Risk Factors Update Summary

• Restated financial statements due to a $23 million income tax provision correction, impacting balance sheet items.
• The company increased its equity stake in LC Healthcare Fund I, L. P. from 2,152 to 11,805.
• Material cash requirements include an accumulated deficit of $40.6 million and the need for additional funding.
• Net loss increased by $40.7 million, or 15%, driven by a $38.6 million increase in operating expenses.
• Gain on disposal of property and equipment of $0.7 million was recognized from the sale of office premises.
• Legal and professional fees surged from $1,265,866 in 2022 to $13,601,274 in 2023.
• The company settled the forward share purchase liability with a loss of $378,895.
• Correction of income tax liability error led to a $23 million reduction in the accumulated deficit.
• Cash balance decreased from $45.9 million to $1.9 million, impacting working capital and liquidity.
• The company incurred a net loss of $49,206,019 in 2023, compared to $44,520,635 in 2022.
• The company sold an office premise for $6.13 million, a significant change from the previous year.
• The number of RSUs granted increased from 5,000,000 to 5,000,000 in 2023.
• Rental income decreased by $0.08 million, or 24.13%, due to the sale of office premises.
• Accounts receivable increased from $3,094,708 to $4,064,861, with related parties increasing significantly.
• Cash and cash equivalents increased significantly from $85,955 to $129,660.
• The number of ordinary shares outstanding increased from 58,376,985 to 68,661,998 in 2023.
• Income tax expense increased by $2 million, or 129%, primarily due to the provision related to capital gain.
• Financing activities resulted in a net cash outflow of $1.04 million, mainly from advances and borrowings.
• Restricted cash was added as a new line item with a value of $15,356,580.
• Significant doubt on the ability to continue as a going concern due to a $49.2 million net loss and $42.3 million net cash outflows.
• Commission expenses rose significantly from $18,823,458 in 2022 to $37,287,519 in 2023.
• Loans receivable decreased from $1,589,871 to $1,604,302, with a decrease in the allowance for expected credit losses.
• Legal proceedings resulted in a demand to pay $1,383,424 to settle outstanding charges.
• Total cash, cash equivalents, and restricted cash decreased from $51,294,072 in 2022 to $18,678,065 in 2023.
• Series of individually immaterial business acquisitions were updated for 2023.
• The company obtained a mortgage loan of $1,793,001 in February 2023, repayable in February 2024.
• The net loss increased from $7,883,739 in 2022 to $13,810,391 in 2023.
• Personnel and benefit expenses increased from $21,928,504 in 2022 to $27,217,822 in 2023.
• Share-based compensation expense increased from $2,088,725 in 2022 to $11,235,026 in 2023.
• The company issued 946,100 ordinary shares to directors and officers under the Share Award Scheme.
• Net loss per share decreased from ($0.79) in 2022 to ($0.75) in 2023.
• The company entered into a private placement, receiving gross proceeds of $1,665,850 in exchange for 2,643,300 ordinary shares.
• The company settled a debt of $12,593,384 with the holding company, treating it as additional paid-in capital.