Zomedica Q1 2026 Earnings Call | PulseVet and TRUFORMA Diagnostic Equipment Placements Expand

Hello everyone and welcome. I'm Larry Heaton, chief executive officer of Zomedica. Thanks for joining us for another Friday at 4 webinar. We appreciate you taking the time to be with us today. Today's session will include a focused discussion on the companion animal vet tech market, the largest and most active segment in veterinary medicine, along with a review of our first quarter 2026 financial results.

Companion animal medicine continues to benefit from strong long-term trends in pet ownership, advanced veterinary care, and increasing pet owner engagement. Companion animal practices also operate with high patient volumes, repeat visits, and growing demand for advanced diagnostic and treatment solutions. These dynamics create meaningful opportunities for technologies that improve workflow efficiency, support clinical decision-making, and enhance patient care. For Zomedica, this market aligns closely with our strategy of building an integrated veterinary health ecosystem across diagnostics, therapeutics, monitoring, and workflow support technologies.

Our product portfolio is designed to support veterinarians and clinical teams throughout the patient care journey from diagnostics and treatment to ongoing monitoring and follow-up care. We'll also spend some time today discussing the important role veterinary technicians play within modern veterinary practice. Vet tech professionals are often central to workflow efficiency, patient care coordination, and technology adoption within clinics, making them important end users of many of our platforms.

Throughout the webinar, we'll highlight how our products are designed with both veterinarians and veterinary technicians in mind, supporting everyday clinical workflows while helping improve patient care and operational efficiency. Our goal today is to provide greater insight into both our recent financial performance and how we are positioning the company for sustainable long-term growth within companion animal medicine. Once we are finished with the making comments, then we'll turn to a question and answer session. With that, let's get started.

Companion animal vet tech market landscape and growth drivers. The US veterinary services market is valued at $72.6 billion in 2026 with steady growth projected through 2030 and beyond. This reflects durable demand for companion animal care. But the market structure itself is transforming. Private clinical practice still dominates, but we're seeing meaningful growth in emergency, critical care, and referral or specialty practices. This shift is significant because it means higher acuity cases, more diagnostics per patient, and equipment-intensive workflows. The market isn't just getting bigger, it's becoming more complex. And complexity creates demand for tools that save time, improve efficiency, and help clinics handle higher volume with leaner teams.

Veterinary medicine is undergoing a generational shift. Recent data shows women represent 61.7% of the US veterinary workforce and millennials are the largest age cohort at 39%. This is a younger, more educated profession than it was a decade ago and that has real implications for technology adoption. Younger veterinarians are notably more open to digital tools, workflow automation, and data-driven medicine. They expect integration. They're willing to adopt solutions that reduce friction and they value efficiency gains. That's a significant tailwind for veterinary technology vendors.

At the same time, the profession is under operational strain. Staffing shortages, burnout, and retirement pressure are documented across multiple studies. Clinics are managing persistent imbalances between patient demand and available clinician capacity. This creates a powerful economic incentive. Tools that expand capacity, reduce labor dependence, or improve decision-making speed have substantial value. In this environment, solutions that solve a pain point and show clear ROI when adopted, where clinics invest, show clear growth patterns.

Practice spending is concentrated in three areas: diagnostics, therapeutics, and patient monitoring. These are peripheral categories. They're core to how clinics generate revenue and manage patient care. Market size tells the story. Diagnostics $9.7 billion in 2026, projected to reach $21.6 billion by 2034, roughly 7% annual growth. Therapeutics, $42.1 billion in 2022, projected to reach $72.4 billion by 2030. Strong sustained demand. Patient monitoring is a growing category as practices shift from reactive to continuous care models.

Purchasing decisions vary by practice type. Larger hospitals prioritize integrated diagnostics and scalable workflow tools. Smaller practices focus on upfront costs and rapid ROI, but across all practice sizes, there's a consistent pattern. Tools win when they're simple to deploy, fit existing workflows, and demonstrate clear value. Whether through labor savings, better patient care, or new revenue opportunities, Zomedica is positioned precisely where clinics are investing and where pain is highest: diagnostics, therapeutics, and workflow efficiency.

Our product portfolio addresses the categories with the largest addressable markets and the clearest clinical use cases, especially for practices seeking faster clinical decisions, more efficient patient management, and higher acuity care without adding operational complexity. The market is ready, the profession is ready, and the economics are clear. Clinics under operational pressure, managing volume with limited staff, and seeking solutions that deliver measurable ROI. That's exactly where we compete.

At Zomedica, our approach to the companion animal market isn't built around a single product. It's built around the patient and the practice. What you're looking at is the Zomedica companion animal ecosystem, a deliberately integrated portfolio designed to serve veterinarians and their patients across two critical pillars, diagnostics and therapeutics. This model matters because it mirrors how companion animal medicine actually works. A veterinarian doesn't just treat. They diagnose first, then treat, then monitor over time. And in companion animal, that process is often ongoing, not episodic.

On the diagnostic side, TrueForma is our anchor platform delivering point-of-care testing using proprietary bulk acoustic wave technology. Complementing it is TrueView, Zomedica's digital microscopy platform that brings cloud connectivity and AI-assisted image analysis into the diagnostic workflow. Together, these platforms expand the clinic's diagnostic capabilities across both biomarker testing and imaging-based case evaluation, helping veterinarians make faster, more informed clinical decisions, while keeping more of the workflow inside the practice.

For companion animal practitioners, this means in-clinic testing across key endocrine and biomarker categories, including thyroid, adrenal, pancreatic, and cardiac markers without the delays of sending samples to an external lab. That speed has real clinical and economic value. When a veterinarian can run tests during the patient visit, they can make immediate decisions, improve client communication, and keep the diagnostic workflow inside the practice. That translates into better compliance, stronger client relationships, and higher per-visit value.

On the therapeutic side, PulseVet and Assisi expand Zomedica from diagnosis into treatment. PulseVet brings extracorporeal shockwave therapy into the companion animal setting. A clinically validated non-invasive modality used to treat musculoskeletal conditions, promote healing and reduce pain. Like an Ecoin, it offers a drug-free alternative with strong clinical support and the ability to generate recurring revenue per treatment session. Assisi complements this with targeted pulse electromagnetic field (PEMF) therapy delivered through wearable home-use devices. This is particularly important in companion animal care where compliance and continuity matter. Assisi extends treatment beyond the clinic, allowing pet owners to actively participate in ongoing care.

Rounding out the portfolio is VetGuardian, a plant-based hemostatic agent designed for rapid bleeding control in a small animal setting. This provides an immediate practical solution for procedures, wound care, and urgent situations. A product with clear utility and broad applicability across everyday veterinary workflows. Together, these products are designed to work in concert. Diagnostics inform treatment decisions. Therapeutics improve outcomes and procedural tools like VetGuardian support clinical execution. That creates multiple revenue touch points per patient, per visit, and over the life of the animal. This is how Zomedica is building a durable companion animal business. Not through a single product, but through an integrated ecosystem.

TrueForma is the cornerstone of Zomedica's companion animal diagnostics platform. Built on bulk acoustic wave technology, it delivers point-of-care results with high analytical performance across assays that are highly relevant to everyday companion animal practice including thyroid disease, adrenal disorders like Cushing's and Addison's, pancreatitis, and cardiac biomarkers. What makes this compelling is the recurring nature of these conditions. These are not one-time tests. They require ongoing monitoring and repeat diagnostics over time. That creates a strong recurring revenue model. Each instrument placement drives consumable usage directly tied to clinical activity within the practice.

There is also a meaningful client experience benefit. Pet owners increasingly expect immediacy. Being able to diagnose and discuss results within the same visit improves trust, reduces delays, and increases the likelihood of initiating treatment on the spot.

TrueView expands the diagnostic ecosystem beyond point-of-care biomarker testing and into digital microscopy and imaging workflows. The platform combines high-resolution digital microscopy with cloud connectivity and AI-assisted analysis tools, allowing veterinarians to capture, review, store, and collaborate on diagnostic images more efficiently. In practice, that means clinics can streamline workflows, improve case documentation, and facilitate faster consultation and interpretation across teams and locations.

For companion animal medicine, this is particularly valuable because dermatology, cytology, ear infections, parasites, and other microscopy-driven cases are among the most common reasons pets enter the clinic. Equally important is hematology. Blood cell analysis and interpretation drive diagnosis and treatment decisions across anemia, infection, leukemia, and immune-mediated conditions. Automated slide preparation accelerates sample processing, enabling faster diagnosis and improved consistency on high-volume cytology and hematology cases. These are high-frequency workflows that directly impact daily practice efficiency.

TrueView also strengthens the broader recurring revenue model. Beyond hardware placement, digital workflow tools create opportunities for ongoing software utilization, platform engagement, and deeper integration into the clinic's operational infrastructure. Importantly, TrueView complements TrueForma within the broader diagnostic ecosystem. TrueForma delivers rapid biomarker and endocrine insights, while TrueView enhances visual diagnostic workflows through imaging and AI-assisted interpretation. Together, they expand Zomedica's presence across multiple areas of in-clinic diagnostics rather than relying on a single modality. From a strategic standpoint, this broadens Zomedica's position within veterinary technology and reinforces the company's long-term objective of building an integrated companion animal platform centered around workflow, efficiency, and recurring clinical engagement.

PulseVet is the therapeutic cornerstone. Its extracorporeal shockwave therapy platform is widely used to treat musculoskeletal conditions by stimulating healing, increasing blood flow, and reducing inflammation, all without pharmaceuticals or surgery. In companion animal practice, this opens the door to advanced treatment options that can be delivered in-clinic and billed per session, creating a recurring revenue stream. Assisi extends that therapeutic capability into the home. Its PEMF technology is designed for ease of use, allowing pet owners to administer ongoing therapy outside the clinic. This supports long-term recovery, improves compliance, and strengthens the veterinarian-client relationship by keeping the practice involved throughout the treatment cycle. Together, PulseVet and Assisi allow Zomedica to participate not just in diagnosis, but in the full continuum of care.

The companion animal market is structurally attractive because it is the largest and most consistent segment in veterinary medicine supported by a broad and fragmented clinic base with recurring demand for diagnostics, chronic condition management, rehabilitation, monitoring, and procedural care. Zomedica's opportunity spans both capital equipment placement and recurring clinical revenue streams across diagnostics and therapeutics.

In the United States, the company estimates its capital equipment total addressable market at approximately $1.7 billion, spanning categories including therapeutic devices, rehabilitation and sports medicine technologies, behavioral health solutions, and diagnostic monitoring platforms. More importantly, the US annual recurring revenue opportunity is estimated at approximately $3.3 billion driven by ongoing utilization across hemostasis products, therapeutic devices, rehabilitation and sports medicine treatments, diagnostic monitoring, imaging workflows, and point-of-care laboratory testing.

Internationally, Zomedica estimates an additional capital equipment opportunity of approximately $1.4 billion primarily across rehabilitation, sports medicine, and diagnostic monitoring categories alongside an estimated $3.2 billion international recurring revenue opportunity. That scale matters because companion animal care generates continuous clinical activity across multiple workflows and multiple visits. Diagnostics require repeat testing. Therapeutics often involve multiple treatment sessions, and chronic condition management creates long-term engagement between the clinic and the pet owner.

The financial logic is straightforward. Each capital placement or installed platform can generate continued revenue through testing, treatment sessions, consumables, monitoring, imaging, and repeat product utilization. As penetration increases, the business benefits from a multi-product ecosystem rather than dependence on a single SKU or a one-time transaction. As more Zomedica products are adopted within a single practice, the model compounds, increasing revenue per account and strengthening integration within the daily clinical workflow.

Critically, Zomedica's advantage is not a single product. It's the breadth of the ecosystem. Few competitors offer a combination of in-clinic diagnostics, in-clinic therapeutics, at-home care solutions, and procedural support within a single portfolio. That creates multiple entry points into the clinic and increases the opportunity for cross-sell over time. From an investor perspective, that translates into a more durable and diversified revenue model. The opportunity in companion animal is large, the demand is recurring, and the portfolio is designed to capture value at multiple points in the clinical workflow. Zomedica is not simply participating in the market. It is building an integrated platform positioned to grow with the evolving standard of care in companion animal medicine.

Let's hear from the front line. Tammy Pierce and Amy Schaefer share how veterinary technicians drive adoption and shape clinical workflows.

Heaton and Mike Zulki. I'll start with a brief update on the business before turning it over to our senior vice president of finance and corporate controller Mike Zulki who will walk through the financials in more detail. Following our prepared remarks we'll open the line for your questions.

On May 6th, we reported our first quarter 2026 results and I'm pleased with the strong start we've had once again delivering consistent and record performance across the business. We generated $8.8 million in revenue, representing 35% growth year-over-year and marking our 21st consecutive quarter of record revenue growth. Importantly, we surpassed $8 million in first quarter revenue for the first time, a meaningful milestone given that the first quarter has historically from a seasonal perspective been our lowest quarterly period for revenue.

Growth in the quarter was driven by several key factors: strong demand for our PulseVet and Assisi therapeutic device products, ongoing adoption of our diagnostic offerings, particularly our TrueForma platform, and continued contribution of our development services segment, which brought in another $2 million in revenue during the first quarter. We're encouraged by the early momentum in development services and believe that this segment will continue to contribute to our objectives of cash flow break-even, GAAP profitability, and long-term value creation.

From an operational perspective, we continued to execute with discipline. Gross margins remained healthy at 62%. Operating expenses were down $2.7 million or 21%. Adjusted non-GAAP EBITDA loss improved to $2.4 million compared to a loss of $5.7 million in the first quarter of 2025 net of impairment charges, an improvement of 58%. Cash burn improved by $1.1 million representing a 15% reduction from the first quarter of 2025. Maintaining discipline around costs and cash management remains a key priority across the company as we move further into 2026.

Beyond our financial performance, we also made significant progress in expanding and enhancing our product portfolio. In January, we launched our AI-enabled TrueView digital microscopy and telepathology platform, followed by an agreement with MWI Animal Health to distribute the device to their customer base. In February, we announced an agreement with ROM Technologies to provide OEM manufacturing and support services for its novel devices in the human health market. And in March, we announced a collaboration with Boehringer Ingelheim Animal Health, Inc. to enhance early detection, treatment, and monitoring of pituitary pars intermedia dysfunction or PPID in horses with our TrueForma platform.

Looking ahead, our priorities remain clear. Accelerate global adoption across our innovative portfolio, expand recurring revenue streams, and continue progressing towards cash flow break-even and profitability with a firm goal of achieving both in 2027. With the momentum established in the first quarter combined with the strength of our balance sheet, we believe we are well positioned to execute on our growth strategy and scale our innovative product portfolio globally. Now with that, I'll turn the call over to Mike to walk through the financials in further detail.

As you have just heard, we have significant opportunities for growth in the companion animal market and are developing deep relationships with both veterinarians and their staffs to create sustainable growth into the future. While there is certainly still room for improvement in our performance, we are pleased with our first quarter results and look forward to making further progress in reaching cash flow break-even and GAAP profitability as milestones along our way to building a significant presence in the animal health industry. With that, let's get to your questions.

Okay. So, I just realized that when I recorded that video from the hotel room, I had a really different perspective on my face. So, interesting. Thank you all for joining. Again, fifth Friday this month because we realized the fourth Friday was the eve of the Memorial Day holiday and given our conversation toward the end of last month's call realized that would not be good for anyone. So, here we are today. We'll go back to the fourth Friday. Most of the people were concerned that if we tried to do it on a different day, they wouldn't have the ability to join. So, we'll leave it there until we get a consensus that says we should do it some other time.

Okay. So, we have a few questions that we can get started with. The first one, Mr. Well, it says, 'Back in February, you indicated a possibility of reaching break-even by the end of 2026. Is this goal still firm and achievable within your current 2026 outlook?' The short answer is yes. We are in the first quarter, so far in the second quarter we're meeting our expectations. And you know, so that we have set for ourselves and it's those expectations that gave me the confidence to indicate that we would achieve a cash flow break-even by the end of 2026. And it's definitely still a goal. Even if we weren't meeting expectation, it would be a goal and we'd be trying to overachieve in the balance of the year.

Do you do any sales to the many veterinary colleges? Yeah, there are 58 veterinary schools in the United States. You know, people often say it's harder to get into vet school than it is to med school, and it is. But that's a big reason for that is that there's just not very many vet schools in the country. There are 58 and we do business with pretty much all of them. Most of them use the PulseVet for certainly if they're teaching equine veterinary medicine they're absolutely using it and the small animal as well.

Some of the other products that we have like point-of-care labs, well the universities all generally have their own in-house reference labs. In fact some of them do quite a business. Texas A&M is a big provider of reference lab services, Michigan State. So they generally won't necessarily be using our point-of-care devices since they have a lab right down the hall. But we work with a number of those. The process that we follow when we develop a TrueForma assay is we first do in-house all of the testing and validation that gives us the confidence to say this is ready. But then we always send it out to a university site to do the testing themselves. So they can use our point-of-care device and then compare it to their own reference lab and then come back and give us that feedback. So, you know, they're using the device. Yes. But, you know, it's because we're asking them to do the validation work.

And many times, they'll reach out. They have students or people that are going for advanced degrees that want to do some research and publish, and it's pretty popular for them to take a look at our assay from a research perspective. University of Georgia for example looked at our EAC assay and they published on it that it was correlated to the gold standard and also had the additional benefit of providing a score of or what's called CLIP. And they presented that from the podium in the academic session at the AAP. That was a factor in Boehringer Ingelheim saying, 'Wow, you know, if we've got major academic centers that are well respected saying that this assay is just as good as the standard of care, plus it gives additional information, plus you can do it at the point of care.' That's a reason why they, one of the contributing reasons why they added us to their collaboration on their PPID program.

What are my thoughts on how second quarter 2026 is trending? Yeah. It's trending well. We're pleased with where we sit. I will say that if you look at the industry, the animal health industry overall in the first quarter, it was a tough quarter for the animal health industry. If you follow some of the other companies, Zoetis for example, in the US, their business was down in small animal. You look at Idex...

Their business and Zoetis was down and they had a price increase. Idex was up 11% overall. I think they were up less than around 8% or so in the US. 4% of that or half of their growth was through price increases. And interestingly, Idex, they don't sell the capital equipment. They provide it at no charge. It's sort of the industry standard. It's why we do the same thing. But when you look at their Inview device, they had anticipated that they would do about 5,500 units this year. They only did around 1,000 in the first quarter which was below what the analysts thought they would do. It was just a tough quarter. We heard from a private company and it sells primarily ultrasound devices. They were down like 50% year-over-year in terms of sales. So, it was a tough quarter for capital in the first quarter and whether it was the weather or the war or what have you, it's just pretty simple for a veterinarian to say, you know what, let me just wait a little bit on pulling the trigger on that, you know, $30,000 piece of equipment or what have you. So, you know, we clearly weren't pleased with our capital sales, but it was a matter of them not closing yet as opposed to deciding now I don't want it. There's something wrong with it or I don't like it or what have you. So and we see some of that and I just was at a conference and heard other companies talk about how there's been a significant uptick in the last 2 months and we're pleased as I said with second quarter expectations and our second quarter expectations are always higher than our first quarter expectations. So kind of a long-winded answer on that. We're feeling pretty good about it.

There's certainly a long-term plan. I think we've mentioned many times that the way that our shareholders would prefer to see these number of shares outstanding reduced is through a stock buyback. And we've also been very upfront with the fact that we have always have one eye on our finances, on our capital and we would not be engaging in the stock buyback until we are cash flow positive. So in the short term, you know, we're not cash flow positive right now. However we plan to be in the relatively midterm. Of course there are other ways to address the capital structure that could accomplish that result. But that would require the support of shareholders. And I think that's a longer term concept for that to be embraced if it ever is. So I think that answers your question.

So, it's a good question. So, international growth has been very strong. I think you heard from Mike that while we were relatively flat, we had at least one distributor in the international market pull $300,000 in sales into the first quarter of last year because they were concerned that tariffs were going to blow them up. Then they stopped doing that. So, it was good for first quarter of last year and this year we were sort of flat. So, that's a $300,000 increase that didn't show up, which is fine because it's going to show up in the rest of the year. Our international sales are growing. We do have an active presence in Uruguay, Paraguay, and Brazil. Also, Chile, Colombia, Peru, Mexico. There are huge population markets in South America. And for products like PulseVet which is used for equine, these are mostly owned horses down there, relatively affluent members of the population and then there are other countries that don't have the affluence and so it's kind of a mixed bag in terms of which markets are appropriate markets for some of the higher dollar ticket items. We're in about 60 countries with PulseVet around the world, most of those were direct although over the last couple of years as you've seen we've had a major focus on international and we have a master distributor for ECOIN in Europe. We've well I won't go in on all the distributors that we've signed up but I will say this: very few distributors around the world have all of our products and managing the distributors, working with the distributors to say hey you've been successful with this product or that product. Let's get all of our products in here. That is something that we were resource constrained with until recently when we hired Paul Thai. And that's a big reason why we hired Paul Thai and that's a major catalyst because he's charged with going to each of our distributors, introducing making sure that they have all of the products if they're not set up to have all of our products maybe they only cover a certain segment of the market then we can look for alternatives either to have multiple distributors in a market or a new distributor in a market. So we expect that to grow. Now we've been growing nicely as a company worldwide. And the percentage of international sales have been right around 20 maybe sometimes up to around 23% on a quarterly basis over the last several years which basically means that the international growth has kept pace with the domestic growth. And frankly I know that international sales are growing in real dollar terms and I hope that it actually reduces in terms of percentage of our overall revenue because that would mean the much larger US market is growing even faster than that percentage but bottom line we expect growth from both markets. The catalysts are to leverage our existing distribution arrangements to bring new products in and in cases where that's not appropriate then to bring new distributors on board.

I think you pretty much take a look at the revenue that we report. The revenue that we generate comes from a combination we break this out in the Q. It comes from a combination of development engineering services as well as manufacturing of things like prototypes, pilot builds and in other cases finished goods for the marketplace. And so all of that's reflected in revenue. And so I think that's really the answer. Just continue to watch the revenue. As you've seen, it's been right around a couple million dollars for the last couple of quarters. We expect that this is going to continue to contribute towards our path to profitability and certainly to cash flow break even. So I just leave it at that because I can't disclose the confidential customers. They're still a little shy.

They're all contributing and I would just say that I don't think that capital equipment demand is going to stay soft. I think we saw sort of a transient thing in the first quarter. At least for our perspective, that's what I think we saw because we see what we're doing in the second quarter. As far as the rest of the industry concerned, you know, that's kind of on them to sort it out. We don't measure our performance against theirs. It's just interesting context I thought you might appreciate. For us, as you know, we are a consumable oriented company and when you see our consumables go up, that means that they're utilizing our products, are happy with them and the more people that are happy with them and utilizing them more and more then the more support we have for introducing it to new customers. So capital sales are a leading indicator of growth in consumables so I'd look at that. We do intend to launch a couple new assays in the third quarter and a couple more in the fourth quarter for TrueForm. TrueView AI is really performing well in the marketplace and so we expect that to be a significant contributor in the months and years to come. That looks more like a consumable. We don't sell the capital upfront. Vet Guardian Plus, we're working through in the first quarter we were very focused on upgrading the customers that we had sold a Vet Guardian to in recent months. You know, it's not cool to sell your customer on a Vet Guardian at Thanksgiving and then turn around and at Christmas launch a Vet Guardian Plus without giving the opportunity to upgrade them. And in the case of recent purchases within the last two quarters of last year, we did that at no charge. And the reason we can do that is that we can bring that previous Vet Guardian device in and in very short order, just a couple of changes in parts that don't cost that much, we're able to upgrade that to a Vet Guardian Plus device and then that gives us a Vet Guardian Plus device to go out and upgrade another customer. So that was a pretty significant focus in the first quarter. Probably cut into some of our de novo sales frankly. But as we move through that process we're just seeing kind of a lot of traction around that product. Development services are certainly agnostic as to whether our vet business is doing well or how well it's doing. That's really focused on the kinds of things that these collaborative partners are interested in developing. Which of these can help most towards break even? I think to the extent that break even really is a matter of cash flow and cash is fungible, doesn't matter where it came from, I think they all sort of help equally. Now of course PulseVet at $32,000 for a system is going to help more than Vet Guardian at $4,950 or five grand per system and it's going to help more than an initial order of ECOIN assets for TrueForm at a thousand bucks but you take it in the aggregate they all contribute.

Yeah. So, PIMS is practice information management systems. In the veterinary world, in human world, they would call this EMR, an electronic medical record. The PIMS system really is two things. It's a database that a customer they acquire a PIMS system. They get one from Idex or Covetrus or maybe there's 16, 17 other independent ones and it provides them a database. It's everything from scheduling to their customers and who owns them and so on and so forth. A database, but it's also a communication tool. It communicates from the PIMS. You go into the PIMS system and you say, I have a patient Fluffy coming in today and I'm going to want to run this panel of tests. I'm going to want to run some slides. I'm going to do a monitoring session. I'm going to do a PulseVet there. And when you enter when you go into the PIMS system, you select that dog or cat and then you click off the things that you want to do that day. And that PIMS system then sends to the devices all of the information that the device needs to be able to perform that test or that assay or that treatment. And then when the treatment or the test is done, that device communicates back to the PIMS system. And so in one place they have everything that they need. It's a good thing for the veterinarian to be able to review all of the data. It's a good thing for the accounting system because it's going to capture everything to be billed. There's not any manual writing stuff down and missing things to charge for and so on and so forth. So, you know, there's plenty of practices out there that don't have a PIMS system. I don't know how many, probably not that many, but most practices do have a PIMS system. And when you're using it, you get used to it. And so if you have to step up to a TrueForm and enter patient information, you know, what are you working with, a dog or a cat? How much does it weigh? What's the species? What type is it? Who's the pet parent? You certainly are willing to do it if that's the only way you're going to get your point of care test done. But if you have another way, if you have another way to get that test done and it's integrated already with the PIMS system, then you're going to look at that and lean in that direction if you can. And so, from the jump, we've known that we wanted to integrate our products into the PIMS systems, but we also wanted to wait till we got to a critical mass because it's not free, right? We pay the what they call the PIMS integrators, PIMS providers, they're proprietary, so they charge on a per clinic or per month or per test basis. And so what we've developed is the ability through our Myomedica portal, which is kind of like a PIMS all by itself, right? All of our devices connect to the cloud-based Myomedica portal and then any customer that has the access rights can open that up from any browser, whether they're at home or in the office or whatever and they can look at their Vet Guardian monitoring session or see the results for every time the TrueForm has run a test for that patient or what have you. So instead of integrating each of our devices to the PIMS, we integrate all of our devices to the Myomedica portal and then the Myomedica portal will communicate with the PIMS system. We're already into testing what they call end-to-end testing. So yes, our device was able the PIMS was able to send to our device. The device was able to receive the instruction to do the test. Test is done and it was able to send everything back to the PIMS system. So the problem is there's not just one PIMS system. Probably two of them have about 70% of the market and then there's about 16, 17 like that that split the remaining 30%. And so we're in the process of getting those done. We've successfully completed the testing on at least one. I haven't heard in the last week or so I was traveling so maybe more than one at this point. But we had indicated that by June that we would have that done for TrueForm and then we have a bunch of other products to put through that as well. So we still think June through probably September to get all the products that we have connected there and it will make it much more convenient for our practices.

So Canada and the UK where we recently put new distribution partners in place are showing very substantial growth. Turkey interestingly enough showing tremendous growth in particular with TrueForm and they've strengthened their Wi-Fi system internet system in Turkey and so we think they're going to be back to really driving a bunch of the Guardian sales there as well. I think South America, the Brazil area where it's actually serviced out of a distributor in Paraguay. Brazil, that's sort of southern South America, Australia where we have distributors in place already that we expect to add our additional products to. Canada through TrueForm. So in terms of product lines, PulseVet really is it's driving it into the small animal market through our existing distribution centers or getting new ones. That's going to have the biggest revenue impact because of the just the cost of the systems at $32,000. Development services don't it's not really something that we would look at as international versus the US. We would certainly help an international company for sure. But we would just kind of we wouldn't necessarily differentiate that. Well, because this company's based here, it's international. I don't know. I would defer to Mike on how we actually account for it because there's a certain way to do it. But yeah and the largest market so Europe we're seeing some frankly we see interest from countries all around the world whenever we launch a new product they really like the Vet Guardian I see these leads and I wonder how they even hear about it they really are liking the TrueView the idea of that. So maybe we'll on a subsequent call break down by geographic market. Generally what we look at is EU and then you group the Middle East and North Africa together and then you've got Asia Pacific and then you've got South and Latin America and maybe we'll break those out if you have an interest in that.

Yeah, we saw significant outflows. All of the index funds bailed just the morning that we opened on the OTC. Frankly, I'm responsive to institutional investors that contact us, but I spent time, I think as some or many of you know, I was quite active in working with institutional investors for a period of time. And it was very, very low drag, very easy to get them interested in the company. They loved what we're well love, they were interested in what we're doing. They expressed an interest in getting involved. This is when we were traded on the New York exchange. But they all had the same sort of requirements. Number one, we want to make direct investments in the company. We don't want to try and go into the open market and buy, you know, $10 million worth of stock. And two, you know, we would only do this if you're planning on doing a reverse split and have some confidence in getting that done. Once we got delisted by the New York American Exchange and came OTC, that second requirement became even more important to institutional investors. And so, as we look to get to cash flow positive, you know, while it doesn't take much money to go and travel to New York or San Francisco or Miami to attend these conferences, it's not a huge investment. It's still, you know, every little bit is going to count towards getting those to cash flow positive. In addition, you know, investor relations entities, I know some of you maybe were contacted by some of them as we were looking to address the capital structure a couple of years ago. You know, they're it's not a huge amount of money, but it's also not insignificant. And so, we let our investor relations director go and we also terminated our agreements. We said we suspended them, but I mean, you know, we could always bring them back if we wanted, but we are no longer employing investor relations entities. We still get inbound interest. We take those calls, but we're upfront with them about the fact that it's not likely that we're going to be able to address the cap structure anytime soon. And the ones that are in contact with us aren't the same ones. Initially it were, you know, some of the big name funds that just saw, hey, here's a way to get into animal health. It's a great market for this company and so on so forth. Now, it becomes more of the ones that want to do some financial engineering and those would be less of a benefit. So the general sentiment is we have too many shares outstanding. The stock price needs to be priced higher so that it can exceed the limits and thresholds for many of the funds. And they would want to make a direct investment into the company.

I think the question sort of suggests the answer, right? So TrueForm assays, I mean you see the growth in consumables, you see the growth in consumables within the diagnostic market. That's true for that's really growing super fast and super well. TrueView is just getting out there. We're seeing that revenue on a monthly basis. You'll see that increase. Vet Guardian is not really recurring revenue. It is, but it's nominal. It's about $600 a year for the service fees and whatnot, but for those of you old enough to remember the Lay's potato chip commercials, can't just eat one. Our recurring revenue for that is to sell a second and a third. And, you know, there's installations that have quite a few more than that. Vetel is recurring. It's not very expensive. It's about 80 bucks a tube. So it recurs but it's not a huge money that's going to take a while for it to be really substantial revenue from a recurring basis. ECOIN is a lot of that almost all of that maybe not all of it but a lot of that is recurring revenue as people because the loop runs out after 150 treatments. So all of this is factored into our expectations on a quarterly basis and as I indicated earlier we met those expectations that we had for ourselves in the first quarter and are expecting to happen as well in the second quarter.

We're not providing that guidance. When will the website go live? We're making continuous improvements in the website. I think you can see that we've added a new page on development services. I mean it's not going to give you any information we haven't shared here. So that's and we have a new the TrueView AI website's been overhauled. So it's not going to be our existing website goes away and a new one pops up, but you'll see continuous improvement and enhancements to the website by product by product.

Yeah, that's a really good point. All of the data that we collect whether it's TrueForm, the TrueView images, the annotations, the Vet Guardian tracings, the PulseVet usage and so on, all of that well maybe that last thing but all the others is potentially valuable to companies that want to take a look at that data once we get the PIMS connectivity done. Then we'll take a look at that database overall and potentially we'll be able to monetize that. So any new assays? Yeah, we have a couple we're going to launch in the third quarter and a couple more we're going to launch in the fourth quarter. Any new developments on the human health side? Not that I could disclose at this point.

We definitely think we'll see better rates for closure on the TrueForm product because that's been a little bit of a barrier. Vet Guardian Plus are going to really enjoy the fact that it's PIMS connected, but that device, you know, they want it. And if it means they have to punch in the name of the pet, they're going to do that. TrueView AI, it's important for them as well. So that should have a positive impact on that.

You know, the schedule is in 2027. All right, let me just repeat that. I mean, that's what we said from the jump. However, we've also given pretty clear indication and I said it earlier today is that we expect to actually get to cash flow break even by the end of the year. So, any new studies coming out for PulseVet and are you doing anything different to get it into the companion animal market? There's generally always some studies going on. Oh yeah. So there are two things that recently have been going on. The asthma clinical registry for PulseVet for horses for equine is ongoing and same thing with hoof depth. So those are sold out. Those are new indications for ECOIN. In terms of the companion animal market, there was another study that came out of I think Germany not too long ago. It's just it's so well established in the vet community at this point that we don't see a need other than a new indication to invest in any clinical research. You know, we were asked the other day to do some clinical research to basically rehash things that have already been well established. You know, we're not going to make those investments right now. In terms of doing anything different, we're continuing to work towards a tipping point. You know, if you look at TrueForm in the ECOIN market, tipping point, we're getting requests every week and sometimes every day from ECOIN vets who say, Hey, I want this. And it's not in reaction to somebody going out and knocking on the door saying they've read about it, they've heard about it, tipping point. We're not at the tipping point with PulseVet and companion animal, but we're moving down the road towards it. That's just, you know, if once they realize that it's a new revenue stream, it provides them with a high margin, but most of all, the dog limps into the treatment room and walks out. And once they see that, then they're sold. We don't have vets that buy PulseVet machines and let them sit in the corner gathering dust. They use them. They see that it works. Most importantly, the pet parents see that they work. And now everybody's happy. You know, if you're a veterinarian, one of the things that you like to do least is to tell a pet parent that they need to spend x amount of dollars for pretty much anything, whether it's a lab result, and we all know this. We go to the vet and they say, Hey, your lab work's going to be so many hundreds of dollars. And you're like, Whoa. And it's not something we ever experience when we go to a doctor ourselves because insurance is covering it. We don't ever see that the lab work is thousands of dollars because by the time it gets through the insurance, we're paying a very small piece of that, but for animal health, it's a cash business. For those of us that have pets and don't want to get hit with big bills, insurance is the way to go, pet insurance. But put that aside. Vets don't like that, right? They're nervous about it. They didn't sign up to be salespeople. They want to take care of animals. So the best thing we can do for the vet is to put them in a situation where the pet parent sees results right then and there because then they're sold and then the vet can be confident in saying, No, you need this treatment. Your dog should get this treatment, this $300 treatment, and one more of these two weeks from now. So, $600 on your part, you're going to be able to get them off that drug that you're paying more for in an annual basis. If it's a cat, not only do you have to pay for the drug, but you got to try and stick that pill down their throat every day, which is why you got scratches all over yourself and that cat loves you. You're going to be able to avoid surgery. Once they know and see that it works and that the pet parent is going to see that it works, then they're not anywhere near as hesitant to ask them to invest in that treatment.

I'm sure that they do. The key thing in terms of the country on a country-by-country basis is what's the percentage of the dogs or cats that are what we call medicalized. Right in the US about 75% of dogs are termed medicalized that is when they're puppies when they're small dogs when they're older dogs they're going to go to the vet. It's about 50 it's a lesser percentage for cats I want to say around the 50 high 50% range. And that's a very good business for us. In England, in Germany, in France, dogs, cats, medicalized, Japan, medicalized cats, dogs. I don't know in Lebanon what the percentage of medicalized dogs are. It's a question I'll take it down and I'll ask in the future if we have a PulseVet in Lebanon or not. If we don't frankly not looking to go to that part of the world just now not looking to send people into the Middle East right now to try and establish new distribution. I hope and frankly pray like the rest of the world probably is that there'll be come a time pretty soon when we don't have to worry about that. But yeah if there's a market we'll be there. And incidentally, if you know someone in Lebanon and they could use some of our technology or a vet or whatever, we can always ship from the United States. We can ship direct over there.

We do, and I don't know what it is. So, I'll have to get back to you. We'll put a press release out in the near term to do that.

I think we actually talked about that, but let's go ahead and do that. We now have a nice base. If you look, one of the things that we have done is we've tried to go back into the website and label them with exactly what they're covering and so on and so forth. So, that's a good suggestion and we'll get that done.

In a word, yes. Right. Just yes. And that's what we're doing.

So, you know, I think there's a lot of insiders, right? There's my camera just zoomed in for some reason. We're insiders, but I regard everyone on this call that owns shares in Zomedica as insiders, too. You own stock. The fact is, though, is that with almost a billion shares out there, there's only so much that we as insiders can do. And some insiders, you've got bills to pay. You know, tuition's coming due. Parents need support. All sorts of reasons why people might need to sell and so we just you see what happens. I think you've seen when our stock goes up a bit you can see there's a few days or three or four days or a couple weeks where you see steady increase in the volume and that's generally when I look at that I think okay someone is taking a position in the company and you're doing in the open market. But then once that is done, then it's relied on all of us as insiders, you know, we can't purchase during closed windows. Frankly, with some of the things that we're getting ready to we're preparing to do for the new year. You know, I'll tell you right now, I'm not going to be in a position more than likely to purchase shares. Not financially I would be able to but not going to be able to from an insider trading regulation policy. Just giving you that heads up now. And no, I'm not going to tell you why. I can't but you know there will come a time. We're not going to deploy the capital that the company has to buy back shares, whether it's a Dutch tender, which is just a fancy way of saying auctioning off how you sell the shares, but it's still a buyback. We're not going to do that until we're cash flow positive. And even then we'll need to take a really hard look at what kind of a safety reserve. You certainly wouldn't but let me just leave it at that. So once we're profitable if we're GAAP profitable then we'll explore all the options and one of those options that we understand people are interested in is a share buyback. And there's even potentially some combination of taking an investment from somebody that wants to take a significant position and then turn around and using that capital to buy back shares. I mean, I'll defer to Mike and our corporate counsel as to how kosher that is, how appropriate that is. But we'll look at all the different offers. But we're just not in position. And frankly, $20 million right now it's just first of all, as you've seen the market move, it's not going to buy that many shares back anywhere close to what would have a meaningful impact. And so it's going to have to be a long-term strategy that says, Okay, we're going to take x percentage of our profits each year and we're going to invest in this and buying stock back and so on and so forth. And not do something that's going to lend itself to letting day traders or market people that like to play the market a certain kind of way take advantage of it. Because it would be for the benefit of our long-term shareholders.

Thank you. Yes, we have confidence that we can grow the company revenue, profitability, and so on. And eventually address the share price. You know, I mean first quarter results our revenue was up 35%. Our cash flow was down 20-some percent. I mean cash burn was down some 20%. Over last year our consumable revenue was up way high. We announced a partnership with a well-known company in veterinary medicine, Boehringer Ingelheim, to kind of validate ourselves and you know the share price didn't really move. So in terms of we can do all those things and whether the share price moves is another subject and let me just leave it at that.

All of those things are things that we watch. We watch those monthly, quarterly. We watch those very significantly. We don't disclose though that level of detail. And so what shareholders can look at is capital revenue and consumable revenue. And you're going to see those continue to go up, I believe.

So, recovering market value, you know, we're pretty much about the same value as we were about before the delisting. So, I don't think they're worried too much about recovering market value, it's creating market value, expanding our market footprint. I will tell you that the comp committee is very focused on getting to cash flow break even, and profitability. So I think all of those things are important. I don't take issue with the way the question is phrased. But really the primary thing in some cases the only thing that is that they're concerned with is cash break even and profitability.

Yeah, I agree with that. And once we're cash flow positive, you know, then that kind of thing comes into play. I don't think anybody would be any of our current shareholders would be happy to hear that we went out and took on debt to buy back shares when we're not yet cash flow positive. But once we get to that point, then all bets are off. Well, let me say like that. That's a phrase. I don't even know what that means. Once we get to that point, then we're going to consider that as an option.

Yes, that's what that means. It means that there are things that as we move forward it will become more probable than not that certain material things that are known to me would not be and not known to shareholders would be likely to occur. I mean, that's the way that you evaluate stuff like that is, you know, we can all have plans for by golly, in x number of years, we're going to be $100 million. We're going to be trading on such and such an exchange and I can have all these great ideas. We can have all these great plans and visions to do them, but I can't say right now it's more probable more likely than not that that's actually going to materialize in the time frame we just indicated. And so that doesn't count. But if we have things that we know that we're approaching, if we have things that we know that we're working on, and as we gain more confidence in our ability to actually accomplish certain things, then once they become more likely than not, then they become and or material, that's the other thing. It has to be material to the company. Then that would preclude me anyway and others that are privy to certain future accomplishments or future milestones that would lock us out. But damn, if it went to 5, I don't know. I'd probably announce everything just so I could buy more shares. I don't know. Leave it at that.

All right. Someone snuck one more in here. Let me just see. It's more of the same. So, I'm not going to read anymore. So, it's really well past time. I appreciate your attendance on these calls. I appreciate your support of Zomedica. Happy to talk directly. Not going to tell you anything that's not been shared publicly, but would certainly be happy to hear from shareholders as you move forward. As you might notice, we added a little bit of questionnaire on the registration form just to help us get to know you better and to know if you have specific questions or instances. If that I don't know if we put your email address on there, but if we did, then we'll respond to you directly on some of those. And leave it at that. I hope you enjoy the rest of your Friday afternoon evening and happy belated Memorial Day as you say. Take care.