Risk Factors Update Summary

• Added uncertainties and risks to the investment warning, highlighting potential adverse effects on stock price.
• Increased vulnerability to cyber-attacks and security breaches could lead to material disruptions in operations.
• Legal challenges by competitors may impact our intellectual property rights, potentially harming our business.
• Stressed the importance of successful regulatory approval and commercialization of ABP-450 for future success.
• Competition in the pharmaceutical industry, including potential market penetration challenges for ABP-450.
• Stockholders may earn a significant positive rate of return depending on the market price.
• Disclosed significant losses of $29.6 million to $48.4 million and accumulated deficit of $473.6 million.
• Medytox brought a case against Old AEON seeking actual, consequential, and punitive damages.
• A material breach of the terms with Medytox could have a material adverse effect on business.
• Increased reliance on third parties for operations and services may lead to delays in clinical studies and regulatory approvals.
• Risks associated with international operations, including regulatory, staffing, and economic factors, may impact revenue and operations.
• Potential significant negative consequences if ABP-450 receives regulatory approval, including recalls, regulatory restrictions, and lawsuits.
• The 2023 Incentive Award Plan allows for the issuance of up to 3,839,892 shares initially.
• Success in clinical studies by other companies may not predict outcomes for ABP-450.
• Loss of clinical study data could result in delays and significantly increased costs.
• Fluctuations in stock price may materially impact the valuation of derivatives, including Contingent Consideration Shares.
• Potential excise tax liability on stock redemptions could impact financials, especially with 27,042,840 shares redeemed in 2023.
• Ownership change may limit the company's ability to use net operating loss carryforwards, impacting future taxable income.
• Risks associated with ongoing regulatory obligations, including potential penalties for non-compliance.
• Medytox sought disgorgement of proceeds, injunctive relief, and attorneys' fees in the Medytox Litigation.
• Risks associated with open-label clinical trials and potential biases affecting trial outcomes.
• Failure to comply with regulatory requirements by Daewoong could result in sanctions, delays, and impact product availability.
• Failure to protect confidentiality of trade secrets could harm competitive position.
• Failure to comply with regulatory requirements could lead to operating restrictions, criminal prosecution, and monetary penalties.
• Noted the extensive regulation and uncertainty in obtaining regulatory approvals for ABP-450 in various therapeutic indications.
• Detailed the need for additional capital to fund operations and the risks associated with raising capital.
• Highlighted the limited operating history and ongoing losses, raising doubts about the ability to continue as a going concern.
• Pursuing an original BLA for ABP-450 exclusively for therapeutic uses to ensure consistent pricing.
• Reliance on Daewoong for manufacturing ABP-450 poses risks of production problems that could delay commercialization.
• AEON entered a settlement agreement with Medytox, granting a non-exclusive license and issuing 26,680,511 shares.
• Material weaknesses in internal controls over financial reporting identified in 2024 could affect accurate reporting.
• Dependence on third-party vendors for critical services poses a risk of operational disruptions.
• Delays in obtaining approval for ABP-450 could harm commercial prospects and revenue generation.
• Need to prioritize development of therapeutic uses of ABP-450 due to limited resources and potential impact on business.
• Dependence on information technology systems increases the risk of disruptions and data breaches.
• The Employee Stock Purchase Program allows for the purchase of shares at a discount.
• Loss of key personnel could prevent commercialization of ABP-450, impacting business.
• Additional capital is needed for business growth, with $15 million committed financing for Convertible Notes.
• Emphasized the need for additional financing due to ongoing losses and doubts about the ability to continue operations.
• The forum selection provisions may limit stockholders' ability to litigate disputes and impose additional costs.
• Lack of equity research analyst coverage may adversely affect the market price of common stock.
• AEON may lose access to ABP-450 and the manufacturing process if the Medytox Settlement Agreement is terminated.
• Transitioning between vendors could lead to operational delays and inefficiencies.
• AEON relies on third parties for preclinical and clinical studies, facing risks if these parties fail to perform.
• Compliance with public company requirements will increase legal and financial compliance costs.
• AEON's ability to commercialize ABP-450 may be impaired if third-party collaborations are unsuccessful.
• Management team's limited experience with public company requirements may strain resources.
• AEON's success depends on obtaining and protecting intellectual property rights related to ABP-450.