EDGAR 10-K Filing

Company CIK: 1684144
Filing Year: 2025
Filename: 1684144_10-K_2025_0001558370-25-002904.json

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ITEM 1. BUSINESS
Item 1.
Business

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ITEM 1A. RISK FACTORS
Item 1A.
Risk Factors

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ITEM 1B. UNRESOLVED STAFF COMMENTS
Item 1B.
Unresolved Staff Comments

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ITEM 2. PROPERTIES
Item 2. Properties
Our corporate headquarters are in Ann Arbor, Michigan, where we lease and occupy approximately 18,966 square feet pursuant to leases that expired on January 31, 2025.
Our manufacturing and distribution center, South, is in Roswell, Georgia, where we lease and occupy 18,400 square feet of a 61,500-square-foot building under a lease that expires on April 30, 2027.
Our R&D, manufacturing and distribution center, North, is in Plymouth, Minnesota, where we lease and occupy two spaces totaling approximately 29,938 square feet under leases that expire on February 9, 2028.
Assisi® product distribution and certain operations were in Carlstadt, New Jersey, where we sub-lease 5,185 square feet pursuant to a license agreement that expires on November 30, 2026. As we have transitioned distribution from this location to Roswell, Georgia, we are seeking to sublet this space.

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ITEM 3. LEGAL PROCEEDINGS
Item 3. Legal Proceedings
None.

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ITEM 4. MINE SAFETY DISCLOSURE
Item 4. Mine Safety Disclosures
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our common shares now trade on the OTCQB® market tier of OTC Markets under the symbol “ZOMDF”. Over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.
Common Stock Information
As of March 13, 2025, there were 979,949,668 common shares outstanding held of record by approximately 150 holders.

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ITEM 6. SELECTED FINANCIAL DATA
Item 6. [Reserved]

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to help the reader understand the results of operations and financial condition of the Company. The Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our audited consolidated financial statements and notes thereto for the year ended December 31, 2024. In addition to historical information, this Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and forward-looking information under applicable Canadian securities law requirements (collectively, “forward-looking statements”) which are intended to be covered by the safe harbors created thereby. See “Cautionary Note Regarding Forward-Looking Statements” in this Annual Report on Form 10-K. Our actual results and the timing of events could differ materially from those discussed in our forward-looking statements as a result of many factors, including those set forth under the “Part I - Item 1A Risk Factors” section and elsewhere in this Annual Report on Form 10-K, as well as, in other reports and documents we file with the Securities and Exchange Commission from time to time. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this Annual Report on Form 10-K.
(All amounts are expressed in thousands unless otherwise indicated)
Overview
We are a veterinary health company creating and marketing products for companion animals by focusing on the unmet needs of clinical veterinarians. Our mission is to enrich the lives of the animals we love and the people that care for them by providing products and technologies that improve patient care and enhance the economic health of veterinary practices. Our product portfolio includes innovative diagnostics and therapeutic medical devices that emphasize patient health and enhancing practice economics.
We currently have six discrete platforms in our product portfolio:
Diagnostic Products
- our TRUFORMA® platform, comprising point-of-care diagnostic products for disease states in dogs, cats and horses, providing assays for use at the point-of-care that provide reference lab accuracy, thereby enabling practitioners to diagnose and treat diseases sooner;
- our TRUVIEW® platform which consists of the TRUVIEW digital cystoscopy instrument providing microscopic images and related pathology services which enable practitioners to receive a Pathologist interpretation of the images;
- our VETGuardian® platform, which provides continuous wireless monitoring of pets’ vital signs and provides them remotely to veterinarian practice staff, along with alert messaging should the vital signs rise or fall out of range, to assist in rapidly diagnosing issues;
Therapeutic Device Products
- our world leading PulseVet® platform, which provides for non-invasive electro-hydraulic shock wave treatment for a wide variety of conditions in horses and small animals, including osteoarthritis, tendon and ligament healing, bone healing, chronic pain relief and wound healing, to promote healing and reduce the need for surgery and/or medication; and
- our Assisi Loop® platform including a series of products that use targeted Pulsed Electromagnetic Field (tPEMFTM) therapy to decrease pain and inflammation and accelerate healing or reduce anxiety.
- our VETIGEL® product, a fast-acting hemostatic gel that stops bleeding in seconds without applied pressure, enhancing procedural efficiency and improving patient outcomes.
We have focused our development and commercialization efforts on our TRUFORMA, TRUVIEW, VETGuardian, PulseVet, Assisi Loop, and VETIGEL platforms.
For the foreseeable future, we expect to continue to incur losses, which we expect will begin to decrease from historical levels as we
continue to rapidly grow our Therapeutic Device segment, continue the commercialization of our Diagnostic products, and expand our product development and sales and marketing activities.
For further information on the regulatory, business and product pipeline, please see the “Business” section of this Annual Report on Form 10-K. For further information on the risk factors, please see the “Risk Factors” section of this Annual Report on Form 10-K.
Components of Operating Results
Revenue
Our revenue consisted of consumables sold in the U.S. and internationally associated with our Assisi® products; capital and consumables sold in the U.S and internationally associated with our PulseVet® platform; consumables sold in the U.S associated with our TRUFORMA® platform; subscriptions and services sold in the U.S. associated with our TRUVIEW® products; and capital and service agreements sold in the U.S. associated with our VETGuardian® products.
Cost of Revenue
Cost of revenue consisted primarily of the cost of raw materials used in the assembly of: PulseVet capital and consumables: TRUFORMA capital and consumables; Assisi consumables; TRUVIEW capital and consumables; and VETGuardian capital and services. We expense all inventory obsolescence provisions related to normal manufacturing changes as cost of revenue.
Operating Expenses
Our current operating expenses consist of three components - general and administrative expenses, research and development expenses, and selling and marketing expenses.
General and Administrative Expenses
General and administrative expenses consist primarily of salaries, wages, stock-based compensation, and overhead costs incurred to support our business as a publicly traded company. The functions involved include Accounting, Business Development, Finance, Human Resources, Information & Innovation Technology, Investor Relations, Legal, and portions of other functional areas. Included within these support costs are significant public company expenses such as stock exchange fees, annual meeting expenses, and audit, tax, Sarbanes-Oxley and other compliance costs.
Research and Development Expenses
Research and development (R&D) expenses consist of salaries and related expenses for R&D personnel, fees paid to consultants and outside service providers, travel costs, and materials used in clinical trials and general R&D. These costs are primarily focused on leveraging our acquisition of Qorvo into new assay development for our TRUFORMA platform, expanding capabilities and usability within existing products, and exploring new market opportunities.
Selling and Marketing Expenses
Selling and marketing expenses consist of personnel costs (including salaries and related benefits) and costs associated with sales and marketing activities (including conference and tradeshow attendance, sponsorships, and general advertising and promotional activities).
U.S. Taxes
As of December 31, 2024, we had net operating loss carryforwards for U.S. federal and state income tax purposes of $16,044 and non-capital loss carryforwards for Canada of $6,419, which will begin to expire in fiscal year 2039. We have evaluated the factors bearing upon the realizability of our deferred tax assets, which are comprised principally of net operating loss carryforwards and non-capital loss carryforwards. In 2021, we concluded that, due to the limitations under Section 382 of the Code, our U.S. federal and state income tax net operating loss carryforwards, as well as R&D credit carryforwards, for the periods prior to February 11, 2021 have been limited to zero. We therefore have derecognized $3,814 of this asset, reducing the carryforward of these amounts to $12,230.
Canadian Taxes
In Canada, due to the uncertainty of realizing any tax benefits as of December 31, 2024, we continue to record a full valuation allowance against our Canadian deferred tax assets.
Translation of Foreign Currencies
The functional currency, as determined by management, for our subsidiaries in the United States, Switzerland, and Canada is the U.S. dollar, which is also our reporting currency.
The functional currency, as determined by management, for our Japanese subsidiary is the Japanese Yen. Japanese Yen are translated for financial reporting purposes with translation gains and losses recorded as a component of other comprehensive income or loss.
Stock-Based Compensation
Stock-based compensation expense is recognized for awards granted to employees and directors based on the fair value of the awards on the grant date. The Company’s stock-based compensation includes stock options, which are classified as equity awards, and SARs, which are classified as liability awards.
Equity-Classified Awards (Stock Options)
We measure the cost of equity-settled transactions by reference to the fair value of the equity instruments at the grant date. The fair value of stock options is calculated using the Black-Scholes Option Pricing Model and recognized as compensation expense over the vesting period of the award using the graded vesting method. Since our stock-based compensation plans do not require settlement in cash or other assets, stock options are classified as equity awards.
Compensation expense recognized during the period reflects the fair value of stock-based payment awards that are ultimately expected to vest. We account for forfeitures of employee awards as they occur. The expected term of stock options, which represents the period the options are expected to remain outstanding, is estimated based on the average term of the options. The risk-free interest rate is based on the U.S. treasury yield curve at the time of grant for the expected term. We assume a zero dividend yield at the date of grant, as we do not anticipate paying dividends in the foreseeable future. The expected volatility used in valuing stock options is calculated based on the historical price of the Company’s stock. Changes in volatility would result in a corresponding increase or decrease in the fair value of the options.
Liability-Classified Awards (SARs)
The Company accounts for SARs as liability-classified awards because they are settled solely in cash and do not result in the issuance of equity. The fair value of SARs is initially measured at the grant date and subsequently remeasured at each reporting date until settlement. The fair value of SARs is calculated using the Black-Scholes Option Pricing Model and recognized as compensation expense over the vesting period of the award using the straight-line method. Changes in fair value are recognized as compensation expense in the consolidated statement of operations during the period of remeasurement based on the proportion of the vesting period that has elapsed. The expected term of SARs, which represents the period the SARs are expected to remain outstanding, is estimated based on the average term of the SARs. The risk-free interest rate is based on the U.S. treasury yield curve at the time of valuation for the expected term. We assume a zero-dividend yield, as we do not anticipate paying dividends in the foreseeable future. The expected volatility used in valuing SARs is calculated based on the historical price of the Company’s stock. Changes in volatility would result in a corresponding increase or decrease in the fair value of the SARs.
Upon exercise, SAR participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the SAR. Since SARs are remeasured at each reporting date, volatility in the Company’s stock price may lead to fluctuations in the recognized compensation expense and recorded liability.
Loss Per Share
Basic loss per share, or EPS (earnings per share), is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options, warrants and convertible securities are excluded from diluted EPS if the effect of such inclusion would be anti-dilutive.
Comprehensive Loss
Our comprehensive loss is reported in accordance with ASC 220, Income Statement - Reporting Comprehensive Income (“ASC 220”). Comprehensive loss is net loss plus certain items that are recorded directly to shareholders’ equity.
Critical Accounting Policies and Significant Judgments and Estimates
Our management’s discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. The preparation of our consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue, costs and expenses, and related disclosures during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments, including those described below. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
While our significant accounting policies are more fully described in Note 3 of the notes to our consolidated financial statements included within this Annual Report on Form 10-K, management has identified the following as “Critical Accounting Policies and Estimates”: Intangible Assets and Business Combinations; Impairment Testing; Valuation and Payback of Property and Equipment; and Revenue Recognition and Liabilities Due to Customers. We believe that the estimates and assumptions involved in these accounting policies may have the greatest potential impact on our financial statements.
Intangible Assets and Business Combinations
Assets acquired and liabilities assumed as part of a business combination are recognized at their acquisition date fair values. In determining fair values for recent business combinations, we utilize various forms of the income, cost, and market approaches depending on the asset or liability being valued.
We use a discounted cash flow model to measure the customer relationship, developed technology, license, trademark, and tradename assets. The estimation of fair value requires significant judgment related to future net cash flows based on assumptions related to revenue and EBITDA growth rates, discount rates, and attrition factors. Inputs are generally determined by taking into account competitive trends, market comparisons, independent appraisals, and historical data, among other factors, and were supplemented by current and anticipated market conditions. Variances in future cash flows, anticipated growth rates, and revenue could significantly impact the value assigned to intangible assets. Any variance could cause impairment charges upon testing.
Impairment Testing
We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change indicating the carrying value may not be recoverable. When testing goodwill for impairment, we may first assess qualitative factors to determine if it is more likely than not the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, we consider the impact of changes, if any, to the following factors: macroeconomic industry and market factors; cost factors; changes in overall financial performance; and any other relevant events and uncertainties impacting a reporting unit. If our qualitative assessment indicates a goodwill impairment is more likely than not, we perform additional quantitative analyses. We may also elect to skip the qualitative testing and proceed directly to the quantitative testing. For reporting units where a quantitative analysis is performed, we perform a test measuring the fair values of the reporting units and comparing them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, an impairment is recognized for the difference, up to the carrying amount of goodwill.
We estimate the fair values of our reporting units using a discounted cash flow method or a weighted combination of discounted cash flows and a market-based method. The discounted cash flow method includes assumptions about a wide variety of internal and external factors. Significant assumptions used in the discounted cash flow method include financial projections of free cash flow, including revenue trends, medical costs trends, operating productivity, income taxes and capital levels; long-term growth rates for determining terminal value beyond the discretely forecasted periods; and discount rates. Financial projections and long-term growth rates used for our reporting units will be consistent with, and use inputs from, our internal long-term business plan and strategies.
Discount rates will be determined for each reporting unit and include consideration of the implied risk inherent in their forecasts. Our most significant estimate in the discount rate determinations involves our adjustments to the peer company weighted average costs of capital reflecting reporting unit-specific factors. We do not make any adjustments to decrease a discount rate below the calculated peer
company weighted average cost of capital for any reporting unit. Company-specific adjustments to discount rates are subjective and thus are difficult to measure with certainty.
The passage of time and the availability of additional information regarding areas of uncertainty with respect to the reporting units’ operations could cause these assumptions to change in the future. Additionally, as part of our quantitative impairment testing, we perform various sensitivity analyses on certain key assumptions, such as discount rates, cash flow projections, and peer company multiples to analyze the potential for a material impact. The market-based method requires determination of an appropriate peer group whose securities are traded on an active market. The peer group is used to derive market multiples to estimate fair value.
For the fiscal year ended December 31, 2024, the Company recognized total impairment charges of $16,024, reflecting the outcomes of both interim and annual impairment testing. These charges were primarily related to goodwill associated with certain reporting units and resulted from changes in future sales growth projections and the allocation of operating expenses.
During the six months ended June 30, 2024, the Company determined that triggering events occurred, which required interim testing for impairment in accordance with ASC 350. We elected to perform a quantitative analysis as part of our interim goodwill impairment test. This was driven by changes in future sales growth projections and the allocation of operating expenses. As a result, a goodwill impairment charge of $16,024 was recorded for the six months ended June 30, 2024, as part of the Company’s interim goodwill impairment test.
As part of our annual goodwill impairment test for the fiscal year ended December 31, 2024, we performed a quantitative analysis of our reporting units. Our analysis of the PulseVet® and Assisi® reporting units indicated that their fair values exceeded their carrying amounts, including goodwill, by 12% and 14%, respectively.
For the fiscal year ended December 31, 2023, the Company performed a quantitative analysis as part of our annual goodwill impairment test. Our analysis of the PulseVet and Revo Squared reporting units indicated that their fair values exceeded their carrying amounts, including goodwill, by 6% and 26%, respectively. Our analysis of the Assisi reporting unit indicated that its fair value was below its carrying amount, including goodwill, by 54%, driven by changes to future sales growth projections and an increase in allocated operating expenses. As a result, a goodwill impairment charge of $12,195 was recorded as part of the Company’s 2023 annual goodwill impairment test.
The carrying value of goodwill for the PulseVet and Assisi reporting units as of December 31, 2024, were $43.4 million and $2.2 million, respectively. Following the impairment recorded during the current period, there are no longer any carrying values of goodwill for the Revo Squared or SMP reporting units.
The implied fair value for each reporting unit was calculated on a standalone basis using a weighted combination of the income approach and the market approach. The implied fair values of each reporting unit were summed, along with unallocated assets, to determine the indicated value of total equity. This indicated value was compared to the total market capitalization as of December 31, 2024, implying a control premium of 16.1%. This control premium aligns with those observed in the last five years within the Medical, Dental, and Hospital Equipment and Supplies industry, which have historically been significantly higher than the aggregate control premiums across all other industries. As a result, the market capitalization reconciliation analysis supported the reasonableness of the fair values estimated for each individual reporting unit.
While the Company continues to believe that its estimates of fair value for the remaining reporting units are reasonable, changes in assumptions regarding future financial results, increases in the discount rate, or other underlying factors could significantly impact their fair value. Such changes may require the Company to record an impairment charge in future periods. Additionally, any future decline in the overall market value of the Company’s equity could result in a determination that the fair value of the remaining reporting units has fallen below their carrying value.
Valuation and Payback of Property and Equipment
Diagnostic based TRUFORMA® capital is placed in fixed assets once purchased or manufactured, where they remain, undepreciated, until they are placed with our customers under the agreement that they will repeatedly purchase consumables or services which are utilized within. Each instance of this placed capital represents an asset that we own. An estimate is made of the anticipated future revenue over its respective life which is ten years. If the payback period of the initial investment in the asset is less than the ten-year life of the asset, we conclude that the assets have been properly recorded, and no write-down is necessary. We rely on various data points and assumptions, including, but not limited to, the expected volume of consumables which will be sold, anticipated growth rates, and anticipated placements. Realization of the anticipated revenue is dependent on the current assumptions and forecasted models.
The customer is obligated to purchase consumables during the placement period. However, since the customer is not obligated to purchase the capital, and can return it at any time, we are exposed to a risk of loss to the extent the customer returns the capital and discontinues consumable or related service purchases.
On December 31, 2024, the carrying value of our Diagnostic instruments was $10,135. Significant assumptions included in the realization model are the rate of placement and expected utilization over the life of the instrument.
The effect of a 25% reduction in the estimated revenues associated with annual placements of instruments would increase the payback period on December 31, 2024 from 4.27 years to 5.77 years.
Revenue Recognition
The nature of our Therapeutic Device business segment gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. When revenue is recognized, a simultaneous adjustment for returns is estimated, reducing revenue. Estimated return credits are presented as a reduction to gross sales with the corresponding reserve presented as customer contract liabilities.
Variable consideration related to unused shock credits is calculated using the expected value method, which estimates the amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Estimates of variable consideration are based upon historical experience and known trends. These estimated credits are non-refundable and may only be used towards the purchase of future trode refurbishments. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, enabling the customer to always have a trode on hand with ample capacity to perform treatments.
The number of trodes returned by year is tracked against the number of trodes sold in that same year, creating a current experience rate. It is assumed that the ultimate return rate for the trodes is 98%. For annual calculations, it is assumed that the expected returns in the current year for each layer increase to the experience rate of the year immediately preceding it. Once the 98% is reached the layer is removed from the calculation. The annual incremental change in expected returns is multiplied by an average return credit amount, generating the current liability due to customers.
The average return credit is calculated by dividing the actual shock credits issued by the actual number of trodes returned. A variance in the assumed return rate compared to the actual rate would impact the estimate and potentially understate net sales (overestimated rate) or overstate net sales (underestimated rate) in any given year and create a corresponding misstatement of the liability due to customers.
Results of Consolidated Operations
Our results of operations for the years ended December 31, 2024 and 2023 are as follows:
Revenue
Revenue for the year ended December 31, 2024 was $27,285, compared to $25,186 for the year ended December 31, 2023, an increase of $2,099, or 8%.
The increase in revenue was primarily due to growth in both consumables and capital sales in our PulseVet® products, as well as growth in TRUFORMA® products, partially attributable to the launch of new assays during the current period, and the continued performance of VETGuardian® products, which had only recently launched during the prior year ended December 31, 2023. In general, we expect revenue to increase in subsequent periods as we increase our sales, marketing, and commercialization efforts.
Cost of Revenue
Cost of revenue for the year ended December 31, 2024 was $8,198, compared to $7,868 for the year ended December 31, 2023, an increase of $330, or 4%.
The increase in cost of revenue was primarily driven by increased manufacturing expenses resulting from higher unit sales. We anticipate that cost of revenue will continue to increase in future periods in line with the expected growth in unit sales, as described above.
Gross Profit
Gross profit margin for the year ended December 31, 2024 was 70%, compared to 69% for the year ended December 31, 2023.
The increase in gross profit margin percentage was primarily due to the current-year cost reduction realized from one-time restructuring actions taken during the prior year in connection with our transition of TRUFORMA® development following the October 2023 acquisition of QBT, improvements related to the integration of our Minnesota manufacturing facility, as well as the further absorption of fixed costs driven by increased unit sales.
General and Administrative
General and administrative expense for the year ended December 31, 2024 was $29,656, compared to $29,029 for the year ended December 31, 2023, an increase of $627, or 2%.
The increase in general and administrative expenses was primarily driven by professional fees for specialized accounting and development work, increased amortization and depreciation expense associated with acquisitions made in the second half of 2023, proxy and special meeting costs. These increases were partially offset by lower stock-based compensation expense and lower severance expenses related to restructuring actions in the previous year, which were non-recurring. While we expect general and administrative expenses to increase after excluding one-time items incurred during the current year, we anticipate that, relative to sales growth and product expansion, these expenses will decrease proportionally.
Research and Development
Research and development expense for the year ended December 31, 2024 was $7,268, compared to $5,744 for the year ended December 31, 2023, an increase of $1,524, or 27%.
The increase in R&D expenses was primarily driven by the continued buildup of internal capabilities to develop, test, and manufacture our next generation of diagnostic products, which included higher expenses for lab supplies and salaries associated with the QBT acquisition during the second half of 2023. We anticipate that R&D costs will increase as we maintain and enhance our current product lines and continue to develop new products.
Selling and Marketing
Selling and marketing expense for the year ended December 31, 2024 was $17,192, compared to $14,137 for the year ended December 31, 2023, an increase of $3,055, or 22%.
The increase in selling and marketing expenses was driven primarily by salaries and commissions, associated with increased hiring campaigns. We expect future selling and marketing expense to increase in line with product expansion and growth in our commercialization efforts.
Impairment Expense
Impairment expense for the year ended December 31, 2024 was $16,024, compared to $12,195 for the year ended December 31, 2023, an increase of $3,829, or 31%. The increase was due to the goodwill impairment recognized in the current year, driven by changes in future sales growth projections and the allocation of operating expenses.
Other Income
Other income for the year ended December 31, 2024 was $10, compared to $2,080 for the year ended December 31, 2023, a decrease of $2,070. The decrease was primarily due to a gain of $2,174 on the fair valuation of the Company’s previously held equity interest in SMP, which was recognized during the year ended December 31, 2023, but did not recur in the current period.
Net Loss
Net loss for the year ended December 31, 2024 was $46,982, compared to a net loss of $34,529 for the year ended December 31, 2023, an increase of $12,453, or 36%.
The net loss was attributed to the matters described above, as well as to tax-related benefits recognized during the year ended December 31, 2023, which were attained as part of the SMP acquisition. We expect to continue recording net losses in future periods until we have sufficient revenue from product sales to offset our operating expenses.
Cash Flows
The following table shows a summary of our cash flows for the periods set forth below:
Year Ended December 31,
Change
Cash used in operating activities
$
(23,630)
$
(15,975)
$
(7,655)
48%
Cash provided by investing activities
17,854
1,577
16,277
1032%
Cash used in financing activities
(70)
-
(70)
n/a
Decrease in cash and cash equivalents
(5,846)
(14,398)
8,552
(59)%
Effect of exchange rate changes on cash
(85)
(49)
(36)
73%
Cash and cash equivalents, beginning of period
12,952
27,399
(14,447)
(53)%
Cash and cash equivalents, end of period
$
7,021
$
12,952
$
(5,931)
(46)%
Net cash used in operating activities for the year ended December 31, 2024 was $23,630, compared to $15,975 for the year ended December 31, 2023, an increase in cash used of $7,655, or 48%. The increase in cash used in operating activities resulted primarily from the increase in operating expenses noted above, excluding the impact of non-cash charges, including stock-based compensation, impairment expense, and amortization of intangible assets.
Net cash provided by investing activities for the year ended December 31, 2024 was $17,854, compared to cash provided of $1,577 for the year ended December 31, 2023, a increase in cash provided of $16,277. The increase in cash provided by investing activities resulted primarily from cash paid as a part of the SMP and QBT acquisitions during the prior period, which did not recur, and decreased capital expenditures during the year ended December 31, 2024, partially offset by lower maturity of available-for-sale securities.
Net cash used in financing activities for the year ended December 31, 2024 was $70 as compared to $0 for the year ended December 31, 2023. The increase was attributable to stock option issuance costs paid during the year ended December 31, 2024.
Liquidity and Capital Resources
We have incurred losses and negative cash flows from operations since our inception in May 2015. As of December 31, 2024, we had an accumulated deficit of $217,915. We have funded our working capital requirements primarily through the sale of our equity and equity-related securities and the exercise of stock options and warrants.
As of December 31, 2024, the Company had working capital (defined as current assets minus current liabilities) of $72,442.
Short-Term Cash Requirements
We believe that our existing cash is sufficient to fund our expected short-term needs. We currently have fixed obligations in association with our building leases and quarterly inventory orders. We also have payment obligations associated with our on-going clinical studies, and we expect that we have sufficient cash to cover these requirements. We do not expect that our operations will require significant increases in our short-term cash needs.
Long-Term Cash Requirements
We believe that our existing cash resources will be sufficient to fund our expected operational requirements for the foreseeable future. We regularly evaluate our business plans and strategy. These evaluations often result in changes to our business plans and strategy,
some of which may be material and significantly change our cash requirements. Ongoing business development activity may also require us to use some of our liquidity and use of additional capital to fund newly acquired operations. If we raise additional funds by issuing equity securities, our existing security holders will likely experience dilution, and the incurring of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict operations.
Our future capital requirements depend on many factors, including, but not limited to:
● the costs and timing of our development and commercialization activities;
● the cost of manufacturing our existing and future products;
● the cost of marketing and selling our existing and future products, including marketing, sales, service, customer support and distribution costs;
● the expenses needed to attract and retain skilled personnel;
● the costs associated with being a public company;
● the costs associated with additional business development or mergers and acquisitions activity, including acquisition-related costs, earn-outs or other contingent payments and costs of developing and commercializing any technologies to which we obtain rights;
● third-party costs associated with the development and commercialization of our existing and future products and the ability of our development partners to satisfy our requirements on a timely basis;
● the scope and terms of our business plans from time to time, and our ability to realize upon our business plans; and
● the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing possible patent claims, including litigation costs and the outcome of any such litigation.
Outstanding Share Data
The only class of outstanding voting equity securities of the Company are the common shares. As of March 13, 2025:
● There are 979,949,668 common shares issued and outstanding;
● There are stock options outstanding under our Stock Option Plan to acquire an aggregate of 89,051,943 common shares;
● There are common share purchase warrants issued in February of 2020 that are outstanding and permit the holders to acquire an aggregate of 197,917 common shares at an exercise price of $0.1500 per share;
● There are common share purchase warrants issued in July of 2022 that are outstanding and permit the holders to acquire an aggregate of 363,501 common shares at an exercise price of $0.1500 per share;
● There are common share purchase warrants issued in July of 2022 that are outstanding and permit the holders to acquire an aggregate of 10,000,000 common shares at an exercise price of $0.2201 per share; and
● There are common share purchase warrants issued in July of 2022 that are outstanding and permit the holders to acquire an aggregate of 22,000,000 common shares at an exercise price of $0.2520 per share.
All currently outstanding warrants have a “cashless exercise” feature which is applicable in certain circumstances. The cashless exercise feature could result in the potential issuance of common shares based upon the “in-the-money” value of the applicable warrants at the time of exercise. The number of the common shares that may be issued is not determinable. However, the number of common shares that are issuable is based upon a formula that divides the “in-the-money” value by the then current market price and multiplying this result by the number of common shares that are issuable under the applicable warrants pursuant to cash exercise.
Recently Adopted Accounting Pronouncements
From time to time, the FASB or other standard setting bodies issue new accounting pronouncements. Updates to the FASB ASC are communicated through issuance of an ASU. Unless otherwise discussed, we believe that recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on our Consolidated Financial Statements upon adoption.
To understand the impact of recently issued guidance, whether adopted or to be adopted, please review the information provided in Note 3 - Significant Accounting Policies to the consolidated financial statements.
Climate Change
Increased public awareness and concern about climate change will likely continue to (1) generate more regional and/or national requirements to reduce greenhouse gas emissions; (2) increase energy efficiency and reduce carbon pollution; and (3) cause a shift to cleaner and more sustainable sources of energy which may be more expensive than using fossil fuels as an energy source.
The potential impact of climate change on our operations and the needs of our customers remains uncertain. Scientists have proposed that the impacts of climate change could include changes in rainfall patterns, water shortages, changes to the water levels of lakes and other bodies of water, changing storm patterns, more intense storms and changing temperature levels. These changes could be severe and vary by geographic location. Climate change may also affect the occurrence of certain natural events, the incidence and severity of which are inherently unpredictable.
The effects of climate change also may impact our decisions to construct new buildings or maintain existing facilities in any areas that are or become prone to physical risks, which could similarly increase our operating costs. We could also face indirect financial risks passed through the supply chain that could result in higher prices for resources, such as energy. Additionally, climate change may adversely impact the demand, price and availability of property and casualty insurance that insures our physical assets. Due to significant economic variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on us in the future.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Item 8. Financial Statements and Supplementary Data
See pages through following the Exhibit Index of this Annual Report on Form 10-K.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None

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ITEM 9A. CONTROLS AND PROCEDURES
Item 9A. Controls and Procedures
Evaluation of disclosure controls and procedures
We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer, as appropriate to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Annual Report was made under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer.
Based upon that evaluation, our principal executive officer and principal financial and accounting officer concluded that our disclosure controls and procedures were effective as of December 31, 2024.
Management's report on internal control over financial reporting
Our management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. This system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with GAAP. Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, misstatements due to error or fraud may not be prevented or detected on a timely basis.
Our management performed an assessment of the effectiveness of our internal control over financial reporting as of December 31, 2024, utilizing the criteria discussed in the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our management concluded that our internal control over financial reporting was effective as of December 31, 2024.
Changes in internal control over financial reporting
Except as discussed above, there were no changes in internal control over financial reporting during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
Item 9B. Other Information
None.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Item 10. Directors, Executive Officers and Corporate Governance
The information called for by this item will be set forth in our Proxy Statement for the 2025 Annual Meeting of Shareholders, (“Proxy Statement”), to be filed with the SEC within 120 days of the fiscal year ended December 31, 2024 and is incorporated herein by reference.

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ITEM 11. EXECUTIVE COMPENSATION
Item 11. Executive Compensation
The information called for by this item will be set forth in our Proxy Statement and is incorporated herein by reference.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information called for by this item will be set forth in our Proxy Statement and is incorporated herein by reference.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Item 13. Certain Relationships and Related Transactions, and Director Independence
The information called for by this item will be set forth in our Proxy Statement and is incorporated herein by reference.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Item 14. Principal Accounting Fees and Services
The information called for by this item will be set forth in our Proxy Statement and is incorporated herein by reference.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
Item 15. Exhibits, Financial Statement Schedules.
(a) The following documents are included in this Annual Report on Form 10-K
(1)-(2) Financial Statements
Index to Consolidated Financial Statements
Report of the Independent Registered Public Accounting Firm (Grant Thornton, PCAOB ID number 248)
Consolidated Balance Sheets as of December 31, 2024 and 2023
Consolidated Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2024 and 2023
Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2024 and 2023
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023
Notes to the Consolidated Financial Statements
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Shareholders
Zomedica Corp.
Opinion on the financial statements
We have audited the accompanying consolidated balance sheets of Zomedica Corp. (an Alberta, Canada corporation) and subsidiaries (the “Company”) as of December 31, 2024 and 2023, the related consolidated statements of operations and comprehensive loss, shareholders’ equity, and cash flows for each of the two years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
Basis for opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical audit matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Goodwill Impairment Analysis
As described further in Notes 4 and 12 to the consolidated financial statements, goodwill is evaluated for impairment annually or more frequently when an event occurs or circumstances change indicating the carrying value may not be recoverable. The Company performs a quantitative test to measure the fair values of the reporting units and compares them to their aggregate carrying values, including goodwill. The fair values are estimated using a weighted combination of a discounted cash flow method and a market-based method which include significant assumptions such as financial projections of free cash flow which includes key assumptions of revenue growth, operating income and discount rates. We identified goodwill impairment analysis as a critical audit matter.
The principal consideration for our determination that the goodwill impairment analysis is a critical audit matter is the high degree of auditor judgment necessary in evaluating certain inputs and assumptions made by management in the valuation models used to determine the fair value of the reporting units. Those key assumptions include forecasted revenue growth, operating income, and discount rates.
Our audit procedures related to the goodwill impairment analysis included the following, among others.
•We evaluated the design and implementation of relevant controls within the Company’s process to perform the goodwill impairment analysis, including the Company’s control over the selection and review of the reasonableness of assumptions used in determining fair value.
•We evaluated the reasonableness of the Company’s forecasted revenue growth and operating income by comparing these assumptions to historical operating results for the reporting units and relevant available industry and market data.
•We involved valuation specialists to evaluate the reasonableness of the discount rate used in the discounted cash flow model to determine fair value. The valuation specialists compared the discount rates used to value the reporting units to independently developed discount rates derived from publicly available data and re-performed the discounted cash flow calculations.
/s/ GRANT THORNTON LLP
We have served as the Company’s auditor since 2021.
Southfield, Michigan
March 13, 2025
Zomedica Corp.
Consolidated Balance Sheets
(United States Dollars in Thousands)
December 31,
December 31,
Assets
Current assets
Cash and cash equivalents
$
7,021
$
12,952
Available-for-sale securities
64,332
77,545
Trade receivables, net
2,423
1,197
Inventory, net
5,058
5,123
Prepaid expenses and deposits
2,291
2,064
Other receivables
1,001
Total current assets
81,773
99,882
Prepaid expenses and deposits
Property and equipment, net
24,589
22,828
Right-of-use assets
1,611
2,466
Goodwill
45,556
61,580
Intangible assets, net
52,538
55,364
Noncurrent available-for-sale securities
-
10,005
Other assets
1,100
Total assets
$
207,360
$
253,197
Liabilities and shareholders’ equity
Current liabilities
Accounts payable
$
1,929
$
2,068
Accrued income taxes
Current portion of lease obligations
Customer contract liabilities
Accrued expenses and other current liabilities
6,431
5,707
Total current liabilities
9,331
9,032
Lease obligations
1,291
1,814
Deferred tax liabilities, net
1,138
Customer contract liabilities
Other liabilities
Total liabilities
$
11,696
$
13,180
Commitments and contingencies (Note 17)
Shareholders’ equity
Unlimited common shares, no par value; 979,949,668 issued and outstanding at December 31, 2024 and December 31, 2023
$
380,973
$
380,973
Additional paid-in capital
32,518
29,929
Accumulated deficit
(217,915)
(170,933)
Accumulated comprehensive income
Total shareholders' equity
195,664
240,017
Total liabilities and shareholders’ equity
$
207,360
$
253,197
The accompanying notes are an integral part of these consolidated financial statements.
Zomedica Corp.
Consolidated Statements of Operations and Comprehensive Loss
(United States Dollars in Thousands, Except for Per Share Data)
Year Ended December 31,
Net revenue
$
27,285
$
25,186
Cost of revenue
8,198
7,868
Gross profit
19,087
17,318
Expenses
General and administrative
29,656
29,029
Research and development
7,268
5,744
Selling and marketing
17,192
14,137
Impairment expense
16,024
11,683
Loss from operations
(51,053)
(43,275)
Interest income
3,966
5,458
Interest expense
-
(175)
(Loss) gain on disposal of assets
(210)
Other income, net
2,080
Foreign exchange (loss) gain
(252)
Loss before income taxes
(47,539)
(35,860)
Income tax benefit
(557)
(1,331)
Net loss
(46,982)
(34,529)
Unrealized gain, change in fair value of available-for-sale securities, net of tax
Change in foreign currency translation
(92)
(45)
Net loss and comprehensive loss
$
(46,942)
$
(33,638)
Weighted average number of common shares - basic and diluted
979,949,668
979,949,668
Loss per share - basic and diluted (Note 19)
$
(0.05)
$
(0.04)
The accompanying notes are an integral part of these consolidated financial statements.
Zomedica Corp.
Consolidated Statements of Shareholders’ Equity
(United States Dollars in Thousands)
Common
Additional
Accumulated
Common Stock
Stock
Paid-In
Accumulated
Comprehensive
Shares
Amount
Subscribed
Capital
Deficit
Income (Loss)
Total
Balance at December 31, 2022
979,949,668
$
380,973
$
-
$
23,666
$
(136,404)
$
(843)
$
267,392
Stock-based compensation
-
-
-
6,263
-
-
6,263
Net loss
-
-
-
-
(34,529)
-
(34,529)
Other comprehensive loss
-
-
-
-
-
Balance at December 31, 2023
979,949,668
$
380,973
$
-
$
29,929
$
(170,933)
$
$
240,017
Stock-based compensation
-
-
-
2,659
-
-
2,659
Stock issuance costs
-
-
(70)
-
-
(70)
Net loss
-
-
-
-
(46,982)
-
(46,982)
Other comprehensive income
-
-
-
-
-
Balance at December 31, 2024
979,949,668
$
380,973
$
-
$
32,518
$
(217,915)
$
$
195,664
The accompanying notes are an integral part of these consolidated financial statements.
Zomedica Corp.
Consolidated Statements of Cash Flows
(United States Dollars in Thousands)
Year Ended December 31,
Cash flows from operating activities:
Net loss
$
(46,982)
$
(34,529)
Adjustments for:
Depreciation
1,545
Amortization - intangible assets
6,441
5,468
Impairment loss
16,024
11,683
Gain (loss) on disposal of property and equipment
(24)
Loss on conversion of notes receivable
-
(2,174)
Stock-based compensation
2,778
6,263
Noncash portion of rent benefit (expense)
(61)
Accretion/amortization of available-for-sale securities
(1,991)
(2,209)
Equity in earnings of nonconsolidated entities
-
Deferred tax expense
(682)
(1,489)
Change in assets and liabilities, net of acquisitions:
Purchased inventory
(205)
(1,059)
Prepaid expenses and deposits
(178)
1,499
Trade receivables
(1,227)
(617)
Other receivables
Accounts payable
(200)
Accrued income tax
(125)
Deferred tax liabilities
-
Accrued expenses and other current liabilities
Customer contract liabilities
Other liabilities
(545)
(761)
Net cash used in operating activities
(23,630)
(15,975)
Cash flows from investing activities:
Securities matured
25,084
42,775
Investment in nonconsolidated entities
(437)
-
Investment in debt security (at fair value)
-
(1,750)
Investment in property and equipment
(5,212)
(11,339)
Acquisition of intangibles
(1,581)
(4,150)
Investment in acquisitions, net of cash acquired (SMP and QBT)
-
(23,959)
Net cash provided by investing activities
17,854
1,577
Cash flows from financing activities:
Stock issuance costs paid
(70)
-
Net cash used in financing activities
(70)
-
Decrease in cash and cash equivalents
(5,846)
(14,398)
Effect of exchange rate changes on cash
(85)
(49)
Cash and cash equivalents, beginning of year
12,952
27,399
Cash and cash equivalents, end of period
$
7,021
$
12,952
Noncash activities:
Change in fair value of available-for-sale securities, net of tax
$
$
Property and equipment accrued for in accounts payable
Transfer of property and equipment into intangibles
2,034
3,494
Transfer of inventory into property and equipment
Supplemental cash flow information:
Interest received on available-for-sale securities
$
2,284
$
3,317
The accompanying notes are an integral part of these consolidated financial statements.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
1. Nature of Operations
Zomedica Corp. (“Zomedica” or the “Company”) is a veterinary health company creating products for companion animals by focusing on the unmet needs of clinical veterinarians. The Company consists of the parent company, Zomedica Corp., its wholly owned U.S subsidiary, Zomedica Inc., and the wholly owned subsidiaries of Zomedica Inc. See Exhibit 21.1 for a listing of all subsidiaries.
2. Basis of Preparation
Principles of Consolidation
The consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. Intercompany transactions and balances between consolidated businesses have been eliminated.
The accounting policies set out below have been applied consistently in the consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
3. Significant Accounting Policies
Basis of Measurement
The consolidated financial statements have been prepared on the historical cost basis except as otherwise noted.
Business Combinations
We account for business combinations in accordance with ASC 805, Business Combinations (“ASC 805”), if the acquired assets assumed and liabilities incurred constitute a business. We consider acquired companies to constitute a business if the acquired net assets and processes have the ability to create outputs in the form of revenue. For acquired companies constituting a business, we recognize the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognize any excess of total consideration paid over the fair value of the identifiable net assets as goodwill.
Estimates and Assumptions
In preparing these financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of industry trends, information provided by our customers and suppliers, and other available external sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. However, our estimates may change as new events occur and additional information becomes available. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements.
Functional and Reporting Currencies
The functional currency for Canada and our subsidiaries in the United States and Switzerland is U.S. dollars, which is also our reporting currency.
The functional currency for our Japanese subsidiary, as determined by management, is the Japanese Yen. The Japanese Yen is translated for financial reporting purposes, with translation gains and losses recorded as a component of other comprehensive income or loss.
With respect to transactions denominated in currencies other than the functional currencies of the Company and its wholly owned operating subsidiaries, monetary assets and liabilities are remeasured at the period-end rates. Revenue and expenses are measured at the exchange rates prevailing on the transaction dates. All exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations and comprehensive loss.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Comparative Figures
To better align with how we track our business, we have reclassified construction in progress, combining it with property and equipment and presenting the total as “Property and equipment, net” on the consolidated balance sheets for the fiscal year ended December 31, 2024. The consolidated balance sheets for the year ended December 31, 2023, have been adjusted to align with the current presentation. The change had no impact on the reported results in our balance sheets and does not affect previously reported cash flows from investing activities in the consolidated statements of cash flows.
To further enhance the transparency of our financial reporting, we have reclassified “Accounts payable” as its own line item, separating it from “Accounts payable and accrued liabilities.” Furthermore, we combined the accrued liabilities portion of “Accounts payable and accrued liabilities” with amounts previously included in “Other current liabilities” into a new line item, “Accrued expenses and other current liabilities”, to provide a comprehensive view of these obligations as of December 31, 2024. This presentation is supported by Note 10, “Accrued Expenses and Other Current Liabilities”, in the Notes to the Consolidated Financial Statements. The consolidated balance sheets for the year ended December 31, 2023, have been adjusted to align with the current presentation. The change in presentation had no impact on the reported results in our balance sheets and does not affect previously reported cash flows from operating activities in the consolidated statements of cash flows. Refer to Note 10 for further details.
We have corrected an immaterial classification error by revising the presentation of impairment expense, which was previously included in loss before income taxes, to loss from operations for the fiscal year ended December 31, 2024. The consolidated statements of operations and comprehensive loss for the year ended December 31, 2023, have been adjusted to conform to the current year presentation. This correction had no impact on previously reported net loss or cash flows from operating activities in the consolidated statements of cash flows.
Recently Adopted Accounting Pronouncements
In November 2024, the FASB issued Accounting Standards Update (“ASU”) 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures to disaggregate costs and expense line items presented on the face of the consolidated statements of operations and comprehensive loss. These disclosures include: (a) amounts related to purchased inventory, employee compensation, depreciation, amortization, and other significant components of costs and expenses; (b) an explanation of costs and expenses that are not disaggregated quantitatively; and (c) the definition and total amount of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public entities with fiscal years beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The key amendments include: (a) introducing a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker (“CODM”), (b) extending certain annual disclosures to interim periods, (c) clarifying that single reportable segment entities must apply ASC 280 in its entirety, (d) permitting more than one measure of segment profit or loss to be reported under certain conditions, and (e) requiring disclosure of the title and position of the CODM. This ASU is effective for public entities with fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this guidance in the fourth quarter of fiscal 2024. The adoption did not have a material impact on the consolidated financial statements.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Segment Reporting
The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s reportable segments consist of Diagnostics and Therapeutic Devices.
Cash and Cash Equivalents
The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. As of December 31, 2024 and 2023, the Company's cash balances exceeded federally insured limits by approximately $1,376 and $1,308.
Investment Securities
Our investment securities, which are comprised of corporate bonds/notes and US treasuries, are accounted for in accordance with ASC 320, Investments - Debt Securities (“ASC 320”). The Company considers all of its securities for which there is a determinable fair market value, and there are no restrictions on the Company’s ability to sell within the next twelve months, as available for sale. We classify these securities as both current and non-current depending on their time to maturity. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported as a component of comprehensive loss.
Accounts Receivable and Allowance for Credit Losses
Accounts receivables are recorded net of an allowance for credit losses and have payment terms of 30 days. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries, and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. For the years ended December 31, 2024 and 2023, our allowances were $371 and $103, respectively, and were recorded net in trade receivables. While we believe that our allowance for credit losses is adequate and represents our best estimate as of December 31, 2024, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to these estimates.
Inventories
Inventories are stated at the lower of cost or net realizable value. The Company utilizes the specific identification and First in, First out ("FIFO") method to track inventory costs. The Company records reserves, when necessary, to reduce the carrying value of inventory to its net realizable value. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.
Property and Equipment
Property and equipment are carried at historical cost less accumulated depreciation and any accumulated impairment losses. Property and equipment acquired in a business combination are recorded at fair value as of the date of acquisition. Maintenance and repair expenditures that do not improve or extend the life are expensed in the period incurred.
Depreciation is recognized so as to write off the cost less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis.
An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
Included in property and equipment is construction in progress (“CIP”), which consists of property and equipment that are purchased or constructed and require time before being ready for their intended use. CIP is recorded at acquisition cost, including directly attributable
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
installation costs. No depreciation is recorded on CIP until assets are complete and ready for use, at which point CIP balances are transferred to the appropriate property and equipment accounts, and depreciation begins in accordance with our policy.
Estimated useful lives for the principal asset categories are as follows:
Furniture and fixtures
5-7 years
Laboratory equipment
5-7 years
Machinery and equipment
3-20 years
Leasehold improvements
Over shorter of estimated useful life or lease term
Leases
We determine if an arrangement is a lease at inception, in accordance with ASC 842, Leases, (“ASC 842”). All operating lease commitments with a lease term greater than 12 months are recognized as right-of-use (ROU) assets and lease liabilities, measured at the present value of future lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are expensed on a straight-line basis over the lease term.
We primarily enter into manufacturing and office space leases, which may include options to extend. Our lease agreements do not contain any material residual value guarantees or restrictive covenants.
ROU assets represent our right to control the use of an explicitly or implicitly identified fixed asset for a period of time and lease liabilities represent our obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to us if we obtain the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset.
Lease liabilities are measured using the rate implicit in the lease, if readily determinable. If not, we use our incremental borrowing rate (IBR) based on available information at lease commencement. Lease payments included in the measurement of lease liabilities consist of fixed payments. Our leases contain non-lease components and activities that do not transfer a good or service to us. These were not considered components of the contract and, therefore, were not included in the net ROU assets or lease liabilities.
The lease term includes the non-cancelable period plus any renewal options that we are reasonably certain to exercise.
Intangible Assets
Definite-lived intangible assets include acquired customer relationships, developed technology, licenses, trademarks, and tradenames. These assets are capitalized at cost and amortized on a straight-line basis over their estimated useful lives. Definite-lived intangible assets, whether acquired in a business combination or separately, are recorded at cost, net of accumulated amortization and any impairment losses. The estimated useful lives and amortization methods are reviewed annually, with any changes applied prospectively.
Expenditures for the planning and ongoing operation of the Company’s website are expensed as incurred. Costs incurred for website application development and infrastructure enhancements are capitalized and amortized over their estimated useful life..
Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. These assets are not amortized but are assessed for impairment at least annually, or more frequently if events or circumstances indicate potential impairment.
E-commerce technology
2 years
Computer software and website
3-5 years
Non-compete agreements
3 years
Tradenames
5-19 years
Developed technology
10-15 years
Customer relationships
11-19 years
Trademarks
15 years
Licenses
Over shorter of estimated useful life or license term
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Impairment of Long-Lived and Indefinite-Lived Intangible Assets
The Company evaluates long-lived assets, including property, equipment, and definite-lived intangible assets, for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. If the sum of estimated undiscounted future cash flows expected to be generated by an asset or asset group is less than its carrying value, an impairment loss is recognized. The impairment loss is measured as the excess of the asset’s carrying amount over its fair value.
Indefinite-lived intangible assets are tested for impairment at least annually or when impairment indicators arise. If the carrying amount exceeds the fair value, an impairment loss is recognized.
Revenue Recognition
The Company enters into agreements which may contain multiple promises where customers purchase products, services, or a combination thereof. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires judgment. We determine the transaction price for a contract based on the total consideration we expect to receive in exchange for the transferred goods or services.
The Company allocates revenue to each performance obligation in proportion to the relative standalone selling prices and recognizes revenue when control of the related goods or services is transferred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the performance obligation when sold separately.
The Company's contracts with customers are generally comprised of purchase orders for the sale of the point of care instrument, consumable products, and extended warranties, or some variation thereof. The instrument and consumables each represent a single performance obligation when sold separately, that is satisfied at a point in time upon transfer of control of the product to the customer which is typically upon receipt of the goods by the customer. The extended warranties are also a separate performance obligation, whereby revenue is recognized over time.
The Company also enters into contracts with customers where it receives payment for the consumable products and does not receive additional or separate consideration for the use of the point of care instrument furnished by the Company for the clinical veterinarian’s use. For these contracts, the Company considers the guidance under ASC 842 in order to determine if the furnishing of the point of care instrument to the customer during the period of use creates an embedded lease. If the point of care instrument is identified as a lease, it is classified as an operating lease as it does not meet any of the finance lease criteria per ASC 842. In these arrangements, the consumable products are classified as non-lease components. The Company allocates revenue to these lease and non-lease components based on standalone selling prices or, if not available, a cost-plus approach. Revenue related to the lease component is recognized ratably over the term of the contract. Revenue related to the non-lease components is recognized when control of the product has been transferred to the customer.
The nature of the Company’s PulseVet® business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are based upon historical experience and known trends. These estimated credits are nonrefundable and may only be used towards the purchase of future trode refurbishments. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode on hand with ample capacity to perform treatments.
At times, the Company receives consideration prior to when the performance obligation is completed, giving rise to a contract liability. Sales are recorded net of sales tax. Sales tax is charged on sales to end users and remitted to the appropriate state authority.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Disaggregated revenue for the years ended December 31, 2024 and 2023 is as follows:
Year Ended December 31,
Diagnostics
Therapeutic
Devices
Consolidated
Capital
$
1,137
$
$
8,354
$
8,179
$
9,491
$
8,788
Consumables
1,296
16,367
15,545
17,663
16,313
Other
-
-
Total revenue
$
2,433
$
1,377
$
24,852
$
23,809
$
27,285
$
25,186
Cost of Revenue
Cost of goods sold consists of overhead, materials, labor, shipping costs, and a portion of depreciation incurred internally to produce and receive the products. Shipping and handling costs incurred by the Company are included in cost of revenue.
Research and Development
Research and development costs related to continued R&D programs are expensed as incurred.
Stock-Based Compensation
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation, (“ASC 718”). Stock-based compensation expense is recognized for awards granted to employees and directors based on the fair value of the awards on the grant date. The Company’s stock-based compensation includes stock options, which are classified as equity awards, and stock appreciation rights (SARs), which are classified as liability awards.
The Company calculates stock-based compensation for stock options using the fair value method. The fair value of stock options at the grant date is determined using the Black-Scholes Option Pricing Model. The resulting fair value is recognized as compensation expense over the vesting period of the award using the graded vesting method. The Company’s stock option plans do not require the settlement of awards by transferring cash or other assets. Therefore, stock options are classified as equity awards. Compensation expense recognized during the period reflects the fair value of stock-based payment awards that are ultimately expected to vest. In accordance with ASC 718, the Company recognizes forfeitures of employee awards as they occur.
The Company accounts for SARs under ASC 718 as liability-classified awards because they are settled solely in cash and do not result in the issuance of equity. The fair value of SARs is measured at the grant date and remeasured at each reporting date until settlement. Changes in fair value are recognized as compensation expense in the consolidated statement of operations in the period of remeasurement. The fair value of SARs is determined using the Black-Scholes Option Pricing Model, incorporating significant assumptions such as expected stock price volatility, expected term of the award, and risk-free interest rate.
SARs vest over the defined vesting period, and compensation expense is recognized based on the proportion of the vesting period that has elapsed. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the SAR.
Income Taxes
The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), on a tax jurisdictional basis. The Company files income tax returns in Canada and the province of Alberta and its subsidiaries file income tax returns in Switzerland, Japan, the United States and various states within, including in Michigan where the Company’s headquarters are located.
Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their financial statement reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
The Company assesses the likelihood of the financial statement effect of an uncertain tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in the United States, Canada, Japan, and Switzerland. The Company recognizes tax-related interest and penalties, if any, as a component separate from income tax expense.
Comprehensive Loss
Our comprehensive loss is reported in accordance with ASC 220, Income Statement - Reporting Comprehensive Income (“ASC 220”). Comprehensive loss is net loss plus certain items that are recorded directly to shareholders’ equity. The Company has recorded a currency translation adjustment associated with the translation of its Japanese subsidiary to the reporting currency.
Loss Per Share
Basic loss per share (“EPS”) is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options is excluded from diluted EPS if the effect of such inclusion would be anti-dilutive.
4. Critical Accounting Judgments and Key Sources of Estimation Uncertainty
The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and further periods if the revision affects both current and future periods.
Critical areas of estimation and judgements in applying accounting policies include the following:
Intangible Assets and Business Combinations
Assets acquired and liabilities assumed as part of a business combination are recognized at their acquisition date fair values. In determining these fair values, we utilize various forms of the income, cost, and market approaches depending on the asset or liability being valued.
We use a discounted cash flow model to measure the customer relationship, developed technology, license, trademark, and tradename assets. The estimation of fair value requires significant judgment related to future net cash flows based on assumptions related to revenue and EBITDA growth rates, discount rates, and attrition factors. Inputs are generally determined by taking into account competitive trends, market comparisons, independent appraisals, and historical data, among other factors, and are supplemented by current and anticipated market conditions.
Impairment Testing
We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change indicating the carrying value may not be recoverable. When testing goodwill for impairment, we may first assess qualitative factors to determine if it is more likely than not the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, we consider the impact of changes, if any, to the following factors: macroeconomic, industry and market factors; cost factors; changes in overall financial performance; and any other relevant events and uncertainties impacting a reporting unit. If our qualitative assessment indicates a goodwill impairment is more likely than not, we perform additional quantitative analyses. We may also elect to skip the qualitative testing and proceed directly to the quantitative testing. For reporting units where a quantitative analysis is performed, we perform a test
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
measuring the fair values of the reporting units and comparing them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, an impairment is recognized for the difference, up to the carrying amount of goodwill.
We estimate the fair values of our reporting units using a discounted cash flow method or a weighted combination of discounted cash flows and a market-based method. The discounted cash flow method includes assumptions about a wide variety of internal and external factors. Significant assumptions used in the discounted cash flow method include financial projections of free cash flow, including revenue trends, medical costs trends, operating productivity, income taxes and capital levels; long-term growth rates for determining terminal value beyond the discretely forecasted periods; and discount rates. Financial projections and long-term growth rates used for our reporting units will be consistent with, and use inputs from, our internal long-term business plan and strategies.
Discount rates will be determined for each reporting unit and include consideration of the implied risk inherent in their forecasts. Our most significant estimate in the discount rate determinations involves our adjustments to the peer company weighted average costs of capital reflecting reporting unit-specific factors. We do not make any adjustments to decrease a discount rate below the calculated peer company weighted average cost of capital for any reporting unit. Company-specific adjustments to discount rates are subjective and thus are difficult to measure with certainty.
The passage of time and the availability of additional information regarding areas of uncertainty with respect to the reporting units’ operations could cause these assumptions to change in the future. Additionally, as part of our quantitative impairment testing, we perform various sensitivity analyses on certain key assumptions, such as discount rates, cash flow projections, and peer company multiples to analyze the potential for a material impact. The market-based method requires determination of an appropriate peer group whose securities are traded on an active market. The peer group is used to derive market multiples to estimate fair value.
Valuation and Payback of Property and Equipment
Diagnostic based TRUFORMA® capital is placed in fixed assets once purchased or manufactured, where they remain, undepreciated, until they are placed with our customers under the agreement that they will repeatedly purchase consumables or services which are utilized within. Each instance of this placed capital represents an asset that we own. An estimate is made of the anticipated future revenue over its respective life which is ten years. If the payback period of the initial investment in the asset is less than the ten-year life of the asset, we conclude that the assets have been properly recorded, and no write-down is necessary. We rely on third-party data that considers various data points and assumptions, including, but not limited to, the expected volume of consumables which will be sold, anticipated growth rates, and anticipated placements. Realization of the anticipated revenue is dependent on the current assumptions and forecasted models.
Revenue Recognition
The nature of the Company’s business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are estimated based upon historical experience and known trends. These estimated credits are non-refundable and may only be used towards the purchase of future trode refurbishments. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode at hand with ample capacity to perform treatments.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
5. Investment Securities
The following represents the Company’s investment securities for the years ended December 31, 2024 and 2023:
Balance at December 31, 2024
Acquisition
Cost
Accretion /
(Amortization)
Unrealized
Gain / (Loss)
Estimated
Fair Value
Commercial paper
$
10,130
$
$
$
10,387
Corporate notes / bonds
45,336
45,826
Money market funds
2,766
-
-
2,766
U.S. govt. agencies
1,441
(2)
1,470
U.S. treasuries
6,609
(1)
6,649
Total investment securities
$
66,282
$
$
$
67,098
Balance at December 31, 2023
Acquisition
Cost
Accretion /
(Amortization)
Unrealized
Gain / (Loss)
Estimated
Fair Value
Commercial paper
$
15,681
$
$
$
15,986
Corporate notes / bonds
45,954
(75)
46,493
Money market funds
5,374
-
-
5,374
U.S. govt. agencies
18,076
(33)
18,165
U.S. treasuries
10,282
(36)
10,402
Total investment securities
$
95,367
$
1,177
$
(124)
$
96,420
Accretion / (amortization) refers to the discounts and premiums incurred on bonds and notes purchased and are included within interest income on our consolidated income statement.
Accrued interest receivable, related to the above investment securities, amounted to $504 and $586 for the years ended December 31, 2024 and 2023 and are included within Other Receivables on our consolidated balance sheets.
Contractual maturities of investment securities as of December 31, 2024 are as follows:
Acquisition
Cost
Estimated
Fair Value
Original maturities of 90 days or less
$
2,765
$
2,766
Original maturities of 91-365 days
63,517
64,332
Original maturities of 366+ days
-
-
Total investment securities
$
66,282
$
67,098
6. Fair Value Measurements
In accordance with FASB ASC 820, Fair Value Measurement (“ASC 820”), the Company measures its cash and cash equivalents and investments at fair value on a recurring basis. The Company also measures certain assets and liabilities at fair value on a non-recurring basis when applying acquisition accounting.
ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.
As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
Level 1:
Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Level 2:
Observable inputs other than quoted prices included in Level 1 for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.
Level 3:
Unobservable data points for the assets or liability, and include situations where there is little, if any, market activity for the asset or liability. Valuations based on inputs that are unobservable and involve management judgement and the reporting entity’s own assumptions about market participants and pricing.
Cash and cash equivalents, accounts receivable, and accounts payable: The carrying amount of these assets approximate fair value due to the short maturity of these instruments. Cash and cash equivalents include marketable securities with an original maturity within 90 days.
Available-for-sale securities: The Company classifies marketable securities and other highly liquid investments, with a maturity of greater than three months and that can be readily purchased or sold using established markets, as available-for-sale. These investments are reported at fair value on the Company’s consolidated balance sheets and unrealized gains and losses are reported as a component of shareholders’ equity.
In accordance with the fair value hierarchy described above, the following table shows the fair value of our investments as of December 31, 2024 and December 31, 2023:
Balance at December 31, 2024
Level 1
Level 2
Level 3
Estimated
Fair Value
Commercial paper
$
-
$
10,387
$
-
$
10,387
Corporate notes / bonds
-
45,826
-
45,826
Money market funds
2,766
-
-
2,766
U.S. govt. agencies
1,470
-
-
1,470
U.S. treasuries
6,649
-
-
6,649
Total investment securities
$
10,885
$
56,213
$
-
$
67,098
Balance at December 31, 2023
Level 1
Level 2
Level 3
Estimated
Fair Value
Commercial paper
$
-
$
15,986
$
-
$
15,986
Corporate notes / bonds
-
46,493
-
46,493
Money market funds
5,374
-
-
5,374
U.S. govt. agencies
18,165
-
-
18,165
U.S. treasuries
10,402
-
-
10,402
Total investment securities
$
33,941
$
62,479
$
-
$
96,420
The following table shows these same investments and their respective balance sheet classifications:
Balance at December 31, 2024
Cash &
Cash Equivalents
Available-
For-Sale
(Current)
Available-
For-Sale
(Non-Current)
Estimated
Fair Value
Commercial paper
$
-
$
10,387
$
-
$
10,387
Corporate notes / bonds
-
45,826
-
45,826
Money market funds
2,766
-
-
2,766
U.S. govt. agencies
-
1,470
-
1,470
U.S. treasuries
-
6,649
-
6,649
Total investment securities
$
2,766
$
64,332
$
-
$
67,098
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Balance at December 31, 2023
Cash &
Cash Equivalents
Available-
For-Sale
(Current)
Available-
For-Sale
(Non-Current)
Estimated
Fair Value
Commercial paper
$
-
$
15,986
$
-
$
15,986
Corporate notes / bonds
-
36,973
9,520
46,493
Money market funds
5,374
-
-
5,374
U.S. govt. agencies
-
17,680
18,165
U.S. treasuries
3,496
6,906
-
10,402
Total investment securities
$
8,870
$
77,545
$
10,005
$
96,420
Unrealized gains on our investments have not been recorded into income as we do not intend to sell nor is it more likely than not that we will be required to sell these investments prior to recovery of their amortized cost basis. The decline in fair value of our debt securities is largely due to the rising interest rate environment driven by current market conditions that have resulted in higher credit spreads. The credit ratings associated with our debt securities are mostly unchanged, are highly rated, and the debtors continue to make timely principal and interest payments. As a result, there were no credit or non-credit impairment charges recorded through December 31, 2024.
7. Business Combinations
All of the Company’s acquisitions of businesses have been accounted for under ASC 805. Accordingly, the assets of the acquired companies reflect the fair values and have been included in the Company’s Consolidated Financial Statements from their respective dates of acquisition. The results of operations of Revo Squared LLC, Assisi Animal Health, LLC, Structured Monitoring Products, Inc., and Qorvo Biotechnologies, LLC have been included in the Company’s Consolidated Financial Statements since the dates of acquisition on June 14, 2022, July 15, 2022, September 4, 2023, and October 4, 2023 respectively.
2023 Acquisitions
Stock Purchase Agreement with Structured Monitoring Products, Inc.
On September 4, 2023, Zomedica Inc., a wholly owned subsidiary of Zomedica Corp. (the “Company”), entered into a Stock Purchase Agreement with Structured Monitoring Products, Inc.(“SMP”), pursuant to which Zomedica Inc. acquired 100% of the capital stock of SMP, a Florida corporation. SMP is the maker of VETGuardian®, a zero-touch vital signs remote monitoring system that improves the quality of care for pets during recovery from surgery and for those staying in clinic overnight. The system provides real-time remote monitoring of the pet’s vital signs with the ability to alert staff if the vital signs fall outside preset ranges (the “Acquisition”). The Acquisition was consummated on September 5, 2023.
In connection with the Acquisition, the Company converted $2,750 in convertible debt and accrued interest of $171 owed by SMP to the Company into equity totaling 28.7% outstanding equity of SMP, which has an implied value of $5,095 based upon the SMP’s enterprise value of $18,000. Zomedica paid a purchase price of $12,952 for the balance of 71.3% equity of SMP. The cash purchase price was funded through a $250 deposit previously paid to SMP and $12,702 of cash on hand. At closing, Zomedica deposited $1,295 into escrow, which will be released to the parties following the closing, based on any adjustments to the purchase price for net working capital, cash, indebtedness and transaction expenses of SMP.
As a result of total consideration exceeding the preliminary fair value of the net assets acquired, goodwill in the amount of $9,796 was recorded in connection with the Acquisition, none of which will be deductible for U.S tax purposes. The goodwill is mainly attributable to skills and technical talent of SMP’s work force and the synergies expected to be achieved from integrating SMP into the Company’s existing business.
The previously held equity interests were remeasured to its fair value as of the acquisition date. The Company computed the fair value based upon the SMP’s enterprise value of $18,000 and the fair value of previously held 28.7% equity interests were determined to be $5,095. The Company recognized an amount of $2,174 as a gain on the fair valuation of Company’s previously held equity interest in SMP and is included in other income (loss) in the accompanying consolidated statements of operations and comprehensive loss for the period ended December 31, 2023.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
The following table summarizes the final fair value amounts of identifiable assets acquired and liabilities assumed at the acquisition date:
Initial
Allocation of
Consideration
Cash and cash equivalents
$
Trade receivables, net(1)
Inventory, net
Other receivables
Intangible assets (estimated useful life)
Developed technology (10 years)
9,400
Non-competition agreement (3 years)
Total assets acquired
9,970
Accounts payable
Deferred tax liabilities
1,713
Total liabilities assumed
1,719
Net assets acquired, excluding goodwill
8,251
Goodwill
9,796
Net assets acquired
$
18,047
(1) The “trade receivables, net” comprise gross contractual amounts due of $11, of which no amounts were expected to be uncollectable at the date of acquisition.
The Company evaluated the disclosure requirements under ASC 805 and determined SMP was not considered a material business combination for purposes of disclosing the earnings of SMP since the date of acquisition and supplemental pro forma information.
Cash
$
12,702
Fair value of previously held interest
5,095
Prepaid deposits
Net assets acquired
$
18,047
Cash
$
12,702
Less: cash acquired
(42)
Investment in acquisitions, net of cash acquired
$
12,660
The determination of the final purchase price allocation to specific assets, primarily intangibles, is incomplete and may change in future periods.
LLC Membership Interest Purchase Agreement for the Acquisition of Qorvo Biotechnologies, LLC
On October 4, 2023, Zomedica Inc., a wholly owned subsidiary of Zomedica Corp. (the “Company”), entered into an LLC Membership Interest Purchase Agreement with Qorvo US, Inc. (“Qorvo”) pursuant to which Zomedica Inc. acquired 100% of the membership interests of Qorvo Biotechnologies, LLC, a Delaware limited liability company (“QBT”) from Qorvo. QBT develops the TRUFORMA® Platform that utilizes innovative Bulk Acoustic Wave sensor technology to provide a non-optical and fluorescence free system for the detection of disease at the point of care (the “Acquisition”). The Acquisition was consummated on October 4, 2023.
Zomedica paid Qorvo a purchase price of $7,646, which comprised of cash of $11,300 and settlement of pre-existing relationship of $3,654. The cash purchase price was funded through the cash on hand.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
The following table summarizes the final fair value amounts of identifiable assets acquired and liabilities assumed at the acquisition date:
Initial
Measurement
Allocation of
Period
Updated
Consideration
Adjustments
Allocation
Inventory, net
$
1,674
$
(201)
$
1,473
Other receivables
-
Property and equipment, net
6,495
6,696
Right-of-use asset
1,202
-
1,202
Other assets
-
Total assets acquired
9,442
-
9,442
Accounts payable and accrued liabilities
-
Current portion of lease obligations
-
Lease obligations
-
Total liabilities assumed
1,796
-
1,796
Net assets acquired, excluding goodwill
7,646
-
7,646
Net assets acquired
$
7,646
$
-
$
7,646
The Company incurred $499 thousand in acquisition costs that were expensed in the period incurred and are included in general and administrative expense in the accompanying consolidated statements of operations and comprehensive loss.
The Company evaluated the disclosure requirements under ASC 805 and determined QBT was not considered a material business combination for purposes of disclosing the earnings of QBT since the date of acquisition and supplemental pro forma information.
Purchase price consideration was made up of the following:
Cash
$
11,300
Settlement of pre-existing relationship(1)
(3,654)
Total
$
7,646
(1) The Company had entered into a Development and Manufacturing License Agreement with QBT on January 17, 2023 and the Company had an intangible asset and liability balance of $6,945 and $3,654, respectively as of the acquisition date related to this agreement. The effect of the pre-existing liability (i.e., $3,654) is included in the consideration transferred.
8. Inventory
December 31, 2024
December 31, 2023
Diagnostics
Therapeutic
Devices
Consolidated
Diagnostics
Therapeutic
Devices
Consolidated
Raw materials
$
1,997
$
2,304
$
4,301
$
1,801
$
2,026
$
3,827
Finished goods
Purchased inventory
Total inventory
2,308
2,776
5,084
2,273
2,899
5,172
Less: reserves
(26)
-
(26)
(49)
-
(49)
Inventory, net
$
2,282
$
2,776
$
5,058
$
2,224
$
2,899
$
5,123
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
9. Prepaid Expenses and Deposits
December 31,
December 31,
Deposits
$
$
Prepaid marketing
Prepaid insurance
Other
1,170
Total prepaid expenses and deposits
$
2,484
$
2,314
10. Accrued Expenses and Other Current Liabilities
December 31,
December 31,
Accrued employee compensation and benefits
$
4,557
$
4,131
Accrued taxes
1,003
1,069
Accrued professional services
Other
Total accrued expenses and other current liabilities
$
6,431
$
5,707
11. Property and Equipment
December 31,
December 31,
Machinery and equipment
$
15,947
$
9,142
Furniture and fixtures
Laboratory equipment
1,073
Leasehold improvements
3,088
1,953
Construction in progress
7,889
12,481
Total property and equipment
28,005
24,873
Less: accumulated depreciation
(3,416)
(2,045)
Property and equipment, net
$
24,589
$
22,828
Depreciation expense for the year ended December 31, 2024 and 2023 was $1,545 and $830, respectively.
During the six months ended June 30, 2024, in accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), the Company conducted a review of its property and equipment for recoverability. This assessment was prompted by broader reviews within our reporting units. As part of this review, the Company compared the undiscounted future cash flows associated with its long-lived assets to their carrying values. The results of this assessment confirmed that the carrying values of the Company’s property and equipment were fully recoverable. No impairment charge was recognized during the fiscal year ended December 31, 2024.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
12. Goodwill and Intangible Assets
The following table provides a roll-forward of the carrying amount of goodwill by segment:
Diagnostics
Therapeutic
Devices
Total
Balance at December 31, 2022
$
6,070
$
57,909
$
63,979
Acquisitions
9,796
-
9,796
Impairment
-
(12,195)
(12,195)
Balance at December 31, 2023
$
15,866
$
45,714
$
61,580
Impairment
(15,866)
(158)
(16,024)
Balance at December 31, 2024
$
(0)
$
45,556
$
45,556
During the six months ended June 30, 2024, the Company concluded that it was more likely than not that the fair values of certain reporting units had declined below their carrying values due to changes in sales growth projections and the allocation of operating expenses. As a result, the Company conducted a quantitative impairment analysis using the discounted cash flow method to estimate the fair values of its reporting units. The difference between the reporting units’ carrying values and fair values was recognized as an impairment charge.
The Company recognized $16,024 in noncash impairment charges related to goodwill for the fiscal year ended December 31, 2024. These charges represented the full impairment of goodwill in two reporting units within the Diagnostics segment and a partial impairment in one reporting unit within the Therapeutic Devices segment. These charges are recorded under impairment expense in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2024.
In addition, the Company evaluated its amortizable intangible assets as part of the interim impairment analysis during the six months ended June 30, 2024, and determined that their fair values exceeded their carrying amounts. No impairment charges were recognized for amortizable intangible assets in the fiscal year ended December 31, 2024.
As part of the annual goodwill impairment test for fiscal year 2024, the Company conducted a quantitative analysis, which indicated that the fair values of the PulseVet® and Assisi® reporting units exceeded their carrying amounts, including goodwill, by 12% and 14%, respectively. Following the impairment recorded during the year, there are no remaining goodwill balances for the Revo Squared or SMP reporting units. As of December 31, 2024, the carrying values of goodwill were $43.4 million for PulseVet® and $2.2 million for Assisi®.
For the fiscal year ended December 31, 2023, the Company performed a quantitative analysis as part of its annual goodwill impairment test. The analysis of the PulseVet® and Revo Squared reporting units indicated that their fair values exceeded their carrying amounts, including goodwill, by 6% and 26%, respectively. The analysis of the Assisi reporting unit indicated that its fair value was below its carrying amount, including goodwill, by 54%, driven by slowed future sales growth projections and an increase in allocated operating expenses. As a result, a goodwill impairment charge of $12,195 was recorded for the fiscal year ended December 31, 2023.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
The following table summarizes our intangible assets, net of accumulated amortization:
December 31,
December 31,
Computer software
$
3,454
$
1,741
Customer relationships
26,850
26,850
Licenses
9,542
8,042
Technology
25,050
25,050
Tradenames
2,850
2,850
Trademarks
Website
1,364
Total intangibles
69,126
65,511
Less: accumulated amortization
(16,588)
(10,147)
Intangibles, net
$
52,538
$
55,364
Included within intangibles are $563 in licenses associated with future exclusivity to sell products should we determine that they have both market viability and are a complementary fit within our suite of offerings. As these relationships are still in the exploratory phase with no revenue stream to match expenses against nor a guarantee that this exclusivity will ever be used, we are considering these to be indefinite lived as of December 31, 2024. This accounts for the difference between the net intangibles as found within our consolidated balance sheets and the amortization table below. We will continue to assess the commercialization status and relationship with these companies on a quarterly basis and will adjust our amortization schedules accordingly.
Also included within intangibles above is a license asset associated with a License and Supply Agreement entered into on December 23, 2024, between the Company and Cresilon, Inc., under which Cresilon will manufacture and supply products to the Company. Under this agreement, the Company acquired a Technology License and a Limited Trademark License, which were accounted for as an asset acquisition under ASC 805 and recognized as a single asset.
For the year ended December 31, 2024, the Company made a $1,500 upfront license fee payment, which was capitalized as a definite-lived intangible asset in accordance with ASC 805. The asset will be amortized on a straight-line basis over the 20-year term of the agreement.
The estimated future amortization of intangible assets is as follows:
$
6,635
6,230
6,002
5,744
5,561
Thereafter
21,803
Total
$
51,975
Amortization expense for the year ended December 31, 2024 and 2023 was $6,441 and $5,468, respectively.
13. Leases
On April 1, 2022, the Company entered into an agreement with ULF Northfield Business Center LLC to lease 12,400 square feet of office and warehouse space. The lease period is for sixty-one months beginning on April 1, 2022, with a monthly rent payment of $9 for the first twelve months and escalating to $11 per month over the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $546 using an incremental borrowing rate of 3.95%. This lease is classified as an operating lease.
On July 15, 2022, as part of the Assisi asset purchase agreement, the Company assumed a license agreement pursuant to a lease agreement between The Wheelership LLC and The Realty Associates Fund XII portfolio, L.P., whereby Assisi sublet 5,185 square feet of warehousing space. The remaining lease period assumed at the time of the agreement is for fifty-two months beginning on August 16, 2022 and lasts through November of 2026. The lease has a rent payment of $4 for the first month and escalates to $6 per month over
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $260 using an incremental borrowing rate of 7.00%. This lease is classified as an operating lease.
On May 10, 2023, the Company amended the lease agreement with ULF Northfield Business Center LLC to expand the lease by 6,000 square feet, to a total of 18,400 square feet, and extend the lease term from the date ending April 30, 2027 to sixty months after the earlier of the date on which the landlord delivers the expanded premises to the Company or December 1, 2023. The expanded premises were delivered to the Company on September 1, 2023, causing the rent to increase to $16 for the first month and escalating to $22 over the lease period. This lease is classified as an operating lease.
On October 4, 2023, Zomedica assumed the lease obligations of QBT when it acquired the company from Qorvo US, Inc. These leases include 36,103 square feet in Plymouth, MN and 1,500 square feet in Waseca, MN. The remaining lease periods assumed at the time of the agreement ranges from one to fifty-three months beginning on November 1, 2023 and lasting through February of 2028. The leases have a monthly rent payment of $30 for the first month, dropping to $27 by the end of the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $1,223 using an incremental borrowing rate of 7.00%. This lease is classified as an operating lease.
December 31,
December 31,
Right-of-use assets
Cost
Aggregate lease commitments
$
4,598
$
4,668
Less: impact of present value
(562)
(566)
Balance
$
4,036
$
4,102
Reduction in right-of-use assets
Straight line amortization
2,763
1,825
Interest
(338)
(189)
Balance
$
2,425
$
1,636
Net book value as at:
Balance
$
1,611
$
2,466
Lease liabilities
Additions
$
4,077
$
4,143
Payments
(2,601)
(1,602)
Interest
Total lease liabilities
$
1,814
$
2,730
Current portion of lease liabilities
Long-term portion of lease liabilities
1,291
1,814
Total lease liabilities
$
1,814
$
2,730
Total remaining undiscounted liabilities related to the above leases are as follows:
Total future undiscounted lease payments
$
2,038
Less: imputed interest
(224)
Total lease liabilities
$
1,814
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Our weighted-average remaining lease terms and discount rates were as follows:
December 31,
December 31,
Weighted-average remaining lease term
3.2 years
3.6 years
Weighted-average discount rate
6.9%
6.4%
Rent expense for the year ended December 31, 2024 and 2023 was $1,312 and $1,203, respectively.
14. Stock-Based Compensation
Stock Options
The Zomedica Amended and Restated Stock Option Plan (the “Plan”) was amended and restated on June 15, 2022, and provides incentives through the grant of stock options which may be granted to the directors, officers, and employees of the Company. The Plan is administered by the Board of Directors of the Company, and the aggregate number of shares reserved for issuance under the Plan shall not, at the time of the stock option grant, exceed ten percent of the total number of issued and outstanding shares (calculated on a non-diluted basis). If any stock options granted under this Plan shall expire or terminate for any reason without having been exercised in full, they shall be available for the purposes of granting new stock options under this Plan.
During the year ended December 31, 2024, the Company issued 9,695,000 stock options, each option entitling the holder to purchase one common share of the Company. The options vest over a period of four years and have an expiration period of ten years.
The continuity of stock options for the years ended December 31, 2024 and 2023 are as follows:
Number of Options
Weighted-Average Exercise Price
Balance at December 31, 2023
93,349,943
$
0.3338
Stock options granted
9,695,000
0.1364
Stock options forfeited
11,740,000
0.2326
Vested stock options expired
2,253,000
0.4286
Balance at December 31, 2024
89,051,943
$
0.3232
Vested at December 31, 2024
55,925,830
$
0.3563
Number of Options
Weighted-Average Exercise Price
Balance at December 31, 2022
84,112,443
$
0.3602
Stock options granted
14,655,000
0.2185
Stock options forfeited
4,352,500
0.3230
Vested stock options expired
1,065,000
0.8744
Balance at December 31, 2023
93,349,943
$
0.3338
Vested at December 31, 2023
40,508,274
$
0.3577
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
As of December 31, 2024, details of the issued and outstanding stock options are as follows:
Grant Year
Weighted-Average
Exercise Price
Number of Options
Issued
and Outstanding
Number of
Vested Options
Outstanding
Number of
Unvested Options
Outstanding
Weighted-Average
Remaining Life
Outstanding
(Years)
0.20
15,707,224
15,707,224
-
5.59
0.83
18,900,000
15,250,000
3,650,000
6.62
0.27
39,329,719
21,958,606
17,371,113
7.37
0.21
8,290,000
3,010,000
5,280,000
8.64
0.15
6,825,000
-
6,825,000
9.77
Balance at December 31, 2024
89,051,943
55,925,830
33,126,113
The fair value of stock options granted during the year ended December 31, 2024, was estimated using the Black-Scholes option pricing model with the following assumptions:
Grant Year
Weighted-Average
Volatility
Weighted-Average
Risk-Free Interest Rate
Weighted-Average
Expected Life
(In Years)
Weighted-Average
Common Share Price
Weighted-Average
Exercise Price
%
0.47
%
9.53
$
0.21
$
0.22
1.09
6.19
0.65
0.65
3.09
5.90
0.26
0.27
3.96
6.25
0.21
0.22
4.30
6.25
0.13
0.14
For the years ended December 31, 2024 and 2023, the Company recorded $2,659 and $6,263 of stock-based expense associated with equity-classified awards. The total unrecognized compensation cost related to nonvested awards was $2,326, which is expected to be recognized over a weighted-average period of 2.4 years.
Cash-Settled Stock Appreciation Rights (“SARs”)
On August 12, 2024, the Board of Directors of the Company adopted the Zomedica Corp. 2024 Stock Appreciation Rights Plan (the “SAR Plan”). The SAR Plan is administered by the Board of Directors, which may delegate administration to a committee of the Board. Up to 10% of the issued and outstanding shares of common stock of the Company (calculated on a non-diluted basis) is available for the grant of SARs. Awards are settled solely in cash and do not result in the issuance of shares.
The Board determines the exercise price of each SAR, which must not be less than the fair market value of one share of common stock on the grant date, as well as the term and vesting provisions of each award. The term of a SAR may not exceed ten years. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price.
SARs granted to employees vest 25% on the first anniversary of the grant date, with the remainder vesting 1/48th per month over the next 36 months. SARs granted to non-employee directors vest 100% on the first anniversary of the grant date, subject to continuous service through the vesting date.
Following termination of service, vested SARs may generally be exercised within 90 days, or up to 12 months in the event of death or disability, but not beyond the expiration date of the SAR. The SAR Plan is subject to the terms outlined in individual grant agreements.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
The continuity of SARs for the year ended December 31, 2024 is as follows:
Number of SARs
Weighted-Average Exercise Price
Balance at December 31, 2023
-
-
SARs granted (non-employee directors)
13,521,379
$
0.13
Balance at December 31, 2024
13,521,379
0.13
Exercisable at December 31, 2024
-
Vested at December 31, 2024
-
As of December 31, 2024, unrecognized stock-based compensation expense related to non-employee director SARs was $830 and is expected to be recognized over a weighted-average period of approximately 0.9 year. During the year ended December 31, 2024, the Company recognized $119 of compensation expense related to SARs and recorded a corresponding liability of $119, reflecting the fair value of outstanding awards, within accrued expenses and other current liabilities on the consolidated balance sheets.
The weighted-average assumptions utilized in the Black-Scholes option-pricing model to estimate the fair value of cash-settled SARs as of December 31, 2024 are summarized in the following table:
December 31,
Expected term (years)
5.4
Expected volatility
65.4
%
Risk-free interest rate
4.4
%
15. Warrants
The Company values warrants issued in equity placements using the Black Scholes model to allocate the fair value of the proceeds from equity financings using a relative fair value approach. Like other stock-based compensation, management uses judgment to determine the inputs to the Black-Scholes option pricing model including the expected life, and underlying share price volatility. Changes in these assumptions will impact the calculation of fair value and the value attributed to the warrants. The Company calculates volatility of warrants based on the historical price of the Company’s stock. An increase/decrease in the volatility would have resulted in an increase/decrease in the fair value of the warrants.
In connection with the July 1, 2022 asset acquisition of Revo Squared, the Company issued a ten-year warrant to purchase 10,000,000 common shares at a per share exercise price equal to $0.22. The warrants may be exercised on a cash or cashless basis, at the election of the warrant holder. As of December 31, 2024, no warrants have been exercised.
In connection with the July 15, 2022 asset acquisition of Assisi, the Company issued a ten-year warrant to purchase 22,000,000 common shares at a per share exercise price equal to $0.25. The warrants may be exercised on a cash or cashless basis, at the election of the warrant holder. As of December 31, 2024, no warrants have been exercised.
As of December 31, 2024, details of the outstanding warrants were as follows:
Original Issue date
Exercise Price
Warrants
Outstanding
Weighted-Average
Remaining Life
February 14, 2020 (Series A)
0.15
197,917
0.12
April 9, 2020 (Series B)
0.15
363,501
0.27
July 1, 2022 (Revo Squared)
0.22
10,000,000
7.50
July 15, 2022 (Assisi)
0.25
22,000,000
7.54
Balance at December 31, 2024
32,561,418
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
Cumulative warrants exercised and expired as of December 31, 2024 were as follows:
Warrant Series
Warrants Exercised
Amount
Warrants Expired
Amount
February 14, 2020 (Series A)
21,677,084
$
4,293
-
$
-
April 9, 2020 (Series B)
17,969,833
2,695
-
-
May 29, 2020 (Series C)
133,213,333
19,982
120,000
July 7, 2020 (Series D)
187,269,000
29,963
231,000
Total warrants
360,129,250
$
56,933
351,000
$
16. Income Taxes
A summary of the components of the provision for income taxes is as follows:
December 31,
December 31,
Current income tax expense:
Federal
$
-
$
-
State
-
-
Foreign
Total current expense
$
$
Deferred income tax (benefit) expense :
Federal
$
(638)
(1,547)
State
(44)
Foreign
-
-
Total deferred expense
$
(682)
$
(1,489)
Total income tax expense
$
(557)
$
(1,331)
Loss (income) before income taxes:
United States
$
(48,380)
$
(36,954)
Foreign
1,094
Total loss before income taxes
$
(47,539)
$
(35,860)
The reconciliation of the combined Canadian federal and provincial statutory income tax rate of 23% to the effective tax rate is as follows:
December 31,
December 31,
Loss before income taxes
$
(47,539)
$
(35,860)
Expected income tax (recovery) expense
(10,934)
(8,248)
Difference in foreign tax rates
State taxes and other adjustments
(44)
Foreign accrual property income
1,505
Stock-based compensation and non-deductible expenses
2,487
1,183
Prior period adjustment
3,280
(255)
Change in valuation allowance
3,052
3,752
Total income tax benefit
$
(557)
$
(1,331)
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
The following table summarizes the components of deferred tax:
December 31,
December 31,
Deferred tax assets
Intangible assets - licenses
$
4,236
$
4,236
Share issuance costs
1,548
Reserves
1,225
1,050
Non-capital loss carried forward - Canada
6,419
9,581
Net operating losses carried forward - US
13,864
8,260
Investment tax credits
Lease liabilities
Stock-based compensation
3,885
3,246
Other
2,999
1,737
Total deferred tax assets
$
33,876
$
30,430
Deferred tax liabilities
Property and equipment
(2,795)
(1,878)
ROU assets
(380)
(558)
Intangibles
(3,797)
(5,702)
Other
(42)
(11)
Total deferred tax liabilities
$
(7,014)
$
(8,149)
Less: valuation allowance
(27,318)
(23,419)
Deferred tax liability, net
$
(456)
$
(1,138)
No deferred tax asset has been recognized for Canada, as it is not more likely than not to be realized. Consequently, a valuation allowance has been applied against the net deferred tax asset. The Canadian non-capital loss carry forwards expire as noted in the table below.
$
1,706
2,215
1,579
Total
$
6,419
The Company’s US federal net-operating income tax losses expire as follows:
$
Indefinitely (subject to 80% limitation)
14,729
Derecognized under Section 382
(3,814)
Total
$
12,230
As of December 31, 2024, we had net operating loss carryforwards for U.S. federal and state income tax purposes of $16,044 and noncapital loss carryforwards for Canada of $6,419, which will begin to expire in fiscal year 2039. We have evaluated the factors bearing upon the realizability of our deferred tax assets, which are comprised principally of net operating loss carryforwards and noncapital loss carryforwards. In 2021, we concluded that, due to the limitations under Section 382, our U.S. federal and state income tax net operating loss carryforwards, as well as R&D credit carryforwards, for the periods prior to February 11, 2021, have been limited to zero. We therefore have derecognized $3,814 of this asset, reducing the carryforward of these amounts to $12,230.
In prior years, there were no uncertain tax positions. In connection with the acquisition of PulseVet®, as part of the BPA transaction completed in 2021, it was assessed that an uncertain tax position exists related to withholding taxes on royalties for approximately $265. An uncertain tax liability and an indemnification asset were recorded. It is the Company's policy to record interest within interest expense
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
and penalties in non-operating income. Tax years subject to examination for US federal and state jurisdictions are generally years from 2021 and forward. Tax years subject to examination in Canada are from years 2020 and forward.
The Company is in an overall domestic net deferred tax liability position for the year ended December 31, 2024. Management has assessed that the future taxable income resulting from the deferred tax liability position will result in partial utilization of the Company's US federal and state net operating loss carryforwards and has therefore concluded a valuation allowance of $15,901 is currently necessary. Due to the uncertainty of realizing any tax benefits as of December 31, 2024 due to historical losses, a full valuation allowance remains necessary to fully offset our Canadian deferred tax assets.
17. Commitments and Contingencies
From time to time, the Company may be exposed to claims and legal actions in the normal course of business. As of December 31, 2024, and continuing as of March 13, 2025, the Company is not aware of any pending or threatened material litigation claims against the Company.
Agreements with Qorvo Biotechnologies, LLC
On January 17, 2023, the Company entered into a series of agreements with Qorvo Biotechnologies, LLC. Other than the obligation to purchase a minimum quantity of BAW sensors during the term of the BAW Sensor Supply Agreement, the obligations under these agreements were terminated upon the acquisition of Qorvo Biotechnologies, LLC on October 4, 2023.
Development and License Agreement with Brisby, Inc.
On April 4, 2023, the Company entered into a Development and License Agreement with Brisby Inc. Under the terms of this agreement, Brisby grants the Company a license to use, develop, manufacture, have manufactured, offer for sale, sell, and import certain Brisby products, such as the Smart Pet Pad and the Intelligent Pet Bed, along with any future developments of these products.
As part of this agreement, the Company is required to make the following milestone payments:
● $3,500 in cash payments, split between license fees and equity interest, upon the achievement of future development milestones, inclusive of development milestones and commercial sales;
● $750 in cash payment upon the first commercial sale of the Smart Pet Pad;
● $750 in cash payment upon the first commercial sale of the Intelligent Pet Bed;
● $5,000 in cash payment upon reaching $15,000 in annual net sales of the licensed products.
As of December 31, 2024, the Company has made $1,563 in cash payments for milestones achieved under this agreement and holds a 19.50% equity stake in Brisby Inc. The remaining cash payments, totaling $1,937, are due upon the achievement of future development milestones and the first commercial sales of the Smart Pet Pad and the Intelligent Pet Bed.
The Company’s investment in Brisby Inc. is accounted for under the equity method in accordance with ASC 323, Investments - Equity Method and Joint Ventures (“ASC 323”), and is included in “Other assets” on our consolidated balance sheets.
License and Supply Agreement with Cresilon, Inc.
On December 30, 2024 (the “Effective Date”), the Company entered into a License and Supply Agreement with Cresilon, Inc. Under the terms of this agreement, Cresilon will manufacture and supply VETIGEL® Hemostatic Gel and related products (the “Products”) to the Company, ensuring the Products materially conform to agreed specifications.
The agreement grants the Company a perpetual, royalty-bearing exclusive license to promote, market, and sell VETIGEL Products in the United States and, upon regulatory approval, Japan, as well as a non-exclusive license for global markets outside these territories. Both licenses include sublicensing rights but exclude any rights to manufacture the Products. Additionally, the Company received a non-exclusive, transferable trademark license to use Cresilon trademarks solely for the sale and importation of VETIGEL Products.
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
As part of this agreement, the Company is required to make the following considerations:
● $1,500 in an up-front license fee, due upon execution of the Agreement, which was paid during the year-ended December 31, 2024;
● $1,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $3,000 (provided this occurs within five years of the Effective Date);
● $1,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $5,000 (provided this occurs within five years of the Effective Date);
● $2,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $10,000 (provided this occurs within five years of the Effective Date);
● Royalties on Net Sales, ranging from 5% to 15%, depending on territory and patent status;
● A Minimum Royalty obligation (beginning in the second calendar year following the Effective Date) of at least $1,000, either through Net Sales or a shortfall payment for unsold Products manufactured by Cresilon.
18. Segment Information
The Company’s operations are comprised of two reportable segments:
● Diagnostics, which consists of TRUFORMA®, VETGuardian®, and TRUVIEW® products; and
● Therapeutic Devices, which consists of Assisi® and PulseVet® products.
The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer who has ultimate responsibility for enterprise decisions. Segment information is used by the CODM to evaluate financial performance and to make strategic decisions related to resource allocation and operational focus across the segments. The CODM does not assess individual expense line items beyond cost of goods sold, nor does the CODM evaluate additional financial measures or allocate assets at the segment level.
Although our reportable segments provide similar products, each one is managed separately to better align with the Company’s customers and distribution / development partners. The CODM determines resource allocation for, and monitors performance of, the consolidated enterprise, which includes both the Diagnostics and the Therapeutic Devices segments. The CODM relies on internal segment reporting that analyzes results on certain key performance indicators, namely, revenues, cost of goods sold, and gross profit. Cost of goods sold is the only significant expense evaluated at the segment level, as it is critical for assessing gross profit and segment performance. Costs below gross profit, such as operating expenses, are not allocated to the segments, nor are asset groupings, except for the purpose of periodic impairment analysis.
The following is a reconciliation of consolidated revenue, cost of revenue, and gross profit amongst our reportable segments as of December 31, 2024:
Year Ended December 31,
Diagnostics
Therapeutic
Devices
Consolidated
Net revenue
$
2,433
$
1,377
$
24,852
$
23,809
$
27,285
$
25,186
Cost of revenue
2,207
2,042
5,991
5,826
8,198
7,868
Gross (loss) profit
$
$
(665)
$
18,861
$
17,983
$
19,087
$
17,318
Zomedica Corp.
Notes to the Consolidated Financial Statements
(United States Dollars in Thousands)
For the year ended December 31, 2024, revenue from external customers in the U.S. totaled $22,556, while revenue from customers in foreign countries amounted to $4,729. For the year ended December 31, 2023, revenue from external customers in the U.S. was $20,682, with revenue from customers in foreign countries totaling $4,504.
19. Loss Per Share
December 31,
December 31,
Numerator
Net loss for the period
$
(46,982)
$
(34,529)
Denominator
Weighted-average shares - basic
979,949,668
979,949,668
Loss per share - basic and diluted
$
(0.05)
$
(0.04)
As of December 31, 2024, and 2023, the Company had stock options outstanding of 89,051,943 and 93,349,943, respectively, and warrants outstanding of 32,561,418 in both years. These securities could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted loss per share in the periods presented, as their effect would be anti-dilutive.
20. Subsequent Events
We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of December 31, 2024, for potential recognition or disclosure in these financial statements.
On March 4, 2025, the Company was notified by NYSE American that, as a result of its previously disclosed noncompliance with Section 1003(f)(v) of the NYSE American Company Guide, whereby its common shares had been trading for a substantial period at a low price per share, NYSE American suspended trading in Company’s common shares. NYSE American further indicated that it would apply to the Securities and Exchange Commission (“SEC”) to delist the common shares upon completion of all applicable procedures. As a result, the Company’s common shares were delisted from NYSE American effective at the close of trading on March 4, 2025.
The Company had applied to have its common shares quoted on the OTC Markets’ OTCQB® market tier, an electronic quotation service operated by OTC Markets Group Inc. for eligible securities traded over-the-counter. The Company received approval, and trading of its common shares commenced on the OTCQB Market at the open of business on March 5, 2025, under the trading symbol “ZOMDF”.
Additionally, the lease for our corporate headquarters at 100 Phoenix Drive, Suite 190, Ann Arbor, Michigan, expired on January 31, 2025, and a new lease commenced on February 1, 2025, at 1101 Technology Drive, Suite 100, Ann Arbor, Michigan.
Based on our evaluation, no other subsequent events have been identified that require adjustment or additional disclosure in the consolidated financial statements.
Exhibit
Number
Description
2.1
Stock Purchase Agreement, dated October 1, 2021, by and between Zomedica Inc. and Branford PVT Mid-Hold, LLC (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Commission on October 1, 2021 (File No. 001-38298))
2.2
Asset Purchase Agreement, dated June 14, 2022, by and between Zomedica Inc. Revo Squared LLC, the Principal Member (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Commission on June 21,2022 (File No. 001-38298))
2.3
Asset Purchase Agreement, dated July 15, 2022, by and between Zomedica Inc. and Assisi Animal Health LLC, the Principal Member (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Commission on July 20, 2022 (File No. 001-38298))
2.4
Stock Purchase Agreement dated September 4, 2023 by and between Zomedica Inc., the sellers party thereto, and SMP VG Holdco Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the Commission on September 6, 2023 (File No. 001-38298))
2.5
LLC Membership Interest Purchase Agreement dated October 4, 2023 by and between Zomedica Inc. and Qorvo US, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on October 10, 2023 (File No. 001-38298))
3.1
Articles of Amalgamation of Zomedica Corp. and all amendments thereto, as well as all Certificates issued in respect thereto (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q filed with the Commission on May 12, 2021 (File No. 001-38298))
3.2
Amended and Restated By-Law No. 1 (2nd Version) of Zomedica Corp. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Commission on August 7, 2020 (File No. 001-38298))
4.1
Description of Securities (incorporated by reference to Exhibit 4.1 to the Company’s Form 10-K filed with the Commission on February 26, 2020 (File No. 001-38298))
4.2
Form of Common Shares Purchase Warrant (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the Commission on February 13, 2020 (File No. 001-38298))
4.3
Form of Placement Agent Warrant issued in connection with February 2020 offering (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed with the Commission on February 13, 2020 (File No. 001-38298))
4.4
Form of Series B Warrant (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K filed with the Commission on April 8, 2020(File No. 001-38298))
4.5
Form of Placement Agent Warrant issued in connection with April 2020 offering (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed with the Commission on April 8, 2020 (File No. 001-38298))
10.1+
Executive Employment Agreement, dated October 1, 2021, among Zomedica Inc., Zomedica Corp. and Larry Heaton (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on October 4, 2021 (File No. 001-38298))
10.2+
Amendment to Executive Employment Agreement of Larry C. Heaton dated April 1, 2024 (incorporated by reference to Exhibit 10.19 to the Company’s Current Report on Form 10-K filed with the Commission on April 1, 2024 (File No. 001-38298))
10.3+
Employment Agreement, dated December 18, 2024, between Zomedica Corp., Zomedica Inc. and Scott Jordan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on December 19, 2024 (File No. 001-38298))
10.4+
Offer letter, dated November 6, 2023, among Zomedica Inc., Zomedica Corp., and Russell Kevin Klass (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed with the commission on May 9, 2024 (File No. 001-38298))
10.5
Second Lease Amendment, effective September 15, 2021, by and between Zomedica Inc. and Wickfield Phoenix LLC (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the Commission on November 12, 2021 (File No. 001-38298))
10.6
Lease Agreement entered into as of November 15, 2024 by and between 1101 Technology Drive, L.L.C. and Zomedica Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on November 19, 2024 (File No. 001-38298))
10.7
Amended and Restated Stock Option Plan (incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-8 filed with the Commission on July 3, 2024 (File No. 333-280679))
10.8
Stock Appreciation Rights Plan (incorporated by reference to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q filed with the Commission on November 7, 2024 (File No. 001-38298))
10.9
Stock Appreciation Rights Agreement (Employees) (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed with the Commission on November 7, 2024 (File No. 001-38298))
10.10
Stock Appreciation Rights Agreement (Directors) (incorporated by reference to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q filed with the Commission on November 7, 2024 (File No. 001-38298)
10.11+
Consulting Agreement, effective June 17, 2022, by and between Zomedica Corp. and Dr. Stephanie Morley (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the commission on August 15, 2022 (File No. 001-38298))
Exhibit
Number
Description
10.12
Lease Agreement, effective April 1, 2022, by and between Zomedica Inc. and ULF Northfield Business Center (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed with the commission on August 15, 2022 (File No. 001-38298))
10.13
Lease Agreement, effective July 1, 2022, by and between Zomedica Inc. and Lebow 1031 Legacy, LLC (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed with the commission on November 14, 2022 (File No. 001-38298))
10.14
License Agreement, effective November 1, 2021, by and between The Wheelership LLC and Assisi Animal Health, as assumed by Zomedica Inc. effective July 15, 2022 (incorporated by reference to Exhibit 10.11 to the Company’s Current Report on Form 10-K filed with the Commission on April 1, 2024 (File No. 001-38298))
10.15
Form of Indemnity (incorporated by reference to Exhibit 10.20 to the Company’s Current Report on Form 10-K filed with the Commission on March 15, 2023 (File No. 001-38298))
10.16
Structured Monitoring Products, Inc. Distribution Agreement dated January 13, 2023 by and between Zomedica Inc. and Structured Monitoring Products, Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on January 20, 2023)
10.17***
BAW Sensor Supply Agreement by and among Qorvo Biotechnologies, LLC, Zomedica Inc. and Zomedica Corp. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Commission on January 24, 2023 (File No. 001-38298))
10.18
First Amendment to Multi-Tenant Industrial Triple Net Lease entered into as of May 10, 2023 by and between ULF Northfield Business Center LLC and Zomedica Inc. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Commission on May 11, 2023 (File No. 001-38298))
10.19
First Amendment to BAW Supply Agreement dated October 4, 2023 by and among Qorvo Biotechnologies, LLC, Qorvo US, Inc., Zomedica Inc. and Zomedica Corp. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed with the Commission on October 10, 2023 (File No. 001-38298))
10.20+
Consulting Agreement, dated August 14, 2024, between Zomedica Inc. and Peter Donato (incorporated by reference to Exhibit 10.1 to the Company's Form 8-K filed with the Commission on August 14, 2024 (File No. 001-38298)).
10.21+
Separation Agreement, dated August 14, 2024, between Zomedica Inc. and Peter Donato (incorporated by reference to Exhibit 10.2 to the Company's Form 8-K filed with the Commission on August 14, 2024 (File No. 001-38298)).
10.22+**
Offer letter, dated April 19, 2022, among Zomedica Inc., Zomedica Corp., and Karen Dehaan-Fullerton
10.23+**
Offer letter, dated December 29, 2021, among Zomedica Inc., Zomedica Corp., and Tony Blair
19.1**
Insider Trading Policy (Included in Code of Ethics Policy)
21.1**
List of Subsidiaries
23.1**
Consent of Grant Thornton LLP
31.1*
Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*
Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350
97.1
Zomedica Inc. Clawback Policy (incorporated by reference to Exhibit 97.1 to the Company’s Current Report on form 10-K filed with the Commission on April 1, 2024 (File No. 001-38298))
99.1*
NYSE American Notice of Trading Suspension and Initiation of Delisting Procedures, dated March 4, 2025.
101.INS
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.)
101.SCH
Inline XBRL Taxonomy Extension Schema Document
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.1)
#
The registrant has received confidential treatment for certain portions of this exhibit.
+
Indicates management contract or compensatory plan.
*
Furnished herewith.
**
Filed herewith.
***
Certain identified information has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.