COVID clearly affecting growth plans and share price has been trending down since the 10% gain from the last significant announcement.

Financial Performance

COVID-19 continued to disrupt global healthcare systems in the fourth quarter of 2021. While Q4 CY21 sales increased 70% on Q3 CY21, the Company continued to experience lower demand in its key markets in South Korea and Vietnam which was only partially offset by sales from the USA, Singapore, and Oman. Osteopore achieved S$307,220 (A$310,798) in revenue for Q4 CY21 and ended the quarter with A$4,530,175 cash on hand. Revenue growth in the USA and Europe increasingly provides a commercial foundation on which to build, with a post-COVID strategy in place to scale. As the current pandemic wave eases, Osteopore expects revenue to gradually return to its pre-COVID levels with increased momentum.

During the quarter, the Company continued to work towards maintaining and improving its margins. A gross margin of 71.2% of sales revenue was achieved in Q4 CY21, reflecting an encouraging improvement over the 61.5% achieved in Q4 CY20. The improvement is reflective of the sale of higher- value implants and the Company believes that its cost effective and high margin manufacturing process will ultimately become a major contributor towards the Company achieving profitability as revenue grows.

OSX share price boosted (up 10%) on announcement

Osteopore secures lead role in Clinical-industrial Partnership with National Dental Centre Singapore and A*STAR research institutes through A$19m project, develops next generation jaw implant to access the A$1.26b dental bone graft and membrane market

The project encompasses the development of a combination product with patented biological additives and polymer compound to enhance the bone regeneration capability and clinical outcomes. Expected outcomes include shorter surgical procedures and faster recovery time for patients.

• Findings from the project will be used to form the basis of Osteopore’s next generation products. The dental bone graft and membrane market has an estimated value of A$1.26b according to Verified Market Research, with 10% of the global dental jaw surgeries conducted in APAC.

• The total contribution by all parties including Singapore’s Foundation centre is A$18.7m, with Osteopore contributing A$1.8m in cash over three years. Osteopore is the industry lead in this project, bringing together three major Singaporean national research institutions, each with the expertise crucial to the execution.

• The translational study builds on intellectual property approvals for Osteopore’s magnesium-composite materials, previously obtained by the Osteopore team in several regions, including Singapore, Europe, and China.