Risk Factors Update Summary

• Annual net revenues increased from $55 million in 2022 to $78 million in 2023.
• The percent of net revenue paid to Oberland could reset to a higher amount in 2025 if certain revenue milestones are not met. This could result in substantially higher payments starting in 2025.
• A settlement agreement with DSE resulted in an aggregate payment of $125 million, including a $100 million payment and a $25 million payment based on EMA decisions.
• The company raised up to $239 million in common stock in 2022 and up to $70 million in 2023.
• The number of issued United States patents decreased from 26 to 10, and pending United States patent applications decreased from 130 to 80.
• The European Unified Patent Court came into force during 2023.
• The company's accumulated deficit increased from $1.3 billion to $1.5 billion by the end of 2023.
• The number of granted European patents decreased from two to one, and the number of pending patent applications outside the United States decreased from 25 to 15.
• The U.S. Patent No. 11,116,739 is scheduled to expire in March 2036.
• Operating losses rose from $209.2 million in 2022 to $233.7 million in 2023.
• The number of issued patents and pending applications outside the U.S. decreased from 17 to 14 and 25 to 7, respectively.
• The company's net losses were $269.1 million for the year ended December 31, 2021.
• The company generated $187 million in net revenue from product sales in 2023.
• The company had an accumulated deficit of $1.5 billion as of December 31, 2023.