Company: TEM
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025603
Chunk: 76

Company: Tempus AI, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 76
---
 market. 

58

New product development and commercialization involve a lengthy and complex process and we may be unable to develop or commercialize new products on a timely basis, or at all. 

Products that are under development have taken time and considerable resources to develop, and we may not be able to complete the development and commercialization of such products on a timely basis, or at all. 

Before we can commercialize any new Genomics or AI Applications diagnostic products, we will need to expend significant funds in order to: 

•conduct substantial research and development, including validation studies and, in some cases, clinical trials; 

•further develop and scale our laboratory or algorithmic processes to accommodate diagnostic tests in additional disease areas; and 

•further develop and scale our infrastructure to be able to analyze increasingly large amounts of data. 

Our diagnostic product development process involves a high degree of risk, and product development efforts may fail for many reasons, including: 

•failure of the diagnostic product to perform as expected, including defects and errors; 

•lack of validation data or validation activities that subsequently may be challenged or questioned; or 

•failure to demonstrate the clinical utility of the diagnostic test. 

Expanding the offerings of our Data business is also a speculative and risky endeavor and may require us to: 

•acquire additional access to patient healthcare information that is relevant to the products we offer; 

•correctly identify customer needs and preferences and predict future needs and preferences; 

•allocate our research and development funding to areas with higher growth prospects; and 

•anticipate and respond to our competitors’ development of new products and technological innovations. 

Our Platform development plan involves using data and analytical insights generated from our current products to foster research and development in our future products. However, if we are unable to generate additional or compatible data and insights, then we may not be able to advance our products under development as quickly, or at all, or without significant additional investment. 

As we develop our products, we have made and will have to make significant investments in Platform development, marketing and selling resources, which could adversely affect our future cash flows. We may also rely on third parties to develop new products that we may license and include in our overall offering, particularly with respect to our AI Applications business, and we may exert limited or no control over such development efforts. 

In addition, in our development and commercialization plans for our business lines, we may forego other opportunities that may provide greater revenue or be more profitable. For