Risk Factors Update Summary

• The company announced a Plan of Dissolution, discontinued all clinical and preclinical programs, and reduced its workforce.
• The company's ability to use NOL carryforwards will be limited. This change could affect future taxable income and financial planning.
• The Dissolution and Plan did not receive stockholder approval, leading to continued efforts to dissolve.
• The company may try to find a buyer for preclinical data packages. This change might result in potential revenue generation.
• The company may not proceed with the Dissolution, impacting potential distributions to stockholders.
• The company needs additional financing for FRTX-02 development. This change may impact the timeline and success of the product.
• Stockholders may be liable to third parties due to the Dissolution process.
• The company may not be able to protect its intellectual property rights adequately.
• The loss of key personnel could hinder the efficient dissolution and wind-down operations.
• The company plans to exit certain reporting requirements under the Exchange Act, reducing publicly available information.