Risk Factor Summary Risks related to our business approach • We are an early, commercial-stage company attempting to integrate complex platforms and systems to address a wide range of healthcare issues, and we may not be successful in doing so. • The success of NantHealth solutions is dependent upon the robustness of the information we and others input into our platforms and systems to achieve maximum network effects, and if we are unable to amass and input the requisite data to achieve these effects, our business will be adversely affected. • We may be unable to appropriately allocate our financial and human resources across our broad array of product and service offerings. Risks related to our financial condition and capital requirements: • We have a limited operating history, which may make it difficult to evaluate our current business and predict our future performance. • We have a history of significant losses, which we expect to continue, and we may never achieve or sustain profitability in the future. • We may need to raise additional capital to fund our existing operations, develop our solutions, commercialize new products and expand our operations. Risks related to our system infrastructure and software solutions business: • The market for our systems infrastructure and software solutions is new and unproven and may not grow. • The data and information that we provide to our customers and their constituents, could be inaccurate or incomplete, which could harm both patients and our business, financial condition and results of operations. • Our use of open source technology could impose limitations on our ability to commercialize our offerings. Risks related to our OpenNMS open source business: • Our OpenNMS business incorporates third-party open source software, which could negatively affect our ability to sell our OpenNMS solutions and subject us to possible litigation. • Because of the characteristics of open source software, there may be fewer technology barriers to entry in the open source market by new competitors and it may be relatively easy for new and existing competitors with greater resources than we have to compete with our OpenNMS business. Risks related to our relationships with other companies: • We rely on third-party computer hardware and software that may be difficult to replace or which could cause errors or failures of our service which could damage our reputation, harm our ability to attract and maintain customers and decrease our revenue. • We are heavily dependent on our senior management, particularly Dr. Patrick Soon-Shiong, and a loss of a member of our senior management team in the future could harm our business. Risks related to our business generally: • We have in the past and may in the future acquire other companies or technologies, which could divert our management’s attention, result in dilution to our stockholders and otherwise disrupt our operations and adversely affect our operating results. • Business disruptions, including from natural disasters and the COVID-19 pandemic, among other things, could seriously harm our future revenue and financial condition and increase our costs and expenses. • Our marketing efforts depend significantly on our ability to receive positive references from our existing customers. • Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at similar rates, if at all. - 24 -
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