Risk Factors Update Summary

• The company has indefinitely suspended development of AR101 (enzastaurin), shifting focus to commercial business growth, potentially affecting future revenue streams.
• Our net loss for the years ended June 30, 2024, was $15.8 million, compared to $17.1 million in 2023. This change might result in increased investor concern regarding financial stability.
• The company has not established ongoing revenue sources sufficient to cover operating costs, risking financial stability.
• We had an accumulated deficit of $320 million as of June 30, 2024, up from $304 million. This increase indicates worsening financial health and potential challenges in achieving profitability.
• Additional funding may be required, which might not be available on acceptable terms, impacting operations.
• The loss of three significant customers could materially and adversely affect results of operations, emphasizing customer dependency risks.
• We raised approximately $13.0 million from the Eclipse Term Loan and $3.6 million from warrant exercises. This funding is crucial for ongoing operations and mitigating financial risks.
• The company has incurred losses totaling $[specific amount] million to date, impacting future profitability.
• In fiscal 2024, the Rx Segment recorded net revenue of $65.2 million, indicating growth potential despite challenges.
• Due to the completion of our wind down and divestiture of our Consumer Health Segment, we will not generate significant revenue from this segment in the future. This change could adversely affect overall revenue projections.
• There is no assurance of achieving profitability in the upcoming fiscal periods, increasing investor risk.
• We are subject to significant risks from cybersecurity attacks, which could disrupt operations and lead to reputational harm. This change highlights the growing importance of data security in our risk management strategy.
• The company faces ongoing financial challenges that could affect its operational stability and growth potential.