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Item 1. Business

2025-06-02 compared with 2024-04-11 · 1271 added, 2143 removed, 156 unchanged (96% of the section changed)

Company Overview

We are a commercial stage

biotechnology company focused on the research, development, and commercialization of innovative solutions for men’s health and oncology.

Through our recent acquisition of Proteomedix, we own Proclarix, an in vitro diagnostic test for prostate cancer originally developed

by Proteomedix and approved for sale in the European Union under the In Vitro Diagnostic Regulation (“IVDR”), which we anticipate

will be marketed in the U.S.

We are a commercial stage biotechnology company

focused on the research, development, and commercialization of innovative solutions for men’s health and oncology.

Through our recent

acquisition of Proteomedix, we own Proclarix, an in vitro diagnostic test for prostate cancer originally developed by Proteomedix and

approved for sale in the European Union under the In Vitro Diagnostic Regulation (“IVDR”), which we anticipate will be marketed

as a lab developed test through our license agreement with LabCorp.

We also own ENTADFI, an FDA-approved,

once daily pill that combines finasteride and tadalafil for the treatment of BPH, a disorder of the prostate.

is an easy-to-use next generation protein-based blood test that can be done with the same sample as a patient’s regular Prostate-Specific

Antigen (“PSA”) test.

The PSA test is a well-established prostate specific marker that measures the concentration of PSA molecules

in a blood sample.

A high level of PSA can be a sign of prostate cancer.

However, PSA levels can also be elevated for many other reasons

including infections, prostate stimulation, vigorous exercise or even certain medications.

PSA results can be confusing for many patients

and even physicians.

It is estimated over 50% of biopsies with elevated PSA are negative or clinically insignificant resulting in an overdiagnosis

and overtreatment that impacts the physician’s routine, our healthcare system, and the quality of patients’ lives.

helps doctors and patients with unclear PSA test results through the use of our proprietary Proclarix Risk Score which delivers clear

and immediate diagnostic support for further treatment decisions.

We also own ENTADFI, an FDA-approved, once daily pill

that combines finasteride and tadalafil for the treatment of BPH, a disorder of the prostate.

Proclarix is an easy-to-use next generation protein-based

blood test that can be done with the same sample as a patient’s regular Prostate-Specific Antigen (“PSA”) test.

PSA test is a well-established prostate specific marker that measures the concentration of PSA molecules in a blood sample.

of PSA can be a sign of prostate cancer.

However, PSA levels can also be elevated for many other reasons including infections, prostate

stimulation, vigorous exercise or even certain medications.

PSA results can be confusing for many patients and even physicians.

estimated over 50% of biopsies with elevated PSA are negative or clinically insignificant resulting in an overdiagnosis and overtreatment

that impacts the physician’s routine, our healthcare system, and the quality of patients’ lives.

Proclarix helps doctors and

patients with unclear PSA test results through the use of our proprietary Proclarix Risk Score which delivers clear and immediate diagnostic

support for further treatment decisions.

No additional intervention is required, and results are available quickly.

Local diagnostic laboratories can integrate this multiparametric test into their current workflow because Proclarix assays use

the enzyme-linked immunosorbent assay (ELISA) standard, which most diagnostic laboratories are already equipped to process.

ENTADFI allows men to receive

treatment for their symptoms of BPH without the negative sexual side effects typically seen in patients on finasteride alone.

a recent business strategy shift towards the field of men’s health and oncology and deprioritizing of preclinical vaccine programs,

we are building additional assets in therapeutics, diagnostics, and clinician services for men’s health and oncology.

Since our inception in October

2018 until April 2023, when we acquired ENTADFI, we devoted substantially all of our resources to performing research and development,

undertaking preclinical studies and enabling manufacturing activities in support of our product development efforts, hiring personnel,

acquiring and developing our technology and now deprioritized vaccine candidates, organizing and staffing our company, performing business

planning, establishing our intellectual property portfolio and raising capital to support and expand such activities.

Prior to the acquisition of

ENTADFI, we managed one distinct business segment, which was research and development.

Beginning in the second quarter of 2023, as a result

of the acquisition of ENTADFI, for which we are working towards commercial launch, we operated in two business segments:

development and commercial.

During the third quarter of 2023, we deprioritized our vaccine discovery and development programs, and accordingly,

we now operate in one segment:

Our recent acquisition of Proteomedix during the fourth quarter of 2023 and its related diagnostic

product Proclarix was determined to be within our commercial segment.

The research and development segment was our historical business,

and was dedicated to the research and development of various vaccines to prevent infectious diseases.

The commercial segment was new in

the second quarter of 2023 and is dedicated to the commercialization of our products approved for sale, namely ENTADFI in the U.S.

Proclarix in Europe.

On December 15, 2023, the Company closed its acquisition of Proteomedix

and introduced Onconetix, Inc.

as the new name for the combined company.

The closing of the acquisition of Proteomedix for all stock consideration

provides Proteomedix shareholders with an initial 16.4% ownership stake of Onconetix, and Series B Preferred Stock convertible into 269,672,900

shares of Onconetix Common Stock, subject to Onconetix stockholder approval of the same (“Stockholder Approval”).

In light of (i) the time

and resources needed to continue pursuing commercialization of ENTADFI, and (ii) the Company’s cash runway and indebtedness, the

Company has determined to temporarily pause its commercialization of ENTADFI, as it considers strategic alternatives.

The Company expects

to appoint a new Chief Executive Officer in the second quarter of 2024, after which the new CEO and the Board will reassess its ENTADFI

program in light of the foregoing and other relevant factors.

We are currently focusing

our efforts on commercializing Proclarix.

Given Proclarix is CE-marked

for sale in the European Union, we expect to generate revenue from sales of Proclarix by 2025.

Although we anticipate these sales to offset

some expenses relating to commercial scale up and development, we expect our expenses will increase substantially in connection with our

ongoing activities, as we:

commercialize Proclarix;

hire additional personnel;

operate as a public company;

obtain, maintain, expand and protect our intellectual property portfolio.

To the extent that we resume

the commercialization of ENTADFI, we also expect to incur significant commercialization expenses related to marketing, manufacturing and

distribution for ENTADFI.

We rely and will continue to rely on third parties for the manufacturing of ENTADFI and Proclarix.

internal manufacturing capabilities, and we will continue to rely on third parties, of which the main suppliers are single-source suppliers,

for commercial products.

We do not have any products

approved for sale, aside from Proclarix, from which we have generated only minimal amounts of development revenue since its acquisition,

and ENTADFI, from which we have not generated any revenue from product sales, and for which we have determined to temporarily pause commercialization

To date, we have financed our operations primarily with proceeds from our sale of preferred securities to seed investors,

the initial public offering (“IPO”), the April 2022 Private Placement (as defined below), the August 2022 Private Placement

(as defined below), the proceeds received from a warrant exercise in August 2023, and the proceeds received from the issuance of debt

in January 2024.

We will continue to require significant additional capital to commercialize Proclarix and ENTADFI (if we decide to resume

its commercialization), and to fund operations for the foreseeable future.

Accordingly, until such time as we can generate significant

revenue, if ever, we expect to finance our cash needs through public or private equity or debt financings, third-party (including government)

funding and to rely on third-party resources for marketing and distribution arrangements, as well as other collaborations, strategic alliances

and licensing arrangements, or any combination of these approaches, to support our operations.

We have incurred net losses

since inception and expect to continue to incur net losses in the foreseeable future.

Our net losses may fluctuate significantly from

quarter-to-quarter and year-to-year, depending in large part on the timing of our preclinical studies, clinical trials and manufacturing

activities, our expenditures on other research and development activities and commercialization activities.

As of December 31, 2023, the

Company had a working capital deficit of approximately $11.4 million and an accumulated deficit of approximately $56.8 million.

need to raise additional capital within the next 12 months to sustain operations.

In addition, if Stockholder Approval is not obtained

by January 1, 2025, the Company may be obligated to cash settle the Series B Preferred Stock.

Based on the closing price of $0.166 for

the Company’s stock as of April 5, 2024, the Series B Preferred Stock would be redeemable for approximately $44.8 million.

Until we generate revenue

sufficient to support self-sustaining cash flows, if ever, we will need to raise additional capital to fund our continued operations,

including our product development and commercialization activities related to our current and future products.

There can be no assurance

that additional capital will be available to us on acceptable terms, or at all, or that we will ever generate revenue sufficient to provide

self-sustaining cash flows.

Local diagnostic laboratories

can integrate this multiparametric test into their current workflow because Proclarix assays use the enzyme-linked immunosorbent assay

(ELISA) standard, which most diagnostic laboratories are already equipped to process.

In light of (i) the time and resources needed

to continue pursuing commercialization of ENTADFI, and (ii) the Company’s cash runway and indebtedness, the Company has abandoned

commercialization of ENTADFI and is working with an investment advisor to assist with the potential sale or other transaction of the ENTADFI

There is currently no plan to resume commercialization of ENTADFI, and as such, if we are not able to consummate a sale or other

transaction of the ENTADFI assets, we may abandon the assets and destroy our inventory of the product.

We rely and will continue to rely on third parties

for the manufacturing of Proclarix.

We have no internal manufacturing capabilities, and we will continue to rely on third parties, of

which the main suppliers are single-source suppliers, for commercial products.

We do not have any products approved for sale,

aside from Proclarix, from which we have generated revenue since acquisition, and ENTADFI, from which we have not generated any revenue

from product sales, and for which we have now abandoned commercialization activities.

To date, we have financed our operations primarily

with proceeds from our sale of preferred securities to seed investors, the initial public offering (“IPO”), and subsequent

offerings of debt and equity securities.

We will continue to require significant additional capital to commercialize Proclarix and to

fund operations for the foreseeable future.

Accordingly, until such time as we can generate significant revenue, if ever, we expect to

finance our cash needs through public or private equity or debt financings, third-party (including government) funding and to rely on

third-party resources for marketing and distribution arrangements, as well as other collaborations, strategic alliances and licensing

arrangements, or any combination of these approaches, to support our operations.

We have incurred net losses since inception and

expect to continue to incur net losses in the foreseeable future.

Our net losses may fluctuate significantly from quarter-to-quarter and

year-to-year, depending in large part on the timing of our preclinical studies, clinical trials and manufacturing activities, our expenditures

on other research and development activities and commercialization activities.

As of December 31, 2024, the Company had a working capital

deficit of approximately $17.3 million and an accumulated deficit of approximately $113.0 million.

We will need to raise additional capital

within the next 12 months to sustain operations.

Until we generate revenue sufficient to support

self-sustaining cash flows, if ever, we will need to raise additional capital to fund our continued operations, including our product

development and commercialization activities related to our current and future products.

There can be no assurance that additional capital

will be available to us on acceptable terms, or at all, or that we will ever generate revenue sufficient to provide self-sustaining cash

These circumstances raise substantial doubt about our ability to continue as a going concern.

The accompanying

consolidated financial statements of Onconetix, as of and for the year ended December 31, 2023, included elsewhere in this Report do not

include any adjustment that might be necessary if the Company is unable to continue as a going concern.

Because of the numerous risks

and uncertainties associated with our business, we are unable to predict the timing or amount of increased expenses or when or if we will

be able to achieve or maintain profitability.

Additionally, even if we are able to generate revenue from Proclarix or ENTADFI, we may

not become profitable.

If we fail to become profitable or are unable to sustain profitability on a continuing basis, then we may be unable

to continue our operations at planned levels and may be forced to reduce our operations.

The accompanying consolidated financial

statements of Onconetix, as of and for the year ended December 31, 2024, included elsewhere in this Report do not include any adjustment

that might be necessary if the Company is unable to continue as a going concern.

Because of the numerous risks and uncertainties

associated with our business, we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve

or maintain profitability.

Additionally, even if we are able to generate revenue from Proclarix, we may not become profitable.

to become profitable or are unable to sustain profitability on a continuing basis, then we may be unable to continue our operations at

planned levels and may be forced to reduce our operations.

On April 30, 2025, Proteomedix, in accordance

with Swiss law, provided notice to three employees that their respective employment relationships will end on July 31, 2025.

is not expected to significantly impact operations.

Potential Ocuvex Transaction

On April 1, 2025, the

Company and Ocuvex Therapeutics, Inc.

(“Ocuvex”) signed a Non-Binding Letter of Intent (the “Ocuvex LOI”) contemplating

a potential business combination transaction with Ocuvex, pursuant to which the Company will acquire all the issued and outstanding equity

interests of Ocuvex in exchange for newly issued shares of common stock of the Company.

Immediately following the closing of the proposed

transaction, the pre-closing Ocuvex equity holders will own approximately 90% of the equity interests in the combined company.

The Ocuvex LOI only represents

a mutual indication of interest regarding the proposed transaction, and the terms of such transaction are subject to a number of contingencies,

including the completion of customary due diligence and the negotiation and execution of definitive agreements.

Upon execution of the

definitive agreement, the completion of the transaction will be subject to, among other matters, satisfaction of the conditions negotiated

therein, the buyer having secured adequate financing, and receipt of all third party (including governmental) approvals, licenses, consents,

and clearances, as and when applicable.

Management and History

Onconetix, Inc.

Blue Water Vaccines Inc.

(formerly Blue Water Vaccines

and Blue Water Biotech, Inc.) was founded in October 2018.

The Company’s initial goal was to develop a

transformational universal flu vaccine to treat and prevent infections in patients globally.

After deprioritizing our vaccine programs,

the Company subsequently shifted its focus toward building a foundation of therapeutic, diagnostic, and service products in the field

of men’s health and oncology.

Our Interim Chief Executive

Ralph Schiess, has extensive experience with life sciences companies.

Schiess co-founded Proteomedix, a private commercial-stage

diagnostics oncology company that the Company acquired in December 2023 (as further described below) and served as its Chief Executive

Officer from Proteomedix’s inception until December 2019, as Proteomedix’s Chief Scientific Officer from January 2020 to May

2023, and again as Chief Executive Officer since June 2023.

Bruce Harmon, our Chief Financial

Officer, has more than 40 years of experience in financial positions with life sciences companies and various other industries.

has served in a variety of roles, including chief financial officer, controller, chief executive officer, and audit committee chairman.

He has been an independent consultant since 2008 through his business, Lakeport Business Services, Inc., and served in the outsourced

CFO capacity for multiple publicly traded companies.

During this time, Mr.

Harmon was CFO of Marizyme Inc.

from 2020 to 2021, CFO of bioAffinity

Technologies Inc.

in 2022, a director of Dale Biotech LLC since 2017, and a director of Patriax Industries since 2023.

He has extensive

experience with fundraising, public offerings, mergers and acquisitions, and turnarounds.

Earlier in his career, he was a member of a

team that, at the invitation of the Environmental Programmé, presented a green building product to delegates at the United Nations.

He earned a Bachelor of Science degree in accounting from Missouri State University.

Additionally, members of

our Board of Directors have extensive expertise in the fields of life sciences, business and finance.

Our directors include Simon Tarsh,

a retired Deloitte Consulting managing director with experience in life sciences, Timothy Ramdeen, who has nearly a decade of experience

in private equity and hedge fund investing, capital markets, and company formation, and James Sapirstein, R.Ph., M.B.A, President, CEO

and Chairman of First Wave BioPharma, Inc.

Corporate Name Change and Amendment to Bylaws

On April 21, 2023, the Company

filed an amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware to change its corporate

name from “Blue Water Vaccines Inc.” to “Blue Water Biotech, Inc.” The name change was effective as of April 21,

In connection with the name change, the Company amended the Company’s bylaws to reflect the corporate name “Blue Water

Biotech, Inc.,” also effective on April 21, 2023.

On December 15, 2023, the

Company filed an amendment to its Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware to change

its corporate name from “Blue Water Biotech, Inc.” to “Onconetix, Inc.”

In connection with the name

change, the Company also amended the Company’s bylaws to reflect the new corporate name.

On May 31, 2023, the Board

amended the Company’s bylaws to reduce the quorum requirement at meetings of the Company’s stockholders from a majority of

the voting power of the outstanding shares of stock of the Company entitled to vote, to one-third of the voting power of the outstanding

shares of stock of the Company entitled to vote, effective immediately.

No other changes were made to the bylaws.

The Company’s initial goal was to develop a transformational universal

flu vaccine to treat and prevent infections in patients globally.

After deprioritizing our vaccine programs, the Company subsequently

shifted its focus toward building a foundation of therapeutic, diagnostic, and service products in the field of men’s health and

Fedasz, our Interim Chief Financial

Officer since June 2024, was appointed as Interim Chief Executive Officer on April 2, 2025.

For more than two decades, Ms.

helped companies raise capital, model and forecast business, manage cash flow and conduct mergers and acquisitions.

She is a dynamic,

data-driven executive with a bold, high-growth mindset.

From January 2023 to June 2024, Ms.

Fedasz worked with various clients, including

a not-for-profit and an early-stage artificial intelligence and data-driven health and wellness tracker.

From February 2022 to December

Fedasz served as Head of Business Development for Evofem Biosciences, a Nasdaq-listed public biotech company developing innovative

products for women's health.

From August 2019 to October 2021, Ms.

Fedasz served in various positions of increasing responsibility, including

Chief Financial Officer, at IDW Media Holdings, a micro-cap media company, where she managed the company's initial public offering.

April 2018 to August 2019, Ms.

Fedasz served as Chief Financial Officer of MOCEAN, an integrated agency for entertainment, gaming, and

Fedasz's breadth of experience has seen her lead teams in media, technology, services, manufacturing, and education, and she

has worked with companies whose clients and customers include Fortune 500 companies such as Netflix, Disney, Amazon, Apple, Activision,

Fedasz received an MBA with an emphasis in finance from Columbia Business School and a BA from University California at Los

Angeles (UCLA).

She holds an inactive CPA in the state of California.

Additionally, members of our board of directors

(“Board”) have extensive expertise in the fields of life sciences, business and finance.

Our directors include Andrew Oakley,

who had held several CFO positions at publicly-traded pharmaceutical companies, Simon Tarsh, a retired Deloitte Consulting managing director

with experience in life sciences, Ajit Singh, a partner at a Silicon Valley-based fund, and Timothy Ramdeen, who has nearly a decade of

experience in private equity and hedge fund investing, capital markets, and company formation.

Nasdaq Compliance

On September 18, 2023, we

received notice from Nasdaq staff indicating that, based upon the closing bid price of the Common Stock for the prior 30 consecutive business

days, we were not in compliance with the requirement to maintain a minimum bid price of $1.00 per share for continued listing on Nasdaq,

as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”).

On March 13, 2024, we submitted a plan of compliance

to Nasdaq to discuss our plans to evidence compliance with the Bid Price Rule and we received an additional 180-day period, or until September

16, 2024, to regain compliance with the Bid Price Rule.

On August 22, 2023, we received

a notice from Nasdaq that we were not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file

all required periodic financial reports with the SEC, given our failure to timely file our quarterly report on Form 10-Q for the quarter

ended June 30, 2023.

On October 20, 2023, we filed our Form 10-Q for the period ended June 30, 2023, and on November 1, 2023, we announced

that we had regained compliance with Nasdaq Listing Rule 5250(c)(1).

Recent Acquisitions

December 15, 2023, Onconetix entered into a Share Exchange Agreement (the “Share Exchange Agreement”), by and among (i) Onconetix,

On January 24, 2025, the Company received a letter

from the Listing Qualifications Staff of Nasdaq indicating that, based upon the closing bid price of the Company’s Common Stock

from November 25, 2024 to January 10, 2025, the Company is no longer in compliance with the requirement for continued listing on The Nasdaq

Capital Market to maintain a minimum bid price of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum

Bid Price Rule”).

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), Nasdaq provided the Company with 180 calendar days to regain

compliance with the Minimum Bid Price Rule.

On April 14, 2025, Nasdaq issued a further notice

(the “Notice”) to the Company that it determined that the Company’s securities had a closing bid price of $0.10 or less

for ten consecutive trading days.

Accordingly, the Company is subject to the provisions under Nasdaq Listing Rule 5810(c)(3)(A)(iii).

As a result, unless the Company timely requested a hearing before the Nasdaq Hearings Panel (the “Panel”), trading of the

Common Stock would be suspended at the opening of business on April 23, 2025, and a Form 25-NSE would be filed with the SEC, which would

remove the Company’s securities from listing and registration on Nasdaq.

On May 27, 2025, the Company appeared before the Nasdaq

Hearings Panel and requested a stay of suspension.

The Panel’s decision about the stay request is still pending as of the date these

financials were filed.

On April 24, 2025, the Company received an additional

deficiency notice from Nasdaq that the Company was not in compliance with Nasdaq’s continued listing standards as set forth in Listing

Rule 5250(c)(1) given the Company’s failure to timely file its Annual Report on Form 10-K for the fiscal year ended December 31,

2024, and that this matter serves as an additional basis for delisting the Company’s securities from Nasdaq.

As the Company was

already before a Panel for its failure to comply with Minimum Bid Price Rule, the Company had seven calendar days from the date of the

Notice, or until May 1, 2025, to request a stay of the suspension, which request would stay the suspension of the Company’s securities

pending the Panel’s decision.

The Company submitted a stay request on or before May 1, 2025.

On May 20, 2025, the Company received an additional

deficiency notice from Nasdaq that the Company was not in compliance with Nasdaq’s continued listing standards as set forth in Listing

Rule 5250(c)(1) given the Company’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025,

and that this matter serves as an additional basis for delisting the Company’s securities from Nasdaq.

The Company had seven calendar

days from the date of the Notice, or until May 27, 2025, to request a stay of the suspension, which would stay the suspension of the Company’s

securities pending the Panel’s decision.

On May 27, 2025, the Company appeared before the Nasdaq Hearings Panel and requested a

stay of suspension.

The Panel’s decision about the stay request is still pending as of the date these financials were filed.

However, there are no assurances that the Panel will grant the Company’s

request for continued listing or an extension to demonstrate compliance.

If the Company does not obtain a favorable decision from the

Panel, its Common Stock will become subject to delisting.

On December 15,

2023, Onconetix entered into a Share Exchange Agreement (the “Share Exchange Agreement”), by and among (i) Onconetix,

(ii) Proteomedix, (iii) each of the holders of outstanding capital stock, convertible securities, or stock options of Proteomedix

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accordance with the terms and conditions of the Share Exchange Agreement.

Pursuant to the Share Exchange Agreement, subject to the terms and

conditions set forth therein, the Sellers agreed to sell to Onconetix, and Onconetix agreed to buy, all of the issued and outstanding

voting equity interests of Proteomedix in exchange for newly issued shares of Common Stock and newly issued shares of Series B Preferred

Stock (the “Share Exchange”).

consummation of the Share Exchange (the “Share Exchange Closing”) was subject to customary closing conditions and the execution

of the Subscription Agreement entered into with Altos Ventures, a shareholder of Proteomedix prior to the closing of the Share Exchange

(the “PMX Investor”).

The Share Exchange closed on December 15, 2023 (the “Share Exchange Closing Date”).

in 2010, Proteomedix develops, markets and sells non-invasive diagnostic tests accompanied by decision support systems to detect

and assess the prognosis of cancer.

Proteomedix’s lead product, Proclarix ® , is an in vitro diagnostic test for prostate

Proteomedix is working to address all stages in cancer management by developing tools for both more accurate detection and more

efficient treatment of cancer including (i) diagnostic tests to early detect and define the stage of cancer;

(ii) prognostic tools for

the identification of patients with aggressive disease;

and (iii) stratification biomarkers to match patients with therapies that are

more likely to be safe and effective.

prostate cancer stands as the most prevalent and second most fatal cancer type affecting men.

The widespread utilization of PSA screening

since it became broadly available in the 1980s helped reduce the occurrence of metastatic prostate cancers by over half, but also led

to a notable increase in overdiagnosis, sometimes resulting in excessive treatment, severe complications, and potential psychological

There exists a considerable population of men each year who are notified of their heightened risk for prostate cancer based

on elevated PSA levels, with limited options beyond invasive needle biopsies for managing their cancer risk.

addresses the unsolved problem of prostate cancer overdiagnosis, which can lead to negative prostate biopsies that increase costs for

the healthcare system and uncertainty for patients.

Pursuant to the Share

Exchange Agreement, subject to the terms and conditions set forth therein, the Sellers agreed to sell to Onconetix, and Onconetix

agreed to buy, all of the issued and outstanding voting equity interests of Proteomedix in exchange for newly issued shares of Common

Stock and newly issued shares of Series B Preferred Stock (the “Share Exchange”).

The consummation of the

Share Exchange (the “Share Exchange Closing”) was subject to customary closing conditions and the execution of the Subscription

Agreement entered into with Altos Ventures, a shareholder of Proteomedix prior to the closing of the Share Exchange (the “PMX Investor”).

Share Exchange closed on December 15, 2023 (the “Share Exchange Closing Date”).

The closing of the acquisition of Proteomedix

for all stock consideration provided Proteomedix shareholders with an initial 16.4% ownership stake of Onconetix, and Series B Preferred

Stock convertible into 6,741,820 shares of Onconetix Common Stock, subject to Onconetix stockholder approval of the same (“Stockholder

On September 5, 2024, at the annual stockholders’ meeting of the Company, the Company obtained the requisite

Stockholder Approval from Onconetix stockholders.

On September 24, 2024, all outstanding shares of Series B Preferred Stock converted

into an aggregate of 6,741,820 shares of Onconetix Common Stock.

Founded in 2010, Proteomedix

develops, markets and sells non-invasive diagnostic tests accompanied by decision support systems to detect and assess the prognosis

Proteomedix’s lead product, Proclarix ® , is an in vitro diagnostic test for prostate cancer.

is working to address all stages in cancer management by developing tools for both more accurate detection and more efficient treatment

of cancer including (i) diagnostic tests to early detect and define the stage of cancer;

(ii) prognostic tools for the identification

of patients with aggressive disease;

and (iii) stratification biomarkers to match patients with therapies that are more likely to be safe

and effective.

Currently, prostate cancer

stands as the most prevalent and second most fatal cancer type affecting men.

The widespread utilization of PSA screening since it became

broadly available in the 1980s helped reduce the occurrence of metastatic prostate cancers by over half, but also led to a notable increase

in overdiagnosis, sometimes resulting in excessive treatment, severe complications, and potential psychological distress.

a considerable population of men each year who are notified of their heightened risk for prostate cancer based on elevated PSA levels,

with limited options beyond invasive needle biopsies for managing their cancer risk.

Proclarix addresses the

unsolved problem of prostate cancer overdiagnosis, which can lead to negative prostate biopsies that increase costs for the healthcare

system and uncertainty for patients.

Proclarix is approved for sale in the European Union under the IVDR.

Proclarix was

first CE marked under the IVD Directive in Europe in January 31, 2019.

On October 7, 2022, Proclarix gained CE marking under the IVD Regulation

(IVDR) and was registered in the United Kingdom and Switzerland under applicable regulations.

Proclarix was first CE marked

under the IVD Directive in Europe on January 31, 2019.

On October 7, 2022, Proclarix gained CE marking under the IVD Regulation (IVDR)

and was registered in the United Kingdom and Switzerland under applicable regulations.

Clinical studies have confirmed that Proclarix

15 unchanged sentences

The number of sold Proclarix tests current corresponds to the early market development stage and selected few laboratories offering

In 2023, we had revenues of $67,380 from sales of Proclarix, compared to $79,085 in 2022.

In the United States, the development

and commercialization of Proclarix is being pursued by Laboratory Corporation of America Holdings, more commonly called Labcorp, pursuant

to an exclusive license agreement entered into between Proteomedix and Labcorp in 2023.

was founded by a multi-disciplinary group of scientists and clinicians that include Prof.

Thomas Cerny, president of the

Swiss Cancer Research Foundation, Prof.

In 2024, we had revenues of $86,957 from sales of Proclarix.

Prior to being acquired by Onconetix in 2023, Proteomedix had

$67,380 from sales of Proclarix.

In the United States, the development and commercialization of Proclarix is being pursued by Laboratory

Corporation of America Holdings, more commonly called LabCorp, pursuant to an exclusive license agreement entered into between Proteomedix

and LabCorp in 2023.

Proteomedix was founded

by a multi-disciplinary group of scientists and clinicians that include Prof.

Thomas Cerny, president of the Swiss Cancer

Research Foundation, Prof.

Ruedi Aebersold, a pioneer in proteomics technology development, and the late Prof.

Wilhelm Krek,

a leader in cancer research.

Wilhelm Krek, a leader

in cancer research.

Proteomedix’s management consists of Dr.

Ralph Schiess (Chief Executive Officer), who developed the

biomarker technology, and Christian Bruehlmann (Chief Business Officer), with seasoned experience in finance, business development and

product management.

Ralph Schiess (Chief Executive Officer), who developed the biomarker

technology, and Christian Brühlmann (Chief Business Officer), with seasoned experience in finance, business development and product

On February 18, 2025, Christian Brühlmann resigned from his position as Chief Strategy Officer of the Company.

will remain in his position as Chief Business Officer of Proteomedix.

On February 24, 2025, Dr.

Schiess resigned from his positions as

the Interim Chief Executive Officer of the Company and Chief Science Officer of Proteomedix, effective immediately, and from his position

as Chief Executive Officer of Proteomedix, effective May 31, 2025.

Terms of the PMX Transaction

Consideration

full payment for the Purchased Shares, Onconetix issued shares (the “Exchange Shares”) consisting of:

(i) 3,675,414 shares

of Common Stock equal to approximately 19.99% of the total issued and outstanding Common Stock prior to the acquisition and (ii) 2,696,729 shares

of Series B Preferred Stock convertible into 269,672,900 shares of Common Stock.

The parties agreed that the aggregate value

of the Exchange Shares at the Share Exchange Closing was equal to approximately Seventy-Five Million U.S.

Dollars ($75,000,000) (the “Exchange

Consideration”) less the value of the Proteomedix Shares for which the Proteomedix Stock Options (as defined below) are exercisable

immediately prior to the Share Exchange Closing, subject to adjustment for indemnification as described below.

Following the Share Exchange

Closing, 22,841,975 and 22,324,576 shares of Common Stock were issued and outstanding, respectively.

fair value of the 3,675,414 shares of Common Stock, was determined using the closing price of the Common Stock as of the Share Exchange

Closing Date, which was $0.2382.

The fair value of the 2,696,729 shares of Series B Preferred Stock was based on the underlying fair

value of the common shares issuable upon conversion, also based on the closing price of the Common Stock as of the Share Exchange Closing

The aggregate fair value of the common and preferred shares issued as consideration was equal to approximately $65.1 million.

Advisors acted as financial advisor to Proteomedix at Proteomedix’s expense.

As part of compensation for services rendered by Tungsten

Advisors, the parties agreed that $7,500,000 in Exchange Shares were issued to certain affiliates of Tungsten Advisors (the “Advisor

Parties”) out of the total Exchange Consideration issued by Onconetix.

a result of the PMX Transaction, Proteomedix became a direct, wholly owned subsidiary of Onconetix.

It is anticipated that, following

the Conversion (as defined below) and closing of the investment pursuant to the Subscription Agreement (as defined below), Sellers will

own approximately 87.2% of the outstanding equity interests of Onconetix, the PMX Investor will own approximately 7.5% of the outstanding

equity interests of Onconetix, and the stockholders of Onconetix immediately prior to the Share Exchange Closing will own approximately

5.3% of the outstanding equity interests of Onconetix.

option to purchase shares of Proteomedix (each, a “Proteomedix Stock Option”) outstanding immediately before the Share Exchange

Closing, whether vested or unvested, remains outstanding until the Conversion unless otherwise terminated in accordance with its terms.

At the Conversion, each outstanding Proteomedix Stock Option, whether vested or unvested, shall be assumed by Onconetix and converted

into the right to receive (a) an option to acquire shares of Common Stock (each, an “Assumed Option”) or (b) such

other derivative security as Onconetix and Proteomedix may agree, subject in either case to substantially the same terms and conditions

as were applicable to such Proteomedix Stock Option immediately before the Share Exchange Closing.

Each Assumed Option shall:

(i) represent

the right to acquire a number of shares of Common Stock equal to the product of (A) the number of Proteomedix Common Shares that

were subject to the corresponding Proteomedix Option immediately prior to the Share Exchange Closing, multiplied by (B) the Exchange

Ratio (as defined in the Share Exchange Agreement);

and (ii) have an exercise price (as rounded down to the nearest whole cent) equal

to the quotient of (A) the exercise price of the corresponding Proteomedix Option, divided by (B) the Exchange Ratio.

Indemnification .

the earlier of (i) Stockholder Approval or (ii) June 30, 2024 (the “Claim Deadline”), Onconetix may assert

Claims against Proteomedix and Sellers for any and all Losses incurred by Onconetix with respect to:

(i) any inaccuracy in or breach

of any of the representations or warranties made by Proteomedix contained in the Share Exchange Agreement or (ii) any breach or non-fulfillment of

any covenant, agreement or obligation to be performed by Proteomedix pursuant to the Share Exchange Agreement.

Until the Claim Deadline,

the Sellers’ Representative, acting on behalf of the Sellers, may assert Claims against Onconetix for any Loss incurred by the Sellers

with respect to:

(i) any inaccuracy in or breach of any of the representations or warranties of Onconetix contained in the Share

Exchange Agreement or (ii) any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Onconetix

pursuant to the Share Exchange Agreement.

number of shares of Common Stock issued upon Conversion shall be increased or decreased by a number determined by dividing the Net Adjustment

by the ten-day volume-weighted average price (“VWAP”) of the Common Stock for the ten (10)-day period preceding

the third day prior to the Share Exchange Closing Date and rounding down to the nearest whole share;

provided, however, that (i) there

shall be no adjustment to the number of shares of Common Stock issued upon Conversion if the Net Adjustment is less than $1,000,000 and

(ii) the number of shares of Common Stock issued upon Conversion shall not be increased or decreased by more than 10% of the number

of shares of Common Stock that would be issuable absent such adjustment.

As used herein, “Net Adjustment” means the absolute

value of the difference between the aggregate adjustment in favor of each party with respect to Losses that is agreed by Onconetix and

the Sellers’ Representative or determined by a mutually acceptable dispute resolution firm.

and after the Share Exchange Closing and until the first anniversary of the Share Exchange Closing, Sellers, severally and not jointly,

are required to indemnify Onconetix and its affiliates and their respective representatives (collectively, the “Onconetix Indemnitees”)

Pursuant to the Share

Exchange Agreement, on December 15, 2023, in full payment for the Purchased Shares, Onconetix issued shares (the “Exchange Shares”)

consisting of:

(i) 91,885 shares of Common Stock equal to approximately 19.99% of the total issued and outstanding Common Stock prior

to the acquisition and (ii) 2,696,729 shares of Series B Preferred Stock convertible into 6,741,820 shares of Common

The parties agreed that the aggregate value of the Exchange Shares at the Share Exchange Closing was equal to approximately Seventy-Five

Dollars ($75,000,000) (the “Exchange Consideration”) less the value of the Proteomedix Shares for which the Proteomedix

Stock Options (as defined below) are exercisable immediately prior to the Share Exchange Closing, subject to adjustment for indemnification

as described below.

Following the Share Exchange Closing, 571,049 and 558,114 shares of Common Stock were issued and outstanding, respectively.

The fair value of the

91,885 shares of Common Stock, was determined using the closing price of the Common Stock as of the Share Exchange Closing Date,

which was $9.528.

The fair value of the 2,696,729 shares of Series B Preferred Stock was based on the underlying fair value of the

common shares issuable upon conversion, also based on the closing price of the Common Stock as of the Share Exchange Closing Date.

aggregate fair value of the common and preferred shares issued as consideration was equal to approximately $65.1 million.

Tungsten Advisors acted

as financial advisor to Proteomedix at Proteomedix’s expense.

As part of compensation for services rendered by Tungsten Advisors,

the parties agreed that $7,500,000 in Exchange Shares were issued to certain affiliates of Tungsten Advisors (the “Advisor Parties”)

out of the total Exchange Consideration issued by Onconetix.

As a result of the PMX

Transaction, Proteomedix became a direct, wholly owned subsidiary of Onconetix.

Immediately following the Conversion (as defined below)

and closing of the investment pursuant to the Subscription Agreement (as defined below), Sellers owned approximately 87.2% of the outstanding

equity interests of Onconetix, the PMX Investor owned approximately 7.5% of the outstanding equity interests of Onconetix, and the stockholders

of Onconetix immediately prior to the Share Exchange Closing owned approximately 5.3% of the outstanding equity interests of Onconetix.

Each option to purchase

shares of Proteomedix (each, a “Proteomedix Stock Option”) outstanding immediately before the Share Exchange Closing, whether

vested or unvested, remained outstanding until the Conversion unless otherwise terminated in accordance with its terms.

At the Conversion,

each outstanding Proteomedix Stock Option, whether vested or unvested, was assumed by Onconetix and converted into the right to receive

(a) an option to acquire shares of Common Stock (each, an “Assumed Option”) or (b) such other derivative security as Onconetix

and Proteomedix agreed, subject in either case to substantially the same terms and conditions as were applicable to such Proteomedix Stock

Option immediately before the Share Exchange Closing.

Each Assumed Option:

(i) represented the right to acquire a number of shares of

Common Stock equal to the product of (A) the number of Proteomedix Common Shares that were subject to the corresponding Proteomedix Option

immediately prior to the Share Exchange Closing, multiplied by (B) the Exchange Ratio (as defined in the Share Exchange Agreement);

(ii) had an exercise price (as rounded down to the nearest whole cent) equal to the quotient of (A) the exercise price of the corresponding

Proteomedix Option, divided by (B) the Exchange Ratio.

after the Share Exchange Closing and until the first anniversary of the Share Exchange Closing, Sellers, severally and not jointly, are

required to indemnify Onconetix and its affiliates and their respective representatives (collectively, the “Onconetix Indemnitees”)

against (i) any inaccuracy in or breach of any of the representations or warranties of such Seller contained in the Share Exchange

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Common Stock valued at the same price per share of Common Stock used to determine the Exchange Ratio.

Covenants of the Parties

party to the Share Exchange Agreement agreed to use its commercially reasonable efforts to effect the PMX Transaction.

obtained a duly executed Stockholder Support Agreement (as defined below) from each director and executive officer of Onconetix, and used

commercially reasonable efforts to obtain a duly executed Stockholder Support Agreement from

each holder of more than five percent (5%) of Onconetix’s voting stock.

Share Exchange Agreement contains certain covenants by each of the parties, to be observed during the period between the Share

Exchange Closing and Conversion, including covenants regarding:

(1) the provision of access to properties, books and personnel;

delivery of Onconetix’s financial statements;

(3) litigation support;

(4) Onconetix’s public filings;

(5) no insider

(6) further assurances;

(7) public announcements;

(8) confidentiality;

(9) indemnification of directors and officers and

tail insurance;

(10) intended tax treatment of the Share Exchange;

(11) Section 16 matters and (12) transfer taxes.

parties agreed to take all necessary actions to cause Onconetix’s board of directors immediately after the Stockholder Approval

(the “Post-Stockholder Approval Onconetix Board”) to consist of five directors, including:

(i) two persons who are designated

by Onconetix and reasonably acceptable to Proteomedix ;

and (ii) three persons who are

designated by Proteomedix and reasonably acceptable to Onconetix .

issuance of the Conversion Shares, amendment of Onconetix’s Amended and Restated Certificate of Incorporation to authorize sufficient

additional shares of Common Stock to permit the Conversion (to the extent required to consummate the PMX Transaction) and the appointment

of the post-Stockholder Approval Onconetix Board requires the approval of Onconetix’s stockholders.

Onconetix agreed to prepare

and file with the SEC a proxy statement (a “Proxy Statement”) for the purpose of soliciting proxies from the stockholders

of Onconetix for the matters to be acted on at the special meeting of the stockholders of Onconetix.

Onconetix also agreed to prepare

a registration statement on Form S-1 or Form S-4 in connection with the registration under the Securities Act of 1933, as amended (the

“Securities Act”), of the issuance of Onconetix Securities to be issued under the Share Exchange Agreement.

Sellers, Onconetix and Proteomedix

agreed to, at the election of Onconetix (which election it has determined not to exercise) or upon the request of CFIUS, submit to CFIUS

a joint declaration or notice with respect to the PMX Transaction as promptly as practicable, but in no event later than sixty (60) days

after the date of the Share Exchange Agreement.

The parties, in cooperation with each other, agreed to use reasonable best efforts to

take all such actions within their respective powers to obtain the approval of CFIUS (“CFIUS Approval”), and, without limiting

the foregoing, the parties agreed to, after reasonable negotiation efforts, agree to such requirements or conditions to mitigate any national

security concerns as may be requested or required by CFIUS in connection with, or as a condition of, CFIUS Approval, including entering

into a mitigation agreement, letter of assurance, or national security agreement, but provided:

(1) the parties shall have no obligation

to (A) propose, negotiate, commit to or effect, by consent decree, hold separate order, agreement or otherwise, the sale, transfer, license,

divestiture or other disposition of, any of the businesses, product lines or assets of Onconetix or any of its affiliates or of the Sellers,

(B) terminate existing, or create new, relationships, contractual rights or obligations of Onconetix or its affiliates, (C) effect any

other change or restructuring of Onconetix or its affiliates, or (D) otherwise take or commit to take any actions reasonably expected

to have a material adverse effect on the operation of the business of the Sellers or that interfere with Onconetix’s ability to

control Proteomedix or Onconetix’s ability to direct the management and policies of the business of Proteomedix in any material

and (2) Proteomedix and the Sellers agreed not take or agree to take any of the foregoing actions without the prior written consent

of Onconetix.

The parties agreed

to use commercially reasonable best efforts to (i) ensure that the application for Onconetix’s change of control (“Nasdaq

Change of Control Application”) is filed with The Nasdaq Stock Market LLC (“Nasdaq”) and (ii) to respond to any questions

from Nasdaq with respect to the Nasdaq Change of Control Application promptly following receipt of such questions, but in no event later

than ten (10) business days following receipt of such questions.

During the time between

the Share Exchange Closing and the Conversion, Onconetix also agreed, and agreed to cause its Subsidiaries, to conduct their

respective businesses in the ordinary course of business in all material respects and agreed to covenants regarding operation of

their respective businesses, including covenants related to (i) amendments to Onconetix’s organizational documents;

recapitalization of Onconetix’s equity interests;

(iii) issuance of additional securities;

(iv) incurrence of additional

indebtedness;

(v) material changes to tax elections;

(vi) amendments or termination of material contracts;

(vii) records and books;

(viii) establishment of any Subsidiary or entry into a new line of business;

(ix) maintenance of insurance policies;

(x) revaluation

of material assets or material changes in accounting methods, principles or policies except to the extent to comply with U.S.

(xi) waiver or settlement of any claim, action or proceeding, other than waivers not in excess of $500,000;

(xii) acquisition of

equity interests or assets, or any other form of business combination, outside of the ordinary course of business;

(xiii) capital

expenditures in excess of $500,000 individually or $1,000,000 in the aggregate;

(xiv) adoption of a plan of liquidation,

dissolution, merger, consolidation, restructuring, recapitalization or other reorganization;

(xv) voluntary incurrence of

any liability or obligation in excess of $500,000 individually or $1,000,000 in the aggregate other than pursuant to the terms of a

Contract in existence as of the date of the Share Exchange Agreement or entered into in the ordinary course of business, except in

connection with a Permitted Financing (as defined below);

(xvi) sale, lease, license or other disposition of any material

portion of Onconetix properties, assets or rights;

(xvii) entry into any agreement, understanding or arrangement with

respect to the voting of Common Stock, except in connection with a Permitted Financing;

(xviii) taking any action that

would reasonably be expected to significantly delay or impair the obtaining of any Consents of any Governmental Authority to be

obtained in connection with the Share Exchange Agreement;

or (xix) authorizing or agreeing to do any of the foregoing actions.

Financing” means one or more debt or equity financing transactions consummated by and funded into Onconetix during the time

between the Share Exchange Closing and the Conversion resulting in aggregate gross proceeds of no greater than $25 million.

Governing Law

The Share Exchange Agreement

is governed by the laws of the State of Delaware.

Terms of the Series B Preferred

Stockholder Approval, each share of Series B Preferred Stock shall automatically convert into 100 shares of Common Stock in accordance

with the terms of the Certificate of Designation, Preferences and Rights of Series B Preferred Stock (the “Series B Certificate

of Designation”) (the “Conversion”).

If Stockholder Approval is not obtained by January 1, 2025, Onconetix shall

be obligated to cash settle the Series B Preferred Stock, as described below.

The terms of the Series B Preferred Stock, as described

in the Series B Certificate of Designation, are as follows:

shares of Series B Preferred Stock carry no voting rights except:

(i) with respect to the election of the Proteomedix Director

(as described below) and (ii) that the affirmative vote of the holders of a majority of the outstanding shares of Series

B Preferred Stock (the “Majority Holders”), acting as a single class, shall be necessary to (A) alter or change

adversely the powers, preferences or rights given to the Series B Preferred Stock, (B) alter or amend the Series B Certificate

of Designation, or amend or repeal any provision of, or add any provision to, Onconetix’s Amended and Restated Certificate of Incorporation

or bylaws, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for

the benefit of the Series B Preferred Stock, (C) issue further shares of Series B Preferred Stock or increase or decrease (other

than by conversion) the number of authorized shares of Series B Preferred Stock, or (D) authorize or create any class or series of

stock, or issue shares of any class or series of stock, that has powers, preferences or rights senior to the Series B Preferred Stock

The Majority Holders, voting exclusively and as a separate class, shall be entitled to elect one

(1) director of Onconetix.

Any director elected as provided in the preceding sentence may be removed without cause by, and only by,

the affirmative vote of the holders of the Series B Preferred Stock.

If the holders of Series B Preferred Stock fail to elect a director,

then any directorship not so filled shall remain vacant until such time as the holders of the Series B Preferred Stock elect a person

to fill such directorship;

and no such directorship may be filled by stockholders of Onconetix other than by the holders of Series B Preferred

At any meeting held for the purpose of electing a director, the presence in person or by proxy of the holders of a majority of

the outstanding shares of Series B Preferred Stock shall constitute a quorum for the purpose of electing such director.

On February 6,

2024, the Majority Holders appointed Thomas Meier, PhD, to the Board.

of Series B Preferred Stock are not redeemable by Onconetix.

Upon a liquidation, dissolution or winding-up of Onconetix, whether voluntary or involuntary

(a “Liquidation”), the holders of Series B Preferred Stock shall be entitled to receive out of the assets, whether capital

or surplus, of Onconetix the same amount that a holder of Common Stock would receive if such Holder’s Series B Preferred Stock were

fully converted to Common Stock at the Conversion Ratio (as defined below) plus an additional amount equal to any dividends declared but

unpaid to such shares, which amounts shall be paid pari passu with all holders of Common Stock.

holders of the Series B Preferred Stock shall be entitled to receive, dividends on shares of Series B Preferred Stock (on an as-if-converted-to-common-stock basis)

equal to and in the same form, and in the same manner, as dividends (other than dividends on shares of the Common Stock payable in the

form of Common Stock) actually paid on shares of the Common Stock when, as and if such dividends (other than dividends payable in the

form of Common Stock) are paid on shares of the Common Stock.

Stockholder Approval, each share of Series B Preferred Stock shall be converted into shares of Common Stock (the “Conversion Shares”)

at a ratio of 100 Conversion Shares for each share of Series B Preferred Stock (the “Conversion Ratio”).

All shares of Series

B Preferred Stock shall automatically and without any further action required be converted into Conversion Shares at the Conversion Ratio

upon the latest date on which (i) Onconetix has received the Stockholder Approval with respect to the issuance of all of the shares

of Common Stock issuable upon Conversion in excess of 20% of the issued and outstanding Common Stock on the Share Exchange Closing Date

and (ii) Onconetix has effected an increase in the number of shares of Common Stock authorized under its Amended and Restated Certificate

of Incorporation, to the extent required to consummate the PMX Transaction.

Cash Settlement .

at any time after the earlier of the date of the Stockholder Approval or January 1, 2025 (the earliest such date, the “Cash Settlement

Date”), Onconetix (x) has obtained the Stockholder Approval but fails to or has failed to deliver to a holder certificate or certificates

representing the Conversion Shares, or deliver documentation of book entry form of (or cause its transfer agent to electronically deliver

such evidence) Conversion Shares on or prior to the fifth business day after the date of the Stockholder Approval, or (y) has failed to

obtain the Stockholder Approval, Onconetix shall, in either case, at the request of the holder setting forth such holder’s request

to cash settle a number of shares of Series B Preferred Stock, pay to such holder an amount in cash equal to (i) the Fair Value (as defined

below) of the shares of Series B Preferred Stock set forth in such request multiplied by (ii) the Conversion Ratio in effect on the trading

day on which the request is delivered to Onconetix, with such payment to be made within two (2) business days from the date of the request

by the holder, whereupon, after payment in full thereon by Onconetix, Onconetix’s obligations to deliver such shares underlying

the request shall be extinguished.

“Fair Value” of shares shall be fixed with reference to the last reported closing stock

price on the principal trading market of the Common Stock on which the Common Stock is listed as of the trading day on which the request

is delivered to Onconetix.

Certain Adjustments .

If Onconetix, at any time while the Series B Preferred Stock is outstanding:

(A) pays a stock dividend or otherwise makes a distribution

or distributions payable in shares of Common Stock;

(B) subdivides outstanding shares of Common Stock into a larger number of shares;

or (C) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares, then the

Conversion Ratio shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately

after such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately before such event

(excluding any treasury shares of the Corporation).

If, at any time while the Series B Preferred Stock is outstanding, either (A) Onconetix

effects any merger or consolidation of Onconetix with or into another person or any stock sale to, or other business combination with

or into another person (other than such a transaction in which Onconetix is the surviving or continuing entity and holds at least a majority

of the Common Stock after giving effect to the transaction and its Common Stock is not exchanged for or converted into other securities,

cash or property), (B) Onconetix effects any sale, lease, transfer or exclusive license of all or substantially all of its assets in one

transaction or a series of related transactions, (C) any tender offer or exchange offer (whether by Onconetix or another person) is completed

pursuant to which more than 50% of the Common Stock not held by Onconetix or such person is exchanged for or converted into other securities,

cash or property, or (D) Onconetix effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which

the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental

PMX Transaction”), then, in connection with any such transaction in (A) through (D), the holders of Series B Preferred Stock shall

receive in such transaction, the same kind and amount of securities, cash or property that a holder of Common Stock would receive if such

holder’s Series B Preferred Stock were fully converted to Common Stock, plus an additional amount equal to any dividends declared

but unpaid to such shares, which amounts shall be paid pari passu with all holders of Common Stock in the Fundamental PMX Transaction

(the “Alternate Consideration”).

If holders of Common Stock are given any choice as to the securities, cash or property to

be received in a transaction in (A) through (D), then the holders of Series B Preferred Stock shall be given the same choice as to the

Alternate Consideration it receives in such transaction.

Lock-Up Agreement

Simultaneously

with the execution of the Share Exchange Agreement, the Sellers and the Advisor Parties, as shareholders of Proteomedix, entered into

Lock-Up Agreements (each, a “Lock-Up Agreement”).

Pursuant to each Lock-Up Agreement, each signatory thereto will agree not

to, during the period commencing from the Share Exchange Closing Date and ending on the 6-month anniversary of the date of Stockholder

(i) lend, offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to

purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of,

directly or indirectly, the Exchange Shares or the Conversion Shares, (ii) enter into any swap or other arrangement that transfers

to another, in whole or in part, any of the economic consequences of ownership of the Exchange Shares or the Conversion Shares, or (iii) publicly

disclose the intention to do any of the foregoing, whether any such transaction described in clauses (i), (ii) or (iii) above is to be

settled by delivery of the Exchange Shares or the Conversion Shares or other securities, in cash or otherwise (subject to certain exceptions).

Simultaneously with the

execution of the Share Exchange Agreement, the Sellers and the Advisor Parties, as shareholders of Proteomedix, entered into Lock-Up Agreements

(each, a “Lock-Up Agreement”).

Pursuant to each Lock-Up Agreement, each signatory thereto will agree not to, during the period

commencing from the Share Exchange Closing Date and ending on the 6-month anniversary of the date of Stockholder Approval:

offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option

or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, the

Exchange Shares or the Conversion Shares, (ii) enter into any swap or other arrangement that transfers to another, in whole or in

part, any of the economic consequences of ownership of the Exchange Shares or the Conversion Shares, or (iii) publicly disclose the

intention to do any of the foregoing, whether any such transaction described in clauses (i), (ii) or (iii) above is to be settled by delivery

of the Exchange Shares or the Conversion Shares or other securities, in cash or otherwise (subject to certain exceptions).

Non-Competition and Non-Solicitation Agreement

Simultaneously

with the execution of the Share Exchange Agreement, certain executive officers (each, a “Management Shareholder”) of Proteomedix

each entered into a non-competition and non-solicitation agreement (collectively, the “Non-Competition and Non-Solicitation Agreements”)

Simultaneously with the

execution of the Share Exchange Agreement, certain executive officers (each, a “Management Shareholder”) of Proteomedix each

entered into a non-competition and non-solicitation agreement (collectively, the “Non-Competition and Non-Solicitation Agreements”)

with Onconetix.

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Stockholder Support Agreement

Simultaneously

with the execution of the Share Exchange Agreement, Onconetix, Proteomedix and certain directors of Onconetix who are stockholders of

Onconetix, entered into a Stockholder Support Agreement (the “Stockholder Support Agreement”), pursuant to which, among other

things, each such stockholder of Onconetix has agreed (a) to support the adoption of the Share Exchange Agreement and the approval of

the PMX Transaction, subject to certain customary conditions, and (b) not to transfer any of their subject shares (or enter into any arrangement

Simultaneously with the

execution of the Share Exchange Agreement, Onconetix, Proteomedix and certain directors of Onconetix who are stockholders of Onconetix,

entered into a Stockholder Support Agreement (the “Stockholder Support Agreement”), pursuant to which, among other things,

each such stockholder of Onconetix has agreed (a) to support the adoption of the Share Exchange Agreement and the approval of the PMX

Transaction, subject to certain customary conditions, and (b) not to transfer any of their subject shares (or enter into any arrangement

with respect thereto), subject to certain customary conditions.

Stockholder Subscription

Agreement and Debenture

In connection with the PMX

Transaction, on December 18, 2023, Onconetix entered into a Subscription Agreement (the “Subscription Agreement”) with the

PMX Investor for a private placement of $5.0 million of units (the “Units”), each Unit comprised of (i) one share of Common

Stock and (ii) one pre-funded warrant (collectively, the “Warrants”) to purchase 0.3 shares of Common Stock at an exercise

price of $0.001 per share, for an aggregate purchase price per Unit of $0.25 (the “Purchase Price”).

Additional shares are

issuable to the PMX Investor to the extent the PMX Investor continues to hold Common Stock included in the Units and if the VWAP during

the 270 days following the Share Exchange Closing is less than the Purchase Price, as set forth in the Subscription Agreement.

The offering contemplated

by the Subscription Agreement is expected to close following Stockholder Approval.

Within 30 days after closing of the offering, Onconetix

will file a resale registration statement with the SEC registering the resale of the Common Stock issuable pursuant to the Subscription

Agreement and the Warrants.

January 23, 2024, the Company issued a non-convertible debenture (the “Debenture”) to the PMX Investor in the principal sum

of $5.0 million, the payment of which shall offset the $5 million subscription amount for the Units pursuant to the Subscription Agreement.

Debenture has an interest rate of 4.0% per annum, and the principal and accrued interest are repayable in full upon the earlier of (i)

the closing under the Subscription Agreement and (ii) June 30, 2024.

Stockholder Subscription Agreement and Debenture

In connection with the PMX Transaction, on December

18, 2023, Onconetix entered into a Subscription Agreement (the “Subscription Agreement”) with the PMX Investor for a private

placement of $5.0 million of units (the “Units”), each Unit comprised of (i) one share of Common Stock and (ii) one pre-funded

warrant (collectively, the “Warrants”) to purchase 0.3 shares of Common Stock at an exercise price of $0.04 per share, for

an aggregate purchase price per Unit of $10.00 (the “Purchase Price”).

Additional shares are issuable to the PMX Investor

to the extent the PMX Investor continues to hold Common Stock included in the Units and if the VWAP during the 270 days following the

Share Exchange Closing is less than the Purchase Price, as set forth in the Subscription Agreement.

On January 23, 2024, the Company issued a non-convertible

debenture (the “Altos Debenture”) to the PMX Investor in the principal sum of $5.0 million, the payment of which shall offset

the $5.0 million subscription amount for the Units pursuant to the Subscription Agreement.

The Altos Debenture had

an interest rate of 4.0% per annum, and the principal and accrued interest was originally repayable in full upon the earlier of (i) the

closing under the Subscription Agreement and (ii) June 30, 2024.

Additionally, the $5.0 million subscription amount under the Subscription

Agreement shall be increased by the amount of interest payable under the Debenture.

As of April 5, 2024, a total of $5 million of principal

was outstanding under the Debenture.

On April 19, 2023, the

Company entered into an asset purchase agreement with Veru Inc., a Wisconsin corporation (“Veru”) (the “Veru APA”).

Pursuant to, and subject to the terms and conditions of, the Veru APA, the Company purchased substantially all of the assets related to

Veru’s ENTADFI business.

Agreement shall be increased by the amount of interest payable under the Altos Debenture.

On April 24, 2024, the Altos Debenture was amended

to extend the maturity date to the earlier of (i) the closing under the Subscription Agreement and (ii) October 31, 2024 (the

“Altos Amendment”).

On September 24, 2024, upon obtaining stockholder approval and pursuant to the Subscription Agreement,

the Company issued an aggregate of 513,424 units (the “Units”) to Altos, each Unit comprised of (i) one share of Common Stock

and (ii) one pre-funded warrant (collectively, the “Altos Warrants”) to purchase 0.3 shares of Common Stock at an exercise

price of $0.04 per share.

The Altos Warrants were immediately exercisable at any time on or after the date of issuance and had a term

of exercise of five (5) years from the date of issuance.

The outstanding debt, as per the Altos Debenture agreement, is considered settled

through the unit issuance.

Additional shares are issuable to Altos to the

extent Altos continues to hold Common Stock included in the Units and if the VWAP during the 270 days following closing is less than $10.00,

as set forth in the Subscription Agreement.

On September 24, 2024, Altos exercised all the

Altos Warrants, and the Company issued to Altos an additional 154,027 shares of Common Stock upon such exercise.

On April 19, 2023, the Company entered into

an asset purchase agreement with Veru Inc., a Wisconsin corporation (“Veru”) (the “Veru APA”).

Pursuant to, and

subject to the terms and conditions of, the Veru APA, the Company purchased substantially all of the assets related to Veru’s ENTADFI business.

The transaction closed on April 19, 2023.

The Company purchased substantially

all of Veru’s assets, rights and property related to ENTADFI for a total possible consideration of $100.0 million (as described

The acquisition of ENTADFI capitalizes on the demonstrable success of the FDA-approved drug ENTADFI for treating benign prostatic

hyperplasia and counteracting negative sexual side effects seen in men on alternative BPH therapies.

to the terms of the Veru APA, the Company agreed to provide Veru with initial consideration totaling $20.0 million, consisting of (i)

$6.0 million paid upon the closing of the transaction, (ii) an additional $4.0 million in the form of a non-interest bearing note payable

due on September 30, 2023, and (iii) an additional $10.0 million in the form of two equal (i.e.

each for $5.0 million) non-interest bearing

notes payable, each due on April 19, 2024 and September 30, 2024.

The Company does not currently have cash to pay the notes due on April

19, 2024 and September 30, 2024 and is exploring options to restructure such notes with Veru.

On September 29, 2023, the Company

entered into an amendment (the “Veru Amendment”) of the Veru APA.

Pursuant to the Veru Amendment, the $4.0 million note payable

originally due on September 30, 2023 was deemed paid and fully satisfied upon (1) the payment to Veru of $1 million in immediately available

funds on September 29, 2023, and (2) the issuance to Veru by October 3, 2023 of 3,000 shares of Series A Preferred Stock of the Company.

The terms of the Series A

Preferred Stock are set forth in the Certificate of Designations, which was filed with the State of Delaware on September 29, 2023.

to the Certificate of Designations, each share of Series A Preferred Stock will convert one year from the date of issuance of the Series

A Preferred Stock into that number of shares of the Company’s common stock determined by dividing the Stated Value (as defined in

the Certificate of Designations) of $1,000 per share by the Conversion Price (as defined in the Certificate of Designations) of $0.5254

per share, subject to adjustment as provided in the Certificate of Designations, subject to certain stockholder approval limitations.

The Series A Preferred Stock is entitled to share ratably in any dividends paid on the Company’s common stock (on an as-if-converted-to-common-stock

basis), has no voting rights except as to certain significant matters specified in the Certificate of Designations, and has a liquidation

preference equal to the Stated Value of $1,000 per share plus any accrued but unpaid dividends thereon.

The Series A Preferred Stock is

redeemable in whole or in part at the Company’s option at any time.

The Certificate of Designations authorized the issuance of up

to 10,000 shares of Series A Preferred Stock.

The Series A Preferred Stock

issued to Seller is initially convertible, in the aggregate, into approximately 5,709,935 shares of the Company’s common stock,

subject to adjustment and certain stockholder approval limitations specified in the Certificate of Designations.

The Company is still

in the process of obtaining such shareholder approval.

If the Company does not obtain such stockholder approval, it will not be able to

issue Common Stock in excess of the stockholder approval limitations specified in the Certificate of Designations.

The Company also agreed

to include the shares of common stock issuable upon conversion of the Series A Preferred Stock in the next resale registration statement

filed with the SEC.

Additionally, the terms of

the Veru APA require the Company to pay Veru up to an additional $80.0 million based on the Company’s net sales from the ENTADFI business

after closing.

The Company purchased substantially all of Veru’s

assets, rights and property related to ENTADFI for a total possible consideration of $100.0 million (as described below).

The acquisition

of ENTADFI capitalizes on the demonstrable success of the FDA-approved drug ENTADFI for treating benign prostatic hyperplasia and

counteracting negative sexual side effects seen in men on alternative BPH therapies.

Pursuant to the terms of the Veru APA, the Company

agreed to provide Veru with initial consideration totaling $20.0 million, consisting of (i) $6.0 million paid upon the closing of the

transaction, (ii) an additional $4.0 million in the form of a non-interest bearing note payable due on September 30, 2023, and (iii) an

additional $10.0 million in the form of two equal (i.e.

each for $5.0 million) non-interest bearing notes payable, each due on April 19,

2024 and September 30, 2024.

On April 24, 2024, Veru agreed to forbear its rights and remedies until March 31, 2025, which forbearance

period was further extended until June 30, 2025 by limited waiver on March 31, 2025 and April 24, 2025, with respect to, among other things,

our inability to pay amounts due on April 19, 2024, and on September 19, 2024, Veru agreed to forbear its rights and remedies until June

30, 2025 with respect to, among other things, our inability to pay amounts due on September 30, 2024.

In addition, on November 26, 2024,

the Company and Veru entered into a waiver and amendment to the forbearance agreement, pursuant to which Veru agreed to waive the due

date for payment of applicable Company cash receipt payments generated in October 2024 in consideration for an increase in payments to

be made to Veru out of future financing and strategic transactions through June 30, 2025.

On September 29, 2023, the Company entered into

an amendment (the “Veru Amendment”) of the Veru APA.

Pursuant to the Veru Amendment, the $4.0 million note payable originally

due on September 30, 2023 was deemed paid and fully satisfied upon (1) the payment to Veru of $1.0 million in immediately available funds

on September 29, 2023, and (2) the issuance to Veru by October 3, 2023 of 3,000 shares of Series A Preferred Stock of the Company, which

converted in to 142,749 shares of Common Stock on September 24, 2024.

Additionally, the terms of the Veru APA require

the Company to pay Veru up to an additional $80.0 million based on the Company’s net sales from the ENTADFI business after

The Milestone Payments are payable as follows:

(i) $10.0 million is payable if the Company’s annual net sales

from the ENTADFI business equal or exceed $100.0 million, (ii) $20.0 million is payable if the Company’s annual net sales

from the ENTADFI business equal or exceed $200.0 million, and (3) $50.0 million is payable if annual net sales from the ENTADFI business

(i) $10.0 million is payable if the Company’s annual net sales from

the ENTADFI business equal or exceed $100.0 million, (ii) $20.0 million is payable if the Company’s annual net sales from

the ENTADFI business equal or exceed $200.0 million, and (3) $50.0 million is payable if annual net sales from the ENTADFI business

equal or exceed $500.0 million.

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can be no assurance that the net sales milestones for payment of any of the Milestone Payments will be reached.

Furthermore, in connection

with the transaction, the Company assumed royalty and milestone obligations under an asset purchase agreement for tadalafil-finasteride

combination entered into by Veru and Camargo Pharmaceutical Services, LLC on December 11, 2017.

The Camargo Obligations assumed by the

Company include a 6% royalty on all sales of tadalafil-finasteride and sales milestone payments of up to $22.5 million as follows:

million is payable upon the first time the Company achieves net sales from ENTADFI of $100.0 million during a calendar year, (ii) $7.5

million is payable upon the first time the Company achieves net sales from ENTADFI of $200.0 million during a calendar year, and (3) $10.0

million is payable upon the first time the Company achieves net sales from ENTADFI of $300.0 million during a calendar year.

As noted above, the Company

has determined to temporarily pause its commercialization of ENTADFI, as it considers strategic alternatives.

The Company expects to appoint

a new Chief Executive Officer in the second quarter of 2024, after which the new CEO and the Board will reassess its ENTADFI program in

light of the foregoing and other relevant factors.

On June 13, 2023 (the “Execution

Date”), the Company entered into an asset purchase agreement with the WraSer Seller and Parent (the “WraSer APA”).

to, and subject to the terms and conditions of, the WraSer APA, on the WraSer Closing Date (as defined below) the Company will purchase

six FDA-approved pharmaceutical assets across several indications, including cardiology, otic infections, and pain management (the “WraSer

Under the terms of the WraSer

APA, the Company will purchase the WraSer Assets for (i) $3.5 million in cash at signing of the WraSer APA (the “Signing Cash”);

(ii) $4.5 million in cash on the later of (x) 90 days after the signing of the WraSer APA or (y) the date that all closing conditions

under the WraSer APA are met or otherwise waived (the “WraSer Closing Date”);

(iii) 1.0 million shares of the Company’s

common stock (the “Closing Shares”) issuable on the WraSer Closing Date, and (iv) $500,000 in cash one year from the WraSer

Closing Date.

The closing of the transaction is subject to certain customary closing conditions and the delivery to the Company of financial

statements of WraSer Seller and Parent for the fiscal years ended December 31, 2022 and 2021 audited by a qualified auditor reasonably

acceptable to the Company.

Within 90 days of the WraSer

Closing Date, the Company will use its best efforts to file with the SEC, (at its sole cost and expense,) a registration statement to

register on Form S-3 registering under the Securities Act, the resale of the Closing Shares and will use its best efforts to have the

registration statement declared effective as soon as practicable after filing.

In conjunction with the WraSer

APA, the Company and the WraSer Seller entered into a Management Services Agreement (the “MSA”) on the Execution Date.

to the terms of the MSA, the Company was to act as the manager of the WraSer Seller’s business during the period between the Execution

Date and WraSer Closing Date.

Furthermore, in connection with the transaction,

the Company assumed royalty and milestone obligations under an asset purchase agreement for tadalafil-finasteride combination entered

into by Veru and Camargo Pharmaceutical Services, LLC on December 11, 2017.

The Camargo Obligations assumed by the Company include a 6%

royalty on all sales of tadalafil-finasteride and sales milestone payments of up to $22.5 million as follows:

(i) $5.0 million is

payable upon the first time the Company achieves net sales from ENTADFI of $100.0 million during a calendar year, (ii) $7.5 million

is payable upon the first time the Company achieves net sales from ENTADFI of $200.0 million during a calendar year, and (3) $10.0 million

is payable upon the first time the Company achieves net sales from ENTADFI of $300.0 million during a calendar year.

In light of (i) the time and resources needed

to continue pursuing commercialization of ENTADFI, and (ii) the Company’s cash runway and indebtedness, the Company has abandoned

commercialization of ENTADFI and is working with an investment advisor to assist with the potential sale or other transaction of the ENTADFI

There is currently no plan to resume commercialization of ENTADFI, and as such, if we are not able to consummate a sale or other

transaction of the ENTADFI assets, we may abandon the assets and destroy our inventory of the product.

In addition, as part of cost reduction

efforts and in connection with our initial pause in commercializing ENTADFI, we terminated three employees involved with the ENTADFI program,

effective April 30, 2024, with such individuals to continue assisting the Company on an as-needed, consulting basis.

current circumstances surrounding ENTADFI, at June 30, 2024, the ENTADFI assets were fully impaired.

On June 13, 2023 (the “Execution Date”),

the Company entered into an asset purchase agreement with the WraSer Seller and Parent (the “WraSer APA”).

Pursuant to, and

subject to the terms and conditions of, the WraSer APA, on the WraSer Closing Date (as defined below) the Company will purchase six FDA-approved

pharmaceutical assets across several indications, including cardiology, otic infections, and pain management (the “WraSer Assets”).

Under the terms of the WraSer APA, the Company

will purchase the WraSer Assets for (i) $3.5 million in cash at signing of the WraSer APA (the “Signing Cash”);

million in cash on the later of (x) 90 days after the signing of the WraSer APA or (y) the date that all closing conditions under the

WraSer APA are met or otherwise waived (the “WraSer Closing Date”);

(iii) 1.0 million shares of the Company’s common

stock (the “Closing Shares”) issuable on the WraSer Closing Date, and (iv) $500,000 in cash one year from the WraSer Closing

The closing of the transaction is subject to certain customary closing conditions and the delivery to the Company of financial statements

of WraSer Seller and Parent for the fiscal years ended December 31, 2022 and 2021 audited by a qualified auditor reasonably acceptable

to the Company.

Within 90 days of the WraSer Closing Date, the

Company will use its best efforts to file with the SEC, (at its sole cost and expense,) a registration statement to register on Form S-3

registering under the Securities Act, the resale of the Closing Shares and will use its best efforts to have the registration statement

declared effective as soon as practicable after filing.

In conjunction with the WraSer APA, the Company

and the WraSer Seller entered into a Management Services Agreement (the “MSA”) on the Execution Date.

Pursuant to the terms

of the MSA, the Company was to act as the manager of the WraSer Seller’s business during the period between the Execution Date and

WraSer Closing Date.

During this period, the Company was to make advances to WraSer, if needed to sustain operations.

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terminates on the WraSer Closing Date.

The WraSer APA can be terminated

prior to closing as follows (i) upon agreement with all parties;

(ii) upon breach of contract of either party, uncured within 20 days

If the WraSer APA is terminated upon agreement with all parties or upon uncured breach of contract by the WraSer Seller, the

initial $3.5 million payment is retained by the WraSer Seller.

If it is determined that there is an uncured breach of contract by the

WraSer Seller, and the WraSer APA is terminated, the Company will have an unsecured claim against WraSer for the $3.5 million payment

made by the Company upon execution of the WraSer APA.

The closing of the transaction was subject to various closing conditions, including

submission of the FDA transfer documentation to transfer ownership of the acquired product regulatory approvals to the Company.

On September 26, 2023, WraSer

and its affiliates filed for relief under chapter 11 of the U.S.

The WraSer APA can be terminated prior to closing

as follows (i) upon agreement with all parties;

(ii) upon breach of contract of either party, uncured within 20 days of notice.

WraSer APA is terminated upon agreement with all parties or upon uncured breach of contract by the WraSer Seller, the initial $3.5 million

payment is retained by the WraSer Seller.

If it is determined that there is an uncured breach of contract by the WraSer Seller, and the

WraSer APA is terminated, the Company will have an unsecured claim against WraSer for the $3.5 million payment made by the Company upon

execution of the WraSer APA.

The closing of the transaction was subject to various closing conditions, including submission of the FDA

transfer documentation to transfer ownership of the acquired product regulatory approvals to the Company.

On September 26, 2023, WraSer and its affiliates

filed for relief under chapter 11 of the U.S.

Bankruptcy Code in the Bankruptcy Court.

On October 4, 2023, the parties

agreed to amend the WraSer APA, subject to court approval.

Shortly after its bankruptcy filing, WraSer filed a motion seeking approval

of the WraSer APA as amended.

The amendment, among other things, eliminates the $500,000 post-closing payment due June 13, 2024 and staggers

the $4.5 million cash payment that the Company would otherwise have to pay at closing to:

(i) $2.2 million to be paid at closing, (ii)

$2.3 million, to be paid in monthly installments of $150,000 commencing January 2024 (the “Post-Closing Payment”) and (iii)

789 shares of Series A Preferred Stock to be paid at closing.

The amendment also reduced the number of products we were acquiring by excluding

pain medications and including only (i) Ciprofloxacin 0.3% and Fluocinolone 0.025% Otic Solution, under the trademark OTOVEL and its Authorized

Generic Version approved under US FDA NDA No.

On October 4, 2023, the parties agreed to amend

the WraSer APA, subject to court approval.

Shortly after its bankruptcy filing, WraSer filed a motion seeking approval of the WraSer APA

The amendment, among other things, eliminates the $500,000 post-closing payment due June 13, 2024 and staggers the $4.5 million

cash payment that the Company would otherwise have to pay at closing to:

(i) $2.2 million to be paid at closing, (ii) $2.3 million, to

be paid in monthly installments of $150,000 commencing January 2024 (the “Post-Closing Payment”) and (iii) 789 shares of Series

A Preferred Stock to be paid at closing.

The amendment also reduced the number of products we were acquiring by excluding pain medications

and including only (i) Ciprofloxacin 0.3% and Fluocinolone 0.025% Otic Solution, under the trademark OTOVEL and its Authorized Generic

Version approved under US FDA NDA No.

208251, (ii) Ciprofloxacin 0.2% Otic solution, under the trademark CETRAXAL, and (iii) Vorapaxar

Sulfate tablets under the trademark Zontivity approved under US FDA NDA N204886.

In October 2023, WraSer alerted

us that its sole manufacturer for the active pharmaceutical ingredient (“API”) for Zontivity, the key driver for the WraSer

acquisition, would no longer manufacture the API for Zontivity.

We believe that this development constituted a Material Adverse Effect

under the APA enabling us to terminate the APA and MSA.

On October 20, 2023, we filed a motion for relief from the automatic stay in the

Bankruptcy Court to exercise our termination rights under the WraSer APA, as amended.

On December 18, 2023, the Bankruptcy Court entered

an Agreed Order lifting the automatic stay to enable us to exercise our rights to terminate the APA and the MSA without prejudice to the

parties’ respective rights, remedies, claims, and defenses they had against one another under the APA and MSA.

On December 21, 2023,

we filed a Notice with the Bankruptcy Court terminating the APA and MSA.

WraSer has advised us that it does not believe that a Material

Adverse Event occurred.

Due to the WraSer bankruptcy filing and our status as an unsecured creditor of WraSer, it is also unlikely that

we will recover the $3.5 million Signing Cash or any costs and resources in connection with services provided by the Company under the

In October 2023, WraSer alerted us that its sole

manufacturer for the active pharmaceutical ingredient (“API”) for Zontivity, the key driver for the WraSer acquisition, would

no longer manufacture the API for Zontivity.

We believe that this development constituted a Material Adverse Effect under the APA enabling

us to terminate the APA and MSA.

On October 20, 2023, we filed a motion for relief from the automatic stay in the Bankruptcy Court to

exercise our termination rights under the WraSer APA, as amended.

On December 18, 2023, the Bankruptcy Court entered an Agreed Order

lifting the automatic stay to enable us to exercise our rights to terminate the APA and the MSA without prejudice to the parties’

respective rights, remedies, claims, and defenses they had against one another under the APA and MSA.

On December 21, 2023, we filed

a Notice with the Bankruptcy Court terminating the APA and MSA.

WraSer has advised us that it does not believe that a Material Adverse

Event occurred.

Due to the WraSer bankruptcy filing and our status as an unsecured creditor of WraSer, it is also unlikely that we will

recover the $3.5 million Signing Cash or any costs and resources in connection with services provided by the Company under the WraSer

Business of the Company

Business Model

Proteomedix develops novel

diagnostic tests in a highly regulated field.

Proteomedix’s core competencies include the development of high-quality immunoassays

and management of regulatory affairs.

Our expertise in immunoassay development is the result of a highly specialized workforce that, together

with an external software development company, developed the proprietary software integrated in the company’s lead IVD product,

Our personnel also have extensive experience in implementing and maintaining a state-of-the-art quality management system to

comply with regulatory requirements, including performing clinical studies and managing key opinion leaders (“KOLs”).

experience and expertise in these fields was obtained by hiring experienced personnel as well as through key advisors.

Proteomedix is initially

focusing on seeking to license its intellectual property to third party laboratories.

Sales will be through a specialized distributor

and/or laboratory partner, but Proteomedix will still provide technical customer support to laboratories that offer the testing service

to physicians.

Proteomedix does not have production capabilities built up in-house, and instead outsources manufacturing to a CMO in Germany.

All of the key reagents used in Proteomedix’s IVD kits (i.e., antigens and antibodies) are proprietary and owned exclusively by

Proteomedix, which uses an independent supplier in Germany to produce these reagents and supply them to its CMO.

is an FDA-approved, once daily pill that combines finasteride and tadalafil for the treatment of BPH.

To the extent that we resume

the commercialization of ENTADFI, Onconetix will initially focus on commercializing ENTADFI

through a telemedicine channel.

In July 2023, the Company signed an agreement with UpScriptHealth to generate a robust, online telemedicine

platform to distribute ENTADFI .

Through this platform, UpScriptHealth will support patients

with BPH throughout prescription and coverage process, as well as provide eligible patients access to ENTADFI

mailed directly to their homes.

Additionally, to meet the demands of the supply chain, manufacturing is outsourced to contract manufacturing

organizations (“CMOs”) in the U.S.

The product will be distributed exclusively by Cardinal Health 105, LLC, an Ohio limited

liability company (“Cardinal Health”) as third-party logistics distribution agent for sales of ENTADFI and any other products the parties mutually agree to.

As noted above, the Company has determined to temporarily pause its

commercialization of ENTADFI, as it considers strategic alternatives.

The Company expects to appoint a new Chief Executive Officer in

the second quarter of 2024, after which the new CEO and the Board will reassess its ENTADFI program in light of the foregoing and other

relevant factors.

Proteomedix is seeking to

develop diagnostic, prognostic and predictive tools to enable more efficient cancer management at all stages of disease progression.

Proteomedix’s

tests use proprietary protein biomarkers to address the limitations in current cancer detection, prognosis, and therapy prediction.

addition, Decision Support Systems support the clinical decision-making by integrating different inputs in a risk score (see Figure 1).

Proteomedix develops novel diagnostic tests in

a highly regulated field.

Proteomedix’s core competencies include the development of high-quality immunoassays and management of

regulatory affairs.

Our expertise in immunoassay development is the result of a highly specialized workforce that, together with an external

software development company, developed the proprietary software integrated in the company’s lead IVD product, Proclarix.

Our personnel

also have extensive experience in implementing and maintaining a state-of-the-art quality management system to comply with regulatory

requirements, including performing clinical studies and managing key opinion leaders (“KOLs”).

Our experience and expertise

in these fields was obtained by hiring experienced personnel as well as through key advisors.

Proteomedix is initially focusing on seeking to

license its intellectual property to third party laboratories.

Sales will be through a specialized distributor and/or laboratory partner,

but Proteomedix will still provide technical customer support to laboratories that offer the testing service to physicians.

does not have production capabilities built up in-house, and instead outsources manufacturing to a CMO in Germany.

All of the key reagents

used in Proteomedix’s IVD kits (i.e., antigens and antibodies) are proprietary and owned exclusively by Proteomedix, which uses

an independent supplier in Germany to produce these reagents and supply them to its CMO.

Proteomedix is seeking to develop diagnostic,

prognostic and predictive tools to enable more efficient cancer management at all stages of disease progression.

Proteomedix’s tests

use proprietary protein biomarkers to address the limitations in current cancer detection, prognosis, and therapy prediction.

Decision Support Systems support the clinical decision-making by integrating different inputs in a risk score (see Figure 1).

Product Pipeline

Proclarix is used to indicate

the risk of clinically significant prostate cancer through a risk score derived from a clinical decision support system (Figure 2).

the reagent side it is comprised of two quantitative Enzyme-linked Immunosorbent Assays (“ELISA”) that measure the concentration

of thrombospondin 1 (“THBS1”) and cathepsin D (“CTSD”) in human serum.

The clinical decision support system is

a web-based software running a proprietary algorithm that integrates the values for THBS1 and CTSD, the patient’s age and total

and free PSA levels from third party providers (e.g., Roche Diagnostics, Siemens Healthineers) to calculate a risk score.

Assays and software

algorithm for risk score calculation.

Proclarix is used as an aid in prostate cancer diagnosis as a second-line

test after PSA and DRE testing.

It enables a personalized decision for each patient based on objective risk parameters (4 serum glycoproteins

+ age) to triage between biopsy or a monitoring approach.

Proclarix has been validated and approved for use in men with elevated total

PSA (2.0 to 10.0 ng/mL), a normal DRE not suspicious for cancer and an elevated prostate volume (≥35 mL) (Figure 3).

The Proclarix

decision support tool returns a risk score that can be used as an aid in discriminating between clinically significant (grade group 2

or higher [GG2+]) and insignificant prostate cancer or benign prostate disease.

The risk score of Proclarix gives the physician and patient

actionable information to confidently make decisions when considering the necessity of a prostate biopsy which is required for diagnosis

of prostate cancer.

Proclarix is used to indicate the risk of clinically

significant prostate cancer through a risk score derived from a clinical decision support system (Figure 2).

On the reagent side it is

comprised of two quantitative Enzyme-linked Immunosorbent Assays (“ELISA”) that measure the concentration of thrombospondin

1 (“THBS1”) and cathepsin D (“CTSD”) in human serum.

The clinical decision support system is a web-based software

running a proprietary algorithm that integrates the values for THBS1 and CTSD, the patient’s age and total and free PSA levels from

third party providers (e.g., Roche Diagnostics, Siemens Healthineers) to calculate a risk score.

Assays and software algorithm for risk

score calculation.

Proclarix is used as an aid in prostate cancer

diagnosis as a second-line test after PSA and DRE testing.

It enables a personalized decision for each patient based on objective risk

parameters (4 serum glycoproteins + age) to triage between biopsy or a monitoring approach.

Proclarix has been validated and approved

for use in men with elevated total PSA (2.0 to 10.0 ng/mL), a normal DRE not suspicious for cancer and an elevated prostate volume (≥35

mL) (Figure 3).

The Proclarix decision support tool returns a risk score that can be used as an aid in discriminating between clinically

significant (grade group 2 or higher [GG2+]) and insignificant prostate cancer or benign prostate disease.

The risk score of Proclarix

gives the physician and patient actionable information to confidently make decisions when considering the necessity of a prostate biopsy

which is required for diagnosis of prostate cancer.

Finding clinically significant prostate

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Clinical Studies

Proteomedix’s biomarkers

have been tested in clinical studies including a total of more than 2,000 patient samples from multiple clinical sites, and results have

been published in peer-reviewed journals.

We believe these results demonstrate that Proclarix is a valuable test identifying clinically

significant prostate cancer thereby facilitating informed decision making for patients considering a prostate biopsy.

Proteomedix’s biomarkers have been tested

in clinical studies including a total of more than 2,000 patient samples from multiple clinical sites, and results have been published

in peer-reviewed journals.

We believe these results demonstrate that Proclarix is a valuable test identifying clinically significant prostate

cancer thereby facilitating informed decision making for patients considering a prostate biopsy.

Validation Study .

study leading to the granting of regulatory approval in Europe included 955 samples collected at two clinical sites, a screening center

in Innsbruck, Austria, as well as a referral center in Hamburg, Germany.

The results of this study demonstrated that by using the Proclarix

test the burden of unneeded biopsies could have been lowered by approximately 43% — twice as much compared to clinical comparators

percent free PSA (“%fPSA”) or PSA density.

High sensitivity of 90% and a negative predictive value of 95% for clinically significant

prostate cancer indicated that the diagnosis of very few cancers would have been delayed.

The study leading to

the granting of regulatory approval in Europe included 955 samples collected at two clinical sites, a screening center in Innsbruck, Austria,

as well as a referral center in Hamburg, Germany.

The results of this study demonstrated that by using the Proclarix test the burden of

unneeded biopsies could have been lowered by approximately 43% — twice as much compared to clinical comparators percent free PSA

(“%fPSA”) or PSA density.

High sensitivity of 90% and a negative predictive value of 95% for clinically significant prostate

cancer indicated that the diagnosis of very few cancers would have been delayed.

PROPOSe Study.

PROPOSe study evaluated the accuracy of Proclarix in prostate biopsy decision making.

Ten clinical sites in Germany, Denmark and Austria

prospectively enrolled 457 men presenting for prostate biopsy.

Proclarix detected clinically significant cancer with high sensitivity

above 90% and reliably ruled out patients with no or indolent cancer with a negative predictive value greater than 90%.

When the biopsy

performed was guided by magnetic resonance imaging (“MRI”), both sensitivity (97%) and negative predictive value (96%) were

Importantly, Proclarix was significantly superior to the current clinical standard, %fPSA, in ruling out unneeded biopsies

14%) and the primary study endpoint was met (p-value < 0.005).

The PROPOSe study evaluated

the accuracy of Proclarix in prostate biopsy decision making.

Ten clinical sites in Germany, Denmark and Austria prospectively enrolled

457 men presenting for prostate biopsy.

Proclarix detected clinically significant cancer with high sensitivity above 90% and reliably

ruled out patients with no or indolent cancer with a negative predictive value greater than 90%.

When the biopsy performed was guided

by magnetic resonance imaging (“MRI”), both sensitivity (97%) and negative predictive value (96%) were even higher.

Proclarix was significantly superior to the current clinical standard, %fPSA, in ruling out unneeded biopsies (22% vs.

14%) and the primary

study endpoint was met (p-value < 0.005).

Naples Study.

study evaluated Proclarix and the Prostate Health Index (phi) test from Beckman Coulter, Inc.

for predicting clinically significant prostate

cancer in a total of 344 men.

A two-center study evaluated

Proclarix and the Prostate Health Index (phi) test from Beckman Coulter, Inc.

for predicting clinically significant prostate cancer in

a total of 344 men.

Both Proclarix and the phi test accurately predicted clinically significant cancer.

When using predefined

cut-offs recommended by the manufacturers, Proclarix (cut-off 10) outperformed phi (cut-off 27) in terms of specificity and positive predictive

When using predefined cut-offs

recommended by the manufacturers, Proclarix (cut-off 10) outperformed phi (cut-off 27) in terms of specificity and positive predictive

value (p < 0.002) at similar sensitivities.

Clinical evaluation of

Results of multiple clinical evaluations using Proclarix together with MRI for prostate cancer diagnosis showed that Proclarix

can be used in a broad range of patients without the need for prostate volume restriction.

The aim of one such evaluation was the assessment

of the diagnostic performance of Proclarix in combination with MRI.

Blood samples from 721 men undergoing MRI followed by biopsy at two

clinical centers were analyzed.

The combined Proclarix-MRI score’s specificity (68%) was significantly (p<0.001) better compared

to Proclarix (27%) or MRI (28%) alone for diagnosing clinically significant prostate cancer.

Importantly, Proclarix by itself was found

to be useful in men with indetermined imaging results by outperforming PSA density in terms of specificity (25% vs 13%, p=0.004) at 100%

In another evaluation of a study of 517 men with suspected prostate cancer, Proclarix performed well in accurately diagnosing

prostate cancer in the overall study population and in a subset of men with elevated PSA 2 to 10 ng/mL, prostate volume ≥35 mL, and

normal DRE (n=281).

In addition, a sub-analysis of was performed specifically analyzing 169 men with an indeterminate MRI result and Proclarix

was more accurate in selecting appropriate candidates for prostate biopsy when compared to PSA density and online risk calculators.

third evaluation describes which patients with suspected prostate cancer can benefit from Proclarix after MRI and concluded that Proclarix

outperformed PSA density in the selection of candidates for prostate biopsy, especially in men with PI-RADS 1-3.

In these studies, Proclarix

proved to be effective before, after, and together with MRI assessment to identify men at risk of clinically significant prostate cancer

and those who can safely avoid biopsy.

Proclarix in combination with MRI reliably predicted clinically significant prostate cancer and

ruled out men with no or indolent cancer.

Clinical evaluation of Proclarix .

of multiple clinical evaluations using Proclarix together with MRI for prostate cancer diagnosis showed that Proclarix can be used in

a broad range of patients without the need for prostate volume restriction.

The aim of one such evaluation was the assessment of the diagnostic

performance of Proclarix in combination with MRI.

Blood samples from 721 men undergoing MRI followed by biopsy at two clinical centers

were analyzed.

The combined Proclarix-MRI score’s specificity (68%) was significantly (p<0.001) better compared to Proclarix

(27%) or MRI (28%) alone for diagnosing clinically significant prostate cancer.

Importantly, Proclarix by itself was found to be useful

in men with indetermined imaging results by outperforming PSA density in terms of specificity (25% vs 13%, p=0.004) at 100% sensitivity.

In another evaluation of a study of 517 men with suspected prostate cancer, Proclarix performed well in accurately diagnosing prostate

cancer in the overall study population and in a subset of men with elevated PSA 2 to 10 ng/mL, prostate volume ≥35 mL, and normal DRE

In addition, a sub-analysis of was performed specifically analyzing 169 men with an indeterminate MRI result and Proclarix was

more accurate in selecting appropriate candidates for prostate biopsy when compared to PSA density and online risk calculators.

evaluation describes which patients with suspected prostate cancer can benefit from Proclarix after MRI and concluded that Proclarix outperformed

PSA density in the selection of candidates for prostate biopsy, especially in men with PI-RADS 1-3.

In these studies, Proclarix proved

to be effective before, after, and together with MRI assessment to identify men at risk of clinically significant prostate cancer and

those who can safely avoid biopsy.

Proclarix in combination with MRI reliably predicted clinically significant prostate cancer and ruled

out men with no or indolent cancer.

Clinical Guidelines

Guidelines assist clinicians

in making informed treatment decisions, taking into account the available scientific data.

To reduce the number of negative biopsies in

asymptomatic men with a PSA level between 3–10 ng/mL and a normal DRE, the EAU guidelines recommend using an online risk-calculator

that is correctly calibrated to the population prevalence, MRI of the prostate or an additional biomarker test such as Proclarix.

EAU guidelines specifically state that Proclarix has been correlated with the detection of significant prostate cancer, notably in case

of equivocal MRI results.

Proclarix was also included

in the 2023 AUA/SUO clinical practice guideline.

The AUA/SUO guideline covers recommendations on the early detection of prostate cancer

and provides a framework to facilitate clinical decision-making in the implementation of prostate cancer screening, biopsy, and follow-up.

The AUA/SUO guideline concludes that the evaluation of prostate cancer risk should be focused on the detection of clinically significant

prostate cancer (GG2+).

The AUA/SUO guidelines advice that use of laboratory biomarkers such as Proclarix, prostate MRI, and biopsy techniques

may improve detection and safety when a prostate biopsy is deemed necessary following prostate cancer screening.

The inclusion of Proclarix

in the European and U.S.

Guidelines assist clinicians in making informed

treatment decisions, taking into account the available scientific data.

To reduce the number of negative biopsies in asymptomatic men

with a PSA level between 3–10 ng/mL and a normal DRE, the EAU guidelines recommend using an online risk-calculator that is correctly

calibrated to the population prevalence, MRI of the prostate or an additional biomarker test such as Proclarix.

The EAU guidelines specifically

state that Proclarix has been correlated with the detection of significant prostate cancer, notably in case of equivocal MRI results.

Proclarix was also included in the 2023 AUA/SUO

clinical practice guideline.

The AUA/SUO guideline covers recommendations on the early detection of prostate cancer and provides a framework

to facilitate clinical decision-making in the implementation of prostate cancer screening, biopsy, and follow-up.

The AUA/SUO guideline

concludes that the evaluation of prostate cancer risk should be focused on the detection of clinically significant prostate cancer (GG2+).

The AUA/SUO guidelines advice that use of laboratory biomarkers such as Proclarix, prostate MRI, and biopsy techniques may improve detection

and safety when a prostate biopsy is deemed necessary following prostate cancer screening.

The inclusion of Proclarix in the European and

guidelines is an important recognition of the clinical value of Proclarix.

It serves as a validation for the

clinical utility and importance of using Proclarix in the detection of prostate cancer and we believe it will lead to broader acceptance

of Proclarix and accelerate payor adoption.

It serves as a validation for the clinical utility and

importance of using Proclarix in the detection of prostate cancer and we believe it will lead to broader acceptance of Proclarix and accelerate

payor adoption.

Product Quality and Safety

Proteomedix’s quality

management system is ISO (International Organization for Standardization) 13485:2016 certified for the “Design and development,

production and distribution of in-vitro diagnostic reagents and stand-alone software for prostate cancer management”.

is annually audited by TÜV SÜD Product Service GmbH, an internationally recognized notified body headquartered in Germany.

certification is a prerequisite for obtaining CE-mark, the regulatory clearance requirement for market access, recognized by the European

Commission (“EC”) in the IVDR.

Under the IVDR, diagnostic products are categorized under a new system of one of four classifications

from class A (low risk) to class D (highest risk).

Proclarix, as class C device, was assessed by TÜV SÜD for conformity resulting

in IVDR certification.

The certification of Proclarix under the new IVDR demonstrates compliance to the highest quality standard currently

in force for tests used in screening, diagnosis, or staging of cancer.

Proteomedix is marketing Proclarix as one of the first IVDR compliant

cancer tests demonstrating the commitment to highest analytical and clinical performance.

Prosgard as a clinical support

system is designed to aggregate multimodal information in an effort to develop a patient centric diagnostic approach.

The vision for Prosgard

is to add more information to the existing Proclarix risk score in the future such as other biomarkers, clinical information, or MRI imaging

data to provide an even more powerful tool to guide the patient’s diagnostic journey.

Proteomedix’s quality management system

is ISO (International Organization for Standardization) 13485:2016 certified for the “Design and development, production and distribution

of in-vitro diagnostic reagents and stand-alone software for prostate cancer management”.

Proteomedix is annually audited by TÜV

SÜD Product Service GmbH, an internationally recognized notified body headquartered in Germany.

ISO certification is a prerequisite

for obtaining CE-mark, the regulatory clearance requirement for market access, recognized by the European Commission (“EC”)

Under the IVDR, diagnostic products are categorized under a new system of one of four classifications from class A (low risk)

to class D (highest risk).

Proclarix, as class C device, was assessed by TÜV SÜD for conformity resulting in IVDR certification.

The certification of Proclarix under the new IVDR demonstrates compliance to the highest quality standard currently in force for tests

used in screening, diagnosis, or staging of cancer.

Proteomedix is marketing Proclarix as one of the first IVDR compliant cancer tests

demonstrating the commitment to highest analytical and clinical performance.

Prosgard as a clinical support system is designed

to aggregate multimodal information in an effort to develop a patient centric diagnostic approach.

The vision for Prosgard is to add more

information to the existing Proclarix risk score in the future such as other biomarkers, clinical information, or MRI imaging data to

provide an even more powerful tool to guide the patient’s diagnostic journey.

Prognosis (Px)

A subset of Proteomedix’s

protein biomarkers also correlate with prostate cancer prognosis.

Radical prostatectomy provides excellent cancer control of clinically

localized prostate cancer.

A subset of Proteomedix’s protein biomarkers

also correlate with prostate cancer prognosis.

Radical prostatectomy provides excellent cancer control of clinically localized prostate

However, approximately 30% of surgically treated men will experience cancer recurrence within 10 years of surgery.

Several clinical parameters and the combination thereof (e.g., the Cancer of the Prostate Risk Assessment (“CAPRA”) score)

have been shown to be reliable predictors of treatment failure.

Still, there is a compelling need to identify novel markers that are specifically

linked to the presence of biologically aggressive prostate cancer for improved prediction of outcome in populations with moderately elevated

Several clinical

parameters and the combination thereof (e.g., the Cancer of the Prostate Risk Assessment (“CAPRA”) score) have been shown

to be reliable predictors of treatment failure.

Still, there is a compelling need to identify novel markers that are specifically linked

to the presence of biologically aggressive prostate cancer for improved prediction of outcome in populations with moderately elevated

A novel serum biomarker quintet that improves disease prognosis

in men with confirmed prostate cancer

A clinical evaluation of a

multivariable model comprising fibronectin 1, galectin-3-binding protein, lumican, matrix metalloprotease 9, thrombospondin-1 and PSA

together with clinical Grade Group (GG) and clinical stage (cT) was performed.

The prognostic utility of the proposed marker

combination was assessed in serum samples from 557 men with confirmed localized prostate cancer.

The analysis showed that the proposed

model had a better prediction for disease progression and thus prostate cancer aggressiveness compared to the “CAPRA” score.

This novel biomarker test has the potential to improve prostate cancer patient management by indicating who needs active treatment.

contrast to the existing biomarker tests from competitors that all need tissue specimens, the test is non-invasive and can be directly

measured in patients’ blood samples.

A clinical evaluation of a multivariable model

comprising fibronectin 1, galectin-3-binding protein, lumican, matrix metalloprotease 9, thrombospondin-1 and PSA together with clinical

Grade Group (GG) and clinical stage (cT) was performed.

The prognostic utility of the proposed marker combination was assessed in serum

samples from 557 men with confirmed localized prostate cancer.

The analysis showed that the proposed model had a better prediction for

disease progression and thus prostate cancer aggressiveness compared to the “CAPRA” score.

This novel biomarker test has the

potential to improve prostate cancer patient management by indicating who needs active treatment.

In contrast to the existing biomarker

tests from competitors that all need tissue specimens, the test is non-invasive and can be directly measured in patients’ blood

Prediction (Rx)

Proteomedix’s protein

biomarkers further have the potential to predict the response of patients treated with drugs that inhibit the PI3K signaling pathway.

Proteomedix analyzed the blood of patients participating in a Phase II trial (SAKK 08/08).

The patients were treated with Novartis AG’s

Everolimus, a drug inhibiting the PI3K pathway signaling by blocking mTOR.

A subset of 8 serum biomarkers could individually predict reaching

the primary endpoint (progression free survival at 12 weeks) with an accuracy of at least 75%.

Proteomedix’s protein biomarkers further

have the potential to predict the response of patients treated with drugs that inhibit the PI3K signaling pathway.

Proteomedix analyzed

the blood of patients participating in a Phase II trial (SAKK 08/08).

The patients were treated with Novartis AG’s Everolimus, a

drug inhibiting the PI3K pathway signaling by blocking mTOR.

A subset of 8 serum biomarkers could individually predict reaching the primary

endpoint (progression free survival at 12 weeks) with an accuracy of at least 75%.

Decision Support Systems

Recent initiatives are incorporating

as well as interpreting clinical information from various sources (e.g., biomarker information and other patient data) enabling physicians

to have more comprehensive biochemical insight into each patient’s disease in order to determine the optimal treatment plan for

Collating multiple data sources in clinical workflows allows precision-medicine resulting in cost-effective diagnostics and

Recent initiatives are incorporating as well as

interpreting clinical information from various sources (e.g., biomarker information and other patient data) enabling physicians to have

more comprehensive biochemical insight into each patient’s disease in order to determine the optimal treatment plan for the patient.

Collating multiple data sources in clinical workflows allows precision-medicine resulting in cost-effective diagnostics and therapies.

Proclarix already consists of a decision support system integrating different values in a risk score.

In the future, additional

clinical information like the results of an MRI scan could be integrated in the report to provide a complete picture of the diagnostic situation

In the future, additional clinical

information like the results of an MRI scan could be integrated in the report to provide a complete picture of the diagnostic situation

of the patient to enable effective patient management.

is an FDA-approved, once daily pill that combines finasteride and tadalafil for the treatment of BPH.

BPH, a condition in men

in which the prostate gland is enlarged but not cancerous, is a common problem that affects the quality of life in approximately

half of men over the age of 50 and 90% of men over the age of 85.

Men with BPH suffer from challenges with urination flow,

frequency, and urgency, and about 70% of men with BPH also experience sexual dysfunction.

In 2022, there was approximately 44

million total prescriptions and 20 million new prescriptions related to BPH symptoms.

is an oral, once daily treatment for BPH that combines finasteride, a 5α- reductase inhibitor, and tadalafil, a

phosphodiesterase 5 (“PDE5”) inhibitor, offering a more effective treatment option compared to other available

Clinical trials have shown that ENTADFI is more effective in treating BPH

symptoms, including urinary frequency, urgency, weak stream, and difficulty initiating or maintaining urination, compared to

finasteride monotherapy.

Additionally, ENTADFI has demonstrated a favorable safety

profile, with fewer adverse sexual side effects compared to finasteride.

reduces potential adverse sexual side effects, making it preferred choice for men seeking relief from BPH symptoms without

compromising their sexual health.

ENTADFI has received FDA approval for the indication

of initiating treatment of the signs and symptoms of BPH in men with enlarged prostate for up to 26 weeks.

Commercialization Strategy

Proclarix is currently not

reimbursed in Europe, and therefore patients pay for Proclarix out of pocket.

We intend to pursue reimbursement from public and private

payors in key European markets to secure broad adoption in the longer term.

The market introduction of Proclarix has followed a two-phased

first a market preparation phase in which we reach out to key opinion leaders in selected European countries to solicit their

support for Proclarix, followed by a market development phase where we begin commercializing Proclarix in those markets with focused marketing

and sales activities to urologists and general practitioners.

We intend to secure access to testing through partnerships with reference

diagnostic labs.

We have initiated outreach to commercial laboratories and hospital laboratories that are routinely serving study sites

and academic collaboration partners, and have established pilots with laboratories in Switzerland, Germany, Italy, and the United Kingdom.

In the United States, Proteomedix

entered into an exclusive partnership with Labcorp in 2023 pursuant to which Labcorp has the exclusive right to develop and commercialize

Proclarix, and other products developed by Labcorp using Proteomedix’s intellectual property covered by the license, in the United

States for identification, screening, staging, predisposition, diagnosis, prognosis, monitoring, prevention or treatment selection with

respect to prostate cancer.

In consideration for granting Labcorp an exclusive license, Proteomedix received an upfront license fee and

is entitled to royalty and milestone payments based upon sales of licensed products or services in the United States.

Labcorp is wholly

responsible for the cost of research, development and commercialization of licensed products or services in the United States but has

the right to offset a portion of those costs against future royalty and milestone payments otherwise due to Proteomedix.

As noted above, the Company has determined to temporarily pause its

commercialization of ENTADFI, as it considers strategic alternatives.

The Company expects to appoint a new Chief Executive Officer in

the second quarter of 2024, after which the new CEO and the Board will reassess its ENTADFI program in light of the foregoing and other

relevant factors.

To the extent that we resume

the commercialization of ENTADFI, in order to provide ENTADFI to patients suffering from BPH, we have established relationships with key

vendors to distribute, commercialize, and market ENTADFI.

On the distribution side, we have partnered with Cardinal Health to serve as

our third-party logistics provider.

Under our agreement, Cardinal Health with serve as our exclusive distributor of ENTADFI, and we intend

to leverage its title model services, allowing us to utilize its state wholesale pharmacy license portfolio to ship ENTADFI to states

where we do not currently hold a license.

Utilizing Cardinal Health’s title model program will maximize access for ENTADFI across

while we pursue licenses for Onconetix.

In the commercialization

plan for ENTADFI, we have partnered with UpScriptHealth to generate an online telemedicine platform where patients with BPH can interact

with a healthcare provider, receive support through the prescription process, as well as provide eligible patients access to ENTADFI mailed

directly to their homes.

UpScriptHealth is a leading provider of telehealth services, has over 20 years of experience generating effective,

web-based campaigns for life science companies with a wide range of services, including virtual prescribing, coverage and benefit support,

as well as long-term adherence support.

In recent years, telehealth has become increasingly popular for both patients and providers and

represents a significant opportunity for the commercialization of ENTADFI.

Through telemedicine, we will be able to provide BPH patients

with access to ENTADFI without another trip to a doctor’s office or pharmacy, which can be incredibly burdensome for patients and

provide them with a time-saving option for receiving medication.

The current commercialization

strategy for ENTADFI centers around our telemedicine platform, and we believe this may be more cost effective versus more traditional

sales representative approaches that target physicians.

We plan to generate targeted marketing and advertising materials to support our

web platform, which will drive traffic to the site and maximize ENTADFI sales.

Under the current sales model, we will be offering ENTADFI

for cash-paying patients and do not currently plan on seeking reimbursement from insurance or Medicare and Medicaid channels.

may change in the future, we believe there is a significant market opportunity for patients to use the web portal to access ENTADFI and

receive medication by cash pay.

Proclarix is currently not reimbursed in Europe,

and therefore patients pay for Proclarix out of pocket.

We intend to pursue reimbursement from public and private payors in key European

markets to secure broad adoption in the longer term.

The market introduction of Proclarix has followed a two-phased approach:

market preparation phase in which we reach out to key opinion leaders in selected European countries to solicit their support for Proclarix,

followed by a market development phase where we begin commercializing Proclarix in those markets with focused marketing and sales activities

to urologists and general practitioners.

We intend to secure access to testing through partnerships with reference diagnostic labs.

have initiated outreach to commercial laboratories and hospital laboratories that are routinely serving study sites and academic collaboration

partners, and have established pilots with laboratories in Switzerland, Germany, Italy, and the United Kingdom.

In the United States, Proteomedix entered into

an exclusive partnership with LabCorp in 2023 pursuant to which LabCorp has the exclusive right to develop and commercialize Proclarix,

and other products developed by LabCorp using Proteomedix’s intellectual property covered by the license, in the United States for

identification, screening, staging, predisposition, diagnosis, prognosis, monitoring, prevention or treatment selection with respect to

prostate cancer.

In consideration for granting LabCorp an exclusive license, Proteomedix received an upfront license fee and is entitled

to royalty and milestone payments based upon sales of licensed products or services in the United States.

LabCorp is wholly responsible

for the cost of research, development and commercialization of licensed products or services in the United States but has the right to

offset a portion of those costs against future royalty and milestone payments otherwise due to Proteomedix.

Sales, Distribution, Marketing and Advertising

In clinical diagnostics high

throughput assay parameters like PSA typically are performed on closed, fully integrated systems that use proprietary reagents.

systems are provided by a few mid-sized to large diagnostic companies (e.g., Roche Diagnostics, Abbott Laboratories, Siemens Healthineers

AG, DiaSorin S.p.A.) with a worldwide distribution network.

Reagents are provided in a closed-system approach, access is through collaboration

agreements only.

In clinical diagnostics high throughput assay

parameters like PSA typically are performed on closed, fully integrated systems that use proprietary reagents.

Integrated systems are

provided by a few mid-sized to large diagnostic companies (e.g., Roche Diagnostics, Abbott Laboratories, Siemens Healthineers AG, DiaSorin

S.p.A.) with a worldwide distribution network.

Reagents are provided in a closed-system approach, access is through collaboration agreements

Business development discussions with multiple diagnostic companies have already started.

Lower volume parameters are

run on smaller, open systems that are used in laboratories for tests with lower throughput to complement the test menu.

Access to these

open systems presents an option for direct commercialization in selected markets during market introduction.

First, the goal is to establish

commercial proof of concept and drive initial market adoption.

Market adoption of a new test

is driven by KOLs and clinical urology centers.

Publication of clinical studies proving the medical benefit of the test and KOLs advocating

it at scientific conferences will trigger the usage by other physicians.

Additionally, demand is created through urology centers specialized

in prostate cancer that cover a large geographical area.

Their influence on other urologists and general practitioners in the region will

lead to multiplier effects.

Diagnostic testing in clinical urology centers is provided either by an in-house hospital laboratory or a

commercial laboratory where Proclarix will be implemented.

General practitioners recruit

patients for screening and decide whether to refer a patient to a specialist.

They have an important gatekeeper role and Proclarix is

a helpful tool for this triage.

Lower volume parameters are run on smaller, open

systems that are used in laboratories for tests with lower throughput to complement the test menu.

Access to these open systems presents

an option for direct commercialization in selected markets during market introduction.

First, the goal is to establish commercial proof

of concept and drive initial market adoption.

Market adoption of a new test is driven by KOLs

and clinical urology centers.

Publication of clinical studies proving the medical benefit of the test and KOLs advocating it at scientific

conferences will trigger the usage by other physicians.

Additionally, demand is created through urology centers specialized in prostate

cancer that cover a large geographical area.

Their influence on other urologists and general practitioners in the region will lead to

multiplier effects.

Diagnostic testing in clinical urology centers is provided either by an in-house hospital laboratory or a commercial

laboratory where Proclarix will be implemented.

General practitioners recruit patients for screening

and decide whether to refer a patient to a specialist.

They have an important gatekeeper role and Proclarix is a helpful tool for this

Marketing outreach of commercial laboratory networks (e.g., Unilabs, Switzerland;

Sonic Healthcare, Australia;

Labcorp, U.S.A.) provides an opportunity to directly address the large number of general practitioners and urologists in private practices

through their specialized sales force.

LabCorp, U.S.A.)

provides an opportunity to directly address the large number of general practitioners and urologists in private practices through their

specialized sales force.

Market Opportunity

Proclarix, the first diagnostic

product of Proteomedix, is addressing unmet medical needs related to prostate cancer, which is the second most frequently diagnosed cancer

in men, with an estimated 1.4 million new cases and more than 395,000 deaths worldwide in 2020, according to World Cancer Research Fund

International.

The PSA test represents the

current standard of care in prostate cancer diagnosis.

Proclarix, the first diagnostic product of Proteomedix,

is addressing unmet medical needs related to prostate cancer, which is the second most frequently diagnosed cancer in men.

1,467,854 new cases of prostate cancer and 397,430 prostate cancer related deaths worldwide in 2022 according to World Cancer Research

Fund International.

The PSA test represents the current standard of

care in prostate cancer diagnosis.

It accurately identifies individuals with no sign of disease.

Approximately 10%

of all men have elevated PSA levels, commonly referred to as the diagnostic “grey zone”, of which only 20-40% present clinically

Proclarix is intended for use in diagnosing these patients where it is difficult to decide if a biopsy is necessary to verify

a potential clinically significant cancer diagnosis.

The high unmet need for improved patient stratification or diagnostic triage in this

segment is addressed only by a few tests.

Approximately 10% of all men have elevated

PSA levels, commonly referred to as the diagnostic “grey zone”, of which only 20-40% present clinically with cancer.

is intended for use in diagnosing these patients where it is difficult to decide if a biopsy is necessary to verify a potential clinically

significant cancer diagnosis.

The high unmet need for improved patient stratification or diagnostic triage in this segment is addressed

only by a few tests.

Compared to those tests Proclarix has important competitive advantages:

(i) it shows comparable

or often superior clinical performance, (ii) it is blood-based and therefore minimally invasive and (iii) it is highly reproducible in

comparison to e.g., urine-based tests.

(i) it shows comparable or often superior

clinical performance, (ii) it is blood-based and therefore minimally invasive and (iii) it is highly reproducible in comparison to e.g.,

urine-based tests.

The use of Proclarix does not require prior prostate massage.

Samples are stable and can be shipped

at ambient temperature.

Proclarix has a high accuracy and negative predictive value (NPV) and is easy to automate on equipment readily

available as well as adaptable to current laboratory practice and thus clinical routine.

The worldwide market for in

vitro diagnostic (“IVD”) products was valued at $117.8 billion in 2022.

Europe and North America are the largest markets,

followed by Asia, mainly Japan and China, according to MarketsandMarkets.

About two-thirds of prostate cancer diagnoses occur in countries ranking

very high in the Human Development Index, where only 18% of the world’s male population resides, according to the American Cancer

This underscores a significant market demand for improved diagnostic tools, especially in regions with robust healthcare infrastructure

where early detection and treatment are paramount.

Our innovative test aims to meet this demand by offering enhanced accuracy, accessibility,

and efficiency, positioning it as a valuable asset in the fight against prostate cancer while also presenting lucrative commercial opportunities

for stakeholders.

Currently, standard prostate

cancer screening combines a digital rectal exam (“DRE”) with the measurement of PSA.

PSA is not a highly cancer specific marker,

meaning it picks up many benign conditions of raised PSA levels in the blood—such as clinically not significant enlargement of the

prostate or inflammation.

Samples are stable and can be shipped at ambient temperature.

Proclarix has a high accuracy and negative predictive value (NPV) and is easy to automate on equipment readily available as well as adaptable

to current laboratory practice and thus clinical routine.

The worldwide market for in vitro diagnostic (“IVD”)

products was valued at $101 billion in 2024.

Europe and North America are the largest markets, followed by Asia, mainly Japan and China,

according to MarketsandMarkets.

About two-thirds of prostate cancer diagnoses

occur in countries ranking very high in the Human Development Index, where only 18% of the world’s male population resides, according

to the American Cancer Society.

This underscores a significant market demand for improved diagnostic tools, especially in regions with

robust healthcare infrastructure where early detection and treatment are paramount.

Our innovative test aims to meet this demand by offering

enhanced accuracy, accessibility, and efficiency, positioning it as a valuable asset in the fight against prostate cancer while also presenting

lucrative commercial opportunities for stakeholders.

Currently, standard prostate cancer screening

combines a digital rectal exam (“DRE”) with the measurement of PSA.

PSA is not a highly cancer specific marker, meaning it

picks up many benign conditions of raised PSA levels in the blood—such as clinically not significant enlargement of the prostate

or inflammation.

The consequences are prostate cancer overdiagnosis, leading to unnecessary prostate biopsies.

It is currently

estimated that more than 60% of men that undergo a biopsy have no clinically significant prostate cancer, but due to the biopsy become

exposed to potential side effects such as infections, bleeding and incontinence.

The use of MRI for the diagnosis of prostate cancer has been rapidly

adopted during the last decade.

There is clinical evidence that MRI allows clinicians to verify diagnosis and improve localization, risk

stratification and staging of clinically significant prostate cancer over other methods.

MRI-guided biopsy has a higher accuracy than

ultrasound-guided biopsy.

However, MRI-based diagnosis of prostate cancer is hampered by the relatively high costs of US$415 – US$900

and limited availability.

It is currently estimated

that more than 60% of men that undergo a biopsy have no clinically significant prostate cancer, but due to the biopsy become exposed to

potential side effects such as infections, bleeding and incontinence.

The use of MRI for the diagnosis of prostate cancer

has been rapidly adopted during the last decade.

There is clinical evidence that MRI allows clinicians to verify diagnosis and improve

localization, risk stratification and staging of clinically significant prostate cancer over other methods.

MRI-guided biopsy has a higher

accuracy than ultrasound-guided biopsy.

However, MRI-based diagnosis of prostate cancer is hampered by the relatively high costs of US$415

– US$900 and limited availability.

Still, up to one-third of MRIs are inconclusive.

Thus, there is a clear need for an improved non-invasive diagnostic

test with higher specificity for clinically significant prostate cancer to aid in selecting patients undergoing MRI, MRI-guided biopsy,

Proper classification in clinically significant cancer and non-significant type or non-cancer conditions such as benign prostate

hyperplasia is important to prevent overtreatment and its associated side-effects and costs.

Proteomedix is developing diagnostic tools

for disease prognosis and monitoring that are essential for reliable, patient-friendly, and cost-effective disease management.

Proteomedix’s

biomarkers have shown the potential to distinguish between those prostate cancer patients who are more likely to respond to certain drug-based

interventions.

With this information, better choices for drug therapies can be made to maximize the likelihood of efficacious treatment.

Thus, there is a clear need for an improved

non-invasive diagnostic test with higher specificity for clinically significant prostate cancer to aid in selecting patients undergoing

MRI, MRI-guided biopsy, and biopsy.

Proper classification in clinically significant cancer and non-significant type or non-cancer conditions

such as benign prostate hyperplasia is important to prevent overtreatment and its associated side-effects and costs.

Proteomedix is developing

diagnostic tools for disease prognosis and monitoring that are essential for reliable, patient-friendly, and cost-effective disease management.

Proteomedix’s biomarkers have shown the potential to distinguish between those prostate cancer patients who are more likely to respond

to certain drug-based interventions.

With this information, better choices for drug therapies can be made to maximize the likelihood of

efficacious treatment.

Proteomedix’s biomarkers could also aid in clinical drug development.

BPH is a condition that affects

men, primarily those over 50 years old, and is caused by swelling in the prostate gland due to hormonal changes and cell growth during

the aging process.

It is estimated that about 50% of men between the ages of 51 and 60 have BPH, and that number increases to about 70%

among men 60-69 and around 80% of men over 70 years of age, according to Yale Medicine.

This translates to upwards of 55 million men in

the United States at risk or experiencing symptoms of BPH each year.

Men with BPH may suffer from a range of symptoms, including increased

urinary frequency, urgency, and an inability to completely empty the bladder.

While there are surgical interventions to treat BPH, many

men choose prescription medications to treat their symptoms and, with certain medications, decrease the size of the prostate.

Two medications commonly

used to treat BPH are tamsulosin, brand name Flomax ® , and finasteride, sold under the brand name Proscar ® .

According to ClinCalc.com, tamsulosin was the 24 th most commonly prescribed medication in 2020 and has increased in rank consistently

This resulted in over 24.6 million prescriptions and an average per prescription cost of $54.40, resulting in over $1.3 billion

Finasteride, ranked the 90 th most commonly prescribed medication in the U.S.

in 2020, has also seen consistent increases

in utilization since 2013.

Over 8 million finasteride prescriptions in 2020 resulted in over $162 million in sales based on an average

price per prescription of $19.83.

ENTADFI, which can treat

BPH without negative sexual side effects seen in some men on finasteride alone, represents a novel therapeutic treatment for patients.

There is a significant market opportunity for an additional therapeutic option in BPH, shown both by the prevalence in older men and by

the high, and increasing, number of BPH prescriptions written each year.

ENTADFI Competitive Analysis

Treatments for men with BPH and lower urinary tract symptoms (“LUTS”)

fall into five drug classes each with a different mechanism of action in alleviating symptoms:

(i) alpha blockers that target alpha receptors

to relax prostatic smooth muscle, (ii) 5-alpha reductase inhibitors (“5ARIs”) that block the enzyme 5-alpha reductase to decrease

cell growth, (iii) PDE5 inhibitors that decrease urethral smooth muscle tone, (iv) anticholinergics that block the action of acetylcholine

to relax the smooth muscle of the bladder and (v) beta-3 agonists that increase bladder capacity by relaxing smooth muscle.

Figure 4 below

lists the current AUA- and EUA-recommended therapies for BPH and BPH with LUTS, their mechanisms of action, and potential side effects.

Several of these medications are commercially available as generics.

Current AUA and EAU recommended therapies for BPH and

BPH with LUTS.

Should we decide to

resume commercialization of ENTADFI, Potential competitors with respect to ENTADFI in North America, Europe and elsewhere include

major pharmaceutical companies, specialty pharmaceutical companies and biotechnology firms, universities and other research

institutions and government agencies.

Many of our competitors have substantially greater research and development and regulatory

capabilities and experience, and substantially greater management, manufacturing, distribution, marketing and financial resources,

than we have.

We may be unable to compete successfully against current and future competitors, and competitive pressures could have

a negative effect on our net revenues and profit margins.

Zydus Life Sciences recently

received FDA approval for a combined finasteride-tadalafil (5 mg/5 mg) capsule, pursuant to the FDA’s Competitive Generic Therapy

Program, which was designed to enhance patient access to affordable medications by encouraging the development and commercialization of

generic drugs in clinical areas with limited generic options for patients.

Pursuant to the program, Zydus has a 180 day period to be the

sole supplier of the generic version of the drug in the market and during this period, other generic manufacturers cannot enter the market

with their versions of the same drug, provided that Zydus commences marketing the drug by 75 days from approval.

As a result, there is

a risk that the Company will face additional challenges in resuming commercializing ENTADFI, if it chooses to do so.

Other parties have developed

and marketed drugs for BPH that have been accepted by the healthcare provider, patient and payor communities.

Many of these other products

have also reached the point where they are now generic drugs, which means that they are sold at a very low price, a price which ENTADFI

may not be able to meet which could limit the reach of ENTADFI into the healthcare provider, patient and payor communities, including

government payors.

ENTADFI Competitive Advantages

Adherence to the prescribed

treatment regimen is an ongoing issue in BPH therapy.

Adherence rates are low for BPH treatments, as BPH medicines are typically taken

chronically and are often taken for up to 6 to 12 months prior to significant symptom relief.

Adherence rates are particularly low in patients taking multiple BPH treatments concurrently, with reported adherence rates as low as

2 Delayed symptom relief, adversely impacting quality

of life, is thought to be a major factor resulting in poor patient adherence to prescribed treatment schedules.

Importantly, discontinuation of treatment or non-adherence to a prescribed treatment protocol are independent risk factors for BPH related

hospitalization or surgery.

4 A recent study suggested that

first-time 5ARI patients with low adherence to their treatment schedule are 27% more likely to need BPH-related surgery.

A more effective, rapid acting therapy with a simple treatment regimen could significantly improve patient compliance, reduce the need

for medical or surgical intervention and improve the patient’s quality of life.

1 Casabé A et al.

191:727-733 2014.;

European Urology.

68(3):418-425 2015.

2 Cindolo L, et al.

European Urology 68(3):418-425 2015.

3 Casabé A et al.

191:727-733 2014.

4 Cindolo L, et al.

BMC Urol 2015;

Zhang H, et al.

204(2):325–331 2020.

ENTADFI is a combination of

finasteride, a 5ARI, and tadalafil, a PDE5 inhibitor, that is indicated for use in the treatment of BPH is men with an enlarged prostate

for up to 26 weeks of treatment.

Tadalafil has been shown to be effective in reducing the erectile dysfunction symptoms of BPH, although

the exact mechanism by which the drug reduces the symptoms of LUTS is unknown.

Finasteride acts to shrink the prostate by preventing the conversion of testosterone to dihydrotestosterone.

This fixed combination of two different, clinically effective, BPH medications delivers rapid and sustained relief from the symptoms of

The combination of tadalafil and finasteride has demonstrated significant clinical efficacy within four weeks of treatment with significant

improvement in sexual functioning.

8 A single capsule formulation

of these two drugs removes the barriers to treatment adherence associated with delayed or poor symptom relief and a complex treatment

regimen involving separate individual medications.

Proclarix Competition Analysis

The molecular diagnostics

field is intensely competitive and characterized by rapid technological changes, frequent new product introductions, changing customer

preferences, emerging competition, evolving industry standards, reimbursement uncertainty and price competition.

Moreover, recent consolidation

in the industry permits larger clinical laboratory service providers to increase cost efficiencies and service levels, resulting in more

intense competition.

The market for assessing men

at risk for prostate cancer is large, with many competitors some of which possess substantially greater financial, selling, logistical

and laboratory resources, more experience in dealing with third-party payors, and greater market penetration, purchasing power and marketing

budgets, as well as more experience in providing diagnostic services.

Some companies and institutions are developing liquid biopsy (blood

and urine)-based tests and diagnostic tests based on the detection of proteins, mRNA, nucleic acids, or the presence of fragments of mutated

genes that are associated with prostate cancer.

These competitors could have technological, financial, reputational, and market access

advantages over us.

There are a number of tests

already on the market or in clinical testing or commercial development that are also intended to triage diagnostics in men with moderately

elevated PSA levels.

The molecular diagnostics field is intensely competitive

and characterized by rapid technological changes, frequent new product introductions, changing customer preferences, emerging competition,

evolving industry standards, reimbursement uncertainty and price competition.

Moreover, recent consolidation in the industry permits larger

clinical laboratory service providers to increase cost efficiencies and service levels, resulting in more intense competition.

The market for assessing men at risk for prostate

cancer is large, with many competitors some of which possess substantially greater financial, selling, logistical and laboratory resources,

more experience in dealing with third-party payors, and greater market penetration, purchasing power and marketing budgets, as well as

more experience in providing diagnostic services.

Some companies and institutions are developing liquid biopsy (blood and urine)-based

tests and diagnostic tests based on the detection of proteins, mRNA, nucleic acids, or the presence of fragments of mutated genes that

are associated with prostate cancer.

These competitors could have technological, financial, reputational, and market access advantages

There are a number of tests already on the market

or in clinical testing or commercial development that are also intended to triage diagnostics in men with moderately elevated PSA levels.

Of these tests the majority also target solely PSA as a biomarker.

Certain isoforms of PSA are differentiated, or

transcript levels (mRNA) are determined in addition to protein levels.

Of these tests the best established is %fPSA, which is also available

from all suppliers of the PSA test, including market leaders Abbott Laboratories, Roche Diagnostics, Siemens Healthineers AG and Beckman

Coulter, Inc.

However, the sensitivity and specificity improvements are very modest.

The 4Kscore from OPKO Health,

OPK) and the phi score from Beckman Coulter, Inc.

measure additional forms of PSA and related proteins but they do not include

additional biomarkers either.

The 4Kscore test is a blood based 4-plex test which combines the results of the blood test with clinical

information in an algorithm that calculates a patient’s percent risk for aggressive prostate cancer prior to an initial or repeat

biopsy (no previous diagnosis of prostate cancer).

Certain isoforms of PSA are differentiated, or transcript levels (mRNA)

are determined in addition to protein levels.

Of these tests the best established is %fPSA, which is also available from all suppliers

of the PSA test, including market leaders Abbott Laboratories, Roche Diagnostics, Siemens Healthineers AG and Beckman Coulter, Inc.

the sensitivity and specificity improvements are very modest.

The 4Kscore from OPKO Health, Inc.

and the phi score from Beckman Coulter, Inc.

measure additional forms of PSA and related proteins but they do not include additional biomarkers

The 4Kscore test is a blood based 4-plex test which combines the results of the blood test with clinical information in an algorithm

that calculates a patient’s percent risk for aggressive prostate cancer prior to an initial or repeat biopsy (no previous diagnosis

of prostate cancer).

The 4Kscore test received marketing approval from the FDA in December 2021.

score combines the results of three blood tests to provide information about what elevated PSA levels might mean and the probability of

finding prostate cancer on biopsy.

The phi score combines the results of

three blood tests to provide information about what elevated PSA levels might mean and the probability of finding prostate cancer on biopsy.

The IsoPSA test of Cleveland Diagnostics, Inc.

analyzes structural changes of PSA to detect underlying

cancer biology.

Over the last decade, gene-based

testing in urine targeting additional biomarkers became available.

analyzes structural changes of PSA to detect underlying cancer biology.

Over the last decade, gene-based testing in urine

targeting additional biomarkers became available.

The PCA3 test from Gen-Probe Inc.

(now a part of Hologic, Inc.) was

the first genetic assay to be introduced to the market.

The SelectMDx test from MdxHealth SA measures a combination of two genes and integrates

them together with PSA value, prostate volume, patient age and digital rectal exam to a risk score.

The assay targets mRNA transcripts

in the patient’s urine.

(now a part of Hologic, Inc.) was the first genetic

assay to be introduced to the market.

The SelectMDx test from MdxHealth SA measures a combination of two genes and integrates them together

with PSA value, prostate volume, patient age and digital rectal exam to a risk score.

The assay targets mRNA transcripts in the patient’s

mRNA is normally not sufficiently shed into urine to allow for direct analysis.

Therefore, this test method

requires prostate massage prior to sample collection and the urine samples will be collected in a specialized practice.

The ExoDx IntelliScore

from Exosome Diagnostics, Inc., a subsidiary of Bio-Techne Corporation, measures PCA3 as well as other gene transcripts in exosomes harvested

The method does not require prostate massage, however, because mRNA is relatively unstable, the samples require cold storage

in shipment and relatively rapid testing turn-around.

The Stockholm3 test is part

of an academic initiative, OncoWatch, led by the Karolinska Institute, Sweden and funded by the European Institute of Innovation and Technology

Health program.

Established in 2020, A3P Biomedical AB (publ) is commercializing the Stockholm3 test.

It is a blood-based test that predicts

the risk for aggressive prostate cancer at biopsy by analyzing five protein markers, more than 100 genetic markers and clinical data.

Except for PCA3, Prostate

Health Index and 4Kscore, all of the above-mentioned tests are only available as a testing service through specialized reference laboratories,

they are not offered as commercial products.

Testing is performed centrally as a laboratory developed test (“LDT”) by a single

diagnostic laboratory.

Therefore, this test method requires prostate massage

prior to sample collection and the urine samples will be collected in a specialized practice.

The ExoDx IntelliScore from Exosome Diagnostics,

Inc., a subsidiary of Bio-Techne Corporation, measures PCA3 as well as other gene transcripts in exosomes harvested from urine.

does not require prostate massage, however, because mRNA is relatively unstable, the samples require cold storage in shipment and relatively

rapid testing turn-around.

The Stockholm3 test is part of an academic initiative,

OncoWatch, led by the Karolinska Institute, Sweden and funded by the European Institute of Innovation and Technology Health program.

in 2020, A3P Biomedical AB (publ) is commercializing the Stockholm3 test.

It is a blood-based test that predicts the risk for aggressive

prostate cancer at biopsy by analyzing five protein markers, more than 100 genetic markers and clinical data.

Except for PCA3, Prostate Health Index and 4Kscore,

all of the above-mentioned tests are only available as a testing service through specialized reference laboratories, they are not offered

as commercial products.

Testing is performed centrally as a laboratory developed test (“LDT”) by a single diagnostic laboratory.

Uptake of LDTs in the United States has been limited, and in Europe they are mostly not known to urologists.

CIALIS [Package Insert].

Indianapolis, IN:

Eli Lilly and Co;

7 ENTADFI [Package Insert].

Cincinnati, OH:

Blue Water Biotech,

8 Casabé A et al.

J Urol 191:727-733 2014.

9 Lee LK et al.

Patient Prefer Adherence 10:1205-1215 2026;

Glina S et al.

12(1):129-138 2015;

Cindolo L et al.

BMC Urol 96(15):

In recent years, MRI-based

diagnosis followed by targeted biopsy is becoming the standard of choice in specialized centers.

As MRI instrumentation is costly and

its availability is still limited, there is a need for diagnostics supporting the decision to perform MRI that Proclarix can fulfill.

MRI is not regarded as competitive to the Proclarix positioning, but complementary.

In recent years, MRI-based diagnosis followed

by targeted biopsy is becoming the standard of choice in specialized centers.

As MRI instrumentation is costly and its availability is

still limited, there is a need for diagnostics supporting the decision to perform MRI that Proclarix can fulfill.

MRI is not regarded

as competitive to the Proclarix positioning, but complementary.

Competitive Advantages of Proclarix

We believe Proclarix has

important competitive advantages:

invasive, high reproducibility, no prostate massage required, suitably stable for shipment, the most common sample type in clinical

laboratories and therefore fitting in current lab workflow

We believe Proclarix has important competitive

Blood-based test

Minimally invasive, high reproducibility, no prostate massage required, suitably stable for shipment, the most common sample type in clinical laboratories and therefore fitting in current lab workflow

Immunoassay-based

with existing laboratory instrumentation in local laboratory

to clinical routine, fast time to result

result generation

results independent of operator

Genetics-guided

Cancer-related,

highly plausible biomarkers

Proclarix can be applied in

any diagnostic laboratory, using readily available immunoassay technology platforms.

Furthermore, Proclarix fits very well into the current

laboratory workflow, which is important for laboratories that are driven by efficiency and cost.

Compatible with existing laboratory instrumentation in local laboratory

Easy to automate

Adaptable to clinical routine, fast time to result

Objective result generation

Comparable results independent of operator

Genetics-guided discovery

Cancer-related, highly plausible biomarkers

Proclarix can be applied in any diagnostic laboratory,

using readily available immunoassay technology platforms.

Furthermore, Proclarix fits very well into the current laboratory workflow,

which is important for laboratories that are driven by efficiency and cost.

The stakeholders benefit in various ways from

more certainty whether a biopsy is really needed through a minimally invasive procedure with a fast time to result.

This results in reduced

anxiety about prostate cancer diagnosis and less complications and side effects from biopsies.

Focus on relevant patients with clinically significant cancer and increased

patient satisfaction by significantly reducing unneeded prostate biopsies and its accompanying complications.

No need for additional training

or new logistic processes:

Standard blood-drawing equipment can be used, and the blood sample sent to the current laboratory.

revenue with no additional investment for new equipment because Proclarix is readily applicable in most laboratories.

Gain more certainty whether

a biopsy is really needed through a minimally invasive procedure with a fast time to result.

This results in reduced anxiety about prostate

cancer diagnosis and less complications and side effects from biopsies.

Focus on relevant patients

with clinically significant cancer and increased patient satisfaction by significantly reducing unneeded prostate biopsies and its accompanying

complications.

No need for additional training or new logistic processes:

Standard blood-drawing equipment can be used, and the blood

sample sent to the current laboratory.

Increase revenue with

no additional investment for new equipment because Proclarix is readily applicable in most laboratories.

Payer (insurance company):

Increase profits by saving costs for avoided biopsies (accompanied by risk of complications, discomfort) and resulting overtreatment.

profits by saving costs for avoided biopsies (accompanied by risk of complications, discomfort) and resulting overtreatment.

Government Regulation

The FDA and other regulatory

authorities at federal, state and local levels, as well as in foreign countries, extensively regulate, among other things, the research,

development, testing, manufacture, quality control, import, export, safety, effectiveness, labeling, packaging, storage, distribution,

record keeping, approval, advertising, promotion, marketing, post-approval monitoring and post-approval reporting of drugs and diagnostics.

Small molecule drugs, like

ENTADFI, are subject to regulation in the United States under the Food, Drug, and Cosmetic Act (“FDCA”) and are subject to

additional federal, state, local and foreign statutes and regulations.

We, along with third-party contractors, are required to navigate

the various requirements of the governing regulatory agencies of the countries in which we wish to market products.

United States

Pharmaceuticals Regulation

The process required by the

FDA before drugs may be marketed in the United States generally involves the following:

of extensive preclinical laboratory tests and animal studies performed in accordance with applicable regulations, including the FDA’s

Good Laboratory Practice, or GLP, regulations;

to the FDA of an investigational new drug application, IND, which must become effective before clinical trials may begin;

by an independent institutional review board or ethics committee at each clinical site before the trial is commenced;

of adequate and well-controlled human clinical trials in accordance with FDA’s Good Clinical Practice, or GCP, regulations

to establish the safety and efficacy of a drug candidate for its intended purpose;

of and submission to the FDA of a new drug application (“NDA”) after completion of all pivotal clinical trials;

completion of an FDA Advisory Committee review, if applicable;

determination by the FDA within 60 days of its receipt of an NDA to file the application for review;

completion of an FDA pre-approval inspection of the manufacturing facility or facilities at which the proposed product is produced

to assess compliance with current Good Manufacturing Practice requirements, or cGMPs, and of selected clinical investigation sites

to assess compliance with GCPs;

review and approval of an NDA to permit commercial marketing of the product for particular indications for use in the United States.

Post-Approval Requirements

Any products manufactured

or distributed by us pursuant to FDA approvals, like ENTADFI, are subject to pervasive and continuing regulation by the FDA, including,

among other things, requirements relating to record-keeping, reporting of adverse experiences, periodic reporting, product sampling and

distribution, and advertising and promotion of the product.

After approval, most changes to the approved product, such as adding new indications

or other labeling claims, are subject to prior FDA review and approval.

There also are continuing user fee requirements, under which the

FDA assesses an annual program fee for each product identified in an approved NDA.

Pharmaceutical manufacturers and their subcontractors

are required to register their establishments with the FDA and certain state agencies and are subject to periodic unannounced inspections

by the FDA and certain state agencies for compliance with cGMPs, which impose certain procedural and documentation requirements upon us

and our third-party manufacturers.

Changes to the manufacturing process are strictly regulated, and, depending on the significance of

the change, may require prior FDA approval before being implemented.

Manufacturers must continue to expend time, money and effort in the

area of production and quality control to maintain compliance with cGMPs and other aspects of regulatory compliance.

The FDA may withdraw approval

if compliance with regulatory requirements and standards is not maintained or if problems occur after the product reaches the market.

Later discovery of previously unknown problems with a product, including adverse events of unanticipated severity or frequency, or with

manufacturing processes, or 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 Risk Evaluation and Mitigation Strategy program.

Other potential consequences include, among other things:

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

warning or untitled letters or holds on post-approval clinical studies;

of the FDA to approve pending applications or supplements to approved applications, or suspension or revocation of existing product

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

decrees, corporate integrity agreements, debarment or exclusion from federal healthcare programs;

modification of promotional materials and labeling and the issuance of corrective information;

issuance of safety alerts, Dear Healthcare Provider letters, press releases and other communications containing warnings or other

safety information about the product;

or the imposition of civil or criminal penalties.

The FDA closely regulates the marketing, labelling, advertising, and

promotion of pharmaceutical products.

A company can make only those claims relating to safety and efficacy, that are approved by the FDA

and in accordance with the provisions of the approved label.

However, companies may share truthful and not misleading information that

is otherwise consistent with a product’s FDA approved labelling.

The FDA and other agencies actively enforce the laws and regulations

prohibiting the promotion of off-label uses.

Failure to comply with these requirements can result in, among other things, adverse publicity,

warning letters, corrective advertising, and potential civil and criminal penalties.

Physicians may prescribe legally available products

for uses that are not described in the product’s labelling and that differ from those tested by us and approved by the FDA.

off-label uses are common across medical specialties.

Physicians may believe that such off-label uses are the best treatment for many

patients in varied circumstances.

The FDA does not regulate the behavior of physicians in their choice of treatments.

The FDA does, however,

restrict manufacturer’s communications on the subject of off-label use of their products.

Federal and State Fraud and Abuse, Data Privacy

and Security, and Transparency Laws and Regulations

In addition to FDA restrictions

on marketing of pharmaceutical products, federal and state healthcare laws and regulations restrict business practices in the biopharmaceutical

These laws may impact, among other things, our current and future business operations and proposed sales, marketing and education

programs and constrain the business or financial arrangements and relationships with healthcare providers and other parties through which

we market, sell and distribute our products.

These laws include anti-kickback and false claims laws and regulations, data privacy and

security, and transparency laws and regulations, including, without limitation, those laws described below.

federal Anti-Kickback Statute prohibits any person or entity

from, among other things, knowingly and willfully offering, paying, soliciting, or receiving remuneration to induce or in return for purchasing,

leasing, ordering or arranging for or recommending the purchase, lease or order of any item or service reimbursable under Medicare, Medicaid

or other federal healthcare programs.

The term “remuneration” has been broadly interpreted to include anything of value.

federal Anti-Kickback Statute has been interpreted to apply to arrangements between pharmaceutical manufacturers on the one hand

and prescribers, purchasers, and formulary managers on the other.

Although there are a number of statutory exceptions and regulatory safe

harbors protecting some common activities from prosecution, the exceptions and safe harbors are drawn narrowly.

Practices that involve

remuneration that may be alleged to be intended to induce prescribing, purchases or recommendations may be subject to scrutiny if they

do not qualify for an exception or safe harbor.

Several courts have interpreted the statute’s intent requirement to mean that if

any one purpose of an arrangement involving remuneration is to induce referrals of federal healthcare covered business, the statute has

been violated.

A person or entity does not

need to have actual knowledge of this statute or specific intent to violate it in order to have committed a violation.

Violation of the

federal Anti-Kickback Statue carries criminal penalties and fines as well as administrative sanctions under the Civil Money Penalties

In addition, the government may assert that a claim including items or services resulting from a violation of the U.S.

federal Anti-Kickback

Statute constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act.

Federal civil and criminal

false claims laws and civil monetary penalties laws, including the federal civil False Claims Act, which can be enforced by individuals

through civil whistleblower and qui tam actions, prohibit any person or entity from, among other things, knowingly presenting, or causing

to be presented, a false claim for payment to the federal government or knowingly making, using or causing to be made or used a false

record or statement material to a false or fraudulent claim to the federal government.

A claim includes “any request or demand”

for money or property presented to the U.S.

Several pharmaceutical and other healthcare companies have been prosecuted under

these laws for allegedly providing free product to customers with the expectation that the customers would bill federal programs for the

Other companies have been prosecuted for causing false claims to be submitted because of the companies’ marketing of products

for unapproved, and thus non-reimbursable, uses.

The federal Health Insurance

Portability and Accountability Act of 1996 (“HIPAA”) created additional federal criminal statutes that prohibit, among other

things, knowingly and willfully executing a scheme to defraud any healthcare benefit program, including private third-party payors and

knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or fraudulent

statement in connection with the delivery of or payment for healthcare benefits, items or services.

These provisions are intended to punish

some of the same conduct in the submission of claims to private payors as the federal False Claims Act covers in connection with governmental

health programs.

Also, many states have similar fraud and abuse statutes or regulations that apply to items and services reimbursed under

Medicaid and other state programs, or, in several states, that apply regardless of the payor.

In addition, regulations promulgated pursuant to HIPAA, as amended

by the Health Information Technology for Economic and Clinical Health Act (“HITECH”) established privacy and security standards

that limit the use and disclosure of individually identifiable health information (known as “ protected health information ”

or “PHI”) and require the implementation of administrative, physical and technological safeguards to protect the privacy of

PHI and ensure the confidentiality, integrity and availability of electronic PHI.

HIPAA applies to “covered entities,” including

healthcare providers who submit certain standard transactions electronically, health plans, and healthcare clearinghouses, as well as

to their “business associates,” which are defined as independent contractors or agents of covered entities that create, receive,

maintain or transmit PHI in the performance of an administrative function or service for or on behalf of a covered entity.

increased the civil and criminal penalties that may be imposed against covered entities, business associates and possibly other persons,

and gave state attorneys general new authority to file civil actions for damages or injunctions in federal courts to enforce HIPAA and

seek attorney’s fees and costs associated with pursuing federal civil actions.

In addition, state laws govern the privacy and security

of health information in certain circumstances, many of which are not pre-empted by HIPAA, differ from each other in significant ways

and may not have the same effect, thus complicating compliance efforts.

The federal Physician Payments

Sunshine Act requires certain manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare,

Medicaid or the Children’s Health Insurance Program, with specific exceptions, to report annually to the Centers for Medicare &

Medicaid Services, or CMS, information related to payments or other transfers of value made to physicians and teaching hospitals, and

applicable manufacturers and applicable group purchasing organizations to report annually to CMS ownership and investment interests held

by Covered Recipients, as defined at 42 CFR Subpart I.

We may also be subject to

state laws that require pharmaceutical companies to comply with the pharmaceutical industry’s voluntary compliance guidelines and

the relevant compliance guidance promulgated by the federal government, state laws that require drug manufacturers to report information

related to payments and other transfers of value to physicians and other healthcare providers, marketing expenditures or drug pricing,

and state and local laws that require the registration of pharmaceutical sales representatives.

Because of the breadth of

these laws and the narrowness of available statutory exceptions and regulatory safe harbors, it is possible that some of our business

activities could be subject to challenge under one or more of such laws.

If our operations are found to be in violation of any of the

federal and state laws described above or any other governmental regulations that apply to us, we may be subject to significant criminal,

civil and administrative penalties including damages, fines, imprisonment, disgorgement, additional reporting requirements and oversight

if we become subject to a corporate integrity agreement or similar agreement to resolve allegations of non-compliance with these laws,

contractual damages, reputational harm, diminished profits and future earnings, disgorgement, exclusion from participation in government

healthcare programs 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.

Coverage and Reimbursement

The future commercial success

of our product candidates will depend in part on the extent to which third-party payors, such as governmental payor programs at the federal

and state levels, including Medicare and Medicaid, private health insurers and other third-party payors, provide coverage of and establish

adequate reimbursement levels for our product.

Third-party payors generally decide which products they will pay for and establish reimbursement

levels for those products.

In particular, in the United States, no uniform policy for coverage and reimbursement exists.

Private health

insurers and other third-party payors often provide coverage and reimbursement for products based on the level at which the government,

through the Medicare program, provides coverage and reimbursement for such products, but also on their own methods and approval process

apart from Medicare determinations.

Therefore, coverage and reimbursement can differ significantly from payor to payor.

In the United States, government authorities and third-party payors

are increasingly attempting to limit or regulate the price of products, particularly for new and innovative products, which often has

resulted in average selling prices lower than they would otherwise be.

Further, the increased emphasis on managed healthcare in the United

States will put additional pressure on product pricing, reimbursement and usage.

These pressures can arise from rules and practices of

managed care groups, judicial decisions and laws and regulations related to Medicare, Medicaid and healthcare reform, pharmaceutical coverage

and reimbursement policies and pricing in general.

Third-party payors are increasingly

imposing additional requirements and restrictions on coverage and limiting reimbursement levels for products.

For example, federal and

state governments reimburse products at varying rates generally below average wholesale price.

These restrictions and limitations influence

the purchase of products.

Third-party payors may limit coverage to specific products on an approved list, or formulary, which might not

include all of the FDA-approved products for a particular indication.

Third-party payors are increasingly challenging the price and examining

the medical necessity and cost-effectiveness of products, in addition to their safety and efficacy.

We may need to conduct expensive pharmacoeconomic

studies in order to demonstrate the medical necessity and cost-effectiveness of our product.

Our product may not be considered medically

necessary or cost-effective.

A payor’s decision to provide coverage for a product does not imply that an adequate reimbursement

rate will be approved.

Legislative proposals to reform healthcare or reduce costs under government insurance programs may result in lower

reimbursement for our product or exclusion of our product candidates from coverage and reimbursement.

The cost containment measures that

third-party payors and providers are instituting and any healthcare reform could significantly reduce our revenue from the sale of our

approved product.

The FDA and other regulatory authorities at federal,

state and local levels, as well as in foreign countries, extensively regulate, among other things, the research, development, testing,

manufacture, quality control, import, export, safety, effectiveness, labeling, packaging, storage, distribution, record keeping, approval,

advertising, promotion, marketing, post-approval monitoring and post-approval reporting of drugs and diagnostics.

Foreign Regulation

In order to market any product

outside of the United States, we would need to comply with numerous and varying regulatory requirements of other countries regarding safety

and efficacy and governing, among other things, clinical trials, marketing authorization, commercial sales and distribution of our product

For example, in the EU, we must obtain authorization of a clinical trial application, or CTA, in each member state in which

we intend to conduct a clinical trial.

Whether or not we obtain FDA approval for a drug, we would need to obtain the necessary approvals

by the comparable regulatory authorities of foreign countries before we can commence clinical trials or marketing of the drug in those

The approval process varies from country to country and can involve additional product testing and additional administrative

review periods.

The time required to obtain approval in other countries might differ from and be longer than that required to obtain FDA

Regulatory approval in one country does not ensure regulatory approval in another, but a failure or delay in obtaining regulatory

approval in one country may negatively impact the regulatory process in others.

Further, some countries outside

of the United States, including the EU member states, Switzerland and the United Kingdom, have also adopted data protection laws and regulations,

which impose significant compliance obligations.

In the EU, the collection and use of personal health data is governed by the provisions

of the General Data Protection Regulation, or GDPR.

The GDPR became effective on May 25, 2018, repealing its predecessor directive and

increasing responsibility and liability of pharmaceutical companies in relation to the processing of personal data of EU subjects.

GDPR, together with the national legislation of the EU member states governing the processing of personal data, impose strict obligations

and restrictions on the ability to process personal data, including health data from clinical trials and adverse event reporting.

In particular,

these obligations and restrictions concern potentially burdensome documentation requirements, granting certain rights to individuals to

control how we collect, use, disclose, retain and process information about them, the information provided to the individuals, the transfer

of personal data out of the EU, security breach notifications, and security and confidentiality of the personal data.

The processing of

sensitive personal data, such as physical health condition, may impose heightened compliance burdens under the GDPR and is a topic of

active interest among foreign regulators.

In addition, the GDPR provides for more robust regulatory enforcement and fines of up to €20

million or 4% of the annual global revenue of the noncompliant company, whichever is greater.

Data protection authorities from the different

EU member states may interpret the GDPR and national laws differently and impose additional requirements, which add to the complexity

of processing personal data in the EU.

In order to market any product outside of the

United States, we need to comply with numerous and varying regulatory requirements of other countries regarding safety and efficacy and

governing, among other things, clinical trials, marketing authorization, commercial sales and distribution of our product candidates.

For example, in the EU, we must obtain authorization of a clinical trial application, or CTA, in each member state in which we intend

to conduct a clinical trial.

Whether or not we obtain FDA approval for a drug, we would need to obtain the necessary approvals by the

comparable regulatory authorities of foreign countries before we can commence clinical trials or marketing of the drug in those countries.

The approval process varies from country to country and can involve additional product testing and additional administrative review periods.

The time required to obtain approval in other countries might differ from and be longer than that required to obtain FDA approval.

approval in one country does not ensure regulatory approval in another, but a failure or delay in obtaining regulatory approval in one

country may negatively impact the regulatory process in others.

Further, some countries outside of the United

States, including the EU member states, Switzerland and the United Kingdom, have also adopted data protection laws and regulations, which

impose significant compliance obligations.

In the EU, the collection and use of personal health data is governed by the provisions of

the General Data Protection Regulation, or GDPR.

The GDPR became effective on May 25, 2018, repealing its predecessor directive and increasing

responsibility and liability of pharmaceutical companies in relation to the processing of personal data of EU subjects.

The GDPR, together

with the national legislation of the EU member states governing the processing of personal data, impose strict obligations and restrictions

on the ability to process personal data, including health data from clinical trials and adverse event reporting.

In particular, these

obligations and restrictions concern potentially burdensome documentation requirements, granting certain rights to individuals to control

how we collect, use, disclose, retain and process information about them, the information provided to the individuals, the transfer of

personal data out of the EU, security breach notifications, and security and confidentiality of the personal data.

The processing of sensitive

personal data, such as physical health condition, may impose heightened compliance burdens under the GDPR and is a topic of active interest

among foreign regulators.

In addition, the GDPR provides for more robust regulatory enforcement and fines of up to €20 million or

4% of the annual global revenue of the noncompliant company, whichever is greater.

Data protection authorities from the different EU member

states may interpret the GDPR and national laws differently and impose additional requirements, which add to the complexity of processing

personal data in the EU.

Guidance on implementation and compliance practices are often updated or otherwise revised.

1 unchanged sentence

European Union Coverage Reimbursement and Pricing

In the European Union, pricing

and reimbursement schemes vary widely from country to country.

Some countries provide that drug products may be marketed only after a

reimbursement price has been agreed.

Some countries may require the completion of additional studies that compare the cost-effectiveness

of a particular drug candidate to currently available therapies, or so-called health technology assessments, in order to obtain reimbursement

or pricing approval.

For example, the European Union provides options for its member states to restrict the range of drug products for

which their national health insurance systems provide reimbursement and to control the prices of medicinal products for human use.

Union member states may approve a specific price for a drug product or may instead adopt a system of direct or indirect controls on the

profitability of the company.

In the European Union, pricing and reimbursement

schemes vary widely from country to country.

Some countries provide that drug products may be marketed only after a reimbursement price

has been agreed.

Some countries may require the completion of additional studies that compare the cost-effectiveness of a particular drug

candidate to currently available therapies, or so-called health technology assessments, in order to obtain reimbursement or pricing approval.

For example, the European Union provides options for its member states to restrict the range of drug products for which their national

health insurance systems provide reimbursement and to control the prices of medicinal products for human use.

European Union member states

may approve a specific price for a drug product or may instead adopt a system of direct or indirect controls on the profitability of the

EU Drug regulation

In order to market any product

outside of the United States, we would need to comply with numerous and varying regulatory requirements of other countries and jurisdictions

regarding quality, safety and efficacy and governing, among other things, clinical trials, marketing authorization, commercial sales and

distribution of our products.

Whether or not we obtain FDA approval for a product, we would need to obtain the necessary approvals by

the comparable foreign regulatory authorities before we can commence clinical trials or marketing of the product in foreign countries

and jurisdictions such as in China and Japan.

Although many of the issues discussed above with respect to the United States apply similarly

in the context of the EU, the approval process varies between countries and jurisdictions and can involve additional product testing and

additional administrative review periods.

The time required to obtain approval in other countries and jurisdictions might differ from

and be longer than that required to obtain FDA approval.

Regulatory approval in one country or jurisdiction does not ensure regulatory

approval in another, but a failure or delay in obtaining regulatory approval in one country or jurisdiction may negatively impact the

regulatory process in others.

Failure to comply with applicable foreign regulatory requirements may be subject to, among other things,

fines, suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

In order to market any product outside of the

United States, we would need to comply with numerous and varying regulatory requirements of other countries and jurisdictions regarding

quality, safety and efficacy and governing, among other things, clinical trials, marketing authorization, commercial sales and distribution

of our product.

Whether or not we obtain FDA approval for a product, we would need to obtain the necessary approvals by the comparable

foreign regulatory authorities before we can commence clinical trials or marketing of the product in foreign countries and jurisdictions

such as in China and Japan.

Although many of the issues discussed above with respect to the United States apply similarly in the context

of the EU, the approval process varies between countries and jurisdictions and can involve additional product testing and additional administrative

review periods.

The time required to obtain approval in other countries and jurisdictions might differ from and be longer than that required

to obtain FDA approval.

Regulatory approval in one country or jurisdiction does not ensure regulatory approval in another, but a failure

or delay in obtaining regulatory approval in one country or jurisdiction may negatively impact the regulatory process in others.

to comply with applicable foreign regulatory requirements may be subject to, among other things, fines, suspension or withdrawal of regulatory

approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

Non-clinical studies and clinical trials

Similarly to the United States,

the various phases of non-clinical and clinical research in the EU are subject to significant regulatory controls.

Non-clinical studies are

performed to demonstrate the health or environmental safety of new chemical or biological substances.

Non-clinical studies must be conducted

in compliance with the principles of good laboratory practice (GLP) as set forth in EU Directive 2004/10/EC.

In particular, non-clinical

studies, both in vitro and in vivo, must be planned, performed, monitored, recorded, reported and archived in accordance with the GLP

principles, which define a set of rules and criteria for a quality system for the organizational process and the conditions for non-clinical

These GLP standards reflect the Organization for Economic Co-operation and Development requirements.

Clinical trials of medicinal

products in the EU must be conducted in accordance with EU and national regulations and the International Conference on Harmonization

(ICH) guidelines on good clinical practices (GCP) as well as the applicable regulatory requirements and the ethical principles that have

their origin in the Declaration of Helsinki.

Additional GCP guidelines from the European Commission, focusing in particular on traceability,

apply to clinical trials of advanced therapy medicinal products.

If the sponsor of the clinical trial is not established within the EU,

it must appoint an entity within the EU to act as its legal representative.

The sponsor must take out a clinical trial insurance policy,

and in most EU member states, the sponsor is liable to provide ‘no fault’ compensation to any study subject injured in the

clinical trial.

Certain countries outside

of the United States, including the EU, have a similar process that requires the submission of a clinical study application (CTA) much

like the IND prior to the commencement of human clinical studies.

A CTA must be submitted to each country’s national health authority

and an independent ethics committee, much like the FDA and the Institutional Review Board (“IRB”), respectively.

CTA is approved by the national health authority and the ethics committee has granted a positive opinion in relation to the conduct of

the trial in the relevant member state(s), in accordance with a country’s requirements, clinical study development may proceed.

The CTA must include, among

other things, a copy of the trial protocol and an investigational medicinal product dossier containing information about the manufacture

and quality of the medicinal product under investigation.

Currently, CTAs must be submitted to the competent authority in each EU member

state in which the trial will be conducted.

Under the new Regulation on Clinical Trials, which is currently expected to become applicable

by early 2022, there will be a centralized application procedure where one national authority takes the lead in reviewing the application

and the other national authorities have only a limited involvement.

Any substantial changes to the trial protocol or other information

submitted with the CTA must be notified to or approved by the relevant competent authorities and ethics committees.

Medicines used in

clinical trials must be manufactured in accordance with good manufacturing practice (GMP).

Other national and EU-wide regulatory requirements

Similarly to the United States, the various phases

of non-clinical and clinical research in the EU are subject to significant regulatory controls.

Non-clinical studies are performed to demonstrate

the health or environmental safety of new chemical or biological substances.

Non-clinical studies must be conducted in compliance with

the principles of good laboratory practice (GLP) as set forth in EU Directive 2004/10/EC.

In particular, non-clinical studies, both in

vitro and in vivo, must be planned, performed, monitored, recorded, reported and archived in accordance with the GLP principles, which

define a set of rules and criteria for a quality system for the organizational process and the conditions for non-clinical studies.

GLP standards reflect the Organization for Economic Co-operation and Development requirements.

Clinical trials of medicinal products in the EU

must be conducted in accordance with EU and national regulations and the International Conference on Harmonization (ICH) guidelines on

good clinical practices (GCP) as well as the applicable regulatory requirements and the ethical principles that have their origin in the

Declaration of Helsinki.

Additional GCP guidelines from the European Commission, focusing in particular on traceability, apply to clinical

trials of advanced therapy medicinal products.

If the sponsor of the clinical trial is not established within the EU, it must appoint

an entity within the EU to act as its legal representative.

The sponsor must take out a clinical trial insurance policy, and in most EU

member states, the sponsor is liable to provide ‘no fault’ compensation to any study subject injured in the clinical trial.

Certain countries outside of the United States,

including the EU, have a similar process that requires the submission of a clinical study application (CTA) much like the IND prior to

the commencement of human clinical studies.

A CTA must be submitted to each country’s national health authority and an independent

ethics committee, much like the FDA and the Institutional Review Board (“IRB”), respectively.

Once the CTA is approved by

the national health authority and the ethics committee has granted a positive opinion in relation to the conduct of the trial in the relevant

member state(s), in accordance with a country’s requirements, clinical study development may proceed.

The CTA must include, among other things, a copy

of the trial protocol and an investigational medicinal product dossier containing information about the manufacture and quality of the

medicinal product under investigation.

Currently, CTAs must be submitted to the competent authority in each EU member state in which the

trial will be conducted.

Under the new Regulation on Clinical Trials, which is currently expected to become applicable by early 2022,

there will be a centralized application procedure where one national authority takes the lead in reviewing the application and the other

national authorities have only a limited involvement.

Any substantial changes to the trial protocol or other information submitted with

the CTA must be notified to or approved by the relevant competent authorities and ethics committees.

Medicines used in clinical trials

must be manufactured in accordance with good manufacturing practice (GMP).

Other national and EU-wide regulatory requirements also apply.

Marketing Authorizations

To market a medicinal product

in the EU and in many other foreign jurisdictions, we must obtain separate regulatory approvals.

More concretely, in the EU, medicinal

product candidates can only be commercialized after obtaining a Marketing Authorization (MA).

To obtain regulatory approval of an investigational

medicinal product under EU regulatory systems, we must submit a marketing authorization application (“MAA”).

for doing this depends, among other things, on the nature of the medicin al product.

To market a medicinal product in the EU and in

many other foreign jurisdictions, we must obtain separate regulatory approvals.

More concretely, in the EU, medicinal product candidates

can only be commercialized after obtaining a Marketing Authorization (MA).

To obtain regulatory approval of an investigational medicinal

product under EU regulatory systems, we must submit a marketing authorization application (“MAA”).

The process for doing this

depends, among other things, on the nature of the medicinal product.

There are two types of Mas:

“Union MA”, which is issued by the European Commission through the Centralized Procedure, based on the opinion of the

Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (“EMA”) and which is valid throughout

the entire territory of the EU.

The Centralized Procedure is mandatory for certain types of products, such as (i) medicinal products

derived from biotechnology medicinal products, (ii) designated orphan medicinal products, (iii) advanced therapy products (such as

gene therapy, somatic cell therapy or tissue-engineered medicines), and (iv) medicinal products containing a new active substance

indicated for the treatment certain diseases, such as HIV/AIDS, cancer, neurodegenerative diseases, diabetes, other auto-immune and

viral diseases.

The Centralized Procedure is optional for products containing a new active substance not yet authorized in the EU,

or for products that constitute a significant therapeutic, scientific or technical innovation or that the granting of authorization

would be in the interest of public health in the EU;

Mas”, which are issued by the competent authorities of the EU member states and only cover their respective territory, are

available for products not falling within the mandatory scope of the Centralized Procedure.

Where a product has already been authorized

for marketing in an EU member state, this National MA can be recognized in another member state through the Mutual Recognition Procedure.

If the product has not received a National MA in any member state at the time of application, it can be approved simultaneously in

various member states through the Decentralized Procedure.

Under the Decentralized Procedure an identical dossier is submitted to

the competent authorities of each of the member states in which the MA is sought, one of which is selected by the applicant as the

Reference member state.

Under the above-described

procedures, in order to grant the MA, the EMA or the competent authorities of the EU member states make an assessment of the risk-benefit

balance of the product on the basis of scientific criteria concerning its quality, safety and efficacy.

Under the Centralized Procedure, the maximum timeframe for the evaluation

of a MAA by the EMA is 210 days.

Where there is a major public health interest and an unmet medical need for a product, the CHMP may perform

an accelerated review of a MA in no more than 150 days (not including clock stops).

Innovative products that target an unmet medical need

and are expected to be of major public health interest may be eligible for a number of expedited development and review programs, such

as the PRIME scheme, which provides incentives similar to the breakthrough therapy designation in the US PRIME is a voluntary scheme aimed

at enhancing the EMA’s support for the development of medicines that target unmet medical needs.

It is based on increased interaction

and early dialogue with companies developing promising medicines, to optimize their product development plans and speed up their evaluation

to help them reach patients earlier.

Product developers that benefit from PRIME designation can expect to be eligible for accelerated

assessment, but this is not guaranteed.

The benefits of a PRIME designation include the appointment of a CHMP rapporteur before submission

of a MAA, early dialogue and scientific advice at key development milestones, and the potential to qualify products for accelerated review

earlier in the application process.

Mas have an initial duration

of five years.

After these five years, the authorization may be renewed for an unlimited period on the basis of a reevaluation of the

risk-benefit balance, unless the EMA decides, on justified grounds relating to pharmacovigilance, to mandate one additional five-year renewal

the “Union MA”, which is issued by the European Commission through the Centralized Procedure, based on the opinion of the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (“EMA”) and which is valid throughout the entire territory of the EU.

The Centralized Procedure is mandatory for certain types of products, such as (i) medicinal products derived from biotechnology medicinal products, (ii) designated orphan medicinal products, (iii) advanced therapy products (such as gene therapy, somatic cell therapy or tissue-engineered medicines), and (iv) medicinal products containing a new active substance indicated for the treatment certain diseases, such as HIV/AIDS, cancer, neurodegenerative diseases, diabetes, other auto-immune and viral diseases.

The Centralized Procedure is optional for products containing a new active substance not yet authorized in the EU, or for products that constitute a significant therapeutic, scientific or technical innovation or that the granting of authorization would be in the interest of public health in the EU;

“National Mas”, which are issued by the competent authorities of the EU member states and only cover their respective territory, are available for products not falling within the mandatory scope of the Centralized Procedure.

Where a product has already been authorized for marketing in an EU member state, this National MA can be recognized in another member state through the Mutual Recognition Procedure.

If the product has not received a National MA in any member state at the time of application, it can be approved simultaneously in various member states through the Decentralized Procedure.

Under the Decentralized Procedure an identical dossier is submitted to the competent authorities of each of the member states in which the MA is sought, one of which is selected by the applicant as the Reference member state.

Under the above-described procedures, in order

to grant the MA, the EMA or the competent authorities of the EU member states make an assessment of the risk-benefit balance of the product

on the basis of scientific criteria concerning its quality, safety and efficacy.

Under the Centralized Procedure, the maximum timeframe

for the evaluation of a MAA by the EMA is 210 days.

Where there is a major public health interest and an unmet medical need for a product,

the CHMP may perform an accelerated review of a MA in no more than 150 days (not including clock stops).

Innovative products that target

an unmet medical need and are expected to be of major public health interest may be eligible for a number of expedited development and

review programs, such as the PRIME scheme, which provides incentives similar to the breakthrough therapy designation in the US PRIME is

a voluntary scheme aimed at enhancing the EMA’s support for the development of medicines that target unmet medical needs.

based on increased interaction and early dialogue with companies developing promising medicines, to optimize their product development

plans and speed up their evaluation to help them reach patients earlier.

Product developers that benefit from PRIME designation can expect

to be eligible for accelerated assessment, but this is not guaranteed.

The benefits of a PRIME designation include the appointment of

a CHMP rapporteur before submission of a MAA, early dialogue and scientific advice at key development milestones, and the potential to

qualify products for accelerated review earlier in the application process.

Mas have an initial duration of five years.

these five years, the authorization may be renewed for an unlimited period on the basis of a reevaluation of the risk-benefit balance,

unless the EMA decides, on justified grounds relating to pharmacovigilance, to mandate one additional five-year renewal period.

Data and marketing exclusivity

The EU also provides opportunities

for market exclusivity.

Upon receiving MA, new chemical entity, or reference product candidates, generally receive eight years of data

exclusivity and an additional two years of market exclusivity.

If granted, the data exclusivity period prevents generic or biosimilar

applicants from relying on the pre-clinical and clinical trial data contained in the dossier of the reference product when applying for

a generic or biosimilar MA in the EU during a period of eight years from the date on which the reference product was first authorized

The market exclusivity period prevents a successful generic or biosimilar applicant from commercializing its product in the

EU until 10 years have elapsed from the initial authorization of the reference product in the EU.

The overall 10-year market exclusivity

period can be extended to a maximum of eleven years if, during the first eight years of those 10 years, the MA holder obtains an authorization

for one or more new therapeutic indications which, during the scientific evaluation prior to their authorization, are held to bring a

significant clinical benefit in comparison with existing therapies.

However, there is no guarantee that a product will be considered by

the EU’s regulatory authorities to be a new chemical entity, and products may not qualify for data exclusivity.

The EU also provides opportunities for market

Upon receiving MA, new chemical entity, or reference product candidates, generally receive eight years of data exclusivity

and an additional two years of market exclusivity.

If granted, the data exclusivity period prevents generic or biosimilar applicants from

relying on the pre-clinical and clinical trial data contained in the dossier of the reference product when applying for a generic or biosimilar

MA in the EU during a period of eight years from the date on which the reference product was first authorized in the EU.

The market exclusivity

period prevents a successful generic or biosimilar applicant from commercializing its product in the EU until 10 years have elapsed from

the initial authorization of the reference product in the EU.

The overall 10-year market exclusivity period can be extended to a maximum

of eleven years if, during the first eight years of those 10 years, the MA holder obtains an authorization for one or more new therapeutic

indications which, during the scientific evaluation prior to their authorization, are held to bring a significant clinical benefit in

comparison with existing therapies.

However, there is no guarantee that a product will be considered by the EU’s regulatory authorities

to be a new chemical entity, and products may not qualify for data exclusivity.

Pediatric Development

In the EU, MAAs for new medicinal

products candidates have to include the results of trials conducted in the pediatric population, in compliance with a pediatric investigation

plan (PIP) agreed with the EMA’s Pediatric Committee (PDCO).

The PIP sets out the timing and measures proposed to generate data

to support a pediatric indication of the drug for which MA is being sought.

The PDCO can grant a deferral of the obligation to implement

some or all of the measures of the PIP until there are sufficient data to demonstrate the efficacy and safety of the product in adults.

Further, the obligation to provide pediatric clinical trial data can be waived by the PDCO when these data is not needed or appropriate

because the product is likely to be ineffective or unsafe in children, the disease or condition for which the product is intended occurs

only in adult populations, or when the product does not represent a significant therapeutic benefit over existing treatments for pediatric

Once the MA is obtained in all EU Member States and study results are included in the product information, even when negative,

the product is eligible for six months’ supplementary protection certificate extension (if any is in effect at the time of authorization).

In the EU, MAAs for new medicinal products candidates

have to include the results of trials conducted in the pediatric population, in compliance with a pediatric investigation plan (PIP) agreed

with the EMA’s Pediatric Committee (PDCO).

The PIP sets out the timing and measures proposed to generate data to support a pediatric

indication of the drug for which MA is being sought.

The PDCO can grant a deferral of the obligation to implement some or all of the measures

of the PIP until there are sufficient data to demonstrate the efficacy and safety of the product in adults.

Further, the obligation to

provide pediatric clinical trial data can be waived by the PDCO when these data is not needed or appropriate because the product is likely

to be ineffective or unsafe in children, the disease or condition for which the product is intended occurs only in adult populations,

or when the product does not represent a significant therapeutic benefit over existing treatments for pediatric patients.

is obtained in all EU Member States and study results are included in the product information, even when negative, the product is eligible

for six months’ supplementary protection certificate extension (if any is in effect at the time of authorization).

Post-Approval Requirements

Similar to the United States,

both MA holders and manufacturers of medicinal products are subject to comprehensive regulatory oversight by the EMA, the European Commission

and/or the competent regulatory authorities of the member states.

The holder of a MA must establish and maintain a pharmacovigilance system

and appoint an individual qualified person for pharmacovigilance who is responsible for oversight of that system.

Key obligations include

expedited reporting of suspected serious adverse reactions and submission of periodic safety update reports (PSURs).

All new MAA must include

a risk management plan (RMP) describing the risk management system that the company will put in place and documenting measures to prevent

or minimize the risks associated with the product.

The regulatory authorities may also impose specific obligations as a condition of the

Such risk-minimization measures or post-authorization obligations may include additional safety monitoring, more frequent submission

of PSURs, or the conduct of additional clinical trials or post-authorization safety studies.

The advertising and promotion

of medicinal products is also subject to laws concerning promotion of medicinal products, interactions with physicians, misleading and

comparative advertising and unfair commercial practices.

All advertising and promotional activities for the product must be consistent

with the approved summary of product characteristics, and therefore all off-label promotion is prohibited.

Direct-to-consumer advertising

of prescription medicines is also prohibited in the EU.

Although general requirements for advertising and promotion of medicinal products

are established under EU directives, the details are governed by regulations in each member state and can differ from one country to another.

The aforementioned EU rules

are generally applicable in the European Economic Area (“EEA”) which consists of the 27 EU member states plus Norway, Liechtenstein

For other countries outside

of the EU, such as countries in Latin America or Asia (e.g., China and Japan), the requirements governing the conduct of clinical studies,

product licensing, pricing and reimbursement vary from country to country.

In all cases, again, the clinical studies are conducted in

accordance with GCP and the applicable regulatory requirements and the ethical principles that have their origin in the Declaration of

If we fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension

or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

Similar to the United States, both MA holders

and manufacturers of medicinal products are subject to comprehensive regulatory oversight by the EMA, the European Commission and/or the

competent regulatory authorities of the member states.

The holder of a MA must establish and maintain a pharmacovigilance system and appoint

an individual qualified person for pharmacovigilance who is responsible for oversight of that system.

Key obligations include expedited

reporting of suspected serious adverse reactions and submission of periodic safety update reports (PSURs).

All new MAA must include a risk management plan

(RMP) describing the risk management system that the company will put in place and documenting measures to prevent or minimize the risks

associated with the product.

The regulatory authorities may also impose specific obligations as a condition of the MA.

Such risk-minimization

measures or post-authorization obligations may include additional safety monitoring, more frequent submission of PSURs, or the conduct

of additional clinical trials or post-authorization safety studies.

The advertising and promotion of medicinal products

is also subject to laws concerning promotion of medicinal products, interactions with physicians, misleading and comparative advertising

and unfair commercial practices.

All advertising and promotional activities for the product must be consistent with the approved summary

of product characteristics, and therefore all off-label promotion is prohibited.

Direct-to-consumer advertising of prescription medicines

is also prohibited in the EU.

Although general requirements for advertising and promotion of medicinal products are established under

EU directives, the details are governed by regulations in each member state and can differ from one country to another.

The aforementioned EU rules are generally applicable

in the European Economic Area (“EEA”) which consists of the 27 EU member states plus Norway, Liechtenstein and Iceland.

For other countries outside of the EU, such as

countries in Latin America or Asia (e.g., China and Japan), the requirements governing the conduct of clinical studies, product licensing,

pricing and reimbursement vary from country to country.

In all cases, again, the clinical studies are conducted in accordance with GCP

and the applicable regulatory requirements and the ethical principles that have their origin in the Declaration of Helsinki.

to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension or withdrawal of

regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution.

Privacy and data protection laws

We are also subject to laws and regulations in non-US countries covering

data privacy and the protection of health-related and other personal information.

For instance, EU member states and other jurisdictions

have adopted data protection laws and regulations, which impose significant compliance obligations.

Laws and regulations in these jurisdictions

apply broadly to the collection, use, storage, disclosure, processing, and security of personal information that identifies or may be

used to identify an individual, such as names, contact information and sensitive personal data such as health data.

These laws and regulations

are subject to frequent revisions and differing interpretations,

As of May 2018, the General

Data Protection Regulation (GDPR) replaced the Data Protection Directive with respect to the processing of personal data in the European

The GDPR imposes many requirements for controllers and processors of personal data, including, for example, higher standards for

obtaining consent from individuals to process their personal data, more robust disclosures to individuals and a strengthened individual

data rights regime, shortened timelines for data breach notifications, limitations on retention and secondary use of information, increased

requirements pertaining to health data and pseudonymized (i.e., key-coded) data and additional obligations when we contract third-party

processors in connection with the processing of the personal data.

The GDPR allows EU member states to make additional laws and regulations

further limiting the processing of genetic, biometric or health data.

Failure to comply with the requirements of GDPR and the applicable

national data protection laws of the EU member states may result in fines of up to €20,000,000 or up to 4% of the total worldwide

annual turnover of the preceding financial year, whichever is higher, and other administrative penalties.

We are also subject to laws and regulations in

non-US countries covering data privacy and the protection of health-related and other personal information.

For instance, EU member states

and other jurisdictions have adopted data protection laws and regulations, which impose significant compliance obligations.

Laws and regulations

in these jurisdictions apply broadly to the collection, use, storage, disclosure, processing, and security of personal information that

identifies or may be used to identify an individual, such as names, contact information and sensitive personal data such as health data.

These laws and regulations are subject to frequent revisions and differing interpretations,

As of May 2018, the General Data Protection Regulation

(GDPR) replaced the Data Protection Directive with respect to the processing of personal data in the European Union.

The GDPR imposes

many requirements for controllers and processors of personal data, including, for example, higher standards for obtaining consent from

individuals to process their personal data, more robust disclosures to individuals and a strengthened individual data rights regime, shortened

timelines for data breach notifications, limitations on retention and secondary use of information, increased requirements pertaining

to health data and pseudonymized (i.e., key-coded) data and additional obligations when we contract third-party processors in connection

with the processing of the personal data.

The GDPR allows EU member states to make additional laws and regulations further limiting the

processing of genetic, biometric or health data.

Failure to comply with the requirements of GDPR and the applicable national data protection

laws of the EU member states may result in fines of up to €20,000,000 or up to 4% of the total worldwide annual turnover of the preceding

financial year, whichever is higher, and other administrative penalties.

EU Medical device legislation

Medical device legislation is harmonized in the European Union (EU)

through the European Commission’s New Legislative Framework.

The new regulatory framework for medical devices, published in April

2017, is based on the Medical Devices Regulation (MDR) (EU) 2017/745 applicable for medical devices and active implantable medical devices

and the In Vitro Diagnostic Medical Devices Regulation (IVDR) (EU) 2017/746 applicable for in vitro diagnostic medical devices (IVDs).

Medical device legislation is harmonized in the

European Union (EU) through the European Commission’s New Legislative Framework.

The new regulatory framework for medical devices,

published in April 2017, is based on the Medical Devices Regulation (MDR) (EU) 2017/745 applicable for medical devices and active implantable

medical devices and the In Vitro Diagnostic Medical Devices Regulation (IVDR) (EU) 2017/746 applicable for in vitro diagnostic medical

devices (IVDs).

The dates of application of the MDR were May 26, 2021 (Article 123(2) as amended by Regulation (EU) 2020/561 and Regulation

2023/607) and May 26, 2022 (Article 113(2)), respectively.

As regulations, the legislation applies to all the EU Member States as drafted and is

applicable in the European Economic Area (EEA) which consists of the 27 EU Member States plus Norway, Liechtenstein, and Iceland.

The new regulatory framework

in EU was triggered by the breast implant scandal (2012) and various similar case scenarios, where the cause identified significant gaps

in the market surveillance and supply chain oversight as well as insufficient controls and compliance to state-of-the-art standards and

documentation.

Europe’s new regulatory framework for IVDs introduced significant changes for IVD manufacturers;

the most important

is the up-classification of IVDs (introduction of 7 classification rules and four risk classes A to D harmonized with the international

classification system), which require independent conformity assessments for most IVD Classes by independent regulatory compliance assessors

(Notified Bodies, NB).

Other changes under the IVDR are the increased NB-involvement, a new risk-based classification system and classification

rules, increased elements and compliance to General Safety and Performance Requirements (GSPR), stricter demands on clinical evidence

(scientific validity, analytical and clinical performance), stronger focus for post-market surveillance (PMS) and post-market performance

follow-up (PMPF), stricter regulatory responsibilities throughout the supply chain for economic operators (like importers or distributors)

and traceability through Unique Device Information (UDI, labelling).

Overall, the IVDR is a significant expansion of the previous EU-Directive

98/79/EC (IVDD), which has been effective for IVDs since 1998.

Since 2022, due to different reasons, the European Commission issued

various updates to the IVDR to introduce transitional provisions for certain IVDs, which are already on the EU market prior to the Date

of Application (legacy devices) and which are not to be substantially changed by function and design (Regulation (EU) 2022/112 and Regulation

(EU) 2023/6074).

The current accepted transitional periods provided for in IVDR Article 120 will end on either December 31, 2027, or December

Currently a new proposal (2024/0021 (COD)) is even proposing extended transitional periods up to December 31, 2029, for some

devices (Class B and Class A sterile) and December 31, 2028, for medium risk IVDs (Class C).

Due to these extended transition timelines

for legacy devices, many IVD manufacturers are not yet setting compliance to IVDR on their highest priority.

For the Proclarix IVDs (Assays

and Risk Calculator software), which are class C devices under IVDR, Proteomedix has already CE marked them in 2019 under IVDD and since

then started to comply with IVDR.

This includes the performance and safety of the device, specifically clinical performance testing and

addressing the clinical evidence for Proclarix.

Irrespective of the amendments

for extended transition timelines to IVDR published since 2022 by the European Commission – Proteomedix AG has selected and streamlined

the interaction with a NB (TÜV SÜD) for a conformity assessment under IVDR and passed this NB conformity assessment for their

Technical Documentation and Quality Management System according to international standard ISO 13485:2016 (“Design and development,

production and distribution of in-vitro diagnostic reagents and stand-alone software for prostate cancer management”) in July 2022.

Proteomedix AG has agreements

signed with Emergo Europe B.V.

As regulations, the legislation applies to all the EU Member States as drafted

and is applicable in the European Economic Area (EEA) which consists of the 27 EU Member States plus Norway, Liechtenstein, and Iceland.

The new regulatory framework in EU was triggered

by the breast implant scandal (2012) and various similar case scenarios, where the cause identified significant gaps in the market surveillance

and supply chain oversight as well as insufficient controls and compliance to state-of-the-art standards and documentation.

new regulatory framework for IVDs introduced significant changes for IVD manufacturers;

the most important is the up-classification of

IVDs (introduction of 7 classification rules and four risk classes A to D harmonized with the international classification system), which

require independent conformity assessments for most IVD Classes by independent regulatory compliance assessors (Notified Bodies, NB).

Other changes under the IVDR are the increased NB-involvement, a new risk-based classification system and classification rules, increased

elements and compliance to General Safety and Performance Requirements (GSPR), stricter demands on clinical evidence (scientific validity,

analytical and clinical performance), stronger focus for post-market surveillance (PMS) and post-market performance follow-up (PMPF),

stricter regulatory responsibilities throughout the supply chain for economic operators (like importers or distributors) and traceability

through Unique Device Information (UDI, labelling).

Overall, the IVDR is a significant expansion of the previous EU-Directive 98/79/EC

(IVDD), which has been effective for IVDs since 1998.

Since 2022, due to different reasons, the European

Commission issued various updates to the IVDR to introduce transitional provisions for certain IVDs, which are already on the EU market

prior to the Date of Application (legacy devices) and which are not to be substantially changed by function and design (Regulation (EU)

2022/112 and Regulation (EU) 2023/6074).

The current accepted transitional periods provided for in IVDR Article 120 will end on either

December 31, 2027, or December 31, 2028.

Currently a new proposal (2024/0021 (COD)) is even proposing extended transitional periods up

to December 31, 2029, for some devices (Class B and Class A sterile) and December 31, 2028, for medium risk IVDs (Class C).

extended transition timelines for legacy devices, many IVD manufacturers are not yet setting compliance to IVDR on their highest priority.

For the Proclarix IVDs (Assays and Risk Calculator

software), which are class C devices under IVDR, Proteomedix has already CE marked them in 2019 under IVDD and since then started to comply

This includes the performance and safety of the device, specifically clinical performance testing and addressing the clinical

evidence for Proclarix.

Irrespective of the amendments for extended transition

timelines to IVDR published since 2022 by the European Commission – Proteomedix AG has selected and streamlined the interaction

with a NB (TÜV SÜD) for a conformity assessment under IVDR and passed this NB conformity assessment for their Technical Documentation

and Quality Management System according to international standard ISO 13485:2016 (“Design and development, production and distribution

of in-vitro diagnostic reagents and stand-alone software for prostate cancer management”) in July 2022.

Proteomedix AG has agreements signed with Emergo

acting as their EU Authorized Representative (EU AR, also referred as EC REP).

The IVDR-compliance of Proclarix

devices makes them as one the first IVDs under the new EU regime and this will have several advantages to other devices marketed under

IVDD or without CE mark yet.

Because of the mentioned significant changes introduced with the IVDR, other competitors might face problems

and delays when trying to get to this stage of IVDR compliance.

As mentioned before, every new device or substantially changed device

would not be able to use the amended timelines and must fully comply with IVDR before placing them on the EU market.

Second, clients (users,

laboratories) might expect compliance with the IVDR at some degree as the new normal (of state-of-the-art quality).

Third, for the Proclarix

devices marketed since 2019 in EU, there is automatically systematic post market surveillance data collected from the field, which further

can support the clinical evidence (validity) of the Proclarix devices.

Proteomedix AG also has an

appointed Data Protection Officer (DPO) for data safety in line to requirements from General Data Protection Regulation (EU) 2016/679

(GDPR) and Swiss Data Protection Act although there are no personnel data included or affected in the Proclarix IVDs.

Switzerland and United

Kingdom (UK) Medical Device Regulation

Switzerland and United Kingdom

(UK) are not part of the EU market and in principle, become third countries with different jurisdictions and differing product regulations.

However, these two countries still align to a certain degree on the European CE Mark and CE marked devices currently can be marketed without

significant additional approval in Switzerland and UK.

For Switzerland, the new

EU Regulations (MDR/IVDR) required an update of the Mutual Recognition Agreements to include the EU Regulations, which has so far not

been negotiated by the Switzerland–EU Joint Committee for Switzerland and the EU at international treaty level.

Therefore, trading

of devices can no longer move freely between the Swiss market and the EU market and the sharing of information between authorities (incl.

EUDAMED) or the mutual recognition of certificates of conformity are not possible and must be regulated through Swiss law separately in

The new Swiss law for medical devices, the Medical Devices Ordinance (MedDO) was introduced in 2020 together with certain

obligations for Swiss manufacturers such as registration with Swissmedic.

As a consequence, Swiss manufacturers must appoint an EU-based

AR and/or importer in line with Article 11 and Article 13 of the IVDR.

For UK, IVD manufacturers

must comply with the UK MDR 2002 (Medical device Regulation), which has been revised several times with new guidelines addressed in the

Guidance on the Regulation of In Vitro Diagnostic Medical Devices in Great Britain.

Similar to EU, IVD manufacturers must identify the

appropriate conformity assessment procedure for their device and demonstrate compliance with relevant requirements of the applicable legislation

for IVDs in the UK for the purpose of affixing the UKCA mark to their device (UK MDR 2002 Part IV).

UKCA marking (UK Conformity Assessed

marking) is the UK product marking requirement that will be needed for devices being placed on the market in UK, substituting the EU requirements

for CE Marking (CE marking will continue to be accepted in Northern Ireland).

Most of these IVDs will then require a designated UK Authorized

Body (UKAB)-issued certificate (similar to an EU CE Marking Certificate).

EN ISO 13485:2016 is the designated standard under the UK MDR

2002 that covers QMS requirements for medical device manufacturers.

In the UK, device manufacturers must further appoint a single “UK

Responsible Person” for all of their devices, who will act on the manufacturer’s behalf to perform tasks, including product

registration.

However, for medical devices with a valid CE marking placed on the UK-market, there was a transition time until 1 July 2023

(no requirement to re-label the device with a UKCA mark), and the UK government recently has extended acceptance of CE marked devices

in UK beyond 30 June 2023 (MDR 2002, SI 2002 No 618, as amended).

Therefore, Proteomedix AG

with a valid CE mark for EU (IVDR) and appointed EU-AR, and local registration in Switzerland (Swissmedic) is in full compliance to the

current changed requirements on the EU, Swiss and UK markets.

The IVDR-compliance of Proclarix devices makes

them as one the first IVDs under the new EU regime and this will have several advantages to other devices marketed under IVDD or without

Because of the mentioned significant changes introduced with the IVDR, other competitors might face problems and delays when

trying to get to this stage of IVDR compliance.

As mentioned before, every new device or substantially changed device would not be able

to use the amended timelines and must fully comply with IVDR before placing them on the EU market.

Second, clients (users, laboratories)

might expect compliance with the IVDR at some degree as the new normal (of state-of-the-art quality).

Third, for the Proclarix devices

marketed since 2019 in EU, there is automatically systematic post market surveillance data collected from the field, which further can

support the clinical evidence (validity) of the Proclarix devices.

Proteomedix AG also has an appointed Data Protection

Officer (DPO) for data safety in line to requirements from General Data Protection Regulation (EU) 2016/679 (GDPR) and Swiss Data Protection

Act although there are no personnel data included or affected in the Proclarix IVDs.

Switzerland and United Kingdom (UK) Medical

Device Regulation

Switzerland and United Kingdom (UK) are not part

of the EU market and in principle, become third countries with different jurisdictions and differing product regulations.

However, these

two countries still align to a certain degree on the European CE Mark and CE marked devices currently can be marketed without significant

additional approval in Switzerland and UK.

For Switzerland, the new EU Regulations (MDR/IVDR)

required an update of the Mutual Recognition Agreements to include the EU Regulations, which has so far not been negotiated by the Switzerland–EU

Joint Committee for Switzerland and the EU at international treaty level.

Therefore, trading of devices can no longer move freely between

the Swiss market and the EU market and the sharing of information between authorities (incl.

EUDAMED) or the mutual recognition of certificates

of conformity are not possible and must be regulated through Swiss law separately in Switzerland.

The new Swiss law for medical devices,

the Medical Devices Ordinance (MedDO) was introduced in 2020 together with certain obligations for Swiss manufacturers such as registration

with Swissmedic.

As a consequence, Swiss manufacturers must appoint an EU-based AR and/or importer in line with Article 11 and Article

13 of the IVDR.

For UK, IVD manufacturers must comply with the

UK MDR 2002 (Medical device Regulation), which has been revised several times with new guidelines addressed in the Guidance on the Regulation

of In Vitro Diagnostic Medical Devices in Great Britain.

Similar to EU, IVD manufacturers must identify the appropriate conformity assessment

procedure for their device and demonstrate compliance with relevant requirements of the applicable legislation for IVDs in the UK for

the purpose of affixing the UKCA mark to their device (UK MDR 2002 Part IV).

UKCA marking (UK Conformity Assessed marking) is the UK product

marking requirement that will be needed for devices being placed on the market in UK, substituting the EU requirements for CE Marking

(CE marking will continue to be accepted in Northern Ireland).

Most of these IVDs will then require a designated UK Authorized Body (UKAB)-issued

certificate (similar to an EU CE Marking Certificate).

EN ISO 13485:2016 is the designated standard under the UK MDR 2002 that covers

QMS requirements for medical device manufacturers.

In the UK, device manufacturers must further appoint a single “UK Responsible

Person” for all of their devices, who will act on the manufacturer’s behalf to perform tasks, including product registration.

However, for medical devices with a valid CE marking placed on the UK-market, there was a transition time until 1 July 2023 (no requirement

to re-label the device with a UKCA mark), and the UK government recently has extended acceptance of CE marked devices in UK beyond 30

June 2023 (MDR 2002, SI 2002 No 618, as amended).

Therefore, Proteomedix AG with a valid CE mark

for EU (IVDR) and appointed EU-AR, and local registration in Switzerland (Swissmedic) is in full compliance to the current changed requirements

on the EU, Swiss and UK markets.

Proteomedix AG has agreements signed with Emergo Consulting (UK) Ltd.

as their UK Responsible Person.

acting as their UK Responsible

The requirement to comply with UKCA marking would apply after 30 June 2030.

EU – Impact and

market opportunities on other non-EU markets

With the overall intend from regulators to harmonize regulation, the

CE marking and compliance to European IVDR for the Proclarix can be considered as a state-of-the-art regulatory compliance with high potential

to enter other markets.

Some of these like Australia, New Zealand or Singapore and other markets recognize the CE mark and – though

they might have separate approval procedures – are expected to mainly rely on the CE Certificate.

For example, Australia and New

Zealand have a Trans-Tasman Mutual Recognition Arrangement (TTMRA), which means that CE mark can be recognized and sold without additional

regulatory processes.

Brazil’s medical device market regulator, ANVISA, recently announced updates to the IVD legislation as Resolution

(RDC) 830/2023 similar to the EU definition and classification of IVD under IVDR.

For US, the FDA recently in January 2024 amended their

title of their Quality System regulation part 820 (QSR), and integrated elements and concepts from ISO 13485:2016 into their new Quality

Management System Regulation (QMSR).

These examples demonstrate

that Proclarix with established CE mark (IVDR) and ISO 13485:2016 QMS has high potential to get faster market access in other non-EU countries,

It can be expected that more non-EU country legislations will further adapt their approval or acceptance process to the level of

IVDR or ISO 13485 in the forthcoming years.

EU – Impact and market opportunities

on other non-EU markets

With the overall intend from regulators to harmonize

regulation, the CE marking and compliance to European IVDR for the Proclarix can be considered as a state-of-the-art regulatory compliance

with high potential to enter other markets.

Some of these like Australia, New Zealand or Singapore and other markets recognize the CE

mark and – though they might have separate approval procedures – are expected to mainly rely on the CE Certificate.

Australia and New Zealand have a Trans-Tasman Mutual Recognition Arrangement (TTMRA), which means that CE mark can be recognized and sold

without additional regulatory processes.

Brazil’s medical device market regulator, ANVISA, recently announced updates to the IVD

legislation as Resolution (RDC) 830/2023 similar to the EU definition and classification of IVD under IVDR.

For US, the FDA recently in

January 2024 amended their title of their Quality System regulation part 820 (QSR), and integrated elements and concepts from ISO 13485:2016

into their new Quality Management System Regulation (QMSR).

These examples demonstrate that Proclarix with

established CE mark (IVDR) and ISO 13485:2016 QMS has high potential to get faster market access in other non-EU countries, too.

be expected that more non-EU country legislations will further adapt their approval or acceptance process to the level of IVDR or ISO

13485 in the forthcoming years.

Intellectual Property

Proteomedix’s biomarkers were discovered using a genetics-guided

discovery approach focusing on the PI3K/PTEN cancer pathway that plays a dominant role in prostate cancer development.

Applying proteomics

technology to a disease-relevant mouse model allowed the identification of proteins specifically linked to the molecular cause of prostate

The biomarkers and the bioinformatics algorithm used in Proclarix are protected by issued and pending patents in Europe, the United

States, and other countries.

Cancer arises from different

genetic mutations that can be linked to specific signaling pathways often referred to as cancer pathways.

Depending on what pathway is

affected in a patient, results in different cancer subtypes that are more or less aggressive and further determines if a patient responds

to a certain drug treatment or not.

Proteomedix’s biomarkers

were discovered by a group of researchers at ETH Zurich using a genetics-guided discovery approach focusing on the PI3K/PTEN cancer pathway

that plays a dominant role in prostate cancer development.

Using a mouse model and mass-spectrometry based proteomics technology including

a glycoprotein enrichment technology led to the identification of proteins directly linked to the molecular cause of cancer and therefore

correlating to the disease status in the prostate.

Different serum glycoproteins were combined to form multiplexed biomarker signatures

predictive for tissue PI3K/PTEN status as well as diagnosis and prognosis of prostate cancer (Figure 5).

The genetic-guided proteomics

approach enabled the fast discovery and validation of several biomarkers which in different combinations correspond to diagnosis, prognosis

and potentially to therapy response.

Proteomedix’s biomarkers were discovered

using a genetics-guided discovery approach focusing on the PI3K/PTEN cancer pathway that plays a dominant role in prostate cancer development.

Applying proteomics technology to a disease-relevant mouse model allowed the identification of proteins specifically linked to the molecular

cause of prostate cancer.

The biomarkers and the bioinformatics algorithm used in Proclarix are protected by issued and pending patents

in Europe, the United States, and other countries.

Cancer arises from different genetic mutations

that can be linked to specific signaling pathways often referred to as cancer pathways.

Depending on what pathway is affected in a patient,

results in different cancer subtypes that are more or less aggressive and further determines if a patient responds to a certain drug treatment

Proteomedix’s biomarkers were discovered

by a group of researchers at ETH Zurich using a genetics-guided discovery approach focusing on the PI3K/PTEN cancer pathway that plays

a dominant role in prostate cancer development.

Using a mouse model and mass-spectrometry based proteomics technology including a glycoprotein

enrichment technology led to the identification of proteins directly linked to the molecular cause of cancer and therefore correlating

to the disease status in the prostate.

Different serum glycoproteins were combined to form multiplexed biomarker signatures predictive

for tissue PI3K/PTEN status as well as diagnosis and prognosis of prostate cancer (Figure 5).

The genetic-guided proteomics approach enabled

the fast discovery and validation of several biomarkers which in different combinations correspond to diagnosis, prognosis and potentially

to therapy response.

Proteomics approach to improve prostate cancer disease

The biomarker assays were

transferred from a mass spectrometry-based to an immunoassay-based platform.

Immunoassay-based measurement offers several advantages compared

to other analytical methods.

The biomarker assays were transferred from a mass

spectrometry-based to an immunoassay-based platform.

Immunoassay-based measurement offers several advantages compared to other analytical

In general, immunoassays provide a rapid, sensitive, reproducible, cost effective and easily manageable analysis.

The reagents used are stable and the method is established in routine diagnostic laboratories guaranteeing broad compatibility of Proteomedix’s

used are stable and the method is established in routine diagnostic laboratories guaranteeing broad compatibility of Proteomedix’s

tests on established automated clinical platforms and thus rapid adoption rates and platform flexibility of the diagnostic tests.

1 unchanged sentence

partnerships.

In 2021, Proteomedix entered

into a research and development partnership with New Horizon Health Limited, Grand Cayman, Cayman Islands.

The partnership builds on complimentary

platform and biomarker developments with utility in cancer patient management.

In 2022, Immunovia AB (Sweden)

partnered with Proteomedix to leverage Proteomedix’s research and development capabilities and advances their research and development

In 2021, Proteomedix entered into a research and

development partnership with New Horizon Health Limited, Grand Cayman, Cayman Islands.

The partnership builds on complimentary platform

and biomarker developments with utility in cancer patient management.

In 2022, Immunovia AB (Sweden) partnered with

Proteomedix to leverage Proteomedix’s research and development capabilities and advances their research and development efforts.

With this partnership, Immunovia gained a more flexible research and development organization, increased its research and development

4 unchanged sentences

and Proteomedix with Proclarix® in

Proteomedix has exclusively licensed worldwide rights to one patent

family from ETH Zurich and the State Hospital of St.

Gallen, which describes and protects the use of the proprietary biomarkers for diagnosing

and monitoring prostate cancer.

The parent international patent application WO 2009138392 A1 was filed on May 12, 2009, claims a priority

date of May 14, 2008 (priority date) and was granted in China (CN201027373B), Europe (EP2281201B1), Japan (JP6025607B) and the United

States (US10151755B2/ US9377463B2).

Proteomedix has also obtained a non-exclusive license from ETH Zurich

for certain patents pertaining to specific enrichment of glycoproteins, including EP1514107 (expired June 3, 2023) and US7183118 (to expire

May 3, 2024), that ETH Zurich licensed from the Institute for Systems Biology (ISB), Seattle.

The license enables Proteomedix to use the

glycoprotein technology for the development of new diagnostic products.

In addition, a new patent covering the latest development and clinical

results was filed by Proteomedix on July 11, 2017, claiming a priority of July 15, 2016.

The patent covers the specific test format and

algorithm contained in Proteomedix’s first product (Proclarix) for the improved diagnosis of prostate cancer.

An international application

(WO2018011212A1) was filed, and the patent was granted in Europe (EP3270163B1), Japan (JP6979712B2), South Korea (KR102408276B1), Australia

(AU2017294979B2), United States (US11320435B2, with term extension of 377 days) and China (CN109477836B) with the application still pending

in Canada (CA3028874A1).

A patent application

describing and claiming a method combining Proclarix and magnetic resonance imaging to diagnose prostate cancer was filed by

Proteomedix on June 29, 2021.

The patent was originally filed in Switzerland and subsequently as PCT application (WO2023274742A1)

and as national applications in the United States and China.

A patent application

describing and claiming a method measuring a blood-based protein combination with prognostic utility in prostate cancer patients was

filed by Proteomedix on June 29, 2021.

The patent was originally filed in Switzerland followed by an international application

(WO2018011212A1).

National applications were filed in Europe, United States and China.

The brand “Proteomedix”

was filed on June 4, 2010, and registered under no.

Proteomedix has exclusively licensed worldwide

rights to one patent family from ETH Zurich and the State Hospital of St.

Gallen, which describes and protects the use of the proprietary

biomarkers for diagnosing and monitoring prostate cancer.

The parent international patent application WO 2009138392 A1 was filed on May

12, 2009, claims a priority date of May 14, 2008 (priority date) and was granted in China (CN201027373B), Europe (EP2281201B1), Japan

(JP6025607B) and the United States (US10151755B2/ US9377463B2).

Proteomedix has also obtained a non-exclusive

license from ETH Zurich for certain patents pertaining to specific enrichment of glycoproteins, including EP1514107 (expired June 3, 2023)

and US7183118 (to expire May 3, 2024), that ETH Zurich licensed from the Institute for Systems Biology (ISB), Seattle.

The license enables

Proteomedix to use the glycoprotein technology for the development of new diagnostic products.

In addition, a new patent covering the latest

development and clinical results was filed by Proteomedix on July 11, 2017, claiming a priority of July 15, 2016.

The patent covers the

specific test format and algorithm contained in Proteomedix’s first product (Proclarix) for the improved diagnosis of prostate cancer.

An international application (WO2018011212A1) was filed, and the patent was granted in Europe (EP3270163B1), Japan (JP6979712B2), South

Korea (KR102408276B1), Australia (AU2017294979B2), United States (US11320435B2, with term extension of 377 days) and China (CN109477836B)

with the application still pending in Canada (CA3028874A1).

A patent application describing and claiming a

method combining Proclarix and magnetic resonance imaging to diagnose prostate cancer was filed by Proteomedix on June 29, 2021.

was originally filed in Switzerland and subsequently as PCT application (WO2023274742A1) and as national applications in the United States

A patent application describing and claiming a

method measuring a blood-based protein combination with prognostic utility in prostate cancer patients was filed by Proteomedix on June

The patent was originally filed in Switzerland followed by an international application (WO2018011212A1).

National applications

were filed in Europe, United States and China.

The brand “Proteomedix” was filed

on June 4, 2010, and registered under no.

602190 in Switzerland on June 22, 2010.

This application served as the basis for the

international trademark application.

This application served as the basis for the international

trademark application.

The product name “Proclarix” was filed on July 1, 2019, and registered under no.

in Switzerland on July 22, 2019.

733974 in Switzerland

on July 22, 2019.

This application served as the basis for the international trademark application.

2 unchanged sentences

733975 in Switzerland on July 22, 2019.

Exclusive License Agreement with Children’s

Hospital Medical Center, d/b/a Cincinnati Children’s Hospital Medical Center

On June 1, 2021 (the “Effective

Date”), the Company entered into a license agreement with Children’s Hospital Medical Center, d/b/a Cincinnati Children’s

Hospital Medical Center (“CHMC”), to develop and commercialize certain CHMC patents and related technology directed at a VLP

vaccine platform that utilizes nanoparticle delivery technology, which may have potential broad application to develop vaccines for multiple

infectious diseases (“the CHMC Agreement”).

However, as Onconetix has now deprioritized its infectious disease vaccine programs

based on a change in clinical focus, we are exploring ways in which CHMC’s VLP platform can be used in therapeutic and diagnostic

applications in oncology.

The license is exclusive,

worldwide, and is for all uses (other than the “Excluded Field” of immunization against, and prevention, control, or reduction

in severity of gastroenteritis caused by Rotavirus and Norovirus in China and Hong Kong).

The license is sublicensable with prior CHMC

written approval consistent with the terms of the CHMC Agreement.

The CHMC Agreement includes

the below patents, which we refer to as the “Licensed Patents”, and any divisionals, continuations and continuations-in-part

thereto (solely to the extent that the claims in the continuations-in-part are directed to the subject matter specifically claimed in

the Licensed Patents, and they have the same priority date as the Licensed Patents, but do not include any different or additional claims),

and any patents resulting therefrom:

Application No.

Granted Claim Type

Foreign Counterparts

Compositions of the vaccine/vaccine platform

CN107043408B EP2440582B1 JP5894528B2

Method of treatment

CN107043408B EP2440582B1 JP5894528B2

Compositions of the vaccine platform

Pending applications in Canada, China, EU, Hong Kong and Japan

(filed 2/16/2021)

[February 2042] #

(filed 3/17/2021)

[March 2042] #

* Projected expiration if patent

20 years from earliest non-provisional application filing date.

# Non-provisional application

not yet filed.

Expiration projected 21 years from provisional application filing date.

Dependent on timely conversion to non-provisional

application and issuance of patent.

** This is a pending application.

Claim type will be determined after U.S.

prosecution is complete.

The claim type sought includes compositions of the vaccine and vaccine

The CHMC Agreement also grants

the Company a non-exclusive limited license to use and copy internally any technical information in existence and known before the Effective

Date by CHMC solely as necessary for the use and practice of the Licensed Patents (the “CHMC Technology”).

The term of the CHMC Agreement

begins on the Effective Date and extends on a jurisdiction by jurisdiction and product by product basis until the later of:

to expire Licensed Patent;

(ii) ten (10) years after the first commercial sale or (iii) entrance onto the market of a biosimilar or interchangeable

CHMC has reserved the right to practice, have practiced, and transfer the Licensed Patents and CHMC Technology for research and

development purposes, including education, research, teaching, publication and public service, but not to use or practice the Licensed

Patents or CHMC Technology in the Field of Use for any commercial or profit purpose.

The Licensed Patents granted

to the Company under the CHMC Agreement are also subject to any rights of the United States federal, state and/or local Government(s),

as well as nonprofit entities, if certain patents or technologies were created in the course of Government-funded or non-profit entity-funded

The CHMC Agreement also contains compulsory licensing provisions under which CHMC must notify the Company in writing whenever

CHMC may become aware of third parties that are interested in obtaining rights to the Licensed Patents or CHMC Technology for purposes

that are beyond the scope of the Company’s development and commercialization plan.

The Company may elect to pursue the new purposes

itself (and negotiate commercially reasonable development targets) or enter into sublicense negotiations with the interested third party.

However, if the Company fails to meet its development targets for the new purposes or fails to enter into a sublicense agreement with

the interested third party within nine (9) months of the notice from CHMC, then the new purpose will be excluded from the license grant

and CHMC will be free to pursue licensing of the Licensed Patents or CHMC Technology within the Excluded Field to an interested third

patented modification, alteration or improvement of any invention claimed in a Licensed Patents or CHMC Technology which is conceived

or reduced to practice solely by the Company (“Company Improvement”) is owned by the Company;

however, for any such Company

Improvement, the Company will automatically grant to CHMC a worldwide, perpetual, sublicensable, nonexclusive, paid-up, royalty-free

license to use any Company Improvements solely for clinical or non-clinical, non-commercial research, testing, educational and patient

care purposes.

The CHMC Agreement also provides the Company with an option to license any CHMC or jointly patented modification, alteration

or improvement of any invention claimed in a Licensed Patent (“CHMC Improvement” and “Joint Improvement, respectively”),

with option fee for each Improvement that the Company elects to include in the license grant of the CHMC Agreement.

Company is required to pay CHMC an aggregate of up to $59.75 million upon the achievement of specified development milestones, of approximately

$0.5 million, regulatory milestones, of approximately $1.25 million and commercial milestones of approximately $58 million (excluding

any royalty arrangements).

In the event the Company enters into a sublicense agreement with a third party who is not an affiliate, then

the Company is obligated to pay CHMC a percentage of all non-royalty sublicensing revenue.

Specifically, the Company must pay twenty-five

percent (25%) for revenue received from the sublicensee prior to first net sale of a licensed product, fifteen percent (15%) for revenue

received after first net sale of a licensed product or five percent after the first sale of a second licensed product.

No annual maintenance

fee is required.

to the CHMC Agreement, the Company paid to CHMC a one-time $25,000 initial license fee;

thereafter, in fiscal year ended December 31,

2022, the Company paid $200,000 in deferred license fees.

Under the CHMC Agreement, the Company is obligated to use commercially

reasonable efforts to bring licensed products to market through diligent research and development, testing, manufacturing, and commercialization

and to use best efforts to make all necessary regulatory filings and obtain all necessary regulatory approvals, and achieve milestones

relating to development and sales, and report to CHMC on progress.

The Company will also be obligated to pay the agreed upon development

milestone payments to CHMC.

milestones include:

(i) IND filings of each Licensed Product;

(ii) Biologics License Applications (“BLAs”) or equivalent

allowed for Licensed Product in U.S.

(iii) first commercial sale of licensed product in the U.S.;

(iv) first commercial sale

of licensed product in the E.U.;

(v) first commercial sale of licensed product in Japan;

(vi) first commercial sale in Rest of World

(vii) conclusion of the first calendar year.

Pursuant to the terms of the CHMC Agreement, if the Company fails to achieve milestones

or make milestone payments on certain milestones and cannot mutually agree with CHMC on an amendment to the milestones, then CHMC will

have the option of converting any and all of such exclusive licenses to nonexclusive licenses.

In addition to the fees discussed above, beginning on the first Net

Sale, the Company will pay CHMC running royalties on a quarterly basis as a percentage of Net Sales (as defined in the CHMC Agreement)

of the Company, its affiliates, and any subsidiaries.

Similarly, in the event the Company enters into a sublicense agreement, the Company

shall pay CHMC a percentage of all non-royalty sublicensing revenues received from the sublicensee.

There is a 5% royalty rate for products

and processes for P-Particle VLP Bivalent vaccine for norovirus and rotavirus;

a 4% royalty rate for products and processes for Universal

Flu Vaccine(s);

and a 2% royalty rate for all other products or processes for other indications.

To date, no payments have been made related

to the milestones or royalties.

Before any Valid Claims (as defined in the CHMC Agreement) exist, the running royalty rates are reduced

by fifty percent (50%).

CHMC Agreement also contains an anti-stacking provision pursuant to which in the event the Company is legally required to pay royalties

to one or more third parties whose patent rights dominate the Licensed Patents and would therefore be infringed by exercise of the license

rights granted in the CHMC Agreement, the Company may reduce running royalty payments by fifty percent (50%).

In the event the Company

grants sublicenses, the Company is obligated to pay CHMC as follows:

(i) specified percentage of revenue received prior to first Net

Sale of first Licensed Product;

(ii) specified percentage for revenue received after first Net Sales of first Licensed Product but before

first Net Sales of second Licensed Product;

or (iii) specified percentage for revenues received after first Net Sales of second Licensed

CHMC reserved the first and sole right, using in-house or outside legal

counsel selected by CHMC, to prepare, file, prosecute, maintain, and extend patents and patent applications, and the Company agreed to

reimburse CHMC for its legal and administrative costs incurred in the course of doing such.

The Company also agreed to reimburse CHMC

for incurred legal fees of approximately $177,100 as of the Effective Date.

CHMC will provide the Company a reasonable opportunity to

comment during prosecution and will consider the Company’s comments, but CHMC retained control over all final decisions.

elects to not be responsible for the prosecution or maintenance of any such patents, the Company will receive sixty (60) days’ prior

written notice upon which the Company may elect, at the Company’s expense, to assume the responsibilities and obligations to prosecute

and maintain the patents (among other things);

thereafter, the Company will use reasonable efforts to give CHMC an opportunity to comment,

but the final decision with respect to such matter will remain with the Company.

CHMC Agreement contains no CHMC representations or warranties.

The CHMC Agreement also requires the Company to indemnify CHMC and other

related parties against all claims, suit, actions, demands, judgments, or investigations arising out of any product the Company produces

under the CHMC Agreement, as set forth in the CHMC Agreement, and requires the Company, beginning with the earlier of the first clinical

trial or commercial sale or other commercialization to obtain liability insurance.

will have the first and sole right but not the obligation, at its own expense, to initiate an infringement suit or other appropriate

actions against third party infringers and receives all therefrom.

For joint suits initiated against third party infringers and receives

damages or profits recovered therefrom.

In the event CHMC does not, within six (6) months after becoming aware of infringement, secure

cessation of the infringement, the Company will have the right to initiate suit at its own expense.

Any damages or profits that the Company

recovers will be treated as Net Sales subject to royalties after the Company has been compensated for its costs in handling such action.

In the event of a joint infringement suit, the Company and CHMC will agree in writing who will control the action and how cost and recoveries

will be shared.

Company may terminate the CHMC Agreement for convenience at any time prior to first commercial sale of a product or process by providing

one hundred and eighty (180) days’ written notice to CHMC.

It may also terminate for a CHMC uncured material breach.

CHMC may terminate

the CHMC Agreement for an uncured Company material breach or insolvency or bankruptcy.

In the event the Company’s material breach

is for failure to meet any of the milestone payments, the Company is entitled to a nonexclusive license to continue developing indications

that have already entered development at any stage or in which the Company has invested in developing.

CHMC may also terminate the CHMC

Agreement to the fullest extent permitted by law in the countries of the worldwide territory, in the event the Company or its affiliates

challenge or induce others set up challenges to the validity or enforceability of any of the Licensed Patents and the Company will be

obligated reimburse CHMC for its costs, including reasonable attorneys’ fees.

Manufacturing

We currently do not own or

operate any manufacturing facilities.

Manufacturing and Supply

We currently do not own or operate any manufacturing

For Proclarix, we outsource manufacturing to a CMO in Germany.

The manufacturing of Proclarix is

outsourced to a CMO in Germany.

All of the key reagents used in Proteomedix’s IVD kits (i.e., antigens and antibodies) are proprietary

and owned exclusively by Proteomedix.

These reagents are produced by an independent supplier in Germany and shipped to the CMO for manufacturing

of the IVD kits.

The development and production of the Proclarix risk calculator software and the hosting of the Proclarix risk calculator

software are performed by external suppliers.

For ENTADFI, we utilize third-party manufacturers for the pharmaceuticals, bottle fill,

finish, labeling, bottle serialization, warehousing, and distribution.

with Cardinal Health

On September 21, 2023, the

Company entered into an Exclusive Distribution Agreement (the “Exclusive Distribution Agreement”), effective as of September

20, 2023 (the “Effective Date”), with Cardinal Health 105, LLC (“Cardinal Health”).

Pursuant to, and subject

to the terms and conditions of, the Exclusive Distribution Agreement, the Company engaged Cardinal Health as its exclusive third-party

logistics distribution agent for sales of ENTADFI and any other products the parties mutually agree to.

The term of the Distribution Agreement is three

years from the Effective Date and automatically renews for additional terms of one year each unless terminated pursuant to the terms

of the Exclusive Distribution Agreement.

Under the terms of the Exclusive Distribution Agreement, the Company must pay to Cardinal Health

a one-time start-up fee of $15,500, and if we proceed with commercialization of ENTADFI, upon its launch, a monthly account management

fee of $7,000, and other fees for various services, including post-launch program implementation, information systems, warehouse operations

and financial services.

As of April 5, 2024, we had 12 full-time and 11 subcontracted employees.

All of the key reagents used in Proteomedix’s IVD kits

(i.e., antigens and antibodies) are proprietary and owned exclusively by Proteomedix.

These reagents are produced by an independent supplier

in Germany and shipped to the CMO for manufacturing of the IVD kits.

The development and production of the Proclarix risk calculator software

and the hosting of the Proclarix risk calculator software are performed by external suppliers.

As of May 30, 2025, we had 5 full-time and 2 subcontracted

None of our employees are represented by a collective bargaining agreement, and we have never experienced any work stoppage.

we have good relations with our employees.

and Facilities

currently lease an office located at 201 E Fifth Street, Suite 1900, Cincinnati, OH 45202, which is renewed on a monthly basis.

Additionally, Proteomedix

leases office and lab space located at Wagistrasse 23, 8952 Schlieren, Switzerland.

This lease expires on June 30, 2025, subject to renewal

for successive two-year terms.

We believe we have good relations with our employees.

Properties and Facilities

We currently lease an office located at 201 E

Fifth Street, Suite 1900, Cincinnati, OH 45202, which is renewed on a monthly basis.

Additionally, Proteomedix leases office and lab

space located at Wagistrasse 23, 8952 Schlieren, Switzerland.

This lease expires on June 30, 2025, subject to renewal for successive two-year

The lease will automatically renew unless terminated.

Either party may terminate the lease with 12 months’

written notice.

were incorporated on October 22, 2018 under the laws of the State of Delaware.

Our principal executive offices are located at 201 E

Fifth Street, Suite 1900, Cincinnati, OH 45202, and our telephone number is (513) 620-4101.

Either party may terminate the lease with 12 months’ written notice.

Corporate Information

We were incorporated on October 22, 2018 under

the laws of the State of Delaware.

Our principal executive offices are located at 201 E Fifth Street, Suite 1900, Cincinnati, OH 45202,

and our telephone number is (513) 620-4101.

Our corporate website address is www.onconetix.com .

We make available free of charge on or through our Internet website our annual report on Form 10-K, quarterly reports on Form 10-Q, current

reports on Form 8-K, proxy statements on Schedule 14A, and amendments to those reports filed or furnished pursuant to Section 13(a) or

15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the

Alternatively, you may also access our reports at the SEC’s website at www.sec.gov.

November 10, 2022, the Company’s Board of Directors approved a share repurchase program to allow for the Company to repurchase

up to 5 million shares of common stock, with discretion to management to make purchases subject to market conditions.

The maximum purchase

price is $2.00 per share and there is no expiration date for this program.

the fiscal year ended December 31, 2023, the Company repurchased 57,670 shares of common stock, for an aggregate of approximately $59,000,

at an average price of $1.02 per share.

2022 Private Placement

April 19, 2022, we consummated the closing of a Private Placement (the “April 2022 Private Placement”), in which we received

approximately $6.9 million in net cash proceeds, pursuant to the terms and conditions of the Securities Purchase Agreement, dated as

of April 13, 2022 (the “April Purchase Agreement”), by and among the Company and certain purchasers named on the signature

pages thereto.

At the closing of the April 2022 Private Placement, the Company issued 590,406 shares of common stock, pre-funded warrants

to purchase an aggregate of 590,406 shares of common stock and preferred investment options to purchase up to an aggregate of 1,180,812

shares of common stock.

The purchase price of each share of common stock together with the associated preferred investment option was

$6.775, and the purchase price of each pre-funded warrant and associated preferred investment option was $6.774.

The aggregate net cash

proceeds to the Company from the April 2022 Private Placement were approximately $6.9 million, after deducting placement agent fees and

other offering expenses.

Wainwright & Co.,

LLC (“Wainwright”) acted as the exclusive placement agent for the April 2022 Private Placement and received a cash fee of

approximately $600,000, which was equivalent to 7.5% of the aggregate gross proceeds of the offering, and received warrants (the “April

Wainwright Warrants”) to purchase up to 70,849 shares of our common stock, which was equivalent to 6.0% of the shares and pre-funded

warrants sold in the April 2022 Private Placement.

We also paid Wainwright a management fee equal to approximately $80,000, which

is equivalent to 1.0% of the aggregate gross proceeds from the offering, and reimbursed certain out-of-pocket expenses up to an aggregate

amount of $85,000.

We also agreed, upon any exercise for cash of any preferred investment options, to issue to Wainwright warrants to

purchase the number of shares equal to 6.0% of the aggregate number of placement shares underlying the preferred investment options that

have been exercised (the “April Contingent Warrants”), up to a maximum of 70,849 shares.

The maximum number of April Contingent

Warrants were exchanged for August Contingent Warrants (as defined below) in connection with the August 2022 Private Placement (as defined

connection with the April 2022 Private Placement, we entered into a registration rights agreement with the purchasers, dated as of April

13, 2022 (the “April Registration Rights Agreement”), pursuant to which we filed a registration statement covering the resale

of registrable securities under the April Registration Rights Agreement, which was declared effective on May 20, 2022.

the occurrence of any Event (as defined in the April Registration Rights Agreement), which, among others, includes the purchasers being

prohibited from reselling the securities acquired in the April 2022 Private Placement for more than ten (10) consecutive calendar days

or more than an aggregate of fifteen (15) calendar days during any 12-month period, we are obligated to pay to each purchaser, on each

monthly anniversary of each such Event, an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of

2.0% multiplied by the aggregate subscription amount paid by such purchaser pursuant to the April 2022 Purchase Agreement.

2022 Private Placement

On August 11, 2022, the Company consummated the closing of a private

placement (the “August 2022 Private Placement”), pursuant to the terms and conditions of a securities purchase agreement,

dated as of August 9, 2022.

At the closing of the August 2022 Private Placement, the Company issued 1,350,000 shares of common stock,

pre-funded warrants to purchase an aggregate of 2,333,280 shares of common stock and preferred investment options to purchase up to an

aggregate of 4,972,428 shares of common stock.

The purchase price of each share of common stock together with the associated preferred

investment option was $2.715, and the purchase price of each pre-funded warrant together with the associated preferred investment option

The aggregate net cash proceeds to the Company from the August 2022 Private Placement were approximately $8.7 million, after

deducting placement agent fees and other offering expenses.

In addition, the investors in the August 2022 Private Placement, who are the

same investors from the April 2022 Private Placement, agreed to cancel preferred investment options to purchase up to an aggregate of

1,180,812 shares of the Company’s common stock issued in April 2022.

The pre-funded warrants had an exercise price of $0.001 per

During 2022, an aggregate of 1,686,640 of the pre-funded warrants were exercised.

The remaining 646,640 of pre-funded warrants

were exercised during the year ended December 31, 2023.

The preferred investment options are exercisable at any time on or after August

11, 2022 through August 12, 2027, at an exercise price of $2.546 per share, subject to certain adjustments as defined in the agreement.

During the year ended December 31, 2023, 2,486,214 of these preferred investment options were exercised at a reduced exercise price of

$1.09, in connection with the Warrant Inducement Transaction discussed below.

Wainwright acted as the exclusive

placement agent for the August 2022 Private Placement.

The Company agreed to pay Wainwright a placement agent fee of approximately $750,000

and a management fee of approximately $100,000, which equal to 7.5% and 1.0%, respectively, of the aggregate gross proceeds from the August

2022 Private Placement and reimbursed certain out-of-pocket expenses up to an aggregate of $85,000.

In addition, the Company issued warrants

to Wainwright (the “August Wainwright Warrants”) to purchase up to 220,997 shares of common stock.

The August Wainwright Warrants

are in substantially the same form as the preferred investment options, except that the exercise price is $3.3938.

The form of the preferred

investment options is a warrant, and as such the preferred investment options, the pre-funded warrants, and the August Wainwright Warrants

are collectively referred to as the “August 2022 Private Placement Warrants”.

Further, upon any exercise for cash of any preferred

investment options, the Company agreed to issue to Wainwright additional warrants to purchase the number of shares of common stock equal

to 6.0% of the aggregate number of shares of common stock underlying the preferred investment options that have been exercised, also with

an exercise price of $3.3938 (the “August Contingent Warrants”).

The maximum number of August Contingent Warrants issuable

under this provision is 298,346, which includes 70,849 of April Contingent Warrants that were modified in connection with the August 2022

Private Placement.

In connection with the August 2022 Private Placement, the Company entered

into a Registration Rights Agreement with the purchasers, dated as of August 9, 2022 (the “August Registration Rights Agreement”).

The August Registration Rights Agreement provides that the Company shall file a registration statement covering the resale of all of the

registrable securities (as defined in the August Registration Rights Agreement) with the SEC no later than the 30th calendar day following

the date of the August Registration Rights Agreement and have the registration statement declared effective by the SEC as promptly as

possible after the filing thereof, but in any event no later than the 45th calendar day following August 9, 2022 or, in the event of a

full review by the SEC, the 80th day following August 9, 2022.

The registration statement on Form S-1 required under the Registration

Rights Agreement was filed with the SEC on August 29, 2022 and became effective on September 19, 2022.

the occurrence of any Event (as defined in the August Registration Rights Agreement), which, among others, prohibits the purchasers from

reselling the securities for more than ten consecutive calendar days or more than an aggregate of fifteen calendar days during any 12-month

period, and should the registration statement cease to remain continuously effective, the Company is obligated to pay to each purchaser,

on each monthly anniversary of each such Event, an amount in cash, as partial liquidated damages and not as a penalty, equal to the product

of 2.0% multiplied by the aggregate subscription amount paid by such purchaser in the August 2022 Private Placement.

Inducement Transaction

July 31, 2023, the Company entered into a common stock preferred investment options exercise inducement offer letter (the “Inducement Letter”)

with a certain holder (the “Holder”) of existing preferred investment options (“PIOs”) to purchase shares of

the Company’s common stock at the original exercise price of $2.546 per share, issued on August 11, 2022 (the “Existing PIOs”).

Pursuant to the Inducement Letter, the Holder agreed to exercise for cash its Existing PIOs to purchase an aggregate of 2,486,214 shares

of the Company’s common stock, at a reduced exercised price of $1.09 per share, in exchange for the Company’s agreement to

issue new PIOs (the “Inducement PIOs”) on substantially the same terms as the Existing PIOs as described below, to purchase

up to 4,972,428 shares of the Company’s common stock (the “Inducement PIO Shares”).

August 1, 2023, the Company and the Holder entered into a letter agreement to amend the Inducement Letter to clarify, among other things,

that (i) the Inducement PIOs shall be immediately exercisable at any time on or after the date of issuance and have a term of exercise

of five (5) years from the date of issuance, and (ii) the Company shall not be required to hold a meeting of stockholders to approve

the issuance of the Inducement PIO Shares.

Except for the change in exercise period, the terms of the Inducement PIOs remain unchanged.

August 2, 2023, the Company consummated the Warrant Inducement.

The Company received aggregate net proceeds of approximately $2.3 million

from the Warrant Inducement, after deducting placement agent fees and other offering expenses payable by the Company.

Company engaged Wainwright to act as its placement agent in connection with the Warrant Inducement and paid Wainwright a cash fee equal

to 7.5% of the gross proceeds received from the exercise of the Existing PIOs as well as a management fee equal to 1.0% of the gross

proceeds from the exercise of the Existing PIOs.

The Company also agreed to reimburse Wainwright for its expenses in connection with

the exercise of the Existing PIOs and the issuance of the Inducement PIOs, up to $50,000 for fees and expenses of legal counsel and other

out-of-pocket expenses and agreed to pay Wainwright for non-accountable expenses in the amount of $35,000.

In addition, the exercise

for cash of the Existing PIOs triggered the issuance to Wainwright or its designees, warrants to purchase 149,173 shares of common stock,

which were issuable in accordance with the terms of Contingent Warrants issuable to Wainwright in connection with the August 2022 Private

Placement, and have the same terms as the Inducement PIOs, except for an exercise price equal to $1.3625 per share.

The Company also

agreed to issue warrants to Wainwright upon any exercise for cash of the Inducement PIOs, that number of shares of common stock equal

to 6.0% of the aggregate number of such shares of common stock underlying the Inducement PIOs that have been exercised, also with an

exercise price of $1.3625.

The maximum number of warrants issuable under this provision is 298,346.

time to time we may be involved in various disputes and litigation matters that arise in the ordinary course of business.

We are currently

not a party to any material legal proceedings.

We make available free of charge

on or through our Internet website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy

statements on Schedule 14A, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act

as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the SEC.

Alternatively, you may

also access our reports at the SEC’s website at www.sec.gov.

Buyback Program

On November 10, 2022, the Board approved a stock

repurchase program (the “Repurchase Program”) to allow the Company to repurchase up to 125,000 shares of common stock with

a maximum price of $1.00 per share, with discretion to management to make purchases subject to market conditions.

On November 18, 2022,

the Board approved an increase to the maximum price to $2.00 per share.

There was no expiration date for this program and the maximum

price per share was not adjusted in connection with the reverse split.

Shares that are repurchased are classified as treasury stock pending

future use and reduce the number of shares outstanding used in calculating earnings per share.

On November 13, 2024, the Board terminated the

Repurchase Program.

During the fiscal year ended December 31, 2024, there were no repurchases.

During the fiscal year ended December 31,

2023, the Company repurchased 1,441 shares of common stock under the Repurchase Program, for an aggregate of approximately $59,000, at

an average price of $40.8 per share.

Fundraising Activities

On July 11, 2024, the Company entered into the

Inducement Letters with certain holders of existing preferred investment options to purchase shares of the Company’s common stock

at the original exercise prices of $101.84 and $43.60 per share, issued on August 11, 2022 and August 2, 2023, respectively, pursuant

to which the holders agreed to exercise for cash their Existing PIOs to purchase an aggregate of 186,466 shares of the Company’s

common stock, at a reduced exercise price of $6.00 per share, in consideration for the Company’s agreement to issue new preferred

investment options (the “Inducement PIOs”) to purchase up to an aggregate of 559,397 shares of the Company’s common

Of the 559,397 PIOs issued, 186,465 have a contractual term of 5 years, while the remaining 372,932 have a contractual term of

Aside from the contractual terms, the Inducement PIOs have substantially the same terms as the Existing PIOs.

On July 11, 2024, the Company consummated the

transaction contemplated by the Inducement Letters upon unanimous written consent of the Board (the “Warrant Inducement”).

The Company received aggregate net proceeds of approximately $0.9 million from the exercise of the Existing PIOs by the holders and the

sale of the Inducement PIOs, after deducting placement agent fees and other offering expenses payable by the Company.

On October 1, 2024, the Board authorized the Company

to create a series of 10,000 shares of preferred stock designated as “Series C convertible Preferred Stock”, with a par value

of $0.00001, pursuant to the certificate of designations.

At any time after the initial issuance date of Series C convertible Preferred

Stock, each Preferred Share shall be convertible into validly issued, fully paid and non-assessable shares of Common Stock.

2, 2024, the Company entered into, and sold, to six institutional investors (collectively, the “PIPE Investors”), pursuant

to the securities purchase agreement an aggregate of 3,499 shares of Series C convertible preferred stock, par value $0.00001 per share,

which includes an issuance of 840 shares of Series C Preferred Stock to the lead investor in consideration for the PIPE Investors’

irrevocable commitment to purchase shares of the Series C Preferred Stock, and warrants to purchase 591,856 shares of Common Stock, (together,

the “PIPE Securities”) for aggregate net cash proceeds to the Company of $1.9 million.

On October 2, 2024, the Company entered into a

Common Stock ELOC Purchase Agreement relating to a Committed Equity Facility with an institutional investor (the “ELOC Purchaser”),

whereby the Company may offer and sell, from time to time at its sole discretion, and whereby the ELOC Purchaser has committed to purchase,

up to $25.0 million of the Company’s newly issued Common Stock, subject to certain limitations.

As of December 31, 2024 and May

30, 2025, the Company has sold approximately 2,757,933 shares and 33,256,563 shares under the ELOC Purchase Agreement for aggregate proceeds

of approximately $0.9 million and $5.3 million, respectively, totaling 36,014,496 shares sold under the ELOC Purchase Agreement for gross

proceeds of approximately $6.2 million.

In January 2025, there were 3,492,067 shares that were settled bringing the total sold shares

to approximately 6,250,000 shares under the ELOC Purchase Agreement.

Additionally, as of May 30, 2025, an aggregate of 2,130 Series C

Preferred Stock was outstanding, after redemptions of 1,369 shares for an aggregate of $1.71 million.

An additional amount of $150,531

is due to the PIPE Series C investors for 120 Series C preferred shares that remain due from the most recent ELOC draw.

These 120 shares

remain subject to future redemption.

Legal Proceedings

From time to time we may be involved in various

disputes and litigation matters that arise in the ordinary course of business.

We are currently not a party to any material legal proceedings.

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 1. Business