Mobilicom Ltd Price & Performance (MOB)

Thank you and good afternoon everyone. Thank you for joining our Q4 earnings call today. I'm Anna Young, CEO of Mobile Pharma and I also have our VP of Finance, Mark Beveridge, with me here today. We're happy to present our Q4 report that you can find on our webpage. There, you can also find a PowerPoint presentation that I based this call upon. This call will be recorded and uploaded to our webpage. In today's call, I will provide an overview of our performance this quarter, key business developments and highlights strategic initiatives shaping our path forward. I am proud to report that Terclara continues to lead the Swedish market, achieving 31% market share in value and 25% in units for the full year in pharmacy sales and consumers despite consumer marketing launching only in the April. Importantly, momentum continued in Q4 with figures reaching 33% in value and 26 in units, demonstrating demand for products continuing even in the low season. These figures confirm the strength of our products, marketing strategy and our overall market leadership validates our execution and further underscores the potential for sustained expansion across Europe. Building upon this momentum, we are now expanding into Norway, a key milestone in our broadening European growth strategy.

Initial deliveries have already been made and we're launching pharmacy and healthcare staff education alongside targeted consumer marketing in the lead up to the high season. Norway represents a promising market for TiClara and we are confident that with our strategy, we will be able to capture a significant market share. Teklara not only become the market leader in Sweden, but also expanded the total market, reinforcing our strategic approach and was awarded best launch of 2024 at both Cronos Pharmacy and Doss Pharmacy supplier meetings. We have observed that our targeted market campaigns and strategic pricing structure have played an integral role in capturing consumer interest and fostering brand loyalty. With 13 EM markets approvals in place, coupled with the success of the Swedish launch, we are well positioned for additional rollouts in 2026. In December, we reported top line results from the North American Phase three study for MOB15. While the primary endpoint was not met with the reduced dosing regimen, the study yielded valuable insights into dosage trade offs. We confirmed lower drug levels resulted in reduced nail discoloration, but also a lower mycological cure rate. Eight weeks of daily dosing did not deliver sufficient turbinophan in the nail to kill off the nail fungus before switching to weekly maintenance treatment.

Our hypothesis remains. There is a trade off between delivering enough turbinophan and avoiding over hydration and white discoloration of the nails. While this over hydration is temporary, it makes it difficult to assess the clinical cure in a clinical study setting. An additional study with a longer follow-up and or different combination of daily treatment and maintenance treatment could have the potential to generate stronger care efficacy data. The conclusions from previous studies remain valid. Our early North American Phase III study demonstrated superiority and the EU study supports our findings, although it's not defined as a superiority study. Given that FDA generally requires two independent studies providing superiority, Additional data is needed. Following extensive discussions with the regulatory experts and statisticians, we have determined that the meeting with FDA is not feasible based on our current data package as the study did not meet its primary endpoint, thus lacking the necessary data to file an application in The U. S. Given this, additional clinical data is required before we can proceed with an FDA submission, resulting in an extended U. S. Launch timeline. The company's Board of Directors have decided to recognize an intangible asset impairment, reflecting a prudent approach to this matter.

Our long term ambitions remain unchanged. We're committed to conducting an additional U. S. Clinical study to secure FDA approval, enhance global marketing claims and support our ongoing patent application. In the near term, our primary focus remains on scaling the EU and markets where we have existing approvals. By executing successful EU launches and gaining commercial traction where we have existing approvals, we are building a strong foundation for growth before considering new U. S. Studies or investing in marketing outside of Europe. Our European rollout plan is designed for long term value creation, which includes strategic partnerships, targeted educational campaigns and aggressive market penetration efforts to ensure MOP15 reaches its full commercial potential. The pharmaceutical landscape is involved in requiring ACL hybrid approaches to commercialization. Over the past couple of months, we have made strategic decisions regarding our partnerships, adapting to market dynamics and aligning long term value creation. By mutually ending our partnership with Bayer, we obtained full rights to MOB 15 in Europe while maintaining previous milestone payments. This decision aligns with our broader vision to have greater control over commercialization strategy and brand positioning. Similarly, we have conducted concluded our partnership in South Korea due to the highly competitive and structurally unique market conditions.

South Korea presents a challenging environment where generic competition and pricing pressure makes it difficult to achieve sustainable profitability. By stepping away from this market at this time, we can allocate our resources more effectively towards regions that offer the highest potential for return on investment. These changes provide us with better flexibility and manage our activities and investments in Europe and Asia according to our strategic priorities. As a first step, we have decided to take a more active role in commercialization, including ownership of the trademark to enhance margins. Discussions with potential European partners are ongoing. We believe that this approach will not only improve our financial position, but also strengthen our brand identity across key European markets. We secured a new carbonate in supply during the quarter, eliminating a key bottleneck for future market launches and enabling us to plan further expansions with confidence. Ensuring a stable supply chain is critical for our long term success, and we're pleased to have secured a partner to support our growth and business. Going forward, our intention is to adapt a commercialization model similar to our successful U. S. Strategy, positioning Terklar as a premium brand while expanding our portfolio through acquisitions.

Historically, this approach has created economies of scale and valuable brand equity. By levering on our experience and expertise, we aim to replicate our past successes and further strengthen our market position. As mentioned earlier, we now launched Circular in Norway, making a significant step in our European expansion strategy. Given the strong performance in Sweden, we see great potential for Troglara to establish itself as the market leader in Norway as well. We are actively working with pharmacists, healthcare professionals and consumer groups to ensure a smooth and successful rollout. With EU approvals already in place, we remain on track for additional rollouts in 2026. The Swedish launch demonstrated that Tiqqara not only captured the leading market position, but also contributed to the expansion of the total market. This success is a testament to the strength of our strategic approach and we're eager to build on this momentum. In our large two large Phase three studies, seventy six percent of patients became fungus free, a world leading outcome that significantly outperforms any other topical treatment. This success validates our strategy and provides a strong foundation for further European expansion and long term growth. We remain energized and optimistic about the future.

Our refined strategic focus on Europe, strengthened commercialization model and growing market momentum position us well for continued success. Looking ahead, we will focus on maximizing our European opportunities while maintaining a long term commitment to The U. S. Market. With our expanded market presence and ongoing strategic initiatives, we are confident in our ability to drive sustainable growth and create long term value for our shareholders. Thank you for your time today. I will now open up the floor for questions.

Our first question is from Guillermo Infante from Home Personal. Please go ahead.

Hi, Anna. Thank you for taking my call. I wanted to know if you can discuss a little bit the partners that we still have standing like Cipher and the Israeli Badajit, have you been in touch with them? How has been the conversations around our current strategy? That's the first question. And I have two others if I have time.

Thank you. Yes, of course, we are in dialogue with our existing partners and I would say that we have a good dialogue with all our partners. So, well, it's up for each partner to comment on their specific markets, but we're pleased with our collaborations in all territories.

Great. And then how many more countries in the EU could we get approved based on the EMA data that we've submitted because we're fully approved for 13 countries, what would be the max that we could get based on the file that we have submitted?

Well, there is no limitation. We could include all of the EU countries if we want. We will have to think about the time line for doing this. We still have an open variation for including an additional turbofan supplier, and we can't have any open items in our file when we want to include more countries. So it's definitely within our plans to include more countries, but we have to do things in the right order. So it's not fully up to the timeline.

Perfect. But there is no limit. We in theory can go to all of them after we have that intermediate step. So great. And in terms of timing of a potential new Phase III in The U. S, can you discuss potential ticket size of this and how long would it take? Obviously, we cannot discuss timing, but just to have an idea in terms of the cash requirements of the business.

Yes. So we want to show that we're successful not only in Sweden, but in some of the major European territories first. And that will also generate additional data that I think will be supportive when we conduct this study. So it's both from a financial perspective. We want to make sure that we invest in our go to marketing in Europe First. I think we don't want that dilution that we would require to do an additional U. S. Study now. We want to prove to the world that this product is really working in real life consumers, yes, as it is in Sweden, in major European territories before conducting that additional U. S. We have a question from Sameer Devani from Rx Securities. Please go ahead.

Thanks for taking my question. I just wanted to ask, there wasn't much guidance given in today's press release. So maybe you could help us with understanding what sort of revenue expectation you have this year and also how much cash you intend to burn. You've got quite a significant cash balance, so you didn't seem to burn too much in Q4. So, I was just wondering if you could help us with that.

Yes. We're not giving forward looking statements when it comes to our cash positioning, but I can conclude that the markets where we will be launching this year, that is Sweden and Norway. And as you know, we have just received the approval for this turbinepin supplier and the timeline means that we cannot access more markets this year. It will be 2026. That will be significant revenues coming from new sales. So I mean, it's adding one market, I would say that Norway is roughly half the size of the Swedish market. So that gives some guidance. But it's really 2026 when I expect sales to take off. And as you mentioned, we do have a good cash position. And we will invest, of course, in these launches, but we don't expect to use a lot of that cash in the near future.

Is it fair to say that you are financed to sustain profitability then on that basis?

Yes, I would say that.

As we currently have no further questions, I will hand back to Anna for closing remarks.

Okay. Thank you all for calling in. The recordings of this call will be published on our webpage shortly. Thank you, everyone, and have a nice day. This concludes today's call. Thank you for joining. You may now disconnect your lines.