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Item 1A. Risk Factors

2026-03-12 compared with 2025-03-06 · 1655 added, 1567 removed, 78 unchanged (98% of the section changed)

Risk Factors.

Factors Summary

are subject to a number of risks that could harm our business, financial condition, results of operations and/or growth prospects or

cause our actual results to differ materially from those contained in forward-looking statements we have made in this Form 10-K and those

we may make from time to time.

Risk Factors Summary

We are subject to a number

of risks that could harm our business, financial condition, results of operations and/or growth prospects or cause our actual results

to differ materially from those contained in forward-looking statements we have made in this Form 10-K and those we may make from time

The success of our product candidates will depend on a variety of factors.

We do not have complete control

over many of these factors, including certain aspects of clinical development and the regulatory submission process, potential threats

to our intellectual property rights and the manufacturing, marketing, distribution and sales efforts of any current or future collaborator.

In addition, some of the factors, events and contingencies discussed below may have occurred in the past, but the disclosures below are

not representations as to whether or not the factors, events or contingencies have occurred in the past and instead reflect our beliefs

and opinions as to the factors, events, or contingencies that could materially and adversely affect us in the future.

following summary is not exhaustive and is qualified by reference to the full set of risk factors set forth in Item 1A “Risk Factors”

of this Form 10-K.

Please carefully consider all the information in this Form 10-K, including the full set of risks set forth in the

“Risk Factors” section and in our other filings with the U.S.

Securities and Exchange Commission (“SEC”), before

making an investment decision regarding Oruka.

Related to Drug Development and Regulatory Approval

development and obtaining and maintaining regulatory approval for drug products is costly,

time-consuming, and highly uncertain.

are substantially dependent on the success of our two most advanced programs, ORKA-001 and

Our projected development goals, including our clinical trials, may not be successful

or we may fail to achieve our projected development goals in the time frames we announce

may not be able to meet requirements for the chemistry, manufacturing and control of our

Food and Drug Administration (“FDA”) and comparable foreign regulatory approval

processes are lengthy and time consuming and we may not be able to obtain or may be delayed

in obtaining regulatory approvals for our product candidates.

Moreover, even if we obtain

regulatory approval, we will be subject to ongoing regulatory obligations.

face competition from entities that have developed or may develop programs for the diseases

addressed by product candidates developed by us.

Related to Our Financial Condition and Capital Requirements

are a clinical stage biopharmaceutical company with a limited operating history on which

to assess our business;

we have not completed any clinical trials, and have no products approved

for commercial sale.

have historically incurred losses and we anticipate that we will continue to incur losses

for the foreseeable future.

have never generated revenue from product sales and may never be profitable.

may not be able to raise the capital that we need to support our business plans.

additional capital may cause dilution to our stockholders, restrict our operations or require

us to relinquish rights to our technologies or product candidates.

Related to Our Intellectual Property

ability to obtain and protect our patents and other proprietary rights is uncertain and we

may fail in obtaining or maintaining necessary rights to our programs.

may become subject to claims challenging the inventorship or ownership of our intellectual

property and may be subject to patent infringement claims or may need to file such claims.

patents and our ability to protect our products may be impaired by changes to patent laws,

and our patent protection could be reduced or eliminated for non-compliance with legal requirements.

may fail to identify or interpret relevant third-party patents.

terms may be inadequate to protect our competitive position of our programs.

Our technology

licensed from third parties may be subject to retained rights.

Related to Our Reliance on Third Parties

currently rely on agreements with third parties to develop our product candidates.

are unable to maintain collaborations or licensing arrangements, or if our collaborations

or licensing arrangements are not successful, our business could be negatively impacted.

parties we rely on for the execution of nonclinical studies and clinical trials may fail

to carry out their contractual duties.

may be unable to use third-party manufacturing sites, our third-party manufacturers may encounter

difficulties in production or we may need to switch or create third-party manufacturer redundancies.

Risk Factors - Risks Related to Employee Matters, Managing Growth, Other Risks Related to Our Business, and Owning Our Common Stock

estimates of market opportunity and forecasts of market growth may prove to be inaccurate,

and even if the markets in which we compete achieve the forecasted growth, our business may

not grow at similar rates, or at all.

is dependent on key personnel, and we will be harmed if we cannot recruit and retain highly qualified personnel to successfully implement

our business strategy.

order to successfully implement our plans and strategies, we will need to grow the size of

our organization, and we may experience difficulties in managing this growth.

● Significant

disruptions of information technology systems or breaches of data security could adversely

affect our business.

in and failures to comply with United States and foreign privacy and data protection laws,

regulations and standards may adversely affect our business, operations and consolidated

financial performance.

may become exposed to costly and damaging liability claims and our insurance may not cover

all damages from such claims.

business could be adversely affected by macroeconomic or geopolitical conditions.

do not anticipate paying any dividends in the foreseeable future.

sales of shares by existing stockholders could cause our stock price to decline.

sales and issuances of equity and debt could result in additional dilution to our stockholders

and could cause our stock price to decline.

Related to Our Financial Condition and Capital Requirements

are a clinical stage biopharmaceutical company with a limited operating history on which to assess our business;

we have not completed

any clinical trials, have no products approved for commercial sale, have historically incurred losses, and we anticipate that we will

continue to incur significant losses for the foreseeable future.

Moreover, we have never generated revenue from product sales and may

never be profitable.

are a clinical stage biopharmaceutical company with a limited operating history.

We will need to raise substantial additional capital

to continue to fund our operations in the future.

We have based our estimates on assumptions that may prove to be wrong, and could exhaust

our available financial resources sooner than we currently anticipate.

We have devoted substantially all of our financial resources to

identify, acquire, and develop our product candidates, organizing and staffing our company, and providing general and administrative

support for our operations.

Biopharmaceutical

product development is a highly speculative undertaking and involves a substantial degree of risk.

We expect our losses to increase as

our product candidates enter advanced clinical trials.

It may be several years, if ever, before we complete pivotal clinical trials

or have a product candidate approved for commercialization.

We expect to invest significant funds into the research and development of

our programs to determine the potential to advance product candidates to regulatory approval.

If we obtain regulatory approval to market

a product candidate, our future revenue will depend upon the size of any markets in which our product candidates may receive approval,

and our ability to achieve sufficient market acceptance, pricing, coverage and adequate reimbursement from third-party payors, and

adequate market share for our product candidates in those markets.

Even if we obtain adequate market share for our product candidates,

We do not have complete control over many of these

factors, including certain aspects of clinical development and the regulatory submission process, potential threats to our intellectual

property rights and the manufacturing, marketing, distribution and sales efforts of any current or future collaborator.

In addition, some

of the factors, events and contingencies discussed below may have occurred in the past, but the disclosures below are not representations

as to whether or not the factors, events or contingencies have occurred in the past and instead reflect our beliefs and opinions as to

the factors, events, or contingencies that could materially and adversely affect us in the future.

The following summary is

not exhaustive and is qualified by reference to the full set of risk factors set forth in Item 1A “Risk Factors” of this Form

Please carefully consider all the information in this Form 10-K, including the full set of risks set forth in the “Risk Factors”

section and in our other filings with the U.S.

Securities and Exchange Commission (“SEC”), before making an investment decision

regarding the Company.

Risks Related to Our

Financial Condition and Capital Requirements

We are a clinical stage biopharmaceutical company with a limited operating

history on which to assess our business.

Our clinical trials remain ongoing and we have no products approved for commercial sale.

We have historically incurred losses and we anticipate that we will continue to incur losses for the foreseeable future.

We have never generated revenue from product sales and may never be profitable.

We may not be able to raise the capital that we need to support our business plans.

Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or product candidates.

Risks Related to Clinical

Development, Regulatory Approval and Commercialization

Drug development and obtaining and maintaining regulatory approval for drug products is costly, time-consuming, and highly uncertain.

We are substantially dependent on the success of our two most advanced programs, ORKA-001 and ORKA-002.

We may not achieve our projected development goals in the time frames we announce and expect, or at all.

We face competition from entities that have developed or may develop programs for the diseases addressed by our product candidates.

Risks Related to Government

We may not be able to meet requirements for the chemistry, manufacturing and control of our programs.

Food and Drug Administration (“FDA”) and comparable foreign regulatory approval processes are lengthy and time consuming and we may not be able to obtain or may be delayed in obtaining regulatory approvals for our product candidates.

Moreover, even if we obtain regulatory approval, we will be subject to ongoing regulatory obligations.

Risks Related to Our

Intellectual Property

Our ability to obtain and protect our patents and other proprietary rights is uncertain and we may fail in obtaining or maintaining necessary rights to our programs.

We may become subject to claims challenging the inventorship or ownership of our intellectual property and may be subject to patent infringement claims or may need to file such claims.

Our technology licensed from third parties may be subject to retained rights.

Risks Related to Our

Reliance on Third Parties

We currently rely on agreements with third parties to develop our product

Our business could be negatively impacted if we are unable to maintain these arrangements or if these arrangements are not

successful, for example, if such third parties fail to carry out their contractual duties.

Our third-party manufacturing partners and manufacturing sites may fail to perform adequately in their efforts to support the manufacture of our product candidates and we may need to switch or create third-party manufacturer redundancies.

Risks Related to Employee

Matters, Managing Growth, Other Risks Related to Our Business, and Risks Related to Owning Our Common Stock

Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business may not grow at similar rates, or at all.

Our business is dependent on key personnel, and we may be harmed if

we cannot recruit and retain highly qualified personnel to successfully implement our business strategies.

Our business could be adversely affected by macroeconomic or geopolitical conditions.

Future sales and issuances of equity and debt could result in additional dilution to our stockholders and could cause our stock price to decline.

Future sales of shares, or the anticipation of such sales, by existing

stockholders could cause our stock price to decline.

Risks Related to Our Financial

Condition and Capital Requirements

We are a clinical

stage biopharmaceutical company with a limited operating history on which to assess our business;

our clinical trials are ongoing, we

have no products approved for commercial sale, we have historically incurred losses, and we anticipate that we will continue to incur

significant losses for the foreseeable future.

Moreover, we have never generated revenue from product sales and may never be profitable.

We are a clinical stage biopharmaceutical

company with a limited operating history.

We will need to raise substantial additional capital to continue to fund our operations in the

We have based our estimates on assumptions that may prove to be wrong and we could exhaust our available financial resources sooner

than we currently anticipate.

We have devoted substantially all of our financial resources to identifying, acquiring, and developing our

product candidates, organizing and staffing our company, and providing general and administrative support for our operations.

Additional capital may not

be available in sufficient amounts or on reasonable terms, if at all.

The current market environment for small and midcap biotechnology

companies and broader macroeconomic factors may preclude us from successfully raising additional capital on the timeline we require.

example, escalating geopolitical tensions, elevated interest rates, and economic and regulatory uncertainty have caused market volatility.

Such volatility can have an adverse effect on the ability to raise capital, particularly in the biotechnology and biopharmaceutical industries.

In addition, it may be difficult for us to raise additional capital if we experience any issues that delay or prevent the regulatory approval

or our ability to commercialize any of our product candidates.

Biopharmaceutical product development is a highly speculative undertaking

and involves a substantial degree of risk.

We expect our losses to increase as our product candidates enter advanced clinical trials.

It may be several years, if ever, before we complete pivotal clinical trials or have a product candidate approved for commercialization.

We expect to invest significant funds into the research and development of our programs to determine the potential to advance product

candidates to regulatory approval.

If we obtain regulatory approval to market a product candidate, our future revenue will depend upon

the size of approved markets, and our ability to achieve sufficient market acceptance, pricing, coverage and adequate reimbursement from

third-party payors, and adequate market share for our products.

However, even if we obtain adequate market share for our products,

we may never become profitable despite obtaining such market share and acceptance of our products.

expect to continue to incur significant expenses and increasing operating losses for the foreseeable future and our expenses will increase

substantially if and as we:

the clinical development of our product candidates, including advancing our product candidates

into larger, more expensive trials;

efforts to discover and develop new product candidates, including initiating preclinical

studies or clinical trials;

our chemistry, manufacturing and control development, registration, and validation, including

the manufacture of our product candidates by third parties, including increasing volumes

manufactured by third parties;

regulatory and marketing approvals and reimbursement for our product candidates;

a sales, marketing, and distribution infrastructure to commercialize any products for which

we may obtain marketing approval and market for ourselves;

milestone, royalty, or other payments under third-party license agreements;

to maintain, protect, and expand our intellectual property portfolio;

any delays or encounter issues with the development and potential regulatory approval of

our product candidates such as safety issues, manufacturing delays, clinical trial delays,

longer follow-up for planned studies or trials, additional major studies or trials,

or supportive trials necessary to support marketing approval.

we are unable to raise additional capital when required or on acceptable terms, we may be required to curtail our product development

activities and other activities commensurate with the magnitude of the shortfall and our product development activities may cease altogether,

which could materially harm our business, financial condition, and results of operations.

To the extent that the costs of our activities

exceed our current estimates and we are unable to raise sufficient additional capital to cover such costs, we will need to reduce operating

expenses, sell assets, enter into strategic transactions, or effect a combination of the above.

No assurance can be given that we will

be able to enter into any of such transactions on acceptable terms, if at all.

Any of the following events could have a material adverse

effect on our business, operating results, and prospects:

delay, scaling back, or discontinuation of the development or commercialization of our product

strategic partnerships, or amending existing partnerships, for research and development programs

at an earlier stage than otherwise would be desirable or that we otherwise would have sought

to develop independently, or on terms that are less favorable than might otherwise be available

in the future;

of technology assets, or the relinquishing or licensing of assets on unfavorable terms, of

our rights to technologies or any of our product candidates that we otherwise would seek

to develop or commercialize ourselves;

the sale of the company to a third party at a price that may result in a loss on investment

for our stockholders;

for bankruptcy or cease operations altogether.

if we are successful in raising new capital, we could be limited in the amount of capital we raise due to investor demand restrictions

placed on the amount of capital we raise, or other reasons.

additional capital may cause dilution to our stockholders, restrict our operations, or require us to relinquish rights.

the extent that we raise additional capital through the sale of equity securities or convertible debt securities, the ownership interest

We expect to continue to

incur significant expenses and increasing operating losses for the foreseeable future and our expenses will increase substantially if

continue the clinical development of our product candidates, including advancing our product candidates into larger, more expensive trials;

progress our chemistry, manufacturing and control development, registration, and validation, including the manufacture of our product candidates by third parties, including increasing volumes manufactured by third parties;

continue efforts to discover and develop new product candidates, including

initiating preclinical studies or clinical trials;

seek regulatory and marketing approvals and reimbursement for our product candidates;

establish a sales, marketing, and distribution infrastructure to commercialize any products for which we may obtain marketing approval and market for ourselves;

make milestone, royalty, or other payments under third-party license agreements;

seek to maintain, protect, and expand our intellectual property portfolio;

experience any delays or encounter issues with the development and potential regulatory approval of our product candidates such as safety issues, manufacturing delays, clinical trial delays, longer follow-up for planned studies or trials, additional major studies or trials, or supportive trials necessary to support marketing approval.

If we are unable to raise

additional capital when required or on acceptable terms, we may be required to curtail our product development activities and other activities

commensurate with the magnitude of the shortfall and our product development activities may cease altogether, which could materially harm

our business, financial condition, and results of operations.

To the extent that the costs of our activities exceed our current estimates

and we are unable to raise sufficient additional capital to cover such costs, we will need to reduce operating expenses, sell assets,

enter into strategic transactions, or effect a combination of the above.

No assurance can be given that we will be able to enter into

any of such transactions on acceptable terms, if at all.

Any of the following events could have a material adverse effect on our business,

operating results, and prospects:

a delay, scaling back, or discontinuation of the development or commercialization of our product candidates;

seeking strategic partnerships, or amending existing partnerships, for research and development programs at an earlier stage than otherwise would be desirable or that we otherwise would have sought to develop independently, or on terms that are less favorable than might otherwise be available in the future;

disposal of technology assets, or the relinquishing or licensing of assets on unfavorable terms, of our rights to technologies or any of our product candidates that we otherwise would seek to develop or commercialize ourselves;

pursuing the sale of the company to a third party at a price that may result in a loss on investment for our stockholders;

filing for bankruptcy or ceasing operations altogether.

Even if we are successful

in raising additional capital, the amount of capital we raise may be limited or restricted due to investor demand, market conditions, or other

Raising additional

capital may cause dilution to our stockholders, restrict our operations, or require us to relinquish rights.

To the extent that we raise additional capital through the sale of equity securities or convertible debt securities, the ownership interest

of our stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect

3 unchanged sentences

or declaring dividends.

For example, in September 2024, we entered into a Securities Purchase Agreement with certain new institutional

and accredited investors, whereby the investors purchased an aggregate of 5,600,000 shares of common stock, 2,439 shares of Series A

Preferred Stock and pre-funded warrants to purchase an aggregate of 680,000 shares of common stock for an aggregate purchase price of

approximately $200.5 million.

Each share of Series A Preferred Stock is convertible into 1,000 shares of common stock.

we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third

parties, we may be required to relinquish valuable rights to our research programs or product candidates or grant licenses on terms that

may not be favorable to us.

Debt financing, if available, would likely involve agreements that include covenants limiting or restricting

our ability to take specific actions, such as incurring additional debt, making capital expenditures, making additional product acquisitions,

or declaring dividends.

Related to Clinical Development, Regulatory Approval and Commercialization

face competition from entities that have developed or may develop programs for the diseases addressed by our product candidates.

development and commercialization of drugs is highly competitive.

Product candidates developed by us, if approved, will face significant

competition and our failure to effectively compete may prevent us from achieving significant market penetration.

We compete with a variety

of biopharmaceutical companies as well as academic institutions, governmental agencies, and public and private research institutions,

among others.

Many of the companies with which we are currently competing or will compete against in the future have significantly greater

financial resources and expertise in research and development, manufacturing, preclinical testing, clinical trials, regulatory approvals,

and marketing than we do.

Mergers and acquisitions in the pharmaceutical and biotechnology industry may result in even more resources

being concentrated among a smaller number of our competitors.

Smaller or early-stage companies may also prove to be significant

competitors, particularly through collaborative arrangements with large and established companies.

These competitors also compete with

us in establishing clinical trial sites, recruiting participants for clinical trials, as well as in acquiring technologies complementary

to, or necessary for, our product candidates.

competitors have developed, are developing or will develop programs and processes competitive with our programs and processes.

therapeutic treatments include those that have already been approved and accepted by the medical community and any new treatments.

success will depend partially on our ability to develop and commercialize products that have a competitive safety, efficacy, dosing and/or

presentation profile.

Our commercial opportunity and success will be reduced or eliminated if competing products are safer, more effective,

have a more attractive dosing profile or presentation or are less expensive than the products we develop, or if biosimilars enter the

market and are able to gain market acceptance more quickly than we do or at wider scale.

product candidates may fail in development or suffer delays.

We depend on the successful initiation and completion of clinical trials

for our product candidates to advance our product development plans.

have no products on the market, and all of our programs are in preclinical or clinical stages of development.

As a result, we expect

it will be many years before we can obtain regulatory approval for and commercialize any product candidate, if ever.

Clinical testing

is expensive, difficult to design and implement, and can take years to complete and is uncertain as to outcome.

A failure of one or more

of our clinical trials can occur at any stage of testing.

The outcome of preclinical testing and early clinical trials may not be predictive

of the success of later clinical trials, and interim results of a clinical trial do not necessarily predict final results.

preclinical and clinical data are often susceptible to varying interpretations and analyses, and many companies that have believed their

product candidates performed satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain marketing approval

for their products.

It may be difficult for us to raise additional capital if we experience any issues that delay or prevent the regulatory

approval or the ability to commercialize our product candidates.

may experience a number of unforeseen events affecting our product development timeline, including the following:

clinical trials may fail to show safety or efficacy, produce negative or inconclusive results,

or our product candidates may have undesirable side effects or unexpected characteristics,

and we may decide, or regulators may require that we conduct additional preclinical studies

or clinical trials or we may decide to abandon product development programs;

supply or quality of our clinical trial materials or other materials necessary to conduct

clinical trials of our product candidates may be insufficient or inadequate;

or IRBs, the FDA, or ethics committees may not authorize us or our investigators to commence

or conduct a clinical trial at one or more prospective trial sites;

or may require that we

or our investigators materially modify, suspend or terminate clinical research or trials

for various reasons, including noncompliance with regulatory requirements or a finding that

the participants in our trials are being exposed to unacceptable health risks;

failure to establish an appropriate safety profile for a product candidate based on clinical

or preclinical data as well as data emerging from other therapies in the same class as our

product candidates;

number of subjects required for clinical trials of any product candidates may be larger than

we anticipate, especially if regulatory bodies require completion of non-inferiority or superiority

enrollment in these clinical trials may be slower than we anticipate or subjects

may drop out of these clinical trials or fail to return for post-treatment follow-up at a

higher rate than we anticipate;

conduct or data analysis errors may occur, including, but not limited to, failure by investigators

or participants to adhere to the study protocol or data entry and/or labeling errors;

may experience delays in reaching, or fail to reach, agreement on acceptable terms with prospective

trial sites and/or contract research organizations (“CROs”);

third-party contractors or clinical trial sites may fail to comply with regulatory requirements

or meet their contractual obligations to us in a timely manner, or at all, or may deviate

from the clinical trial protocol or drop out of the trial, which may require that we add

new clinical trial sites or investigators and could potentially complicate the analysis of

cost of clinical trials of any of our programs may be greater than we anticipate;

from clinical testing of other therapies may raise safety or efficacy concerns about our

FDA or other regulatory authorities may require us to submit additional data or impose other

requirements and our product development timeline may be adversely affected.

our clinical trials do not produce favorable results, our ability to obtain regulatory approval for our product candidates will be adversely

Moreover, the combined data from our trials may be inconclusive or may not be sufficient to ultimately gain marketing approval

from the FDA or other regulatory authorities.

There are equivalent processes and risks applicable to clinical trial applications in other

countries outside of the United States.

addition, because of the competitive landscape for immunology and inflammation (commonly referred to as “I&I”) indications,

we may also face competition for clinical trial enrollment.

Clinical trial enrollment will depend on many factors, including if potential

clinical trial participants choose to undergo treatment with approved products or enroll in competitors’ ongoing clinical trials

for programs that are under development for the same indications as our programs.

An increase in the number of approved products for

the indications we are targeting with our programs may further exacerbate this competition.

Our inability to enroll a sufficient number

of participants could, among other things, delay our development timeline, which may further harm our competitive position and have an

adverse effect on our business and operations.

are substantially dependent on the success of our two most advanced programs, ORKA-001 and ORKA-002, and our clinical trials of such

programs may not be successful.

future success is substantially dependent on our ability to develop and timely obtain marketing approval for, and then successfully commercialize,

our two most advanced programs, ORKA-001 and ORKA-002.

We are investing a majority of our efforts and financial resources into the

research and development of these programs.

We have initiated a Phase 1 clinical trial of ORKA-001 in healthy volunteers and anticipate

initiating a Phase 1 clinical trial of ORKA-002 in healthy volunteers in the second half of 2025, subject to the filing of an IND

or foreign equivalent and regulatory approval.

Currently, we believe that the success of our programs is dependent on observing a longer

half-life of our product candidates in humans than monoclonal antibodies (“mAbs”) currently marketed and in development

as we believe this longer half-life has the potential to result in a more favorable dosing schedule for our product candidates,

assuming they successfully complete clinical development and obtain marketing approval.

This is based in part on the assumption that

the longer half-life we have observed in NHPs will translate into an extended half-life of our product candidates in humans.

To the extent we do not observe this extended half-life in humans, it would significantly and adversely affect the clinical and

commercial potential of our product candidates.

we do not achieve our projected development goals in the time frames we announce and expect, the development and potential commercialization

of our product candidates may be delayed and our expenses may increase and, as a result, our business may be materially harmed and our

stock price may decline.

time to time, we estimate the timing of the anticipated accomplishment of various scientific, clinical, regulatory and other product

development goals, which we sometimes refer to as milestones.

These milestones may include the commencement or completion of scientific

studies and clinical trials, such as the expected timing of our clinical trials in our target indications, anticipated data analysis

and results from our clinical trials, as well as the submission of regulatory filings.

From time to time, we may publicly announce the

expected timing of some of these milestones.

All of these milestones are and will be based on numerous assumptions.

The actual timing

of these milestones can vary dramatically compared to our estimates, in some cases for reasons beyond our control.

If we do not meet

these milestones as publicly announced, or at all, the development and potential commercialization of our product candidates may be delayed

or never achieved and, as a result, our business may be materially harmed and our stock price may decline.

Additionally, delays relative

to our projected timelines are likely to cause overall expenses to increase, which may require us to raise additional capital sooner

than expected and prior to achieving targeted development milestones.

drug delivery device that we may use to deliver our product candidates may have its own regulatory, development, supply and other risks.

expect to deliver our product candidates via a drug delivery device, such as an injector or other delivery system.

There may be unforeseen

technical complications related to the development activities required to bring such a product to market, including primary container

compatibility and/or dose volume requirements.

If our product candidates are intended to be used with drug delivery devices, we expect

to utilize drug delivery devices authorized for marketing under clearances of approvals held by third parties.

For example, in September 2024, we entered into a Securities Purchase Agreement with certain institutional and

accredited investors, whereby the investors purchased an aggregate of 5,600,000 shares of common stock, 2,439 shares of Series A Preferred

Stock and pre-funded warrants to purchase an aggregate of 680,000 shares of common stock and in November 2024, each outstanding share

of Series A Preferred Stock converted into 1,000 shares of common stock.

Furthermore, in September 2025, we entered into a Securities

Purchase Agreement with certain institutional and accredited investors, whereby the investors purchased an aggregate of 10,933,405 shares

of our common stock and pre-funded warrants to purchase 1,066,666 shares of common stock.

In addition, in October 2025, we entered into

a sales agreement with TD Securities (USA) LLC acting as our sales agent pursuant to which we may issue and sell shares of our common

stock from time to time through an at-the-market equity offering program, for aggregate gross proceeds of up to $200.0 million, under

which we have sold shares of our common stock resulting in net proceeds of $38.9 million as of March 2026.

Moreover, if we raise additional

funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may be required

to relinquish valuable rights to our research programs or product candidates or grant licenses on terms that may not be favorable to us.

Risks Related to Clinical

Development, Regulatory Approval and Commercialization

We face competition

from entities that have developed or may develop programs for the diseases addressed by our product candidates.

The development and commercialization

of drugs is highly competitive.

If approved, our product candidates will face significant competition and our failure to effectively compete

may prevent us from achieving significant market penetration.

Many of the companies with which we are currently competing or will compete

against in the future have significantly greater financial resources and expertise in research and development, manufacturing, preclinical

testing, clinical trials, regulatory approvals, and marketing than we do.

Mergers and acquisitions in the pharmaceutical and biotechnology

industry may result in even more resources being concentrated among a smaller number of our competitors.

Smaller or early-stage companies

may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies.

competitors also compete with us in establishing clinical trial sites, recruiting participants for clinical trials, as well as in acquiring

technologies complementary to, or necessary for, our product candidates.

Our competitors have developed,

are developing, or may develop programs and processes that compete with ours.

Our success will depend partially on our ability to develop

and commercialize products that have a competitive safety, efficacy, dosing and/or presentation profile.

Our commercial opportunity and

success may be reduced or eliminated if competing products are safer, more effective, have a more attractive dosing profile or presentation,

or are less expensive than our products, or if biosimilars enter the market and achieve broader or more rapid market acceptance than our

Our product candidates

may not be approved or may be substantially delayed in receiving approval if the devices that we choose to develop do not gain and/or

maintain their own regulatory approvals or clearances.

Where approval of the drug product and device is sought under a single application,

the increased complexity of the review process may delay approval.

In addition, some drug delivery devices are provided by single-source third-party companies.

We may be dependent on the sustained cooperation and effort of those third-party companies both to supply the devices and, in some

cases, to conduct the studies required for approval or other regulatory clearance of the devices.

Even if approval is obtained for our

products, we may also be dependent on those third-party companies continuing to maintain such approvals or clearances, if required,

for their drug delivery devices once they have been received.

Failure of third-party companies to supply the devices on time and

in accordance with the agreed-upon specifications, to successfully complete studies on the devices in a timely manner, or to obtain or

maintain required approvals or clearances of the devices could result in increased development costs, delays in or failure to obtain

regulatory approval and delays in product candidates reaching patients.

approach to the discovery and development of our programs is unproven, and we may not be successful in our efforts to build a pipeline

of programs with commercial value.

approach to the discovery and development of the research programs with respect to which we have signed a license agreement, exercised

the Option to acquire intellectual property license rights to or have the Option to acquire intellectual property license rights to pursuant

to the Option Agreements, leverages clinically validated mechanisms of action and incorporates advanced antibody engineering to optimize

half-life and other properties designed to overcome limitations of existing therapies.

Our programs are purposefully designed to

improve upon existing product candidates and products while maintaining the same, well-established mechanisms of action.

the scientific research that forms the basis of our efforts to develop programs using half-life extension technologies is ongoing

and may not result in viable programs.

There is limited clinical data available on product candidates utilizing half-life extension

technologies, especially in I&I indications, demonstrating whether they are safe or effective for long-term treatment in

The long-term safety and efficacy of these technologies and the extended half-lives and exposure profiles of our programs

compared to currently approved products are unknown.

may ultimately discover that utilizing half-life extension technologies for our specific targets and indications and any programs

resulting therefrom does not possess certain properties required for therapeutic effectiveness.

In addition, programs using half-life extension

technologies may demonstrate different chemical and pharmacological properties in human participants than they do in laboratory studies

or preclinical studies.

This technology and any programs resulting therefrom may not demonstrate the same chemical and pharmacological

properties in humans and may interact with human biological systems in unforeseen, ineffective or harmful ways.

addition, we may in the future seek to discover and develop programs that are based on novel targets and technologies that are unproven.

If our discovery activities fail to identify novel targets or technologies for drug discovery, or such targets prove to be unsuitable

for treating human disease, we may not be able to develop viable additional programs.

We and our existing or future collaborators may

never receive approval to market and commercialize any product candidate.

Even if we or an existing or future collaborator obtains regulatory

approval, the approval may be for targets, disease indications or patient populations that are not as broad as we intended or desired

or may require labeling that includes significant use or distribution restrictions or safety warnings.

If the products resulting from

the research programs with respect to which we have signed license agreements with Paragon, exercised the Option to acquire intellectual

property license rights to or have the Option to acquire intellectual property license rights to pursuant to the Option Agreements prove

to be ineffective, unsafe or commercially unviable, such programs would have little, if any, value, which would have a material and adverse

effect on our business, financial condition, results of operations and prospects.

and clinical development involves a lengthy and expensive process that is subject to delays and uncertain outcomes, and results of earlier

studies and trials may not be predictive of future clinical trial results.

If our preclinical studies and clinical trials are not sufficient

to support regulatory approval of any of our product candidates, we may incur additional costs or experience delays in completing, or

ultimately be unable to complete, the development of such product candidate.

obtaining marketing approval from regulatory authorities for the sale of any product candidate, we must complete preclinical studies

and then conduct extensive clinical trials to demonstrate the safety and efficacy of such product candidate in humans.

Our clinical trials

may not be conducted as planned or completed on schedule, if at all, and failure can occur at any time during the preclinical study or

clinical trial process.

a failure of one or more clinical trials can occur at any stage of testing.

Clinical data is often susceptible to varying interpretations

and analyses, and in addition, we expect to rely on participants to provide feedback on measures such as measures of quality of life,

which are subjective and inherently difficult to evaluate.

These measures can be influenced by factors outside of our control, and can

vary widely from day-to-day for a particular participant, and from participant to participant and from site to site within

a clinical trial.

cannot be sure that the FDA, or comparable foreign regulatory authority, as applicable, will agree with our clinical development plan.

We plan to use the data from our Phase 1 trials of our ORKA-001 and ORKA-002 programs in healthy volunteers to support

Phase 2 trials in PsO and potentially other I&I indications.

may fail in development or suffer delays.

We depend on the successful initiation and completion of clinical trials for our product candidates

to advance our product development plans.

We expect it will be many years

before we can obtain regulatory approval for and commercialize any product candidate, if ever.

Clinical testing is expensive, difficult

to design and implement, and can take years to complete and is uncertain as to outcome.

A failure of one or more of our clinical trials

can occur at any stage of testing.

The outcome of preclinical testing and early clinical trials may not be predictive of the success of

later clinical trials, and interim results of a clinical trial do not necessarily predict final results.

Moreover, preclinical and clinical

data are often susceptible to varying interpretations and analyses, and many companies that have believed their product candidates performed

satisfactorily in preclinical studies and clinical trials have nonetheless failed to obtain marketing approval for their products.

We may experience a number

of events affecting our product development timeline, including the following:

Our clinical trials may fail to show safety or efficacy, show meaningful

improvement in efficacy or convenience compared to competitors, produce negative or inconclusive results, or our product candidates may

have undesirable side effects or unexpected characteristics.

We may decide, or regulators may require additional preclinical studies or

clinical trials or we may decide to abandon a product development program altogether.

The supply or quality of our clinical trial materials or other materials

necessary to conduct clinical trials of our product candidates may be insufficient, unsafe or inadequate.

Regulators, Institutional Review Boards (“IRBs”), the FDA,

or ethics committees may not authorize us or our investigators to commence or conduct a clinical trial at one or more prospective trial

or may require that we or our investigators materially modify, suspend or terminate clinical research or trials for various reasons,

including noncompliance with regulatory requirements or a finding that the participants in our trials are being exposed to unacceptable

health risks.

We may fail to establish an appropriate safety profile for a product

candidate based on clinical or preclinical data as well as data emerging from other therapies in the same class as our product candidates.

The number of subjects required for clinical trials

of any product candidates may be larger than we anticipate, especially if regulatory bodies require completion of non-inferiority or superiority

Enrollment in these clinical trials may be slower than we anticipate

or subjects may drop out of these clinical trials or fail to return for post-treatment follow-up at a higher rate than we anticipate.

Trial conduct or data analysis errors may occur, including, but not

limited to, failure by investigators or participants to adhere to the study protocol or data entry and/or labeling errors.

We may experience delays in reaching, or fail to reach, agreement on

acceptable terms with prospective trial sites and/or contract research organizations.

Our third-party contractors or clinical trial sites may fail to comply

with regulatory requirements or meet their contractual obligations to us in a timely manner, or at all, or may deviate from the clinical

trial protocol or drop out of the trial, which may require that we add new clinical trial sites or investigators and could potentially

complicate the analysis of data or affect our product development timeline.

The cost of clinical trials of any of our programs may be greater than we anticipate.

Reports from clinical testing of other therapies may raise safety or efficacy

concerns about our programs.

The FDA or other regulatory authorities may require us to submit additional data or impose other requirements and our product development timeline may be adversely affected.

Even if we or an existing or future collaborator obtains regulatory approval,

the approval may be for targets, disease indications or patient populations that are not as broad as we intended or desired or may require

labeling that includes significant use or distribution restrictions or safety warnings.

If our clinical trials do not produce favorable results, our ability

to obtain regulatory approval for our product candidates will be adversely impacted.

Moreover, the combined data from our trials may be

inconclusive or may not be sufficient to ultimately gain marketing approval from the FDA or other regulatory authorities.

There are equivalent

processes and risks applicable to clinical trial applications in other countries outside of the United States, including the European

Union (“EU”).

In addition, in part due to the competitive landscape for immunology

and inflammation (commonly referred to as “I&I”) indications, we may also face increased competition for clinical trial

Clinical trial enrollment will depend on many factors, including if potential clinical trial participants choose to undergo

treatment with approved products or enroll in competitors’ clinical trials for programs that are under development for the same

indications as our programs.

An increase in the number of approved products for the indications we are targeting with our programs may

further exacerbate this competition.

Our inability to enroll a sufficient number of participants could, among other things, delay our

development timeline, which may further harm our competitive position and have an adverse effect on our business and operations.

We are substantially

dependent on the success of our two most advanced programs, ORKA-001 and ORKA-002, and our clinical trials of such programs may not be

Our future success is substantially

dependent on our ability to develop and timely obtain marketing approval for, and then successfully commercialize, our two most advanced

programs, ORKA-001 and ORKA-002.

We are investing the majority of our efforts and financial resources into the research and development

of these programs.

Our Phase 1 clinical trial of ORKA-001 in healthy volunteers is fully enrolled and is ongoing for purposes of continued

patient follow-up and data collection, and remains blinded.

Our Phase 2a clinical trial of ORKA-001 in patients with moderate-to-severe

psoriasis (“PsO”) remains ongoing and we commenced dosing in a dose-ranging Phase 2b trial of ORKA-001 in moderate-to-severe

PsO in the fourth quarter of 2025.

Our Phase 1 clinical trial

of ORKA-002 in healthy volunteers is fully enrolled and remains ongoing for purposes of continued patient follow-up and data collection,

and remains blinded.

In addition, we expect to commence a Phase 2 clinical trial of ORKA-002 in patients with moderate-to-severe PsO in

the first half of 2026 and plan to initiate a Phase 2 clinical trial of ORKA-002 in hidradenitis suppurativa (“HS”) in

the second half of 2026.

Currently, we believe that the success of our programs is dependent

on our product candidates demonstrating a longer half-life in humans than monoclonal antibodies currently marketed and in development

as we believe this longer half-life has the potential to result in a more favorable dosing schedule for our product candidates, assuming

they successfully complete clinical development and obtain marketing approval.

To the extent we do not observe this extended half-life,

it would significantly and adversely affect the clinical and commercial potential of our product candidates.

If we do not achieve our projected development goals in the time frames

we announce or expect, the development and potential commercialization of our product candidates may be delayed and our expenses may increase

and, as a result, our business may be materially harmed and our stock price may decline.

From time to time, we announce the timing of the anticipated accomplishment

of various scientific, clinical, regulatory, or other product development goals, which we sometimes refer to as milestones.

These milestones

may include the commencement or completion of scientific studies and clinical trials, such as the expected timing of our clinical trials

in our target indications, anticipated data analysis, and the data results from our clinical trials, as well as the submission of regulatory

All of these milestones are and will be based on numerous assumptions.

The actual timing of these milestones can vary dramatically

compared to our estimates, in some cases for reasons beyond our control.

If we do not meet these milestones or the timing of the milestones

as publicly announced, the development and potential commercialization of our product candidates may be delayed or never achieved

and, as a result, our business may be materially harmed and our stock price may decline.

Additionally, delays relative to our projected

timelines are likely to cause overall expenses to increase, which may require us to raise additional capital sooner than expected and

on terms less than desirable, and prior to achieving targeted development milestones.

Any drug delivery device

that we may use to deliver our product candidates may have its own regulatory, development, supply and other risks.

We are delivering and expect

to continue to deliver, our product candidates via a drug delivery device, such as pre-filled syringe, an injector, or other delivery

We currently expect to utilize drug delivery devices authorized for marketing under clearances of approvals held by third parties.

Where approval of a drug product and device is sought under a single application, the increased complexity of the review process may delay

Our product candidates may not be approved or may be substantially delayed in receiving approval if the devices that we choose

to develop do not gain and/or maintain their own regulatory approvals or clearances.

In addition, some drug delivery devices are provided

by single-source third-party companies.

We may be dependent on the sustained cooperation and effort of those third-party companies both

to supply the devices and, in some cases, to conduct the studies required for approval or other regulatory clearance of the devices.

if approval is obtained for our products, we may also be dependent on those third-party companies continuing to maintain such approvals

or clearances, if required, for their drug delivery devices once they have been received.

Moreover, there may be unforeseen technical

complications related to the development activities required to bring such a product to market, including primary container compatibility

and/or dose volume requirements.

Failure of third-party companies to supply the devices on time and in accordance with the agreed-upon

specifications, to successfully complete studies on the devices in a timely manner, or to obtain or maintain required approvals or clearances

of the devices could result in increased development costs, delays in or failure to obtain regulatory approval and delays in product candidates

reaching patients.

Our approach to the discovery and development of our lead programs

is unproven, and we may not be successful in our efforts to build a pipeline of programs with commercial value.

We have worked with Paragon

to leverage clinically validated mechanisms of action and incorporate advanced antibody engineering to optimize half-life and other properties

designed to overcome limitations of existing therapies.

We have entered into antibody discovery and option agreements (the “Option

Agreements”) with Paragon Therapeutics, Inc.

(“Paragon”) and Paruka Holding LLC to facilitate the discovery and development

of certain research programs with respect to which we have signed a license agreement with Paragon.

Our two most advanced programs, ORKA-001

and ORKA-002, are licensed from Paragon and are purposefully designed to improve upon existing product candidates and products while maintaining

the same, well-established mechanisms of action.

However, the scientific research that forms the basis of our efforts to develop programs

using half-life extension technologies is ongoing and may not result in viable programs.

There is limited clinical data available on product

candidates utilizing half-life extension technologies, especially in I&I indications, demonstrating whether they are safe or effective

for long-term treatment in humans.

The long-term safety and efficacy of these technologies and the extended half-lives and exposure profiles

of our programs compared to currently approved products are unknown.

We may ultimately discover

that utilizing half-life extension technologies for our specific targets and indications and any programs resulting therefrom does not

possess certain properties required for therapeutic effectiveness.

In addition, programs using half-life extension technologies may demonstrate

different chemical and pharmacological properties in human participants than they do in laboratory studies or preclinical studies, including

the inability to demonstrate the same chemical and pharmacological properties in humans or the potential interaction with human biological

systems in unforeseen, ineffective, or harmful ways.

If the products resulting

from the research programs with respect to which we have signed license agreements with Paragon prove to be ineffective, unsafe or commercially

unviable, such programs would have little, if any, value, which would have a material and adverse effect on our business, financial condition,

results of operations, and prospects.

In addition, we may in the future seek to discover and develop programs

that are based on novel targets and in the technologies that are unproven.

If our discovery activities fail to identify novel targets

or technologies for drug discovery, or such targets prove to be unsuitable for treating human disease, we may not be able to develop viable

additional programs.

Preclinical and clinical development involves a lengthy and expensive

process that is subject to delays and uncertain outcomes and results of earlier studies and trials may not be predictive of future clinical

trial results.

Further, if our preclinical studies and clinical trials are not sufficient to support regulatory approval of any of our

product candidates, we may incur additional costs or experience delays in completing, or ultimately be unable to complete, the development

of such product candidate.

We do not know whether any

clinical trials we may conduct will demonstrate adequate efficacy and safety to result in regulatory approval to market any of our product

Clinical testing can take many years to complete, and its outcome is inherently uncertain.

Our clinical trials may not be

conducted as planned or completed on schedule, if at all, and failure can occur at any time during the preclinical study or clinical trial

The results of preclinical studies and early clinical trials of our product candidates may not be predictive of the results of

later-stage clinical trials and results in one indication may not be predictive of results to be expected for the same product candidate

in another indication.

We plan to use the data from our current trials of our ORKA-001 and ORKA-002 programs to support further trials

in PsO, HS, and potentially other I&I indications.

However, differences between early-stage clinical trials and later-stage clinical

trials, including differences in trial design, among other things, make it difficult to extrapolate the results of earlier clinical trials

to later clinical trials.

A number of companies in the biopharmaceutical industry have suffered significant setbacks in advanced clinical

trials due to lack of efficacy or unfavorable safety profiles, notwithstanding promising results in earlier trials.

Moreover, clinical

data are often susceptible to varying interpretations and analyses, and many companies that have believed their product candidates performed

satisfactorily in clinical trials have nonetheless failed to obtain marketing approval of such product candidates.

In addition, we rely

on clinical trial site staff to measure psoriasis area severity index scores (PASI scores) and participants to provide feedback on measures

such as measures of quality of life, which may involve subjective interpretation and variability, although training and standardized measurements

will be provided to individuals in order to minimize subjectivity.

Moreover, these measures can be influenced by factors outside of our

control, and can vary widely within a clinical trial.

We cannot be sure that the FDA, or comparable foreign regulatory authority,

as applicable, will agree with our clinical development plan.

We cannot assure that the submission of an Investigational New Drug (IND)

application, clinical trial application, or similar application will result in the FDA or comparable foreign regulatory authorities, as

applicable, allowing clinical trials to begin in a timely manner, if at all.

If the FDA and/or comparable foreign regulatory authority

1 unchanged sentence

timelines may be delayed.

We cannot be sure that submission of an IND, Clinical Trial Application or similar application will result

in the FDA or comparable foreign regulatory authorities, as applicable, allowing clinical trials to begin in a timely manner, if at all.

Moreover, even if these trials begin, issues may arise that could suspend or terminate such clinical trials,

Events that may prevent

successful or timely initiation or completion of clinical trials include:

inability to generate sufficient preclinical, toxicology or

other in vivo or in vitro data to support the initiation or continuation of clinical trials;

delays in reaching a

consensus with regulatory authorities on study design or implementation of the clinical trials;

delays or failure in obtaining regulatory

authorization to commence a trial;

delays in reaching agreement on acceptable terms with prospective CROs and clinical trial sites;

and training suitable clinical investigators;

delays in obtaining required IRB approval at each clinical trial site;

delays in manufacturing,

testing, releasing, validating or importing/exporting sufficient stable quantities of our product candidates for use in clinical trials

or the inability to do any of the foregoing;

failure by our CROs, other third parties or us to adhere to clinical trial protocols;

to perform in accordance with the FDA’s or any other regulatory authority’s current GCP requirements or applicable regulatory

guidelines in other countries;

changes to the clinical trial protocols;

clinical sites deviating from trial protocol or dropping out

delays or failure by our third party vendors or us in the manufacturing, packaging, labeling and proper delivery of clinical

trial materials;

and third parties being unwilling or unable to satisfy their contractual obligations to us.

could also encounter delays if a clinical trial is required to be materially modified or suspended or terminated by us, the IRBs, by

the Data Safety Monitoring Board, if any, or by the FDA or comparable foreign regulatory authorities.

Such authorities may suspend, put

on clinical hold or terminate a clinical trial due to a number of factors, including not aligning with or supporting our clinical trial

designs or our failure to conduct the clinical trial in accordance with regulatory requirements or our clinical trial protocols, inspection

of the clinical trial operations or trial site by the FDA or comparable foreign regulatory authorities resulting in the imposition of

a clinical hold, unforeseen safety issues or adverse side effects, failure to demonstrate a benefit from the programs, changes in governmental

regulations or administrative actions or lack of adequate funding to continue the clinical trial.

If we are required to conduct additional

clinical trials or other testing of our product candidates beyond those that we currently contemplate, if we are unable to successfully

complete clinical trials of our product candidates, if the results of these trials are not positive or are only moderately positive or

if there are safety concerns, our business and results of operations may be adversely affected and we may need to adjust or abandon our

business plans and we may incur significant additional costs.

we encounter difficulties enrolling participants in our current and future clinical trials, our clinical development activities could

be delayed or otherwise adversely affected.

We depend on the successful completion of clinical trials for our product candidates.

may experience difficulties in patient participant enrollment in our clinical trials for a variety of reasons.

The timely completion

of clinical trials in accordance with their protocols depends, among other things, on our ability to enroll a sufficient number of participants

who remain in the trial until conclusion.

The enrollment of participants in future trials for any of our programs will depend on many

factors, including if participants choose to enroll in clinical trials, rather than using approved products, or if our competitors have

ongoing clinical trials for programs that are under development for the same indications as our programs, and participants instead enroll

in such clinical trials.

Even if we are able to enroll a sufficient number of participants for our clinical trials, it may have difficulty

maintaining participants in our clinical trials.

Our inability to enroll or maintain a sufficient number of participants would result

in significant delays in completing clinical trials and increased development costs or may require us to abandon one or more clinical

trials altogether.

“topline” or interim data from our clinical trials may change as more participant data becomes available and are subject

to audit and verification procedures, and should be viewed with caution until the final data are available.

time to time, we may publicly disclose preliminary or topline data from our preclinical studies and clinical trials, which are based

on a preliminary analysis of then-available data, and the results and related findings and conclusions are subject to change following

a more comprehensive review of the data.

We also make assumptions, estimations, calculations and conclusions as part of our analyses

of these data without the opportunity to fully and carefully evaluate complete data.

As a result, the preliminary or topline results

that we report may differ from future results of the same studies, or different conclusions or considerations may qualify such results,

once additional data have been received and fully evaluated or subsequently made subject to audit and verification procedures.

time to time, we may also disclose interim data from our preclinical studies and clinical trials.

Interim data are subject to the risk

that one or more of the clinical outcomes may materially change as participant enrollment continues and more participant data become

available or as participants from our clinical trials continue other treatments.

Further, others, including regulatory agencies, may

not accept or agree with our assumptions, estimates, calculations, conclusions or analyses or may interpret or weigh the importance of

data differently, which could impact the value of the particular product candidate, the approvability or commercialization of the particular

product candidate and our company in general.

In addition, the information we choose to publicly disclose regarding a particular preclinical

study or clinical trial is based on what is typically extensive information, and you or others may not agree with what we determine is

material or otherwise appropriate information to include in our disclosure.

If the preliminary, topline or interim data that we report

differ from actual results, or if others, including regulatory authorities, disagree with the conclusions reached, our ability to obtain

including but not limited to delays or difficulties recruiting trial patients, delays or difficulties obtaining required IRB or ethics

committee approval at each clinical trial site, failure by third parties or us to adhere to clinical trial protocols or failure to perform

in accordance with current Good Clinical Practice or applicable regulatory requirements, or delays in reaching a consensus with regulatory

authorities on trial design or implementation of a clinical trial, or our third party vendors not satisfying their obligations to us.

We could also encounter delays if a clinical trial is required to

be materially modified or suspended or terminated by us, the IRBs, by a Data Safety Monitoring Board, if any, or by the FDA or comparable

foreign regulatory authorities.

Such authorities may suspend, put on clinical hold, or terminate a clinical trial due to a number of

factors, including not aligning with or supporting our clinical trial designs or our failure to conduct the clinical trial in accordance

with regulatory requirements or our clinical trial protocols, inspection of the clinical trial operations or trial site by the FDA or

comparable foreign regulatory authorities resulting in the imposition of a clinical hold, unforeseen safety issues or adverse side effects,

failure to demonstrate a benefit, changes in governmental regulations or administrative actions or lack of adequate funding to continue

the clinical trial.

If we are required to conduct additional clinical trials or other testing of our product candidates beyond those

that we currently contemplate, if we are unable to successfully complete clinical trials of our product candidates, if the results of

these trials are not positive or are only moderately positive, or if there are safety concerns, our business and results of operations

may be adversely affected and we may need to adjust or abandon our business plans and we may incur significant additional costs.

Our clinical development activities could be delayed or otherwise adversely

affected if we encounter difficulties enrolling and maintaining participants in our current and future clinical trials.

the successful completion of clinical trials for our product candidates.

Our inability to enroll and maintain a sufficient number of participants

who remain in a trial until conclusion would result in significant delays in completing clinical trials and increased development costs

or may require us to abandon one or more clinical trials altogether.

The enrollment of participants in current or future trials for any

of our programs will depend on many factors, including if participants choose to enroll in our clinical trials, rather than using approved

products, or if our competitors have ongoing clinical trials for programs that are under development for the same indications as our programs

and participants instead enroll in such clinical trials.

Even if we are able to enroll a sufficient number of participants for our clinical

trials, we may have difficulty maintaining participants in such clinical trials.

Preliminary, “topline”, or interim data from our clinical

trials may change and are subject to audit and verification procedures, and should be viewed with caution until the final data are available.

Our interpretation of such data is based on assumptions that may evolve as additional data become available, which could result in changes

to conclusions regarding the safety, efficacy, timing, or likelihood of success of our clinical development programs.

From time to time, we may

publicly disclose preliminary or topline data from our preclinical studies and clinical trials that are based on a preliminary analysis

of then-available data, and the results and related findings and conclusions are subject to change following a more comprehensive review

We may also make assumptions, estimations, calculations, and conclusions as part of our analyses of these data without the

opportunity to fully and carefully evaluate complete data.

As a result, the preliminary or topline results that we report may differ from

future results of the same studies and our conclusions may change or be qualified as additional data are received, fully evaluated, and

subjected to audit and verification procedures.

We may also publicly disclose

interim data from our preclinical studies and clinical trials.

Such interim data are inherently preliminary and subject to the risk that

one or more of the clinical outcomes may change as participant enrollment continues, additional data become available, as participants

from our clinical trials pursue other treatments, or further analyses are conducted.

In addition, third parties, including regulatory

agencies, may not accept or agree with our assumptions, estimates, calculations, conclusions, or analyses or may interpret or weigh the

importance of data differently, which could impact the perceived value of the particular product candidate, the approvability or commercialization

of the particular product candidate, and our company and our business in general.

In addition, others may not agree with what we determine

is material or otherwise appropriate information to include in our public disclosure of a particular preclinical study or clinical trial.

If the preliminary, topline, or interim data that we report differ

from actual results, or if final data or data from later stage clinical trials do not produce favorable results, our ability to obtain

approval for, and commercialize, our product candidates may be harmed, which could harm our business, operating results, prospects or

financial condition.

clinical trials may reveal significant adverse events, undesirable side effects or patient intolerance not seen in our preclinical studies

or earlier clinical trials, and may result in a safety profile that could halt clinical development, inhibit regulatory approval or limit

commercial potential or market acceptance of any of our product candidates.

of our clinical trials could reveal a high and unacceptable severity and prevalence of side effects or patient intolerance, adverse events

or unexpected characteristics, and any of these occurrences could harm our business, financial condition, results of operations and prospects

significantly.

If significant adverse events or other side effects are observed in any of our clinical trials, we may have difficulty

recruiting participants to such trials, participants may drop out of the trials, or we may have to suspend, materially modify or abandon

the trials or our development efforts of one or more programs altogether.

We, the FDA or other applicable regulatory authorities, or

an IRB, may suspend or require the material modification of any clinical trials of any program at any time for various reasons, including

a belief that participants in such trials are being exposed to unacceptable health risks or adverse side effects.

Moreover, negative

or inconclusive results could cause the FDA or other regulatory agencies to require that we repeat or conduct additional clinical trials.

If our clinical trials do not produce favorable results, our ability to obtain regulatory approval for our product candidates may be

adversely impacted.

if side effects do not preclude the product candidate from obtaining or maintaining marketing approval, undesirable side effects may

inhibit market acceptance of the approved product due to their tolerability versus other therapies.

In addition, an extended half-life could

prolong the duration of undesirable side effects, which could also affect our clinical trials or inhibit market acceptance.

side effects associated with our product candidates may not be appropriately recognized or managed by the treating medical staff, as

toxicities resulting from our product candidates may not be normally encountered in the general patient population and by medical personnel.

addition, even if we successfully advance our product candidates through clinical trials, such trials will only include a limited number

of participants and limited duration of exposure to our product candidates.

As a result, we cannot be assured that adverse effects of

our product candidates will not be uncovered when a significantly larger number of participants are exposed to the product candidate

after approval.

Our clinical trials may reveal significant adverse events, undesirable

side effects, or patient intolerance not seen in our preclinical studies or earlier clinical trials, and may result in a safety profile

that could halt clinical development, inhibit regulatory approval, or limit commercial potential or market acceptance of any of our product

We do not know whether any clinical trials we may conduct will demonstrate adequate efficacy and safety to result in regulatory

approval to market any of our product candidates.

Results of our clinical trials

could reveal an unacceptable severity and prevalence of side effects or patient intolerance, adverse events, or unexpected characteristics,

and any of these occurrences could harm our business, financial condition, results of operations and prospects significantly.

If significant

adverse events or other side effects are observed in any of our clinical trials, we may have difficulty recruiting participants to such

trials, participants may drop out of the trials, or we may have to suspend, materially modify or abandon the trials or our development

efforts of one or more programs altogether.

We, the FDA or other applicable regulatory authorities, or an IRB, may suspend or require

the material modification of any clinical trials of any program or require that we repeat or conduct additional clinical trials at any

time for various reasons, including safety and health risks or exposure to adverse side effects.

Even if side effects do not

preclude the product candidate from obtaining or maintaining marketing approval, undesirable side effects may inhibit market acceptance

of the approved product due to their tolerability versus other therapies.

Potential side effects associated with our product candidates

may not be appropriately recognized or managed by the treating medical staff, as toxicities resulting from our product candidates may

not be normally encountered in the general patient population and by medical personnel.

In addition, an extended half-life could prolong

the duration of undesirable side effects, which could also affect our clinical trials or inhibit market acceptance.

In addition, even if we successfully

advance our product candidates through clinical trials, such trials will only include a limited number of participants and limited duration

of exposure to our product candidates.

As a result, we cannot be assured that adverse effects of our product candidates will not be uncovered

when a significantly larger number of participants are exposed to the product candidate after approval and potentially over an extended

period of use.

Further, any clinical trials may not be sufficient to determine the effect and safety consequences of using our product

candidates over a multi-year period.

any of the foregoing events occur or if one or more of the research programs with respect to which we have signed a licensed agreement

for or exercised the Option to acquire intellectual property license rights to or have the Option to acquire intellectual property license

rights to pursuant to the Option Agreements prove to be unsafe, our pipeline could be affected, which would have a material adverse effect

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

may expend our limited resources to pursue a particular program and fail to capitalize on programs that may be more profitable or for

which there is a greater likelihood of success.

are initially focused on our most advanced programs, ORKA-001 and ORKA-002, and as a result, we may forgo or delay pursuit of opportunities

with other programs that later prove to have greater commercial potential.

Our resource allocation decisions may cause us to fail to

capitalize on viable commercial products or profitable market opportunities.

Our spending on current and future research and development

programs for specific indications may not yield any commercially viable product candidates.

If we do not accurately evaluate the commercial

potential or target market for a particular product candidate, we may be in a position where we may have to relinquish valuable rights

to that product candidate through collaboration, licensing or other arrangements in cases in which we would have been more advantageous

for us to retain sole development and commercialization rights to such product candidate.

approved products resulting from our programs may not achieve adequate market acceptance among clinicians, patients, healthcare third-party

payors and others in the medical community necessary for commercial success and we may not generate any future revenue from the sale

or licensing of such products.

if regulatory approval is obtained for a product candidate resulting from one of our current or future programs, it may not gain market

acceptance among physicians, patients, healthcare payors or the medical community.

Market acceptance of our product candidates will depend

on many factors, including factors that are not within our control.

While there are several approved products and product candidates

in later stages of development for the treatment of PsO, our programs incorporate advanced antibody engineering to optimize the half-life and

formulation of antibodies, and to date, no such antibody has been approved by the FDA for the treatment of PsO.

Market participants

with influence over acceptance of new treatments, such as clinicians and third-party payors, may not adopt a biologic that incorporates

half-life extension for our targeted indications, and we may not be able to convince the medical community and third-party payors

to accept and use, or to provide favorable reimbursement for, any programs developed by us or our existing or future collaborators.

an extended half-life may make it more difficult for patients to change treatments and there may be a perception that half-life extension

could exacerbate side effects, each of which may adversely affect our ability to gain market acceptance.

of medical products also depend on the willingness of healthcare providers to prescribe the treatment, and if any of our product candidates

is approved but does not achieve an adequate level of acceptance, we may not generate or derive sufficient revenue from that product

candidate and may not become or remain profitable.

of our programs may compete with our other programs, which could negatively impact our business and reduce our future revenue.

are developing product candidates for the same indication, PsO, and may in the future develop our programs for other I&I indications.

candidates over a multi-year period or longer.

If any of the foregoing events occur or if one or more of our product

candidates prove to be unsafe, our pipeline could be affected, which would have a material adverse effect on our business, financial condition,

results of operations, and prospects.

We may expend our limited

resources to pursue a particular program and fail to capitalize on programs that may be more profitable or for which there is a greater

likelihood of success.

We are initially focused on our most advanced programs, ORKA-001 and

ORKA-002, and as a result, we may forgo or delay pursuit of opportunities with other programs that later prove to have greater commercial

Our resource allocation decisions may cause us to fail to capitalize on viable commercial products or profitable market opportunities.

Our spending on current and future research and development programs for specific indications may not yield any commercially viable product

If we do not accurately evaluate the commercial potential or target market for a particular product candidate, we may be in

a position where we may have to relinquish valuable rights to that product candidate through collaboration, licensing or other arrangements

in cases in which we would have been more advantageous for us to retain sole development and commercialization rights to such product

We may never receive approval to market and commercialize any product candidate.

Any approved products

resulting from our programs may not achieve adequate market acceptance among clinicians, patients, healthcare third-party payors and others

in the medical community necessary for commercial success and we may not generate any future revenue from the sale or licensing of such

Even if regulatory approval is obtained for a product candidate resulting

from one of our current or future programs, it may not gain market acceptance among physicians, patients, third-party payors or others

in the medical community.

Market acceptance of our product candidates will depend on many factors, including factors that are not within

Market participants with influence over acceptance of new treatments, such as clinicians and third-party payors,

may not adopt a biologic that incorporates half-life extension for our targeted indications, and we may not be able to convince the

medical community and third-party payors to accept and use, or to provide favorable reimbursement for, any programs developed by

us or our existing or future collaborators.

Moreover, an extended half-life may make it more difficult for patients to change treatments

and there may be a perception that half-life extension could exacerbate side effects, each of which may adversely affect our ability

to gain market acceptance.

Further, we may not generate or derive sufficient revenue from a product candidate and may not become or remain

profitable if such product candidate is approved, but does not achieve an adequate level of acceptance.

Certain of our programs

may compete with our other programs, which could negatively impact our business and reduce our future revenue.

We are developing product candidates for PsO, HS, and may in the future

develop our programs for other I&I indications.

Each such program targets a different mechanism of action.

However, developing multiple programs for a single indication may negatively

impact our business if the programs compete with each other.

For example, if multiple programs are conducting clinical trials at the

same time, they could compete for the enrollment of participants.

In addition, if multiple product candidates are approved for the same

indication, they may compete for market share, which could limit our future revenue.

may conduct clinical trials for programs at sites outside the United States, and the FDA may not accept data from trials conducted

in such locations.

Moreover, conducting clinical trials outside of the U.S.

presents additional risks that may delay our clinical trials.

may choose to conduct one or more of our future clinical trials outside the United States.

Although the FDA may accept data from

clinical trials conducted outside the United States, acceptance of this data is subject to conditions imposed by the FDA.

If the FDA does not accept the data from any trial that we conduct outside the United States, it would likely result in the need

for additional trials, which would be costly and time-consuming and would delay or permanently halt our development of the applicable

product candidates.

Even if the FDA accepted such data, it could impose additional conditions, such as requiring us to modify our planned

clinical trials to receive clearance to initiate such trials in the United States or to continue such trials once initiated.

conducting clinical trials outside of the U.S.

presents additional risks that may delay completion of our clinical trials.

include the failure of investigators or enrolled participants in foreign countries to adhere to clinical protocol as a result of differences

in healthcare services or cultural customs that could restrict or limit our ability to conduct our clinical trials, the administrative

However, developing multiple

programs for a single indication may negatively impact our business if the programs compete with each other.

For example, concurrent clinical

trials across multiple programs may compete for the enrollment of participants.

In addition, the approval of multiple product candidates

for the same indication could intensify market competition and limit our future revenues.

We are conducting, and may conduct in the future, clinical trials for

programs at sites outside the United States, subjecting us to additional risks that may delay or adversely affect our product development

We are currently conducting

clinical trials outside the United States and may continue to do so in the future.

Conducting clinical trials outside the United States

may expose us to additional operational and regulatory risks, including differing regulatory standards and review timelines and increased

complexity in ensuring compliance with applicable laws and data protection requirements.

Although the FDA may accept data from clinical

trials conducted outside the United States, acceptance of this data is subject to conditions imposed by the FDA.

If the FDA does not accept

the data from any trial that we conduct outside the United States, it would likely result in the need for additional trials, which would

be costly and time-consuming and would delay or permanently halt our development of the applicable product candidates.

Even if the FDA

accepted such data, it could impose additional conditions, such as requiring us to modify our planned clinical trials to receive clearance

to initiate such trials in the United States or to continue such trials once initiated.

Further, conducting clinical trials outside of the United States presents

additional risks that may delay completion of our clinical trials.

These risks include requirements for local ethics approvals, challenges

in monitoring trial conduct and data integrity across jurisdictions, including the potential failure of investigators or enrolled participants

in foreign countries to adhere to clinical protocol that could restrict or limit our ability to conduct our clinical trials, the administrative

burdens of conducting clinical trials under multiple sets of foreign regulations, potential restrictions, such as local privacy restrictions,

on data generated from the clinical trial, diminished protection of intellectual property in some countries, as well as political and

economic risks relevant to foreign countries.

Related to Government Regulation

regulatory approval processes of the FDA and other comparable foreign regulatory authorities are lengthy, time-consuming and unpredictable.

If we are not able to obtain, or if there are delays in obtaining, required regulatory approvals for our product candidates, we may not

be able to commercialize, or may be delayed in commercializing, our product candidates, and our ability to generate revenue may be materially

lengthy regulatory approval process as well as the unpredictability of clinical trial results may result in our failing to obtain or

be delayed in obtaining approval to market our product candidates, which would significantly harm our business, results of operations

and prospects.

Of the large number of drugs in development, only a small percentage successfully complete the FDA or foreign regulatory

approval processes and are commercialized.

The process of obtaining regulatory approvals, both in the United States and abroad,

is unpredictable, expensive and typically takes many years following commencement of clinical trials.

Approval may never be obtained

and the approval process can vary substantially based upon a variety of factors, including the type, complexity and novelty of the product

candidates involved.

Before obtaining regulatory approvals for the commercial sale of our product candidates, we must demonstrate through

lengthy, complex and expensive preclinical studies and clinical trials that our product candidates are both safe and effective for each

targeted indication.

Securing regulatory approval also requires the submission of information about the drug manufacturing process to,

and inspection of manufacturing facilities by, the relevant regulatory authority.

Further, our product candidates may not be effective,

may be only moderately effective or may prove to have undesirable or unintended side effects, toxicities or other characteristics that

may preclude our obtaining marketing approval.

The FDA and comparable foreign regulatory authorities have substantial discretion in the

approval process and may refuse to accept any application or may decide that our data are insufficient for approval and require additional

preclinical, clinical or other data.

Our product candidates could be delayed in receiving, or fail to receive, regulatory approval for

many reasons, including:

the failure to demonstrate that a product candidate’s benefits outweigh safety risks;

regulatory authorities

may disagree with our interpretation of clinical data or the data collected may not be acceptable or sufficient to support submission;

or the results may not meet the level of statistical significance required for approval by the relevant regulatory authorities or otherwise

considered insufficient by the FDA or comparable foreign regulatory authorities.

Regulatory authorities may require the addition of labeling

statements, such as black box or other warnings or contraindications that could diminish the usage of the product or otherwise limit

the commercial success of the affected product.

regulatory authorities may approve any of our product candidates for fewer or more limited indications than we request, including failing

to approve the most commercially promising indications, may grant approval contingent on the performance of costly post-marketing clinical

trials, or may approve a product candidate with a label that does not include the labeling claims necessary or desirable for the successful

commercialization of that product candidate.

If we are not able to obtain, or if there are delays in obtaining, required regulatory approvals

for our product candidates, we will not be able to commercialize, or will be delayed in commercializing, our product candidates and our

ability to generate revenue will be materially impaired.

may not be able to meet requirements for the chemistry, manufacturing and control of our programs.

order to receive approval of our products by the FDA and comparable foreign regulatory authorities, we must show that we and our CMO

partners are able to characterize, control and manufacture our drug products safely and in accordance with regulatory requirements.

includes manufacturing the active ingredient, developing an acceptable formulation, manufacturing the drug product, performing tests

to adequately characterize the formulated product, documenting a repeatable manufacturing process, and demonstrating that our drug products

meet stability requirements.

As noted above, we may deliver our product candidates via a drug delivery device, which also requires us

to meet certain chemistry, manufacturing and control requirements set forth by the FDA and other foreign regulatory authorities.

on data generated from the clinical trial, and diminished protection of intellectual property in some countries.

Operations in foreign

jurisdictions are subject to additional risks, including dependence on third party manufacturers or suppliers outside of the United States,

as well as political and economic risks relevant to foreign countries.

Risks Related to Government and Regulatory Matters

The regulatory approval

processes of the FDA and other comparable foreign regulatory authorities are lengthy, time-consuming and unpredictable.

We may not be

able to commercialize, or may be delayed in commercializing, our product candidates, and our ability to generate revenue may be materially

impaired if we are not able to obtain, or if there are delays in obtaining, required regulatory approvals for our product candidates.

The lengthy regulatory approval

process as well as the unpredictability of clinical trial results may result in our failing to obtain or be delayed in obtaining approval

to market our product candidates, which would significantly harm our business, results of operations and prospects.

Before obtaining regulatory

approvals for the commercial sale of our product candidates, we must demonstrate through lengthy, complex and expensive preclinical studies

and clinical trials that our product candidates are both safe and effective for each targeted indication.

In addition, securing regulatory

approval also requires the submission of information about the drug manufacturing process to, and inspection of manufacturing facilities

by, the relevant regulatory authority.

Of the large number of drugs in development, only a small percentage successfully complete the

FDA or foreign regulatory approval processes and are commercialized.

Approval may never be obtained and the approval process can vary

substantially based upon a variety of factors, including the type, complexity and novelty of the product candidates involved.

are several approved products and product candidates in later stages of development for the treatment of PsO and for the treatment of

HS, our programs incorporate advanced antibody engineering to optimize the half-life and formulation of antibodies, and to date, no such

antibody has been approved by the FDA for the treatment of PsO or for HS.

The FDA and comparable foreign

regulatory authorities have substantial discretion in the approval process and may refuse to accept any application or may decide that

our data are insufficient for approval and require additional preclinical, clinical, or other data.

Our product candidates could be delayed

in receiving, or fail to receive, regulatory approval for many reasons, including:

the failure to demonstrate that a product candidate’s

benefits outweigh safety risks;

regulatory authorities may disagree with our interpretation of clinical data or the data collected may

not be acceptable or sufficient to support submission;

or the results may not meet the level of statistical significance required for

approval by the relevant regulatory authorities or otherwise considered insufficient by the FDA or comparable foreign regulatory authorities.

Regulatory authorities may require the addition of labeling statements, such as a black box warning or other warnings or contraindications

that could diminish the usage of the product or otherwise limit the commercial success of the affected product.

Moreover, regulatory authorities may approve any of our product candidates

for fewer or more limited indications than we request, including failing to approve the most commercially promising indications, may grant

approval contingent on the performance of costly post-marketing clinical trials, or may approve a product candidate with a label that

does not include the labeling claims necessary or desirable for the successful commercialization of that product candidate.

not able to obtain, or if there are delays in obtaining, required regulatory approvals for our product candidates, we will not be able

to commercialize, or will be delayed in commercializing, our product candidates and our ability to generate revenue may be materially

We may not be able

to meet requirements for the chemistry, manufacturing, and control of our programs.

In order to receive approval of our products by the FDA and comparable

foreign regulatory authorities, we must show that we and our CMO partners are able to characterize, control and manufacture our drug products

safely and in accordance with regulatory requirements.

This includes, among other things, manufacturing the active ingredient, developing

an acceptable formulation, manufacturing the drug product, performing tests to adequately characterize the formulated product, documenting

a repeatable manufacturing process in larger quantities as we move forward in our development programs, and demonstrating that our drug

products meet stability requirements.

As noted above, we may deliver our product candidates via a drug delivery device, which also requires

us to meet certain chemistry, manufacturing and control requirements set forth by the FDA and other foreign regulatory authorities.

these chemistry, manufacturing and control requirements is a complex task that requires specialized expertise.

If we are not able to

meet the chemistry, manufacturing and control requirements, we may not be successful in getting our products approved.

product candidates for which we intend to seek approval as biologics may face competition sooner than anticipated.

Patient Protection and Affordable Care Act, as amended by the Healthcare and Education Reconciliation Act (the “ACA”), includes

a subtitle called the BPCIA, which created an abbreviated approval pathway for biological products that are biosimilar to or interchangeable

If we are not able to meet

the chemistry, manufacturing, and control requirements, we may not be successful in our clinical trials or getting our product candidates

approved by regulatory authorities.

Our product candidates

for which we intend to seek approval as biologics may face competition sooner than anticipated.

The Patient Protection and Affordable Care Act, as amended by the Healthcare

and Education Reconciliation Act (the “ACA”), includes a subtitle called the Biologics Price Competition and Innovation Act

(the “BPCIA”), which created an abbreviated approval pathway for biological products that are biosimilar to or interchangeable

with an FDA-licensed reference biological product.

4 unchanged sentences

During this 12-year period of exclusivity, another company may still market

a competing version of the reference product if the FDA approves a full BLA for the competing product containing the sponsor’s

own preclinical data and data from adequate and well-controlled clinical trials to demonstrate the safety, purity and potency of

their product.

believe that any of our product candidates approved as biologics under a BLA should qualify for the 12-year period of exclusivity.

However, there is a risk that this exclusivity could be shortened due to congressional action or otherwise, or that the FDA will not

consider our product candidates to be reference products for competing products, potentially creating the opportunity for competition

sooner than anticipated.

Other aspects of the BPCIA, some of which may impact the BPCIA exclusivity provisions, have also been the subject

of recent litigation.

Moreover, the extent to which a biosimilar, once approved, will be substituted for any reference products in a

way that is similar to traditional generic substitution for non-biological products is not yet clear, and will depend on a

number of marketplace and regulatory factors that are still developing.

if we receive regulatory approval of our product candidates, we will be subject to extensive ongoing regulatory obligations and continued

regulatory review and may result in restrictions on the use of the product, which may result in significant additional expense and we

may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated problems with our product candidates.

regulatory approvals that we may receive for our product candidates will require the submission of reports to regulatory authorities

and surveillance to monitor the safety and efficacy of the product candidate, may contain significant limitations related to use restrictions

for specified age groups, warnings, precautions or contraindications, and may include burdensome post-approval study or risk management

requirements.

For example, the FDA may require a REMS in order to approve our product candidates.

In addition, even if our product candidates

receive approval, our product candidates and the activities associated with their development and commercialization, including their

design, testing, manufacture, safety, efficacy, recordkeeping, labeling, storage, approval, advertising, promotion, sale, distribution,

import and export will be subject to comprehensive regulation by the FDA and other regulatory agencies in the United States and

by comparable foreign regulatory authorities.

These requirements include submissions of safety and other post-marketing information

and reports, registration, as well as on-going compliance with current CGMPs and GCPs for any clinical trials that we conduct

following approval.

In addition, manufacturers of drug products and their facilities are subject to continual review and periodic, unannounced

inspections by the FDA and other regulatory authorities for compliance with CGMPs.

we or a regulatory authority discover previously unknown problems with a product or problems with the facilities where the product is

manufactured, a regulatory authority may impose restrictions on that product, the manufacturing facility or us, including requiring recall

or withdrawal of the product from the market or suspension of manufacturing, restrictions on our ability to conduct clinical trials,

including full or partial clinical holds on ongoing or planned trials, restrictions on the manufacturing process, warning or untitled

letters, civil and criminal penalties, injunctions, product seizures, detentions or import bans, voluntary or mandatory publicity requirements

and imposition of restrictions on operations, including costly new manufacturing requirements.

at the FDA, the SEC and other government agencies and regulatory authorities caused by funding shortages or global health concerns could

hinder their ability to hire and retain key leadership and other personnel, prevent new products and services from being developed or

commercialized in a timely manner or otherwise prevent those agencies from performing normal business functions on which the operation

of our business may rely, which could negatively impact our business.

ability of the FDA to review regulatory filings and our ability to commence human clinical trials can be affected by a variety of factors,

including government budget and funding levels, ability to hire and retain key personnel and accept the payment of user fees, and statutory,

regulatory and policy changes.

Average review times at the agency have fluctuated in recent years as a result.

In addition, government

funding of the SEC, and other government agencies on which our operations may rely, including those that fund research and development

activities is subject to the political process, which is inherently fluid and unpredictable.

at the FDA and other agencies or comparable foreign regulatory authorities, may also slow the time necessary for the review and approval

of applications for clinical trial or marketing authorization, which would adversely affect our business.

For example, in recent years,

including in 2018 and 2019, the U.S.

government shut down several times and certain regulatory agencies, such as the FDA and the SEC,

had to furlough critical employees and stop critical activities.

Additionally, action by the new Trump Administration to limit federal

agency budgets or personnel may result in reductions to the FDA’s budget, employees, and operations, which may lead to slower response

times and longer review periods, potentially affecting our ability to progress development of our product candidates or obtain regulatory

approval for our product candidates.

If a prolonged government shutdown occurs, it could significantly impact the ability of the FDA

to timely review and process our regulatory submissions, which could have a material adverse effect on our business.

Further, future

government shutdowns could impact our ability to access the public markets and obtain necessary capital in order to properly capitalize

and continue our operations.

a prolonged government shutdown occurs, or if global health concerns prevent the FDA or other regulatory authorities from conducting

their regular inspections, reviews, or other regulatory activities, it could significantly impact the ability of the FDA or other regulatory

authorities to timely review and process our regulatory submissions, which could have a material adverse effect on our business.

may face difficulties from legislative or regulatory reform measures.

may be faced with additional or changing regulatory and governmental regulations that could prevent, limit or delay regulatory approval

of our product candidates.

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

or administrative or executive action, either in the United States or abroad.

For example, the Trump Administration has discussed

several changes to the reach and oversight of the FDA, which could affect its relationship with the pharmaceutical industry, transparency

in decision making and ultimately the cost and availability of prescription drugs.

If we are slow or unable to adapt to changes in existing

requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any

marketing approval that we may have obtained and we may not achieve or sustain profitability.

price of pharmaceuticals has been a topic of considerable public discussion that could lead to price controls or other price-limiting

strategies by payors that have the effect of lowering payment and reimbursement rates for drugs or otherwise making the commercialization

of pharmaceuticals less profitable.

Many federal and state legislatures have considered, and adopted, healthcare policies intended to

curb rising healthcare costs, such as the IRA.

a competing version of the reference product if the FDA approves a full BLA for the competing product containing the sponsor’s own

preclinical data and data from adequate and well-controlled clinical trials to demonstrate the safety, purity, and potency of their

We believe that any of our

product candidates approved as biologics under a BLA should qualify for the 12-year period of exclusivity.

However, there is

a risk that this exclusivity could be shortened due to congressional action or otherwise, or that the FDA will not consider our product

candidates to be reference products for competing products, potentially creating the opportunity for competition sooner than anticipated.

Other aspects of the BPCIA, some of which may impact the BPCIA exclusivity provisions, have also been the subject of recent litigation.

Moreover, the extent to which a biosimilar, once approved, will be substituted for any reference products in a way that is similar to

traditional generic substitution for non-biological products is not yet clear, and will depend on a number of marketplace and

regulatory factors that are still developing.

Even if our product

candidates receive regulatory approval, we will remain subject to extensive ongoing regulatory obligations and continued regulatory review,

which could result in restrictions on the use of the products, significant additional expenses, and penalties if we fail to comply with

regulatory requirements or experience unanticipated issues with our product candidates.

If any of our product candidates

receive regulatory approval, we will remain subject to ongoing regulatory requirements imposed by the FDA and comparable foreign authorities.

These requirements may include post-approval safety and pharmacovigilance reporting, product labeling restrictions or warnings, risk management

requirements such as a Risk Evaluation and Mitigation Strategy (“REMS”), post-marketing commitments or additional studies

to further assess safety, efficacy, or real-world use, as well as compliance with applicable manufacturing and quality system regulations.

Regulatory authorities may also conduct periodic inspections of our

manufacturing facilities or those of our third-party manufacturers and may take enforcement action if we or such third parties fail to

comply with applicable regulatory requirements or if safety, quality, or manufacturing issues arise.

Such actions could include labeling

changes, restrictions on use or distribution, clinical holds, recalls or withdrawal of products, warning or untitled letters, fines, penalties,

or other enforcement measures.

Failure to comply with these ongoing obligations, or the emergence of unexpected safety or quality issues

after commercialization, could result in significant additional costs, limit our ability to commercialize, and may materially harm our

Disruptions or changes at the FDA, the SEC and other government agencies

and regulatory authorities could hinder their ability to hire and retain key leadership and other personnel, prevent new products and

services from being developed or commercialized in a timely manner or otherwise prevent those agencies from performing normal business

functions on which the operation of our business may rely, which could negatively impact our business.

The ability of the FDA to

review regulatory filings and our ability to commence clinical trials can be affected by a variety of factors, including government budget

and funding levels, ability to hire and retain key personnel and accept the payment of user fees, statutory, regulatory and policy changes,

disruptions caused by government shutdowns and public health crises.

There have been mass layoffs of federal government employees since

the start of the Trump administration in January 2025, the full impact of which is unclear at this time.

Average review times at the agency

have fluctuated in recent years as a result.

In addition, government funding of the SEC, and other government agencies on which our operations

may rely, including those that fund research and development activities is subject to the political process, which is inherently fluid

and unpredictable.

Furthermore, the Trump administration has made and is expected to continue to make changes in the leadership of various

federal regulatory agencies and changes to U.S.

federal government policy that have led to, in some cases, legal challenges and uncertainty

around the funding, functioning and policy priorities of the U.S.

federal regulatory agencies, including the FDA.

Disruptions at the FDA and other agencies or comparable foreign regulatory

authorities, may also slow the time necessary for the review and approval of applications for clinical trial or marketing authorization,

which would adversely affect our business.

For example, in recent years, the U.S.

government has experienced shut downs and funding lapses,

during which time certain regulatory agencies, such as the FDA and the SEC, furloughed critical employees and stopped critical activities.

Additionally, action by the Trump administration to limit federal agency budgets or personnel may result in reductions to the FDA’s

budget, employees, and operations, which may lead to slower response times and longer review periods, potentially affecting our ability

to progress development of our product candidates or obtain regulatory approval for our product candidates.

If a prolonged government

shutdown occurs, it could significantly impact the ability of the FDA to timely review and process our regulatory submissions, which could

have a material adverse effect on our business.

Further, government shutdowns could impact our ability to access the public markets and

obtain necessary capital in order to properly capitalize and continue our operations.

We are unable to predict

the extent to which the Trump administration may impose or seek to impose leadership or policy changes at the FDA or changes to rules

and policies impacting our business and operations.

It is unclear how these executive actions or other potential actions by the federal

government will impact the FDA or other regulatory authorities that oversee our business.

Government proposals to reduce or eliminate

budgetary deficits may include reduced allocations to the FDA and other related government agencies.

These budgetary pressures may reduce

the FDA’s ability to perform its responsibilities, which could result in delays in our clinical trial timelines.

If a significant

reduction in the FDA’s workforce occurs, the FDA’s budget is significantly reduced or a prolonged government shutdown occurs,

it could significantly impact the ability of the FDA to timely review and process our regulatory submissions or take other actions critical

to the development or manufacturing of our product candidates, which could have a material adverse effect on our business.

If a prolonged government

shutdown occurs, or if global health concerns prevent the FDA or other regulatory authorities from conducting their regular inspections,

reviews, or other regulatory activities, it could significantly impact the ability of the FDA or other regulatory authorities to timely

review and process our regulatory submissions, which could have a material adverse effect on our business.

We may face difficulties

from legislative or regulatory reform measures.

We may be faced with additional

or changing regulatory and governmental regulations that could prevent, limit or delay regulatory approval of our product candidates.

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

executive action, either in the United States or abroad.

For example, the Trump administration has discussed several changes to the

reach and oversight of the FDA, which could affect its relationship with the pharmaceutical industry, transparency in decision making

and ultimately the cost and availability of prescription drugs.

If we are slow or unable to adapt to changes in existing requirements

or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any marketing approval

that we may have obtained and we may not achieve or sustain profitability.

The price of pharmaceuticals

has been a topic of considerable public discussion that could lead to price controls or other price-limiting strategies by third-party

payors that have the effect of lowering payment and reimbursement rates for drugs or otherwise making the commercialization of pharmaceuticals

less profitable.

Many federal and state legislatures have considered, and adopted, healthcare policies intended to curb rising healthcare

costs, such as the Inflation Reduction Act (“IRA”).

These cost-containment measures may include, among other measures:

requirements for pharmaceutical

companies to negotiate prescription drug prices with government healthcare programs;

controls on government-funded reimbursement for

new or increased requirements to pay prescription drug rebates to government healthcare programs, including if drug prices increase

at a higher rate than inflation;

for pharmaceutical companies to negotiate prescription drug prices with government healthcare programs;

controls on government-funded

reimbursement for drugs;

new or increased requirements to pay prescription drug rebates to government healthcare programs, including if

drug prices increase at a higher rate than inflation;

controls on healthcare providers;

challenges to or limits on the pricing of drugs, including pricing

controls or limits or prohibitions on reimbursement for specific products through other means;

requirements to try less expensive products

or generics before a more expensive branded product;

and public funding for cost effectiveness research, which may be used by government

and private third-party payors to make coverage and payment decisions.

Political, economic and regulatory developments may further complicate

developments in healthcare systems and pharmaceutical drug pricing.

These developments could, for example, impact our potential licensing

agreements as commercial and collaborative partners may also consider the impact of these pressures on their licensing strategies.

new laws or regulations that have the effect of imposing additional costs or regulatory burden on pharmaceutical manufacturers, or otherwise

negatively affect the industry, could adversely affect our ability to successfully commercialize our product candidates.

The implementation

of any price controls, caps on prescription drugs or price transparency requirements could adversely affect our business, operating results

and financial condition.

business operations and current and future arrangements with investigators, healthcare professionals, consultants, third-party payors,

patient organizations and customers will be subject to applicable healthcare regulatory laws, including conflicts of interest rules,

which could expose us to penalties.

business operations and current and future arrangements with investigators, healthcare professionals, consultants, third-party payors,

patient organizations and customers may expose us to broadly applicable fraud and abuse and other healthcare laws and regulations.

laws may constrain the business or financial arrangements and relationships through which we conduct our operations, including how we

research, market, sell and distribute our product candidates, if approved.

Principal investigators for our clinical trials may serve

as scientific advisors or consultants to us or may be affiliated with our other service providers, including CROs or site management

organizations, and from time to time may receive cash compensation in connection with such services.

If these relationships and any related

compensation result in perceived or actual conflicts of interest, the integrity of the data generated at the applicable clinical trial

site or in the applicable trial may be questioned or jeopardized.

that our internal operations and future business arrangements with third parties comply with applicable healthcare laws and regulations

will involve costs and management attention.

If our operations are found to be in violation of any of these laws or any other governmental

laws and regulations that may apply to it, we may be subject to significant penalties, including civil, criminal and administrative penalties,

damages, fines, exclusion from government-funded healthcare programs, integrity oversight and reporting obligations to resolve allegations

of non-compliance, disgorgement, individual imprisonment, contractual damages, reputational harm, diminished profits and the

curtailment or restructuring of our operations.

Further, defending against any such actions can be costly and time-consuming and

may require significant personnel resources.

Therefore, even if we are successful in defending against any such actions that may be brought

against us, our business may be impaired.

if we are able to commercialize any product candidates, due to unfavorable pricing regulations and/or third-party coverage and reimbursement

policies, we may not be able to offer such product candidates at competitive prices, which would seriously harm our business.

intend to seek approval to market our product candidates in the United States and in selected foreign jurisdictions, and we will

be subject to rules and regulations in those jurisdictions where we obtain approval.

Our ability to successfully commercialize any product

candidates that we may develop will depend in part on the extent to which reimbursement for these product candidates and related treatments

will be available from government health administration authorities, private health insurers and other organizations.

In some jurisdictions,

government authorities and other third-party payors decide which medications they will pay for and establish reimbursement levels,

and have attempted to control costs by limiting coverage and the amount of reimbursement for particular medications.

These entities may

create preferential access policies for a competitor’s product, including a branded or generic/biosimilar product, over our products

in an attempt to reduce their costs, which may reduce our commercial opportunity.

Additionally, if any of our product candidates are

approved and we are found to have improperly promoted off-label uses of those product candidates, we may become subject to significant

liability, which would materially adversely affect our business and financial condition.

are subject to U.S.

and certain foreign export and import controls, sanctions, embargoes, anti-corruption laws, and anti-money laundering

laws and regulations.

challenges to or limits on the pricing of drugs,

including pricing controls or limits or prohibitions on reimbursement for specific products through other means;

requirements to try less

expensive products or generics before a more expensive branded product;

and public funding for cost effectiveness research, which may

be used by government and private third-party payors to make coverage and payment decisions.

Political, economic and regulatory developments

may further complicate developments in healthcare systems and pharmaceutical drug pricing.

These developments could, for example, impact

our potential licensing agreements as commercial and collaborative partners may also consider the impact of these pressures on their licensing

Any new laws or regulations

that have the effect of imposing additional costs or regulatory burden on pharmaceutical manufacturers, or otherwise negatively affect

the industry, could adversely affect our ability to successfully commercialize our product candidates.

The implementation of any price

controls, caps on prescription drugs or price transparency requirements could adversely affect our business, operating results and financial

Our business operations

and current and future arrangements with investigators, healthcare professionals, consultants, third-party payors, patient organizations

and customers will be subject to applicable healthcare regulatory laws, including conflicts of interest rules, which could expose us to

Our business operations and current and future arrangements with investigators,

healthcare professionals, consultants, third-party payors, patient organizations and customers may expose us to broadly applicable

healthcare laws and regulations, including conflict of interest laws.

These laws may constrain the business or financial arrangements and

relationships through which we conduct our operations.

Principal investigators for

our clinical trials may serve as scientific advisors or consultants to us or may be affiliated with our other service providers, including

CROs or site management organizations, and from time to time may receive cash compensation in connection with such services.

relationships and any related compensation result in perceived or actual conflicts of interest, the integrity of the data generated at

the applicable clinical trial site or in the applicable trial may be questioned or jeopardized.

Ensuring that our internal operations and future business arrangements

with third parties comply with applicable healthcare laws and regulations will involve costs and management attention.

If our operations

are found to be in violation of any of these laws or any other governmental laws and regulations that may apply to it, we may be subject

to significant penalties, including civil, criminal and administrative penalties, damages, fines, exclusion from government-funded healthcare

programs, integrity oversight, and reporting obligations to resolve allegations of non-compliance, disgorgement, individual

imprisonment, contractual damages, reputational harm, diminished profits, and the curtailment or restructuring of our operations.

defending against any such actions can be costly and time-consuming and may require significant personnel resources.

Therefore, even

if we are successful in defending against any such actions that may be brought against us, our business may be impaired.

Even if we are able

to commercialize any product candidates, we may be subject to unfavorable pricing regulations and/or third-party coverage and reimbursement

policies, and we may not be able to offer such product candidates at competitive prices, which could seriously harm our business.

We intend to seek approval to market our product candidates in the

United States and in selected foreign jurisdictions, and we will be subject to rules and regulations in those jurisdictions where

we obtain approval.

Our ability to successfully commercialize any product candidates that we may develop will depend in part on the extent

to which reimbursement for these product candidates and related treatments will be available from government health administration authorities,

private health insurers, and other organizations.

In some jurisdictions, government authorities and other third-party payors decide

which medications they will pay for and establish reimbursement levels, and have attempted to control costs by limiting coverage and the

amount of reimbursement for particular medications.

These entities may create preferential access policies for a competitor’s product,

including a branded or generic/biosimilar product, over our products in an attempt to reduce their costs, which may reduce our commercial

Additionally, if any of our product candidates are approved and we are found to have improperly promoted off-label uses

of those product candidates, we may become subject to significant liability, which could materially adversely affect our business and

financial condition.

We are subject to U.S.

certain foreign export and import controls, sanctions, embargoes, anti-corruption laws, and anti-money laundering laws and regulations.

We can face criminal liability and other serious consequences for violations, which can harm our business.

are subject to export control and import laws and regulations, including the U.S.

We are subject to export control and import laws and regulations, including

Export Administration Regulations, U.S.

regulations, various economic and trade sanctions regulations administered by the U.S.

Treasury Department’s Office of Foreign

Assets Controls, the U.S.

Foreign Corrupt Practices Act of 1977, as amended, the U.S.

domestic bribery statute contained

Customs regulations, various economic and trade sanctions regulations administered

Treasury Department’s Office of Foreign Assets Controls, the U.S.

Foreign Corrupt Practices Act of 1977,

as amended, the U.S.

domestic bribery statute contained in 18 U.S.C.

§ 201, the U.S.

Travel Act, the USA PATRIOT Act, the U.S.

Physician Payments Sunshine Act and other state and

national anti-bribery and anti-money laundering laws in the countries in which we conduct activities.

Anti-corruption laws

are interpreted broadly and prohibit companies and their employees, agents, contractors, and other collaborators from authorizing, promising,

offering, or providing, directly or indirectly, improper payments or anything else of value to or from recipients in the public or private

We may engage third parties to sell our products outside the United States, to conduct clinical trials, and/or to obtain

necessary permits, licenses, patent registrations, and other regulatory approvals.

We have direct or indirect interactions with officials

and employees of government agencies or government-affiliated hospitals, universities, and other organizations.

We can be held liable

for the corrupt or other illegal activities of our employees, agents, contractors, and other collaborators, even if we do not explicitly

authorize or have actual knowledge of such activities.

Any violations of the laws and regulations described above may result in substantial

civil and criminal fines and penalties, imprisonment, the loss of export or import privileges, debarment, tax reassessments, breach of

contract and fraud litigation, reputational harm, and other consequences.

outside the United States tend to impose strict price controls, which may adversely affect our revenue, if any.

some countries, particularly member states of the EU (“EU Member States”), the pricing of prescription drugs is subject to

governmental control.

In these countries, pricing negotiations with governmental authorities can take considerable time after receipt

of marketing approval for a therapeutic.

In addition, there can be considerable pressure by governments and other stakeholders on prices

and reimbursement levels, including as part of cost containment measures.

Political, economic and regulatory developments may further

complicate pricing negotiations, and pricing negotiations may continue after reimbursement has been obtained.

Reference pricing used

by various EU Member States and parallel distribution, or arbitrage between low-priced and high-priced EU Member States,

can further reduce prices.

To obtain coverage and reimbursement or pricing approvals in some countries, we or current or future collaborators

may be required to conduct a clinical trial or other studies that compare the cost-effectiveness of our product candidates to other

available therapies in order to obtain or maintain reimbursement or pricing approval.

Publication of discounts by third-party payors

or authorities may lead to further pressure on the prices or reimbursement levels within the country of publication and other countries.

If reimbursement of any product candidate approved for marketing is unavailable or limited in scope or amount, or if pricing is set at

unsatisfactory levels, our business, financial condition, results of operations or prospects could be materially and adversely affected.

If the UK or EU Member States were to significantly alter their regulations affecting the pricing of prescription pharmaceuticals, we

could face significant new costs.

Related to Our Intellectual Property

ability to obtain and protect our patents and other proprietary rights is uncertain, exposing us to the possible loss of competitive

rely upon a combination of patents, trademarks, trade secret protection, confidentiality agreements and the Option and License Agreements

to protect the intellectual property related to our programs and technologies and to prevent third parties from competing unfairly with

Our success depends in large part on our ability to obtain and maintain patent protection for our programs and our product candidates

and their uses, as well as our ability to operate without infringing on or violating the proprietary rights of others.

Paragon has filed,

on our behalf, provisional patent applications and we have filed non-provisional patent applications directed to antibodies that target

IL-23, including applications covering composition of matter, pharmaceutical formulations, and methods of using such antibodies, including

In addition, Paragon has filed, on our behalf, provisional patent applications and we intend to file one or more additional

provisional patent applications directed to antibodies that target IL-17, including applications covering composition of matter, pharmaceutical

formulations, and methods of using such antibodies, including ORKA-002.

However, we may not be able to protect our intellectual property

rights throughout the world and the legal systems in certain countries may not favor enforcement or protection of patents, trade secrets

and other intellectual property.

Filing, prosecuting and defending patents on programs worldwide is expensive and our intellectual property

rights in some foreign jurisdictions can be less extensive than those in the United States;

Travel Act, the USA PATRIOT Act, the

Physician Payments Sunshine Act, and other state and national anti-bribery and anti-money laundering laws in the countries

in which we conduct activities.

Anti-corruption laws are interpreted broadly and prohibit companies and their employees, agents,

contractors, and other collaborators from authorizing, promising, offering, or providing, directly or indirectly, improper payments or

anything else of value to or from recipients in the public or private sector.

We may engage third parties to sell our products outside

the United States, to conduct clinical trials, and/or to obtain necessary permits, licenses, patent registrations, and other regulatory

We have direct or indirect interactions with officials and employees of government agencies or government-affiliated hospitals,

universities, and other organizations.

We can be held liable for the corrupt or other illegal activities of our employees, agents, contractors,

and other collaborators, even if we do not explicitly authorize or have actual knowledge of such activities.

Any violations of the laws

and regulations described above may result in substantial civil and criminal fines and penalties, imprisonment, the loss of export or

import privileges, debarment, tax reassessments, breach of contract and fraud litigation, reputational harm, and other consequences.

Governments outside

the United States tend to impose strict price controls, which may adversely affect our revenue, if any.

In some countries, particularly member states of the EU (“EU

Member States”), the pricing of prescription drugs is subject to governmental control.

In these countries, pricing negotiations

with governmental authorities can take considerable time after receipt of marketing approval for a therapeutic.

In addition, there can

be considerable pressure by governments and other stakeholders on prices and reimbursement levels, including as part of cost containment

Political, economic, and regulatory developments may further complicate pricing negotiations, and pricing negotiations may continue

after reimbursement has been obtained.

Reference pricing used by various EU Member States and parallel distribution, or arbitrage between low-priced and

high-priced EU Member States, can further reduce prices.

To obtain coverage and reimbursement or pricing approvals in some countries,

we or current or future collaborators may be required to conduct a clinical trial or other studies that compare the cost-effectiveness of

our product candidates to other available therapies in order to obtain or maintain reimbursement or pricing approval.

Publication of discounts

by third-party payors or authorities may lead to further pressure on the prices or reimbursement levels within the country of publication

and other countries.

If reimbursement of any product candidate approved for marketing is unavailable or limited in scope or amount, or

if pricing is set at unsatisfactory levels, our business, financial condition, results of operations, or prospects could be materially

and adversely affected.

If the UK or EU Member States were to significantly alter their regulations affecting the pricing of prescription

pharmaceuticals, we could face significant new costs.

Risks Related to Our Intellectual

Our ability to obtain,

maintain, and protect our patents and other proprietary rights is uncertain, exposing us to the possible loss of competitive advantage.

We rely upon a combination

of patents, trademarks, trade secret protection, confidentiality agreements, and the Option and License Agreements with Paragon to protect

the intellectual property related to our programs and technologies and to prevent third parties from competing unfairly with it.

depends in large part on our ability to obtain and maintain patent protection for our programs and our product candidates and their uses,

as well as our ability to operate without infringing on or violating the proprietary rights of others.

We and Paragon have filed, and

may continue to file, provisional and non-provisional patent applications directed to antibodies that target IL-23, including applications

covering composition of matter, pharmaceutical formulations, and methods of use, including ORKA-001.

In addition, we and Paragon have

filed, and may continue to file, provisional and non-provisional patent applications directed to antibodies that target IL-17, including

applications covering composition of matter, pharmaceutical formulations, and methods of use, including ORKA-002.

However, we may not

be able to protect our intellectual property rights throughout the world and the legal systems in certain countries may not favor enforcement

or protection of patents, trade secrets, and other intellectual property.

Filing, prosecuting and defending patents on programs worldwide

is expensive and our intellectual property rights in some foreign jurisdictions can be less extensive than those in the United States;

the reverse may also occur.

we may not have patents in all countries or all major markets and may not be able to obtain patents in all jurisdictions even if we apply

Our competitors may operate in countries where we do not have patent protection and can freely use our technologies and discoveries

in such countries to the extent such technologies and discoveries are publicly known or disclosed in countries where we do have patent

protection or pending patent applications.

pending and future patent applications may not result in patents being issued.

Any issued patents may not afford sufficient protection

of our programs or their intended uses against competitors, nor can there be any assurance that the patents issued will not be infringed,

designed around, invalidated by third parties, or effectively prevent others from commercializing competitive technologies, products

Even if these patents are granted, they may be difficult to enforce.

Further, any issued patents that we may license or

own covering our programs could be narrowed or found invalid or unenforceable if challenged in court or before administrative bodies

in the United States or abroad, including the United States Patent and Trademark Office (“USPTO”).

we encounter delays in our clinical trials or delays in obtaining regulatory approval, the period of time during which we could market

our product candidates under patent protection would be reduced.

Thus, the patents that we may own and license may not afford us any

meaningful competitive advantage.

addition to seeking patents for some of our technology and programs, we may also rely on trade secrets, including unpatented know-how, technology

and other proprietary information, to maintain our competitive position.

Any disclosure, either intentional or unintentional, by our

employees, the personnel of third parties with whom we share our facilities or third-party consultants and vendors that we engage

to perform research, clinical trials or manufacturing activities, or misappropriation by third parties (such as through a cybersecurity

breach) of our trade secrets or proprietary information could enable competitors to duplicate or surpass our technological achievements,

thus eroding our competitive position in our market.

In order to protect our proprietary technology and processes, we rely in part on

agreements, such as confidentiality agreements, with our vendors, collaborators, employees, consultants, outside scientific collaborators

and sponsored researchers and other advisors.

These agreements may not effectively prevent disclosure of confidential information and

may not provide an adequate remedy in the event of unauthorized disclosure of confidential information.

We may need to share our proprietary

information, including trade secrets, with future business partners, collaborators, contractors and others located in countries at heightened

risk of theft of trade secrets, including through direct intrusion by private parties or state actors and those affiliated with or controlled

by state actors.

In addition, while we undertake efforts to protect our trade secrets and other confidential information from disclosure,

others may independently discover trade secrets and proprietary information, and in such cases, we may not be able to assert any trade

secret rights against such party.

Enforcing a claim that a party illegally obtained and is using our trade secrets is challenging and

the outcome is unpredictable.

As such, we may not have patents in all countries or all major markets and may not be able to obtain patents

in all jurisdictions even if we apply for them.

Our competitors may operate in countries where we do not have patent protection and can

freely use our technologies and discoveries in such countries to the extent such technologies and discoveries are publicly known or disclosed

in countries where we do have patent protection or pending patent applications.

Our pending and future patent applications may not result in patents

being issued.

Any issued patents may not afford sufficient protection of our programs or their intended uses against competitors, nor

can there be any assurance that the patents issued will not be infringed, designed around, or invalidated by third parties, or will effectively

prevent others from commercializing competitive technologies, products, or programs.

Even if these patents are granted, they may be difficult

Further, any issued patents that we may license or own covering our programs could be narrowed or found invalid or unenforceable

if challenged in court or before administrative bodies in the United States or abroad, including the United States Patent and Trademark

Office (“USPTO”).

Further, if we encounter delays in our clinical trials or delays in obtaining regulatory approval, the period

of time during which we could market our product candidates under patent protection would be reduced.

Thus, the patents that we may own

and license may not afford us any meaningful competitive advantage.

In addition to seeking patents for some of our technology and programs,

we may also rely on trade secrets, including unpatented know-how, technology and other proprietary information, to maintain our competitive

Any disclosure, either intentional or unintentional, by our employees, the personnel of third parties with whom we share our

facilities, or third-party consultants and vendors that we engage to perform research, clinical trials or manufacturing activities, or

misappropriation by third parties (such as through a cybersecurity breach) of our trade secrets or proprietary information could enable

competitors to duplicate or surpass our technological achievements, thus eroding our competitive position in our market.

In order to protect

our proprietary technology and processes, we rely in part on agreements, such as confidentiality agreements, with our vendors, collaborators,

employees, consultants, outside scientific collaborators and sponsored researchers and other advisors.

These agreements may not effectively

prevent disclosure of confidential information and may not provide an adequate remedy in the event of unauthorized disclosure of confidential

We may need to share our proprietary information, including trade secrets, with future business partners, collaborators,

contractors and others located in countries at heightened risk of theft of trade secrets, including through direct intrusion by private

parties or state actors and those affiliated with or controlled by state actors.

In addition, while we undertake efforts to protect our

trade secrets and other confidential information from disclosure, others may independently discover trade secrets and proprietary information,

and in such cases, we may not be able to assert any trade secret rights against such party.

Enforcing a claim that a party illegally obtained

and is using our trade secrets is challenging and the outcome is unpredictable.

In addition, courts outside of the U.S.

may be less willing to protect trade secrets.

Costly and time-consuming litigation

could be necessary to enforce and determine the scope of our proprietary rights and failure to obtain or maintain trade secret protection

could adversely affect our competitive business position.

if our trademarks and trade names are not registered or adequately protected, then we may not be able to build name recognition in our

markets of interest and our business may be adversely affected.

may not be successful in obtaining or maintaining necessary rights to our programs through acquisitions and in-licenses.

our development programs currently do and may in the future require the use of proprietary rights held by third parties, the growth of

our business may depend in part on our ability to acquire, in-license, or use these third-party proprietary rights.

is possible that we may be unable to obtain licenses at a reasonable cost or on reasonable terms, if at all.

Even if we are able to obtain

a license, it may be non-exclusive, thereby giving our competitors access to the same technologies licensed to us.

We may be unable to

acquire or in-license any compositions, methods of use, processes or other third-party intellectual property rights from

third parties that we identify as necessary for our programs.

The licensing and acquisition of third-party intellectual property

rights is a competitive area, and a number of more established companies may pursue strategies to license or acquire third-party intellectual

may be less willing

to protect trade secrets.

Costly and time-consuming litigation could be necessary to enforce and determine the scope of our proprietary

rights and failure to obtain or maintain trade secret protection could adversely affect our competitive business position.

Lastly, if our trademarks

and trade names are not registered or adequately protected, then we may not be able to build name recognition in our markets of interest

and our business may be adversely affected.

We may not be successful

in obtaining or maintaining necessary rights to our programs through acquisitions and in-licenses.

Because our development programs currently do and may in the future

require the use of proprietary rights held by third parties, the growth of our business may depend in part on our ability to acquire, in-license, or

use these third-party proprietary rights.

It is possible that we may be unable to obtain licenses at a reasonable cost or on reasonable

terms, if at all.

Even if we are able to obtain a license, it may be non-exclusive, thereby giving our competitors access to the same

technologies licensed to us.

We may be unable to acquire or in-license any compositions, methods of use, processes or other

intellectual property rights from third parties that we identify as necessary for our programs.

The licensing and acquisition of third-party intellectual

property rights is a competitive area, and a number of more established companies may pursue strategies to license or acquire third-party intellectual

property rights that we may consider attractive or necessary.

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If we are unable to successfully

obtain rights to required third-party intellectual property rights or maintain the existing intellectual property rights we do obtain,

we may have to abandon development of the relevant program, which could have a material adverse effect on our business, financial condition,

obtain rights to required third-party intellectual property or maintain the existing intellectual property rights we do obtain, we

may have to abandon the development of the relevant program, which could have a material adverse effect on our business, financial condition,

results of operations, and prospects.

we plan to obtain the right to control prosecution, maintenance and enforcement of the patents relating to our programs, there may be

times when the filing and prosecution activities for patents and patent applications relating to our programs are controlled by our current

and future licensors or collaboration partners.

If any of our current and future licensors or collaboration partners fail to prosecute,

maintain and enforce such patents and patent applications in a manner consistent with the best interests of our business, we could lose

our rights to the intellectual property or our exclusivity with respect to those rights, our ability to develop and commercialize those

product candidates may be adversely affected and we may not be able to prevent competitors from making, using and selling competing products.

In addition, even where we have the right to control patent prosecution of patents and patent applications we have licensed to and from

third parties, we may still be adversely affected or prejudiced by actions or inactions of our licensees, our future licensors and our

counsel that took place prior to the date upon which we assumed control over patent prosecution.

Moreover, if other third parties have

ownership rights to our future in-licensed patents, they may be able to license such patents to our competitors, and our competitors

could market competing products and technology.

to obtain licenses at a reasonable cost or terms may require us to expend significant time and resources to redesign our technology,

programs, or the methods for manufacturing them or to develop or license replacement technology, all of which may not be feasible on

a technical or commercial basis.

If we are unable to do so, we may be unable to develop or commercialize the affected product candidates.

This could have a material adverse effect on our competitive position, business, financial condition, results of operations, and prospects.

may arise between us and our future licensors regarding intellectual property subject to a license agreement, including:

While we plan to obtain the

right to control patent prosecution, maintenance, and enforcement of the patents relating to our programs, there may be times when the

filing and prosecution activities for patents and patent applications relating to our programs are controlled by our current and future

licensors or collaboration partners.

If any of our current and future licensors or collaboration partners fail to prosecute, maintain,

and enforce such patents and patent applications in a manner consistent with the best interests of our business, we could lose our rights

to the intellectual property or our exclusivity with respect to those rights, our ability to develop and commercialize those product candidates

may be adversely affected and we may not be able to prevent competitors from making, using, and selling competing products.

even where we have the right to control prosecution of patents and patent applications we have licensed to and from third parties, we

may still be adversely affected or prejudiced by actions or inactions of our licensees, our future licensors, and our counsel that took

place prior to the date upon which we assumed control over patent prosecution.

Moreover, if other third parties have ownership rights

to our future in-licensed patents, they may be able to license such patents to our competitors, and our competitors could market competing

products and technology.

Failure to obtain licenses at a reasonable cost or on reasonable terms

may require us to expend significant time and resources to redesign our technology, programs, or the methods for manufacturing them or

to develop or license replacement technology, all of which may not be feasible on a technical or commercial basis.

If we are unable to

do so, we may be unable to develop or commercialize the affected product candidates.

This could have a material adverse effect on our

competitive position, business, financial condition, results of operations, and prospects.

Disputes may arise between

us and our future licensors regarding intellectual property subject to a license agreement, including without limitation:

rights granted under the license agreement and other interpretation-related issues;

whether and the extent to which our technology

and processes infringe on intellectual property of the licensor that is not subject to the licensing agreement;

and processes may infringe on intellectual property of the licensor that is not subject to the licensing agreement;

our right to sublicense

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our right to transfer or assign the license;

the inventorship and ownership of inventions

and know-how resulting from the joint creation or use of intellectual property by our future licensors and us and our partners;

and the priority of invention of patented technology.

may be subject to patent infringement claims or may need to file claims to protect our intellectual property, which could result in substantial

costs and liability and prevent us from commercializing our potential products.

the intellectual property landscape in the biopharmaceutical industry is rapidly evolving and interdisciplinary, it is difficult to conclusively

assess our freedom to operate and guarantee that we can operate without infringing on or violating third-party rights.

patent rights, if found to be valid and enforceable, could be alleged to render one or more of our product candidates infringing.

a third party successfully brings a claim against us, we may be required to pay substantial damages, be forced to abandon any affected

product candidate and/or seek a license from the patent holder.

Any intellectual property claims brought against us, whether or not successful,

may cause us to incur significant legal expenses and divert the attention of our management and key personnel from other business concerns.

We cannot be certain that patents owned or licensed by us will not be challenged by others in the course of litigation.

Some of our competitors

may be able to sustain the costs of complex intellectual property litigation more effectively than we can because they have substantially

greater resources.

In addition, any litigation could have a material adverse effect on our business and operations, including our ability

to raise funds.

may infringe or otherwise violate our patents, trademarks, copyrights or other intellectual property.

To counter infringement or other

violations, we may be required to file claims, which can be expensive and time-consuming, and any such claims could provoke these parties

to assert counterclaims against us.

In addition, in a patent infringement proceeding, a court or administrative body may decide that

one or more of the patents we assert is invalid or unenforceable, in whole or in part, construe the patent’s claims narrowly or

refuse to prevent the other party from using the technology at issue on the grounds that our patents do not cover the technology.

if we assert trademark infringement claims, a court or administrative body may determine that the marks we have asserted are invalid

or unenforceable or that the party against whom we have asserted trademark infringement has superior rights to the marks in question.

the inventorship and ownership of inventions and know-how resulting

from the joint creation or use of intellectual property by our future licensors and us and our partners;

and the priority of invention

of patented technology.

We may be subject to

patent infringement claims or may need to file claims to protect our intellectual property, which could result in substantial costs and

liability and prevent us from commercializing our potential products.

Because the intellectual property landscape in the biopharmaceutical

industry is rapidly evolving and interdisciplinary, it is difficult to conclusively assess our freedom to operate and guarantee that we

can operate without infringing on or violating third-party rights.

Third-party patent rights, if found to be valid and enforceable,

could be alleged to render one or more of our product candidates infringing.

If a third party successfully brings a claim against us,

we may be required to pay substantial damages, be forced to abandon or delay the development of any affected product candidate, and/or

seek a license from the patent holder.

Any intellectual property claims brought against us, whether or not successful, may cause us to

incur significant legal expenses and divert the attention of our management and key personnel from other business concerns.

be certain that patents owned or licensed by us will not be challenged by others in litigation.

Some of our competitors may be able to

sustain the costs of complex intellectual property litigation more effectively than we can because they may have substantially greater

In addition, any litigation could have a material adverse effect on our business and operations, including our ability to raise

Competitors may infringe

or otherwise violate our patents, trademarks, copyrights, or other intellectual property.

To counter infringement or other violations,

we may be required to file claims, which can be expensive and time-consuming, and any such claims could provoke these parties to assert

counterclaims against us.

In addition, in a patent infringement proceeding, a court or administrative body may decide that one or more

of the patents we assert is invalid or unenforceable, in whole or in part, construe the patent’s claims narrowly or refuse to prevent

the other party from using the technology at issue on the grounds that our patents do not cover the technology.

Similarly, if we assert

trademark (“marks”) infringement claims, a court or administrative body may determine that the marks we have asserted are

invalid or unenforceable or that the party against whom we have asserted trademark infringement has superior rights to the marks in question.

In such a case, we could ultimately be forced to cease use of such marks.

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any award of monetary damages or other remedy we receive may not be commercially valuable.

we may be required to protect our patents through procedures created to attack the validity of a patent at the USPTO.

determination in any such submission or proceeding could reduce the scope or enforceability of, or invalidate, our patent rights, which

could adversely affect our competitive position.

Because of a lower evidentiary standard in USPTO proceedings compared to the evidentiary

standard in U.S.

federal courts necessary to invalidate a patent claim, a third party could potentially provide evidence in a USPTO

proceeding sufficient for the USPTO to hold a claim invalid even though the same evidence would be insufficient to invalidate the claim

if first presented in a district court action.

addition, if our programs are found to infringe the intellectual property rights of third parties, these third parties may assert infringement

claims against our future licensees and other parties with whom we have business relationships and we may be required to indemnify those

parties for any damages they suffer as a result of these claims, which may require us to initiate or defend protracted and costly litigation

on behalf of licensees and other parties regardless of the merits of such claims.

If any of these claims succeed, we may be forced to

pay damages on behalf of those parties or may be required to obtain licenses for the products they use.

because of the substantial amount of discovery required in connection with intellectual property litigation or other legal proceedings

relating to our intellectual property rights, there is a risk that some of our confidential information could be compromised by disclosure

during this type of litigation or other proceedings.

may be subject to claims that we have wrongfully hired an employee from a competitor or that our employees, consultants or independent

contractors have wrongfully used or disclosed confidential information of third parties.

is common in the biopharmaceutical industry, in addition to our employees, we engage the services of consultants to assist us in the

development of our programs.

Many of these consultants, and many of our employees, were previously employed at, or may have previously

provided or may be currently providing consulting services to, other biotechnology or pharmaceutical companies including our competitors

or potential competitors.

We could in the future be subject to claims that we, our employees or our consultants have inadvertently or

otherwise used or disclosed alleged intellectual property, such as trade secrets, or other confidential information of former employers

or competitors.

Although we try to ensure that our employees and consultants do not use the intellectual property, proprietary information, know-how or

trade secrets of others in their work for us, we may become subject to claims that we caused an individual to breach the terms of his

or her non-competition or non-solicitation agreement, or that we or these individuals have, inadvertently or otherwise,

used or disclosed the alleged trade secrets or other proprietary information of a former employer or competitor.

we may litigate to defend ourselves against these claims, even if we are successful, litigation could result in substantial costs and

could be a distraction to management.

If our defenses to these claims fail, in addition to requiring us to pay monetary damages, a court

could prohibit us from using technologies or features that are essential to our programs, if such technologies or features are found

to incorporate or be derived from the trade secrets or other proprietary information of the former employers.

Moreover, any such litigation

or the threat thereof may adversely affect our reputation, our ability to form strategic alliances or sublicense our rights to collaborators,

engage with scientific advisors or hire employees or consultants, each of which would have an adverse effect on our business, results

of operations and financial condition.

Even if we are successful in defending against such claims, litigation could result in substantial

costs and be a distraction to management.

to patent laws in the United States and other jurisdictions could diminish the value of patents in general, thereby impairing our

ability to protect our products.

in either the patent laws or interpretation of patent laws in the United States and foreign jurisdictions could increase the uncertainties

and costs surrounding the prosecution of our owned and in-licensed patent applications and the maintenance, enforcement or

defense of our owned and in-licensed issued patents.

Additionally, there have been proposals for additional changes to the

patent laws of the United States and other countries that, if adopted, could impact our ability to enforce our proprietary technology.

This combination of events has created uncertainty with respect to the validity and enforceability of patents once obtained.

on future actions by the U.S.

Congress, the federal courts, the USPTO and the relevant law-making bodies in other countries, the laws

and regulations governing patents could change in unpredictable ways that could have a material adverse effect on our patent rights and

our ability to protect, defend and enforce our patent rights in the future.

In addition, geopolitical instability could increase the

uncertainties and costs surrounding the prosecution or maintenance of patent applications and the maintenance, enforcement or defense

of issued patents.

patent positions of companies in the development and commercialization of biologics and pharmaceuticals are particularly uncertain.

Court and U.S.

Court of Appeals for the Federal Circuit rulings have narrowed the scope of patent protection available in certain

circumstances and weakened the rights of patent owners in certain situations, including in the antibody arts.

For example, the United States

Further, we may be required

to protect our patents through procedures created to attack the validity of a patent at the USPTO.

An adverse determination in any

such submission or proceeding could reduce the scope of, affect the enforceability of, or invalidate, our patent rights, which could adversely

affect our competitive position.

Because of a lower evidentiary standard in USPTO proceedings compared to the evidentiary standard in

federal courts necessary to invalidate a patent claim, a third party could potentially provide evidence in a USPTO proceeding

sufficient for the USPTO to hold a claim invalid even though the same evidence would be insufficient to invalidate the claim if first

presented in a district court action.

In addition, if our programs

are found to infringe the intellectual property rights of third parties, these third parties may assert infringement claims against our

future licensees and other parties with whom we have business relationships and we may be required to indemnify those parties for any

damages they suffer as a result of these claims, which may require us to initiate or defend protracted and costly litigation on behalf

of licensees and other parties regardless of the merits of such claims.

If any of these claims succeed, we may be forced to pay damages

on behalf of those parties or may be required to obtain licenses for the products they use.

Furthermore, because of the

substantial amount of discovery required in connection with intellectual property litigation or other legal proceedings relating to our

intellectual property rights, there is a risk that some of our confidential information could be compromised by disclosure during this

type of litigation or other proceedings.

Changes to patent

laws in the U.S.

and other jurisdictions could diminish the value of patents in general, thereby impairing our ability to protect our

Changes in either the patent laws or interpretation of patent laws

and foreign jurisdictions could increase the uncertainties and costs surrounding the prosecution of our owned and in-licensed patent

applications and the maintenance, enforcement or defense of our owned and in-licensed issued patents.

Additionally, there have

been proposals for additional changes to the patent laws of the U.S.

and other countries that, if adopted, could impact our ability to

enforce our proprietary technology.

This combination of events has created uncertainty with respect to the validity and enforceability

of patents once obtained.

Depending on future actions by the U.S.

Congress, the federal courts, the USPTO, and the relevant law-making

bodies in other countries, the laws and regulations governing patents could change in unpredictable ways that could have a material adverse

effect on our patent rights and our ability to protect, defend, and enforce our patent rights in the future.

In addition, geopolitical

instability could increase the uncertainties and costs surrounding the prosecution or maintenance of patent applications and the maintenance,

enforcement, or defense of issued patents.

The patent positions of companies in the development and commercialization

of biologics and pharmaceuticals are particularly uncertain.

Supreme Court and U.S.

Court of Appeals for the Federal Circuit

rulings have narrowed the scope of patent protection available in certain circumstances and weakened the rights of patent owners in certain

situations, including in the antibody arts.

For example, the U.S.

Supreme Court in Amgen, Inc.

Sanofi (Amgen) stated that if patent claims are directed to an entire class of compositions

of matter, then the patent specification must enable a person skilled in the art to make and use the entire class of compositions.

decision makes it unlikely that we will be granted U.S.

patents with composition of matter claims directed to antibodies functionally

defined by their ability to bind a particular antigen.

Even if we are granted claims directed to functionally defined antibodies, it

is possible that a third party may challenge our patents, when issued, relying on the reasoning in Amgen or other recent precedential

court decisions.

addition, a European Unified Patent Court (“UPC”) entered into force on June 1, 2023.

The UPC is a common patent court

that hears patent infringement and revocation proceedings effective for EU Member States.

This could enable third parties to seek revocation

of a European patent in a single proceeding at the UPC rather than through multiple proceedings in each of the jurisdictions in which

the European patent is validated.

we do not currently own any European patents or applications, if we obtain such patents and applications in the future, any such revocation

and loss of patent protection could have a material adverse impact on our business and our ability to commercialize or license our technology

and products.

Moreover, the controlling laws and regulations of the UPC will develop over time, and may adversely affect our ability

to enforce or defend the validity of any European patents we may obtain.

We may decide to opt out from the UPC any future European patent

applications that we may file and any patents we may obtain.

If certain formalities and requirements are not met, however, such European

patents and patent applications could be challenged for non-compliance and brought under the jurisdiction of the UPC.

cannot be certain that future European patents and patent applications will avoid falling under the jurisdiction of the UPC, if we decide

to opt out of the UPC.

and maintaining patent protection depends on compliance with various procedural, document submissions, fee payment and other requirements

imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these

requirements.

maintenance fees, renewal fees, annuities fees and various other governmental fees on patents and/or patent applications are due to be

paid to the USPTO and foreign patent agencies in several stages over the lifetime of the patent and/or patent application.

and various foreign governmental patent agencies also require compliance with a number of procedural, documentary, fee payment and other

similar provisions during the patent application process.

While an inadvertent lapse can in many cases be cured by payment of a late

fee or by other means in accordance with the applicable rules, there are situations in which noncompliance can result in abandonment

or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction.

Non-compliance events

that could result in abandonment or lapse of a patent or patent application include, but are not limited to, failure to respond to official

actions within prescribed time limits, non-payment of fees and failure to properly legalize and submit formal documents.

we fail to maintain the patents and patent applications covering our programs, our competitive position would be adversely affected.

may not identify relevant third-party patents or may incorrectly interpret the relevance, scope or expiration of a third-party patent,

which might adversely affect our ability to develop and market our products.

cannot guarantee that any of our patent searches or analyses, including the identification of relevant patents, the scope of patent claims

or the expiration of relevant patents, are complete or thorough, nor can we be certain that we have identified each and every third-party patent

and pending application in the United States and abroad that is relevant to or necessary for the commercialization of our product

candidates in any jurisdiction.

The scope of a patent claim is determined by an interpretation of the law, the written disclosure in

a patent and the patent’s prosecution history.

Our interpretation of the relevance or the scope of a patent or a pending application

may be incorrect.

For example, we may incorrectly determine that our products are not covered by a third-party patent or may incorrectly

predict whether a third-party’s pending application will issue with claims of relevant scope.

Our determination of the expiration

date of any patent in the United States or abroad that we consider relevant may be incorrect.

Our failure to identify and correctly

interpret relevant patents may negatively impact our ability to develop and market our products.

addition, because some patent applications in the United States may be maintained in secrecy until the patents are issued, patent

applications in the United States and many foreign jurisdictions are typically not published until 18 months after filing,

and publications in the scientific literature often lag behind actual discoveries, we cannot be certain that others have not filed patent

applications for technology covered by our issued patents or our pending applications, or that we were the first to invent the technology.

Our competitors may have filed, and may in the future file, patent applications covering products or technology similar to ours.

such patent application may have priority over our patent applications or patents, which could require us to obtain rights to issued

patents covering such technologies.

may become subject to claims challenging the inventorship or ownership of our patents and other intellectual property.

may be subject to claims that former employees, collaborators or other third parties have an interest in our patents or other intellectual

property as an inventor or co-inventor.

The failure to name the proper inventors on a patent application can result in the

patents issuing thereon being unenforceable.

Inventorship disputes may arise from conflicting views regarding the contributions of different

individuals named as inventors, the effects of foreign laws where foreign nationals are involved in the development of the subject matter

of the patent, conflicting obligations of third parties involved in developing our programs or as a result of questions regarding co-ownership of

potential joint inventions.

Litigation may be necessary to resolve these and other claims challenging inventorship and/or ownership.

Alternatively, or additionally, we may enter into agreements to clarify the scope of our rights in such intellectual property.

fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as

exclusive ownership of, or right to use, valuable intellectual property.

Such an outcome could have a material adverse effect on our

Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction

to management and other employees.

terms may be inadequate to protect the competitive position of our product candidates for an adequate amount of time.

have a limited lifespan.

In the United States, if all maintenance fees are timely paid, the natural expiration of a patent is generally

20 years from its earliest United States non-provisional filing date.

Various extensions may be available, but the

life of a patent, and the protection it affords, is limited.

Even if patents covering our product candidates are obtained, once the patent

life has expired, we may be open to competition from competitive products, including generics or biosimilars.

Given the amount of time

required for the development, testing and regulatory review of new product candidates, patents protecting such product candidates might

expire before or shortly after such product candidates are commercialized.

As a result, our owned and licensed patent portfolio may not

provide us with sufficient rights to exclude others from commercializing products similar or identical to ours.

technology licensed from various third parties may be subject to retained rights.

future licensors may retain certain rights under the relevant agreements with us, including the right to use the underlying technology

for noncommercial academic and research use, to publish general scientific findings from research related to the technology, and to make

customary scientific and scholarly disclosures of information relating to the technology.

It is difficult to monitor whether our licensors

limit their use of the technology to these uses, and we could incur substantial expenses to enforce our rights to our licensed technology

in the event of misuse.

addition, our future licensors may rely on third-party consultants or collaborators or on funds from third parties, such as the

government, such that our licensors would not be the sole and exclusive owners of any patents we in-license.

third parties have ownership rights or other rights to our in-licensed patents, they may be able to license such patents to

our competitors, and our competitors could market competing products and technology.

This could have a material adverse effect on our

competitive position, business, financial conditions, results of operations, and prospects.

Related to Our Reliance on Third Parties

currently rely on licensing arrangements with Paragon through the License Agreements.

If we are unable to maintain collaborations or

licensing arrangements, or if our collaborations or licensing arrangements are not successful, our business could be negatively impacted.

currently rely on our licensing arrangements with Paragon through the License Agreements for a substantial portion of our in-licenses.

Collaborations

or licensing arrangements that we enter into may not be successful, and any success will depend heavily on the efforts and activities

of such collaborators or licensors.

If any of our current or future collaborators or licensors experience delays in performance of, or

fails to perform our obligations under their agreement with us, disagrees with our interpretation of the terms of such agreement or terminates

their agreement with us, the research programs with respect to which we have the option to acquire intellectual property license rights

to pursuant to the Option Agreements, the licensing agreements we have pursuant to the License Agreements and our development timeline

Sanofi (Amgen) stated that

if patent claims are directed to an entire class of compositions of matter, then the patent specification must enable a person skilled

in the art to make and use the entire class of compositions.

This decision makes it unlikely that we will be granted U.S.

with composition of matter claims directed to antibodies functionally defined by their ability to bind a particular antigen.

are granted claims directed to functionally defined antibodies, it is possible that a third party may challenge our patents, when issued,

relying on the reasoning in Amgen or other recent precedential court decisions.

In addition, a European Unified

Patent Court (“UPC”) entered into force on June 1, 2023.

The UPC is a common patent court that hears patent infringement

and revocation proceedings effective for EU Member States.

This could enable third parties to seek revocation of a European patent in

a single proceeding at the UPC rather than through multiple proceedings in each of the jurisdictions in which the European patent is validated.

Although we do not currently

own any European patents or applications, if we obtain such patents and applications in the future, any such revocation and loss of patent

protection could have a material adverse impact on our business and our ability to commercialize or license our technology and products.

Moreover, the controlling laws and regulations of the UPC will develop over time, and may adversely affect our ability to enforce or defend

the validity of any European patents we may obtain.

We may decide to opt out from the UPC any future European patent applications that

we may file and any patents we may obtain.

If certain formalities and requirements are not met, however, such European patents and patent

applications could be challenged for non-compliance and brought under the jurisdiction of the UPC.

We cannot be certain

that future European patents and patent applications will avoid falling under the jurisdiction of the UPC, if we decide to opt out of

Obtaining and maintaining patent protection depends on compliance with

various procedural, document submissions, fee payment, and other requirements imposed by governmental patent agencies, and our patent

protection could be reduced or eliminated for non-compliance with these requirements.

Periodic maintenance fees, renewal fees, annuities fees, and various

other governmental fees on patents and/or patent applications are due to be paid to the USPTO and foreign patent agencies in several stages

over the lifetime of the patent and/or patent application.

The USPTO and various foreign governmental patent agencies also require compliance

with a number of procedural, documentary, fee payment, and other similar provisions during the patent application process.

While an inadvertent

lapse can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations

in which noncompliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of

patent rights in the relevant jurisdiction.

Non-compliance events that could result in abandonment or lapse of a patent or patent

application include, but are not limited to, failure to respond to official actions within prescribed time limits, non-payment of

fees, and failure to properly legalize and submit formal documents.

If we fail to maintain the patents and patent applications covering

our programs, our competitive position would be adversely affected.

We may not identify

relevant third-party patents or may incorrectly interpret the relevance, scope or expiration of a third-party patent, which might adversely

affect our ability to develop and market our products.

We cannot guarantee that

any of our patent searches or analyses, including the identification of relevant patents, the scope of patent claims or the expiration

of relevant patents, are complete or thorough, nor can we be certain that we have identified each and every third-party patent and

pending application in the U.S.

and abroad that is relevant to or necessary for the commercialization of our product candidates in any

jurisdiction.

The scope of a patent claim is determined by an interpretation of the law, the written disclosure in a patent, and the patent’s

prosecution history.

Our interpretation of the relevance or the scope of a patent or a pending application may be incorrect.

we may incorrectly determine that our products are not covered by a third-party patent or may incorrectly predict whether a third-party’s

pending application will issue with claims of relevant scope.

Our determination of the expiration date of any patent in the U.S.

that we consider relevant may be incorrect.

Our failure to identify and correctly interpret relevant patents may negatively impact our

ability to develop and market our products.

In addition, because some patent applications in the U.S.

may be maintained

in secrecy until the patents are issued, and because patent applications in the U.S.

and many foreign jurisdictions are typically not

published until 18 months after filing, and publications in the scientific literature often lag behind actual discoveries, we cannot

be certain that others have not filed patent applications for technology covered by our issued patents or our pending applications, or

that we were the first to invent the technology.

Our competitors may have filed, and may in the future file, patent applications covering

products or technology similar to ours.

Any such patent application may have priority over our patent applications or patents, which could

require us to obtain rights to issued patents covering such technologies.

We may become subject

to claims challenging the inventorship or ownership of our patents and other intellectual property.

We may be subject to claims that former employees, collaborators, or

other third parties have an interest in our patents or other intellectual property as an inventor or co-inventor.

to name the proper inventors on a patent application can impact the validity of the patents issuing thereon.

Inventorship disputes may

arise from conflicting views regarding the contributions of different individuals named as inventors, the effects of foreign laws where

foreign nationals are involved in the development of the subject matter of the patent, conflicting obligations of third parties involved

in developing our programs, or as a result of questions regarding co-ownership of potential joint inventions.

Litigation may

be necessary to resolve these and other claims challenging inventorship and/or ownership.

Alternatively, or additionally, we may enter

into agreements to clarify the scope of our rights in such intellectual property.

If we fail in defending any such claims, in addition

to paying monetary damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, valuable

intellectual property.

Such an outcome could have a material adverse effect on our business.

Even if we are successful in defending against

such claims, litigation could result in substantial costs and be a distraction to management and other employees.

Patent terms may be

inadequate to protect the competitive position of our product candidates for an adequate amount of time.

Patents have a limited lifespan.

In the U.S., if all maintenance fees

are timely paid, the natural expiration of a patent is generally 20 years from its earliest U.S.

non-provisional filing

Various extensions may be available, but the life of a patent, and the protection it affords, is time limited.

Even if patents covering

our product candidates are obtained, once the patent life has expired, we may be open to competition from competitive products, including

generics or biosimilars.

Given the amount of time required for the development, testing, and regulatory review of new product candidates,

patents protecting such product candidates might expire before or shortly after such product candidates are commercialized.

our owned and licensed patent portfolio may not provide us with sufficient rights to exclude others from commercializing products similar

or identical to ours.

Our technology licensed

from various third parties may be subject to retained rights.

Our future licensors may

retain certain rights under the relevant agreements with us, including the right to use the underlying technology for noncommercial academic

and research use, to publish general scientific findings from research related to the technology, and to make customary scientific and

scholarly disclosures of information relating to the technology.

It is difficult to monitor whether our licensors limit their use of the

technology to these uses, and we could incur substantial expenses to enforce our rights to our licensed technology in the event of misuse.

In addition, our future licensors

may rely on third-party consultants or collaborators or on funds from third parties, such as the U.S.

government, such that

our licensors would not be the sole and exclusive owners of any patents we in-license.

If other third parties have ownership

rights or other rights to our in-licensed patents, they may be able to license such patents to our competitors, and our competitors

could market competing products and technology.

This could have a material adverse effect on our competitive position, business, financial

conditions, results of operations, and prospects.

Risks Related to Our Reliance

on Third Parties

We currently rely on licensing arrangements for a substantial portion

of our product portfolio, including with Paragon for ORKA-001 and ORKA-002.

If we are unable to maintain collaborations or licensing arrangements,

or if our collaborations or licensing arrangements are not successful, our business could be negatively impacted.

Collaborations or licensing arrangements that we enter into may not

be successful, and any success will depend heavily on the efforts and activities of such collaborators or licensors.

If any of our current

or future collaborators or licensors experience delays in performance of, or fails to perform, their obligations under their agreement

with us, disagrees with our interpretation of the terms of such agreement or terminates their agreement with us, our development timeline

could be adversely affected.

If we fail to comply with any of the obligations under our collaborations or license agreements, including

payment terms and diligence terms, our collaborators or licensors may have the right to terminate such agreements, in which event we

may lose intellectual property rights and may not be able to develop, manufacture, market or sell the products covered by our agreements

or may face other penalties under our agreements.

Our collaborators and licensors may also fail to properly maintain or defend the intellectual

property we have licensed from them, if required by our agreement with them, or even infringe upon, our intellectual property rights,

leading to the potential invalidation of our intellectual property or subjecting us to litigation or arbitration, any of which would

be time-consuming and expensive and could harm our ability to commercialize our product candidates.

In addition, collaborators could

independently develop, or develop with third parties, products that compete directly or indirectly with our programs and products if

the collaborators believe that the competitive products are more likely to be successfully developed or can be commercialized under terms

that are more economically attractive than ours.

part of our strategy, we plan to evaluate additional opportunities to enhance our capabilities and expand our development pipeline or

provide development or commercialization capabilities that complement ours.

We may not realize the benefits of such collaborations, alliances

or licensing arrangements.

Any of these relationships may require us to incur non-recurring and other charges, increase our

near and long-term expenditures, issue securities that dilute our existing stockholders or disrupt our management and business.

may face significant competition in attracting appropriate collaborators, and more established companies may also be pursuing strategies

to license or acquire third-party intellectual property rights that we consider attractive.

These companies may have a competitive

advantage over us due to their size, financial resources and greater clinical development and commercialization capabilities.

companies that perceive us to be a competitor may be unwilling to assign or license rights to us.

Whether we reach a definitive agreement

for a collaboration will depend upon, among other things, our assessment of the collaborator’s resources and expertise, the terms

and conditions of the proposed collaboration and the proposed collaborator’s evaluation of a number of factors.

Collaborations

are complex and time-consuming to negotiate, document and execute.

In addition, consolidation among large pharmaceutical and biotechnology

companies has reduced the number of potential future collaborators.

We may not be able to negotiate collaborations on a timely basis,

on acceptable terms or at all.

If we fail to enter into collaborations and do not have sufficient funds or expertise to undertake the

necessary development and commercialization activities, we may not be able to further develop our product candidates or bring them to

currently rely, and plan to rely in the future, on third parties to conduct and support our preclinical studies and clinical trials.

If these third parties do not properly and successfully carry out their contractual duties or meet expected deadlines, we may not be

able to obtain regulatory approval of or commercialize our product candidates.

have utilized and plan to continue to utilize and depend upon independent investigators and collaborators, such as medical institutions,

CROs, contract testing labs, CMOs and strategic partners, to supply, conduct and support our preclinical studies and clinical trials

under agreements with us.

We will rely heavily on these third parties over the course of our preclinical studies and clinical trials,

and we control only certain aspects of their activities.

As a result, we will have less direct control over the conduct, timing and completion

of these preclinical studies and clinical trials and the management of data developed through preclinical studies and clinical trials

than would be the case if we were relying entirely upon our own staff.

Nevertheless, we are responsible for ensuring that each of our

studies and trials is conducted in accordance with the applicable protocol, legal, regulatory and scientific standards, and our reliance

on these third parties does not relieve us of our regulatory responsibilities.

We and our third-party contractors and CROs are required

to comply with GCP regulations, which are regulations and guidelines enforced by the FDA and comparable foreign regulatory authorities

for all of our programs in clinical development.

If we or any of these third parties fail to comply with applicable GCP regulations,

the clinical data generated in our clinical trials may be deemed unreliable and the FDA or comparable foreign regulatory authorities

may require us to perform additional clinical trials before approving our marketing applications or refuse to approve our marketing applications.

We cannot assure you that upon inspection by a given regulatory authority, such regulatory authority will determine that any of our clinical

trials comply with GCP regulations.

In addition, our clinical trials must be conducted with products produced under cGMP regulations.

Our failure to comply with these regulations may require us to repeat clinical trials, which would delay the regulatory approval process.

We currently rely on our licensing agreements with Paragon for a substantial portion of our product portfolio,

including for ORKA-001 and ORKA-002.

If we fail to comply with any of the obligations under our collaborations or license agreements,

including payment terms and diligence terms, our collaborators or licensors may have the right to terminate such agreements, in which

event we may lose intellectual property rights and may not be able to develop, manufacture, market, or sell the products covered by our

agreements or may face other penalties under our agreements.

Our collaborators and licensors may also fail to properly maintain or defend

the intellectual property we have licensed from them, if required by our agreement with them, or even infringe upon, our intellectual

property rights, leading to the potential invalidation of our intellectual property or subjecting us to litigation or arbitration, any

of which would be time-consuming and expensive and could harm our ability to commercialize our product candidates.

In addition, collaborators

could independently develop, or develop with third parties, products that compete directly or indirectly with our programs and products

if the collaborators believe that the competitive products are more likely to be successfully developed or can be commercialized under

terms that are more economically attractive than ours.

As part of our strategy,

we plan to evaluate additional opportunities to enhance our capabilities and expand our development pipeline or provide development or

commercialization capabilities that complement ours.

We may not realize the benefits of such collaborations, partnerships, or licensing

arrangements.

Any of these relationships may require us to incur non-recurring and other charges, increase our near and long-term expenditures,

issue securities that dilute our existing stockholders or disrupt our management and business.

We may face significant competition in attracting appropriate collaborators,

and more established companies may also be pursuing strategies to license or acquire third-party intellectual property rights that we

consider attractive.

These companies may have a competitive advantage over us due to their size, financial resources, and greater clinical

development and commercialization capabilities.

In addition, companies that perceive us to be a competitor may be unwilling to assign

or license rights to us.

Whether we reach a definitive agreement for a collaboration will depend upon, among other things, our assessment

of the collaborator’s resources and expertise, the terms and conditions of the proposed collaboration and the proposed collaborator’s

evaluation of a number of factors.

Collaborations are complex and time-consuming to negotiate, document, and execute.

In addition, consolidation

among large pharmaceutical and biotechnology companies has reduced the number of potential future collaborators.

We may not be able to

negotiate collaborations on a timely basis, on acceptable terms or at all.

If we fail to enter into collaborations and do not have sufficient

funds or expertise to undertake the necessary development and commercialization activities, we may not be able to further develop our

product candidates or bring them to market.

We currently rely,

and plan to rely in the future, on third parties to conduct and support our preclinical studies and clinical trials.

If these third parties

do not properly and successfully carry out their contractual duties or meet expected deadlines, we may not be able to obtain regulatory

approval of or commercialize our product candidates.

We have utilized and plan

to continue to utilize and depend upon independent investigators and collaborators, such as institutions, CROs, contract testing labs,

CMOs and strategic partners, to supply, conduct, and support our preclinical studies and clinical trials pursuant to agreements with

We will rely heavily on these third parties over the course of our preclinical studies and clinical trials, and we control only certain

aspects of their activities.

As a result, we will have less direct control over the conduct, timing, and completion of these preclinical

studies and clinical trials and the management of data developed through preclinical studies and clinical trials than would be the case

if we were relying entirely upon our own staff.

Nevertheless, we are responsible for ensuring that each of our studies and trials is

conducted in accordance with the applicable protocol, legal, regulatory, and scientific standards, and our reliance on these third parties

does not relieve us of our regulatory responsibilities.

We and our third-party contractors and CROs are required to comply with GCP regulations,

which are regulations and guidelines enforced by the FDA and comparable foreign regulatory authorities for all of our programs in clinical

If we or any of these third parties fail to comply with applicable GCP regulations, the clinical data generated in our clinical

trials may be deemed unreliable and the FDA or comparable foreign regulatory authorities may require us to perform additional clinical

trials before approving our marketing applications or refuse to approve our marketing applications.

We cannot assure you that upon inspection

by a given regulatory authority, such regulatory authority will determine that any of our clinical trials comply with GCP regulations.

Moreover, our business may be implicated if any of these third parties violate federal or state fraud and abuse or false claims laws

and regulations or healthcare privacy and security laws.

third parties conducting our clinical trials will not be our employees and, except for remedies available to us under our agreements

with such third parties, we cannot control whether they devote sufficient time and resources to our programs.

These third parties may

have relationships with other commercial entities, including our competitors, for whom they may also be conducting clinical trials or

other product development activities, which could negatively affect their performance on our behalf and the timing thereof and could

lead to products that compete directly or indirectly with our product candidates.

If these third parties do not successfully carry out

their contractual duties or obligations or meet expected deadlines, if they need to be replaced or if the quality or accuracy of the

clinical data they obtain is compromised due to the failure to adhere to our clinical protocols or regulatory requirements or for other

reasons, our clinical trials may be extended, delayed or terminated and we may not be able to complete development of, obtain regulatory

approval of or successfully commercialize our product candidates.

currently rely and expect to rely in the future on the use of manufacturing suites in third-party facilities or on third parties to manufacture

our product candidates, and we may rely on third parties to produce and process our products, if approved.

Our business could be adversely

affected if we are unable to use third-party manufacturing suites or if the third-party manufacturers encounter difficulties in production.

do not currently own any facility that may be used as our clinical or commercial manufacturing and processing facility and must currently

rely on CMOs to manufacture our product candidates.

We have not yet caused any product candidates to be manufactured on a commercial

scale and may not be able to do so for any of our product candidates, if approved.

We currently have a sole source relationship for our

supply of the ORKA-001 and ORKA-002 programs.

If there should be any disruption in such supply arrangement, including any adverse

events affecting our sole supplier, it could have a negative effect on the clinical development of our programs and other operations

while we work to identify and qualify an alternate supply source.

We may not control the manufacturing process of, and may be completely

dependent on, our contract manufacturing partners for compliance with cGMP requirements and any other regulatory requirements of the

FDA or comparable foreign regulatory authorities for the manufacture of our product candidates.

Beyond periodic audits, we have limited

control over the ability of our CMOs to maintain adequate quality control, quality assurance and qualified personnel.

If the FDA or a

comparable foreign regulatory authority does not approve these facilities for the manufacture of our product candidates or if it withdraws

any approval in the future, we may need to find alternative manufacturing facilities, which would require the incurrence of significant

additional costs, delays, and materially adversely affect our ability to develop, obtain regulatory approval for or market our product

candidates, if approved.

Similarly, our failure, or the failure of our CMOs, to comply with applicable regulations could result in sanctions

being imposed on us, including fines, injunctions, civil penalties, delays, suspension or withdrawal of approvals, license revocation,

seizures or recalls of product candidates or drugs, operating restrictions and criminal prosecutions, any of which could significantly

and adversely affect supplies of our product candidates or drugs and harm our business and results of operations.

our CMOs may experience manufacturing difficulties due to resource constraints, supply chain issues, proposed or actual legislative changes

or requirements, or as a result of labor disputes or unstable political environments.

If any CMOs on which we will rely fail to manufacture

quantities of our product candidates at quality levels necessary to meet regulatory requirements and at a scale sufficient to meet anticipated

demand at a cost that allows us to achieve profitability, our business, financial condition and prospects could be materially and adversely

Although we have remedies available to us under our agreements, any

third parties conducting our preclinical studies or clinical trials will not be our employees and we cannot control whether they devote

sufficient time and resources to our programs.

These third parties may have relationships with other commercial entities, including our

competitors, for whom they may also be conducting clinical trials or other product development activities, which could negatively affect

their performance on our behalf and the timing thereof and could lead to products that compete directly or indirectly with our product

If these third parties do not successfully carry out their contractual duties or obligations or meet expected deadlines, if

they need to be replaced or if the quality or accuracy of the clinical data they obtain is compromised due to the failure to adhere to

our clinical protocols or regulatory requirements or for other reasons, our clinical trials may be extended, delayed or terminated and

we may not be able to complete development of, obtain regulatory approval of or successfully commercialize our product candidates.

We rely on the use

of manufacturing suites in third-party facilities or on third parties to manufacture our product candidates, and we may rely on third

parties to produce and process our products, if approved.

Our business could be adversely affected if we are unable to use third-party

manufacturing suites or if the third-party manufacturers encounter difficulties in production.

We do not currently own any

facility that may be used as our clinical or commercial manufacturing and processing facility and must currently rely on CMOs to manufacture

our product candidates.

We have not yet caused any product candidates to be manufactured on a commercial scale and may not be able to

do so for any of our product candidates, if approved.

We currently have a sole source relationship for our supply of the ORKA-001 and

ORKA-002 programs.

If there should be any disruption in such supply arrangement, including any adverse events affecting our sole

supplier, it could have a negative effect on the clinical development of our programs and other operations while we work to identify and

qualify an alternate supply source.

We do not control the manufacturing process of, and are completely dependent on, our contract manufacturing

partners for compliance with cGMP requirements and any other regulatory requirements of the FDA or comparable foreign regulatory authorities

for the manufacture of our product candidates.

Beyond periodic audits, we have limited control over the ability of our CMOs to maintain

adequate quality control, quality assurance and qualified personnel.

If the FDA or a comparable foreign regulatory authority does not

approve these facilities for the manufacture of our product candidates or if it withdraws any approval in the future, we may need to find

alternative manufacturing facilities, which would require the incurrence of significant additional costs, delays, and materially adversely

affect our ability to develop, obtain regulatory approval for or market our product candidates, if approved.

Similarly, our failure, or

the failure of our CMOs, to comply with applicable regulations could result in sanctions being imposed on us, including fines, injunctions,

civil penalties, delays, suspension or withdrawal of approvals, license revocation, seizures or recalls of product candidates or drugs,

operating restrictions and criminal prosecutions, any of which could significantly and adversely affect supplies of our product candidates

or drugs and harm our business and results of operations.

Moreover, our CMOs may experience

manufacturing difficulties due to resource constraints, supply chain issues, proposed or actual legislative changes or requirements, or

as a result of labor disputes or unstable political environments.

If any CMOs on which we will rely fail to manufacture quantities of

our product candidates at quality levels necessary to meet regulatory requirements and at a scale sufficient to meet anticipated demand

at a cost that allows us to achieve profitability, our business, financial condition, and prospects could be materially and adversely

In addition, our CMOs are responsible for transporting temperature-controlled materials that can be inadvertently

3 unchanged sentences

or export of products.

Our business could be materially adversely affected by business disruptions to our third-party providers

that could materially adversely affect our anticipated timelines, potential future revenue and financial condition and increase our costs

Our business could be materially adversely affected by business disruptions to our third-party providers that

could materially adversely affect our anticipated timelines, potential future revenue and financial condition, and increase our costs

and expenses.

2 unchanged sentences

CMOs may be subject to U.S.

legislation, including the proposed BIOSECURE bill, trade restrictions and other foreign regulatory

requirements, which could increase the cost or reduce the supply of material available to us, delay the procurement or supply of such

material or have an adverse effect on our ability to secure significant commitments from governments to purchase our potential therapies.

legislation, including the BIOSECURE Act, trade restrictions, and other foreign regulatory requirements,

which could increase costs, reduce the availability of materials, delay procurement or supply, or otherwise adversely affect our operations.

We currently rely on foreign CROs and CMOs, including WuXi Biologics (Hong Kong) Limited and its affiliates (“WuXi Biologics”),

and will likely continue to rely on foreign CROs and CMOs in the future.

WuXi Biologics is identified in the U.S.

legislation known as

the BIOSECURE Act, which was proposed in the 118 th Congress, as a “biotechnology company of concern.” The version

of the BIOSECURE Act introduced in the U.S.

House of Representatives during the 118 th Congress would prohibit federal agencies

from entering into procurement contracts with, as well as providing grants and loans to, an entity that uses biotechnology equipment

or services from a biotechnology company of concern, and includes a grandfathering provision allowing biotechnology equipment and services

provided or produced by named “biotechnology companies of concern” under a contract or agreement entered into before the

effective date until January 1, 2032.

The pathway and timing for the BIOSECURE Act or its provisions to become law are uncertain.

on whether the BIOSECURE Act becomes law, what the final language of the BIOSECURE Act includes, and how the law is interpreted by U.S.

federal agencies, we could be potentially restricted from pursuing U.S.

federal government business or grants in the future if we continue

to use WuXi or other parties identified as “biotechnology companies of concern” beyond the grandfathering period.

our operations and financial condition may be negatively impacted as a result of any delays or increased costs arising from the trade

restrictions and other foreign regulatory requirements affecting such collaborators.

In addition, while we have established relationships

with CROs and CMOs outside of China, moving to those suppliers in the event of geopolitical instability affecting our collaborators in

China could introduce delays into the development program.

Related to Employee Matters, Managing Growth and Other Risks Related to Our Business

order to successfully implement our plans and strategies, we will need to grow the size of our organization and we may experience difficulties

in managing this growth.

expect to experience significant growth in the number of our employees and the scope of our operations, particularly in the areas of

preclinical and clinical drug development, technical operations, clinical operations, regulatory affairs and, potentially, sales and

To manage our anticipated future growth, we must continue to implement and improve our managerial, operational and financial

personnel and systems, expand our facilities and continue to recruit and train additional qualified personnel.

Due to our limited financial

resources and the limited experience of our management team working together in managing a company with such anticipated growth, we may

not be able to effectively manage the expansion of our operations or recruit and train additional qualified personnel.

are highly dependent on our key personnel and anticipate hiring new key personnel.

If we are not successful in attracting and retaining

highly qualified personnel, we may not be able to successfully implement our business strategy.

ability to pursue our growth strategy will be limited if we are unable to continue to attract and retain high quality personnel.

been and will continue to be highly dependent on the research and development, clinical and business development expertise of our executive

officers, as well as the other principal members of our management, scientific and clinical team.

Any of our management team members

may terminate their employment with us at any time.

We do not maintain “key person” insurance for any of our executives or

other employees.

and retaining qualified personnel will also be critical to our success, including with respect to any strategic transaction that we may

The loss of our executive officers or other key employees could impede the achievement of our research, development and commercialization

and we expect to continue to rely on foreign CROs and CMOs in the future.

The BIOSECURE Act was enacted

law in December 2025 and restricts U.S.

federal agencies, as well as recipients of certain federal funding, from procuring,

using, or contracting for biotechnology equipment or services from entities designated as “biotechnology companies of concern”.

The law contemplates a designation process to identify such biotechnology companies of concern, and the timing, scope, and implementation

of the Act, including the criteria for designation and the application of any transition or grandfathering provisions, remain subject

to ongoing rulemaking and agency interpretation.

Biologics has been identified in prior legislative proposals and public discourse as a potential biotechnology company of concern;

it has not been automatically designated as such under the enacted statute.

If WuXi Biologics or other third-party providers we rely

on were to be designated as biotechnology companies of concern in the future, or if the BIOSECURE Act were otherwise interpreted or implemented

in a manner that restricts our ability to use their services, we could be required to transition to alternative providers, experience

supply disruptions or increased costs, or be limited in our ability to access U.S.

federal government contracts, grants, or other funding

opportunities, which could materially adversely affect our business, financial condition, or results of operations.

Furthermore, our operations

and financial condition may be negatively impacted as a result of any delays or increased costs arising from the trade restrictions and

other foreign regulatory requirements affecting such collaborators.

In addition, while we have established relationships with CROs and

CMOs outside of China, moving to those suppliers in the event of geopolitical instability affecting our collaborators in China could introduce

delays into the development program.

For example, in April 2025, the United States government imposed significant tariffs on imports from

China and other countries and may impose more restrictions on goods, including biologically derived substances, manufactured in or imported

from China or other countries, or impose other restrictions on companies’ ability to work with Chinese or other foreign counterparties.

To the extent these or future tariffs are applicable to the material we import from China and other countries or if we are not able to

secure supply of our product candidates as a result of applicable legislation, our business and financial condition could be adversely

Risks Related to Employee

Matters, Managing Growth and Other Risks Related to Our Business

In order to successfully

implement our plans and strategies, we will need to grow the size of our organization and we may experience difficulties in managing this

We expect to grow the size of our organization, including an increase

in the number of our employees and the scope of our operations, particularly in the areas of preclinical and clinical drug development,

technical operations, clinical operations, regulatory affairs and, potentially, sales and marketing.

To manage our anticipated future

growth, we must continue to implement and improve our managerial, operational and financial personnel and systems, expand our facilities,

and continue to recruit and train additional qualified personnel.

Due to our limited financial resources and the limited experience of

our management team working together in managing a company with such anticipated growth, we may not be able to effectively manage the

expansion of our operations or recruit and train additional qualified personnel.

We are highly dependent

on our key personnel and anticipate hiring new key personnel.

If we are not successful in attracting and retaining highly qualified personnel,

we may not be able to successfully implement our business strategy.

Our ability to pursue our

growth strategy will be limited if we are unable to continue to attract and retain high quality personnel.

We have been and will continue

to be highly dependent on the research and development, clinical, and business development expertise of our executive officers, as well

as the other principal members of our management, scientific, and clinical team.

Any of our management team members may terminate their

employment with us at any time.

We do not maintain “key person” insurance for any of our executives or other employees.

Attracting and retaining

qualified personnel will also be critical to our success, including with respect to any strategic transaction that we may pursue.

loss of our executive officers or other key employees could impede the achievement of our research, development, and commercialization

objectives and seriously harm our ability to successfully implement our business strategy.

Furthermore, replacing executive officers

and key employees may be difficult and may take an extended period of time because of the limited number of individuals in our industry

with the breadth of skills and experience required to successfully develop, facilitate regulatory approval of and commercialize product

Competition to hire from this limited pool is intense, and we may be unable to hire, train, retain or motivate these key

personnel on acceptable terms given the competition among numerous pharmaceutical and biotechnology companies for similar personnel,

as well as from universities and research institutions.

addition, we rely on consultants and advisors to assist us in formulating our discovery and nonclinical and clinical development and

commercialization strategy.

Our consultants and advisors may be employed by employers other than us and may have commitments under consulting

or advisory contracts with other entities that may limit their availability to us.

future growth may depend, in part, on our ability to operate in foreign markets, where we would be subject to additional regulatory burdens

and other risks and uncertainties.

future growth may depend, in part, on our ability to develop and commercialize our product candidates in foreign markets for which we

may rely on collaboration with third parties.

If we fail to comply with the regulatory requirements in foreign markets and receive applicable

marketing approvals, our target market will be reduced and our ability to realize the full market potential of our product candidates

will be harmed and our business will be adversely affected.

Moreover, even if we obtain approval of our product candidates and ultimately

commercialize our product candidates in foreign markets, we would be subject to the risks and uncertainties, including the burden of

complying with complex and changing foreign regulatory, tax, accounting and legal requirements and reduced protection of intellectual

property rights in some foreign countries.

estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the markets in which we compete

achieve the forecasted growth, our business may not grow at similar rates, or at all.

market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that

may not prove to be accurate.

Even if the markets in which we compete meet our size estimates and growth forecasts, our business may

not grow at similar rates, or at all.

revenue will be dependent, in part, upon the size of the markets in the territories for which we gain regulatory approval, the accepted

price for the product, the ability to obtain coverage and reimbursement and whether we own the commercial rights for that territory.

If the number of our addressable patients is not as significant as we estimate, the indication approved by regulatory authorities is

narrower than we expect or the treatment population is narrowed by competition, physician choice or treatment guidelines, we may not

generate significant revenue from sales of such products, even if approved.

employees, independent contractors, consultants, commercial collaborators, principal investigators, CROs, CMOs, suppliers and vendors

may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.

are exposed to the risk that our employees, independent contractors, consultants, commercial collaborators, principal investigators,

CROs, CMOs, suppliers and vendors acting for or on our behalf may engage in misconduct or other improper activities.

We have adopted

a code of conduct and ethics, but it is not always possible to identify and deter misconduct by these parties and the precautions we

take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us

from governmental investigations or other actions or lawsuits stemming from a failure to comply with these laws or regulations.

internal information technology systems, or those of any of our third-party service providers, or potential future collaborators, may

fail or suffer security or data privacy breaches or other unauthorized or improper access to, use of, or destruction of our proprietary

or confidential data, employee data or personal data, which could result in additional costs, loss of revenue, significant liabilities,

harm to our brand and material disruption of our operations.

the ordinary course of our business, we and the third parties upon which we rely collect, receive, store, process, generate, use, transfer,

disclose, make accessible, protect, secure, dispose of, transmit, and share (collectively, process) proprietary, confidential, and sensitive

data, including personal data, intellectual property, trade secrets, and other sensitive data (collectively, sensitive information).

If we (or a third party upon whom we rely) experience a security incident or are perceived to have experienced a security incident, we

may experience adverse consequences.

While we have implemented security measures designed to protect against security incidents, there

can be no assurance that these measures will be effective.

Further, cybersecurity breaches or other cybersecurity incidents may allow

hackers access to our preclinical compounds, strategies, discoveries, trade secrets, and/or other confidential information.

Additionally,

sensitive data could be leaked, disclosed, or revealed as a result of or in connection with our employees’, personnel’s,

vendors’ or partners’ use of generative AI technologies.

Our ability to monitor third parties’ information security

practices is limited, and these third parties may not have adequate security measures in place.

We may be unable in the future to detect

vulnerabilities in our information technology systems because such threats and techniques change frequently, are often sophisticated

in nature, and may not be detected until after a security incident has occurred.

Further, we may experience delays in developing and

deploying remedial measures designed to address any such identified vulnerabilities.

Applicable data privacy and security obligations

may require us to notify relevant stakeholders of security incidents.

Such disclosures are costly, and the disclosure or the failure

to comply with such requirements could lead to adverse consequences.

Moreover, while we may be entitled to damages if our third-party

service providers fail to satisfy their privacy or security-related obligations to us, any award may be insufficient or we may be unable

to recover such award.

Security incidents and attendant consequences may negatively impact our ability to grow and operate our business.

The risk of a cybersecurity incident or other informational technology disruption, particularly through cyber-attacks, has generally

increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased.

the extent that any disruption or security breach were to result in loss, destruction, unavailability, alteration or dissemination of,

or damage to, our data (including clinical trial data) or applications, or for it to be believed or reported that any of these occurred,

we could incur liability, including under laws and regulations governing the protection of protected health information and other personal

data, and reputational damage and the development and commercialization of our product candidates could be delayed.

Further, our insurance

policies may not be adequate to compensate us for the potential losses arising from any such disruption in, or failure or security breach

of, our systems or third-party systems where information important to our business operations or commercial development is stored.

the implementation of security measures in an effort to protect systems that store our information, given their size and complexity and

the increasing amounts of information maintained on our internal information technology systems and those of our third-party CROs,

contractors (including sites performing our clinical trials), third-party service providers and supply chain companies, and consultants,

these systems are potentially vulnerable to breakdown or other damage or interruption from service interruptions, system malfunction,

natural disasters, terrorism, war and telecommunication and electrical failures, as well as security breaches from inadvertent or intentional

actions or from cyber-attacks by malicious third parties, or ransomware attacks, which, in each case, may compromise our system

infrastructure or lead to the loss, destruction, alteration or dissemination of, or damage to, our data.

hybrid-remote workforce may create additional risks for our information technology systems and data because our employees work remotely

and utilize network connections, computers, and devices working at home, while in transit and in public locations.

contracts may not contain limitations of liability, and even where they do, there can be no assurance that limitations of liability in

our contracts are sufficient to protect us from liabilities, damages, or claims related to our data privacy and security obligations.

We cannot be sure that our insurance coverage will be adequate or sufficient to protect us from or to mitigate liabilities arising out

of our privacy and security practices, that such coverage will continue to be available on commercially reasonable terms or at all, or

that such coverage will pay future claims.

are subject to stringent and changing laws, regulations and standards, and contractual obligations relating to privacy, data protection,

and data security.

The actual or perceived failure to comply with such obligations could lead to government enforcement actions (which

could include civil or criminal penalties), fines and sanctions, private litigation and/or adverse publicity and could negatively affect

our operating results and business.

and third parties who we work with are or may become subject to numerous domestic and foreign laws, regulations, and standards relating

to privacy, data protection, data transfer, and data security, the scope of which is changing, subject to differing applications and

interpretations, and may be inconsistent among countries, or conflict with other rules.

We are or may become subject to the terms of

contractual obligations related to privacy, data protection and data security.

Our obligations may also change or expand as our business

The actual or perceived failure by us or third parties related to us to comply with such laws, regulations and obligations could

increase our compliance and operational costs, expose us to regulatory scrutiny, actions, fines and penalties, result in reputational

harm, lead to a loss of customers, result in litigation and liability, and otherwise cause a material adverse effect on our business,

financial condition, and results of operations.

we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur

costs that could have a material adverse effect on the success of our business.

are subject to numerous environmental, health and safety laws and regulations, including those governing laboratory procedures and the

handling, use, storage, treatment and disposal of hazardous materials and wastes.

Our operations may involve the use of hazardous and

flammable materials, including chemicals and biological and radioactive materials.

In addition, we may incur substantial costs in order

to comply with current or future environmental, health and safety laws and regulations.

These current or future laws and regulations

may impair our research, development or commercialization efforts.

Failure to comply with these laws and regulations also may result

in substantial fines, penalties or other sanctions.

may be subject to adverse legislative or regulatory tax changes that could negatively impact our financial condition.

rules dealing with U.S.

federal, state and local income taxation are constantly under review by persons involved in the legislative

process and by the Internal Revenue Service and the U.S.

Furthermore, replacing executive officers and

key employees may be difficult and may take an extended period of time because of the limited number of individuals in our industry with

the breadth of skills and experience required to successfully develop, facilitate regulatory approval of, and commercialize product candidates.

Competition to hire from this limited pool is intense, and we may be unable to hire, train, retain, or motivate these key personnel on

acceptable terms given the competition among numerous pharmaceutical and biotechnology companies for similar personnel, as well as from

universities and research institutions.

In addition, we rely on consultants

and advisors to assist us in formulating our discovery and nonclinical and clinical development and commercialization strategy.

Our consultants

and advisors may be employed by employers other than us and may have commitments under consulting or advisory contracts with other entities

that may limit their availability to us.

We may be subject to

claims that we have wrongfully hired an employee from a competitor or that our employees, consultants or independent contractors have

wrongfully used or disclosed confidential information of third parties.

As is common in the biopharmaceutical industry, in addition to our

employees, we engage the services of consultants and independent contractors to assist us in the development of our programs.

these consultants, independent contractors, and our employees, may have been previously employed at, or may have previously provided or

may be currently providing consulting services to, other biotechnology or pharmaceutical companies including our competitors or potential

Although we try to ensure that our employees, consultants, and independent contractors do not use the intellectual property,

proprietary information, know-how, or trade secrets of others in their work for us, we may become subject to claims that we caused an

individual to breach the terms of his or her non-competition or non-solicitation agreement, or that we or these individuals have, inadvertently

or otherwise, used or disclosed the alleged trade secrets or other proprietary information of a former employer or competitor.

While we may litigate to defend ourselves against these claims, even

if we are successful, litigation could result in substantial costs and could be a distraction to management.

If our defenses to these

claims fail, in addition to requiring us to pay monetary damages, a court could prohibit us from using technologies or features that are

essential to our programs, if such technologies or features are found to incorporate or be derived from the trade secrets or other proprietary

information of the former employers.

Moreover, any such litigation or the threat thereof may adversely affect our reputation or our ability

to form strategic alliances or sublicense our rights to collaborators, engage with scientific advisors or hire employees, consultants

or independent contractors, each of which would have an adverse effect on our business, results of operations, and financial condition.

Our future growth may

depend, in part, on our ability to operate in foreign markets, where we would be subject to additional regulatory burdens and other risks

and uncertainties.

Our future growth may depend,

in part, on our ability to develop and commercialize our product candidates in foreign markets for which we may rely on collaboration

with third parties.

If we fail to comply with the regulatory requirements in foreign markets and receive applicable marketing approvals,

our target market will be reduced and our ability to realize the full market potential of our product candidates will be harmed and our

business will be adversely affected.

Moreover, even if we obtain approval of our product candidates and ultimately commercialize our product

candidates in foreign markets, we would be subject to the risks and uncertainties, including the burden of complying with complex and

changing foreign regulatory, tax, accounting and legal requirements, and reduced protection of intellectual property rights in some foreign

Our employees, independent

contractors, consultants, advisors, commercial collaborators, principal investigators, CROs, CMOs, suppliers, and vendors may engage in

misconduct or other improper activities, including noncompliance with regulatory standards and requirements.

We are exposed to the risk

that our employees, independent contractors, consultants, advisors, commercial collaborators, principal investigators, CROs, CMOs, suppliers,

and vendors acting for or on our behalf may engage in misconduct or other improper activities.

We have adopted a code of conduct and ethics,

but it is not always possible to identify and deter misconduct by these parties and the precautions we take to detect and prevent this

activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations

or other actions or lawsuits stemming from a failure to comply with these laws or regulations.

Our internal information

technology systems, or those of any of our third-party service providers, or potential future collaborators, may fail or suffer security

or data privacy breaches or other unauthorized or improper access to, use of, or destruction of our proprietary or confidential data,

employee data or personal data, which could result in additional costs, loss of revenue, significant liabilities, harm to our brand and

material disruption of our operations.

In the ordinary course of

our business, we and the third parties upon which we rely collect, receive, store, process, generate, use, transfer, disclose, make accessible,

protect, secure, dispose of, transmit, and share (collectively, process) proprietary, confidential, and sensitive data, including personal

data, intellectual property, trade secrets, and other sensitive data (collectively, sensitive information).

If we (or a third party upon

whom we rely) experience a security incident or are perceived to have experienced a security incident, we may experience adverse consequences.

While we have implemented security measures designed to protect against security incidents, there can be no assurance that these measures

will be effective.

Further, cybersecurity breaches or other cybersecurity incidents may allow hackers access to our preclinical compounds,

strategies, discoveries, trade secrets, and/or other confidential information.

Additionally, sensitive data could be leaked, disclosed,

or revealed as a result of or in connection with our employees’, personnel’s, vendors’ or partners’ use of generative

AI technologies.

Our ability to monitor third parties’ information security practices is limited, and these third parties may not

have adequate security measures in place.

We may be unable in the future to detect vulnerabilities in our information technology systems

because such threats and techniques change frequently, are often sophisticated in nature, and may not be detected until after a security

incident has occurred.

Further, we may experience delays in developing and deploying remedial measures designed to address any such identified

vulnerabilities.

Applicable data privacy and security obligations may require us to notify relevant stakeholders of security incidents.

Such disclosures are costly, and the disclosure or the failure to comply with such requirements could lead to adverse consequences.

while we may be entitled to damages if our third-party service providers fail to satisfy their privacy or security-related obligations

to us, any award may be insufficient or we may be unable to recover such award.

Security incidents and attendant consequences may negatively

impact our ability to grow and operate our business.

The risk of a cybersecurity incident or other information technology disruption,

particularly through cyber-attacks, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions

from around the world have increased.

To the extent that any disruption

or security breach were to result in loss, destruction, unavailability, alteration or dissemination of, or damage to, our data (including

clinical trial data) or applications, or for it to be believed or reported that any of these occurred, we could incur liability, including

under laws and regulations governing the protection of protected health information and other personal data, and reputational damage and

the development and commercialization of our product candidates could be delayed.

Further, our insurance policies may not be adequate

to compensate us for the potential losses arising from any such disruption in, or failure or security breach of, our systems or third-party systems

where information important to our business operations or commercial development is stored.

Despite the implementation

of security measures in an effort to protect systems that store our information, given their size and complexity and the increasing amounts

of information maintained on our internal information technology systems and those of our third-party CROs, contractors, sites performing

our clinical trials, third-party service providers and supply chain companies, and consultants, these systems are potentially vulnerable

to breakdown or other damage or interruption from service interruptions, system malfunction, natural disasters, terrorism, war and telecommunication

and electrical failures, as well as security breaches from inadvertent or intentional actions or from cyber-attacks by malicious

third parties, or ransomware attacks, which, in each case, may compromise our system infrastructure or lead to the loss, destruction,

alteration or dissemination of, or damage to, our data.

Our hybrid-remote workforce

may create additional risks for our information technology systems and data because our employees work remotely and utilize network connections,

computers, and devices working at home, while in transit and in public locations.

Our contracts may not contain

limitations of liability, and even where they do, there can be no assurance that limitations of liability in our contracts are sufficient

to protect us from liabilities, damages, or claims related to our data privacy and security obligations.

We cannot be sure that our insurance

coverage will be adequate or sufficient to protect us from or to mitigate liabilities arising out of our privacy and security practices,

that such coverage will continue to be available on commercially reasonable terms or at all, or that such coverage will pay future claims.

We are subject to stringent

and changing laws, regulations and standards, and contractual obligations relating to privacy, data protection, and data security.

actual or perceived failure to comply with such obligations could lead to government enforcement actions (which could include civil or

criminal penalties), fines and sanctions, private litigation and/or adverse publicity and could negatively affect our operating results

and business.

We and third parties who

we work with are or may become subject to numerous domestic and foreign laws, regulations, and standards relating to privacy, data protection,

data transfer, and data security, the scope of which is changing, subject to differing applications and interpretations, and may be inconsistent

among countries, or conflict with other rules.

We are or may become subject to the terms of contractual obligations related to privacy,

data protection and data security.

Our obligations may also change or expand as our business grows.

The actual or perceived failure by

us or third parties related to us to comply with such laws, regulations and obligations could increase our compliance and operational

costs, expose us to regulatory scrutiny, actions, fines and penalties, result in reputational harm, lead to a loss of customers, result

in litigation and liability, and otherwise cause a material adverse effect on our business, financial condition, and results of operations.

If we fail to comply

with environmental, health, and safety laws and regulations, we could become subject to fines or penalties or incur costs that could have

a material adverse effect on the success of our business.

We are subject to numerous

environmental, health, and safety laws and regulations, including those governing laboratory procedures and the handling, use, storage,

treatment, and disposal of hazardous materials and wastes.

Our operations may involve the use of hazardous and flammable materials, including

chemicals and biological and radioactive materials.

In addition, we may incur substantial costs in order to comply with current or future

environmental, health, and safety laws and regulations.

These current or future laws and regulations may impair our research, development,

or commercialization efforts.

Failure to comply with these laws and regulations also may result in substantial fines, penalties, or other

We may be subject to

legislative or regulatory tax changes that could negatively impact our financial condition.

The rules dealing with U.S.

state, and local income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue

Service and the U.S.

Treasury Department.

Changes to tax laws (which may have retroactive application)

could adversely affect our stockholders or us.

We continue to assess the impact of various tax reform proposals and modifications to

existing tax treaties in all jurisdictions where we have operations or employees to determine the potential effect on our business and

any assumptions we make about our future taxable income.

We cannot predict whether any specific proposals will be enacted, the terms

of any such proposals or what effect, if any, such proposals would have on our business if they were to be enacted.

For example, the

United States enacted the IRA, which implements, among other changes, a 1% excise tax on certain stock buybacks.

In addition, beginning

in 2022, the Tax Cuts and Jobs Act eliminated the previously available option to deduct research and development expenditures

and requires taxpayers to amortize them generally over five years for research activities conducted in the United States and

over 15 years for research activities conducted outside the United States.

Such changes, among others, may adversely affect

our effective tax rate, results of operation and general business condition.

may acquire businesses or products, or form strategic alliances, in the future, and may not realize the benefits of such acquisitions.

may acquire additional businesses or products, form strategic alliances, or create joint ventures with third parties that we believe

will complement or augment our existing business.

If we acquire businesses with promising markets or technologies, we may not be able

to realize the benefit of acquiring such businesses if we are unable to successfully integrate them with our existing operations and

company culture.

We may encounter numerous difficulties in developing, manufacturing and marketing any new product candidates or products

resulting from a strategic alliance or acquisition that delay or prevent us from realizing their expected benefits or enhancing our business.

There is no assurance that, following any such acquisition, we will achieve the synergies expected in order to justify the transaction,

which could result in a material adverse effect on our business and prospects.

maintain our cash at financial institutions, often in balances that exceed federally-insured limits.

The failure of financial institutions

could adversely affect our ability to pay our operational expenses or make other payments.

cash held in non-interest-bearing and interest-bearing accounts exceeds the Federal Deposit Insurance Corporation insurance

If such banking institutions were to fail, we could lose all or a portion of those amounts held in excess of such insurance limitations.

In addition, even if account holders are ultimately made whole with respect to a future bank failure, account holders’ access to

their accounts and assets held in their accounts may be substantially delayed.

Any material loss that we may experience in the future

or inability for a material time period to access our cash and cash equivalents could have an adverse effect on our ability to pay our

operational expenses or make other payments, which could adversely affect our business.

estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and

even if the markets in which we compete achieve the forecasted growth, our business may not grow at similar rates,

market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that

may not prove to be accurate.

Even if the markets in which we compete meet our size estimates and growth forecasts, our business may

not grow at similar rates, or at all.

Our growth is subject to many factors, including our success in implementing our business strategy,

which is subject to many risks and uncertainties.

revenue will be dependent, in part, upon the size of the markets in the territories for which we gain regulatory approval, the accepted

price for the product, the ability to obtain coverage and reimbursement and whether we own the commercial rights for that territory.

If the number of our addressable patients is not as significant as we estimate, the indication approved by regulatory authorities is

narrower than we expect or the treatment population is narrowed by competition, physician choice or treatment guidelines, we may not

generate significant revenue from sales of such products, even if approved.

may become exposed to costly and damaging liability claims, either when testing a product candidate in the clinical or at the commercial

stage, and our insurance may not cover all damages from such claims.

are exposed to potential product liability and professional indemnity risks that are inherent in the research, development, manufacturing,

marketing, and use of pharmaceutical products.

The use of a product candidate in clinical trials and the sale of any approved products

in the future may expose us to liability claims.

An individual or group of individuals may bring a liability claim against us if one

of our product candidates causes, or merely appears to have caused, an injury.

Any claims against us, regardless of their merit, could

be difficult and costly to defend and could materially and adversely affect our business.

While we carry product liability insurance

for our clinical trials, it is possible that any liabilities could exceed our insurance coverage or that in the future we may not be

able to maintain insurance coverage at a reasonable cost or obtain insurance coverage that will be adequate to satisfy any liability

Changes to tax laws (which may have retroactive application) could adversely affect our

stockholders or us.

We continue to assess the impact of various tax reform proposals and modifications to existing tax treaties in all

jurisdictions where we have operations or employees to determine the potential effect on our business and any assumptions we make about

our future taxable income.

We cannot predict whether any specific proposals will be enacted, the terms of any such proposals or what effect,

if any, such proposals would have on our business if they were to be enacted.

For example, the United States enacted the IRA, which

implements, among other changes, a 1% excise tax on certain stock buybacks.

In addition, beginning in 2022, the Tax Cuts and Jobs

Act eliminated the previously available option to deduct research and development expenditures and requires taxpayers to amortize

them generally over five years for research activities conducted in the United States and over 15 years for research activities

conducted outside the United States.

Such changes, among others, may adversely affect our effective tax rate, results of operation

and general business condition.

We may acquire businesses

or products, or form strategic alliances, in the future, and may not realize the benefits of such acquisitions.

We may acquire additional

businesses or products, form strategic alliances, or create joint ventures with third parties that we believe will complement or augment

our existing business.

If we acquire businesses with promising markets or technologies, we may not be able to realize the benefit of acquiring

such businesses if we are unable to successfully integrate them with our existing operations and company culture.

We may encounter numerous

difficulties in developing, manufacturing, and marketing any new product candidates or products resulting from a strategic alliance or

acquisition that delay or prevent us from realizing their expected benefits or enhancing our business.

There is no assurance that, following

any such acquisition, we will achieve the synergies expected in order to justify the transaction, which could result in a material adverse

effect on our business and prospects.

We maintain our cash

at financial institutions, often in balances that exceed federally-insured limits.

The failure of financial institutions could adversely

affect our ability to pay our operational expenses or make other payments.

Our cash held in non-interest-bearing and

interest-bearing accounts exceeds the Federal Deposit Insurance Corporation insurance limits.

If such banking institutions were to

fail, we could lose all or a portion of those amounts held in excess of such insurance limitations.

In addition, even if account holders

are ultimately made whole with respect to a future bank failure, account holders’ access to their accounts and assets held in their

accounts may be substantially delayed.

Any material loss that we may experience in the future or inability for a material time period

to access our cash and cash equivalents could have an adverse effect on our ability to pay our operational expenses or make other payments,

which could adversely affect our business.

General Risk Factors

Our estimates of

market opportunity and forecasts of market growth may prove to be inaccurate, and even if the markets in

which we compete achieve the forecasted growth, our business may not grow at similar rates, or at all.

Our market opportunity estimates

and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate.

Even if the markets in which we compete meet our size estimates and growth forecasts, our business may not grow at similar rates, or at

Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to many risks

and uncertainties.

Our revenue will be dependent,

in part, upon the size of the markets in the territories for which we gain regulatory approval, the accepted price for the product, the

ability to obtain coverage and reimbursement, and whether we own the commercial rights for that territory.

If the number of our addressable

patients is not as significant as we estimate, the indication approved by regulatory authorities is narrower than we expect or the treatment

population is narrowed by competition, physician choice or treatment guidelines, we may not generate significant revenue from sales of

such products, even if approved.

We may become exposed

to costly and damaging product liability claims and our insurance may not cover all damages from such claims.

We are exposed to potential

product liability and professional indemnity risks that are inherent in the research, development, manufacturing, marketing, and use of

pharmaceutical products.

The use of a product candidate in clinical trials and the sale of any approved products in the future may expose

us to liability claims.

An individual or group of individuals may bring a liability claim against us if one of our product candidates

causes, or merely appears to have caused, an injury, either at the clinical or commercial stage.

Any claims against us, regardless of

their merit, could be difficult and costly to defend and could materially and adversely affect our business.

While we carry product liability

insurance for our clinical trials, it is possible that any liabilities could exceed our insurance coverage or that in the future we may

not be able to maintain insurance coverage at a reasonable cost or obtain insurance coverage that will be adequate to satisfy any liability

that may arise.

1 unchanged sentence

A successful product liability

claim or series of claims brought against us could cause our stock price to decline and, if judgments exceed our insurance coverage,

could decrease our cash and our business operations could be impaired.

costs and the outcome of litigation could have a material adverse effect on our business.

time to time we may be subject to litigation claims through the ordinary course of our business operations

regarding, but not limited to, employment matters, security of patient and employee personal information, contractual relations with

collaborators and intellectual property rights.

Litigation to defend ourselves against claims by third parties, or to enforce any rights

that we may have against third parties, may continue to be necessary, which could result in substantial costs and diversion of our resources,

causing a material adverse effect on our business, financial condition, results of operations or cash flows.

business could be adversely affected by economic downturns, inflation, fluctuation in interest rates, natural disasters, public health

crises, political crises, geopolitical events or other macroeconomic conditions, which could have a material and adverse effect on our

results of operations and financial condition.

global economy, including credit and financial markets, has experienced and may experience in the future extreme volatility and disruptions,

including, among other things, diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth,

supply chain shortages, new or increased tariffs and other barriers to trade, trade and other international disputes, increases in inflation

rates, fluctuation in interest rates, slower growth or recession, tighter credit, volatility in financial markets, high unemployment,

labor availability constraints, public health crises, significant natural disasters, including as a result of climate change, changes

to fiscal and monetary policy or government budget dynamics (particularly in the pharmaceutical and biotech areas), particularly in the

pharmaceutical and biotech areas, political and military conflict, and uncertainty about economic stability.

Fluctuation in interest

rates, coupled with reduced government spending and volatility in financial markets, may increase economic uncertainty and affect consumer

Similarly, the ongoing military conflict between Russia and Ukraine and in the Middle East and rising tensions with China have

created extreme volatility in the global capital markets and may have further global economic consequences, including disruptions of

the global supply chain.

Any such volatility and disruptions may adversely affect our business or the third parties on whom we rely.

If the equity and credit markets deteriorate, including as a result of political unrest or war, it may make any necessary debt or equity

financing more costly, more dilutive, or more difficult to obtain in a timely manner or on favorable terms, if at all.

Increased inflation

rates can adversely affect us by increasing our costs, including materials, operational, labor and employee benefit costs.

may in the future experience disruptions as a result of such macroeconomic conditions, including delays or difficulties in initiating

or expanding clinical trials and manufacturing sufficient quantities of materials.

Any one or a combination of these events could have

a material and adverse effect on our results of operations and financial condition.

events and global economic conditions may also affect the ability of the FDA and other regulatory authorities to perform routine functions.

If such concerns prevent the FDA or other regulatory authorities from conducting their regular inspections, reviews or other regulatory

activities, it could significantly impact the ability of the FDA or other regulatory authorities to timely review and process our regulatory

submissions, which could have a material adverse effect on our business.

Related to Owning Our Stock

market price of our common stock has been, and may continue to be volatile.

market price of our common stock has been and is likely to be highly volatile and is subject to significant fluctuations.

factors that may cause the market price of our common stock to fluctuate include:

and results of clinical trials and preclinical studies of our product candidates, or those

of our competitors or our existing or future collaborators;

to meet or exceed financial and development projections that we may provide to the public;

● announcements

of significant or potential equity or debt sales by us;

taken by regulatory agencies with respect to our product candidates, clinical studies, manufacturing

process or sales and marketing terms;

to meet or exceed the financial and development projections of the investment community or

if securities or industry analysts do not publish research or reports about our business,

or if they issue adverse or misleading opinions regarding our business and stock;

● announcements

of significant acquisitions, strategic collaborations, joint ventures or capital commitments

by us or our competitors;

market, macroeconomic or geopolitical conditions or market conditions in the pharmaceutical

and biotechnology sectors;

or other developments relating to proprietary rights, including patents, litigation matters,

and our ability to obtain patent protection for our technologies;

or departures of key personnel, including scientific or management personnel;

● significant

lawsuits, including patent or stockholder litigation;

in the market valuations of similar companies;

of securities by us or our securityholders in the future;

we fail to raise an adequate amount of capital to fund our operations or continued development

of our product candidates;

volume of our common stock;

● announcements

by competitors of new products, clinical progress or lack thereof, significant contracts,

commercial relationships or capital commitments;

introduction of technological innovations or new therapies that compete with our products;

● period-to-period

fluctuations in our financial results.

the stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of individual

These broad market fluctuations may also adversely affect the trading price of our common stock.

In addition, a recession,

depression or other sustained adverse market event could materially and adversely affect our business and the value of our common stock.

In the past, following periods of volatility in the market price of a company’s securities, stockholders have often instituted

class action securities litigation against such companies.

market volatility may lead to securities litigation or increased stockholder activism if we experience a market valuation that activists

believe is not reflective of our intrinsic value.

Activist campaigns that contest or conflict with our strategic direction or seek changes

in the composition of our board of directors could have an adverse effect on our operating results, financial condition and cash flows.

certificate of incorporation and bylaws, as well as provisions under Delaware law, could make an acquisition of the company more difficult

and may prevent attempts by our stockholders to replace or remove management.

in our certificate of incorporation and bylaws may discourage, delay or prevent a merger, acquisition or other change in control of the

company that stockholders may consider favorable, including transactions in which our common stockholders might otherwise receive a premium

price for their shares.

These provisions could also limit the price that investors might be willing to pay in the future for shares of

our common stock, thereby depressing the market price of our common stock.

In addition, because our board of directors is responsible

for appointing the members of our management team, these provisions may frustrate or prevent any attempts by our stockholders to replace

or remove current management by making it more difficult for stockholders to replace members of our board of directors.

Among other things,

these provisions:

a classified board of directors such that all members of the board are not elected at one

the authorized number of our directors to be changed only by resolution of our board of directors;

the manner in which stockholders can remove directors from the board;

advance notice requirements for nominations for election to the board of directors or for

proposing matters that can be acted on at stockholder meetings;

that stockholder actions must be effected at a duly called stockholder meeting and prohibit

actions by our stockholders by written consent;

who may call a special meeting of stockholders;

our board of directors to issue preferred stock without stockholder approval, which could

be used to institute a “poison pill” that would work to dilute the stock ownership

of a potential hostile acquirer, effectively preventing acquisitions that have not been approved

by our board of directors;

the approval of the holders of at least 66 2/3% of the votes that all stockholders would

be entitled to cast to amend or repeal certain provisions of our charter or bylaws.

because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law (“DGCL”),

claim or series of claims brought against us could cause our stock price to decline and, if judgments exceed our insurance coverage, could

decrease our cash and our business operations could be impaired.

Litigation costs and

the outcome of litigation could have a material adverse effect on our business.

From time to time, we may be subject to litigation claims

through the ordinary course of our business operations regarding, but not limited to, employment matters, security of patient and employee

personal information, contractual relations with collaborators, and intellectual property rights.

Litigation to defend ourselves against

claims by third parties, or to enforce any rights that we may have against third parties, may continue to be necessary, which could result

in substantial costs and diversion of our resources, causing a material adverse effect on our business, financial condition, results of

operations, or cash flows.

Our business could

be adversely affected by economic downturns, inflation, fluctuation in interest rates, natural disasters, public health crises, political

crises, geopolitical events or other macroeconomic conditions, which could have a material and adverse effect on our results of operations

and financial condition.

The global economy, including

credit and financial markets, has experienced and may experience in the future extreme volatility and disruptions, including, among other

things, diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, supply chain shortages,

new or increased tariffs, and other barriers to trade, especially in light of recent executive orders made by the Trump administration,

trade and other international disputes, increases in inflation rates, fluctuation in interest rates, slower growth or recession, tighter

credit, volatility in financial markets, high unemployment, labor availability constraints, public health crises, significant natural

disasters, changes to fiscal and monetary policy, or government budget dynamics (particularly in the pharmaceutical and biotechnology

areas), political and military conflict, and uncertainty about economic stability.

Recently, the U.S.

has announced tariffs on imports

from most countries, including significant tariffs on imports from China.

Historically, tariffs have led to increased trade and political

In response to tariffs, other countries have implemented retaliatory tariffs on U.S.

Political tensions as a result of

trade policies could reduce trade volume, investment, technological exchange, and other economic activities between major international

economies, resulting in a material adverse effect on global economic conditions and the stability of global financial markets.

substantial uncertainty about the duration of existing tariffs and whether additional tariffs may be imposed, modified or suspended.

in interest rates, coupled with reduced government spending and volatility in financial markets, may increase economic uncertainty and

affect consumer spending.

Similarly, the ongoing military conflict between Russia and Ukraine and in the Middle East and rising tensions

with China have created extreme volatility in the global capital markets and may have further global economic consequences, including

disruptions of the global supply chain.

Any such volatility and disruptions may adversely affect our business or the third parties on

whom we rely.

If the equity and credit markets deteriorate, including as a result of economic or political uncertainty, political unrest

or war, it may make any necessary debt or equity financing more costly, more dilutive, or more difficult to obtain in a timely manner

or on favorable terms, if at all.

Increased inflation rates can adversely affect us by increasing our costs, including materials, operational,

labor and employee benefit costs.

We may in the future experience

disruptions as a result of such macroeconomic conditions, including delays or difficulties in initiating or expanding clinical trials

and manufacturing sufficient quantities of materials.

Any one or a combination of these events could have a material and adverse effect

on our results of operations and financial condition.

Geopolitical events and global

economic conditions may also affect the ability of the FDA and other regulatory authorities to perform routine functions.

If such concerns

prevent the FDA or other regulatory authorities from conducting their regular inspections, reviews or other regulatory activities, it

could significantly impact the ability of the FDA or other regulatory authorities to timely review and process our regulatory submissions,

which could have a material adverse effect on our business.

Risks Related to Owning

The market price of

our common stock has been, and may continue to be, volatile.

The market price of our common

stock has been and is likely to be highly volatile and is subject to significant fluctuations.

Moreover, the stock markets in general

have experienced substantial volatility that has often been unrelated to the operating performance of individual companies.

market fluctuations may also adversely affect the trading price of our common stock.

For example, escalating trade tensions, elevated

interest rates, and regulatory uncertainty have caused significant market volatility recently, and particularly in the biotechnology and

biopharmaceutical industries.

In addition, a recession, depression, or other sustained adverse market event could materially and adversely

affect our business and the value of our common stock.

In the past, following periods of volatility in the market price of a company’s

securities, stockholders have often instituted class action securities litigation against such companies.

Furthermore, market volatility

may lead to securities litigation or increased stockholder activism if we experience a market valuation that activists believe is not

reflective of our intrinsic value.

Activist campaigns that contest or conflict with our strategic direction or seek changes in the composition

of our board of directors could have an adverse effect on our operating results, financial condition and cash flows.

Class action securities

litigation, if instituted, could result in substantial costs and diversion of management attention and resources, which could significantly

harm our profitability and reputation.

Some of the factors that

may cause the market price of our common stock to fluctuate include:

Timing and results of clinical trials and preclinical studies of our product candidates, or those of our competitors or our existing or future collaborators;

Failure to meet or exceed financial and development projections that we may provide to the public;

Announcements of significant or potential equity or debt sales by us;

Actions taken by regulatory agencies with respect to our product candidates, clinical studies, manufacturing process, or sales and marketing terms;

Failure to meet or exceed the financial and development projections of the investment community or if securities or industry analysts do not publish research or reports about our business, or if they issue adverse or misleading opinions regarding our business and stock;

General market, macroeconomic, geopolitical conditions, or market conditions in the pharmaceutical and biotechnology sectors;

Announcements of significant acquisitions, strategic collaborations, joint ventures, or capital commitments by us or our competitors;

Disputes or other developments relating to proprietary rights, including patents, litigation matters, and our ability to obtain patent protection for our technologies;

Additions or departures of key personnel, including scientific or management personnel;

Significant lawsuits, including patent or stockholder litigation;

Changes in the market valuations of similar companies;

Sales of securities by us or our securityholders in the future, or the anticipation of such events;

Failure to raise an adequate amount of capital to fund our operations or continued development of

our product candidates;

Trading volume of our common stock;

Announcements by competitors of new products, clinical progress or lack thereof, significant contracts, commercial relationships, or capital commitments;

The introduction of technological innovations or new therapies that compete with our products;

Period-to-period fluctuations in our financial results.

Our certificate of

incorporation and bylaws, as well as provisions under Delaware law, could make an acquisition of the company more difficult and may prevent

attempts by our stockholders to replace or remove management.

Provisions in our certificate

of incorporation and bylaws may discourage, delay, or prevent a merger, acquisition or other change in control of the company that stockholders

may consider favorable, including transactions in which our common stockholders might otherwise receive a premium price for their shares.

These provisions could also limit the price that investors might be willing to pay in the future for shares of our common stock, thereby

depressing the market price of our common stock.

In addition, because our board of directors is responsible for appointing the members

of our management team, these provisions may frustrate or prevent any attempts by our stockholders to replace or remove current management

by making it more difficult for stockholders to replace members of our board of directors.

Among other things, these provisions:

Establish a classified board of directors such that all members of the board are not elected at one time;

Allow the authorized number of our directors to be changed only by resolution of our board of directors;

Limit the manner in which stockholders can remove directors from the board;

Establish advance notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on at stockholder meetings;

Require that stockholder actions must be effected at a duly called stockholder meeting and prohibit actions by our stockholders by written consent;

Limit who may call a special meeting of stockholders;

Authorize our board of directors to issue preferred stock without stockholder approval, which could be used to institute a “poison pill” that would work to dilute the stock ownership of a potential hostile acquirer, effectively preventing acquisitions that have not been approved by our board of directors;

Require the approval of the holders of at least 66 2/3% of the votes that all stockholders would be entitled to cast to amend or repeal certain provisions of our charter or bylaws.

Moreover, because we are

incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law (“DGCL”),

which prohibits stockholders owning more than 15% of our outstanding voting stock from merging or combining with us.

2 unchanged sentences

our board of directors, they would apply even if the offer may be considered beneficial by some stockholders.

governing documents provide that, unless we consent in writing to the selection of an alternative forum, certain designated courts will

be the sole and exclusive forum for certain legal actions between us and our stockholders, which could limit our stockholders’

ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.

governing documents provide that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware

is the sole and exclusive forum for state law claims for (i) any derivative action or proceeding brought on our behalf, (ii) any action

asserting a claim of or based on a breach of a fiduciary duty owed by any of our current or former directors, officers, or other employees

or our stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, the certificate of incorporation

or the bylaws, (iv) any action to interpret, apply, enforce or determine the validity of the certificate of incorporation or bylaws,

or (v) any action asserting a claim that is governed by the internal affairs doctrine, in each case subject to the Court of Chancery

having personal jurisdiction over the indispensable parties named as defendants therein, which for purposes of this risk factor refers

to herein as the “Delaware Forum Provision.” Our governing documents further provide that, unless we consent in writing to

an alternative forum, the federal district courts of the United States will be the exclusive forum for resolving any complaint asserting

a cause of action arising under the Securities Act, which for purposes of this risk factor refers to herein as the “Federal Forum

Provision.” Neither the Delaware Forum Provision nor the Federal Forum Provision will apply to any causes of action arising under

the Exchange Act.

In addition, any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock will

be deemed to have notice of and consented to the foregoing Delaware Forum Provision and Federal Forum Provision;

provided, however, that

stockholders cannot and will not be deemed to have waived our compliance with the U.S.

federal securities laws and the rules and regulations

Our governing documents

provide that, unless we consent in writing to the selection of an alternative forum, certain designated courts will be the sole and exclusive

forum for certain legal actions between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable

judicial forum for disputes with us or our directors, officers, employees or agents.

Our governing documents provide

that, unless we consent in writing to an alternative forum, the Court of Chancery of the State of Delaware is the sole and exclusive forum

for state law claims for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of or based

on a breach of a fiduciary duty owed by any of our current or former directors, officers, or other employees or our stockholders, (iii)

any action asserting a claim arising pursuant to any provision of the DGCL, the certificate of incorporation or the bylaws, (iv) any action

to interpret, apply, enforce or determine the validity of the certificate of incorporation or bylaws, or (v) any action asserting a claim

that is governed by the internal affairs doctrine, in each case subject to the Court of Chancery having personal jurisdiction over the

indispensable parties named as defendants therein, which for purposes of this risk factor refers to herein as the “Delaware Forum

Our governing documents further provide that, unless we consent in writing to an alternative forum, the federal district

courts of the United States will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities

Act, which for purposes of this risk factor refers to herein as the “Federal Forum Provision”.

Neither the Delaware Forum

Provision nor the Federal Forum Provision will apply to any causes of action arising under the Exchange Act.

In addition, any person or

entity purchasing or otherwise acquiring any interest in shares of our capital stock will be deemed to have notice of and consented to

the foregoing Delaware Forum Provision and Federal Forum Provision;

provided, however, that stockholders cannot and will not be deemed

to have waived our compliance with the U.S.

federal securities laws and the rules and regulations thereunder.

Delaware Forum Provision and the Federal Forum Provision may impose additional litigation costs on our stockholders in pursuing any such

4 unchanged sentences

if successful, might benefit our stockholders.

sales of shares by existing stockholders could cause our stock price to decline.

our stockholders sell, or indicate an intention to sell, substantial amounts of our common stock in the public market after legal restrictions

on resale lapse, the trading price of our common stock could decline.

In addition, shares of our common stock that are subject to our

outstanding options will become eligible for sale in the public market to the extent permitted by the provisions of various vesting agreements

and Rules 144 and 701 under the Securities Act.

do not anticipate that we will pay any cash dividends in the foreseeable future.

The current expectation is that we will retain our future

earnings, if any, to fund the development and growth of our business.

As a result, capital appreciation, if any, of our common stock

will be your sole source of gain, if any, for the foreseeable future.

executive officers, directors and principal stockholders have the ability to control or significantly influence all matters submitted

to our stockholders for approval.

executive officers, directors and principal stockholders beneficially own a significant percentage of our outstanding common stock.

a result, if these stockholders were to choose to act together, they would be able to control or significantly influence all matters

submitted to our stockholders for approval, as well as our management and affairs.

For example, these stockholders, if they choose to

act together, would control or significantly influence the election of directors and approval of any merger, consolidation or sale of

all or substantially all of our assets.

This concentration of voting power could delay or prevent our acquisition on terms that other

stockholders may desire.

equity research analysts do not publish research or reports, or publish unfavorable research or reports about us, our business or our

market, our stock price and trading volume could decline.

trading market for our common stock will be influenced by the research and reports that equity research analysts publish about us and

our business.

Equity research analysts may elect to not provide research coverage of our common stock, and such lack of research coverage

may adversely affect the market price of our common stock.

If we do have equity research analyst coverage, we will not have any control

over the analysts or the content and opinions included in their reports.

The price of our common stock could decline if one or more equity

research analysts downgrade our stock or issue other unfavorable commentary or research.

If one or more equity research analysts ceases

coverage of us or fails to publish reports on us regularly, demand for our common stock could decrease, which in turn could cause our

stock price or trading volume to decline.

Future sales of shares

by existing stockholders, or the anticipation of such events, could cause our stock price to decline.

If our stockholders sell, or indicate an intention to sell, substantial

amounts of our common stock in the public market, the trading price of our common stock could decline.

In October 2025 we filed a registration

statement on Form S-3 covering the resale of 39,425,806 shares of our common stock (including shares of common stock issuable upon the

conversion of outstanding Series B Preferred Stock, or issuable upon the exercise of outstanding pre-funded warrants to purchase shares

of common stock).

The sale of these shares in the public market or the perception that holders of a large number of the securities intend

to sell their securities could significantly reduce the price of our common stock.

We cannot predict if and when the selling stockholders

listed in the registration statement may sell such shares in the public markets.

In addition, shares of our common stock that are subject

to our outstanding options will become eligible for sale in the public market to the extent permitted by the provisions of various vesting

agreements and Rules 144 and 701 under the Securities Act.

Furthermore, in the future, we may issue additional shares of common stock

or other equity or debt securities convertible into shares of common stock.

We do not anticipate

that we will pay any cash dividends in the foreseeable future.

We do not anticipate that

we will pay any cash dividends in the foreseeable future.

The current expectation is that we will retain our future earnings, if any,

to fund the development and growth of our business.

As a result, capital appreciation, if any, of our common stock will be your sole source

of gain, if any, for the foreseeable future.

Our executive officers,

directors, and principal stockholders have the ability to control or significantly influence all matters submitted to our stockholders

for approval.

Our executive officers, directors,

and principal stockholders beneficially own a significant percentage of our outstanding common stock.

As a result, if these stockholders

were to choose to act together, they would be able to control or significantly influence all matters submitted to our stockholders for

approval, as well as our management and affairs.

For example, these stockholders, if they choose to act together, would control or significantly

influence the election of directors and approval of any merger, consolidation, or sale of all or substantially all of our assets.

concentration of voting power could delay or prevent our acquisition on terms that other stockholders may desire.

If equity research

analysts do not publish research or reports, or publish unfavorable research or reports about us, our business or our market, our stock

price and trading volume could decline.

The trading market for our

common stock will be influenced by the research and reports that equity research analysts publish about us and our business.

Equity research

analysts may elect to not provide research coverage of our common stock, and such lack of research coverage may adversely affect the market

price of our common stock.

If we do have equity research analyst coverage, we will not have any control over the analysts or the content

and opinions included in their reports.

The price of our common stock could decline if one or more equity research analysts downgrade

our stock or issue other unfavorable commentary or research.

If one or more equity research analysts ceases coverage of us or fails to

publish reports on us regularly, demand for our common stock could decrease, which in turn could cause our stock price or trading volume

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors