Zomedica (US:ZOM)2024-05-09 20:05PART 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 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 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 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 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 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 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 segments13114 - 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 impact2425 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