Full Press Release Details
EYES Enriching the Lives of the Blind March 2018 NASDAQ: EYES
EYES Forward Looking Statements 2 This press release contains forward - looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange and Exchange Act of 1934, as amended, which
are intended to be covered by the "safe harbor" created by those sections. All statements in this release that are
not based on historical fact are "forward looking statements." These statements may be identified by words such as
"estimates," "anticipates," "projects," "plans," or "planned," "seeks,"
"may," "will," "expects," "intends," "believes," "should,"
and similar expressions, or the negative versions thereof, and which also may be identified by their context. All statements that
address operating performance or events or developments that Second Sight expects or anticipates will occur in the future, such
as stated objectives or goals, or that are not otherwise historical facts, are forward - looking statements. While management
has based any forward - looking statements included in this release on its current expectations, the information on which such
expectations were based may change. Forward - looking statements involve inherent risks and uncertainties which could cause actual
results to differ materially from those in the forward - looking statements, as a result of various factors including those risks
and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results
of Operations sections of our Annual Report, on Form 10 - K, to be filed on or before April 2, 2018, and our other reports filed
from time to time with the Securities and Exchange Commission. We urge you to consider those risks and uncertainties in evaluating
our forward - looking statements. We caution readers not to place undue reliance upon any such forward - looking statements, which
speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking
to publicly release any updates or revisions to any forward - looking statement contained herein (or elsewhere) to reflect any
change in our expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement
EYES Second Sight Medical Products, Inc. We are a developer, manufacturer and marketer of implantable visual prosthetics
We have created a "Bionic Eye" called the Argus II that allows blind patients to see 1 The Argus
II is the first & only FDA - approved retinal prosthesis available 3 1) The Argus II System, treats outer retinal degenerations,
such as retinitis pigmentosa (a hereditary disease that causes a progressive degeneration of the light - sensitive cells of the
retina, leading to significant visual impairment and ultimately blindness).
EYES What We Offer Blind Individuals? The Argus II system enables useful vision for patients that are completely blind
today 1 o Retinal degenerations, such as retinitis pigmentosa (RP ) o Working on expanding addressable market with Orion I to
treat nearly all blind individuals (e.g. glaucoma, diabetic retinopathy, cancer, trauma) Patients use the Argus II to
achieve: o Improved orientation & mobility o Greater independence o Significant improvements in quality of life o Restored
social connections 1) The Argus II System, treats outer retinal degenerations, such as retinitis pigmentosa (a hereditary
disease that causes a progressive degeneration of the light - sensitive cells of the retina, leading to significant visual impairment
and ultimately blindness). 4 Normal Vision Representation of What an Argus II Patient May See (Yellow Box)
EYES Large Targeted Patient Population of 8+ Million 5 Total Targeted Patient Population: ~8.2M Age - Related Macular Degeneration
(AMD) AMD causes loss of central vision and progresses to blindness Other Forms of Untreatable Blindness Eye trauma, optic nerve
disease, glaucoma, diabetic retinopathy, or forms of cancer & other causes 400K Profound Vision Loss - RP Population
Broader population with little or no usable vision End - Stage Retinitis Pigmentosa (<0.2M) Bare light or no light perception
(completely blind) 5.8M
EYES ARGUS II Technology A patient's functional vision is restored via bypassing the damaged part of the retina to send
visual signals to the healthy retinal cells 6 Miniature video camera in a patient's glasses captures images and converts
them to electronic pulses Electronic pulses bypass dead photoreceptors and stimulate the living cells in the retina, resulting
in light perception patterns in the brain. 1 3 These images are sent to the video processing unit (VPU) and then wirelessly to
implant in patient's eye 2 Argus II System Glasses and Video Processing Unit Electronics Case Electrode Array Receiver (coil)
EYES Orion Technology - The Next Generation Leveraging Argus II technology, our breakthrough Orion platform bypasses the
damaged eye and/or optic nerve to send visual signals directly to the brain 7 2 1 These pulses are sent to the video processing
unit (VPU) and implant on the surface of the patients brain, bypassing the eye and the optic nerve These pulses stimulate the
visual cortex, resulting in the perception of patterns of light in the brain 3 Miniature video camera in a patient's glasses
captures images and converts them to electronic pulses Orion I Technology Electrode array implant on surface of brain Orion has
the potential to restore useful vision to more than 5.8M blind individuals, due to many reasons, including glaucoma, diabetic
retinopathy, or forms of cancer and trauma Video Camera in Glasses Wireless Transmitter
EYES Progress towards Commercializing Orion 8 In 2016, Second Sight & UCLA implanted a wireless multichannel neurostimulation
system on the visual cortex of a patient o Patient was able to perceive and localize individual phosphenes (or spots of light)
with no significant adverse side effects for over a year. o This implant was performed as part of a "proof of concept"
clinical trial whose purpose is to demonstrate initial safety and feasibility of human visual cortex stimulation. Orion Feasibility
In Q1 2018, we successfully implanted and activated the first subject for the Orion feasibility study o The patient was
able to see phosphenes , spots of light, on nearly every electrode tested with no serious adverse events reported. o Ronald Reagan
UCLA Medical Center & Baylor College of Medicine will enroll up to five total patients. o Orion has received FDA Breakthrough
Device designation which is intended to help patients have more timely access to innovative medical devices by expediting their
development, assessment & review
EYES Established Technology Leadership 9 400+ patents issued 80+ patents pending Pioneering Technology Groundbreaking
Research Recognized Leadership 75+ scientific publications 6 clinical & post - approval studies Demonstrated
benefit of 10+ years post - implant Numerous innovation awards Coverage in all major countries and U.S. media
markets The 50 Smartest Companies for 2014
EYES Argus II: An Effective Treatment for Blindness 10 Retinal Prosthesis Competitors CE Mark Widely Reimbursed in Europe FDA
Approved Reimbursed in USA Second Sight, Argus II Retina Implant (Germany)
Pixium Vision (France) ** Nidek Co., Ltd. (Japan)
Bionic Vision Technologies (Australia) NanoRetina (Israel)
Other Therapies CE Mark Widely Reimbursed in Europe FDA Approved Reimbursed in USA Stem Cells
Gene Therapy * Opto - Genetics Transplant
Significant first mover advantage - Currently the ONLY reimbursed treatment for blindness in
US *One company has FDA approval for a gene therapy for a single genetic form of RP ** Withdrawn from market following device
failures and further development postponed
EYES Cumulative Commercial Implants 11 3 6 9 11 18 22 26 31 40 46 49 54 69 88 108 123 144 154 165 179 186 200 219 231 260 - plus
0 50 100 150 200 250 300 2012 2013 2014 2015 2016 2017
EYES Commercial Growth Strategy: Expanding Reimbursement Coverage 12 5 of 7 MACs covering 31 states with positive coverage
decisions for Argus II $122.5k CMS outpatient reimbursement rate for device and surgical procedure in 2018 Coverage
in 2H 2018 in England under "Commissioning through Evaluation" innovation funding program Coverage in Germany
under NUB (innovation funding) program Coverage in France under " Forfait Innovation" program Funding
in several regions of Italy Distribution partnerships in other areas Current Reimbursement in U.S. Currently Approved
EYES Commercial Growth Strategy: Strengthening Centers of Excellence Full - time vision rehabilitation team for each patient
Individual patient assessment & training program Local programming & fittings Full reimbursement
for all device & procedure costs of $122.5K in 2018. CPT codes established for post - surgery programming
Expansive outreach program for qualified candidates Advanced screening with medical professionals Interactive
patient database, blindness level segmented Proprietary durable implant Ongoing upgrades, enhancements of externals
Ongoing research, partnering with assistive technologies 13 Builds foundation for future applications (All Cortical &
Retinal Platforms) Financial Patient Recruitment Patient Management For Life Artificial Vision Rehabilitation & Programming
Center of Excellence
EYES Commercial Growth Strategy: Argus II Technology & Market Expansion 14 Proprietary durable implanted array + continuous
improvement in our externals Argus II platform: o Benefit current patients using the Argus II technology with ongoing enhancements
to our VPU, software, camera & external wear Expand treatable market with "better sighted" RP clinical
studies: o Significantly expand currently addressable RP patient population by 3x - 5x. A substantial portion of these patient
candidates now reside in our US database. o Initiating clinical trial in Germany and pursuing label expansion with FDA for U.S.
EYES Select Financials 15 1) Non - GAAP adjusted net loss excludes non - cash expenses including stock - based compensation and
reserve for excess inventory. (USD $ in Thousands) 2017 FY 2016 Implants 75 (30 implants in Q4) 42 (7 implants in Q4) Revenue
$7,964 $3,985 Gross Profit (Loss) 2,847 (6,091) Net L oss (28,516) (33,179) Non - GAAP Adjusted Net Loss 1 (27,576) (24,812) (USD
$ in Thousands) Dec 31, 2017 Dec 31, 2016 Cash and money market funds $7,839 $10,875 Outstanding Debt $0 $0 Select Projected Financials
at Scale Annual Breakeven >400 Units Gross Margins +70%
EYES Second Sight Key Takeaways 16 Technology Leadership Approved for sale in the US, EU and other markets globally
Robust IP portfolio with 500+ patents issued and pending; Over $200M invested to date Significant first mover advantage
with 5+ year lead over any other therapeutic option in U.S. Large Market Opportunity RP and other untreatable forms of
blindness totaling an estimated 8+ million people Significant unmet clinical need with proven clinical benefit Increased