https://open.endole.co.uk/insight/company/08683015-rockley-photonics-limited

ROCKLEY PHOTONICS LIMITED

THE STRATEGIC REPORT (CONTINUED)

YEAR ENDED 31 DECEMBER 2023

POST BALANCE SHEET EVENTS

On January 25, 2024 and February 29, 2024, Rockley Photonics TopCo, Inc. ("The Parent Company") completed equity raises with certain of its existing shareholders resulting in approximately $16 million and S0.1 million in additional cash for ongoing operations (including the operations of Rockley Photonics Limited). On June 3, 2024, Trevor McCaw was appointed as the group's Chief Executive Officer and joined the board of Rockley Photonics Limited on June 28, 2024. The Company has entered into a contract to sell a portion of its Intellectual Property and Patent portfolio as well as license other portions of its Intellectual Property and Patent portfolio for consideration in excess of $20m which is expected to be realized during Q3 2024.

FUTURE DEVELOPMENTS

The Company has agreed to begin to focus R&D efforts on one of its products that is closest to market (the Cardio Band). The additional funding received by the parent company will allow the company to continue to make further progress with customers and continue its R&D development of this product, leaving the business. well placed for the next financial year. The Company will look to monetise its IP that is not needed for the Cardio Band product (including the acquired TruTouch IFA in the balance sheet) through sales or licensing.

16. Subsequent Events

Subsequent events have been evaluated through September 26, 2024, which is the date

the consolidated financial statements were available to be issued.

On January 25, 2024, and February 29, 2024, the Successor Company completed equity raises with certain of its existing shareholders resulting in approximately $16 million and $0.1 million in additional cash for ongoing operations, resulting in the addition of 85,982,998 Class A shares.

Effective February 13, 2024, Dr. Andrew Rickman resigned as Chief Executive Officer of the Company. Dr. Rickman's resignation was not in connection with any known disagreement with the Company on any matter.

On February 21, 2024, the Successor Company executed a restructuring plan to reduce costs and redirect resources to the highest priority activities, which included a reduction in the global workforce by approximately 29%, which resulted in a restructuring charge of $2.4 million consisting of employee severance-related costs.

On August 2, 2024, the Company sold certain intellectual property to a large consumer

products company for approximately $23,000,000.