Risk Factors Update Summary

• Net operating loss carryforwards increased from $717.0 million to $1 billion. This change impacts tax liabilities.
• The company filed suit against NanoString, seeking over $31 million in damages.
• Increased dependency on revenue from the sale of Chromium solutions, particularly Single Cell Gene Expression solutions.
• Many sole source suppliers were changed to "many" from "most." This change may impact supplier risk diversification.
• The company filed suit against Vizgen, seeking unspecified damages and injunction relief.
• Shift in revenue generation, with approximately 40% (2023) and 45% (2022) of revenue from international sales.
• The number of employees increased from 243 to 259. This growth may strain operational systems.
• Sales revenue outside North America decreased from 46% to 40%. This shift may affect revenue stability.
• The company filed suit against Parse, seeking unspecified damages and injunction relief.
• Expansion into new international jurisdictions as a growth strategy, facing competition and operational risks.
• Sales revenue outside North America decreased from 45% to 40%. This shift may affect revenue stability.
• The company aims to achieve positive cash flows exceeding capital investment requirements.
• Risks associated with conducting business in China, including regulatory uncertainties and economic conditions.
• The company faces potential non-compliance with new Nasdaq listing rules, risking financial penalties.
• Manufacturing capacity improvements and increased risk of defects due to scaling operations.