What are the potential risks or upside scenarios associated with the company's focus on commercial sales and growth opportunities?

Upside Scenarios

• Margin expansion from the 30 % cost‑cut: By slashing operating expenses, Perimeter can now fund its commercial rollout with a leaner balance sheet, which should lift gross‑to‑net margins and give the company a clearer path to profitability. In a sector where AI‑driven imaging solutions still trade at a premium on growth potential, a stronger cost base can translate into a higher earnings multiple and a re‑rating of the stock.
  
• Accelerated commercial sales pipeline – The shift from a development‑heavy model to a commercial‑focused one means the company is moving more products into revenue‑generating contracts with hospitals, imaging centers, and health systems. If the pipeline materialises as expected, Q3‑Q4 revenue could exceed the preliminary Q2 figures, feeding a classic “growth‑plus‑profitability” narrative that often triggers a breakout on the chart. Technicals support this: the daily chart is holding above the 20‑day SMA and the Relative Strength Index (RSI) has bounced from the 40‑45 zone, suggesting room for a short‑to‑mid‑term rally toward the $1.20‑$1.30 resistance band.
  

Key Risks

• Execution and timing risk – Commercial roll‑outs in the med‑tech space are contingent on lengthy procurement cycles, regulatory clearances, and integration with existing hospital IT stacks. Delays or a slower‑than‑expected close‑rate could keep revenue growth flat, leaving the cost‑reduction benefits under‑utilised.
  
• Cash‑flow and runway pressure – While operating costs are down, the company still needs capital to scale sales teams, support contracts, and fund ongoing AI model refinement. A modest cash‑burn rate combined with a potentially volatile earnings profile could force a secondary financing round, diluting existing shareholders and capping upside.
  
• Competitive and macro headwinds – The AI imaging market is attracting big‑tech entrants and well‑funded rivals; any breakthrough from a competitor or a contraction in health‑system spending (e.g., due to higher interest rates or a slowdown in elective procedures) would compress the commercial margin upside and could trigger a pull‑back in the stock.

Trading Implications

• Long bias on a pull‑back: If the price retests the recent low around $1.05 with volume support, a 5‑%‑10 % upside to the $1.15‑$1.20 resistance area looks attractive, especially with the cost‑cut and pipeline narrative still intact.
  
• Protective stop: Place a stop just below the 20‑day SMA (~$0.98) to guard against execution setbacks or a sudden cash‑runway scare.
  
• Monitor catalysts: Watch for any forward‑looking guidance on contract wins, regulatory updates, or cash‑flow disclosures in the next earnings call (August 26). Positive updates could accelerate the upside, while a muted outlook would warrant a defensive stance.