Risk Factors Update Summary

• The company is studying and developing product candidates in combination with other therapies, exposing them to additional regulatory risks.
• The federal civil and criminal false claims penalties increased from $13,946 to $27,894 per false claim.
• The company is advancing high-value opportunities, with NC410 showing early clinical activity in colorectal and ovarian cancers.
• Litigation costs may exceed insurance coverage, potentially impacting stock price and governance structure.
• LNCB74, an ADC directed to B7-H4, is planned for an IND application by year-end 2024.
• Violations of laws and regulations could result in significant civil, criminal, and administrative penalties.
• The company may face challenges securing sufficient quantities of product candidates economically, potentially delaying or preventing development and commercialization.
• The company is dependent on third-party suppliers, and their inability to comply with regulatory requirements could impact the supply chain.
• The company is reducing its workforce and pausing internal manufacturing operations to align with the focused pipeline.
• Increased costs to maintain sufficient liability insurance could impact attracting and retaining qualified personnel.
• The accumulated deficit increased from $261 million to $324 million as of December 31, 2023.
• The number of full-time employees decreased from 99 to 82 as of December 31, 2023.
• The company has been subject to securities litigation and may face volatility in stock prices.
• Uncertainty and higher costs may arise from evolving compliance requirements and governance practices.
• The cash, cash equivalents, and marketable securities decreased from $159 million to $108 million.
• The net losses were $74.7 million for 2023, compared to $69.4 million for 2022.
• The federal Anti-Kickback Statute was revised, including penalties assessed after January 15, 2024.