Risk Factors Update Summary

• Added potential negative impact of securities litigation or shareholder activism on business strategies and share price.
• Announced statistically significant and clinically meaningful Phase 2b data for MM120.
• Addition of MM120 and MM402 as specific product candidates throughout the risk factors. This change highlights the importance of these products in the company's future plans.
• Entered into a Loan Agreement borrowing $15.0 million in the first tranche, with potential additional borrowings based on milestones.
• Shareholders nominated four director candidates for election, engaging in a proxy contest.
• Phase 2a trial for ADHD did not meet primary endpoint. Anticipate initiation of Phase 3 trial of MM402 in 2024.
• Increase in full-time employees from 48 to 57, including specific roles in research and development, digital development, and general administrative positions. This indicates a significant expansion in the workforce.
• Accumulated deficit increased to $290 million as of December 31, 2023, up from $194 million in 2022.
• Paused development of MM110 in the third quarter of 2022.
• Cash and cash equivalents decreased to $99.7 million as of December 31, 2023, down from $142 million in 2022.
• Increased NOL carryforwards from $98 million to $128 million and state NOLs from $19 million to $17 million.
• Added risks related to potential delisting from Nasdaq or Cboe Canada affecting market liquidity.
• Incurred net losses of $95.7 million for the year ended December 31, 2023, an increase from $56.8 million in 2022.
• Mention of the Catalent merger and its potential impact on operations, specifically the interruption of manufacturing capability. This highlights a potential risk to the supply chain.
• Expansion of research into digital technology to complement product candidates, aiming to collect data and educate patients. This shift towards digital technologies may impact the company's operations.
• Disclosed differences in corporate transaction approval requirements between BCBCA and DGCL.
• Mentioned potential loss of confidence due to authoritative U.S. GAAP changes.
• Discussion of the European Commission's proposal for new pharmaceutical legislation, potentially affecting market access and coverage for product candidates. This regulatory change could impact the company's commercialization efforts.
• Added risks related to exchange rate fluctuations and abandonment of the euro.