Risk Factors Update Summary

• Key personnel changes: Added chief commercial officer and chief development officer roles.
• Accumulated deficit increased from $333 million to $388 million, with net losses of $54.4 million in 2023.
• Ownership impact: Senior management owning majority of ordinary shares may exert significant control.
• PFIC classification: Potential classification as a Passive Foreign Investment Company could have adverse tax consequences.
• Anticipate expenses to increase for clinical trials of ensifentrine, including fixed-dose combinations, for COPD.
• Uncertainty regarding the impact of the Unitary Patent and Unified Patent Court system in Europe.
• Tax relief changes: SME R&D Relief deduction reduced from 230% to 186% after April 1, 2023.
• Potential tax regime impact: Proposed merger of R&D Relief schemes may affect financial condition.
• Funding secured through a $400 million debt facility to cover operating expenses and capital requirements until 2026.
• Potential impact of new EU regulations on the biopharmaceutical industry and business operations.
• Tax credit reduction: Tax credit reduced from 14.5% to 10% from April 1, 2023.
• Internal control evaluation: Engaging in a detailed work plan to assess and document internal controls.
• Interest rate for the 2023 Term Loan increased from 5.38% to 5.85%, with a minimum rate of 11%.
• Potential challenges in protecting and enforcing patent rights under the new UPC system in Europe.