Risk Factors Update Summary

• Legislative developments in privacy laws may lead to increased costs and fines for non-compliance.
• Added risks related to wars and geopolitical tensions, specifically the Russian invasion of Ukraine. This could impact operations in Russia, with operations there representing approximately 6% of total revenue and $12 million in net income in 2023.
• Failure to comply with privacy laws could result in fines and penalties for the company.
• Increased focus on risks related to significant movements in foreign currency exchange rates. Approximately 78% of sales were derived from operations outside the U.S. in 2023, exposing the company to fluctuations that could materially affect financial results.
• Changes in cost structure, management, and financing may occur as a result of separation agreements.
• Added risks related to product liability lawsuits, highlighting potential harm to business due to component failures, design defects, or inadequate disclosure. Insufficient insurance coverage could adversely affect financial condition and results of operations.
• Indemnification obligations to Enovis could significantly impact the company's financial health.
• Mentioned the impact of acquisitions on financial condition and results of operations, with expectations to complete more acquisitions in the following years. The failure to integrate acquired businesses successfully could have an adverse effect.
• Stock price volatility may occur due to market fluctuations and future equity issuances.
• Highlighted risks related to compliance with export/import control laws and economic sanctions, including potential impacts on business operations in countries subject to sanctions and embargoes.
• Quarterly cash dividend increased from $0.05 to $0.06 per share for the first quarter of 2024.
• Noted the potential impact of changes in tax laws and regulations, including the adoption of the OECD's global minimum corporate tax rules, on earnings and cash flow. The uncertainty of these changes could adversely affect financial results.
• Added risks related to cybersecurity incidents, emphasizing the possibility of disruptions or breaches in the company's information technology systems. Any severe incidents could materially affect business, financial condition, and results of operations.