Risk Factors Update Summary

• Nasdaq notified the company that its common stock bid price fell below $1.00 per share.
• Increased the number of employees from 19 to 10 as of March 20, 2023.
• The company faced potential delisting from Nasdaq due to not meeting stockholders' equity requirements.
• A reverse stock split was implemented to increase the closing bid price above $1.
• The company may face delisting if the stock price does not rise above $1.00 for ten consecutive days.
• Added a new facility in Newton, Massachusetts, to house lab personnel and the Massachusetts team.
• Decreased the number of Ph.D. employees from five to three.
• The company identified material weaknesses in internal controls for 2021, 2022, and 2023.
• The accumulated deficit increased from approximately $27 million to $46 million by the end of 2023.
• The company engaged a consultant to address internal control deficiencies and enhance reporting systems.
• Net losses for 2023 increased to approximately $18.5 million compared to $17.6 million in 2022.
• Failure to maintain effective internal controls could lead to financial misstatements and loss of investor confidence.
• Cash decreased from approximately $208 million to $52 million by the end of 2023.
• The company's amended bylaws contain provisions that could delay or prevent changes in control.
• The company received net proceeds of $0.9 million from an SBIR Award in February 2023.
• The company's internal controls over financial reporting are necessary to prevent fraud and ensure accurate reporting.
• The company may need to seek restructuring of liabilities, including bankruptcy, if unable to raise additional capital.