Nova Eye Medical Limited

Good morning everyone and once again thanks for joining us. We'll cover a couple of things today with an over-eye. Obviously the March quarter result. We'll cover the record April sales release that we've put out to the ASX and our guidance today as well. And also we'll give you an update on how the US business is scaling up at this present time. Quick reminder, this session may include some forward-looking statements, so please refer to the ASX release and the investor presentation for full details. As always, if you'd like to ask a question, please use the Q&A function in Zoom and we will try and get to as many as we can. I have received a number of questions ahead of the meeting, so thank you to those that have sent those through. But with no further ado, hands straight over to Tom. Thanks, Mark. Thank you very much, everybody, for tuning in today. I'm always very pleased with the number of people that take the time to listen to our stories. I think we've got a good story again for the quarter to 31 March 2026. Just a reminder, it's about pressure. Glaucoma is about pressure. And us intervening in the disease to open up blockages and reduce that pressure. Next slide. The messages from today... We address, Nova iProducts address a genuine and growing clinical need. So we're not trying to make people do something they haven't done before. The disease is real. The customer base is real. There is competition, but that just means that we have an offering that participates very well. Our revenues are now up near $23 million annually and growing 25% plus year on year. and they reflect that real market demand. This quarter showed that we can grow revenue while also improving profitability. I've been saying that too for a while. We were just $75,000 short, just 1% of revenue away from breakeven in Q3. We were EBITDA positive if you include our strong December in the four months to March, and we're forecasting EBITDA positive in Q4. So let's keep it up positive in the second half in total. We are delivering the outcomes we committed to and that's what I'm pleased about. We have a company with 25% growth and profit at the bottom. Record sales were achieved in April. We saw the need to upgrade our sales guidance as a result of that. On the, just a USA surgeon, I received this email randomly, just general feedback, about how good eye track is. Performs better with its canaloplasty than other devices. As such, it is not critical to perform a concomitant goniotomy, which is a tearing of the trabexial meshwork. There's less likelihood of post-operative blood. And For premium eye oil patients, it's good. You don't want to have someone that's just had a can of eye surgery, spent a lot of money on premium eye oil, and then come out of that surgery with blood in their eye. I hear that from a lot of surgeons, and this is just another example. Next one. A reminder about the interventional glaucoma market. It means the active surgical engagement to change the disease trajectory and remove the patient's reliance on drops. I encourage you to have a look at Gloucester. Gloucester made an investor presentation today or released it to the market. I looked at it. They give a very good definition of interventional glaucoma and how important it is. And we are part of that market, an overrides part of that market. That cataract length, one in five patients also had glaucoma, gives us a reason for patients going into the OR. Let's fix your cataract and get you off those drops. Our step three tissue preserving repeatable product is what puts us in the game. We are a required product. part of the business, interventional, look on the market, globally and in particular in the United States. Next slide. Just a quick summary of our, a number of you have seen this, we have an FDIC product of course. We have a good reimbursement which is stable. That reimbursement gives economic value to all the participants. in the surgery, the surgeon, the facility hosting the surgery, and us. Why do doctors choose eye crack advance? Well, we're talking about restoring the natural systems of the eye. It's implant-free and tissue-sparing, in that with a single pass, with now the beautiful green light passing around the canal of Shlin, gives us the advantage over other that call themselves mixed devices or that are mixed devices that doctors can choose from. And there are many, I have all sorts of, we've had all sorts of slides in the past about that, but at the heart of the matter is the tissue sparing natural method of action. Next slide. Here's our sales quarter on quarter compared with the PCP. 5.8 million US dollars. There were two new additional SARs reps in the US to service the growing demand we had there. This is, you know, that's okay. I prefer to look at the next slide, which is our trailing 12 months revenue. It's a better picture of trends. And you can see 26% globally, 27% SARs excluding China. We only do that. We started doing that because of the difficulties with tariffs. Remembering we're selling from the US to China and we were at the commencement of this financial year. There was a lot of uncertainty associated with that. So we just measure ourselves on sales excluding China at the moment. That doesn't mean China isn't being worked on. It just means that for guidance we go to sales excluding China. And the sales guidance was lifted 21.3%. seven million we had died at the 21 million minimum um uh a week or two ago we have now passed that so we've upgraded our guidance as a result of the very strong sales in april in all markets very pleasing um the drivers of that sales growth um our brand and product awareness by doctors was on display at the recent Australian, no, American ASCRSA, American Society of Cataract and Refractive Surgeons in Washington, D.C. We have great booth presence and great booth attendance by doctors. We have sales team productivity, which I challenge is up with any ophthalmology company in the U.S., The release during the quarter of our proprietary green light technology to provide a clearer view for better navigation of the catheter through the canal of Shleddon. I guess it's kind of goes without saying that a green light is better seen in the case of any blood in the operation. And the release also of our sheer clear technology, eye track advanced with sheer clear technology. This is also... Our technology transforms the cohesive viscoelastic into a low-viscosity fluid during canal plastic. You'll recall that viscoelastic is really a biocompatible hydraulic fluid that we flush, that we push through the canal. By virtue of our delivery system, it is thinned, and that thinned viscoelastic circulates more freely into the ocular structure, the slender canal and the outflow pathway, And after a period of latency, regains viscosity and therefore holds open those structures. We're very pleased with the sheer clear, the outcome of the addition of sheer clear to our technology. There are some certain videos on YouTube that are highlighting the impact. of this technology on their search for outcomes. That is why sales are going up. We have a great product, we've got a good team, and we've got a lot of awareness of our brand, and well, to be honest, a little company. Next slide. China remains, we made our first sales in February to China Revoltrack Advance. And in that regard, I draw your attention or we draw your attention to the opportunity in China compared to the US. The same dynamic one in five cataract patients present with concurrent glaucoma and the opportunity to grow our business in China is very strong. It is a big opportunity. It will take time. but we think it is very exciting. Next one. This slide, we've had a question about dips in sales reps. Well, I also get questions about dips, sorry, revenue per rep. So what we've got is sales growth from the United States per quarter. What I like about this slide is that I have not made any change to the scale in the left-hand side to exacerbate the It is a commendable growth rate of 6% a quarter. What we take away from that is despite our sales, we are maintaining a very strong revenue per rep. I'm often asked, how long does it take for a rep to get $1.6 million a quarter, $1.8 or $1.9? I consider our whole pool of reps as an asset. And on average, we have managed over time to keep that quite high Sales growth, keep it quite high, and therefore the sales rep expense is quite high, so that is a driver of productivity. Sales in the quarter on that graph look flat quarter on quarter. That could be to say, oh, no, Mariah's flat sales in the United States. January and February were materially affected by sales. by winter storms and surgery, and quite possibly those surgeries were caught up in April. Quite possibly. So we have had a great April, as we said, which augurs well for Q4. So we will continue to push when we find the right people, because there are territories in the United States which are underserved, we will continue to look for reps that we believe can be added to our team and maintain that $1.6, $1.7, $1.8 million per rep and therefore drive the bottom line productivity as well as sales growth. Our operating result here, I call out our investment in clinical data because it doesn't actually impact the current operating leverage, as they call it. You can see I'm not resiling from the fact that we're EBITDA negatives. I am pointing out that we're EBITDA positive for four months but not for three months because we had a good December. That's a small loss as a percentage of total revenue and it's heading in the right direction. The leverage, the gross margin is pleasing as we improve our production, we're constantly improving production processes. but also pricing of our product decreasing, particularly outside the US markets, where we're still only transitioning, in some cases, from iTrack 250A to the more expensive, for us, the more expensive, higher price, sorry, iTrack Advanced. So I think this highlights the trends in quarterly EBITDA, I draw your attention to the green arrows, which show Q4 relative to Q3 for the last couple of years. So we think our outlook for Q4, if that trend continues, is very strong. A couple of periods of very close to break-even performance, and we're forecasting an improvement that should continue during the month of June. during the April, May and June. Cash flow, we continue to invest in working capital. There was a lot of marketing expenditure up front that we had to make. Our cash receipts will flow through, and as we said, our existing cash and debt facilities provide sufficient runway for the continued execution of our mission, which is the mission to EBITDA positive, cash flow positive, will follow. Next one. Recapping our guidance, there's an update from 21 to 22, 22 to 23. People may say that's not much, but I'm excited by it because we're proud of the work we're doing. We're only a little company and we are delivering what we want, what we said we'd deliver. There's some FX things there. I tend not to worry about Australian dollars, but I have to give just a reminder, we have no Australian dollar revenue. We do not sell in Australia, so it's US dollars for us. Next one. And that's the same, our guidance that continued Targeting growth even with a small positive in H2FY26 and positive evens after operations that remotely affect clinical data. And ongoing improvements in cash flows. We are generating cash in the US. I don't want to say the US is a business on its own, but because it's a very global integrated business, but all our cash is coming in euros in the US, which they're appreciating Australian dollars. doesn't help when you turn it into Australian dollars. Okay, so thank you for that. Thanks, Tom. A couple of questions coming through. One live is that the green light which we've announced and is currently in use in the US, will that supersede the red light or will both lights remain available for surgeon choice? It will supersede. And that's actually our choice because... Doctors, we are not making it, if someone has a red light and they ask for it and they're a good customer, well, we are not trying to build to the better production planning thing is just to deliver green is the answer. Thank you. Question from Nick Lauer, Taylor Colson, in regards to those USA sales. You did cover it there, and also the revenue per rep, which sort of dipped a little bit. What are the factors the sales are seeing that may have contributed to this? And I know you mentioned the weather. Yeah, so I know the weather sounds a lot like the dog ate my homework, but in the end, the northeast of the US in January and February, which seems like an eternity ago, but To me it's not because we're still seeing the effects on our PML account where our reps were shut down, surgeries were shut down and surgeries were cancelled. That impacts. It impacts. Doctors bimonthly and so it impacts. It's a vexed issue. I get equally the number of times people say, put on more reps, why don't you put on more reps? Well, when we put on more reps, there must be a dip naturally because you can't get all those sales in the first month the person's there. We try and split the territory to give the person a lot of leads. But we put on reps because we know in that two, three, four month time we'll get back up to the 1.678910, 1.678910. million dollars per rep, which we know drives our bottom line result. And as I said, 20% growth, 20% plus top line growth, and even R. That seems to me like an achievable target for our business. The sale adoption by new or established surgeons, you're able to comment on the sales process? Well, that requires a lot of analysis. We are a small business, but it also, we like to think that our competitors don't need to tell, we don't need to tell our competitors about new accounts. We just deliver our sales information. I know so many people have family facilities, what's new, what are new accounts, what are old accounts, why are facilities dropping off, why are new facilities not buying if they've just bought in the month one, they're not buying in month two. There are so many combinations of analysis that we could do and they are compromised by doctors moving around between facilities by in particular that and the idea that some accounts have more than one facility and more than one doctor doing it versus some accounts just having one doctor. So we just, we believe that our EBITDA operating revenue per rep increasing top line sales is our goal. We have our internal as to how we're doing at each account. You mentioned Glaucos in a bit of a comparison. So I know Glaucos leads in stents and drug delivery, but where do they sit in competition against us? Well, it's interesting. I refer you to some of the videos that have been posted by surgeons where there is a combination going on now where there seems to be doctors are deciding to team iTrack with Glaucos products, which is interesting. And we think that we don't have any clinical evidence around why that would do it, but that's up to doctors to do what doctors do. Glaucos investor webinar today gives a very rosy outlook for interventional glaucoma. And I know it's to service their own needs, but It does describe very well the trends, and we think that we are, if you like, we could be on the close halves of some of those trends. I mean, the trends are real. I think that's what a review of the Glasshouse Investor presentation will show you, that NoRye Medical is in a real market with a real growth theme. China, I know we do exclude China, but when do you believe or when do you think that sales there will become material? I'm deciding, we've decided corporately to just be cool on that decision and let them flow through. So we're not getting any more guidance from what we have. Thank you. We've got one here in regards, we haven't mentioned the manufacturing facility or clean room in Adelaide. Just a short update on that. Yeah, so we have... quietly and with conviction to lower our production costs, insource some parts into established clean room facilities and insource some parts to lower production costs ultimately. And it also provides a test bed for new manufacturing techniques and new product testing, which the sheer clear and the green lighter as a result of that. So it's a good capability we have here in Adelaide and compared with other parts of the world, Adelaide is a low cost domain. So it's good. Always a reminder that there's new people joining our webinars and asking why don't we sell this product in Australia. Simply put, we have presented data to the US Medicare and it has accepted that data as meaningful and saying that yes, canaloplasty does work and therefore we will reimburse patients who need it, or reimburse, yes, patients, effectively. the data, they have a different standard. They believe more data is required. The size of the Australian market does not warrant our investment in getting that clinical data, just to stand alone. We do have some clinical data in the pipe, which may help, but we see the investment in an additional rep in the U.S., helps us get to our 20% plus growth, even our positive down the bottom, far better than just staying in Australia, unfortunately. Thanks, Tom. I think that covers all the questions. Any final questions come through now or, as always, Tom and my details are on screen there. Please send through any questions. Happy to have a phone call as well. Look forward to staying in touch. But great news from Novi today and welcome any further questions. So thanks very much for joining. Thank you, everyone.