34385PAA6

• Cash equivalents in checking and money market accounts expose the company to interest rate risk, with capital preservation as the stated investment objective.
• Foreign currency exposure arises from non-U.S. operations and is not hedged; a $4.8M loss was recognized in the six months ended June 30, 2026, versus a $1.9M gain in the prior-year period.
• The company states inflation has not materially affected the business in the last two years but expects appreciable increases in labor and other operating costs if global inflation persists.
• Future securities offerings are cited as a possible funding source, exposing the company to capital market risk tied to stock price and market conditions.

Information with respect to certain legal proceedings is included in Note 6 to our accompanying financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

• The company faces Nasdaq delisting after again failing the $1.00 minimum bid price rule, with a compliance deadline of January 19, 2027.
• The pending merger with Treeline may not close, risking a $16.1M termination fee, up to $5M in expense reimbursement, and potential dissolution.
• Merger completion would transform the company from a life sciences tools provider into a clinical-stage biopharmaceutical firm, altering its investor base and stock volatility.
• Post-merger, current stockholders would own only ~16% of the combined company, and the new board and management would be dominated by Treeline designees.
• The merger's exchange ratio fluctuates with Parent Net Cash, and the value of contingent value rights (CVRs) depends entirely on uncertain future monetization of legacy assets.
• The company's ability to use its net operating loss carryforwards may be severely limited by the ownership change triggered by the merger.