CREATIVE REALITIES, INC.

Item 1A. Risk Factors

There have been no material changes to the risk factors described in Part I, Item 1A, Risk Factors of our Form 10-K for the fiscal year ended December 31, 2024, except for the followAs a smaller reporting risk factor for which our investors should be aware:

Changes in U.S. and foreign government policy, includingcompany, we are not required to provide the imposition of or increases in tariffs and changes to existing trade agreements, could have a material adnformation required by this Item; howeverse effect on global economic conditions, our ability to raise capital , the discussion the capital markets, and of our business, results of operations, prospects and financial condition.

The current Presidential Administrat and operation has proposed changes to U.S. and foreign government policy, including, but not limited to, changes to existing trade agreements, imposing significant increases in tariffs on goods imported into ts should be read together with the U.S., particularly those manufactured in China, and greater restrictions on free trade generally. This has led to, among other things, adverse responses by foreign governments to U.S. trade policies. The implementation of tariffs is evolving. More tariffs may be increased or added in the future, which may significantly reduce global trade and trade between the impacted nations and the United States. As of the date of this Risk Factors set forth in our Annual Report on Form 10-K filed with the SEC on March 14, 2025, our Quarterly Report on Form 10-Q, discussions remain ongoing in respect of certain trade restrictions and tariffs on imports from numerous countries, including China filed with the SEC on May 14, 2025, as well as retaliatory tariffs enacted in response to such actions.

In light of these events, there continues to exist significant uncertainty about the future relationship between the U.S. and other countries nd subsequent filings made with respect to sthe SEC. Such trade policies, treaties,risks and tariffs. These developments, or the perception that any of them could occur, may uncertainties have a material adverse effect on global economic conditions and the stability of global financial markets. Any of these factors could have an adverse ethe potential to affect on our ability to raise capital on the capital markets in the future on terms acceptable to us, if at all.

Certain hardware that we procure and resell to our customers is supplied from vendors internationally, including certain media players from Taiwan and digital displays and mounts from Mexico and Vietnam. While we are currently unable to determine the aggregate impact of these tariffs, they could have an adverse impact on our business, resbusiness, financial condition, results of operations, prospects and financial condition, and if we are unable to pass through the tariff costs via price increases to our customers, it would likely increase our cost of salescash flow, strategies or prospects in a material and, as a result, decrea adverse our gross margins, operating income and net income.

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