Risk Factors Update Summary

• Risks associated with artificial intelligence adoption, including security breaches and reputational harm. This could result in loss of intellectual property and damage to business reputation.
• Expanded pipeline with STAR-0310 for atopic dermatitis, expecting IND submission by end of 2024.
• Introduction of PRIME designation in the European Union for product candidates targeting unmet medical needs.
• Addition of STAR-0310 to clinical development efforts and regulatory approvals, impacting profitability.
• Plan to develop a drug-device combination for STAR-0215, impacting commercialization strategy.
• Increase in outstanding common stock from 970,903 to 1,061,516 shares, impacting market price and future equity offerings.
• Increase in net losses from $194 million to $583 million, affecting financial stability.
• Potential impact of the Inflation Reduction Act of 2022 on pricing and reporting implications.
• Increased expenses for clinical trials, including adding two cohorts to Phase 1a trial of STAR-0215.
• Inclusion of new License Agreement with Ichnos for exclusive rights and milestone payments.
• Issuance of warrants for 7,368,738 common stock shares and pre-funded warrants for 1,571,093 shares.
• Changes in tax laws, including a one percent excise tax on stock repurchases by publicly traded companies.
• Warrants may lead to concentration of voting power, potential conflicts of interest, and influence over business decisions.
• Uncertainty surrounding the EU-U.S. Data Privacy Framework and potential challenges to its validity.
• Compliance with changing laws and regulations related to corporate governance and public disclosure, increasing legal and financial compliance costs.
• Increased difficulty in locating, attracting, and retaining experienced personnel due to labor shortages and rising inflation.
• Registration of shares issuance and warrants in the public market, subject to volume limitations.
• Risks related to security breaches and disruptions to information systems, with an aggregate cyber liability insurance coverage of $1.0 million.
• Ongoing sales agreement with Jefferies to sell shares of common stock under an at-the-market offering program.
• Potential impact of remote working arrangements on productivity, morale, and susceptibility to cyber-attacks.