Risk Factors Update Summary

• Addition of conflicts in Gaza and Hamas, and Russia's annexation of Crimea, impacting market disruptions.
• Biotronik sent a Notice of Rescission and Termination, alleging damages of $38.0 million. This change indicates potential legal and financial risks.
• Addition of new risk factors related to maintaining compliance with Nasdaq's listing requirements, with the stock price not meeting the $1.00 minimum bid price requirement.
• Added environmental laws applicable to operations. This change might result in increased compliance costs.
• The company is now solely dependent on Medtronic for revenue, with no sales or marketing capabilities of its own.
• Inclusion of a new risk factor regarding the termination of Bi-Lateral Distribution Agreements with Biotronik, alleging damages of $38.0 million.
• The company incurred $18.6 million in restructuring charges as of December 31, 2023, with estimated total charges of $21.0 to $32.0 million.
• Reduction in workforce of approximately 160 employees. This change might result in cost savings.
• Leadership changes with the departure of key executives and appointment of a new CEO.
• Currently spending resources to comply with evolving laws, regulations, and standards, may increase expenses.
• Loss of strategic partner Medtronic could eliminate revenue. This change highlights significant business dependency.
• Introduction of exclusive-forum provisions in the amended and restated bylaws, affecting legal actions and potentially reducing the value of stock.
• The workforce reduction involved approximately 160 employees, representing about 65% of the total workforce.
• Transitioning from intending to invest to planning to spend resources on compliance efforts.
• Initiated retention arrangements with certain employees. This change might indicate efforts to retain key talent.
• Increase in credit agreement liquidity covenant from $5 million to $10 million, impacting financial flexibility.
• Increase in total employees from 225 to 233. This change might indicate company growth.
• Hiring additional personnel to support future operations, increasing costs and expenses.
• The company completed the sale of its left-heart access product portfolio to Medtronic for upfront cash consideration of $50.0 million.
• Paid $0.7 million of estimated $2.0-3.0 million in cash expenditures for severance. This change indicates ongoing restructuring costs.
• Disclosure of the transfer of securities from The Nasdaq Global Market to The Nasdaq Capital Market due to non-compliance with the minimum bid price requirement.
• Reduction in net loss from $117.7 million to $11.6 million, showing improved financial performance.
• Mention of the wind-down of mapping and ablation businesses leading to legal proceedings and arbitration demand from Biotronik, seeking $38.0 million in damages.
• The company no longer manufactures or distributes its AcQMap Mapping System and other related products following the restructuring.
• Strategic realignment to focus on left-heart access distribution, involving workforce reduction and streamlining operations.
• Indication of the potential delisting of common stock from Nasdaq and trading in the over-the-counter market, impacting liquidity and market price.
• The company achieved the Transfer Earnout on December 31, 2022, and received $17.0 million from Medtronic on January 14, 2023.
• Potential need to raise additional capital due to continued net losses and negative cash flows.
• The company's patent portfolio increased to 42 solely owned or exclusively licensed U.S. patents and 21 pending U.S. patent applications as of December 31, 2023.
• Regulatory compliance complexities and uncertainties, including potential enforcement actions by the FDA.
• Inclusion of risks related to fluctuations in operating results, unanticipated safety concerns, and failure to meet financial projections.