Risk Factors Update Summary

• Cash and cash equivalents increased from $129.3 million to $134 million as of December 31, 2023.
• The company may face delays due to complications associated with public health crises.
• Certain states have submitted Section 804 Importation Program proposals and are awaiting FDA approval. On January 5, 2023, the FDA approved Florida’s plan for Canadian drug importation.
• Failure to comply with privacy and security laws could expose the company to fines and penalties.
• Net loss decreased from $53 million to $37 million for the year ended December 31, 2022.
• Federal and state net operating loss carryforwards increased from $92 million to $96 million and $86 million to $44 million, respectively.
• A new regulation removes safe harbor protection for price reductions reflected at the point-of-sale from pharmaceutical manufacturers to plan sponsors under Part D.
• Merck & Co. filed a lawsuit against HHS and CMS regarding the IRA's Drug Price Negotiation Program for Medicare.
• Accumulated deficit increased from $306 million to $344 million as of December 31, 2022.
• The company is developing WTX-124 and WTX-330 and other future product candidates.
• The Inflation Reduction Act implementation has been delayed until January 1, 2032.
• Changes in privacy laws at state and federal levels may impact the processing of personal information and increase compliance efforts.
• Gross proceeds of $17.7 million were received under the at-the-market sales facility from January 1, 2024, through March 1, 2024.
• Various parties, including U.S. Chamber of Commerce, filed lawsuits against HHS and CMS regarding the IRA.