Risk Factors Update Summary

• The Company announced the termination of its Phase 2 clinical trial for masofaniten (EPI-7386) due to safety and efficacy concerns. This decision may significantly impact future development strategies.
• The company’s fiscal year-end changed from September 30, 2023, to September 30, 2024. This may impact financial reporting timelines.
• ESSA's decision to discontinue development of masofaniten (EPI-7386) may hinder future product commercialization. This could significantly impact investor confidence and market valuation.
• The Company reported a net loss for the year of $28,542,821, compared to $26,580,743 last year. This change might result in increased investor concern regarding profitability.
• The Severance Payment for the Chief Executive Officer is now calculated as the sum of Base Salary and target annual cash bonus multiplied by a Severance Multiple of **1.5**.
• Recent judicial decisions raised questions about patent term adjustment (PTA), potentially affecting patent expiration dates. This uncertainty could impact future revenue streams.
• ESSA's net losses increased to $28,542,821 for the year ended September 30, 2024, compared to $26,582,343 in 2023. This trend raises concerns about financial sustainability.
• The Company has non-capital loss carry-forwards of approximately $90,502,000 available to offset future taxable income. This could significantly impact future tax liabilities.
• The Continuation Period for a Chief Executive Officer or C-Level Executive is extended to **one year**, increasing from the previous duration.
• The ongoing geopolitical conflicts, particularly between Russia and Ukraine, may adversely affect ESSA's business operations and financial condition. This could lead to increased market volatility.
• The number of exhibits filed with the SEC increased from 104 to 91, indicating a potential reduction in disclosures.
• The Company recognized share-based payments totaling $6,538,890, up from $5,007,469 last year. This increase may affect overall operating expenses and investor sentiment.
• The Company has initiated a comprehensive review process to evaluate strategic options, which may include mergers or asset sales. This could lead to significant changes in operations and shareholder value.
• The Company’s working capital as of September 30, 2024, was $145,301,528, indicating improved liquidity compared to $124,807,528 last year. This change may enhance financial stability perceptions.
• The Company reported that 88% of patients achieved PSA90 in the recent trial, indicating potential efficacy of masofaniten combined with enzalutamide. This outcome may influence future clinical decisions.
• The ESSA Pharma Inc. Clawback Policy was updated, now listed as Policy * 101, enhancing governance measures.
• The Benefit Subsidy now includes continued participation in health plans for **three months** post-termination, enhancing economic security for executives.
• ESSA's market capitalization is currently below its cash and investments, indicating potential undervaluation. This situation may deter strategic partnerships or acquisitions.
• The definition of "Good Reason" now includes a mandatory relocation exceeding **50 miles**, providing additional protection for executives against adverse changes.
• The employment agreement for David Wood was updated to reflect changes in terms, potentially affecting executive compensation.
• The Company’s total operating expenses increased to $34,421,017 from $32,141,046, reflecting rising costs that could impact future profitability.
• The Company’s cash reserves increased to $103,709,537 as of September 30, 2024, up from $33,701,912 in 2023. This improvement may provide more operational flexibility moving forward.
• The company may incur significant costs related to evaluating strategic options, which could diminish cash reserves and delay operational plans. This could affect future shareholder distributions.
• The Plan is effective as of **June 5, 2024**, establishing a clear timeline for implementation and compliance.
• The date of the filing changed from December 12, 2023, to December 17, 2024, impacting compliance timelines.
• The list of subsidiaries has been updated from 12 to 17, reflecting potential growth in operations.
• The certification date has shifted from December 2023 to December 2024, impacting compliance timelines.
• The reporting date for the annual period has changed from 2023 to 2024, indicating a delay.