Revenue Growth - Zomedica reported record revenue of $7.9 million for Q4 2024, an 8% organic growth compared to Q4 2023, with a 109% increase in the Diagnostics segment driven by the TRUFORMA® product line[4][10] - For the full year 2024, revenue grew over 8% to $27.3 million, up from $25.2 million in 2023, supported by 4% growth in Therapeutics and 77% growth in Diagnostics[7][10] Financial Performance - Gross margin for Q4 2024 was 70.3%, and for the full year 2024, it was 70.0%, aligning with the company's expectations[5][11] - The net loss for Q4 2024 was $7.2 million, significantly reduced from a net loss of $22.4 million in Q4 2023[5] - Net loss for the year ended December 31, 2024, was $46,942,000, compared to a net loss of $33,638,000 in 2023, representing a 39.5% increase in losses year-over-year[35] - Adjusted non-GAAP EBITDA loss for 2024 was $20.2 million, compared to a loss of $27.7 million in 2023, indicating improved operational efficiency[16][17] - Non-GAAP EBITDA loss for 2024 was $40,701,000, up from $27,691,000 in 2023, indicating a 46.9% increase in EBITDA losses[35] - Adjusted Non-GAAP EBITA loss for 2024 was $20,216,000, compared to $12,767,000 in 2023, reflecting a 58.5% increase in adjusted losses[35] Expenses - Operating expenses for 2024 were $70.1 million, an increase of 16% from $60.6 million in 2023, primarily due to the full-year impact of Qorvo Biotechnologies[12] - Research and development expenses for 2024 were $7.3 million, up from $5.8 million in 2023, reflecting ongoing advancements in product development[13] - Amortization expense increased to $6,441,000 in 2024 from $5,468,000 in 2023, a rise of 17.7%[35] - Impairment expense for 2024 was $16,024,000, significantly higher than $11,683,000 in 2023, marking a 37.5% increase[35] - Stock-compensation expense decreased to $2,778,000 in 2024 from $6,263,000 in 2023, a reduction of 55.7%[35] - Interest income for 2024 was $3,966,000, down from $5,458,000 in 2023, a decline of 27.3%[35] - Proforma adjustments for 2024 totaled $4,461,000, compared to $3,241,000 in 2023, an increase of 38.0%[35] - Depreciation expense rose to $1,545,000 in 2024 from $830,000 in 2023, an increase of 86.5%[35] - Income tax benefit improved to $557,000 in 2024 from $1,331,000 in 2023, a decrease of 58.2%[35] Cash Position - Total cash used during Q4 2024 was approximately $6.5 million, with an adjusted non-GAAP operating cash burn of about $4.2 million[6] - As of December 31, 2024, Zomedica had cash, cash equivalents, and available-for-sale securities totaling $71.4 million[9][18] Future Plans - The company plans to focus on the equine market with new product launches and a distribution agreement for Vetigel® hemostatic gel to drive revenue growth in 2025[3]

Zomedica (ZOM) Q4 2024 Earnings Call March 13, 2025 04:30 PM ET Company Participants Mike Vallie - Managing DirectorLarry Heaton - President & CEOMike Zuehlke - Vice President of Finance & Corporate ControllerScott Jordan - Executive VP of Finance & CFOAndrew Rem - Portfolio Manager Conference Call Participants Robert Leboyer - Senior Biotechnology AnalystRobert Sassoon - Senior Research Analyst Operator Good afternoon, ladies and gentlemen, and welcome to the Zomedica Fourth Quarter twenty twenty four Fina ...

Financial Performance - For the fiscal year ended December 31, 2024, the Company reported revenue of $27,285 million, an increase of $2,099 million or 8% compared to $25,186 million in 2023 [251]. - The gross profit margin for the year ended December 31, 2024 was 70%, up from 69% in 2023, primarily due to cost reductions from restructuring actions and increased unit sales [256]. - Net loss for the year ended December 31, 2024 was $46,982 million, an increase of $12,453 million or 36% compared to a net loss of $34,529 million in 2023 [265]. - Cash used in operating activities for the year ended December 31, 2024 was $23,630 million, an increase of $7,655 million or 48% from $15,975 million in 2023 [268]. - Cash provided by investing activities increased significantly to $17,854 million for the year ended December 31, 2024, compared to $1,577 million in 2023, a change of $16,277 million or 1032% [269]. - The Company had an accumulated deficit of $217,915 million as of December 31, 2024, and working capital of $72,442 million [271]. Impairment and Tax - The company reported total impairment charges of $16,024, primarily related to goodwill associated with certain reporting units due to changes in future sales growth projections and operating expenses allocation [236]. - The Company recorded a goodwill impairment charge of $16,024 million for the six months ended June 30, 2024, driven by changes in future sales growth projections [237]. - The company has recorded a full valuation allowance against its Canadian deferred tax assets due to uncertainty in realizing tax benefits [217]. - As of December 31, 2024, the company had net operating loss carryforwards of $16,044 for U.S. federal and state income tax purposes, and non-capital loss carryforwards of $6,419 for Canada, which will begin to expire in fiscal year 2039 [215]. Product Portfolio and Development - The product portfolio includes six platforms: TRUFORMA, TRUVIEW, VETGuardian, PulseVet, Assisi Loop, and VETIGEL, focusing on diagnostics and therapeutic medical devices [202][205]. - The TRUFORMA platform provides point-of-care diagnostic products for dogs, cats, and horses, enabling quicker disease diagnosis and treatment [206]. - The VETGuardian platform offers continuous wireless monitoring of pets' vital signs, assisting veterinarians in rapid diagnosis [206]. - The PulseVet platform delivers non-invasive electro-hydraulic shock wave treatment for various conditions, promoting healing and reducing the need for surgery [206]. - The company is focused on leveraging its acquisition of Qorvo for new assay development within the TRUFORMA platform and exploring new market opportunities [213]. - Research and development expenses increased by $1,524 million or 27% to $7,268 million for the year ended December 31, 2024, driven by the development of next-generation diagnostic products [260]. Operating Expenses - Selling and marketing expenses rose by $3,055 million or 22% to $17,192 million for the year ended December 31, 2024, primarily due to increased hiring campaigns [262]. Climate Change Impact - The company anticipates that climate change may increase operating costs due to potential physical risks and supply chain impacts [283]. - The company is unable to predict the future impact of climate change due to significant economic variability associated with changing conditions [283]. Public Company Costs - The company faces costs associated with being a public company and expenses related to business development or mergers and acquisitions [279]. Stock Information - As of March 13, 2025, there are 979,949,668 common shares issued and outstanding [279]. - There are stock options outstanding under the Stock Option Plan to acquire an aggregate of 89,051,943 common shares [279]. - Common share purchase warrants issued in February 2020 allow holders to acquire 197,917 common shares at an exercise price of $0.1500 per share [279]. - Common share purchase warrants issued in July 2022 allow holders to acquire 363,501 common shares at an exercise price of $0.1500 per share [279]. - Additional common share purchase warrants issued in July 2022 allow holders to acquire 10,000,000 common shares at an exercise price of $0.2201 per share [279]. - Further common share purchase warrants issued in July 2022 allow holders to acquire 22,000,000 common shares at an exercise price of $0.2520 per share [279]. Recent Accounting Pronouncements - Recent accounting pronouncements are not expected to have a material impact on the company's consolidated financial statements upon adoption [278].

Revenue Performance - Revenue for Q3 2024 increased by slightly more than 10% to $7.0 million compared to Q3 2023, with Diagnostics segment revenue growing by 38%[4] - Capital revenues reached $2.2 million, up 21% from Q3 2023, indicating strong performance in the therapeutic device segment[5] - The company anticipates significant incremental revenue growth in 2025 and beyond due to its international expansion efforts[3] Financial Metrics - Gross margin for Q3 2024 was 72.3%, exceeding the company's expectations of 65% to 70%[8] - Total cash used during Q3 2024 was approximately $5.2 million, with non-GAAP operating cash burn adjusted to approximately $4.0 million[6] - As of September 30, 2024, Zomedica had cash and cash equivalents of $77.8 million, down from $83.0 million as of June 30, 2024[11] - Net loss for Q3 2024 was $6.7 million, compared to a net loss of $0.5 million in Q3 2023, which included a one-time gain of $2.2 million[10] Research and Development - Research and development expenses increased to $1.8 million in Q3 2024, driven by advancements in new assay development[9] Market Expansion - The company signed several international distribution agreements and received CE Mark approval for the TRUVIEW® system, enhancing its global market presence[3] - Zomedica's total addressable market in the U.S. exceeds $2 billion, indicating substantial growth potential[14]

Revenue and Profitability - Revenue for the quarter ended September 30, 2024, included consumables and capital sales associated with Assisi®, PulseVet®, TRUFORMA®, TRUVIEW™, and VetGuardian® products[132] - Revenue for the three months ended September 30, 2024, was $6,997 million, an increase of $650 million or 10% compared to the same period in 2023[169] - Revenue for the nine months ended September 30, 2024, was $19,390 million, an increase of $1,541 million or 9% compared to the same period in 2023[169] - Gross profit margin for the three months ended September 30, 2024, was 72%, compared to 69% for the same period in 2023[173] Expenses - Research and development expense for the three months ended September 30, 2024, was $1,845 million, an increase of $978 million or 113% compared to the same period in 2023[178] - Selling and marketing expense for the three months ended September 30, 2024, was $3,890 million, an increase of $562 million or 17% compared to the same period in 2023[179] - General and administrative expenses included significant public company costs such as stock exchange fees and compliance costs[134] Net Loss and Cash Flow - Net loss for the three months ended September 30, 2024, was $6,697 million, an increase of $6,206 million or 1264% compared to the same period in 2023[182] - Cash used in operating activities for the nine months ended September 30, 2024, was $19,105 million, an increase of $8,145 million or 74% compared to the same period in 2023[184] - Cash provided by investing activities for the nine months ended September 30, 2024, was $15,938 million, an increase of $10,532 million or 195% compared to the same period in 2023[185] Goodwill and Valuation - A goodwill impairment charge of $16,024 was recorded for the three and nine months ended September 30, 2024, due to fair values of certain reporting units being below their carrying amounts[157] - The fair value of the PulseVet reporting unit exceeded its carrying amount, including goodwill, by 56%, while Revo Squared, SMP, and Assisi reporting units were below their carrying amounts by 64%, 80%, and 3%, respectively[156] - The control premium implied from the market capitalization reconciliation analysis was 59.3%, consistent with historical premiums in the Medical, Dental, and Hospital Equipment and Supplies industry[160] Tax and Regulatory Considerations - The company is evaluating the potential impacts of the Inflation Reduction Act, which includes a new 15% Corporate Alternative Minimum Tax for corporations with average book income over $1 billion[140] - The company recorded a full valuation allowance against Canadian deferred tax assets due to uncertainty in realizing tax benefits[142] - The company continues to monitor regulatory developments related to the Inflation Reduction Act to assess their potential impact on tax rates and financial results[141] - Deferred tax assets for U.S. federal income tax purposes amount to $15,214, with non-capital loss carryforwards for Canada at $9,581, expiring in fiscal year 2035[192] Cash Position and Future Needs - As of September 30, 2024, the company had an accumulated deficit of $210,721 and working capital of $79,206[187] - The company believes existing cash is sufficient to cover short-term cash requirements, including fixed obligations and ongoing clinical studies[188] - Long-term cash requirements have not changed materially since the 2023 Form 10-K, with ongoing evaluations potentially affecting cash needs[191] Stock-Based Compensation - Stock-based compensation is calculated using the Black-Scholes Option Pricing Model and is expensed over the vesting period of the options[145] - The company adopted a Stock Appreciation Rights Plan allowing for the grant of SARs up to 10% of issued common stock[196] Research and Development - Research and development expenses focused on leveraging the acquisition of Qorvo for new assay development and exploring new market opportunities[135] Currency and Subsidiaries - The functional currency for the company's subsidiaries in the U.S., Switzerland, and Canada is the U.S. dollar, while the Japanese subsidiary uses the Japanese Yen[143]

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $6.1 million, reflecting a 2% increase year-over-year, primarily driven by a 68% growth in the Diagnostics segment [4][21] - Capital revenues decreased by 12% to $1.7 million, down from $2 million in Q2 2023, attributed to fewer new system sales [21] - Consumable revenue increased by approximately 8% to $4.4 million, now representing 72% of total revenue [21][22] - Gross profit for Q2 2024 was $4.4 million, with a gross profit margin of 71%, slightly above the target range of 65% to 70% [22][23] - Net loss for Q2 2024 was $23.9 million, compared to a net loss of $5.2 million in Q2 2023 [25][26] Business Line Data and Key Metrics Changes - The Therapeutic Devices segment, including PulseVet and Assisi, generated revenues of $5.7 million, roughly flat compared to the prior year [22] - The Diagnostics segment saw revenues of approximately $420,000, marking a 68% increase year-over-year, driven by growth from VetGuardian and TRUFORMA [22] Market Data and Key Metrics Changes - International initiatives are expected to significantly contribute to revenue in the second half of the year, with a strategic alliance with Leader Healthcare Group for distribution in the Middle East, Egypt, and India [7][8] - The company anticipates sales from new distributors in Costa Rica and the Middle East to begin in the current quarter [48] Company Strategy and Development Direction - The company is focused on achieving cash flow and GAAP profitability, with plans to expand its product portfolio and international reach [20][31] - Zomedica aims to leverage alternative pricing and placement models to enhance access for veterinarians, particularly in light of current economic conditions [5][34] - The company is committed to reducing operating expenses while increasing revenue through innovative product offerings [52][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing significant progress in commercial and operational milestones despite short-term headwinds [20][31] - The management noted that macroeconomic factors, such as interest rates, may be causing customers to delay purchases [5][34] - The company expects a rebound in sales as the sales force returns to full strength and as macroeconomic conditions stabilize [5][33] Other Important Information - The CFO announced his resignation, and the company is in the process of identifying a replacement [27][28] - The company suspended its previously issued revenue guidance for 2024, with expectations for total revenue to grow compared to the prior year [28] Q&A Session Summary Question: Can you talk about the sales force headwinds in the quarter in a little bit more detail? - Management explained that the sales force faced challenges due to personnel changes and medical leaves, which affected sales productivity [32][33] Question: What are the plans to mitigate future sales force disruptions? - The company has taken steps to ensure additional sales personnel can fill in during medical leaves and has a plan to maintain sales productivity [44] Question: Can you provide insight into the $16 million charge-off? - The CFO clarified that the charge-off primarily relates to goodwill associated with previous acquisitions, with minimal amounts remaining on the balance sheet [40] Question: What is the expected cash burn moving forward? - The CFO indicated that cash burn is expected to be at the high end of the previously stated range of $12 million to $18 million, influenced by revenue performance [41][42] Question: How much of the original revenue guidance was related to international sales? - Management noted that approximately 15% of the revenue was expected to come from international sales, with potential for growth in that area [43] Question: What is the timeline for meaningful sales from recent CE approvals? - Management expects to see initial sales from Costa Rica and the Middle East in the current quarter, with a more significant uptick anticipated in September [47][48]

Revenue Growth - Zomedica reported record revenue of $7.3 million for Q4 2023, a 19% increase compared to Q4 2022, and full-year revenue of $25.2 million, reflecting a 33% annual growth[1][3][4]. - The Diagnostics segment experienced a remarkable 144% growth year-over-year in Q4 2023, while the Therapeutic Devices segment grew by 16%[3][4]. - Consumable revenue for Q4 2023 reached $4.0 million, up 26% from Q4 2022, and capital revenue was $3.3 million, a 12% increase over the same period[3]. - Zomedica expects full-year 2024 revenue to be in the range of $31 to $35 million, representing approximately 40% growth at the high end compared to 2023[8]. Financial Performance - The net loss for 2023 was $34.5 million, or $0.035 per share, compared to a net loss of $17.0 million, or $0.017 per share, in 2022[12]. - Non-GAAP Adjusted EBITDA for the period was $(22.326) million, compared to $(3.200) million in the previous year, indicating a significant increase in losses[24]. - The net loss for the company was $(23.931) million, compared to $(5.249) million in the same period last year, reflecting a worsening financial performance[24]. - The company reported a loss from operations of $(25.067) million, compared to $(5.742) million in the prior year, indicating challenges in operational efficiency[24]. - The company experienced a foreign exchange loss of $(46) thousand, which may affect overall financial performance[24]. Expenses - Research and development expenses increased by 123% to $5.7 million in 2023, driven by the expansion of internal capabilities for new diagnostic products[10]. - Selling and marketing expenses rose by 43% to $14.1 million in 2023, reflecting increased hiring and marketing efforts[11]. - General and administrative expenses were reported at $6.893 million, slightly up from $6.850 million, indicating stable operational costs[24]. - Research and development expenses increased to $1.506 million from $0.859 million year-over-year, showing a focus on innovation and product development[24]. - Selling and marketing expenses rose to $3.923 million from $3.081 million, reflecting increased investment in market expansion[24]. Gross Margin and Profitability - Gross margin for both Q4 2023 and the full year 2023 was 69%[3][5]. - The gross profit for the period was $4.367 million, compared to $1.078 million in the previous year, demonstrating improved revenue generation[24]. Acquisitions and Cash Position - The company made multiple acquisitions in 2023, including Structured Monitoring Products, Inc. and Qorvo Biotechnologies, LLC, enhancing its product portfolio and manufacturing capabilities[2][6][7]. - Zomedica's cash, cash equivalents, and available-for-sale securities totaled $100.5 million as of December 31, 2023[5]. Non-GAAP Measures - Management emphasizes the importance of non-GAAP measures for evaluating ongoing operations and financial trends[22]. - Non-GAAP EBITDA, which excludes certain expenses, was $(22.326) million, highlighting the impact of non-recurring costs on financial results[23].

Financial Performance - Revenue for the three months ended June 30, 2024, was $6,131, an increase of $111, or 2%, compared to $6,020 for the same period in 2023; revenue for the six months ended June 30, 2024, was $12,393, an increase of $891, or 8%[141]. - Gross profit margin for the three months ended June 30, 2024, was 71%, up from 67% in the same period of 2023; however, the gross profit margin for the six months ended June 30, 2024, decreased to 68% from 69%[144]. - Net loss for the three months ended June 30, 2024, was $23,931, an increase of $18,682, or 356%, compared to a net loss of $5,249 for the same period in 2023; for the six months, the net loss was $33,091, an increase of $21,457, or 184%[150]. - Cash used in operating activities for the six months ended June 30, 2024, was $14,309, an increase of $6,376, or 80%, compared to $7,933 for the same period in 2023[152]. Goodwill and Impairment - The company reported a goodwill impairment charge of $16,024 for the three and six months ended June 30, 2024, due to slowed future sales growth projections and increased operating expenses[132]. - The carrying values of goodwill for the PulseVet and Assisi reporting units at June 30, 2024, were $43.4 million and $2.2 million, respectively[134]. - The company evaluates goodwill for impairment annually or when triggering events occur, using qualitative and quantitative analyses to assess fair value[128]. - As of June 30, 2024, the implied control premium for the company's reporting units was 52.0%, consistent with historical premiums in the Medical, Dental, and Hospital Equipment and Supplies industry[135]. Operating Expenses - The company’s operating expenses consist of general and administrative, research and development, and selling and marketing expenses, with significant costs related to public company compliance[113]. - Research and development expenses for the three months ended June 30, 2024, increased by $647, or 75%, totaling $1,506, while for the six months, it increased by $1,500, or 84%, totaling $3,277[147]. - Selling and marketing expenses for the three months ended June 30, 2024, were $3,923, an increase of $842, or 27%, compared to $3,081 for the same period in 2023; for the six months, expenses increased by $1,533, or 24%, totaling $8,030[148]. Tax and Deferred Tax Assets - The company has recorded a full valuation allowance against its Canadian deferred tax assets due to uncertainty in realizing tax benefits as of June 30, 2024[119]. - As of June 30, 2024, the company had deferred tax assets for net operating loss carryforwards of $14,069 million for U.S. federal income tax purposes and $9,581 million for Canada, with expirations beginning in fiscal year 2035[157]. - The company has evaluated the realizability of its deferred tax assets, resulting in a derecognition of $3,814 million, reducing the carryforward to $10,225 million[157]. Internal Controls and Compliance - The company has remediated a material weakness in internal control over financial reporting as of June 30, 2024, which was related to the timeliness and precision of management's review controls around financial projections[165][168]. - The company’s internal control over financial reporting was assessed as effective as of June 30, 2024, following remediation efforts[166]. - The company’s management is responsible for establishing effective internal control over financial reporting to ensure reliability in financial statements[165]. - The company’s disclosure controls and procedures were initially deemed ineffective but have been improved following remediation of identified weaknesses[165]. Strategic Focus and Market Conditions - The company is focused on leveraging its recent acquisition of Qorvo into new assay development for the TRUFORMA® platform, expanding capabilities within existing products, and exploring new market opportunities[114]. - The company continues to monitor the potential impacts of the Inflation Reduction Act, which includes a new 1% excise tax on stock repurchases and a 15% Corporate Alternative Minimum Tax for corporations with average book income over $1 billion[117][118]. - The company acknowledges the uncertain impact of climate change on operations and customer needs, which may lead to increased operating costs and risks[158][159]. - There were no material changes in risk factors from those previously disclosed in the annual report for the year ended December 31, 2023[171]. Customer Contracts and Liabilities - As of June 30, 2024, the estimated value of the Therapeutic Device customer contract liability was $553; a 2% increase in the expected return rate would have reduced sales and customer liability by approximately $61[140]. - The carrying value of the company's Diagnostic instruments was $10,330 as of June 30, 2024; a 25% reduction in estimated revenues would increase the payback period from 2.93 years to 3.81 years[137]. Stock-Based Compensation - Stock-based compensation expense is calculated using the fair value method and is recognized based on the expected vesting of stock-based payment awards[122]. - The company adopted the 2024 Stock Appreciation Rights Plan, allowing for the grant of stock appreciation rights up to 10% of the issued and outstanding shares of common stock[160]. Fair Value Assessment - As of June 30, 2024, the fair value of the PulseVet reporting unit exceeded its carrying amount, including goodwill, by 56%, while the Revo Squared, SMP, and Assisi reporting units had fair values below their carrying amounts by 64%, 80%, and 3%, respectively[132].

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $6.3 million, reflecting over 14% growth compared to Q1 2023, marking the strongest first quarter in company history [7][45] - Gross profit for Q1 2024 was $4.1 million, with a gross profit margin of 66%, aligning with previous guidance of 65% to 70% [51] - Net loss for Q1 2024 was $9.2 million, compared to a net loss of $6.4 million in Q1 2023 [57] Business Line Data and Key Metrics Changes - Capital revenues for Q1 2024 were $2.2 million, up 30% from $1.7 million in Q1 2023, driven by increased device placements in small animal and mixed vet practices [46] - Consumables revenue grew to $4 million, a 7% increase from $3.8 million in Q1 2023, representing 64% of total revenue [48] - Diagnostic segment revenues were approximately $744,000, an 87% increase year-over-year, driven by growth from VetGuardian and TRUFORMA [50] Market Data and Key Metrics Changes - Approximately 14% of revenue is generated from international markets, with plans to expand international commercialization efforts for VetGuardian and TRUFORMA [12] - The company has over 2,000 PulseVet systems in active use across all 50 states in the U.S. and 30 countries globally [14] Company Strategy and Development Direction - The company aims to build an annual run rate of $50 million in revenue by the end of 2025, increasing to over $100 million two years later [38] - Zomedica is focused on expanding its product portfolio through business development and M&A activities, leveraging its strong balance sheet [39] - The company is investing in R&D, with a doubled expenditure of $1.8 million in Q1 2024 compared to $900,000 in Q1 2023 [54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on significant market opportunities throughout 2024 and beyond, following a record-setting 2023 [45] - The company expects to achieve cash flow breakeven or profitability when reaching an annual revenue run rate of approximately $50 million, anticipated in late 2025 [60] Other Important Information - The company ended Q1 2024 with $90.9 million in cash and cash equivalents, with a cash burn expected to be between $12 million to $18 million for the year [58][61] - Zomedica has a robust intellectual property portfolio with 201 issued patents and 61 pending patents, which protects its innovative solutions [42][43] Q&A Session Summary Question: How many of your products are approved for overseas sales? - Currently, three products are approved for overseas sales, with potential for more by the end of the quarter [69] Question: Do you expect to show profitability in the near future, especially with your EU approval? - Profitability is expected on a cash flow basis when annual revenue reaches about $50 million, anticipated in late 2025 [70] Question: Will there be a stock buyback? - The company does not plan to initiate a stock buyback, prioritizing cash preservation for operational needs and potential acquisitions [71] Question: Where are most of your customers located? - The company sells products in all 50 states, with a concentration in areas with significant equine activity [73] Question: What is the current cash position and expected low point? - The company ended the quarter with $90.9 million in cash, with a projected low watermark of $65 million to $75 million [76][77]

Revenue Performance - Revenue for Q1 2024 increased by 14% to $6.3 million compared to Q1 2023, driven by 9% growth in Therapeutic Devices and 86% growth in Diagnostics[3] - Net revenue for the three months ended March 31, 2024, was $6,262 million, an increase of 14.2% compared to $5,482 million for the same period in 2023[34] - The company expects full-year 2024 revenue to be between $31 million and $35 million, reflecting a potential increase of approximately 39% at the high end compared to 2023[18] - Zomedica anticipates sequential revenue growth throughout 2024, with the majority expected in the latter half of the year[20] Gross Margin and Profitability - Gross margin for Q1 2024 was 66%, with an adjusted gross margin exceeding 69% when accounting for the QBT acquisition[8] - Gross profit for the same period was $4,117 million, adjusted to $4,383 million after one-time items, compared to $3,835 million in the prior year, reflecting a 14.3% increase[34] - The adjusted non-GAAP EBITDA was reported at a loss of $7,450 million, compared to a loss of $4,125 million in the previous year, indicating increased operational challenges[36] Operating Expenses - Operating expenses rose by 28% to $14.5 million in Q1 2024, with a comparative growth of just over 20% when adjusted for one-time charges[9] - Research and development expenses doubled to $1.8 million, primarily due to the integration of QBT and investments in product compliance and AI enhancements[10] - Research and development expenses were $1,771 million, adjusted to $1,449 million, up from $918 million year-over-year, indicating a significant investment in innovation[34] - Selling and marketing expenses remained stable at $4,107 million, compared to $3,416 million in the previous year, reflecting ongoing marketing efforts[34] Net Loss - Net loss for Q1 2024 was $9.2 million, or $0.01 per share, compared to a net loss of $6.4 million, or $0.007 per share, in Q1 2023[14] - The company reported a net loss of $9,160 million for the quarter, adjusted to a loss of $6,967 million in the same quarter last year[34] - Loss from operations was $10,386 million, adjusted to $8,193 million, compared to a loss of $7,512 million in the prior year[34] Cash Position - As of March 31, 2024, Zomedica had $90.9 million in cash and equivalents, down from $100.5 million at the end of 2023[16] Strategic Focus - The company is focused on expanding its product portfolio and increasing adoption of its technologies, with new product launches planned for 2024[19] - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[34] Foreign Exchange and Interest Income - Interest income decreased to $1,093 million from $1,412 million year-over-year, indicating a decline in interest earnings[34] - The company experienced a foreign exchange loss of $129 million, compared to a loss of $26 million in the same quarter last year, highlighting currency volatility impacts[34]