Risk Factors Update Summary

• Added $3.2 billion accumulated deficit and $204.1 million net loss for year ended December 31, 2023.
• Laws and regulations related to communications with consumers have been expanded to include the CAN-SPAM Act and TCPA, potentially leading to liability and harm to reputation.
• The company faces risks from global climate change impacting supply chain, raw materials, and operations.
• Changes in regulations regarding LDTs could impact the development and commercialization of tests.
• Potential legal and regulatory changes may increase costs and disrupt development, manufacturing, and distribution.
• Increased total employees from 4,833 in 2020 to 6,278 in 2021 and 6,300 in 2022.
• Non-compliance with GDPR and EU privacy regulations could result in fines, penalties, and orders to stop non-compliant activities.
• The company's total indebtedness increased from $2.26 billion to $2.39 billion, including convertible senior notes due in 2025, 2027, and 2028.
• Risks associated with billing complexities and compliance with federal and state laws could impact revenue.
• Increased reliance on third parties for conducting studies may impact the validity of study data and regulatory approvals.
• The balance sheet now shows goodwill and intangible assets representing 66% of total assets at December 31, 2023, down from 69% in 2022.
• The company's success relies on developing new products and services, with significant expenses expected for research and development efforts.
• Adoption of AI technologies poses risks due to flawed algorithms, biased data, and regulatory challenges.
• Emphasized reliance on Cologuard and Precision Oncology tests for revenue generation.
• Compliance with complex healthcare regulations and laws is crucial to avoid penalties and disruptions.
• The company's stock price varied between a high of $84.46, indicating continued volatility subject to market and other factors.
• Highlighted risks of labor shortages, turnover, and labor cost increases affecting operations.
• Uncertainties in legal and regulatory requirements for AI technologies may require significant resources for compliance.
• Noted potential risks and challenges related to international expansion and operations.
• Mentioned the impact of inflation, high interest rates, and economic uncertainties on profitability.
• Discussed the volatility of capital markets and its potential adverse effects on operations.