Risk Factors Update Summary

• Management may be diverted from development and commercialization due to substantial costs incurred.
• Addition of infections like sepsis and pneumonia, occasionally requiring supplementary oxygen, to risk factors.
• Net losses increased from $86.1 million to $113.8 million for the year ended December 31, 2022.
• The CPRA, effective January 1, 2023, introduces significant amendments to the CCPA, impacting regulatory exposure.
• Failure to identify relevant third-party patents could adversely affect ability to develop, manufacture, and market product candidates.
• Three patients in NKX019 dose-escalation study experienced cytokine release syndrome (CRS).
• Research and development expenses increased from $63 million to $90 million for the year ended December 31, 2022.
• Rising inflation and interest rates increase costs, negatively impacting labor, support, construction, and supply expenditures.
• Patent prosecution process complexity and uncertainty may lead to significant financial and management resource diversion.
• Interim data in June 2023 reported common higher-grade adverse events in NKX101 Phase 1 trial.
• Cash, cash equivalents, and investments decreased from $354.9 million to $250.9 million as of December 31, 2023.
• Acquisitions or partnerships may raise capital needs, dilute stock, or increase debt and liabilities.
• Reduction in headcount by 18 positions announced in October 2023, from 163 to 150 employees.
• Deprioritization of NKX101 program due to lower aggregate response rate in the dose-expansion cohort.
• Efforts ongoing to scale up and optimize manufacturing processes across the platform.
• Delays experienced in the past due to COVID-19-related restrictions at contract manufacturing sites.