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]

PART I — FINANCIAL INFORMATION This section presents Zomedica Corp.'s unaudited condensed consolidated financial statements and management's analysis for Q1 2024 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) This section presents Zomedica Corp.'s unaudited condensed consolidated financial statements for Q1 2024, covering financial position, performance, equity, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20March%2031%2C%202024%20and%20December%2031%2C%202023) Zomedica Corp.'s consolidated balance sheet shows a decrease in total assets and shareholders' equity as of March 31, 2024, compared to December 31, 2023, primarily driven by reductions in cash, available-for-sale securities, and an increased accumulated deficit | Metric | March 31, 2024 (in Thousands) | December 31, 2023 (in Thousands) | Change (in Thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Cash and cash equivalents | $10,939 | $12,952 | $(2,013) | -15.5% | | Available-for-sale securities | $72,023 | $77,545 | $(5,522) | -7.1% | | Total current assets | $92,069 | $99,882 | $(7,813) | -7.8% | | Total assets | $243,701 | $253,197 | $(9,496) | -3.7% | | Total current liabilities | $8,008 | $9,032 | $(1,024) | -11.3% | | Total liabilities | $11,806 | $13,180 | $(1,374) | -10.4% | | Accumulated deficit | $(180,093) | $(170,933) | $(9,160) | 5.4% | | Total shareholders' equity | $231,895 | $240,017 | $(8,122) | -3.4% | [Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) For the three months ended March 31, 2024, Zomedica Corp. reported increased net revenue but also a significantly higher net loss and comprehensive loss compared to the same period in 2023, driven by increased operating expenses, particularly in R&D and G&A | Metric | Q1 2024 (in Thousands) | Q1 2023 (in Thousands) | Change (in Thousands) | % Change | | :---------------------- | :--------------------- | :--------------------- | :-------------------- | :------- | | Net revenue | $6,262 | $5,482 | $780 | 14.2% | | Cost of revenue | $2,145 | $1,647 | $498 | 30.2% | | Gross profit | $4,117 | $3,835 | $282 | 7.4% | | Gross profit margin | 65.7% | 70.0% | -4.3% pts | -6.1% | | General and administrative | $8,625 | $7,013 | $1,612 | 23.0% | | Research and development | $1,771 | $918 | $853 | 92.9% | | Selling and marketing | $4,107 | $3,416 | $691 | 20.2% | | Loss from operations | $(10,386) | $(7,512) | $(2,874) | 38.3% | | Net loss | $(9,160) | $(6,385) | $(2,775) | 43.5% | | Net loss and comprehensive loss | $(9,223) | $(6,099) | $(3,124) | 51.2% | | Loss per share - basic and diluted | $(0.009) | $(0.007) | $(0.002) | 28.6% | [Consolidated Statements of Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Shareholders' equity decreased from $240,017 thousand at December 31, 2023, to $231,895 thousand at March 31, 2024, primarily due to the net loss incurred during the period, partially offset by stock-based compensation Consolidated Statements of Shareholders' Equity (in Thousands) | Metric (in Thousands) | December 31, 2023 | March 31, 2024 | Change | | :-------------------- | :---------------- | :------------- | :----- | | Common Stock Amount | $380,973 | $380,973 | $0 | | Additional Paid-In Capital | $29,929 | $31,030 | $1,101 | | Accumulated Deficit | $(170,933) | $(180,093) | $(9,160)| | Accumulated Comprehensive (Loss) | $48 | $(15) | $(63) | | Total Shareholders' Equity | $240,017 | $231,895 | $(8,122)| [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) Zomedica Corp. experienced an increased net cash outflow from operating activities in Q1 2024 compared to Q1 2023, but a significant shift to net cash inflow from investing activities, leading to a smaller overall decrease in cash and cash equivalents Consolidated Statements of Cash Flows (in Thousands) | Metric | Q1 2024 (in Thousands) | Q1 2023 (in Thousands) | Change (in Thousands) | % Change | | :-------------------------------------- | :--------------------- | :--------------------- | :-------------------- | :------- | | Net cash used in operating activities | $(7,590) | $(4,257) | $(3,333) | 78.3% | | Net cash provided by (used in) investing activities | $5,625 | $(14,792) | $20,417 | -138.0% | | Decrease in cash and cash equivalents | $(1,965) | $(19,049) | $17,084 | -89.7% | | Cash and cash equivalents, end of period | $10,939 | $8,353 | $2,586 | 31.0% | [Notes to the Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of Zomedica's accounting policies, including revenue recognition, business combinations, and fair value measurements, along with breakdowns of investment securities, inventory, property and equipment, goodwill, and intangible assets - Zomedica is a veterinary health company focused on companion animals, operating through Diagnostics and Therapeutic Devices segments[13](index=13&type=chunk)[114](index=114&type=chunk) - The company adopted new accounting pronouncements for Segment Reporting (ASU No. 2023-07) and Improvements to Income Tax Disclosures (ASU No. 2023-09), with ongoing evaluation of their impact[24](index=24&type=chunk)[25](index=25&type=chunk) Disaggregated Revenue (Q1 2024 vs. Q1 2023) | Segment / Category | Q1 2024 (in Thousands) | Q1 2023 (in Thousands) | Change (in Thousands) | % Change | | :----------------- | :--------------------- | :--------------------- | :-------------------- | :------- | | **Diagnostics** | | | | | | Capital | $450 | $217 | $233 | 107.4% | | Consumables | $294 | $182 | $112 | 61.5% | | Total Diagnostics | $744 | $399 | $345 | 86.5% | | **Therapeutic Devices** | | | | | | Capital | $1,774 | $1,493 | $281 | 18.8% | | Consumables | $3,716 | $3,567 | $149 | 4.2% | | Other | $28 | $23 | $5 | 21.7% | | Total Therapeutic Devices | $5,518

Zomedica Corp. (NYSE:ZOM) Q4 2023 Earnings Conference Call April 1, 2024 4:30 PM ET Company Participants Elif McDonald - Investor Relations Larry Heaton - Chief Executive Officer Peter Donato - Chief Financial Officer Conference Call Participants Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Zomedica's Fourth Quarter and Full-Year 2023 Earnings Release and Business Update Call. I would like to remind everyone that this call is being recorded today, Monday, April 1 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number: 001-38298 ZOMEDICA CORP. (Exact name of registrant as specified in its charter) Alberta, Canada ...

Zomedica Corp. (NYSE:ZOM) Q3 2023 Earnings Conference Call November 13, 2023 4:30 PM ET Company Participants Elif McDonald - Investor Relations Larry Heaton - Chief Executive Officer Peter Donato - Chief Financial Officer Conference Call Participants Jason Kolbert - Dawson James Operator Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Zomedica's Third Quarter 2023 Earnings Release and Business Update Call. I would like to remind everyone that this conference call is being rec ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q For the transition period from __________ to __________. Commission File Number: 001-38298 Zomedica Corp. (Exact name of registrant as specified in its charter) Alberta, Canada N/A (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September ...

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $6 million, a 43% increase year-over-year, driven by organic growth and new product lines [7][17] - Gross profit for Q2 2023 was $4 million, a 33% increase from Q2 2022, with margins at 67% [25] - Operating loss for Q2 was $6.7 million, up from $5.9 million a year ago, but down from $7.5 million in Q1 [28] - Net loss for Q2 2023 was $5.3 million, flat compared to the same period last year [29] - Cash, cash equivalents, and available securities were over $142 million at the end of Q2 2023, down from $187 million a year ago [31] Business Line Data and Key Metrics Changes - TRUFORMA revenue increased by 98% year-over-year, driven by organic growth and new assays [20] - PulseVet products saw a 14% increase year-over-year, reflecting strong demand in the small animal veterinary market [19] - Assisi generated $1 million in incremental revenue for Q2 2023, contributing to overall growth [21] - VetGuardian product line is expected to ramp up revenue as it is introduced through various distributors [22] Market Data and Key Metrics Changes - Approximately 25% of PulseVet revenue was international at the time of acquisition, with expectations for growth in international markets [42] - The company has a wholly-owned subsidiary in Japan and distributors in Europe and South America [42] Company Strategy and Development Direction - The company is focused on achieving cash flow positivity and GAAP profitability through revenue growth and efficient manufacturing [12][15] - Strategic priorities include improving the quality of care for pets and the profitability of veterinarian customers [12] - The company is actively seeking M&A opportunities that are accretive to earnings [13][71] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong sales momentum and new product launches [33] - The company expects revenue to increase in subsequent periods due to expanded product lines and acquisitions [24] - Management reiterated guidance for cash flow breakeven in the second half of next year [46][47] Other Important Information - R&D expenses increased significantly due to the buildup of internal capabilities for product development [26] - The company is transitioning manufacturing to its facility in Georgia to improve margins [10] Q&A Session Summary Question: What does the company's debt to income ratio look like? - The company has no debt, only lease obligations, and is in a loss position [36][38] Question: Is the company considering a stock buyback? - The company is focused on growth and does not plan to initiate a stock buyback until achieving cash flow breakeven [41] Question: What percentage of market capitalization has been achieved in Europe? - The company is currently generating about 20% to 25% of its revenue internationally, with significant growth opportunities [42] Question: When will the company sell throughout the U.S. with salespeople? - The company has a direct sales force and is expanding its sales territories opportunistically [44] Question: Are there financing options available to help vets acquire the product? - The company has third-party financing options available for its products [64][65] Question: Why are the assays taking so long to come out? - The company has recently gained the ability to develop its own assays at its own pace, which will improve future timelines [66][67]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________. Commission File Number: 001-38298 Zomedica Corp. (Exact name of registrant as specified in its charter) Alberta, Canada N/A (St ...