Risk Factors Update Summary

• The company recorded impairment charges totaling $2.5 million for owned non-lease instruments in 2023. This change might result in reduced asset value and future profitability concerns.
• The company expects to incur losses in the future, impacting its ability to utilize limited net operating losses against future profitability. This could significantly affect financial stability.
• Our total revenues are concentrated among a small number of large customers. Sales to our two largest customers together represented 29% of our revenues for the fiscal year ended December 31, 2023.
• For fiscal year 2023, two customers represented 29% of total revenue, highlighting customer concentration risks. The loss of these customers could materially impact financial results.
• The company faces fluctuations in demand for raw materials and other supplies, which may impact production costs and operational efficiency.
• Revenue associated with our BARDA contract represented 50% of total revenue for the fiscal year ended December 31, 2022, and less than 10% for the fiscal year ended December 31, 2023.
• The company expects to incur net losses of $62.0 million in 2023, raising concerns about its ability to continue as a going concern.
• The company is dependent on third parties for manufacturing, which poses risks of interruptions in product supply and fulfillment backlogs.
• We had federal net operating loss carryforwards to offset future taxable income of $273 million, available to offset future taxable income, with $10 million beginning to expire in 2026.
• The company has received FDA Breakthrough Device designation for its T2Cauris test, a critical advancement in combating the multi-drug resistant pathogen with a mortality rate of up to 60%.
• Cyberattacks are increasing in frequency and sophistication, threatening the confidentiality and integrity of our information, which could significantly harm our operations.
• The company reported that the annual cost of sepsis to the U.S. healthcare system was $62 billion, highlighting the significant economic burden of this condition.
• The listing of our common stock on The Nasdaq Capital Market does not assure a meaningful, consistent, and liquid trading market will exist or continue.