#1IRIDEX Investor Presentation November 2020#22 Forward Looking Statements The information in this presentation contains estimates and other forward-looking statements regarding future events, including statements about the plans, strategies and intentions related to the development and commercialization of our products and procedures. Certain forward- looking statements may be identified by reference to a future period or periods or by use of forward-looking terminology such as “forecast," "believe," "planned," "initiate," "potential," "anticipated," or "expected." Such forward-looking statements, which we intend to be covered by the safe harbor provisions contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. Potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 28, 2019, and our Quarterly Report on Form 10-Q for the quarter ended June 27, 2020, each filed with the Securities and Exchange Commission (the "SEC") and any additional reports filed with the SEC following the date of this presentation. It is not possible for IRIDEX management to predict all risks nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market potential. These estimates involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated. Except as required by law, we assume no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. All statements contained herein speak only as of the date of this presentation. IRIDEX expressly disclaims any obligation to update any statement in this presentation to reflect any change or future development with respect thereto, any future results, or any change in events, conditions and/or circumstances on which any such statement is based, unless specifically required by law or regulation. IRIDEX#3RETHINKING GLAUCOMA CARE Rethinking Treatment Attacking Two Leading Causes of Blindness $5B global glaucoma market $3B global retinal equipment market Initial Glaucoma Traction Proven: ✓ Recurring revenue procedure probes ✓ Significant and growing worldwide installed base ✓ Expansive clinical studies and KOL support ✓ 150K+ procedures proven safe and effective ✓ Established attractive reimbursement Source: Market Scope estimates Growth through converting proven traction into significant market penetration IRIDEX#4Building IRIDEX to Leverage Market Expansion Opportunity Fiscal 2019-2020 Product and Technology Release and successful launch of Rev2 MP3 probe FDA clearance of new system platform project Release of two versions of LIO critically needed to address customer needs Updates to TxCell scanner product New Leadership and Domain Expertise In the past 12 months the executive team under a new CEO has managed a significant transition of Iridex, both strategically and tactically 4 Margin and Cost Implemented operational improvements to significantly reduce costs and increase efficiencies Net Cash usage in 9 months of 2020 of only $0.7M, despite COVID-driven revenue decline of 24% vs prior period Operational Execution Managed through COVID environment, both in field execution and internal remote work environment, to limit delays and continue strategic execution IRIDEX#55 • Glaucoma: Chronic, Progressive Disease without Cure Objective: Limit rate of progression through control of intraocular pressure Need: An effective, repeatable, low-risk solution to extend non-incisional IOP control Advanced and Refractory Non-incisional Therapy Choices Meds/Drops Incisional Mild Ocular Hypertension IOP 21-30mmHg No evidence of ocular nerve damage and no vision loss OBSERVATION ONLY SINGLE MEDICATION IOP 25-30 mmHG Minor optic nerve damage + visual field loss 1+ MEDICATIONS LASER TRABECULOPLASTY MIGS + CATARACT Moderate IOP 30+ mmHG Moderate optic nerve damage + visual field loss MULTIPLE MEDS MICROPULSE TLT MIGS + CATARACT Uncontrolled IOP Severe/significant optic nerve damage +visual field loss MULTIPLE MEDS INCISIONAL SURGERY TUBE SHUNT IRIDEX#66 R IRIDEX Solution: MicroPulse Transscleral Laser Therapy • Objective: Target ciliary body tissue inducing thermal changes to safely reduce IOP Result: An effective, repeatable, low-risk solution to extend non-incisional runway DRUGS + SLT CATARACT + MIGS INVASIVE SURGERIES CW TSCPC Mild Moderate Advanced MicroPulse P3 Refractory MICROPULSEⓇ TRANSSCLERAL LASER THERAPY Non-incisional Durable Repeatable IRIDEX#77 Eyes diagnosed with Glaucoma U.S. Market Opportunity 5.0 4.0 Major growth by expanding penetration in moderate patients 3.0 2.0 2.1 M 3.2 M 1.0 0.1 M 0.2 M 0.0 Severe Advanced (3+) Moderate (2-3) Mild (0-1) GLAUCOMA SPECIALIST *Market Scope and Company estimates COMPREHENSIVE . Our U.S. 2019 MP3 probes: 25K run rate Our U.S. 2019 installed systems: 800 2.4 million potential eyes in U.S. moderate + patients Over 4,000 U.S. ASC and hospital target sites 。 1,300 Glaucoma specialists 。 8,700 Comprehensive О ophthalmologists $500 Million U.S. Probe Opportunity $50M probe revenue is 10% U.S. penetration IRIDEX#880 Eyes diagnosed with Glaucoma Rest of World Market Opportunity 20.0 15.0 Major growth by 13.4 M expanding penetration 10.0 in moderate patients 5.0 20.6 M 1.4 M 0.6 M 0.0 Severe Advanced (3+) Moderate (2-3) Mild (0-1) GLAUCOMA SPECIALIST *Market Scope and Company estimates COMPREHENSIVE Our ROW 2019 MP3 volume: 25K run rate Our ROW 2019 installed systems: 900 4.5 million target eyes in developed economies o 3,000 Glaucoma specialists 25,000 Cataract surgeons performing glaucoma procedures $700 million ROW probe opportunity $50M probe revenue is 7% ROW penetration IRIDEX#99 Repeatable Procedure Delivers Long-Term IOP Control Clinical Outcomes Summary at 78 Months • 39% mean IOP reduction at 78 months Reduction in eye drops from mean of 1.8 to 1.1 On average 3.6 treatments per patient with MP3 probe NUHS Follow-up Study - 39% IOP reduction at 78 months IOP in (mmHg) 50 43.3 45 40 40 35 30 24.8 25 20.9 19.6 18.2 .≤ 20 15 10 Mean IOP 5 0 0 6 12 Follow-up (months) 18 78 IRIDEX#1010 Clinical Validation Over 150,000 procedures performed in 60 countries since 2015 Launch ORIGINAL STUDY dent Outcomes Following Micropulse Transscle Cyclophotocoagulation: Intermediate-term Results Aleksandr Yelenskiy, MD Thomas B. Gillette, MD,* Analisa Arosemena, MD† Augustus G. Stern, MD Winston J. Garris MD.§ Curt T. Young MD|| Michelle Hoyt OD† Nancy Worley, BS* David Zurakowski MS PhD and Ramesh S. Ayyala, MD, FRCS# ment outcomes of micropulse transscleral ophotocoagulation in advanced glaucoma arah Kuchar Marlene R. Moster Courtney B. Reamer Michael Waixbourd' ORIGINAL STUDY icropulse Cyclophotocoagulation: Initial Resu in Refractory Glaucoma Matthew E. Emanuel, MD Davinder S. Grover, MD, MPH* Ronald L. Fellman, MD, David G. Godfrey, MD,* Oluwatosin Smith, MD,* Michelle R. Butler, MD Hal Kornmann, MD, PhD.* William J. Few val, MBBS Clinical & Experimental nalmology Toyos and Toyo DO OMI al Outcomes of Micropulsed Transcleral Cyclophotocoagulation in erate to Severe Glaucoma aM Toyos' and Rolando Toyos C, 2204 Cremor Road USA following blindne TSCPC) prove aque either to inc hun bort, multicenter (10 who underwent 2017 Terent les Purpose: To report the safety and efficacy o micropile transcleral cyclophotocoagulation dure in patients with uncontrolled glaucoma. Materials and Methods: Longitudinal retrospective study. Patients with different types of glaucon MPTSCPC with P3 probe between Aly 2015 and were treated by different glucoma specialists from (Tulane Study Group). Data on preoperative cha procedures) performed, and postoperative outcomes analyzed. Statistical analysis using logistic regression a analysis was performed with Stata software. Intraoper operative complications, incedar pressure, visual acum incisional glaucoma surgery, need for repeat micropals, and topical medications were studied isties, s one of the leading causes of irreversible orldwide. Glaucoma therapies are designed the outflow or decrease the inflow of in order to decrease intraocular pressure nde residual optic nerve function. Cyclo- coagula (CPC) is a form of glaucoma treatment infrared wavelength of 810 mm to target the melanin in themented ciliary body epithelium and thereby g a laser destruct the production photoco collected an plan-Meier and post od for POM Results Ox hundred ninety-seven eyes from 161 patients were included. Median follow-up was 12 months interquartile range (IQR), 6 to 14 Glama diagnosis included 141 primary open-angle glaucoma. OAG) 8 neovaser goms, and 12 others. The total success rate 71% Two percent (4 patients) developed postoperative cystoid lar edema. Preoperative mean intraocular pressure (SD) was 19 6mm Hg at last followup (P001) Median preoperative visual acuity (IQR) was 84 (0.2 1.0) and 0.3 (02 to 1.0 up ( 0.65, Wilson signed-rank test). Median number cal medications was 341 to 4) preoperative and 2 (1 to 3pat Fc000 Kaplan-Meier analysis indicated 90% of repeat MPTSCPC at 12 months Multivariable ntified 3 significant independent predictors of total OLD) (POAGI pevious glaucoma surgery rent procedures (P-0013 al cohort study has provided evi rally effective option in the ary body; this results in decreased aqueous hence IOP Traditional transscleral cyclo- on using continuous wave diode has been refractory glaucoma cases with poor visual due to the risk of phthisis, hypotony, visual deteri n, and unpredictability. The increased risk is ought to be largely from the nonselective nature of the traditional continuous wave diode laser.3,10 A new method of TCP has been described that uses a micropulse diode laser [micropulse transscleral cyclo photocoagulation (MPTSCPC)) and trans pars plana tre ment with a contact probe, which is thought to be more and at least equally effective as traditional diode laser more selective targeting of tissues. The micropul has been previously used for retinal procedures starting to be used in CPC. This methot delivery is advantageous because it deliver repetitive and brief pulses of laser energy periods, in contrast to traditional cont that deliver continuous intense body, 19 This method of laser produce more selective targ and less collateral dam allow energy Roccisod: 21 July 2015/Accepted: 11 Decembe 5/Published en Deco Springer-Verlag London 2015 Abstract Glaucoma is the leading cat ness worldwide. The goal of this st experience with the novel micropulse coagulation (MP-TSCPC; IRIDEX CA) in patients with advanced glauco vanced glaucoma who underwent MP-T of imeve e blind- was to cribe of sclerallophoto $10 Lasc in our study. Laser settings were 2000 mW ystems, Patients PC were inc diode laser set on micropulse delivery mod 10mm infrared delivered over 360° for 100-240 s. The duty Jaser was 31.3 %, which translated to 0.5 ms of "on time" and of "off time." Surgical success was defined as an intraocular ressure (IOP) of 6-21 mmHg, or a reduction of IOP by 20% he last follow-up visit. Failure was defined as an inability to the criteria for success or a need for incisional glaucoma Nineteen patients underwent MP-TSCPC with mean of 603 days. Mean IOP dropped from 37.9 mmHg ly to 22.7 mmHg at last follow-up, representing a c. The success rate for initial treatment was ree patients underwent a second treatment, necess rate to 89.5 % (n-17k Four ision, and four patients lost one Claser had a high rate of in patients with woods Trans cral cyclophotocoagulation Glaucoma Micro se diode er MP3 laser surgery duction, Glaucoma, world leading cause of irreversible blindness in the Glaucoma therapies are designed to either in- outflow or decrease the production of aqueous hu- mor in order to reduce intraocular pressure (IOP) and preserve visual function. Traditional transscleral cyclophotocoagula- tion (TSCPC) is a cyclodestructive procedure that uses con tinuous diode laser to target the ciliary body in order to redu the production of aqueous humor. Traditional TSCPC m associated with serious complications including uveitis loss, chronic hypotony, and rarely phthisis bulbi an thetic ophthalmia [3-7]. Due to the risks of serice tions, TSCPC is typically reserved for the tre tory glaucoma or palliation of painful ey prognosis [8]. There has been debate direct correlation between the ar the rate of complication higher energy lend evaluate the ac of micropole transscleral cyclophotocoagon (MP-TSCPC), a new and increasingly popular treatment patients with uncon trolled glaucoma Purpose: The purpose of this study is Methods A retrospective chart revic was performed patients who underwent a MP-TSCPC of Texas. e Glaucoma, th MP T F ths. The were 27.7 mm as used was 33 e lowered to ImmHg. Results: A total of 84 eyes were treated study with a mean follow-up time of 43 treated patients was 74 years and 48 ( operatively, mean intraocular pressure (101 mean number of ocular antihypertensive med Mean postoperative IOP at months 1.3, 6. and 163mm Hg (41.2% reduction), 146, 13.0, an respectively. Postoperative ocular antihypertensive m was also lowered to 1.9, 20, 2.0, and 23 medications at mo.. 6, and 12. respectively. Five patients required further laser or ical intervention for adequate 1OP control. Complications ded hypotory, IOP spike, hyphema, serous choroidal ment, persistent inflammation, and vision loss. At 3 months, ation was still present in 46% of eyes and vision loss of at was present in 41% off eyes. MP-TSCPC is effective at lowering IOP and decreas racular antihypertensive medications Eyes with tential or at high risk for incisional glaucoma ly be treated with MP-TSCPC as a reason- ative to traditional CPC. These results both longer follow-up and further evelophotocoagulation, potenti and patients who are not good lidates, nsscleral cyclophotocoagulation ommon he continuous delivery of diode PC used to reduce IOP. TSCPC DP throu the cilia on. Studies effect t of TSCPC body, thereby decreasing aque- ve demonstrated that the IOP. correlated with number of laser ots applied. However his efficacy must be balanced ith the potential complions of TSCPC, as some studies Tave shown that the r of complications increases with higher energies. Co cations associated with TSCPC include prolonged ocular inflammation, pain, intra- ocular hemorrhay aypotony, phthisis bulbi, decreased vision, and rampathetic ophthalmia. The severity of these corations are felt to be secondary to the col ge surrounding tissues, including the ciliary stroma nonpigmented epithelium, and ciliary body Micropulse TSCPC (MP-TSCPC; IRIDEX, CYC G6 Glaucoma Laser System, Mountain View, CA) of variation of traditional TSCPC to treat glaucoma this system, short bursts of energy (on-cycle) delive to the targeted tissue, with the energy bursts building up to a photocoagulative state in th epithelium. At the same time, during " rounding tissue is allowed to cool and photocoagulative threshold, thereby, ing damage to surrounding tissu Previous studies, though follow-up, have demon effective and safe responding author: Mel Toys, TC, 2204 [email protected] Received date: Oder 24, 2016 Accepted date: Copyright: 2016 Tayon M, et al. This is an open sse, distribution, and reproduction in any medium, Abstract Purpose: The purpose continuous wave diode la glaucomatosevere. Methods: Twenty-six 37215, USA. TH 615-327-4015 Fax 615-327-4089; E-ma 06, 2016, Published date: December 12, artele debuted under the lens of the Creative mes Attribution License, which permits unrestricted ed the original author and source are credited. this study is in a clinicall of center Results were revie recommended treatment gues veness of a open angle Vents were treated by ingl прест w micropulsed transcleral coma, ranging from mild a single private practice epr MP3 setting according to Results: At baseline, patien ce on an average of 3.3 topicall glaucoma cations with an average IOP of 25.6 mmHg. At POD1 IOP was nedby 20%, by 3-4% at PO07, 8% at P and decreased 30% from baseline at the final postop visit 6-12 months the procedure. Average meuse decreased from 3.3 to 1.8 from baseline to final post op vist. There were sadverse event Conclusion: Micropulsed transceral diode laser is a safe and effective alterative for glaucoma therapy for patients with open angle glaucoma. Patients can expect significant IOP lowering along with reduction in number of topical glaucoma medications required for IOP controll Transcleral Glaucoma cyclophotocoagulation: de laser MP3 laser Sion people suffer from glaucoma globally. анке f blindness worldwide. Current edications, laser therapies, micro- glaucoma surgery. Most of aqueous humor while alloncing the heat to dissipate between pulses, pr efficacy while preventing umeanted inflammation, hypotony. The time between the pulses is called the time [3]. Pulsing or fractionating laser has also I treatments of CSCR. AMD and macular edeny in CO lasers used for cosmetic CCMEXTOLasering, USA, San Ramon Yon-cam, Israel)), SmartXxide, DF There are a few SAFE 70+ posters and presentations show low adverse event occurrence EFFECTIVE 19 peer-reviewed papers demonstrate sustained IOP reduction of 30-45% in 60-85% of patients DURABLE 500+ eyes in studies demonstrating durability greater than 12 months VERSATILE 2,500+ eyes studied in a wide spectrum of glaucomal types and stages IRIDEX#1116 15 11 C C 1μm 22 S S ms3000-mw2500-u-hb Ciliary Body Sclera 200μm Probe Cornea No spheres present Spheres transported prior to therapy into supraciliary space post therapy Video courtesy of Murray Johnstone, MD showing shrinkage of tissue during treatment Prelazer Probe Sclera Comea OCT CB Sclera Post Love SuprachoroidalSpace TM Micropulse Effects ты Histology Supraciliary space enhanced by shrinkage of treated tissue SCIENTIFIC RATIONALE Early work demonstrates that shrinking ciliary tissue may create a supraciliary space thereby increasing uveoscleral outflow. MECHANISM OF ACTION The presumed mechanism of action of MicroPulse TLT is dominated by heat-induced changes in ciliary body morphology resulting in increased uveoscleral outflow. IRIDEX#1212 MicroPulse TLT - A Proven Procedure . Easy to perform Non-incisional Benign safety profile Does not preclude other treatment options 99 • • • MicroPulseⓇ P3 Probe + Cyclo G6Ⓡ Laser System Durable up to 24 months per dosing Repeatable, multiyear IOP control Demonstrated in broad disease range Can reduce eye drop burden Cost effective IRIDEX#1313 Sales Cycle: Focusing on Existing + New Customers PHYSICIAN EDUCATION Commitment to Targeting Validation Benefits $) Conversion HANDS-ON TRAINING IRIDEX#14Cyclo G6 Commercialization Initiatives EXIT STORE Strong Distribution Channel 20-person U.S. field team 60+ international distributors 14 従来のCPC MP-CPC UP MicroPulse Lor OCULAR CLEA IRIDEX OCUL P 5 0 WENONATIONS oerH Ο OIRIDE 08 1370 CYCLO GE Fadi Salahat IRIDEX Booth CLZS Exhibitor Education and Training . Expanding peer-reviewed publications Seminars/webinar/wetlabs KOL support IRIDEX-sponsored clinical trials . Social media outreach Product Enhancements Commercial rollout of enhanced probe tip Technique and protocol simplification focus IRIDEX#15Retinal Disease Business Overview IRIDEX#16. MicroPulse® Retina Laser Treatment Full Line of retina lasers and delivery devices with differentiated technology Premium position in retina laser systems, a more mature and price-competitive segment Retina business contributes more than half of overall revenue Significant contributor to total IRIDEX platform scale and operating expense coverage Standard Laser Pre-treatment 16 1 Year Post-treatment Scarring clearly visible using legacy laser technology MicroPulse Laser Treatment Pre-treatment 1 Year Post-treatment 0 No visible tissue damage (0) Long-term vision stabilization Scarring non-existent using MicroPulse Significantly lower cost: financial and treatment burden IRIDEX#17. Established Customer Base and Broad Global Support Safety • 10-year follow-up data proved no detectable retina damage Efficacy Randomized controlled trials showed improved vision and improved retinal sensitivity • Over 135 published studies . & Efficiency More treatable patients Improved patient pass-through rates Reduce financial cost and treatment burden EA $ Economics Using anti-VEGF and MicroPulse therapy may reduce treatment burden and costs = Established More than 1 million patients treated Over 1,200 systems sold • More than 65 countries served 17 THE GEORGE WASHINGTON UNIVERSITY WASHINGTON DC Hospital de Olhos ARARAQUARA STANFORD UNIVERSITY UNIVERSITY OF IOWA HEALTH CARE Wills Eye Hospital Moorfields Eye Hospital NHS America's First World's Best NHS Foundation Trust Department of Ophthalmology and Visual Sciences Tufts Medical Center 1902 AUBMC AMERICAN UNIVERSITY of BEIRUT MEDICAL CENTER المتركز الطبي في الجامعة الأميركية في بيروت UCDAVIS EYE CENTER KAISER PERMANENTE® ERSITAS ° STUDI MCCXXII PADUAD UNIVERSITÀ DEGLI STUDI DI PADOVA New York Eye and Ear Infirmary of Mount Sinai IRIDEX#18Financial Update Q3-2020 IRIDEX#1919 Impact of COVID-19 and Recent Developments Shifted to a broad virtual sales program reaching thousands during web events and maintain remote contact with key accounts. Provided support to existing and new customers through remote proctoring for cases, web-based physician certification and educational seminars Gained increased attention to fit during COVID restrictions because procedure delivers strong efficacy, low risk and requires minimal follow up visits YTD net losses have decreased by $1.1 million to -$6.2 million from -$7.3 million in the period of 2019 Exited Q3 with CycloⓇ G6 probe sales achieving 106% of prior year Q3 IRIDEX#2020 Financial Snapshot Q3 2020 Revenue: $8.8 MM Significant Glaucoma Growth Shifting Revenue Mix Revenue Breakdown at 9/26/20 O.U.S 40% Systems 41% U.S. 60% Recurring 59% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2015 2016 2017 2018 2019 Q1 Q2 Q3 2020 2020 2020 Cash PPP Loan Retina Other Glaucoma Balance Sheet at 9/26/20 ($ in millions) $11.9 $2.5 IRIDEX#21Longer-Term Growth Opportunities >>>>>>> 44 21 Launch New System Platform and Lasers Long Runway for Non-Incisional Glaucoma Paradigm Expand Country Approvals and Adoption Volume Glaucoma and Retina Therapy Delivery Devices IRIDEX#2222 Key Takeaways Significant market opportunity in non-incisional glaucoma therapy Initial penetration demonstrates market demand exists Strong publication proofs and KOLs demonstrate efficacy and safety Proven sales process to focus on adoption and usage to drive growth Achieve financial returns through high margin disposables growth IRIDEX#23Thank you IRIDEX