CURVEBEAM AI LIMITED — Call Transcript 2024

Oct 30, 2024

QUARTERLY 4C CONFERENCE CALL 31 October 2024

DISCLAIMER

Introduction

THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA OR TO ANY RESIDENT THEREOF, OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION IS UNLAWFUL. THIS DOCUMENT IS NOT AN OFFER OR INVITATION TO BUY OR SELL SECURITIES.

This presentation has been prepared by CurveBeam AI Limited (ACN 140 706 618) ( CurveBeam or the Company ) and contains summary information about CurveBeam and the business conducted by it as at 30 October 2024. The information in this presentation is for informational purposes only, does not purport to be complete and is not a prospectus, product disclosure statement or other disclosure document for the purposes of Chapter 6D or Part 7.9 of the Corporations Act 2001 (Cth) ( Act ) or other offer document under Australian law or the law of any other jurisdiction.

The distribution of this document outside of Australia may be restricted by law and any such restrictions should be observed. This document may not be distributed or released to any person in the United States. As further detailed below, none of CurveBeam, nor its advisers ( Advisers ) nor their respective affiliates, related bodies corporate (as defined in the Act) or security holders and their respective directors, officers, employees, partners, representatives, consultants, agents or advisers (each a Limited Party and together, the Limited Parties ) guarantees or make any representation or warranty to, or takes responsibility for, the accuracy, reliability or completeness of the information contained in this presentation, to the recipient of this document (you or the Recipient), and nothing contained in this document is, or may be relied upon as, a promise or representation, whether as to the past or future. To the maximum extent permitted by law, each Limited Party disclaims any liability for any loss arising from the use of information including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation.

Forward looking statements

The information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of CurveBeam’s views on future performance or condition. Past performance cannot be relied upon as an indicator of future performance. This presentation contains certain forward-looking statements. The words “forecast”, “estimate”, “like”, “anticipate”, “opinion”, “should”, “could”, “may” and other similar expressions are intended to identify future earnings, financial position and performance of CurveBeam. You are cautioned not to place undue reliance on these statements. These forward-looking statements are based on estimates, projections and assumptions made by CurveBeam about circumstances and events that have not yet taken place. Although due care and attention has been used in the preparation of these statements, such forward-looking statements are based on numerous assumptions regarding CurveBeam’s present and future business strategies and the political, regulatory and economic environment in which CurveBeam will operate in the future and are subject to change without notice. Statements about market and industry trends, which are based on interpretations of current market conditions, may not be reasonable, and are not guarantees or predictions of future performance. The actual results or performance of CurveBeam may be materially different from the results or performance expressed or implied by such forward-looking statements. No representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including any of the Limited Parties). In particular, no representation, warranty or assurance (express or implied is given that the occurrence of the events expressed or implied in any forward-looking statement in this presentation will actually occur). Subject to any continuing obligations under applicable law, the Company expressly disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements in this presentation to reflect any change in expectations in relation to any forward-looking statement or any change in events, conditions or circumstances on which any statement is based.

Financial information

All numbers in this presentation are stated in Australian dollars ( A$ ) unless stated otherwise.

Not an offer or financial product advice

The information contained in this presentation is for informational purposes only and should not be considered, and does not contain or purport to contain, an offer, invitation, solicitation or recommendation with respect the purchase or sale of any securities in CurveBeam nor does it constitute legal, taxation, financial product or investment advice. The general information in this presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Recipients of the presentation must undertake their own independent investigations, consideration and evaluation. By accepting this presentation, a Recipient agrees that if it proceeds further with its investigations, consideration or evaluation of investing in CurveBeam it will not in any way rely upon this document. Neither this presentation nor any of its contents will form the basis of any contract or commitment and it is not intended to induce or solicit any person to engage in any transaction nor is it intended to be used as the basis for making an investment decision.

CurveBeam recommends that potential investors consult their professional advisors as an investment in CurveBeam is subject to investment and other known and unknown risks, some of which are beyond the control of CurveBeam or its directors and therefore any investment is considered to be speculative in nature.

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2 4C INVESTOR PRESENTATION

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4C SUMMARY OF KEY ACTIVITIES

• CurveBeam AI received purchase orders (POs) for three ( 3) devices in Q1 FY25 , level with the prior corresponding period of three (3) devices in Q1 FY24.

• The Company announced FDA clearance for the enhanced HiRise™ in Q1 FY25.

• Capital raising (ANREO & Placement) completed in Q1 FY25 of A$11.54m.

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• Three (3) US sites were upgraded to the enhanced HiRise during the quarter. Two (2) of these sites have imaged robotic surgical patients on the enhanced HiRise™ and management is both very satisfied with the CT image quality and with the positive feedback received to date.

• Four (4) data sets, between the sites, were submitted and successfully processed .

• The Company has now received vendor instructions for completing the validation and is in the process of agreeing the final actions. We will resume the validation process for robotic surgical systems shortly. A revised timeline to follow as soon as possible.

• CurveBeam AI continues to target mid-CY25 for FDA clearance of the bone mineral density ( BMD ) software module through a revised regulatory strategy.

• FY 24 planned annual expenses were reduced from circa A$24m to A$19.8m in the cutbacks implemented by the company in December 2023. Further cuts have now been implemented, to reduce cash overheads to A$17m .

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Cashflows from Operations & Runway

• Capital raising (ANREO & Placement) completed in Q1 FY25 of A$11.54m.

• The cash on hand at the end of Q1 was A$10.1m , equating to 2.13 quarters of cash at the level of net cash outflow from operations for Q1 FY25 quarter.

• Note this cash figure does not include:

  • A$2.0m investment by KP Rx – approved 3rd October 2024 at the EGM, received by the Company on 30th October 2024.

  • Tax return FY2024 - A$0.946m due in Nov. 2025 (Net of repayment of R&D Loan).

  • Further cost reduction implemented.

• Thus Q2 FY25 will have A$2.946m added to cash outside of routine movements.

• Cashflows from operations for Q1 FY25 was (A$4.7m) v. (A$4.6m) in Q4 FY24

  • A$4.7m included A$1.2m inventory - primarily relating to the enhanced HiRise™.

  • • To conserve cash, action has been taken with key suppliers to pause further cash outflows for inventory in Q2 FY25.

• Actioned this week HR related adjustments to costs - circa A$1. 9 m reduction.

  • FY 24 expenses were reduced from circa A$24m to A$19.8m in December 2023.

  • • FY 25 expenses reduced to $17m – implemented across the company this week.

• Receipts from customers for Q1 FY25 were A$2.41m , up from Q4 FY24 of A$1.95m

  • A$2.5m to be received from earlier POs due still in FY25.

  • Revenue recognition cycle averages 2-4 months from PO to install & full payment.

E N H A N C E D H I R I S E ™ P R O J E C T F O R R O B O T I C S U R G I C A L S Y S T E M S

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• CurveBeam AI has completed the development of the Enhanced HiRise platform and is now FDA 510(k) cleared. CE and TGA targeted next.

• Enhanced HiRise™ WBCT scans, with higher energy X-Ray source, allows key anatomical landmarks to be identified in larger patients.

• Key validation steps for a robotic surgical system at two upgraded US based sites were completed. Both sites have imaged patients on the enhanced HiRise™ with image quality generally at par with MDCT.

• Four (4) data sets submitted were successfully processed.

• The Company has now received vendor instructions for completing the validation and is in the process of agreeing the final actions. A revised timeline to follow as soon as possible.

• FY24 orders were impacted by group surgeon practices wanting one CT scanner for all lower extremity scans – Hip/Knee is a major driver of scans.

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• • A step change is targeted in HiRise orders, once validation of knee & hip datasets for robotic systems is in place.

5 4C INVESTOR PRESENTATION

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IN CLOSING

• Enhanced HiRise™ progress

• Enhanced HiRise™ FDA clearance was achieved in July 2024.

• Key validation steps for a robotic surgical system at two US based sites with the enhanced HiRise™ were completed.

• Both sites have imaged patients on the enhanced HiRise™ with positive feedback received to date on the quality of the CT scans.

• Four (4) data sets submitted were successfully processed.

• The Company has received instruction from the vendor to finalise validation – updated timeline to follow ASAP.

• Company maintains a prudent approach to capital management.

• BMD SaaS module, with new regulatory strategy, remains on the targeted timeline.

DEFINITIONS

CurveBeam AI’s key metrics are defined and interpreted as follows:

• Purchase order – a signed purchase order (PO) for a CT scanner (device). The Company considers POs to be a key metric as it reflects actual sales at any given time.

• Receipts from customers – any cash consideration received from a customer by CurveBeam AI. This can include initial deposits required at the time of an order being placed.

• Revenue – Revenue is recognised after the device (e.g., HiRise™) is delivered, installed and training has been completed. Depending on the customer site requirements, there can be several months’ delay from a signed purchase order to recognition of revenue. Thus, revenue may not be reflective of sales progress in each period.

The Company will report on POs and cash receipts in its Appendix 4C (quarterly) lodgments, while revenue will be reported in Appendix 4E (full year report) and Appendix 4D (half year report).

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