Nova Eye USA Sales Growth Opportunity

Key Risks - Specific Specific Risks (cont.) ne Product Safety and Liability Product safety or quality failures, actual or perceived, or allegations of product contamination, even when false or unfounded, may negatively impact Nova Eye's brands and could cause consumers to choose competing products. Allegations or adverse commentary on product safety or suitability for use by a particular consumer, even if untrue, may require Nova Eye to recall a product from all of the markets in which the affected product was distributed. Such issues or recalls could negatively affect Nova Eye's reputation and growth. If Nova Eye's products are perceived to be defective or unsafe, or if they otherwise fail to meet customer or regulators' expectations, the Company's relationships with customers could suffer, the appeal of one or more of its brands could be diminished, and the Company could lose sales or become subject to liability claims. In addition, safety or other defects in Nova Eyes competitors' products could reduce consumer demand for Nova Eye's products if consumers view them to be similar. Any of these outcomes could result in a material adverse effect on Nova Eye's business, financial condition and results of operations. Counterparty Risk Nova Eye is reliant on its main customers and suppliers. Inputs for Nova Eye's products consist of raw materials and packaging components and are purchased from various third party suppliers. The loss of multiple suppliers or a significant disruption or interruption in the supply chain could have a material adverse effect on Nova Eye's products. Increases in the costs of raw materials or other commodities may adversely affect the Company's profit margins if higher costs cannot be offset by price increases or lowering distribution costs. Nova Eye's third party suppliers pose risks to the Company if they do not comply with ethical, social, product, labour and environmental laws, regulations or standards, or their engage in politically or socially controversial conduct, such as animal testing, could negatively impact their reputations. Any of these failures or behaviours could lead to various adverse consequences, including damage to Nova Eye's reputation, decreased sales and consumer boycotts. Reliance on Key Customers There is a general risk that Nova Eye may fail to retain customers for a number of reasons, including pricing, competition or a failure to meet consumer expectations of its products. Reputational Risk Nova Eye's failure to protect its reputation, or the failure of the Company's partners to protect their reputations, could have a material adverse effect on the image of Nova Eye's brands. Nova Eye's ability to maintain its reputation is critical to the image and consumer perception of its various products. Nova Eye's reputation could be jeopardised if it fails to maintain high standards for product quality and integrity or if the Company, or the third parties with whom it does business, do not comply with regulations or accepted practices. Any consequential negative publicity may reduce demand for Nova Eye's products. Failure to comply with local laws and regulations, to maintain an effective system of internal controls or to provide accurate and timely financial information could damage Nova Eye's reputation. Nova Eye depends on the reputations of its third party clients, which can be affected by matters outside of the Company's control. Damage to Nova Eye's reputation or the reputations of its third-party clients could have a material adverse effect on Nova Eye's results of operations, financial condition and cash flows, as well as require additional resources to rebuild the Company's reputation. nova-eye.com | 34

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