Q4 2026 Nova Eye Medical Ltd Earnings Call

August 4, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: Okay. Good morning, everybody, and thanks again for joining us. My name is Mark Flynn, from Investor Relations at Nova Eye Medical. Today we're covering the June 26 quarterly report, which we launched last week with the ASX, and will also provide some outlook on FY27.

Mark Flynn: Okay. Good morning, everybody, and thanks again for joining us. My name is Mark Flynn, the Investor Relations for Nova Eye Medical. Today, we're covering the 26 June quarterly report, which we lodged last week with the ASX. Also, we'll provide some outlook on FY 2027. Presenting as always today is Tom Spurling, our Managing Director. Again, Q&A available. If you look inside Zoom, Q&A function, we'll look to get to as many questions as possible. Also, we can follow up post the webinar. I will ask a number of questions. Please place them in the Q&A function within Zoom. As we can see from the recent results, Tom's led the company through a wonderful four consecutive years of sales growth above 25%. Our FY 2026 closed at just below $24 million, up 26%.

Speaker #2: Presenting, as always, today is Tom Spurling, our Managing Director. Again, Q&A is available if you look inside Zoom. Use the Q&A function; we'll look to get to as many questions as possible.

Speaker #2: Also, we can follow up after the webinar, but I will ask a number of questions, so please place them in the Q&A function within Zoom.

Speaker #2: As we can see from the recent results, Tom has led the company through a wonderful four consecutive years of sales growth above 25%, and our FY26 closed at just below US$24 million, up 26%.

Speaker #2: And the second half delivered the company's first positive EBITDA, as guided by Tom and the team. So, Tom, we'll take you through these results, what drove it, and also provide some FY27 guidance.

Mark Flynn: The H2 delivered the company's first positive EBITDA as guided by Tom and the team. Tom will take you through these results, what drove it, and also provide some FY 2027 guidance. Over to you, Tom.

Speaker #2: So, over to you, Tom.

Speaker #3: Thanks, Mark. Very pleased, again, to be speaking and talking to our company. It's another record attendance, and we have a lot of people interested in our company.

Tom Spurling: Thanks, Mark. Very pleased again to be speaking and talking to our company. It's another record attendance and having a lot of people interested in our company. Another record attendance this webinar. Having a lot of people interested in our company is very, I'll just say heartwarming because it is. You'll see our opening slide. Just leave it up there. Sorry, Mark. Just back. Our opening slide, I just want to say, regular viewers will note that that's quite a change in our slide formatting. That's intentional. We've hit some major milestones in this last H2. We are different. We are combining profitability with sales growth, just as we promised. We promised it. We've delivered it. That's a big theme today. Thanks, Mark. Let's just not forget glaucoma. The second leading cause of blindness in the developed world is a well-documented statistic.

Speaker #3: Another record attendance at this webinar. Having a lot of people interested in our company is very—I'll just say heartwarming, because it is. Now, you'll see our opening slide.

Speaker #3: Just leave it up there. Sorry, Mark. Just back, back, back—to our opening slide. I just want to say, regular viewers will note that that's quite a change in our slide formatting, and that's intentional.

Speaker #3: We've hit some major milestones in this last half, and we are different. We're combining profitability with sales growth, just as we promised. We promised it, and we've delivered it.

Speaker #3: That's a big thing today. Thanks, Mark. Let's just not forget we'll combine the fact that the second leading cause of blindness in the developed world is a well-documented statistic.

Speaker #3: We build and design devices that enable surgeons to treat patients with glaucoma. Glaucoma is incurable, but we can delay its progression. Nobody can cure it.

Tom Spurling: We build and design devices that enable surgeons to treat patients with glaucoma. Glaucoma is incurable, but we can delay the progression of glaucoma. Nobody can cure it. It is about a failure of, on the slide there, it's a failing of the eye's ocular drainage system. Blockages causing a rise in pressure which cuts the optic nerve. Our glaucoma solutions work with the body's anatomy, open up the natural outflow pathway, and use surgical interventions to stop this without leaving anything behind. Tissue-sparing. Very, very important. We are promoting the body to do its own work. Next slide. There's the top line. We want the message you receive today that the market we are in is early in the commercial growth stage of this market. We're early in our commercial rollout, and we've achieved strong growth. 26% year-on-year to AUD 23.7 million.

Speaker #3: It is about a failure of—on the slide there—it's a failing of the eye's ocular irrigation system. Blockages cause a rise in pressure, which cuts the optic nerve.

Speaker #3: Our glaucoma solutions work with the body's anatomy, open up the natural outflow pathway, and use surgical interventions to stop this without leaving anything behind—tissue sparing.

Speaker #3: Very, very important. We don't—we're promoting the body to do its own work. Next slide. There's the top line. We want the message you receive today to be that the market we are in is early in the commercial growth stage of this market.

Speaker #3: We're early in our commercial rollout, and we've achieved strong growth—26% year-on-year, to $23.7 million. EBITDA positive in the second half, as we guided.

Tom Spurling: EBITDA positive in H2 as we guided, EBITDA positive in FY 2027. We haven't put a number out, but we will be EBITDA positive. We are FDA-cleared and MDR-compliant. That MDR is, some people may consider it very boring. Some people who follow healthcare stocks know it was a milestone, a very important milestone we achieved during fiscal 2025 to make sure that we converted from the CE mark regime into an MDR-compliant regime. The truth of the matter is that MDR has made it a higher bar than CE. It is closer to FDA. We are well-positioned to move forward and grow. Now, I'll accept that I'm cheating with the scale a little bit here, but so what? I've put the numbers there. US, AUD 9.3 million in fiscal year 2022.

Speaker #3: And EBITDA positive in FY27. We haven't put our—we haven't put a number out, but we will be EBITDA positive. We are FDA cleared and MDR compliant.

Speaker #3: That MDR is—some people may consider it very boring. Some people who follow healthcare stocks know it was a milestone, a very important milestone we achieved during fiscal '25 to make sure that we converted from the CE mark regime into an MDR-compliant regime.

Speaker #3: And the truth of the matter is that MDR has made it more—it's a higher bar than CE. It is closer to the FDA. So we're well positioned to move forward and grow.

Speaker #3: Now, I'll admit that I'm cheating with the scale a little bit here, but so what? I've put the numbers there: US$9.3 million in fiscal year 2022, following the release of our iTrack Advance over these last three years, four years.

Tom Spurling: Following the release of our iTrack Advance over these last four years, we've got to AUD 23.7 million. We can do all the corporate finance math on that, and that is a 26% compounding growth rate. You almost couldn't make up a curve looking that so strong and consistent. I ask you to put your rulers on that so that you can say, Well, what could it be next year? We've given guidance, but I would like you to form your own view just on that trend. Next slide. Interventional glaucoma is the future. In this approach, surgeons treat the disease surgically and early instead of reliance on drops and the wait and see approach. In our quarterly report, we flagrantly, and with the permission of Glaukos, inserted some of their statistics because I think they have a really good description. 90% of patients don't take their drops as prescribed.

Speaker #3: We've got to 23.7, and we can do all the corporate finance maths on that, and that is a 26% compound annual growth rate. It's very—you almost couldn't make up a curve looking that strong and consistent.

Speaker #3: And I ask you to put your rulers on that, so that you can say, well, what could have been next year? We've given guidance, but I would like you to form your own view just on that trend.

Speaker #3: Next slide. Interventional glaucoma is the future. In this approach, surgeons treat the disease surgically and early, instead of relying on drops and the wait-and-see approach.

Speaker #3: In our quarterly report, we flagrantly, and with the permission of Glaucos, inserted some of their statistics because I think they have a really good outlook.

Speaker #3: They have a really good description. Ninety percent of patients don't take their drops as prescribed. The old legacy of drops and drops, and when it gets really bad, you drill a hole in your eye to relieve that pressure.

Tom Spurling: The old legacy of drops and drops, and when it gets really bad, you drill a hole in your eye to relieve that pressure. It's barbaric. The idea of intervening surgically early to improve the outcomes with minimally invasive solutions like iTrack, particularly, the tissue-sparing nature of iTrack means that we provide better quality of life to patients, which is wonderful, better quality of life for patients. There is a business to be made. Doctors can make money out of that. It is a valid theme, a real theme that is only in its infancy globally. Next slide. Currently, glaucoma, about AUD 944 million. You say, That's not much. Well, I don't care. We only need a very small part of that. Glaukos have said that by 2035, they estimate that there'll be just as many IG procedures as there are cataract procedures in the US.

Speaker #3: It's barbaric. The idea of intervening surgically early to improve the outcomes with minimally invasive solutions like eye track, particularly the tissue sparing nature of eye track, means that we have a—we've provided better quality of life to patients.

Speaker #3: And, which is wonderful, better quality of life for patients. But there is a business to be made—doctors can make money out of that—so it is a valid theme, a real theme that is only in its infancy globally.

Speaker #3: Next slide. So currently, glaucoma—about 944 million. So that's not much. Well, I don't care; we only need a very small part of that.

Speaker #3: Glaukos have said that by 2035, they estimate there will be just as many MIGS procedures as there are cataract procedures. That's in America. Currently, there are about 500,000, 600,000, or 700,000 cataract procedures.

Tom Spurling: Currently, there's about 500,000, 600,000, 700,000 cataract procedures, so they see that growing by 10 times. Currently, we estimate that we have about 4%, 3% to 5%, put 4% in the quarterly report, of the interventional glaucoma procedures. I estimated in our quarterly report, we stated that there are about 30,000 to 35,000 procedures in the US every month, and we're doing 4% or 5% of those and growing. I often talk about this market share. Market share of 4%, Oh, that's meaningless. It's a tiny market share. Doesn't matter. That has developed AUD 23 or 24 million of revenue for us, or $19 million in America, sorry. That just shows there's room to grow, and we're proving our platform can participate in that growth profitably. Next slide. Here's another depiction of the opportunity. These are estimates of cataract surgeons driving interventional glaucoma growth.

Speaker #3: So they see that growing by 10 times. That is currently—we estimate that we have about 4%, 3% to 5%, put 4% in the quarterly report, of the interventional glaucoma procedures. That means they're, I estimate—in our quarterly report, we stated that there are about 30,000 to 35,000 procedures in the USA every month, and we're doing 4% or 5% of those and growing.

Speaker #3: So, I often talk about this market share. Market share of 4%. Oh, that's meaningless, it's a tiny market share, doesn't matter. That has developed $23 or $24 million of revenue for us—or $19 million in America, sorry.

Speaker #3: And that just shows there's room to grow. And we're proving our platform can participate in that growth profitably. Next slide. Here's another depiction of the opportunity.

Speaker #3: These are estimates of cataract surgeons driving interventional glaucoma growth. That is, as I've said a number of times in these talks, 20% of the patients who present for cataract surgery have concurrent glaucoma.

Tom Spurling: That is, as I've said a number of times in these talks, 20% of the patients who present for cataract surgery have concurrent glaucoma, 15% to 20%. That presents the doctor with an opportunity to say to his or her patient, At the same time as me fixing your eye so you can see the golf ball or drive better at night, I can do a minimally invasive procedure that will get you off drops. The data says it will get you off the drops or reduce the number of drops you're taking, that will improve your quality of life, all at the same time. That offering by cataract and comprehensive surgeons is appealing to their patients. That is the space we're working on.

Speaker #3: Fifteen to twenty percent. That presents the doctor with an opportunity to say to his or her patient, at the same time as me fixing your eye so you can see the golf ball or drive better at night, I can do a minimally invasive procedure that will get you off drops—or not ensure, but get you off drops.

Speaker #3: Pretty—the data says it will get you off the drops or reduce the number of drops you're taking, and that will improve your quality of life.

Speaker #3: All at the same time. And that offering by cataract and comprehensive surgeons is appealing to their patients. That is the space we're working on.

Speaker #3: That very, very simple concept that a patient doesn't have to go in, and can get better vision through the cataract surgery, and improve quality of life by getting off drops or reducing the drops.

Tom Spurling: That very, very simple concept that a patient doesn't have to go in and can get better vision through the cataract surgery and improve quality of life by getting off drops or reducing the drops, with our device there. This green light and the green iTrack Advance was just released in the last six months, and it, with the Shear Clear technology, is driving growth. It is driving growth, I have to say. Next slide. That's a cut-off version. We keep refining these pictures, but that's a cut version. The canal is theoretically wrapping right around that. You can see a picture of our green catheter running through the canal. I actually personally believe that it's obviously a depiction. That canal is a bit fat on the left-hand side. It's thinner than that.

Speaker #3: Without advice there, you know, this green light and the Green Eye Track Advance has just released in the last six months, and it, with the Sheer Clear technology, is driving growth.

Speaker #3: It is driving growth, I have to say. Next slide. This depicts—that's a cut-off version. We keep refining these pictures, but that's a cut version.

Speaker #3: The canal is theoretically wrapping right around that, but you can see a picture of our green catheter running through the canal. I actually personally believe that it's obviously a depiction.

Speaker #3: That canal is a bit fat on the left-hand side. It's thinner than that. But you can see the idea of our catheter running through that canal and clearing the blockages. Then we withdraw the catheter and flush it with Viscoelastic Sheer Clear, thinned with the Sheer Clear technology—our proprietary Sheer Clear technology—to make the way into the collector channels, into the whole ocular system, to reduce pressure and clear blockages.

Tom Spurling: You can see the idea of our catheter running through that canal and clearing the blockages, then we withdraw the catheter and flush it with viscoelastic thinned with the Shear Clear technology, our proprietary Shear Clear technology, to make the way into the collector channels, into the whole ocular drainage system to reduce pressure and clear blockages. It works with the anatomy. We do not have an implant, we do not tear the tissue. A note there about our reimbursement or the reimbursement, $542 for the surgeon to do the procedure, $2,204. They're the current in 2026 draft. 2027 results were released, by Medicare in America, they're approximately the same. That we highlight, they will be confirmed, or we hope they will be confirmed. They should be confirmed in November later this year.

Speaker #3: It works with the anatomy. We do not have an implant, and we do not tear the tissue. Note there about our reimbursement—or the reimbursement: $542 for the surgeon to do the procedure, $2,204.

Speaker #3: They're the current in 2026. Draft 2027 results were released, and they're approximately by Medicare in America, and they're approximately the same. That we highlight as a—they will be confirmed, or we hope they will be confirmed.

Speaker #3: They should be confirmed in November later this year, but it provides confidence in our go-forward American revenue and therefore our guidance for our business.

Tom Spurling: It provides confidence in our go-forward American revenue and therefore our guidance for our business. We are approaching 20,000 procedures a year in the United States with the device. A tiny part of the market, but for us, 20,000 procedures is good. Thanks. iTrack Advance is ready for the interventional movement. No trials to run. We have our approvals. There is no reimbursement to secure. Plenty of people on this call may be following various med tech companies that are trying to have a, deciding, will we get a FDA approval? Will we get reimbursement? When will we get first revenue? How are we going to get first revenue? On this slide, I debated whether to depict revenue growth. We decided that we had only ticked first revenue. Revenue growth is what is about to happen. Okay? Very important. Let us go. Here is the revenue growth.

Speaker #3: We're approaching 20,000 procedures a year in the United States with the device. It's a tiny part of the market, but for us, 20,000 procedures is good.

Speaker #3: Thanks. All right. EyeTrack Advance is ready for the interventional movement. No trials to run. We have our approvals. There’s no reimbursement to secure.

Speaker #3: Plenty of people on this call may be following various med tech companies that are trying to decide, you know, will we get an FDA approval?

Speaker #3: Will we get reimbursement? When will we get first revenue? How are we going to get first revenue? And on this slide, I debated whether to depict revenue growth.

Speaker #3: We decided that we've only ticked first revenue. Revenue growth is what's about to happen, okay? Very important. Let's go. And here's the revenue growth.

Speaker #3: All lots of numbers. But it shows—it does show the dominance at 8.6 million in the United States, 30% year-on-year growth. Interestingly, in our quarterly, you'll see that our USA growth was 21% quarter-on-quarter.

Tom Spurling: All lots of numbers, but it does show the dominance, AUD 18.6 million in the United States, 30% year-on-year growth. Interestingly, in our quarterly, you will see that our USA growth was 21% quarter-on-quarter. Really had a great quarter in America. Germany, it is steady, or it is growing and steady. The rest of the world, our guidance is sales excluding China, AUD 22.7 was above the midpoint of our guidance, 29% growth. Yet China, we are only. There is 18% theoretically it is a big drop, but it is what? AUD 200,000. It is not very much. That we are growing in Europe. In China, it is lumpy, and we are only just getting started. Next one. Further, the opportunity in China, we consider that interventional glaucoma is only in its nascent stage outside the US. China lags most on interventional glaucoma adoption. The statistics say that when interventional glaucoma picks up, China will be there.

Speaker #3: Really had a great quarter in America. Germany—it's steady, or it's growing. It's steady. The rest of the world, out. Guidance is sales excluding China, $22.7 million, was above the midpoint of our guidance—29% growth.

Speaker #3: And yeah, China—we're only, there's a, you know, 18%. Theoretically, it's a big drop, but it's what, 200,000? It's not very much. We are growing in Europe.

Speaker #3: In China, it's lumpy and we're only just getting started. Next one. So further, the opportunity in China—we consider that interventional glaucoma is only in its nascent stage outside the US.

Speaker #3: China lags most on interventional glaucoma adoption. The statistics say that when interventional glaucoma picks up, China will be there. Our investment in people—I’ve had a few questions about our investment in China and why it has gone back and et cetera, et cetera.

Tom Spurling: I have had a few questions about our investment in China, and why has it gone back and et cetera. Gone backwards, the 18% loss. Well, first of all, it is a tiny amount. It is about percentages on small numbers. Second, our investment, we are proudly putting forward our EBITDA positive position. We have put forward that EBITDA positive position because we are very careful with every dollar we spend. The opportunity in America is large. We invest in America hard. We are investing more slowly in China because we have that constant need to improve the bottom line at the same time. It will come. We are well positioned. We have our structure. We have our platform. For the time being, we are excluding China from our guidance. Let us go. Now, dwelling a little, there is a lot of numbers here, but the messages are on the left-hand side.

Speaker #3: Going back, there was an 18% loss. Well, first of all, it's a tiny amount—it's about percentages on small numbers. But second, our investment—we are proudly putting forward our EBITDA-positive position.

Speaker #3: We've put forward that EBITDA-positive position because we're very careful with every dollar we spend. The opportunity in America is large—we invest in America, hard.

Speaker #3: We are investing more slowly in China because we have that constant need to improve the bottom line at the same time. It will come.

Speaker #3: We are well positioned. We have our structure. We have our platform. But for the time being, we're excluding China from our guidance. Let's go.

Speaker #3: Now, dwelling a little—there's a lot of numbers here. But the messages are on the left-hand side: we hit our guidance target on revenue, revenue growth, and EBITDA positive in the second half.

Tom Spurling: We hit our guidance target on revenue growth, and EBITDA positive in H2. Operating expense, regular followers will know, I often get asked about operating cost leverage. We have provided there a breakdown of the OpEx, sales and marketing, operations, product development, engineering, corporate, and clinical data. So that people can look at the history and have a look at what is varying with sales. They say, "What is your leverage?" Lots of people are telling me that our costs just keep going up at the same rate of sales. Well, it is not. Our sales and marketing costs in H1 2024 were 76% of sales. That is a big number. In this last H2, it is 52%. The trend between 76% and 52% has been very consistent improvement. That data has all been provided historically. It is all in our releases.

Speaker #3: And, on operating expense—regular followers will know I often get asked about operating cost leverage. We've provided there a breakdown of the opex. That was in marketing, operations, product development, engineering, corporate, and clinical data.

Speaker #3: So that people can look at the history and have a look at what is varying with sales. And they say, what's your leverage? What's your leverage?

Speaker #3: Lots of people have been telling me that our sales—our costs just keep going up at the same rate, at the rate, as the same rate of sales.

Speaker #3: Well, it's not. Our sales and marketing costs in fiscal—in the first half of 2024—were 76% of sales. That's a big number. In this last half, it's 52%.

Speaker #3: The trend between 76 and 52 has been very consistent improvement. That data has all been provided historically; it's all in our releases. But one can assume, then, that that progression will continue.

Tom Spurling: One can assume that that progression will continue. We are not. Someone called it Jaws. I have got a note about it being Jaws, the widening of the gap between sales growth growing faster than OpEx. That is where we are. We got there on the EBITDA. We said we would get there on FY 2026 guidance, we did, and in July, we started FY 2027 with continued growth in America. That is right up to today. Well, last Friday. Our guidance is AUD 26 to 31 million, excluding China. People interested can add on for China after what they will. That is between 15% and 37% growth. As I said, we point out we always have achieved four years, 26% growth. Some people may say that 15% is too low, but we are not. That is what we are saying. We want to hit our guidance.

Speaker #3: However, we're not—someone called it 'jaws.' I've got a note about it being 'jaws'—the widening of the gap between sales growth growing faster than opex.

Speaker #3: That's where we are. So, we got there. On the EBITDA, we said we'd get there on FY26 guidance—we did. And in July, we've started FY27 with continued growth in America.

Speaker #3: That's right, up to today. Oh, well, last Friday. Our guidance is $26 to $31 million US dollars, excluding China. People interested can add on for China what they will.

Speaker #3: That's between 15% and 37% growth. As I said, we point out that we have always achieved, over four years, 26% growth. So some people may say that 15% is too low, but we're not.

Speaker #3: That's what we're saying. We want to hit our guidance. We have not forecast what our EBITDA will be, but we are saying that it's positive.

Tom Spurling: We have not forecast what our EBITDA will be, but we are saying that it is positive. As I said, we are tracking at 30% above in July. We have liquidity in place that will facilitate us achieving these targets. You often get say, we do not have enough money. When are you going to do a capital raise? We have enough money to meet our FY 2027 guidance. Next slide. I think this is the last one. It is just getting started. We have built our business for this exact opportunity, and it is now hitting the market, hitting the streets, and turning into fiscal outcomes that we think are interesting to our shareholders, that add value. EBITDA and sales growth. Nobody can tell me what is more important. Plenty of people say, oh, you have got to have sales growth. People say, you have got to have a profit. We are doing both.

Speaker #3: And as I said, we're tracking at 30% above in July. We have liquidity in place that will facilitate us achieving these targets. Yeah, I often get told we don't have enough money.

Speaker #3: What are you going to do with the capital raise? We have enough money to meet our FY27 guidance. Next slide. I think this is the last one.

Speaker #3: It's just getting started. We've built our business for this exact opportunity, and it is now hitting the market, hitting the streets, and turning into fiscal outcomes that we think are interesting to our shareholders.

Speaker #3: That adds value—EBITDA and sales growth. Nobody can tell me what's more important. Plenty of people say, are you going to have sales growth?

Speaker #3: People say you've got to have a profit. We're doing both—more than 25% growth and EBITDA positive. I believe—we believe—this makes a valuable company. And we think we do have a valuable company.

Tom Spurling: More than 25% growth and EBITDA positive, I believe, we believe, makes a valuable company. We think we do have a valuable company. Next one.

Speaker #3: Next one.

Speaker #1: That's it, Tom?

Mark Flynn: That is it, Tom.

Speaker #2: Here we are. So, thank you. We'll just go back to the guidance. Let's go back one slide there, and we'll leave it on that. Then we'll hear any questions, I guess, Mark.

Tom Spurling: There we are. Thank you. We'll just go back to the guide. Just go back one slide there. We'll leave it on that. We'll hear any questions, I guess, Mark.

Speaker #1: Yeah, a couple of questions. One from Tom Wagner at A&P straight off the bat is: Given the EBITDA positive, where do you plan on spending or investing?

Mark Flynn: Yeah, a couple of questions. One from Tom Wegner at E&P straight off the bat is, given the EBITDA positive, where do you plan on spending or investing that cash? Will it be in the sales force?

Speaker #1: That cash—and will it be in Salesforce?

Speaker #2: So we want to continue our growth. Investments in salespeople are—we're finding—having a very good payback period. So we worry about cash greatly, as one would expect.

Tom Spurling: We want to continue our growth. Investments in salespeople, we're finding, have a very good payback period. We worry about cash greatly, as one would expect. We don't have much. We have enough though. Yes, the answer to that, Tom, is yes, we will be investing in sales growth.

Speaker #2: We don't have much. We have enough, though. And so, yes, the answer to that, Tommy, is yes, we will be investing in sales growth.

Speaker #1: And we've gone through the numbers in FY26. Obviously, the unaudited numbers have closed up 23.7% in US dollars, so up 26%. You sort of covered it a little bit.

Mark Flynn: We've gone through the numbers in FY2026. Obviously, the unaudited numbers have closed up $23.7 in US dollars, up 26%. You sort of covered a little bit. What really drove that growth this year?

Speaker #1: What really drove that growth this year?

Speaker #2: Well, it's hard to go past America. That 30% growth—79% of our revenue comes in the US, and it grew at 30%. And particularly that last quarter, with 21% quarter-on-quarter growth.

Tom Spurling: Well, it's hard to go past America. That 30% growth, 79% of our revenue comes from the US, and it grew at 30%, and particularly that last quarter with 21% quarter-on-quarter growth. We think that in the last six months, we released the Shear Clear proprietary technology, the shear thinning technology that makes the OVD travel more through the ocular system, and the green light has been very well received by doctors. That navigational beacon giving doctors the safety of navigation as they place the catheter in the eye of the patient. The doctors have liked it a lot better than the red one. We have high performing. We have a bunch of good reps. From what I can gather, industry-leading revenue per rep. In our quarterly, we talked it's approaching, I think it was 1.9, close to AUD 2 million annualized revenue per rep.

Speaker #2: We think that in the last six months, we released the Sheer Clear proprietary technology—the shear thinning technology that makes the OBD travel more through the ocular system.

Speaker #2: And the green light has been very well received by doctors. That navigational beacon gives doctors the safety of navigation as they place the catheter in the eye of the patient.

Speaker #2: The doctors have liked it a lot better than the red one. So we have high-performing—we have a bunch of good reps from what I can gather—industry-leading revenue per rep in our quarterly.

Speaker #2: We talked, it's approaching—I think it was $1.9 million, close to $2 million in annualized revenue per rep. And going back to Tom Wagner's question, we should add more reps, so that's where we are.

Tom Spurling: Going back to Tom Wegner's question, we should have more reps. That's where we are.

Speaker #1: People are unpacking and coming through to me and asking you about corporate costs falling from $1.7 million to $1.3 million, and also product development fell too.

Mark Flynn: People are unpacking and coming through to me asking around corporate costs.

Mark Flynn: Corporate costs falling in from AUD 1.7 to AUD 1.3, and also product development fell too. One of the questions was, were we under-investing to make the EBITDA number as per your guidance?

Speaker #1: One of the questions was, were we underinvesting to make the EBITDA number, per your guidance?

Speaker #2: So, corporate costs have come down. There has been an unfortunate—we have had to wind down our investment in—well, our spending on 2IT. That has been a big contributor.

Tom Spurling: Corporate costs have come down. Unfortunately, we have had to wind down our investment in, well, our spending on 2RT. That has been a big contributor. That has been a contribution to EBITDA positive. In that large context, we think 2RT's really good tech, but we're not funded to be able to do it, as we've said a number of times. In that context, maybe we are. In terms of iTrack Advance, we have an approved product. We are making changes, as you can see by the Shear Clear and the green light. That is working within that sort of incremental improvement. It's working within our budget, which is make a profit, Tom. Make a profit.

Speaker #2: That has been a contribution to EBITDA positive. So, in that larger context, we are limiting—we think 2IT is really good tech, but we are not funded to be able to do it, as we've said a number of times.

Speaker #2: So in that context, maybe we are. But in terms of EyeTrack Advance, we have an approved product. We are making changes, as you can see by the sheer clear and the green light.

Speaker #2: But that, and that sort of incremental improvement, is working within our budget, which is: make a profit, Tom. Make a profit.

Speaker #1: Good question from Paul Jones at Pack Partners. Are we expecting any changes to reimbursement in the USA?

Mark Flynn: Good question from Paul Jones at PAC Partners. Are we expecting any changes to the reimbursement in the US?

Speaker #2: So, on July 2nd, we received the CMS announcement regarding reimbursement for 2027. As I've said, that was roughly in line with what it is for 2026.

Tom Spurling: We have, on 2 July, we received, or the CMS announced the reimbursement for 2027, as I've said, that was roughly in line with what it is for 2026. One can never know what's going on beyond. That's 18 months from today. Those next 18 months follow the last, I don't know, 18 years that that reimbursement thing has been in place, we have no reason to believe it's going to be charged.

Speaker #2: So one can never know what's going on beyond—that's 18 months from today. And those next 18 months follow the last, I don't know, 18 years that that reimbursement thing has been in place.

Speaker #2: So, we have no reason to believe it's going to be changed.

Speaker #1: Okay, just on FY27 guidance, we've provided guidance of between 26 to 31. The question is, it's a wide range—what separates the bottom from the top?

Mark Flynn: Okay. Just on FY2027 guidance. We've provided a guidance of between AUD 26 to AUD 31. The question is, it's a wide range. What separates the bottom from the top?

Speaker #2: Well, I can be really honest and say, well, we want to hit it, is one thing. But the top is what we think we can achieve.

Tom Spurling: Well, I can be really honest and say, well, we want to hit it is one thing. The top is what we think we can achieve, and I guess the bottom is what we know we can achieve. Think and know, I don't, for a little company like us looking out 12 months, it does relate to the we could have confidence in. I think it will narrow over time. We'll lift, I expect we'll be lifting that lower one. It is about surgeon, about our ability to keep getting new accounts, and keeping those accounts. Lots of stuff goes into that. For now, for our little company, we think that gives our shareholders something to have confidence in.

Speaker #2: And I guess the bottom is what we know we can achieve. I think—and, you know, for a little company like us looking out 12 months, it does relate to the—we could have confidence and have—that I think it will narrow over time.

Speaker #2: And that may—and we'll lift, I expect we'll be lifting that lower one. But it is about, certainly, about our ability to keep getting new accounts.

Speaker #2: And keeping those accounts—so, lots of stuff goes into that. For now, for our little company, we think that gives our shareholders something to have confidence in.

Speaker #1: One from Nick Lau at Taylor Collison. With the previous new sales rep hires that have been onboarded, have they transitioned into under-penetrated territories? How are they progressing, and what are they seeing on the ground?

Mark Flynn: One from Nick Lau at Taylor Collison. With the previous new sales rep hires that have been onboarded, have they transitioned into under-penetrated territories? How are they progressing, and what are they seeing on the ground?

Speaker #2: So, the last two reps we hired—the first one was in the Pacific Northwest, which was absolutely an underpenetrated territory. And the other one is way up in the Northeast, where we split a territory that was also underpenetrated.

Tom Spurling: The last two reps we hired, the first one was in the Pacific Northwest, was absolutely an under-penetrated territory, and the other one is way up in the Northeast where we split a territory where it was under-penetrated. We consider the revenue per rep number of 1.9 being an amalgam of bringing people on so that we don't let the sum drop to 1.9. Now, the person in the Pacific Northwest is not at 1.9, but she is not far behind. The person up in the Northeast is right up there. It just depends, and we work on the total number because we are bringing on reps so that we try not to have too much of a dip in that annualized revenue per rep. Annualized revenue per rep is certainly a leading indicator of profitability.

Speaker #2: We consider the revenue per rep number of 1.9 to be an amalgam of bringing people on, so that we don't let the sum drop to 1.9.

Speaker #2: Now, the person in the Pacific Northwest is not at 1.9, but she is not far behind. The person up in the Northeast is right up there.

Speaker #2: So it just depends. And we work on the total number, because we are bringing on reps, so that we try not to have too much of a dip in that annualized revenue per rep. The annualized revenue per rep is certainly a leading indicator of profitability.

Speaker #1: Okay. Just on the 4C itself, talking cash and obviously the underwritten receivables, and lots of questions throughout the last couple of days. So we had that cash plus that growth and hit those targets?

Mark Flynn: Okay. Just on the 4C itself, talking cash and obviously the undrawn receivables, and lots of questions throughout the last couple of days. We had that cash plus the receivables. Is that enough to fund that growth and hit those targets?

Speaker #2: Well, we've been very specific that our liquidity is enough to hit our targets. I know people would like to see more cash there, but that doesn't mean we have to have it.

Tom Spurling: Well, we've been very specific that our liquidity is enough to hit our targets. I know people would like to see more cash there, but that doesn't mean we have to have it. We are operating our company with great discipline, investing absolutely. You can see those investors, long-term investments in China are being deferred. There are deferrals being made, but in the growth markets, we're making the investments we need using the cash we have. Yes.

Speaker #2: We are operating our company with great discipline. Investing, absolutely. You can see we're not—those investments, long-term investments in China, are being deferred. So there are deferrals being made, but in the growth markets, we're making the investments we need using the cash we have.

Speaker #1: And 18 quarters of funding, so obviously based on that June quarter run rate, if we knock it out of the park, if and when we knock it out of the park, what happens if you spend—and do we need to spend—to hit the top of that guidance?

Mark Flynn: Over 18 quarters of funding, so obviously based on that June quarter run rate, if we knock it out of the park, if and when we knock it out of the park, what happens if you spend, and do we need to spend to hit the top of that guidance?

Tom Spurling: What we've stated is our liquidity position is enough to hit our guidance. That's what we've said.

Speaker #2: We think that our—what we've stated is our liquidity—our liquidity position is enough to hit our guidance. That's what we've said. And 18 quarters, it's an interesting ratio.

Mark Flynn: Okay.

Tom Spurling: 18 quarters, it's an interesting ratio, isn't it? I don't think in the history of Nova Eye we've ever had that much cash on hand. It's a relative thing, isn't it? We've never had 18 quarters of cash on hand. There you go. We've got an unprecedented amount of cash at the moment.

Speaker #2: Isn't it? I don't think, in the history of Nova Eye, we've ever had that much cash on hand. It's a relative thing, isn't it?

Speaker #2: We've never had 18 quarters of cash on hand, so there you go. We've got an unprecedented amount of cash at the moment.

Speaker #1: On the market scope reports and sort of claiming that the market is at sort of US 944 million a year market and Glaucos is obviously the incumbent and we've referenced their them in the presentation as well.

Mark Flynn: On the market scope reports and sort of claiming that the market is at sort of $944 million a year market. Glaukos is obviously the incumbent, we've referenced them in the presentation as well. How does Nova Eye win against Glaukos and get more of that $944 million?

Speaker #1: How does Nova Eye win against Glaukos and get more of that $944 million?

Speaker #2: So our pitch—our pitch is tissue sparing, implant-free. The Glaucos solution is about putting a piece of titanium or the Glaucos stent is about putting titanium piece of titanium in the patient's eye and providing a an additional drainage pipe just like we've been talking over the years about drilling a hole in order to let the stuff let the aqueous humor flow.

Tom Spurling: Our pitch is tissue sparing, implant free. The Glaukos solution is about putting a piece of titanium, or the Glaukos stent is about putting piece of titanium in the patient's eye, providing an additional drainage pipe, just like we've been talking over the years about drilling a hole in order to let the aqueous humor flow. Now, we provide a tissue sparing, working with the body's anatomy, that offering is appealing to doctors because it's appealing to patients. Patients are what drive the doctor's behavior. Now, plenty of people will say doctors are only in it for the money. Everybody has to make a living. Everyone also wants enduring demand for whatever service they're providing. Enduring demand comes from offering good outcomes to your patient. We think we've got a tissue-sparing, implant-free solution that is appealing.

Speaker #2: Now, we provide a tissue-sparing option, working with the body's anatomy, and that offering is appealing to doctors because it's appealing to patients. And patients are what drive doctors' behavior.

Speaker #2: Now, plenty of people will say doctors are only in it for the money. Everybody has to make a living, but everyone also wants enduring demand for whatever service they're providing.

Speaker #2: And so enduring demand comes from offering good outcomes to your patients. And we think we've got a tissue-sparing, implant-free solution that is appealing.

Tom Spurling: Morgan Micheletti, we walked around Sydney with one of our good customers, Dr. Morgan Micheletti from Houston. His message to some of the fund managers we talked to there was absolutely tissue-sparing, good for the patient, is why he chooses iTrack Advance.

Speaker #2: I—Morgan Micheletti, we walked around Sydney with one of our good customers, Dr. Morgan Micheletti from Houston, and his message to some of the fund managers we talked to there was, "Absolutely, tissue-sparing, good for the patient is why he chooses iTrack Advance."

Speaker #1: The numbers sort of show that the eye tracker is about 4% of the U.S. procedures. It has grown. Some would say that's still low after several years.

Mark Flynn: The numbers sort of show that the iTrack is about 4% of the US procedures. It has grown. Some would say that's still low after several years. What's the growth rate from here?

Speaker #1: What's the growth rate from here?

Speaker #2: So I think it's still low. Yeah, it is still low after several years. However, across those years, we've grown every year at 25%. And now we're making a profit.

Tom Spurling: It is still low. Yeah, it is still low after 7 years. However, across those years, we have grown every year at 25%, and now we are making a profit. I think we have grown at the right rate. Now, that just means we have got room to grow, not that we have got something wrong with what we are doing. Simple as that.

Speaker #2: So I think we've grown at the right rate. Now, that just means we've got room to grow, not that we've got something wrong with what we're doing.

Speaker #2: Simple as that.

Speaker #1: A couple of questions on China—there are always questions on China. We've made some statements in the presentation, but obviously, China is down 88% on a low number, as you mentioned.

Mark Flynn: A couple of questions on China. There is always questions on China. We have made some statements in the presentation, but obviously China down 88%, on a low number, as you mentioned, but is there anything else happening in China to update people?

Speaker #1: But is there anything else happening in China to update people?

Speaker #2: No, I've just reiterated what I said. China is a nascent market. We have our approvals in place. Our investments will be conducted very slowly because we get fast return at the moment in America.

Tom Spurling: No. I will just reiterate what I said. China is a nascent market. We have our approvals in place. Our investments will be conducted very slowly, because we get fast return at the moment in America and in Europe. It is just mass. It is about managing that cash. It is just delivering what we promised.

Speaker #2: And in Europe, it's just mass. It's about managing that cash. It's just delivering what we promise.

Mark Flynn: One, noting the time, just we might, if there is any further questions, get them into the Q&A, but what is the one metric investors should watch this year?

Speaker #1: Just noting the time—if there are any further questions, please get them into the Q&A. But what is the one metric investors should watch this year?

Speaker #2: Well, I think we've provided a lot of guidance on that operating leverage. And there are—well, sorry—there are statistics in the history which show we're getting operating leverage.

Tom Spurling: Well, I think we've provided a lot of guidance on that operating leverage. Well, sorry, there's statistics in the history which show getting operating leverage. You can't go past the United States, though. We have our own sales force. I know where we control exactly what's going on. We have not passed the responsibility for talking to doctors to some big multinational who doesn't care about us. They are our own people that love us, selling our product, and who love the product. It's 80% or 79% the last 6 months. That's going to continue to dominate. Watching our quarterly sales in the US is the main, is a leading indicator.

Speaker #2: You can't go past the United States, though. We've got a very—we have our own Salesforce, I know, where we control exactly what's going on.

Speaker #2: We have not passed our—the responsibility for talking to doctors—to some big multinational who doesn't care about us. They are our own people that love us, selling our product, and who love the product.

Speaker #2: So it's 80%, or 79% the last six months. That's going to continue to dominate. So watching our quarterly results—watching the quarterly sales in the US—is the main, is a leading indicator.

Speaker #1: Probably a good one just to run through now. If doctor demand is certainly controlling our growth—doctor demand, I should say, rather than patient—how do we get more patients and more doctors to find out about our product?

Mark Flynn: Probably a good one just through now. If patient demand certainly is controlling our growth, and doctor demand, I should say, rather than patient, how do we get more patients and more doctors to find out about our product?

Speaker #2: That's about boots on the ground. That is about that line item, sales and marketing. And plenty of people have their opinions on how much marketing we should do.

Tom Spurling: That's about boots on the ground. That is about that line item, sales and marketing. Plenty of people have their opinions on how much marketing we should do. In the end, having reps in the territory talking to doctors, is what gets our name out there. Having peers, having the clinical data, having the people so that the reps can talk to a new doctor and say, "Look at all this clinical data, Doc. It works. Look at your peer down the road. He or she is using it. Why don't you give it a go?" That message, Nova Eye is, we're a substantial company. We're becoming well-known. We have a group of doctors that follow us. That all gives confidence to potential new accounts, and that's what drives us.

Speaker #2: And in the end, having reps in the territory talking to doctors is what gets our name out there. And having peers, having the clinical data, having the people so that the reps can talk to a new doctor and say, "Look at all this clinical data, doc."

Speaker #2: It works. And look at your peer down the road—he or she is using it. Why don't you give it a go? That message—and Nova Eye—is, you know, we're a substantial company.

Speaker #2: We've got a—we're becoming well-known. We have a group of doctors that follow us, and that all gives confidence to potential new accounts. And that's what drives us.

Speaker #1: Thank you, Tom. Just again noting time—just going past 12 o'clock Sydney time—but thanks very much to everyone for joining. If there are any questions, Tom's and my details are on all the releases.

Mark Flynn: Thank you, Tom. Just again, noting time, just gone past 12:00 Sydney time, thanks very much to everyone for joining. If there's any questions, Tom or I's details are on all the releases. Please feel free to give us a call or drop us an email. Thanks again, thanks to Tom.

Speaker #1: Please feel free to give us a call or drop us an email. But thanks again and thanks to Tom.

Speaker #2: Thanks. Thanks, everyone. Thank you.

Tom Spurling: Thanks, everyone. Thank you.

Operator: Goodbye