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Item 1A. Risk Factors

2026-03-30 compared with 2025-04-02 · 1161 added, 983 removed, 18 unchanged (99% of the section changed)

In analyzing our company, you should carefully consider the following risk factors.

Factors that could cause or contribute to differences in our actual results include those discussed in the following subsection, as well as those discussed below in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere throughout this Annual Report on Form 10-K.

Each of the following risk factors, either alone or taken together, could adversely affect our business, operating results and financial condition, as well as adversely affect the value of an investment in our Company.

The risks and uncertainties described below are not the only ones we face.

Additional risks not currently known to us or other factors not perceived by us to present significant risks to our business at this time also may impair our business operations.

Risks Associated with Development and Commercialization of Our Drug Candidates

Clinical trials are expensive, time consuming, subject to delay and may be required to continue beyond our available funding and we cannot be certain that we will be able to raise sufficient funds to complete the development and commercialize our remaining product candidate currently in clinical development, should it succeed.

We are a clinical-stage biopharmaceutical company with one product candidate in clinical development currently, plogosertib, a polo-like kinase 1 (PLK 1) inhibitor for treatment of in esophageal cancer and acute leukemia (“plogo”) .

Clinical trials may also have uncertain outcomes.

We estimate that clinical trials of our drug candidate may be required to continue beyond our available funding and may take several more years to complete.

The designs used in some of our trials have not been used widely by other pharmaceutical companies.

We cannot guarantee that any clinical trials we undertake to conduct will be conducted as planned or completed on schedule or at all.

Failure can occur at any stage of the testing and we may experience numerous unforeseen events during, or as a result of, the clinical trial process that could delay or prevent commercialization of our current or future drug candidates.

The success of our product candidate will depend on several factors, including, but not limited to:

● delays in securing clinical investigators or trial sites for our clinical trials;

● delays in obtaining institutional review board, or IRB, and regulatory approvals to commence a clinical trial;

● failure to obtain regulatory authority permission to conduct a clinical trial, after review of an investigational new drug or equivalent foreign application or amendment;

● slower than anticipated rates of subject recruitment and enrollment, or not reaching the targeted number of subjects because of competition for patients from other trials;

● negative or inconclusive results from clinical trials, as demonstrated by our announcement on February 24, 2017 that our SEAMLESS Phase 3 study failed to reach its primary endpoint;

● inability to generate satisfactory preclinical or other nonclinical data, including, toxicology, or other in vivo or in vitro data or diagnostics to support the initiation or continuation of clinical trials;

● unforeseen safety issues;

● failure by clinical sites or contract research organizations, or CROs, or other third parties to adhere to clinical trial requirements, GCP, or other applicable regulatory requirements;

● subjects discontinuing participating in our clinical trials at a greater than expected rate;

● imposition by the FDA of a clinical hold or the requirement by other similar regulatory agencies that one or more clinical trials be delayed or halted;

● uncertain dosing issues that may or may not be related to incompletely explored pharmacokinetic and pharmacodynamics behaviors;

● approval and introduction of new therapies or changes in standards of practice or regulatory guidance that render our clinical trial endpoints or the targeting of our proposed indications less attractive;

● inability to monitor patients adequately during or after treatment or problems with investigator or patient compliance with the trial protocols;

● inability to replicate in large, controlled studies safety and efficacy data obtained from a limited number of patients in uncontrolled trials;

● the ultimate affordability of the cost of clinical trials of our product candidate;

● effectively launching commercial sales of our product candidate, if approved, whether alone or in collaboration with others;

● achieving acceptance of our product candidate, if approved, by patients, the medical community and third-party payors;

● effectively competing with other therapies;

● if our product candidate is approved, obtaining and maintaining coverage and adequate reimbursement by third-party payors, including government payors, for our product candidate;

● complying with all applicable regulatory requirements, including FDA current Good Clinical Practices (“GCP”), current Good Manufacturing Practices (“cGMP”), and standards, rules and regulations governing promotional and other marketing activities;

● changes in regulatory requirements and guidance that require amending or submitting new clinical protocols or performing additional nonclinical studies;

● unavailability of clinical trial supplies.

Any inability to successfully complete clinical development and obtain regulatory approval for our product candidate could result in additional costs to us or impair our ability to generate revenue.

In addition, if we make manufacturing or formulation changes to our product candidate, we may need to conduct additional nonclinical studies and/or clinical trials, or the results obtained from such new formulation may not be consistent with previous results obtained.

Clinical trial delays could also shorten any anticipated periods of patent exclusivity for our product candidate and may allow competitors to develop and bring products to market before we do, which could impair our ability to successfully commercialize our product candidate and may harm our business and results of operations.

If we experience delays or difficulties in the enrollment of research subjects in clinical trials, those clinical trials could take longer than expected to complete and our receipt of necessary regulatory approvals could be delayed or prevented.

We may not be able to initiate or continue clinical trials for our drug candidates if we are unable to locate and enroll a sufficient number of research subjects to participate in these trials.

In particular, for some diseases and conditions we are or will be focusing on, our pool of suitable patients may be smaller and more selective and our ability to enroll a sufficient number of suitable patients may be limited or take longer than anticipated.

In addition, some of our competitors have ongoing clinical trials for drug candidates that treat the same indications as our drug candidates, and volunteers or patients who would otherwise be eligible for our clinical trials may instead enroll in clinical trials of our competitors’ drug candidates.

The timing of our clinical trials depends in part on the rate at which we can recruit patients to participate in clinical trials of our product candidate, and we may experience delays in our clinical trials if we

encounter difficulties in enrollment.

If we experience delays in our clinical trials, the timeline for obtaining regulatory approval of our product candidate will most likely be delayed.

Many factors may affect our ability to identify, enroll and maintain qualified patients for any of our clinical trials may also be affected by other factors, including without limitation:

the size and nature of the target patient population;

● the severity of the disease under investigation;

● the subject eligibility criteria for the clinical trial in question;

● our ability to recruit clinical trial investigators with the appropriate competencies and experience;

● size and nature of the patient population;

● patients’ perceptions as to risks and benefits of the product candidate under study and the participation in a clinical trial generally in relation to other available therapies, including any new drugs that may be approved for the indications we are investigating regarding the drug candidate under study in the clinical trial;

● the approval and availability of other therapies to treat the disease or disorder that is being investigated in the clinical trial;

● the extent of the efforts to facilitate timely enrollment in clinical trials;

patients who do not complete the trials for personal reasons;

● severity of the disease under investigation;

● the patient referral practices of physicians;

● the ability to monitor volunteers or subjects adequately during and after treatment;

● the presence of other drug candidates in clinical development for the same indication or against the same target;

● the proximity and availability of clinical trial sites for prospective subjects.

In addition, our clinical trials will compete with other clinical trials for product candidates that are in the same therapeutic areas as our product candidate, and this competition will reduce the number and types of patients available to us, because some patients who might have opted to enroll in our trials may instead opt to enroll in a trial being conducted by one of our competitors.

Because the number of qualified clinical investigators is limited, we may conduct some of our clinical trials at the same clinical trial sites that some of our competitors use, which will reduce the number of patients who are available for our clinical trials at such clinical trial sites.

Moreover, because our product candidate represent a departure from more commonly used methods for cancer treatment, potential patients and their doctors may be inclined to use conventional therapies rather than enroll patients in any future clinical trial.

Our inability to enroll a sufficient number of subjects for our clinical trials would result in significant delays and could require us to abandon one or more clinical trials altogether.

Enrollment delays in our clinical trials may result in increased development costs for our drug candidates, and we may not have or be able to obtain sufficient cash to fund such increased costs when needed, which could result in the further delay or termination of clinical trials.

If we experience delays in the completion of, or termination of, any clinical trials of our product candidate, the commercial prospects of our product candidate could be harmed, and our ability to generate product revenue from plogo could be delayed or prevented.

In addition, any delays in completing our clinical trials would likely increase our overall costs, impair product candidate development and jeopardize our ability to obtain regulatory approval relative to our current plans.

Any of these occurrences may harm our business, financial condition, and prospects significantly.

The outcome of preclinical testing and early clinical trials may not be predictive of the success of later clinical trials, and the results of our clinical trials may not satisfy the requirements of the FDA or comparable foreign regulatory authorities.

We currently have no products approved for sale and we cannot guarantee that we will ever have marketable products.

Clinical failure can occur at any stage of clinical development.

Clinical trials may produce negative or inconclusive results, and we or any future collaborators may decide, or regulatory authorities may require us, to conduct additional clinical trials or nonclinical studies.

We will be required to demonstrate with substantial evidence through well-controlled, adequate clinical trials that plogo is safe and effective for use in a diverse population before we can seek marketing approvals for their commercial sale.

Success in preclinical studies and early-stage clinical trials does not mean that future larger registration clinical trials will be successful.

This is because product candidates in later-stage clinical trials may fail to demonstrate sufficient safety and efficacy to the satisfaction of the FDA and comparable foreign regulatory authorities despite having progressed through nonclinical studies and early-stage clinical trials.

From time to time, we may publish or report interim or preliminary data from our clinical trials.

Interim or preliminary data from clinical trials that we may conduct may not be indicative of the final results of such trials and are subject to the risk that one or more of the clinical outcomes may materially change as subject enrollment continues and more data from the trials become available.

Efficacy data from prospectively designed trials may differ significantly from those obtained from retrospective subgroup analyses.

If later-stage clinical trials do not produce favorable results, our ability to achieve regulatory approval for our product candidate may be adversely impacted.

Even if we believe that we have adequate data to support an application for regulatory approval to market our current product candidate, plogo, or any future product candidates, the FDA or other regulatory authorities may not agree and may require that we conduct additional clinical trials.

Interim or preliminary data also remain subject to audit and verification procedures that may result in the final data being materially different from the interim or preliminary data.

As a result, interim or preliminary data should be viewed with caution until the final data are available.

We are making use of biomarkers, which are not scientifically validated, and our reliance on biomarker data may thus cause us to direct our resources inefficiently.

We are making use of biomarkers in an effort to facilitate our drug development and to optimize our clinical trials.

Biomarkers are proteins or other substances whose presence in the blood can serve as an indicator of specific cell processes.

We believe that these biological markers serve a useful purpose in helping us to evaluate whether our drug candidates are having their intended effects through their assumed mechanisms, and that they may thus enable us to identify more promising drug candidates at an early stage and to direct our resources efficiently.

We also believe that biomarkers may eventually allow us to improve patient selection in connection with clinical trials and monitor patient compliance with trial protocols.

For most purposes, however, the biomarkers we are currently evaluating have not been scientifically validated.

If our understanding and use of biomarkers is inaccurate or flawed, or if our reliance on them is otherwise misplaced, then we will not only fail to realize any benefits from using biomarkers but may also be led to invest time and financial resources inefficiently in attempting to develop inappropriate drug candidates.

Moreover, although the FDA has issued for comment a draft guidance document on the potential use of biomarker data in clinical development, such data are not currently accepted by the FDA or other regulatory agencies in the United States, the European Union or elsewhere in applications for regulatory approval of drug candidates, and there is no guarantee that such data will ever be accepted by the relevant authorities in this connection.

Our biomarker data should not be interpreted as evidence of efficacy.

The review processes of regulatory authorities are lengthy, time consuming, expensive and inherently unpredictable.

If we are unable to obtain approval for our drug candidates from applicable regulatory authorities, we will not be able to market and sell those drug candidates in those countries or regions and our business could be substantially harmed.

The research, testing, manufacturing, labeling, approval, sale, marketing and distribution of drug products are, and will remain, subject to extensive regulation by the FDA in the United States and by the respective regulatory authorities in other countries where regulations differ.

Clinical testing is expensive and can take many years to complete, with the outcome inherently uncertain.

Failure can occur at any time during the clinical trial process.

Before obtaining approval from regulatory authorities for the sale of our product candidate, we must conduct extensive clinical trials to demonstrate the safety and efficacy of our product candidate in humans.

Prior to initiating clinical trials, a sponsor must complete extensive preclinical testing of a product candidate, including, in most cases, preclinical efficacy experiments as well as IND-enabling toxicology studies.

These experiments and studies may be time-consuming and expensive to complete.

We are not permitted to market plogo or any of our future product candidates in the United States until we receive the respective approval of a new drug applications (an “NDA”) from the FDA, or in any foreign countries until we receive the requisite approval from the respective regulatory authorities in such countries.

The time required to obtain approval, if any, by the FDA, EMA and comparable foreign authorities is unpredictable, but typically takes many years following the commencement of clinical trials, if approval is obtained at all, and depends upon numerous factors, including the substantial discretion of the regulatory authorities and the type, complexity and novelty of the product candidates involved.

Regulatory authorities have substantial discretion in the approval process and may refuse to accept any application or may decide that our data are insufficient for approval and require additional nonclinical studies or clinical trials.

We have not submitted a marketing application such as an NDA to the FDA, an MAA to the EMA or any similar application to any other jurisdiction.

We have limited experience in planning and conducting the clinical trials required for marketing approvals, and we have relied, and expect to continue to rely on third-party CROs to assist us in this process.

Obtaining marketing approval requires the submission of extensive nonclinical and clinical data and supporting information to regulatory authorities for each therapeutic indication to establish the product candidate’s safety and effectiveness.

Securing marketing approval also requires the submission of information about the product manufacturing process, and in many cases the inspection of manufacturing, processing and packaging facilities by the regulatory authorities.

Our product candidate, plogo, may not be effective, may be only moderately effective or may prove to have undesirable or unintended side effects, toxicities or other characteristics that may preclude our obtaining marketing approval or prevent or limit commercial use, or there may be deficiencies in cGMP compliance by us or by our contract manufacturers that could result in the candidate not being approved.

Moreover, we have not obtained regulatory approval for any drug candidate in any jurisdiction and it is possible that none of our existing drug candidates or any drug candidates we may seek to develop in the future will ever obtain regulatory approval.

In addition, plogo could fail to receive, or could be delayed in receiving, regulatory approval for many reasons, including any one or more of the following:

● the FDA, EMA or comparable foreign regulatory authorities may disagree with the design or implementation of our clinical trials;

● we may be unable to demonstrate to the satisfaction of the FDA, EMA or comparable foreign regulatory authorities that a drug candidate is safe and effective for its proposed indication;

● the results of clinical trials may not meet the level of statistical significance required by the FDA, EMA or comparable foreign regulatory authorities for approval;

● delay or failure in obtaining IRB approval or the approval of other reviewing entities, including comparable foreign regulatory authorities, to conduct a clinical trial at each site;

● we may be unable to demonstrate that a drug candidate’s clinical and other benefits outweigh its safety risks;

● the FDA, EMA or comparable foreign regulatory authorities may disagree with our interpretation of data from preclinical studies or clinical trials;

● failure of our third-party clinical trial managers, CROs, clinical trial sites, contracted laboratories or other third-party vendors to satisfy their contractual duties, meet expected deadlines or return trustworthy data;

● a decision by the FDA, the IRB, a comparable foreign regulatory authority, or us to suspend or terminate clinical trials at any time for safety issues or for any other reason;

● lack of adequate funding to continue a trial, including the incurrence of unforeseen costs due to enrollment delays, requirements to conduct additional studies or increased expenses associated with the services of our CROs and other third parties

● the data collected from clinical trials of our drug candidates may not be sufficient to support the submission of an NDA or other submission or to obtain regulatory approval in the United States or elsewhere;

● upon review of our clinical trial sites and data, the FDA or comparable foreign regulatory authorities may find our record keeping or the record keeping of our clinical trial sites to be inadequate;

● the manufacturing processes or facilities of third-party manufacturers with which we contract for clinical and commercial supplies may fail to meet the requirements of the FDA, EMA or comparable foreign regulatory authorities;

● the FDA, EMA or comparable foreign regulatory authorities may fail to approve the companion diagnostics we contemplate developing internally or with partners;

● the change of the medical standard of care or the approval policies or regulations of the FDA, EMA or comparable foreign regulatory authorities may significantly change in a manner that renders our clinical data insufficient for approval.

If we experience delays in the completion or termination of any clinical trial of our product candidate, the approval and commercial prospects of our product candidate will be harmed, delaying our ability to generate product revenues from such product candidate and our costs will most likely increase.

The required regulatory approvals may also be delayed, thereby jeopardizing our ability to commence product sales and generate revenues and the period of commercial exclusivity for our product may be decreased.

Regulatory approval of our product candidate may be denied for the same reasons that caused the delay.

The time and expense of the approval process, as well as the unpredictability of future clinical trial results and other contributing factors, may result in our failure to obtain regulatory approval to market any of our product candidate in one or more jurisdictions, which would significantly harm our business, results of operations and prospects.

In such cases, we may also not have the resources to conduct new clinical trials and/or we may determine that further clinical development of any such drug candidate is not justified and may discontinue any such programs.

In addition, even if we were to obtain regulatory approval in one or more jurisdictions, regulatory authorities may approve any of our drug candidates for fewer or more limited indications than we request, may not approve prices we may propose to charge for our products, may grant approval contingent on the performance of costly post-marketing clinical trials (referred to as “conditional” or “accelerated” approval depending on the jurisdiction), or may approve a drug candidate with a label that does not include the labeling claims necessary or desirable for the successful commercialization of that drug candidate.

Any of the foregoing circumstances could materially harm the commercial prospects for our drug candidates.

Our product candidate may cause undesirable side effects that could delay or prevent their marketing approval, limit their commercial potential, or result in significant negative consequences following marketing approval, if marketing approval is obtained.

Undesirable side effects caused by our product candidate, plogo, could cause us or the FDA or other regulatory authorities to interrupt, delay or halt our clinical trials and could result in a more restrictive label or the delay or denial of marketing approval by the FDA or other applicable regulatory authorities.

In the event that our clinical trials produce undesirable side effects, our trials could be suspended or terminated and the FDA or comparable foreign regulatory authorities could order us to cease further development of or deny approval of our product candidate for any or all targeted indications.

In addition to this, the product-related side effects could affect patient recruitment or the ability of enrolled patients to complete the trial or result in potential product liability claims.

Clinical trials by their nature utilize a sample of the potential patient population.

With a limited number of patients, rare and severe side effects of our product candidate may only be uncovered with a significantly larger number of patients exposed to the product candidate.

If plogo receives marketing approval and we or others identify undesirable side effects caused by plogo after such approval, a number of potentially significant negative consequences could result, including:

● regulatory authorities may withdraw or limit their approval of plogo;

● regulatory authorities may require the addition of labeling statements, specific warnings or a contraindication;

● we may be required to create a medication guide outlining the risks of such side effects for distribution to patients, or we may be required to implement a REMS to ensure that the benefits of the product outweigh the risks;

● we may be required to change the way plogo is distributed or administered, or change the labeling of plogo;

● we may be required to conduct post-marketing studies;

● we may be subject to regulatory investigations and government enforcement actions;

● the FDA or a comparable foreign regulatory authority may require us to conduct additional clinical trials or costly post-marketing testing and surveillance to monitor the safety and efficacy of the product;

● we may decide to recall plogo from the marketplace after it is approved;

● we could be sued and held liable for injury caused to individuals exposed to or taking plogo;

● our reputation may suffer.

Any of these events could prevent us from achieving or maintaining market acceptance of plogo and could substantially increase the costs of its commercializing, if approved, and significantly impact our ability to successfully commercialize plogo and generate revenues.

Our product development may not uncover all possible adverse events that patients who take our product candidate may experience.

The number of subjects exposed to our product candidate and the average exposure time in the clinical development program may be inadequate to detect rare adverse events or chance findings that may only be detected once the product is administered to more patients and for greater periods of time.

Clinical trials by their nature utilize a sample of the potential patient population.

However, with a limited number of subjects and limited duration of exposure, we cannot be fully assured that rare and severe side effects of our product candidate will be uncovered.

Such rare and severe side effects may only be uncovered with a significantly larger number of patients exposed to our product candidate.

If such safety problems occur or are identified after our product candidate reaches the market, the FDA or other regulatory body may require that we amend the labeling of the product or recall the product or may even withdraw approval for the product.

As we evolve from a company primarily involved in discovery and development to one also involved in the commercialization of drugs and devices, we may encounter difficulties in managing our growth and expanding our operations successfully.

In order to execute our business strategy, we will need to expand our development, control and regulatory capabilities and develop financial, manufacturing, marketing and sales capabilities or contract with third parties to provide these capabilities for us.

If our operations expand, we expect that we will need to manage additional relationships with various collaborative partners, suppliers and other third parties.

Our ability to manage our operations and any growth will require us to make appropriate changes and upgrades, as necessary, to our operational, financial and management controls, reporting systems and procedures wherever we may operate.

Any inability to manage growth could delay the execution of our business plan or disrupt our operations.

Our applications for regulatory approval could be delayed or denied due to problems with studies conducted before we licensed the rights to some of our product candidates.

We may now or in the future license some of the compounds and current and future drug candidates used in our research programs from third parties.

Our present research involving these compounds relies upon previous research conducted by third parties over whom we had no control and before we in-licensed the drug candidates.

In order to receive regulatory approval of a drug candidate, we must present all relevant data and information obtained during our research and development, including research conducted prior to our licensure of the drug candidate.

Although we are not currently aware of any such problems, any problems that emerge with preclinical research and testing conducted prior to our in-licensing may affect future results or our ability to document prior research and to conduct clinical trials, which could delay, limit or prevent regulatory approval for our drug candidates.

Even if we obtain regulatory approval for a product candidate, we will remain subject to ongoing regulatory requirements.

Our business is dependent on our ability to obtain regulatory approval for our product candidate in a timely manner.

We cannot commercialize our product candidate in the U.S.

without first obtaining regulatory approval for the product from the FDA.

Similarly, we cannot commercialize our product candidate outside of the U.S.

without obtaining regulatory approval from comparable foreign regulatory authorities.

Before obtaining regulatory approvals for the commercial sale of our product candidate for a target indication, we must demonstrate with substantial evidence gathered in preclinical studies and clinical trials that the product candidate is safe and effective for use for that target indication and that the manufacturing facilities, processes and controls are adequate with respect to such product candidate.

The time required to obtain approval by the FDA and comparable foreign regulatory authorities is unpredictable but typically takes many years following the commencement of preclinical studies and clinical trials and depends upon numerous factors, including the substantial discretion of the regulatory authorities.

In addition, approval policies, regulations, or the type and amount of clinical data necessary to gain approval may change during the course of a product candidate’s clinical development and may vary among jurisdictions.

Even, if plogo is approved for marketing, we will be subject to ongoing regulatory requirements, including with respect to manufacturing, labeling, packaging, storage, advertising, promotion, sampling, record-keeping, conduct of post-marketing clinical trials, and submission of safety, efficacy and other post-approval information, including both federal and state requirements in the United States and requirements of comparable foreign regulatory authorities.

Manufacturers and manufacturers’ facilities are required to continuously comply with FDA and comparable foreign regulatory authority requirements, including ensuring that quality control and manufacturing procedures conform to cGMP regulations and corresponding foreign regulatory manufacturing requirements.

As such, we and our contract manufacturers will be subject to continual review and inspections to assess compliance with cGMP and adherence to commitments made in any marketing application.

Accordingly, we and others with whom we work must continue to expend time, money, and effort in all areas of regulatory compliance, including manufacturing, production, and quality control.

Any regulatory approvals that we receive for plogo may be subject to limitations on the approved indicated uses for which the product may be marketed or to the conditions of approval, or contain requirements for potentially costly post-marketing testing, including Phase 4 clinical trials, and surveillance to monitor the safety and efficacy of the product candidate.

The FDA may also require a REMS program as a condition of approval of our product candidate, which could entail requirements for long-term patient follow-up, a medication guide, physician communication plans or additional elements to ensure safe use, such as restricted distribution methods, patient registries and other risk minimization tools.

In addition, if the FDA or a comparable foreign regulatory authority approves our product candidate, we will have to comply with requirements including submissions of safety and other post-marketing information and reports, registration, as well as continued compliance with cGMP and GCP for any clinical trials that we conduct post-approval.

The FDA strictly regulates marketing, labeling, advertising, and promotion of products that are placed on the market.

Drugs may be promoted only for the approved indications and in accordance with the provisions of the approved

Advertising and promotion of any product candidate that obtains approval in the U.S.

is heavily scrutinized by the FDA, the Department of Justice, the Office of Inspector General of Health and Human Services, state attorneys general, members of Congress and the public.

A company can make only those claims relating to safety and efficacy, purity and potency that are approved by the FDA and in accordance with the provisions of the approved label.

Additionally, advertising and promotion of any product candidate that obtains approval outside of the U.S.

is heavily scrutinized by comparable foreign regulatory authorities.

Violations, including actual or alleged promotion of our product for unapproved or off-label uses, are subject to enforcement letters, inquiries and investigations, and civil and criminal sanctions by the FDA, as well as prosecution under the federal False Claims Act.

Any actual or alleged failure to comply with labeling and promotion requirements may have a negative impact on our business.

In addition, the FDA and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and a company that is found to have improperly promoted off-label uses may be subject to significant liability.

Failure to comply with regulatory requirements may result in revisions to the approved labeling to add new safety information;

imposition of post-market studies or clinical studies to assess new safety risks;

or imposition of distribution restrictions or other restrictions under a REMS program.

Other potential consequences include, among other things:

● restrictions on the marketing or manufacturing of the product, complete withdrawal of the product from the market or product recalls;

● fines, warning letters or other enforcement-related letters or clinical holds on post-approval clinical trials;

● refusal of the FDA to approve pending NDAs or supplements to approved NDAs, or suspension or revocation of product approvals;

● product seizure or detention, or refusal to permit the import or export of products;

● injunctions or the imposition of civil or criminal penalties;

● consent decrees, corporate integrity agreements, debarment, or exclusion from federal health care programs;

or mandated modification of promotional materials and labeling and the issuance of corrective information.

The policies of the FDA and of other regulatory authorities may change and additional government regulations may be enacted that could prevent, limit or delay regulatory approval of our product candidate.

We cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative action, either in the United States or abroad.

If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any marketing approval that we may have obtained and we may not achieve or sustain profitability.

Obtaining and maintaining marketing approval of our current and future product candidates in one jurisdiction does not mean that we will be successful in obtaining marketing approval of our current and future therapeutic product candidates in other jurisdictions.

Obtaining and maintaining marketing approval of our remaining product candidate, and any future product candidates, in one jurisdiction does not guarantee that we will be able to obtain or maintain marketing approval in any other jurisdiction, while a failure or delay in obtaining marketing approval in one jurisdiction may have a negative effect on the marketing approval process in others.

For example, even if the FDA grants marketing approval of a product candidate, comparable foreign regulatory authorities in foreign jurisdictions must also approve the manufacturing, marketing and promotion of the product candidate in those countries.

Approval procedures vary among jurisdictions and can involve requirements and administrative review periods different from, and greater than, those in the United States, including additional nonclinical studies or clinical trials in the event that certain nonclinical studies or clinical trials conducted in one jurisdiction are not accepted by regulatory authorities in other jurisdictions.

In many jurisdictions outside the United States, a product candidate must be approved for reimbursement before it can be approved for sale in that jurisdiction.

In some cases, the price that we intend to charge for our future products will also be subject to approval.

We may submit marketing applications in other countries in addition to the United States.

Regulatory authorities in jurisdictions outside of the United States have requirements for approval of product candidates with which we must

comply prior to marketing in those jurisdictions.

Obtaining foreign marketing approvals and compliance with foreign regulatory requirements could result in significant delays, difficulties and costs for us, and could delay or prevent the introduction of our products in certain countries.

If we fail to comply with the regulatory requirements in international markets and/or receive applicable marketing approvals, our target market will be reduced and our ability to realize the full market potential of our product candidate will be harmed.

Even if we successfully complete the clinical trials for Plogo, the product candidate may fail for other reasons.

Even if we successfully complete the clinical trials for our product candidate, the product candidate may fail for other reasons, including, without limitation, the possibilities that the product candidate will:

● fail to receive the regulatory approvals required to market them as drugs;

● be subject to proprietary rights held by others requiring the negotiation of a license agreement prior to marketing;

● be difficult or expensive to manufacture on a commercial scale;

● have adverse side effects that make their use less desirable;

● fail to compete effectively with product candidates or other treatments commercialized by our competitors.

If we are unable to receive the required regulatory approvals, secure our intellectual property rights, minimize the incidence of any adverse side effects or if we fail to compete with our competitors’ products, our business, financial condition, and results of operations may be materially and adversely affected.

We face intense competition and our competitors may develop drugs that are less expensive, safer, or more effective than our drug candidates.

A large number of drug candidates are in development for the treatment of leukemia, solid tumors including breast, endometrial/uterine and ovarian cancers and lymphomas.

Several pharmaceutical and biotechnology companies have PLK1 inhibitors or other products on the market or in clinical trials which may be competitive to our drug in both hematological and oncology indications.

Our competitors, either alone or together with collaborators, may have substantially greater financial resources and research and development staff.

Our competitors may also have more experience:

● developing drug candidates;

● conducting preclinical and clinical trials;

● obtaining regulatory approvals;

● commercializing product candidates.

Our competitors may succeed in obtaining patent protection and regulatory approval and may market drugs before we do.

If our competitors market drugs that are less expensive, safer, more effective or more convenient to administer than our potential drugs, or that reach the market sooner than our potential drugs, we may not achieve commercial success.

Scientific, clinical or technical developments by our competitors may render our drug candidates obsolete or noncompetitive.

We anticipate that we will face increased competition in the future as new companies enter the markets and as scientific developments progress.

If our drug candidates obtain regulatory approvals, but do not compete effectively in the marketplace, our business will suffer.

Our future product candidates, if any, for which we obtain approval may face competition sooner than anticipated.

Even if we are successful in achieving regulatory approval to commercialize a product candidate ahead of our competitors, our future pharmaceutical products may face direct competition from generic and other follow-on drug products.

plogo, or future product candidates, if any, that may achieve regulatory approval in the future may face

competition from follow-on products earlier or more aggressively than anticipated, depending upon how well such approved products perform in the U.S.

prescription drug market.

Our ability to compete may also be affected in many cases by insurers or other third-party payors seeking to encourage the use of generic products.

The Hatch-Waxman Amendments to the FDCA authorized the FDA to approve generic drugs that are the same as drugs previously approved for marketing under the NDA provisions of the statute pursuant to abbreviated new drug applications (“ANDAs”) and, in addition, created the Section 505(b)(2) NDA pathway.

An ANDA relies on the preclinical and clinical testing conducted for a previously approved reference listed drug and must demonstrate to the FDA that the generic drug product is identical to the RLD with respect to the active ingredients, the route of administration, the dosage form, and the strength of the drug and also that it is “bioequivalent” to the reference listed drug.

In contrast, Section 505(b)(2) enables the applicant to rely, in part, on the FDA’s prior findings of safety and efficacy data for an existing product, or published literature, in support of its application.

Section 505(b)(2) provides an alternate path to FDA approval for new or improved formulations or new uses of previously approved products;

for example, a follow-on applicant may be seeking approval to market a previously approved drug for new indications or for a new patient population that would require new clinical data to demonstrate safety or effectiveness.

Such products, if approved and depending upon the scope of the changes made to the reference drug, may also compete with any product candidate for which we receive approval.

The FDA is prohibited by statute from approving an ANDA or 505(b)(2) NDA when certain marketing or data exclusivity protections apply to the reference listed drug.

However, if any competitor or third party is able to demonstrate bioequivalence without infringing our patents, then such competitor or third party may then be able to gain approval of an ANDA and introduce a competing generic product onto the market.

Furthermore, the CREATES Act established a private cause of action that permits a generic product developer to sue the brand manufacturer to compel it to furnish necessary samples of an RLD on “commercially reasonable, market-based terms.” If generic developers request samples of any product candidate for which we receive marketing approval in order to conduct comparative testing to support one or more ANDAs for a generic version of our products, and we refuse any such request, we may be subject to litigation under the CREATES Act.

Although lawsuits have been filed under the CREATES Act since its enactment, those lawsuits have been settled privately;

therefore, to date, no federal court has reviewed or opined on the statutory language and there continues to be uncertainty regarding the scope and application of the law.

We cannot predict the interest of potential follow-on competitors or how quickly others may seek to come to market with competing products, whether approved as a direct ANDA competitor or as a Section 505(b)(2) NDA referencing one of our future product candidates, if any, beyond plogo.

If the FDA approves generic versions of any of our products in the future, should they be approved for commercial marketing, such competitive products may be able to immediately compete with us in each indication for which our product has received approval, which could negatively impact our future revenue, profitability and cash flow and substantially limit our ability to obtain a return on our investments.

The commercial success of our drug candidates depends upon their market acceptance among physicians, patients, healthcare providers and payors and the medical community.

If our drug candidates are approved, or are approved by the FDA or EMA, together with another agent such as decitabine, the resulting drugs, if any, must still gain market acceptance among physicians, healthcare providers and payors, patients and the medical community.

The degree of market acceptance of any of our approved drugs will depend on a variety of factors, including:

● timing of market introduction, number and clinical profile of competitive drugs;

● our ability to provide acceptable evidence of safety and efficacy;

● relative convenience and ease of administration;

● pricing and cost-effectiveness, which may be subject to regulatory control;

● availability of coverage, reimbursement and adequate payment from health maintenance organizations and

other third-party payors;

● prevalence and severity of adverse side effects;

and other potential advantages over alternative treatment methods.

If any product candidate that we develop does not provide a treatment regimen that is at least as beneficial as the current standard of care or otherwise does not provide some additional patient benefit over the current standard of care, that product will not achieve market acceptance and we will not generate sufficient revenues to achieve profitability.

If our drug candidates or distribution partners’ products fail to achieve market acceptance, we may not be able to generate significant revenue and our business would suffer, and our business may be affected by the efforts of government and third-party payors to contain or reduce the cost of healthcare through various means.

Reimbursement decisions by third-party payors may have an adverse effect on pricing and market acceptance.

If there is not sufficient reimbursement for our products, it is less likely that they will be widely used.

Market acceptance and sales of Plogo that we develop, if approved, will depend on reimbursement policies, and may be affected by future healthcare reform measures.

Government authorities and third-party payors, such as private health insurers and health maintenance organizations, decide which drugs they will cover and establish payment levels.

We cannot be certain that reimbursement will be available for our product candidate.

Also, we cannot be certain that reimbursement policies will not reduce the demand for, or the price paid for, our products.

If reimbursement is not available or is available on a limited basis, we may not be able to successfully commercialize plogo our any of our future product candidates.

Even if we succeed in bringing one or more products to the market, these products may not be considered medically necessary and/or cost-effective, and the amount reimbursed for any products may be insufficient to allow us to sell our products on a competitive basis.

At this time, we are unable to determine their cost effectiveness or the likely level or method of reimbursement for plogo or any of our future product candidates.

Increasingly, third-party payors, such as government and private insurance plans, are requiring that biopharmaceutical companies provide them with predetermined discounts from list prices and are seeking to reduce the prices charged or the amounts paid for biopharmaceutical products.

If the price we are able to charge for any products we develop, or the payments provided for such products, is inadequate in light of our development and other costs, our return on investment could be adversely affected.

Discussions continue at the federal level regarding policies that would require manufacturers to pay higher rebates in Medicare Part D, give states more flexibility on drugs that are covered under the Medicaid program, and other policy proposals that could impact reimbursement for our products.

The efforts of governments and third-party payors to contain or reduce the cost of health care and legislative and regulatory proposals to broaden the availability of health care will continue to affect the business and financial condition of pharmaceutical and biopharmaceutical companies.

A number of legislative and regulatory changes in the health care system in the United States and other major health care markets have been proposed and/or adopted in the recent past, and such efforts have expanded substantially in the past several years.

Our business may be affected by the efforts of government and third-party pairs to contain or reduce the cost of healthcare through various means.

The failure to attract and retain skilled personnel and key relationships could impair our drug development and commercialization efforts.

We are highly dependent on our senior management and key clinical development, scientific and technical personnel.

The loss of the services of any member of our senior management, clinical development, scientific or technical staff may significantly delay or prevent the achievement of drug development and other business objectives and could have a material adverse effect on our business, operating results and financial condition.

We also rely on consultants and advisors to assist us in formulating our strategy.

All of our consultants and advisors are either self-employed or employed by other organizations, and they may have conflicts of interest or other commitments, such as consulting or advisory contracts with other organizations, that may affect their ability to contribute to us.

expand and develop new drug candidates.

We will need to hire additional employees in order to continue our clinical trials and market our drug candidates.

This strategy will require us to recruit additional executive management and clinical development, scientific, technical and sales and marketing personnel.

There is currently intense competition for skilled executives and employees with relevant clinical development, scientific, technical and sales and marketing expertise, and this competition is likely to continue.

The inability to attract and retain sufficient clinical development, scientific, technical and managerial personnel could limit or delay our product development efforts, which would adversely affect the development of our drug candidates and commercialization of our potential drugs and growth of our business.

With the unemployed-to-job-openings ratio remaining under 1 at 0.9, the labor shortage continues to cause the Company to experience a tight and competitive labor market and cause us to face unforeseen challenges in the availability of labor.

A sustained labor shortage or increased turnover rates within our employee base as a result of general macroeconomic factors have led and, in the future, could lead to increased costs, such as increased overtime to meet demand and increased wages to attract and retain employees.

We have also been negatively affected and could continue to be negatively affected by labor shortages or constraints experienced by our partners.

Failure to achieve and maintain a diverse workforce and leadership team, compensate our employees competitively and fairly, maintain a safe and inclusive environment or promote the well-being of our employees could affect our reputation and also result in lower performance and an inability to retain valuable employees.

We may be exposed to product liability claims that cause us to incur substantial liabilities and we may be required to limit commercialization of our drugs that may damage our reputation and we may not be able to obtain adequate insurance.

We face an inherent risk of product liability as a result of the clinical testing and will face an even greater risk if we commercialize our drugs.

For example, we may be sued if our drugs allegedly causes injury or is found to be otherwise unsuitable during product testing, manufacturing, marketing or sale.

Any such product liability claims may include allegations of defects in manufacturing, defects in design, a failure to warn of dangers inherent in the product, negligence, strict liability and a breach of warranties.

Claims could also be asserted under state consumer protection acts.

We believe that we have obtained reasonably adequate product liability insurance coverage for our trials.

We cannot predict, however, the possible harm or side effects that may result from our clinical trials.

Such claims may damage our reputation and we may not have sufficient resources to pay for any liabilities resulting from a claim excluded from, or beyond the limit of, our insurance coverage or if the amount of the insurance coverage is insufficient to meet any liabilities resulting from any claims.

We may also be exposed to additional risks of product liability claims.

These risks exist even with respect to drugs that are approved for commercial sale by the FDA or other regulatory authorities in the United States, the European Union or elsewhere and manufactured in facilities licensed and regulated by the FDA, EMA or other such regulatory authorities.

We have secured limited product liability insurance coverage but may not be able to maintain such insurance on acceptable terms with adequate coverage, or at a reasonable cost.

There is also a risk that third parties that we have agreed to indemnify could incur liability.

Even if we were ultimately successful in product liability litigation, the litigation would consume substantial amounts of our financial and managerial resources and may exceed insurance coverage creating adverse publicity, all of which would impair our ability to generate sales of the litigated product as well as our other potential drugs.

If a supplier upon whom we rely fails to produce on a timely basis the finished goods in the volumes that we require or fails to meet quality standards and maintain necessary licensure from regulatory authorities, we may be unable to meet demand for our products, potentially resulting in lost revenues.

If any third-party manufacturer service providers do not meet our or our licensor’s requirements for quality, quantity or timeliness, or do not achieve and maintain compliance with all applicable regulations, demand for our products or our ability to continue supplying such products could substantially decline.

As the third-party manufacturers are the sole supplier of the products, any delays may impact our sales.

In all the countries where we may sell our products, governmental regulations exist to define standards for manufacturing, packaging, labeling and storing.

All of our suppliers of raw materials and contract manufacturers must comply with these regulations.

Failure to do so could result in supply interruptions.

In the United States, the FDA requires that all suppliers of pharmaceutical bulk material and all manufacturers of pharmaceuticals for sale in or from the United States achieve and maintain compliance with the FDA’s cGMP.

Similar requirements exist in the European Union through the EMA.

Failure of our third-party manufacturers to comply with applicable regulations could result in sanctions being imposed on them or us, including fines, injunctions, civil penalties, disgorgement, suspension or withdrawal of approvals, license revocation, seizures or recalls of products, operating restrictions and criminal prosecutions, any of which could significantly and adversely affect supplies of our products.

In addition, before any product batch produced by our manufacturers can be shipped, it must conform to release specifications for the content of the pharmaceutical product.

If the operations of one or more of our manufacturers were to become unavailable for any reason, any required FDA or EMA review and approval of the operations of an alternative supplier could cause a delay in the manufacture of our products.

The commercialization of our products will be substantially dependent on our ability to develop effective sales and marketing capabilities.

One of our primary commercialization strategies for the development of our product candidate in the future, is to develop compounds through the Phase 2 stage of clinical testing and then market or co-promote certain of our drugs, if any.

We currently have no sales, marketing or distribution capabilities or any drugs ready for market.

When and if we reach a commercialization stage, we will depend primarily on strategic alliances with third parties, which have established distribution systems and sales forces, to commercialize our drugs.

To the extent that we are unsuccessful in commercializing any drugs ourselves or through a strategic alliance, product revenues may suffer, we may incur significant additional losses, and our share price would be negatively affected.

We face potential product liability exposure, and if successful claims are brought against us, we may incur substantial liability for a product candidate and may have to limit its commercialization.

The use of our product candidate in clinical trials and the sale of any product for which we may obtain marketing approval expose us to the risk of product liability claims.

Product liability claims may be brought against us or our collaborators by participants enrolled in our clinical trials, patients, health care providers or others using, administering or selling our products.

If we cannot successfully defend ourselves against any such claims, we would incur substantial liabilities.

Regardless of merit or eventual outcome, product liability claims may result in:

● withdrawal of clinical trial participants;

● termination of clinical trial sites or entire trial programs;

● costs of related litigation;

● substantial monetary awards to patients or other claimants;

● decreased demand for our product candidate and loss of revenues;

● impairment of our business reputation;

● loss of revenue;

● product recalls;

● decline in our stock price;

● diversion of management and scientific resources from our business operations;

● the inability to commercialize our product candidate.

We have obtained limited product liability insurance coverage for our clinical trials in the United States and in selected other jurisdictions where we are conducting clinical trials.

Our primary product liability insurance coverage for

clinical trials in the United States is at least $10.0 million and outside of the United States, we have coverage for lesser amounts that vary by country.

As such, our insurance coverage may not reimburse us or may not be sufficient to reimburse us for any expenses or losses we may suffer.

Moreover, insurance coverage is becoming increasingly expensive, and, in the future, we may not be able to maintain insurance coverage at a reasonable cost or in sufficient amounts to protect us against losses due to product liability.

We intend to expand our insurance coverage for products to include the sale of commercial products if we obtain marketing approval for our product candidate in development, but we may be unable to obtain commercially reasonable product liability insurance for any products approved for marketing.

Large judgments have been awarded in class action lawsuits based on drugs that had unanticipated side effects.

A successful product liability claim or series of claims brought against us, particularly if judgments exceed our insurance coverage, could decrease our cash resources and adversely affect our business.

Healthcare legislative reform measures may have a material adverse effect on our business, financial condition or results of operations.

In the United States, there have been and continue to be a number of legislative initiatives to contain healthcare costs.

For example, the ACA substantially changed the way healthcare is financed by both governmental and private insurers and significantly impacted the U.S.

pharmaceutical industry.

The ACA, among other things, increased the minimum Medicaid rebates owed by manufacturers under the Medicaid Drug Rebate Program and extended the rebate program to individuals enrolled in Medicaid managed care organizations, established annual fees and taxes on manufacturers of certain branded prescription drugs and biologics, and created a new Medicare Part D coverage gap discount program, in which manufacturers must agree to offer 70% (increased from 50% pursuant to the Bipartisan Budget Act of 2018, effective as of 2019) point-of-sale discounts off negotiated prices of applicable brand drugs and biologics to eligible beneficiaries during their coverage gap period, as a condition for the manufacturer’s outpatient drugs or biologics to be covered under Medicare Part D.

Since its enactment, there have been judicial, executive and Congressional challenges to certain aspects of the ACA.

On June 17, 2021, the U.S.

Supreme Court dismissed the most recent judicial challenge to the ACA without specifically ruling on the constitutionality of the ACA.

Prior to the Supreme Court’s decision, an executive order was issued to initiate a special enrollment period from February 15, 2021 through August 15, 2021 for purposes of obtaining health insurance coverage through the ACA marketplace.

The executive order also instructed certain governmental agencies to review and reconsider their existing policies and rules that limit access to healthcare, including among others, reexamining Medicaid demonstration projects and waiver programs that include work requirements, and policies that create unnecessary barriers to obtaining access to health insurance coverage through Medicaid or the ACA.

Other legislative changes have been proposed and adopted since the ACA was enacted, including aggregate reductions of Medicare payments to providers, which went into effect on April 1, 2013 and, due to subsequent legislative amendments to the statute, will remain in effect through 2031, with the exception of a temporary suspension from May 1, 2020 through March 31, 2022, unless additional Congressional action is taken.

On January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which, among other things, reduced Medicare payments to several providers, including hospitals, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years.

More recently, on March 11, 2021, the American Rescue Plan Act of 2021 was signed into law, which eliminates the statutory cap on the Medicaid drug rebate, currently set at 100% of a drug’s AMP, beginning January 1, 2024.

We expect that future changes or additions to the ACA, the Medicare and Medicaid programs and changes stemming from other healthcare reform measures, especially with regard to healthcare access, financing or other legislation in individual states, could have a material adverse effect on the health care industry in the United States.

Over the past several years there has been heightened governmental scrutiny over the manner in which biopharmaceutical manufacturers set prices for their marketed products, which has resulted in several U.S.

Congressional inquiries and proposed and enacted federal and state legislation designed to, among other things, bring more transparency to product pricing, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for drug products.

The probability of success of these newly announced policies, many of which have been subjected to legal challenge in the federal court system, and their potential

impact on the U.S.

prescription drug marketplace is unknown.

There are likely to be continued political and legal challenges associated with implementing these reforms as they are currently envisioned.

For example, in July 2021, President Biden issued a sweeping executive order on promoting competition in the American economy that included several mandates pertaining to the pharmaceutical and health care insurance industries and called on HHS to release a comprehensive plan to combat high prescription drug prices.

The drug pricing plan released by HHS in September 2021 in response to the executive order makes clear that the Biden Administration supports aggressive action to address rising drug prices, including allowing HHS to negotiate the cost of Medicare Part B and D drugs, but such significant changes will require either new legislation to be passed by Congress or time-consuming administrative actions.

There have been several Congressional inquiries and proposed bills designed to, among other things, bring more transparency to product pricing, review the relationship between pricing and manufacturer patient programs, and reform government program reimbursement methodologies for drug products.

Most recently, in August 2022, President Biden signed into law the Inflation Reduction Act of 2022, or the IRA.

Among other things, the IRA has multiple provisions that may impact the prices of drug products that are both sold into the Medicare program and throughout the United States.

Starting in 2023, a manufacturer of a drug or biological product covered by Medicare Parts B or D must pay a rebate to the federal government if the product’s price increases faster than the rate of inflation.

This calculation is made on a drug product by drug product basis and the amount of the rebate owed to the federal government is directly dependent on the volume of a drug product that is paid for by Medicare Parts B or D.

Additionally, starting in payment year 2026, CMS will negotiate drug prices annually for a select number of single source Part D drugs without generic or biosimilar competition.

CMS will also negotiate drug prices for a select number of Part B drugs starting for payment year 2028.

If a drug product is selected by CMS for negotiation, it is expected that the revenue generated from such drug will decrease.

Additional state and federal health care reform measures are expected to be adopted in the future, any of which could limit the amounts that federal and state governments will pay for health care products and services, which could result in reduced demand for certain biopharmaceutical products or additional pricing pressures.

The IRA permits the Secretary of the Department of Health and Human Services (HHS) to implement many of these provisions through guidance, as opposed to regulation, for the initial years.

For that and other reasons, it is currently unclear how the IRA will be effectuated.

In addition to the IRA’s drug price negotiation provisions, President Biden’s Executive Order 14087, issued in October 2022, called for the CMS Innovation Center to prepare and submit a report to the White House on potential payment and delivery modes that would complement to IRA, lower drug costs, and promote access to innovative drugs.

In February 2023, CMS published its report which described three potential models focusing on affordability, accessibility and feasibility of implementation for further testing by the CMS Innovation Center.

On his first day in office, President Donald Trump repealed Executive Order 14087, which introduces uncertainty in federal drug pricing strategies.

Individual states in the United States have increasingly passed legislation and implemented regulations designed to control pharmaceutical product pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access, marketing cost disclosure and other transparency measures, and, in some cases, measures designed to encourage importation from other countries and bulk purchasing.

In addition, regional healthcare authorities and individual hospitals are increasingly using bidding procedures to determine what pharmaceutical products and which suppliers will be included in their prescription drug and other healthcare programs.

Furthermore, there has been increased interest by third party payors and governmental authorities in reference pricing systems and publication of discounts and list prices.

These reforms could reduce the ultimate demand for our products, if approved, or put pressure on our product pricing, which could negatively affect our business, results of operations, financial condition and prospects.

The effects of these efforts remain uncertain pending the outcomes of several federal lawsuits challenging state authority to regulate prescription drug payment limits.

In December 2020, the U.S.

Supreme Court also held unanimously that federal law does not preempt the states’ ability to regulate pharmaceutical benefit managers, or PBMs, and other members of the healthcare and pharmaceutical supply chain, an important decision that appears to be leading to further and more aggressive efforts by states in this area.

The Federal Trade Commission in mid-2022 also launched sweeping investigations into the practices of the PBM industry that could lead to additional federal and state legislative or regulatory proposals targeting such entities’ operations, pharmacy networks, or financial arrangements.

Significant efforts to change the PBM industry as it currently

exists in the United States may affect the entire pharmaceutical supply chain and the business of other stakeholders, including biopharmaceutical developers like us.

Legally mandated price controls on payment amounts by third-party payors or other restrictions could harm our business, results of operations, financial condition and prospects.

This could reduce the ultimate demand for our product candidate, if approved, or put pressure on our product pricing, which could negatively affect our business, results of operations, financial condition and prospects.

In the European Union, similar political, economic and regulatory developments may affect our ability to profitably commercialize our products.

In addition to continuing pressure on prices and cost containment measures, legislative developments at the European Union or EU member state level may result in significant additional requirements or obstacles that may increase our operating costs.

We cannot predict the likelihood, nature or extent of government regulation that may arise from future legislation or administrative or executive action.

We expect that additional federal and state health care reform measures will be adopted in the future, any of which could limit the amounts that federal and state governments will pay for health care products and services, which could result in limited coverage and reimbursement and reduced demand for our products, once approved, or additional pricing pressures.

We may be subject, directly or indirectly, to federal and state healthcare fraud and abuse laws, false claims laws, and health information privacy and security laws.

If we are unable to comply, or have not fully complied with such laws, we could face substantial penalties.

If we obtain FDA approval for plogo and begin commercializing those products in the United States, our operations may be subject to various federal and state fraud and abuse laws, including, without limitation, the federal Anti-Kickback Statute, the federal False Claims Act, and physician payments sunshine laws and regulations.

These laws may impact, among other things, our proposed sales, marketing, and education programs.

In addition, we may be subject to patient privacy regulation by both the federal government and the states in which we conduct our business.

The laws that may affect our ability to operate include:

● The federal Anti-Kickback Statute, which prohibits, among other things, persons from knowingly and willfully soliciting, receiving, offering or paying remuneration, directly or indirectly, to induce, or in return for, the purchase or recommendation of an item or service reimbursable under a federal healthcare program, such as the Medicare and Medicaid programs;

● Federal civil and criminal false claims laws and civil monetary penalty laws, which prohibit, among other things, individuals or entities from knowingly presenting, or causing to be presented, claims for payment from Medicare, Medicaid, or other government payors that are false or fraudulent or making a false statement to avoid, decrease or conceal an obligation to pay money to the federal government;

● The federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), which created new federal criminal statutes that prohibit executing a scheme to defraud any healthcare benefit program and making false statements relating to healthcare matters;

● HIPAA, as amended by the Health Information Technology and Clinical Health Act, and its implementing regulations, which imposes specified requirements relating to the privacy, security, and transmission of individually identifiable health information;

● The federal physician payments sunshine requirements under the ACA require manufacturers of drugs, devices, biologics, and medical supplies to report annually to the CMS information related to payments and other transfers of value to physicians, certain advanced non-physician healthcare providers, and teaching hospitals, and ownership and investment interests held by physicians and other healthcare providers and their immediate family members;

● State law equivalents of each of the above federal laws, such as anti-kickback and false claims laws that may apply to items or services reimbursed by any third-party payor, including governmental and private payors, to

comply with the pharmaceutical industry’s voluntary compliance guidelines and the relevant compliance guidance promulgated by the federal government, or otherwise restrict payments that may be made to healthcare providers and other potential referral sources;

state laws that require drug manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures, and state laws governing the privacy and security of health information in specified circumstances, many of which differ from each other in significant ways and may not have the same effect, thus complicating compliance efforts.

Because of the breadth of these laws and the narrowness of the statutory exceptions and safe harbors available, it is possible that some of our business activities could be subject to challenge under one or more such laws.

In addition, recent health care reform legislation has strengthened these laws.

For example, the ACA, among other things, amended the intent requirement of the federal anti-kickback and criminal healthcare fraud statutes.

A person or entity no longer needs to have actual knowledge of this statute or specific intent to violate it.

Moreover, the ACA provides that the U.S.

government may assert that a claim including items or services resulting from a violation of the federal anti-kickback statute constitutes a false or fraudulent claim for purposes of the False Claims Act.

If our operations are found to be in violation of any of the laws described above or any other governmental regulations that apply to us, we may be subject to penalties, including civil and criminal penalties, damages, fines, exclusion from participation in government health care programs, such as Medicare and Medicaid, imprisonment, and the curtailment or restructuring of our operations, any of which could adversely affect our ability to operate our business and our results of operations.

We may be subject to, or may in the future become subject to, U.S.

federal and state, and international laws and regulations imposing obligations on how we collect, use, disclose, store and process personal information.

Our actual or perceived failure to comply with such obligations could result in liability or reputational harm and could harm our business.

Ensuring compliance with such laws could also impair our efforts to maintain and expand our customer base and thereby decrease our revenue.

In many activities, including the conduct of clinical trials, we are subject to laws and regulations governing data privacy and the protection of health-related and other personal information.

The regulatory framework for collecting, using, safeguarding, sharing, transferring and other processing of information worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future.

The withdrawal of the United Kingdom from the European Union and the subsequent separation of the data protection regimes of these territories means we are required to comply with separate data protection laws in the European Union and the United Kingdom, which may lead to additional compliance costs and could increase our overall risk.

Similar laws and regulations govern our processing of personal data, including the collection, access, use, analysis, modification, storage, transfer, security breach notification, destruction and disposal of personal data.

For example, the collection, use, disclosure, transfer, or other processing of personal data regarding individuals in the European Union, including personal health data, is subject to the General Data Protection Regulation, or GDPR, which took effect across all Member States of the European Economic Area, or EEA, on May 25, 2018, and as still in effect in the United Kingdom as the UK GDPR.

On June 28, 2021, the EU Commission adopted decisions on the UK’s adequacy under the EU GDRP, and the UK continues to operate under this adequacy decision.

The GDPR imposed a broad data protection framework that expanded the scope of EU and UK data protection law, including to non-EU and non-UK entities meeting the jurisdictional requirements that process, or control the processing of personal data relating to individuals located in the EU or UK, including clinical trial data.

The GDPR sets out a number of requirements for controllers and/or processors, as applicable, that must be complied with when handling the personal data of EU or UK based data subjects, including:

providing expanded disclosures about how their personal data will be used;

higher standards for organizations to demonstrate that they have obtained valid consent or have another legal basis in place to justify their data processing activities;

the obligation to appoint data protection officers in certain circumstances;

new rights for individuals to be “forgotten” and rights to data portability, as well as enhanced current rights (e.g., access requests);

the principal of accountability and demonstrating compliance through policies, procedures, training and audit;

and a new mandatory data breach regime.

In particular, medical or health data, genetic data and biometric data are all classified as “special category” data under the GDPR and afford greater protection and require additional compliance obligations.

Further, the UK and EU member states have a broad right to impose additional conditions—including restrictions—on these data categories.

This is because the GDPR allows EU member states to derogate from the requirements of the GDPR mainly in regard to specific processing situations (including special category data and processing for scientific or statistical purposes).

We must comply with laws and regulations associated with the international transfer of personal data based on the location in which the personal data originates and the location in which it is processed and/or controlled.

Although there are legal mechanisms to facilitate the transfer of personal data from the UK, EEA, and Switzerland to the United States, the decision of the Court of Justice of the EU (CJEU) that invalidated the safe harbor framework has increased uncertainty around compliance with EU privacy law requirements.

As a result of the decision, it was no longer possible to rely on safe harbor certification as a legal basis for the transfer of personal data from the European Union to entities in the United States.

However, on July 10, 2023, the European Commission adopted an adequacy decision for a new mechanism for transferring data from the EU to the United States – the EU-U.S.

Data Privacy Framework, which provides EU individuals with several new rights, including the right to obtain access to their data, or obtain correction or deletion of incorrect or unlawfully handled data.

That being said, we have not yet self-certified under the Data Privacy Framework.

The GDPR only permits exports of personal data outside of the EU to “non-adequate” countries where there is a suitable data transfer mechanism in place to safeguard personal data (e.g., the EU Commission approved Standard Contractual Clauses or certification under the newly-adopted Data Privacy Framework).

On July 16, 2020, the Court of Justice of the EU, or the CJEU, issued a landmark opinion in the case Maximilian Schrems vs.

Facebook (Case C-311/18) (Schrems II).

This decision calls into question certain data transfer mechanisms as between the EU member states and the U.S.

The CJEU is the highest court in Europe and the Schrems II decision heightened the burden to assess U.S.

national security laws on their business, and future actions of EU data protection authorities are difficult to predict at this time.

While the newly-adopted Data Privacy Framework was meant to address the concerns raised by the CJEU in Schrems II, it will likely be subject to future legal challenges.

Consequently, there is some risk of any data transfers from the EU being halted.

If we have to rely on third parties to carry out services for us, including processing personal data on our behalf, we are required under GDPR to enter into contractual arrangements to flow down or help ensure that these third parties only process such data according to our instructions and have sufficient security measures in place.

Any security breach or non-compliance with our contractual terms or breach of applicable law by such third parties could result in enforcement actions, litigation, fines and penalties or adverse publicity and could cause customers to lose trust in us, which would have an adverse impact on our reputation and business.

Any contractual arrangements requiring the processing of personal data from the EU to us in the U.S.

will require greater scrutiny and assessments as required under Schrems II and may have an adverse impact on cross-border transfers of personal data or increase costs of compliance.

The GDPR provides an enforcement authority to impose large penalties for noncompliance, including the potential for fines of up to €20 million or 4% of the annual global revenues of the noncompliant company, whichever is greater.

Some customers or other service providers may respond to these evolving laws and regulations by asking us to make certain privacy or data-related contractual commitments that we are unable or unwilling to make.

This could lead to the loss of current or prospective customers or other business relationships.

The privacy and security of personally identifiable information stored, maintained, received or transmitted, including electronically, is subject to significant regulation in the United States and abroad.

While we strive to comply with all applicable privacy and security laws and regulations, legal standards for privacy continue to evolve and any failure or perceived failure to comply may result in proceedings or actions against us by government entities or others, or could cause reputational harm, which could have a material adverse effect on our business.

Numerous foreign, federal and state laws and regulations govern collection, dissemination, use and confidentiality of personally identifiable health information, including state privacy and confidentiality laws (including state laws requiring disclosure of breaches);

federal and state consumer protection and employment laws;

and European and other international data protection laws.

These laws and regulations are increasing in complexity and number, may change frequently and sometimes conflict.

HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (HITECH), establishes a set of U.S.

national privacy and security standards for the protection of individually identifiable health information, including protected health information, or PHI, by health plans, certain healthcare clearinghouses and healthcare providers that submit certain covered transactions electronically, or covered entities, and their “business

associates,” which are persons or entities that perform certain services for, or on behalf of, a covered entity that involve creating, receiving, maintaining or transmitting PHI.

While we are not currently a covered entity or business associate under HIPAA, we may receive identifiable information from these entities.

Failure to receive this information properly could subject us to HIPAA’s criminal penalties, which may include fines up to $50,000 per violation and/or imprisonment.

In addition, responding to government investigations regarding alleged violations of these and other laws and regulations, even if ultimately concluded with no findings of violations or no penalties imposed, can consume company resources and impact our business and, if public, harm our reputation.

In the United States, various federal and state regulators, including governmental agencies like the Federal Trade Commission, have promulgated, or are considering promulgating, regulations concerning personal information and data security.

In addition to fines and penalties imposed upon violators, some of these state laws also afford private rights of action to individuals who believe their personal information has been misused.

California’s patient privacy laws, for example, provide for penalties of up to $250,000 and permit injured parties to sue for damages.

In addition, The California Consumer Privacy Act (“CCPA”) went into effect January 1, 2020, and is one of the most restrictive state privacy laws, protecting a wide variety of personal information and granting significant rights to California residents with respect to their personal information.

Regulations under CCPA have been modified several times and continue to be modified.

Additionally, a new privacy law, the California Privacy Rights Act, (“CPRA”) was approved by California voters in the election of November 3, 2020 and went into effect in January of 2023.

The CPRA modified the CCPA significantly, and may result in further uncertainty, additional costs and expenses stemming from efforts to comply with this law and increases the potential for harm and liability for failure to comply.

Among other things, the CPRA established a new regulatory authority, the California Privacy Protection Agency, which is enacting new regulations and has expanded enforcement authority.

Other states have implemented similar laws protecting identifiable health and personal information, and most such laws differ from each other in significant ways and may not be preempted by HIPAA, thus complicating compliance efforts.

In addition, various states, such as California, Colorado, Connecticut, New Jersey, Delaware, Utah, Virginia, Oregon, Indiana, Iowa, Tennessee, Montana, Florida and Texas, have implemented similar privacy laws and regulations.

The interplay of federal and state laws may be subject to varying interpretations by courts and government agencies, creating complex compliance issues for us and our clients and potentially exposing us to additional expense, adverse publicity and liability.

Further, as regulatory focus on privacy issues continues to increase and laws and regulations concerning the protection of personal information expand and become more complex, these potential risks to our business could intensify.

The legislative and regulatory landscape for privacy and data security continues to evolve, and there has been an increasing focus on privacy and data security issues which may affect our business.

Failure to comply with current and future laws and regulations could result in government enforcement actions (including the imposition of significant penalties), criminal and civil liability for us and our officers and directors, private litigation and/or adverse publicity that negatively affects our business.

Defending against claims relating to improper handling, storage or disposal of hazardous chemical, radioactive or biological materials could be time consuming and expensive.

Our research and development involves the controlled use of hazardous materials, including chemicals, radioactive and biological materials such as chemical solvents, phosphorus and bacteria.

In some cases, these hazardous materials and various wastes resulting from their use will be stored at our contractors or manufacturers’ facilities pending use and disposal.

Although we expect that the safety procedures utilized by our third-party contractors and manufacturers for handling and disposing of these materials will generally comply with the standards prescribed by these laws and regulations, we cannot guarantee that this will be the case or eliminate the risk of accidental contamination or injury from these materials.

In such an event, we may be held liable for any resulting damages and such liability could exceed our resources.

We do not currently carry biological or hazardous waste insurance coverage and any future property and casualty, and general liability insurance policies may exclude coverage for damages and fines arising from biological or hazardous waste exposure or contamination.

We cannot eliminate the risk of accidental contamination or discharge and any resultant injury from those materials, which could cause injury to our employees and others, environmental damage resulting in costly cleanup and liabilities under applicable laws and regulations governing the use, storage, handling and

disposal of these materials and specified waste products.

Various laws and regulations govern the use, manufacture, storage, handling and disposal of hazardous materials.

We may be sued for any injury or contamination that results from our use or the use by third parties of these materials.

Compliance with environmental laws and regulations may be expensive, and current or future environmental regulations may impair our research, development and production efforts.

Our business and operations would suffer in the event of system failures.

Despite the implementation of security measures, our internal computer systems, and those of our CROs and other third parties on which we rely, are vulnerable to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures.

If such an event were to occur and cause interruptions in our operations, it could result in a material disruption of our drug development programs.

For example, the loss of clinical trial data from completed or ongoing or planned clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data.

To the extent that any disruption or security breach were to result in a loss of or damage to our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability and the further development of our product candidate could be delayed.

Risks Related to Our Business and Financial Condition

We have a history of operating losses, and we expect to incur losses for the foreseeable future.

in our Common Stock involves significant risks, some of which are described below.

In evaluating our business, investors should carefully

consider the following risk factors.

These risk factors contain, in addition to historical information, forward-looking statements that

involve substantial risks and uncertainties.

Our actual results could differ materially from the results discussed in the forward-looking

Factors that could cause or contribute to such differences include, but are not limited to, those discussed below.

in which the following risks are presented is not intended to reflect the magnitude of the risks described.

The occurrence of any of

the following risks could have a material adverse effect on our business, financial condition, results of operations and prospects.

that case, the trading price of our Common Stock could decline, perhaps significantly, and you therefore may lose all or part of your

Related to Our Business and Industry

demand for our products is impacted by a number of factors outside of our control.

fire safety division now incorporates our wholly-owned subsidiary, Fitters Sdn.

a Malaysia headquartered company specializing in

supplying, and trading various protective and fire safety equipment to both domestic and international markets.

Established in 1982,

the Company has built a strong presence in the industry, providing a wide range of fire safety products, including fire equipment, foam

system, fire resistant doors, personal protective equipment (“PPE”) and fire safety apparel.

Our end markets experience constantly

changing demand depending on a number of factors that are out of our control.

The demand for our fire protection equipment is driven

by the market for our products, which is characterized by rapid technological change, frequent new product introductions and enhancements,

uncertain product life cycles, changing customer demands and evolving industry standards, any of which can render existing products obsolete.

We believe that our future success will depend in large part on our ability to offer new and effective products in a timely manner and

on a cost-effective basis.

As a result of the complexities inherent in our products, major new products and product enhancements can

require long development and testing periods, which may result in significant delays in the general availability of new releases or significant

problems in the implementation of new releases.

In addition, if we or our competitors announce or introduce new products our current

or future customers may defer or cancel purchases of our products, which could materially adversely affect our business, operating results

and financial condition.

Our failure to offer, successfully and on a timely and cost-effective basis, new products or new product enhancements

that respond to technological change, evolving industry standards or customer requirements, would have a material adverse effect on our

business, operating results and financial condition.

performance is tied to customer demand for fire suppression equipment and materials, the decrease of which could adversely affect our

currently recognizes revenue from, among other things, trading and installation of fire safety materials and equipment.

The demand for

our fire protection equipment is driven by rapid industrialization, urbanization, and increasing safety awareness.

In the December 31, 2025

financial year, our top four customers collectively accounted for 55% of the Company’s total sales, with individual contributions

of approximately 36%, 7%, 6%, and 6%, respectively.

Accordingly, Fitters relies on a limited number of customers from whom it generates

most of its revenue.

Dependence on a few customers could make it difficult to negotiate attractive prices for our products and could

expose us to the risk of substantial losses if a single dominant customer stops purchasing our products.

We have not entered into long-term

supply contracts with either of these major customers.

Therefore, there can be no assurance that we will maintain or improve our relationships

with our major customers, or that we will be able to continue to supply these customers at current levels or at all.

If we cannot maintain

long-term relationships with these major customers, the loss of sales could have an adverse effect on our business, financial condition

and results of operations.

any of our customers fail to pay us, our profit and cash flow may be affected as a result.

any of our customers are slow in their payment process, their delayed payments may adversely affect our cash flow and our ability to

fund our operations out of our operating cash flow.

In addition, although we attempt to establish appropriate reserves for our receivables,

those reserves may not prove to be adequate in view of actual levels of bad debts.

The failure of our customers to pay us in a timely

manner could negatively affect our working capital, which could in turn adversely affect our cash flow.

Although no customer has failed

to pay us even though their payments were delayed, there is no assurance that they will be able to pay in the future.

are substantially dependent upon our senior management and key personnel.

are highly dependent on our senior management to manage our business and operations.

We also depend on our key personnel for the sales

and marketing of our products.

We do not maintain key man life insurance on any of our senior management or key personnel.

any one of them would have a material adverse effect on our business and operations.

Competition for senior management and our other

key personnel is intense and the pool of suitable candidates is limited.

We may be unable to locate a suitable replacement for any senior

management or key personnel that we lose.

In addition, if any member of our senior management or key personnel joins a competitor or

forms a competing company, they may compete with us for customers, business partners and other key professionals and staff members of

Although each of our senior management and key personnel has signed a confidentiality and non-competition agreement in connection

with his employment with us, we cannot assure you that we will be able to successfully enforce these provisions in the event of a dispute

between us and any member of our senior management or key personnel.

compete for qualified personnel with other fire products businesses.

Intense competition for these personnel could cause our compensation

costs to increase, which could have a material adverse effect on our results of operations.

Our future success and ability to grow our

business will depend in part on the continued service of these individuals and our ability to identify, hire and retain additional qualified

If we are unable to attract and retain qualified employees, we may be unable to meet our business and financial goals.

may not pay dividends.

cannot assure you that our operations will result in sufficient revenues to enable us to operate at profitable levels or to generate

positive cash flows.

Furthermore, there is no assurance our Board of Directors will declare dividends even if we remain profitable.

policy is subject to the discretion of our Board of Directors and will depend on, among other things, our earnings, financial condition,

capital requirements and other factors.

do not carry business interruption insurance so we could incur unrecoverable losses if our business is interrupted.

are subject to risks inherent to our business, including equipment failure, theft, natural disasters, labor disturbances, business interruptions,

property damage, and product liability.

We do not carry any business interruption insurance or third-party liability insurance or other

insurance to cover risks associated with our business.

As a result, if we suffer losses, damages or liabilities, including those caused

by natural disasters or other events beyond our control and we are unable to make a claim against a third party, we will be required to

bear all such losses from our own funds, which could have a material adverse effect on our business, financial condition and results

of operations.

may need to raise additional capital to grow our business and satisfy our anticipated future liquidity needs, and we may not be able

to raise it on terms acceptable to us, or at all.

and operating our business will require significant cash outlays, liquidity reserves and capital expenditures and commitments to respond

to business challenges, including developing or enhancing new or existing products.

As of December 31, 2025, we had cash on hand of $3.5

If cash on hand and cash generated from operations are not sufficient to meet our cash and liquidity needs, we may need to seek

additional capital, potentially through debt or equity financing.

To the extent that we raise additional capital through the sale of

additional equity or convertible securities, your ownership interest may be diluted, and the terms of these securities may include liquidation

or other preferences that adversely affect your rights as a stockholder.

Debt financing, if available, would result in increased fixed

payment obligations and a portion of our operating cash flows, if any, being dedicated to the payment of principal and interest on such

indebtedness.

In addition, debt financing may involve agreements that include restrictive covenants that impose operating restrictions,

such as restrictions on the incurrence of additional debt, the making of certain capital expenditures or the declaration of dividends.

Any additional fundraising efforts may divert our management from their day-to-day activities, which may adversely affect our ability

to develop and commercialize our products.

Even if we believe we have sufficient funds for our current or future operating plans, we

may seek additional capital if market conditions are favorable or considering specific strategic considerations.

If we are unable to

obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our operations or

otherwise capitalize on our business opportunities, as desired, which could materially affect our business, operating results and prospects

and cause the price of the common stock to decline.

capital in the future could cause dilution to our existing shareholders and may restrict our operations or require us to relinquish rights.

the future, we may seek additional capital through a combination of private and public equity offerings, debt financing and collaborations

and strategic and licensing arrangements.

To the extent that we raise additional capital through the sale of equity or convertible debt

securities, your ownership interest will be diluted, and the terms may include liquidation or other preferences that adversely affect

your rights as a shareholder.

Debt financing, if available, would result in increased fixed payment obligations and may involve agreements

that include covenants limiting or restricting our ability to take specific actions such as incurring debt, making capital expenditures

or declaring dividends.

If we raise additional funds through collaboration or strategic alliance arrangements with third parties, we

may have to relinquish valuable rights to our future revenue streams or product candidates on terms that are not favorable to us.

are subject to risks from changes to trade policies, tariffs and import/export regulations by the U.S.

and/or other foreign governments.

in the import and export policies, including trade restrictions, new or increased tariffs or quotas, embargoes, sanctions and counter

sanctions, safeguards or customs restrictions by the U.S.

and/or other foreign governments, could require us to change the way we conduct

business and adversely affect our financial condition, results of operations, reputation and our relationships with customers and suppliers.

Changes in laws and policies governing foreign trade, manufacturing, development and investment in the countries where we currently conduct

business could adversely affect our business.

expect our international operations and export sales to constitute a significant portion of our revenue.

Both our sales from international

operations and export sales are subject in varying degrees to risks inherent to doing business outside of Malaysia and the United States.

These risks include the following:

of unfavorable circumstances arising from host country laws or regulations;

exchange rate fluctuations and restrictions on currency repatriation;

negative consequences from changes to taxation policies;

of operations from labor and political disturbances;

in tariff and trade barriers and import and export licensing requirements;

payment of distributions, loans or advances to us by our foreign subsidiaries could be subject to restrictions on, or taxation of, dividends

on repatriation of earnings under applicable local law, monetary transfer restrictions and foreign currency exchange regulations in the

jurisdictions in which our subsidiaries operate.

In addition to the general risks that we face outside Malaysia and the United States,

we now conduct more of our operations in emerging markets than we have in the past, which could involve additional uncertainties for

us, including risks that governments may impose limitations on our ability to repatriate funds;

governments may impose withholding or

other taxes on remittances and other payments to us, or the amount of any such taxes may increase;

an outbreak or escalation of any insurrection

or armed conflict may occur;

governments may seek to nationalize our assets;

or governments may impose or increase investment barriers

or other restrictions affecting our business.

In addition, emerging markets pose other uncertainties, including the protection of our

intellectual property, pressure on the pricing of our products, and risks of political instability.

We cannot predict the impact such

future, largely unforeseeable events might have on our business, financial condition, results of operations and cash flow.

profitability could be negatively impacted by price and inventory risk related to our business, including commodity price exposure.

realized margins depend on the differential of sales prices over our total supply costs.

Our profitability is therefore sensitive to

changes in product prices caused by changes in supply, transportation and storage capacity or other market conditions.

Market, weather

or other conditions beyond our control may disrupt our expected supply of product, and we may be required to obtain supply at increased

prices that cannot be passed through to our customers.

industry is very competitive and some of our products are commodities.

face competition from both new entrants and existing competitors in the fire services industries.

The businesses are competitive due

to the presence of other local and international producers and suppliers of fire protection systems.

The competitors may affect the Company’s

revenue and market share, which may in turn affect the financial performance of the Company.

In this respect, the competitors from the

fire protection systems are constantly developing more advanced technology and product formulations in order to gain a larger market

share and a competitive edge.

addition, the barriers to entry for new distributors of fire protection equipment are low as they can source products or systems that

already have the relevant product certifications obtained by the respective manufacturer or supplier.

As such, the competition that the

Company faces face may result in, among others, reduction in the prices of the Company’s products thus affecting the Company’s

profit margins, increase in the Company’s marketing activities and thus expenses, and/ or loss of business due to competitors’

offerings, which may adversely affect the Company’s business operations and financial performance.

There can be no assurance that

the Company will continue to compete effectively in the industries and failure to do so may adversely affect its growth prospects and

financial performance.

is no assurance that our existing projects will not be delayed or terminated and there can also be no certainty that our order book will

be continually maintained at such level in the future.

revenue for the fire services division is largely dependent on the sustainability of the Company’s order book, which is in turn

affected by the business and economic condition in Malaysia, as well as the Company’s ability to tender for the new projects by

competing against other competitors in terms of pricing, timely delivery and quality.

There is no assurance that the Company’s

existing projects will not be delayed or terminated and there can also be no certainty that the Company’s order book will be continually

maintained at such level in the future.

The sustainability of our order book refers to the long-term viability and success of our business,

which relies on fulfilling orders.

A sustainable order book is characterized by consistent demand, effective operations, and adaptability

to changing market conditions and relates to ensuring the business continues to receive and process orders in a way that is profitable

and environmentally responsible.

can be no assurance that we will maintain our relationship with, or serve, our customers at current levels.

In addition, there is no

assurance that any new agreement we enter into to supply or share services or facilities will have terms as favorable as those contained

in current arrangements.

Less favorable contract terms and conditions under any customer contract or contract for supply, purchase or

shared services or facilities, could have a material adverse effect on our business, financial condition and results of operations.

from the improper conduct of, or use of our products by, employees, agents, government contractors, or collaborators could adversely

affect our reputation as well as our business, financial condition and results of operations.

or improper use of our products, or inadequate disclosure of risks or other information relating to the use of our products can lead

to injury or other serious adverse events.

These events could lead to recalls or safety alerts relating to our products (either voluntary

or as required by governmental authorities), and could result, in certain cases, in the removal of a product from the market.

could result in significant costs and lost sales and customers, enforcement actions and/or investigations by state and federal governments

or other enforcement bodies, as well as negative publicity and damage to our reputation that could reduce future demand for our products.

Personal injuries relating to the use of our products can also result in significant product liability claims being brought against us.

See “—Some of the products we produce may cause adverse health consequences or environmental impacts, which exposes us to

product liability and other claims, and we may, from time to time, be the subject of indemnity claims.

Indemnity and insurance coverage

could be inadequate or unavailable to cover such product liability and other claims.”

cannot ensure that our compliance controls, policies, and procedures will in every instance protect us from acts committed by our employees,

agents, contractors, service providers or collaborators that would violate the laws or regulations of the jurisdictions in which we operate,

including, without limitation, employment, foreign corrupt practices, trade restrictions and sanctions, environmental, competition, and

privacy laws and regulations.

Such improper actions could subject us to civil or criminal investigations, and monetary and injunctive

penalties, and could adversely impact our reputation as well as our business, financial condition and results of operations.

is no guarantee that we will be able to continue purchasing products from our suppliers on a long-term basis.

is no guarantee that we will be able to continue purchasing products from our current suppliers on a long-term basis.

Some supply contracts

are renewable or renew automatically unless notice of termination is given, however there can be no assurance that they will be renewed

or that notice of termination will not be given.

We also have long-term relationships with certain suppliers, but there are no assurances

that such relationships, and related supply, will continue.

Finding a new supplier may take a significant amount of time and resources,

and once we have identified such new supplier, we would have to ensure that they meet our standards for quality control and have the

necessary technical capabilities, responsiveness, high-quality service and financial stability.

If we are unable to efficiently manage

our supply chain and/or ensure that our products are available to meet consumer demand, our operating costs could increase and our profit

margins could decrease.

Manufacturing

of our specialty products and fire retardant products is concentrated at certain facilities of our suppliers.

In the event of a significant

manufacturing difficulty, disruption or delay, we may not be able to purchase products without incurring material additional costs and

substantial delays.

Furthermore, these risks could materially and adversely affect our business if our suppliers’ facilities are

impacted by a natural disaster or other interruption at a particular location.

As a result, protracted regional crises, or issues with

manufacturing facilities could lead to eventual shortages of products and it could be difficult or impossible, costly and time consuming

to obtain alternative sources for products.

In addition, difficulties in transitioning from an existing supplier to a new supplier could

create delays in component availability that would have a significant impact on our ability to fulfill orders for our products.

business may be negatively affected by labor issues and higher labor costs.

ability to maintain our workforce depends on our ability to attract and retain new and existing employees.

As of the date of this filing, none of our employees are covered by collective bargaining agreements and we consider our labor relations to be

However, we could experience workforce dissatisfaction which could trigger bargaining issues, employment discrimination liability

issues as well as wage and benefit consequences, especially during critical operation periods.

We could also experience a work stoppage

or other disputes which could disrupt our operations and could harm our operating results.

In addition, legislation or changes in regulations

could result in labor shortages and higher labor costs.

There can be no assurance that we may not experience labor issues that negatively

impact our operations or results of operations.

are subject to interest rate risks.

are subject to market risks due to fluctuations in interest rates on our debt.

Increases in interest rates will increase the cost of

new borrowings and our interest expense.

Accordingly, fluctuations in interest rates can lead to significant fluctuations in the fair

value of our debt instruments.

We do not use any derivative instruments to manage our interest rate risk exposure.

We have not been subject

to nor do we anticipate being exposed to material risks due to changes in interest rates.

economic and market conditions could materially and adversely affect our business, results of operations and financial condition.

are subject to risks arising from adverse changes in global economic conditions.

We have significant operations outside the U.S., including

some in emerging markets.

Long-term economic uncertainty in some of the regions of the world in which we operate could result in declines

in revenue, profitability and cash flow due to reduced orders, payment delays, supply chain disruptions or other factors caused by the

economic challenges faced by our customers, suppliers, and other business partners, which could negatively impact our business and could

result in declines in our consolidated results of operations and cash flow.

compete in various geographic and product markets including Malaysia, Singapore and British Virgin Island.

We expect revenue from these

markets to be significant for the foreseeable future.

Important factors impacting our businesses include the overall strength of these

economies and our customers’ confidence in both local and global macro-economic conditions;

industrial and federal, state, local

and municipal governmental spending;

the strength of the residential and commercial real estate markets;

interest rates;

of commercial financing for our customers and end-users;

and unemployment rates.

A slowdown or downturn in these financial or macro-economic

conditions could have a significant adverse effect on our business, financial condition, results of operations and cash flow.

have experienced and expect to continue to experience fluctuations in revenues and operating results due to economic and business cycles,

particularly within the portion of our business that provides products and services used in residential and commercial buildings.

believe our level of business activity is influenced by residential and commercial building starts and renovations, which are heavily

influenced by interest rates, consumer debt levels, changes in disposable income, employment growth and consumer confidence.

Credit market

conditions greatly affect the ability of residential and commercial builders to obtain the necessary capital to complete and begin new

We closely monitor the credit worthiness of our customers, and evaluate their financial ability to pay for those products and

services we provide to them.

As it relates to our customers’ ability to pay for products and services, we have not experienced

any significant negative impact as a result of the recent economic downturn.

If market conditions worsen, it may result in a delay or

cancellation of orders from our customers or potential customers and adversely affect our revenues and our ability to manage inventory

levels, collect customer receivables and maintain current levels of profitability.

economic conditions could negatively affect our prospects for growth.

prospects for growth may be directly affected by the general global economic conditions of the industries in which our suppliers, partners

and customer groups operate.

Our business will be highly dependent on the economic and market conditions in each of the geographic areas

in which we operate.

These conditions affect our business by reducing the demand for fire prevention products in times of economic downturn

and increasing the price of our products in times of increasing demand.

There can be no assurance that global economic conditions will

not negatively impact our liquidity, growth prospects and results of operations.

changes in political, economic and regulatory conditions in Malaysia and the United States could materially affect our financials and

Political, economic and regulatory uncertainties include, amongst others, risks of war, changes in political state, changes

in economic conditions, changes in governmental policies such as changes to labour laws, introduction of new rules or regulations, interest

rates, tariff rates, fiscal and monetary policies and method of taxation.

business operations rely on information technology and communications networks, and operations that are vulnerable to damage or disturbance

from a variety of sources.

Regardless of protection measures, essentially all systems are susceptible to disruption due to failure, vandalism,

computer viruses, security breaches, natural disasters, power outages and other events.

In addition, cybersecurity threats are evolving

and include, among others, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that

could lead to disruptions in our systems, unauthorized release of confidential or otherwise protected information and corruption of data.

We also have a concentration of operations in certain sites, e.g., production, and shared services centers, where business interruptions

could cause material damage and costs.

Transport of goods from suppliers, and to customers, could also be hampered for the reasons stated

Although we have assessed these risks, implemented controls, and performed business continuity planning, we cannot be sure that

interruptions with material adverse effects will not occur.

markets in which we operate are highly competitive, and some of our competitors have greater financial and other resources than we do.

competitive pressures faced by us could materially and adversely affect our business, results of operations and financial condition.

The safety products and solutions market is highly competitive, with participants ranging in size from small companies focusing on single

types of safety products, to large multinational corporations that manufacture and supply many types of safety products and solutions.

Our main competitors vary by region and product.

We believe that participants in this industry compete primarily on the basis of product

characteristics (such as functional performance, technology, cost of ownership, comfort, design and style), price, service and delivery,

integrated solutions, customer support, the ability to meet the special requirements of customers, brand name trust and recognition,

purchasing options, and e-business capabilities.

Some of our competitors have greater financial and other resources than we do, and our

business could be adversely affected by competitors’ new product innovations, technological advances made to competing products

and solutions and pricing changes made by us in response to competition from existing or new competitors.

We may not be able to compete

successfully against current and future competitors, and the competitive pressures faced by us could have a material adverse effect our

business, consolidated results of operations and financial condition.

In addition, e-commerce is a rapidly developing area, and the execution

of a successful e-business strategy involves significant time, investment and resources.

If we are unable to successfully expand e-business

capabilities in support of our customer needs, our brands may lose market share, which could negatively impact revenue and profitability.

we are unable to compete successfully in our marketplace, it will harm our business.

are existing products in the fire prevention products marketplace that compete with our products.

Companies may develop new products

that compete with our products.

Certain competitors and potential competitors have longer operating histories, substantially greater

product development capabilities and financial, scientific, marketing and sales resources.

Competitors and potential competitors may

also develop fire prevention products that are more effective or have other potential advantages compared to our fire prevention products.

Certain competitors and potential competitors have broader fire prevention product offerings and extensive customer bases, allowing them

to adopt aggressive pricing policies that would enable them to gain market share.

Competitive pressure could result in price reductions,

reduced margins and loss of market share.

We could encounter potential customers that, due to existing relationships with our competitors,

are committed to fire prevention products offered by those competitors.

As a result, those potential customers may not consider purchasing

our fire prevention products.

Related to Regulatory and Legal Matters

ability to market and sell our products and solutions is subject to existing government laws, regulations and standards.

in such laws, regulations and standards or our failure to comply with them could materially and adversely affect our results of operations.

Most of the fire safety products we offer and sell are required to meet performance and test standards designed to protect the safety

of people and infrastructures around the world and are required to comply with other various laws and regulations in the applicable markets

Our inability to comply with these standards and regulations could result in declines in revenue, profitability and cash

Changes in laws, regulations, or the standards themselves, including changes resulting from the outcome of federal, national, state

or provincial elections, could reduce the demand for our products thereby creating opportunities for our competitors.

Regulatory approvals

for our fire safety products may be delayed or denied for a variety of reasons that are outside of our control.

Additionally, market

anticipation of significant new standards can cause customers to accelerate or delay buying decisions.

to comply with stringent and evolving fire safety regulations in Malaysia could negatively affect our prospects for growth and operating

business is subject to stringent and evolving fire safety regulations in Malaysia.

Failure to obtain, maintain, or renew required certifications

from the Fire and Rescue Department of Malaysia (“BOMBA”) or other regulatory bodies could materially and adversely affect

our business, results of operations, and financial condition.

Our fire safety products and installations are strictly governed by the

Fire Services Act 1988 (Act 341) and various subsidiary legislations.

As of 2026, the regulatory environment in Malaysia has become increasingly

rigorous, with the commencement of full enforcement regarding Fire Certificates (FC) for designated premises in the first quarter of

Many of our fire safety installations require a Sijil Perakuan Bahan (Material Certification Certificate) issued by BOMBA.

involves meeting standards set by the Standard and Industrial Research Institute of Malaysia (SIRIM) before an approval certificate is

Any delay in testing, failure to meet these standards, or changes in the list of laboratories authorized by the Director General

for testing could prevent us from marketing our products.

in 2026, buildings in designated categories must hold mandatory fire drills to renew their fire certifications.

If our clients fail to

comply due to deficiencies in our equipment or advisory services, we may face contract terminations or reputational damage.

The Occupational

Safety and Health Act in Malaysia (“OSHA”), which aims to ensure the safety, health and welfare of people at work and to

protect others from safety and health hazards in all workplaces throughout Malaysia.

Recent amendments to OSHA have significantly increased

maximum fines for breaches—ranging from RM 100,000 to RM 500,000—and introduced potential imprisonment of up to two years

for company directors and officers.

January 1, 2026, a new self-regulation framework grants Fire Safety Managers authority to issue technical reports, subject to periodic

BOMBA audits every 2–3 years.

Any failure by our personnel to maintain “competent person” status or if our reports

are found non-compliant during audits could lead to the revocation of our operating licenses.

The 2025 amendment to the Fire Safety Act

1988 introduced formal requirements for Fire Risk Analysis Reports, which must now be prepared by Registered Fire Safety Consultants.

If we are unable to retain such qualified professionals, our service offerings would be legally restricted.

New or stricter laws and

regulations may be introduced that could result in additional compliance costs and prevent or inhibit the distribution and sale of our

products, which could have a significant negative impact on our ability to generate revenue and adversely impact our business, financial

condition and results of operation.

of our products may be subject to government regulations pertaining to exportation, which may limit the markets in which we can sell

some of our products.

International

sales of certain of our products may be subject to U.S.

laws, regulations and policies and other export laws and regulations and may

be subject to first obtaining licenses, clearances or authorizations from various regulatory entities.

If we are not allowed to export

our products or the clearance process is burdensome, our ability to generate revenue would be adversely affected.

The failure to comply

with any of these regulations could adversely affect our ability to conduct our business and generate revenues, as well as increase our

operating costs.

may be subject to product liability or warranty claims that could require us to make significant payments.

would be exposed to product liability claims in the event that the use of our products results, or is alleged to result, in bodily injury

and/or property damage.

There is a risk that we will experience product liability or warranty losses in the future or that we will incur

significant costs to defend such claims.

Such losses and costs may be material.

While we currently have product liability insurance,

our product liability insurance coverage may not be adequate for any liabilities that may ultimately be incurred or the coverage may

not continue to be available on terms acceptable to us.

A successful claim brought against us in excess of our available insurance coverage

could require us to make significant payments or a requirement to participate in a product recall which may harm our reputation or profitability.

may be the subject of litigation by customers, suppliers and other third parties in the future.

our Company nor any of our subsidiaries currently is a party to any legal proceeding that, individually or in the aggregate, is material

to our company as a whole.

However, from time to time, we may become involved in various lawsuits and legal proceedings that arise in

the ordinary course of business.

The costs incurred in litigation can be substantial, regardless of the outcome.

Proceedings that we

believe are insignificant may develop into material proceedings and subject us to unforeseen outcomes or expenses.

Additionally, the

actions of certain participants in our industry may encourage legal proceedings against us or cause us to reconsider our litigation strategies.

As a result, we could from time to time incur judgments, enter into settlements or revise our expectations regarding the outcome of certain

matters, and such developments could harm our reputation and have a material adverse effect on our business, financial condition and

results of operations.

of injuries or potential safety issues or quality concerns could be made against our various subsidiaries.

fire safety products and solutions are often used in high-risk and unpredictable environments and our mission, reputation and business

success rely on our ability to provide safe, high quality and reliable products that earn and maintain customer trust.

In the event that

those using our fire safety products and solutions are injured, or if any of our fire safety products or solutions are alleged to have

contributed, we could be subject to claims or suffer reputational harm even though those fire safety products or solutions are manufactured

by third parties.

We continue to review, update, and execute the Company’s quality management processes appropriately to meet changing

market demands, technology, and fire safety product standards.

Any significant claims, recalls or field actions that result in significant

expense or negative publicity against us could have a material adverse effect on our business, operating results, financial condition

and liquidity, including any successful claim brought against us in excess or outside of available insurance coverage.

are subject to risks related to our environmental, social and governance activities and disclosures.

Environmental

social and governance, often referred to as ESG, has continued to be an area of focus from investors, customers, employees, and lawmakers,

who at times may have competing, inconsistent, or varying interests.

ESG-related regulations at both state and national levels are requiring

heightened attention, including climate-related disclosures.

As reporting and disclosure requirements continue to evolve, the Company

anticipates increasing investor expectations and additional regulatory requirements, among other demands related to our ESG activities.

Failure to accurately and timely meet these expectations and requirements may result in reputational damage, regulatory penalties and

litigation among other consequences.

are subject to general governmental regulation and other legal obligations, including those related to privacy, data protection and information

security, and our actual or perceived failure to comply with such obligations could harm our business.

Compliance with such laws could

also impair our efforts to maintain and expand our customer base, and thereby decrease our revenue.

receive, store and process personal information and other data from and about customers in addition to our employees and services providers.

Our handling of data is subject to a variety of laws and regulations, including regulation by various government agencies, such as the

Federal Trade Commission (the “FTC”) and various state, local and foreign agencies.

Our data handling also is subject

to contractual obligations and industry standards.

federal and various state governments have adopted or proposed limitations on the collection, distribution, use, storage and security

of data relating to individuals, including the use of contact information and other data for marketing, advertising and other communications

with individuals and businesses.

Additionally, the FTC and many state attorneys general are interpreting federal and state consumer protection

laws as imposing standards for the online collection, use, dissemination and security of data.

foreign countries and governmental bodies, including the European Union, have laws and regulations dealing with the handling and processing

of personal information obtained from their residents, which in certain cases are more restrictive than those in the United States, and

we expect additional jurisdictions may enact similar regulations.

Laws and regulations in these jurisdictions apply broadly to the collection,

use, storage, disclosure and security of various types of data, including data that identifies or may be used to identify an individual,

such as names, email addresses and in some jurisdictions, Internet Protocol addresses.

Within the European Union, legislators have adopted

the General Data Protection Regulation (the “GDPR”) which became effective in May 2018.

The GDPR includes more stringent

operational requirements for processors and controllers of personal data than previous EU data protection laws and imposes significant

penalties for non-compliance.

domestic and foreign laws and regulations relating to privacy and data security are evolving, can be subject to significant change and

may result in ever-increasing regulatory and public scrutiny and escalating levels of enforcement and sanctions.

Interpretation of certain

requirements remains unclear and may evolve, in particular for regulations that have recently been enacted.

Application of laws may be

inconsistent or may conflict among jurisdictions resulting in additional complexity and increased legal risk.

In addition, these regulations

have increased our compliance costs and may impair our ability to grow our business or offer our service in some locations, may subject

us to liability for non-compliance, may require us to modify our data processing and transferring practices and policies and may strain

our technical capabilities.

also handle credit card and other personal information.

Due to the sensitive nature of such information, we have implemented procedures

in an effort to preserve and protect our data and our customers’ data against loss, misuse, corruption, misappropriation caused

by systems failures, unauthorized access or misuse.

Notwithstanding these procedures, we could be subject to liability claims by individuals

and customers whose data resides in our databases for the misuse of that information.

If we fail to meet appropriate compliance levels,

this could negatively impact our ability to utilize credit cards as a method of payment, and/or collect and store credit card information,

which could disrupt our business.

may be subject to rules of the FTC, the Federal Communications Commission (the “FCC”) and potentially other federal agencies

and state laws related to commercial electronic mail and other messages.

Compliance with these provisions may limit our ability to send

certain types of messages.

If we were found to have violated such rules and regulations, we may face enforcement actions by the FTC or

FCC or face civil penalties, either of which could adversely affect our business.

failure or perceived failure by us to comply with laws, regulations, policies, legal or contractual obligations, industry standards,

or regulatory guidance relating to privacy or data security, may result in governmental investigations and enforcement actions, litigation,

fines and penalties or adverse publicity, and could cause our customers and partners to lose trust in us, which could have an adverse

effect on our reputation and business.

We expect that there will continue to be new proposed laws, regulations and industry standards

relating to privacy, data protection, marketing, consumer communications, information security and local data residency in the United

States, the European Union and other jurisdictions, and we cannot determine the impact such future laws, regulations and standards may

have on our business, financial condition and results of operations.

are subject to various U.S.

and foreign tax laws and any changes in these laws related to the taxation of businesses and resolutions

of tax disputes could adversely affect our results of operations.

Congress, the Organization for Economic Co-operation and Development (“OECD”) and other government agencies in jurisdictions

in which we and our affiliates invest or do business have maintained a focus on issues related to the taxation of multinational companies.

The OECD has changed numerous long-standing tax principles through its base erosion and profit shifting project which could adversely

impact our effective tax rate.

We are subject to regular review and audit by both foreign and domestic tax authorities.

While we believe

our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts

recorded in our consolidated financial statements, which could have a material adverse effect on our consolidated results of operations,

financial condition and cash flows.

Related to Our Business and Financial Condition

have a history of operating losses, and we expect to incur losses for the foreseeable future.

We may never become profitable.

Our stock is a highly speculative investment.

We have incurred operating losses in each year since beginning operations in 1996 due to costs incurred in connection with our research and development activities and selling, general and administrative costs associated with our operations, wed expect to incur significant losses for the next several years and we may never achieve profitability.

As of December 31, 2024 and December 31, 2023, our accumulated deficit was $439.5 million and $428.3 million, respectively.

Our net loss was $11.2 million and $22.5 million for the years ended December 31, 2024 and 2023, respectively.

Our drug candidates are in the early- to mid-stages of clinical testing and we must conduct significant additional clinical trials before we can seek the regulatory approvals necessary to begin commercial sales of our drugs.

We expect to incur continued losses for several years as we continue our research and development of our drug candidates, seek regulatory approvals and commercialize any approved drugs.

If our remaining drug candidate is unsuccessful in clinical trials or we are unable to obtain regulatory approvals, or if our drugs are unsuccessful in the market, we will not be profitable.

If we fail to become and remain profitable, or if we are unable to fund our continuing losses, particularly in light of the current economic conditions, you could lose all or part of your investment.

There is substantial doubt regarding our ability to continue as a going concern.

Our ability to raise additional capital in the future may not be available to us on reasonable terms, if at all, when or as we require additional funding.

If we issue additional shares of our common stock or other securities that may be convertible into, or exercisable or exchangeable for, our common stock, our existing stockholders would experience further dilution.

If we fail to obtain additional funding, we may be unable to complete the development and commercialization of our lead drug candidates or continue to fund our research and development programs.

We have funded all of our operations and capital expenditures with proceeds from the issuance of public equity securities, private placements of our securities, interest on investments, licensing revenue, government grants, research and development tax credits and product revenue.

In order to conduct the lengthy and expensive research, preclinical testing and clinical trials necessary to complete the development and marketing of our drug candidates, we will require substantial additional funds.

We may have insufficient public equity available for issue to raise the required additional substantial funds to implement our operating plan and we may not be able to obtain the appropriate stockholder approvals necessary to increase our available public equity for issuance within a time that we may require additional funding.

As of December 31, 2024, our cash and cash equivalents were $3.1 million.

Based on our current operating plan, there is substantial doubt regarding our ability to continue as a going concern for a period of one year after the date that our financial statements for the year ended December 31, 2024 are issued.

To meet our long-term financing requirements, we may raise funds through public or private equity offerings, debt financings or strategic alliances.

Raising additional funds by issuing equity or convertible debt securities may cause our stockholders to experience substantial dilution in their ownership interests and new investors may have rights superior to the rights of our other stockholders.

To the extent equity valuations, including the trading price of our common stock, are depressed as a result of economic disruptions or other uncertainties, for example due to rising inflationary pressures, ongoing military conflicts or other factors, the potential magnitude of this dilution will increase.

is a highly speculative investment.

have incurred operating losses in each year since beginning operations in 1996 due to costs incurred in connection with our research

and development activities and selling, general and administrative costs associated with our operations, we expect to incur significant

losses for the next several years and we may never achieve profitability.

As of December 31, 2025 and December 31, 2024, our accumulated

deficit was $454.4 million and $439.5 million, respectively.

Our net loss was $3.0 million and $11.2 million for the years ended December

31, 2025 and 2024, respectively.

If we fail to become and remain profitable, or if we are unable to fund our continuing losses, particularly

in light of the current economic conditions, you could lose all or part of your investment.

is substantial doubt regarding our ability to continue as a going concern.

of December 31, 2025, our cash and cash equivalents were $3.5 million compared to $3.1 million at December 31, 2024.

Based on our current

operating plan, there is substantial doubt regarding our ability to continue as a going concern for a period of one year after the date

that our financial statements for the year ended December 31, 2025 are issued.

To meet our long-term financing requirements, we may raise

funds through public or private equity offerings, debt financings or strategic alliances.

additional funds by issuing equity or convertible debt securities may cause our stockholders to experience substantial dilution in their

ownership interests and new investors may have rights superior to the rights of our other stockholders.

To the extent equity valuations,

including the trading price of our common stock, are depressed as a result of economic disruptions or other uncertainties, for example

due to rising inflationary pressures, ongoing military conflicts or other factors, the potential magnitude of this dilution will increase.

Raising additional funds through debt financing, if available, may involve covenants that restrict our business activities and options.

To the extent that we raise additional funds through collaborations and licensing arrangements, we may have to relinquish valuable rights to our drug discovery and other technologies, research programs or drug candidates, or grant licenses on terms that may not be favorable to us.

Additional funding may not be available to us on favorable terms, or at all, particularly in light of the current economic conditions.

If we are unable to obtain additional funds, we may be forced to delay or terminate our current clinical trials and the development and marketing of our remaining drug candidate.

Unstable market and economic conditions may have serious adverse consequences on our business, financial condition and stock price.

Concerns over energy costs, geopolitical issues, the U.S.

mortgage market and a deteriorating real estate market, unstable global credit markets and financial conditions, and volatile oil prices have led to periods of significant economic instability, diminished liquidity and credit availability, declines in consumer confidence and discretionary spending, diminished expectations for the global economy and expectations of slower global economic growth, increased unemployment rates, and increased credit defaults in recent years.

Our general business strategy may be adversely affected by any such economic downturns, volatile business environments and continued unstable or unpredictable economic and market conditions.

There can be no assurance that further deterioration in credit and financial markets and confidence in economic conditions will not continue to occur.

Our general business strategy may be adversely affected by any such economic downturn, volatile business environment or continued unpredictable and unstable market conditions.

If the current financial markets deteriorate, or do not improve, it may make any necessary financing more difficult, more costly, and more dilutive.

Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay or abandon clinical development or other operating or strategic plans for our business.

Our ability to use net operating loss and tax credit carryforwards and certain built-in losses to reduce future tax payments is limited by provisions of the Internal Revenue Code and may be subject to further limitation as a result of the transactions completed in connection with our initial public offering.

Under Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an “ownership change” (generally defined as a greater than 50% change (by value) in its equity ownership over a three-year period), the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income may be limited.

As a result of our most recent private placement and other transactions that have occurred over the past three years, we may have experienced an “ownership change.” We may also experience ownership changes in the future as a result of subsequent shifts in our stock ownership.

As of December 31, 2024, we had federal and state net operating loss carryforwards of approximately $3.5 million and $16.9 million, respectively.

and macroeconomic events and conditions could adversely affect our business, operating results, financial condition and cash flows.

business is sensitive to geopolitical and security issues, including foreign policy actions taken by governments such as tariffs, sanctions,

embargoes, export and import controls and other trade restrictions, which can affect the demand for our products and services, the ability

to sell our products and services, and disrupt our supply chain, all of which could adversely affect our business.

Global conflicts,

including Russia’s invasion of Ukraine, have significantly elevated global geopolitical tensions and security concerns.

Government and other nations have implemented broad economic sanctions and export controls targeting Russia, which, combined

with the Ukraine conflict, has indirectly disrupted the global supply chain and increased pressures on certain resources.

conflict also has increased the threat of malicious cyber activity from nation states and other actors.

levels of inflation and the potential worsening of macro-economic conditions, including slower growth or recession, changes to fiscal

and monetary policy, tighter credit, higher interest rates and currency fluctuations, present a risk for us, our suppliers and the stability

of the broader defense industrial base.

If we are unable to successfully mitigate the impact of inflation, our profits, margins and cash

flows, particularly for existing fixed-price contracts, may be adversely affected.

Although we believe defense spending is more resilient

to adverse macro-economic conditions than many other industrial sectors, our suppliers and other partners, many of which are more exposed

to commercial markets or have fewer resources, may be adversely impacted to a more significant degree than we are by an economic downturn,

which could affect their performance and have an adverse impact on our operations.

In addition, macroeconomic conditions could cause

budgetary pressures for our government customers resulting in reductions or delays in spending, which could adversely impact our business.

Related to Inflation

2026, Malaysia’s inflation is projected to remain manageable, with headline inflation estimated to average between 1.3% and 2.0%.

While this is slightly higher than the 1.4% average seen in 2025, it remains below the long-term historical average of 2.3%.

this stable outlook, several upside and downside risks persist.

The primary domestic risk stems from the continued rationalization of

subsidies, particularly for fuel (RON95) and electricity.

While targeted aid is intended to cushion the impact, these reforms could push

headline rates toward the upper end of projections (approximately 2.0%) as direct costs pass through to consumers.

Malaysia remains highly

exposed to trade uncertainties and geopolitical tensions.

Upside risks include potential new tariffs (specifically from the U.S.) and

supply chain disruptions that could increase the cost of imported goods.

The introduction of a multi-tier levy for migrant workers and

the second phase of civil servant wage increases in January 2026 are expected to add cost pressures in labor-intensive sectors.

Ringgit could lead to “imported inflation” by making imports more expensive.

Conversely, a stronger Ringgit (forecasted to

reach RM4.00 per USD by late 2026) is currently serving as a buffer against these pressures.

Additionally, because a substantial portion

of our assets consists of cash and cash equivalents and short-term investments, high inflation could significantly reduce the value and

purchasing power of these assets.

We are not able to hedge our exposures to higher inflation in Malaysia.

ability to use net operating loss and certain built-in losses to reduce future tax payments is limited by provisions of the Internal

Revenue Code and may be subject to further limitation as a result of the transactions completed in connection with our initial public

Section 382 of the Internal Revenue Code of 1986, as amended, if a corporation undergoes an “ownership change” (generally

defined as a greater than 50% change (by value) in its equity ownership over a three-year period), the corporation’s ability to

use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income may be limited.

As a result of our most recent acquisition of Fitters plus private placement and other transactions that have occurred over the past

three years, we may have experienced an “ownership change.” We may also experience ownership changes in the future as a result

of subsequent shifts in our stock ownership.

As of December 31, 2025, we had federal and state net operating loss carryforwards of approximately

$8.0 million and $21.4 million compared to December 31, 2024, we had federal and state net operating loss carryforwards of approximately

$3.5 million and $16.9 million, respectively.

There were no federal or state research and development credits.

Furthermore, under U.S.

tax legislation enacted in December 2017, although the treatment of tax losses generated before December 31, 2017 has generally not changed, tax losses generated in calendar year 2018 and beyond do not expire but may only offset 80% of our taxable income.

This change may require us to pay federal income taxes in future years despite generating a loss for federal income tax purposes in prior years.

Inadequate funding for the FDA, the SEC and other government agencies could hinder their ability to hire and retain key leadership and other personnel, prevent new products and services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation of our business may rely, which could negatively impact our business.

The ability of the FDA to review and approve new products can be affected by a variety of factors, including government budget and funding levels, ability to hire and retain key personnel and accept the payment of user fees, and statutory, regulatory, and policy changes.

Average review times at the agency have fluctuated in recent years as a result.

In addition, government funding of the SEC and other government agencies on which our operations may rely, including those that fund research and development activities is subject to the political process, which is inherently fluid and unpredictable.

Disruptions at the FDA and other agencies may also slow the time necessary for new drugs to be reviewed and/or approved by necessary government agencies, which would adversely affect our business.

If a prolonged government shutdown occurs, it could significantly impact the ability of the FDA to timely review and process our regulatory submissions, which could have a material adverse effect on our business.

Further, upon completion of this offering and in our operations as a public company, future government shutdowns could impact our ability to access the public markets and obtain necessary capital in order to properly capitalize and continue our operations.

Our employees, independent contractors, principal investigators, contract research organizations, consultants or vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.

We are exposed to the risk that our employees, independent contractors, principal investigators, contract research organizations, consultants or vendors may engage in fraudulent or other illegal activity.

Misconduct by these parties could include intentional, reckless and/or negligent conduct or disclosure of unauthorized activities to us that violates:

FDA regulations, including those laws requiring the reporting of true, complete and accurate information to the FDA;

manufacturing standards;

federal and state health care fraud and abuse laws and regulations;

or laws that require the true, complete and accurate reporting of financial information or data.

In addition, sales, marketing and business arrangements in the health care industry are subject to extensive laws and regulations intended to prevent fraud, kickbacks, self-dealing and other abusive practices.

These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs and other business arrangements.

Activities subject to these laws also involve the improper use or misrepresentation of information obtained in the course of clinical trials or creating fraudulent data in our nonclinical studies or clinical trials, which could result in regulatory sanctions and serious harm to our reputation.

It is not always possible to identify and deter misconduct by our employees and other third parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations.

Additionally, we are subject to the risk that a person could allege such fraud or other misconduct, even if none occurred.

If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, possible exclusion from participation in Medicare, Medicaid and other federal health care programs, contractual damages, reputational harm, diminished potential profits and future earnings, and curtailment of our operations, any of which could adversely affect our business, financial condition, results of operations or prospects.

If we are unable to compete successfully in our marketplace, it will harm our business.

There are existing products in the marketplace that compete with our products.

Companies may develop new products that compete with our products.

Certain competitors and potential competitors have longer operating histories, substantially greater product development capabilities and financial, scientific, marketing and sales resources.

Competitors and potential competitors may also develop products that are safer, more effective or have other potential advantages compared to our products.

In addition, research, development and commercialization efforts by others could

render our products obsolete or non-competitive.

Certain competitors and potential competitors have broader product offerings and extensive customer bases, allowing them to adopt aggressive pricing policies that would enable them to gain market share.

Competitive pressure could result in price reductions, reduced margins and loss of market share.

We could encounter potential customers that, due to existing relationships with our competitors, are committed to products offered by those competitors.

As a result, those potential customers may not consider purchasing our products.

We are at an early stage of development as a company and we do not have, and may never have, any products that generate significant revenues.

We are at an early stage of development as a company and have a limited operating history on which to evaluate our business and prospects.

We cannot guarantee that our sole product candidate currently in development will ever become marketable.

We must demonstrate that our drug candidate satisfies rigorous standards of safety and efficacy for their intended uses before the FDA, EMA and other regulatory authorities in the United States, the European Union and elsewhere.

Significant additional research, preclinical testing and clinical testing is required before we can file applications with the FDA or EMA for approval of plogo or any of our future drug candidates.

In addition, to compete effectively, our drugs must be easy to administer, cost-effective and economical to manufacture on a commercial scale.

We may not achieve any of these objectives.

We cannot be certain that the clinical development of our drug candidates in preclinical testing or clinical development will be successful, that we will receive regulatory approvals required to commercialize them or that any of our other research and drug discovery programs will yield a drug candidate suitable for investigation through clinical trials.

Our commercial revenues from our product candidate currently in development, if any, will be derived from sales of drugs that will not become marketable for several years, if at all.

If we fail to comply with the continued listing requirements of the Nasdaq Capital Market, our common stock may be delisted and the price of our common stock and our ability to access the capital markets could be negatively impacted.

Our common stock is currently listed for trading on the Nasdaq Capital Market (“Nasdaq”).

We must satisfy Nasdaq’s continued listing requirements, including, among other things, a minimum stockholders’ equity of $2.5 million and a minimum bid price for our common stock of $1.00 per share, or risk delisting, which would have a material adverse effect on our business.

In order to maintain our listing, we must also maintain continued business operations so that we are not characterized as a “public shell company.”

A delisting of our common stock from the Nasdaq Capital Market could materially reduce the liquidity of our common stock and result in a corresponding material reduction in the price of our common stock.

In addition, delisting could harm our ability to raise capital through alternative financing sources on terms acceptable to us, or at all, and may result in the potential loss of confidence by investors, suppliers, customers and employees and fewer business development opportunities.

We effected a 15:1 reverse stock split of our common stock on December 18, 2023 (the “Reverse Stock Split”), which enabled us to regain compliance with Nasdaq’s minimum bid price requirements.

On February 25, 2025, Nasdaq notified the Company that it has regained compliance with the equity requirement in Listing Rule 5550(b)(1) (the “Equity Rule”), as required by the Nasdaq Hearing Panel’s decision dated October 22, 2024.

As previously reported by the Company on Form 8-K, filed with the SEC on October 24, 2024, on October 15, 2024, the Company met with the Nasdaq Hearings Panel regarding its potential delisting from Nasdaq as a result of its non-compliance with the Equity Rule.

On October 22, 2024, the Company received the Nasdaq Hearings Panel decision which granted the Company until December 24, 2024 to regain compliance with the Equity Rule.

Following the Company’s regaining compliance with the Equity Rule pursuant to the February 25, 2025, the Company will be subject to a Mandatory Panel Monitor for a period of one year from February 25, 2025 pursuant to Listing Rule 5815(d)(4)(B).

Notwithstanding the Reverse Stock Split and our compliance with the Equity Rule, we cannot be sure that our share price will continue to comply with the requirements for continued listing of our common stock on the Nasdaq Capital Market in the future, or that we will continue to comply with the other continued listing requirements.

If our shares of common stock lose their status on the Nasdaq Capital Market, we believe that our shares of common stock would likely be eligible to be quoted on the inter-dealer electronic quotation and trading system operated by Pink OTC Markets Inc.,

tax legislation enacted in December 2017, although the treatment of tax losses generated before December 31, 2017 has generally

not changed, tax losses generated in calendar year 2018 and beyond do not expire but may only offset 80% of our taxable income, which

change may require us to pay federal income taxes in future years despite generating a loss for federal income tax purposes in prior

The CARES Act temporarily allowed 100% offsets and 5-year carrybacks for losses arising in 2018, 2019, and 2020.

These temporary

provisions have since expired, and the standard 80% limit was reinstated for tax years beginning after December 31, 2020.

operating loss have been permanently extended or maintained by subsequent legislation, including the One Big Beautiful Bill (OBBB) Act

we fail to comply with the continued listing requirements of the Nasdaq Capital Market, our common stock may be delisted and the price

of our common stock and our ability to access the capital markets could be negatively impacted.

common stock is currently listed for trading on the Nasdaq Capital Market (“Nasdaq”).

We must satisfy Nasdaq’s continued

listing requirements, including, among other things, a minimum stockholders’ equity of $2.5 million and a minimum bid price

for our common stock of $1.00 per share, or risk delisting, which would have a material adverse effect on our business.

to maintain our listing, we must also maintain continued business operations so that we are not characterized as a “public shell

delisting of our common stock from the Nasdaq Capital Market could materially reduce the liquidity of our common stock and result in

a corresponding material reduction in the price of our common stock.

In addition, delisting could harm our ability to raise capital through

alternative financing sources on terms acceptable to us, or at all, and may result in the potential loss of confidence by investors,

suppliers, customers and employees and fewer business development opportunities.

February 25, 2025, Nasdaq notified the Company that it has regained compliance with the equity requirement in Listing Rule 5550(b)(1)

(the “Equity Rule”), as required by the Nasdaq Hearing Panel’s decision dated October 22, 2024.

As previously reported

by the Company on Form 8-K, filed with the SEC on October 24, 2024, on October 15, 2024, the Company met with the Nasdaq Hearings Panel

regarding its potential delisting from Nasdaq as a result of its non-compliance with the Equity Rule.

On October 22, 2024, the Company

received the Nasdaq Hearings Panel decision which granted the Company until December 24, 2024 to regain compliance with the Equity Rule.

Following the Company’s regaining compliance with the Equity Rule pursuant to the February 25, 2025, the Company will be subject

to a Mandatory Panel Monitor for a period of one year from February 25, 2025 pursuant to Listing Rule 5815(d)(4)(B).

May 7, 2025, the “Company filed an amendment to its Certificate of Incorporation (the “May Certificate of Amendment”)

to implement a one-for-sixteen reverse stock split.

The effective date of the Certificate of Amendment is May 12, 2025 (the “May

12 Effective Date”).

The Company’s common stock began trading on a split-adjusted basis when the market opens on the May

12 Effective Date.

The Board of Directors of the Company approved the amendment to the Company’s Certificate of Incorporation primarily

to meet the share bid price requirements of The Nasdaq Capital Market.

The Company’s stockholders approved the Certificate of Amendment

at a special meeting of its stockholders held on February 6, 2025.

As a result of the reverse stock split, on the Effective Date, every

sixteen shares of common stock then issued and outstanding automatically were combined into one share of common stock, with no change

in par value per share.

No fractional shares were outstanding following the reverse stock split, and any fractional shares that would

have resulted from the reverse stock split were (a) rounded up to the nearest whole number for any shareholder who would otherwise be

entitled to receive one-half or more of a fractional split-adjusted share, and (b) rounded down to the nearest whole number for any shareholder

who would otherwise be entitled to receive less than one-half of a fractional split-adjusted share.

July 2, 2025, the Company) filed an amendment to its Certificate of Incorporation (“July Certificate of Amendment”) to implement

a one-for-fifteen reverse stock split.

The effective date of the Certificate of Amendment is July 7, 2025 (the “July 7 Effective

The Company’s common stock will begin trading on a split-adjusted basis when the market opens on the July 7 Effective

The Board of Directors of the Company approved the amendment to the Company’s July Certificate of Incorporation primarily

to meet the share bid price requirements of The Nasdaq Capital Market.

The Company’s stockholders approved the Certificate of Amendment

by majority written consent on May 12, 2025.

As a result of the reverse stock split, on the Effective Date, every fifteen shares of common

stock then issued and outstanding automatically were combined into one share of common stock, with no change in par value per share.

No fractional shares were outstanding following the reverse stock split, and any fractional shares that would have resulted from the

reverse stock split were (a) rounded up to the nearest whole number for any shareholder who would otherwise be entitled to receive one-half

or more of a fractional split-adjusted share, and (b) rounded down to the nearest whole number for any shareholder who would otherwise

be entitled to receive less than one-half of a fractional split-adjusted share.

Notwithstanding

our compliance with the Equity Rule, we cannot be sure that our share price will continue to comply with the requirements for continued

listing of our common stock on the Nasdaq Capital Market in the future, or that we will continue to comply with the other continued listing

requirements.

If our shares of common stock lose their status on the Nasdaq Capital Market, we believe that our shares of common stock

would likely be eligible to be quoted on the inter-dealer electronic quotation and trading system operated by Pink OTC Markets Inc.,

commonly referred to as the Pink Sheets and now known as the OTCQB market.

Our shares of common stock may also be quoted on the Over-the-Counter Bulletin Board, an electronic quotation service maintained by the Financial Industry Regulatory Authority.

These markets are generally not considered to be as efficient as, and not as broad as, the Nasdaq Capital Market.

Selling our shares of common stock on these markets could be more difficult because smaller quantities of shares would likely be bought and sold, and transactions could be delayed.

In addition, in the event our shares of common stock are delisted, broker-dealers have certain regulatory burdens imposed upon them, which may discourage broker-dealers from effecting transactions in our common stock, further limiting the liquidity of our common stock.

These factors could result in lower prices and larger spreads in the bid and ask prices for our common stock.

To the extent we elect to fund the development of a drug candidate or the commercialization of a drug at our expense, we will need substantial additional funding.

We plan to market drugs on our own, with or without a partner, that can be effectively commercialized and sold in concentrated markets that do not require a large sales force to be competitive.

To achieve this goal, we will need to establish our own specialized sales force, marketing organization and supporting distribution capabilities.

The development and commercialization of our drug candidates is very expensive.

To the extent we elect to fund the full development of a drug candidate or the commercialization of a drug at our expense, we will need to raise substantial additional funding to:

● fund research and development and clinical trials connected with our research;

● fund clinical trials and seek regulatory approvals;

● build or access manufacturing and commercialization capabilities;

● implement additional internal control systems and infrastructure;

● commercialize and secure coverage, payment and reimbursement of our drug candidates, if any such candidates receive regulatory approval;

● maintain, defend and expand the scope of our intellectual property;

● hire additional management, sales and scientific personnel.

Our future funding requirements will depend on many factors, including:

● the scope, rate of progress and cost of our clinical trials and other research and development activities;

● the costs and timing of seeking and obtaining regulatory approvals;

● the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights;

● the costs associated with establishing sales and marketing capabilities;

● the costs of acquiring or investing in businesses, products and technologies;

● the effect of competing technological and market developments;

● the payment, other terms and timing of any strategic alliance, licensing or other arrangements that we may establish.

If we are not able to secure additional funding when needed, especially in light of the current economic conditions and financial market turmoil, we may have to delay, reduce the scope of or eliminate one or more of our clinical trials or research and development programs or future commercialization efforts.

Our insurance policies are expensive and only protect us from some business risks, which will leave us exposed to significant uninsured liabilities.

We do not carry insurance for all categories of risk that our business may encounter.

Some of the policies we currently maintain include property, general liability, employment benefits liability, workers’ compensation, products liability and clinical trials (U.S.

and foreign), and directors’ and officers’, employment practices and fiduciary liability insurance.

We do not know, however, if we will be able to maintain insurance with adequate levels of coverage.

Any significant uninsured liability may require us to pay substantial amounts, which would adversely affect our financial position and results of operations.

Funding constraints may negatively impact our research and development, forcing us to delay our efforts to develop Plogo, which may prevent us from commercializing our product candidate as quickly as possible.

Research and development is an expensive process.

As part of our operating plan, we have decided to concentrate our clinical development strategy on our single remaining product candidate, Plogo, an ongoing, hemato-oncology clinical program in transcriptional regulation and mitosis control biology, which include our areas of historical expertise in PLK inhibitor.

Because we have to prioritize our development candidate as a result of budget constraints, we may not be able to fully realize the value of our product candidate in a timely manner, if at all.

We are exposed to risks related to foreign currency exchange rates.

Some of our costs and expenses are denominated in foreign currencies.

Most of our foreign expenses are associated with our research and development expenditures, including the operating costs of our United Kingdom-based wholly owned subsidiary.

When the United States dollar weakens against the British pound or the Euro, the United States dollar value of the foreign currency denominated expense increases, and when the United States dollar strengthens against the British pound or the Euro, the United States dollar value of the foreign currency denominated expense decreases.

Consequently, changes in exchange rates, and in particular a weakening of the United States dollar, may adversely affect our results of operations.

Security incidents, loss of data and other disruptions could compromise sensitive information related to our business or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation.

Our business and operations would suffer in the event of system failures.

In the ordinary course of our business, we collect and store sensitive data, intellectual property and proprietary business information owned or controlled by ourselves or our customers.

This data encompasses a wide variety of business-critical information including research and development information, commercial information, and business and financial information.

We face four primary risks related to protecting this critical information:

Our shares of common stock may also be quoted on the Over-the-Counter

Bulletin Board, an electronic quotation service maintained by the Financial Industry Regulatory Authority.

These markets are generally

not considered to be as efficient as, and not as broad as, the Nasdaq Capital Market.

Selling our shares of common stock on these markets

could be more difficult because smaller quantities of shares would likely be bought and sold, and transactions could be delayed.

in the event our shares of common stock are delisted, broker-dealers have certain regulatory burdens imposed upon them, which may discourage

broker-dealers from effecting transactions in our common stock, further limiting the liquidity of our common stock.

These factors could

result in lower prices and larger spreads in the bid and ask prices for our common stock.

with the United States securities laws and regulations is likely to make it more difficult and expensive for us to obtain directors’

and officers’ liability insurance and to attract and retain qualified members of our board of directors.

expect the Sarbanes-Oxley Act and the rules and regulations subsequently implemented by the SEC and the Public Company Accounting Oversight

Board to continue to impose significant compliance burdens and costs on the operations of the business.

Those rules and regulations may

make it more difficult and expensive for us to maintain director and officer liability insurance, and we may be required to accept reduced

coverage or incur substantially higher costs to maintain coverage.

These rules and regulations could also make it more difficult for

us to attract and retain qualified members of our board of directors, particularly to serve on our audit committee, and executive officers.

insurance policies are expensive and only protect us from some business risks, which will leave us exposed to significant uninsured liabilities.

do not carry insurance for all categories of risk that our business may encounter.

We do not know, however, if we will be able to maintain

insurance with adequate levels of coverage.

Any significant uninsured liability may require us to pay substantial amounts, which would

adversely affect our financial position and results of operations.

business could be adversely affected by significant movements in foreign currency exchange rates.

are exposed to fluctuations in foreign currency exchange rates, which causes foreign currency risk related to the fluctuation in fair

value or future cash flows of a financial instrument as a result of changes in foreign exchange rates.

Fitters has transactional currency

exposures arising from sales or purchases that are denominated in a currency other than the respective functional currencies of Group

Approximately 0% in 2025 and 0.01% in 2024 of Fitters’ sales are denominated in foreign currencies whilst almost 83%

80%) of costs are denominated in the respective functional currencies of Fitters entities.

Fitters’ trade receivable and

trade payable balances at the reporting date have similar exposures.

Fitters did not hold any cash and/or cash equivalents denominated

in foreign currencies for working capital purpose.

Any significant change in the value of currencies of the countries in which we do

business relative to the value of the Malaysian Ringgit (MYR), could affect our ability to sell products competitively and control our

cost structure, which could have a material adverse effect on our business, financial condition, results of operations and cash flow.

incidents, loss of data and other disruptions could compromise sensitive information related to our business or prevent us from accessing

critical information and expose us to liability, which could adversely affect our business and our reputation.

Our business and operations

would suffer in the event of system failures.

the ordinary course of our business, we collect and store sensitive data, intellectual property and proprietary business information

owned or controlled by ourselves or our customers.

This data encompasses a wide variety of business-critical information including research

and development information, commercial information, and business and financial information.

We face four primary risks related to protecting

this critical information:

loss of access;

1 unchanged sentence

unauthorized modification;

and inadequate monitoring of our controls over the first three risks.

We utilize information technology, or IT, systems and networks to process, transmit and store electronic information in connection with our business activities.

The secure processing, storage, maintenance, and transmission of this critical information is vital to our operations and business strategy, and we devote significant resources to protecting such information.

As use of digital technologies has increased, cyber incidents, including deliberate attacks and attempts to gain unauthorized access to computer systems and networks, have increased in frequency and sophistication.

These threats pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data.

There can be no assurance that we will be successful in preventing cybersecurity incidents or successfully mitigating their effects.

Despite the implementation of security measures, our internal and cloud-based computer systems and those of our contractors and consultants are vulnerable to damage from such cybersecurity incidents, including computer viruses, social engineering, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures.

Such an event could cause interruption of our operations.

For example, the loss of data from ongoing or completed clinical trials for our product candidate could result in delays in our regulatory approval efforts and significantly increase our costs.

In addition, there can be no assurance that we will promptly detect any such disruption or security breach, if at

To the extent that any disruption or security breach were to result in a loss of or damage to our data, or inappropriate disclosure of confidential or proprietary information, we could suffer material legal claims and liability, damage to our reputation, suffer loss or harm to our intellectual property rights and the further research, development and commercial efforts of our products and product candidate could be delayed.

The loss of drug development or clinical trial data could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data and could adversely impact our business and operations, and could result in financial, legal, operational or reputational harm to us, loss of competitive advantage or loss of consumer confidence.

Risks Related to our Reliance on Third Parties

We rely, and expect to continue to rely, on third parties to conduct some aspects of our product formulation, research, preclinical, and clinical studies, and those third parties may not perform satisfactorily, including by failing to meet deadlines for the completion of such formulation, research or testing.

We have relied upon and plan to continue to rely upon third parties, including independent clinical investigators, contracted laboratories and third-party CROs, to conduct our preclinical studies and clinical trials, as well as certain product candidate discovery and development activities, in accordance with applicable regulatory requirements and to monitor and manage data for our ongoing preclinical and clinical programs.

We rely on these parties for execution of our preclinical studies and clinical trials, and control only certain aspects of their activities.

Nevertheless, we are responsible for ensuring that each of our studies and trials is conducted in accordance with the applicable protocol, legal and regulatory requirements and scientific standards, and our reliance on these third parties does not relieve us of our regulatory responsibilities.

We and our third-party contractors and CROs are required to comply with GLP and GCP requirements, as applicable, which are regulations and guidelines enforced by the FDA, the EMA and other comparable foreign regulatory authorities for all of our products in clinical development.

Regulatory authorities enforce these GLP and GCP regulations through periodic inspections of laboratories conducting GLP studies, and clinical trial sponsors, principal investigators, CROs, and trial sites when auditing for GCP compliance.

If we, our investigators or any of our CROs or contracted laboratories fail to comply with applicable GLP and GCP regulations, as applicable, the data generated in our preclinical studies and clinical trials may be deemed unreliable and the FDA, the EMA or other comparable foreign regulatory authorities may require us to perform additional preclinical studies or clinical trials before approving our marketing applications for our therapeutic product candidates.

We cannot assure you that upon inspection by a given regulatory authority, such regulatory authority will determine that any of our preclinical studies or clinical trials comply with applicable GLP or GCP regulations.

In addition, our clinical trials must be conducted with product manufactured in compliance with applicable cGMP regulations.

Our failure to comply with these regulations may require us to repeat preclinical studies or clinical trials, which would delay the regulatory approval process.

Further, these laboratories, investigators and CROs are not our employees, and we will not be able to control, other than by contract, the amount of resources, including time which they devote to plogo or and of our future product candidate and clinical trials.

If independent laboratories, investigators or CROs fail to devote sufficient resources to the development of our product candidate, or if their performance is substandard, it may delay or compromise the prospects for approval and commercialization of plogo or any future product candidates that we develop.

In addition, the use of third-party service providers requires us to disclose our proprietary information to these parties, which could increase the risk that this information will be misappropriated.

There is a limited number of third-party service providers that specialize or have the expertise required to achieve our business objectives.

If any of our relationships with these third-party laboratories, CROs or clinical investigators terminate, we may not be able to enter into arrangements with alternative laboratories, CROs or investigators or to do so in a timely manner or on commercially reasonable terms.

If laboratories, CROs or clinical investigators do not successfully carry out their contractual duties or obligations or meet expected deadlines, if they need to be replaced or if the quality or accuracy of the clinical data they obtain is compromised due to the failure to adhere to our preclinical or clinical protocols, regulatory requirements or for other reasons, our preclinical studies or clinical trials may be extended, delayed or terminated and we may not be able to obtain regulatory approval for or successfully commercialize our product candidate.

As a result, our results of operations and the commercial prospects for our product candidate would be harmed, our costs could increase and our ability to generate revenues could be delayed.

Switching or adding additional laboratories or CROs (or investigators) involves additional costs and requires management time and focus.

In addition, there is a natural transition period when a new laboratory or CRO commences work.

As a result, delays occur, which can materially impact our ability to meet our desired clinical development timelines.

Though we carefully manage our relationships with our contracted laboratories and CROs, there can be no assurance that we will not encounter similar challenges or delays in the future or that these delays or challenges will not have a material adverse impact on our business, financial condition and results of operations.

In addition, clinical investigators may serve as scientific advisors or consultants to us from time to time and may receive cash compensation in connection with such services.

If these relationships and any related compensation result in perceived or actual conflicts of interest, or the FDA concludes that the financial relationship may have affected the interpretation of the preclinical study or clinical trial, the integrity of the data generated at the applicable preclinical study or clinical trial site may be questioned and the utility of the preclinical study or clinical trial itself may be jeopardized, which could result in the delay or rejection by the FDA.

Any such delay or rejection could prevent us from commercializing our clinical-stage product candidate or any future therapeutic product candidates it may develop.

We rely on third-party supply and manufacturing partners for drug supplies for our late-stage clinical activities and may do the same for any commercial supplies of our product candidate.

We rely on third-party contract manufacturing organizations, or CMOs, for our preclinical and future clinical trial product materials and commercial supplies.

We do not intend to produce any meaningful quantity of plogo or any of our future product candidates for preclinical and clinical development through our internal resources, and we do not currently own manufacturing facilities for producing such supplies.

While we intend to try to avoid sole-source arrangements with any of our manufacturing, supply and testing vendors, it may not always be possible to do so.

We cannot assure you that our preclinical or future clinical development product supplies and commercial supplies will not be limited or interrupted, especially with respect to any sole source third-party manufacturing and supply partners or will be of satisfactory quality or continue to be available at acceptable prices.

In particular, any replacement of our manufacturers could require significant effort and expertise because there may be a limited number of qualified replacements.

In complying with the manufacturing regulations of the FDA and other comparable foreign regulatory authorities, we and our third-party suppliers must spend significant time, money and effort in the areas of design and development, testing, production, record-keeping and quality control to assure that the products meet applicable specifications and other regulatory requirements.

Suppliers and manufacturers must meet applicable manufacturing requirements and undergo rigorous facility and process validation tests required by regulatory authorities in order to comply with regulatory standards, such as cGMP.

Although our agreements with our CMOs require them to perform according to certain cGMP requirements such as those relating to quality control, quality assurance and qualified personnel, we cannot control the conduct of our CMOs to implement and maintain these standards.

In the event that any of our current or future manufacturers fails to comply with such requirements or to perform its obligations to us in relation to quality, timing or otherwise, or if our supply of components or other materials becomes limited or interrupted for other reasons, we may be forced to manufacture the materials ourselves, for which we currently do not have the capabilities or resources, or enter into an agreement with another third party, which we may not be able to do on commercially reasonable terms, or at all.

In some cases, the technical skills or technology required to manufacture our future product candidates may be unique or proprietary to the original manufacturer and we may have difficulty transferring such skills or technology to another third party and a feasible alternative may not exist.

These factors would increase our reliance on such manufacturer or require us to obtain a license from such manufacturer in order to have another third party manufacture our product candidate.

If we are required to change manufacturers for any reason, we will be required to verify that the new manufacturer maintains facilities and procedures that comply with quality standards and with all applicable regulations and guidelines.

The delays associated with the verification of a new manufacturer could negatively affect our ability to develop product candidate in a timely manner or within budget.

In addition, our CMOs are subject to inspection and approval by regulatory authorities before we can commence the manufacture and sale of any of plogo and thereafter are subject to ongoing inspection from time to time.

Our CMOs may not be able to comply with applicable cGMP regulations or similar regulatory requirements outside of the United States.

Our failure, or the failure of our third-party manufacturers, to comply with applicable regulations could result in

regulatory actions, such as the issuance of FDA Form 483 notices of observations, warning letters or sanctions being imposed on us, including clinical holds, fines, injunctions, civil penalties, delays, suspension or withdrawal of approvals, license revocation, seizures or recalls of product candidates or drugs, operating restrictions and criminal prosecutions, any of which could significantly and adversely affect supplies of our products.

Any such failure by us or any of our CMOs would significantly impact our ability to develop, obtain regulatory approval for or, if approved, market our product candidate.

We may rely on third-party manufacturers if we receive regulatory approval for any product candidate.

To the extent that we have existing, or enter into future, manufacturing arrangements with third parties, we will depend on these third parties to perform their obligations in a timely manner consistent with contractual and regulatory requirements, including those related to quality control and assurance.

If we are unable to obtain or maintain third-party manufacturing for product candidate, or to do so on commercially reasonable terms, we may not be able to develop and commercialize our product candidate successfully.

Our or a third-party’s failure to execute our manufacturing requirements could adversely affect our business in a number of ways, including:

● an inability to initiate or continue clinical trials of plogo under development, which may impact our potential economic benefits;

● delay in submitting regulatory applications, or receiving regulatory approvals, for plogo or any future product candidate;

● loss of the cooperation of a collaborator;

● subjecting plogo or any future of our product candidate to additional inspections by regulatory authorities;

● requirements to cease distribution or to recall batches of plogo or any future of our product candidate;

● in the event of approval to market and commercialize plogo or any future product candidate, an inability to meet commercial demands for our products.

If we fail to enter into and maintain successful strategic alliances for our drug candidates, we may have to reduce or delay our drug candidate development or increase our expenditures.

An important element of our strategy for developing, manufacturing and commercializing our drug candidates is entering into strategic alliances with pharmaceutical companies, research institutions or other industry participants to advance our programs and enable us to maintain our financial and operational capacity.

We face significant competition in seeking appropriate alliances.

We may not be able to negotiate alliances on acceptable terms, if at all.

In addition, these alliances may be unsuccessful.

If we fail to create and maintain suitable alliances, we may have to limit the size or scope of, or delay, one or more of our drug development or research programs.

If we elect to fund drug development or research programs on our own, we will have to increase our expenditure and will need to obtain additional funding, which may be unavailable or available only on unfavorable terms.

To the extent we are able to enter into strategic transactions, we will be exposed to risks related to those collaborations and alliances.

We expect to enter into strategic transactions to complete the development and commercialization of some of our drug candidates, including but not limited to after the Phase 2 stage of clinical testing.

These arrangements may place the development of our drug candidates outside our control, may require us to relinquish important rights, or may otherwise be on terms unfavorable to us.

Dependence on collaborative arrangements or strategic alliances will subject us to a number of risks, including the risks that:

● we may not be able to control the amount and timing of resources that our collaborators may devote to the drug

● our collaborators may experience financial difficulties;

● we may be required to relinquish important rights such as marketing and distribution rights;

● business combinations or significant changes in a collaborator’s business strategy may also adversely affect a collaborator’s willingness or ability to complete its obligations under any arrangement;

● a collaborator could independently move forward with a competing drug candidate developed either independently or in collaboration with others, including our competitors;

● collaborative arrangements are often terminated or allowed to expire, which would delay development and may increase the cost of developing our drug candidates.

Risks Related to our Intellectual Property

If we fail to enforce adequately or defend our intellectual property rights, our business may be harmed.

Our commercial success depends in large part on obtaining and maintaining patent and trade secret protection for our drug candidates, the methods used to manufacture those drug candidates and the methods for treating patients using those drug candidates.

Our ability to obtain patents is uncertain because legal means afford only limited protections and may not adequately protect our rights or permit us to gain or keep any competitive advantage.

Some legal principles remain unresolved and the breadth or interpretation of claims allowed in patents in the United States, the European Union or elsewhere can still be difficult to ascertain or predict.

In addition, the specific content of patents and patent applications that are necessary to support and interpret patent claims is highly uncertain due to the complex nature of the relevant legal, scientific and factual issues.

Changes in either patent laws or in interpretations of patent laws in the United States, the European Union or elsewhere may diminish the value of our intellectual property or narrow the scope of our patent protection.

Our existing patents and any future patents we obtain may not be sufficiently broad to prevent others from practicing our technologies or from developing competing products and technologies.

In addition, we generally do not control the patent prosecution of subject matter that we license from others and have not controlled the earlier stages of the patent prosecution.

Accordingly, we are unable to exercise the same degree of control over this intellectual property as we would over our own.

Even if patents are issued regarding our drug candidates or methods of using them, those patents can be challenged by our competitors who may argue such patents are invalid and/or unenforceable.

Patents also will not protect our drug candidates if competitors devise ways of making or using plogo or any future of our product candidates without legally infringing our patents.

The FDA and FDA regulations and policies and equivalents in other jurisdictions provide incentives to manufacturers to challenge patent validity or create modified, non-infringing versions of a drug in order to facilitate the approval of abbreviated new drug applications for generic substitutes.

These same types of incentives encourage manufacturers to submit NDAs that rely on literature and clinical data not prepared for or by the drug sponsor.

Proprietary trade secrets and unpatented know-how are also very important to our business.

We rely on trade secrets to protect our technology, especially where we do not believe that patent protection is appropriate or obtainable.

However, trade secrets are difficult to protect.

Our employees, consultants, contractors, outside scientific collaborators and other advisors may unintentionally or willfully disclose our confidential information to competitors, and confidentiality agreements may not provide an adequate remedy in the event of unauthorized disclosure of confidential information.

Enforcing a claim that a third-party obtained illegally and is using trade secrets is expensive and time consuming, and the outcome is unpredictable.

Moreover, our competitors may independently develop equivalent knowledge, methods and know-how.

Failure to obtain or maintain trade secret protection could adversely affect our competitive business position.

If we do not obtain protection under the Hatch-Waxman Act and similar legislation outside of the United States by extending the patent terms and obtaining data exclusivity for our product candidate, our business may be materially harmed.

Depending upon the timing, duration and specifics of FDA marketing approval of our product candidate, if any, one or more of our United States patents may be eligible for limited patent term extension under the Drug Price Competition and Patent Term Restoration Act of 1984, referred to as the Hatch-Waxman Act.

The Hatch-Waxman Act permits a patent term extension of up to five years as compensation for patent term lost during product development and the FDA regulatory review process.

However, we may not be granted an extension because, for example, of failing to apply within applicable deadlines, failing to apply prior to expiration of relevant patents or otherwise failing to satisfy applicable requirements.

Moreover, the applicable time period or the scope of patent protection afforded could be less than we request.

If we are unable to obtain patent term extension or the term of any such extension is less than what we request, the period during which we will have the right to exclusively market our product will be shortened and our competitors may obtain approval of competing products following our patent expiration, and our revenue could be reduced, possibly materially.

We may be subject to damages resulting from claims that our employees or we have wrongfully used or disclosed alleged trade secrets of former employers.

Many of our employees were previously employed at universities or other biotechnology or pharmaceutical companies, including our competitors or potential competitors.

Although no claims against us are currently pending, we may be subject to claims that these employees or we have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of their former employers.

Litigation may be necessary to defend against these claims.

If we fail in defending such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel.

A loss of key research personnel or their work product could hamper or prevent our ability to commercialize certain potential drugs, which could severely harm our business.

Even if we are successful in defending against these claims, litigation could result in substantial costs and be a distraction to management.

Confidentiality agreements with employees and others may not adequately prevent disclosure of our trade secrets and other proprietary information and may not adequately protect our intellectual property, which could limit our ability to compete.

Because we operate in the highly technical field of drug discovery and development of small molecule drugs, we rely in part on trade secret protection in order to protect our proprietary technology and processes.

However, trade secrets are difficult to protect.

We enter into confidentiality and intellectual property assignment agreements with our corporate partners, employees, consultants, outside scientific collaborators, sponsored researchers, and other advisors.

These agreements generally require that the other party keep confidential and not disclose to third parties all confidential information developed by the party or made known to the party by us during the course of the party’s relationship with us.

These agreements also generally provide that inventions conceived by the party in the course of rendering services to us will be our exclusive property.

However, these agreements may not be honored and may not effectively assign intellectual property rights to us.

Enforcing a claim that a party illegally obtained and is using our trade secrets is difficult, expensive and time consuming, and the outcome is unpredictable.

In addition, courts outside the United States may be less willing to protect trade secrets.

The failure to obtain or maintain trade secret protection could adversely affect our competitive position.

Intellectual property rights of third parties may increase our costs or delay or prevent us from being able to commercialize our drug candidates.

There is a risk that we are infringing or will infringe on the proprietary rights of third parties because patents and pending applications belonging to third parties exist in the United States, the European Union and elsewhere in the world in the areas of our research.

Others might have been the first to make the inventions covered by each of our or our licensors’ pending patent applications and issued patents and might have been the first to file patent applications for these inventions.

We are aware of several published patent applications, and understand that others may exist, that could support claims that, if granted and held valid, could cover various aspects of our developmental programs, including in

some cases particular uses of our drug candidate, plogo, or substances, processes and techniques that we use in the course of our research and development and manufacturing processes.

We are aware that other patents exist that claim substances, processes, techniques and methods of use, which, if held valid, could potentially restrict the scope of our research, development or manufacturing operations.

In addition, we understand that other applications and patents exist relating to potential uses of plogo that are not part of our current clinical programs for these compounds.

Numerous third-party United States and foreign issued patents and pending applications exist in the area of kinases, including PLK for which we have a research program.

For example, some pending patent applications contain broad claims that could represent freedom to operate limitations for some of our kinase programs should they be issued unchanged.

Although we intend to continue to monitor these applications, we cannot predict what claims will ultimately be allowed and if allowed what their scope would be.

In addition, because the patent application process can take several years to complete, there may be currently pending applications, unknown to us, which may later result in issued patents that cover the production, manufacture, commercialization or use of our drug candidates.

If we wish to use the technology or compound claimed in issued and unexpired patents owned by others, we will need to obtain a license from the owner, enter into litigation to challenge the validity of the patents or incur the risk of litigation in the event that the owner asserts that we infringe its patents.

In one case we have opposed a European patent relating to human aurora kinase and the patent was finally revoked (with no appeal filed).

There has been substantial litigation and other proceedings regarding patent and other intellectual property rights in the pharmaceutical and biotechnology industries.

Defending against third party claims, including litigation in particular, would be costly and time-consuming and would divert management’s attention from our business, which could lead to delays in our development or commercialization efforts.

If third parties are successful in their claims, we might have to pay substantial damages or take other actions that are adverse to our business.

As a result of intellectual property infringement claims, or to avoid potential claims, we might:

● be prohibited from selling or licensing any product that we may develop unless the patent holder licenses the patent to us, which it is not required to do;

● be required to pay substantial royalties or grant a cross license to our patents to another patent holder;

decide to locate some of our research, development or manufacturing operations outside of Europe or the United States;

● be required to pay substantial damages for past infringement, which we may have to pay if a court determines that our product candidate or technologies infringe a competitor’s patent or other proprietary rights;

● be required to redesign the manufacturing process or formulation of a drug candidate so it does not infringe, which may not be possible or could require substantial funds and time.

We may incur substantial costs as a result of litigation or other proceedings relating to patent and other intellectual property rights.

If we choose to go to court to stop another party from using the inventions claimed in any patents we obtain, that individual or company has the right to ask the court to rule that such patents are invalid or should not be enforced against that third party.

These lawsuits are expensive and would consume time and resources and divert the attention of managerial and scientific personnel even if we were successful in stopping the infringement of such patents.

In addition, there is a risk that the court will decide that such patents are not valid and that we do not have the right to stop the other party from using the inventions.

There is also a risk that, even if the validity of such patents is upheld, the court will refuse to stop the other party on the ground that such other party’s activities do not infringe our rights to such patents.

In addition, the United States Supreme Court has recently modified some tests used by the United States Patent and Trademark Office (“ USPTO”), in granting patents over the past 20 years, which may decrease the likelihood that we will be able to obtain patents and increase the likelihood of challenge of any patents we obtain or license.

Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.

Periodic maintenance fees, renewal fees, annuity fees and various other governmental fees on patents and/or applications will be due to be paid to the USPTO and various governmental patent agencies outside of the United States in several stages over the lifetime of the patents and/or applications.

We have systems in place to remind us to pay these fees, and we employ an outside firm and rely on our outside counsel to pay these fees.

The USPTO and various non-United States governmental patent agencies require compliance with a number of procedural, documentary, fee payment and other similar provisions during the patent application process.

We employ reputable law firms and other professionals to help us comply, and in many cases, an inadvertent lapse can be cured by payment of a late fee or by other means in accordance with the applicable rules.

However, there are situations in which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction.

In such an event, our competitors might be able to enter the market and this circumstance would have a material adverse effect on our business.

The patent applications of pharmaceutical and biotechnology companies involve highly complex legal and factual questions, which, if determined adversely to us, could negatively impact our patent position.

The patent positions of pharmaceutical and biotechnology companies can be highly uncertain and involve complex legal and factual questions.

Patent and Trademark Office’s, or USPTO’s, standards are uncertain and could change in the future.

Consequently, the issuance and scope of patents cannot be predicted with certainty.

Patents, if issued, may be challenged, invalidated or circumvented.

patents and patent applications may also be subject to interference proceedings, and U.S.

patents may be subject to Inter Partes Review (IPR), Post Grant Review (PGR) or reexamination proceedings in the USPTO (and foreign patents may be subject to opposition or comparable proceedings in the corresponding foreign patent office), which proceedings could result in either loss of the patent or denial of the patent application or loss or reduction in the scope of one or more of the claims of the patent or patent application.

Similarly, opposition or invalidity proceedings could result in loss of rights or reduction in the scope of one or more claims of a patent in foreign jurisdictions.

In addition, such interference, reexamination and opposition proceedings may be costly.

Accordingly, rights under any issued patents may not provide us with sufficient protection against competitive products or processes.

If we fail to obtain and maintain patent protection and trade secret protection of Plogo or any of our future product candidates, proprietary technologies and their uses, we could lose our competitive advantage and competition we face would increase, reducing our potential revenues and adversely affecting our ability to attain or maintain profitability.

Risks Related to Securities Regulations and Investment in Our Securities

Failure to achieve and maintain internal controls in accordance with Sections 302 and 404 of the Sarbanes-Oxley Act of 2002 could have a material adverse effect on our business and stock price.

Section 404 of the Sarbanes-Oxley Act of 2002 requires that we maintain internal control over financial reporting that meets applicable standards.

and inadequate monitoring of our controls

over the first three risks.

utilize information technology, or IT, systems and networks to process, transmit and store electronic information in connection with

our business activities.

The secure processing, storage, maintenance, and transmission of this critical information is vital to our operations

and business strategy, and we devote significant resources to protecting such information.

As use of digital technologies has increased,

cyber incidents, including deliberate attacks and attempts to gain unauthorized access to computer systems and networks, have increased

in frequency and sophistication.

These threats pose a risk to the security of our systems and networks and the confidentiality, availability

and integrity of our data.

There can be no assurance that we will be successful in preventing cybersecurity incidents or successfully

mitigating their effects.

the implementation of security measures, our internal and cloud-based computer systems and those of our contractors and consultants are

vulnerable to damage from such cybersecurity incidents, including computer viruses, social engineering, unauthorized access, natural

disasters, terrorism, war and telecommunication and electrical failures.

Such an event could adversely impact our business and operations,

and could result in financial, legal, operational or reputational harm to us, loss of competitive advantage or loss of consumer confidence.

Related to Securities Regulations and Investment in Our Securities

to achieve and maintain internal controls in accordance with Sections 302 and 404 of the Sarbanes-Oxley Act of 2002 could have a material

adverse effect on our business and stock price.

404 of the Sarbanes-Oxley Act of 2002 requires that we maintain internal control over financial reporting that meets applicable standards.

As with many smaller companies with small staff, material weaknesses in our financial controls and procedures may be discovered.

If we fail to maintain our internal controls or fail to implement required new or improved controls, as such control standards are modified, supplemented or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal controls over financial reporting.

Effective internal controls are necessary for us to produce reliable financial reports and are important in the prevention of financial fraud.

If we cannot produce reliable financial reports or prevent fraud, our business and operating results could be harmed.

We incur increased costs and management resources as a result of being a public company, and we may fail to comply with public company obligations.

As a public company, we face and will continue to face increased legal, accounting, administrative and other costs and expenses that we would not incur as a private company.

Compliance with the Sarbanes Oxley Act of 2002, as well as other rules of the SEC, the Public Company Accounting Oversight Board and Nasdaq resulted in a significant initial cost to us as well as an ongoing compliance cost.

As a public company, we are subject to Section 404 of the Sarbanes Oxley Act relating to internal control over financial reporting.

We have completed a formal process to evaluate our internal controls for purposes of Section 404, and we concluded that as of December 31, 2024, our internal control over financial reporting was effective.

As our business grows and changes, there can be no assurances that we can maintain the effectiveness of our internal controls over financial reporting.

In addition, our independent certified public accounting firm has not provided an opinion on the effectiveness of our internal controls over financial reporting for the year ended December 31, 2024 because we are a smaller reporting company.

In the event our independent auditor is required to provide an opinion on such controls in the future, there is a risk that the auditor would conclude that such controls are ineffective.

Effective internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud.

If we cannot provide reliable financial reports or prevent fraud, our operating results could be harmed.

fail to maintain our internal controls or fail to implement required new or improved controls, as such control standards are modified,

supplemented or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal controls

over financial reporting.

Effective internal controls are necessary for us to produce reliable financial reports and are important in

the prevention of financial fraud.

If we cannot produce reliable financial reports or prevent fraud, our business and operating results

could be harmed.

incur increased costs and management resources as a result of being a public company, and we may fail to comply with public company obligations.

a public company, we face and will continue to face increased legal, accounting, administrative and other costs and expenses that we

would not incur as a private company.

Compliance with the Sarbanes Oxley Act of 2002, as well as other rules of the SEC, the Public Company

Accounting Oversight Board and Nasdaq resulted in a significant initial cost to us as well as an ongoing compliance cost.

company, we are subject to Section 404 of the Sarbanes Oxley Act relating to internal control over financial reporting.

We have completed

a formal process to evaluate our internal controls for purposes of Section 404, and we concluded that as of December 31, 2025, our internal

control over financial reporting was effective.

As our business grows and changes, there can be no assurances that we can maintain the

effectiveness of our internal controls over financial reporting.

In addition, our independent certified public accounting firm has not

provided an opinion on the effectiveness of our internal controls over financial reporting for the year ended December 31, 2025 because

we are a smaller reporting company.

In the event our independent auditor is required to provide an opinion on such controls in the future,

there is a risk that the auditor would conclude that such controls are ineffective.

internal controls over financial reporting are necessary for us to provide reliable financial reports and, together with adequate disclosure

controls and procedures, are designed to prevent fraud.

If we cannot provide reliable financial reports or prevent fraud, our operating

results could be harmed.

We have completed a formal process to evaluate our internal control over financial reporting.

However, guidance from regulatory authorities in the area of internal controls continues to evolve and substantial uncertainty exists regarding our on-going ability to comply by applicable deadlines.

Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations.

Ineffective internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

An active trading market for our common stock has not developed and it may have a volatile public trading price, thus, purchasers of our common stock could incur substantial losses.

An active public market for our common stock has not developed.

Our stock can trade in small volumes, which may make the price of our stock highly volatile.

However, guidance

from regulatory authorities in the area of internal controls continues to evolve and substantial uncertainty exists regarding our on-going

ability to comply by applicable deadlines.

Any failure to implement required new or improved controls, or difficulties encountered in

their implementation, could harm our operating results or cause us to fail to meet our reporting obligations.

Ineffective internal controls

could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading

price of our common stock.

active trading market for our common stock has not developed and it may have a volatile public trading price, thus, purchasers of our

common stock could incur substantial losses.

active public market for our common stock has not developed.

Our stock can trade in small volumes, which may make the price of our stock

highly volatile.

The last reported price of our stock may not represent the price at which you would be able to buy or sell the stock.

The market prices for securities of companies comparable to us have been highly volatile.

Often, these stocks have experienced significant price and volume fluctuations for reasons that are both related and unrelated to the operating performance of the individual companies.

In addition, the stock market as a whole and biotechnology and other life science stocks in particular have experienced significant recent volatility.

Like our common stock, these stocks have experienced significant price and volume fluctuations for reasons unrelated to the operating performance of the individual companies.

Factors giving rise to this volatility may include:

● disclosure of actual or potential clinical results with respect to the product candidate we are developing;

● regulatory developments in both the United States and abroad;

● developments concerning proprietary rights, including patents and litigation matters;

● public concern about the safety or efficacy of our product candidate or technology, or related technology, or new technologies generally;

● concern about the safety or efficacy of our product candidate or technology, or related technology, or new technologies generally;

● public announcements by our competitors or others;

● general market conditions and comments by securities analysts and investors.

Fluctuations in our operating losses could adversely affect the price of our common stock.

Our operating losses may fluctuate significantly on a quarterly basis.

Some of the factors that may cause our operating losses to fluctuate on a period-to-period basis include the status of our preclinical and clinical development programs, level of expenses incurred in connection with our preclinical and clinical development programs, implementation or termination of collaboration, licensing, manufacturing or other material agreements with third parties, non-recurring revenue or expenses under any such agreement, and compliance with regulatory requirements.

Period-to-period comparisons of our historical and future financial results may not be meaningful, and investors should not rely on them as an indication of future performance.

Our fluctuating losses may fail to meet the expectations of securities analysts or investors.

Our failure to meet these expectations may cause the price of our common stock to decline.

If securities or industry analysts do not publish research or reports about us, if they change their recommendations regarding our stock adversely or if our operating results do not meet their expectations, our stock price and trading volume could decline.

The trading market for our common stock is influenced by the research and reports that industry or securities analysts publish about us.

If analysts do not publish research reports or one or more of these analysts who were publishing research cease coverage of us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our stock price or trading volume to decline.

Moreover, if one or more of the analysts who cover us downgrade our stock or if our operating results do not meet their expectations, our stock price could decline.

We may not be able to facilitate our growth strategy by identifying or completing transactions with attractive acquisition candidates, which could limit our revenues and profitability.

Future acquisitions may result in significant transaction expenses and may involve significant costs.

We may experience integration and consolidation risks associated with future acquisitions.

An element of our growth strategy is to selectively pursue, on an opportunistic basis, acquisitions of businesses or assets of businesses that complement our existing business and footprint.

We may also consider other potential strategic transactions, including dispositions, which are also subject to claims by third parties and by the buyers under the terms of our disposition agreements.

Often, these stocks have experienced significant

price and volume fluctuations for reasons that are both related and unrelated to the operating performance of the individual companies.

In addition, the stock market as a whole have experienced significant recent volatility.

Like our common stock, these stocks have experienced

significant price and volume fluctuations for reasons unrelated to the operating performance of the individual companies.

market for the Company’s common stock does not develop or is not sustained, it may be difficult for stockholders to sell their

shares at an attractive price or at all.

securities or industry analysts do not publish research or reports about us, if they change their recommendations regarding our stock

adversely or if our operating results do not meet their expectations, our stock price and trading volume could decline.

trading market for our common stock is influenced by the research and reports that industry or securities analysts publish about us.

If analysts do not publish research reports or one or more of these analysts who were publishing research cease coverage of us or fail

to regularly publish reports on us, we could lose visibility in the financial markets, which in turn could cause our stock price or trading

volume to decline.

Moreover, if one or more of the analysts who cover us downgrade our stock or if our operating results do not meet

their expectations, our stock price could decline.

may not be able to facilitate our growth strategy by identifying or completing transactions with attractive acquisition candidates, which

could limit our revenues and profitability.

element of our growth strategy is to selectively pursue, on an opportunistic basis, acquisitions of businesses or assets of businesses

that complement our existing business and footprint.

We may also consider other potential strategic transactions, including dispositions,

which are also subject to claims by third parties and by the buyers under the terms of our disposition agreements.

Future acquisitions

may result in significant transaction expenses and may involve significant costs.

We may experience integration and consolidation risks

associated with future acquisitions.

We have no current agreement for any acquisition of a business or assets.

The success of this element of our growth strategy depends, in part, on selecting strategic acquisition candidates at attractive prices and effectively integrating their businesses into our own, including with respect to financial reporting and regulatory matters.

We cannot assure you that we will be able to identify attractive acquisition candidates or complete the acquisition of any identified candidates at favorable prices and upon advantageous terms and conditions, including financing alternatives.

We expect to face competition for acquisition candidates, which may limit the number of acquisition opportunities and lead to higher acquisition costs.

We may not have the financial resources necessary to consummate any acquisitions or the ability to obtain the necessary funds on satisfactory terms.

Any acquisitions in the future may result in significant transaction expenses and risks associated with entering new markets and dilution for our existing stockholders.

We may also be subject to claims by third parties related to the operations of these businesses prior to our acquisition and by sellers under the terms of our acquisition agreements.

Anti-takeover provisions in our charter documents and provisions of Delaware law may make an acquisition more difficult and could result in the entrenchment of management.

We are incorporated in Delaware.

Anti-takeover provisions of Delaware law and our amended and restated certificate of incorporation and amended and restated bylaws may make a change in control or efforts to remove management more difficult.

Also, under Delaware law, our Board of Directors may adopt additional anti-takeover measures.

We have the authority to issue up to 5 million shares of preferred stock and to determine the terms of those shares of stock without any further action by our stockholders.

If the Board of Directors exercises this power to issue preferred stock, it could be more difficult for a third party to acquire a majority of our outstanding voting stock and vote the stock they acquire to remove management or directors.

Our amended and restated certificate of incorporation and amended

and restated bylaws also provides staggered terms for the members of our Board of Directors.

Under Section 141 of the Delaware General Corporation Law, our directors may be removed by stockholders only for cause and only by vote of the holders of a majority of voting shares then outstanding.

These provisions may prevent stockholders from replacing the entire board in a single proxy contest, making it more difficult for a third party to acquire control of us without the consent of our Board of Directors.

These provisions could also delay the removal of management by the Board of Directors with or without cause.

In addition, our directors may only be removed for cause and amended and restated bylaws limit the ability of our stockholders to call special meetings of stockholders.

As at December 31, 2024, we had 135,273 shares of 6% Convertible Exchangeable Preferred Stock and 264 shares of Series A Preferred Stock issued and outstanding.

Under Section 203 of the Delaware General Corporation Law, a corporation may not engage in a business combination with any holder of 15% or more of its capital stock until the holder has held the stock for three years unless, among other possibilities, the Board of Directors approves the transaction.

The success of this element

of our growth strategy depends, in part, on selecting strategic acquisition candidates at attractive prices and effectively integrating

their businesses into our own, including with respect to financial reporting and regulatory matters.

We cannot assure you that we will

be able to identify attractive acquisition candidates or complete the acquisition of any identified candidates at favorable prices and

upon advantageous terms and conditions, including financing alternatives.

expect to face competition for acquisition candidates, which may limit the number of acquisition opportunities and lead to higher acquisition

We may not have the financial resources necessary to consummate any acquisitions or the ability to obtain the necessary funds

on satisfactory terms.

Any acquisitions in the future may result in significant transaction expenses and risks associated with entering

new markets and dilution for our existing stockholders.

We may also be subject to claims by third parties related to the operations of

these businesses prior to our acquisition and by sellers under the terms of our acquisition agreements.

we acquire may have undisclosed liabilities.

pursuing any future acquisition strategy, our due diligence investigations of the acquisition candidates may fail to discover certain

undisclosed liabilities of the acquisition candidates.

If we acquire a company having undisclosed liabilities such as environmental,

remediation or contractual, as a successor owner we may be responsible for such undisclosed liabilities.

We expect to try to minimize

our exposure to such liabilities by conducting due diligence, by obtaining indemnification from each of the sellers of the acquired companies,

by deferring payment of a portion of the purchase price as security for the indemnification and by acquiring only specified assets.

we cannot assure you that we will be able to obtain indemnification or that any indemnification obtained will be enforceable, collectible

or sufficient in amount, scope or duration to fully offset any undisclosed liabilities arising from our acquisitions.

Anti-takeover

provisions in our charter documents and provisions of Delaware law may make an acquisition more difficult and could result in the entrenchment

of management.

are incorporated in Delaware.

Anti-takeover provisions of Delaware law and our amended and restated certificate of incorporation and

amended and restated bylaws may make a change in control or efforts to remove management more difficult.

Also, under Delaware law, our

Board of Directors may adopt additional anti-takeover measures.

have the authority to issue up to 5 million shares of preferred stock and to determine the terms of those shares of stock without any

further action by our stockholders.

If the Board of Directors exercises this power to issue preferred stock, it could be more difficult

for a third party to acquire a majority of our outstanding voting stock and vote the stock they acquire to remove management or directors.

Our amended and restated certificate of incorporation and amended and restated bylaws also provides staggered terms for the members of

our Board of Directors.

Under Section 141 of the Delaware General Corporation Law, our directors may be removed by stockholders only

for cause and only by vote of the holders of a majority of voting shares then outstanding.

These provisions may prevent stockholders

from replacing the entire board in a single proxy contest, making it more difficult for a third party to acquire control of us without

the consent of our Board of Directors.

These provisions could also delay the removal of management by the Board of Directors with or

without cause.

In addition, our directors may only be removed for cause and amended and restated bylaws limit the ability of our stockholders

to call special meetings of stockholders.

at December 31, 2025, we had 135,273 shares of 6% Convertible Exchangeable Preferred Stock and 264 shares of Series A Preferred Stock

issued and outstanding.

Section 203 of the Delaware General Corporation Law, a corporation may not engage in a business combination with any holder of 15% or

more of its capital stock until the holder has held the stock for three years unless, among other possibilities, the Board of Directors

approves a transaction.

Our Board of Directors could use this provision to prevent changes in management.

The existence of the foregoing provisions could limit the price that investors might be willing to pay in the future for shares of our common stock.

In the event of an acquisition of our common stock, we cannot assure our common stockholders that we will be able to negotiate terms that would provide for a price equivalent to, or more favorable than, the price at which our shares of common stock may be trading at such time.

We may not effect a consolidation or merger with another entity without the vote or consent of the holders of at least a majority of the shares of our preferred stock (in addition to the approval of our common stockholders), unless the preferred stock that remains outstanding and its rights, privileges and preferences are unaffected or are converted into or exchanged for preferred stock of the surviving entity having rights, preferences and limitations substantially similar, but no less favorable, to our convertible preferred stock.

In addition, in the event a third party seeks to acquire our company or acquire control of our company by way of a merger, but the terms of such offer do not provide for our preferred stock to remain outstanding or be converted into or exchanged for preferred stock of the surviving entity having rights, preferences and limitations substantially similar, but no less favorable, to our preferred stock, the terms of the Certificate of Designations of our preferred stock provide for an adjustment to the conversion ratio of our preferred stock such that, depending on the terms of any such transaction, preferred stockholders may be entitled, by their terms, to receive up to $10.00 per share in common stock, causing our common stockholders not to receive as favorable a price as the price at which such shares may be trading at the time of any such transaction.

As of December 31, 2024, there were 135,273 shares of our 6% Convertible Exchangeable Preferred Stock issued and outstanding.

If the transaction were one in which proceeds were received by us for distribution to stockholders, and the terms of the Certificate of Designations governing the preferred stock were strictly complied with, approximately $1.7 million would be paid to the preferred holders before any distribution to the common stockholders, although the form of transaction could affect how the holders of preferred stock are treated.

In such an event, although such a transaction would be subject to the approval of our holders of common stock, we cannot assure our common stockholders that we will be able to negotiate terms that would provide for a price equivalent to, or more favorable than, the price at which our shares of common stock may be trading at such time.

Thus, the terms of our preferred stock might hamper a third party’s acquisition of our company.

Our certificate of incorporation and bylaws and certain provisions of Delaware law may delay or prevent a change in our management and make it more difficult for a third-party to acquire us.

Our amended and restated certificate of incorporation and bylaws contain provisions that could delay or prevent a change in our Board of Directors and management teams.

The existence of the foregoing

provisions could limit the price that investors might be willing to pay in the future for shares of our common stock.

the event of an acquisition of our common stock, we cannot assure our common stockholders that we will be able to negotiate terms that

would provide for a price equivalent to, or more favorable than, the price at which our shares of common stock may be trading at such

may not effect a consolidation or merger with another entity without the vote or consent of the holders of at least a majority of the

shares of our preferred stock (in addition to the approval of our common stockholders), unless the preferred stock that remains outstanding

and its rights, privileges and preferences are unaffected or are converted into or exchanged for preferred stock of the surviving entity

having rights, preferences and limitations substantially similar, but no less favorable, to our convertible preferred stock.

addition, in the event a third party seeks to acquire our company or acquire control of our company by way of a merger, but the terms

of such offer do not provide for our preferred stock to remain outstanding or be converted into or exchanged for preferred stock of the

surviving entity having rights, preferences and limitations substantially similar, but no less favorable, to our preferred stock, the

terms of the Certificate of Designations of our preferred stock provide for an adjustment to the conversion ratio of our preferred stock

such that, depending on the terms of any such transaction, preferred stockholders may be entitled, by their terms, to receive up to $10.00

per share in common stock, causing our common stockholders not to receive as favorable a price as the price at which such shares may

be trading at the time of any such transaction.

of December 31, 2025, there were 135,273 shares of our 6% Convertible Exchangeable Preferred Stock issued and outstanding.

If the transaction

were one in which proceeds were received by us for distribution to stockholders, and the terms of the Certificate of Designations governing

the preferred stock were strictly complied with, approximately $1.7 million would be paid to the preferred holders before any distribution

to the common stockholders, although the form of transaction could affect how the holders of preferred stock are treated.

event, although such a transaction would be subject to the approval of our holders of common stock, we cannot assure our common stockholders

that we will be able to negotiate terms that would provide for a price equivalent to, or more favorable than, the price at which our

shares of common stock may be trading at such time.

Thus, the terms of our preferred stock might hamper a third party’s acquisition

of our company.

market price of the Company’s common stock is expected to be volatile, and the market price of its common stock may drop.

market price of our common stock could be subject to significant fluctuations.

Market prices for securities of early-stage pharmaceutical,

biotechnology and other life sciences companies have historically been particularly volatile.

Some of the factors that may cause the

market price of the Company’s common stock to fluctuate include:

on the progress of the Company’s sales of the fire safety products and services and their growth or the lack thereof;

to maintain its existing customers;

by the Company to prosecute, maintain, or enforce its intellectual property rights;

in laws or regulations applicable to its products and services;

inability to obtain adequate supply of its products and services or the inability to do so at acceptable prices;

regulatory authority decisions;

of new products, services, or technologies by its competitors;

to meet or exceed financial and development projections that the Company may provide to the public;

to meet or exceed the financial and development projections of the investment community;

perception of the Company’s products and services among the fire safety industry and green energy industry by the public, legislatures,

regulators and the investment community;

announcements

of significant acquisitions, strategic collaborations, joint ventures, or capital commitments by the Company or its competitors;

or other developments relating to proprietary rights, including intellectual property, litigation matters, and its ability to obtain

protection for its technologies;

or departures of key personnel;

lawsuits, including patent or stockholder litigation;

securities or industry analysts do not publish research or reports about its business, or if they issue adverse or misleading opinions

regarding its business and stock;

in the market valuations of similar companies;

market or macroeconomic conditions;

of common stock by the Company or its stockholders in the future;

volume of our common stock;

introduction of technological innovations or new therapies that compete with potential products of the Company;

period-to-period

fluctuations in the Company’s financial results.

the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual

These broad market fluctuations may also adversely affect the trading price of the Company’s common stock.

following periods of volatility in the market price of a company’s securities, stockholders have often instituted class action

securities litigation against those companies.

Such litigation, if instituted, could result in substantial costs and diversion of management

attention and resources, which could significantly harm the Company’s profitability and reputation.

Additionally,

a decrease in the stock price of the Company may cause the Company’s common stock to no longer satisfy the continued listing standards

of The Nasdaq Capital Market.

If the Company is not able to maintain the requirements for listing on The Nasdaq Capital Market, it could

be delisted, which could have a materially adverse effect on its ability to raise additional funds as well as the price and liquidity

of its common stock.

Company will incur costs and demands upon management as a result of complying with the laws and regulations affecting public companies.

Company will incur significant legal, accounting and other expenses including costs associated with being a Nasdaq-listed public company

and the corresponding reporting and compliance requirements by Nasdaq, the Securities and Exchange Commission and other federal regulators

in the United States.

In addition, the Company will also incur costs associated with corporate governance requirements, including requirements

under the Sarbanes-Oxley Act, as well as new rules implemented by the SEC and Nasdaq.

These rules and regulations may also make it difficult

and expensive for the Company to obtain directors’ and officers’ liability insurance.

As a result, it may be more difficult

for the Company to attract and retain qualified individuals to serve on its board of directors or as executive officers of the Company,

which may adversely affect investor confidence in the Company and could cause the Company’s business or stock price to suffer.

Company may experience adverse consequences because of required indemnification of officers and directors.

of our amended and restated certificate of incorporation and bylaws provide that it will indemnify any director and officer as to liabilities

incurred in their capacity as a director or officer and on those terms and conditions set forth therein to the fullest extent of Delaware

Further, the Company may purchase and maintain insurance on behalf of any such persons whether or not the Company would have the

power to indemnify such person against the liability insured against.

The foregoing could result in substantial expenditures by the Company

and prevent any recovery from its officers, directors, agents and employees for losses incurred by the Company as a result of their actions.

certificate of incorporation and bylaws and certain provisions of Delaware law may delay or prevent a change in our management and make

it more difficult for a third-party to acquire us.

amended and restated certificate of incorporation and bylaws contain provisions that could delay or prevent a change in our Board of

Directors and management teams.

Some of these provisions:

● authorize the issuance of preferred stock that can be created and issued by the Board of Directors without prior stockholder approval, commonly referred to as “blank check” preferred stock, with rights senior to those of our

common stock;

● provide for the Board of Directors to be divided into three classes;

● require that stockholder actions must be effected at a duly called stockholder meeting and prohibit stockholder action by written consent.

In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which limits the ability of large stockholders to complete a business combination with, or acquisition of, us.

These provisions may prevent a business combination or acquisition that would be attractive to stockholders and could limit the price that investors would be willing to pay in the future for our stock.

These provisions also make it more difficult for our stockholders to replace members of our Board of Directors.

Because our Board of Directors is responsible for appointing the members of our management team, these provisions could in turn affect any attempt to replace our current management team.

Additionally, these provisions may prevent an acquisition that would be attractive to stockholders and could limit the price that investors would be willing to pay in the future for our common stock.

We may have limited ability to pay cash dividends on our preferred stock, and there is no assurance that future quarterly dividends will be declared.

Delaware law may limit our ability to pay cash dividends on our preferred stock.

Under Delaware law, cash dividends on our preferred stock may only be paid from surplus or, if there is no surplus, from the corporation’s net profits for the current or preceding fiscal year.

Delaware law defines “surplus” as the amount by which the total assets of a corporation, after subtracting its total liabilities, exceed the corporation’s capital, as determined by its board of directors.

Since we are not profitable, our ability to pay cash dividends will require the availability of an adequate surplus.

Even if adequate surplus is available to pay cash dividends on our preferred stock, we may not have sufficient cash to pay dividends on the preferred stock or we may choose not to declare the dividends.

Our common and preferred stock may experience extreme price and volume fluctuations, which could lead to costly securities-related litigation, including securities class action litigation or securities-related investigations, which could make an investment in us less appealing.

You should consider an investment in our common stock and preferred stock to be risky, and you should invest in our common stock and preferred stock only if you can withstand a significant loss and wide fluctuations in the market value of your investment.

Some factors that may cause the market price of our common stock to fluctuate, in addition to the other risks mentioned in this “Risk Factors” section and elsewhere in this Annual Report on Form 10-K, are:

● announcements of technological innovations or new products or services by us or our competitors;

announcements concerning our competitors or the biotechnology industry in general;

● new regulatory pronouncements and changes in regulatory guidelines;

● general and industry-specific economic conditions;

● additions to or departures of our key personnel;

● sale of our common stock or preferred stock by our stockholders, executives and directors;

● volatility and limitations in trading volumes of our shares;

● our ability to obtain financings to conduct and complete research and development activities including, but not limited to, our clinical trials, and other business activities;

● analyst research reports, recommendation and changes in recommendations, price targets, and withdrawals of coverage;

● our ability to secure resources and the necessary personnel to conduct clinical trials on our desired schedule;

● any delay in our submission for studies or product approvals or adverse regulatory decisions, including failure to receive regulatory approval for our product candidate;

● announcements and events surrounding financing efforts, including debt and equity securities;

● announcements of acquisitions, partnerships, collaborations, joint ventures, new products, capital commitments, or other events by us or our competitors;

● disputes and litigations related to intellectual properties, proprietary rights, and contractual obligations;

● changes in financial estimates or recommendations by securities analysts;

● variations in our quarterly results;

● announcements about our collaborators or licensors;

● changes in accounting principles or in applicable laws, rules, regulations;

● other events or factors, many of which may be out of our control.

The stock markets have from time-to-time experienced significant price and volume fluctuations that have affected the market prices for publicly traded securities.

The market prices of the securities of biotechnology companies, particularly companies like us without product revenues and earnings, have been highly volatile and are likely to remain highly volatile in the future.

the issuance of preferred stock that can be created and issued by the Board of Directors without prior stockholder approval, commonly

referred to as “blank check” preferred stock, with rights senior to those of our common stock;

for the Board of Directors to be divided into three classes;

that stockholder actions must be effected at a duly called stockholder meeting and prohibit stockholder action by written consent.

addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation

Law, which limits the ability of large stockholders to complete a business combination with, or acquisition of, us.

These provisions

may prevent a business combination or acquisition that would be attractive to stockholders and could limit the price that investors would

be willing to pay in the future for our stock.

provisions also make it more difficult for our stockholders to replace members of our Board of Directors.

Because our Board of Directors

is responsible for appointing the members of our management team, these provisions could in turn affect any attempt to replace our current

management team.

Additionally, these provisions may prevent an acquisition that would be attractive to stockholders and could limit the

price that investors would be willing to pay in the future for our common stock.

may have limited ability to pay cash dividends on our preferred stock, and there is no assurance that future quarterly dividends will

law may limit our ability to pay cash dividends on our preferred stock.

Under Delaware law, cash dividends on our preferred stock may

only be paid from surplus or, if there is no surplus, from the corporation’s net profits for the current or preceding fiscal year.

Delaware law defines “surplus” as the amount by which the total assets of a corporation, after subtracting its total liabilities,

exceed the corporation’s capital, as determined by its board of directors.

we are not profitable, our ability to pay cash dividends will require the availability of an adequate surplus.

Even if adequate surplus

is available to pay cash dividends on our preferred stock, we may not have sufficient cash to pay dividends on the preferred stock or

we may choose not to declare the dividends.

common and preferred stock may experience extreme price and volume fluctuations, which could lead to costly securities-related litigation,

including securities class action litigation or securities-related investigations, which could make an investment in us less appealing.

should consider an investment in our common stock and preferred stock to be risky, and you should invest in our common stock and preferred

stock only if you can withstand a significant loss and wide fluctuations in the market value of your investment.

Some factors that may

cause the market price of our common stock to fluctuate, in addition to the other risks mentioned in this “Risk Factors”

section and elsewhere in this Annual Report on Form 10-K, are:

regulatory pronouncements and changes in regulatory guidelines;

and industry-specific economic conditions;

to or departures of our key personnel;

of our common stock or preferred stock by our stockholders, executives and directors;

and limitations in trading volumes of our shares;

research reports, recommendation and changes in recommendations, price targets, and withdrawals of coverage;

announcements

and events surrounding financing efforts, including debt and equity securities;

announcements

of acquisitions, partnerships, collaborations, joint ventures, new products, capital commitments, or other events by us or our competitors;

and litigations related to intellectual properties, proprietary rights, and contractual obligations;

in financial estimates or recommendations by securities analysts;

in our quarterly results;

announcements

about our collaborators or licensors;

in accounting principles or in applicable laws, rules, regulations;

events or factors, many of which may be out of our control.

stock markets have from time-to-time experienced significant price and volume fluctuations that have affected the market prices for publicly

traded securities.

This volatility has often been unrelated to the performance of particular companies.

In the past, companies that experience volatility in the market price of their securities have often faced securities class action and derivative litigation, and as a public company, we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities.

Moreover, market prices for stocks of biotechnology-related and technology companies frequently reach levels that bear no relationship to the performance of these companies.

These market prices generally are not sustainable and are highly volatile.

Whether or not meritorious, litigation brought against us could result in substantial costs, divert our management’s attention and resources and harm our financial condition and results of operations.

The future sale of our common and convertible preferred stock and future issuances of our common stock upon conversion of our preferred stock could negatively affect our stock price and cause dilution to existing holders of our common stock.

If our common or preferred stockholders sell substantial amounts of our stock in the public market, or the market perceives that such sales may occur, the market price of our common and preferred stock could fall.

If additional holders of convertible preferred stock elect to convert their shares to shares of common stock at renegotiated prices, such conversion as well as the sale of substantial amounts of our common stock, could cause dilution to existing holders of our common stock, thereby also negatively affecting the price of our common stock.

If we exchange the convertible preferred stock for debentures, the exchange will be taxable, but we will not provide any cash to pay any tax liability that any convertible preferred stockholder may incur.

An exchange of convertible preferred stock for debentures, as well as any dividend make-whole or interest make-whole payments paid in our common stock, will be taxable events for United States federal income tax purposes, which may result in tax liability for the holder of convertible preferred stock without any corresponding receipt of cash by the holder.

In addition, the debentures may be treated as having original issue discount, a portion of which would generally be required to be included in the holder’s gross income even though the cash to which such income is attributable would not be received until maturity or redemption of the debenture.

We will not distribute any cash to the holders of the securities to pay these potential tax liabilities.

If we automatically convert the convertible preferred stock, there is a substantial risk of fluctuation in the price of our common stock from the date we elect to automatically convert to the conversion date.

We may automatically convert the convertible preferred stock into common stock if the closing price of our common stock exceeds $888,300 per share.

There is a risk of fluctuation in the price of our common stock between the time when we may first elect to automatically convert the preferred and the automatic conversion date.

We do not intend to pay cash dividends on our common stock in the foreseeable future.

We do not anticipate paying cash dividends on our common stock in the foreseeable future.

Any payment of cash dividends will depend on our financial condition, results of operations, capital requirements, the outcome of the review of our strategic alternatives and other factors and will be at the discretion of our Board of Directors.

Accordingly, investors will have to rely on capital appreciation, if any, to earn a return on their investment in our common stock.

Furthermore, we may in the future become subject to contractual restrictions on, or prohibitions against, the payment of dividends.

The number of shares of common stock which are registered, including the shares to be issued upon exercise of our outstanding warrants, is significant in relation to our currently outstanding common stock and could cause downward pressure on the market price for our common stock.

The number of shares of common stock registered for resale, including those shares which are to be issued upon exercise of our outstanding warrants, is significant in relation to the number of shares of common stock currently outstanding.

If the security holder determines to sell a substantial number of shares into the market at any given time, there may not be sufficient demand in the market to purchase the shares without a decline in the market price for our common stock.

Moreover, continuous sales into the market of a number of shares in excess of the typical trading volume for our common stock, or even the availability of such a large number of shares, could depress the trading market for our common stock over an extended period of time.

If persons engage in short sales of our common stock, including sales of shares to be issued upon exercise of our outstanding warrants, the price of our common stock may decline.

Selling short is a technique used by a stockholder to take advantage of an anticipated decline in the price of a security.

In addition, holders of options and warrants will sometimes sell short knowing they can, in effect, cover through the exercise of an option or warrant, thus locking in a profit.

A significant number of short sales or a large volume of other sales within a relatively short period of time can create downward pressure on the market price of a security.

Further sales of common stock issued upon exercise of our outstanding warrants could cause even greater declines in the price of our common stock due to the number of additional shares available in the market upon such exercise, which could encourage short sales that could further undermine the value of our common stock.

You could, therefore, experience a decline in the value of your investment as a result of short sales of our common stock.

We are exposed to risks related to the marketable securities we may purchase.

We may invest cash that is not required to meet short-term obligations in short term marketable securities.

We may purchase securities in United States government, government-sponsored agencies and highly rated corporate and asset-backed securities subject to an approved investment policy.

In the past, companies that experience

volatility in the market price of their securities have often faced securities class action and derivative litigation, and as a public

company, we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities.

future sale of our common and convertible preferred stock and future issuances of our common stock upon conversion of our preferred stock

could negatively affect our stock price and cause dilution to existing holders of our common stock.

our common or preferred stockholders sell substantial amounts of our stock in the public market, or the market perceives that such sales

may occur, the market price of our common and preferred stock could fall.

If additional holders of convertible preferred stock elect

to convert their shares to shares of common stock at renegotiated prices, such conversion as well as the sale of substantial amounts

of our common stock, could cause dilution to existing holders of our common stock, thereby also negatively affecting the price of our

common stock.

we exchange the convertible preferred stock for debentures, the exchange will be taxable, but we will not provide any cash to pay any

tax liability that any convertible preferred stockholder may incur.

exchange of convertible preferred stock for debentures, as well as any dividend make-whole or interest make-whole payments paid in our

common stock, will be taxable events for United States federal income tax purposes, which may result in tax liability for the holder

of convertible preferred stock without any corresponding receipt of cash by the holder.

In addition, the debentures may be treated as

having original issue discount, a portion of which would generally be required to be included in the holder’s gross income even

though the cash to which such income is attributable would not be received until maturity or redemption of the debenture.

distribute any cash to the holders of the securities to pay these potential tax liabilities.

we automatically convert the convertible preferred stock, there is a substantial risk of fluctuation in the price of our common stock

from the date we elect to automatically convert to the conversion date.

may automatically convert the convertible preferred stock into common stock if the closing price of our common stock exceeds $213,192,000

There is a risk of fluctuation in the price of our common stock between the time when we may first elect to automatically

convert the preferred and the automatic conversion date.

do not intend to pay cash dividends on our common stock in the foreseeable future.

do not anticipate paying cash dividends on our common stock in the foreseeable future.

Any payment of cash dividends will depend on our

financial condition, results of operations, capital requirements, the outcome of the review of our strategic alternatives and other factors

and will be at the discretion of our Board of Directors.

Accordingly, investors will have to rely on capital appreciation, if any, to

earn a return on their investment in our common stock.

Furthermore, we may in the future become subject to contractual restrictions on,

or prohibitions against, the payment of dividends.

number of shares of common stock which are registered, including the shares to be issued upon exercise of our outstanding warrants, is

significant in relation to our currently outstanding common stock and could cause downward pressure on the market price for our common

number of shares of common stock registered for resale, including those shares which are to be issued upon exercise of our outstanding

warrants, is significant in relation to the number of shares of common stock currently outstanding.

If the security holder determines

to sell a substantial number of shares into the market at any given time, there may not be sufficient demand in the market to purchase

the shares without a decline in the market price for our common stock.

Moreover, continuous sales into the market of a number of shares

in excess of the typical trading volume for our common stock, or even the availability of such a large number of shares, could depress

the trading market for our common stock over an extended period of time.

persons engage in short sales of our common stock, including sales of shares to be issued upon exercise of our outstanding warrants,

the price of our common stock may decline.

short is a technique used by a stockholder to take advantage of an anticipated decline in the price of a security.

In addition, holders

of options and warrants will sometimes sell short knowing they can, in effect, cover through the exercise of an option or warrant, thus

locking in a profit.

A significant number of short sales or a large volume of other sales within a relatively short period of time can

create downward pressure on the market price of a security.

Further sales of common stock issued upon exercise of our outstanding warrants

could cause even greater declines in the price of our common stock due to the number of additional shares available in the market upon

such exercise, which could encourage short sales that could further undermine the value of our common stock.

You could, therefore, experience

a decline in the value of your investment as a result of short sales of our common stock.

are exposed to risks related to the marketable securities we may purchase.

may invest cash that is not required to meet short-term obligations in short term marketable securities.

We may purchase securities in

United States government, government-sponsored agencies and highly rated corporate and asset-backed securities subject to an approved

investment policy.

Historically, investment in these securities has been highly liquid and has experienced only very limited defaults.

However, recent volatility in the financial markets has created additional uncertainty regarding the liquidity and safety of these investments.

Although we believe our marketable securities investments are safe and highly liquid, we cannot guarantee that our investment portfolio will not be negatively impacted by recent or future market volatility or credit restrictions.

Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful stockholder claims against us and may reduce the amount of money available to us.

As permitted by Section 102(b)(7) of the Delaware General Corporation Law, our restated certificate of incorporation limits the liability of our directors to the fullest extent permitted by law.

In addition, as permitted by Section 145 of the Delaware General Corporation Law, our restated certificate of incorporation and restated bylaws provide that we shall indemnify, to the fullest extent authorized by the Delaware General Corporation Law, each person who is involved in any litigation or other proceeding because such person is or was a director or officer of our company or is or was serving as an officer or director of another entity at our request, against all expense, loss or liability reasonably incurred or suffered in connection therewith.

Our restated certificate of incorporation provides that the right to indemnification includes the right to be paid expenses incurred in defending any proceeding in advance of its final disposition, provided, however, that such advance payment will only be made upon delivery to us of an undertaking, by or on behalf of the director or officer, to repay all amounts so advanced if it is ultimately determined that such director is not entitled to indemnification.

If we do not pay a proper claim for indemnification in full within 60 days after we receive a written claim for such indemnification, except in the case of a claim for an advancement of expenses, in which case such period is 20 days, our restated certificate of incorporation and our restated bylaws authorize the claimant to bring an action against us and prescribe what constitutes a defense to such action.

Section 145 of the Delaware General Corporation Law permits a corporation to indemnify any director or officer of the corporation against expenses (including attorney’s fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with any action, suit or proceeding brought by reason of the fact that such person is or was a director or officer of the corporation, if such person acted in good faith and in a manner that he reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, if he or she had no reason to believe his or her conduct was unlawful.

In a derivative action, (i.e., one brought by or on behalf of the corporation), indemnification may be provided only for expenses actually and reasonably incurred by any director or officer in connection with the defense or settlement of such an action or suit if such person acted in good faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification shall be provided if such person shall have been adjudged to be liable to the corporation, unless and only to the extent that the court in which the action or suit was brought shall determine that the defendant is fairly and reasonably entitled to indemnity for such expenses despite such adjudication of liability.

The rights conferred in the restated certificate of incorporation and the restated bylaws are not exclusive, and we are authorized to enter into indemnification agreements with our directors, officers, employees and agents and to obtain insurance to indemnify such persons.

Although we believe our marketable securities investments are safe and highly liquid, we cannot guarantee that our investment portfolio

will not be negatively impacted by recent or future market volatility or credit restrictions.

for indemnification by our directors and officers may reduce our available funds to satisfy successful stockholder claims against us

and may reduce the amount of money available to us.

permitted by Section 102(b)(7) of the Delaware General Corporation Law, our restated certificate of incorporation limits the liability

of our directors to the fullest extent permitted by law.

In addition, as permitted by Section 145 of the Delaware General Corporation

Law, our restated certificate of incorporation and restated bylaws provide that we shall indemnify, to the fullest extent authorized

by the Delaware General Corporation Law, each person who is involved in any litigation or other proceeding because such person is or

was a director or officer of our company or is or was serving as an officer or director of another entity at our request, against all

expense, loss or liability reasonably incurred or suffered in connection therewith.

Our restated certificate of incorporation provides

that the right to indemnification includes the right to be paid expenses incurred in defending any proceeding in advance of its final

disposition, provided, however, that such advance payment will only be made upon delivery to us of an undertaking, by or on behalf of

the director or officer, to repay all amounts so advanced if it is ultimately determined that such director is not entitled to indemnification.

we do not pay a proper claim for indemnification in full within 60 days after we receive a written claim for such indemnification, except

in the case of a claim for an advancement of expenses, in which case such period is 20 days, our restated certificate of incorporation

and our restated bylaws authorize the claimant to bring an action against us and prescribe what constitutes a defense to such action.

145 of the Delaware General Corporation Law permits a corporation to indemnify any director or officer of the corporation against expenses

(including attorney’s fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with

any action, suit or proceeding brought by reason of the fact that such person is or was a director or officer of the corporation, if

such person acted in good faith and in a manner that he reasonably believed to be in, or not opposed to, the best interests of the corporation,

and, with respect to any criminal action or proceeding, if he or she had no reason to believe his or her conduct was unlawful.

In a derivative

action, (i.e., one brought by or on behalf of the corporation), indemnification may be provided only for expenses actually and reasonably

incurred by any director or officer in connection with the defense or settlement of such an action or suit if such person acted in good

faith and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, except that

no indemnification shall be provided if such person shall have been adjudged to be liable to the corporation, unless and only to the

extent that the court in which the action or suit was brought shall determine that the defendant is fairly and reasonably entitled to

indemnity for such expenses despite such adjudication of liability.

rights conferred in the restated certificate of incorporation and the restated bylaws are not exclusive, and we are authorized to enter

into indemnification agreements with our directors, officers, employees and agents and to obtain insurance to indemnify such persons.

We have entered into indemnification agreements with each of our officers and directors.

The above limitations on liability and our indemnification obligations limit the personal liability of our directors and officers for monetary damages for breach of their fiduciary duty as directors by shifting the burden of such losses and expenses to us.

Although we obtained coverage under our directors’ and officers’ liability insurance, certain liabilities or expenses covered by our indemnification obligations may not be covered by such insurance or the coverage limitation amounts may be exceeded.

As a result, we may need to use a significant amount of our funds to satisfy our indemnification obligations, which could severely harm our business and financial condition and limit the funds available to stockholders who may choose to bring a claim against our company.

above limitations on liability and our indemnification obligations limit the personal liability of our directors and officers for monetary

damages for breach of their fiduciary duty as directors by shifting the burden of such losses and expenses to us.

Although we obtained

coverage under our directors’ and officers’ liability insurance, certain liabilities or expenses covered by our indemnification

obligations may not be covered by such insurance or the coverage limitation amounts may be exceeded.

As a result, we may need to use

a significant amount of our funds to satisfy our indemnification obligations, which could severely harm our business and financial condition

and limit the funds available to stockholders who may choose to bring a claim against our company.

to compete successfully in our markets could adversely affect our business.

provide products and services into competitive markets.

We believe the principal points of competition in our markets are product performance,

reliability and innovation, application expertise, brand reputation, product life cycle cost, timeliness of delivery, proximity of service

centers, effectiveness of our distribution channels and price.

Maintaining and improving our competitive position will require continued

investment by us in manufacturing, research and development, engineering, marketing, customer service and support, and our distribution

We may not be successful in maintaining our competitive position.

Our competitors may develop products that are superior to

our products, or may develop more efficient or effective methods of providing products and services or may adapt more quickly than we

do to new technologies or evolving customer requirements.

Pricing pressures also could cause us to adjust the prices of certain products

to stay competitive.

We may not be able to compete successfully with our existing or new competitors.

Failure to continue competing successfully

could adversely affect our business, financial condition, results of operations and cash flow.

in our effective tax rates may adversely affect our financial results.

sell our products in three countries presently and plan to continue to grow globally in the future.

Domestic income tax is calculated

at the Malaysian statutory income tax rate of 24% of the estimated assessable profit for the financial year.

Taxation for other jurisdictions

is calculated at the rates prevailing in the respective jurisdictions.

Given the intended global nature of our business, a number of

factors may increase our future effective tax rates, including:

jurisdictions in which profits are determined to be earned and taxed;

● sustainability

of historical income tax rates in the jurisdictions in which we conduct business;

resolution of issues arising from tax audits with various tax authorities;

in the valuation of our deferred tax assets and liabilities, and changes in deferred tax

valuation allowances.

significant increase in our future effective tax rates could reduce net income for future periods.

to comply with the U.S.

Foreign Corrupt Practices Act or other applicable anti-corruption legislation could result in fines, criminal

penalties and an adverse effect on our business.

operate in a number of countries throughout the world, including countries known to have a reputation for corruption.

We are committed

to doing business in accordance with applicable anti-corruption laws.

We are subject, however, to the risk that we, our affiliated entities

or our or their respective officers, directors, employees and agents may take action determined to be in violation of such anti-corruption

laws, including the U.S.

Foreign Corrupt Practices Act of 1977, the U.K.

Bribery Act of 2010 and others.

Any such violation could result

in substantial fines, sanctions, civil and/or criminal penalties, and curtailment of operations in certain jurisdictions, and might adversely

affect our business, results of operations or financial condition.

In addition, actual or alleged violations could damage our reputation

and ability to do business.

Furthermore, detecting, investigating, and resolving actual or alleged violations is expensive and can consume

significant time and attention of our senior management.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors