Risk Factors Update Summary

• The European Union's Health Technology Assessment (HTA) regulation will apply from January 2025 onwards.
• The Department of Health and Human Services (HHS) published a final rule allowing drug importation.
• Merck & Co., Inc., filed a lawsuit against HHS and CMS regarding the IRA's Drug Price Negotiation Program.
• Net income increased significantly from $26.6 million in 2022 to $40.7 million in 2023.
• The FDA authorized the importation of mass medications from Canada into Florida.
• The EU-U.S. Data Privacy Framework was adopted, allowing valid data transfers from the EU to the U.S.
• Accumulated deficit decreased from $379 million to $338 million as of December 31, 2023.
• Federal NOLs decreased from approximately $270 million to $179 million as of December 31, 2023.
• The Inflation Reduction Act has been delayed until January 1, 2032 by Congress.
• The United Kingdom and the United States implemented a US-UK "data bridge" for data transfers.
• Total revenues increased by 20% from $181.0 million in 2022 to $216.7 million in 2023.
• State NOLs decreased from approximately $170 million to $98 million as of December 31, 2023.
• Revenue growth fluctuated, with a 31% increase in 2023 compared to 28% in 2022.
• Federal research and development tax credit carryforwards decreased from approximately $19 million to $23 million as of December 31, 2023.