Ann: Quarterly Activity Report & Appendix 4C, page-19

Took a few minutes away from work to have a better look.

I suspect that funds/investors are not liking the parallel increase in expenses to revenue and were looking for less of the former and a lot more of the latter. That said, most of the expenses this quarter came in a large uptick in R&D, by far and away the largest relative increase in R&D the Coy’s lifespan. Staff Costs and Admin were largely in line.

The Sept Quarter has always seen a modest jump in expenses going all the way back to 2018 with the following quarter waving between , so it'll be interesting to see how the December quarter plays out.

Having said that, the COGs or CAC, if it can be referred to as such given BH & ACE (via HS) is doing most of the heavy lifting (supported by OCC’s marketing team) needs to show a sizable improvement for the SP to appreciate in respect to outflows. Remember ACE has only just started marketing PerFORM during Sept, so we're yet to see any meaningful revenues from this Division of HS.

Generally speaking the market believes it takes 3-5 years to see this improve, although I suspect it may be sooner given Henry Schein pushing CelGro (as well as the sheer quality of it); which brings me to Average Selling Price of Striate+/PerForm which is roughly in line as its competitors HeliMEND  - Integra® Miltex®,  alloguide and RCM6. Given the higher clinical quality and improved outcomes, it bodes well for sales and conversion of existing clients. And given that OCC has already increased production capacity and designed for manufacturability, the cost to convert should diminish over the next several quarters as revenues increase.

This will undoubtedly not be fast enough nor please those looking for a quick profit however.