Fourth Quarter 2023 Financial Highlights

• Commercial revenue increased approximately 50% to $14.1 million compared to the same period in 2022

• Gross profit margin of 87.3% Full-Year 2023 Financial Highlights • Commercial revenue increased approximately 46% to $49.8 million compared to the same period in 2022

• Gross profit margin of 84.5%

• As of December 31, 2023, approximately $89.1 million in cash, cash equivalents, and marketable securities

Full-Year 2023 Financial Results

Our commercial revenue, which excludes BARDA revenue, increased by 46% to $49.8 million in the full-year ended December 31, 2023, compared to $34.1 million in the same period in 2022. Total revenue, which includes BARDA revenue, was $50.1 million compared to $34.4 million in the same period in 2022. Gross profit margin was 84.5% compared to 82.4% in the same period in 2022. Total operating expenses for the year were $86.4 million compared to $59.1 million in the same period in 2022. The increase in operating expenses is largely attributed to an increase of $15.4 million in sales and marketing costs as a result of the expansion of our commercial organization in the first half of 2023. Alongside this expansion, G&A costs increased by $5.0 million due to the increased headcount and related salaries and benefits, stock-based compensation, and recruiting costs. Lastly, R&D costs increased by $6.9 million, primarily driven by the cost of the TONE study, final work and completion of the PMA Supplement to the FDA in June of 2023 for RECELL GO and employee related costs, including stock-based compensation. Net loss for the full-year 2023 was $35.4 million, or a loss of $1.40 per basic and diluted share, compared to a net loss of $26.7 million, or a loss of $1.07 per basic and diluted share, in the same period in 2022. Other income, net for the full-year 2023 was $8.5 million, comprised primarily of $3.1 million in income from our investing activities and a $9.4 million non-cash foreign exchange gain as a result of the foreign entity liquidation for previously deferred unrealized cumulative translation adjustments in equity. This was partially offset by a loss on debt issuance of $1.2 million, debt issuance costs of $0.8 million, the change of fair value for our debt of $1.6 million, and change in fair value of warrants for $0.7 million.

Very positive results on sales, gross margin, guidance, increase in sales staff although net loss increased by $2m. The only reason I can see for the 11% ASX drop is the possibility of a capital raise for expansion. They hope to be self sustaining. i'd be grateful of any 2nd opinion before I buy more. I do like this company