Arcturus Therapeutics Announces First Quarter 2023 Financial Update and Pipeline Progress New Drug Application (NDA) for ARCT-154, a next generation COVID-19 vaccine, was submitted in Japan, leading to potential approval

Arcturus Therapeutics Announces First Quarter

2023 Financial Update and Pipeline Progress

New Drug Application (NDA) for ARCT-154,

a next generation COVID-19 vaccine, was submitted in Japan, leading to potential approval in 2023

$23.6 Million advanced for the

manufacturing and supply of ARCT-154

ARCT-032 Phase 1 enrollment and administration

completed successfully; trial expansion to include Cystic Fibrosis patients planned in third quarter

Investor conference call at 4:30 p.m. ET today

SAN DIEGO--May 9, 2023-- Arcturus Therapeutics

Holdings Inc. (the "Company", "Arcturus", Nasdaq: ARCT), a global late-stage clinical messenger RNA medicines

company focused on the development of infectious disease vaccines and opportunities within liver and respiratory rare diseases, today

announced its financial results for the first quarter ended March 31, 2023, and provided corporate updates.

pleased to announce the first NDA submission for the COVID-19 vaccine, ARCT-154, in Japan by Meiji Seika Pharma Co., Ltd., leading to

potential approval later this year. ARCT-154 has the potential to offer effective and longer-lasting protection against COVID-19. We believe

this meaningful milestone is indicative of the broader platform opportunity for our mRNA medicine technologies to result in novel vaccines

and therapeutics over the coming years," said Joseph Payne, President & CEO of Arcturus Therapeutics. "We have also made

meaningful operational and pipeline progress across several clinical and pre-clinical mRNA therapeutic programs with the completion of

enrollment of a Phase 3 study evaluating the safety and immunogenicity of ARCT-154 as a booster against COVID-19 conducted by Meiji Seika

Pharma in Japan, with interim results expected later this quarter."

In April 2023 we received an advance

payment of $23.6 million for the manufacturing and supply of ARCT-154 from CSL Seqirus. The advance payment was for specified manufacturing

runs of ARCT-154 which includes the drug substance utilized, as well as the reservation fees and related manufacturing requirements.

"As we mentioned on the year end conference

call last month, we took a number of positive steps to improve our balance sheet this quarter with the elimination of $34 million in principal

and accrued interest on the Singapore Loan," stated Andrew Sassine, Chief Financial Officer of Arcturus Therapeutics. "On

March 31, 2023, we have no long-term debt on our balance sheet and current assets increased by $21 million sequentially due to $90 million

in accounts receivable from CSL Seqirus which is expected to be collected during the second quarter of 2023. Consequently, I am happy

to report that our cash runway continues to extend into the beginning of 2026 assuming no changes to our clinical programs and expected

development milestones and do not include any expectations of commercial milestones or revenues."

Recent Corporate Highlights

Financial Results for the First Quarter Ended March 31, 2023

Revenues in conjunction with strategic alliances

Arcturus' primary sources of revenues were

from license fees, consulting and related technology transfer fees, reservation fees and collaborative payments received from research

and development arrangements with pharmaceutical and biotechnology partners. Total revenue for the three months ended March 31, 2023,

was $80.3 million, compared with $5.2 million for the three months ended March 31, 2022. The increase in revenue is primarily attributable

to an increase in revenue of $78.2 million related to the agreement with CSL Seqirus and the associated milestones achieved in the first

Total operating expenses for the three months

ended March 31, 2023, were $65.5 million compared with $55.6 million for the three months ended March 31, 2022.

Research and development expenses:

Research and development expense was $51.8 million

for the three months ended March 31, 2023, compared with $44.9 million in the comparable period last year, primarily reflecting increased

manufacturing costs of $5.7 million, an increase of $2.3 million in personnel related expenses, an increase of travel and consulting expenses

of $0.9 million, and increase in facility expenses of $0.7 million. The increases were offset by a decrease in clinical-related expenses

of $4.4 million. We expect that our research and development efforts and associated costs will increase and continue to be substantial

over the next several years as our pipeline progresses. Facilities and equipment expenses continue to increase as we expand. The

three months ended March 31, 2023, includes increased rent and associated costs related to a new facility we took possession of in April

2022. Facilities and equipment expenses are expected to increase in the near term due to increased rent expenses related to our three

General and Administrative Expenses:

General and administrative expenses were $13.8

million for the three months ended March 31, 2023, compared with $10.7 million in the comparable period last year. The increase resulted

primarily from personnel expenses due to increased headcount and salaries, increased travel and consulting expenses as well as increased

rent expense associated with the new facility.

Net Income and other income and expense:

For the three months ended March 31, 2023, Arcturus

reported net income of approximately $50.8 million, or $1.87 per diluted share, compared with a net loss of $51.2 million, or ($1.94)

per diluted share in the three months ended March 31, 2022, and net income of $117.3 million, or $4.33 per diluted share in the three

months ended December 31, 2022. We recorded a gain on debt extinguishment related to the Singapore Loan of $34.0 million during the three

months ended March 31, 2023. Additionally, we reported net interest income of $2.5 million for the three months ended March 31, 2023.

Cash Position and Balance Sheet:

Cash, cash equivalents and restricted cash were

$330.1 million as of March 31, 2023, $394.0 million on December 31, 2022, and $321.8 million on March 31, 2022. Additionally, we expect

to collect $90.0 million in the second quarter of 2023, associated with the CSL Seqirus milestones which are in accounts receivable on

March 31, 2023. In April we received $23.6 million related to the manufacturing and supply of ARCT-154 from CSL Seqirus. The cash

runway remains extended through the beginning of 2026 based on the current pipeline and programs.

Tuesday, May 9, 2023 @ 4:30 p.m. ET

Forward Looking Statements

This press release contains forward-looking statements

that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform

Act of 1995. Any statements, other than statements of historical fact included in this press release, are forward-looking statements,

including those regarding strategy, future operations, the likelihood of success of the Company's pipeline (including ARCT-032 and

ARCT-810) and partnered programs (including the COVID-19 and flu programs partnered with CSL Seqirus), the potential of ARCT-154 to offer

effective or long-lasting protection against COVID-19 disease, the potential for the Company's platform to result in novel vaccines

or therapeutics, the anticipated timing and sharing of Phase 3 pivotal ARCT-154 results and data, the planned production of ARCT-154 doses,

the likelihood and timing of regulatory approvals or orders for, or commercialization of, ARCT-154 in Japan or anywhere else, the planned

submissions to regulatory authorities relating to ARCT-154 including interim data, the anticipated enrollment of the ARCT-810 Phase 2

study, the anticipated sharing of interim Phase 2 data for ARCT-810, the anticipated expansion of the ARCT-032 study to allow the dosing

of patients with CF and its anticipated enrollment, the potential of the LUNAR-HBV program, the likelihood of success of the collaboration

with CSL Seqirus or any collaborations including the achievement of any milestones or other payments, the initiation or completion of

any clinical trial, the likelihood that preclinical or clinical data will be predictive of future clinical results, the timing and nature

of any study results, the likelihood that a patent will issue from any patent application, the likelihood or timing of collection of accounts

receivables including expected payments from CSL Seqirus, its current cash position and expected cash burn and the impact of general business

and economic conditions. Arcturus may not actually achieve the plans, carry out the intentions or meet the expectations or projections

disclosed in any forward-looking statements such as the foregoing and you should not place undue reliance on such forward-looking statements.

These statements are only current predictions or expectations, and are subject to known and unknown risks, uncertainties, and other factors

that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different

from those anticipated by the forward-looking statements, including those discussed under the heading "Risk Factors" in Arcturus'

most recent Annual Report on Form 10-K, and in subsequent filings with, or submissions to, the SEC, which are available on the SEC's

website at www.sec.gov. Except as otherwise required by law, Arcturus disclaims any intention or obligation to update or revise any forward-looking

statements, which speak only as of the date they were made, whether as a result of new information, future events or circumstances or

Trademark Acknowledgements

The Arcturus logo and other trademarks of Arcturus appearing in this

announcement, including LUNAR and STARR , are the property of Arcturus. All other trademarks, services marks, and trade names

in this announcement are the property of their respective owners.

IR and Media Contacts

Arcturus Therapeutics

VP, Head of IR/PR/Marketing

Kendall Investor Relations