COMMITMENTS AND CONTINGENCIES	6 Months Ended
Jun. 30, 2026
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES The Company is involved in legal proceedings related to matters, which are incidental to its business. Also, the Company is delinquent on the payment of outstanding accounts payable for certain vendors and suppliers who have taken or have threatened to take legal action to collect such outstanding amounts. See below for a discussion on these matters. PURCHASE COMMITMENTS The Company has entered into purchase commitments for reagents from suppliers. Some of these agreements run through 2031. The Company and the suppliers will true up the amounts on an annual basis. The future minimum purchase commitments under these and other purchase agreements are approximately $2.8 million at June 30, 2026. LEGAL PROCEEDINGS CPA Global provides us with certain patent management services. On February 6, 2017, CPA Global claimed that we owed approximately $0.2 million for certain patent maintenance services rendered. CPA Global has not filed claims against us in connection with this allegation. A liability of less than $0.1 million has been recorded and is reflected in accounts payable within the accompanying condensed consolidated balance sheets at June 30, 2026 and December 31, 2025. Data Security Litigation On April 28, 2026, Karen Ballard filed a putative class action complaint against Precipio, Inc. in the United States District Court for the District Court of Connecticut, Case No.3:26-cv-00656. On May 5, 2026, Rebecca McKinney filed a separate putative class action complaint against the Company in the United States District Court for the District Court of Connecticut, Case No.3:26-cv-00687. The complaints arise from the data security incident previously disclosed by the Company on December 5, 2025, and purport to be brought on behalf of individuals whose personally identifiable information or protected health information allegedly was affected by the incident. The complaints generally allege that the Company failed to implement reasonable safeguards to protect patients’ personally identifiable information and protected health information, including names, dates of birth, contact information, medical record numbers and medical information, in connection with the data security incident. The plaintiffs seek, among other relief, certification of the proposed classes, monetary damages, restitution, injunctive relief, attorneys’ fees, costs, and such other relief as the courts may determine appropriate. The actions are at a preliminary stage. On June 8, 2026, the Court entered an order consolidating Ballard v. Precipio, Inc. and McKinney v. Precipio, Inc. into a single proceeding captioned In re Precipio, Inc. Data Security Litigation, Case No. 3:26-cv-00656-VDO (D. Conn). The order further provides that subsequently filed putative class actions alleging the same or substantially similar allegations are subject to the consolidation procedures established by the Court. The Court subsequently granted plaintiffs’ request for an extension of time to file a consolidated complaint through approximately August 6, 2026. As of the date of this Quarterly Report, no consolidated complaint has been filed, no class has been certified, and the Company has not yet been required to respond substantively to the allegations. The Company intends to defend the litigation vigorously. Because the litigation remains at an early stage, the operative allegations and claims have not yet been established through a consolidated complaint, no class has been certified, and the amount of damages sought has not been specified. Accordingly, the Company is currently unable to predict the outcome of the litigation or reasonably estimate the amount or range of any potential loss. The Company has not recorded a liability in connection with these matters LEGAL AND REGULATORY ENVIRONMENT The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not limited to, matters such as licensure, accreditation, government healthcare program participation requirement, reimbursement for patient services and Medicare and Medicaid fraud and abuse. Government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers. Violations of these laws and regulations could result in expulsion from government healthcare programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. Management believes that the Company is in compliance with fraud and abuse regulations, as well as other applicable government laws and regulations. While no material regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2026

5. COMMITMENTS AND CONTINGENCIES

The Company is involved in legal proceedings related to matters, which are incidental to its business. Also, the Company is delinquent on the payment of outstanding accounts payable for certain vendors and suppliers who have taken or have threatened to take legal action to collect such outstanding amounts. See below for a discussion on these matters.

PURCHASE COMMITMENTS

The Company has entered into purchase commitments for reagents from suppliers. Some of these agreements run through 2031. The Company and the suppliers will true up the amounts on an annual basis. The future minimum purchase commitments under these and other purchase agreements are approximately $2.8 million at June 30, 2026.

LEGAL PROCEEDINGS

CPA Global provides us with certain patent management services. On February 6, 2017, CPA Global claimed that we owed approximately $0.2 million for certain patent maintenance services rendered. CPA Global has not filed claims against us in connection with this allegation. A liability of less than $0.1 million has been recorded and is reflected in accounts payable within the accompanying condensed consolidated balance sheets at June 30, 2026 and December 31, 2025.

Data Security Litigation

On April 28, 2026, Karen Ballard filed a putative class action complaint against Precipio, Inc. in the United States District Court for the District Court of Connecticut, Case No.3:26-cv-00656. On May 5, 2026, Rebecca McKinney filed a separate putative class action complaint against the Company in the United States District Court for the District Court of Connecticut, Case No.3:26-cv-00687.

The complaints arise from the data security incident previously disclosed by the Company on December 5, 2025, and purport to be brought on behalf of individuals whose personally identifiable information or protected health information allegedly was affected by the incident.

The complaints generally allege that the Company failed to implement reasonable safeguards to protect patients’ personally identifiable information and protected health information, including names, dates of birth, contact information, medical record numbers and medical information, in connection with the data security incident. The plaintiffs seek, among other relief, certification of the proposed classes, monetary damages, restitution, injunctive relief, attorneys’ fees, costs, and such other relief as the courts may determine appropriate.

The actions are at a preliminary stage. On June 8, 2026, the Court entered an order consolidating Ballard v. Precipio, Inc. and McKinney v. Precipio, Inc. into a single proceeding captioned In re Precipio, Inc. Data Security Litigation, Case No. 3:26-cv-00656-VDO (D. Conn). The order further provides that subsequently filed putative class actions alleging the same or substantially similar allegations are subject to the consolidation procedures established by the

Court. The Court subsequently granted plaintiffs’ request for an extension of time to file a consolidated complaint through approximately August 6, 2026. As of the date of this Quarterly Report, no consolidated complaint has been filed, no class has been certified, and the Company has not yet been required to respond substantively to the allegations.

The Company intends to defend the litigation vigorously. Because the litigation remains at an early stage, the operative allegations and claims have not yet been established through a consolidated complaint, no class has been certified, and the amount of damages sought has not been specified. Accordingly, the Company is currently unable to predict the outcome of the litigation or reasonably estimate the amount or range of any potential loss. The Company has not recorded a liability in connection with these matters

LEGAL AND REGULATORY ENVIRONMENT

The healthcare industry is subject to numerous laws and regulations of federal, state and local governments. These laws and regulations include, but are not limited to, matters such as licensure, accreditation, government healthcare program participation requirement, reimbursement for patient services and Medicare and Medicaid fraud and abuse. Government activity has increased with respect to investigations and allegations concerning possible violations of fraud and abuse statutes and regulations by healthcare providers.

Violations of these laws and regulations could result in expulsion from government healthcare programs together with the imposition of significant fines and penalties, as well as significant repayments for patient services previously billed. Management believes that the Company is in compliance with fraud and abuse regulations, as well as other applicable government laws and regulations. While no material regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time.