Nova Eye USA Sales Growth Opportunity
Key Risks - Specific
Specific Risks (cont.)
Business Disruption
Growth Risk
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Nova Eye is engaged in developing, manufacturing and distributing innovative medical device devices for medical applications, utilising patented technology. As a result, Nova Eye is
subject to the risks inherent in such activities, including industrial accidents, environmental events, strikes and other labour disputes, disruptions in supply chain or information
systems, securing or maintaining adequate coverage or reimbursement by government or third-party payors for procedures using the iTrack®, the iTrack® Advance, Molteno 3Ⓡ, loss
or impairment Nova Eye's product quality control, safety, licensing requirements and other regulatory issues, as well as natural disasters, pandemics, border disputes, acts of
terrorism, and other external factors over which is out of Nova Eye's control.
Should the Company's growth accelerate at a higher rate than anticipated, the Company may, through lack of availability of materials or packaging, inability to scale production in a
timely manner, lack of manufacturing capacity, lack of suitable labour or other unforeseen circumstances, be unable to supply its products in a timely manner to meet the demand of
its customers. Should this occur, the Company may risk the loss of either third party manufacturing clients or suffer a reduction in the customer base for its own products. Such events
could have an adverse effect on both the reputation of the Company as well as its financial results.
Reliance on Key Management
Nova Eye, and each of its businesses, depend substantially on its key management, the loss of whose services might significantly delay or prevent the achievement of its business
strategy. Nova Eye's ability to retain and attract qualified individuals is critical to its success. Nova Eye may not be able to attract, retain or replace suitable individuals currently or in
the future on acceptable terms, or at all, and the failure to do so may adversely affect the Company.
Access to Equity and Debt
Funding
Impairment of Intangibles
Volatility in the financial markets could negatively affect Nova Eye's ability to raise capital through debt and equity raisings.
Nova Eye's ability to raise additional funds will be subject to, among other things, factors beyond the control of the Company and its Directors, including cyclical factors affecting the
economy and share markets generally.
The Directors can give no assurance that Nova Eye can raise funds in the future on favourable terms, if at all.
Nova Eye has intangible assets on its balance sheet relating intangible assets. Under the relevant accounting standards Nova Eye is required to annually test for impairment all
indefinite life intangible assets. If this annual testing revealed that some or all of Nova Eye's intangible assets are impaired to a level below their carrying value, Nova Eye would be
required to write down the value of those intangible assets. Such write downs could have a material adverse effect on Nova Eye's financial position.
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