Zomedica (US:ZOM)2022-08-15 21:27Revenue 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].