EYE Summary (August 2024): Incredibly Undervalued, page-99

You'll pick some info up TheAnalyst007, it will do you no harm to your analysis skills even if you wish to set out to prove that I am wrong lol. Material in financial reporting is considered something which could 'reasonably be expected to influence the decisions made by users of general purpose financial statements based on that information'.

In this case the material improvement is confined to the glaucoma segment. Sales increased by 37% and in the US by 73%, so there is a large part of your answer. But you have to see the whole picture and it has been a long time since they reported, organisations are often set up with sales and admin and others separate, so that they can report accordingly. And it stands to reason that a large increase in sales will result in a large increase in expenses, even when the organsation has a captive audience. The canary in the coalmine is the 2RT dept. which appears to be trying to get FDA certification as well as refining R&D. Big dollars and it also appears to be looking for a fiannce deal to assist it, either by way of a partnership, seed capital or finance. Maybe an even bigger capital raise than the one I expect.

Growth organisations often experience growing pains and this one has a hungry R&D dept. which is no doubt separate to the material improvement dept.