Risk Factors Update Summary

• Our revenue from capitation agreements with government payors increased from 99.7% to 99.9% for the years ended June 30, 2023, and 2024. This change might result in significant revenue growth.
• We have faced ongoing macroeconomic challenges, including labor shortages and inflation, impacting our business operations. High inflation has increased costs, affecting profitability and operational efficiency.
• A well-publicized cyberattack on Change Healthcare caused significant delays in payments to providers. Future attacks could materially impact our business.
• Our participant census decreased from approximately 6,850 as of June 30, 2021, to 6,400 as of June 30, 2023, due to enrollment sanctions. This decline could adversely affect revenue growth.
• Our total outstanding debt decreased from $67 million to $63 million under the Term Loan Facility. This change might result in lower interest expenses.
• Labor costs have increased significantly due to California's SB 525, which raises minimum wage for healthcare workers. This could limit our ability to manage operational costs effectively.
• New laws in California and other states could limit our ability to grow through acquisitions. This may adversely affect our business expansion strategies.
• We are currently subject to civil investigative demands and stockholder lawsuits, which could lead to significant cash settlements and harm our reputation and financial condition.
• Our common stock has fluctuated significantly, ranging from a high of $26.04 to a low of $3.50 since our IPO. This volatility could impact investor confidence.
• Our share repurchase program may expose us to risks due to thin trading volumes, affecting stock price stability and investor confidence.