Risk Factors Update Summary

• Net loss decreased from $41.3 million to $37.3 million in 2023, showing improved financial performance.
• Added substantial competition details with specific competitors in the biotechnology and pharmaceutical industries.
• Expanded cybersecurity risks include threats like denial-of-service attacks, software bugs, and earthquakes.
• Changes in patent laws and regulations may diminish the value of intellectual property, affecting competitiveness.
• Nasdaq compliance issues, including regaining compliance under the Minimum Bid Price Requirement.
• Increased focus on cybersecurity incidents and disruptions, potential financial impact, and insurance coverage.
• Accumulated deficit increased from $179.9 million to $217.2 million in 2023, indicating financial challenges.
• Mentioned the need to build an appropriately sized commercial infrastructure depending on commercialization choices.
• Failure to secure financing may harm growth strategy, financial performance, and stock price.
• Dispute with 3D Medicines may impact milestone payments and development efforts in China.
• Highlighted the importance of cybersecurity and potential risks associated with cyber incidents.
• Reduction in full-time employees from 17 to 16, impacting operations and development.
• Market price volatility with shares ranging from a low of $0.88 to a high of $3.18.
• Cash balance decreased from approximately $17.2 million to $15 million in 2023, impacting liquidity.
• Future capital requirements are uncertain, dependent on successful development programs for SLS009.
• Increase in federal and state net operating loss carryforwards from approximately $49 million to $57 million.
• Potential delisting consequences from Nasdaq, impacting stock liquidity and investor confidence.