On December 15, 2023, Eloxx Pharmaceuticals, Inc. entered into the Fourth Amendment to the Loan and Security Agreement by and among (i) Hercules Capital, Inc., a Maryland corporation (Hercules), in its capacity as administrative agent, collateral agent, and a lender, (ii) Hercules Capital IV, L.P., (together with Hercules, the Lenders), as a lender, (iii) the company, as a borrower, (iv) Zikani Therapeutics, Inc., as a borrower (together with the Company, the Borrower"), and (v) Eloxx Pharmaceuticals Ltd., an Israeli company and wholly-owned subsidiary of the Company (together with the Lenders and the Borrower, the Parties"), which amended certain terms of the Loan and Security Agreement, originally dated September 30, 20221, by and among the Parties (as amended, the Loan Agreement"). The Fourth Amendment provides for a temporary reduction in the minimum qualified cash balance amount to $1.05 million for the period from December 15, 2023 through and including January 25, 2024, unless extended by Hercules in its sole discretion. After the expiration of such period, the minimum level of qualified cash will revert to $1.05 million plus the amount of accounts payable that have not been paid within 180 days.

As a condition of effectiveness of the Fourth Amendment, the Company has repaid $1.0 million of the outstanding principal (without incurring a prepayment premium), reducing the remaining outstanding principal of Term Loan Advances to $3.1 million.