Risk Factors Update Summary

• Cash and cash equivalents increased significantly to $120.4 million as of December 31, 2022.
• Various states have passed or are considering privacy laws, impacting data processing and health information.
• Changes in marketing approval policies may impact product viability and commercialization strategies.
• Existing cash may not be enough to complete development; further funding through equity offerings or debt is needed.
• Accumulated deficit increased to $325 million as of December 31, 2023, from $249 million.
• New health privacy laws in Washington, Connecticut, and Nevada introduce compliance risks.
• The Consolidated Appropriations Act delayed the 4% Medicare sequester until the end of 2024.
• The Inflation Reduction Act of 2022 may lead to unpredictable results affecting the biotechnology industry.
• Changes in tax laws, including a reduction in the tax rate from 35% to 21%, impact corporate taxation.
• Federal and state net operating loss carryforwards increased to $209 million and $180 million, respectively.
• The Tax Act eliminates the option to deduct research and development expenditures currently.
• Plans to discontinue further investment in XTX202 as a monotherapy in March 2024.
• The IRA introduces a 1% excise tax on certain stock repurchases by publicly traded corporations.
• Evaluating XTX101 and XTX202 in combination with atezolizumab in Phase 1 trials.
• Regulatory guidance under the Tax Act, CARES Act, and additional legislation may impact the company.
• Reliance on a single manufacturer in China poses risks due to geopolitical tensions and trade restrictions.
• Exclusive forum provisions may limit stockholders' ability to bring claims in a favorable judicial forum.