Failure to Satisfy Listing Rule Form 8 K

Item 2.05 Costs Associated With Exit or Disposal Activities.

As previously disclosed, on October 10, 2024, Gritstone bio, Inc. (the "Company") filed a voluntary petition for relief (the "Chapter 11 Case") under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

On October 16, 2024, the Company announced the termination or separation of approximately 25 employees, effective November 15, 2024, representing an approximate 19% reduction in force to maintain an organization of approximately 101 employees to continue operations in connection with the Chapter 11 Case.

In connection with the reduction in force effective November 15, 2024, the impacted employees will be provided all earned wages and salary, all earned but unused paid time off, and a severance payment that is equal to 30 days of employment. The Company expects to record a one-time charge of approximately $0.3 million related to the reduction in its workforce, consistent primarily of one-time severance payments upon termination of the employees. The Company expects that the majority of these charges will be incurred in the fourth quarter of 2024.