Risk Factors Update Summary

• Substantial doubt raised regarding ability to continue as a going concern due to cash constraints.
• Increased exposure to regulatory actions, substantial fines, and injunctions against processing or transferring personal data from Europe or other countries. This could result in significant adverse consequences.
• Need for substantial additional funds to complete RaniPill platform, product development, and commercialization.
• Facing increased exposure to regulatory actions, substantial fines, and injunctions against processing or transferring personal data to or from Europe and other countries. This may lead to substantial penalties.
• Reduction in workforce by approximately 25% in November 2023 to focus on key priorities.
• Facing potential interruptions or degradation of operations, relocation of business or data processing activities to other jurisdictions at significant expense. This could impact business operations significantly.
• Potential adverse consequences, including loss of customers, inability to process personal data, adverse publicity, and substantial changes to the business model or operations. This could lead to significant disruptions.
• Risks related to intellectual property, including potential delays in product commercialization and the potential for loss of competitive advantage. This could impact market position and business growth.
• Risks related to cybersecurity threats, including cyberattacks, ransomware attacks, and supply chain vulnerabilities. These threats could disrupt operations, compromise sensitive data, and lead to financial loss.
• Risks related to compliance with data privacy and security obligations, including potential failures to comply, which could negatively impact business operations and compliance posture.