Zomedica Corp

Before we begin, I want to remind current and potential investors that we will be making various remarks about future expectations, plans, and prospects that are considered forward-looking statements. There are risks that actual results may differ from these statements. We refer you to the safe harbor statement at the end of this presentation. or to the forward-looking and risk factors sections of our public filings, which can be found on our website under Investor Filings, EDGAR, and SIDAR+. The statements are made as of today, November 21st, 2025, and reflect our expectations as of today. Thank you for joining us for Zomedica's Investor Webinar Series. We're excited to have you with us as we take a closer look at our company, our innovative product platforms, and the passionate people driving our success. This series is designed to give you a deeper understanding of how we're delivering value to veterinarians and to our shareholders. Now let's hear from Larry Heaton, Zomedica's Chief Executive Officer.

Good afternoon. I'm Larry Heaton, Chief Executive Officer of Zomedica. Thank you for joining today's Friday at 4 webinar. Whether you're a pet parent, a shareholder, a veterinary professional, or simply someone who cares deeply about animal health, as we do, We appreciate you being here with us. So Medica has come a long way since our founding in 2015. What started as a small ambitious idea has evolved into a growing, diverse company with strong teams, scalable infrastructure, and a clear mission to support veterinarians with technology that improves care, strengthens workflows, and helps clinics thrive. Over the past few years, we've focused on building a strong foundation, expanding our capabilities, integrating acquisitions, developing our commercial engine, and strengthening our operations. That work is paying off. Today, Zomedica is delivering consistent growth, improving financial performance, and positioning itself for long-term success. This webinar will walk you through how we got here, the strategic progress we've made, and where we're headed as we look forward to the next stage of our evolution. With the foundation now in place, we're entering a phase where execution, innovation, and efficiency all converge. We can see the path forward clearly, and we've never been better positioned to capture the opportunities ahead. Thank you for continued support of Zomedica. And with that, let's dive in.

At Zomedica, our mission is guided by what we call our five pillars. These are core objectives that shape every decision we make about products and innovation. First and foremost, we aim to improve the quality of care for the pets. Equally important is enhancing the satisfaction of the pet parent, ensuring they feel confident and comfortable with the care provided. Our solutions also focus heavily on improving the veterinarian's daily workflow, helping veterinary practices operate smoothly and efficiently. Additionally, we are committed to positively impacting veterinarian cash flow, making sure our offerings are financially accessible and beneficial. Finally, our ultimate goal is to increase veterinarian profitability, providing products and solutions that help veterinary clinics grow and thrive financially. Over the last six months, we've featured our six product platforms in our monthly webinar series. Today, we're providing the context around these platforms as we walk through where Zomedica has been. where we stand now, and where we're headed as we continue to execute our long-term vision. In addition, we'll review our third quarter financial performance and engage in a question and answer session. At Zamedica, everything starts with one simple truth. We love animals and the veterinarians who care for them. Veterinarians today face enormous pressure, consolidation, pricing challenges, shrinking profit centers, and persistent staffing shortages. They're doing more with less every single day. Our mission is to support them with innovative diagnostic and therapeutic technologies that help them do what they really love to do, improve patient care and enhance pet parent satisfaction, along with helping them do what they really need to do, strengthen practice workflow, cash flow, and profitability. We're not just building devices. We're building solutions that truly make a difference in a veterinarian's day-to-day practice. Here's the journey we'll cover today. We'll look back at our foundational years, the pivotal moments that shaped our trajectory, the building phase that brought us to where we are now, and the roadmap that leads us to cash flow, break-even, and beyond. This timeline tells a story of deliberate strategy, disciplined investment, and a company that we believe is well-positioned for meaningful growth. Zomedica's story begins in 2015, when it was founded by an investment banker from Canada and a veterinarian working in technology transfer at the University of Michigan in Ann Arbor. In those early years, between 2015 and 2020, the team explored emerging diagnostic and therapeutic opportunities and initiated collaborations for Truforma and a couple of other technologies. The founding chief executive officer departed the company in 2020 and an interim chief executive officer joined the company in late 2020. Then in late 2020 came the unexpected meme stock phenomenon, an extraordinary period where our market cap rose dramatically. No one knows whether it was due to a cameo video featuring the Tiger Lady from TV talking about the Trueforma system that was pending launch or from people intending to buy shares of Zoom. Regardless, the price closed at a peak of $2.70 before it began to fall, reflecting a market cap of approximately $2.7 billion. Despite the fact that we had a very small staff coming out of COVID, no products on the market and no revenue at that time. During this time, the company redeemed warrants presented to it that had been issued during earlier financings from investors and sold 100 million shares to an investment banking firm. All of these shares ended up being sold into the market and increased the total outstanding shares of Zomedica to nearly a billion. And Zomedica's bank balance to over $271 million. In October of 2021, our current CEO assumed leadership of Zomedica. What followed were the true building years from 2021 to 2025. We made strategic acquisitions, expanded our capabilities, and transformed ourselves into a company with real products, real customers, and real revenue. And now we look ahead. Our future is defined by milestones, reaching $55 million for breakeven, pushing toward profitability, and scaling to $100 million in revenue and beyond. That's the destination we're steering toward. this segment highlights the transformation we've undergone over the last five years we've evolved from a company with no products on the market to developing a diversified animal health medical technology portfolio with therapeutics diagnostics manufacturing capabilities and an expanding commercial presence it's been a deliberate and disciplined shift one that now positions us to scale quickly and efficiently as new products are launched our acquisition growth strategy has unfolded in three phases Phase 1 focused on acquiring proven commercial products with existing revenue streams, the PulseVet shockwave system, and the Assisi pulsed electromagnetic field system, to add to the very early products comprising the Truforma diagnostic platform. In addition to the product lines, we also acquired significant assets in the form of facilities, equipment, and people needed to build the company and infrastructure to support them. Phase 2 centered on acquiring pre-commercial products with strong upside, the TrueView Microscope and Vet Guardian Monitor, and completing their development to prepare them for launch. While companies or products at this stage don't come with revenue streams, because of that, they are less expensive to acquire, providing more of an upside potential in terms of the expected return on our investments. Phase 3 advanced us into acquiring synergistic technologies like Vetigel Hemostatic Gel, expanding our footprint across both therapeutic and diagnostic markets. The strategy has been intentional. Build a commercial engine, leverage our infrastructure, acquire and develop products with meaningful revenue potential, optimize expenses, and drive toward break-even and profitability. That plan is now firmly in motion. During this time, in addition to adding products through acquisition and internal development, we brought in people from the acquired companies and recruited new ones to round out our team and human capital infrastructure. As you can see, we grew from relatively few people in 2020 to a peak employee count of 152 in 2024. Today we have 144 employee positions at Zamedica, with 46, or 44%, focused on marketing and selling our products, 48, or 33%, producing and distributing those products, 12, or 8%, developing new products, and 20, or 14%. working in administration finance and public company reporting while we will continue to optimize our human capital we feel that this is the appropriate employee base to continue to grow the company through acquisitions of pulse veterinary technologies and later corvo biotechnologies we acquired two manufacturing and distribution facilities and manufacturing lines we expanded the georgia facility and began bringing in manufacturing for zomedica's new electromechanical products with the acquisition of the minnesota facility we gained the ability to manufacture and distribute biotech products Today we efficiently manufacture all our products except Vetigel in these two facilities, producing gross margins in the 67% to 72% range, which simply would not be possible if we were to use a middleman for our manufacturing. We intentionally built capacity to serve much higher volume than we currently enjoy. We can produce annually up to five times our electromechanical products in Georgia and up to four million cartridges in Minnesota with no additional capital investments required. So we believe we are well positioned to grow our business and increase operating leverage, which we expect will allow us to further improve manufacturing margins. To enhance our customer experience and ultimately tie into our customers electronic patient information management systems or PIMS, our innovation technologies team developed our MizoMedica portal, which provides significant benefits to our customers today and is positioned to tie into the PIMS systems in the new year. To position ourselves to sell to customers around the world in the manner in which they choose to buy, we developed a strong commercial marketing and sales organization As we offer highly innovative and proprietary products new to our customer base, we faced the challenge of developing a Zomedica brand and then educating the market as to the benefits of our new products. To this end, we built a seven-person marketing team consisting of a senior vice president to lead, four product managers, and managers of social media and marketing services. This team leads our efforts to present at veterinary trade shows and horse and pet owner events around the country, building the brand and educating veterinarians about our products. Our sales team today consists of a senior vice president to lead, vice presidents of corporate accounts and equine sales, five geographically deployed area directors, each with a capital equipment specialist, three inside sales representatives, and 30 direct sales representatives. We built a team of seven customer and technical support representatives to support our customers. To further support the clinical needs of our teams and customer base, We also employ four professional services veterinarians, two equine and two small animal-focused, to provide support to our marketing and business development teams, work with our sales representatives in the field, and most importantly, to interact with our veterinarian customers on clinical matters, rounding out our commercial engine or our distribution partners here and abroad. In the U.S., we work with the major animal health distributors, including CoVetris, Patterson, MWI, and Midwest. In international markets, we sell through our subsidiary in Japan and 10 in-country animal health distributors in the EU, the UK, Canada, Australia, Turkey, and the Middle East, and in Central and South America. To build the company we have today that features the people and products, manufacturing capabilities, innovative technologies, and a robust commercial engine, we have had to invest. The most significant investments have been our acquisitions, which total approximately $122 million. But our acquisitions do not account for the totality of our investments in your company. From 2021 through 2024, the company made capital expenditures that most notably enabled our ability to bring manufacturing in-house, providing benefit to our gross margins. These investments also created scale, which will allow for meaningful growth without having to expand our existing capacity. Having built capacity to support future growth, you will note that capital expenditures are now reducing in 2025 relative to 2024. Similarly, as the product offerings and customer base grew, So did the company's operating expenses. Significant components of the growth in operating expenses from 2021 through 2024 included the establishment and staffing of our manufacturing and distribution facilities in Georgia and Minnesota, the build-out of our sales and marketing team to drive revenue growth and research and development costs to support the development of products to meet unmet customer demand. With many key milestones surpassed, We are now striving to reduce our cost structure in order to reach cash flow break-even and profitability. You will note that operating expenses are down in 2025 from 2024 and we expect to continue to see reductions into 2026. It is fair to ask though, have these investments provided the expected results? As you can see, the company has grown revenue from $0 in 2020 to over $27 million in 2024. Each of the first three quarters of 2025 have delivered record revenue performance for each respective quarter, and we anticipate another full year of revenue growth, noting that revenue is up 11% year-on-year through the third quarter. To tie it all together, let's look at our cash balance trend. While you can see a sharp decline in cash from 2021 through, primarily 2023, please note that this period contains our acquisition activities, which again, totaled approximately $122 million. You will note that cash burn began to slow in 2024 relative to prior years and has continued to do so thus far in 2025. This is the result of the combination of increased revenues and disciplined execution of cost reduction measures within our operating expenses. With the product portfolio we offer, along with our commercial engine and the scale we have invested in, we expect cash burn to continue to flatten and ultimately cash to begin increasing as we reach cash flow break-even. Today, with the products in our portfolio, our manufacturing and distribution infrastructure, and our commercial team, our total addressable annual market for our recurring revenue products has grown to over $2.5 billion, supplemented by a capital sales addressable market of over $1 billion. Of course, to hit these numbers would mean that all veterinarians in the U.S. would be using all of our products to the fullest extent possible. While that is what we are striving for, the nice thing is that we don't need to penetrate these opportunities too deeply to reach cash flow break-even and gap profitability. With 2024 sales of approximately $27 million, we're at about 1% penetration. 2% penetration would reflect revenue of approximately $55 million, which we believe would get us to cash flow break-even. So while we are shooting for the moon, we're focused on near-term market penetration milestones to get us to these important milestones. Beyond that, 4% penetration would really put us on the map with revenues of approximately $100 million. Today, Zomedica is a fully built, fully capable company. We have strong teams across manufacturing, R&D, clinical, sales, marketing, and operations. We have therapeutic products, including the PulseVet device, the Assisi therapy system, and Vetigel hemostatic gel. We also have diagnostic platforms, including the Truforma diagnostic platform, and shortly, the TruView AI digital microscope and the VetGuardian Plus monitoring system. Our facilities in Ann Arbor, Roswell, and Plymouth give us scalable production capacity with no major capital investment needed. That includes millions of cartridges and five times our current volume of electromechanical devices. We ended Q3 2025 with $54.4 million in cash, and we're making targeted investments in next-generation devices, PIMS integrations, Equine Vet Guardian, and new Truforma assays. Zamedica today is strong, stable, and operationally ready for growth. Before we move on to our future, let's take a few minutes to have our Senior Vice President of Finance and Accounting, Mike Zulke, recap our most recent quarterly performance.