Visioneering Technologies : Appendix 4E and Annual Financial Statements

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ASX Announcement | 24 February 2022

Visioneering Technologies (ASX:VTI)

Visioneering 2021 Annual Results Announcement

Atlanta, Georgia, Wednesday, 23 February 2022 (Thursday, 24 February 2022 Sydney time): US-basedmedical device company and producer of the NaturalVue® (etafilcon A) Multifocal 1 Day Contact Lenses Visioneering Technologies, Inc. (ASX: VTI) ('Visioneering' or 'the Company') has today released its Appendix 4E Full Year Final Results for the fiscal year ended 31 December 2021.

Brian Lane, Visioneering's CFO, said: "We had a record year in FY21, exceeding our annual forecast and increasing our net revenue by 40% over FY20. We provided details of our quarterly and annual results in the quarterly activity report included with our Appendix 4C (see ASX release on 28 January 2022). In addition, we achieved several significant milestones in FY21:

• Raised US$16.7 million net of issuance costs through a placement and share purchase plan in March and April 2021
• Achieved record net revenue of US$7.2 million, including our first quarter with more than US$2 million in net revenue in Q4 FY21
• Prepared for the initiation of the PROTECT Clinical Study, our landmark international multi-center study to provide an additional measure of the effectiveness of our NaturalVue Multifocal for myopia progression control, with the first patient completing the initial visit in January 2022 (see ASX release on 24 January 2022)
• Launched our first new product since 2018, the NaturalVue (etafilcon A) Enhanced Multifocal 1-DayTM contact lens

These achievements lay the foundation for our plans for 2022 and beyond. We are focused on two overriding objectives: executing the PROTECT Clinical Study so that we will report 1-year interim data in the second half of 2023; and growing our base business through a combination of increased revenues and conservative management of our existing cash so that we can reach approximately break-even cash flow by early 2024. We believe the 1-year interim data from the PROTECT Clinical Study is an important milestone for VTI, as it will be a strong predictor of the overall outcome of the study. Our goal is that the data will demonstrate the superiority of NaturalVue MF over the control lens, providing a significant and important data point for practitioners and strategic partners."

Mr. Lane continued, "We had US$11.0 million in cash at the end of 2021 and our net cash used in operating activities was US$8.0 million during the year. These metrics might imply, through simple extrapolation, that we have less than six quarters of cash on hand, but we have a more positive view of our cash position. While we expect cash use relating to the PROTECT Clinical Study will increase in FY22 compared to FY21, other factors should lower our net cash use, driving a reduction in net cash use of 25% or more in FY22 compared to FY21, with further reductions anticipated in FY23. These factors include continued improvements in operating results through higher revenues, elevated gross margins and lower operating expenses. Further, FY21 included several costs that we don't expect to reoccur in FY22, such as a new product launch and certain consulting fees."

Mr. Lane concluded, "The NaturalVue Multifocal contact lens is a unique product that addresses a significant, critical and growing need in the market. Our investors showed great faith in Visioneering by providing additional funding in FY21, and we are committed to using the proceeds as we stated during

Visioneering Technologies (ASX:VTI) • www.vtivision.com • www.vtivisioninvestors.com (for investors)

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: [e-mail] • P: [phone]

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the financing. With our record results in FY21, we've taken a positive step towards that goal. We have great momentum going into FY22 and intend to make it another record year."

Ends.

This release was authorized by the CFO, Brian Lane.

For more information, please contact:

Company	Investor and media relations
Brian Lane	Haley Chartres
CFO, Visioneering Technologies, Inc.	H^CK
Email: [e-mail]	Tel: [phone]
	Email: [e-mail]

About VTI:

Visioneering Technologies Inc. (ASX:VTI) is an innovative eye care company committed to redefining vision. A pioneer in myopia management, VTI merges advanced engineering with a relentless drive to achieve superior results for patients and practitioners. VTI's flagship product is the NaturalVue® (etafilcon A) Multifocal 1-Day Contact Lens, an extended depth of focus lens that is one of the most significant innovations in the eye care industry in more than 20 years. For more information, please visit www.vtivision.com.

Foreign ownership restrictions:

VTI's CHESS Depositary Interests (CDIs) are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers which are made outside the US. Accordingly, the CDIs have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. As a result of relying on the Regulation S exemption, the CDIs are 'restricted securities' under Rule 144 of the Securities Act. This means that you are unable to sell the CDIs into the US or to a US person for the foreseeable future except in very limited circumstances after the expiration of a restricted period, unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a 'FOR US' designation on the Australian Securities Exchange (ASX). This designation restricts any CDIs from being sold on ASX to US persons. However, you are still able to freely transfer your CDIs on ASX to any person other than a US person. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.

Forward-Looking Statements

This announcement contains or may contain forward-looking statements that are based on management's beliefs, assumptions and expectations and on information currently available to management. Forward- looking statements involve known and unknown risks, uncertainties, contingencies and other factors, many of which are beyond the Company's control (including but not limited to the COVID-19 pandemic), subject to change without notice and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct.

All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. These include, without limitation, U.S. commercial market acceptance and U.S. sales of our product, as well as our expectations with respect to our ability to

Visioneering Technologies (ASX:VTI) • www.vtivision.com • www.vtivisioninvestors.com (for investors)

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: [e-mail] • P: [phone]

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develop and commercialize new products.

Given the current uncertainties regarding the on-going impact of COVID-19 on the trading conditions impacting VTI, the financial markets and the health services world-wide, there can be no assurance that future developments will be in accordance with VTI's expectations or that the effect of future developments on VTI will be those anticipated.

Management believes that these forward-looking statements are reasonable when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. VTI does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. VTI may not actually achieve the plans, projections or expectations disclosed in forward-looking statements. Actual results, developments or events could differ materially from those disclosed in the forward-looking statements.

VTI-IR-ASX59

Visioneering Technologies (ASX:VTI) • www.vtivision.com • www.vtivisioninvestors.com (for investors)

10745 Westside Way, Suite 200 Alpharetta, GA 30009 USA • E: [e-mail] • P: [phone]

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APPENDIX 4E (RULE 4.3A)

PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

RESULTS FOR ANNOUNCEMENT TO THE MARKET

(US$ in 000's, unaudited, except account,
per account and per share data)	2021	2020	up/down	% movement
Net Revenue	$7,154	$5,105	up	40%
Shipments to US ECPs (A)	$6,980	$5,610	up	24%
Active US Accounts (B)	2,305	2,074	up	11%
Net cash used in operating activities	$8,005	$6,508	up	23%
Loss after tax from ordinary activities
attributable to members	($2,334)	($9,239)	down	-75%
Net loss after tax attributable to
members	($2,334)	($9,239)	down	-75%
Dividend per security	Nil	Nil
Franked amount of dividends per
security	Nil	Nil
Net tangible asset backing per CHESS
Depository Interest / Share of Class A
common stock	$0.411	($0.205)

1. Shipments to US ECPs, or Eye Care Professionals, represents the gross revenue equivalent of lenses shipped to ECPs located in the US, net of fulfillment fees.
2. Active US Accounts are ECPs located in the US that purchased VTI products in the most recent fiscal quarter.

• Annual financial results: This report is based on the accompanying 2021 consolidated financial statements which have been audited by Grant Thornton, LLP. Our audited financial statements contain an independent audit report that includes an unmodified opinion with an emphasis-of-matter paragraph because management considered whether substantial doubt about the Company's ability to continue as a going concern beyond one year from the date of these financial statements existed but determined that management's plans alleviated this uncertainty as more fully described in Note 1 to the financial statements.
• Changes in control over entities: There are no entities over which control has been gained or lost during 2021.
• Details of dividends and dividend reinvestment plans: No dividends have been declared or proposed.
• Details of associates or joint ventures: N/A
• Set of accounting standards used in compiling the report: The audited financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (US GAAP) and are denominated in U.S. dollars.
• Details of audit disputes or audit qualification: None.
• A commentary on the results for the period (US$ in 000's except per share data): The net loss for the year decreased to $2,334 compared to $9,239 for the previous corresponding period. Basic and Diluted earnings per share was ($0.11) and ($1.24) for the years ended 31 December 2021 and 2020, respectively.
• • Net revenue increased to $7,154 from $5,105 for the previous period, primarily due to improved access to ECPs and release from restrictions in the US and other countries associated with the COVID-19 pandemic.
  • Shipments to US ECPs were up 24%.
  • Cost of Sales increased to $4,187, or 58.5% of net revenue in 2021 from $2,881, or 56.4% of net revenue, in
  • • 4 ‐
      2020. The monetary increase primarily resulted from the increase in Net revenue. As a percentage of net

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revenue for the relevant period, Cost of sales increased due to higher shipping costs due to global shipping constraints.

• Total Operating Expenses increased to $10,235 from $9,936 for the previous period, primarily due to increased Clinical expense as related to the international multi-center clinical study. The study, referred to as 'PROTECT' (PROgressive Myopia Treatment Evaluation for NaturalVue Multifocal Contact Lens Trial), is a multi-center, randomized, double masked clinical trial with participating investigators in centers in Canada, the United States and Hong Kong.
• Total Interest income and other, net decreased to $0 from $9 due to a decrease in cash on hand.
• Interest expense decreased slightly to $322 vs $334 due to $200 of the Convertible Notes issued in July 2019 being converted to shares in October 2020.
• Gain(loss) on fair value of derivative liability increased to $128 from ($130) for the previous period due to the change in fair value of the derivative liability associated with the Convertible Notes.
• Gain (Loss) on fair value of freestanding options increased to $4,212 from ($1,069) for the previous period due to the change in the fair value of the derivative liability associated with the freestanding options issued in June 2020 and March 2021.
• Gain on extinguishment of Paycheck Protection Program note payable increased $921 from $0 for the previous period due to forgiveness of the note payable related to the Paycheck Protection Program in June 2021.
• The Company had cash and cash equivalents of $10,985 at 31 December 2021.
• The Company operated in two reportable segments during the period, including North America and Europe/Asia-Pacific.
• There were no returns to shareholders or share buy backs.

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