Risk Factors Update Summary

• Beginning January 1, 2025, CMS will use private payor pricing to revise payment rates.
• Revenue from Natera decreased from 43% to 41% of total revenue in 2023.
• The statutory phase-in of payment reductions extended through 2026 with a 15% reduction cap.
• Accumulated deficit increased from $360.4 million to $469 million as of December 31, 2023.
• The UKCA mark will be required from January 1, 2025, to place devices in Great Britain.
• A new contract with the VA MVP was received with an initial task order value of up to $10.7 million.
• Failure to report environmental emissions could result in investor reluctance and increased costs.
• The VA MVP's contracted orders in 2023 had values of $7.5 million, down from $10 million in 2022.
• AB 1305 and proposed SEC rules may increase compliance and reporting costs significantly.
• Workforce reductions affecting nearly 50% of employees were implemented in the first and fourth quarters of 2023.
• Legal proceedings regarding intellectual property rights may result in substantial costs.
• The company relocated its corporate headquarters and all laboratory facilities to Fremont, California.
• Geopolitical conflicts, including the Russia-Ukraine war, may impact financial condition and operations.
• The company may need to make additional investments to further scale infrastructure, including expanding laboratory capacity.