Risk Factors Update Summary

• Increased risk of intellectual property breaches due to reliance on third parties for clinical trials.
• Received delisting notification from Nasdaq due to Bid Price under $1 for 30 consecutive days.
• The Company announced entering into a Giiant License Agreement for PALI-2108, its only actively developed asset.
• Need to maintain minimum bid price of $1 per share for continued listing on Nasdaq.
• Potential significant financial impact from system failures, cyber-attacks, and data breaches.
• The success of PALI-2108 and LB1148 depends on development, regulatory approval, and commercialization.
• Dilution risk for existing shareholders due to potential issuance of up to 270,729,106 additional common shares.
• Identified material weakness in internal control over financial reporting, requiring remediation.
• The Company may face challenges in enrolling patients in clinical trials, potentially delaying progress.
• Expressed substantial doubt about ability to continue as a going concern, requiring additional financing.
• The Company's ability to secure additional funding for operations and clinical trials is uncertain.
• The Company's success depends on the ability to maintain intellectual property rights and comply with regulatory requirements.
• Net losses incurred of $12.3 million in 2023 and $14.3 million in 2022, with ongoing losses.
• The Company's reliance on third parties for clinical trials and development may pose risks.
• Reliance on third-party contractors for clinical drug supplies, with no infrastructure for supply.
• Dependence on third-party manufacturers and suppliers for compliance with laws and regulations.
• Uncertainty exists regarding reimbursement levels and pricing policies, impacting commercialization success.