Risk Factors Update Summary

• Cybersecurity risks: Uncertainty in implementing effective cybersecurity measures may lead to system vulnerabilities.
• Membership growth in Florida was temporarily halted in 2023 due to exceeding the threshold.
• Leadership reliance: Success heavily depends on key personnel, including Co-Founders and senior management.
• The company incurred net losses of $609.6 million in 2022, an increase from $270.6 million in 2021.
• Intellectual property protection: Risks associated with unauthorized use and infringement of intellectual property rights.
• The company aims to achieve profitability on a total company Adjusted EBITDA basis in 2024.
• Financial controls: Material weakness in internal financial controls may impact financial reporting accuracy.
• The company may make additional investments to expand business lines and offerings, potentially impacting financial position.
• Ownership change impact: Potential limitations on utilizing NOLs due to ownership changes could affect future taxable income.
• The company relies on a limited number of in-network providers, and the loss of any could adversely impact revenue.
• Regulatory scrutiny: Increasing ESG scrutiny may result in higher costs and impact stakeholder perceptions.
• The company faces risks associated with cybersecurity threats and potential data loss, impacting IT systems.
• Revenue delays: Delays in premium receipts due to regulatory restrictions could adversely affect cash flows.
• The company may experience delays in Medicaid redeterminations, affecting ACA marketplace enrollments.