Risk Factors Update Summary

• The company may not pay dividends in the foreseeable future to finance operations.
• Expansion of risk related to patent challenges and infringement, highlighting potential limitations and challenges. This change might result in increased legal costs and potential loss of exclusivity.
• Added potential liabilities under environmental laws for hazardous materials, which could exceed resources.
• Identified material weakness in internal controls may impact completion of initial business combination due to insufficient funds.
• Addition of details on the licensing agreement with NKMAX, including milestone fees ranging from $1.0 million to $5.0 million.
• Lack of prior BLA submission to the FDA or similar authorities for SNK01 and SNK02 poses regulatory approval risks.
• Addition of contractual obligations, policies, and other obligations related to data privacy and security.
• Increased reliance on CROs for clinical trials, with potential regulatory violations leading to penalties.
• Increased focus on the risks associated with patent protection in various jurisdictions, emphasizing the challenges of obtaining and enforcing patents globally.
• A new 1% U.S. federal excise tax on certain repurchases of stock was imposed.
• Increased operating losses with net losses of $83.0 million in 2023, up from $26.7 million in 2022.
• Substantial doubt expressed about ability to continue as a going concern without additional capital.
• Description of the challenges related to the shelf life and long-term storage of product candidates, impacting commercial supply and expenses.
• Description of risks associated with manufacturing process deviations impacting product quality and supply disruptions.
• Inclusion of stringent laws and regulations related to data privacy and security in various jurisdictions.
• Loss of key personnel could negatively impact operations and profitability, requiring negotiation of agreements.
• SNK01 Phase I trial results show generally good tolerability with only four Grade 2+ events.
• Dependence on third parties for clinical trials may lead to delays, additional costs, and potential data rejection.
• Disclosure of the potential impact of global supply chain disruptions on constructing commercial-scale manufacturing facilities.
• Risks associated with third parties conducting clinical trials, including delays, data quality, and termination consequences.
• Addition of risks related to cybersecurity threats, including ransomware attacks and supply chain vulnerabilities, impacting operations and data security.
• Disclosure of potential delays and disruptions due to contamination, shortages of raw materials, or supplier failures in the manufacturing process.
• Entered into a $5.0 million revolving line of credit agreement with East West Bank.
• The company will incur increased costs as a public company, impacting financial resources.
• Outstanding debts of approximately $19.9 million as of December 31, 2023, inclusive of various loans.
• Risks associated with adverse events could lead to trial halts, delays, or regulatory approval denials.
• Entered into an equity and business loan agreement for a multi-draw term loan financing up to $5 million.
• Inclusion of risks related to macroeconomic conditions like inflation, interest rates, and supply chain constraints, affecting operational costs and financial stability.
• Revolving line of credit with East West Bank requires maintaining a minimum cash balance of $15.0 million.
• Substantial accrued and unpaid transaction expenses and operating expenses post-Business Combination.
• Increased interest rate on the multi-draw term loan financing to 7.50% if the East West Bank Loan Agreement is no longer outstanding.
• Highlighting the risks associated with acquisitions and strategic collaborations, including increased expenses, debt, and operational challenges.
• Public perception of cell-based therapies may impact acceptance, demand, and enrollment in clinical trials.
• Additional financing is actively being sought to meet ongoing capital requirements and liquidity needs.
• Emphasis on the impact of changes in financial accounting standards on business practices and financial reporting, potentially affecting results of operations.
• Uncertainty in identifying and developing product candidates may lead to missed opportunities and commercial value.
• Added compliance requirements with anti-corruption laws and regulations, subject to penalties and liabilities.
• Failure to secure additional liquidity may lead to bankruptcy filing or liquidation, impacting stockholders.
• Introduction of risks related to data privacy and security obligations, emphasizing the potential consequences of security incidents and breaches on operations and reputation.
• Seeking expedited regulatory designations may not guarantee faster development or approval processes.
• Potential impact of healthcare reform initiatives and legislative proposals on business operations and financial condition.