Risk Factors Update Summary

• Climate change risks are increasingly scrutinized, potentially leading to new regulations and increased compliance costs. This could significantly impact our operations and financial decisions.
• We have identified material weaknesses in our system of internal controls as of June 30, 2024. Failure to remediate may adversely impact financial reporting accuracy.
• The COVID-19 pandemic has adversely impacted backlog conversion to revenue, causing delays in deliveries and installations.
• Inflationary pressures beginning in fiscal year 2023 have resulted in rising costs for materials, including increased logistics and duties costs, adversely affecting gross margins.
• Sales in China decreased due to COVID-19 restrictions, affecting our operations and joint ventures.
• Reduced budgets and lower capital deployment priority for radiotherapy equipment have negatively impacted revenue during fiscal year 2024, expected to continue through fiscal year 2026.
• The military conflict in Ukraine has led to unprecedented sanctions against Russia, impacting our ability to ship parts and service our installed base in affected regions.
• Customer contracts with extended payment terms of more than one year amounted to approximately 63% of our total accounts receivable balance as of June 30, 2024.