Risk Factors Update Summary

• Added "or adequately address" to efforts to prevent cyber incidents, breaches, or compromises.
• Net losses increased from $112 million to $188 million, with a significant jump in accumulated deficit.
• Expanded potential liability to include litigation, regulatory investigations, and enforcement actions.
• The number of product candidates in clinical development increased from two to three.
• Increased focus on artificial intelligence technology and potential regulatory impacts on AI use.
• Increased full-time employees from 46 to 74, indicating potential operational expansion.
• A Phase 1 clinical trial was initiated for DISC-3405 in healthy volunteers.
• Ongoing legislative and enforcement interest in reforming government program reimbursement methodologies for drugs.
• Net operating loss carryforwards increased from $69 million to $88 million.
• Fast track designation granted for DISC-3405 for the treatment of PV and DISC-0974 for anemia.
• Enhanced privacy and data security laws and regulations compliance requirements, especially in the EU and UK.
• Research and development tax credit carryforwards decreased from $2 million to $1.8 million.
• Federal and state research and development tax credit carryforwards decreased from $7 million to $5 million.
• Federal and state net operating loss carryforwards increased from $67 million to $91 million.