Risk Factors Update Summary

• Added risks related to the Valence Transaction, highlighting potential integration challenges and unforeseen expenses. This change might result in increased costs and delays in realizing benefits.
• Emphasized the importance of effective information systems and software, including potential disruptions, delays, and expenses in maintaining and improving these critical systems. This change could lead to operational interruptions and decreased sales.
• Highlighted the vulnerability of information technology to security breaches, theft, and interruptions, emphasizing potential impacts on business operations. This change could compromise business operations and reputation.
• Disclosed new SEC rules requiring disclosure of cybersecurity incidents, assessment of risks, and potential impacts on financial condition. This change may lead to increased costs and resource allocation to comply with regulations.
• Increased cash and cash equivalents from $84 million to $221 million, indicating improved liquidity. This change enhances the company's financial flexibility and resilience.
• Accumulated deficit increased from $934 million to $1.5 billion, reflecting continued net losses. This change signals ongoing financial challenges and the need for sustainable profitability.
• Replaced "U.S." with "domestic and global" to reflect global business operations, highlighting exposure to macroeconomic conditions worldwide. This change underscores the company's diversified revenue sources and risks.