Risk Factors Update Summary

• Developing mRNA-based product candidates for autoimmune diseases using proprietary technology and manufacturing platform.
• The company may become eligible to repurchase outstanding options, subject to generating cash flow.
• Prohibition on actions by written consent of stockholders and the ability to issue preferred stock.
• Risks related to the Merger include integration challenges, potential cash settlement for Series A Preferred Stock.
• Completed early development clinical trials for SEL-212, but no Phase 3 trial completed for any other product candidate.
• Identified material weakness in internal control over financial reporting, requiring comprehensive actions for remediation.
• Sales of a substantial number of shares by stockholders could impact the market price of common stock.
• Provisions in the restated certificate of incorporation and various agreements could hinder acquisitions.
• Stockholder litigation history and potential future lawsuits could impact the company's operations.
• Accumulated deficit of $394 million as of December 31, 2023, with net losses of $25.7 million and $68.9 million for 2023 and 2022.
• Devoted resources to developing ImmTOR platform and mRNA-based therapies for autoimmune diseases post-Merger.
• Entered into Registration Rights Agreement for the issuance of up to 279 shares with common and Series A Preferred Stock holders.
• Anti-takeover provisions may make acquisition of the company more difficult, potentially limiting shareholder premiums.
• Integration expenses from the Merger and subsequent integration of Old Cartesian could impact financials.