Risk Factors Update Summary

• The Company raised capital in 2023 and may require additional capital, with losses decreasing from $638 million to $1.3 billion.
• Expanded into ACO REACH model targeting Medicare FFS market, with 59.5% stock ownership change.
• A net loss of $638 million in 2022 increased to $1.3 billion in 2023, impacting financial stability.
• The Company's restructuring plan aims to reduce capital needs and operating expenses to drive positive cash flow.
• Material weakness in internal controls identified, remediated, and expected to be resolved in 2023.
• The Company infused additional cash to satisfy statutory capital requirements, including $1.5 billion in risk adjustment obligations.
• The Company may not meet certain covenants under the Credit Agreement, risking financial obligations.
• Increased indebtedness from $46 million to $66 million, requiring additional liquidity and potential financing challenges.
• The Company entered into a New Credit Agreement in 2023, borrowing $66.4 million by December 31, 2023.
• The Company exited the commercial health care business in 2022 and restructured its workforce.