Core Viewpoint - Zomedica Corp. is hosting a special session of its "Fourth Friday at Four" investor webinar series to provide strategic context for its product platforms, with the session scheduled for November 21, 2025 [1] Group 1 - The webinar will take place on the third Friday of November to accommodate the holiday calendar [1] - The session aims to highlight Zomedica's innovative diagnostic and therapeutic devices for equine and companion animals [1]

Core Insights - Zomedica Corp. has achieved ISO 13485:2016 certification for its manufacturing and distribution operations, enhancing its commitment to quality and compliance [1] Company Summary - The certification applies to Zomedica's facilities in Plymouth, Minnesota, and Roswell, Georgia, reinforcing the company's operational standards [1] - This milestone supports Zomedica's long-term growth strategy and readiness for global markets [1]

Revenue Growth - Revenue for Q3 2025 increased by 16% to $8.1 million, marking the highest quarterly revenue in company history and the 19th consecutive quarter of year-over-year revenue growth[1][10][12]. - The Diagnostics segment saw a significant growth of 51%, driven by the adoption of the TRUFORMA® platform and the introduction of a new Development Services revenue stream[5][10][16]. - International sales grew by 16% year-over-year, supported by new distribution agreements and partnerships in key markets[6]. - The introduction of new products, including enhancements to the TRUFORMA® platform and the upcoming TRUVIEW AI platform, is expected to drive future revenue growth[7]. - Zomedica's total addressable market in the U.S. exceeds $2 billion, indicating significant growth opportunities in the animal health sector[21]. Profitability and Expenses - Gross margin for the quarter was reported at 67%, contributing to improved profitability prospects[8][10][13]. - Operating expenses decreased by 4% year-over-year to $12.0 million, reflecting effective cost-reduction initiatives[8][13][14]. - Net loss for Q3 2025 was reduced by 9% to $6.1 million compared to the same period in 2024[15]. - Adjusted Non-GAAP EBITDA loss for the three months ended September 30, 2025, was $3,702 thousand, an improvement from $4,313 thousand in the same period of 2024[31]. - Interest income for the three months ended September 30, 2025, was $(561) thousand, an improvement from $(977) thousand in 2024[31]. Financial Position - The company had cash and cash equivalents of $54.4 million as of September 30, 2025, providing a strong liquidity position to support growth initiatives[18]. - Non-GAAP EBITDA loss for the nine months ended September 30, 2025, was $71,427 thousand, compared to a loss of $34,612 thousand in 2024, indicating a significant increase in losses[33]. - Total net loss for the nine months ended September 30, 2025, reached $77,223 thousand, compared to $39,536 thousand in 2024, reflecting a worsening financial position[33]. Impairment and Expenses - Impairment expense for the nine months ended September 30, 2025, was $55,833 thousand, a substantial increase from $16,024 thousand in 2024[33]. - Stock-compensation expense for the three months ended September 30, 2025, was $868 thousand, up from $473 thousand in the same period of 2024[31]. - Amortization expense for the nine months ended September 30, 2025, was $4,499 thousand, slightly lower than $4,834 thousand in 2024[33]. - Income tax benefit for the nine months ended September 30, 2025, was $(64) thousand, compared to $(336) thousand in 2024, indicating a decrease in tax benefits[33]. Proforma Adjustments - Proforma adjustments for the three months ended September 30, 2025, included $214 thousand, down from $523 thousand in 2024[31].

Core Insights - Zomedica reported its highest quarterly revenue ever for the third quarter ended September 30, 2025, marking a record year-over-year revenue for the 19th consecutive quarter [1] Financial Performance - The company achieved significant financial growth, with consolidated financial results indicating a strong performance in the animal health sector [1] - The report highlights the effectiveness of Zomedica's point-of-care diagnostic and therapeutic products for equine and companion animals, contributing to the revenue increase [1]

Impairment Charges - The company reported a non-cash goodwill impairment charge of $45,555 for the three months ended March 31, 2025, due to its carrying amount exceeding fair value by approximately 163% for the PulseVet reporting unit and 128% for the Assisi reporting unit [139]. - The company recognized $8,297 in non-cash impairment charges related to amortizable intangible assets during the first quarter of 2025, with no impairment indicators identified for the third quarter of 2025 [140]. - A non-cash impairment charge of $1,981 related to property and equipment was recorded during the three months ended March 31, 2025, with no impairment indicators identified for the third quarter of 2025 [141]. - The company evaluates goodwill for impairment annually or when triggering events occur, with significant assumptions including financial projections and discount rates [135]. - The company uses a discounted cash flow method for estimating fair values of reporting units, considering various internal and external factors [136]. Revenue and Profitability - Revenue for the three months ended September 30, 2025 was $8,095, an increase of $1,098, or 16% compared to the same period in 2024 [152]. - Revenue for the nine months ended September 30, 2025 was $21,559, an increase of $2,169, or 11% compared to the same period in 2024 [152]. - Cost of revenue for the three months ended September 30, 2025 was $2,659, an increase of $722, or 37% compared to the same period in 2024 [154]. - Gross profit margin for the three months ended September 30, 2025 was 67%, down from 72% in the same period in 2024 [156]. - Net loss for the three months ended September 30, 2025 was $6,121, a decrease of $576, or 9% compared to the same period in 2024 [167]. Operating Expenses - Operating expenses consist of general and administrative, research and development, and selling and marketing expenses, with a focus on supporting business operations and product development [119]. - General and administrative expense for the three months ended September 30, 2025 was $5,900, a decrease of $865, or 13% compared to the same period in 2024 [158]. - Research and development expense for the nine months ended September 30, 2025 was $5,523, an increase of $401, or 8% compared to the same period in 2024 [161]. - Selling and marketing expense for the three months ended September 30, 2025 was $4,358, an increase of $468, or 12% compared to the same period in 2024 [163]. Cash Flow and Financial Position - Cash used in operating activities for the nine months ended September 30, 2025 was $16,750, a decrease of $2,355, or 12% compared to the same period in 2024 [170]. - As of September 30, 2025, the company had an accumulated deficit of $295,243 [173]. - The company's long-term cash requirements are expected to be sufficient to fund operational needs beyond the next twelve months [176]. - The company's long-term cash requirements have not changed materially since the 2024 Form 10-K [179]. Taxation - Deferred tax assets for U.S. federal income tax purposes amount to $20,005, with non-capital loss carryforwards for Canada at $6,419, expiring in fiscal year 2035 [180]. - The company derecognized $3,814 of U.S. federal income tax net operating loss carryforwards, reducing the carryforward to $16,191 [180]. - The One Big Beautiful Bill Act enacted on July 4, 2025, had an immaterial impact on the company's income tax provision [181]. Climate Change Impact - Increased public awareness of climate change may lead to more stringent requirements for reducing greenhouse gas emissions and shifting to sustainable energy sources [182]. - The potential impact of climate change on operations remains uncertain, with risks including changes in rainfall patterns and increased operating costs [183]. - Climate change may indirectly increase resource prices and affect the demand and availability of property and casualty insurance [183]. Business Development and Future Capital Requirements - The company's future capital requirements will depend on various factors, including development costs and expenses related to being a public company [177]. - Ongoing business development activities may require liquidity and additional capital for newly acquired operations [176].

Core Insights - Zomedica has entered into an expanded distribution agreement with Grovet b.v., enhancing its presence in the European market and broadening its product portfolio [1] - This agreement positions Zomedica to capture growth opportunities in the multi-billion-dollar global veterinary diagnostics and therapeutic device markets [1] Company Developments - The expanded agreement with Grovet b.v. is aimed at strengthening Zomedica's distribution capabilities in Europe [1] - Zomedica specializes in innovative point-of-care diagnostic and therapeutic device products for equine and companion animals [1] Market Implications - The partnership is expected to facilitate Zomedica's entry into a growing market, which is characterized by increasing demand for veterinary diagnostics and therapeutic devices [1] - The global veterinary diagnostics and therapeutic device markets are projected to be worth several billion dollars, indicating significant growth potential for Zomedica [1]

Core Insights - Zomedica Corp. has expanded its distribution agreement with UXR Inc. to enhance access to its veterinary health products in Canada [1] Group 1: Agreement Details - UXR Inc. will become the exclusive distributor of Zomedica's PulseVet® system in Canada [1] - UXR will also be the co-exclusive distributor of the system's consumable Trode accessories [1]

Summary of Zomedica (ZOM) Conference Call - August 07, 2025 Company Overview - **Company**: Zomedica Corporation - **Ticker Symbol**: ZOMDF (OTCQB Venture Market) - **Industry**: Animal Health and Veterinary Services Key Points and Arguments 1. **Market Opportunity**: The total addressable market for Zomedica exceeds $2.7 billion annually, with the veterinary services segment in the U.S. valued at over $62 billion and growing [4][6]. 2. **Revenue Growth**: Zomedica has reported an increase in year-over-year revenues for 18 consecutive quarters, with revenues rising from $1 million in 2020 to $27 million in the last year [27][28]. 3. **Product Portfolio**: The company has developed six proprietary technology platforms aimed at improving veterinary care and practice profitability [4][5]. 4. **Capital and Liquidity**: Zomedica has $59 million in capital to support growth towards profitability [5][28]. 5. **High Margins**: The company maintains gross margins between 67% to 70%, with a focus on manufacturing its products to control costs [28][34]. 6. **Recurring Revenue Model**: A significant portion of revenue comes from consumable products, with nearly 70% of revenue from the PulseVet system derived from reorders of handpieces [13][14]. 7. **Innovative Technologies**: Key products include: - **PulseVet**: A shockwave therapy system generating significant revenue [10][11]. - **Assisi Loop**: A targeted pulse electromagnetic field therapy device, contributing about one-third of revenue from reorders [17][18]. - **Vetagel Hemostatic Gel**: A fast-acting gel for stopping bleeding, licensed for distribution in the U.S. [19][20]. - **TrueView Microscope**: A digital microscopy platform with AI capabilities, enhancing diagnostic capabilities for veterinarians [21][50]. - **TruForm Platform**: A diagnostic device utilizing bulk acoustic wave sensors, showing over 75% growth this year [22][23]. - **VetGuardian**: A pet monitoring device that provides vital signs without attachments, enhancing post-surgery care [24][25]. 8. **International Expansion**: Approximately 20% of revenue comes from international markets, with a 13% growth in international sales last quarter [30]. 9. **Future Growth Strategy**: Focus on leveraging commercial infrastructure, expanding product portfolio, and pursuing M&A opportunities while maintaining high margins [29][33]. 10. **Market Positioning**: The company believes it is undervalued, with a negative enterprise value despite significant revenue growth and potential [46][47]. Additional Important Insights - **COVID-19 Impact**: The pandemic led to an increase of 23 million pets in households, expanding the market for veterinary services [7]. - **Veterinary Challenges**: Veterinarians face staffing shortages and revenue loss to online competitors, which Zomedica aims to address with its products [9]. - **Economic Model**: The economic model for veterinarians using Zomedica's products is favorable, allowing them to achieve profitability quickly [15][16]. - **R&D and M&A Balance**: The company is shifting focus from R&D to scaling commercial adoption while still considering M&A opportunities for growth [39][40]. - **Future Product Launches**: New product launches are expected to enhance revenue and market presence, with AI integration in diagnostic tools [50][51]. This summary encapsulates the key insights from the Zomedica conference call, highlighting the company's market position, growth strategies, and innovative product offerings in the veterinary sector.

[Zomedica Announces Second Quarter 2025 Financial Results](index=1&type=section&id=Zomedica%20Announces%20Second%20Quarter%202025%20Financial%20Results) [Executive Summary & Key Highlights](index=1&type=section&id=1.1.%20Executive%20Summary%20%26%20Key%20Highlights) Zomedica reported strong Q2 2025 results with record revenue growth for the 18th consecutive quarter, driven by therapeutic and diagnostic product adoption - Zomedica achieved its **18th consecutive quarter** of record year-over-year revenue growth[1](index=1&type=chunk)[2](index=2&type=chunk) Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Change YoY | Source | | :----- | :------ | :--------- | :----- | | Revenue | $7.0 million | +14% | [1, 9] | | Gross Margin | 67% | N/A | [1, 6] | | Operating Expenses Reduction | $0.7 million | -5% (adjusted) | [7, 14] | | Liquidity (Cash, Equivalents, Securities) | $59.1 million | N/A | [1, 20] | [Strategic Initiatives and Product Enhancements](index=1&type=section&id=1.2.%20Strategic%20Initiatives%20and%20Product%20Enhancements) The company advanced its product portfolio and market presence through international expansion, a new Equine Asthma registry, and platform enhancements - International sales grew by **13%** compared to Q2 2024, driven by organic growth and new distributor partnerships[4](index=4&type=chunk) - Launched a national Equine Asthma registry which provides a low-cost way to accumulate data to support expanded usage of the PulseVet system[4](index=4&type=chunk) - Introduced an enhanced **TRUFORMA® T4 assay** and a **VetGuardian® onboarding app**, with additional enhancements planned for VetGuardian and TRUVIEW® platforms in the upcoming quarter[5](index=5&type=chunk) [2025 Second Quarter Financial Performance](index=1&type=section&id=2025%20Second%20Quarter%20Financial%20Performance) [Revenue Overview](index=1&type=section&id=2.1.%20Revenue%20Overview) Total revenue increased 14% year-over-year to $7.0 million, propelled by strong growth in the Diagnostics segment and consumable sales Q2 2025 Revenue Performance | Metric | Q2 2025 Revenue | Q2 2024 Revenue | YoY Change | Source | | :----- | :-------------- | :-------------- | :--------- | :----- | | Total Revenue | $7.0 million | $6.1 million | +14% | [9, 13] | [Revenue by Product Segment](index=1&type=section&id=2.1.1.%20Revenue%20by%20Product%20Segment) The Diagnostics segment grew 86% year-over-year, driven by TRUFORMA platform adoption, while the Therapeutic Device segment grew 8% Q2 2025 Revenue by Product Segment | Segment | Q2 2025 Revenue | YoY Change | Primary Driver | Source | | :-------- | :-------------- | :--------- | :------------- | :----- | | Diagnostics | $0.8 million | +86% | TRUFORMA point-of-care diagnostic platform, expanded menu of assays | [3, 9, 10] | | Therapeutic Device | $6.2 million | +8% | PulseVet® and Assisi® products | [10, 11] | [Revenue by Product Category](index=1&type=section&id=2.1.2.%20Revenue%20by%20Product%20Category) Consumable revenues grew 21% year-over-year, led by TRUFORMA and PulseVet products, while capital revenues remained flat Q2 2025 Revenue by Product Category | Category | Q2 2025 Revenue | YoY Change | Primary Driver | Source | | :------- | :-------------- | :--------- | :------------- | :----- | | Consumables | $5.3 million | +21% | TRUFORMA products, PulseVet® trodes | [3, 21] | | Capital | $1.7 million | Flat | N/A | [21] | [Gross Margin](index=1&type=section&id=2.2.%20Gross%20Margin) Zomedica maintained a strong gross margin of 67% for the second quarter of 2025 Q2 2025 Gross Margin | Metric | Q2 2025 | | :----- | :------ | | Gross Margin | 67% | [Operating Expenses](index=2&type=section&id=2.3.%20Operating%20Expenses) Total operating expenses decreased significantly due to the non-recurrence of a prior-year impairment charge, with a 5% adjusted reduction Q2 2025 Operating Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | Total Operating Expenses | $12.7 million | $29.4 million | -56.8% | [14] | | Total Operating Expenses (Excl. Impairment) | $12.7 million | $13.4 million (adjusted) | -5% | [14] | | Impairment Charge (Q2 2024) | N/A | $16.0 million | N/A | [14] | [Research and Development (R&D) Expenses](index=2&type=section&id=2.3.1.%20Research%20and%20Development%20%28R%26D%29%20Expenses) R&D expenses increased by 25% year-over-year, reflecting continued investment in internal product development capabilities Q2 2025 R&D Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | R&D Expenses | $1.9 million | $1.5 million | +25% | [15] | - The increase was driven by costs related to building internal capabilities for developing next-generation therapeutic and diagnostic products[15](index=15&type=chunk) [Selling and Marketing (S&M) Expenses](index=2&type=section&id=2.3.2.%20Selling%20and%20Marketing%20%28S%26M%29%20Expenses) S&M expenses rose by 19% year-over-year due to increased sales headcount and higher commissions from sales growth Q2 2025 S&M Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | S&M Expenses | $4.6 million | $3.9 million | +19% | [16] | - The increase was primarily driven by a larger sales department headcount and higher commissions associated with sales growth[16](index=16&type=chunk) [General and Administrative (G&A) Expenses](index=2&type=section&id=2.3.3.%20General%20and%20Administrative%20%28G%26A%29%20Expenses) G&A expenses decreased by 23% year-over-year, mainly due to non-recurring prior-year fees and reduced salary costs Q2 2025 G&A Expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | G&A Expenses | $6.2 million | $8.0 million | -23% | [17] | - The decrease was primarily driven by the non-recurrence of prior-year special meeting and impairment-related accounting fees, as well as lower salary and severance expenses[17](index=17&type=chunk) [Net Loss and Profitability](index=2&type=section&id=2.4.%20Net%20Loss%20and%20Profitability) The company significantly reduced its net loss to $7.4 million from $23.9 million in the prior-year quarter Q2 2025 Net Loss | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | Net Loss | $7.4 million | $23.9 million | -69.1% | [18] | - The Q2 2024 net loss included a **non-cash impairment charge of $16.0 million**[14](index=14&type=chunk)[18](index=18&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=2.5.%20Non-GAAP%20Financial%20Measures) The Non-GAAP EBITDA loss improved significantly, while the Adjusted Non-GAAP EBITDA loss remained relatively stable year-over-year Q2 2025 Non-GAAP EBITDA Loss | Metric | Q2 2025 | Q2 2024 | YoY Change | Source | | :----- | :------ | :------ | :--------- | :----- | | Non-GAAP EBITDA Loss | $5.8 million | $22.3 million (adjusted) | -74.0% | [18] | | Adjusted Non-GAAP EBITDA Loss | $5.5 million | $5.2 million | +5.8% | [19] | [Liquidity and Capital Structure](index=2&type=section&id=Liquidity%20and%20Capital%20Structure) [Cash and Securities](index=2&type=section&id=3.1.%20Cash%20and%20Securities) Zomedica maintained a strong liquidity position with $59.1 million in cash, cash equivalents, and available-for-sale securities Liquidity as of June 30, 2025 | Metric | Amount | | :----- | :----- | | Cash, Cash Equivalents, and Available-for-Sale Securities | $59.1 million | [Outstanding Share Capital](index=2&type=section&id=3.2.%20Outstanding%20Share%20Capital) As of June 30, 2025, the company had approximately 980 million common shares issued and outstanding Outstanding Common Shares as of June 30, 2025 | Metric | Amount | | :----- | :----- | | Common Shares Issued and Outstanding | 979,949,668 | [Company Profile and Additional Information](index=3&type=section&id=Company%20Profile%20and%20Additional%20Information) [About Zomedica](index=3&type=section&id=4.1.%20About%20Zomedica) Zomedica is a veterinary health company providing innovative solutions for animals, targeting a U.S. market exceeding $2 billion - Zomedica is a leading equine and companion animal healthcare company dedicated to improving animal health by providing veterinarians innovative therapeutic and diagnostic solutions[25](index=25&type=chunk) - Key products include **PulseVet®** shock wave system, **Assisi® Loop**, **TRUFORMA®** diagnostic platform, **TRUVIEW®** digital cytology system, **VETGuardian®** no-touch monitoring system, and **VETIGEL®** hemostatic gel[25](index=25&type=chunk) - The total addressable market in the U.S. for Zomedica's products **exceeds $2 billion**[25](index=25&type=chunk) - Strategic focus areas include advancing product offerings, leveraging strategic acquisitions, and expanding internationally[25](index=25&type=chunk) [Investor Relations & Communications](index=3&type=section&id=4.2.%20Investor%20Relations%20%26%20Communications) The company will host a webinar to discuss its Q2 financial performance and has provided contact details for investor inquiries - Zomedica will host its 'Fourth Friday at Four Webinar' on **Friday, August 22, 2025, at 4:00 PM ET**, to review and discuss its second-quarter financial performance[23](index=23&type=chunk) - Investor Relations contact: investors@zomedica.com, 1-734-369-2555[33](index=33&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=4.3.%20Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section disclaims that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially - Forward-looking information is frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate' and other similar words, or statements that certain events or conditions 'may' or 'will' occur[27](index=27&type=chunk) - Forward-looking information is based on the opinions and estimates of management at the date the statements are made, including assumptions with respect to economic growth, demand for products, and the company's ability to produce and sell its products[28](index=28&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking information, as actual events or results could differ materially due to various risks and uncertainties[29](index=29&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) [Non-GAAP Measures Definitions and Reconciliations](index=4&type=section&id=4.4.%20Non-GAAP%20Measures%20Definitions%20and%20Reconciliations) This section defines Non-GAAP EBITDA and Adjusted Non-GAAP EBITDA and provides detailed reconciliations to their closest U.S. GAAP equivalents - Non-GAAP EBITDA and Adjusted Non-GAAP EBITDA are not recognized terms under U.S. GAAP and are used by management to evaluate operating performance and assist investors in evaluating Zomedica's on-going operations[34](index=34&type=chunk) - **Non-GAAP EBITDA** is defined as net loss and comprehensive loss excluding amortization, depreciation, non-cash stock compensation, and taxes while reversing out the benefits derived from net interest income[35](index=35&type=chunk) - **Adjusted Non-GAAP EBITDA** is defined as Non-GAAP EBITDA, excluding impairment charges and non-recurring items such as specialized accounting, tax, and audit services, new facility integration/start-up costs, and other one-time items[35](index=35&type=chunk) Reconciliation of Non-GAAP Financial Measures (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net loss and comprehensive loss | $(7,353) | $(23,980) | | Amortization expense | 1,412 | 1,626 | | Depreciation expense | 509 | 351 | | Stock-compensation expense | 260 | 858 | | Interest income | (629) | (1,038) | | Income tax benefit | 12 | (143) | | **Non-GAAP EBITDA loss** | **$(5,789)** | **$(22,326)** | | Impairment expense | - | 16,024 | | Proforma adjustments (1) | 279 | 1,083 | | **Adjusted Non-GAAP EBITDA loss** | **$(5,510)** | **$(5,219)** | (1) Proforma adjustments for the three months ended June 30, 2025 included $263 of one-time general and administrative expenses and $16 of one-time selling and marketing expenses. Reconciliation of Non-GAAP Financial Measures (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Net loss and comprehensive loss | $(71,118) | $(33,203) | | Amortization expense | 3,105 | 3,223 | | Depreciation expense | 1,030 | 685 | | Stock-compensation expense | 878 | 1,959 | | Interest income | (1,359) | (2,131) | | Income tax benefit | (45) | (309) | | **Non-GAAP EBITDA loss** | **$(67,509)** | **$(29,776)** | | Impairment expense | 55,833 | 16,024 | | (1) Proforma adjustments | 422 | 3,276 | | **Adjusted Non-GAAP EBITDA loss** | **$(11,254)** | **$(10,476)** | (1) Proforma adjustments for the six months ended June 30, 2025 included $417 of one-time general and administrative expenses and $5 of one-time selling and marketing expenses.

Filing Information [Registrant Information](index=1&type=section&id=Registrant%20Information) This section provides key identification details for Zomedica Corp.'s Form 10-Q filing, including its address, telephone number, and status as a non-accelerated filer and smaller reporting company - **Registrant**: Zomedica Corp[1](index=1&type=chunk) - **Filing Type**: Quarterly Report (Form 10-Q) for the period ended June 30, 2025[1](index=1&type=chunk) Filer Status and Company Classification | Filer Status | Status | | :------------- | :----- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☐ | - **Common Shares Outstanding**: 979,949,668 as of August 6, 2025[3](index=3&type=chunk) PART I — FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Zomedica Corp.'s unaudited condensed consolidated financial statements for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations and comprehensive loss, statements of shareholders' equity, and statements of cash flows, along with accompanying notes detailing significant accounting policies, estimates, and financial instrument disclosures [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) Presents Zomedica's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in Thousands) | Metric (in Thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $136,472 | $207,360 | | Total Liabilities | $11,115 | $11,696 | | Total Shareholders' Equity | $125,357 | $195,664 | | Goodwill | $— | $45,556 | | Intangible assets, net | $41,395 | $52,538 | - **Total assets decreased by $70,888 thousand (34.2%)** from December 31, 2024, to June 30, 2025, primarily due to the full impairment of goodwill and a reduction in available-for-sale securities[7](index=7&type=chunk) - **Total shareholders' equity decreased by $70,307 thousand (35.9%)** over the six-month period, largely driven by the accumulated deficit increasing from **$(217,915) thousand to $(289,122) thousand**[7](index=7&type=chunk) [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Summarizes Zomedica's financial performance, including revenue, expenses, and net loss, for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations (in Thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net revenue | $6,964 | $6,131 | $13,464 | $12,393 | | Cost of revenue | $2,298 | $1,769 | $4,391 | $3,914 | | Gross profit | $4,666 | $4,362 | $9,073 | $8,479 | | General and administrative | $6,162 | $7,976 | $12,424 | $16,601 | | Research and development | $1,886 | $1,506 | $3,739 | $3,277 | | Selling and marketing | $4,653 | $3,923 | $9,660 | $8,030 | | Impairment expense | $— | $16,024 | $55,833 | $16,024 | | Loss from operations | $(8,035) | $(25,067) | $(72,583) | $(35,453) | | Net loss | $(7,398) | $(23,931) | $(71,207) | $(33,091) | | Loss per share - basic and diluted | $(0.01) | $(0.02) | $(0.07) | $(0.03) | - **Net revenue increased by 14%** for the three months and **9%** for the six months ended June 30, 2025, driven by growth in TRUFORMA® products, Assisi® products, PulseVet® consumables, and new VETIGEL® sales[8](index=8&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - **Net loss significantly decreased by 69%** for the three months ended June 30, 2025, but **increased by 115%** for the six months ended June 30, 2025, primarily due to a substantial impairment expense of **$55,833 thousand** recognized in the first quarter of 2025[8](index=8&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Details changes in Zomedica's shareholders' equity, including common stock, additional paid-in capital, accumulated deficit, and comprehensive income, for the periods ended June 30, 2025 and 2024 Shareholders' Equity Changes (in Thousands) | Metric | Balance at Dec 31, 2024 | Stock-based compensation | Net loss | Other comprehensive income | Balance at June 30, 2025 | | :-------------------- | :---------------------- | :----------------------- | :------- | :------------------------- | :----------------------- | | Common Stock Amount | $380,973 | — | — | — | $380,973 | | Additional Paid-In Capital | $32,518 | $811 | — | — | $33,329 | | Accumulated Deficit | $(217,915) | — | $(71,207) | — | $(289,122) | | Accumulated Comprehensive Income | $88 | — | — | $89 | $177 | | Total Shareholders' Equity | $195,664 | $811 | $(71,207) | $89 | $125,357 | - **Total shareholders' equity decreased by $70,307 thousand** from December 31, 2024, to June 30, 2025, primarily due to a **net loss of $71,207 thousand**[10](index=10&type=chunk) - **Stock-based compensation added $811 thousand** to additional paid-in capital for the six months ended June 30, 2025[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Outlines Zomedica's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Cash Flows (in Thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | | Operating Activities | $(12,090) | $(14,309) | | Investing Activities | $13,085 | $9,397 | | Financing Activities | $— | $— | | Net Increase (Decrease) in Cash | $995 | $(4,912) | | Cash and Cash Equivalents, End of Period | $8,129 | $7,939 | - **Net cash used in operating activities decreased by $2,219 thousand (16%)** for the six months ended June 30, 2025, primarily due to lower operating expenses, excluding non-cash charges[12](index=12&type=chunk)[166](index=166&type=chunk) - **Net cash provided by investing activities increased by $3,688 thousand (39%)** due to decreased capital expenditures and reduced investment in nonconsolidated entities compared to the prior period[12](index=12&type=chunk)[167](index=167&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on Zomedica's accounting policies, financial instrument valuations, segment performance, and significant events, offering context to the condensed consolidated financial statements [1. Nature of Operations](index=8&type=section&id=1.%20Nature%20of%20Operations) Describes Zomedica Corp.'s core business as a veterinary health company focused on companion animal products - Zomedica Corp. is a veterinary health company focused on creating products for companion animals by addressing unmet needs of clinical veterinarians[13](index=13&type=chunk) [2. Basis of Preparation](index=8&type=section&id=2.%20Basis%20of%20Preparation) Outlines the accounting principles and rules followed in preparing the condensed consolidated financial statements - The condensed consolidated financial statements are prepared in conformity with U.S. GAAP and SEC rules for interim reports, including all normal recurring adjustments[15](index=15&type=chunk) [3. Significant Accounting Policies](index=8&type=section&id=3.%20Significant%20Accounting%20Policies) Details the key accounting principles and methods applied by Zomedica, including functional currency, segment reporting, and revenue recognition - The Company's functional currency for Canada, U.S., and Switzerland subsidiaries is U.S. dollars, while its Japanese subsidiary uses Japanese Yen, with translation gains/losses recorded in other comprehensive income/loss[18](index=18&type=chunk) - The Company adopted ASU No. 2023-07, Segment Reporting, in Q4 2024, which did not materially impact financial statements[23](index=23&type=chunk) - Revenue from product sales (instruments, consumables) is recognized at a point in time upon transfer of control, while extended warranties and lease components are recognized over time[38](index=38&type=chunk)[39](index=39&type=chunk) [4. Critical Accounting Judgments and Key Sources of Estimation Uncertainty](index=18&type=section&id=4.%20Critical%20Accounting%20Judgments%20and%20Key%20Sources%20of%20Estimation%20Uncertainty) Highlights areas requiring significant management judgment and estimation, such as impairment testing, asset valuation, and revenue recognition - Critical accounting areas include impairment testing of goodwill and long-lived assets, valuation and payback of property and equipment (TRUFORMA® capital), and revenue recognition for variable consideration (PulseVet® trode returns)[58](index=58&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - Goodwill impairment testing involves qualitative and quantitative analyses, using discounted cash flow and market-based methods with significant assumptions about financial projections, growth rates, and discount rates[58](index=58&type=chunk)[59](index=59&type=chunk) - The valuation of TRUFORMA® diagnostic instruments relies on estimated future revenue over a ten-year life, with a **25% reduction in estimated annual placements increasing the payback period from 4.39 years to 5.85 years** as of June 30, 2025[63](index=63&type=chunk)[145](index=145&type=chunk) [5. Investment Securities](index=20&type=section&id=5.%20Investment%20Securities) Provides details on Zomedica's investment securities, including fair value and changes over the reporting period Investment Securities Fair Value (in Thousands) | Type of Security | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :--------------- | :------------------------- | :----------------------------- | | Commercial paper | $1,988 | $10,387 | | Corporate notes / bonds | $35,558 | $45,826 | | U.S. treasuries | $9,262 | $6,649 | | U.S. govt. agencies | $4,131 | $1,470 | | Money market funds | $5,322 | $2,766 | | **Total** | **$56,261** | **$67,098** | - **Total investment securities decreased by $10,837 thousand** from December 31, 2024, to June 30, 2025[65](index=65&type=chunk) - The decline in fair value of debt securities is largely attributed to the rising interest rate environment, but no credit or non-credit impairment charges were recorded as debtors continue timely payments[75](index=75&type=chunk) [6. Fair Value Measurements](index=22&type=section&id=6.%20Fair%20Value%20Measurements) Explains the methodologies and hierarchy used to measure the fair value of Zomedica's financial instruments Fair Value Hierarchy of Investments (in Thousands) as of June 30, 2025 | Type of Security | Level 1 | Level 2 | Level 3 | Estimated Fair Value | | :--------------- | :------ | :------ | :------ | :------------------- | | Commercial paper | $— | $1,988 | $— | $1,988 | | Corporate notes / bonds | $— | $35,558 | $— | $35,558 | | U.S. treasuries | $9,262 | $— | $— | $9,262 | | U.S. govt. agencies | $4,131 | $— | $— | $4,131 | | Money market funds | $5,322 | $— | $— | $5,322 | | **Total** | **$18,715** | **$37,546** | **$—** | **$56,261** | - The Company measures cash and cash equivalents, investments, and Stock Appreciation Rights (SARs) liability at fair value on a recurring basis, classifying them within a three-tier hierarchy[69](index=69&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - SARs liability is classified as **Level 2** and measured using a Black-Scholes option-pricing model, with changes in fair value recognized as compensation expense[73](index=73&type=chunk) [7. Inventory](index=24&type=section&id=7.%20Inventory) Details the composition and changes in Zomedica's inventory, including raw materials, finished goods, and reserves Inventory Breakdown (in Thousands) | Inventory Type | June 30, 2025 | December 31, 2024 | | :------------- | :------------ | :---------------- | | Raw materials | $4,448 | $4,301 | | Finished goods | $757 | $539 | | Purchased inventory | $484 | $244 | | Less: reserves | $(17) | $(26) | | **Inventory, net** | **$5,672** | **$5,058** | - **Total net inventory increased by $614 thousand (12.1%)** from December 31, 2024, to June 30, 2025, primarily driven by increases in finished goods and purchased inventory[76](index=76&type=chunk) [8. Prepaid Expenses and Deposits](index=24&type=section&id=8.%20Prepaid%20Expenses%20and%20Deposits) Presents the breakdown and changes in Zomedica's prepaid expenses and deposits over the reporting period Prepaid Expenses and Deposits (in Thousands) | Category | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Deposits | $236 | $508 | | Prepaid marketing | $453 | $368 | | Prepaid insurance | $262 | $438 | | Other | $1,161 | $1,170 | | **Total** | **$2,112** | **$2,484** | - **Total prepaid expenses and deposits decreased by $372 thousand (15%)** from December 31, 2024, to June 30, 2025, mainly due to a reduction in deposits and prepaid insurance[77](index=77&type=chunk) [9. Accrued Expenses and Other Current Liabilities](index=24&type=section&id=9.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) Details the composition and changes in Zomedica's accrued expenses and other current liabilities Accrued Expenses and Other Current Liabilities (in Thousands) | Category | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Accrued employee compensation and benefits | $3,344 | $4,557 | | Accrued taxes | $854 | $1,003 | | Accrued professional services | $484 | $535 | | Other | $246 | $336 | | **Total** | **$4,928** | **$6,431** | - **Total accrued expenses and other current liabilities decreased by $1,503 thousand (23.4%)** from December 31, 2024, to June 30, 2025, primarily due to lower accrued employee compensation and benefits[78](index=78&type=chunk) [10. Property and Equipment](index=24&type=section&id=10.%20Property%20and%20Equipment) Provides a breakdown of Zomedica's property and equipment, net of accumulated depreciation, and details any impairment charges Property and Equipment, Net (in Thousands) | Category | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Total property and equipment | $25,942 | $28,005 | | Less: accumulated depreciation | $(4,087) | $(3,416) | | **Property and equipment, net** | **$21,855** | **$24,589** | - **Net property and equipment decreased by $2,734 thousand (11.1%)** from December 31, 2024, to June 30, 2025[79](index=79&type=chunk) - A **$2.0 million impairment charge** was recognized in Q1 2025 for certain Diagnostics segment assets, including **$0.9 million** for machinery and equipment and **$1.1 million** for construction in progress, following a significant decline in market capitalization[79](index=79&type=chunk)[80](index=80&type=chunk) [11. Goodwill and Intangible Assets](index=26&type=section&id=11.%20Goodwill%20and%20Intangible%20Assets) Details Zomedica's goodwill and intangible assets, including impairment charges and amortization, for the reporting periods Goodwill Carrying Amount (in Thousands) | Segment | December 31, 2024 | Impairment | June 30, 2025 | | :-------- | :---------------- | :--------- | :------------ | | Diagnostics | $— | $— | $— | | Therapeutic Devices | $45,556 | $(45,556) | $— | | **Total** | **$45,556** | **$(45,556)** | **$—** | - A **$45.6 million non-cash goodwill impairment charge** was recognized in Q1 2025, fully impairing goodwill in the PulseVet and Assisi reporting units within the Therapeutic Devices segment, resulting in no remaining goodwill[81](index=81&type=chunk) - An **$8.3 million non-cash impairment charge** was also recognized for amortizable intangible assets in the Diagnostics segment, primarily technology assets (**$7.1 million**) and customer relationships (**$0.8 million**), due to the same triggering event[82](index=82&type=chunk) Intangible Assets, Net (in Thousands) | Category | June 30, 2025 | December 31, 2024 | | :------- | :------------ | :---------------- | | Total intangibles | $61,088 | $69,126 | | Less: accumulated amortization | $(19,693) | $(16,588) | | **Intangibles, net** | **$41,395** | **$52,538** | [12. Stock-Based Compensation](index=27&type=section&id=12.%20Stock-Based%20Compensation) Outlines Zomedica's stock-based compensation expense, including details on stock options and Stock Appreciation Rights (SARs) Stock-Based Compensation Expense (in Thousands) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Expense | $266 | $859 | $811 | $1,960 | - The Company issued **16,050,000 stock options** in the six months ended June 30, 2025, compared to **3,925,000** in the same period of 2024, with options vesting over four years and expiring in 10 years[88](index=88&type=chunk) - Cash-settled Stock Appreciation Rights (SARs) are accounted for as liability-classified awards, with a **carrying amount of $186 thousand** as of June 30, 2025, and changes in fair value recognized as compensation expense[90](index=90&type=chunk)[94](index=94&type=chunk) [13. Income Taxes](index=30&type=section&id=13.%20Income%20Taxes) Discusses Zomedica's income tax position, including deferred tax liabilities and valuation allowances against net operating loss carryforwards - The Company has an overall domestic net deferred tax liability position and maintains a **valuation allowance of $24,633 thousand** against US federal and state net operating loss carryforwards due to uncertainty of realization[95](index=95&type=chunk) - A full valuation allowance remains necessary to offset Canadian deferred tax assets due to historical losses[95](index=95&type=chunk) [14. Commitments and Contingencies](index=30&type=section&id=14.%20Commitments%20and%20Contingencies) Details Zomedica's contractual commitments, including agreements with Brisby Inc. and Cresilon, Inc., and confirms the absence of material litigation - The Company is not aware of any pending or threatened material litigation claims as of June 30, 2025[96](index=96&type=chunk) - Under an agreement with Brisby Inc., Zomedica has made **$1,563 thousand in cash payments** and holds a **19.50% equity stake**, with remaining payments due upon future development milestones and commercial sales of Smart Pet Pad and Intelligent Pet Bed[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - A License and Supply Agreement with Cresilon, Inc. grants Zomedica exclusive rights to promote and sell VETIGEL® Products in the U.S. and Japan, involving an upfront license fee, sales milestone payments up to **$4,000 thousand**, and royalties[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [15. Segment Information](index=32&type=section&id=15.%20Segment%20Information) Provides financial data for Zomedica's two reportable segments: Diagnostics and Therapeutic Devices, including net revenue and gross profit - Zomedica operates in two reportable segments: Diagnostics (TRUFORMA®, VetGuardian®, TRUVIEW®) and Therapeutic Devices (Assisi®, PulseVet®, VETIGEL®)[104](index=104&type=chunk) Segment Net Revenue (in Thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Diagnostics | $781 | $419 | $1,340 | $1,163 | | Therapeutic Devices | $6,183 | $5,712 | $12,124 | $11,230 | | **Consolidated** | **$6,964** | **$6,131** | **$13,464** | **$12,393** | Segment Gross Profit (in Thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Diagnostics | $192 | $(43) | $194 | $118 | | Therapeutic Devices | $4,474 | $4,405 | $8,879 | $8,361 | | **Consolidated** | **$4,666** | **$4,362** | **$9,073** | **$8,479** | [16. Loss Per Share](index=34&type=section&id=16.%20Loss%20Per%20Share) Presents Zomedica's basic and diluted loss per share calculations for the reporting periods Loss Per Share (Basic and Diluted) | Period | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(7,398) | $(23,931) | $(71,207) | $(33,091) | | Weighted-average shares | 979,949,668 | 979,949,668 | 979,949,668 | 979,949,668 | | **Loss per share** | **$(0.01)** | **$(0.02)** | **$(0.07)** | **$(0.03)** | - Stock options and warrants were excluded from diluted loss per share computation as their effect would be anti-dilutive[108](index=108&type=chunk) [17. Subsequent Events](index=35&type=section&id=17.%20Subsequent%20Events) Reports significant events occurring after the balance sheet date, including recent tax reform legislation - On July 4, 2025, the U.S. enacted tax reform legislation (One Big Beautiful Bill Act) which is anticipated to have an immaterial impact in the period of enactment, with the Company continuing to evaluate its full effect[109](index=109&type=chunk)[175](index=175&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Zomedica's financial condition and operational results for the quarter ended June 30, 2025, discussing revenue drivers, expense trends, and liquidity, alongside forward-looking statements and critical accounting policies [Cautionary Note Regarding Forward-Looking Statements](index=36&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) Warns readers about the inherent risks and uncertainties associated with forward-looking statements in the report - The report contains forward-looking statements subject to numerous risks and uncertainties, including macroeconomic conditions, geopolitical tensions, supply chain disruptions, and the ability to commercialize products and integrate acquisitions[111](index=111&type=chunk)[112](index=112&type=chunk) - Zomedica cautions that actual results may differ significantly from expectations and undertakes no duty to update these statements except as required by law[112](index=112&type=chunk)[113](index=113&type=chunk) [Components of Revenue and Costs and Expenses](index=36&type=section&id=Components%20of%20Revenue%20and%20Costs%20and%20Expenses) Explains the various sources of Zomedica's revenue and the primary components of its cost of revenue and operating expenses - Revenue sources include consumables and capital sales from Assisi®, PulseVet®, TRUFORMA®, TRUVIEW®, VetGuardian®, and VETIGEL® products in the U.S. and internationally[114](index=114&type=chunk) - Cost of revenue primarily consists of raw materials, labor, shipping, and overhead for product assembly, including purchased VETIGEL® consumables[115](index=115&type=chunk) - Operating expenses are categorized into general and administrative (salaries, public company costs), research and development (new assay development, product enhancements), and selling and marketing (personnel, promotional activities)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) [Critical Accounting Policies and Significant Judgments and Estimates](index=40&type=section&id=Critical%20Accounting%20Policies%20and%20Significant%20Judgments%20and%20Estimates) Identifies Zomedica's critical accounting policies and areas requiring significant management judgment and estimation, particularly regarding asset impairment - Critical accounting policies include Intangible Assets and Business Combinations, Impairment Testing, Valuation and Payback of Property and Equipment, and Revenue Recognition and Liabilities Due to Customers[132](index=132&type=chunk) - In Q1 2025, a triggering event (significant decline in market capitalization post-NYSE American delisting) led to a quantitative goodwill impairment analysis, resulting in a **$45,555 thousand non-cash charge** for PulseVet and Assisi reporting units[138](index=138&type=chunk) - The same triggering event also led to **$8,297 thousand in non-cash impairment charges** for amortizable intangible assets and **$1.981 million** for property and equipment in Q1 2025[139](index=139&type=chunk)[140](index=140&type=chunk) [Results of Consolidated Operations](index=44&type=section&id=Results%20of%20Consolidated%20Operations) Analyzes Zomedica's consolidated financial performance, including revenue, gross profit, operating expenses, and net loss trends for the reporting periods Consolidated Revenue and Gross Profit Trends (in Thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :---------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | Net Revenue | $6,964 | $6,131 | 14% | $13,464 | $12,393 | 9% | | Cost of Revenue | $2,298 | $1,769 | 30% | $4,391 | $3,914 | 12% | | Gross Profit | $4,666 | $4,362 | 7% | $9,073 | $8,479 | 7% | | Gross Profit Margin | 67% | 71% | -4 pp | 67% | 68% | -1 pp | - The decrease in gross profit margin for both periods was primarily due to higher depreciation expenses from capital projects completed in H2 2024 and changes in product mix, partially offset by manufacturing efficiencies and increased unit sales[155](index=155&type=chunk) Operating Expenses and Net Loss Trends (in Thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (%) | | :-------------------------- | :--------------------------- | :--------------------------- | :--------- | :--------------------------- | :--------------------------- | :--------- | | General and Administrative | $6,162 | $7,976 | -23% | $12,424 | $16,601 | -25% | | Research and Development | $1,886 | $1,506 | 25% | $3,739 | $3,277 | 14% | | Selling and Marketing | $4,653 | $3,923 | 19% | $9,660 | $8,030 | 20% | | Impairment Expense | $— | $16,024 | -100% | $55,833 | $16,024 | 248% | | Net Loss | $(7,398) | $(23,931) | -69% | $(71,207) | $(33,091) | 115% | [Cash Flows](index=47&type=section&id=Cash%20Flows) Examines Zomedica's cash flow activities, highlighting changes in operating and investing cash flows for the six months ended June 30, 2025 and 2024 Cash Flow Summary (in Thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :----------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Operating Activities | $(12,090) | $(14,309) | $2,219 | -16% | | Investing Activities | $13,085 | $9,397 | $3,688 | 39% | | Net Increase (Decrease) in Cash | $995 | $(4,912) | $5,907 | 120% | | Cash and Cash Equivalents, End of Period | $8,129 | $7,939 | $190 | 2% | - The decrease in cash used in operating activities was primarily due to lower operating expenses, excluding non-cash charges like stock-based compensation and impairment expense[166](index=166&type=chunk) - The increase in cash provided by investing activities resulted from decreased capital expenditures (e.g., warehouse expansion) and reduced investment in nonconsolidated entities[167](index=167&type=chunk) [Liquidity, Capital Resources, and Financial Condition](index=47&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Financial%20Condition) Assesses Zomedica's financial health, including working capital, accumulated deficit, and management's outlook on funding future operations - As of June 30, 2025, the Company had an **accumulated deficit of $289,122 thousand** and **working capital of $60,476 thousand**[168](index=168&type=chunk)[169](index=169&type=chunk) - Management believes existing cash is sufficient to fund both short-term (next 12 months) and long-term (beyond 12 months) operational requirements, including fixed obligations, clinical studies, and potential business development[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - Future capital requirements depend on factors such as development and commercialization costs, manufacturing, marketing, personnel, public company expenses, and potential M&A activities[173](index=173&type=chunk)[176](index=176&type=chunk) [Climate Change](index=51&type=section&id=Climate%20Change) Discusses the potential impacts of climate change, including regulatory changes and operational risks, on Zomedica's business - Increased public awareness of climate change may lead to more regulations, increased energy efficiency demands, and a shift to more expensive sustainable energy sources[177](index=177&type=chunk) - The potential impacts of climate change on operations, including changes in rainfall, water shortages, storm patterns, and temperature levels, remain uncertain and could increase operating costs or affect insurance availability[178](index=178&type=chunk)[179](index=179&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of Zomedica's disclosure controls and procedures as of June 30, 2025, and reports no material changes in internal control over financial reporting during the quarter - Management, including the principal executive officer and principal financial and accounting officer, concluded that disclosure controls and procedures were effective as of June 30, 2025[180](index=180&type=chunk)[181](index=181&type=chunk) - There were no changes in internal control over financial reporting during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect internal control over financial reporting[182](index=182&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) Zomedica Corp. is not aware of any pending or threatened material litigation claims as of June 30, 2025, or August 6, 2025 - The Company is not aware of any pending or threatened material litigation claims against it as of June 30, 2025, and continuing as of August 6, 2025[96](index=96&type=chunk)[183](index=183&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors from those previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[183](index=183&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of, or incorporated by reference into, the Quarterly Report, including certifications, XBRL documents, and a separation agreement - Exhibits include a Separation Agreement (10.1), CEO and VP of Finance certifications (31.1, 31.2, 32.1), and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[186](index=186&type=chunk) [Signatures](index=53&type=section&id=SIGNATURES) This section contains the official signatures of Zomedica Corp.'s Chief Executive Officer and Vice President of Finance and Corporate Controller, certifying the filing of the report - The report is signed by Larry Heaton, Chief Executive Officer, and Michael Zuehlke, Vice President of Finance and Corporate Controller, on August 6, 2025[189](index=189&type=chunk)[190](index=190&type=chunk)