Zomedica (US:ZOM)2021-11-12 21:06Financial 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]