Zomedica Corp. (NYSE:ZOM) Q1 2023 Results Conference Call May 11, 2023 4:30 PM ET Company Participants Larry Heaton - CEO Peter Donato - CFO Conference Call Participants Jason Kolbert - Dawson James Operator Good afternoon, ladies and gentlemen and welcome to Zomedica’s First Quarter of 2023 Earnings Release Call. As a reminder, this call is being recorded and all participants are in a listen-only mode. The call will be open to questions and answers following the presentation. On today’s call are Zomedica’s ...

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 March 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 N/A (S ...

Zomedica Corp. (NYSE:ZOM) Q4 2022 Earnings Conference Call March 15, 2023 4:30 PM ET Company Participants Larry Heaton - Chief Executive Officer Ann Cotter - Chief Financial Officer Paul Kuntz - Investor Relations Greg Blair - Vice President, Business Development & Strategic Planning Conference Call Participants Operator Good afternoon, and welcome to Zomedica's Fiscal Year 2022 Earnings Release Call. As a reminder, this call is being recorded and all participants are in a listen-only mode. The call will be ...

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, 2022 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 ...

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 September 30, 2022. 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/ ...

ZOMEDICA® "It's All In The Waves" Larry Heaton Chief Executive Officer ZOM LISTED NYSE AMERICAN 8/18/2022 Forward Looking Statements These materials have been prepared for informational purposes only in relation to Zomedica and are not, under any circumstances, to be construed as an offering of any securities for sale directly or indirectly in any province or territory of Canada, in the United States or in the territories or possessions thereof. Prospective investors should not construe the contents of this ...

Revenue Growth - The diagnostic segment reported $92 in revenue from consumables for Q2 2022, an increase of 475% compared to $16 in Q2 2021[29]. - The therapeutics segment generated $4,154 in total revenue for Q2 2022, compared to $0 in Q2 2021, with revenue from trodes at $2,308, instruments at $1,543, and other revenues at $303[29]. - Revenue for Q2 2022 was $4,246, a 26,438% increase from $16 in Q2 2021, primarily due to the PulseVet platform contributing $4,154[120]. - Revenue for the first half of 2022 was $7,997, a 26,557% increase from $30 in the same period in 2021, with PulseVet contributing $7,849[121]. Financial Performance - Total net revenue for the Company was $7,997,000, with diagnostics contributing $148,000 and therapeutics $7,849,000[68]. - The Company reported an operating loss of $10,193,000, with diagnostics showing a loss of $12,481,000 and therapeutics generating an income of $2,288,000[68]. - The net loss attributable to common shareholders for the three months ended June 30, 2022, was $5,273,000, resulting in a loss per share of $0.005[69]. - Net loss for Q2 2022 was $5,273 million, an increase of 12% from a loss of $4,711 million in Q2 2021[133]. Assets and Liabilities - Total assets as of June 30, 2022, were $275,478,000, with $195,130,000 in diagnostics and $80,348,000 in therapeutics[68]. - As of June 30, 2022, the company reported net inventory of $4,819, compared to $2,878 as of December 31, 2021[37]. - Total lease liabilities increased to $1,707,000 as of June 30, 2022, from $1,379,000 as of December 31, 2021[49]. - The accumulated deficit as of June 30, 2022, was $128,601 million, indicating ongoing financial challenges since inception[139]. Cash Flow - Cash used in operating activities for the first half of 2022 was $6,517 million, a 49% increase from $4,376 million in the same period of 2021[136]. - Cash used in investing activities for the first half of 2022 was $1,643 million, a significant increase of 1,057% from $142 million in the same period of 2021[137]. - Cash and cash equivalents as of June 30, 2022, were $186,763 million, a decrease of 32% from $276,210 million at the end of June 30, 2021[140]. - The company believes existing cash resources will be sufficient to fund operational requirements through at least December 2024[143]. Acquisitions - Zomedica Corp. acquired PulseVet for $71,929 in cash on October 1, 2021, resulting in goodwill of $43,288[33]. - The preliminary acquisition date fair value of total assets acquired from PulseVet was $36,293, with total liabilities assumed at $7,652[36]. - The Company completed the acquisition of Revo Squared for a base purchase price of $6,000,000, with potential earn-out payments of up to $4,000,000 based on future net sales[71]. - Zomedica Inc. acquired assets from Assisi Animal Health for $18,000,000, with $1,400,000 held in escrow for indemnification obligations[72]. Research and Development - Research and development expense for Q2 2022 was $319 million, an increase of 18% from $271 million in Q2 2021[128]. - The company expects R&D costs to increase as it continues to develop additional assays[130]. - The company anticipates that costs of revenue will increase in 2022 in line with the expected revenue growth[125]. Stock and Options - The company issued 21,000,000 stock options during the six months ended June 30, 2022, with a weighted average exercise price of $0.32[51]. - The balance of stock options increased to 61,507,724 as of June 30, 2022, with a weighted average exercise price of $0.43[52]. - The company recorded stock-based compensation of $2,492 thousand and $4,533 thousand for the three and six months ended June 30, 2022, respectively, compared to $1,782 thousand and $3,065 thousand for the same periods in 2021, representing an increase of approximately 39.9% and 47.8% year-over-year[56]. Market Conditions - The volatility of the company's stock has been consistently high, ranging from 112% to 118% across various dates in 2021 and 2022, indicating significant market fluctuations[55][56]. - The risk-free interest rate used in the Black-Scholes option pricing model has varied from 0.92% to 3.55% during the periods analyzed, reflecting changes in market conditions[55][56]. Future Outlook - The company expects revenue to increase in future periods as sales and marketing efforts for the PulseVet platform expand and additional assays are added to the TRUFORMA® platform[122]. - The company is focusing on the commercialization of its TRUFORMA® and PulseVet® platforms to enhance patient care and practice health[82][89]. - The TRUFORMA® platform aims to provide point-of-care diagnostic products for disease states in dogs and cats, addressing unmet needs in veterinary diagnostics[83][85]. - The PulseVet® platform is recognized as a leader in electro-hydraulic shockwave technology for treating musculoskeletal issues in animals[86].

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 March 31, 2022. 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 (S ...

Product Development and Innovation - Zomedica's TRUFORMA® platform focuses on point-of-care diagnostic products for disease states in dogs and cats, aiming to improve patient care and practice health[18]. - Zomedica's TRUFORMA® TSH assay shows a high correlation (R=0.99) with the Siemens IMMULITE Canine TSH assay, enabling quantification of low TSH levels[36]. - The combined dynamic range of the canine TRUFORMA® tT4 assay is 0.45-30.0 µg/dL, with a high correlation (R=0.94) to the Siemens IMMULITE tT4 assay[37]. - The feasibility phase for the canine TRUFORMA® fT4 assay has been completed, with design efforts currently underway[40]. - Zomedica plans to develop additional assays for various disease states affecting canine, feline, and equine patients in the future[42]. - The TRUFORMA platform strategy includes offering instruments at no cost to veterinarians in exchange for a commitment to use the assays, aiming to build an installed base and drive future revenue[62]. Market Overview - The veterinary diagnostics market is projected to grow from approximately $4.8 billion in 2020 to approximately $12.6 billion by 2026, representing a CAGR of approximately 11.7%[26]. - The American Pet Product Association estimated that the veterinary care and product sales accounted for $31.4 billion in 2020, reflecting a 7.2% year-over-year increase[25]. - The COVID-19 pandemic has positively influenced pet ownership, with approximately two-thirds of U.S. households owning pets and a reported 4% increase in dog and cat ownership during the pandemic[29]. Financial Performance - For the year ended December 31, 2021, the net loss was approximately $20.9 million, compared to a net loss of $16.9 million for the year ended December 31, 2020[83]. - As of December 31, 2021, the accumulated deficit was approximately $121.9 million, with total shareholders' equity of approximately $268.4 million[83]. - The company has generated consolidated net operating loss carryforwards (U.S. NOLs) of approximately $28.7 million as of December 31, 2021[94]. - The Canadian operations have generated net operating loss carryforwards of approximately $37.2 million, which may be limited by the inability to generate future taxable income[97]. Research and Development - The company has committed approximately $1.7 million in research and development expenses for the year ended December 31, 2021, and $8.0 million for the year ended December 31, 2020[60]. - The company expects to continue incurring significant research and development costs and administrative expenses as it integrates the PulseVet acquisition[83]. - The company is conducting multiple clinical studies, including a 12-month study on the efficacy of shock wave therapy for treating osteoarthritis in small animals, expected to complete in 2024[50]. Competition and Market Challenges - The company faces competition from larger veterinary diagnostics companies and other entities in the shock-wave market, which may have more resources and experience[74]. - The commercial potential of the company's products is uncertain, and competition may hinder effective market penetration[87]. - The company faces significant competition in the veterinary diagnostics market, with competitors like IDEXX Laboratories and Zoetis Inc. having greater financial and operational resources[112]. - The consolidation of veterinary clinics may exert downward pressure on product pricing, negatively impacting the company's financial condition[129]. Regulatory and Compliance Issues - The FDA does not require pre-market approval for animal medical devices, but they must comply with general provisions related to misbranding and adulteration[75]. - The company is subject to ongoing regulatory oversight, which may result in significant additional expenses and impact its ability to market products[149]. - Legislative or regulatory reforms may increase costs and lengthen review times for obtaining regulatory clearance or approval for future products[154]. - The company expects compliance expenses to increase significantly due to enhanced reporting requirements under the Sarbanes-Oxley Act[175]. Strategic Partnerships and Acquisitions - The exclusive agreement with Seraph Biosciences for pathogen detection systems has a term of seven years, with potential additional payments of up to $6 million upon achieving specified milestones[53]. - The company has exclusive global rights to develop and market Celsee's liquid biopsy platform for veterinary oncology, with a five-year agreement that automatically renews for additional two-year terms[59]. - The company is actively seeking complementary opportunities in the animal health sector to expand its product offerings[85]. - The company expects to incur significant transaction and integration costs related to the acquisition of PulseVet, which could materially impact its results of operations[137]. - Successful integration of PulseVet is critical for realizing anticipated benefits, and failure to do so could disrupt operations and delay expected growth[138]. Operational Risks - The company relies on third-party suppliers for components and manufacturing, which poses risks such as supply chain disruptions and increased costs[109]. - The company is dependent on contract manufacturing organizations (CMOs) and contract research organizations (CROs) for development activities, which may impact commercialization timelines if they do not meet obligations[118]. - Any failure of CMOs and CROs to perform adequately could adversely affect the company's business and lead to delays in product commercialization[121]. - The company may face challenges in managing growth effectively, which could strain resources and adversely affect financial performance[132]. Shareholder and Market Considerations - The market price of the company's common shares is expected to remain volatile, influenced by various external factors[167]. - The company may issue additional equity securities without shareholder approval, potentially diluting existing shareholders' interests[170]. - The company has never paid dividends on its common shares and intends to reinvest future earnings to fund growth, meaning returns depend solely on market price appreciation[182]. - The company may encounter delays in implementing internal control improvements required for compliance with the Sarbanes-Oxley Act, potentially affecting investor confidence and share price[178].

Financial Position - As of September 30, 2021, total deposits amounted to $1,256,094, a decrease from $1,469,043 as of December 31, 2020[35] - Total intangible assets reached $800,301 as of September 30, 2021, compared to $552,798 as of December 31, 2020[38] - The right-of-use asset was recorded at $1,419,790 as of September 30, 2021, compared to $1,318,716 as of December 31, 2020[49] - As of September 30, 2021, the total assets of the company were approximately $277.5 million, compared to $66.1 million as of December 31, 2020[94] - The accumulated deficit as of September 30, 2021, was approximately $116.1 million, with cash and cash equivalents of approximately $271.4 million[115] - Current assets amounted to approximately $274.8 million and current liabilities were approximately $4.9 million, resulting in working capital of approximately $269.9 million[151] Revenue and Expenses - Revenue for the three and nine months ended September 30, 2021 was $22,514 and $52,331, respectively, from TRUFORMA products and associated warranties[137] - Cost of revenue for the three and nine months ended September 30, 2021 was $17,899 and $59,433, respectively, with expectations of increase as additional products are sold[140] - Research and development expense for the three and nine months ended September 30, 2021 was approximately $0.3 million and $1.0 million, representing a decrease of approximately 89% and 86% compared to the same periods in 2020[141] - Selling, general and administrative expense for the three months ended September 30, 2021 was approximately $6.1 million, an increase of approximately 166% compared to the same period in 2020[143] - The company reported a net loss of approximately $6.3 million for the three months ended September 30, 2021, compared to a net loss of $5.0 million for the same period in 2020[96] - Net loss for the three months ended September 30, 2021 was approximately $6.3 million, or $0.01 per share, an increase in losses of approximately 27% compared to the same period in 2020[144] Financing Activities - The Company raised $2,500,000 in gross proceeds from a registered direct offering of 20,833,334 common shares at $0.12 per share[60] - The Company raised $4,000,000 in gross proceeds from a confidentially marketed public offering of 33,333,334 common shares at $0.12 per share[63] - The Company raised $19,998,783 in gross proceeds from a public offering of 121,163,333 common shares at $0.15 per share[64] - The Company raised $29,997,500 in gross proceeds from a public offering of 162,500,000 common shares at $0.16 per share[67] - Cash flow provided by financing activities for the nine months ended September 30, 2021 was $219,135,443, an increase of 242% compared to $64,071,437 in 2020[146] - Net cash from financing activities for the nine months ended September 30, 2021 was approximately $219.1 million, an increase of approximately $155.1 million, or 242%, compared to the same period in 2020[149] Stock Options and Warrants - The Company issued stock options to purchase 12,100,000 common shares during the nine months ended September 30, 2021[70] - The balance of stock options at September 30, 2021 was 38,982,724 with a weighted average exercise price of $0.40[74] - As of September 30, 2021, the company had a total of 38,982,724 stock options outstanding, with 9,152,474 options vested and 29,830,250 options unvested[75] - Cumulative warrant exercises as of the nine months ended September 30, 2021, totaled 359,972,750 warrants, generating $56,450,669 in proceeds[85] - The company issued 20,833,334 Series A warrants at an exercise price of $0.20 and 1,041,667 warrants at $0.15 in connection with a registered direct offering on February 14, 2020[80] - As of September 30, 2021, the company had 1,068,918 outstanding warrants with an average remaining life of 0.66 to 3.52 years[85] Acquisitions and Developments - The company acquired Pulse Veterinary Technologies, LLC for approximately $71.9 million in cash on October 1, 2021, which will be included in consolidated financial statements starting Q4 2021[111] - The company is developing a new point-of-care diagnostic platform using miniaturized laser-based Raman spectroscopy technology for pathogen detection in companion animals[112] - The company is also developing a circulating tumor cell "liquid biopsy" product aimed at detecting canine cancers more affordably and less invasively[114] - The TRUFORMA diagnostic biosensor platform is focused on detecting adrenal and thyroid disorders in companion animals, with ongoing development of additional assays[106] - The company plans to market TRUFORMA in select international markets in 2022[110] Cash Flow and Future Outlook - Cash flows used in operating activities for the nine months ended September 30, 2021 was $(9,373,804), a decrease of 31% compared to $(13,556,283) in 2020[146] - Cash and cash equivalents at the end of the period were $271,411,043, an increase of 422% compared to $52,032,640 in 2020[146] - The company expects to continue incurring losses as it commercializes the TRUFORMA platform and expands product development and sales activities[116] - The company believes existing cash resources will be sufficient to fund expected working capital needs at least through December 2025[157] - For each Canadian dollar balance of $1.0 million, a +/- 10% movement in the Canadian currency would affect the company's loss by $0.1 million[156] Legal and Compliance - The company entered into a settlement agreement on September 20, 2021, resolving litigation without any payment or business conduct restrictions[88] - The company follows ASC topic 820 for fair value measurements, categorizing inputs into three levels based on transparency[89] - The carrying values of cash, trade and other receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature[91] - The company has not met any future development milestones related to a Development, Commercialization, and Exclusive Distribution Agreement as of September 30, 2021, and no accrual is necessary[86]