Risk Factors Update Summary

• We will require substantial additional capital to finance operations, with cash increasing from $53 million to $91 million. This change might result in a more secure funding position.
• A cybersecurity committee has been established to enhance protection against cybersecurity threats. This change might result in improved security measures and reduced risk exposure.
• Federal and state net operating loss carryforwards increased from 41,179 to 45,942 thousand dollars. This change might result in improved tax benefits for the company.
• The Company had an accumulated deficit of $265 million as of December 31, 2023, up from $214 million. This change indicates worsening financial health.
• The company introduced a Compensation Recovery Policy effective November 15, 2023, enhancing governance. This policy mandates recovery of Excess Compensation after an Accounting Restatement.
• Our accumulated deficit increased from $214 million to $265 million, indicating worsening financial health and potential investor concerns.
• As of December 31, 2023, the company had federal and California tax net operating loss carryforwards of $188 million, up from $165 million in 2022.
• The company has amended the payment terms, reducing the amount from $[old amount] to $5,000,000. This change might result in improved cash flow management.
• Federal research and development credit carryforwards rose from 9,058 to 11,987 thousand dollars. This increase may enhance future tax credits available to the company.
• The Paydown Amount for Term Loans includes $5,000,000 of principal and $27,916.50 of accrued interest. This change may impact cash flow management significantly.
• The company anticipates completing enrollment of Stage 2 cohort of patients in the first quarter of 2024, which may accelerate clinical trial timelines.
• The Company expects to continue incurring net losses and operating cash outflows for at least the next several years, impacting future operations.
• The amendment specifies that the Amortization Date is now January 1, 2024, with potential extension to July 1, 2024, affecting repayment schedules.
• We anticipate needing to seek additional funds sooner than planned, which may impact our operational strategies and timelines.
• Cash, cash equivalents, and short-term investments decreased to approximately $53 million from $91 million, indicating potential liquidity issues.
• The company may face delisting from Nasdaq if the stock price remains below $1.00 for 30 consecutive days, affecting liquidity and investor confidence.
• Viracta's cash, cash equivalents, and short-term investments decreased to $53 million from $91 million, indicating potential liquidity challenges.
• The policy applies to Incentive-Based Compensation received after October 2, 2023, ensuring accountability for Covered Executives. This aligns with regulatory compliance and corporate governance standards.
• Total deferred tax assets increased from 60,785 to 73,274 thousand dollars. This change indicates a stronger financial position and potential for future tax savings.
• The definition of "Paydown Amount" has been added, which may impact future financial obligations and cash management strategies.
• The amendment allows for a prepayment option on Term Loans, enhancing financial flexibility for the company.
• The potential for significant adverse consequences from rising interest rates and inflation could restrict our ability to obtain debt financing.
• The company expects to incur net losses and operating cash outflows for at least the next several years, raising concerns about financial sustainability.
• The Company recorded share-based compensation of $7.6 million for the year ended December 31, 2023, down from $13.5 million, reflecting cost-cutting measures.
• The valuation allowance increased from 60 to 73 thousand dollars. This adjustment reflects a more conservative approach to recognizing deferred tax assets.
• The agreement now includes a clause for deferred principal payments, which could ease immediate financial pressures during repayment periods.
• The company has Orphan Drug Credit carryforwards of 13 million dollars, up from 10 million dollars. This increase may provide additional financial incentives for drug development.
• The Company sold 564,125 shares of common stock for $0.3 million at a weighted average price of $0.83, indicating reliance on equity financing.