of $27.72 on December 29, 2023, which was the
                                            last trading day in 2023.
(2)
This
                                            option is scheduled to vest as follows (subject in each case to the named executive officer's
                                            continued employment through the applicable vesting date):
●
With
                                            respect to 16 shares, the vesting schedule is as follows:
●
With
                                            respect to 8 shares, in 8 equal monthly installments on the 29
th
day
                                            of each month through September 29, 2024.
●
With
                                            respect to 3 shares, in 3 equal monthly installments beginning on March 29, 2024.
●
With
                                            respect to 3 shares, in 3 equal monthly installments beginning on March 29, 2025.
●
With
                                            respect to 2 shares, in 2 equal monthly installments beginning on March 29, 2026.
●
With
                                            respect to 2 shares, in 2 equal annual installment on the 29
th
day of
                                            March each year through March 29, 2025.
151
(3)
This
                                            option was scheduled to vest as follows (subject in each case to the named executive officer's
                                            continued employment through the applicable vesting date):
●
With
                                            respect to 66 shares, the vesting schedule was as follows:
●
With
                                            respect to 27 shares, in 27 equal monthly installments on the 15
th
day
                                            of each month through March 15, 2026.
●
With
                                            respect to 39 shares, in 39 equal monthly installments on the 29
th
day
                                            of each month through March 29, 2027.
●
With
                                            respect to 30 shares, the vesting schedule was as follows:
●
With
                                            respect to 10 shares, in 10 equal monthly installments on the 21
st
day
                                            of each month through October 21, 2024.
●
With
                                            respect to 5 shares, in 5 equal monthly installments on the 21
st
day
                                            of each month through May 21, 2024.
●
With
                                            respect to 15 shares, in 15 equal monthly installments on the 21
st
day
                                            of each month through October 21, 2025.
●
With
                                            respect to 280 shares, the vesting schedule was as follows:
●
With
                                            respect to 175 shares, in 7 equal annual installments on the 28
th
day
                                            of November each year through November 22, 2030.
●
With
                                            respect to 105 shares, in 4 equal annual installments on the 29
th
day
                                            of March each year through March 29, 2027.
Mr.
Chen resigned from the Company in March 2024 and each of his then-unvested awards were forfeited.
(4)
This
                                            option was scheduled to vest as follows (subject in each case to the named executive officer's
                                            continued employment through the applicable vesting date):
●
With
                                            respect to 10 shares, in 5 equal monthly installments on the eighth day of each
                                            month through May 8, 2024.
●
With
                                            respect to 2 shares,, in 2 equal monthly installments on the 26
th
day
                                            of each month through February 26, 2024.
●
With
                                            respect to 1 shares, on March 29, 2024.
(5)
This
                                            option is scheduled to vest as follows (subject to the named executive officer's continued
                                            employment through the applicable vesting date): in 4 equal annual installments on the 29
th
day
                                            of March each year through March 29, 2027.
(6)
These
                                            RSUs were scheduled to vest in equal 25% increments on each of the first four anniversaries
                                            of the applicable grant date, provided Mr. Chen remained employed with the Company on
                                            each such vesting date.
Mr.
Chen resigned from the Company in March 2024 and each of his then-unvested awards were forfeited.
(7)
These
                                            RSUs were scheduled to vest in equal 25% increments on each of the first four anniversaries
                                            of the applicable grant date, provided Ms. Han remained employed with the Company on each
                                            such vesting date. Ms. Han resigned from the Company in February 2024 and each of her
                                            then-unvested awards were forfeited.
(8)
These
                                            PSUs were scheduled to vest in equal 25% increments on each of the first four anniversaries
                                            of the start of delivery of the Company's FF 91 model, provided Mr. Chen remained
                                            employed with the Company on each such vesting date.
Mr.
Chen resigned from the Company in March 2024 and each of his then-unvested awards were forfeited.
FF
Global Equity Awards:
Certain
members of Company management and other Company employees are equity owners of FF Global, which beneficially owned less than 1% of the
voting power of FF's fully diluted Common Stock as of June 21, 2024. As of December 31, 2023, Mr. Mok was the only
named executive officer who held one of these awards. His award was granted on June 25, 2019, covers 82 equity units of FF Global
with a purchase price of $4,800 per unit, and has a ten-year term. The award is fully vested, but if the executive does not pay
an installment of the purchase price when due, the award will be forfeited to FF Global without consideration.
152
Description
of Retirement Plans
FF
maintains a defined contribution 401(k) plan for the benefit of its full-time employees based in the United States. This
401(k) plan is intended to qualify under Section 401 of the Internal Revenue Code of 1986, as amended, so that employee contributions
and income earned on such contributions are not taxable to employees until withdrawn. Employees may elect to defer a portion of their
eligible compensation, not to exceed the statutorily prescribed annual limit, in the form of elective deferral contributions to this
401(k) plan. This 401(k) plan also has a "catch-up contribution" feature for employees aged 50 or older (including
those who qualify as "highly compensated" employees) who can defer amounts over the statutory limit that applies to all other
employees. Currently, FF does not make any discretionary or matching employer contributions to the 401(k) plan. Participants are
always vested in their contributions to the 401(k) plan.
Director
Compensation Table — Fiscal 2023
The
following table sets forth certain information concerning compensation paid to each of FF's non-employee directors during
2023. Mr. Aydt, Mr. Mok and Mr. Xuefeng Chen served in 2023 as directors and employees of FF; however, they did not receive
any additional compensation for their service on the Board during 2023. Please see the "—
Summary Compensation Table — Fiscal
2023
" for the compensation received by Mr. Chen and Mr. Aydt during 2023.
Name
Fees
    Earned or
Paid in Cash
($)
Stock
Awards
($)
(3)
Option
Awards
($)
Total
($)
Chad
    Chen
144,267
136,147
—
280,414
Li
    Han
(1)(2)
27,603
74,000
—
101,603
Adam
    (Xin) He
(2)
257,708
90,253
—
347,961
Lev
    Peker
14,712
41,918
—
56,630
Jie
    Sheng
(1)
134,606
114,476
—
249,082
Ke
    Sun
(2)
78,013
50,735
—
128,748
(1)
Mr. Peker
                                            and Ms. Han were appointed to the Board effective August 4, 2023 and March 13,
                                            2023, respectively.
(2)
Mr. He
                                            resigned from the Board effective July 31, 2023. Ms. Sun resigned from the Board effective
                                            October 10, 2023. Ms. Han resigned from the Board effective June 9, 2024.
(3)
The
                                            amounts reported in this column reflect the grant date fair value of time-based RSUs
                                            granted to the director during 2023 and are accounted for in accordance with FASB ASC Topic 718.
                                            For the assumptions used to value these awards, see Note 12 (Stock-Based Compensation)
                                            in the Notes to Consolidated Financial Statements in the 2023 Form 10-K. As of December 31,
                                            2023, the non-employee directors held the following number of outstanding and unvested
                                            RSUs: Mr. Chen — 363; Ms. Han — 363; Mr. Peker — 254; and
                                            Mr. Sheng — 363.
Non-Employee
Director Compensation Policy
The
following director compensation program relates to FF's non-employee directors and accordingly, Messrs. Xuefeng Chen did not,
and Mr. Aydt and Mr. Mok do not, receive compensation for their services as directors. The FF non-employee director compensation
program provides for the following:
●
Annual
                                            Board Cash Retainer:
$50,000
●
Annual
                                            Lead Independent Director Cash Retainer:
$20,000
●
Annual
                                            Committee Member Cash Retainers:
●
Audit
                                            Committee: $10,000
●
Compensation
                                            Committee: $6,250
●
Nominating
                                            and Corporate Governance Committee: $5,000
●
Finance &
                                            Investments Committee: $5,000
●
Annual
                                            Executive Chairperson and Committee Chair Cash Premiums:
●
Executive
                                            Chairperson: $30,000
●
Audit
                                            Committee: $15,000
153
●
Compensation
                                            Committee: $10,000
●
Nominating
                                            and Corporate Governance Committee: $7,500
●
Finance &
                                            Investments Committee: $7,500
●
Annual
                                            RSU Award: $150,000
●
Compensation
                                            for Additional Time:
$1,500 per Board or Board committee meeting (excepting meetings
                                            of special committees of the Board) for every meeting above 15 per year (measured from August 1
                                            to July 31 of each year), up to a maximum of $20,000 for each calendar month.
EQUITY
COMPENSATION PLAN INFORMATION
The
following table sets forth information as of October 8, 2024 regarding the number of shares of our Common Stock that may be issued under
the Company's equity compensation plans. The share numbers and the exercise price of stock options reported in this section have
been adjusted to reflect the reverse stock splits effected on August 25, 2023, February 29, 2024 and August 2024. The Company
maintains three equity compensation plans: the 2021 Plan, the Smart King Ltd. Equity Incentive Plan (the "Smart King EIP"),
and the Smart King Ltd. Special Talent Incentive Plan (the "Smart King STIP"). The 2021 Plan was approved by the stockholders.
The Smart King EIP and Smart King STIP plans existed prior to the Company going public and therefore were not approved by the security
holders.
Plan
    Category
Number
of Securities
to be Issued
upon Exercise
of Outstanding
Options,
Warrants
and Rights
Weighted
Average
Exercise Price
of Outstanding
Options,
Warrants
and Rights
Number
of Securities
Remaining
Available
for Future
Issuance Under
Equity
Compensation
Plans (excluding
securities reflected
in column (a))
(a)
(b)
(c)
Equity Compensation
    Plans Approved By Security Holders:
Faraday
    Future Intelligent Electric Inc. 2021 Incentive Plan
1,518,452
(1)
20,939.60
(2)
760,056
(3)
Equity
    Compensation Plans Not Approved by Security Holders:
Smart
    King Ltd. Equity Incentive Plan
1,970
26,210.02
(4)
—
(5)
Smart
    King Ltd. Special Talent Incentive Plan
487
52,893
(4)
—
(5)
Total
1,520,909
29,951.13
760,056
(1)
Of
                                            the shares reported in the table, 1,518,030 shares were subject to awards of restricted
                                            stock units, 422 shares were subject to outstanding stock options, both under the 2021
                                            Plan.
(2)
Represents
                                            the weighted-average exercise price of options granted under the 2021 Plan.
(3)
All
                                            of the securities reported in this column were then available for issuance under the 2021
                                            Plan. Shares available for issuance under the 2021 Plan generally may be used for any type
                                            of award authorized under that plan including stock options, stock appreciation rights, restricted
                                            stock, restricted stock units and performance shares.
(4)
The
                                            weighted-average exercise price is calculated without taking into account outstanding
                                            awards of stock units.
(5)
There
                                            are no remaining shares available for issuance under the Smart King EIP and the Smart King
                                            STIP.
154
CERTAIN
RELATIONSHIPS AND RELATED PERSON TRANSACTIONS
In
addition to the executive officer and director compensation arrangements discussed in the section titled "Executive and Director
Compensation" above, described below are the transactions since January 1, 2021 to which the Company has been a participant, in
which the amount involved in the transaction exceeds or will exceed $120,000 and in which any of the Company's directors, executive
officers, director nominees or holders of more than 5% of the Company's capital stock, or any immediate family member of, or person
sharing the household with, any of these individuals, had or will have a direct or indirect material interest.
Certain
Relationships and Related Person Transactions — the Company
Amended
and Restated Registration Rights Agreement
In
connection with the consummation of the Business Combination on July 21, 2021, Property Solutions Acquisition Sponsor, LLC (the "PSAC
Sponsor"), EarlyBirdCapital, Inc., FF Top and Season Smart Ltd. ("Season Smart") (collectively, the "A&R
RRA Parties") entered into the Amended and Restated Registration Rights Agreement (the "A&R RRA") with the Company,
which became effective upon the consummation of the Business Combination. In accordance with the A&R RRA, the A&R RRA Parties
are entitled to have registered, in certain circumstances, the resale of shares of Class A Common Stock (and the shares of Class A Common
Stock underlying outstanding Company warrants) held by or issued to them at the closing of the Business Combination, subject to the terms
and conditions set forth therein. Within 45 days of the closing of the Business Combination, the Company was obligated to file a shelf
registration statement to register the resale of certain securities and the Company was required to use its reasonable best efforts to
have such shelf registration statement declared effective as soon as practicable after the filing thereof and no later than the earlier
of (x) the 90th calendar day following the filing date if the SEC notifies the Company that it will "review" the shelf registration
statement and (y) the tenth (10th) business day after the date the Company is notified in writing by the SEC that such shelf registration
statement will not be "reviewed" or will not be subject to further review. Additionally, at any time and from time to time
after one year (or 180 days with respect to Season Smart Ltd.) after the closing of the Business Combination, the A&R RRA Parties
representing a majority-in-interest of the total number of shares of Class A Common Stock issued and outstanding on a fully diluted basis
held by the A&R RRA Parties (or Season Smart) may make a written demand for registration for resale under the Securities Act of all
or part of the shares of Class A Common Stock (and the shares of Class A Common Stock underlying outstanding Company warrants) held by
or issued to them at the closing of the Business Combination in an underwritten offering involving gross proceeds of no less than $50,000,000.
The Company will not be obligated to effect more than an aggregate of two underwritten offerings per year (or three underwritten offerings
per year demanded by Season Smart) and, with respect to Season Smart, such shares of Class A Common Stock do not exceed more than 10%
of the outstanding shares of the Company. The A&R RRA Parties will also be entitled to participate in certain registered offerings
by the Company, subject to certain limitations and restrictions. The Company will be required to pay certain expenses incurred in connection
with the exercise of the registration rights under the A&R RRA.
Indemnification
Agreements
In
connection with the closing of the Business Combination, the Company entered into indemnification agreements with its directors and executive
officers. Those indemnification agreements and the Bylaws require the Company to indemnify all directors and officers to the fullest
extent permitted by Delaware law against any and all expenses, judgments, liabilities, fines, penalties, and amounts paid in settlement
of any claims. The indemnification agreements also provide for the advancement or payment of all expenses to the indemnitee and for reimbursement
to the Company if it is found that such indemnitee is not entitled to such indemnification under applicable law.
Amended
and Restated Shareholder Agreement
In
connection with the Business Combination, the Company and FF Top entered into the Existing Shareholder Agreement pursuant to which, among
other things:
●
the
                                            Company and FF Top agreed on the initial composition of the Board;
●
FF
                                            Top has certain rights to nominate a number of directors to the Board;
●
FF
                                            Top has certain rights to remove and replace its director designees; and
●
FF
                                            Top also has the right for its nominees to serve on each committee of the Board proportionate
                                            to the number of nominees it has on the Board, subject to compliance with applicable law
                                            and stock exchange listing rules.
155
Under
the Existing Shareholder Agreement, the Company and FF Top also agreed:
●
to
                                            take all reasonably necessary action (subject to applicable Board fiduciary duties) to cause
                                            the initial directors to be nominated for another one-year term at the Company's first
                                            annual general meeting following the closing of the Business Combination; and
●
that
                                            Ms. Susan Swenson, Mr. Edwin Goh, Mr. Brian Krolicki and Mr. Lee Liu shall be deemed to be
                                            FF Top's designees for the Company's first and second annual general meetings
                                            following the closing of the Business Combination.
On
September 23, 2022, the Company entered into the Heads of Agreement, and, on January 13, 2023, the Company entered into the Amended and
Restated Shareholder Agreement, pursuant to which the Company and FF Top agreed to the following matters:
●
FF
                                            Top will have the right to nominate for election to the Board four FF Top Designees until
                                            the first date on which FF Top has ceased to beneficially own at least 88,889 shares of Common
                                            Stock for at least 365 consecutive days, with such amount subject to adjustment in connection
                                            with any stock split, reverse stock split or other similar corporate action after the date
                                            of the Amended Shareholder Agreement (the "Minimum Share Amount"). Following
                                            the termination of FF Top's right to nominate four FF Top Designees, FF Top shall continue
                                            to have the right to nominate a number of FF Top Designees not less than the number equal
                                            to the total number of directors on the Board, multiplied by the aggregate voting power of
                                            the shares of Common Stock and other securities of the Company generally entitled to vote
                                            in the election of directors of the Company beneficially owned by FF Top and its affiliates,
                                            divided by the total voting power of the then-outstanding shares of Common Stock issued as
                                            of the record date for any meeting of stockholders of the Company at which directors are
                                            to be elected, rounding up to the next whole director. The Amended and Restated Shareholder
                                            Agreement also requires the Company to take all necessary action to cause to be appointed
                                            to any committee of the Board a number of FF Top Designees that corresponds to the proportion
                                            that the number of directors FF Top has the right to designate to the Board bears to the
                                            total number of directors on the Board, to the extent such FF Top Designees are permitted
                                            to serve on such committees under the applicable rules and regulations of the SEC and applicable
                                            listing rules. The FF Top Designees are required to include two independent directors for
                                            so long as FF Top is entitled to nominate four FF Top Designees, and the Company is at all
                                            times required to cause the Board to include a sufficient number of independent directors
                                            who are not FF Top Designees to comply with applicable listing standards, unless and until
                                            the Company becomes a "controlled company" under relevant listing exchange rules.
                                            FF Top shall have the right to fill any vacancies created on the Board at any time by the
                                            death, disability, retirement, removal, failure of being elected or resignation of any FF
                                            Top Designee. Further, FF Top has the right at any time, and from time to time, to remove
                                            any FF Top Designee, and FF Top has the exclusive right to nominate a replacement nominee
                                            to fill any vacancy so created by such removal or resignation of such FF Top Designee. The
                                            Company shall use its reasonable best efforts to take or cause to be taken, to the fullest
                                            extent permitted by law, all necessary action to fill such vacancies or effect such removals
                                            in accordance with the Amended and Restated Shareholder Agreement. The appointment or nomination
                                            for election of designees of FF Top (other than FF Top Designees for the Annual Meeting,
                                            the appointment of whom shall be governed by the Heads of Agreement, as amended by the Amended
                                            and Restated Shareholder Agreement) will be subject to the reasonable verification and/or
                                            approval by the Nominating and Corporate Governance Committee of the Board based on the criteria
                                            set forth in the Amended and Restated Shareholder Agreement. If any FF Top Designee fails
                                            to be elected at any meeting of the Company's stockholders, then, upon FF Top's
                                            request in writing, the Company shall promptly expand the size of the Board by a number of
                                            seats equal to the number of non-elected FF Top Designees, and FF Top shall have the exclusive
                                            right to fill the vacancy or vacancies on the Board created by such expansion (provided the
                                            individual or individuals who shall fill such vacancy or vacancies shall not be the same
                                            FF Top Designees who failed to get elected, without prejudice to FF Top's right to
                                            re-designate the non-elected designees as FF Top Designees in any other circumstance), and
                                            such new FF Top Designees shall be appointed to the Board by the Board promptly following
                                            their having been approved or deemed approved in accordance with the relevant criteria and
                                            procedures set forth in the Amended and Restated Shareholder Agreement. Immediately prior
                                            to (and effective as of) the first meeting of shareholders following such expansion of the
                                            Board, the Board shall cause the size of the Board to be decreased back to seven. This Board
                                            expansion right shall cease to have any further force or effect at such time as the voting
                                            power of each share of Class B Common Stock, by operation of the Charter, shall be twenty
                                            votes per share.
156
●
The
                                            size of the Board may not be increased without FF Top's prior written consent, which
                                            consent shall not be unreasonably withheld, conditioned or delayed (with it being reasonable
                                            for FF Top to withhold its consent to any change in the size of the Board that would result
                                            in a decrease in the proportion or percentage of the members of the Board who are designees
                                            of FF Top).
●
Until
                                            the Company achieves an equity market capitalization of $3 billion, the Company agrees not
                                            to elect to be treated as a "controlled company" as defined under the rules of
                                            the securities exchange on which the Company is listed.
●
The
                                            Company agrees to cooperate with any written requests by FF Top relating to any such pledge
                                            of any of the shares of Common Stock of the Company owned by FF Top, or hypothecation or
                                            grant thereof, including delivery of letter agreements to lenders in form and substance reasonably
                                            satisfactory to such lenders (which may include agreements by the Company in respect of the
                                            exercise of remedies by such lenders) and, subject to applicable law (as defined in the Amended
                                            Shareholder Agreement), instructing the transfer agent to transfer any such shares of Common
                                            Stock subject to the pledge, hypothecation or grant into the facilities of The Depository
                                            Trust Company without restricted legends.
●
FF
                                            Top has informed the Company that FF Top expects the following proposals will be submitted
                                            to the Company's stockholders for approval. Upon FF Top's written request (an
                                            "Amendment Request"), the Company shall submit for approval by the Company's
                                            stockholders, at each annual and special meeting of the Company's stockholders held
                                            during a reasonable number of years (which shall not be, in any event, fewer than seven years)
                                            following the date of the Amendment Request, binding proposals to amend the Charter to incorporate
                                            each of the amendments described below (the "Charter Amendments"), and to recommend
                                            in favor of such Charter Amendments at each such meeting and solicit proxies in favor of
                                            each such Charter Amendment at each such meeting using a well-regarded proxy solicitation
                                            firm. Each Charter Amendment is required to be in such form as FF Top, acting reasonably,
                                            shall approve:
●
Amend
                                            Section 4.5(a) of the Charter (and any other applicable provisions thereof, if any) to provide
                                            that (i) the voting power of the Company's Class B Common Stock shall be ten votes
                                            per share with effect immediately upon the Company's stockholders' approval of
                                            such amendment and (ii) the voting power of the Company's Class B Common Stock shall
                                            increase from ten votes per share to twenty votes per share immediately following the Company
                                            achieving a Qualifying Equity Market Capitalization (substituting $3.0 billion for $20.0
                                            billion in the definition of "Qualifying Equity Market Capitalization").
●
Amend
                                            Section 6.1 of the Charter (and any other applicable provisions thereof, if any) to provide
                                            that FF Top shall have the right to nominate, remove and/or replace FF Top Designees whom
                                            it is entitled to nominate pursuant to the Amended Shareholder Agreement by written consent,
                                            with such conforming changes to the certificate of incorporation as are required to give
                                            legal effect to the right to act by written consent under Delaware law.
●
Further
                                            amend Section 6.1 of the Charter (and any other applicable provisions thereof, if any) to
                                            provide that for so long as FF Top continues to hold at least 15,168 shares of Common Stock
                                            (as such number may be adjusted due to any stock split, reverse stock split or other similar
                                            corporate action), the Company's stockholders shall be entitled to act by written consent
                                            by the signature of (a) the requisite number of stockholders required to pass such proposal
                                            at a meeting at which all stockholders entitled to vote on such proposal are present together
                                            with (b) FF Top.
●
Further
                                            amend the Charter to provide that none of the rights afforded to FF Top in the Charter or
                                            in the Bylaws shall be amended without (a) unanimous approval of the Board and (b) the approval
                                            by (i) holders of two-thirds of all of the Company's issued and outstanding shares
                                            of Common Stock, voting together as a single class and (ii) holders of a majority of the
                                            Company's issued and outstanding shares of Class B Common Stock, voting together as
                                            a separate class.
157
If,
when FF Top first delivers an Amendment Request, the Company's next annual meeting is scheduled to be held more than 120 days after
the date of such request (or the Company has already mailed a definitive proxy statement with respect to the Company's next annual
meeting of stockholders), the Company shall promptly call a special meeting of its stockholders to consider and vote upon the Charter
Amendments, with the same recommendation and solicitation obligations of the Board described above. Promptly upon receipt of an Amendment
Request, the Company shall also, in cooperation with FF Top, make such conforming changes to the Bylaws as may reasonably be requested
by FF Top to make them consistent with the Charter Amendments.
●
The
                                            Company has agreed not to enter into any transaction or series of related transactions that
                                            would require a stockholder vote under Nasdaq Listing Rule 5635(d) (without giving effect
                                            to Section 5635(f) thereof) without FF Top's prior written consent, which written consent
                                            shall not be unreasonably withheld, conditioned or delayed. Such consent right expires upon
                                            the earlier of (a) the conversion of the voting power of the Company's Class B Common
                                            Stock from one vote per share to ten votes per share and (b) the first date on which FF Top
                                            has ceased to beneficially own a number of shares of Common Stock at least equal to the Minimum
                                            Share Amount.
●
The
                                            Company has agreed that the investors under the Pre-existing SPA shall have, by operation
                                            of the Amended and Restated Shareholder Agreement and irrespective of any provision of the
                                            Pre-existing SPA to the contrary, the right to enter into any voting agreement or grant a
                                            voting proxy, at any time and on any terms, with or to FF Top with respect to any shares
                                            of Common Stock held by such investor, and that the Company shall take any and all such further
                                            action as may be necessary or desirous to give full effect to the foregoing (including without
                                            limitation, irrevocably waiving any rights that the Company may have to restrict the entry
                                            by any such persons into any such voting agreements or voting proxies pursuant to the Pre-existing
                                            SPA PA or otherwise and, solely to the extent required, amending the Pre-existing SPA). Each
                                            party to the Pre-existing SPA SA is a third-party beneficiary of, and may enforce, the foregoing
                                            provision under the Amended Shareholder Agreement; however, the Company and FF Top are permitted,
                                            acting alone without the consent of any such third-party beneficiary, to amend such provision
                                            in writing.
●
FF
                                            Top agreed to vote all shares of Common Stock that it beneficially owns in favor of an increase
                                            in the Company's authorized shares of Class A Common Stock from 815 million to 1.69
                                            billion (before giving effect to the subsequent 1-for-80, 1-for-3 and 1-for-40 reverse stock
                                            splits) at the next meeting of the Company's stockholders held to consider such proposal
                                            (as such meeting may be adjourned or postponed). FF Top also agreed not to transfer, convert
                                            or otherwise take any action that would result in the conversion of any shares of Class B
                                            Common Stock into Class A Common Stock of the Company prior to the Company's receipt
                                            of stockholder approval for an increase in the number of authorized shares of Class A Common
                                            Stock in accordance with the foregoing. Such proposal was approved at a special meeting of
                                            stockholders of the Company on February 28, 2023.
●
FF
                                            Top released and waived any and all claims it or any other "FF Top Parties" (i.e.,
                                            FF Top, FF Peak Holding LLC, a Delaware limited liability company, Pacific Technology Holding
                                            LLC, a Delaware limited liability company, FF Global and each of their affiliates, and their
                                            respective successors and assigns) may have had against the Company and the Company Parties
                                            (described below; such claims, the "FF Top Claims") relating to matters occurring
                                            at any time after September 23, 2022 but prior to the execution of the Amended Shareholder
                                            Agreement (the "FF Top Release"). The FF Top Release does not (i) release any
                                            FF Top Claim or right that existed on or prior to September 23, 2022 but was not released
                                            pursuant to that certain Mutual Release, dated as of September 23, 2022, by and among the
                                            Company, FF Top, FF Global Partners LLC and the other parties thereto (the "Prior Release")
                                            or (ii) release any claim or right under (or terminate) any agreement between one or more
                                            FF Top Parties on the one hand, and one or more Company Parties on the other hand (including
                                            without limitation the Amended and Restated Shareholder Agreement, the Heads of Agreement
                                            and the Prior Release).
●
The
                                            Company also released and waived any and all claims it or any other "Company Parties"
                                            (i.e., the Company and each of the Company's controlled affiliates, each individual
                                            currently serving as a director or on the management team of the Company or any of its controlled
                                            affiliates, and the respective successors and assigns of any of the foregoing) may have against
                                            FF Top Parties relating to any matters occurring at any time after September 23, 2022 but
                                            prior to the execution of the Amended and Restated Shareholder Agreement; provided that the
                                            Company Release does not (i) release any claim or right that existed on or prior to September
                                            23, 2022 but was not released pursuant to the Prior Release or (ii) release any claim or
                                            right under (or terminate) any agreement between one or more FF Top Parties on the one hand,
                                            and one or more Company Parties on the other hand (including without limitation the Amended
                                            and Restated Shareholder Agreement, Heads of Agreement and the Prior Release).
158
FF Shareholder
Lockup Agreements
Under
the Merger Agreement, as a condition to receiving Class A Common Stock after the closing of the Business Combination in respect of their
Legacy FF ordinary shares, Legacy FF's stockholders were required to execute lockup agreements pursuant to which such stockholders
must agree not to sell, transfer or take certain other actions with respect to such shares of Class A Common Stock for a period of 180
days after the closing of the Business Combination, subject to certain customary exceptions. Under the lock-up agreement entered into
by the Vendor Trust. certain holders of Legacy FF notes payable and related party notes payable and certain warrant holders of Legacy
FF, subject to certain limited exceptions, such parties agree that with respect to (a) 33% of the shares of Class A Common Stock received
by such Legacy FF stakeholders in connection with the closing of the Business Combination, not to sell, transfer or take certain other
actions with respect to such shares of Class A Common Stock for a period of 30 days after such closing (which expired on August 20, 2021),
(b) 33% of the shares of Class A Common Stock received by such Legacy FF stakeholders in connection with such closing (which expired on
September 19, 2021), not to sell, transfer or take certain other actions with respect to such shares of Class A Common Stock for a period
of 60 days after such closing, and (c) the remaining 33% of the shares of Class A Common Stock received by such Legacy FF stakeholders
in connection with the Business Combination, not to sell, transfer or take certain other actions with respect to such shares of Class
A Common Stock for a period of 90 days after such closing. The shares of Class A Common Stock to be issued to FF employees on account
of their reduced compensation will be subject to a vesting period of 90 days. The lockup agreements expired as of January 17, 2022.
Sponsor Lockup
Agreement
Under the Merger Agreement,
as a condition to Legacy FF's obligation to close the Business Combination, PSAC was required to deliver to Legacy FF a lockup agreement
executed by the PSAC Sponsor pursuant to which the PSAC Sponsor agreed that (a) 50% of the shares of PSAC common stock held by the PSAC
Sponsor would not be sold, transferred or otherwise disposed of for a period ending the earlier of (i) the one year anniversary of the
closing of the Business Combination (or July 21, 2022), and (ii) the date on which the closing price of shares of PSAC common stock on
the principal securities exchange or securities market on which such shares are then traded equaled or exceeded $12.50, before giving
effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, per share for any twenty trading days within any thirty trading day period
after the closing of the Business Combination; and (b) the other 50% of the shares of PSAC common stock held by the PSAC Sponsor will
not be sold, transferred or otherwise disposed of for a period ending earlier of (i) the one year anniversary of the closing of the Business
Combination (or July 21, 2022) and (ii) the date on which PSAC completes a liquidation, merger, capital stock exchange or other similar
transaction that results in all of PSAC's stockholders having the right to exchange their shares for cash, securities or other property.
The lockup agreement expired on July 21, 2022.
Governance Agreement
with FF Top and FF Global
As
previously disclosed, beginning in June 2022, the Company was party to a dispute with FF Global, its then-largest stockholder, over various
terms of the Existing Shareholder Agreement, including relating to FF Global's right to remove its designees from the Board. On
September 23, 2022, the Company entered into the Heads of Agreement, pursuant to which, effective as of September 23, 2022, the Company
(a) increased the size of the Board from nine to ten, (b) appointed Mr. Adam (Xin) He to fill the vacancy resulting from such increase
in the size of the Board until the Annual Meeting, (c) appointed Mr. He to the Audit Committee and the Nominating and Corporate Governance
Committee of the Board and (d) agreed to not remove Mr. He from either committee prior to the Annual Meeting. Pursuant to the Heads of
Agreement, FF Top and FF Global caused all actions in the Court of Chancery of the State of Delaware, and any other forum, filed by FF
Top, FF Global and/or any of their respective controlled affiliates as of the effective date of the Heads of Agreement, naming the Company
or any of its directors or officers, to be dismissed without prejudice as of September 27, 2022. On January 13, 2023, the Company entered
into the Amended and Restated Shareholder Agreement, which amends certain terms of the Heads of Agreement.
159
Pursuant
to the Heads of Agreement, as amended by the Amended and Restated Shareholder Agreement, the Company, FF Global and FF Top agreed to the
following matters:
●
the resignation of the Company's Executive Chairperson, Ms. Susan Swenson, from all non-director
positions at the Company and all Board leadership and Board committee positions, upon the Company receiving $13.5 million in funding that
is immediately available for the Company's general use (which was satisfied upon the funding of the initial $10 million tranche
of Pre-existing SPA Notes from Senyun on October 27, 2022). It was also agreed that Ms. Swenson would not thereafter seek or accept new
non-director positions at the Company;
●
the reinstitution of the former FF Transformation Committee, a management committee that will discuss
business matters being undertaken by the Company (the committee will not have any decision-making authority) and be comprised of the Company's
Global Chief Executive Officer (Mr. Xuefeng Chen), Founder/Chief Product and User Ecosystem Officer and Founder Advisor to the Board (Mr.
Yueting Jia), Interim Chief Financial Officer (Ms. Yun Han), the General Counsel and other senior leadership team members invited by members
of the FF Transformation Committee from time to time, with Mr. Jiawei Wang (an FF Top designee) being given committee observer status
subject to certain customary non-disclosure and confidentiality agreements; and
●
subject to the Company having entered into definitive agreements providing for at least $85 million of
additional or (in certain circumstances, accelerated) financing commitments in the aggregate and having received funding of at least $35
million immediately available for the Company's general use in connection therewith (which condition was, pursuant to the Amended
and Restated Shareholder Agreement, agreed to be satisfied):
●
the Company would call, convene, hold and complete an annual meeting on the earliest date permitted under
Delaware law and applicable Nasdaq and SEC requirements;
●
the size of the Board would be reduced to seven members effective with the directors to be elected at
the next Annual Meeting;
●
the following individuals were nominated for election to the Board and included on the Board's recommended
slate at the Annual Meeting: (a) the Company's then-Global CEO, (b) four FF Top Designees, at least two of whom will be independent
directors, and (c) two independent directors selected by the Selection Committee, for which any member of the Selection Committee may
propose director candidates who will be included in the process with all final decisions made by the Selection Committee;
●
no re-nomination of FF directors as of the date of the Heads of Agreement at the next annual meeting without
the consent of the Selection Committee;
●
FF Top has the right to nominate for election to the Board four designees until the first date on which
FF Top has ceased to beneficially own the Minimum Share Amount. Following the termination of FF Top's right to nominate four designees,
FF Top shall continue to have the right to nominate a number of designees not less than the number equal to the total number of directors
on the Board, multiplied by the aggregate voting power of the shares of Common Stock and other securities of the Company generally entitled
to vote in the election of directors of the Company beneficially owned by FF Top and its affiliates, divided by the total voting power
of the then-outstanding shares of Common Stock issued as of the record date for any meeting of stockholders of the Company at which directors
are to be elected, rounding up to the next whole director; and
●
the resignation of Ms. Swenson and Mr. Brian Krolicki as directors of the Company. It was also agreed
that (i) Ms. Swenson and Mr. Krolicki would not thereafter seek or accept re-appointment, re-nomination or re-election to the Board and
(ii) that following their resignations from the Board, their seats would be left empty until the Annual Meeting (which would result in
the Company having an eight person Board until the Annual Meeting).
On
October 3, 2022, Ms. Swenson tendered her resignation from her role as both Executive Chairperson and member of the Board effective immediately.
On October 28, 2022, Mr. Brian Krolicki tendered his resignation from the Board effective immediately.
160
Mutual Release
On
September 23, 2022, the Company entered into a Mutual Release (the "Mutual Release") with FF Global, its executive committee
members and their controlled affiliates, FF Global's controlled affiliates (including FF Top), and the directors of the Company
and their controlled affiliates (collectively, and together with the Company, the "Release Parties"), pursuant to which the
Release Parties agreed to a mutual release of claims and to settle various matters among them, including with respect to any differences
that arose out of the Company directors' service as a director, employee, officer or manager of the Company up through and including
the date of the Mutual Release, subject to customary exceptions.
Voting Agreements
by FF Top Holding LLC and Season Smart Ltd.
On
September 23, 2022, the Company entered into a letter agreement with each of FF Top and Season Smart, the two largest holders of Common
Stock, pursuant to which each of FF Top and Season Smart agreed to vote and did vote, with respect to all shares of Company voting stock
over which such party has voting control, in favor of any resolution presented to the stockholders of the Company at a stockholders'
meeting to approve, among other things:
●
the issuance, in the aggregate, of more than 19.999% of the number of shares
of outstanding Common Stock (under Nasdaq Listing Rule 5635(d)) as a result of:
●
the issuance of up to (x) $57 million in principal amount of senior secured Tranche A convertible notes
at a conversion price of not below $1.05, before giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, per share of Class
A Common Stock for $27.0 million, and the remainder ($30 million) at a conversion price of not below $2.69, before giving effect to 1-to-80,
1-to-3 and 1-to-40 reverse stock splits, per share of Class A Common Stock, (y) $57 million in principal amount of senior secured Tranche
B convertible notes at a conversion price of not below $1.05, before giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits,
per share of Class A Common Stock for $27.0 million, and the remainder ($30 million) at a conversion price of not below $2.69, before
giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, per share of Class A Common Stock, and (z) 26,822,724, before giving
effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, shares of Class A Common Stock upon the exercise of associated warrants, in
each case, pursuant to the Existing Purchase Agreement (as then amended) and subject to the full-ratchet anti-dilution and most favored
nation protections therein;
●
the issuance of up to 73,675,656, before giving effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits,
shares of Class A Common Stock upon the exercise of all previously issued convertible notes and warrants of the Company; and
●
the issuance of up to $60 million in principal amount of senior secured convertible notes by Senyun and/or
its affiliates; and
●
an increase to the number of authorized shares of Common Stock to 900,000,000, before giving effect to
1-to-80, 1-to-3 and 1-to-40 reverse stock splits.
In addition, each of FF
Top and Season Smart agreed in their respective voting agreements that, subject to the consent of such FF Top and Season Smart (with respect
to each such party's respective voting agreement), which consent is not to be unreasonably withheld, conditioned or delayed, the
Company may seek to further increase the number of authorized shares of Common Stock to up to a maximum of 1,500,000,000, before giving
effect to 1-to-80, 1-to-3 and 1-to-40 reverse stock splits, shares, and such party agrees to vote all shares with respect to which it
has voting power in favor of any resolutions presented to stockholders to effect such increase in the number of authorized shares.
161
On
October 22, 2022, the Company and FF Top agreed to an amendment to FF Top's voting agreement, pursuant to which FF Top (i) reaffirmed
its commitment under the voting agreement, in light of the maturity date extension of notes under the Pre-existing SPA, to vote all of
its shares of Company voting stock in favor of the resolution to be presented to stockholders at the November 3, 2022 special meeting
to approve the issuance, in the aggregate, of more than 19.99% of the issued and outstanding shares of Common Stock underlying the various
instruments issued and issuable pursuant to the Pre-existing SPA; (ii) revised the condition precedent to FF Top's voting obligations
that the Company comply in all material respects with its obligations pursuant to the Heads of Agreement and any definitive documentation
contemplated by the Heads of Agreement to only apply to the period from and after October 22, 2022; and (iii) extended the deadline to
November 11, 2022 (which was subsequently extended to December 31, 2022) for the Company and FF Top to enter into an amendment to the
Existing Shareholder Agreement between FF Top and the Company and other definitive documentation contemplated by the Heads of Agreement
(provided that the failure of such amendment and other definitive documentation to be executed by such date will not, in and of itself,
release FF Top from its voting obligations).
FF
Top's obligations pursuant to the FF Top Voting Agreement were conditioned on (i) the appointment of Mr. Chad Chen (or a substitute
nominee, as applicable) to the Board as the fourth FF Top Designee no later than October 27, 2022 (provided that Mr. Chad Chen or a substitute
nominee, as applicable, is reasonably acceptable to the Nominating and Corporate Governance Committee of the Board with respect to the
Nasdaq independence rules and legal compliance and criminal compliance) (provided that if Mr. Chad Chen is not so reasonably acceptable
to the Nominating and Corporate Governance Committee of the Board, then FF Top will be permitted to nominate another individual to the
Board); and (ii) constructive engagement by Mr. Adam (Xin) He, the then-Interim Chairman of the Board, directly with representatives with
FF Top on certain additional governance and management matters and, to the extent the Interim Chairman of the Board so determines, in
his discretion, such matters will be put to a discussion and a vote of the full Board. On October 27, 2022, Mr. Chad Chen was appointed
to the Board.
FF
Top's and Season Smart's obligations pursuant to their respective voting agreements are conditioned on the accuracy of certain
representations, compliance by the Company with certain covenants and the satisfaction of certain conditions, in each case as further
set forth in the applicable voting agreement.
The
Company also agreed in the FF Top Voting Agreement that FF Top may vote its shares of Common Stock in favor of each of the Krolicki and
Swenson removal proposals (if any), that neither FF Top nor the Company has any obligation to nominate or reappoint Mr. Krolicki or Ms.
Swenson to the Board at any time following their resignation or removal for any reason, that neither Mr. Krolicki nor Ms. Swenson shall
be re-appointed or re-nominated to the Board following their resignation or removal and that neither Mr. Krolicki nor Ms. Swenson shall
be (re)hired, (re)engaged or (re)appointed to any position at the Company following their resignation or removal from their respective
non-Board roles (if any) at the Company. On October 3, 2022, Ms. Swenson tendered her resignation from her role as both Executive Chairperson
and member of the Board effective immediately. On October 28, 2022, Mr. Brian Krolicki tendered his resignation from the Board effective
immediately.
At
a special meeting of Company stockholders held on November 3, 2022, Company stockholders approved the following three proposals: (1) a
proposal to approve, as is required by the applicable Nasdaq rules and regulations, transactions involving notes and warrants issued to
Purchasers as committed under the Pre-existing SPA (as then amended), including the issuance of any shares in excess of 19.99% of the
issued and outstanding shares of the Common Stock; (2) a proposal to increase total authorized shares of the Company from 825,000,000,
before giving effect to 1-to-80, 1-to-3, and 1-to-40 reverse stock splits, to 900,000,000, before giving effect to 1-to-80, 1-to-3, and
1-to-40 reverse stock splits, (the "Share Authorization Proposal"); and (3) a proposal to approve an amendment to the Charter
to effect a reverse stock split of the Common Stock by a ratio of any whole number in the range of 1-for-2 to 1-for-10, and a corresponding
reduction in the number of authorized shares of Common Stock (after adjustment of the number of authorized shares, if applicable, resulting
from stockholder approval of the Share Authorization Proposal), with such ratio to be determined in the discretion of the Board and with
such action to be effected at such time and date, if at all, as determined by the Board within one year after the conclusion of such special
meeting of stockholders.
162
FF Top Expense
Reimbursements
On
July 30, 2022, the Company entered into Preliminary Term Sheet with FF Top setting out a summary of the preliminary terms and conditions
for FF Top's assistance in arranging a proposed convertible term loan facility to the Company. In connection with the Preliminary
Term Sheet, the Company agreed to reimburse FF Top for its reasonable and documented out-of-pocket legal and diligence fees and expenses
incurred in connection with such financing efforts up to a $300,000 cap (the "Original Cap"), irrespective of whether or not
closing occurred, with $150,000 to be payable as a deposit upon execution of the Preliminary Term Sheet. Pursuant to the Preliminary Term
Sheet, the Company paid FF Top $150,000 on August 9, 2022 and $150,000 on December 16, 2022.
On
January 31, 2023, the Company entered into a supplemental agreement to the Preliminary Term Sheet (the "Supplemental Agreement")
with FF Top, pursuant to which the parties agreed, due to the high amount of FF Top's out-of-pocket legal fees and expenses incurred
in connection with assisting with and successfully closing this financing effort, to amend the Preliminary Term Sheet to increase the
Original Cap from $300,000 to $682,733.64. The Company agreed to pay the remaining $379,911.64 of the fee owed to FF Top as follows: (i)
fifty percent, equaling $189,955.82, within one business day of execution of the Supplemental Agreement, and (ii) fifty percent, equaling
$189,955.82, within one business day of consummation of new financing by the Company in an amount not less than $5.0 million or an earlier
date approved by the Board. Pursuant to the Preliminary Term Sheet, as amended by the Supplemental Agreement, the Company paid FF Top
$189,955.82 on February 1, 2023.
FF
Top has requested additional expense reimbursements from the Company in connection with its efforts and expenses incurred related to resolving
corporate governance issues since 2022. FF Top may in the future continue to request, additional reasonable expense reimbursements and
indemnification from the Company.
Payment on Behalf
of Ocean View
On
February 9, 2023, the Company made a payment of approximately $220,000 on behalf of Ocean View, an indemnified co-defendant, in connection
with a seizure of funds related to the outstanding judgment in ongoing litigation. Ocean View fulfilled its payment obligation under the
settlement arrangement of such litigation, but the Company did not make its payment on the outstanding judgment which caused such seizure
of funds of Ocean View. Following such seizure, the Company paid the outstanding judgment and all accrued interest. The Company expects
to receive the approximately $220,000 it paid on behalf of Ocean View following the release of such seizure.
Certain Relationships
and Related Person Transactions—PSAC
Promissory Notes
On February 28, 2021, PSAC
issued an unsecured promissory note to the PSAC Sponsor pursuant to which PSAC may borrow up to an aggregate principal amount of $500,000
and on June 7, 2021 and July 8, 2021 PSAC issued another unsecured promissory note to the PSAC Sponsor pursuant to which PSAC may borrow
up a further $200,000 and $100,000, respectively (the "Promissory Notes"). The Promissory Notes were non-interest bearing.
At the closing of the Business Combination, all of the unpaid balance of the notes were converted into units consisting of one share of
Class A Common Stock and one warrant to purchase a share of Class A Common Stock at $10.00, before giving effect to 1-to-80, 1-to-3, and
1-to-40 reverse stock splits, per unit.
Subscription Agreements
In
connection with the execution of the Merger Agreement, PSAC entered into separate subscription agreements with certain accredited investors
or qualified institutional buyers (collectively, the "Subscription Investors"), related to the purchase by Subscription Investors
of an aggregate of 76.1 million shares of Class A Common Stock for an aggregate purchase price of $761.4 million (such agreements, the
"Subscription Agreements"), concurrently with the execution of the Merger Agreement on January 27, 2021. The Subscription
Agreements require PSAC to use commercially reasonable efforts to have an effective shelf registration statement registering the resale
of the shares of PSAC common stock held by the Subscription Investors within 60 calendar days (or 90 calendar days if the SEC notifies
PSAC that it will review the registration statement) following the closing of the Business Combination.
163
Agreement with
Riverside Management Group
On
July 18, 2021, PSAC entered into an omnibus transaction services fee agreement and acknowledgement with the PSAC Sponsor, FF, RMG and
Philip Kassin, Robert Mancini and James Carpenter (each, a "Service Provider" and, collectively, the "Service Providers"),
as subsequently amended by an amendment entered into on July 21, 2022, pursuant to which (i) the Service Providers, together with such
other service providers, who assisted the Service Providers as identified by the Service Providers, replaced RMG as the recipients of
the cash and share compensations under the Original RMG Agreement and (ii) the Company agreed to issue, and subsequently issued on July
22, 2022, 2,387,500 shares of Class A Common Stock in the aggregate to the Service Providers and such other service providers as identified
by the Service Providers in full consideration of certain consulting and advisory services provided by RMG in connection with the Business
Combination.
Certain Relationships
and Related Person Transactions —Legacy FF
Restructuring Agreement
with Evergrande
In
November 2017, Legacy FF received a commitment from Season Smart, an affiliate of Evergrande Health Industry Group ("Evergrande"),
to provide $2.0 billion in funding, subject to certain conditions, in exchange for a 45% preferred equity stake in Legacy FF. Evergrande
initially funded $800 million in 2018, and the terms of the agreement provided that the remaining $1.2 billion would be contributed by
the end of 2019 and 2020, subject to certain conditions.
After
a dispute among Legacy FF, Season Smart and certain of their affiliates regarding, among other things, whether certain conditions to Season
Smart's requirement to provide additional funding were satisfied, on December 31, 2018, Legacy FF, Season Smart and certain of their
affiliates entered into a restructuring agreement pursuant to which Season Smart's preferred equity interest in Legacy FF was restructured
and reduced to 32% preferred equity stake in Legacy FF and the Legacy FF affiliated parties and Season Smart affiliated parties released
one another and their respective affiliates from certain claims (including Season Smart's obligation to make additional investments
in Legacy FF) (the "Restructuring Agreement"). In addition, the Restructuring Agreement provided that Legacy FF may at any
time before December 31, 2023 redeem, in part or in whole, the Legacy FF shares held by Season Smart at a predetermined redemption price.
The Restructuring Agreement also provided that, among other matters, (i) Season Smart agreed that Legacy FF could enter into new equity
financing arrangements without Season Smart's approval so long as the valuation for such equity financing is not less than a specified
threshold; (ii) Season Smart agreed to acquire Evergrande FF Holding (Hong Kong) Limited, which was previously a wholly-owned subsidiary
of Legacy FF and owned certain Chinese assets of Legacy FF; and (iii) Legacy FF revised its memorandum and articles of association to
provide Season Smart with certain rights. Certain Season Smart approval rights under the Restructuring Agreement were terminated at the
closing of the Business Combination under the transaction support agreement signed by Season Smart with PSAC and Legacy FF on January
27, 2021.
Borrowings from
Related Parties
Related Party Notes
Payable
Prior
to the Business Combination, FF funded its operations and capital needs primarily through the proceeds received from capital contributions
and the issuance of related party notes payable and notes payable. The notes payable and equity were significantly funded by entities
controlled or previously controlled by Mr. Yueting Jia, the founder and Chief Product and User Ecosystem Officer of the Company. As of
December 31, 2023 and 2022, the outstanding principal balance of FF's related party notes payable was $9.8 million and $9.0 million,
respectively.
164
Related Party Notes
- NPA Tranche
On
April 29, 2019, Legacy FF entered into a note purchase agreement (as amended, restated and otherwise modified from time to time, the "Note
Purchase Agreement") with certain purchasers, U.S. Bank National Association, as the notes agent, and Birch Lake Fund Management,
LP as the collateral agent. The principal amount of notes that may be issued under the Note Purchase Agreement was $200.0 million. The
notes issued under the Note Purchase Agreement bore interest at 10%, payable at the maturity date of the note. All notes issued under
the Note Purchase Agreement were collateralized by a first lien, with second payment priority, on substantially all tangible and intangible
assets of the borrowers and guarantors. The notes under the Note Purchase Agreement were subject to representations, warranties, and covenants
and were initially scheduled to mature on October 31, 2019. In October 2020, Legacy FF obtained an extension of the maturity date of the
notes under the Note Purchase Agreement to October 6, 2021. In connection with the Business Combination, the principal amount of the loans,
amounting to $27.7 million, were repaid in cash, with accrued interest and conversion premiums totaling $11.3 million converted into shares
of Class A Common Stock.
Original Unsecured
SPA
MHL
is the anchor investor in the
Original
Unsecured SPA and has committed $80.0 million of such funding. MHL is a related party
of the Company as MHL's investors include a subsidiary of FF Global. FF Global has control over the Company's management,
business and operations. See Note 7,
Notes Payable
to the Consolidated Financial Statements, for details on the
Original
Unsecured SPA.
The
Company elected the fair value option afforded by ASC 825,
Financial Instruments
, with respect to the
Original
Unsecured
SPA Notes because the notes include features, such as a contingently exercisable put option, which meet the definition of an embedded
derivative. The Company expensed the original issue discount and transaction costs to Changes in fair value of related party notes payable
and warrant liabilities in the Consolidated Statement of Operations and Comprehensive Loss.
Subsequent
to the issuance of the
Original
Unsecured SPA, MHL funded, net of original issue discounts, $20.7 million in exchange for
the issuance of the
Original
Unsecured SPA Notes and related warrants. In connection with the
Original
Unsecured SPA, the
Company issued MHL warrants to purchase 35,405 shares of the Class A Common Stock at an exercise price of $214.20 per share, subject to
anti-dilution ratchet price protection, exercisable for seven years from the date of issuance (see Note 11,
Stockholders' Equity
and
Note 7,
Notes Payable
to the Consolidated Financial Statements). During the year ended December 31, 2023, MHL converted
$22.3 million of gross principal balances in exchange for 5,010,651 shares of the Class A Common Stock. In connection with the conversion
of
Original
Unsecured SPA Notes, the Company recognized a $20.0 million Loss on settlement of related party notes payable,
during the year ended December 31, 2023, for the difference between the fair value of the shares issued and the fair value of the
debt instrument.
Chinese Related Party
Notes Payable
As
of December 31, 2022, due to two separate note payable payoff settlement agreements entered into with Chongqing Leshi Small Loan Co.,
Ltd. ("Chongqing") on December 27, 2022, according to which Chongqing agreed to forgive principal and all outstanding accrued
interest, the remaining principal balance of $4.7 million was agreed to be payable in five installment payments through December 31, 2023
and the current interest rate was set to 12%. The remaining amounts are due on demand to various other Chinese related party notes payable
holders and bear a 0% coupon. Interest at a rate of 10% is imputed on these related party notes payable as the interest rates prescribed
by the respective agreements are below market rates. As of April 1, 2023, the Company has been in breach of its debt agreement with, and
contractual obligation to make interest payments to, Chongqing , with an outstanding principal balance of $4.5 million. As a result
of the default, the interest rate on the outstanding principal balance has increased to a rate of 18% per annum until the event of default
is no longer applicable. The Company recorded $0.1 million in interest expense in related party interest expense during the year ended
December 31, 2023.
165
X-Butler previously
known as Warm Time Inc. ("Warm Time") and Ocean View Drive Inc. ("Ocean View") Transactions
The
Company leased two real properties, located in Rancho Palos Verdes, California (the "Rancho Palos Verdes Properties"), from
X-Butler from January 1, 2018 through March 31, 2022. X-Butler in turn leased the Rancho Palos Verdes Properties from Yueting Jia, the
Company's founder and Chief Product and User Ecosystem Officer. The Rancho Palos Verdes Properties were used by the Company to provide
long-term or temporary housing to employees of the Company (including a former Global CEO. According to the agreement between the parties,
the Company paid X-Butler for rent and certain services, including catering, room services and organization of meetings, external gatherings
and events, for the Rancho Palos Verdes Properties. For the year ended December 31, 2023, the Company paid to X-Butler less than
$0.1 million, for rent and business development services rendered to the Company and its executives. The Company has recorded approximately
$0.1 million recorded in Accounts Payable as of December 31. 2023.
As
part of its relationship with the Company, X-Butler also served as the conduit for certain loans from Ocean View, an entity formerly controlled
by Mr. Jia and now wholly owned by the spouse of Mr. Ruokun Jia, who is the former Assistant Treasurer of the Company and Mr. Jia's
nephew. The loan principal was repaid to the Company in prior years and accrued interest on such loans remains outstanding as of December 31,
2023 and 2022 in the amount of $0.0 million for each period.
In
prior years, the Company advanced funding to Ocean View for various real estate purchases, including the Rancho Palos Verdes Properties,
and related expenses. As of December 31, 2023 and 2022, the Company had a receivable in the amount of $0.0 million for each period,
due from Ocean View recorded in Deposits in the Consolidated Balance Sheets.
On
February 9, 2023, the Company made a payment of approximately $0.2 million on behalf of Ocean View, an indemnified co-defendant,
in connection with a seizure of funds related to the outstanding judgment in ongoing litigation, also involving Han's San Jose Hospitality,
LLC. Ocean View fulfilled its payment obligation under the settlement arrangement of such litigation, but the Company did not make its
payment on the outstanding judgment which caused such seizure of funds of Ocean View. See Note 10,
Commitments and Contingencies
to
the Consolidated Financial Statements, for more information. Following such seizure, the Company paid the outstanding judgment and all
accrued interest. The Company received the return of such indemnification payment in April 2023.
FF Global Expense
Reimbursements and Consulting Fees
On
July 30, 2022, the Company entered into the Preliminary Term Sheet with FF Top, a subsidiary of FF Global, setting out a summary of the
preliminary terms and conditions for FF Top's assistance in arranging a proposed convertible term loan facility to the Company.
In connection with the Preliminary Term Sheet, the Company agreed to reimburse FF Top for its reasonable and documented out-of-pocket
legal and diligence fees and expenses incurred in connection with such financing efforts up to a $0.3 million cap (the "Original
Cap"), irrespective of whether or not closing occurred, with $0.2 million to be payable as a deposit upon execution of the
Preliminary Term Sheet. Pursuant to the Preliminary Term Sheet, the Company paid FF Top $0.2 million on August 9, 2022 and $0.2 million
on December 16, 2022.
On
January 31, 2023, the Company entered into a supplemental agreement to the Term Sheet and with FF Global, pursuant to which the parties
agreed, due to the high amount of FF Global's out-of-pocket legal fees and expenses incurred in connection with its financing efforts,
to amend the Term Sheet to increase the cap for legal fees and expenses from $0.3 million to $0.7 million. The Company agreed
to pay the remaining $0.4 million of the fees owed to FF Global as follows: (i) $0.2 million within one business day of execution
of the Supplemental Agreement, and (ii) $0.2 million within one business day of consummation of new financing by the Company in an
amount not less than $5.0 million or an earlier date approved by the Board. Pursuant to the Term Sheet, as amended by the Supplemental
Agreement, the Company paid FF Global $0.2 million on each of February 1, 2023 and February 6, 2023. On April 8, 2023, the Company
reimbursed FF Global for $0.2 million related to legal expenses incurred by FF Global in connection with the Sixth Pre-existing SPA
Amendment. In addition, on April 10, 2023 and May 31, 2023, the Company reimbursed FF Global for $0.1 million and $0.3 million
related to legal expenses incurred by FF Global in connection with the Unsecured Financing.
166
In
early February 2023, FF Global requested from the Company legal expense reimbursement of $6.5 million for costs incurred related
to the governance changes at the Company, which was not approved by the Board as of the date the Consolidated Financial Statements were
issued. FF Global may in the future continue to request additional expense reimbursements and indemnification from the Company.
On
March 6, 2023, the Company entered into a consulting service agreement with an effective date of February 1, 2023 with FF Global (the
"Consulting Services Agreement"), according to which the Company agreed to pay a monthly consulting fee of $0.2 million
to FF Global for the following services:
●
Assistance in developing its funding strategy.
●
Assistance in developing its value return and management strategy.
●
Consultation on and integration of stockholder relations and stockholder resources.
●
Supporting communications regarding stockholders meetings.
●
Developing existing stockholder financing strategy, including with respect to retail investors and others.
●
Assistance in risk management strategy.
●
Assistance in capability build up and operation strategy.
The
Consulting Services Agreement has an initial term of 12 months and automatically renews for successive 12 months periods unless earlier
terminated in accordance with the terms thereof. Effective March 6, 2024, the Consulting Agreement renewed automatically. Either party
may terminate the Consulting Services Agreement upon one month prior written notice to the other party. Upon any termination of the Consulting
Services Agreement, the Company shall promptly pay FF Global any accrued but unpaid fees hereunder and shall reimburse FF Global for any
unreimbursed expenses that are reimbursable thereunder. In addition, FF Global is entitled to reimbursement for all reasonable and documented
out-of-pocket travel, legal, and other out-of-pocket expenses incurred in connection with their services, which expenses shall not exceed
$0.1 million without the prior written consent of the Company. The Company paid $1.8 million, respectively, to FF Global during the
year ended December 31, 2023, pursuant to the Consulting Services Agreement. The Company has $0.6 million of amounts payable to FF
Global recorded in Accounts Payable and Accrued Liabilities in the Consolidated Balance Sheets at December 31, 2023.
Common Units of FF
Global
During
2022, certain executives and employees of the Company were granted the opportunity to subscribe to 2,500 common units of FF Global. The
subscription price of $4,800 per common unit, payable by the executives and employees of the Company, was financed through non-recourse
loans issued by FF Global payable in equal annual installments over ten years. The common units to be purchased with a non-recourse loan
are required to be treated for accounting purposes as stock options granted by FF Global to executives and employees of the Legacy FF.
The awards were valued using the Black-Scholes option pricing model. The grant date fair value of the units purchased through non-recourse
loans was immaterial for the years ended December 31, 2023 and 2022.
Advertising Services
Payable to Leshi Information Technology Co., Ltd. ("LeTV")
The
Company has recorded a payable to LeTV within Accrued expenses and other current liabilities in the amount of $7.5 million and $7.0 million
as of December 31, 2023 and December 31, 2022, respectively, in connection with advertising services provided to the Company
in prior years. LeTV is a Shanghai Stock Exchange-listed public company founded and controlled by Mr. Yueting Jia, the Company's
founder and Chief Product and User Ecosystem Officer.
167
Other Related Party
Transactions
The
Company pays for a vehicle lease totaling less than $0.1 million annually on behalf of Mr. Jia, the Company's founder and Chief
Product and User Ecosystem Officer. In addition, during 2023, the Company leased a FF 91 to Mr. Jia.
The
Company owes a total of $0.2 million and $0.1 million to various related parties as of December 31, 2023 and 2022, respectively,
which is included in Accounts Payable within the Consolidated Balance Sheets.
Procedures with Respect
to Review and Approval of Related Person Transactions
Following
the consummation of the Business Combination, the Board adopted a written policy with respect to the review, approval and ratification
of related person transactions. Under the policy, FF's Audit Committee is responsible for reviewing and approving related person
transactions. In the course of its review and approval of related party transactions, the Audit Committee will consider the relevant facts
and circumstances to decide whether to approve such transactions. In particular, the policy requires the Audit Committee to consider,
among other factors it deems appropriate:
●
the related person's relationship to FF and interest in the transaction;
●
the material facts of the proposed transaction, including the proposed aggregate value of the transaction;
●
the impact on a director's or a director nominee's independence in the event the related person
is a director or director nominee or an immediate family member of the director or director nominee;
●
the benefits to FF of the proposed transaction;
●
if applicable, the availability of other sources of comparable products or services; and
●
an assessment of whether the proposed transaction is on terms that are comparable to the terms available
to an unrelated third party or to employees generally.
The
Audit Committee may only approve those transactions that are in, or are not inconsistent with, FF's best interests and those of
FF's stockholders, as the Audit Committee determines in good faith.
In
addition, under FF's Code of Business Conduct and Ethics, FF's employees, officers, directors and director nominees have an
affirmative responsibility to disclose any transaction or relationship that reasonably could be expected to give rise to a conflict of
interest.
168
PRINCIPAL STOCKHOLDERS
The
following table and accompanying footnotes set forth information with respect to the beneficial ownership of Common Stock, as of October
8, 2024, for (1) each person known by us to be the beneficial owner of more than 5% of the outstanding shares of Common Stock, (2) each
member of the Board, (3) each of our named executive officers and (4) all of the members of the Board and our executive officers, as a
group. As of October 8, 2024, there were outstanding 33,377,187 shares of Class A Common Stock, 6,667 shares of Class B Common Stock,
and 1,296,410 outstanding warrants to purchase shares of Class A Common Stock.
The
beneficial ownership percentages set forth in the table below are based on 33,383,854 shares of Common Stock issued and outstanding as
of October 8, 2024, (including for this purpose, 6,667 shares of Class A Common Stock issuable upon conversion of 6,667 shares of Class
B Common Stock held by FF Top, all as issued and outstanding shares as of October 8, 2024) and do not take into account the issuance of
any shares of Class A Common Stock upon the exercise of warrants to purchase up to 1,296,410 shares of Class A Common Stock that remain
outstanding, the exercise of any of the 2,871 outstanding options and vesting of unvested 1,529,761 RSUs (both within 60 days of October
8, 2024), or the conversion of any of the outstanding convertible notes. In computing the number of shares of Common Stock beneficially
owned by a person, we deemed to be outstanding all shares of Common Stock subject to warrants and stock options held by the person that
are currently exercisable or may be exercised within 60 days of October 8, 2024. We did not deem such shares outstanding, however, for
the purpose of computing the percentage ownership of any other person.
Beneficial
ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC. A person is a
"beneficial owner" of a security if that person has or shares "voting power," which includes the power to vote
or to direct the voting of the security, or "investment power," which includes the power to dispose of or to direct the disposition
of the security or has the right to acquire such powers within 60 days.
Unless
otherwise noted in the footnotes to the following table, and subject to applicable community property laws, the persons and entities named
in the table have sole voting and investment power with respect to their beneficially owned Common Stock. Unless otherwise indicated,
the business address of each person listed in the table below is c/o Faraday Future Intelligent Electric Inc., 18455 S. Figueroa Street,
Gardena, California 90248.
Title of Class
Name and Address of Beneficial Owner
Number of Shares of Common Stock Beneficially Owned
Percentage of Class
Holder of Over 5%:
Class A Common Stock
N/A
Directors and Executive Officers
Class A Common Stock
Matthias Aydt(1)**
41,135
*
Class A Common Stock
Chad Chen(2)****
22,942
*
Class A Common Stock
Xuefeng Chen***
4
*
Class A Common Stock
Scott Graziano*****
0
*
Class A Common Stock
Yun Han******
0
*
Class A Common Stock
Li Han****
369
*
Class A Common Stock
Chui Tin Mok(3)****
32,106
*
Class A Common Stock
Jie Sheng(4)****
22,936
*
Class A Common Stock
Lev Peker(5)****
22,810
*
Class A Common Stock
Jonathan Maroko********
8,247
*
Class A Common Stock
Yueting Jia (6)*******
403,468
1.21
%
All executive officers and directors as a group (11 individuals)
554,018
1.66
%
*
Less
                                            than 1%.
**
Mr.
                                            Matthias Aydt was appointed Global CEO of the Company effective as of September 29, 2023.
***
Mr.
                                            Xuefeng Chen was appointed Global CEO of the Company effective as of November 27, 2022 and
                                            was appointed as a director of the Board on December 27, 2022. Mr. Chen resigned from his
                                            positions as Global CEO and director effective as of September 29, 2023.
169
****
Mr.
                                            Chad Chen was appointed as a director of the Board as of October 27, 2022. Mr. Jie Sheng
                                            was appointed as a director of the Board on December 18, 2022. Mr. Chui Tin Mok was appointed
                                            as a director of the Board on January 25, 2023. Ms. Li Han was appointed as a director of
                                            the Board on March 13, 2023, and resigned from the position on June 9, 2024. Mr. Lev Peker
                                            was appointed as a director of the Board on August 4, 2023.
*****
Mr. Scott Graziano was appointed Global General Counsel of the Company effective as of September 25, 2023.
******
Ms.
                                            Yun Han was appointed as Chief Accounting Officer and Interim Chief Financial Officer of
                                            the Company on October 22, 2022, effective as of October 25, 2022. Ms. Han resigned from
                                            her position as Interim Chief Financial Officer of the Company effective as of July 5, 2023.
                                            Ms. Han resigned from her position as Chief Accounting Officer of the Company as of February
                                            2, 2024.
*******
On
                                            February 26, 2023, Mr. Yueting Jia was determined to be an "officer" of the Company
                                            within the meaning of Section 16 of the Exchange Act and an "executive officer"
                                            under Rule 3b-7 under the Exchange Act.
********
Mr. Jonathan Maroko was appointed Interim Chief Financial Officer of the Company effective as of July 24, 2023, and resigned from the position on September 15, 2024.
(1)
Includes
                                            options to acquire 69 shares of Class A Common Stock and right to acquire 35,740 shares of
                                            class A common Stock that have vested or will vest within 60 days of October 8, 2024. To
                                            the Company's knowledge, Mr. Aydt has not sold any shares since the Company became
                                            a public company.
(2)
Includes right to acquire 22,556 shares of Class A Common Stock
that will vest within 60 days of October 8, 2024. To the Company's knowledge, Mr. Chen has not sold any shares since the Company
became a public company
(3)
Includes options to acquire 115 shares of Class A Common Stock
and right to acquire 31,965 shares of class A common Stock that have vested or will vest within 60 days of October 8, 2024. To the Company's
knowledge, Mr. Mok has not sold any shares since the Company became a public company.
(4)
Includes
right to acquire 22,556 shares of Class A Common Stock that will vest within 60 days of October 8, 2024. To the Company's knowledge,
Mr. Sheng has not sold any shares since the Company became a public company
(5)
Includes
right to acquire 22,556 shares of Class A Common Stock that will vest within 60 days of October 8, 2024. To the Company's knowledge,
Mr. Peker has not sold any shares since the Company became a public company.
(6)
Includes options to
                                                                                                                                                                 acquire 75 shares of Class A Common Stock and right to acquire 398,205 shares of class A common Stock that have vested or will vest
                                                                                                                                                                 within 60 days October 8, 2024. To the Company's knowledge, Mr. Jia has not sold any shares since the Company became a public
                                                                                                                                                                 company.
170
SELLING SECURITYHOLDERS
This prospectus relates to the issuance by us, and the offer and sale
from time to time by the Selling Securityholders, of up to an aggregate of 29,659,781 shares of Class A Common Stock, of which 28,017,654
shares of Class A Common Stock are issuable upon conversion of the SPA Notes and the exercise of the SPA Warrants, 561,833 shares of Class
A Common Stock are issuable upon conversion of the Applicable Tranche D Notes, and 1,080,294 shares of Class A Common Stock issued to
Palantir in settlement of amounts owed to Palantir. The Selling Securityholders listed in the table below may from time to time offer
and sell any or all of the shares of Class A Common Stock set forth below pursuant to this prospectus and any accompanying prospectus
supplement. When we refer to the "Selling Securityholders" in this prospectus, we refer to the persons listed in the table
below, and the pledgees, donees, transferees, assignees, successors and other permitted transferees that hold any of the Selling Securityholders'
interest in the shares of Class A Common Stock after the date of this prospectus. For additional information regarding the issuance of
the SPA Notes and the SPA Warrants, see "
New SPA, SPA Warrants, and SPA Notes
" below.
The following table sets forth
information provided by or on behalf of each Selling Securityholder as of October 8, 2024 regarding the aggregate number of shares of
Class A Common Stock (including shares of Class A Common Stock issuable upon exercise of SPA Warrants or conversion of SPA Notes and Applicable
Tranche D Notes), the aggregate number of shares of Class A Common Stock (including shares of Class A Common Stock issuable upon exercise
of SPA Warrants or conversion of SPA Notes and Applicable Tranche D Notes) that may be offered from time to time by each Selling Securityholder
pursuant to this prospectus and any accompanying prospectus supplement, and the number of shares of Class A Common Stock (including shares
of Class A Common Stock issuable upon exercise of SPA Warrants or conversion of SPA Notes and Applicable Tranche D Notes), and percentage
ownership of, each Selling Securityholder after the sale of securities offered hereby.
The applicable beneficial
ownership percentages prior to the offering set forth in the second column of the table below are based on 33,377,187 shares of Class
A Common Stock issued and outstanding as of October 8, 2024 (excluding, for this purpose, 6,667 shares of Class B Common Stock held by
FF Top, all as issued and outstanding shares as of October 8, 2024), and do not take into account the issuance of any shares of Class
A Common Stock upon the exercise of warrants to purchase up to 1,296,410 shares of Class A Common Stock that remain outstanding, the exercise
of any of the 2,879 outstanding options and vesting of 1,516,942 unvested RSUs (both as of October 8, 2024), and the applicable beneficial
ownership percentages after the offering in the fourth column of the table below are based on 63,036,876 shares of Class A Common Stock
outstanding after the offering.
Under the terms of the Secured
Notes and Warrants, a selling stockholder may not convert the notes or exercise the warrants to the extents (but only to the extent) such
selling stockholder or any of its affiliates would beneficially own a number of shares of our Class A Common Stock which would exceed
4.99% or 9.99%, as applicable (the "Maximum Percentage") of our outstanding shares. The number of shares in the second column
of the table below reflects these limitations.
For purpose of the calculations of the shares of Class A Common Stock
to be sold by a particular Selling Securityholder pursuant to this prospectus as listed in the third column of the table below we are
assuming, that (i) interest on the Secured Notes has not accrued, (ii) an event of default under the Secured Notes has not occurred, (iii)
the Secured Notes are converted at the floor price of $1.048, and (iv) the exercise of all of the Warrants in full without regard to any
limitations on exercise set forth in the Warrants.
171
The fourth column of the table below represents the amount of shares
of Class A Common Stock that will be held by the Selling Securityholders after completion of this offering based on the assumptions that
(a) all shares of Class A Common Stock underlying the Secured Notes and the Warrants registered for sale by the registration statement
of which this prospectus is part of will be sold, and (b) no other shares of Class A Common Stock are acquired or sold by the Selling
Securityholders prior to completion of this offering. However, the Selling Securityholders are not obligated to sell all or any portion
of the shares of our Class A Common Stock offered pursuant to this prospectus. See "
Plan of Distribution
." In particular,
the Selling Securityholders identified below may have sold, transferred or otherwise disposed of all or a portion of their securities
after the date on which they provided us with information regarding their securities. Any changed or new information given to us by the
Selling Securityholders, including regarding the identity of, and the securities held by, each Selling Securityholder, will be set forth
in a prospectus supplement or amendments to the registration statement of which this prospectus is a part, if and when necessary.
Number of Shares of Class A Common Stock
Beneficially Owned
Number of Shares of Class A Common Stock Being
Number of Shares of Class A Common Stock Owned
After Offering
Name of Selling Stockholder
Number
Percent
Offered
Number
Percent
FF Simplicity Ventures LLC (1)
3,704,456
(2)
9.99
%
5,772,902
(1)
2,970,767
7.05
%
About Investment Pte. Ltd (3)(6)
1,752,996
(3)
4.99
%
10,496,183
—
—
Senyun International Limited (4)
3,704,456
(4)
9.99
%
9,446,564
4,752,908
9.99
%
Master Investment Group (5)(6)
1,752,996
(5)
4.99
%
2,099,237
—
—
Univest Securities, LLC ("Univest")(7)
202,768
*
202,768
—
—
Palantir Technologies Inc.(8)
1,080,294
3.24
%
1,080,294
—
—
FF Adventures SPV XVIII LLC (9)
3,704,456
(2)
9.99
%
233,592
1,268,533
3.64
%
FF Aventuras SPV XI LLC (10)
3,704,456
(2)
9.99
%
49,859
443,840
1.31
%
FF Venturas SPV X LLC (11)
3,704,456
(2)
9.99
%
79,753
713,319
2.09
%
FF Ventures SPV IX LLC (12)
3,704,456
(2)
9.99
%
86,372
993,371
2.88
%
FF Vitality Ventures LLC (13)
3,704,456
(2)
9.99
%
112,257
175,200
0.52
%
*
less than 1%
(1)
ATW Partners Opportunities Management, LLC (the "Investment Manager")
acts as the investment manager of FF Simplicity Ventures LLC ("FF Simplicity"), and may be deemed to have voting and dispositive
power with respect to the shares of Class A Common Stock held by FF Simplicity. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing
members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting
power over the shares of Class A Common Stock held by FF Simplicity. The Investment Manager and the managing members each disclaim beneficial
ownership of the shares held by FF Simplicity. The address of the principal business office of each of the Investment Manager and FF Simplicity
is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.
172
(2)
"Number of Shares of Class A Common Stock Beneficially Owned"
consists of shares of Class A Common Stock beneficially owned as of October 8, 2024 by each of FF Simplicity Ventures LLC, FF Adventures
SPV XVIII LLC, FF Aventuras SPV XI LLC, FF Venturas SPV X LLC, FF Ventures SPV IX LLC, and FF Vitality Ventures LLC (collectively, the
"ATW Funds") which entities are under common control, after giving effect to the Maximum Percentage of 9.99% (although the
Maximum Percentage set forth in each security may be listed as 4.99% or 9.99% depending on the security, however, the ATW Funds have requested,
prior to the date hereof, an increase of the Maximum Percentage for each security to 9.99%, which will be effective 61 days after such
notice). Without regard to the Maximum Percentage, as of October 8, 2024, each of the ATW Funds would beneficially own an aggregate number
of 12,899,765 shares of our Class A Common Stock consisting of (A) FF Simplicity Ventures LLC would beneficially own an aggregate number
of 8,743,669 shares of our Class A Common Stock consisting of (i) 76,740 shares of Class A Common Stock held by this Selling Stockholder,
none of which are being registered under this prospectus; (ii) 2,624,046 shares of Class A Common Stock underlying the Secured Notes held
by this Selling Stockholder, converted at an alternate conversion price of $1.048 per share, all of which are being registered under this
prospectus; (iii) 524,810 shares of Class A Common Stock underlying the Warrants held by this Selling Stockholder, currently exercisable,
at a price of $6.29 per share, all of which are being registered under this prospectus; (iv) 2,624,046 shares of Class A Common Stock
underlying the Incremental Notes, converted at an alternate conversion price of $1.048 per share, issuable upon exercise of the Incremental
Warrants held by this Selling Stockholder, all of which are being registered under this prospectus; (v) 300,278 shares of Class A Common
Stock underlying the outstanding Applicable Tranche D Notes that were previously acquired by this Selling Stockholder, converted at a
conversion price of $2.282, none of which are being registered under this prospectus; (vi) 791 shares of Class A Common Stock underlying
the outstanding Pre-existing SPA Warrants that were previously acquired by this Selling Stockholder, none of which are being registered
under this prospectus; and (vii) 2,592,958 shares of Class A Common Stock underlying the outstanding Exchange Note that was previously
acquired by this Selling Stockholder, none of which are being registered under this prospectus; (B) FF Adventures SPV XVIII LLC would
beneficially own an aggregate number of 1,502,125 shares of our Class A Common Stock consisting of (i) 132,269 shares of Class A Common
Stock underlying the Streeterville Note previously acquired by this Selling Stockholder, converted at an conversion price of $2.282 per
share, none of which are being registered under this prospectus; (ii) 1,369,747 shares of Class A Common Stock underlying the outstanding
Tranche D Notes that were previously acquired by this Selling Stockholder, converted at a conversion price of $2.282, of which 233,592
shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered under this prospectus; and (iii) 109 shares
of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this Selling Stockholder, none of which are being
registered under this prospectus; (C) FF Aventuras SPV XI, LLC would beneficially own an aggregate number of 493,699 shares of our Class
A Common Stock consisting of (i) 46,278 shares of Class A Common Stock underlying the Streeterville Note previously acquired by this Selling
Stockholder, converted at an conversion price of $2.282 per share, none of which are being registered under this prospectus; (ii) 447,387
shares of Class A Common Stock underlying the outstanding Tranche D Notes that were previously acquired by this Selling Stockholder, converted
at a conversion price of $2.282, of which 49,859 shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered
under this prospectus; and (iii) 34 shares of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this
Selling Stockholder, none of which are being registered under this prospectus; (D)  FF Venturas SPV X LLC would beneficially
own an aggregate number of 793,072 shares of our Class A Common Stock consisting of (i) 74,376 shares of Class A Common Stock underlying
the outstanding Streeterville Note previously acquired by this Selling Stockholder, converted at an conversion price of $2.282 per share,
none of which are being registered under this prospectus; (ii) 718,641 shares of Class A Common Stock underlying the outstanding Tranche
D Notes that were previously acquired by this Selling Stockholder, converted at a conversion price of $2.282, of which 79,753 shares of
Class A Common Stock underlying the Applicable Tranche D Notes are being registered under this prospectus, and (iii) 55 shares of Class
A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this Selling Stockholder, none of which are being registered
under this prospectus; (E) FF Venturas SPV IX LLC would beneficially own an aggregate number of 1,079,743 shares of our Class A Common
Stock consisting of (i) 103,580 shares of Class A Common Stock underlying the Streeterville Note previously acquired by this Selling Stockholder,
converted at an conversion price of $2.282 per share, none of which are being registered under this prospectus; (ii) 976,087 shares of
Class A Common Stock underlying the outstanding Tranche D Notes that were previously acquired by this Selling Stockholder, converted at
a conversion price of $2.282, of which 86,372 shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered
under this prospectus; and (iii) 76 shares of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this
Selling Stockholder, none of which are being registered under this prospectus; and (F) FF Vitality Ventures LLC would beneficially own
an aggregate number of 287,457 shares of our Class A Common Stock consisting of (i) 286,090 shares of Class A Common Stock underlying
the outstanding Tranche D Notes that were previously acquired by this Selling Stockholder, converted at a conversion price of $2.282,
of which 112,257 shares of Class A Common Stock underlying the Applicable Tranche D Notes are being registered under this prospectus;
and (ii) 1,367 shares of Class A Common Stock underlying the Pre-existing SPA Warrants previously acquired by this Selling Stockholder,
none of which are being registered under this prospectus.
173
(3)
"Number of Shares of Class A Common Stock Beneficially Owned" consists of shares of Class A Common Stock About Investment beneficially owns as of October 8, 2024, after giving effect to the limitation percentage, of 4.99% (the "limitation Percentage"). Without regard to the Limitation Percentage, as of October 8, 2024, shares of Class A Common Stock About Investment would beneficially own includes 10,496,182 shares of Class A Common Stock issuable to About Investment upon the conversion of the SPA Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants. "Number of Shares of Class A Common Stock Being Offered" includes 5,725,190 shares of Class A Common Stock issuable to About Investment upon the conversion of the Secured Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants at an exercise price of $6.29, within 60 days of October 8, 2024, and 4,770,992 shares of Class A Common Stock issuable upon conversion of the Incremental Notes issuable upon exercise of the Incremental Warrants. The SPA Notes, if available, are convertible at the Conversion Price or at the Alternate Price". The principal business address of the Selling Securityholder is 71 Robinson Road, Singapore, 068895.
(4)
"Number of Shares of Class A Common Stock Beneficially Owned" consists of shares of Class A Common Stock Senyun beneficially owns as of October 8, 2024, after giving effect to the Maximum Percentage. Without regard to the Maximum Percentage, as of October 8, 2024, shares of Class A Common Stock Senyun would beneficially own would be 62,355,368, which includes (i) 24,354,131 shares of Class A Common Stock issuable to Senyun and conversion of the SPA Notes and the exercise of the SPA Warrants; (ii) 20,295,109 shares of Common Stock underlying the Incremental Notes, converted at an alternate conversion price of $1.048 per share, issuable upon exercise of the Incremental Warrants held by this Selling Stockholder; (iii) 17,696,703 shares of Class A Common Stock issuable to Senyun upon the conversion of Pre-existing SPA Notes and (iv) 9,435 shares of Class A Common Stock issuable to Senyun upon the exercise of Pre-existing SPA Warrants, in each case, within 60 days of October 8, 2024, "Number of Shares of Class A Common Stock Being Offered" includes 5,152,581 shares of Class A Common Stock issuable to Senyun upon the conversion of the Secured Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants at an exercise price of $6.29, within 60 days of October 8, 2024, and 4,293,893 shares of Class A Common Stock issuable upon conversion of the Incremental Notes issuable upon exercise of the Incremental Warrants. The SPA Notes, if available, are convertible at the Conversion Price or at the Alternate Price. The Warrants and the SPA Notes are subject to a blocker provision which prevents the holder from exercising the Warrants to the extent that, upon such exercise, the holder, together with its affiliates, would beneficially own in excess of 9.99% of the outstanding shares of FFIE Common Stock immediately after giving effect to the exercise thereof. Bo Zhang is the sole director of Senyun and may be deemed to beneficially own the securities held by Senyun. Mr. Zhang disclaims any beneficial ownership of the reported securities other than to the extent of his pecuniary interest therein. The address for Senyun is Flat/Rm. 1121, #11F, Ocean Centre Harbour City, 5 Canton Road, Hong Kong.
(5)
"Number of Shares of Class A Common Stock Beneficially Owned" consists of shares of Class A Common Stock MIG beneficially owns as of October 8, 2024, after giving effect to the limitation percentage, of 4.99% (the "limitation Percentage"). Without regard to the Limitation Percentage, as of October 8, 2024, shares of Class A Common Stock MIG would beneficially own include 2,099,237 shares of Class A Common Stock issuable to MIG upon the conversion of the SPA Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants. "Number of Shares of Class A Common Stock Being Offered", which includes 1,145,039 shares of Class A Common Stock issuable to MIG upon the conversion of the Secured Notes, calculated using an Alternate Price of $1.048, and upon exercise of the Warrants at an exercise price of $6.29, within 60 days of October 8, 2024, and 954,198 shares of Class A Common Stock issuable upon conversion of the Incremental Notes issuable upon exercise of the Incremental Warrants. The SPA Notes, if available, are convertible at the Conversion Price or at the Alternate Price". The address of MIG is 730, 1st Floor, Sheikh Mohammed Building, Nakheel, Ras Al Khaimah, UAE.
(6)
The Warrants are subject to a blocker provision which prevents the holder from exercising the Warrants to the extent that, upon such exercise, the holder, together with its affiliates, would beneficially own in excess of 9.99% of the outstanding shares of FFIE Common Stock immediately after giving effect to the exercise thereof. The SPA Notes (other than Senyun's SPA Notes) are subject to a similar blocker provision which prevents the holder from converting the SPA Notes to the extent that, upon such conversion, the holder, together with its affiliates, would beneficially own in excess of 4.99% of the outstanding shares of FFIE Class A Common Stock immediately after giving effect to the conversion thereof.
(7)
"Number of Shares of Class A Common Stock Beneficially Owned" and "Number of Shares of Class A Common Stock Being Offered" both include 202,768 shares of Class A Common Stock issuable upon the exercise of the PA Warrants, exercisable immediately at an exercise price of $6.29, which was issued in connection with Univest's role as placement agent in connection with the SPA. The PA Warrants are subject to a blocker provision which prevents the holder from exercising the PA Warrants to the extent that, upon such exercise, the holder, together with its affiliates, would beneficially own in excess of 4.99%, and in no event exceeds 9.99% of the outstanding shares of FFIE Common Stock immediately after giving effect to the exercise thereof, and in no event exceeds 9.99%.
174
(8)
The principal business address of the Selling Securityholder is 1200 17
th
Street, Floor 15, Denver, Colorado 80202.
(9)
ATW Partners Opportunities Management, LLC (the "Investment Manager") acts as the investment manager of FF Adventures SPV XVIII LLC ("SPV XVIII"), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV XVIII. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV XVIII. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV XVIII. The address of the principal business office of each of the Investment Manager and SPV XVIII is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.
(10)
ATW Partners Opportunities Management, LLC (the "Investment Manager") acts as the investment manager of FF Aventuras SPV XI, LLC ("SPV XI"), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV XI. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV XI. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV XI. The address of the principal business office of each of the Investment Manager and SPV XI is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.
(11)
ATW Partners Opportunities Management, LLC (the "Investment Manager") acts as the investment manager of FF Venturas SPV X, LLC ("SPV X"), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV X. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV X. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV X. The address of the principal business office of each of the Investment Manager and SPV X is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.
(12)
ATW Partners Opportunities Management, LLC (the "Investment Manager") acts as the investment manager of FF Venturas SPV IX LLC ("SPV IX"), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by SPV IX. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by SPV IX. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by SPV IX. The address of the principal business office of each of the Investment Manager and SPV IX is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.
(13)
ATW Partners Opportunities Management, LLC (the "Investment Manager") acts as the investment manager of FF Vitality Ventures LLC "(Ventures"), and may be deemed to have voting and dispositive power with respect to the shares of Class A Common Stock held by Ventures. Antonio Ruiz-Gimenez and Kerry Propper serve as the managing members of the Investment Manager, and in their capacities as managing members, may also be deemed to have investment discretion and voting power over the shares of Class A Common Stock held by Ventures. The Investment Manager and the managing members each disclaim beneficial ownership of the shares held by Ventures. The address of the principal business office of each of the Investment Manager and Ventures is 1 Pennsylvania Plaza, Suite 4810, New York, New York 10119.
175
DESCRIPTION OF SECURITIES
The following summary of the
material terms of our securities is not intended to be a complete summary of the rights and preferences of such securities, and is qualified
by reference to our Amended and Restated Charter, our Amended and Restated Bylaws and the warrant-related documents described herein,
which are exhibits to the registration statement of which this prospectus is a part. We urge to you read each of the Amended and Restated
Charter, the Amended and Restated Bylaws and the warrant-related documents described herein in their entirety for a complete description
of the rights and preferences of our securities.
General
The Amended and Restated Charter,
as amended, authorizes the issuance of up to the Corporation is authorized to issue is 114,245,313 shares, consisting of two classes of
stock: (i) 104,245,313 shares Common Stock, and (ii) 10,000,000 shares of Preferred Stock $0.0001 par value per share (the "
Preferred
Stock
"). The class of Common Stock shall be divided into two series of stock composed of (i) 99,815,625 shares of Class
A Common Stock (the "
Class A Common Stock
"), and (ii) 4,429,688 shares of Class B Common Stock (the "
Class
B Common Stock
"). For the avoidance of doubt, the Class A Common Stock and Class B Common Stock are separate series within
a single class of Common Stock, and are referred to herein together as the "Common Stock."
As of October 8, 2024, there
were outstanding 33,377,187 shares of Class A Common Stock, 6,667 shares of Class B Common Stock, no shares of Preferred Stock, 2,453
Public Warrants, 12 Private Warrants, 1,278,802 Ares NPA Warrants, an aggregate of 15,143 Pre-existing SPA Warrants and warrants underlying
the Original Unsecured SPA, Secured Notes with an aggregate principal amount of $30,019,724, 5,931,538 Warrants, Incremental Warrants
to purchase Incremental Notes in an aggregate principal amount up to $30,019,724, and 202,768 PA Warrants.
Common Stock
As of the date of this prospectus, the holders
of Class A Common Stock and Class B Common Stock are entitled to one vote for each share held of record on all matters to be
voted on by stockholders. Pursuant to the Amended Shareholder Agreement, FF Top informed the Company that it expects the Company will
submit a proposal to the Company stockholders for approval to amend the Amended and Restated Charter to provide that (i) the voting power
of the Company's Class B Common Stock, of which FF Global owns all outstanding shares, will be ten votes per share and (ii) the
voting power of the Company's Class B Common Stock will increase from ten votes per share to twenty votes per share following the
occurrence of a Qualifying Equity Market Capitalization.
A "Qualifying Equity Market Capitalization"
means FF, at the end of any 20 consecutive trading days, has a volume weighted average total equity market capitalization of at least
$20.0 billion as determined by multiplying the average closing sale price per share of Class A Common Stock on the Nasdaq (or such
other securities exchange on which PSAC's securities are then listed for trading) at the time of determination by the then total
number of issued shares of Class A Common Stock, Class B Common Stock and other shares of FFIE.
Until such proposal is approved and the Amended
and Restated Charter is amended accordingly, the holders of Class B Common Stock are entitled to one vote for each share held of record,
and a $20.0 billion equity market capitalization would be required to increase the voting power of the Class B Common Stock to ten votes
per share.
Shares of Class B Common Stock have the right
to convert into shares of Class A Common Stock at any time at the rate of one share of Class A Common Stock for each share of
Class B Common Stock. Class A Common Stock does not have the right to convert into Class B Common Stock.
There is no cumulative voting with respect to the
election of directors, with the result that the holders of more than 50% of the voting power represented by shares of Common Stock voted
for the election of directors can elect all of the directors.
Holders of Common Stock will not have any conversion,
preemptive or other subscription rights and there will be no sinking fund or redemption provisions applicable to the Common Stock.
Preferred Stock
The Amended and Restated Charter authorizes the
issuance of 10,000,000 shares of Preferred Stock with such designations, rights and preferences as may be determined from time to time
by the Board. The Board is empowered, without stockholder approval, to issue the preferred stock with dividend, liquidation, conversion,
voting or other rights which could adversely affect the voting power or other rights of the holders of Common Stock; provided that any
issuance of Preferred Stock with more than one vote per share will require the prior approval of the holders of a majority of the outstanding
shares of Class B Common Stock. In addition, the Preferred Stock could be utilized as a method of discouraging, delaying or preventing
a change in control of FF.
176
Description of Warrants
Public Warrants and Private Warrants
As of October 8, 2024, FF has Public Warrants outstanding
to purchase an aggregate of 2,453 shares of Class A Common Stock and 12 Private Warrants outstanding to purchase an aggregate of 2,465
shares of Class A Common Stock. References in this "
Public Warrants and Private Warrants
" subsection to "Warrant"
or "Warrants" refer only to the Public Warrants and Private Warrants. Each outstanding whole Warrant represents the right
to purchase one share of Class A Common Stock at a price of $110,400 per share, subject to adjustment as discussed below, at any
time commencing on the later of 30 days after the consummation of a business combination and 12 months from the closing of the initial
public offering.
No Warrants will be exercisable for cash unless
there is an effective and current registration statement covering the shares of Class A Common Stock issuable upon exercise of the Warrants
and a current prospectus relating to such shares of Class A Common Stock. Notwithstanding the foregoing, if a registration statement covering
the shares of Class A Common Stock issuable upon exercise of the Public Warrants is not effective within a specified period following
the consummation of the Business Combination, Warrant holders may, until such time as there is an effective registration statement and
during any period when FF shall have failed to maintain an effective registration statement, exercise Warrants on a cashless basis pursuant
to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such exemption is available. If that exemption,
or another exemption, is not available, holders will not be able to exercise their Warrants on a cashless basis. In the event of such
cashless exercise, each holder would pay the exercise price by surrendering the Warrants for that number of shares of Class A Common Stock
equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Common Stock underlying the Warrants,
multiplied by the difference between the exercise price of the Warrants and the "fair market value" (defined below) by (y) the
fair market value. The "fair market value" for this purpose will mean the average reported last sale price of the shares of
Class A Common Stock for the 5 trading days ending on the trading day prior to the date of exercise. The Warrants will expire on the fifth
anniversary of completion of the Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.
The Private Warrants, as well as any Warrants underlying
additional units issued to the PSAC Sponsor or PSAC's officers, directors or their affiliates in payment of working capital loans,
are identical to the Warrants underlying the units offered in the initial public offering except that such Warrants will be exercisable
for cash or on a cashless basis, at the holder's option, and will not be redeemable by FF, in each case so long as they are still
held by the PSAC Sponsor or its permitted transferees.
FF may call the Warrants for redemption (excluding
the Private Warrants and any Warrants underlying additional units issued to the PSAC Sponsor, PSAC's officers, directors or their
affiliates in payment of working capital loans made to PSAC), in whole and not in part, at a price of $0.01 per Warrant,
●
at any time while the Warrants are exercisable;
●
upon not less than 30 days' prior written notice of redemption to each Warrant holder;
●
if, and only if, the reported last sale price of the shares of Class A Common Stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 trading day period commencing at any time after the Warrants become exercisable and ending on the third business day prior to the notice of redemption to Warrant holders; and
●
if, and only if, there is a current registration statement in effect with respect to the shares underlying such Warrants.
The right to exercise will be forfeited unless
the Warrants are exercised prior to the date specified in the notice of redemption. On and after the redemption date, a record holder
of a Warrant will have no further rights except to receive the redemption price for such holder's Warrant upon surrender of such
Warrant.
177
If FF calls the Warrants for redemption as described
above, its management will have the option to require all holders that wish to exercise Warrants to do so on a "cashless basis."
In such event, each holder would pay the exercise price by surrendering the Warrants for that number of shares of Class A Common Stock
equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Common Stock underlying the Warrants,
multiplied by the difference between the exercise price of the Warrants and the "fair market value" (defined below) by (y) the
fair market value. The "fair market value" shall mean the average reported last sale price of the shares of Class A Common
Stock for the five trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders
of Warrants.
The exercise price and number of shares of Class
A Common Stock issuable on exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend,
extraordinary dividend or FF's recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted
for issuances of shares of Class A Common Stock at a price below their respective exercise prices.
The Warrants may be exercised upon surrender of
the Warrant certificate on or prior to the expiration date at the offices of the Warrant agent, with the exercise form on the reverse
side of the Warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price, by certified or
official bank check payable to us, for the number of Warrants being exercised. The Warrant holders do not have the rights or privileges
of holders of shares of Class A Common Stock and any voting rights until they exercise their Warrants and receive shares of Class A Common
Stock. After the issuance of shares of Class A Common Stock upon exercise of the Warrants, each holder will be entitled to one vote for
each share held of record on all matters to be voted on by stockholders.
Warrant holders may elect to be subject to a restriction
on the exercise of their Warrants such that an electing Warrant holder would not be able to exercise their Warrants to the extent that,
after giving effect to such exercise, such holder would beneficially own in excess of 9.8% of the shares of Class A Common Stock outstanding.
No fractional shares will be issued upon exercise
of the Warrants. If, upon exercise of the Warrants, a holder would be entitled to receive a fractional interest in a share, FF will, upon
exercise, round up to the nearest whole number of shares of Class A Common Stock to be issued to the Warrant holder.
Ares NPA Warrants
On August 5, 2021, the Company entered into certain Note Purchase Agreement ("Note Agreement") with Ares
Capital Corporation and its affiliates ("Ares"). Pursuant to the Note Agreement, the Company issued warrants ("Ares NPA Warrants")
to Ares, totaling 670,092 warrants with an exercise price equals to $10 per share. Pursuant to an anti-dilution provision in the Note
Agreement, Ares shall receive additional warrants as a result of subsequent stock issuance events, such as the pre-existing SPA and the
SPA. As of December 31, 2023, the number of shares underlying the Ares NPA Warrants amounted to 228,482 (post all reverse stock splits).
Following a new $30 million offering on September 5, 2024, the total Ares NPA Warrants increased to 1,278,802. The warrant adjustments
are calculated based on a specific formula outlined in the agreement.
178
Pre-existing SPA Warrants and Pre-existing SPA Notes
On August 14, 2022, FFIE entered into a Securities Purchase Agreement
(the "Pre-existing SPA") with FF Simplicity, in its capacity as administrative agent and collateral agent (in such capacity,
the "Agent"), and certain purchasers including FF Simplicity and RAAJJ (collectively with additional purchasers from time
to time party thereto, the "Purchasers"), to issue and sell: $27.0 million aggregate principal amount of FFIE's senior
secured convertible notes (the "Initial Bridge Notes"); $10.0 million in aggregate principal amount of FFIE's senior
secured convertible notes (the "Second Bridge Notes") on the 20th business day following the closing of the Initial Bridge
Notes, subject to certain closing conditions; and $15.0 million in aggregate principal amount of FFIE's senior secured convertible
notes (the "Third Bridge Notes" and with the Initial Bridge Notes and the Second Bridge Notes, the "Bridge Notes")
on or prior to October 11, 2022, subject to certain closing conditions. Under the Pre-existing SPA (as amended by the Pre-existing SPA
Amendment), FFIE is permitted to obtain incremental senior secured convertible notes in an aggregate principal amount of $243.0 million
within 90 days after the closing of the Initial Bridge Notes (the "Pre-existing Incremental Notes" and together with the Bridge
Notes, the "Pre-existing SPA Notes"). Each of the exercise prices and conversion prices disclosed herein refer to the original
exercise prices and conversion prices of the Pre-existing SPA Warrants and Pre-existing SPA Notes, respectively, without taking into account
subsequent reverse stock splits. FFIE is in active discussions with several potential additional Purchasers of the Pre-existing SPA Notes
and other debt and equity investments in FFIE, but there is no assurance that any additional Pre-existing SPA Notes will be issued under
the Pre-existing SPA. Additionally, certain investors under the Pre-existing SPA may not fund their commitments until the Company increases
the number of authorized shares of its Class A Common Stock and registers the securities underlying the Pre-existing SPA Warrants and
Pre-existing SPA Notes in an effective registration statement. The Pre-existing SPA Notes are subject to an original issue discount of
10%, and were originally convertible into shares of Class A Common Stock at various conversion prices between $0.2275 and $1.05 per share,
plus an interest make-whole amount as set forth in the Pre-existing SPA and the Pre-existing SPA Notes, subject to customary adjustments,
including (1) full ratchet anti-dilution price protection (provided that, pursuant to the Fourth Amendment, the effective conversion price
for any such interest make-whole amount payable in shares of Class A Common Stock must not be lower than $0.21, and any such interest
make-whole amount can only be paid in shares of Class A Common Stock if certain price and volume requirements of Class A Common Stock
are met) (2) exercise price adjustments pursuant to subsequent events, including reverse stock split, and subsequent financings with lower
exercise and conversion prices and (3) customary waivers agreed upon between the holders and the Company. The shares of Class A Common
Stock issuable upon conversion of the Pre-existing SPA Notes are not transferable for six months without the prior written consent of
FFIE (which consent shall not be unreasonably withheld). On August 16, 2022, the Company received the $27.0 million aggregate principal
amount of the Initial Bridge Notes.
The Pre-existing SPA Notes are secured by the grant
of a first priority perfected lien upon substantially all of the personal and real property of FFIE and its subsidiaries, as well as guaranty
by substantially all of FFIE's domestic subsidiaries. The Pre-existing SPA Notes mature on October 27, 2028 or earlier under certain
conditions set forth in the Pre-existing SPA. The Pre-existing SPA Notes accrue interest at 10% per annum, provided that, subject to certain
conditions set forth in the Pre-existing SPA, FFIE may elect to pay such interest in shares of Class A Common Stock if FFIE also pays
the Purchasers an additional cash interest payment equal to 5% per annum. Except in the case of a mandatory prepayment pursuant to the
Pre-existing SPA, if any of the Pre-existing SPA Notes are prepaid, repaid, reduced, refinanced, or replaced in whole or in part prior
to the October 27, 2028 maturity date, then FFIE shall pay to the Purchaser a "Premium Percentage" in an amount ranging from
0% to 10% of the principal amount of such Note(s) determined in accordance with a schedule set forth in the Pre-existing SPA. Pursuant
to the Pre-existing SPA, each Purchaser that then owns at least $25.0 million principal amount of Pre-existing SPA Notes (when aggregated
with any affiliates of such Purchaser) shall have customary preemptive rights to participate in any future financing by FFIE as provided
in the Pre-existing SPA.
As a closing condition under the Pre-existing SPA
for funding of each of the Bridge Notes, FFIE is required to deliver to each of the Purchasers a Pre-existing SPA Warrant registered in
the name of such Purchaser to purchase up to a number of shares of Class A Common Stock equal to 33% of such shares issuable to such Purchaser
upon conversion of the Note, with an exercise price equal to $5.00 per share, subject to customary full ratchet anti-dilution price protection
and other adjustments, and are exercisable for seven years on a cash or cashless basis. FFIE may repurchase the Pre-existing SPA Warrants
for $0.01 per Pre-existing SPA Warrant share if and to the extent the volume weighted average prices of the Class A Common Stock during
20 of out 30 trading days prior to the repurchase is greater than $15.00 per share, subject to certain additional conditions.
179
In addition, under the Pre-existing SPA, the funding
of each of the Bridge Notes is subject to the satisfaction of the following closing conditions: (a) FFIE shall have duly honored all conversions
and redemptions scheduled to occur or occurring by virtue of one or more Notices of Conversion of the Purchaser pursuant to the Pre-existing
SPA Notes, if any, (b) FFIE shall have paid all liquidated damages and other amounts owing to a Purchaser in respect of the transaction
documents pursuant to the Pre-existing SPA, (c) FFIE shall have satisfied the current public information requirements under Rule 144 under
the Securities Act of 1933 on the applicable closing date, or on the applicable closing date there is an effective registration statement
pursuant to which the holder is permitted to utilize the prospectus thereunder to resell all of the shares of Class A Common Stock issuable
pursuant to the Pre-existing SPA, (d) FFIE's shares of Common Stock are trading on a trading market and all of the shares issuable
pursuant to the transaction documents under the Pre-existing SPA are listed or quoted for trading on such trading market, and FFIE believes
such trading will continue uninterrupted for the foreseeable future, (e) there is a sufficient number of authorized but unissued and otherwise
unreserved shares of Common Stock for the issuance of all of the shares then issuable pursuant to the transaction documents under the
Pre-existing SPA, (f) there is no existing event of default as defined in the Pre-existing SPA and no existing event which, with the passage
of time or the giving of notice, would constitute such an event of default, and (g) the applicable Purchaser is not in possession of any
information provided by FFIE, or any of its subsidiaries, or any of their officers, directors, employees, agents or affiliates, that constitutes,
or may constitute, material non-public information. Each Purchaser has the option, from time to time for 12 months after the effective
date of the abovementioned registration statement, to purchase additional senior secured convertible notes and Pre-existing SPA Warrants
of FFIE on the same terms as the Incremental Notes in an aggregate amount not to exceed the initial principal amount of the Bridge Notes
and Incremental Notes issued to such Purchaser (the "Tranche B Notes"), subject to certain conditions.
Pursuant to the Pre-existing SPA, FFIE has agreed
to use commercially reasonable efforts to hold a special meeting of stockholders to obtain stockholder approval, as is required by the
Nasdaq listing rules, with respect to the issuance of any shares of Class A Common Stock in excess of 19.99% of the issued and outstanding
shares of the Class A Common Stock upon conversion of the Pre-existing SPA Notes and exercise of the Pre-existing SPA Warrants being issued
to the Purchasers pursuant to the Pre-existing SPA. At a special meeting of FFIE stockholders held on November 3, 2022, FFIE stockholders
approved such issuance under the Nasdaq listing rules.
On September 23, 2022, the Pre-existing SPA was
amended pursuant to Amendment No. 1 to the Pre-existing SPA and Convertible Senior Secured Promissory Notes (the "Pre-existing SPA
Amendment"), pursuant to which, the Purchasers agreed to accelerate such funding obligations, with $7.5 million aggregate principal
amount of such notes (the "Third Bridge Notes") being funded and issued on September 23, 2022, and the remaining $7.5 million
aggregate principal amount (the "Fourth Bridge Notes") being funded and issued on October 11, 2022. The Purchasers also agreed
under the Pre-existing SPA Amendment to purchase an additional $5.0 million in aggregate principal amount of FFIE's senior secured
convertible notes (the "Fifth Bridge Notes" and together with the Third Bridge Notes and Fourth Bridge Notes, the "Additional
Bridge Notes") upon the filing by FFIE of an amendment to FFIE's registration statement on Form S-1 (File No. 333-258993),
subject to certain closing conditions; however, the commitment to purchase the Fifth Bridge Notes automatically terminated upon the funding
of the initial $10.0 million tranche of Pre-existing SPA Notes to Senyun, which occurred on October 27, 2022. The Additional Bridge Notes
were originally convertible into shares of Class A Common Stock at a conversion price equal to $1.05, mature on October 27, 2028 (or earlier
under certain conditions set forth in the Pre-existing SPA) and are otherwise subject to the same terms and conditions disclosed by FFIE
in the Pre-existing SPA as applicable to the Notes and Bridge Notes described therein.
180
As a closing condition under the Pre-existing SPA
Amendment for funding of each of the Additional Bridge Notes, FFIE is required to deliver to each of the Purchasers a Pre-existing SPA
Warrant registered in the name of such Purchaser to purchase up to a number of shares of Class A Common Stock equal to 33% of such shares
(except for the Fifth Bridge Notes, which shall equal 100% of such shares) issuable to such Purchaser upon conversion of the Note, with
an exercise price equal to $5.00 per share, subject to full ratchet anti-dilution price protection and other adjustments, and are exercisable
for seven years on a cash or cashless basis. FFIE may repurchase the Pre-existing SPA Warrants for $0.01 per warrant share if and to the
extent the volume weighted average prices of FFIE's Class A Common Stock during 20 of out 30 trading days prior to the repurchase
is greater than $15.00 per share, subject to certain additional conditions. On September 23, 2022, FFIE issued a Pre-existing SPA Warrant
to the Purchaser exercisable for 920,074 shares of Class A Common Stock, concurrent with the funding of the $7.5 million Third Bridge
Notes commitment, and on October 11, 2022, FFIE issued a Pre-existing SPA Warrant to the Purchaser exercisable for 2,357,142 shares of
Class A Common Stock, concurrent with the funding of the $7.5 million Fourth Bridge Notes commitment. Additionally, the Pre-existing SPA
Amendment has removed the 6-month lock-up period that otherwise applies to the Existing FSV Convertible Note, reduced the conversion price
of the Existing FSV Convertible Note to $1.05, reduced the lock-up period that otherwise applies to the Existing Second Bridge Note from
6 months to 3 months and similarly reduced the lock-up period that otherwise applies to each Third Bridge Note, Fourth Bridge Note, Fifth
Bridge Note, and other Incremental Note from 6 months to 3 months. The Pre-existing SPA Amendment also provides that the Existing Notes
will be secured by the grant of a second lien upon substantially all of the personal and real property of FFIE and its subsidiaries, as
well as guaranty by substantially all of FFIE's domestic subsidiaries.
As additional consideration for the Agent's
entering into the Pre-existing SPA Amendment, FFIE has also issued to the Agent a warrant to purchase 10 shares of Class A Common Stock
(the "Adjustment Warrant"). The terms of the Adjustment Warrants are the same as the Pre-existing SPA Warrants described above,
except that the Adjustment Warrant (i) has an exercise price equal to $0.50 per share and (ii) does not have the optional repurchase provision
described above if stock trades above $15.00 per share. The full ratchet anti-dilution price provision in the Pre-existing SPA Warrants
held as of the date of the Pre-existing SPA Amendment by the ATW Investors was waived in connection with the Adjustment Warrant.
On September 25, 2022, FFIE entered into a Joinder
and Amendment Agreement to the Pre-existing SPA (the "Joinder") with Senyun, the agent, as administrative agent, collateral
agent, and Purchaser, FF Simplicity and RAAJJ, pursuant to which the Senyun agreed to purchase incremental notes under the Pre-existing
SPA in an aggregate principal amount of up to $60.0 million in certain installments. Pursuant to the Joinder, Senyun has all of the same
rights and obligations as a Purchaser under the Pre-existing SPA and all documents, instruments and agreements contemplated therein or
thereby (collectively, and together with the Joinder, the "Financing Documents"). In addition to Senyun's commitment
as set forth in the Joinder, the Joinder effectuated certain other amendments to the Pre-existing SPA, including, among other things,
permitting the Pre-existing SPA Notes to be funded in accordance with the Joinder.
On October 24, 2022, FFIE entered into a Limited
Consent and Third Amendment to the Pre-existing SPA (the "Third Amendment") with FF Simplicity as administrative and collateral
agent and purchaser, Senyun as purchaser, and RAAJJ as purchaser, pursuant to which the maturity date for the Pre-existing SPA Notes was
extended from August 14, 2026 to October 27, 2028 (
i.e.
, the sixth anniversary of the first funding date of Senyun's purchase
of Pre-existing SPA Notes (the "First Senyun Funding Date")) or such earlier date that the Pre-existing SPA Notes become due
and payable pursuant to the Pre-existing SPA (the "Maturity Date Extension"). As a result of the Maturity Date Extension,
the total number of shares of Class A Common Stock issuable under the Pre-existing SPA is increased as compared to such number of shares
issuable under the Pre-existing SPA prior to the Third Amendment. The Maturity Date Extension increases the interest make-whole amount
as set forth in the Pre-existing SPA and the Pre-existing SPA Notes payable upon conversion of the Pre-existing SPA Notes, as such interest
make-whole amount includes all interest that would otherwise accrue on the Pre-existing SPA Notes if such Pre-existing SPA Notes were
held until the October 27, 2028 maturity date.
181
As revised under the Third Amendment, Senyun has
agreed to acquire Notes from FFIE according to the following schedule: (a) $10.0 million in principal amount of Notes on the First Senyun
Funding Date; (b) $10.0 million in principal amount of Notes on a date that is no later than the later of (x) 14 business days after the
First Senyun Funding Date and (y) the receipt of approval of FFIE's stockholders under the applicable rules and regulations of Nasdaq
of the issuance of all of the shares of Class A Common Stock underlying the various convertible notes and warrants of the Company issued
and issuable pursuant to the Financing Documents in excess of 19.99% of the issued and outstanding shares of FFIE Class A Common Stock
(the "Stockholder Approval"), which Stockholder Approval was obtained on November 3, 2022, and which was funded on November
15, 2022; (c) $10.0 million in principal amount of Notes on a date that is no later than 15 business days after the later of (x) the effective
date of FFIE's registration statement on Form S-1 (File No. 333-258993), which registration statement was declared effective by
the SEC on February 8, 2023, and (y) receipt of the Stockholder Approval, and which was funded on different dates in December 2022; (d)
$10.0 million in principal amount of Notes within 30 business days after the later of (x) the effective date of the above noted Form S-1
and (y) receipt of the Stockholder Approval; and (e) $20.0 million in principal amount of Notes on a date that is no later than 10 business
days after the latest of (x) official delivery of the Company's FF 91 vehicle to the first batch of bona fide customers is made,
(y) the effective date of the above noted Form S-1 and (z) receipt of the Stockholder Approval.
In addition, pursuant to the Third Amendment, each
Purchaser and the Agent waived certain defaults and events of default under the Financing Documents arising from (i) any amounts owed
as of the First Senyun Funding Date by FFIE or its subsidiaries to their respective trade counterparties, suppliers, vendors or, in each
case, other similar counterparties, that remain unpaid after the First Senyun Funding Date, (ii) any reduction in the workforce of FFIE
or its subsidiaries or any additional reduction in such workforce that occurs after September 23, 2022, and/or (iii) any reasonably foreseeable
consequence in respect of any of the foregoing clauses (i) or (ii).
On November 8, 2022, FFIE entered into a Limited
Consent and Amendment to the Pre-existing SPA (the "Fourth Amendment") with FF Simplicity as administrative and collateral
agent and purchaser, Senyun as purchaser, and RAAJJ as purchaser, pursuant to which the parties agreed that (i) in no event will the effective
conversion price of any interest or interest make-whole amount payable in shares of Class A Common Stock in respect of Pre-existing SPA
Notes issued or issuable under the Pre-existing SPA be lower than $0.21 per share of Class A Common Stock, and (ii) in order for the Company
to make payment of any interest or interest make-whole amount in shares of Class A Common Stock, certain price and volume requirements
must be met, namely that (x) the VWAP of the Class A Common Stock is not less than $0.21 per share on any trading day during the preceding
seven trading day period, and (y) the total volume of the Class A Common Stock does not drop below $1.5 million on any trading day during
the same period (in each case, as adjusted for any stock splits, stock dividends, stock combinations, recapitalizations or other similar
transactions). On different dates in December 2022, Senyun funded aggregated amounts of $10.0 million in gross proceeds pursuant to the
Joinder. The Company received $9.0 million from such funding, net of original issue discount and transaction costs.
On December 28, 2022, FFIE entered into a Letter
Agreement and Amendment to the Pre-existing SPA (the "Senyun Amendment") with FF Simplicity as administrative and collateral
agent and Senyun as purchaser, pursuant to which Senyun paid to the Company the first $4.0 million of its fourth funding tranche under
the Pre-existing SPA on January 3, 2023, as well as $2.0 million on January 6, 2023 and $4.0 million on January 18, 2023. In addition
to an amount of $60.0 million already committed by Senyun as part of the Joinder, pursuant to the Senyun Amendment, the Company has agreed
to issue and sell to Senyun, subject to the satisfaction of certain conditions (which include agreement by FFIE and Senyun on the terms
and conditions of the investment), incremental Pre-existing SPA Notes in an aggregate principal amount of $30.0 million: (i) $10.0 million
in principal amount of additional Pre-existing SPA Notes no later than January 31, 2023; (ii) $10.0 million in principal amount of additional
Pre-existing SPA Notes no later than February 28, 2023; and (iii) $10.0 million in principal amount of additional Pre-existing SPA Notes
no later than March 15, 2023. Pursuant to the Senyun Amendment, the Company has also approved the issuance to Senyun of such number of
shares of Class A Common Stock equal to the difference between (x) the actual number of shares of Class A Common Stock previously issued
to Senyun upon conversion of $19.0 million in principal amount of Pre-existing SPA Notes and (y) the number of such shares of Class A
Common Stock that would have been issued to Senyun had the conversion price applicable to such Pre-existing SPA Notes been $0.8925, taking
into account any beneficial ownership limitation applicable to Senyun.
182
On January 25, 2023, FFIE entered into a Limited
Consent and Amendment No. 5 to the Pre-existing SPA (the "Fifth Amendment") with FF Simplicity as administrative and collateral
agent and Senyun as purchaser, pursuant to which Senyun agreed to purchase $10.0 million in principal amount of additional Pre-existing
SPA Notes no later than January 27, 2023, which $10.0 million amount was funded on January 26, 2023. Pursuant to the Fifth Amendment,
FFIE also agreed (a) to use commercially reasonable efforts to file an amendment to the registration statement on Form S-1 (File No. 333-268972)
no later than January 29, 2023 and to seek effectiveness of this registration statement on or prior to February 10, 2023, which registration
statement was declared effective by the SEC on February 8, 2023; (b) to use commercially reasonable efforts to file an additional registration
statement on Form S-1 registering the re-sale by Senyun of all remaining shares of Class A Common Stock underlying Senyun's SPA
Notes and SPA Warrants no later than February 10, 2023, which registration statement on Form S-1 (File No. 333-269729) was filed with
the SEC on February 13, 2023, and to seek effectiveness of such additional registration statement as promptly as practicable thereafter
(which registration statement was declared effective by the SEC on March 22, 2023); (c) to honor the conversion notice submitted by Senyun
on January 18, 2023, and to reserve sufficient shares of Class A Common Stock to satisfy the conversion and exercise of all of Senyun's
SPA Notes and SPA Warrants to the extent FFIE has sufficient authorized but unissued or uncommitted shares of Class A Common Stock. Additionally,
pursuant to the Fifth Amendment, FFIE and Senyun agreed to use commercially reasonable efforts to enter into definitive documentation
as promptly as practicable after the date of the Fifth Amendment, in connection with restructuring of the Pre-existing SPA Notes and Pre-existing
SPA Warrants and an additional investment as set forth on the term sheets attached to the Fifth Amendment, which definitive documentation
was executed in connection with the Sixth Amendment.
On February 3, 2023, FFIE entered into an Amendment
No. 6 to Securities Purchase Agreement (The "Sixth Amendment") with FF Simplicity as administrative and collateral agent and
Senyun, FF Top, FF Simplicity, FF Prosperity, Acuitas and other purchasers, pursuant to which the purchasers thereunder agreed to purchase
up to $135.0 million (including $10.0 million previously funded by Senyun as an advanced payment) in aggregate principal amount of FFIE's
senior secured convertible notes (such additional Pre-existing SPA Notes, the "Tranche C Notes") in accordance with the schedule
set forth in the Pre-existing SPA as follows, subject to certain conditions: (i) for Senyun, (A) no later than three business days after
the effective date of the Sixth Amendment, the purchase and issuance of $25.0 million in principal amount of Tranche C Notes (which principal
amount shall be reduced on a dollar-for-dollar basis by the $10.0 million previously funded by Senyun as an advanced payment) shall take
place, pursuant to which, on February 9, 2023 and February 10, 2023, FFIE received aggregate gross proceeds of $15.0 million; (B) no later
than ten business days after the effective date of the Sixth Amendment, the purchase and issuance of $25.0 million in principal amount
of Tranche C Notes shall take place, pursuant to which, on February 23, 2023, March 3, 2023, March 9, 2023 and March 10, 2023, the Company
received aggregate gross proceeds of $25.0 million; and (C) no later than five business days after receipt of (a) approval by FFIE stockholders
of an increase in number of authorized shares of Class A Common Stock to 1,690,000,000 (which approval was obtained during the special
meeting of stockholders held on February 28, 2023) and filing of an amendment to the Amended and Restated Charter to reflect such increase
in authorized shares (which amendment was filed with the Secretary of State of the State of Delaware on March 1, 2023), (b) approval by
FFIE stockholders as may be required by applicable Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which
approval was obtained during the special meeting of stockholders held on March 30, 2023), and (c) effectiveness of a registration statement
on Form S-1 (File No. 333-269729) registering the shares issuable under the Sixth Amendment (which registration statement was declared
effective by the SEC on March 22, 2023), the purchase and issuance of $25.0 million in principal amount of Tranche C Notes shall take
place; and (ii) for each other purchaser, (A) no later than three business days after the effective date of the Sixth Amendment, the purchase
and issuance of an aggregate principal amount of Tranche C Notes equal to 50% of such purchaser's commitment in respect of Tranche
C Notes as indicated on the commitment schedule in the Pre-existing SPA shall take place, pursuant to which, on February 8, 2023, FFIE
received aggregate gross proceeds of $30.0 million; and (B) no later than five business days after receipt of (a) approval by FFIE stockholders
of an increase in number of authorized shares of Class A Common Stock to 1,690,000,000 (which approval was obtained during the special
meeting of stockholders held on February 28, 2023) and filing of an amendment to the Amended and Restated Charter to reflect such increase
in authorized shares (which amendment was filed with the Secretary of State of the State of Delaware on March 1, 2023), (b) approval by
FFIE stockholders as may be required by applicable Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which
approval was obtained during the special meeting of stockholders held on March 30, 2023), and (c) effectiveness of a registration statement
on Form S-1 (File No. 333-269729) registering the shares issuable under the Sixth Amendment (which registration statement was declared
effective by the SEC on March 22, 2023), subject to the purchase and issuance of the remaining aggregate principal amount of the Tranche
C Notes equal to 50% of such purchaser's commitment in respect of Tranche C Notes as indicated on the commitment schedule in the
Pre-existing SPA shall take place.
183
The funding of the Tranche C Notes are subject
to the following conditions precedent: (i) with respect to each Tranche C funding following the initial funding made within three business
days of the effective date of the Sixth Amendment, delivery by FFIE of a notice identifying the business day of the purchase and issuance
of such Tranche C Notes, which date is to be no earlier than two business days and no later than ten business days after the date of such
notice; (ii) delivery by FFIE of a warrant registered in the name of such purchaser to purchase up to a number of shares of Class A Common
Stock equal to 33% of such purchaser's conversion shares on the applicable closing date, with an exercise price equal to $1.05 per
share, subject to full ratchet anti-dilution price protection and other adjustments as set forth therein and a seven year termination
date; (iii) delivery by FFIE to such purchaser of the applicable Tranche C Note; (iv) subject to certain waivers as described in the Pre-existing
SPA, there being no default or event of default; (v) payment by FFIE of all legal fees and other transaction expenses incurred by purchasers
up to $0.15 million (or $0.3 million in the case of Senyun and FF Simplicity) in the aggregate, which fees and expenses can be paid by,
at FFIE's option, net funding of the applicable Tranche C Notes; and (vi) that the representations and warranties contained in the
related financing agreement are true and correct in all material respects as of the applicable closing dates, as set forth therein.
The Tranche C Notes originally had a $1.05 base
conversion price subject to full ratchet anti-dilution price protection and other adjustments as set forth therein, five year interest
make-whole (calculated using the greater of (x) $0.21 per share of Class A Common Stock and (y) 90% of the lowest VWAP for the 5 consecutive
trading days ending on the trading day that is immediately prior to the date on which interest is paid in shares of Class A Common Stock),
10% per annum interest rate (or 15% if paid in Class A Common Stock subject to certain conditions). The Tranche C Notes and the Tranche
D Notes (as defined below) and Pre-existing SPA Warrants are subject to a pro rata cap on conversion or exercise (as applicable) equal
to 19.99% of FFIE's Class A Common Stock and Class B Common Stock as of the date of the Sixth Amendment until receipt of approval
by FFIE stockholders as may be required by applicable Nasdaq rules with respect to such conversion or exercise (which approval was obtained
during the special meeting of stockholders held on March 30, 2023), including the issuance of any shares of Class A Common Stock or Class
B Common Stock in excess of 19.99% of FFIE's Class A Common Stock and Class B Common Stock as of the date of the Sixth Amendment.
All of the Notes and Warrants (and the Exchange Notes described below) are subject to restrictions on conversion or exercise (other than
an Initial Reserve of 63,051,933 shares of Class A Common Stock for FF Simplicity and 18,857,143 shares of Class A Common Stock for Senyun)
until the approval by FFIE stockholders of an increase in number of authorized shares of Class A Common Stock to 1,690,000,000 (which
approval was obtained during the special meeting of stockholders held on February 28, 2023), and the right for purchasers to receive additional
warrant shares upon a down round financing has also been removed from all Pre-existing SPA Warrants. FFIE is required to use reasonable
best efforts to file a registration statement with respect to the resale of the shares of Class A Common Stock underlying the Pre-existing
SPA Notes and Pre-existing SPA Warrants on or prior to February 10, 2023, which registration statement on Form S-1 (File No. 333-269729)
was filed with the SEC on February 13, 2023, and to seek effectiveness of such registration statement within 90 days (which registration
statement was declared effective by the SEC on March 22, 2023), and FFIE is required to seek effectiveness of the registration statement
on Form S-1 (File No. 333-268972) on or prior to February 10, 2023 (which registration statement was declared effective by the SEC on
February 8, 2023). FFIE is also required to use reasonable best efforts to obtain approval by FFIE stockholders of an increase in number
of authorized shares of Class A Common Stock to 1,690,000,000 (which approval was obtained during the special meeting of stockholders
held on February 28, 2023) within 45 days (or 60 days if necessary) and approval by FFIE stockholders as may be required by applicable
Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which approval was obtained during the special meeting
of stockholders held on March 30, 2023), including the issuance of any shares of Class A Common Stock or Class B Common Stock in excess
of 19.99% of FFIE's Class A Common Stock and Class B Common Stock as of the date of the Sixth Amendment within 60 days.
Each purchaser also has the option to purchase
a certain amount of additional Pre-existing SPA Notes and Pre-existing SPA Warrants from time to time for twelve months from the effective
date of the Sixth Amendment, as set forth in the Pre-existing SPA (such additional Pre-existing SPA Notes, the "Tranche D Notes").
Additionally, pursuant to the Sixth Amendment, (A) FF Simplicity and Senyun agreed that, with respect to their allotments of previous
commitments to purchase SPA Notes, no more than the following percentages of their allotment may be purchased on or before the following
dates without the prior written consent of FFIE: (i) 100% on or before February 10, 2023; (ii) 90% on or before February 28, 2023; (iii)
80% on or before March 24, 2023; (iv) 70% on or before April 21, 2023; and (v) 60% after April 21, 2023 through and including the twenty-fourth
month from the effective date of the Sixth Amendment, and (B) certain Pre-existing SPA Notes issued to FF Simplicity with an aggregate
outstanding principal amount of $21.6 million and certain Pre-existing SPA Notes issued to Senyun with an aggregate principal amount of
$9.4 million were replaced by new replacement notes with a $0.8925 base conversion price subject to full ratchet anti-dilution price protection
and other adjustments as set forth therein, six-year interest make-whole, and otherwise on similar terms as the previously issued Pre-existing
SPA Notes.
184
Pursuant to the Sixth Amendment and the Exchange
Agreements entered into concurrently therewith between FFIE, one the one hand, and holders of ATW NPA Warrants and Pre-existing SPA Warrants,
on the other hand (collectively, the "Exchange Agreements"), (i) the provision under the ATW NPA Warrants and Pre-existing
SPA Warrants then-issued that allowed investors to receive the right to purchase additional shares in connection with down round financings
was removed, (ii) the ATW NPA Warrants and FF Simplicity's Pre-existing SPA Warrants then issued, exercisable for an aggregate of
198,129,990 shares of Class A Common Stock, were exchanged for a combination of new warrants, exercisable at $0.2275 per share subject
to full ratchet anti-dilution price protection and other adjustments, for an aggregate of 42,489,346 shares of Class A Common Stock and
new senior secured convertible notes with aggregate principal amount of $25.0 million, and (ii) Senyun's Pre-existing SPA Warrants
then issued, exercisable for an aggregate amount of 276,270,842 shares of Class A Common Stock, were exchanged for a combination of new
warrants, each exercisable at $0.2275 per share subject to full ratchet anti-dilution price protection and other adjustments, for an aggregate
of 48,000,000 shares of Class A Common Stock and new senior secured convertible notes with aggregate principal amount of $16.0 million
(collectively with the notes issued pursuant to clause (ii), the "Exchange Notes"). The Exchange Notes are convertible at
a conversion rate calculated at the lesser of (a) 90% of the VWAP for the trading day that is immediately prior to the date on which interest
is paid in shares of Class A Common Stock or (b) the greater of (x) $0.21 per share of Class A Common Stock and (y) 90% of the average
VWAP for the 5 consecutive trading days ending on the trading day that is immediately prior to the date on which interest is paid in shares
of Class A Common Stock. The Exchange Notes will constitute Pre-existing SPA Notes, except: (i) the holders thereof do not have the option
under the Pre-existing SPA to purchase certain additional Pre-existing SPA Notes within 24 months from the effective date of the Sixth
Amendment; (ii) such notes are not subject to any prepayment premium or penalty applicable to other Pre-existing SPA Notes; (iii) such
notes are not subject to an original discount of 10%; and (iv) such notes are not entitled to the most favorable terms granted to other
Pre-existing SPA Notes purchased simultaneously or after the purchase of such notes. Such notes are prepayable and redeemable at par at
any time by FFIE upon fifteen days' prior written notice.
On March 23, 2023, FFIE entered into an Amendment
No. 7 to Securities Purchase Agreement ("Seventh Amendment") with FF Simplicity, as administrative agent, collateral agent
and purchaser, Senyun, as purchaser, and FF Prosperity, a Delaware limited liability company, as purchaser, pursuant to which FFIE, Senyun,
FF Prosperity and FF Simplicity agreed to amend the funding timeline of certain Tranche C Notes, and FF Simplicity agreed to purchase
additional notes under the Pre-existing SPA. Under the amended funding timeline, (i) Senyun agreed to purchase (a) $10.0 million in principal
amount of Tranche C Notes (amended to include an additional original issue discount of four percent (4%), which additional original issue
discount shall not impact the interest make-whole amount, as set forth in the Pre-existing SPA, in such Tranche C Notes) no later than
one business day (amended from five business days) after the effectiveness of FFIE's registration statement on Form S-1 (File No.
333-269729) (which registration statement was declared effective by the SEC on March 22, 2023) and receipt of approval by FFIE stockholders
as may be required by applicable Nasdaq rules with respect to transactions contemplated under the Sixth Amendment (which approval was
obtained during the special meeting of stockholders held on March 30, 2023), subject to the filing by FFIE of a current report on Form
8-K disclosing such stockholder approval, and (b) $15.0 million in principal amount of Tranche C Notes no later than five business days
after the effectiveness of FFIE's registration statement on Form S-1 (File No. 333-269729) (which registration statement was declared
effective by the SEC on March 22, 2023) and receipt of approval by FFIE stockholders as may be required by applicable Nasdaq rules with
respect to transactions contemplated under the Sixth Amendment (which approval was obtained during the special meeting of stockholders
held on March 30, 2023), and (ii) FF Prosperity agreed to purchase the remaining aggregate principal amount of the Tranche C Notes equal
to 50% of FF Prosperity's commitment in respect of Tranche C Notes (amended to include an additional original issue discount of
four percent (4%), which additional original issue discount shall not impact the interest make-whole amount, as set forth in the Pre-existing
SPA, in such Tranche C Notes) no later than one business day (amended from five business days) after the effectiveness of FFIE's
registration statement on Form S-1 (File No. 333-269729) (which registration statement was declared effective by the SEC on March 22,
2023) and receipt of approval by FFIE stockholders as may be required by applicable Nasdaq rules with respect to transactions contemplated
under the Sixth Amendment (which approval was obtained during the special meeting of stockholders held on March 30, 2023), subject to
the filing by FFIE of a current report on Form 8-K disclosing such stockholder approval. FF Simplicity further agreed to purchase, on
or prior to March 27, 2023, $5.0 million in principal amount of Tranche B Notes subject to an additional original issue discount of six
percent (6%) (which additional original issue discount shall not impact the interest make-whole amount, as set forth in the Pre-existing
SPA, in such Tranche B Notes). Such notes were originally permitted to be purchased on or prior to April 21, 2023. FFIE also agreed to
reimburse each of Senyun and FF Simplicity up to $0.02 million each for reasonable and documented out-of-pocket legal expenses incurred
in connection with the Seventh Amendment.
185
On May 8, 2023, FFIE entered into an Amendment
No. 8 to Securities Purchase Agreement with Senyun as purchaser, and, on May 9, 2023, FFIE entered into an Amendment to ATW Notes and
Warrants with FF Simplicity and FF Prosperity as purchasers (together, the "Eighth Amendment"). Pursuant to the Eighth Amendment,
the parties agreed to the following amendments to all outstanding and issuable Pre-existing SPA Notes of Senyun, FF Simplicity and FF
Prosperity: (i) the floor price for conversion of the Pre-existing SPA Notes was amended from $0.21 to $0.10 (or, for FF Simplicity and
FF Prosperity, if lower, the floor price of notes issued under the Unsecured SPA); (ii) each such Pre-existing SPA Note was amended such
that interest on the Pre-existing SPA Note, originally required to be paid on the aggregate unconverted and then outstanding principal
amount of each Pre-existing SPA Note quarterly on January 1, April 1, July 1 or October 1, was amended to be payable upon conversion of
principal of the Pre-existing SPA Note; (iii) the conversion price for the Pre-existing SPA Notes was amended from $1.05 to $0.8925, subject
to adjustment as set forth in such Pre-existing SPA Notes; and (iv) the exercise price for the Pre-existing SPA Warrants was amended from
$1.05 to $0.8925, subject to adjustment as set forth in such Pre-existing SPA Warrants.
Palantir Settlement
In
July 2021, the Company and Palantir entered into a MSA that sets froth the terms of the Palantir's platform hosting arrangement,
which was expected to be used as a central operating system for data and analytics. On April 26, 2023, the Company received a letter from
Palantir providing a notice of dispute regarding the Company's alleged material breach of the MSA. The letter asserted that the
Company had not paid invoices totaling $12.3 million of past due fees. On July 7, 2023, Palantir filed a Demand for Arbitration against
the Company with Judicial Arbitration and Mediations Services, Inc., regarding a dispute between Palantir and the Company over the MSA.
Palantir alleged that the Company had refused to make payments under the MSA. Palantir asserted claims for: (i) breach of contract; (ii)
breach of the covenant of good faith and fair dealing; and (iii) unjust enrichment. Palantir alleged that the amount in controversy was
$41.5 million. On August 4, 2023, the Company submitted its response to Palantir's arbitration demand. The Company's response
included both affirmative defenses and a general denial of all allegations in Palantir's arbitration demand. On March 11, 2024,
the Company and Palantir executed a Settlement and Release Agreement in order to terminate the MSA and resolve the disputes. The Company
agreed to pay Palantir $5.0 million, with a liquidated damages clause of $0.3 million for late payments. This settlement includes mutual
waivers and releases of claims to avoid future disputes. On August 9, 2024, the Company and Palantir entered into an amendment to the
Settlement and Release Agreement pursuant to which, in lieu of paying the remaining $4.75 million in cash, the Company agreed to issue
Palantir $2.375 million of Class A Common Stock by August 9, 2024, and $2.375 million in Class A Common Stock by October 1, 2024. The
August 9, 2024 and October 1, 2024 issuances totaled, in the aggregate, approximately 1.08 million shares of Common Stock.
Wavier Agreement
On
August 2, 2024, the Company entered into that certain Waiver Agreement (the "Waiver Agreement") with certain investors (each,
a "Holder" and, collectively, the "Holders"), who (a) beneficially own and hold one or more of the following securities
of the Company: (i) certain secured convertible notes of the Company (including any secured convertible notes issued in exchange therefor,
collectively, the "Pre-Existing SPA Notes") that were issued pursuant to that certain
Pre-existing SPA
,
and (ii) certain unsecured convertible notes of the Company (including any unsecured convertible notes issued in exchange therefore, collectively,
the "Original Unsecured Notes", and together with the Pre-Existing SPA Notes, the "Original Notes") that were
issued pursuant to that certain Pre-Existing SPA, dated as of May 8, 2023 (as amended, supplemented or otherwise modified from time to
time, the "Original Unsecured SPA") and (b) have the right to acquire one or more of: (i) certain additional secured convertible
notes issuable in accordance with the terms to the
Pre-existing SPA
(the "Additional Secured
Notes") and (ii) certain additional unsecured convertible notes (the "Additional Unsecured Notes", and together with
the Additional Secured Notes, the "Additional Notes", and together with the Original Notes, the "Original SPA Notes"),
issuable pursuant to the Original Unsecured SPA.
186
Prior
to the Waiver Agreement, the Company had certain obligations under the Original SPA Notes to pay accrued and unpaid interest and a
make-whole amount of additional interest (the "Make-Whole Amount") in cash in connection with conversions of such
Original SPA Notes. In an effort to reduce the Company's ongoing cash obligations pursuant to such Original SPA Notes and to
encourage the continued conversion of the Original SPA Notes into shares of
Class A
Common
Stock, the Company has agreed to make certain voluntary adjustments to the Original SPA Notes as described below. Pursuant to the
Waiver Agreement, the Company irrevocably agreed that with respect to each conversion of any Original SPA Note on or after the
effective date of the Waiver Agreement, if the Holder delivers a conversion notice (the "Notice of Conversion") to the
Company at a time that 90% of the VWAP (as defined in the Original SPA Notes) of the Company's
Class A
Common
Stock as of the trading day ended immediately prior to the time at which such Notice of Conversion is delivered to the Company
(each, an "Adjustment Price") is less than the conversion price then in effect pursuant to the applicable Original SPA
Note, the Company shall voluntary reduce the conversion price solely with respect to such portion of such Original SPA Note to be
converted in accordance with such notice of conversion (and not with respect to any other portion of such Original SPA Note) to such
adjustment price (the "Voluntary Adjustment"). The Company also agreed, in exchange for the Holder's waiver of any
accrued and unpaid interest (if any, as of such conversion date) (an "Interim Interest Waiver") with respect to such
aggregate principal of such Original SPA Note to be converted pursuant to such applicable notice of conversion (the "Full
Voluntary Adjustment"), to (i) further reduce such adjustment price in respect of a Voluntary Adjustment (as adjusted, each a
"Full Adjustment Price"); and (ii) issue a number of shares of the Company's
Class A
Common
Stock to the Holder such that the aggregate number of shares of Class A Common Stock to be issued to the Holder in such conversion
at such Full Adjustment Price equals the quotient of (x) the sum of (i) such aggregate principal of such Original SPA Notes to be
converted pursuant to such applicable notice of conversion and (ii) any accrued and unpaid interest thereon, divided by (y) such
adjustment price prior to any Interim Interest Waiver. Such Full Voluntary Adjustment shall be applicable until the fifth (5th)
business day after the Company delivers written notice to the Holder electing to revoke such election.
Pursuant
to the Waiver Agreement, the Holders irrevocably agreed that instead of receiving the accrued and unpaid interest, each holder of any
such applicable Original SPA Note shall receive upon conversion of such Original SPA Note an amount in cash equal to all accrued and unpaid
interest on such Original SPA Note to such date of conversion (or such cash amount shall be deemed satisfied in full without any payment
of cash by the Company if the Company effects a Full Voluntary Adjustment with respect to the applicable notice of conversion) with respect
to the applicable notice of conversion.
Further
pursuant to the Waiver Agreement, a Holder's right to purchase any Additional Notes in any agreement with the Company (including,
without limitation, the Pre-existing SPA and/or the Original Unsecured SPA, as applicable) shall be extended until the first (1
st
)
anniversary of the effective date of the Waiver Agreement.
The Company also intends to incorporate
the changes in the Waiver Agreement into certain of its other existing notes and notes issuable in the future pursuant to existing purchase
agreements, as applicable, through one or more waivers, amendments and/or exchange agreements, as applicable.
New SPA, SPA Warrants, and SPA Notes
On September 5, 2024, the Company entered into a Securities Purchase
Agreement (the "Purchase Agreement") with certain institutional investors as purchasers (the "Investors"). Pursuant
to the Purchase Agreement, the Company agreed to sell, and the Investors agreed to purchase, for approximately $30 million, of which approximately
$22.5 million was paid in cash and approximately $7.5 million was converted from a previous loan to the Company, certain secured promissory
notes (the "Secured Notes"), warrants (the "Warrants") and incremental warrants (the "Incremental Warrants",
together with the Secured Notes, the Warrants, the "Financing Documents").
Secured Notes
Maturity Date; Interest.
Pursuant to the Secured Notes, interest shall commence accruing on
the date thereof at the interest rate of 10% per annum (the "Interest Rate") and shall be computed on the basis of a 360-day
year and twelve 30-day months and shall be payable on a Conversion Date with respect to the Conversion Amount being converted on such
Conversion Date, with any remaining accrued and unpaid Interest payable on the fifth anniversary of the issuance date thereof (the "Maturity
Date") (each, an "Interest Date").
Interest shall be payable on each Interest Date, to the noteholders
on the applicable Interest Date, in shares of Class A Common Stock so long as there has been no Equity Conditions Failure; provided however,
that the Company may, at its option following notice to the noteholders, pay Interest on any Interest Date in cash or in a combination
of cash and shares. Prior to the payment of Interest on an Interest Date, interest on this Note shall accrue at the Interest Rate and
be payable by way of inclusion of the Interest in the Conversion Amount on each Conversion Date, or upon any redemption, unless in the
event of an event of default, in which case the interest rate of the Secured Notes shall automatically be increased to 18% per annum ("Interest
Adjustments"). In the event such default has been cured, such Interest Adjustments shall cease to be effective as of the calendar
day immediately following the date of such cure; provided that the interest as calculated and unpaid at such increased rate during the
continuance of that certain default shall continue to apply to the extent relating to the days after the occurrence of such default through
and including the date of such cure of such default.
187
The Maturity Date may be extended by the noteholders under circumstances
specified therein. On the Maturity Date, the Company shall pay to the noteholder an amount in cash representing all outstanding principal,
accrued and unpaid interest on such principal and interest and accrued and unpaid Late Charges. Other than as specifically permitted by
the Secured Note, the Company may not prepay any portion of the outstanding principal and accrued, unpaid interest or accrued and unpaid
Late Charges on principal and interest, if any.
Conversion
Conversion at Option of Holder
Each holder of Secured Notes may convert all, or any part, of the outstanding
principal of the Secured Notes, at any time at such holder's option, into shares of
Class A
Common
Stock, at a conversion price per share of $5.24 (the "Conversion Price"), subject to adjustment under certain circumstances
described in the Secured Notes.
Alternate Conversion
Each holder may alternatively elect to convert the Secured Notes, at
any time at such holder's option, into shares of our
Class A
Common Stock at the "Alternate
Conversion Price" equal to the lesser of:
·
the Conversion Price then in effect; and
·
the greater of:
o
the floor price of $1.048; and
o
the volume weighted average price of our
Class
A
Common Stock during the five Trading Days ending and including the Trading Day immediately preceding the delivery or deemed
delivery of the applicable conversion notice.
Limitations on Conversion
Beneficial Ownership Limitation
. A holder shall not have the
right to convert any portion of a Secured Note to the extent that, after giving effect to such conversion, the holder (together with certain
related parties) would beneficially own in excess of 4.99%, or the "Maximum Percentage", of shares of our Class A Common Stock
outstanding immediately after giving effect to such conversion. The Maximum Percentage may be raised or lowered to any other percentage
not in excess of 9.99%, at the option of the holder, except that any increase will only be effective upon 61 days' prior notice
to us.
Exchange Cap Limitation
. Unless we obtain the approval of our
stockholders in accordance with the rules and regulations of the Nasdaq Capital Market, a maximum of 3,260,603 shares of our
Class
A
Common Stock (19.99% of the outstanding shares of our
Class A
Common Stock on September 5,
2024) shall be issuable upon conversion or otherwise pursuant to the terms of the Secured Notes.
Redemption Rights
Company Optional Redemption
. The Company has the option to redeem
the Secured Notes at a 10% redemption premium to the greater of (i) the shares of our
Class A
Common
Stock then outstanding under the Secured Notes and (ii) the equity value of our
Class A
Common Stock
underlying the Notes. The equity value of our
Class A
Common Stock underlying the Notes is calculated
using the greatest closing sale price of our
Class A
Common Stock during the period commencing on
the date immediately preceding notice of such redemption and ending on the Trading Day immediately prior to the date the Company makes
the entire payment required to be made for such redemption.
Bankruptcy Event of Default Mandatory Redemption
. Upon any bankruptcy
event of default, we shall immediately redeem in cash all amounts due under the Secured Notes at 25% premium unless the holder waives
such right to receive such payment.
188
Casualty Event Redemption
. Upon receipt of certain casualty
proceeds, each holder of Secured Notes may require us to redeem in cash with the net proceeds therefrom, the lesser of (x) a 10% redemption
premium (or 25% if an event of default has then occurred and is continuing) to the shares of our
Class A
Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such casualty event.
Asset Sale Redemption
. Upon the occurrence of certain asset
sales, each holder of Secured Notes may require us to redeem in cash with the net proceeds therefrom, the lesser of (x) a 10% redemption
premium (or 25% if an event of default has then occurred and is continuing) to the shares of our
Class A
Common Stock then outstanding under the Secured Notes and (y) all of the proceeds of such asset sale.
Extraordinary Receipt Redemption
. Upon the receipt of an Extraordinary
Receipt, each holder of Secured Notes may require us to redeem in cash with the net proceeds therefrom, the lesser of (x) a 10% redemption
premium (or 25% if an event of default has then occurred and is continuing) to the shares of our
Class A
Common Stock then outstanding under the Secured Notes and (y) all of the net cash proceeds of such Extraordinary Receipt.
Ranking; Security Interest.
The Secured Notes will be junior secured obligations of the Company
and will be secured by a security interest in substantially all of the assets of the Company, pursuant to a security agreement. In addition,
certain subsidiaries of the Company (each, a "Subsidiary Grantor") in the Purchase Agreement secured the Company's obligations
under the Financing Documents by granting a perfected lien upon substantially all of the personal property of each Subsidiary Grantor,
for the benefit of the Investors. The Company is utilizing the proceeds of this offering for general corporate purposes and working capital.
Registration Rights.
The Company has agreed to file a registration statement providing for
the resale by the Investors of all shares issuable pursuant to the Financing Documents with the Securities and Exchange Commission, or
SEC, within forty-five (45) calendar days of the date of the Purchase Agreement or as soon as practicable thereafter, seek effectiveness
within 90 days following the date of the Purchase Agreement, and keep such registration statement effective at all times until no Investors
owns any Warrants or shares of
Class A
Common Stock issuable upon exercise thereof.
Warrants
.
The Warrants are exercisable immediately on the date thereof with a
term of five (5) years to purchase an aggregate of 5,728,770 shares of
Class A
Common Stock at an
exercise price of $6.29, subject to adjustment under certain circumstances described in the Warrants.
The Incremental Warrants are exercisable immediately on the date thereof
with a term of one (1) year to purchase the Secured Notes at an exercise price of equal to the principal amount of the Secured Notes issued
to such Purchaser, subject to adjustment under certain circumstances described in the Incremental Warrants.
The Company has agreed to issue certain placement agent warrants ("PA
Warrants") to Univest Securities LLC, the sole placement agent of this transaction. The PA Warrants are exercisable immediately
on the date thereof with a term of five (5) years to purchase an aggregate of 202,768 shares of
Class A
Common
Stock at an exercise price of $6.29, subject to adjustment under certain circumstances described in the PA Warrants.
Limitations on Exercise. A holder of the Warrants shall not have the
right to exercise any portion of these warrants to the extent that, after giving effect to such conversion, the holder (together with
certain related parties) would beneficially own in excess of 9.99%.
PA Warrants shall not have the right to exercise any portion of these
warrants to the extent that, after giving effect to such conversion, the holder (together with certain related parties) would beneficially
own in excess of 4.99%, or the "Maximum Percentage", of shares of our
Class A
Common Stock
outstanding immediately after giving effect to such conversion. The Maximum Percentage may be raised or lowered to any other percentage
not in excess of 9.99%, at the option of the holder, except that any increase will only be effective upon 61 days' prior notice
to us.
189
The issuance of the Secured Notes and Warrants is being made in reliance
on the exemption provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), for the offer
and sale of securities not involving a public offering, and Regulation D promulgated under the Securities Act. The Company has agreed
to file a registration statement registering the resale by the Investors of the maximum number of shares issuable upon conversion of the
Secured Notes and exercise of the Warrants.
The Purchase Agreement and certain other transaction documents have
been attached as exhibits to this report to provide security holders with information regarding their terms. They are not intended to
provide any other factual information about the parties to the transaction documents or any of their respective affiliates. The representations,
warranties and covenants contained in the transaction documents were made only for the purposes of such transaction documents and as of
specified dates, were solely for the benefit of the parties to such transaction documents and may be subject to limitations agreed upon
by the contracting parties. The representations and warranties may have been made for the purposes of allocating contractual risk between
the parties to the transaction documents instead of establishing these matters as facts and may be subject to standards of materiality
applicable to the contracting parties that differ from those applicable to security holders. Security holders are not third-party beneficiaries
under the transaction documents. Accordingly, they should not rely on the representations, warranties and covenants contained in the transaction
documents or any descriptions thereof as characterizations of the actual state of facts or condition of any of the parties or any of their
respective affiliates.
Certain Anti-Takeover Provisions of Delaware Law
Under the Amended and Restated Charter, FF has
certain anti-takeover provisions in place as follows:
Special Meeting of Stockholders
The Amended and Restated Bylaws provide that special
meetings of stockholders may be called only by (i) the Chairperson of the Board, (ii) the chief executive officer or (iii) a
majority vote of the Board.
Advance Notice Requirements for Stockholder Proposals and Director
Nominations
The Amended and Restated Bylaws provide that stockholders
seeking to bring business before FF's special meeting of stockholders, or to nominate candidates for election as directors at FF's
special meeting of stockholders, must provide timely notice of their intent in writing subject to certain exceptions for FF Top Board
designees under the Shareholder Agreement. To be timely, a stockholder's notice will need to be received by FF secretary at FF's
principal executive offices no later than the close of business on the 90
th
day nor earlier than the open of business on the
120
th
day prior to the anniversary date of the immediately preceding special meeting of stockholders. Pursuant to Rule 14a-8
of the Exchange Act, proposals seeking inclusion in FF's annual proxy statement must comply with the notice periods contained therein.
The Amended and Restated Bylaws also specify certain requirements as to the form and content of a stockholders' meeting. These provisions
may preclude FF stockholders from bringing matters before the special meeting of stockholders or from making nominations for directors
at FF's special meeting of stockholders.
Authorized but Unissued Shares
FF's authorized but unissued Common Stock
and Preferred Stock will be available for future issuances without stockholder approval and could be utilized for a variety of corporate
purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized
but unissued and unreserved Common Stock and Preferred Stock could render more difficult or discourage an attempt to obtain control of
FF by means of a proxy contest, tender offer, merger or otherwise.
190
Exclusive Forum Selection
The Amended and Restated Charter requires, to the
fullest extent permitted by law, that derivative actions brought in FF's name, actions against directors, officers and employees
for breach of fiduciary duty and other similar actions may be brought only in the Court of Chancery in the State of Delaware and, if brought
outside of Delaware, the stockholder bringing the suit will be deemed to have consented to service of process on such stockholder's
counsel except any action (A) as to which the Court of Chancery in the State of Delaware determines that there is an indispensable
party not subject to the jurisdiction of the Court of Chancery (and the indispensable party does not consent to the personal jurisdiction
of the Court of Chancery within 10 days following such determination), (B) which is vested in the exclusive jurisdiction of a court
or forum other than the Court of Chancery or (C) for which the Court of Chancery does not have subject matter jurisdiction. The Amended
and Restated Charter also requires that the federal district courts of the United States of America be the exclusive forum for the
resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended, and/or the Securities Exchange
Act of 1934, as amended. Any person or entity purchasing or otherwise acquiring any interest in shares of
Class
A
Common Stock shall be deemed to have notice of and consented to the forum provisions in the Amended and Restated Charter.
This choice of forum provision may limit a stockholder's
ability to bring a claim in a judicial forum that it finds favorable for disputes with FF or any of FF's directors, officers, other
employees or stockholders, which may discourage lawsuits with respect to such claims. FF cannot be certain that a court will decide that
this provision is either applicable or enforceable, and if a court were to find the choice of forum provision contained in the Amended
and Restated Charter to be inapplicable or unenforceable in an action, FF may incur additional costs associated with resolving such action
in other jurisdictions, which could harm FF's business, operating results and financial condition.
The Amended and Restated Charter provides that
the exclusive forum provision will be applicable to the fullest extent permitted by applicable law.
Limitation on Liability and Indemnification of Directors and
Officers
The Amended and Restated Charter provides that
directors and officers will be indemnified by FF to the fullest extent authorized by Delaware law as it now exists or may in the future
be amended.
The Amended and Restated Bylaws also permit FF
to secure insurance on behalf of any officer, director or employee for any liability arising out of his or her actions, regardless of
whether Delaware law would permit indemnification. FF has purchased a policy of directors' and officers' liability insurance
that insures FF's directors and officers against the cost of defense, settlement or payment of a judgment in some circumstances
and insures FF against its obligations to indemnify the directors and officers.
These provisions may discourage stockholders from
bringing a lawsuit against FF's directors for breach of their fiduciary duty. These provisions also may have the effect of reducing
the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit
FF and FF stockholders. Furthermore, a stockholder's investment may be adversely affected to the extent FF pays the costs of settlement
and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions, the insurance
and the indemnity agreements are necessary to attract and retain talented and experienced directors and officers.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to FF's directors, officers and controlling persons pursuant to the foregoing provisions,
or otherwise, FF has been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable.
191
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
TO NON-U.S. HOLDERS
The following is a summary of material United States
federal income tax consequences of the purchase, ownership and disposition of our Class A Common Stock as of the date hereof. This discussion
is limited to non-U.S. holders (as defined below) who purchase our Class A Common Stock pursuant to this offering and who hold our Class
A Common Stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment).
A "non-U.S. holder" means a beneficial
owner of our Class A Common Stock (other than an entity or arrangement treated as a partnership for United States federal income tax purposes)
that is not, for United States federal income tax purposes, any of the following:
●
an individual citizen or resident of the United States;
●
a corporation (or any other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;
●
an estate the income of which is subject to United States federal income taxation regardless of its source; or a trust if it (1) is subject to the primary supervision of a court within the United States and one or more United States persons have the authority to control all substantial decisions of the trust or (2) has a valid election in effect under applicable United States Treasury regulations to be treated as a United States person for United States federal income tax purposes.
This summary is based upon provisions of the United
States Internal Revenue Code of 1986, as amended, or the "Code," United States Treasury regulations promulgated thereunder,
rulings, judicial decisions, published positions of the Internal Revenue Service, or "IRS," and other applicable authorities,
as of the date hereof. Those authorities are subject to different interpretations and may be changed, perhaps retroactively, so as to
result in United States federal income tax consequences different from those summarized below. This summary does not address all aspects
of United States federal income taxes and does not deal with any estate or gift tax consequences or any foreign, state, local or other
tax considerations (including any aspects of the unearned income Medicare contribution tax pursuant to the Health Care and Education Reconciliation
Act of 2010) that may be relevant to non-U.S. holders in light of their particular circumstances. In addition, it does not represent a
detailed description of the United States federal income tax consequences applicable to you if you are subject to special treatment under
the United States federal income tax laws (including if you are a former citizen or long-term resident of the United States, foreign pension
fund, tax qualified retirement plan, bank, financial institution, insurance company, investment fund, tax-exempt organization, governmental
organization, trader, broker or dealer in securities, "controlled foreign corporation," "passive foreign investment
company," a partnership or other pass-through entity for United States federal income tax purposes (or an investor in such a pass-through
entity), person subject to the alternative minimum tax, person that owns, or has owned, actually or constructively, more than 5% of our
Class A Common Stock, person who has elected to mark securities to market, person who acquired shares of our Class A Common Stock as compensation
or otherwise in connection with the performance of services, person who has acquired shares of our Class A Common Stock as part of a straddle,
hedge, conversion transaction or other integrated investment or an accrual-method taxpayer subject to special tax accounting rules under
Section 451(b) of the Code). We cannot assure you that a change in law will not alter significantly the tax considerations that we describe
in this summary.
If a partnership (or other entity or arrangement
treated as a partnership for United States federal income tax purposes) holds our Class A Common Stock, the tax treatment of a partner
will generally depend upon the status of the partner and the activities of the partnership. If you are a partnership (or other entity
or arrangement treated as a partnership for United States federal income tax purposes) or partner of a partnership holding our Class A
Common Stock, you should consult your tax advisors.
If you
are considering the purchase of our Class A common stock, you should consult your own tax advisors concerning the particular United States
federal income tax consequences to you of the purchase, ownership and disposition of our Class A common stock, as well as the consequences
to you arising under other United States federal tax laws, the laws of any other taxing jurisdiction, OR AN APPLICABLE TAX TREATY. IN
ADDITION, YOU SHOULD CONSULT WITH YOUR TAX ADVISOR WITH RESPECT TO POTENTIAL CHANGES IN UNITED STATES FEDERAL TAX LAW AS WELL AS POTENTIAL
CHANGES IN STATE, LOCAL OR FOREIGN TAX LAWS.
192
Dividends
In the event that we make a distribution of cash
or other property (other than certain pro rata distributions of our stock) in respect of our Class A Common Stock, the distribution generally
will be treated as a dividend for United States federal income tax purposes to the extent it is paid from our current or accumulated earnings
and profits, as determined under United States federal income tax principles. Any portion of a distribution that exceeds our current and
accumulated earnings and profits generally will be treated first as a tax-free return of capital, causing a reduction in the adjusted
tax basis of a non-U.S. holder's Class A Common Stock, and to the extent the amount of the distribution exceeds a non-U.S. holder's
adjusted tax basis in our Class A Common Stock, the excess will be treated as gain from the disposition of our Class A Common Stock (the
tax treatment of which is discussed below under "
Gain on Disposition of Class A Common Stock
").
Subject to the discussions below regarding effectively
connected income, backup withholding and Sections 1471 through 1474 of the Code (such Sections commonly referred to as "FATCA"),
dividends paid to a non-U.S. holder generally will be subject to withholding of United States federal income tax at a 30% rate or such
lower rate as may be specified by an applicable income tax treaty. A non-U.S. holder who wishes to claim the benefit of an applicable
treaty rate and avoid backup withholding, as discussed below, for dividends will be required (a) to provide the applicable withholding
agent with a properly executed IRS Form W-8BEN or Form W- 8BEN-E (or other applicable form) certifying under penalty of perjury that such
holder is not a United States person as defined under the Code and is eligible for treaty benefits or (b) if our Class A Common Stock
is held through certain foreign intermediaries, to satisfy the relevant certification requirements of applicable United States Treasury
regulations. Special certification and other requirements apply to certain non-U.S. holders that are pass-through entities rather than
corporations or individuals. A non-U.S. holder eligible for a reduced rate of United States federal withholding tax pursuant to an income
tax treaty may be eligible to obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the
IRS.
Dividends that are effectively connected with the
conduct of a trade or business by the non-U.S. holder within the United States (and, if required by an applicable income tax treaty, are
attributable to a United States permanent establishment) are not subject to the withholding tax. To claim the exemption, the non-U.S.
holder must generally furnish a valid IRS Form W-8ECI (or applicable successor form) to the applicable withholding agent certifying eligibility
for exemption. However, any such effectively connected dividends paid on our Class A Common Stock generally will be subject to United
States federal income tax on a net income basis in the same manner as if the non-U.S. holder were a United States person as defined under
the Code. Any such effectively connected dividends received by a foreign corporation may be subject to an additional "branch profits
tax" at a 30% rate or such lower rate as may be specified by an applicable income tax treaty.
Gain on Disposition of Class A Common Stock
Subject to the discussion of backup withholding
and FATCA below, any gain realized by a non-U.S. holder on the sale or other disposition of our Class A Common Stock generally will not
be subject to United States federal income tax unless:
●
the gain is effectively connected with a trade or business of the non-U.S. holder in the United States (and, if required by an applicable income tax treaty, is attributable to a United States permanent establishment of the non-U.S. holder);
●
the non-U.S. holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of that disposition, and certain other conditions are met; or
●
we are or have been a "United States real property holding corporation" for United States federal income tax purposes at any time within the shorter of the five-year period preceding the disposition or the non-U.S. holder's holding period for our Class A Common Stock, and our Class A Common Stock is not regularly traded on an established securities market during the calendar year in which the sale or other disposition occurs.
A non-U.S. holder described in the first bullet
point immediately above will be subject to tax on the gain derived from the sale or other disposition in the same manner as if the non-U.S.
holder were a United States person as defined under the Code. In addition, if any non-U.S. holder described in the first bullet point
immediately above is a foreign corporation, the gain realized by such non-U.S. holder may be subject to an additional "branch profits
tax" at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. An individual non-U.S. holder described
in the second bullet point immediately above will be subject to a 30% (or such lower rate as may be specified by an applicable income
tax treaty) tax on the gain derived from the sale or other disposition, which gain may be offset by United States source capital losses
even though the individual is not considered a resident of the United States, provided that the non-U.S. holder has timely filed United
States federal income tax returns with respect to such losses.
193
Generally, a corporation is a "United States
real property holding corporation" if the fair market value of its United States real property interests equals or exceeds 50% of
the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business
(all as determined for United States federal income tax purposes). We believe we are not and do not anticipate becoming a "United
States real property holding corporation" for United States federal income tax purposes.
Non-U.S. holders should consult their tax advisors
regarding any applicable income tax treaties that may provide for different rules.
Information Reporting and Backup Withholding
Annual reports are required to be filed with the
IRS and provided to each non-U.S. holder indicating the amount of distributions on our Class A Common Stock paid to such holder and the
amount of any tax withheld with respect to such distributions. These information reporting requirements apply even if no withholding was
required because the distributions were effectively connected with the non-U.S. holder's conduct of a United States trade or business,
or withholding was reduced or eliminated by an applicable income tax treaty. Copies of the information returns reporting such distributions
and any withholding may also be made available to the tax authorities in the country in which the non-U.S. holder resides under the provisions
of an applicable income tax treaty.
A non-U.S. holder will not be subject to backup
withholding on dividends received if such holder certifies under penalty of perjury that it is a non-U.S. holder (and the payor does not
have actual knowledge or reason to know that such holder is a United States person as defined under the Code), including by providing
a valid IRS Form W-8BEN, IRS Form W-8BEN-E or IRS Form W-8ECI, or such holder otherwise establishes an exemption.
Information reporting and backup withholding generally
are not required with respect to the amount of any proceeds from the sale or other disposition of our Class A Common Stock by a non-U.S.
holder outside the United States through a foreign office of a foreign broker that does not have certain specified connections to the
United States. However, if a non-U.S. holder sells or otherwise disposes of its shares of Class A Common Stock through a United States
broker or the United States offices of a foreign broker, the broker will generally be required to report the amount of proceeds paid to
the non-U.S. holder to the IRS and also backup withhold on that amount unless such non-U.S. holder provides appropriate certification
to the broker of its status as a non-U.S. holder (and the payor does not have actual knowledge or reason to know that such holder is a
United States person) or otherwise establishes an exemption. Information reporting will also apply if a non-U.S. holder sells its shares
of Class A Common Stock through a foreign broker deriving more than a specified percentage of its income from United States sources or
having certain other connections to the United States, unless such broker has documentary evidence in its records that such non-U.S. holder
is a non-U.S. holder (and the payor does not have actual knowledge or reason to know that such holder is a United States person) and certain
other conditions are met, or such non-U.S. holder otherwise establishes an exemption.
Backup withholding is not an additional tax and
any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a non-U.S. holder's United
States federal income tax liability provided the required information is timely furnished to the IRS.
Additional Withholding Requirements
Under FATCA, a 30% United States federal withholding
tax may apply to any dividends paid on our Class A Common Stock paid to (i) a "foreign financial institution" (as specifically
defined in the Code) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption
from FATCA, or (y) its compliance (or deemed compliance) with FATCA (which may alternatively be in the form of compliance with an intergovernmental
agreement with the United States) in a manner which avoids withholding, or (ii) a "non-financial foreign entity" (as specifically
defined in the Code) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption
from FATCA, or (y) adequate information regarding certain substantial United States beneficial owners of such entity (if any). If a dividend
payment is both subject to withholding under FATCA and subject to the withholding tax discussed above under "
Dividends
,"
the withholding under FATCA may be credited against, and therefore reduce, such other withholding tax. An intergovernmental agreement
between the United States and an applicable foreign country may modify these requirements. Under certain circumstances, a non-U.S. holder
might be eligible for refunds or credits of such taxes. FATCA currently applies to dividends paid on our Class A Common Stock. The Treasury
Secretary has issued proposed regulations providing that the withholding provisions under FATCA do not apply with respect to gross proceeds
from a sale or other disposition of our Class A Common Stock, which may be relied upon by taxpayers until final regulations are issued.
You should consult your own tax advisors regarding these requirements and whether they may be relevant to your ownership and disposition
of our Class A Common Stock.
194
PLAN OF DISTRIBUTION
We are registering up to 29,659,781 shares of Class A Common Stock,
of which 28,017,654 shares of Class A Common Stock are issuable upon conversion of the SPA Notes and the exercise of the SPA Warrants
by the holders thereof from time to time, 561,833 shares of Class A Common Stock are issuable upon conversion of the Applicable Tranche
D Notes, and 1,080,294 shares of Class A Common Stock were issued to Palantir in settlement of amounts owed to Palantir. We are required
to pay all fees and expenses incident to the registration of the shares of our Class A Common Stock to be offered and sold pursuant to
this prospectus. The Selling Securityholders will bear all commissions and discounts, if any, attributable to their sale of shares of
our Class A Common Stock.
We will not receive any proceeds from the sale
of the shares of Class A Common Stock by the Selling Securityholders. The aggregate proceeds to the Selling Securityholders will be the
purchase price of the securities less any discounts and commissions borne by the Selling Securityholders.
The shares of Class A Common Stock beneficially
owned by the Selling Securityholders covered by this prospectus may be offered and sold from time to time by the Selling Securityholders.
The term "Selling Securityholders" includes donees, pledgees, transferees or other successors in interest selling securities
received after the date of this prospectus from a Selling Securityholder as a gift, pledge, partnership distribution or other transfer.
The Selling Securityholders will act independently of us in making decisions with respect to the timing, manner and size of each sale.
Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms then prevailing
or at prices related to the then current market price or in negotiated transactions. The Selling Securityholders may sell their shares
of Class A Common Stock by one or more of, or a combination of, the following methods:
●
purchases by a broker-dealer as principal and resale by such broker-dealer for its own account pursuant to this prospectus;
●
ordinary brokerage transactions and transactions in which the broker solicits purchasers;
●
block trades in which the broker-dealer so engaged will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
●
an over-the-counter distribution in accordance with the rules of Nasdaq;
●
through trading plans entered
into by a Selling Securityholder pursuant to Rule 10b5-1 under the Exchange Act, that are in place at the time of an offering pursuant
to this prospectus and any applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of
parameters described in such trading plans;
●
to or through underwriters or broker-dealers;
●
in "at the market" offerings, as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an exchange or other similar offerings through sales agents;
●
in privately negotiated transactions;
●
in options transactions;
●
through a combination of any of the above methods of sale; or
●
any other method permitted pursuant to applicable law.
In addition, any shares that qualify for sale pursuant
to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus.
195
To the extent required, this prospectus may be
amended or supplemented from time to time to describe a specific plan of distribution. In connection with distributions of the shares
or otherwise, the Selling Securityholders may enter into hedging transactions with broker-dealers or other financial institutions. In
connection with such transactions, broker-dealers or other financial institutions may engage in short sales of shares of Class A Common
Stock in the course of hedging transactions, broker-dealers or other financial institutions may engage in short sales of shares of Class
A Common Stock in the course of hedging the positions they assume with Selling Securityholders. The Selling Securityholders may also sell
shares of Class A Common Stock short and redeliver the shares to close out such short positions. The Selling Securityholders may also
enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to such broker-dealer
or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such transaction). The Selling Securityholders may also pledge
shares to a broker-dealer or other financial institution, and, upon a default, such broker-dealer or other financial institution, may
effect sales of the pledged shares pursuant to this prospectus (as supplemented or amended to reflect such transaction).
A Selling Securityholder may enter into derivative
transactions with third parties, or sell securities not covered by this prospectus to third parties in privately negotiated transactions.
If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell securities covered
by this prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use securities
pledged by any Selling Securityholder or borrowed from any Selling Securityholder or others to settle those sales or to close out any
related open borrowings of stock, and may use securities received from any Selling Securityholder in settlement of those derivatives to
close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and will be identified
in the applicable prospectus supplement (or a post-effective amendment). In addition, any Selling Securityholder may otherwise loan or
pledge securities to a financial institution or other third party that in turn may sell the securities short using this prospectus. Such
financial institution or other third party may transfer its economic short position to investors in our securities or in connection with
a concurrent offering of other securities.
196
In effecting sales, broker-dealers
or agents engaged by the Selling Securityholders may arrange for other broker-dealers to participate. Broker-dealers or agents may receive
commissions, discounts or concessions from the Selling Securityholders in amounts to be negotiated immediately prior to the sale.
In offering the shares covered
by this prospectus, the Selling Securityholders and any broker-dealers who execute sales for the Selling Securityholders may be deemed
to be "underwriters" within the meaning of the Securities Act in connection with such sales. Any profits realized by the Selling
Securityholders and the compensation of any broker-dealer may be deemed to be underwriting discounts and commissions.
In order to comply with the
securities laws of certain states, if applicable, the shares must be sold in such jurisdictions only through registered or licensed brokers
or dealers. In addition, in certain states the shares may not be sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is available and is complied with.
We have advised the Selling
Securityholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of shares in the market and
to the activities of the Selling Securityholders and their affiliates. In addition, we will make copies of this prospectus available to
the Selling Securityholders for the purpose of satisfying the prospectus delivery requirements of the Securities Act. The Selling Securityholders
may indemnify any broker-dealer that participates in transactions involving the sale of the shares against certain liabilities, including
liabilities arising under the Securities Act.
At the time a particular offer
of shares is made, if required, a prospectus supplement will be distributed that will set forth the number of shares being offered and
the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter, any discount,
commission and other item constituting compensation, any discount, commission or concession allowed or reallowed or paid to any dealer,
and the proposed selling price to the public.
197
LEGAL MATTERS
The validity of the securities
offered by this prospectus has been passed upon for us by Pryor Cashman LLP, New York, New York. If the validity of any securities is
also passed upon by counsel for the underwriters, dealers or agents of an offering of those securities, that counsel will be named in
the applicable prospectus supplement.
EXPERTS
The financial statements as
of December 31, 2023 and 2022 and for the years then ended incorporated by reference in this prospectus have been so included in reliance
on the reports (which contains an explanatory paragraph relating to the Company's ability to continue as a going concern as described
in Note 2 to the financial statements) of Mazars USA LLP, an independent registered public accounting firm, given on the authority of
said firm as experts in auditing and accounting.
CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
On April 9, 2024, Mazars USA
LLP ("Mazars") notified FFIE that it would
resign as the Company's auditor effective
May 31, 2024.
The
report of Mazars on the Company's financial statements for the fiscal year ended December 31, 2022, did not contain an adverse
opinion or a disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principle, but did contain
an emphasis of a matter related to substantial doubt about the Company's ability to continue as a going concern.
During
the fiscal year ended December 31, 2023 and 2022, there were no disagreements (as that term is defined in Item 304(a)(1)(iv) of Regulation
S-K and related instructions) between the Company and Mazars on any matter of accounting principles or practices, financial statement
disclosure or auditing scope or procedures which disagreements, if not resolved to the satisfaction of Mazars, would have caused Mazars
to make reference thereto in their report on the financial statements for such year. The Company disclosed in its Form 10-K/A for the
fiscal year ended December 31, 2023 and 2022, that it did not maintain effective internal control over financial reporting.
The
Company provided Mazars with a copy of the disclosures made and requested that Mazars furnish the Company with a letter addressed to the
Securities and Exchange Commission stating whether it agrees with the statements contained herein. A copy of Mazars' letter, dated
April 15, 2024, is filed as Exhibit 16.1 to the Current Report on Form 8-K, filed with the Securities and Exchange Commission on
April 15, 2024, which was incorporated by reference herein.
Effective
on June 21, 2024, Macias Gini & O'Connell LLP ("MGO") was engaged as the independent registered public accounting
firm for the Company for the fiscal year ending December 31, 2024. The engagement was approved by the Audit Committee of the Board.
During
the Company's two most recent fiscal years ended December 31, 2022 and December 31, 2023 and during the period from the end of the
most recently completed fiscal year ended December 31, 2023 through June 21, 2024, neither the Company nor anyone on its behalf consulted
with MGO, on behalf of the Company, regarding the application of accounting principles to a specified transaction (either completed or
proposed), the type of audit opinion that might be rendered on the Company's financial statements, or any matter that was either
the subject of a "disagreement" as defined in Item 304(a)(1)(iv) of Regulation S-K under the Securities
Exchange Act of 1934, as amended (the "Exchange Act") and the instructions thereto, or a "reportable event," as
defined in Item 304(a)(1)(v) of Regulation S-K under the Exchange Act.
The
Company provided MGO with a copy of the disclosures it made. The Company has requested and received from MGO a letter addressed to the
SEC stating whether it agrees with the statements contained herein. A copy of MGO's letter, dated June 24, 2024, is filed as Exhibit
16.1 to the Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 24, 2024, which was incorporated by
reference herein.
198
WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC
a registration statement on Form S-1 under the Securities Act with respect to the securities offered by this prospectus. This prospectus,
which forms a part of such registration statement, does not contain all of the information included in the registration statement. For
further information pertaining to us and our securities, you should refer to the registration statement and to its exhibits. The registration
statement has been filed electronically and may be obtained in any manner listed below. Whenever we make reference in this prospectus
to any of our contracts, agreements or other documents, the references are not necessarily complete. If a contract or document has been
filed as an exhibit to the registration statement or a report we file under the Exchange Act, you should refer to the copy of the contract
or document that has been filed. Each statement in this prospectus relating to a contract or document filed as an exhibit to a registration
statement or report is qualified in all respects by the filed exhibit.
We file annual, quarterly
and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the internet
at the SEC's website at
www.sec.gov
and on our website, free of charge, at
www.ff.com
. The information found on, or
that can be accessed from or that is hyperlinked to, our website is not part of this prospectus. You may inspect a copy of the registration
statement through the SEC's website, as provided herein.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to "incorporate
by reference" information that we file with it into this prospectus, which means that we can disclose important information to you
by referring you to those documents. The information incorporated by reference is an important part of this prospectus. The information
incorporated by reference is considered to be a part of this prospectus, and information that we file later with the SEC will automatically
update and supersede information contained in this prospectus and any accompanying prospectus supplement.
We incorporate by reference
the documents listed below that we have previously filed with the SEC:
●
Our Annual Reports on Form 10-K and Form 10-K/A for the fiscal year ended December 31, 2023, filed with the SEC on
May 28, 2024
,
May 30, 2024
and
June 24, 2024
;
●
Our Quarterly Reports on Form 10-Q for the fiscal quarter ended March 31, 2024 and June 30, 2024, filed with the SEC on
July 30, 2024
and
August 14, 2024
;
●
Our Current Reports on
    Form 8-K filed with the SEC on
February 7, 2024
,
February 26, 2024
,
March 15, 2024
,
April 15, 2024
,
April 24, 2024
,
April 26, 2024
,
May 28, 2024
,
June 11, 2024
,
June 25, 2024
,
June 27, 2024
,
July 12, 2024
,
August 1, 2024
,
August 5, 2024
,
August 15, 2024
,
September 6, 2024
,
September 10, 2024
,
September 13, 2024
,
September 18, 2024
(other than any portions thereof deemed furnished and
    not filed); and
●
The description of our
    Common Stock in our Registration Statement on
Form
    8-A
, filed with the SEC on July 20, 2020, including any amendment or reports filed for the purpose of updating such description,
    including the Description of Capital Stock filed as
Exhibit 4.1
to our Annual Report on
Form 10-K
for the year ended December 31, 2023, as filed with the SEC on May 28, 2024.
All reports and other documents
that we file with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of the initial registration
statement and prior to effectiveness of the registration statement, and after the date of this prospectus but before the termination of
the offering of the securities hereunder will also be considered to be incorporated by reference into this prospectus from the date of
the filing of these reports and documents, and will supersede the information herein; provided, however, that all reports, exhibits and
other information that we "furnish" to the SEC will not be considered incorporated by reference into this prospectus. We undertake
to provide without charge to each person (including any beneficial owner) who receives a copy of this prospectus, upon written or oral
request, a copy of all of the preceding documents that are incorporated by reference (other than exhibits, unless the exhibits are specifically
incorporated by reference into these documents). You may request a copy of these materials in the manner set forth under the heading "
Where
You Can Find More Information
," above.
We will provide you without
charge, upon your oral or written request, with a copy of any or all reports, proxy statements and other documents we file with the SEC,
as well as any or all of the documents incorporated by reference in this prospectus or the registration statement (other than exhibits
to such documents unless such exhibits are specifically incorporated by reference into such documents). Requests for such copies should
be directed to
Faraday Future Intelligent Electric Inc.
18455 S. Figueroa Street
Gardena, CA 90248
(310) 415-4807
199
Up to 29,659,781 Shares of Class A Common Stock
Issued to a Former Vendor
and
Issuable Upon Exercise of the Warrants and
PA Warrants and Conversion of the SPA Notes and Applicable Tranche D Notes
Prospectus
November 1, 2024
PART II
Information Not Required in Prospectus
Item 13. Other Expenses of Issuance and
Distribution.
The following is an estimate
of the expenses (all of which are to be paid by the registrant) that we may incur in connection with the securities being registered hereby.
Amount
SEC registration fee
$
23,840.10
Legal fees and expenses
*
Accounting fees and expenses
*
Miscellaneous
*
Total
$
23,840.10
*
*
These fees are calculated based on the securities offered and the number of issuances and accordingly cannot be defined at this time.
We will bear all costs, expenses
and fees in connection with the registration of the securities, including with regard to compliance with state securities or "blue
sky" laws. The Selling Securityholders, however, will bear all underwriting commissions and discounts, if any, attributable to their
sale of the securities. All amounts are estimates except the SEC registration fee and the FINRA filing fee.
Item 14. Indemnification of Directors
and Officers.
Section 145 of the DGCL
concerning indemnification of officers, directors, employees and agents is set forth below.
"Section 145. Indemnification
of officers, directors, employees and agents; insurance.
(a)
A corporation shall have power
to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit
or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation)
by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the
request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person
reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding,
had no reasonable cause to believe the person's conduct was unlawful. The termination of any action, suit or proceeding by judgment,
order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the
person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests of
the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person's conduct
was unlawful.
(b)
A corporation shall have power
to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit
by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director,
officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee
or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees)
actually and reasonably incurred by the person in connection with the defense or settlement of such action or suit if the person acted
in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and except
that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be
liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person
is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.
II-
1
(c)
(1)
To the extent that a present
or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding
referred to in subsections (a) and (b) of this section, or in defense of any claim, issue or matter therein, such person shall
be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.
For indemnification with respect to any act or omission occurring after December 31, 2020, references to "officer" for purposes
of these paragraphs (c)(1) and (2) of this section shall mean only a person who at the time of such act or omission is deemed to
have consented to service by the delivery of process to the registered agent of the corporation pursuant to § 3114(b) of Title 10
(for purposes of this sentence only, treating residents of this State as if they were nonresidents to apply § 3114(b) of Title 10
to this sentence).
(2)
The corporation may indemnify
any other person who is not a present or former director or officer of the corporation against expenses (including attorneys' fees)
actually and reasonably incurred by such person to the extent he or she has been successful on the merits or otherwise in defense of
any action, suit or proceeding referred to in subsections (a) and (b) of this section, or in defense of any claim, issue or
matter therein.
(d)
Any indemnification under subsections
(a) and (b) of this section (unless ordered by a court) shall be made by the corporation only as authorized in the specific
case upon a determination that indemnification of the present or former director, officer, employee or agent is proper in the circumstances
because the person has met the applicable standard of conduct set forth in subsections (a) and (b) of this section. Such determination
shall be made, with respect to a person who is a director or officer of the corporation at the time of such determination, (1) by
a majority vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum, or (2) by
a committee of such directors designated by majority vote of such directors, even though less than a quorum, or (3) if there are
no such directors, or if such directors so direct, by independent legal counsel in a written opinion, or (4) by the stockholders.
(e)
Expenses (including attorneys'
fees) incurred by an officer or director of the corporation in defending any civil, criminal, administrative or investigative action,
suit or proceeding may be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt
of an undertaking by or on behalf of such director or officer to repay such amount if it shall ultimately be determined that such person
is not entitled to be indemnified by the corporation as authorized in this section. Such expenses (including attorneys' fees) incurred
by former directors and officers or other employees and agents of the corporation or by persons serving at the request of the corporation
as directors, officers, employees or agents of another corporation, partnership, joint venture, trust or other enterprise may be so paid
upon such terms and conditions, if any, as the corporation deems appropriate.
(f)
The indemnification and advancement
of expenses provided by, or granted pursuant to, the other subsections of this section shall not be deemed exclusive of any other rights
to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or
disinterested directors or otherwise, both as to action in such person's official capacity and as to action in another capacity
while holding such office. A right to indemnification or to advancement of expenses arising under a provision of the certificate of incorporation
or a bylaw shall not be eliminated or impaired by an amendment to or repeal or elimination of the certificate of incorporation or the
bylaws after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action,
suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such
act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.
(g)
A corporation shall have power
to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or
is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity,
or arising out of such person's status as such, whether or not the corporation would have the power to indemnify such person against
such liability under this section.
II-
2
(h)
For purposes of this section,
references to "the corporation" shall include, in addition to the resulting corporation, any constituent corporation (including
any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had
power and authority to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer,
employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position
under this section with respect to the resulting or surviving corporation as such person would have with respect to such constituent
corporation if its separate existence had continued.
(i)
For purposes of this section,
references to "other enterprises" shall include employee benefit plans; references to "fines" shall include any
excise taxes assessed on a person with respect to any employee benefit plan; and references to "serving at the request of the corporation"
shall include any service as a director, officer, employee or agent of the corporation which imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person
who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of
an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the corporation"
as referred to in this section.
(j)
The indemnification and advancement
of expenses provided by, or granted pursuant to, this section shall, unless otherwise provided when authorized or ratified, continue
as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and
administrators of such a person.
(k)
The Court of Chancery is hereby
vested with exclusive jurisdiction to hear and determine all actions for advancement of expenses or indemnification brought under this
section or under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise. The Court of Chancery may summarily
determine a corporation's obligation to advance expenses (including attorneys' fees).
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons pursuant to the
foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy
as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities
(other than the payment of expenses incurred or paid by a director, officer or controlling person in a successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we
will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to the court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the
final adjudication of such issue.
Section 7.01 of the Amended
and Restated Charter provides:
"To the fullest extent
permitted by the DGCL, as the same exists or as may hereafter be amended, a director of the Corporation shall not be personally liable
to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the DGCL is amended after approval
by the stockholders of this Article VII to authorize corporate action further eliminating or limiting the personal liability of directors,
then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the DGCL as so amended,
automatically and without further action, upon the date of such amendment."
Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing
provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities
Act and is theretofore unenforceable.
We have entered into indemnification
agreements with each of our current directors and executive officers. These agreements require us to indemnify these individuals to the
fullest extent permitted under Delaware law against liabilities that may arise by reason of their service to us, and to advance expenses
incurred as a result of any proceeding against them as to which they could be indemnified. We also intend to enter into indemnification
agreements with future directors and executive officers.
Item 15. Recent Sales of Unregistered
Securities.
The SPA Notes, the SPA Warrants
and the PA Warrants, were not registered under the Securities Act, and were issued in reliance on the exemption from registration requirements
thereof provided by Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder as a transaction by an issuer
not involving a public offering without any form of general solicitation or general advertising.
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3
Item 16. Exhibits.
Exhibit No.
Description of Exhibits
Incorporation by Reference
2.1+
Agreement and Plan of Merger, dated as of January 27, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.
Annex A to Amendment No. 3 to Registration Statement on Form S-4 (File No. 333-255027) filed on June 23, 2021
2.2
First Amendment to Agreement and Plan of Merger, dated as of February 25, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.
Exhibit 2.2 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
2.3
Second Amendment to Agreement and Plan of Merger, dated as of May 3, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.
Exhibit 2.3 to Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-255027) filed on June 1, 2021
2.4
Third Amendment to Agreement and Plan of Merger, dated as of June 14, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.
Exhibit 2.4 to Amendment No. 3 to Registration Statement on Form S-4 (File No. 333-255027) filed on June 23, 2021
2.5
Fourth Amendment to Agreement and Plan of Merger, dated as of July 12, 2021, by and among Property Solutions Acquisition Corp., PSAC Merger Sub Ltd., and FF Intelligent Mobility Global Holdings Ltd.
Exhibit 2.5 to the Current Report on Form 8-K filed on July 22, 2021.
3.1
Th
ir
d Amended and Restated Certificate of Incorporation of the Company
Exhibit 3.1 to the Current Report on Form 8-K filed on August 29, 2023.
3.2
Certificate of Amendment to the
Thir
d Amended and Restated Certificate of Incorporation of the Company
Exhibit 3.1 to the Current Report on Form 8-K filed on February 7, 2024.
3.3
Second
Certificate of Amendment to the Third Amended and Restated Certificate of Incorporation of the Company
Exhibit 3.1 to the Current Report on Form 8-K filed on February 26, 2024.
3.4
Third Certificate of Amendment to the Third Amended and Restated Certificate of Incorporation of the Company
Exhibit 3.1 to the Current Report on Form 8-K filed on August 1, 2024.
3.5
Fourth Certificate of Amendment to the Third Amended and Restated Certificate of Incorporation of the Company
Exhibit 3.1 to the Current Report on Form 8-K filed on August 15, 2024.
3.6
Amended and Restated Bylaws of the Company
Exhibit 3.2 to the Current Report on Form 8-K filed on June 16, 2023
4.1
Description of the Securities
S-3/A (Registration Statement) filed on August 29, 2023
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4
4.2
Specimen Common Stock Certificate
Exhibit 4.2 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
4.3
Specimen Warrant Certificate
Exhibit 4.3 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
4.4
Warrant Agreement between Continental Stock Transfer & Trust Company and the Company
Exhibit 4.5 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
4.5
Form of Common Stock Purchase Warrant (under Securities Purchase Agreement, dated as of August 14, 2022)
Exhibit 4.1 to the Current Report on Form 8-K filed on August 15, 2022
4.6
Form of Common Stock Purchase Warrant (under Amendment No. 1 to the Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022)
Exhibit 4.1 to the Current Report on Form 8-K filed on September 26, 2022
4.7
Form of Adjustment Warrant (under Amendment No. 1 to Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022)
Exhibit 4.2 to the Current Report on Form 8-K filed on September 26, 2022
4.8
Form of Tranche C Warrant (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)
Exhibit 4.1 to the Current Report on Form 8-K filed on February 6, 2023
4.9
Form of Replacement Warrant (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)
Exhibit 4.2 to the Current Report on Form 8-K filed on February 6, 2023
4.10
Form of Common Stock Purchase Warrant (under Amendment No. 8 to Security Purchase Agreement, dated May 8, 2023)
Exhibit 4.1 to the Current Report on Form 8-K filed on May 10, 2023
4.11
Form of FFVV Common Stock Purchase Warrant.
Exhibit 4.1 to the Current Report on Form 8-K filed on June 27, 2023
4.12
Form of Senyun Common Stock Purchase Warrant.
Exhibit 4.2 to the Current Report on Form 8-K filed on June 27, 2023
4.13
Common Stock Purchase Warrant, dated August 4, 2023, issued to Streeter Ville Capital, LLC.
Exhibit 4.1 to the Current Report on Form 8-K filed on August 7, 2023
4.14
Common Stock Purchase Warrant, dated September 21, 2023, issued to FF Vitality Ventures LLC.
Exhibit 4.1 to the Current Report on Form 8-K filed on September 22, 2023
4.15
Form of Warrant
Exhibit 4.1 to the Current Report on Form 8-K filed on September 6, 2024
4.16
Form of Incremental Warrant
Exhibit 4.2 to the Current Report on Form 8-K filed on September 6, 2024
4.17
Form of Placement Agent Warrant
Exhibit 4.3 to the Current Report on Form 8-K filed on September 6, 2024
4.18
Form of Secured Convertible Note
Exhibit 4.4 to the Current Report on Form 8-K filed on September 6, 2024
5.1*
Opinion of Pryor Cashman LLP
10.1
Amended and Restated Registration Rights Agreement between the Company and certain holders identified therein
Exhibit 10.1 to the Current Report on Form 8-K filed on July 22, 2021.
10.2
Form of Subscription Agreement between the Company and the subscribers party thereto
Exhibit 10.10 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.3
Amended and Restated Shareholder Agreement dated as of January 13, 2023, by and between the Company and FF Top Holding LLC.
Exhibit 10.1 to the Current Report on Form 8-K filed on January 17, 2023
10.4
Form of Support Agreement between FF Intelligent Mobility Global Holdings Ltd. and FF Top Holding Limited.
Exhibit 10.12 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.5
Form of Support Agreement between FF Intelligent Mobility Global Holdings Ltd. and Season Smart Limited.
Exhibit 10.13 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
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5
10.6
Form of Support Agreement between FF Intelligent Mobility Global Holdings Ltd. and Founding Future Creditors Trust.
Exhibit 10.14 to Registration Statement on Form S-4 (File No.333-255027) filed on April 5, 2021
10.7
Sponsor Support Agreement between Property Solutions Acquisition Corp. and Property Solutions Acquisition Sponsor, LLC.
Exhibit 10.15 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.8
Form of Lock-up Agreement between the Company and certain stockholders party thereto.
Exhibit 10.16 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.9
Form of Lock-up Agreement between the Company and Property Solutions Acquisition Sponsor, LLC.
Exhibit 10.17 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.10#
Faraday Future Intelligent Electric Inc. Amended and Restated 2021 Stock Incentive Plan, effective June 20, 2024
Exhibit 10.1 to the Current Report on Form 8-K filed on August 1, 2024
10.11
Second Amended and Restated Note Purchase Agreement, dated as of October 9, 2020 among Faraday&Future Inc., FF Inc., Faraday SPE, LLC, and Robin Prop Holdco LLC, as Issuers, the Guarantors party thereto, Birch Lake Fund Management, LP, as Collateral Agent for the benefit of the Secured Parties, U.S. Bank National Association, as Notes Agent for the Purchasers and the Purchasers Party Thereto
Exhibit 10.19 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.12
First Amendment and Waiver to Second Amended and Restated Note Purchase Agreement, dated as of January 13, 2021 among Faraday&Future Inc., FF Inc., Faraday SPE, LLC, and Robin Prop Holdco LLC, as Issuers, the Guarantors Party Thereto, Birch Lake Fund Management, LP, as Collateral Agent for the benefit of the Secured Parties, U.S. Bank National Association, as Notes Agent for the Purchasers and the Purchasers party thereto
Exhibit 10.20 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.13
Second Amendment and Waiver to Second Amended and Restated Note Purchase Agreement, dated as of March 1, 2021 among Faraday&Future Inc., FF Inc., Faraday SPE, LLC, and Robin Prop Holdco LLC, as Issuers, the Guarantors party thereto, Birch Lake Fund Management, LP, as Collateral Agent for the benefit of the Secured Parties, U.S. Bank National Association, as Notes Agent for the Purchasers and the Purchasers party thereto
Exhibit 10.21 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.14
Ares Capital Corporation Priority Last Out Secured Promissory Note by Faraday&Future Inc., FF Inc., Faraday SPE, LLC
Exhibit 10.22 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.15
Ares Centre Street Partnership Priority Last Out Secured Promissory Note by Faraday&Future Inc., FF Inc., Faraday SPE, LLC
Exhibit 10.23 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.16
Ares Credit Strategies Priority Last Out Secured Promissory Note by Faraday&Future Inc., FF Inc., Faraday SPE, LLC
Exhibit 10.24 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.17
Ares Direct Finance I LP Priority Last Out Secured Promissory Note by Faraday&Future Inc., FF Inc., Faraday SPE, LLC
Exhibit 10.25 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
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6
10.18#
Offer Letter dated October 10, 2018 between Tin Mok and Faraday&Future Inc.
Exhibit 10.29 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.19#
Sign On Bonus Addendum Letter dated March 26, 2019 between Chui Tin Mok and Faraday&Future Inc.
Exhibit 10.30 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.20#
Sign On Bonus Addendum Letter dated March 11, 2018 between Chui Tin Mok and Faraday&Future Inc.
Exhibit 10.31 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.21#
Smart King Ltd. Equity Incentive Plan, as Adopted on February 1, 2018, as Amended and Restated Effective February 1, 2018
Exhibit 10.32 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.22#
Form of Smart King Ltd. Equity Incentive Plan Option Award Agreement (United States)
Exhibit 10.33 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.23#
Form of Smart King Ltd. Equity Incentive Plan Option Award Agreement (China)
Exhibit 10.34 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.24#
Smart King Ltd. Special Talent Incentive Plan, as Adopted on May 2, 2019, as Amended on July 26, 2020
Exhibit 10.35 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.25#
Form of Smart King Ltd. Special Talent Incentive Plan Share Option Agreement (Individual)
Exhibit 10.36 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.26#
Form of Smart King Ltd. Special Talent Incentive Plan Share Option Agreement (Entity)
Exhibit 10.37 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.27#
Form of Amended and Restated Employment Agreement by and among Faraday Future Intelligent Electric Inc., Faraday&Future Inc. and Dr. Carsten Breitfeld
Exhibit 10.38 to Registration Statement on Form S-4 (File No. 333-255027) filed on April 5, 2021
10.28#
Form of Director and Officer Indemnification Agreement by and between the Company and its directors and officers
Exhibit 10.32 to the Current Report on Form 8-K filed on July 22, 2021
10.29#
First Amendment to Employment Agreement by and among Faraday Future Intelligent Electric Inc., Faraday&Future Inc., and Carsten Breitfeld dated January 31, 2022.
Exhibit 10.35 to the Annual Report on Form 10-K filed on May 13, 2022
10.30#
Second Amendment to Amended and Restated Employment Agreement by and among Faraday Future Intelligent Electric Inc., Faraday&Future Inc. and Carsten Breitfeld dated September 3, 2022
Exhibit 10.1 to the Current Report on Form 8-K filed on September 6, 2022
10.31#
Management Services Agreement, dated as of February 23, 2022, by and between Faraday Future Intelligent Electric Inc. and AP Services, LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on March 2, 2022
10.32+^
Contract Manufacturing and Supply Agreement by and between Faraday&Future Inc. and Myoung Shin Co., Ltd. dated February 4, 2022
Exhibit 10.31 to Amendment No. 3 to Registration Statement on Form S-1 (File No. 333-258993) filed on August 30, 2022
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7
10.33+
FF Global Partners LLC Second Amended and Restated Limited Liability Company Agreement dated as of May 16, 2022
Exhibit 10.32 to Amendment No. 3 to Registration Statement on Form S-1 (File No. 333-258993) filed on August 30, 2022
10.34
Amendment letter agreement, dated as of July 26, 2022, among Faraday Future Intelligent Electric Inc., FF Aventuras SPV XI, LLC, FF Adventures SPV XVIII LLC, FF Ventures SPV IX LLC and FF Venturas SPV X LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on August 2, 2022.
10.35^
Securities Purchase Agreement, dated as of August 14, 2022, among Faraday Future Intelligent Electric Inc., FF Simplicity Ventures LLC and the purchasers from time to time party thereto
Exhibit 10.1 to the Current Report on Form 8-K filed on August 15, 2022
10.36
Form of Convertible Senior Secured Promissory Note (under Securities Purchase Agreement, dated as of August 14, 2022)
Exhibit 10.2 to the Current Report on Form 8-K filed on August 15, 2022
10.37+
Amendment No. 1 to Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022, by and among Faraday Future Intelligent Electric Inc, the credit parties from time to time party thereto, the financial institutions or other entities from time to time party thereto and FF Simplicity Ventures LLC, as administrative and collateral agent
Exhibit 10.3 to the Current Report on Form 8-K filed on September 26, 2022
10.38
Form of Convertible Senior Secured Promissory Note (under Amendment No. 1 to Securities Purchase Agreement and Convertible Senior Secured Promissory Notes, dated as of September 23, 2022)
Exhibit 10.4 to the Current Report on Form 8-K filed on September 26, 2022
10.39
Joinder and Amendment Agreement, dated as of September 25, 2022, by and among Senyun International Ltd., FF Simplicity Ventures LLC, RAAJJ Trading LLC and Faraday Future Intelligent Electric Inc.
Exhibit 10.5 to the Current Report on Form 8-K filed on September 26, 2022
10.40
Warrant Exercise Agreement, dated as of September 23, 2022, among Faraday Future Intelligent Electric Inc. and the investors listed on the signature pages thereto
Exhibit 10.6 to the Current Report on Form 8-K filed on September 26, 2022
10.41+
Letter Agreement Regarding Advanced Approval, dated as of September 23, 2022, between Faraday Future Intelligent Electric Inc. and FF Top Holding LLC
Exhibit 10.7 to the Current Report on Form 8-K filed on September 26, 2022
10.42+
Letter Agreement Regarding Advanced Approval, dated as of September 23, 2022, between Faraday Future Intelligent Electric Inc. and Season Smart Limited
Exhibit 10.8 to the Current Report on Form 8-K filed on September 26, 2022
10.43
Heads of Agreement, dated as of September 23, 2022, by and among Faraday Future Intelligent Electric Inc., FF Global Partners LLC and FF Top Holding LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on September 26, 2022
10.44
Mutual Release, dated as of September 23, 2022, among Faraday Future Intelligent Electric Inc., FF Global Partners LLC, FF Top Holding LLC and the other parties thereto
Exhibit 10.2 to the Current Report on Form 8-K filed on September 26, 2022
10.45
Exchange Agreement, dated October 10, 2022, by and among Faraday Future Intelligent Electric Inc., FF Aventuras SPV XI LLC, FF Venturas SPV X LLC, FF Ventures SPV IX LLC and FF Adventures SPV XVIII LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on October 11, 2022
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8
10.46
Exchange Agreement, dated as of October 19, 2022, by and among Faraday Future Intelligent Electric Inc., FF Aventuras SPV XI LLC, FF Venturas SPV X LLC, FF Ventures SPV IX LLC and FF Adventures SPV XVIII LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on October 20, 2022
10.47
Summary of Amendment dated October 22, 2022 to the Letter Agreement Regarding Advanced Approval, dated as of September 23, 2022, between Faraday Future Intelligent Electric Inc. and FF Top Holding LLC
Exhibit 10.47 to Amendment No. 6 to Registration Statement on Form S-1 (File No. 333-258993) filed on November 8, 2022
10.48
Limited Consent and Third Amendment, dated as of October 24, 2022, by and among Senyun International Ltd., FF Simplicity Ventures LLC, RAAJJ Trading LLC and Faraday Future Intelligent Electric Inc.
Exhibit 10.1 to the Current Report on Form 8-K filed on October 25, 2022
10.49#
Offer Letter, dated October 22, 2022, by and between Faraday Future Intelligent Electric Inc. and Yun Han
Exhibit 10.1 to the Current Report on Form 8-K filed on October 26, 2022
10.50#
Employment Agreement, dated as of November 27, 2022, by and among Faraday Future Intelligent Electric Inc., Faraday&Future Inc. and Xuefeng Chen
Exhibit 10.1 to the Current Report on Form 8-K filed on November 28, 2022
10.51
Limited Consent and Amendment, dated as of November 8, 2022, by and among Senyun International Ltd., FF Simplicity Ventures LLC, RAAJJ Trading LLC and Faraday Future Intelligent Electric Inc.
Exhibit 10.1 to the Current Report on Form 8-K filed on November 8, 2022
10.52
Standby Equity Purchase Agreement, dated as of November 11, 2022, by and between YA II PN, Ltd. and Faraday Future Intelligent Electric Inc.
Exhibit 10.1 to the Current Report on Form 8-K filed on November 14, 2022
10.53
Letter Agreement, dated December 28, 2022, by and among Faraday Future Intelligent Electric Inc., Senyun International Ltd. and FF Simplicity Ventures LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on December 29, 2022
10.54
Limited Consent and Amendment No. 5, dated January 25, 2023, by and among Faraday Future Intelligent Electric Inc., Senyun International Ltd. and FF Simplicity Ventures LLC
Exhibit 10.54 to Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-268972) filed on February 7, 2023
10.55#
Termination Agreement and General Release, dated January 30, 2023, by and among Carsten Breitfeld, Faraday Future Intelligent Electric Inc. and Faraday&Future Inc.
Exhibit 10.1 to the Current Report on Form 8-K/A filed on February 1, 2023
10.56+
Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023, by and among Faraday Future Intelligent Electric Inc., its subsidiaries party thereto, Senyun International Ltd., FF Top Holding LLC, FF Simplicity Ventures LLC and the other Purchasers party thereto
Exhibit 10.1 to the Current Report on Form 8-K filed on February 6, 2023
10.57
Form of Tranche C Note (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)
Exhibit 10.2 to the Current Report on Form 8-K filed on February 6, 2023
10.58
Form of Replacement Note (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)
Exhibit 10.3 to the Current Report on Form 8-K filed on February 6, 2023
10.59
Form of Exchange Note (under Amendment No. 6 to Securities Purchase Agreement, dated February 3, 2023)
Exhibit 10.4 to the Current Report on Form 8-K filed on February 6, 2023
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9
10.60+
Exchange Agreement, dated as of February 3, 2023, by and between Faraday Future Intelligent Electric Inc. and Senyun International Ltd.
Exhibit 10.5 to the Current Report on Form 8-K filed on February 6, 2023
10.61+
Exchange Agreement, dated as of February 3, 2023, by and among Faraday Future Intelligent Electric Inc. and the affiliates of FF Simplicity Ventures LLC party thereto
Exhibit 10.6 to the Current Report on Form 8-K filed on February 6, 2023
10.62
Consulting Services Agreement, dated as of March 6, 2023, by and between Faraday Future Intelligent Electric Inc. and FF Global Partners LLC
Exhibit 10.62 to the Annual Report on Form 10-K/A filed on August 21, 2023
10.63
Amendment No. 7 to Securities Purchase Agreement, dated March 23, 2023, by and among Faraday Future Intelligent Electric Inc., FF Simplicity Ventures LLC, Senyun International Ltd., and FF Prosperity Ventures LLC
Exhibit 10.1 to the Current Report on Form 8-K filed on March 23, 2023
10.64
Amendment No. 8 to Securities Purchase Agreement, dated May 8, 2023, by and between Faraday Future Intelligent Electric Inc. and Senyun International Ltd.
Exhibit 10.1 to the Current Report on Form 8-K filed on May 10, 2023
10.65
Amendment to ATW Notes and Warrants, dated as of May 9, 2023, by and among Faraday Future Intelligent Electric Inc., FF Simplicity Ventures LLC and FF Prosperity Ventures LLC.
Exhibit 10.2 to the Current Report on Form 8-K filed on May 10, 2023
10.66+
Securities Purchase Agreement, dated as of May 8, 2023, among Faraday Future Intelligent Electric Inc. and the purchasers from time to time party thereto.
Exhibit 10.3 to the Current Report on Form 8-K filed on May 10, 2023
10.67
Form of Unsecured Convertible Senior Promissory Note.
Exhibit 10.4 to the Current Report on Form 8-K filed on May 10, 2023
10.68
Equity Commitment Letter, dated as of May 8, 2023, by and among FF Global Partners Investment LLC, Metaverse Horizon Limited and Faraday Future Intelligent Electric Inc.
Exhibit 10.5 to the Current Report on Form 8-K filed on May 10, 2023
10.69
Equity Commitment Letter, dated as of May 8, 2023, by and among V W Investment Holding Limited, Lijun Jin and Faraday Future Intelligent Electric Inc.
Exhibit 10.6 to the Current Report on Form 8-K filed on May 10, 2023
10.70
Purchase Agreement, dated June 16, 2023, by and between the Company and Xuefeng Chen.
Exhibit 10.1 to the Current Report on Form 8-K filed on June 16, 2023
10.71
Amendment No. 1 to Securities Purchase Agreement, dated as of June 26, 2023, among Faraday Future Intelligent Electric Inc. and the Unsecured SPA Purchasers party thereto.
Exhibit 10.1 to the Current Report on Form 8-K filed on June 27, 2023
10.72
Joinder and Amendment Agreement, dated as of June 26, 2023, among Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.
Exhibit 10.2 to the Current Report on Form 8-K filed on June 27, 2023
10.73
Second Joinder and Amendment Agreement, dated as of June 26, 2023, among Faraday Future Intelligent Electric Inc. and Senyun International Ltd.
Exhibit 10.3 to the Current Report on Form 8-K filed on June 27, 2023
10.74
Form of FFVV Unsecured Convertible Senior Promissory Note.
Exhibit 10.4 to the Current Report on Form 8-K filed on June 27, 2023
10.75
Form of Senyun International Ltd. Unsecured Convertible Senior Promissory Note.
Exhibit 10.5 to the Current Report on Form 8-K filed on June 27, 2023
10.76#
Offer Letter, dated July 11, 2023.
Exhibit 10.1 to the Current Report on Form 8-K filed on July 11, 2023
10.77
Securities Purchase Agreement, dated as of August 4, 2023, among Faraday Future Intelligent Electric Inc. and Streeterville Capital, LLC.
Exhibit 10.1 to the Current Report on Form 8-K filed on August 7, 2023
10.78
Unsecured Convertible Senior Promissory Note, dated August 4, 2023, issued to Streeterville Capital, LLC.
Exhibit 10.2 to the Current Report on Form 8-K filed on August 7, 2023
10.79
Amendment No. 9 to Securities Purchase Agreement, dated August 4 2023, by and between Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.
Exhibit 10.3 to the Current Report on Form 8-K filed on August 7, 2023
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10
10.80
Amendment No. 10 to Securities Purchase Agreement, dated August 4, 2023, by and between Faraday Future Intelligent Electric Inc. and Senyun International Ltd.
Exhibit 10.4 to the Current Report on Form 8-K filed on August 7, 2023
10.81
Waiver and Amendment Agreement, dated as of August 4, 2023, among Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.
Exhibit 10.5 to the Current Report on Form 8-K filed on August 7, 2023
10.82
Form of Salary Deduction and Stock Purchase Agreement.
Exhibit 10.1 to the Current Report on Form 8-K filed on September 22, 2023
10.83
Amendment Agreement, dated as of September 21, 2023, among Faraday Future Intelligent Electric Inc. and FF Vitality Ventures LLC.
Exhibit 10.1 to the Current Report on Form 8-K filed on September 22, 2023
10.84
Unsecured Convertible Senior Promissory Note, dated September 21, 2023, issued to FF Vitality Ventures LLC.
Exhibit 10.2 to the Current Report on Form 8-K filed on September 22, 2023
10.85
Lease Agreement dated October 19, 2023
Exhibit 10.1 to the Current Report on Form 8-K filed on October 19, 2023
10.86
Guaranty of Lease dated October 19, 2023
Exhibit 10.2 to the Current Report on Form 8-K filed on October 19, 2023
10.87
Purchase Agreement, dated December 21, 2023, by and between the Company and Matthias Aydt.
Exhibit 10.1 to the Current Report on Form 8-K/A filed on December 28, 2023
10.88^
Settlement Agreement, dated March 11, 2024, by and between the Faraday Future Intelligent Electric Inc. and Palantir Technologies, Inc.
Exhibit 10.88 to the Annual Report on Form 10-K filed on May 28, 2024
10.89
Form of Waiver Agreement, dated August 2, 2024, by and between the Company and the holders party thereto.
Exhibit 10.1 to the Current Report on Form 8-K filed on August 2, 2024
10.89
Securities Purchase Agreement, dated September 5, 2024, by and among Faraday Future Intelligent Electric Inc. and the parties thereto
Exhibit 10.1 to the Current Report on Form 8-K filed on September 6, 2024
10.90
Form of Security Agreement
Exhibit 10.2 to the Current Report on Form 8-K filed on September 6, 2024
10.91
Subordination and Intercreditor Agreement, dated September 5, 2024, by and among Faraday Future Intelligent Electric Inc. and the parties thereto
Exhibit 10.3 to the Current Report on Form 8-K filed on September 6, 2024
10.92
Offer Letter by and between Faraday Future Intelligent Electric Inc. and Koti Meka, dated September 17, 2024
Exhibit 10.1 to the Current Report on Form 8-K filed on September 18, 2024
21.1
Subsidiaries of the Registrant
Exhibit 21.1 to the Annual Report on Form 10-K filed on May 28, 2024
23.1*
Consent of Mazars USA LLP, independent registered public accounting firm of the Company
23.2*
Consent of Pryor Cashman LLP (included in Exhibit 5.1)
97.1
Clawback Policy
Exhibit 97.1 to the Annual Report on Form 10-K filed on May 28, 2024
107*
Filing Fee Table
*
Filed
herewith.
+
The schedules and exhibits
to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit
will be furnished to the SEC upon request.
#
Indicates management contract
or compensatory plan or arrangement.
^
Portions of this exhibit have
been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K
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Item 17. Undertakings.
The undersigned registrant
hereby undertakes:
A.
To file, during any period in
which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by section 10(a)(3) of the Securities Act;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
B.
That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
C.
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
D.
That, for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
E.
That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii)
Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv)
Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
F.
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements
of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Los Angeles, State of California, on November 1, 2024.
FARADAY FUTURE INTELLIGENT ELECTRIC INC.
By:
/s/ Matthias Aydt
Matthias Aydt
Global Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS,
that each of the undersigned constitutes and appoints Matthias Aydt, the Chief Executive Officer, his or her true and lawful attorney-in-fact
and agent, with full power of substitution and revocation, for him or her and in his or her name, place and stead, in any and all capacities,
to execute any or all amendments including any post-effective amendments and supplements to this Registration Statement, and any additional
Registration Statement filed pursuant to Rule 462(b), and to file the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and
perform each and every act and thing requisite and necessary to be done, as fully to all intents and purposes as he or she might or could
do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully
do or cause to be done by virtue hereof.
Pursuant to the requirements
of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons in the capacities
and on the dates indicated.
Name
Title
Date
/s/ Matthias Aydt
Global Chief Executive Officer and Director
November 1, 2024
Matthias Aydt
(principal executive officer)
/s/ Koti Meka
Chief Financial Officer (principal financial and accounting officer)
November 1, 2024
Koti Meka
/s/ Chui Tin Mok
Director
November 1, 2024
Chui Tin Mok
/s/ Chad Chen
Director
November 1, 2024
Chad Chen
/s/ Jie Sheng
Director
November 1, 2024
Jie Sheng
/s/ Lev Peker
Director
November 1, 2024
Lev Peker
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