Risk Factors Update Summary

• The company reported net income in recent years but may incur net losses in the future.
• Completed offering of $750.0 million aggregate principal amount of convertible senior notes in August 2023.
• The European Unitary Patent & Unified Patent Court implementation in 2023 may impact patent acquisition and enforcement.
• Failure to comply with anti-corruption laws by foreign distributors could lead to legal, financial, and reputational consequences.
• Our products are approved in 20% more countries, increasing international sales to 20% of revenue.
• The company had $304.5 million in cash, cash equivalents, and short-term investments as of December 31, 2023.
• Revolving credit facility of $175.0 million currently undrawn, with customary covenants and restrictions.
• Potential dilution of ownership due to conversion of notes, impacting stock prices and ownership interests.
• Failure to comply with U.S. sanctions and export controls could lead to export privilege denial.
• Legal risks from third-party claims challenging inventorship or ownership of patents may escalate.
• The company released the valuation allowance against U.S. federal and state deferred tax assets.
• The company had net operating loss carryforwards of approximately $239.1 million for federal income tax purposes as of December 31, 2023.
• The U.S. Patent and Trademark Office's changes may increase uncertainties and costs in patent prosecution.
• Changes in U.S. laws, like the ACA and Budget Control Act, may impact healthcare coverage and Medicare payments.
• The company entered into a Credit Agreement in October 2022 for $175.0 million.
• The company is expanding its manufacturing capabilities into Costa Rica, which is in an earthquake zone.
• The company faces risks related to its products and may not be able to acquire or license additional approved products or technologies.