Risk Factors Update Summary

• Threat-actors could disable systems via ransomware, impairing business operations, including sales compensation processing. This poses a significant operational risk.
• The FTC sent notices of penalty offense to nearly 700 companies, including us, regarding product claims. This could result in significant civil penalties if not complied with.
• Acquisition activity may heighten risks related to cybersecurity, diversity, equity, and inclusion matters.
• In 2023, approximately 74% of sales occurred outside the U.S., down from 76% in 2022.
• The FTC won a suit against entities involved in illegal business models, impacting multi-level marketing.
• Laws in California and the EU require public disclosure on diversity and inclusion, impacting compliance.
• We acquired Beauty Biosciences, LLC for $75.0 million in June 2023, impacting our financials.
• The FTC issued notices to nearly 700 companies regarding product claims substantiation.
• Stock price decreased from $48 to $18 per share, with fluctuations between $16 and $56.
• The acquisition of LifeDNA, Inc. for $4.0 million in April 2023 may affect financials.
• The FTC issued letters to companies regarding practices, potentially affecting compliance and penalties.