Risk Factors Update Summary

• Issuance of shares representing 113.2% and resale of shares representing 77.6% of total outstanding shares.
• Added risks related to intellectual property protection, including patent compliance requirements and potential consequences of infringement.
• Investors may not agree with the use of net proceeds from Warrants exercise. This could impact returns.
• Losses incurred each year since inception, with net losses of $29.9 million in 2023 and $15.9 million in 2022.
• Submitted IDE for approval in Q1 2024, with approval expected by end of Q2 2024. This could impact timeline and regulatory approval.
• Added risks related to patent protection non-compliance, including potential loss of patent rights.
• Added disclosure on the potential impact of a material misstatement on financial reports and securities value.
• Added risks related to inadequate protection of trademarks, potentially leading to loss of brand recognition.
• Registration of substantial Class A Common Stock for resale may significantly reduce market price.
• Accumulated deficit increased to approximately $257.2 million in 2023 from $226.0 million in 2022.
• Litigation risks from stockholder actions could divert management attention and incur significant defense expenses.
• Dependence on successful commercialization of Acclaim CI for revenue generation. Failure could severely impact finances.
• Increased focus on the risks related to competition and the need for successful commercialization of Acclaim CI.
• Shareholders agreed not to sell 12,905,049 shares until March 29, 2024, or specific conditions.
• Increased emphasis on the going concern opinion and the need for future financing.
• Anticipation of increased losses due to additional business development costs.
• Increased risks of lawsuits and administrative proceedings involving patents and intellectual property.
• Disclosed potential legal proceedings, costs, and distractions related to defending intellectual property rights and patent infringement claims.
• Reliance on third parties for pre-clinical studies and clinical trials may lead to costs and delays beyond control.
• Disclosure of the need for debt or equity financing until significant recurring revenues are generated.
• Added risks of intellectual property litigation leading to unfavorable publicity and financial drain.
• Emphasis on the risks of clinical failure and the need for further validation.
• The company may issue additional shares, diluting investor equity, impacting ownership interest.
• Potential dilution from future equity offerings or issuance of additional shares, impacting investor equity.
• Reliance on third-party suppliers for Acclaim CI production may lead to supply shortages, increased costs, and quality issues.
• Increased operating losses, with approximately $43.9 million remaining in the trust account as of March 27, 2023.
• Enhanced risks of misappropriation of trade secrets, potentially harming competitive advantages and business.
• Highlighted risks of misappropriation of intellectual property by employees, potential breaches of confidentiality agreements, and challenges in protecting trade secrets.
• Dependence on key executive management; failure to retain could impede business plan and growth strategies.
• Noted risks related to patent expiration, limited patent protection periods, and potential competition post-patent expiration.
• The company may amend terms of Public Warrants with approval from 65% of holders.
• Increased risks of conflicts of interest among directors and officers impacting business operations.
• Uncertainty in the size of the addressable market for Acclaim CI may impact market share capture.
• Added details on the potential delays in the U.S. pivotal study for Acclaim CI.
• Expanded risks of competitors infringing patents, leading to costly infringement claims and counterclaims.
• Added concerns about the potential impact of intellectual property litigation on the company's reputation and stockholder reaction.
• The market price of Class A Common Stock may be volatile, leading to potential substantial losses.
• Disclosed risks related to the protection of trademarks and trade names, including challenges in building name recognition and potential rebranding costs.
• Legal proceedings and securities litigation could result in substantial costs and divert management attention.
• Mentioned risks associated with the enforcement of intellectual property rights in foreign jurisdictions and potential limitations in protecting intellectual property globally.
• The company may issue warrants to purchase additional shares, potentially affecting market price.