Risk Factors Update Summary

• Seralutinib is in active clinical development, with a registrational Phase 3 trial in PAH starting in Q4 2023.
• Addition of cybersecurity program details and risks, emphasizing protection of Confidential Information.
• Seralutinib was initially targeted for PAH and PH-ILD patients, facing competition from various products.
• The company had federal and state NOLs of approximately $494 million and $1.6 million, respectively, as of December 31, 2023.
• Sales of the product may decrease significantly or become less competitive if undesirable side effects are observed.
• Completing review for ownership change through 2023 due to private placements in 2022 and 2023.
• Failure to enroll sufficient subjects for clinical trials could delay product development and approval timelines.
• The company increased full-time employees from 11 in January 2018 to 178 by February 27, 2024.
• Accumulated deficit increased from $1,032 million to $1,212 million from 2022 to 2023.
• The UK Extension to the Data Privacy Framework came into effect on October 12, 2023.
• Change from predicting investors' reaction to potential material disruption in product development.
• The company had foreign NOLs of approximately $200 million and $89.2 million as of December 31, 2023.
• The California Privacy Rights Act (CPRA) significantly amends the California Consumer Privacy Act (CCPA).
• The Unitary Patent and Unified Patent Court system in Europe may present uncertainties for patent protection.
• The success of product candidates depends on regulatory approvals, commercialization, and ongoing clinical trials.
• Net losses were $179.8 million and $229.4 million for the years ended December 31, 2023 and 2022, respectively.
• Reliance on third parties for manufacturing, clinical trials, and regulatory approvals poses risks to commercialization.
• Transition from reliance on third parties for manufacturing to potential disruptions in clinical supplies.