Risk Factors Update Summary

• Addition of detailed risks related to non-compliance with PRC laws and regulations in China.
• Many countries have compulsory licensing laws, limiting enforceability of patents against government agencies, diminishing patent value.
• Addition of cybersecurity risks related to security incidents, breaches, and disruptions, exposing to material liability.
• Mention of potential substantial dilution for stockholders if funds are raised through issuing equity securities.
• Detailed risks related to clinical trial delays, including patient enrollment challenges and regulatory hurdles.
• Risks associated with undesirable side effects impacting marketing approval and commercial success of drug candidates.
• Failure to comply with obligations under the ANP License Agreement could lead to termination, adversely affecting revenue.
• Expansion on uncertainties regarding the interpretation and application of PRC laws, impacting operations.
• Emphasis on the need for additional financial resources for drug candidate development, potentially delaying approvals.
• Increased focus on the importance of market acceptance for drug candidates, impacting revenue generation.
• Reliance on third parties for manufacturing and supply, with potential delays affecting clinical trials and business operations.
• Intellectual property rights may not prevent competitors from using technologies in jurisdictions without patent protection.
• Disclosure of impairment charges related to goodwill and intangible assets negatively affecting financial performance.
• Inclusion of potential material refunds or settlements due to governmental audits like the current HRSA Audit.
• Ownership claims on patents may lead to litigation, resulting in substantial costs and distraction.
• Increase in voting equity ownership from 44% to 45% by Mr. Hsieh as of December 31, 2023.
• Addition of regulatory risks related to changes in laws impacting the ability to perform tests and potential disruptions.
• Increase in outstanding voting equity ownership from 28% to 29% by Mr. Hsieh as of December 31, 2023.
• Mention of the need to maintain and enhance internal controls for financial reporting, increasing operating expenses.
• Disclosure of potential adverse impact from political uncertainty on operating performance and results of operations.