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.

Good afternoon, and an early Happy Thanksgiving to all. I am Mike Zulke, Senior Vice President of Finance for Zomedica. I would like to begin by thanking all of you on this call or viewing on demand. We appreciate your continued interest and support of Zomedica. We would now like to take a few moments to review our most recent quarterly results, reported on November 4, 2025. The third quarter of 2025 was a record-breaking quarter for us. We delivered the highest quarterly revenue in company history, while continuing expansion across our portfolio and executing meaningful progress in our cost reduction initiatives. Let's review the results in more detail now. Total revenue for the third quarter was a record $8.1 million, an increase of 16% compared to Q3 2024. Not only was this our best quarter ever, but the quarter included the strongest single month in our history, and we surpassed $8 million in quarterly sales for the first time. Our year-over-year growth was driven by strong performance across multiple areas. Diagnostics were up 51% driven by accelerated adoption of our Truforma point-of-care diagnostic platform in our expanded menu of assays. Therapeutic devices continued strong performance by our PulseVet and Assisi products. Development services contributed $700,000 in new revenue, reflecting our continued pursuit of strategic opportunities and value capture within the human and animal health sector. Of note, consumables across all portfolios, across all segments, were up 14% driven by accelerated adoption of our true form of products, and sustained demand for our PulseVet troves, both from new device installations and reorders associated with existing systems. We expect consumables growth to further compound as our installed base expands. Additional contributors to our record revenue included capital sales of our PulseVet and VetGuardian devices, 16% growth year-on-year in international sales, and engineering services revenue within our new development services segment. Speaking of, before I move on to operating expenses, I would like to take this opportunity to expand upon the introduction of our new development services segment. We anticipate potential revenue from this segment to come from three primary sources, engineering services, production of consumable product, and potentially the licensing of intellectual property. By leveraging our existing assets, including our intellectual property portfolio, human capital, production capabilities and capacity, We are well positioned to support the development of products to serve the human and animal health sectors. To be clear, we are not shifting away from animal health nor changing our long-term strategy. Instead, we are opening the door to complementary opportunities where we can serve as a development, pre-commercialization, and potential manufacturing partner. We expect these opportunities to be ongoing rather than one-off in nature. We are excited about the potential in this area and the incremental revenue stream it could generate over time. Moving on to operating expenses. Total operating expenses were $12 million, our lowest quarterly spend in two years and our best leverage spend measured as a percentage of sales of all time. Research and development expenses were $1.8 million, slightly down from the third quarter of 2024. as we continue building internal capabilities to develop, test, and manufacture our next generation of therapeutic and diagnostic products. Selling and marketing expenses were $4.3 million compared to $3.9 million in the third quarter of last year, an increase of 12%. This was primarily driven by increased selling expenses associated with sales growth. General and administrative expenses were $5.9 million compared to $6.8 million in the third quarter of last year, a decrease of 13%, reflecting disciplined cost management and efficiency gains. Turning to the balance sheet, Zomedica ended the quarter with $54.4 million in cash, cash equivalents, and available for sale securities. Cash used during the third quarter was approximately $4.7 million, our lowest cash burn in nearly three years, and our first sub-5 million unadjusted burn since 2022. Now, I would like to provide an update on our year-to-date results that highlight our disciplined execution of both our commercial strategy and cost reduction initiatives that are delivering results and creating momentum. Total revenue year-to-date is up 11%. Of note, revenue of consumable products, which can be thought of as recurring in nature, is up 15% year-on-year. Additionally, our efforts to expand the global reach of our products have resulted in a 20% year-to-date increase in revenue from international sales. As discussed during the Q3 highlights, we have also expanded our potential revenue streams to include our development services segment, which contributed approximately $700,000 to our 2025 year-to-date revenue. We believe additional opportunities to grow the segment will continue to evolve. With regard to operating expenses, we continue to see leverage. Operating expenses are down $2.5 million, or 6%, and as a percentage of sales are down 33% year over year. We expect continued increasing leverage as our results reflect the full annual benefit of our cost reduction actions in 2026 and beyond. With regards to cash, increased revenues and reduced operating expenses are having the expected impact on cash and our cash firm. as we continue to strive for cash flow breakeven and profitability. Through the end of the third quarter in 2025, cash has reduced approximately $17 million, which is 25% less than the cash reduction seen through the first three quarters of 2024. We have reduced our cash burn in each quarter of 2025 as compared to 2024. We anticipate continued cash usage reductions in 2026 as we see the full benefit of our cost reduction initiatives and continued commercial growth. And I'd like to remind everyone again, as we always do, that we remain essentially debt-free. As our results for the quarter and year-to-date illustrate, we believe we are well positioned to fund and support our strategies, accelerating the global adoption of our expanding portfolio and advancing toward cash flow breakeven and profitability. With that, I'd like to hand the call back to Larry.

Thanks, Mike. Looking forward, Zomedica is entering its next phase of growth. We have next-generation products very close to launch, TrueView AI, VetGuardian Plus, and an expanded suite of new Truforma assays across equine and feline medicine. We're also actively seeking synergistic acquisitions in both therapeutics and diagnostics that complement and expand our current portfolio. Operationally, we're leveraging an experienced R&D team, valuable intellectual property, and highly scalable manufacturing and distribution infrastructure. We believe that we're well positioned, well built, and ready for the next stage of growth. As we strive for breakeven and profitability, we're focused on four major initiatives. First, leveraging our commercial infrastructure to increase sales of our existing products at a reduced cost, reflecting higher per team member productivity. Our addition of capital equipment specialists early in 2025 has proven to be a force multiplier in capital sales, increasing our per sales representative product sales. We believe ongoing optimization of our sales team will keep this trend growing. Second, launching and selling our next generation products, including the TrueView AI and the VetGuardian Plus, that offer features that our experience has shown us are desired by customers. And continuing our penetration of the equine market with additional Zometica products, including two former equine assays, VetAgel, and in the future, Equine VetGuardian. Third, spending less by driving additional leverage through operational efficiencies, collaborating opportunistically with partners seeking to commercialize our technology in new markets, and disciplined financial management. We've been bringing operating expenses down in absolute dollar terms. While we'll continue to look for opportunities to continue this trend and expect that we will, at least in the early 2026, We anticipate that we'll bring OpEx down in any event as a percentage of revenue. We also expect capital expenditures to be minimal now that the bulk of product development is behind us for the next generation products that are about to be launched. And fourth, executing a disciplined business development and M&A strategy to acquire and sell synergistic new products with high revenue opportunities and minimal capital expense required. With our commercial engine, we believe we are an attractive channel to market for animal health and human health companies seeking access to the veterinary market. While the margins we generate from these products will likely not equal our own internally manufactured products, if they fit nicely into our salespeople's bags, we believe that they'll increase productivity per sales rep. So overall, from a financial standpoint, the path to break even in profitability is clear. Revenue has increased across our launched products and we anticipate will continue across our soon-to-launch products. Margins are strong, capital needs are minimal, and operating expenses are coming down and becoming smaller as a percentage of revenue. As a result, we believe we are well-positioned, well-built, and ready for the next stage of growth and represent an attractive investment opportunity. With that, let's turn to Q&A.

Okay.

I appreciate some of the questions that have arrived, and so let's just dive right into them. Let's see. First of all, it's not so much a question, but shareholder Wilson has made a couple of suggestions, and I'll just say those look like good ideas. I know that our marketing team has worked on one of those, whether it's QVC or HSN, I'm not sure which. But I'll follow up with them, and I like the other suggestion to provide brochures or whatnot to shareholders. I think we can do that in the form of a QR code, and we'll look into that. So thanks for that suggestion. Second, can you expand on which IP might be licensed in the human segment? So we have significant intellectual property across all of our product lines. Certainly, we have IP around the Truforma system, the microfluidics, you know, all of the different aspects of the device that picks up what the sensors identify. So there's a substantial group of patents there, over 300. With respect to VetGuardian, we have a whole slew of patents with respect to that. We have a lot of patents around our microscope. So there's really IP really across the product line. And I would say that we have interest across the product line in how these products might be brought to market in the human or production animal spaces. For VetGuardian, once you have an equine version, do you expect the usage to be higher in equine or small animal clients? Same question with two-form assays. Are you seeing more or expect more demand from equine assays in 2026? All right, so first of all with VetGuardian, I think we'll sell more VetGuardian units to small animal clients. vets. They have, there's 30,000 small animal practices and only about 2,400 equine practices. There's another 2,200 mixed. So I think, I mean, from our perspective, every vet practice, certainly every small animal vet practice today, they ought to have a vet guardian. And really around three to five is probably the sweet spot. We've sold to one clinic eight previously. So they can be put to really good use. So I think we'll sell more just because of the fact that there's 15 times more clinics. With respect to usage, I think that the usage of the monitoring, they'll probably do more longer monitoring sessions with horses, right? You can imagine a really high-value horse. that's, you know, having some kind of an issue or maybe is about to fall or what have you, be continuously monitored. And that's kind of the approach that we're going to take is that this would allow you to just constantly monitor the horse. You only need one system, but you have it running the whole time. In small animal practices, we expect the systems to be used continuously, but on different patients. They might do every patient as they come out of surgery. They would do every patient in ICU. They would do every patient overnight. But it would be different patients from day to day and even intraday. With respect to true formol, we are seeing significant demand for our equine assays. Of course, again, more true form of machines should be able to be deployed to small animal clinics because there's 30,000 versus 2,400. What we're finding is that there's a very significant uptake in the equine market for our assays. There's a significant need in particular for the EACTH assay and also the insulin assay. And so we've seen, you know, very significant growth in that area. Part of it is because there's a significant need for it. Part of it is that the alternative doesn't exist in the clinic. And in the case of EACTH, there's really only one lab, external lab, that they send them out to. and it takes them a while to get the results back meanwhile they need the results asap so that's why i think we've seen a very significant growth in that equine part of the business and that's why you see us launching a number of equine assays there was another question in here can you provide timeline on some launches and which Truforma assays will be released this year. So let me tie that into the last part of that question into the answer here, and that is at the AAAP meeting, which is the American Association of Equine Practitioners, they have one large trade show a year. It's in December this year, and we expect to launch at that meeting equine progesterone, equine SAA, and a multiplex assay for insulin and EACTH. So three new assays for them. We'll be shipping at least progesterone right around that time. We already ship EACTH and insulin separately. And then I think we expect within the next several months to ship the SAA, but I'll wait until we actually launch it to give you the timeframes on that. We have a very strong relationship with equine practitioners. About 1,200 in the United States have a pulse vet. They pick it up on average three times a week to use it. We're seeing more exposure for pulse vet, not just for rehab and sports and performance medicine, but also now for asthma and also, interestingly, for hoof growth. And these are conditions that affect not just sports and performance horses, but really all horses. And so given the relationship we have with these equine vets and the constant sort of communication that we have with them as we refurbish their hand pieces we call troads, you know, we just have good exposure and we have a good relationship. They know who we are, and when we bring them to FORMA, they've been very, very receptive to it. So I think we get probably a higher usage per unit in equine, I think. It depends on the particular assay in human, or not human, but in small animal. We have a couple that are really high volume as well. But other than that, remember, these are for when the patient is sick, as opposed to being something that you would use on every well-patient visit. For VetGuardian, once you have an equine version, do you expect the usage to be higher in equine? I already answered that, sorry. Can you provide timeline updates on VetGuardian Plus and TrueView AI? Yes. Yeah, so with respect to those, we expect to launch both of those products within the next few weeks. That represents a delay from what we had hoped, did not hope for or had planned for. The government shutdown affected us just a bit as the agency closed. that was needed to issue a certificate related to the Vanguardian device meeting emission standards was out on break or whatever, furlough or what have you. And so while we got tested and met the standards, they weren't there to issue the report, and we couldn't launch it without that certificate. So with that in hand now, it'll be just a matter of really a short period of time before It might be within two weeks. With the TrueView, we've just continued to seek perfection in the AI component. The hardware is working great, and we've just been tweaking a couple of things. When you put all the pieces together, sometimes you see a little thing that's maybe not perfect. We've chosen to wait until, at least from our perspective, it's perfect to launch it. And so, like I said, those two products within the next couple of weeks. And as I earlier mentioned, we've got those two-format assays that will be launched at AAAP. What is our going-forward marketing strategy? It's continuing to build the Zamedica brand through robust marketing at trade shows, in the literature, through educational offerings like Somatica University, which we offer every week, and through our direct sales organization. We think we've been pretty effective to this point, have a lot of activity, and we expect to continue that. Is the sales population growing, and is there a new direction based on the new product introduction? Well, we just detailed the sales organization. As we said, we believe it to be appropriate. As a sales organization, I will tell you that we always look to optimize the team, you know, optimize in quotes, making any changes that performance suggests and any changes that would allow us to be more cost effective and sell more with less. So we'll continue to do those things. Let's see. Earlier this year, let me read this question. Earlier this year, there was a very aggressive social media advertising presence. I don't see that anymore. Well, actually, unless you're a vet, this is a good thing. The way we run our social media campaign, which continues very robustly and is being run at the same budget, when we run social media ads, they're constantly shifting. because they're seeking the specific target audience that we target, right? We run the ads. We see what kind of response we get. If it's not as good as other ads or other times or other venues, then we shift because we're seeking vets. We also appeal to horse owners and pet parents, you know, but less so because ROI, return on investment on good responses to those ads, means that these folks are interested in what we're doing and But they're not the ones – they're not the customer. They're not the decision maker. Yes, they could go to a vet, and as we heard from a suggestion earlier, they can take a brochure in with them, and we'll see if we can to facilitate that. But responses to those ads, it's less effective, it's less cost-effective, provides less of a return than if we were able to reach a vet directly who could decide to buy. So if we're spending the same amount in a more focused way, I would say just – you know, look a little bit more because our social media ads are out there. We actually are picking up the pace a bit on welcoming new customers to the Zomedica family on LinkedIn. That's a recent initiative that we have. Do you still think that break-even is possible at the 50 million run rate? Well, it's not 50, right? We've used 55 million for break-even as the midpoint of the 50 to 60 million dollar range that we established previously. We continue to expect to get cash flow break-even in that range with gap profitability to follow as we generate additional gross profit to also cover our non-cash components of OPEX. So I think that's a pretty good estimate of what our expectation is. How do you see your introduction of ISO compliance affecting your reach into the human diagnostic area? That's a good question. First, ISO 13485 certification indicates that Zomedica has a very high-quality quality system that reflects well on us, whether we're making products for FIDO or FREDI, right? It's just good. We're a quality organization. With respect to the specific question, ISO 13485 compliance, it provides Zomedica the opportunity to design, develop, manufacture, and support products intended for use in humans, either on our own, or on behalf of a partner. With ISO 1345 certification in hand, we can avail ourselves of opportunities to do anything from one-off projects to full-blown product design and development to manufacturing of products, leverage in our technologies to be sold into whichever market. It includes our VetGuardian wireless monitoring technology. We actually did our first project of this kind last December. It didn't present any sort of material contribution to the company, so we just did it, and it was included generally with our revenue. That entity has recently come back for additional work, and it could develop into more extensive collaboration or not. This group also includes the TrueView microscopy platform, which we own outright. pulse shockwave system, and of course, our Trueforma platform, which, as you probably know, had previously been approved by the FDA for emergency use during COVID. As we reported and Mike just discussed, we recently engaged in a project for a human health company for this technology. While not material to our business during the recent quarter, we established a new business segment and reported it separately for two reasons. One, to avoid artificially increasing the reported true form of run rate to you. We didn't want to include that in the true form of rate and then have you think that, oh, my goodness, many more vets must all of a sudden start using it. That wouldn't be appropriate. And second, really, to have a place to report the monetization of the human aspect of our various technologies in the event that they do become material in the future. We've talked many times over the last several years about our intention to monetize in the human market as we develop a track record in the vet market. As we've seen interest in collaborations for several of our technologies from companies involved in producing products for both human health as well as production animals, it seemed like now would be a good time to establish that segment and also make sure that we're giving accurate information to our shareholders. Let's see. What impact does the issuance of stock options have on dilution for SubMedica shareholders? Well, all of our SubMedica authorized stock options, including those that have not been issued to anyone, they're already registered. So the total of all of our options, whether issued or sitting there ready to be issued, is already included in our total shares outstanding. And so, therefore, issuing those already registered shares to individuals would have no dilutive effect on our shareholders. Let's see here. Do you see exponential growth metrics for sales with the newest distribution agreements? Yeah, I mean, exponential, of course, is a relative term, you know, I think we have opportunity for significant growth. We now have, you know, in the U.K., for example, we previously had our EU distributor based in the Netherlands selling the equine pulse vet in the U.K. We had no distribution for any of our small animal products, and now we do. Similar situation in Canada where we were selling direct for pulse vet into equine. Now we have in-country distribution there. And actually, Kevin is at an international show right now. I spoke to him yesterday. We've got lots of interest incoming from distributors around the world that, you know, want to cover our product line. And so I think we have significant growth opportunities. Exponential, I think that's probably too big of a term to use. It depends on how big that is. So I'll just say significant. Can you disclose any of the major customers that you're working with or planning on working with? Well, planning on working with, I could give you a whole long list, right? It's been some years as we have built the product line to the point where we could have a significant impact on a vet's overall business. With products like PulseVet, that have an opportunity to add a new service line to a vet practice, a new profit center for them. With VetGuardian, they have an opportunity to reduce staffing burden, as well as to provide a new profit center for them, a new source of revenue. With products like Truforma that can significantly improve their customer service by giving them the results right then and there. and so on and so forth, right? You've heard these over the last six months. With these products now in totality, we have something that is meaningful to a large group. So when we go into them, it's not we have a single product we'd like to talk to you about and get you all excited about. Now we have a whole group of products that meet our five pillars. We're here to help not just an individual practice but all the practices within your group. And so you can list out all of the large corporate groups, and those are the ones that we plan on working with. Of course, you know, they have to have the same plan for that to work out. To that end, as you all know, we hired earlier this year a VP of corporate accounts. They're experienced and tenured, long career in that. We noticed or we reported earlier that BMG was a buying group that we had done an agreement with. We have another one that, or no, I'm sorry, Vertical Vet was a group that we have an agreement with, and there's another one that we expect to be able to announce soon. And then beyond that, it's working with groups. Generally, the process would be that we would identify one or two or several or many, depending upon the size of the group, to basically bring our products in and assess them, see the impact they can have on a single group, and then take that out to a larger section of those groups. We'll report those as they occur. Okay. The recent patent for multiplex crowding, how does this differentiate true form versus competition? Do others have this technology and can it be used on the human side? You know, that's a great question. I'm going to save that one and get you an answer at our next webinar. I will tell you that the BAW sensor provides an expanded dynamic range. It's one that is not replicated by other companies with this technology. It allows us to do things that they can't do. If they could, they would. But in terms of exactly how does it compare with Abbott, Roche, and BioRad, I'm going to defer that to the next session because I don't know the answer. Let's see here. How would you grade the commercial debt market penetration so far, and do you expect penetration to continue on that front? Well, we certainly expect to continue to penetrate. I would say that we're about 1% so far. Last year, well, a little bit better this year. So last year, about $27 million, about a $2.7 billion total addressable market, you know, 1% penetration. You know, we're shooting for in the near term to get to 2% pretty quickly so that we can get to cash flow break even. But really, $100 million is what we're That's what we have staffed for, and that's what we have built for, and that's what we're headed to. That's a 4% penetration. So I think that, honestly, having been involved in a number of different startups and also some very large corporations and have launched products from both large companies and startups, I will tell you that the hardest numbers to get, the most difficult penetration is the initial penetration. It just is, especially when you're coming out with products for which there is no other competitor in the market. You take that Guardian. It's not like, you know, there's two or three competitors out there, and we have a much better touchless monitoring system. We have the first one and the only one. And so it takes a little time for us to educate the market about that. Similarly with all of our other products. And so I'd say that we've done – I guess what I would say is we've done the job we've done. It's easier from here, and we expect to accelerate that growth. Status of vet guardian attribute, I covered that. IP that could be licensed, I've covered that. Let me go to the top here. For the new business segment, do you expect that revenue to be up and down, constant, or grow each quarter throughout 2006? And I would say that – It's difficult to call. We have interest, as I mentioned, from companies involved in human health, production animal health, and it's for multiple of our products. What we'll see is some one-off projects. For example, we did one December of last year. They recently come back and had us do some additional work. And if that all pans out and, you know, their aspirations are fulfilled, it could become meaningful for us. We're working with, as you saw, we reported revenue last quarter from a company involved in human health. We'll see how that works out. So I think it's difficult for us to say, as we're not the ones necessarily who are dictating the pace at which someone else might like to work with us. Having said all of that, with enough interest from enough different companies, we do think we'll continue to increase that. Let's see. Product growth was around 6%. That seems very disappointing. Yeah, I think no matter whether it's 6 or 16 or 26, it's going to be disappointing to us here at Semedica because we're always looking to do better than we have done. When you look at the revenue breakdown, I think Mike talked about this a little bit, we have certain aspects where the growth was much higher. For example, in international, we had 20% growth. In our recurring revenue, which is When you're selling capital, you know, it seems to be choppy sometimes. And especially when you have customers who have sort of trained themselves and the industry has trained them to buy capital in the fourth quarter. I guess they don't really get that that Section 179 deduction, you know, no matter when you start during the year, you get to take it for the whole year, you could start earlier. So for whatever reason, people tend to buy a lot of capital in the fourth quarter and sometimes hold off. I think we're pretty happy with the growth rate that we had, especially in the areas in which we saw it. Mike, do you want to comment on that any more?

No, Larry, as you mentioned, there are a lot of highlights within the revenue growth that we reported. Very pleased with a lot of it. Acknowledge the challenges and the opportunities that lay in front of us, and we're working hard to address those.

Yeah, you said it nicer than me. I guess, you know, we're both happy and disappointed about it. Let's see what else we got here. We talked about IP, talked about status. We gave ourselves, I don't know, maybe a B on grading the commercial penetration.

Larry, we do have a question in here around pretty straightforward. Okay. Question around is regaining major stock market listing a future goal of ours? And what I would share with the stockholder base is absolutely. It was never our desire to not be listed on one of the major exchanges. I would remind everyone that for the listing requirements of either the New York Stock Exchange or NASDAQ, there are a handful of listing requirements, and we meet all of them. short of the required share price, which for initial listing is, you know, $4 with some exceptions for different tiers, but use $4 as a barometer. So, you know, a shareholder can look at where we're at today and assess, you know, progress towards a $4 share price to assess when major exchange relisting may occur.

Yep. Let's see, can we give an idea of the human biomarker area you're working on? Nice try, but no, we cannot. Just leave it at that. I think, let's see, how serious are we entering the human health industry? I think I've covered that. It's not that we ourselves are entering the human health market. And let me just say this, a lot of us, have experience in the human health market. I myself spent many, many years in that market, and this is my first venture into animal health. Having said that, the expenses associated with the regulatory pathway and navigating that regulatory pathway and doing the things that are required to satisfy the regulatory pathway and then to and then to deploy the commercial organization to sell into the human market, all those require substantial capital. And so we prefer to provide support in the way of design, development, manufacturing, all of those aspects, which we are well suited to do. and then have companies that are dedicated in the human market that understand the requirements and then have funded themselves to be able to, you know, go the distance with the regulatory pathway and the, you know, adoption pathway, the reimbursement issues and so on and so forth. So while we could enter the human health market, as Mike indicated earlier, we are focused on animal health. We love pets. We love the vets that take care of them. We love people, too. But that's a much more expensive proposition. And so we expect to work with others in the field and benefit in that way and collaborate. When should we expect the launch of AI technology? We've launched AI technology a while back, right? The VetGuardian system that's on the market now utilizes, extensively utilizes AI to have a video camera, a thermal imaging camera, Doppler radar, LiDAR radar, all look at a cage and identify that there's an animal in the cage, identify where that animal is, pick out the hottest spot on it, and get the temperature, and then be able to discern the respiration, the heart rate, all of that, the temperature, all of that using algorithms, quite sophisticated algorithms that include AI technology. So that's been out there for a long time. The VetGuardian Plus, which will be launching here shortly, expands on that in a very significant way. We're really happy and pleased about that. The TrueView AI is coming out, as I mentioned earlier. I see from your notes that maybe you weren't here for that, but the TrueView AI is coming out shortly, and we're simply at this point tweaking some of the features reporting that's done when the AI algorithm determines what it's seeing on the slide. Within a couple weeks, that will be out in the marketplace. Is the window for insider buying still open? And if so, do you plan on purchasing more shares for your grandchildren? So my grandchildren are all coming to visit for Thanksgiving, and they'll be disappointed to hear that I am not allowed to buy shares at this point. The window for insider buying is open for some of our employees, and for others it's closed for reasons that have to do with certain information that we have that would be determined material and nonpublic. But they're little, right? My oldest grandchild is six. and my youngest is only about six months. So I'm not going to tell them I'm not buying them more shares now. They'll be happy. Their parents might not be, but that's okay. How fast do you anticipate the new product lines to gain traction? TrueView AI, I think we've seeded the market enough. We've had enough customers out there giving us images to train the AI that we've got good references for that. And with respect to VetGuardian Plus, VetGuardian has been out there. The couple of things that are different with VetGuardian Plus I think are significant improvements in the technology, and we'll be upgrading all our existing customers. And so I think we'll see an immediate impact even in this quarter from VetGuardian, but certainly early and throughout next year.

Larry, if I can jump in real quick. One of the listeners is inquiring, that on our last Fourth Friday, which happened on the Fourth Friday of October, we mentioned we were very excited to talk about something. If I can just clarify before you get to potentially the last couple questions. At that point in time, we had not yet published our Q3 results, which contained a lot of the exciting news. We were eager to share with the shareholders, you know, including exceeding $8 million in revenue for a quarter in the first time and it not being in the fourth quarter, which is historically our highest revenue quarter seasonally. Continuing to see operating leverage. As I referenced, OpEx as a percentage of sales year to date is down 33% as it was to last year. And we've used 25% less cash thus far in 2025 than we used in 2024. And that's all in front of the establishment and the reporting of the new business segment that came out in the 2025 third quarter 10Q published on November 4th. So for the listener that was inquiring about what we're excited to talk about at that point in time, we were not yet able to give you all the information that was to be published, you know, less than a week after that date.

So you were trying to preempt me from saying something else, right? Okay. And I think that probably also addresses some of what we're most proud of from 2025. I think, you know, we really – I believe that what you just said, Mike, you know, all come together to really establish a very clear line of sight to cash flow break even for us and beyond that to gap profitability. Okay. And it's a combination. You know, we have fewer people here. We're producing more with fewer people. We're spending less money. We're spending certainly less money as a percentage of revenue. We've got these products out. It's taken us the time that it has taken us, but we've spent the appropriate amount of time so that when they launch, they're ready to go right out of the box. We've got international in place where we want it. So we're just generally pretty happy with all that. We see 2026 as really shaping up very nicely. There's a question here about quarter four. I'll tell you that quarter four is shaping up very nicely as well. As Mike said earlier, you know, we expect to have another record-breaking quarter. And that would be breaking records not just against the last fourth quarter, but any quarter that we've had to date. And we're very confident that we're going to have a really, really strong fourth quarter. We've addressed the share price to relist. Let's see, somebody here is noting that Kevin is leaving me and the board in the dust. That's exactly right. Kevin's not. The last thing I would want to do is tell Kevin something that would keep him from buying shares, so I don't. And, you know, God bless him. He's, you know, in fact, he had me in the dust when he joined because he bought 2 million shares or a million shares he bought, I think, before he even joined the company. So he is really investing in his future. He's a bit younger than me, so he doesn't have any grandchildren yet. He's got daughters, and I imagine that, you know, he has expectations, and so maybe that's what he's doing for them. We have a lot of folks. I mean, you see the reports of our chief operating officer, myself, and our chief sales officer, chief – our legal counsel, you see those reports because we're, quote, named executive officers, unquote. But you don't know that our head of business development has bought shares, that many of our other employees here have bought shares as well. And that's fine. That's private matters on their part. We don't encourage them to do it. We certainly don't dissuade them. But, you know, they see the same thing that we all see. If they see something that you don't know, then they're not allowed to buy it. until you all know it. And so we'll make sure that that obviously continues. And I think that's pretty much it, right? Let's see. Here we go. Do you still think we will reach cash flow break-even in 2027? Yeah, for sure. And I think – go ahead, Mike, you can say it. I was just saying yes. Okay, just say yes. Okay. Well, certainly by 2027. Yes. Yeah, for sure. Have we as a company entertained any merger possibilities, or would you ever consider it if it was beneficial? All right, so let me say this. If we had – so, first of all, no, we have not. considered we're not considering we don't have any buddy that's come to us and said merge with us or get bought by you know let us buy you or you buy any of that however there is we As officers and the board, and I'm also on the board, we have a fiduciary responsibility. If someone came to us and said we would like to acquire you, or we would like to merge with you, which sometimes is a euphemism for we'd like to acquire you, we would have a fiduciary responsibility. And if we felt it was beneficial to shareholders, not to us as individual employees or individual directors, but if it was beneficial, if we felt it was beneficial to shareholders, we would have an obligation to bring that to your attention. Having said that, it would then be up to the shareholders as to whether they thought it was beneficial or not, because they would have a chance to vote as shareholders on whether or not to do whatever it was that was being proposed to be done. So the first pass would be we would have a fiduciary responsibility to inform you, And then if we felt it was, you know, the right thing to do, then we would recommend it. And at that point, you know, it would be your call. And so just for the record, we're not in the middle of anything like that now. Would you consider a partial stock buyback once profitability is reached? I think the first thing that we need to do is get the cash flow break even beyond that gap profitability. And then we would have to take a look at what our capital situation was at that time and what we could do with the capital if we weren't using it to buy back shares, right? And if the buyback was determined to be the better option for all of our shareholders, not just some who would decide to, hey, let me then, you know, go ahead and sell real quick and then turn around and do whatever. If we felt it was beneficial at that point, then we would certainly consider it. It's always been something that we've thought about and considered, but I think we had a CFO that had a phrase that it's, you know, a stock buyback represents a permanent loss of capital for a short-term gain in share price, which generally only lasts for around six months, if that's the only thing that's catalyzing the share price. You know, it'd be... Let me just leave it at that. We would definitely consider it, but not until we're cash flow breakeven for sure, which would be by 2027. And I think that that's pretty much it, right? Mike, do you see anything in there that we missed?

No, I do not.

Okay. Okay. Well, with that, let me thank you very much for your attendance and your support of Zomedica. We expect to come back at our next, you know, let me say this. We're not going to do a fourth Friday at 4 in December, and we're not going to try and do a third Friday at 4 in December either. It's holiday season, and I think now would be a good time to take a one-month break. We will be, of course, doing one in January. And then, of course, we've got earnings that we'll be presenting. We may even in January do early announcement of fourth quarter performance. I'll leave that for Mike to get comfortable with. And And with that, again, let me thank you for your support of Zomedica. We appreciate it. We're going to strive to continue to see the stock appreciate in value the old-fashioned way, right, which is to continually drive increases of revenue, bring in operating expenses down, give you a clear line of sight to cash flow break-even and profitability, and see the value of your company grow over time. So, again, happy Thanksgiving to all of you, and feel free to reach out any time with questions. If nothing else, we'll put them on the list for the following Fourth Friday webinar, as we have done with some of you on today's call. Thanks very much, and have a great weekend.