Risk Factors Update Summary

• Risks related to the Merger Agreement: Potential termination may incur a $2.4 million fee.
• Changes in data transfer regulations may require revised contractual clauses and documentation.
• Merger-related costs: Estimated at $5.6 million, impacting stock price and operations.
• Legal complexities in personal data transfers may impact financial results and operational changes.
• Financial losses: Accumulated deficit increased from $429.1 million to $542.1 million in 2023.
• Reduction in workforce may result in unintended consequences and additional costs, affecting operations.
• Workforce reduction: Workforce reduced by 86% to cut operating costs and evaluate strategic options.
• Potential loss of key personnel may limit the development and commercialization of product candidates.
• Strategic alternatives evaluation: Costs associated with evaluating strategic options may impact cash flow.
• Acquisition activities could disrupt operations and result in increased costs or dilution.
• Capital raising: Additional financing may cause dilution and restrict operations, impacting stockholders.
• Regulatory uncertainties: Changes in regulations may impact product development and commercialization.