Risk Factors Update Summary

• Recently obtained FDA approval for XDEMVY for Demodex blepharitis treatment in July 2023.
• Significant compliance costs may be incurred for implementing lawful transfer mechanisms and conducting data transfer impact assessments.
• Capital requirements are unpredictable and may change, requiring substantial additional funding. This could force delays or reductions in product development.
• Failure to obtain necessary capital could result in delays, reductions, or eliminations of product development.
• Expenses are expected to substantially increase, necessitating a larger amount of capital for commercialization efforts.
• Potential changes in regulatory environment and enforcement rules could impact commercialization efforts.
• An adequacy decision by the European Commission concluded that the U.S. ensures an adequate level of protection.
• Net losses increased from $62.1 million in 2022 to $135.9 million in 2023.
• Expect to incur substantial resources in commercialization efforts for XDEMVY and other product candidates.
• Anticipate increasing operating losses until revenue from XDEMVY exceeds expenses.
• Draw of $5.0 million made on March 15, 2023, and September 15, 2023, respectively.
• The European Commission approved the EU Standard Contractual Clauses in 2021.
• Sales of common stock in IPO and Follow-On Public Offerings raised $74.5 million and $99.3 million, respectively.
• Accumulated deficit increased from $108.8 million in 2022 to $244.7 million in 2023.
• Credit Facility aggregate principal amount reduced from $135.0 million to $125.0 million.
• The European Data Protection Board issued guidance on international data transfers.
• Initiated sales and marketing activities for XDEMVY in August 2023.
• Positive topline results announced for TP-03 for potential treatment of MGD in December 2023.
• The UK Information Commissioner's Office issued guidance on risk assessments for international transfers.
• The European Data Protection Board guidance involves conducting transfer impact assessments and analyzing data access laws.
• International transfer mechanisms, including the International Data Transfer Agreement, have been approved.