Risk Factors Update Summary

• Added emphasis on the success of YCANTH for molluscum contagiosum and product reimbursement challenges.
• Addition of various U.S. state privacy laws, like CCPA, with fines up to $7,500 per violation.
• Losses expected until revenue from YCANTH (VP-102) for molluscum contagiosum funds operations.
• Mentioned the increase in full-time employees from 22 to 100, impacting operations.
• Inclusion of EU GDPR and UK GDPR with fines up to 4% of annual global revenue.
• Accumulated deficit increased from $163 million to $230 million as of December 31, 2023.
• Cash and cash equivalents decreased from $69 million to $34 million as of December 31, 2023.
• Highlighted the importance of maintaining internal controls and financial reporting accuracy.
• Introduction of generative AI technology regulations, potentially leading to compliance costs and lawsuits.
• Net losses increased from $24.5 million in 2022 to $67.0 million in 2023.
• FDA approval received for YCANTH (VP-102) for molluscum contagiosum in July 2023.
• Discussed the potential impact of regulatory changes on drug pricing and commercial prospects.
• Borrowed $50.0 million on July 26, 2023, resulting in net proceeds of approximately $44.1 million.
• Commercial availability of YCANTH (VP-102) for molluscum contagiosum started in August 2023.
• Noted the ongoing regulatory oversight for approved product candidates and the need for REMS.