Risk Factors Update Summary

• The cost to manufacture product candidates is higher due to complexities, potentially impacting profitability.
• Potential adverse impacts from public health crises on clinical trials, including enrollment delays.
• Need for additional CMOs to produce clinical supply for late-phase trials at necessary scale.
• Sales Agreement with Cowen and Company for up to $100.0 million of common stock.
• Addition of new product candidates, including DSG3 / 1 - CAART and PLA2R - CAART, with effective dates in March 2023, May 2023, September 2023, and November 2023. This expansion may require significant additional financing for clinical trials and commercialization.
• Potential delays in approval processes due to security breaches or unauthorized access to sensitive data.
• Expiration of net operating loss carryforwards, with federal NOLs of $121.6 million expiring in 2037.
• Increase in full-time employees from 58 to 101, indicating a 43% growth in the workforce, which may impact operating expenses and productivity.
• Transition to dedicated suite for GMP manufacturing for CABA - 201 and MuSK - CAART programs with an initial term of 18 months, indicating a strategic shift in manufacturing operations.
• Increased control by major stockholders owning 39% of common stock, potentially influencing decisions.
• Accumulated deficit increased from $165 million to $233 million as of December 31, 2023, reflecting continued losses and potential financial challenges.
• Implementation of a preconditioning regimen in the DesCAARTesTM trial, including IVIg, cyclophosphamide, and fludarabine, may impact the assessment of early efficacy and delay characterization of CABA - 201 independent of the effects of the regimen.
• Planned increase in the share reserve under the 2019 Plan by 3,000,000 shares, subject to adjustment, to provide equity incentives, indicating a potential dilution of ownership for existing shareholders.
• Potential impact of geopolitical tensions with China on manufacturing partners, such as WuXi, due to executive orders and legislative proposals, highlighting risks associated with reliance on foreign vendors.