Thank you. Good afternoon, everyone.

Let me start by pointing out that this conference call will include forward-looking statements within the meaning of applicable securities laws. These may include statements regarding the future financial position, business strategy and strategic goals, commercial activities and timing, competitive conditions, research and development activities, projected costs and capital expenditures, research and clinical testing outcomes, the potential benefits of our products, including Perimeter S-Series OCT and CLR OCT plus AI, Perimeter's ability to broaden its user base and system utilization, expectations regarding new products and the timing thereof, and expectations regarding opportunities for market expansion.

Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond our control, including risks and uncertainties described from time to time in our public filings and press releases, which are posted on sedarplus.ca. Our results may differ materially from those projected on today's call.

No forward-looking statement can be guaranteed. Perimeter undertakes no obligation to publicly update or otherwise revise any forward-looking statement, whether as a result of new information, future [events?]

, [unclear], other than as required by law. On the call representing the company are Adrian Mendes, Perimeter's Chief Executive Officer; Sara Brien, the company's Chief Financial Officer; and Andrew Dockley, Perimeter's Chief Innovation Officer and Co-Founder.

With that said, I'll now turn the call over to Sara.

Thanks, Steve. Good afternoon, everyone, and welcome to our second quarter 2026 conference call.

On behalf of the management team and everyone at Perimeter, I would like to thank you for your ongoing interest in our company. For those of you who are shareholders, we appreciate your continued interest and support.

Before turning the call over to Adrian to provide a commercial update, I'd like to provide a brief update on our preliminary financial results. To streamline things, all the numbers I will refer to have been rounded, they are approximate.

Also, as a reminder, we report in US dollars. Finally, as you may have noticed, these numbers are preliminary and subject to change.

The reason driving this is the accounting treatment and classification of the convertible debenture that was closed in Q2, unit-based structure. While that may impact some of the expense and net loss per share figures, the accounting finalization will not change revenues or cash position.

For the three-month period ending June 30th, 2026, the company recorded revenue of $503,000 $100,000, with the full amount coming from recurring revenue, which consisted of the sale of S-Series consumables and system leases, as well as from preventative maintenance services, the sale of ESP warranty programs. This represented 31% sequential growth over Q1 2026.

Operating expenses for the three months ended June 30th, 2026 were $3.1 million, down 28% from $4.3 million in the same period in 2025. Second quarter 2026 net loss was $2.6 million, or 2 cents per common share, a 33% improvement compared to $3.9 million, or 4 cents per common share loss in the three months ended June 30th, 2025.

Cash used in operating activities in the six months ended June 30th, 2026 was $5.1 million, a 23% year-over-year decrease from Q2 2025. As of June 30th, 2026, cash was $6.4 million US dollars.

With that, I'll now turn the call over to Adrian.

Thanks, Sara, and thanks again, everyone, for your time and attention today. As we've talked about in the past, our goal in the quarters leading up to FDA approval of our next-generation AI-enabled CLR device was to seed the market with our legacy S-Series OCT in order to create a strong network of early adopters and technology champions.

Though our commercial team has been and remains relatively lean, it achieved that goal, and the positive momentum we built through 2025 and into 2026 translated into strong sequential growth of recurring revenues in the second quarter of 2026. Today, despite it only being about four months since the FDA PMA approval of our next-generation CLR device, we've already made two CLR placements, and the first hospital has commercially deployed the technology.

They may not seem like huge numbers at first blush, but it's important to note that we couldn't even talk to any potential CLR customers before we received FDA approval for the technology in March. On top of that, we have built a strong sales funnel, which consists of a mix of current legacy S-Series users looking to upgrade to CLR at a higher ASP per procedure due to the AI, and brand-new users who are looking to use OCT in the operating room for the first time.

On the back of all that strong interest, we continue to have confidence that we will continue to see commercial traction with CLR, to grow as we progress through the rest of 2026, and for it to materially accelerate in 2027 and beyond. To summarize what you've just heard: we saw yet another period of positive commercial traction driven by our legacy S-Series product, as demonstrated by our 31% sequential quarter-over-quarter recurring revenue growth in the second quarter; at the same time, we continue to carefully manage our resources as we grow.

As a result of our cost-control efforts, we were able to reduce quarterly operating expenses by 28% and net losses by 33% respectively, and operating cash burn in the first six months decreased by 23%. We received PMA approval from the FDA for our next-generation AI-enabled CLR device in March.

Soon thereafter, we achieved the first two commercial placements, and last week, we announced the technology's first commercial deployment by a hospital. We plan on methodically and opportunistically expanding our commercial team to drive growth without getting too far out ahead of it.

Finally, pulling all of this together, we believe that we're at a pivotal inflection point in our business and the cusp of entering into a stage of anticipated rapid growth. In a brand-new market like ours, it is difficult to predict the timing of growth precisely, but we believe that 2027 revenues will be materially higher than 2026.

It's an exciting time for us, and we look forward to keeping you updated on our progress. With that, I'd like to now open up the call for your questions.

Operator?

Hi, good evening. Congratulations on the quarter, congratulations on the new deployments, glad to see this leg of your revenue growth story start.

I'd like to ask about the pipeline. Last quarter, you gave a bit of granularity on how many, I guess leads or mature leads you have in your pipeline.

What detail could you give us about that?

I think in general the pipeline continues to grow, Michael. Last quarter we had just started doing, but at this point in time we've been able to continue to move things through that pipeline.

Two of them have come through the other end at this point, and I think over the next few months you'll start to see more of those. I think we will start to see more of those come through as we continue to put more into the front end of the pipe.

What's key for us right now is not just moving what's in that pipe with our small team, as mentioned, but really building that pipe out larger, putting more into the front end. That's where a lot of our focus has been right now, both building out the sales team as well as increasing the movement through the pipe.

Gotcha. Would you be willing to put some numbers to that?

I think in the last quarter, you talked about 50 qualified leads, or is this a number that is in flux?

It's in flux all the time. I think it's just safe to say that the leads that we have continue to increase and continue to move.

It changes consistently, obviously.

Perfect. I recognize that it's early.

I wanted to talk about OpEx. There is a nice reduction in OpEx year-over-year.

Recognize that with the launch of a product, we're going to want to invest in the sales team. Maybe Sara, how should we think about OpEx as the year proceeds?

Thanks, Michael.

Go ahead, Sara.

I think OpEx really, from my perspective, is we're going to see sort of relatively modest growth in operating expenses for the rest of the year, really focusing our energies and cost growth in the sales and marketing area. We're obviously conscious of burn and keeping our cash position healthy, and so it's moving resources around between the operating areas.

Great. All right.

I'd like to ask on how you are deploying the sales team currently. I guess if you could just give us an overview of the initial sales strategy in the first few months following CLR's approval?

I can give you some more color on that. As we've got several dozen of customers on the older S-Series product, and then the pipeline, as we talked about, of new customers.

There's two elements to our path forward: one is converting existing customers over to CLR, and the other is bringing on board some of the new customers from the pipeline. We're focused in the areas we have existing customers even for the new ones.

Dallas, of course, is a big center for us; Utah; Colorado; Phoenix; there's a few other areas that we've got customers. Part of the strategy is focusing on those geographies, those metropolitan areas, number one.

Number two, working through various accounts, whether they're already on the S-Series or brand new. As it turns out, even if it's at an existing customer, because CLR has AI on it, whereas we didn't have to do this with S-Series, with CLR, we do have to go through all the AI review committees and IT reviews within the hospital.

It isn't a quick flip. It does take them time to run through the review of our AI.

That adds time there. Then, of course, if it's at an account that we don't have any devices at, then it's a full sales cycle to include contracting and pricing and everything.

The sales strategy is focus on the hubs, the places where we have customers; have multiple tracks, both on converting existing customers as well as getting new customers on board; and then the converting of existing customers, the major work that needs to be done there is go through the IT AI review boards that they have at the hospitals, as well as move to the higher price for the AI.

Okay. Thank you very much.

I'm going to pass the line.

Thanks, Michael.

thank you. A couple questions.

Adrian, acknowledging your earlier comment about precision around uptake, are you still comfortable with 2 to 3 times revenue growth in 2026?

We'll see how the revenue ends up. There are a lot of opportunities that are sort of towards this later stage of the sort of sales pipeline funnel, whatever, and it'll be a matter of whether they cross over this year or they cross over though the boundary into next year.

Still very bullish on our growth trajectory and our ability to get customers onto the CLR. I think we're still in line on that front, and we'll kind of see how things time out.

I think what we're working through now from a timing standpoint is actually getting through those AI committees at the hospitals, which are turning out to be, there's a lot of education that has to go into that, which is something we haven't had to do in the past. Our AI from a risk standpoint from a hospital, it really isn't that risky.

We're not connected to the internet. It's not a continuous learning system.

It's a fixed AI algorithm, it doesn't hit any of the real concerns that these committees have, but we still have to go through those. How that translates into actually getting CLR's earning revenue, we'll see.

We've got a couple, like I said, already across the threshold, and we'll see how the rest of them fall out over the next four months this year, and then over the next 6 to 12 months into next year.

In the AI reviews, and again, I acknowledge it's only a couple of places and it's all new, but how sophisticated are these review boards on the technology, given everything they have that's coming at them and this pace of change? They are

What's interesting is that their processes, from what we've observed, the processes within various hospitals are evolving in real time also. What was the process three months ago has now changed, and is now there's a new process with different, different people and different milestones and and things like that.

They're getting better. Fundamentally, what they're most concerned about, I think, is really twofold.

One is, is your device going out of the system to do its inference, or is it locally contained within the hospital? Right?

For us, that's easy. It's all locally contained inside the device itself, there's nothing going out to the cloud or to the internet.

They're concerned about that, right? They want to make sure that is the case.

The other thing they are concerned about is the model that is validated and then gets moved into the hospital, is it fixed, or does it continuously change in real time? Ours is fixed and doesn't change in real time, right?

Then that's like reduces risk from their standpoint. I guess a third thing, which does take a little bit more sophistication, but I think people generally understand this, is is the model a generative model or not?

Right? Generative being more risky because, it's generating content as opposed to not, like ours is not generative, it is really an image detection, an image recognition type of model.

That also falls in the lower-risk bucket. The ability to communicate that to the right people and go through the process in the right way is what the navigation that we need to do with all our customers now is, which is something we haven't had to do in the past, and frankly, the hospitals haven't really had to deal with much until obviously the past couple years.

Their processes are evolving as well.

Right. Okay.

One last question is you had planned to file with CMS for HCPCS codes in June. Were you able to do that as expected?

We were able to get that filing in place, so that's being reviewed by CMS at this time.

Great. Thank you.

Thanks, Kemp.

Hi, Adrian and Sara, and thanks for taking the questions. I guess just to confirm, how many sites in total are currently using either the S-Series or CLR?

I think it was kind 22 or 23, and expect that's probably the same given that the two CLR systems were kind of conversions, but just wanting to confirm that.

That assumption is correct, yeah. The two CLR systems were conversions from the S-Series over to CLR.

Is it 22 total then?

Oh, sorry, it's 22, yeah. Okay.

Cool. Then maybe I was a bit confused with the remarks.

There was the two that were installed, and that was the announcement with the Q1 update, which was great. Then last week, the commercial adoption, I think you phrased it as one commercial site, but from what I recall in the press release, it was mentioned two hospitals.

Are both systems now commercially doing procedures, or is it they're both installed and only one is doing procedures? Just clarify that for me there.

Oh,

no, they're both installed and they're both doing procedures.

Got it. Great.

Are you kind of happy with the initial pace of the number of procedures that those sites are doing?

They've flipped over from all the procedures that used to be on the S-Series are now on CLR. I'm happy with that, and now it's a matter of getting more and more CLRs out there.

Absolutely. Do you see the number or the percentage of the procedures that they're using CLR, or they plan to use CLR, kind of higher than what maybe they were using the S-Series for, like if there were some procedures that they weren't using S-Series, that now that they have CLR, that they're planning to start using it more?

No, I don't think it'll be a difference from that respect. There are folks that with the S-Series were using it for certain types of breast cancer and then other types of things as well.

With CLR, the trial we ran through was really focused on those types of breast cancer, right, DCIS and IDC, fundamentally, right, which is pretty much what the S-Series customers are using it for also. Although it can be, the surgeons can use it off-label for other things, the AI was really trained and validated against DCIS and IDC.

I don't really see the release of CLR being a catalyst to expansion to different types of use cases other than those. That being said, we're very surprised how often that we talk to surgeons, like, "Oh, we've started to use it in this way or that way," that wasn't really part of our original intention, but they find uses for the technology that we hadn't anticipated.

Absolutely. On the personnel side, I know that hiring, expanding the sales force and the team was big part of kind of the capital raise and helping to accelerate the rollout.

Are you still happy with the people you're seeing? Have you hired anybody in kind of new regions that you're looking to expand in?

Kind of any updates in that process would be great.

We're happy with the candidates that we're seeing, and so I think we will start to see them coming on board over the next few months. Then of course, there's a training time and things like that.

Where I expect the new sales team to start really delivering from a revenue standpoint, which is ultimately the goal here, is towards the end of the year and then early into next year, we'll start to see that acceleration in revenue due to the increase in our sales team.

That's great. I guess with the current balance sheet, kind of where do you see the runway, kind of giving you to hit some of those kind of acceleration?

Sara, you want to take that?

I think our intention of the last capital raise was to get 12 months of cash on the balance sheet, and we're still projecting that same runway at the time of this capital raise.

That's great. Maybe just one or two more.

Any kind of other major events or conferences that are coming up in the next few months where you'll really be able to get out there and kind of pound the table on CLR and broaden the reach with a relatively concentrated audience?

On the clinical side, the big conference for us is ASBrS, the annual conference, which happens in the April-May timeframe, so that is timed pretty well. It came just a month or so after we got FDA approval, we made a big splash there.

In the breast surgery world, that's kind of the big one. Then from an investor conference standpoint, there's a few more that we're looking at from now to the end of the year in the fall, and we'll make announcements of those as we get closer to the time.

That's great. Maybe lastly, I think one of the things we've talked in the past was potential NASDAQ dual listing or kind of leveraging more of the capital markets south of the border.

Any kind of progress on that in terms of getting ready for that type of an event?

We're in the planning stages on that. There's work to do on the accounting side, there's work to do on the legal side.

We've started the process of planning that out and preparing for that.

That's great. Appreciate taking the questions.

Thanks.

Most definitely.

Great. Thanks again.

Do you have any kind of sense of the appetite for customers to do a lease versus a capital sale?

There certainly is place in our customer base for capital sales or leases. We haven't got to the point where that has been the sort of sticking criteria, frankly, for capital sales versus lease.

Definitely, it's very standard in the industry, we're prepared to have those discussions as it comes up with customers. That's fully one of the options we've got in front of us in terms of how we can help get the devices deployed.

Great. For purposes of any guidance you've given in the past, did you have an implied estimate of the mix of lease versus sale?

We have not given any guidance on that front.

Great. Thank you.

Thank you. The second quarter of 2026 marked a critical milestone for Perimeter, very critical just this commercialization, this is highlighted by the first placements of our CLR device out in the field.

This represents a major validation of our clinical, regulatory, and technology development efforts, and it does position us to advance to the next phase of commercialization strategy, which is really now focused primarily on scaling our adoption. Moving forward, we believe that we are approaching a period of rapid revenue growth as CLR adoption really starts to ramp across the country, and particularly in this coming next year.

It's very exciting times here at Perimeter, and we thank you for your time today.