What changed in EASTMAN KODAK CO's 10-K — 2023 vs 2024

Print The Print segment is comprised of five lines of business: the Prepress Solutions business, the PROSPER business, the Software business, the Electrophotographic Printing Solutions business and the Versamark business.

The term of the supply agreement expires in the third quarter of 2024. • PROSPER: • The PROSPER business product offerings include PROSPER press systems and PROSPER components, based on KODAK’s Continuous Inkjet Technologies KODAK Stream and ULTRASTREAM, along with KODACHROME and KODAK EKTACOLOR Inks and KODAK OPTIMAX Primers.

The film and chemicals business uses many raw materials, including silver, from a broad range of suppliers.

There is no individual patent, or group of patents, whose expiration is expected to have a material impact on Kodak's results of operations.

Kodak continues to develop in-house life cycle assessment and carbon footprint capabilities, which will help identify where the environmental footprint of Kodak’s products can be further reduced. 7 Table of Contents HUMAN CAPITAL As of the end of 2023, Kodak employed approximately 4,000 employees across 34 countries.

Kodak strives to create a culture of inclusion, reduce bias in its talent practices, and invest in and engage with its communities.

Kodak conducts diversity and code of conduct trainings with employees and managers to promote an inclusive and diverse workplace, where all individuals feel respected and part of a team regardless of their race, national origin, ethnicity, gender, age, religion, disability, sexual orientation or gender identity.

Kodak has achieved a score of 100% on the Human Rights Campaign Foundation’s Corporate Equality Index for over two decades and is included on its list of “Best Places to Work for LGBTQ+ Equality”. Health, Wellness and Safety Kodak is dedicated to driving continuous safety improvement across its operations.

The risk factors described below, if realized, could have a material adverse effect on Kodak’s business, financial condition, and results of operations and make an investment in our securities risky.

You should carefully consider these risks and uncertainties in addition to other information contained in this Annual Report on Form 10-K, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) section and the consolidated financial statements and related notes. Summary of Risk Factors The following is a summary of the risk factors Kodak faces.

The list is not exhaustive, and investors should read this “Risk Factors” section in full.

Some of the risks Kodak faces include: 8 Table of Contents Summary of Risks Related to Kodak ’ s Business and Operations ● Kodak ’ s business, financial condition and results of operations have been and may continue to be adversely affected by global economic and geopolitical conditions, including wars and other hostilities, medical epidemics, inflation, rising interest rates, and slowdowns in customer demand. ● The ability to generate positive operating cash flows will be necessary for Kodak to continue to operate our business. ● If Kodak is unable to continue successful development, funding, and commercialization of products in businesses upon which we are focused or do so within an acceptable timeframe, Kodak ’ s financial performance could be adversely affected. ● If Kodak is unable to successfully or timely implement cost structure reductions, Kodak ’ s business, financial condition and results of operations could be negatively affected. ● The loss of one or more of Kodak ’ s key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business. ● If Kodak cannot effectively anticipate or rapidly respond to technology trends and develop and market new products to respond to changing customer needs and preferences, our revenue, earnings and cash flow could be adversely affected. ● Kodak ’ s investment in new products and services may not achieve expected returns. ● If Kodak does not manage product reliability, yield and quality, our product launch plans may be delayed, our financial results may be adversely impacted, and our reputation may be harmed. ● Aging manufacturing facilities and equipment could lead to failures of equipment and systems. ● I f Kodak fails to manage distribution of our products and services properly, our revenue, gross margins and earnings could be adversely impacted. ● Cyber-attacks or other data security incidents that disrupt Kodak ’ s operations or result in the breach or other compromise of proprietary of confidential information about our workforce, our customers, or other third parties could disrupt our business, harm our reputation, cause us to lose customers, and expose us to costly regulatory enforcement and litigation, any of which could lead to material adverse effects on Kodak ’ s results of operations, business and financial condition. ● If Kodak cannot protect the intellectual property rights on which our business depends, or if third parties assert that we violate their intellectual property rights, our revenue, earnings, expenses and liquidity may be adversely impacted. ● Kodak ’ s inability to effectively complete and manage strategic transactions could adversely impact our business performance, including our financial results. ● Failure to successfully manage the development and improvement of IT systems could diminish or delay any anticipated efficiencies and operational improvements, and our operations and business could be disrupted. ● If the reputation of Kodak or its brand erodes significantly, it could have a material impact on our financial results. ● Increased competition, including price competition, could have a material adverse impact on Kodak ’ s revenue, gross margins, cash flow and market share. ● Business disruptions could seriously harm Kodak ’ s future revenue and financial condition. ● Kodak relies on third-party suppliers and service providers to support our manufacturing, logistics, and business operations and faces the risks associated with reliance on external business partners. 9 Table of Contents ● Due to the nature of the products we sell and Kodak ’ s worldwide distribution, Kodak is exposed to fluctuations in foreign currency exchange rates, interest rates and commodity costs which, together with tariffs that may be imposed, may adversely impact our results of operations and financial position. ● Kodak faces additional costs and risks associated with our worldwide business operations. ● An inability to provide competitive financing arrangements to Kodak ’ s customers or extension of credit to customers whose creditworthiness deteriorates could adversely impact our revenue, profitability and financial position.

Summary of Risks Related to Kodak ’ s Indebtedness and Access to Capital Markets ● The Company ’ s substantial monetary obligations require a portion of our cash flow to be used to fund other obligations rather than be invested in the business and could adversely affect our ability to fund our operations. ● The availability of letters of credit under the Amended and Restated Letter of Credit Facility Agreement ("Amended and Restated L/C Facility Agreement") is limited by the amount of cash on deposit with the administrative agent . ● Kodak may desire additional capital funding and such capital may not be available to us and/or may be limited. ● There can be no assurance the Company will be able to comply with the terms of our various credit facilitie s. ● The current non-investment grade status and Kodak ’ s financial condition may adversely impact Kodak ’ s commercial operations, increase our liquidity requirements and increase the cost of refinancing opportunities.

We may not have adequate liquidity to post required amounts of additional collateral.

Summary of Legal, Regulatory and Compliance Risks ● Legal proceedings and governmental investigations could have a material adverse effect on our business operations and prospects, reputation, financial condition, results of operations and stock price. ● Our business and financial condition can be impaired by improper conduct by any of our employees, agents, or business partners. ● Failure to comply with privacy, data protection and cyber security laws and regulations could have a materially adverse effect on Kodak ’ s reputation, results of operations or financial condition. ● Failure to comply with environmental laws and regulations or liabilities imposed as a result of such laws and regulations could have an adverse effect on our business, results of operations and financial condition. ● If Kodak fails to maintain effective internal controls over financial reporting, we may not be able to accurately report our financial results, which could have a material adverse effect on Kodak ’ s operations, investor confidence in our business and the trading prices of our securities. ● Kodak may have additional tax liabilities. ● Kodak ’ s future pension and other postretirement benefit plan costs and required level of contributions could be unfavorably impacted by changes in actuarial assumptions, market performance of plan assets and obligations imposed by legislation or pension authorities which could adversely affect our financial position, results of operations, and cash flow. ● Kodak may be required to recognize impairments in the value of our trade name and/or other long-lived assets which could adversely affect our results of operations. 10 Table of Contents Summary of Risks Related to the Company ’ s Common Stock ● The conversion of the Series B Preferred Stock and Series C Preferred Stock into shares of the Company ’ s common stock may dilute the value for the current holders of the Company ’ s common stock. ● The holder of the Series C Preferred Stock may influence the composition of the Board and future actions taken by the Board. ● The resale of the Company ’ s common stock may adversely affect the price of our common stock. ● The resale of a significant portion of the Company ’ s securities or certain accumulations or transfers of the Company ’ s securities could result in a change of control of the Company and the loss of favorable tax attributes. ● The Company ’ s stock price has been and may continue to be volatile.

Risks Related to Kodak ’ s Business and Operations Kodak ’ s business, financial condition and results of operations have been and may continue to be adversely affected by global economic and geopolitical conditions, including the impact of wars and other hostilities, medical epidemics, inflation, rising interest rates, and slowdowns in customer demand.

Worsening global economic conditions, including those associated with the war in Ukraine, the conflicts involving Israel, medical epidemics, heightened levels of inflation and rising interest rates, could have material adverse impacts on Kodak’s business, cash flows, employees, suppliers, customers, and others’ ability to conduct business, including increased operational costs, extended business shutdowns, reduced operations, restrictions or interruptions in shipping, manufacturing or installing products, reduced consumer demand and the reduced ability of our customers to make payments.

Accounts receivable and past due accounts could increase due to a decline in our customers’ ability to pay, and our liquidity, including our ability to use credit lines, could be negatively impacted by failures of financial instrument counterparties, including banks and other financial institutions.

Due to the global economic impact of the war in Ukraine, the conflicts involving Israel, medical epidemics, heightened levels of inflation and rising interest rates, we have and may continue to experience additional operating costs due to increased cost of energy, shipping, raw materials and labor, limited availability of raw materials and component products, delays in shipping and transportation and a decline in customer demand.

Kodak’s products contain aluminum, silver, petroleum-based or other commodity-based raw materials, the prices of which have significantly increased, and could continue to increase. Ongoing disruptions in our supply chain could affect our ability to continue to meet customer demand for our products and services.

Continued or worsening operational and global economic conditions could materially affect our business, financial condition or results of operations. The extent to which the global economic conditions affect our results will depend on future developments, which are highly uncertain and cannot be predicted.

This includes new information which may emerge concerning the continued impact of the war in Ukraine and the conflicts involving Israel, any escalation thereof, and the impact of the international response thereto.

For additional discussion regarding known impacts of the war in Ukraine, the conflicts involving Israel and the global economic environment, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations“ in this Annual Report on Form 10-K. 11 Table of Contents The ability to generate positive operating cash flows will be necessary for Kodak to continue to operate our business.

Continued investment, capital needs, restructuring payments, dividends and servicing Kodak’s debt require a significant amount of cash and we may not be able to generate sufficient cash to fund these activities, which could adversely affect our business, financial condition, and results of operations.

Kodak has not consistently generated positive operating cash flows without supplementing such cash flow from operations with financing and monetization transactions over the past several years. Kodak's businesses may not grow or continue to generate the same or enough cash flow.

It may take Kodak longer than planned to generate consistent positive cash flow from operations, which would have a material adverse effect on our liquidity and financial position.

If Kodak is unable to generate positive cash flow from operations for an extended period in the future or to adequately supplement such cash flow from operations, our ability to continue as a going concern could be impaired or limited. Kodak’s ability to generate cash is subject to general economic, financial, competitive, legal, regulatory and other factors beyond our control.

There are no assurances: • Kodak’s businesses will generate sufficient cash flow from operations; • Kodak will be able to repatriate or move cash to locations where and when it is needed; • Kodak will meet all conditions associated with borrowings or issuing letters of credit under the Amended and Restated L/C Facility Agreement; • Kodak will realize cost savings, earnings growth or operating improvements resulting from the execution of our business and restructuring plan; • Kodak will not have to expend cash defending lawsuits regardless of the merits of any claims raised; or • Future sources of funding will be available in amounts sufficient to enable funding of our liquidity needs.

Kodak’s business may not generate cash flow in an amount sufficient to enable us to pay the principal or mandatory redemption price of, or interest and dividends on, the senior secured first lien term loans (the “Term Loans”) borrowed under the Amended and Restated Credit Agreement, dated June 30, 2023, by and among the Company, the lenders party thereto (the “Term Loan Lenders”), and Alter Domus (US) LLC, as Administrative Agent (the “Term Loan Credit Agreement”), the 4.0% Series B Convertible Preferred Stock of the Company (the “Series B Preferred Stock”), and the 5.0% Series C Convertible Preferred Stock of the Company (the “Series C Preferred Stock”), or to fund Kodak’s other liquidity needs, including working capital, capital expenditures, product development efforts, restructuring actions, collateral requirements, strategic acquisitions, investments and alliances and other general corporate requirements.

If Kodak cannot fund our liquidity needs, we will have to take actions, such as reducing or delaying capital expenditures, product development efforts, strategic acquisitions, and investments and alliances; selling additional assets; restructuring or refinancing the Company’s debt; or seeking additional equity capital.

Such actions could increase the Company’s debt, negatively impact customer confidence in our ability to provide products and services, reduce our ability to raise additional capital and delay sustained profitability.

There are no assurances any of these actions could, if necessary, be taken on commercially reasonable terms, or at all, or they would satisfy Kodak’s liquidity needs. 12 Table of Contents If Kodak is unable to continue successful development, funding, and commercialization of products in businesses upon which we are focused or do so within an acceptable timeframe, Kodak ’ s financial performance could be adversely affected.

Kodak has focused our investments in print, advanced materials, and chemicals. These investment areas include digital printing using commercial inkjet, high resolution functional printing for electronic and optical solutions, specialty chemicals (including pharmaceutical and reagent products), coated materials used in electric vehicle/energy storage batteries and smart materials for light control and 3D printing.

Each of these businesses requires additional investment and may not be successful. The introduction of successful innovative products at market competitive prices and the achievement of scale are necessary for Kodak to grow these businesses, improve margins and achieve our financial objectives.

Additionally, Kodak’s strategy is based on a number of factors and assumptions, some of which are not within our control, such as the actions of third parties.

There can be no assurance that we will be able to successfully execute all or any elements of our strategy, or that Kodak’s ability to successfully execute our strategy will be unaffected by external factors.

If Kodak is unsuccessful in growing our investment businesses as planned, or perceiving the needs of our target customers, Kodak’s results of operations, financial condition and liquidity could be adversely affected. If Kodak is unable to successfully or timely implement cost structure reductions, Kodak ’ s business, financial condition and results of operations could be negatively affected.

Kodak continues to rationalize our workforce and streamline operations to a leaner and more focused organization aligned with our business initiatives. There are no assurances that workforce reductions, restructuring efforts and other cost-saving measures will be successful or the cost savings or other beneficial results will be consistent with expectations.

The extent of change across our organizational structure, senior leadership, culture, functional alignment, outsourcing and other areas poses risks in the form of personnel capacity constraints and institutional knowledge loss that could lead to diminished results, compliance issues, and harm to our reputation.

If workforce reductions, restructuring efforts and other cost-saving measures are not effectively managed, Kodak may also experience lost sales, harm to our business and customer relationships, adverse effects on employee morale, loss of key employees or other retention issues, product delays and increased costs.

Finally, the timing and implementation of workforce reductions may require compliance with laws and regulations, including local labor laws, and the failure to comply with such requirements may result in damages, fines and penalties. Any of these outcomes could negatively impact Kodak’s business, financial condition, and results of operations.

The loss of one or more of Kodak ’ s key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business. In order to be successful, Kodak must continue to attract, retain and motivate executives and other key employees across the Company.

Hiring and retaining qualified executives, research and engineering professionals, and qualified sales representatives, particularly in Kodak’s targeted growth markets, is critical to our future. The impact of the COVID-19 pandemic has resulted in increased attrition and significant shifts in the labor market and employee expectations.

Given that our business is highly technical and specialized, it would be difficult to replace the loss of any of our key employees. Kodak may be unable to attract and retain highly qualified management and employees, particularly if we do not offer employment terms competitive with the rest of the market.