OCC reported financials that were flatter than the market expected. Still burning cash but moving in the right direction, 18 months on same growth trajectory and 2 years cash reserves. Also expanding market for Remplir into Singapore

The good

Orthocell reports increasing half-yearly revenue of $3.2 million, up 51% from the half year ended 31 Dec 2022 of $2.1 million

Increasing revenue primarily driven by 68% growth in product sales in the half year to 31 Dec 2023.

Half-yearly revenue has grown on average by 23%, compounded for the last two half years following Striate+™ US and Remplir™ AUS product launches in Q2 FY23.

Orthocell entered into a Royalty Agreement with the University of Western Australia to exchange all royalty entitlements for shares in Orthocell.

The Company issued UWA 1.70 million fully paid ordinary shares at a deemed issue price of $0.35 per share . As a result of the issue, UWA will hold 2.35 million shares (1.18%) in OCC on an undiluted basis

Strengthening the Board. Since the new chair, John Van Der Wielen, joined the board, a focus on improved governance and board renewal has taken place. The Board is now majority independent. With an experienced Board and Management Team, market leading products and a strong balance sheet, Orthocell is well positioned to grow product sales alongside its distribution partners, BioHorizons and Device Technologies.

Nerve repair study to support US regulatory approval has commenced and is on track for completion,with results expected 3Q CY2024 • Study provides information regarding mechanism of action that it is not possible to collect in human clinical trials and will support product marketing initiatives, as well as international regulatory approval and reimbursement strategies.

Pivotal tendon repair study shows OrthoATI™ is as effective as surgery in the treatment of lateral epicondylitis • Randomised clinical trialshowed OrthoATI patients experienced almost complete resolution of pain by 1-month post-treatment compared to 6 months after treatment in the surgery group. • The Company will look to appoint a US based corporate adviser to assist the Company in securing a strategic partner to progress OrthoATI without the need for significant investment in the near term. 6. Strong balance sheet with $19.6m cash at bank at the end of the quarter • Well positioned to continue to gain commercial traction with Striate+™ now approved in US, EU/UK and AUS; Remplir™ approved in AUS and Company well-funded to gain US regulatory approval Remplir.

The not so good

Cash receipts received from customers, inclusive of GST, for quarter ended 31 Dec 2023 were $896k, ($898k in the prior quarter). In line with the Company’s expectations, net cash used in operating activities for the quarter was $2.4m.

BioHorizon’s update Sales to BioHorizons have continued to build momentum with 14% growth in Striate+ revenue (salesrevenue plus license revenue) from $1.5M in the half-year ended Jun 2023 to $1.7M in the half year ended 31 Dec 2023 and a 21% growth in Striate+ revenue from $1.4M in the half year ended 31 Dec 2022 to $1.7M in the half year ended 31 Dec 2023.

Device Technologies update Sales to Device Technologies have continued to build momentum with 58% growth in Remplir revenue from $282K in the half year ended Jun 2023 to $445K in the half year ended Dec 2023 and 154% growth in Remplir revenue from $175K in the half year ended Dec 2022 to $445K in the half year ended Dec 2023

Orthocell’s global expansion strategy for its market leading peripheral nerve repair product Remplir, continues to build with the submission of its regulatory application to the Health Services Authority of Singapore for approval to market and sell the Product. • Remplir is now generating and growing revenue in Australia, pending application for use in the US, and Singapore is expected to be the 3rd country in which Remplir is available for sale. • US approvals process progressing according to plan with the Remplir US 510k regulatory study on track for completion and data read out in Q3 CY24, with US regulatory application on track for submission in Q4 CY24 and approval expected shortly thereafter.