Summary of Zomedica's Investor Webinar Company Overview - **Company**: Zomedica - **Industry**: Animal Health - **Focus**: Advancing animal health through technology and digital innovation, enhancing veterinary practices, and improving clinical outcomes for pets and their owners [2][3] Core Points and Arguments 1. **Technological Advancements** - The animal health industry is experiencing significant changes due to advancements in diagnostics, connectivity, and artificial intelligence (AI) [3] - Zomedica is investing in connected devices, cloud platforms, and AI to enhance veterinary care [3][6] 2. **Five Pillars of Zomedica's Mission** - **Quality of Care**: Improve pet care quality [5] - **Pet Parent Satisfaction**: Enhance confidence and comfort for pet owners [5] - **Veterinarian Workflow**: Streamline daily operations for veterinarians [5] - **Veterinarian Cash Flow**: Ensure financial accessibility of offerings [5] - **Profitability**: Increase profitability for veterinary clinics [5] 3. **Market Trends** - Investment in AI in animal health is projected to grow from $1.57 billion in 2024 to nearly $7 billion by 2033, with an 18% CAGR [9] - The global pet technology market is expected to rise from $7.6 billion in 2024 to over $17 billion by 2033 [9] - The veterinary telehealth market is forecasted to grow from approximately $620 million in 2024 to $3.2 billion by 2034, also an 18% CAGR [10] 4. **Digital Transformation Journey** - Zomedica has launched several platforms, including MyZomedica and TRUFORMA, to enhance customer experience and product integration [12][14] - The company has developed a mobile app to support training and maximize revenue from its products [13] 5. **AI Integration and Data Utilization** - Zomedica is leveraging AI for improved diagnostics and clinical decision support, enhancing the veterinarian-pet parent relationship [11][24] - The company is building a data foundation to support AI solutions, which will drive long-term value [24][25] 6. **PIMS Integration** - Zomedica plans to integrate its products with Patient Information Management Systems (PIMS) by the end of Q2 2026, enhancing workflow and convenience for veterinary clinics [41][43] 7. **Financial Outlook** - Zomedica anticipates reaching break-even with an annualized revenue of $55 million by 2027 [36][56] - The company expects to report its first revenue from a collaboration with Rahm Sensor in Q1 2026 [30][31] Other Important Content - Zomedica's manufacturing capacity is sufficient to meet demand without requiring additional capital expenditure [32] - The company is focused on maintaining margins while driving revenue growth and reducing operating expenses [56][57] - Zomedica is exploring partnerships with larger companies and expanding its presence in the equine market [40][62] Conclusion Zomedica is positioned to capitalize on the growing trends in the animal health industry through its innovative technology and digital strategies. The company's focus on improving veterinary practices and enhancing pet care is expected to drive long-term growth and shareholder value.

Financial Data and Key Metrics Changes - Total revenue for the first quarter was a record $6,500,000, reflecting a 4% increase year-over-year, primarily driven by the growth in the Therapeutic Devices segment [5][13] - Gross margin was 68%, slightly up from 66% in the first quarter of the previous year [14] - Net loss for the quarter was $63,800,000, compared to a net loss of $9,200,000 in the prior year, largely due to a $55,800,000 non-cash impairment expense [15][16] - Cash used in the first quarter was approximately $6,800,000, with the company ending the quarter with $64,600,000 in cash and equivalents [16][17] Business Line Data and Key Metrics Changes - Revenue from the Therapeutic Devices segment was $5,900,000, while the Diagnostics segment generated approximately $600,000, a decrease of 25% [14] - Consumables revenue was $4,500,000, an increase of approximately 13% year-over-year, representing about 70% of total revenue [13][14] - The TruForma platform saw a 41% year-over-year growth during the quarter, driven by the demand for new assays [8] Market Data and Key Metrics Changes - International revenue grew approximately 32% year-over-year, indicating strong performance in new international markets [8] - The equine market is a focus area, with significant penetration and adoption of the PulseVet platform among equine veterinarians [6][43] Company Strategy and Development Direction - The company aims to achieve cash flow breakeven and GAAP profitability by focusing on operational efficiencies and reducing cash operating expenses [11][19] - Key growth strategies include expanding into the equine market, international market growth, and launching new assays and platforms [17][18] - The company is also exploring partnerships and acquisitions to enhance its product offerings and market reach [23][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, particularly in the equine market and international expansion [17][19] - The company is focused on reducing operating expenses and improving efficiency to support its path to profitability [12][20] - Management acknowledged the challenges posed by the current market conditions but remains committed to executing its growth strategy [19][60] Other Important Information - The company has relocated its headquarters to a smaller facility, which is expected to reduce overhead costs by over $200,000 annually [11] - A distribution agreement for the Vetigel product line was announced, with expectations for increased revenue contribution throughout 2025 [10][19] Q&A Session Summary Question: Why have management options not been repriced or new options issued? - Management believes it is inappropriate to change the strike price of options and continues to issue option grants to employees [26] Question: Why are marketing costs much higher than industry averages? - Marketing costs are high due to the nature of the company's products being new to the market, requiring significant investment in marketing and sales [27][30] Question: Are there plans to expand into retail vet stores? - Currently, the company sells one product line through online channels and has decided not to pursue retail due to high advertising costs [31] Question: Is there a strategy for getting institutional coverage? - Institutional coverage is challenging due to the stock price being below a dollar, and the company is focusing on operational improvements instead [35] Question: What is the status of TrueView? - The TrueView system is nearing completion, with a full launch expected soon, and it will operate on a subscription and per-use basis [45] Question: How profitable has the new Vetagel product been? - The Vetagel product has favorable margins, and the company is focused on leveraging existing client bases for new consumable product lines [41][42] Question: Why is the company focusing on the equine market? - The equine market represents a significant opportunity due to high penetration rates and the unique needs of equine veterinarians [43] Question: What are the plans for the small animal market? - The company is deploying a sales organization to penetrate the small animal market, leveraging its experience in the equine sector [76]

Financial Data and Key Metrics Changes - The company reported a record revenue of $7,900,000 for the fourth quarter, reflecting an 8% growth year over year [12][29] - Full year revenue for 2024 reached $27,300,000, marking another record year for the company [12][33] - Gross margin for the fourth quarter was 70.3%, exceeding the target range of 65% to 70% for the third consecutive quarter [30] - The net loss for the fourth quarter was $7,200,000, or $0.01 per share, compared to a net loss of $22,400,000, or $0.02 per share in the prior year [32] Business Line Data and Key Metrics Changes - The Therapeutic Devices segment generated revenues of $7,100,000, while the Diagnostics segment saw revenues of approximately $800,000, reflecting a 109% year-over-year increase [30] - The Diagnostics segment's growth was driven by the adoption of new products, particularly the Truforma assays, which contributed significantly to revenue [30][34] Market Data and Key Metrics Changes - Approximately 80% of revenue came from the U.S. market, with 20% from international markets [62] - The company experienced aggressive growth outside North America, particularly in new international markets [60] Company Strategy and Development Direction - The company is focused on international expansion, regulatory approvals, and growing its distribution network outside the U.S. [14][15] - A significant distribution agreement was signed with Crestlon for the Betagel hemostatic gel product line, expanding the company's portfolio into new care areas [22][24] - The company aims to leverage its established position in the equine market to drive adoption of new products and solutions [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational performance despite share price pressures and recent delisting from the NYSE American Exchange [6][10] - The company is committed to achieving cash flow breakeven and GAAP profitability while maintaining a strong liquidity position with over $71,000,000 in cash [43] Other Important Information - The company has made significant investments in infrastructure to improve efficiency and reduce costs, including the expansion of manufacturing facilities and the installation of automated production lines [25][26] - The management team has undergone changes, with Scott Jordan joining as the new CFO, bringing extensive experience in financial leadership [27][35] Q&A Session Summary Question: What are the product introduction goals for 2025? - The company expects to launch another five to six assays in 2025, including a mix of canine, feline, and equine assays [45] Question: Can you comment on the sales force restructuring? - The overall headcount is flat year over year, but the commercial organization has seen an increase in sales personnel to support new product launches [48][49] Question: Do you have financial guidance for 2025? - The company is developing sales growth projections for 2025 and will provide guidance later in the year [55] Question: What is the revenue growth breakdown between domestic and international markets? - The company experienced similar growth rates domestically and internationally, with about 80% of revenue from the U.S. [60][62] Question: What is the growth rate for PulseVet products? - The PulseVet products grew year over year by 4%, with capital sales affected by macroeconomic conditions [73]