IRIDEX CORP

Previous wording

Ophthalmologists typically use our laser systems in hospital operating rooms and ambulatory surgical centers, as well as their offices and clinics. In operating rooms and ambulatory surgical centers, ophthalmologists use our laser systems with either an indirect laser ophthalmoscope or a single-use consumable probe, including MicroPulse P3®, G-Probe® and G-Probe Illuminate® delivery devices, and EndoProbe handpieces. In the offices and clinics, ophthalmologists use our laser systems with either an indirect laser ophthalmoscope or a slit-lamp adapter. Our proprietary MicroPulse® and Continuous Wave laser therapies for glaucoma have been adopted by physicians around the globe as effective tools for managing and slowing the progression of glaucoma.

Current wording

Ophthalmologists typically use our laser systems in hospital operating rooms and ambulatory surgical centers, as well as their offices and clinics. In operating rooms and ambulatory surgical centers, ophthalmologists use our laser systems with either an indirect laser ophthalmoscope or a single-use consumable probe, including MicroPulse P3®, G-Probe® and G-Probe Illuminate® delivery devices, and EndoProbe handpieces. In offices and clinics, ophthalmologists use our laser systems with either an indirect laser ophthalmoscope or a slit-lamp adapter. Our proprietary MicroPulse® and Continuous Wave laser therapies for glaucoma have been adopted by physicians around the globe as effective tools for managing and slowing the progression of glaucoma.

Previous wording

Our total revenues decreased by $0.1 million, or 0.8%, from $11.9 million to $11.8 million. Revenue in our glaucoma and other revenue product groups increased, partially offset by a decrease in our retina products.

Current wording

Our total revenues decreased by $1.0 million, or 7.4%, from $13.6 million to $12.6 million. Revenue in our retina and other revenue product groups decreased, partially offset by an increase in our glaucoma product group.

Previous wording

Gross profit decreased by $0.3 million, or 6.2% from $5.0 million to $4.7 million. Gross margin decreased by 2.3% from 42.5% to 40.2%. The decrease in gross margin was primarily due to higher manufacturing costs and increased product costs related to recent tariff developments as the Company continues its transition to lower-cost contract manufacturers.

Current wording

Gross profit decreased by $0.4 million, or 8.2% from $4.7 million to $4.3 million. Gross margin decreased by 0.3% from 34.5% to 34.2%. The decrease in gross margin was primarily due to higher manufacturing costs and increased product costs related to recent tariff developments as the Company continues its transition to lower-cost contract manufacturers.

Previous wording

We recorded an income tax provision of $58 thousand and $12 thousand for the three months ended April 4, 2026 and March 29, 2025, respectively.

Current wording

We recorded an income tax provision of $70 thousand and $21 thousand for the three months ended July 4, 2026 and June 28, 2025, respectively.

Previous wording

General and administrative expenses decreased by $0.3 million, or 16.0% from $1.9 million to $1.6 million. The decrease was primarily attributable to lower consulting costs, reduced deal related legal expenses, and cost savings realized from the general and administrative function transfer initiative announced in prior periods.

Current wording

General and administrative expenses decreased by $0.6 million, or 16.4% from $4.1 million to $3.5 million. The decrease primarily reflects lower consulting costs, cost savings realized from the previously announced general and administrative function transfer initiative, and lower severance expense compared to the prior fiscal year.

Previous wording

Other expense, net, was $0.1 million for the three months ended April 4, 2026, primarily consisting of interest and amortization of loan expenses. Other expense, net, was $1.5 million for the three months ended March 29, 2025, driven primarily by the costs associated with the Lind Note payable settlement.

Current wording

Other expense, net, was $0.3 million for the six months ended July 4, 2026, primarily consisting of interest and amortization of loan expenses. Other expense, net, was $1.5 million for the six months ended June 28, 2025, driven primarily by the costs associated with the Lind Note payable settlement.

Previous wording

As of April 4, 2026, we had cash and cash equivalents of $4.6 million and working capital of $11.8 million compared to cash and cash equivalents of $6.0 million and working capital of $12.0 million as of January 3, 2026.

Current wording

As of July 4, 2026, we had cash and cash equivalents of $4.7 million and working capital of $10.8 million compared to cash and cash equivalents of $6.0 million and working capital of $12.0 million as of January 3, 2026.

Previous wording

Net cash used in operating activities was $1.3 million in the three months ended April 4, 2026 compared to net cash used in operating activities of $1.1 million in the three months ended March 29, 2025. The increase in net cash used in operating activities was primarily due to increase in loss from operations.

Current wording

Net cash used in operating activities was $1.2 million in the six months ended July 4, 2026 compared to net cash used in operating activities of $1.5 million in the six months ended June 28, 2025. The decrease primarily reflects lower operating losses, partially offset by increased purchases of safety stock inventory.

Previous wording

For the three months ended April 4, 2026, net cash used in investing activities was $0.1 million, which consisted of capital expenditures. For the three months ended March 29, 2025, net cash used in investing activities was $11 thousand, which consisted of capital expenditures.

Current wording

For the six months ended July 4, 2026, net cash used in investing activities was $0.1 million, which consisted of capital expenditures. For the six months ended June 28, 2025, net cash used in investing activities was $24 thousand, which consisted of capital expenditures.

Previous wording

For the three months ended April 4, 2026, net cash used in financing activities was $1 thousand, primarily related to taxes paid to net share settlement of equity awards. For the three months ended March 29, 2025, net cash from financing activities was $6.0 million. In the first fiscal quarter of 2025, we received $10 million in issuance of convertible preferred shares and convertible debt, offset by $4.0 million in early prepayment of convertible debt.

Current wording

For the six months ended July 4, 2026, net cash used in financing activities was $39 thousand, primarily related to taxes paid related to net share settlement of equity awards. For the six months ended June 28, 2025, net cash from financing activities was $6.0 million. In the first fiscal quarter of 2025, we received $10 million in issuance of convertible preferred shares and convertible debt, offset by $4.0 million in early prepayment of convertible debt.

Previous wording

We have historically funded our operations primarily through sales of our products to customers, sales of our common stock and borrowing arrangements. As of April 4, 2026, our principal sources of liquidity consisted of cash and cash equivalents of $4.6 million.

Current wording

We have historically funded our operations primarily through sales of our products to customers, sales of our common stock and borrowing arrangements. As of July 4, 2026, our principal sources of liquidity consisted of cash and cash equivalents of $4.7 million. We have incurred net losses over the last several years, and as of July 4, 2026, have an accumulated deficit of approximately $94.2 million.