Company: TEM
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025603
Chunk: 100

Company: Tempus AI, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 100
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, including our smaller customers with fewer financial resources. If we are not able to collect amounts due from our customers, we may be required to write-off significant accounts receivable and recognize bad debt expenses, which could materially and adversely affect our operating results. 

Our existing and any future debt may affect our flexibility in operating and developing our business and our ability to satisfy our obligations. 

As of December 31, 2024, we had indebtedness of $440.6 million, comprised of $168.2 million under the convertible promissory note, as amended, or the Amended Note, that we issued to Google LLC, or Google, and $272.4 million of senior secured term loans, or the Term Loan Facility, pursuant to a credit agreement, or the Credit Agreement, with Ares Capital Corporation, or Ares. In addition, in connection with the closing of the Acquisition (as defined below), we entered into an amendment to the Credit Agreement providing for an additional $200.0 million in senior secured term loans, or the Additional Term Loan Facility (and together with the Term Loan Facility, the “Term Loan Facilities”), and $100.0 million in senior secured revolving loan commitments, or the Revolving Credit Facility. Our current and future indebtedness, including the Amended Note, the Term Loan Facilities and the Revolving Credit Facility may have significant negative effects on our operations, including:

•impairing our ability to obtain additional financing in the future (or to obtain such financing on acceptable terms) for working capital, capital expenditures, acquisitions or other important needs, and subjecting us to other restrictive covenants that may reduce our ability to take certain corporate actions; 

•requiring us to dedicate a portion of our cash resources to the payment of interest and principal, reducing money available to fund working capital, capital expenditures, potential acquisitions, international expansion, new product development, new enterprise relationships and other general corporate purposes; 

•requiring us to repay the principal and accrued interest on the Amended Note if we terminate our agreement with Google for use of Google Cloud or as a result of an event of default under the operating covenants in the Amended Note, or requiring us to repay the principal and accrued interest on the Term Loan Facility in an event of default under the covenants of the Term Loan Facility, either of which could impair our liquidity and reduce the availability of our cash flow to fund working capital, capital expenditures, acquisitions and other important needs; 

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•limiting our ability to