Risk Factors Update Summary

• The company reported a working capital deficit of approximately $2 million, raising concerns about liquidity.
• New environmental risks could interrupt operations and lead to liabilities exceeding resources, impacting financial stability.
• Management has expressed substantial doubt about our ability to continue as a going concern. As of December 31, 2023, we had cash and cash equivalents of approximately less than $0.1 million.
• The company may not have sufficient resources to adequately protect against cyber vulnerabilities, impacting investor confidence.
• Net losses increased from $26.7 million in 2022 to $83.0 million in 2023, raising concerns about sustainability.
• We could face civil penalties up to $[amount] for violations during clinical trials, impacting operations.
• We incurred approximately $14.3 million in transaction expenses related to the Business Combination, with substantial unpaid expenses remaining.
• Patent expiration dates may be altered, impacting competitive position; expected expiration between **June 2033** and **November 2043**.
• The company may face challenges in enforcing patents, which could materially affect its business.
• New healthcare laws may impose significant penalties, including fines and exclusion from Medicare, affecting operations.
• The company has completed clinical trials in non-small cell lung cancer using SNK01 but has not submitted a BLA to the FDA. This could delay commercialization efforts.
• Accumulated deficit reached $162.1 million as of December 31, 2023, indicating significant financial challenges ahead.
• The East West Bank Loan Agreement requires us to maintain a minimum cash balance of $15.0 million, which has been waived as of December 31, 2023.
• Dependency on third-party storage for NK cells poses risks; damage could delay treatments and incur significant expenses.
• The California Consumer Privacy Act could impose civil penalties of up to **$7,500** per violation, increasing compliance costs.
• The market value of our shares held by non-affiliates could exceed $700 million, affecting our emerging growth status.
• Current data from SNK01 clinical trials indicates four events ≥ Grade 2 reported by two participants. This could impact future patient recruitment and safety perceptions.
• Cybersecurity threats, including ransomware, could disrupt operations and lead to significant financial losses.
• Patent protection may not be available in all jurisdictions, limiting competitive advantages globally.
• A new 1% U.S. federal excise tax on stock repurchases could reduce cash available for operations and growth.
• Our reliance on third parties for clinical trials may delay commercialization and increase costs significantly.
• The loss of key personnel could materially adversely affect our business and financial condition.
• Manufacturing process changes may require additional clinical data, delaying product candidate approvals and increasing costs significantly.
• We may need to increase our product liability insurance coverage significantly as we commence clinical trials.
• Rising inflation has increased costs, potentially impacting operations and financial condition significantly.
• We currently have 63 full-time employees, and managing growth will require substantial additional resources.
• We expect to incur additional expenses transitioning to a public company, impacting our financial stability and operations.
• The occurrence of side effects may harm our reputation or the reputation of our products, significantly impacting our business and stock price.
• We may incur increased costs and obligations as a result of being a public company, impacting financial performance.
• Entered a $5.0 million revolving line of credit with East West Bank, secured by company assets, increasing financial obligations.
• Our product candidates may not achieve broad market acceptance, impacting potential revenue and profitability.
• We may seek expedited programs like RMAT or Breakthrough Therapy designation, but success is uncertain. This could affect our regulatory approval timelines.
• We may need to file for bankruptcy if additional sources of liquidity are not secured, risking total loss of investment.
• The trading price of our common stock may decline if analysts publish unfavorable research or cease coverage.
• Regulatory approval processes are lengthy and unpredictable, potentially delaying commercialization of product candidates and impacting revenue generation.
• If we fail to enroll a sufficient number of patients in our clinical trials, completion may be delayed, impacting our development timelines and commercialization efforts.
• We face intense competition from companies like Acepodia and ImmunityBio, which could hinder our market position.