Q2 2026 Perimeter Medical Imaging AI Inc Earnings Call

August 20, 2026

Speaker #1: Good afternoon, ladies and gentlemen, and welcome to Perimeter Medical’s Q2 2026 conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session.

Operator: Good afternoon, ladies and gentlemen, and welcome to Perimeter Medical Q2 2026 conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, 18 August 2026. I would now like to turn the conference over to Stephen Kilmer, Investor Relations. Please go ahead.

Operator: Good afternoon, ladies and gentlemen, and welcome to Perimeter Medical Q2 2026 Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, 18 August 2026. I would now like to turn the conference over to Stephen Kilmer, Investor Relations. Please go ahead.

Speaker #1: If at any time during this call you require immediate assistance, please press the star or zero for the operator. This call is being recorded on Tuesday, August 18, 2026.

Speaker #1: I would now like to turn the conference over to Stephen Kelmer, Investor Relations. Please go ahead.

Speaker #2: Thank you. Good afternoon, everyone. Let me start by pointing out that this conference call will include forward-looking statements within the meaning of applicable securities laws.

Stephen Kilmer: Thank you. Good afternoon, everyone. Let me start by pointing out that this conference call will include forward-looking statements within the meaning of applicable securities laws. These may include statements regarding the future financial position, business strategy and strategic goals, commercial activities and timing, competitive conditions, research and development activities, projected costs and capital expenditures, research and clinical testing outcomes, the potential benefits of our products, including Perimeter S-Series OCT and Claire OCT plus AI, Perimeter's ability to broaden its user base and system utilization, expectations regarding new products and the timing thereof, and expectations regarding opportunities for market expansion. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond our control, including risks and uncertainties described from time to time in our public filings and press releases, which are posted on sedarplus.ca. Our results may differ materially from those projected on today's call.

Speaker #2: These may include statements regarding the future financial position, business strategy and strategic goals, commercial activities and timing, competitive conditions, research and development activities, projected costs and capital expenditures, research and clinical testing outcomes, the potential benefits of our products (including Perimeter S-Series OCT and Clare OCT plus AI), Perimeter's ability to broaden its user base and system utilization, expectations regarding new products and the timing thereof, and expectations regarding opportunities for market expansion.

Stephen Kilmer: Perimeter's ability to broaden its user base and system utilization, expectations regarding new products and the timing thereof, and expectations regarding opportunities for market expansion. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond our control, including risks and uncertainties described from time to time in our public filings and press releases, which are posted on sedarplus.ca. Our results may differ materially from those projected on today's call.

Speaker #2: Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond our control, including risks and uncertainties described from time to time in our public filings and press releases, which are posted on CedarPlus.ca.

Speaker #2: Our results may differ materially from those projected on today's call. No forward-looking statement can be guaranteed. Perimeter undertakes no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information or future events, other than as required by law.

Stephen Kilmer: No forward-looking statement can be guaranteed. Perimeter undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, other than as required by law. On the call representing the company are Adrian Mendes, Perimeter's Chief Executive Officer, Sara Brien, the company's Chief Financial Officer, and Andrew Berkeley, Perimeter's Chief Innovation Officer and Co-founder. With that said, I'll now turn the call over to Sara.

Stephen Kilmer: No forward-looking statement can be guaranteed. Perimeter undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law. On the call representing the company are Adrian Mendes, Perimeter's chief executive officer; Sara Brien, the company's chief financial officer; and Andrew Berkeley, Perimeter's chief innovation officer and co-founder. With that said, I'll now turn the call over to Sara.

Speaker #2: On the call, representing the company, are Adrian Mendez, Perimeter's Chief Executive Officer; Sarah Bryan, the company's Chief Financial Officer; and Andrew Berkeley, Perimeter's Chief Innovation Officer and Co-Founder.

Speaker #2: With that said, I'll now turn the call over to Sarah.

Speaker #3: Thanks, Steve. Good afternoon, everyone, and welcome to our second quarter 2026 conference call. On behalf of the management team and everyone at Perimeter, I would like to thank you for your ongoing interest in our company.

Sara Brien: Thanks, Steve. Good afternoon, everyone, and welcome to our Q2 2026 conference call. On behalf of the management team and everyone at Perimeter, I would like to thank you for your ongoing interest in our company. For those of you who are our shareholders, we appreciate your continued interest and support. Before turning the call over to Adrian to provide a commercial update, I'd like to provide a brief update on our preliminary financial results. To streamline things, all the numbers I will refer to have been rounded, so they are approximate. Also, as a reminder, we report in USD. Finally, as you may have noticed, these numbers are preliminary and subject to change. The reason driving this is the accounting treatment and classification of the convertible debenture that was closed in Q2 unit-based structure.

Speaker #3: For those of you who are our shareholders, we appreciate your continued interest and support. Before turning the call over to Adrian to provide a commercial update, I'd like to provide a brief update on our preliminary financial results.

Speaker #3: To streamline things, all of the numbers I will refer to have been rounded, so they are approximate. Also, as a reminder, we report in US dollars.

Sara Brien: Also, as a reminder, we report in US dollars. Finally, as you may have noticed, these numbers are preliminary and subject to change. The reason driving this is the accounting treatment and classification of the convertible debenture that was closed in Q2 unit-based structure. While that may impact some of the expense and net loss per share figures, the accounting finalization will not change revenues or cash position.

Speaker #3: Finally, as you may have noticed, these numbers are preliminary and subject to change. The reason driving this is the accounting treatment and classification of the convertible debenture that was closed in Q2, with a unit-based structure.

Speaker #3: While that may impact some of the expense and net loss per share figures, the accounting finalization will not change revenues or our cash position. For the three-month period ending June 30, 2026, the company recorded revenue of $503.1 million.

Sara Brien: While that may impact some of the expense and net loss per share figures, the accounting finalization will not change revenues or cash position. For the three-month period ending 30 June 2026, the company recorded revenue of $503,000, with the full amount coming from recurring revenue, which consisted of the sale of S-Series consumables and system leases, as well as from preventative maintenance services, the sale of ESP warranty programs. This represented 31% sequential growth over Q1 2026. Operating expenses for the three months ended 30 June 2026 were $3.1 million, down 28% from $4.3 million in the same period in 2025. Q2 2026 net loss was $2.6 million or $0.02 per common share, a 33% improvement compared to $3.9 million or $0.04 per common share loss in the three months ended 30 June 2025.

Sara Brien: For the three-month period ending 30 June 2026, the company recorded revenue of $503,000, with the full amount coming from recurring revenue, which consisted of the sale of S-Series consumables and system leases, as well as from preventative maintenance services, the sale of ESP warranty programs. This represented 31% sequential growth over Q1 2026.

Speaker #3: With the full amount coming from recurring revenue, which consisted of the sale of S Series consumables and system leases, as well as from preventative maintenance services and the sale of ESP warranty programs.

Speaker #3: This represented 31% sequential growth over Q1 2026. Operating expenses for the three months ended June 30, 2026, were $3.1 million, down 28% from $4.3 million in the same period in 2025.

Sara Brien: Operating expenses for the three months ended 30 June 2026 were $3.1 million, down 28% from $4.3 million in the same period in 2025. Q2 2026 net loss was $2.6 million or $0.02 per common share, a 33% improvement compared to $3.9 million or $0.04 per common share loss in the three months ended 30 June 2025. Cash used in operating activities in the six months ended 30 June 2026 was $5.1 million, a 23% year-over-year decrease from Q2 2025. As of 30 June 2026, cash was 6.4 million USD. With that, I will now turn the call over to Adrian.

Speaker #3: Second quarter 2026 net loss was $2.6 million, or $0.02 per common share. This represents a 33% improvement compared to a $3.9 million, or $0.04 per common share loss, in the three months ended June 30, 2025.

Speaker #3: Cash used in operating activities in the six months ended June 30, 2026, was $5.1 million, a 23% year-over-year decrease from Q2 2025. As of June 30, 2026, cash was $6.4 million US dollars.

Sara Brien: Cash used in operating activities in the six months ended 30 June 2026 was $5.1 million, a 23% year-over-year decrease from Q2 2025. As of 30 June 2026, cash was 6.4 million USD. With that, I will now turn the call over to Adrian.

Speaker #3: With that, I'll now turn the call over to Adrian.

Speaker #4: Thanks, Sarah. And thanks again, everyone, for your time and attention today. As we've talked about in the past, our goal in the quarter leading up to FDA approval of our next-generation AI-enabled Clare device was to seed the market with our legacy S-Series OCT in order to create a strong network of early adopters and technology champions.

Adrian Mendes: Thanks, Sara. Thanks again, everyone, for your time and attention today. As we have talked about in the past, our goal in the quarters leading up to FDA approval of our next generation AI-enabled Claire device was to seed the market with our legacy S-Series OCT in order to create a strong network of early adopters and technology champions. Though our commercial team has been and remains relatively lean, it achieved that goal, and the positive momentum we built through 2025 and into 2026 translated into strong sequential growth of recurring revenues in Q2 2026. Today, despite it only being about four months since the FDA PMA approval of our next generation Claire device, we have already made two Claire placements and the first hospital has commercially deployed the technology.

Speaker #4: Though our commercial team has been and remains relatively lean, it achieved that goal. The positive momentum we built through 2025 and into 2026 translated into strong sequential growth of recurring revenues in the second quarter of 2026.

Speaker #4: Today, despite it only being about four months since the FDA PMA approval of our next-generation CLAIRE device, we've already made two CLAIRE placements, and the first hospital has commercially deployed the technology.

Adrian Mendes: Today, despite it only being about four months since the FDA PMA approval of our next generation Claire device, we have already made two Claire placements and the first hospital has commercially deployed the technology. They may not seem like huge numbers at first blush, but it is important to note that we couldn't even talk to any potential Claire customers before we received FDA approval for the technology in March.

Speaker #4: They may not seem like huge numbers at first blush, but it's important to note that we couldn't even talk to any potential CLAIRE customers before we received FDA approval for the technology in March.

Adrian Mendes: They may not seem like huge numbers at first blush, but it is important to note that we couldn't even talk to any potential Claire customers before we received FDA approval for the technology in March. On top of that, we have built a strong sales funnel, which consists of a mix of current legacy S-Series users looking to upgrade to Claire at a higher ASP per procedure due to the AI and brand-new users who are looking to use OCT in the operating room for the first time. On the back of all that strong interest, we continue to have confidence that we will continue to see commercial traction with Claire to grow as we progress through the rest of 2026, and for it to materially accelerate in 2027 and beyond.

Speaker #4: On top of that, we have built a strong sales funnel, which consists of a mix of current legacy S-Series users looking to upgrade to Clare at a higher ASP per procedure due to the AI, and brand-new users who are looking to use OCT in the operating room for the first time.

Adrian Mendes: On top of that, we have built a strong sales funnel, which consists of a mix of current legacy S-Series users looking to upgrade to Claire at a higher ASP per procedure due to the AI and brand-new users who are looking to use OCT in the operating room for the first time. On the back of all that strong interest, we continue to have confidence that we will continue to see commercial traction with Claire to grow as we progress through the rest of 2026, and for it to materially accelerate in 2027 and beyond.

Speaker #4: On the back of all that strong interest, we continue to have confidence that we will continue to see commercial traction with Clare to grow as we progress through the rest of 2026, and for it to materially accelerate in 2027 and beyond.

Speaker #4: And so, to summarize what you've just heard, we saw yet another period of positive commercial traction driven by our legacy S Series product, as demonstrated by our 31% sequential quarter-over-quarter recurring revenue growth in the second quarter. At the same time, we continued to carefully manage our resources as we grow. As a result of our cost-control efforts, we were able to reduce quarterly operating expenses by 28% and net losses by 33%, respectively. Operating cash burn in the first six months decreased by 23%.

Adrian Mendes: To summarize what you have just heard, we saw yet another period of positive commercial traction driven by our legacy S-Series product, as demonstrated by our 31% sequential quarter-over-quarter recurring revenue growth in Q2. At the same time, we continue to carefully manage our resources as we grow. As a result of our cost control efforts, we were able to reduce quarterly operating expenses by 28% and net losses by 33%, respectively, and operating cash burn in the first 6 months decreased by 23%. We received PMA approval from the FDA for our next-generation AI-enabled Claire device in March. Soon thereafter, we achieved the first 2 commercial placements, and last week we announced the technology's first commercial deployment by a hospital. We plan on methodically and opportunistically expanding our commercial team to drive growth without getting too far out ahead of it.

Speaker #4: We received PMA approval from the FDA for our next-generation, AI-enabled Clare device in March. Soon thereafter, we achieved the first two commercial placements, and last week we announced the technology's first commercial deployment by a hospital.

Adrian Mendes: We received PMA approval from the FDA for our next-generation AI-enabled Claire device in March. Soon thereafter, we achieved the first 2 commercial placements, and last week we announced the technology's first commercial deployment by a hospital. We plan on methodically and opportunistically expanding our commercial team to drive growth without getting too far out ahead of it. Finally, pulling all of this together, we believe that we are at a pivotal inflection point in our business and the cusp of entering into a stage of anticipated rapid growth.

Speaker #4: We plan on methodically and opportunistically expanding our commercial team to drive growth without getting too far out ahead of it. And finally, pulling all of this together, we believe that we're at a pivotal inflection point in our business and on the cusp of entering into a stage of anticipated rapid growth. In a brand-new market like ours, it is difficult to predict the timing of growth precisely, but we believe that 2027 revenues will be materially higher than 2026.

Adrian Mendes: Finally, pulling all of this together, we believe that we are at a pivotal inflection point in our business and the cusp of entering into a stage of anticipated rapid growth. In a brand-new market like ours, it is difficult to predict the timing of growth precisely, but we believe that 2027 revenues will be materially higher than 2026. It is an exciting time for us, and we look forward to keeping you updated on our progress. With that, I would like to now open up the call for your questions. Operator?

Adrian Mendes: In a brand-new market like ours, it is difficult to predict the timing of growth precisely, but we believe that 2027 revenues will be materially higher than 2026. It is an exciting time for us, and we look forward to keeping you updated on our progress. With that, I would like to now open up the call for your questions. Operator?

Speaker #4: It's an exciting time for us, and we look forward to keeping you updated on our progress. With that, I'd now like to open up the call for your questions.

Speaker #4: Operator?

Speaker #2: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. To ask a question, you may press the star followed by the number 1 on your telephone keypad.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. To ask a question, you may press star followed by the number 1 on your telephone keypad, and if you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star followed by the number 2. With that, our first question comes from the line of Michael Freeman with Raymond James. Please go ahead.

Speaker #2: And if you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press the star key followed by the number 2.

Speaker #2: With that, our first question comes from the line of Michael Freeman with Raymond James. Please go ahead.

Speaker #5: Hi, good evening. Congratulations on the quarter. Congratulations on the new deployments. I'm glad to see this leg of your revenue growth story start. I'd like to ask about the pipeline.

Michael Freeman: Well, good evening. Congratulations on the quarter. Congratulations on the new deployments. Glad to see this leg of your revenue growth story start. I would like to ask about the pipeline. Last quarter you gave a bit of a granularity on how many, I guess, leads or mature leads you have in your pipeline. What detail could you give us about that?

Speaker #5: Last quarter, you gave a bit of granularity on how many, I guess, leads or mature leads you have in your pipeline. What detail could you give us about that?

Speaker #4: Yeah, I think in general, the pipeline continues to grow, Michael. We're able to now—last quarter, we had just started doing it—but at this point in time, we've been able to continue to move things through that pipeline.

Adrian Mendes: Yeah, I think in general, the pipeline continues to grow, Michael. Last quarter we had just started doing it, but at this point in time, we have been able to continue to move things through that pipeline. Two of them have come through the other end at this point. I think over the next few months you will start to see more of those, well, I do not think. We will start to see more of those come through as we continue to put more into the front end of the pipe. What is key for us right now is not just moving what is in that pipe with our small team, as mentioned, but really building that pipe out larger, putting more into the front end. That is where a lot of our focus has been right now, both building out the sales team as well as increasing the movement through the pipe.

Speaker #4: Two of them have come through the other end at this point. And I think over the next few months, you'll start to see more of those—I don't think.

Speaker #4: We will start to see more of those come through as we continue to put more into the front end of the pipe. What's key for us right now is not just moving what's in that pipe with our small team, as mentioned, but really building that pipe out larger.

Speaker #4: We're putting more into the front end, and that's where a lot of our focus has been right now—both building out the sales team as well as increasing the movement through the pipeline.

Adrian Mendes: That is where a lot of our focus has been right now, both building out the sales team as well as increasing the movement through the pipe.

Speaker #5: Gotcha. Gotcha. Would you be willing to put some numbers to that? I think in the last quarter you talked about 50 qualified leads. Or is this a number that is in flux?

Michael Freeman: Got it. Would you be willing to put some numbers to that? I think in the last quarter you talked about 50 qualified leads. Is this a number that is in flux?

Speaker #4: It's in flux all the time. I think it's just safe to say that the leads that we have continue to increase and continue to move.

Adrian Mendes: It is in flux all the time. I think it is just safe to say that the leads that we have continue to increase and continue to move. It changes consistently, obviously.

Speaker #4: So, but it changes consistently, obviously. Obviously.

Speaker #5: That's fair. I recognize that it's early. I wanted to talk about OPEX. Yeah, there is a nice reduction in OPEX year over year. I recognize that with the launch of a product, we're going to want to invest in the sales team.

Michael Freeman: Sure. I recognize that it is early. I wanted to talk about OpEx. There is a nice reduction in OpEx year-over-year. Recognize that with the launch of a product, we are going to want to invest in the sales team. Maybe Sara, how should we think about OpEx as the year proceeds?

Speaker #5: Maybe, Sarah, how should we think about OPEX as the year proceeds?

Speaker #3: Yeah. Thank you, Michael. I think OPEX, really from my perspective, is we're going to see sort of relatively modest growth in operating expenses throughout the rest of the year, really focusing our energies in cost growth in the sales and marketing area.

Sara Brien: Yeah.

Adrian Mendes: Go ahead, Sara.

Sara Brien: I think OpEx really, from my perspective, is we are going to see relatively modest growth in operating expenses throughout the rest of the year, really focusing our energies and cost growth in the sales and marketing area. We are obviously conscious of burn and keeping our cash position healthy. It is moving resources around between the operating areas.

Speaker #3: So we're obviously conscious of burn and keeping our cash position healthy, so it's about moving resources around between the operating areas.

Speaker #5: Okay, all right. I'd like to ask how you are deploying the sales team currently. What do you view as—well, if you could just give us an overview of the initial sales strategy in the first few months following Clare's approval.

Michael Freeman: Okay. All right. I would like to ask on how you are deploying the sales team currently. If you could just give us an overview of the initial sales strategy in the first few months following Claire's approval.

Speaker #4: Yeah, I can give you some more color on that. So as you know, we've got a number—several dozen—customers on the older S Series product.

Adrian Mendes: Yeah, I can give you some more color on that. As you know, we have got a number, several dozen of customers on the older S-Series product. Then the pipeline, as we talked about, of new customers. There are two elements to our path forward. One is converting existing customers over to Claire, and the other is bringing on board some of the new customers from the pipeline. We are focused in the areas we have existing customers, even for the new ones. Dallas, of course, is a big center for us, Utah, Colorado, Phoenix. There are a few other areas that we have got customers. Part of our strategy is to focus in on those geographies, those metropolitan areas, number one. Number two, working through various accounts, whether they are already on the S-Series or brand new, through.

Speaker #4: And then the pipeline, as we talked about, of new customers. So, there's two elements to our path forward. One is converting existing customers over to Clare.

Speaker #4: And the other is bringing on board some of the new customers from the pipeline. We're focused in the areas where we have existing customers, even for the new ones, so Dallas, of course, is a big center for us.

Speaker #4: Utah, Colorado, Phoenix—there's a few other areas where we have customers. So, really focused, part of our strategy is focusing on those geographies, those metropolitan areas, number one.

Adrian Mendes: Part of our strategy is to focus in on those geographies, those metropolitan areas, number one. Number two, working through various accounts, whether they are already on the S-Series or brand new, through. As it turns out, even if it is at an existing customer because Claire has AI on it now needs to go through. Whereas we did not have to do this with S-Series, with Claire, we do have to go through all the AI review committees and IT reviews within the hospital. It is not a quick flip. It does take them time to run through the review of our AI.

Speaker #4: Number two, working through various accounts, whether they are already on the S Series or brand new. As it turns out, even if it's at an existing customer, because Clare has AI on it, it now needs to go through—whereas we didn't have to do this with S Series, with Clare, we do have to go through all the AI review committees and IT reviews within the hospital.

Adrian Mendes: As it turns out, even if it is at an existing customer because Claire has AI on it now needs to go through. Whereas we did not have to do this with S-Series, with Claire, we do have to go through all the AI review committees and IT reviews within the hospital. It is not a quick flip. It does take them time to run through the review of our AI. That adds time there. If it is at an account that we do not have any devices at, then it is a full sales cycle to include contracting and pricing and everything. The sales strategy is folks in the hubs, the places we have customers, have multiple tracks, both in converting existing customers as well as getting new customers on board.

Speaker #4: So it isn't a quick flip. It does take them time to run through the review of our AI, so that adds time there. And then, of course, if it's at an account where we don't have any customers or devices yet, then it's a full sales cycle to include contracting, pricing, and everything.

Adrian Mendes: That adds time there. If it is at an account that we do not have any devices at, then it is a full sales cycle to include contracting and pricing and everything. The sales strategy is folks in the hubs, the places we have customers, have multiple tracks, both in converting existing customers as well as getting new customers on board. The converting of existing customers, the major work that needs to be done there is go through the IT AI review boards that they have at the hospitals, as well as move to the higher price for the AI.

Speaker #4: So the sales strategy is to focus on the hubs—the places where we have customers. We have multiple tracks, both on converting existing customers as well as bringing new customers on board.

Speaker #4: And then, the converting of existing customers—the major work that needs to be done there is to go through the IT/AI review boards that they have at the hospitals.

Adrian Mendes: The converting of existing customers, the major work that needs to be done there is go through the IT AI review boards that they have at the hospitals, as well as move to the higher price for the AI.

Speaker #4: As well as move to the higher price for the AI.

Speaker #5: Okay, thank you very much. I'm going to pass the line.

Michael Freeman: Okay. Thank you very much. I am going to pass to the line.

Speaker #4: Thanks, Michael.

Adrian Mendes: Thanks, Michael.

Speaker #2: And your next question comes from the line of Camp Delaware with Brookline Capital Markets. Please go ahead.

Operator: Your next question comes from the line of Kemp Dolliver with Brookline Capital Markets. Please go ahead.

Speaker #6: Hi. Thank you. I have a couple of questions. Adrian, acknowledging your earlier comment about precision around uptake, are you still comfortable with two to three times revenue growth in 2026?

Kemp Dolliver: Thank you. Couple questions. Adrian, acknowledging your earlier comment about your precision around uptake, are you still comfortable with 2 to 3 times revenue growth in 2026?

Adrian Mendes: Well, we will see how the revenue ends up. There is a lot of opportunities that are towards the later stage of the sales pipeline funnel, whatever. It will be a matter of whether they cross over this year or they flip over, cross over the boundary into next year. Still very bullish on our growth trajectory and our ability to get customers onto the Claire. I think we are still in line on that front. We will kind of see how things time out. I think what we are working through now from a timing standpoint is actually getting through those AI committees at the hospitals, which are turning out to be, there is a lot of education that has to go into that, which is something we have not had to do in the past. Our AI from a risk standpoint from the hospital, it really is not that risky.

Speaker #4: We'll see how the revenue ends up. There are a lot of opportunities that are sort of towards this later stage of the sales pipeline funnel or whatever.

Speaker #4: And it'll be a matter of when they, whether they cross over this year or they flip over, cross over the boundary into next year.

Speaker #4: Still very bullish on our growth trajectory and our ability to get customers onto the CLAIRE. So I think we're still in line on that front.

Speaker #4: And we'll kind of see how things time out. I think what we're working through now, from a timing standpoint, is actually getting through those AI committees at the hospitals.

Adrian Mendes: I think what we are working through now from a timing standpoint is actually getting through those AI committees at the hospitals, which are turning out to be, there is a lot of education that has to go into that, which is something we have not had to do in the past. Our AI from a risk standpoint from the hospital, it really is not that risky.

Speaker #4: Which is turning out to be—there's a lot of education that has to go into that, which is something we haven't had to do in the past.

Speaker #4: But our AI, from a risk standpoint for the hospital, really isn't that risky. We're not connected to the internet. It's not a continuous learning system.

Adrian Mendes: We are not connected to the internet. It is not a continuous learning system. It is a fixed AI algorithm, so it does not hit any of the real concerns that these committees have. We still have to go through those. So how that translates into actually getting Claire's earning revenue, we will see. We have got a couple, like I said, already across the threshold, and we will see how the rest of them fall out over the next 4 months this year and then over the next 6 to 12 months into next year.

Speaker #4: It's a fixed AI algorithm, so it doesn't address any of the real concerns that these committees have. But we still have to go through those.

Speaker #4: So how that translates into actually getting Clare's earning revenue, we'll see. We've got a couple, like I said, already across the threshold, and we'll see how the rest of them fall out over the next four months this year, and then over the next six to twelve months into next year.

Kemp Dolliver: In the AI reviews, I acknowledge it is only a couple of places and it is all new, but how sophisticated are these review boards on the technology given everything that is coming at them and this pace of change?

Speaker #6: Are the AI reviews—and again, I acknowledge it's only a couple of places and it's all new—but how sophisticated are these review boards on the technology, given everything they have that's coming at them and this pace of change?

Speaker #4: They are what's interesting is that their processes from what we've observed, the process within various hospitals are evolving in real time also. So what was the process three months ago has now changed and is now there's a new process with different people and different milestones and things like that.

Adrian Mendes: What is interesting is that their processes, from what we have observed, the processes within various hospitals are evolving in real time also. What was the process 3 months ago has now changed and is now there is a new process with different people and different milestones and things like that. They are getting better. Fundamentally, what they are most concerned about, I think, is really twofold. One is your device going out of the system to do its inference, or is it locally contained within the hospital? For us, that is easy. It is all locally contained inside the device itself. There is nothing going out to the cloud or to the internet. They are concerned about that. They want to make sure that is the case. The other thing they are concerned about is the model that is validated and then gets moved into the hospital.

Speaker #4: They're getting better. Fundamentally, what they're most concerned about, I think, is really twofold. One is: Is your device going out of the system to do its inference, or is it locally contained within the hospital?

Speaker #4: Right? And for us, that's easy. It's all locally contained inside the device itself, so there's nothing going out to the cloud or to the internet.

Adrian Mendes: There is nothing going out to the cloud or to the internet. They are concerned about that. They want to make sure that is the case. The other thing they are concerned about is the model that is validated and then gets moved into the hospital. Is it fixed or does it continuously change in real time? Ours is fixed and does not change in real time. That reduces risk from their standpoint. I guess a third thing, which does take a bit more sophistication, but I think people generally understand this, is the model a generative model or not? Generative being more risky because it is generating content as opposed to not.

Speaker #4: So they're concerned about that, right? They want to make sure that is the case. And then the other thing they're concerned about is, when the model is validated and then gets moved into the hospital, is it fixed, or does it continuously change in real time?

Adrian Mendes: Is it fixed or does it continuously change in real time? Ours is fixed and does not change in real time. That reduces risk from their standpoint. I guess a third thing, which does take a bit more sophistication, but I think people generally understand this, is the model a generative model or not? Generative being more risky because it is generating content as opposed to not. Ours is not generative. It is really an image detection, an image recognition type of model. That also falls in the lower risk bucket. But the ability to communicate that to the right people and go through the process in the right way is what the navigation that we need to do with all our customers now is, which is something we have not had to do in the past.

Speaker #4: And ours is fixed and doesn't change in real time, right? So then that reduces risk from their standpoint. And I guess a third thing, which does take a little bit more sophistication, but I think people generally understand this, is: is the model a generative model or not?

Speaker #4: Right? And generative being more risky because it's generating content as opposed to not. Like ours is not generative. It is really an image detection, an image recognition type of model.

Adrian Mendes: Ours is not generative. It is really an image detection, an image recognition type of model. That also falls in the lower risk bucket. But the ability to communicate that to the right people and go through the process in the right way is what the navigation that we need to do with all our customers now is, which is something we have not had to do in the past. Frankly, the hospitals have not really had to do it much until obviously the past couple of years. Their process are evolving as well.

Speaker #4: So that also falls in the lower risk bucket. But the ability to communicate that to the right people and go through the process in the right way is really the navigation that we need to do with all our customers now.

Speaker #4: Which is something we have not had to do in the past. And frankly, the hospitals haven't really had to deal with much until, obviously, the past couple of years.

Adrian Mendes: Frankly, the hospitals have not really had to do it much until obviously the past couple of years. Their process are evolving as well.

Speaker #4: So, their processes are evolving as well.

Speaker #6: All right. Okay. And one last question: you had planned to file with CMS for HCPCS codes in June. Were you able to do that as expected?

Kemp Dolliver: All right. Okay. One last question is, you had planned to file with CMS for HCPCS codes in June. Were you able to do that as expected?

Speaker #4: Yes. Yeah, we were able to get that filing in place, so that's being reviewed by CMS at this time.

Adrian Mendes: Yes. We were able to get that filing in place. That is being reviewed by CMS at this time.

Speaker #6: Great. Thank you.

Kemp Dolliver: Great. Thank you.

Speaker #4: Thanks, Ken.

Adrian Mendes: Thanks, Kemp.

Speaker #2: And once again, if you would like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of Scott McCauley with Paradigm Capital. Please go ahead.

Operator: And once again, if you would like to ask a question, please press star one on your telephone keypad. Your next question comes from the line of Scott McAuley with Paradigm Capital. Please go ahead.

Speaker #5: Hi Adrian and Sarah. Thanks for taking the questions. I guess just to confirm, how many sites in total are currently using either the S Series or Clare?

Scott McAuley: Hi, Adrian and Sara, and thanks for taking the questions. Just to confirm, how many sites are in total are currently using either the S-Series or Claire. I think it was 22 or 23, and expect that is probably the same, given that the two Claire systems were conversions, but just wanting to confirm that.

Speaker #5: I think it was kind of '22 or '23, and I expect that's probably the same, given that the two were CLAIRE systems that were kind of conversions. But just wanting to confirm that.

Speaker #4: Yeah, that assumption is correct. Yeah. The two Clare systems were conversions from the S Series over to Clare.

Adrian Mendes: Yeah, that assumption is correct. The two Claire systems were conversions from the S-Series over to Claire.

Speaker #5: Got it. So is it 22 total, then?

Scott McAuley: Got it. So is it 22 total then?

Speaker #4: Oh, sorry. It's 22. Yes.

Adrian Mendes: Oh, sorry. It's 22. Yes.

Speaker #5: Okay, cool. And then maybe I was a bit confused with the remarks. So, there were the two that were installed, and that was the announcement with the Q1 update, which was great.

Scott McAuley: Cool. Maybe I was a bit confused with the remarks. There were the two that were installed, and that was the announcement with the Q1 update, which was great. Last week, the commercial adoption, I think you phrased it as one commercial site, but from what I recall in the press release, it was mentioned two hospitals. Are both systems now commercially doing procedures, or is it they're both installed and only one's doing procedures? Just

Speaker #5: And then last week, the commercial adoption—I think you phrased it as one commercial site, but from what I recall in the press release, it was mentioned as two hospitals.

Speaker #5: So are both systems now commercially doing procedures, or is it that both are installed and only one is doing procedures? Just kind of clarify that for me there.

Adrian Mendes: Oh

Scott McAuley: clarify that for me there.

Speaker #4: No, no. They're both installed, and they're both doing procedures.

Adrian Mendes: No, they're both installed, and they're both doing procedures.

Speaker #5: Got it. That's great. And how many did you have a sense of—are you kind of happy with the initial pace of the number of procedures that those sites are doing?

Scott McAuley: Got it. That's great. How many did you have a sense of, are you happy with the initial pace of the number of procedures that those sites are doing?

Speaker #4: Yeah, I mean, they've flipped over from all the procedures that used to be on the S series are now on Clare, so I'm happy with that.

Adrian Mendes: Yeah, they've flipped over from all the procedures that used to be on the S-Series are now on Claire. So, I'm happy with that. Now it's a matter of getting more and more Claires out there.

Speaker #4: And now it's a matter of getting more and more CLEARS out there.

Speaker #5: Yeah. Yeah. Absolutely. And do you see the number or the percentage of the procedures that they're using Clarity, or they plan to use Clarity, kind of higher than what maybe they were using the S-Series for?

Scott McAuley: Yeah, absolutely. Do you see the number or the percentage of the procedures that they're using Claire, or they plan to use Claire, higher than what maybe they were using the S-Series for? If there were some procedures that they weren't using S-Series that now that they have Claire, that they're planning to start using it more?

Speaker #5: For example, if there were some procedures where they weren't using S-Series, are they now planning to start using it more because they have Clare?

Speaker #4: No, I don't think there'll be a difference from that respect. There are folks that, with the S series, were using it for certain types of breast cancer.

Adrian Mendes: No, I don't think there'll be a difference from that respect. There are folks that with the S-Series, were using it for certain types of breast cancer, then other types of things as well. With Claire, the trial we ran through was really focused on those types of breast cancer, so DCIS and IDC fundamentally, which is pretty much what the S-Series customers are using it for also. So although it can be the surgeons can use it off-label for other things, the AI was really trained and validated against DCIS and IDC. So I don't really see the release of Claire being a catalyst to expansion to different types of use cases other than those.

Speaker #4: And then other types of things as well. With Clare, the trial we ran through was really focused on those types of breast cancer, right?

Speaker #4: So, DCIS and IDC, fundamentally, right? Which is pretty much what the S series customers are using it for also. So, although the surgeons can use it off-label for other things, the AI was really trained and validated against DCIS and IDC.

Speaker #4: So I don't really see the release of Clare being a catalyst to expansion to different types of use cases other than those. That being said, we're very surprised how often that, when we talk to a surgeon, it's like, "Oh, we've started to use it in this way or that way." That wasn't really part of our original intention, but they find uses—it's interesting.

Adrian Mendes: So I don't really see the release of Claire being a catalyst to expansion to different types of use cases other than those. That being said, we are very surprised how often that we talk to surgeons, "Oh, we have started to use it in this way or that way." That was not really part of our original intention, but it is interesting, they find uses for the technology that we had not anticipated.

Adrian Mendes: That being said, we are very surprised how often that we talk to surgeons, "Oh, we have started to use it in this way or that way." That was not really part of our original intention, but it is interesting, they find uses for the technology that we had not anticipated.

Speaker #4: They find uses for the technology that we hadn't anticipated.

Speaker #5: Absolutely. And on the personnel side, I know that hiring and expanding the sales force and the team was a big part of the capital raise and helping to accelerate the rollout.

Scott McAuley: Absolutely. On the personnel side, I know that hiring, expanding the sales force and the team was a big part of the capital raise and helping to accelerate the rollout. Are you still happy with the people you are seeing? Have you hired anybody in new regions that you are looking to expand in? Any updates on that process would be great.

Speaker #5: Are you still happy with the people you're seeing? Have you hired anybody in any new regions that you're looking to expand into? Any updates in that process would be great.

Speaker #4: Yeah, we're happy with the candidates that we're seeing, and so I think we will start to see them coming on board over the next few months.

Adrian Mendes: Yeah. We are happy with the candidates that we are seeing. I think we will start to see them coming on board over the next few months. Then, of course, there is a training time, and things of that. Where I expect the new sales team to start really delivering from a revenue standpoint, which is ultimately the goal here, is towards the end of the year and then early into next year is where we will start to see that acceleration in revenue due to the increase in our sales team.

Speaker #4: And then, of course, there's training time and things like that. So, where I expect the new sales team to start really delivering from a revenue standpoint—which is ultimately the goal here—is towards the end of the year and then early into next year.

Speaker #4: We'll start to see that acceleration in revenue due to the increase in our sales team.

Speaker #5: That's great. And I guess with the current balance sheet, where do you see the runway giving you the ability to hit some of those acceleration targets?

Scott McAuley: That is great. I guess with the current balance sheet, where do you see the runway giving you to hit some of those acceleration?

Adrian Mendes: Sarah, you want to take that?

Speaker #4: Sarah, do you want to take that?

Speaker #3: Yeah. I mean, I think our intention with our last capital raise was to get 12 months of cash on the balance sheet.

Sara Brien: Yeah. I think our intention of the last capital raise was to get 12 months of cash on the balance sheet, and we're still projecting that same runway at the time of this capital raise.

Speaker #3: And we're still projecting that same runway at the time of this capital raise.

Speaker #5: That's great. Maybe just one or two more. Any other major events or conferences that are coming up in the next few months where you're really able to get out there and kind of pound the table on Clare and broaden the reach with a relatively concentrated audience?

Scott McAuley: That's great. Maybe just one or two more. Any kind of other major events or conferences that are coming up in the next few months, where you'll really be able to get out there and pound the table on Claire and broaden the reach with a relatively concentrated audience?

Speaker #4: On the clinical side, the big conference for us is ASBRS—the annual conference, which happens in the April-May timeframe. So that, at any time, they're pretty well.

Adrian Mendes: On the clinical side, the big conference for us is ASBRS, the annual conference which happens in the April-May timeframe. That is actually timed out pretty well. It came just a month or so after we got FDA approval. So we made a big splash there. But in the breast cancer world, breast surgery world, that's the big one. Then from an investor conference standpoint, there's a few more that we're looking at from now to the end of the year in the fall. We'll make announcements of those as we get closer to the time.

Speaker #4: It came just a month or so after we got FDA approval, so we made a big splash there. But in the breast cancer world, breast surgery world, that's kind of the big one.

Speaker #4: And then, from an investor conference standpoint, there's a few more that we're looking at from now to the end of the year, in the fall.

Speaker #4: And we'll make announcements of those as we get closer to the time.

Speaker #5: That's great. And maybe lastly, I know one of the things you've talked about in the past was a potential NASDAQ dual listing, or kind of leveraging more of the capital markets south of the border.

Scott McAuley: That is great. Then maybe lastly, I think one of the things you talked about in the past was potential NASDAQ dual listing or leveraging more of the capital markets south of the border. Any kind of progress on that in terms of getting ready for that type of an event?

Speaker #5: Any kind of progress on that, in terms of getting ready for that type of an event?

Speaker #4: Yeah, we're in the planning stages on that. So there's work to do on the accounting side, and there's work to do on the legal side.

Adrian Mendes: Yeah. We are in the planning stages on that. There is work to do on the accounting side. There is work to do on the legal side. But we have started the process of planning that out and preparing for that.

Speaker #4: But we've started the process of playing that out and preparing for that.

Speaker #5: That's great. I appreciate you taking the questions. Thanks.

Scott McAuley: That is great. I appreciate you taking the questions. Thanks.

Adrian Mendes: Thanks, Scott.

Speaker #4: Thanks, Scott.

Operator: Thank you. We do have a follow-up question coming from the line of Kemp Dolliver with Brookline Capital Markets. Please go ahead.

Speaker #2: Thank you. And we do have a follow-up question coming from the line of Camp Deliver with Brookline Capital Markets. Please go ahead.

Speaker #1: Great, thanks again. Do you have any sense of the appetite among customers for leasing versus a capital sale?

Kemp Dolliver: Great. Thanks again. Do you have any kind of sense of the appetite for customers to do a lease versus a capital sale?

Adrian Mendes: There certainly is place in our customer base for capital sales or leases. We haven't got to the point where that has been the sort of sticking criteria, frankly, for capital sales versus lease. But definitely it's very standard in the industry. So we're prepared to have those discussions as it comes up with customers where that's fully one of the options we've got in front of us in terms of how we can help get the devices deployed.

Speaker #4: There certainly is a place in our customer base for capital sales or leases. We haven't gotten to the point where that has been the sticking criteria, frankly.

Speaker #4: For capital sales versus lease. But definitely, it's very standard in the industry. So that is we're prepared to have those discussions. As it comes up with customers, we're that's fully one of the options we've got in our in front of us in terms of how we can help get the devices deployed.

Speaker #1: Okay, great. And for purposes of any guidance you've given in the past, did you have an implied estimate of the mix of lease versus sale?

Kemp Dolliver: Okay, great. For purposes of any guidance you've given in the past, did you have an implied estimate of the mix of lease versus sale?

Speaker #4: We have not given any guidance to that on that front.

Adrian Mendes: We have not given any guidance on that front.

Speaker #1: Great. Thank you.

Kemp Dolliver: Great. Thank you.

Speaker #2: And I'm sure I have no further questions at this time. I would like to turn it back to Adrian Mendez for closing remarks.

Operator: I am showing no further questions at this time. I would like to turn it back to Adrian Mendes for closing remarks.

Speaker #4: Thank you. Okay. So the second quarter of '26 marked a critical milestone for Perimeter. Very critical—just this commercialization. This was highlighted by the first placements of our Clare device.

Adrian Mendes: Thank you. Okay, so the Q2 2026 marked a critical milestone for Perimeter. Very critical, just this commercialization. So this is highlighted by the first placements of our Claire device out in the field. This represents a major validation of our clinical, regulatory, and technology development efforts, and it does position us to advance to the next phase of commercialization strategy, which is really now focused primarily on scaling our adoption. Moving forward, we believe that we are approaching a period of rapid revenue growth as Claire adoption really starts to ramp across the country, and particularly in this coming next year. So it is very exciting times here at Perimeter, and we thank you for your time today.

Speaker #4: Out in the field. This represents a major validation of our clinical, regulatory, and technology development efforts. And it does position us to advance to the next phase of commercialization strategy, which is really now focused primarily on scaling our adoption.

Speaker #4: Moving forward, we believe that we are approaching a period of rapid revenue growth as Clare adoption really continues, and particularly in this coming next year.

Adrian Mendes: Moving forward, we believe that we are approaching a period of rapid revenue growth as Claire adoption really starts to ramp across the country, and particularly in this coming next year. So it is very exciting times here at Perimeter, and we thank you for your time today.

Speaker #4: So, it's very exciting times here at Perimeter, and we thank you for your time today.

Operator: Thank you, presenters. Ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.