OTC: EVFM

1
Daniels K and Abma J. Current Contraceptive Status Among Females Ages 15–49: United States, 2022–2023. NCHS Data Brief
No. 539. August 2025. Data table for Figure 1, sourced from National Survey of Family Growth (NSFG) 2022–2023.
https://www.cdc.gov/nchs/data/databriefs/db539.pdf

2

Outside
the U.S., our strategy is to commercialize our products in global markets through commercial partnerships and/or license agreements.
We licensed commercial rights to PHEXX and SOLOSEC in the
Middle East and North Africa (MENA) to Pharma 1 Drug Store, LLC (Pharma 1), an emerging Emirati health care company, in July 2024
and May 2025, respectively. Pharma 1 filed for regulatory approval of PHEXX in the United Arab Emirates (UAE) in June 2025 and of
SOLOSEC in the UAE in September 2025

Our
Leadership Team

We
have assembled a world-class team with industry-recognized expertise in women’s sexual and reproductive health.

The team is led by Saundra Pelletier, an expert in women’s health
from puberty to menopause. She has served as Chief Executive Officer, President and Executive Director of Evofem Biosciences since February
2015, and as interim Chair of the Board since November 2021. She has been responsible for the Company’s growth and evolution, from
clinical-stage private company to a publicly-listed commercial stage company generating revenue from two FDA-approved assets.

During
her more than 26 years of experience in the pharmaceutical industry, Ms. Pelletier has launched pharmaceutical brands worldwide and expanded
indications of female healthcare brands in multiple countries. Her experience includes a comprehensive range of women’s healthcare
products, cardiovascular drugs, pain management agents, sleep therapeutics and medical devices. She has had oversight and accountability
for Sales, Marketing, Operations, Medical Affairs, Regulatory Affairs, Manufacturing, Customer Service, Business Development and Strategic
Partnerships.

Our
Chief Financial Officer, Ivy Zhang, is a trusted leader and a seasoned finance executive who is dedicated to advancing our mission of
addressing the unmet sexual and reproductive health needs of women. She joined Evofem as Chief Financial Officer on April 13, 2023 and
leads our finance organization and financial activities including financial planning and analysis, accounting, external audit, tax, controllership,
and treasury functions. Ms. Zhang has more than 17 years of financial and accounting experience spanning diverse industries, including
pharmaceuticals and medical devices. Most recently she was Vice President Corporate Controller of HUYABIO International. From March 2018
to November 2022, she held increasingly senior leadership roles in Evofem’s finance team, ultimately serving as Controller. Earlier
in her career, Ms. Zhang served in finance positions for more than two and a half years at SeaSpine Holdings Corporation (a public medical
and therapeutic technology and device company) and approximately seven years at Ernst & Young LLP. On April 13, 2023, the Board of
Directors appointed her Secretary.

Our
Strategy

Key
elements of our strategy include:

● Successfully
commercialize PHEXX. Currently, our primary focus is the successful commercialization of PHEXX in the U.S. Outside the U.S.,
we intend to commercialize PHEXX through strategic partnerships or license agreements, such as our licensing agreement with Pharma 1
for the Gulf Cooperative Commission (GCC) and MENA, under which Pharma 1 is expected to launch PHEXX in the UAE in 2026. We believe this approach will allow us to effectively deploy our capital to maximize the inherent value of PHEXX for the benefit
of all stakeholders.

3

●
Successfully commercialize SOLOSEC. In July 2024, we expanded our commercial portfolio by acquiring global rights to SOLOSEC,
an oral antimicrobial agent that provides a complete course of therapy for the treatment of two common sexual health infections with
just one dose. SOLOSEC is FDA-approved for the treatment of bacterial vaginosis (BV), a common vaginal infection, in females 12 years
of age and older, and Trichomonas vaginalis, a common sexually transmitted infection (STI), in people 12 years of age and older. We
relaunched SOLOSEC in November 2024 and our continued focus will be on ensuring the success of the commercialization efforts. As with
PHEXX, we aim to commercialize SOLOSEC outside the U.S. through strategic partnerships or license agreements, such as our licensing agreement
with Pharma 1.

● Reduce
Manufacturing Costs / COGS. Our goal is to improve margins by lowering the cost to manufacture our products. In 2027, when
we are selling product made under new manufacturing contracts, we hope to reduce both PHEXX and SOLOSEC COGS by approximately 55% to
60% from current levels.

● Leverage
our U.S. sales force through business development. We intend to opportunistically acquire or in-license additional
commercial or launch-ready products to enhance our offerings and complement our core competencies in women’s health. In
addition to increasing revenues, the addition of other commercial assets would diversify our revenue stream.

Contraceptive
Market Overview

U.S.
Contraceptive Market

The
U.S. is the largest commercial market worldwide and presents the greatest opportunity for PHEXX and other women’s health products.
The total U.S. contraceptive market was valued at $8.8 billion in 2024 and is expected to reach approximately $12 billion by 2030 with
a compound annual growth rate of 4.7%3

In
the U.S. an estimated 54.3% of women of reproductive age 15-49 use contraception2 including:

●

Non-hormonal
contraceptives: prescription methods including PHEXX, the female condom, and diaphragms, and non-prescription methods such as
the male condom, withdrawal, periodic abstinence, and cycle tracking;

●
Short-acting
hormone-based prescription pharmaceutical products: oral contraceptives (OCs), vaginal rings, transdermal patches, and intramuscular
injections – all prescription products; and,

●
Long-acting
removable contraceptives (LARCs): hormonal intrauterine devices (IUDs), a hormone-free copper IUD, and hormonal implants –
all prescription products.

Hormonal
contraceptives can be associated with undesirable side effects such as weight gain, loss of libido and mood changes that may lead women
to discontinue their use and seek alternative contraceptive methods. Hormonal birth control is also associated with a slight increase
in the risk of breast cancer, as published in the peer-reviewed journal PLOS Medicine in March 2023;

The
vast majority of contraceptive products require a prescription in the U.S. Besides condoms and a progestin-only OC that was converted
to over-the-counter (OTC) status in 2024, the only currently available OTC contraceptive products in the U.S. are spermicides that contain
nonoxynol-9 (N-9), a surfactant (detergent).

As
shown in the chart below, which is based on data from the 2022–2023 National Survey of Family Growth, of the 74.9 million
women of reproductive age (15-49) in the U.S., 6.1 million women use no method of birth control, putting them at risk of unintended
pregnancy. An additional 9.8 million women in the U.S. rely on a short-acting hormone-free method; methods in this category include
PHEXX, male and female condoms, the rhythm method, diaphragms, cervical cap, spermicides, and withdrawal. Another 10.3 million women
in the U.S. use short-acting hormone-based contraceptives including the oral contraceptive pill, patch, vaginal ring and shot. Women
in each of these groups are potential PHEXX users.

2 Daniels K, Abma
J. Current Contraceptive Status Among Females Ages 15–49: United States, 2022–2023. NCHS Data Brief Number 539. August 2025.
Accessed Jan. 9, 2026, via https://www.cdc.gov/nchs/data/databriefs/db539.pdf

3
Grand View Research, U.S. Contraceptive Market Size, Share & Trends Analysis Report By Product and Segment Forecasts, 2023 –
2030

4

Source:
Daniels K, Abma J. Current Contraceptive Status Among Females Ages 15–49: United States, 2022–2023. NCHS Data Brief Number
539. August 2025. Accessed Jan. 9, 2026, via https://www.cdc.gov/nchs/data/databriefs/db539.pdf.

Per
the NCHS-published data, an aggregate 15.9 million women who are currently at risk for unintended pregnancy are not using hormone-based
contraceptives or a LARC as their primary form of contraception. These women are key targets for PHEXX.

Through
the growing utilization of GLP-1 prescription medications like Ozempic, Mounjaro and Zepbound, we believe a new opportunity for PHEXX
has emerged. GLP-1s may make oral birth control pills less effective at certain points in the dosing schedule4. Per the United
States Prescribing Information (USPI) for Mounjaro and Zepbound, prescribers are instructed to “advise patients using oral contraceptives
to switch to a non-oral contraceptive method or add a barrier method” to prevent unintended pregnancy during these times.5
The USPI for Ozempic similarly advises that the drug “may impact absorption of concomitantly administered oral medications”.6
We believe PHEXX can be prescribed to help prevent unintended pregnancy in these patients.

4 Washington State Health Care Authority.
Bulletin 28 Jan. 2025. Accessed 10 Feb. 2026 via https://content.govdelivery.com/accounts/WAHCA/bulletins/3ce3574

5 Zepbound Prescribing Information:
“Use in Specific Populations”. Accessed 10 Feb. 2026 via https://uspl.lilly.com/zepbound/zepbound.html#pi

Mounjaro Prescribing
Information: “Use in Specific Populations”. Accessed 10 Feb. 2026 via https://uspl.lilly.com/mounjaro/mounjaro.html#pi

6 Ozempic Prescribing
Information: “Drug Interactions”. Accessed 10 Feb. 2026 via https://www.novo-pi.com/ozempic.pdf

5

In
the U.S., an estimated 15.77 million women of reproductive age (ages 18-49) report GLP-1 use7. Factoring published data from
the 2024 KFF Women’s Health Survey on use of oral contraceptives in women ages 18-498, we estimate that in the U.S.
alone there are 3.55 million women on GLP-1s who also use oral contraceptives. This translates to a $904 million total addressable market
in the U.S. We aim to increase awareness among these women and their healthcare providers to drive adoption of PHEXX and expand sales
into this sub-market.

Market
Opportunity: Contraception

Hundreds
of millions of women worldwide seek sexual and reproductive health products that provide them with their self-defined control of their
individual needs during their (on average) 30+ years of fertility. However, an estimated 218 million women who want to avoid pregnancy
are not using safe, modern methods of contraception and nearly half of all pregnancies – 112 million each year are unintended
according to the United Nations 2024 State of World Population report.

According
to the CDC, reducing the percentage of all unintended pregnancies has been one of the National Health Promotion Objectives since its
establishment in 1980. Despite this, approximately 41.6% of all pregnancies are unintended; there are approximately 2.3 million unintended
pregnancies in the U.S. each year.9 By successfully commercializing PHEXX, a hormone-free, on-demand contraceptive gel controlled
by women, we believe we can help address this need.

Our
Commercial Products: PHEXX and SOLOSEC

PHEXX

PHEXX®
(lactic acid, citric acid and potassium bitartrate) vaginal gel is the only FDA-approved, hormone-free, on-demand, woman-controlled prescription
contraceptive drug product available in the U.S. We believe PHEXX’s attributes address significant gaps and unmet
needs in the contraceptive market, making it an attractive contraceptive choice for women.

PHEXX
key benefits:

●
Hormone-free:
PHEXX is an innovative, hormone-free contraceptive gel. By avoiding hormones, it offers an alternative for women
who are concerned about side effects commonly associated with hormonal birth control, such as weight changes, mood effects, or increased
risk of blood clots.

●
Only
when you need it: With PHEXX, women no longer need to have birth control in their bodies 24/7. PHEXX is used in the moment, 0-60
minutes before each and every act of sex, so no daily commitment is required. This also makes PHEXX easily reversible, providing
women with a flexible option for family planning.

●
First
in class: PHEXX is the first and only hormone-free prescription birth control gel that women control. PHEXX works to prevent
pregnancy by maintaining the vaginal pH, which reduces sperm motility and lowers the chance of sperm reaching the egg. This revolutionary
mechanism of action is unique to PHEXX, meaning we know of no other products like it in the market.

●
Woman-controlled:
PHEXX puts women in control of their bodies and their pregnancy prevention. With PHEXX, there is no need to rely on a partner
to bring a condom, to take a pill at the same time every day, and no need for an in-office injection or procedure to prevent pregnancy.
The quick and easy pre-sex application is designed with spontaneity and convenience in mind.

7
Bozick et al. New Weight Loss Drugs: GLP-1 Agonist Use and Side Effects in the United States. Analysis of RAND American Life Panel survey
data, April–May 2025. (n = 8,793). Pub. Aug 6, 2025. Accessed Jan. 7, 2026, via https://www.rand.org/pubs/research_reports/RRA4153-1.html)

8
Frederiksen B, Diep K, Salganicoff A. Contraceptive Experiences, Coverage, and Preferences: Findings from the 2024 KFF Women’s
Health Survey. Nov 22, 2024. Accessed Jan 7, 2026, via https://www.kff.org/womens-health-policy/contraceptive-experiences-coverage-and-preferencesfindings-from-the-2024-kff-womens-health-survey/#:~:text=Eight%20in%20ten%20(82%25)%20women,Almost%20half%20(48%25)%20of%20contraceptive.

9
Rossen LM et al. Updated methodology to estimate overall and unintended pregnancy rates in the United States. National Center
for Health Statistics. Vital Health Stat 2(201). 2023. DOI: https://dx.doi.org/10.15620/cdc:124395.

6

PHEXX
is designed to address underserved and unmet needs in the birth control market, as highlighted in the table below.

Prescription
Contraceptive Products and Associated Benefits

Product
Class

Non-Hormonal

No
Systemic

Side
Effects

Non-invasive

Convenient

Vaginal
pH Modulator (i.e., PHEXX)

✔

✔

✔

✔

28
Day OCs

✔

Extended
Regimen OCs

✔

Hormone
Releasing IUDs

✔

Copper
IUD

✔

✔

✔

Implant

✔

Vaginal
Ring

✔

✔

Transdermal
Patch

✔

Vaginal
pH Modulator Mechanism of Action

A
normal vaginal pH of 3.5 to 4.5 is important for maintaining good vaginal health. At this optimal pH level, the vaginal biome supports
necessary healthy bacteria while remaining inhospitable to sperm and certain viral and bacterial pathogens.

PHEXX
was developed to have acid-buffering (pH 3.5), lubricating, and viscosity-retaining properties to acidify the male ejaculate in the vagina.
Typically, the introduction of semen (pH = 7.2-8.0) into the vagina causes a rise in pH to above 6.0 due to the alkalinity of the ejaculate,
which neutralizes the normally acidic vaginal environment and allows for the survival of sperm. The active ingredients in PHEXX produce
a normal vaginal pH (3.5-4.5) even in the presence of semen, creating an inhospitable environment for sperm. The maintenance of the acidic
vaginal pH reduces the availability of calcium ions which are needed to drive sperm tail movement. In vitro studies show immediate
sperm motility reduction10. PHEXX prevents pregnancy by reducing sperm motility, inhibiting sperm from reaching the ovum to
form a zygote. Other properties contributing to PHEXX’s mechanism of action are its capacity to 1) maintain sufficient viscosity
even when diluted by the introduction of semen into the vagina, 2) impede cervical mucus penetration by sperm, and 3) form a protective
layer over the vaginal and cervical epithelium.

SOLOSEC

In
July 2024, we expanded our commercial portfolio by acquiring global rights to SOLOSEC® (secnidazole) 2 g oral granules,
a single-dose oral antimicrobial agent that provides a complete course of therapy with just one dose for the treatment of two common
sexual health infections. SOLOSEC is FDA-approved for the treatment of:

1)
Bacterial
vaginosis (BV), a common vaginal infection, in females 12 years of age and older, and

2)
Trichomonas
vaginalis, a common sexually transmitted infection (STI), in people 12 years of age and older.

SOLOSEC
has the same call point as PHEXX, enabling us to leverage our commercial infrastructure and strong physician relationships. We re-launched
the brand in November 2024.

10 Amaral
E, et al. Postcoital testing after the use of a bio-adhesive acid buffering gel (ACIDFORM) and a 2% nonoxynol-9 product. Contraception.
2004 Dec;70(6):492-7. doi: 10.1016/j.contraception.2004.06.007. PMID: 15541412.

7

Bacterial
Vaginosis

Bacterial
vaginosis (BV) affects an estimated 21 million women in the U.S., approximately 29% of the U.S. population, making it the most common
vaginal condition in women ages 15-44. It results from an overgrowth of bacteria, which upsets the balance of the natural vaginal microbiome
and can lead to symptoms including odor and discharge. Of interest, BV raises the pH of the vagina, making it a more friendly environment
for trichomoniasis and other STIs; approximately 20% of BV patients also have trichomoniasis.

If
left untreated, BV can have serious health consequences. Untreated or improperly treated BV is associated with increased risk of infection
with STIs like HPV, herpes, trichomoniasis, chlamydia, gonorrhea, and HIV, as well as transmission of STIs to a partner. Additional risks
include developing pelvic inflammatory disease (PID), which can threaten a woman’s fertility, and complications with gynecological
surgery.

In
May 2025, an investigator-led clinical trial entitled ‘Once Weekly Secnidazole Granules for the Treatment of Recurrent Bacterial
Vaginosis’ was presented at the 2025 ACOG Annual Clinical and Scientific Meeting; the abstract was subsequently published in Obstetrics
& Gynecology. In this focused clinical study of 24 women with recurrent BV, once-weekly dosing with SOLOSEC demonstrated efficacy
matching or potentially surpassing outcomes of current CDC-recommended suppressive treatments. These promising results underscore SOLOSEC’s
potential to redefine the standard of care for recurrent BV by offering a simpler treatment option for long-term symptom control.

There
are several currently available treatments for BV. We believe SOLOSEC is uniquely designed for convenient, safe, single-dose oral
administration in the BV treatment market, as seen in the table below.

The
comparative efficacy of SOLOSEC vs. these treatments has not been adequately studied. This is not a complete list of attributes for each
product that may be important to a clinical decision. For the most updated information, consult the Prescribing Information (PI) for each product.

Research
has shown that as many as 50% of patients with BV do not adhere to a full course of metronidazole treatment (500mg BID x 7d) 14 doses.
58% of women who do not complete therapy will have a recurrence within one year. Noncompliance to a multiple-day metronidazole regimen
is a contributing factor to persistent BV.

In
clinical trials, SOLOSEC demonstrated clinically and statistically significant efficacy in the treatment of BV with just one dose; 68%
of patients treated with SOLOSEC did not require any additional treatment for BV. Guidelines from the American College of Obstetricians
and Gynecologists (ACOG) in 2020 and the U.S. Centers for Disease Control (CDC) in 2021 each include single dose SOLOSEC for the treatment
of BV.

8

Trichomoniasis

Trichomoniasis
(Trich) is the most common non-viral STI in the world. It is caused by a parasite called Trichomonas vaginalis and affects both
women and men. All sexual partners of an infected person must be treated to prevent reinfection with the parasite. In 2018, there were
an estimated 6.9 million new T. vaginalis infections in the U.S. According to the CDC, the U.S. prevalence of T. vaginalis
is 2.1% among females and 0.5% among males, with the highest rates among Black females (9.6%) and Black males (3.6%). A study of
STD clinic attendees in Birmingham, Alabama, identified a prevalence of 27% among women and 9.8% among men. Approximately 70% of women
with trichomoniasis are also infected with the bacteria that cause BV.

In
clinical trials, a single dose of SOLOSEC demonstrated a cure rate of 92.2% for Trich in women, while reported cure rates in males range
from 91.7%-100%.

SOLOSEC’s
one-and-done dosing and the resulting high level of compliance is believed to be a significant differentiator. Non-compliance to a multi-day
metronidazole regimen is a contributing factor to persistent Trich or BV; and ACOG and the CDC no longer recommend single dose metronidazole
to treat Trich in women.

A
Phase 4 investigator-led randomized, open-label, parallel arm clinical trial is underway to evaluate the efficacy and cost-effectiveness
of secnidazole (SOLOSEC 2 g, one dose administered one time) versus metronidazole (Flagyl® 500 mg, administered twice
daily for seven days) for the treatment of trichomoniasis in men and women. Study investigators hypothesize that, in the current clinical
trial, the rate of repeat infections with T. vaginalis will be 1.75 lower in the SOLOSEC arm versus the multi- dose oral metronidazole
arm and that single-dose SOLOSEC will have higher initial cost but will be more cost effective compared to multi-dose metronidazole,
largely due to lower breakthrough rates of infection. This trial is funded by the National Institutes of Health (NIH).

Commercialization
Strategy

Evofem’s
commercial operations are focused on the U.S., which is the largest commercial market worldwide and which we believe presents the greatest
opportunity for PHEXX, SOLOSEC, and other women’s health products. Our strategy is to commercialize PHEXX, SOLOSEC, and potentially
other innovative women’s health products in the U.S. through our dedicated sales team, supported by a telehealth platform.

Outside
the U.S., the Company’s strategy is to commercialize our products in global markets through commercial partnerships and/or license
agreements. Our first licensed territory is the Middle East and North Africa (MENA); we licensed commercial rights to PHEXX and
SOLOSEC to Pharma 1 Drug Store, LLC, an emerging Emirati health care company (Pharma 1), in July 2024 and May 2025, respectively. For
each product, the licensed territory includes the United Arab Emirates (UAE), Kuwait, Saudi Arabia, Qatar and certain other countries
in the region. Pharma 1 is responsible for obtaining and maintaining any regulatory approvals required to market and sell each product,
and will handle all aspects of distribution, sales and marketing, pharmacovigilance and all other commercial functions in these countries.
Pharma 1 filed for regulatory approval of PHEXX in the United Arab Emirates (UAE) in June 2025 and of SOLOSEC in the UAE in September
2025.

9

Commercialization
of PHEXX and SOLOSEC in the U.S.

The
U.S. is the largest commercial market worldwide and presents the greatest opportunity for PHEXX, SOLOSEC, and other women’s
health products. Our sales force promotes PHEXX and SOLOSEC directly to obstetrician/gynecologists and their affiliated health
professionals, who collectively write the majority of prescriptions for contraceptive products and treatments for bacterial
vaginosis (BV) and trichomoniasis.

We
also offer women direct access to PHEXX via a telehealth platform. Using this platform, women can directly meet with an HCP to
determine if they are eligible for a prescription and, if so, have the prescription written by the HCP, then filled and mailed
directly to them by a third-party pharmacy or by utilizing their pharmacy of choice.

Our
commercial strategy for PHEXX includes targeting women of reproductive potential in the U.S., We focus our efforts on 1) the approximately
15.911 million sexually active women who are currently using a hormone-free method (non-LARC) or no contraception at all, and
2) the approximately 10.3 million women who are using a hormonal contraceptive (non-LARC), some of whom, particularly pill users, may
be ready to move to an FDA-approved, non-invasive, hormone-free contraceptive. An important subset of this population is contraceptive
pill users who also take GLP-1s and who may benefit from concurrent use of PHEXX to prevent unintended pregnancy during GLP-1 dose escalation
periods. Additionally, we target certain identified target HCP segments.

Our commercial strategy for SOLOSEC is directed towards approximately
3,000 HCPs within the OB/GYN space, with a particular focus on current SOLOSEC prescribers and established relationships of our experienced sales team.

BV
is the most common vaginal condition in women of reproductive age in the United States, affecting an estimated 21 million women. The
condition results from an overgrowth of certain bacteria, which upsets the balance of the natural vaginal microbiome and can lead to
symptoms of odor and/or discharge. The CDC, in its 2021 STI Treatment Guidelines, recommends treatment for bacterial vaginosis in women with
symptoms. Our commercial strategy for SOLOSEC reflects the coverage reality that SOLOSEC is best for women who have had BV previously.

Of
interest, BV raises the pH of the vagina, increasing the likelihood of concomitant infection with trichomoniasis and other STIs; approximately
20% of BV patients also have trichomoniasis.

There
are an estimated 6.9 million new trichomoniasis infections in the U.S. each year. Up to 70% of people infected with this STI are unaware
that they are infected and may unwittingly pass the parasite to sexual partners. Untreated infections might last from months to years.
Undiagnosed infections and lack of compliance with multi-day treatment regimens are critical contributing factors to the prevalence of
this parasitic STI. All sexual partners of people infected with trichomoniasis should be treated with the same dose and at the same time
to prevent reinfection.

SOLOSEC
is designed to be easy to take; one oral dose contains a complete course of treatment for BV and trichomoniasis, which appeals to patients
and HCPs alike.

Payer
and Reimbursement Strategy in the U.S.

Pricing
Strategy

Our
pricing strategy for PHEXX was informed by extensive pre-approval payer research including discussions with decision makers at major
health plans and pharmacy benefit managers (PBMs) across the U.S. who at the time controlled nearly 83 million commercial lives.
Based on this gathered intelligence, we initially priced PHEXX at $267.50 per box of 12 applicators upon its launch in 2020 and each
year we update the pricing to account for changes to the consumer price index and other considerations. Our pricing, when
annualized, is comparable to all other commercially available branded prescription contraceptives.

PHEXX
is classified in the databases and pricing compendia of Medi-Span and First Databank, two major drug information databases that payers
can consult for pricing and product information, as the first and only “vaginal pH modulator.”

Our
pricing strategy for SOLOSEC is a continuance of legacy pricing established by the company from which we acquired the asset in
July 2024. While SOLOSEC is positioned at a different price point compared to other products available for similar indications,
its convenient one-time oral dosing supports better patient compliance, which could contribute to cost benefits from a health economics
perspective. As legacy payor contracts expire, we are re-evaluating the strategy and making adjustments.

11Daniels
K and Abma J. Current Contraceptive Status Among Females Ages 15–49: United States, 2022–2023. NCHS Data Brief No. 539. August
2025. Data table for Figure 1, sourced from National Survey of Family Growth (NSFG) 2022–2023. https://www.cdc.gov/nchs/data/databriefs/db539.pdf

10

Third-party
Payers

Market
acceptance and sales of PHEXX and SOLOSEC depend, in part, on the extent to which reimbursement is available from third-party payers,
which include government health administration authorities, managed care organizations, private health insurers and PBMs. Third-party
payers decide which therapies they will pay for and establish reimbursement levels for those therapies. Decisions regarding the extent
of coverage and amount of reimbursement to be provided for any product are made on a payer-by-payer basis. One payer’s determination
to provide coverage for a drug does not assure that other payers will also provide coverage and adequate reimbursement for that drug.

Managed
care organizations and other private insurers frequently adopt their own payment or reimbursement reductions. The continued integration
between commercial health plans and PBMs has increased the negotiating power of these entities. Third-party payers increasingly employ
formularies to control costs; they negotiate discounted prices in exchange for formulary inclusion. These formularies often do not include
all products approved for any particular indication. We continue to work with health plans and PBMs to improve and secure additional
formulary positioning for PHEXX and SOLOSEC.

In
the second quarter of 2022, we successfully negotiated a contract with one of the largest PBMs in the nation, which added PHEXX to
its formulary with no restrictions for most women covered by the plan. The agreement was effective January 1, 2022 and expired on
January 1, 2026, at which time we made the strategic decision not to renew. An
additional 13.7 million lives are covered under our December 2020 PHEXX contract award from the U.S. Department of Veterans
Affairs.

For SOLOSEC, third-party coverage generally involves greater utilization management, including prior authorization
requirements, due in part to the availability of lower-cost generic therapies for the same indications. However, SOLOSEC’s single-dose
regimen and associated compliance benefits can support prior authorization approval in appropriate patients. As a result, our commercial
efforts are focused on patient populations with recurrent or persistent bacterial vaginosis.

We
also participate in government programs including the 340B and the Medicaid Drug Rebate Program, which affords access to PHEXX and SOLOSEC
for the U.S. Medicaid population.

Affordable
Care Act

The
Affordable Care Act (ACA) guarantees coverage of women’s preventive services, including free birth control and contraceptive
counseling, for all individuals and covered dependents with reproductive capacity. This includes all contraceptives approved,
granted, or cleared by the FDA. The ACA also requires most health plans to cover STI screenings and counseling, for certain
populations, at no cost.

History

Under
section 2713 of the Public Health Service (PHS) Act, group health plans and health insurers are required to cover preventive care and
screenings under guidelines issued by the Health Resources and Services Administration (HRSA). PHS Act section 2713 took effect when
added by the Affordable Care Act (ACA) in 2010.

HRSA
guidelines issued in 2019 required broad coverage of contraceptive care and services for women. HRSA issued updated guidelines in late
2021, under which:

a.
The
full range of FDA- approved, -granted, or -cleared contraceptives, effective family planning practices, and sterilization procedures
should be available as part of contraceptive care.

b.
The
full range of contraceptives includes those currently listed in the FDA’s Birth Control Guide and any additional contraceptives
approved, granted, or cleared by the FDA.

11

On
January 1, 2023, the current HRSA Women’s Preventive Services Guidelines took effect for calendar year plans.

Separately,
on January 10, 2022, the U.S. Department of Health and Human Services (HHS), alongside the Departments
of Labor and of the Treasury (the Departments) issued updated guidance related to contraceptive access. Specific directives to
healthcare plans under the Departments’ FAQ Update include that:

a.
Plans
are required to cover an FDA- approved, cleared, or granted contraceptive, if a provider deems it medically necessary, at $0 cost
share, whether or not it is specifically identified in the current FDA Birth Control Guide.

b.
Plans
may not require patients to try and fail multiple options within a method, or force trying and failing other methods, if a provider
deems a product medically necessary.

The
Departments also established clear communications channels for consumers with concerns about their plan’s compliance with HRSA
requirements.

Collectively,
this new guidance specifies that most insurers and pharmacy benefit managers (PBMs) must provide coverage, with no out-of-pocket costs
to women, for FDA-approved contraceptive products, like PHEXX® (lactic acid, citric acid and potassium bitartrate), prescribed
by healthcare providers.

In
July 2022 after the fall of Roe v. Wade and in the wake of action in many states to restrict access to emergency contraception, the Departments
released further guidance regarding birth control coverage. Key points of this guidance include:

–
Most
private health plans and health insurance issuers must cover contraceptives at no additional cost to individuals under the Affordable
Care Act no matter where they live or work.

–
Violators
of the preventive care coverage requirements may be subject to the $100 per person per day excise tax under section 4980D of the
Internal Revenue Code or a civil monetary penalty under PHS Act section 2723.

–
The
Departments “will take enforcement action as warranted.”

As
of and since January 1, 2023, most insurers and PBMs must provide coverage, with no out-of-pocket costs (e.g. $0 copay) to the
subscriber or dependent, for FDA-approved contraceptive products, like PHEXX, prescribed by healthcare providers.

As
a result, to comply with these Guidelines, payers are increasingly covering PHEXX by:

–
Adding
PHEXX to formulary (commercial insurers) or preferred drug list (Medicaid)

–
Removing
the requirement for a Prior Authorization letter from the HCP (commercial insurers)

–
Moving
PHEXX to $0 copay (commercial insurers)

Birth
Control Guide

The
FDA Birth Control Guide (the Guide) was developed and is used as an educational tool by many obstetrician/gynecologists to assist in
counseling patients on their contraceptive options and to help them find the method that best suits their needs. It was developed more
than a decade ago has not been undated since and therefore, does not reflect subsequent changes to the contraceptive landscape including
methods that were subsequently approved by the FDA, notably the vaginal pH modulator (PHEXX).

12

Methods
not on the current, outdated Guide may be underrepresented in contraceptive counseling dialogues. Evofem therefore believes the Guide
should include all FDA-approved methods of birth control. However, while the updated HRSA Guidelines discussed above are highly favorable
to PHEXX, they remove the impetus for the FDA to update the Guide.

Further,
even though the FDA Guide was intended as an educational tool, certain insurers have used it to block coverage of methods not included
in the Guide. While this is explicitly prohibited by the current HRSA Guidelines, and there has been considerable progress since January
1, 2023, two notable plans continue to flout the law.

To
proactively address this conundrum, in 2022 Evofem developed and introduced its own new educational chart that provides high-level information
about birth control methods that are currently available to women in the U.S., adding new categories including vaginal pH modulator.

This
educational tool is intended to facilitate patient-centric contraceptive counseling by focusing first and foremost on whether or not
a woman is willing and/or able to take exogenous hormones; for those who are not, hormone-free options including PHEXX are prominently
displayed and discussed. We believe the Evofem-developed chart has been well received and has been useful to HCPs and patients
alike.

13

Contraceptive
Market Landscape

The
modern contraception market was established in 1960 with the introduction of “the pill,” the first oral contraceptive widely
available to women in the U.S. Innovation and new product introductions in the women’s reproductive and sexual health care arena
have been limited when compared to other therapeutic categories. As shown in the timeline below, there was no notable innovation providing
additional options in women’s reproductive health until almost 30 years after the introduction of “the pill,” when
pharmaceutical companies introduced the non-hormonal copper IUD and synthetic hormonal products with different delivery systems,
including the hormonal IUD, implants, the patch, and vaginal ring.

While
several new contraceptive category entrants have been introduced in recent years, Evofem believes PHEXX is the first innovative contraceptive
method introduced in the U.S. since NuvaRing in 2001. We do not include Miudella, a new type of copper IUD approved by the FDA in early
2025, because it is not yet commercially available.

U.S.
Market

In
the U.S. today, commercially available contraceptive options include:

●
Devices
designed to prevent pregnancy through physical means, such as condoms and diaphragms.

●
Short-Acting
Reversible hormone-based pharmaceutical products, including OCs, vaginal rings, transdermal patches, and intramuscular
injections.

●
LARCs, comprised of intrauterine devices (IUDs) – hormonal and a hormone-free copper IUD – and subcutaneous hormonal
implants.

●
PHEXX,
a prescription vaginal pH modulator that was introduced to the market in September 2020.

While
Evofem’s market research has indicated that the hormone-free, on-demand, woman-controlled aspect of PHEXX makes it an attractive
option across the entire competitive set, we are focused on the 26.2 million women who fall into three contraceptive use groups in the
“U.S. Market by Contraceptive Method” chart above:

1.
The
approximately 6.1 million sexually active women use no method of birth control, putting them at risk of unintended pregnancy;

2.
The
approximately 9.8 million women in the U.S. who already rely on a form of non-hormonal birth control (e.g., condoms, rhythm, withdrawal);
and,

3.
The
approximately 10.3 million women in the U.S. who use a short-acting hormonal birth control method.

Combining
groups 1 and 2, there are an aggregate 15.912 million women who are not seeking to become pregnant and do not use hormonal
contraceptives. We expect that PHEXX will grow both its market share and the prescription birth control market through adoption by women
in these two groups.

Additionally,
as women’s expectations change throughout their contraceptive journey, we expect PHEXX to compete for market share in two additional
categories: Hormonal short-acting reversible contraceptives consisting of oral contraceptive pills, patches, injectables and rings, and
Long-Acting Reversible Contraception, comprising IUDs and implants.

12Daniels
K and Abma J. Current Contraceptive Status Among Females Ages 15–49: United States, 2022–2023. NCHS Data Brief No. 539. August
2025. Data table for Figure 1, sourced from National Survey of Family Growth (NSFG) 2022–2023. https://www.cdc.gov/nchs/data/databriefs/db539.pdf

14

1.
Short-Acting, Reversible Hormonal Contraceptives (Predominantly Prescription)

Oral
contraceptives

OCs, also known as the pill, are the most commonly used form of birth control in the U.S. today. There are two main
kinds of hormonal OCs: combination birth control pills, which contain both estrogen and progestin, and the progestin only pill (POP).
In 2024 the POP brand Opill (Perrigo) became commercially available OTC. Combination OCs remain prescription products. Use of either
kind is associated with a slight increase in the risk of breast cancer. OCs typically must be taken at the same time every day to be
the most effective. If the POP is taken more than three hours late (or missed entirely), the user is advised to use supplemental non-hormonal
contraception, like PHEXX, for the next two days to prevent unintended pregnancy.

Contraceptive
Patch

The
weekly contraceptive patch was introduced in 2000 by Johnson & Johnson’s Janssen division; however, deaths resulting from venous
thromboembolism due to hormonal exposure had a significant negative impact on the patch and led to label changes restricting utilization.13
Following the loss of exclusivity, Johnson & Johnson’s Janssen division exited women’s health care and contraception
as a promotional category. A new branded patch was launched in late 2020 under the brand name Twirla (Agile Therapeutics) and is competing
against a generic entrant Xulane (Mylan).

Vaginal
Ring

The
hormonal vaginal ring was introduced to the market in 2001 by Merck & Co.; generic versions are now available. The ring is used for
three weeks and then removed for a week during menses and a new hormonal vaginal ring is inserted. The efficacy of the vaginal ring is
similar to hormonal oral contraception. A meta-analysis of 18 studies found that users of the vaginal ring reported more vaginal irritation
and discharge than combination pill users, but less nausea, acne, irritability, depression, and emotional changes.14

An
annual hormonal vaginal ring was launched in the U.S. in 2020 under the brand name Annovera (Mayne Pharma).

Injectables

The
primary injectable hormonal contraceptive on the market is Depo-Provera offered by Pfizer Inc. Each injection provides protection for
up to 12 to 14 weeks, but patients must receive injections once every 12 weeks to get optimal contraceptive protection. Depo-Provera
was introduced to the market in 1992.

2.
Long-Acting Reversible Contraception (Prescription)

LARCs
are not dependent on user adherence, which appeals to those who benefit from a passive form of birth control. LARC methods include
the Intrauterine Device (IUD) and the Contraceptive Implant.

IUDs

The
copper IUD was introduced to the market in 1988 and provides protection by disrupting sperm motility and damaging sperm so that they
are prevented from joining with an ovum. Today, the copper IUD is principally marketed by Cooper Surgical, Inc. as Paragard.

A
nitinol-frame copper IUD was approved by the FDA in 2025 under the brand name Miudella (Sebella). It is not yet commercially available.

The
hormonal IUD is principally offered under the brand names Kyleena, Skyla and Mirena, a family of products from Bayer Pharmaceuticals.
All IUDs must be inserted and removed by a physician.

13
Bell J. New Risk Data Added to Contraceptive Patch Label. Family Practice
News. 15 Oct. 2006. https://cdn.mdedge.com/files/s3fs-public/issues/articles/74033_main.pdf

14
Lopez et al. Skin patch and vaginal ring versus combined oral contraceptives for contraception. Cochrane Database Syst Rev. 2013
Apr 30;2013(4):CD003552. doi: 10.1002/14651858.CD003552.pub4

15

Many women have opted
against the IUD for 1) fear of a bad insertion experience; a peer-reviewed study published in 2015 found that “all women had a
high expectation of pain prior to IUD insertion,”15 and 2) concern over having something in them (i.e. a “foreign
body effect”), which has been frequently demonstrated in medical literature16. Among women who opt-in to the insertion
procedure, many decide to remove their IUD due to the hormonal and other side effects that they experience.

Implants

The
contraception implant must be implanted under the skin and removed by a qualified HCP, requiring a medical procedure. It provides contraception
by releasing hormones over a three-year period. The implant is marketed in the U.S. as Nexplanon (Organon).

3.
Short-Acting Hormone-Free Methods

As
noted in the “US Market by Contraceptive Method” chart above, in the U.S., an estimated 9.8 million women rely on short-acting
hormone-free methods for their contraceptive needs.

Hormone-free
Prescription Products

These
contraceptive devices are applied or worn inside the vagina and used on-demand. They are available by prescription and must be inserted
into the vagina prior to each act of intercourse.

Vaginal
pH Modulator. The first and only Vaginal pH Modulator - PHEXX - was FDA approved and launched by Evofem in 2020. PHEXX is a hormone-free,
prescription contraceptive vaginal gel that women apply 0-60 minutes before intercourse. It is used on-demand, only when needed, and
comes in a box of 12 pre-filled applicators. It was evaluated and approved as a stand-alone contraceptive. PHEXX can also be used in
conjunction with most other birth control methods to provide additional protection against unintended pregnancy. Supplementing with PHEXX
appeals to women who have been placed on drugs like GLP-1s and Paxlovid, which can reduce efficacy of hormonal birth control, and women
who need supplemental protection after taking an OC late or missing a day entirely.

Diaphragm.
A diaphragm prevents pregnancy by covering the cervix, thus preventing sperm from entering the uterus. Diaphragms must be used with
PHEXX or a spermicide to work. Diaphragms come in different sizes, so a doctor will fit the user for one, show her how to insert and
remove it, and give her a prescription. FDA approved diaphragms available in the U.S. include Caya®.

Cervical
Cap. A cervical cap is made from soft silicone and shaped like a sailor’s hat. It prevents pregnancy by covering the cervix,
thus preventing sperm from entering the uterus. Concurrent use of PHEXX or spermicide makes the cervical cap much more effective. The
only brand of cervical cap that is FDA approved and available in the U.S. is called FemCap®.

Female
Condoms. Female condoms prevent pregnancy by stopping sperm from meeting an egg. The only brand of internal condom that is FDA approved
and available in the U.S. is the FC2 Female Condom®.

Over-the-Counter
Non-hormonal Products and Methods

Male
Condoms. Male condoms also prevent pregnancy by stopping sperm from meeting an egg. Collectively, they are the dominant hormone-free
product offering, with estimated domestic sales of approximately $480 million in 2023 (Fortune Business Insights). Approximately 7.1%
of women in the U.S. use condoms, either alone, in conjunction with, or interchangeably with other forms of birth control.17
The predominant brands are Trojan (Church & Dwight) and Durex (Reckitt Benckiser).

Spermicides.
All spermicides in the U.S. rely on nonoxynol-9 (N-9), a surfactant associated with genital irritation and inflammation that may increase
the risk of contracting human immunodeficiency virus (HIV) or other STIs from an infected partner. Spermicides are available in sponges,
jelly/creams and foams, and have very limited utilization.

15 Brima
et al. A comparison of the expected and actual pain experienced by women during insertion of an intrauterine contraceptive device. Open
Access J Contracept. 2015 Feb 16;6:21-26. doi: 10.2147/OAJC.S74624

16
Ferguson et al. Patient Opinions About Foreign Body Contraceptives. Women’s Health Rep (New Rochelle). 2020 Oct 8;1(1):451-458.
doi: 10.1089/whr.2020.0048.

17
Daniels K, Abma J. Current Contraceptive Status Among Females Ages 15–49: United States, 2022–2023. NCHS Data Brief Number
539. August 2025. Accessed Jan. 9, 2026, via https://www.cdc.gov/nchs/data/databriefs/db539.pdf

16

Other
Methods. Fertility tracking, withdrawal, and periodic abstinence are among the other non-hormonal methods used by women in
the U.S.

Ex-U.S.
Markets

The
conditions addressed by our products are not unique to the United States; they affect women around the world.

Contraception.
According to the United Nations Department of Economic and Social Affairs, nearly 1.1 billion women worldwide desire contraception
including “172 million women (who are) are using no method at all, despite their desire to avoid pregnancy, and thus are considered
to have an unmet need for family planning.”18 This demand is reflected by the significant market growth projections
for non-hormonal birth control. Growth Plus Reports forecasts global sales of non-hormonal contraceptives will increase from $27.7 billion
in 2022 to $52.2 billion by 2031.19

Trichomoniasis.
Trichomonas vaginalis is the most common non-viral STI, globally. The World Health Organization (WHO) cites an estimated 156 million
new cases of T. vaginalis infection among people aged 15–49 years old in 2020 (73.7 million in females, 82.6 million in
males).20 Approximately one third of new infections in this age group occur in the WHO African Region, followed by the Region
of the Americas.

Bacterial
vaginosis. A recent systematic review and meta-analysis reported that the prevalence of BV among women of reproductive age ranges
from 23% to 29%, with the following regional prevalence estimates: 23% in Europe and Central Asia; 24% in East Asia and Pacific, Latin
America and the Caribbean; 25% in the Middle East and North Africa (MENA) and sub-Saharan Africa; 27% in North America; and 29% in South
Asia.21

In
markets outside of the U.S., our strategy is to establish regional and/or global partnerships by either sublicensing the commercialization
rights or entering into distribution agreements with one or more third parties for the commercialization of PHEXX and/or SOLOSEC in that
market. We believe this approach will afford access to women whose lives we aim to positively impact while allowing us to maximize the
inherent value of our products for the benefit of all stakeholders.

We licensed
commercial rights to PHEXX and SOLOSEC in the Middle East and North Africa (MENA) to Pharma 1 Drug Store, LLC (Pharma 1), an emerging Emirati
health care company, in July 2024 and May 2025, respectively. Pharma 1 filed for regulatory approval of PHEXX in the
United Arab Emirates (UAE) in June 2025 and of SOLOSEC in the UAE in September 2025.

Manufacturing

We
outsource the manufacturing of PHEXX to a third party. We are currently contracted with a leading US-based gel manufacturer to manufacture
PHEXX in accordance with all applicable current good manufacturing practices (cGMP) regulations, as well as in compliance with all applicable
laws and other relevant regulatory agency requirements for manufacture of pharmaceutical drug products and combination drug-device products.
As of December 31, 2025, we estimated that we had manufactured inventory on hand to support approximately three months of anticipated
demand for PHEXX. Additional manufacturing of PHEXX is ongoing to support future sales.

We
currently sell finished goods inventory that was purchased from the SOLOSEC seller at a
pre-defined unit price. We intend to outsource future manufacturing of SOLOSEC to a third party, similar to
our handling of PHEXX.

18 United
Nations Department of Economic and Social Affairs. World Family Planning 2020. https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/files/documents/2020/Sep/unpd_2020_worldfamilyplanning_highlights.pdf

19
Growth Plus Market Reports. Non-Hormonal Birth Control Market by Type (Contraceptive Devices, Sterilization), Gender (Male, Female) –
Global Outlook & Forecast 2023-2031. May 5, 2023. https://www.growthplusreports.com/report/nonhormonal-birth-control-market/8914

20
Peebles K et al. High global burden and costs of bacterial vaginosis: a systematic review and meta-analysis. Sex Transm Dis.
2019;46(5):304-11. https://doi.org/10.1097/ OLQ.0000000000000972

21 World
Health Organization. Fact Sheet: Trichomoniasis. 21 November 2025. https://www.who.int/news-room/fact-sheets/detail/trichomoniasis#:~:text=Trichomoniasis%20is%20a%20common%20sexually,the%20Region%20of%20the%20Americas.

17

Rush
License Agreement

In
2014, the Company entered into an amended and restated license agreement (the Rush License Agreement) with Rush University Medical Center
(Rush University), pursuant to which Rush University granted the Company an exclusive, worldwide license of a patent and certain know-how
related to its vaginal pH modulator technology (US6706276, the Rush Patent). Pursuant to the Rush License Agreement, until the expiration
of the Rush Patent, the Company was obligated to pay Rush University an earned royalty during the patent term, calculated as a mid-single
digit percentage of PHEXX net sales (the Rush Royalty). In September 2020, the Company entered into the first amendment to the Rush License
Agreement, pursuant to which the Company agreed to pay a minimum annual royalty amount of $0.1 million to the extent the earned royalties
did not equal or exceed $0.1 million commencing January 1, 2021 until the expiration of the patent, including any granted Patent Term
Extensions (PTEs).

The
Rush Patent would have expired on March 6, 2021 (the Original Expiration Date) if no PTE was obtained. Rush University filed an
application for PTE in July 2020, which would extend the expiration date of the Rush Patent to March 6, 2026 if granted. Multiple
Orders Granting Interim Extension (OGIEs) were received from the U.S. Patent and Trademark Office (USPTO) while the PTE was under
evaluation. The last OGIE expired on March 6, 2025.

Because
the USPTO had granted multiple OGIEs to Rush University, between the date of the original PTE application (July 2020) and the final OGIE
expiration (March 2025), the Company determined it was probable that the PTE extending the expiration to March 6, 2026 would be granted.
Therefore, the Company accrued a total of $2.8 million related to the Rush Royalty as a contingent liability after the Original Expiration
Date in accordance with Accounting Standards Codification (ASC) 450, of which $0.9 million was paid in good faith and $1.9 million was unpaid and included in accrued expenses
in the consolidated balance sheet as of December 31, 2024.

During
the first quarter of 2025, the Company’s legal counsel ascertained that no further OGIEs were granted after March 6, 2025 and the
PTE had also still not been granted. As a result, the Company discontinued accruing the Rush Royalty since, based on the new information,
the Company deemed it remote that the PTE would ultimately be granted. Amounts previously accrued under the Rush License Agreement were
still being assessed at that time and as such, no adjustments were made.

Furthermore,
in August 2025 the FDA confirmed that the relevant active ingredient covered by the Rush Patent had previously been used in other FDA-approved
products and, as such, no PTE should be granted. On October 28, 2025, the USPTO issued a final decision officially denying
the PTE application (the Final PTE Decision). The Final PTE Decision also vacated all Interim Extensions ab initio. Based on the
Final PTE Decision, the Company and its legal counsel determined that the Rush Patent expired on the Original
Expiration Date and as such it is no longer probable that the Company will be required to pay any expenses related to the Rush Royalty
accrued after that date. The Company reversed the outstanding accrued Rush Royalty contingent liability of $1.9 million during the year
ended December 31, 2025. Because the gain was material to cost of goods sold, the amount was presented separately on the consolidated
statement of operations as a gain on change in accounting estimates on contingent royalty liability.

If
the Company determines to pursue a refund of the estimated royalties paid but not earned per its current analysis, it could potentially
receive a refund of $0.9 million from Rush University (the amount paid for royalties accrued after the Original Expiration Date). Conversely,
if Rush University pursues payment of the amounts accrued but not paid for the time covered by the OGIEs, the maximum liability that
the Company could incur is approximately $2.3 million. Based on the current analysis, the Company could have an additional gain of up
to $0.9 million or a loss of up to $2.3 million.

Our
vaginal pH modulator (PHEXX) remains protected in the U.S. by four Orange Book-listed patents which are solely-owned by Evofem.

Intellectual
Property

We
strive to protect the proprietary vaginal pH modulator gel technology both internationally and domestically. We seek and maintain patents
intended to cover PHEXX and its methods of use, as well as any other inventions that are commercially important to the development of
our business. We endeavor to properly file patent applications for new inventions we believe may have commercial value. We also may rely
on trade secrets to protect aspects of our business that are not amenable to, or that we do not consider appropriate for, patent protection.

Our
success will depend on our ability, in part: to obtain and maintain patent and other proprietary protection for commercially important
technology, inventions and know-how related to our business; to defend and enforce our patents and other intellectual property rights;
and to preserve the confidentiality of our trade secrets and operate without infringing the valid and enforceable patents and other proprietary
rights of third parties. We will also rely on continuing technological innovation and in-licensing opportunities to develop and maintain
our proprietary position.

18

Related
to PHEXX, as of February 28, 2026, we owned or had exclusive license to approximately 35 issued patents and allowed applications in the
U.S. and other countries and jurisdictions and had approximately six patent applications pending in the U.S. and other countries and
jurisdictions. This includes four U.S. patents which cover PHEXX and its labeled indication that are listed in the Orange Book:

●
U.S.
Patent No. 11,992,472: Method of use patent covering contraception using PHEXX

●
U.S.
Patent No. 11,337,989: Method of use patent covering contraception using PHEXX

●
U.S.
Patent No. 11,439,610: Composition of matter patent covering PHEXX

●
U.S.
Patent No. 10,568,855: Method of use patent covering contraception using PHEXX

We
solely own several patent families relating to the composition and therapeutic use of our vaginal pH modulator gel, which, upon issue,
would expire at the earliest in 2033. We believe that our solely owned non-hormonal contraceptive gel patents and pending
patent applications, combined with our substantial know-how in this field, will continue to provide opportunities for us to establish
a significant barrier to competitor entry into the market.

Related
to SOLOSEC, as of February 28, 2026, we owned or had exclusive license to approximately 20 issued patents and allowed applications in the
U.S. and other countries and jurisdictions, and had approximately four patent applications pending in the U.S. and other countries
and jurisdictions. This includes eleven U.S. patents which cover SOLOSEC and its labeled indications that are listed in the Orange Book:

●
U.S. Patent No. 12,280,037: Method of use patent covering SOLOSEC for the
treatment of trichomoniasis

●
U.S.
Patent No. 11,684,607: Composition of matter and method of use patent covering SOLOSEC and use thereof for the treatment of BV

●
U.S.
Patent No. 11,602,522: Composition of matter and method of use patent covering SOLOSEC and use thereof for the treatment of trichomoniasis

●
U.S.
Patent No. 11,324,721: Method of use patent covering SOLOSEC for the treatment of trichomoniasis

●
U.S.
Patent No. 11,020,377: Composition of matter patent covering SOLOSEC for the treatment of BV

●
U.S.
Patent No. 11,000,508: Method of use patent covering SOLOSEC for the treatment of trichomoniasis

●
U.S.
Patent No. 11,000,507: Method of use patent covering SOLOSEC for the treatment of BV

●
U.S.
Patent No. 10,857,133: Composition of matter and method of use patent covering SOLOSEC and use thereof for the treatment of BV

●
U.S.
Patent No. 10,849,884: Composition of matter and method of use patent covering SOLOSEC and use thereof for the treatment of BV and
trichomoniasis

●
U.S.
Patent No. 10,682,338: Method of use patent covering SOLOSEC for the treatment of BV

●
U.S.
Patent No. 10,335,390: Method of use patent covering SOLOSEC for the treatment of BV

In
addition to patents, we rely, and expect to rely, on trade secrets and know-how to develop and maintain our competitive positions. For
example, certain aspects of the composition, manufacturing, and use of PHEXX and SOLOSEC are protected by unpatented trade secrets and
know-how. Although trade secrets and know-how can be difficult to protect, we seek to protect our proprietary technology and processes,
in part, through confidentiality agreements with our employees, consultants, scientific advisors, collaborators, and contractors. We
also seek to preserve the integrity and confidentiality of our data and trade secrets by maintaining physical security of our premises
and physical and electronic security of our information technology systems. While we have confidence in these individuals, organizations
and systems, agreements or security measures may be breached and we may not have adequate remedies for these incidents. In addition,
our trade secrets and know-how may otherwise become known or may be independently discovered by competitors. To the extent our consultants,
contractors or collaborators use intellectual property owned by third parties in their work for us, disputes may arise as to the rights
in related or resulting intellectual property, including trade secret, know-how and inventions.

19

Trademark
Basics and Strategy

We
own or have rights to various trademarks, copyrights and trade names used in our business, including EVOFEM, PHEXX, SOLOSEC and FEMIDENCE.
All of our logos and trademarks appearing in this Annual Report are the property of Evofem Biosciences, Inc. All other third-party trademarks
appearing in this Annual Report are the property of their respective holders. Our use or display of other parties’ trademarks,
trade dress, or products in this Annual Report is not intended to, and does not, imply a relationship with, or endorsement or sponsorship
of us, by the trademark, trade dress, or product owner.

Government
Regulation and Product Approval

The
research, development, testing, manufacture, labeling, promotion, advertising, distribution, and marketing, among other things, of our
products are subject to extensive regulation by governmental authorities in the U.S. and other countries. The processes for obtaining
regulatory approvals in the U.S. and in foreign countries and jurisdictions, along with subsequent compliance with applicable statutes
and regulations and other regulatory requirements, require the expenditure of substantial time and financial resources.

In
the U.S., the FDA regulates drugs and other medical products under the Federal Food, Drug, and Cosmetic Act (FDCA) and its implementing
regulations. Failure to comply with the applicable U.S. requirements may subject us to administrative or judicial sanctions, such as
FDA refusal to approve pending New Drug Applications (NDAs), warning letters, product recalls, product seizures, total or partial suspension
of production or distribution, injunctions and/or criminal prosecution.

Post-Approval
Requirements in the U.S.

Following
approval of a new product or indication, the manufacturer and the approved product are subject to continuing regulation by the FDA, including,
among other things: monitoring and record-keeping activities, reporting of adverse experiences, and complying with promotion and advertising
requirements, which include restrictions on promoting approved drugs for unapproved uses or patient populations (known as “off-label
use”). Although physicians may prescribe legally available drugs for off-label uses, manufacturers may not market or promote such
uses. The FDA and other agencies actively enforce the laws and regulations prohibiting the promotion of off-label uses, and a company
that is found to have improperly promoted off-label uses may be subject to significant liability, including adverse publicity, enforcement
action by the FDA, corrective advertising, consent decrees and the full range of civil and criminal penalties available to the FDA. Prescription
drug promotional materials also must be submitted to the FDA in conjunction with their first use. Further, if there are any modifications
to the approved drug, including changes in indications, labeling, or manufacturing processes or facilities, the applicant may be required
to submit and obtain FDA approval of a new NDA or NDA supplement, which may require the applicant to develop additional data or conduct
additional preclinical studies or clinical trials.

Any
limitations on approval or marketing could restrict the commercial promotion, distribution, prescription or dispensing of products. Product
approvals may be withdrawn for non-compliance with regulatory standards or if problems occur while the product is on the market.

20

FDA
regulations require that products be manufactured in specific approved facilities and in accordance with cGMPs. The cGMP regulations
include requirements relating to organization of personnel, buildings and facilities, equipment, control of components and drug product
containers and closures, production and process controls, packaging and labeling controls, holding and distribution, laboratory controls,
records and reports and returned or salvaged products. The manufacturing facilities for any of our products must meet cGMP requirements
and satisfy the FDA or comparable foreign regulatory authorities’ satisfaction before it is approved and can be manufactured. Evofem
relies, and expects to continue to rely, on third parties for the production of commercial quantities of PHEXX and SOLOSEC in accordance
with cGMPs. These manufacturers must also comply with cGMPs that require, among other things, quality control and quality assurance,
the maintenance of records and documentation, and the obligation to investigate and correct any deviations from cGMP. Manufacturers and
other entities involved in the manufacture and distribution of approved drugs or combination products are required to register their
establishments with the FDA and certain state agencies, and are subject to periodic unannounced inspections by the FDA and certain state
agencies for compliance with cGMP requirements and other laws. Accordingly, manufacturers must continue to expend time, money, and effort
in the area of production and quality control to maintain cGMP compliance. The discovery of violative conditions, including failure to
conform to cGMPs, could result in enforcement actions, and the discovery of problems with a product after approval may result in restrictions
on a product, manufacturer, or holder of an approved NDA, including recall.

After
approval of a drug is granted, the FDA may withdraw the approval if compliance with regulatory requirements and standards is not maintained
or if problems occur after the product reaches the market. Later discovery of previously unknown problems with a product, including adverse
events of unanticipated severity or frequency, or with manufacturing processes, or failure to comply with regulatory requirements, may
result in mandatory revisions to the approved labeling to add new safety information, or imposition of additional post-market surveillance
or clinical trials to assess new safety risks. Other potential consequences include, among other things:

●
restrictions
on the marketing or manufacturing of the product, complete withdrawal of the product from the market or product recalls;

●
fines,
warning letters or other enforcement-related letters or clinical holds on investigational or post-approval clinical trials;

●
refusal
of the FDA to approve pending NDAs or supplements to approved NDAs, or suspension or revocation of product approvals;

●
product
seizure or detention, or refusal to permit the import or export of products;

●
injunctions
or the imposition of civil or criminal penalties; and

●
consent
decrees, corporate integrity agreements, debarment, or exclusion from federal health care programs; or mandated modification of promotional
materials and labeling and the issuance of corrective information.

In
addition, the distribution of prescription pharmaceutical products is subject to the Prescription Drug Marketing Act (PDMA), which regulates
the distribution of drugs and drug samples at the federal level and sets minimum standards for the registration and regulation of drug
distributors by the states. Both the PDMA and state laws limit the distribution of prescription pharmaceutical product samples and impose
requirements to ensure accountability in distribution. In 2013, the Drug Supply Chain Security Act (DSCSA) was enacted with the aim of
building an electronic system to identify and trace certain prescription drugs distributed in the U.S., including most biological products.
The DSCSA mandated obligations for pharmaceutical manufacturers, wholesale distributors, and dispensers were phased in over a 10-year
period and effective November 27, 2024, all authorized trading partners, including dispensers and manufacturers, are required to incorporate
serial numbers into their DSCSA processes, providing enhanced unit-level tracking.

From
time to time, new legislation and regulations may be implemented that could significantly change the statutory provisions governing the
approval, manufacturing and marketing of products regulated by the FDA. It is impossible to predict whether further legislative or regulatory
changes will be enacted, or FDA regulations, guidance or interpretations will be changed or what the impact of such changes, if any,
may be.

21

Hatch-Waxman
Act and Marketing Exclusivity

Under
the Drug Price Competition and Patent Term Restoration Act of 1984 (the Hatch-Waxman Amendments) to the Federal Food, Drug, and Cosmetic
Act (FDCA), Congress authorized the FDA to approve generic drugs that are the same as drugs previously approved by the FDA under the
NDA provisions of the statute and also enacted Section 505(b)(2) of the FDCA. To obtain approval of a generic drug, an applicant must
submit an abbreviated new drug application (ANDA), to the agency. In support of such applications, a generic manufacturer may rely on
the preclinical and clinical testing conducted for a drug product previously approved under an NDA, known as the reference listed drug
(RLD). Specifically, in order for an ANDA to be approved, the FDA must find that the generic version is identical to the RLD with respect
to the active ingredients, the route of administration, the dosage form, and the strength of the drug. In contrast, Section 505(b)(2)
permits the filing of an NDA where at least some of the information required for approval comes from studies not conducted by or for
the applicant and for which the applicant has not obtained a right of reference. A Section 505(b)(2) applicant may eliminate the need
to conduct certain preclinical or clinical studies, if it can establish that reliance on studies conducted for a previously-approved
product is scientifically appropriate. Unlike the ANDA pathway used by developers of bioequivalent versions of innovator drugs, which
does not allow applicants to submit new clinical data other than bioavailability or bioequivalence data, the 505(b)(2) regulatory pathway
does not preclude the possibility that a follow-on applicant would need to conduct additional clinical trials or nonclinical studies;
for example, they may be seeking approval to market a previously approved drug for new indications or for a new patient population that
would require new clinical data to demonstrate safety or effectiveness. The FDA may then approve the new product for all or some of the
label indications for which the RLD has been approved, or for any new indication sought by the Section 505(b)(2) applicant, as applicable.

Upon
approval of an NDA or a supplement thereto, NDA sponsors are required to list with the FDA each patent with claims that cover the applicant’s
product or an approved method of using the product. Each of the patents listed by the NDA sponsor is published in the Orange Book.
The Orange Book listing for the PHEXX vaginal gel NDA includes five patents covering the product’s composition of matter
and its method of use in prevention of pregnancy. The Orange Book listing for the SOLOSEC NDA includes ten patents covering the
product’s composition of matter and its methods of use in treatment of BV, trichomoniasis and sexually transmitted infection. Except
for patents covering methods of use for which the follow-on applicant is not seeking approval, the applicant is required to certify to
the FDA concerning any patents listed in the Orange Book for the RLD, when an ANDA applicant submits its application to the FDA.
To the extent the Section 505(b)(2) applicant is relying on studies conducted for an already approved product, such an applicant is also
required to certify to the FDA concerning any patents listed for the approved product in the Orange Book to the same extent that
an ANDA applicant would.

Specifically,
an ANDA or 505(b)(2) applicant for a follow-on drug product with respect to each patent must certify that: (i) the required patent information
has not been filed by the original applicant; (ii) the listed patent already has expired; (iii) the listed patent has not expired, but
will expire on a specified date and approval is sought after patent expiration; or (iv) the listed patent is invalid, unenforceable or
will not be infringed by the manufacture, use or sale of the new product.

If
a Paragraph I or II certification is filed, the FDA may make approval of the application effective immediately upon completion of its
review. If a Paragraph III certification is filed, the approval may be made effective on the patent expiration date specified in the
application, although a tentative approval may be issued before that time. If an application contains a Paragraph IV certification, a
series of events will be triggered, the outcome of which will determine the effective date of approval of the ANDA or 505(b)(2) application.

A
certification that the new product will not infringe the RLD’s listed patents or that such patents are invalid is called a Paragraph
IV certification. If the follow-on applicant has provided a Paragraph IV certification to the FDA, the applicant must also send notice
of the Paragraph IV certification to the NDA and patent holders for the RLD once the applicant’s NDA has been accepted for filing
by the FDA. The NDA and patent holders may then initiate a legal challenge to the Paragraph IV certification. The filing of a patent
infringement lawsuit within 45 days of their receipt of a Paragraph IV certification automatically prevents the FDA from approving the
ANDA or 505(b)(2) NDA until the earlier of 30 months after the receipt of the Paragraph IV notice, expiration of the patent or a decision
in the infringement case that is favorable to the ANDA or 505(b)(2) applicant. Alternatively, if the listed patent holder does not file
a patent infringement lawsuit within the required 45-day period, the follow-on applicant’s ANDA or 505(b)(2) NDA will not be subject
to the 30-month stay.

22

In
addition, under the Hatch-Waxman Amendments, the FDA may not approve an ANDA or 505(b)(2) NDA until any applicable period of non-patent
exclusivity for the referenced RLD has expired. These market exclusivity provisions under the FDCA also can delay the submission or the
approval of certain applications. The FDCA provides a five-year period of non-patent marketing exclusivity within the U.S. to the first
applicant to gain approval of an NDA for a drug containing a new chemical entity. A drug is a new chemical entity if the FDA has not
previously approved any other new drug containing the same active moiety, which is the molecule or ion responsible for the action of
the drug substance. During the exclusivity period, the FDA may not accept for review an ANDA or a 505(b)(2) NDA submitted by another
company for another version of such drug where the applicant does not own or have a legal right of reference to all the data required
for approval. However, an application may be submitted after four years if it contains a certification of patent invalidity or non-infringement.

The
FDCA also provides three years of marketing exclusivity for a NDA, 505(b)(2) NDA, or supplement to an existing NDA if new clinical investigations,
other than bioavailability studies, that were conducted or sponsored by the applicant are deemed by the FDA to be essential to the approval
of the application, for example, new indications, dosages or strengths of an existing drug. This three-year exclusivity covers only the
conditions of use associated with the new clinical investigations and does not prohibit the FDA from approving follow-on applications
for drugs containing the original active agent. Five-year and three-year exclusivity also will not delay the submission or approval of
a traditional NDA filed under Section 505(b)(1) of the FDCA. However, an applicant submitting a traditional NDA would be required to
either conduct or obtain a right of reference to all of the preclinical studies and adequate and well-controlled clinical trials necessary
to demonstrate safety and effectiveness.

The
three-year new product exclusivity for the PHEXX NDA expired on May 22, 2023. The product’s intellectual property currently includes
four U.S. patents which cover PHEXX and its labeled indication that are listed in the Orange Book; these patents are expected
to protect PHEXX into 2033.

SOLOSEC’s
intellectual property includes eleven U.S. patents which cover the product and its labeled indication that are listed in the Orange Book; these patents are expected to protect SOLOSEC into 2041. SOLOSEC is also protected by NCE-GAIN
Exclusivity until September 15, 2027.

Designation
of and Exclusivity for Qualified Infectious Disease Products

In
2012 as part of the Food Drug Administration Safety and Innovation Act, Congress passed legislation known as the Generating Antibiotic
Incentives Now Act (GAIN Act), which amended the FDCA to encourage the development of antibacterial and antifungal drug products that
treat pathogens that cause serious and life-threatening infections. The law grants an additional five years of marketing exclusivity
upon the approval of an NDA for a drug product previously designated by FDA as a Qualified Infectious Disease Product (QIDP). As a result,
if applicable to a designated QIDP, upon approval the periods of five-year new chemical entity exclusivity (NCE) and three-year new clinical
investigation exclusivity would become ten years and eight years, respectively.

A
QIDP is defined in the GAIN Act to mean “an antibacterial or antifungal drug for human use intended to treat serious or life-threatening
infections, including those caused by: (1) an antibacterial or antifungal resistant pathogen, including novel or emerging infectious
pathogens;” or (2) certain “qualifying pathogens.” A “qualifying pathogen” is a pathogen that has the potential
to pose a serious threat to public health (e.g., resistant gram positive pathogens, multi-drug resistant gram negative bacteria, multi-drug
resistant tuberculosis and Clostridium difficile) and that is included in a list established and maintained by FDA. A drug sponsor
may request FDA to designate its product as a QIDP any time before the submission of an NDA for that indication. FDA must make a QIDP
determination within 60 days of the designation request. A product designated as a QIDP may be granted priority review by FDA upon submission
and can also qualify for “Fast Track” status, described further below.

We
have received two QIDP designations from the FDA for EVO100 for the prevention of urogenital infection in women with both chlamydia and
gonorrhea and one for EVO200 for BV. SOLOSEC was designated a QIDP for the treatment of BV and was granted fast-track designation. SOLOSEC
is protected by NCE-GAIN Exclusivity until September 15, 2027.

Fast
Track and Priority Review Designations

The
FDA is authorized to designate certain products for expedited development or review if they are intended to address an unmet medical
need in the treatment of a serious or life-threatening disease or condition. These programs include Fast Track designation and priority
review designation.

23

To
be eligible for a Fast Track designation, the FDA must determine, based on the request of a sponsor, that a product is intended to treat
a serious or life-threatening disease or condition and demonstrates the potential to address an unmet medical need by providing a therapy
where none exists or a therapy that may be potentially superior to existing therapy based on efficacy or safety factors. Fast Track designation
provides opportunities for more frequent interactions with the FDA review team to expedite development and review of the product. The
FDA may also review sections of the NDA for a Fast Track product on a rolling basis before the complete application is submitted, if
the sponsor and the FDA agree on a schedule for the submission of the application sections, and the sponsor pays any required user fees
upon submission of the first section of the NDA. Fast Track designation may be withdrawn by the sponsor or rescinded by the FDA if the
designation is no longer supported by data emerging in the clinical trial process. A product candidate designated as a QIDP is eligible
for Fast Track designation under the provisions of the GAIN Act, but the NDA sponsor must specifically request Fast Track designation
from the agency as with non-infectious disease product candidates. Fast Track designation may be requested concurrent with or at any
time after the QIDP designation. In addition, although QIDP designation may be requested prior to submission of an Investigational New
Drug Application (IND), a request for Fast Track designation may only be made concurrently with, or any time after, submission of an
IND.

The
FDA also may designate a product for priority review if it is a drug or biologic that treats a serious condition and, if approved, would
provide a significant improvement in safety or effectiveness. The FDA determines at the time that the marketing application is submitted,
on a case- by-case basis, whether the proposed drug represents a significant improvement in treatment, prevention or diagnosis of disease
when compared with other available therapies. Significant improvement may be illustrated by evidence of increased effectiveness in the
treatment of a condition, elimination or substantial reduction of a treatment-limiting drug reaction, documented enhancement of patient
compliance that may lead to improvement in serious outcomes, or evidence of safety and effectiveness in a new subpopulation. A priority
review designation is intended to direct overall attention and resources to the evaluation of such applications, and to shorten the FDA’s
goal for acting on a marketing application from ten months to six months for an original new molecular entity NDA from the date of filing.
Although the FDA automatically gives priority review designation to the first application submitted for a specific drug product and indication
for which a QIDP designation was granted, a subsequent application from the same sponsor for the same product and indication will receive
priority review designation only if it otherwise meets the criteria for priority review.

Finally,
even if a product qualifies for one or more of these programs, the FDA may later decide that the product no longer meets the conditions
for qualification or decide that the time period for FDA review or approval will not be shortened. Furthermore, Fast Track designation
and priority review do not change the standards for approval and may not ultimately expedite the development or approval process.

We
have received two Fast Track designations from the FDA for EVO100 for the prevention of urogenital chlamydia and gonorrhea infection
in women.

Patent
Term Restoration in the U.S.

Depending
upon the timing, duration and specifics of FDA approval of our drug candidates, some of our U.S. patents may be eligible for limited
PTE under other provisions of the Hatch-Waxman Amendments. These PTEs permit a patent restoration term of up to five years as compensation
for any patent term lost during product development and the FDA regulatory review process. However, patent term restoration cannot extend
the remaining term of a patent beyond a total of 14 years from the product’s approval date. The patent term restoration period
is generally one-half the time between the effective date of an IND, and the submission date of an NDA, plus the time between the submission
date of an NDA and the approval of that application. Only one patent applicable to an approved drug is eligible for the extension, and
the extension must be applied for prior to expiration of the patent. The U.S. Patent and Trademark Office (USPTO) in consultation with
the FDA, reviews and approves the application for any PTE or restoration.

Other
U.S. Governmental Regulations and Environmental Matters

As
we have now established international contracts, we are subject to compliance with the U.S. Foreign Corrupt Practices Act of 1977, as
amended (the FCPA), which prohibits corporations and individuals from paying, offering to pay, or authorizing the payment of anything
of value to any foreign government official, government staff member, political party, or political candidate to obtain or retain business
or to otherwise influence a person working in an official capacity. We also may be implicated under the FCPA for activities by our partners,
collaborators, contract research organizations, vendors, or other agents.

24

While
enforcement of the FCPA was paused on February 10, 2025, following an executive order signed by President Trump, we continue to comply
with the FCPA, and the position held by the Department of Justice and other U.S. authorities that previously enforced the FCPA, which
collectively deem most health care professionals and other employees of foreign hospitals, clinics, research facilities and medical schools
in countries with public health care or public education systems to be “foreign officials” under the FCPA. If and when we
interact with foreign health care professionals and researchers in testing and marketing our products abroad, we have policies and procedures
in place sufficient to prevent us and agents acting on our behalf from providing any bribe, gift or gratuity, including excessive or
lavish meals, travel or entertainment in connection with marketing our products and services or securing required permits and approvals
such as those needed to initiate clinical trials in foreign jurisdictions. The FCPA also obligates companies whose securities are listed
in the U.S. to comply with accounting provisions requiring the maintenance of books and records that accurately and fairly reflect all
transactions of the corporation, including international subsidiaries, and the development and maintenance of an adequate system of internal
accounting controls for international operations.

Our
present and future business has been and will continue to be subject to various other laws and regulations. Various laws, regulations
and recommendations relating to safe working conditions, laboratory practices, the experimental use of animals, and the purchase, storage,
movement, import and export and use and disposal of hazardous or potentially hazardous substances used in connection with our research
work are or may be applicable to our activities. Certain agreements involving exclusive license rights, if any, or acquisitions, if any,
may be subject to national or supranational antitrust regulatory control, the effect of which cannot be predicted. The extent of government
regulation, which might result from future legislation or administrative action, cannot accurately be predicted.

Review
and Approval of Drug Products in the European Union

In
addition to regulations in the U.S., we are and will be subject, either directly or through our distribution partners, to a variety of
regulations in other jurisdictions governing, among other things, clinical trials and future commercial sales and distribution of our
products, if approved in those markets.

We
must obtain the requisite approvals from regulatory authorities in non-U.S. countries prior to the commencement of clinical trials or
marketing of a product in those countries. Moreover, the time required to obtain approval in other countries and jurisdictions might
differ from and be longer than that required to obtain FDA approval. Regulatory approval in one country or jurisdiction does not ensure
regulatory approval in another, but a failure or delay in obtaining regulatory approval in one country or jurisdiction may negatively
impact the regulatory process in others.

As
of January 31, 2020, the United Kingdom (UK) is no longer a member state of the European Union (EU), and therefore a separate marketing
authorization application (MAA) and approval will be required to market a medicinal product in the UK.

We
are assessing the optimal regulatory legal basis for the PHEXX and SOLOSEC MAAs in the EU and the UK. As in the U.S., medicinal products
can be marketed in the EU only if a marketing authorization from the competent regulatory agencies has been obtained. Similar to the
U.S., the various phases of preclinical and clinical research in the EU are subject to significant regulatory controls.

25

Pursuant
to the European Clinical Trials Directive, a system for the approval of clinical trials in the EU has been implemented through
national legislation of the member states. Under this system, an applicant must obtain approval from the competent national
authority of an EU member state in which the clinical trial is to be conducted. Furthermore, the applicant may only start a clinical
trial after a competent ethics committee has issued a favorable opinion. Since January 31, 2022, clinical trial applications must be
accompanied by an investigational medicinal product dossier with supporting information prescribed by the Clinical Trials
Regulation, Regulation EU No 536/2014 (Clinical Trials Regulation) and corresponding national laws of the member states and further
detailed in applicable guidance documents.

The
new Clinical Trials Regulation aims to simplify and streamline the approval of clinical trials in the EU. The main characteristics of
the regulation include: a streamlined application procedure via a single entry point; a single set of documents to be prepared and submitted
for the application as well as simplified reporting procedures for clinical trial sponsors; and a harmonized procedure for the assessment
of applications for clinical trials, which is divided in two parts. Part I is assessed by the competent authorities of all EU member
states in which an application for authorization of a clinical trial has been submitted. Part II is assessed separately by each EU member
state concerned. Strict deadlines have been established for the assessment of clinical trial applications. The role of the relevant ethics
committees in the assessment procedure will continue to be governed by the national law of the concerned EU member state. However, overall
related timelines will be defined by the Clinical Trials Regulation.

To
obtain marketing approval of a drug in the EU, an applicant must submit an MAA either under a centralized or decentralized procedure.
The centralized procedure provides for the grant of a single marketing authorization by the European Commission that is valid for all
EU member states, Iceland, Lichtenstein, and Norway. The centralized procedure is compulsory for specific products, including for medicines
produced by certain biotechnological processes, products designated as orphan medicinal products, advanced therapy products (such as
gene-therapy, somatic cell-therapy or tissue-engineered medicines) and products with a new active substance indicated for the treatment
of certain diseases. For products with a new active substance indicated for the treatment of certain diseases and products that are highly
innovative or for which a centralized process is in the interest of patients, the centralized procedure may be optional. Under the centralized
procedure the maximum timeframe for the evaluation of an MAA by the EMA is 210 days, excluding clock stops, when additional written or
oral information is to be provided by the applicant in response to questions asked by the Committee for Medicinal Products for Human
Use (CHMP). Accelerated assessment might be granted by the CHMP in exceptional cases, when a medicinal product is expected to be of a
major public health interest, particularly from the point of view of therapeutic innovation. The timeframe for the evaluation of an MAA
under the accelerated assessment procedure is 150 days, excluding stop-clocks.

The
decentralized procedure is available to applicants who wish to market a product in specific EU member states where such product has not
received marketing approval in any EU member states before. The decentralized procedure provides for an applicant to apply to one-member
state to assess the application (the reference member state) and specifically list other member states in which it wishes to obtain approval
(concerned member states). Under this procedure, an applicant submits an application based on identical dossiers and related materials,
including a draft summary of product characteristics, and draft labeling and package leaflet, to the reference member state and each
concerned member state. The reference member state prepares a draft assessment report and drafts of the related materials within 210
days after receipt of a valid application which is then reviewed and approved commented on by the concerned member states. Within 90
days of receiving the reference member state’s assessment report and related materials, each concerned member state must decide
whether to approve the assessment report and related materials.

26

In
the EU, only products for which marketing authorizations have been granted may be promoted. A marketing authorization is valid for five
years in principle and the marketing authorization may be renewed after five years on the basis of a re-evaluation of the risk-benefit
balance by the EMA or by the competent authority of the authorizing member state. To this end, the marketing authorization holder must
provide the EMA or the competent authority with a consolidated version of the file in respect of quality, safety, and efficacy, including
all variations introduced since the marketing authorization was granted, at least six months before the marketing authorization ceases
to be valid. Once renewed, the marketing authorization is valid for an unlimited period, unless the European Commission or the competent
authority decides, on justified grounds relating to pharmacovigilance, to proceed with one additional five-year renewal. Any authorization
which is not followed by the actual placing of the drug on the EU market (in case of centralized procedure) or on the market of the authorizing
member state within three years after authorization ceases to be valid (the so-called sunset clause). Even if authorized to be marketed
in the EU, prescription-only medicines may only be promoted to health care professionals, not the general public. All promotion should
be in accordance with the particulars listed in the summary of product characteristics. Promotional materials must also comply with various
laws, and codes of conduct developed by pharmaceutical industry bodies in the EU which govern (among other things) the training of sales
staff, promotional claims and their justification, comparative advertising, misleading advertising, endorsements, and (where permitted)
advertising to the general public. Failure to comply with these requirements could lead to the imposition of penalties by the competent
authorities of the EU member states. The penalties could include warnings, orders to discontinue the promotion of the drug product, seizure
of promotional materials, fines, and possible imprisonment.

EU
Regulatory Exclusivity

In
the EU, new products authorized for marketing (i.e., reference products) qualify for eight years of data exclusivity and an additional
two years of market exclusivity upon marketing authorization. The data exclusivity period prevents generic applicants from relying on
the pre-clinical and clinical trial data contained in the dossier of the reference product when applying for a generic marketing authorization
in the EU during a period of eight years from the date on which the reference product was first authorized in the EU. The market exclusivity
period prevents a successful generic applicant from commercializing its product in the EU until ten years have elapsed from the initial
authorization of the reference product in the EU. The ten-year market exclusivity period can be extended to a maximum of eleven years
if, during the first eight years of those ten years, the marketing authorization holder obtains an authorization for one or more new
therapeutic indications which, during the scientific evaluation prior to their authorization, are held to bring a significant clinical
benefit in comparison with existing therapies.

Rest
of the World Regulation

For
other countries outside of the EU and the U.S., including as countries in the GCC, Eastern Europe, Latin America, Asia, and Africa, the requirements
governing the conduct of clinical trials, product licensing, pricing and reimbursement vary from jurisdiction to jurisdiction. Additionally,
the clinical trials must be conducted in accordance with cGCP requirements and the applicable regulatory requirements and the ethical
principles that have their origin in the Declaration of Helsinki.

Other
U.S. Health Care Laws and Regulations

We
must comply with various U.S. federal and state laws, rules and regulations pertaining to health care fraud and abuse, including anti-kickback
laws. HCPs and third-party payers play a primary role in the recommendation and prescription of drug products and medical devices. Our
current and future arrangements with health care professionals, principal investigators, consultants, third-party payers and customers
may expose us to broadly applicable fraud and abuse and other health care laws and regulations. Such restrictions under applicable federal
and state health care laws and regulations, include but are not limited to the following:

Anti-Kickback
Statute – the Federal Anti-Kickback Statute, among other things, prohibits persons from knowingly and willfully soliciting,
offering, receiving, or providing remuneration, directly or indirectly, in cash or in kind, to induce or reward either the referral of
an individual for, or the purchase, order or recommendation of, any good or service for which payment may be made under federally funded
health care programs such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the statute or specific
intent to violate the statute in order to have committed a violation. In addition, the government may assert that a claim that includes
items or services resulting from a violation of the Federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes
of the False Claims Act.

Civil
and Criminal False Claims Laws – the federal civil and criminal false claims laws, including the federal False Claims Act,
which can be enforced by private citizens through civil whistleblower or qui tam actions, prohibit, among other things, individuals
or entities from knowingly presenting, or causing to be presented, to the federal government, claims for payment that are false or fraudulent
or making a false statement to avoid, decrease or conceal an obligation to pay money to the federal government.

27

Health
Insurance Portability and Accountability Act of 1996 – the federal Health Insurance Portability and Accountability Act
of 1996 (HIPAA) prohibits, among other things, individuals or entities from executing a scheme to defraud any health care benefit program
or making any false statements relating to health care matters; as in the case of the Federal Anti-Kickback Statute, a person or entity
does not need to have actual knowledge of the statute or specific intent to violate the statute in order to have committed a violation.
Additionally, HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH), and its implementing
regulations impose certain obligations, including mandatory contractual terms, with respect to safeguarding the privacy, security and
transmission of individually identifiable health information without appropriate authorization, on entities subject to the law, such
as certain HCPs, health plans, and health care clearinghouses and their respective business associates that perform services for them
that involve the creation, use, maintenance or disclosure of, individually identifiable health information.

False
Statements Statute – the federal False Statements Statutes prohibits knowingly and willfully falsifying, concealing, or
covering up a material fact or making any materially false statement to the federal government, including executive or administrative
agencies.

Sunshine
Act – the federal transparency or “sunshine” requirements of the ACA requires certain manufacturers of drugs,
devices, biologics, and medical supplies to annually report to the Department of Health and Human Services (the DHHS) information related
to payments and other transfers of value made to physicians, teaching hospitals and certain advanced non-physician health care practitioners,
as well as ownership and investment interests held by physicians and their immediate family members.

State
Transparency Laws – some U.S. state laws require pharmaceutical companies to comply with the pharmaceutical industry’s
voluntary compliance guidelines and the relevant compliance guidance promulgated by the federal government in addition to requiring drug
manufacturers to report information related to payments to HCPs and other HCPs or marketing expenditures; some state laws require pharmaceutical
companies to implement compliance programs and to track and report gifts, compensation and other remuneration provided to physicians,
in addition to requiring drug manufacturers to report information related to payments to physicians and other HCPs or marketing expenditures
and pricing information; and some state and local laws require the registration of pharmaceutical sales representatives.

State
and Foreign Regulatory Concerns – there are analogous State and foreign laws and regulations, such as State Anti-Kickback
and False Claims laws, which may apply to sales or marketing arrangements and claims involving health care items or services reimbursed
by non-governmental third-party payers, including private insurers. State and foreign laws also govern the privacy and security of health
and personal information. These laws differ from each other in significant ways and may conflict, while applying simultaneously with
HIPAA, thus complicating compliance efforts.

The
scope and enforcement of these laws is uncertain and subject to rapid change. Notably, in November 2020, DHHS finalized significant changes
to the regulations implementing the Anti-Kickback Statute, as well as the civil monetary penalty rules regarding beneficiary inducements,
with the goal of offering the health care industry more flexibility and reducing the regulatory burden associated with those fraud and
abuse laws, particularly with respect to value-based arrangements among industry participants. Regulatory authorities might challenge
our current or future activities under these laws, regulations, and safe harbors. Any such challenge could have a material adverse effect
on our reputation, business, results of operations and financial condition. In addition, efforts to ensure that our business arrangements
with third parties will comply with these laws will involve substantial costs. Any investigation of us or the third parties with whom
we contract, regardless of the outcome, would be costly and time consuming. If our operations are found to be in violation of any of
these laws or any other governmental regulations that may apply to us, we may be subject to significant civil, criminal and administrative
penalties, including, without limitation, damages, monetary fines, imprisonment, disgorgement of profits, possible exclusion from participation
in Medicare, Medicaid and other federal health care programs, debarment under the FDCA, additional reporting or oversight obligations
if we become subject to a corporate integrity agreement or other agreement to resolve allegations of non-compliance with the law, contractual
damages, reputational harm, diminished profits and future earnings, and curtailment or restructuring of our operations.

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Health
Care Reform and Potential Changes to Laws and Regulations

In
the U.S. and some foreign jurisdictions, there have been, and continue to be, legislative and regulatory changes both enacted and proposed
related to the health care system, which could prevent or delay marketing approval of our products, restrict or regulate post-approval
activities, and affect our ability to profitably sell our current products or any other approved product we may seek to commercialize.
In particular, the FDA’s and other regulatory authorities’ policies may change and additional government regulations may
be enacted. For example, in December 2016, the 21st Century Cures Act (Cures Act), was passed by Congress and signed into law. The Cures
Act, among other things, is intended to modernize the regulation of drugs and devices and to spur innovation, but its ultimate implementation
is uncertain. In addition, in August 2017, the FDA Reauthorization Act was signed into law, which reauthorized the FDA’s user fee
programs and included additional drug and device provisions that build on the Cures Act. A subsequent FDA reauthorization package was
finalized by Congress on September 30, 2022; several other FDA-related changes have been proposed in Congress, including several within
the “Cures 2.0” bill. While the bill as a whole has not passed, some components have been signed into law through various
other legislative vehicles or otherwise addressed by executive action.

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 otherwise may have obtained and we may not achieve
or sustain profitability, which would adversely affect our business, prospects, financial condition, and results of operations.

Among
policy makers and payers in the U.S. and elsewhere, there is significant interest in promoting changes in health care systems with the
stated goals of containing health care costs, improving quality and/or expanding access. In the U.S., the pharmaceutical industry has
been a particular focus of these efforts and has been significantly affected by major legislative initiatives. For example, in March
2010, the ACA was enacted, which, among other things, increased the minimum Medicaid rebates owed by most manufacturers under the Medicaid
Drug Rebate Program; introduced a new methodology by which rebates owed by manufacturers under the Medicaid Drug Rebate Program are calculated
for drugs that are inhaled, infused, instilled, implanted or injected; extended the Medicaid Drug Rebate Program to utilization of prescriptions
of individuals enrolled in Medicaid managed care plans; imposed mandatory discounts for certain Medicare Part D beneficiaries as a condition
for manufacturers’ outpatient drugs coverage under Medicare Part D; and established a Center for Medicare Innovation at the U.S.
Centers for Medicare and Medicaid Services (CMS) to test innovative payment and service delivery models to lower Medicare and Medicaid
spending. As another example, the 2021 Consolidated Appropriations Act, signed into law on December 27, 2020, incorporated extensive
health care provisions and amendments to existing laws, including a requirement that all manufacturers of drug products covered under
Medicare Part B report the product’s average sales price (ASP) to DHHS beginning on January 1, 2022, subject to enforcement via
civil money penalties.

Since
its enactment, there have been judicial and congressional challenges to certain aspects of the ACA, and as a result certain sections
of the ACA have not been fully implemented or effectively repealed. However, following several years of litigation in the federal courts,
in June 2021, the U.S. Supreme Court upheld the ACA when it dismissed a legal challenge to the ACA’s constitutionality. Further
legislative and regulatory changes under the ACA remain possible. It is unknown what form any such changes or any law would take, and
how or whether it may affect the pharmaceutical industry as a whole or our business in the future. We expect that changes or additions
to the ACA, the Medicare and Medicaid programs, such as changes allowing the federal government to directly negotiate drug prices, and
changes stemming from other health care reform measures, especially with regard to health care access, financing or other legislation
in individual states, could have a material adverse effect on the health care industry in the U.S.

Other
legislative changes have been proposed and adopted since the ACA was enacted. These changes include aggregate reductions to Medicare
payments to providers of up to 2% per fiscal year pursuant to the Budget Control Act of 2011, which began in 2013 and will remain in
effect through 2030 unless additional congressional action is taken. The Coronavirus Aid, Relief, and Economic Security Act (the CARES
Act), which was signed into law on March 27, 2020, and was designed to provide financial support and resources to individuals and businesses
affected by the COVID-19 pandemic, suspended the 2% Medicare sequester from May 1, 2020 through December 31, 2020, and extended the sequester
by one year, through 2030, in order to offset the added expense of the 2020 cancellation. The suspension was subsequently extended through
March 31, 2022, with a reduction of the suspension to 1% sequester through June 30, 2022. The suspension was lifted in steps during 2022
and for 2023, the 2% sequester rate established on July 1, 2022 was in effect for the entire year.

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As
another example, on December 20, 2019, the Further Consolidated Appropriations Act for 2020 was signed into law (P.L. 116-94), which
includes a piece of bipartisan legislation called the Creating and Restoring Equal Access to Equivalent Samples Act of 2019 (the CREATES
Act). The CREATES Act aims to address the concern articulated by both the FDA and others in the industry that some brand manufacturers
have improperly restricted the distribution of their products to deny generic product developers access to samples of brand products.
Because generic product developers need samples to conduct certain comparative testing required by the FDA, some have attributed the
inability to timely obtain samples as a cause of delay in the entry of generic products. To remedy this concern, the CREATES Act establishes
a private cause of action that permits a generic product developer to sue the brand manufacturer to compel it to furnish the necessary
samples on “commercially reasonable, market-based terms.” Whether and how generic product developers will use this new pathway,
as well as the likely outcome of any legal challenges to provisions of the CREATES Act, remain highly uncertain and its potential effects
on our future commercial products are unknown. Other new laws may result in additional reductions in Medicare and other health care funding,
which could have an adverse effect on customers for our approved product and, accordingly, our financial operations.

Additionally,
there has been heightened governmental scrutiny in the U.S. of manufacturers’ pharmaceutical pricing practices in light of the
rising cost of prescription drugs and biologics. Such scrutiny has resulted in several congressional inquiries and proposed and enacted
federal and state legislation designed to, among other things, bring more transparency to product pricing, review the relationship between
pricing and manufacturer patient programs, and reform government program reimbursement methodologies for products. DHHS has solicited
feedback on various measures intended to lower drug prices and reduce the out-of-pocket costs of drugs and has implemented others under
its existing authority. For example, in 2020, the FDA finalized a rulemaking to establish a system whereby state governmental entities
could lawfully import and distribute prescription drugs sourced from Canada. More recently, in July 2021, then- President Biden issued
a sweeping executive order on promoting competition in the American economy that includes several mandates pertaining to the pharmaceutical
and health care insurance industries. Among other things, the executive order directs the FDA to work towards implementing a system for
importing drugs from Canada (following on the first Trump Administration notice-and-comment rulemaking on Canadian drug importation which
was finalized in October 2020). The Biden order also called on DHHS to release a comprehensive plan to combat high prescription drug
prices, and it includes several directives regarding the Federal Trade Commission’s oversight of potentially anticompetitive practices
within the pharmaceutical industry. The drug pricing plan released by DHHS in September 2021 in response to the executive order makes
clear that the former Biden Administration supported aggressive action to address rising drug prices, including allowing DHHS to negotiate
the cost of Medicare Part B and D drugs, but such significant changes will require either new legislation to be passed by Congress or
time-consuming administrative actions. Additionally, the former Biden administration announced new lower prices, to be in effect beginning
in 2026, for the first ten drugs selected for Medicare price negotiation in August 2024. The future of these executive orders and prior
Administration actions is unclear under the current Trump Administration.

Coverage,
Pricing, and Reimbursement

Sales
of Evofem’s products approved for marketing by the FDA and foreign regulatory authorities depend, in part, on the extent to which
such products will be covered by third-party payers, such as government health programs, commercial insurance and managed care organizations.
In the U.S., no uniform policy of coverage and reimbursement for drug or biological products exists. Accordingly, decisions regarding
the extent of coverage and amount of reimbursement to be provided for any of Evofem’s FDA-approved products will be made on a payer-by-payer
basis. Prescriptions generated through the telehealth platform may be subject to additional payer requirements. As a result, the coverage
determination process is often a time-consuming and costly process that will require us to provide scientific and clinical support for
the use of our approved products to each payer separately, with no assurance that coverage and adequate reimbursement will be obtained.

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The
U.S. government, state legislatures and foreign governments have shown significant interest in implementing cost containment programs
to limit the growth of government-paid health care costs, including price-controls, restrictions on reimbursement and requirements for
substitution of generic products for branded prescription drugs. For example, the ACA contains provisions that may reduce the profitability
of drug products through increased rebates for drugs reimbursed by Medicaid programs, extension of Medicaid rebates to Medicaid managed
care plans, and mandatory discounts for certain Medicare Part D beneficiaries and annual fees based on pharmaceutical companies’
share of sales to federal health care programs. Adoption of general controls and measures, coupled with the tightening of restrictive
policies in jurisdictions with existing controls and measures, could limit payments for pharmaceutical drugs. The Medicaid Drug Rebate
Program requires pharmaceutical manufacturers to enter into and have in effect a national rebate agreement with the Secretary of the
DHHS as a condition for states to receive federal matching funds for the manufacturer’s outpatient drugs furnished to Medicaid
patients. The ACA made several changes to the Medicaid Drug Rebate Program, including increasing pharmaceutical manufacturers’
rebate liability by raising the minimum basic Medicaid rebate on most branded prescription drugs from 15.1% of average manufacturer price
(AMP), to 23.1% of AMP and adding a new rebate calculation for “line extensions” (i.e., new formulations, such as extended
release formulations) of solid oral dosage forms of branded products, as well as potentially impacting their rebate liability by modifying
the statutory definition of AMP. The ACA also expanded the universe of Medicaid utilization subject to drug rebates by requiring pharmaceutical
manufacturers to pay rebates on Medicaid managed care utilization and by enlarging the population potentially eligible for Medicaid drug
benefits. Congress has expressed its intention to repeal or repeal and replace the ACA. If that is done, many if not all of the provisions
of the ACA may no longer apply to prescription drugs.

The
marketability of any products for which Evofem has or will receive regulatory approval for commercial sale may suffer if the government
and third-party payers fail to provide adequate coverage and reimbursement. Emphasis on cost containment measures in the U.S. has increased,
and Evofem expects will continue to increase, the pressure on pharmaceutical pricing. Coverage policies and third-party reimbursement
rates may change at any time. Even if favorable coverage and reimbursement status is attained for one or more products for which we receive
regulatory approval, less favorable coverage policies and reimbursement rates may be implemented in the future.

In
addition, in most foreign countries, the proposed pricing for a drug must be approved before it may be lawfully marketed. The requirements
governing drug pricing and reimbursement vary widely from country to country. Some countries provide that drug products may be marketed
only after a reimbursement price has been agreed. Some countries may require the completion of additional studies that compare the cost-effectiveness
of PHEXX or SOLOSEC to currently available therapies (so called health technology assessment) in order to obtain reimbursement or pricing
approval. For example, the EU provides options for its member states to restrict the range of medicinal products for which their national
health insurance systems provide reimbursement and to control the prices of medicinal products for human use. A member state may approve
a specific price for the medicinal product, or it may instead adopt a system of direct or indirect controls on the profitability of the
company placing the medicinal product on the market. There can be no assurance that any country that has price controls or reimbursement
limitations for pharmaceutical products will allow favorable reimbursement and pricing arrangements for any of Evofem’s approved
drug products. Historically, products launched in the EU do not follow price structures of the U.S. and generally prices tend to be significantly
lower.

Corporate
Information

Our
corporate headquarters are located at 7770 Regents Rd, Suite 113-618, San Diego, CA 92122-1967, and our telephone number is (858) 550-1900.
Our website is located at www.evofem.com. Our Annual Report, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments
to reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act) will be made
available free of charge on our website as soon as reasonably practicable after we electronically file these materials with, or furnish
it to, the Securities and Exchange Commission (SEC) on their website located at www.sec.gov. The contents of our website are not incorporated
into this Annual Report, and our reference to the URL for our website is intended to be an inactive textual reference only. The information
contained on, or that can be accessed through, our website is not a part of this Annual Report.

Employees

As
of February 28, 2026, we had a total of 29 full-time employees. We also engage consultants and contract workers on an as-needed basis.
We believe that relations with our employees and consultants are good.

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