Zomedica (US:ZOM)2022-05-10 20:11Revenue and Financial Performance - For the period ending March 31, 2022, the Diagnostics segment reported $57 in revenue from consumables, while the Therapeutics segment reported $1,590 from instruments, $1,952 from trodes, $73 from extended warranties and services, and $79 from other revenues[33]. - The consolidated operating results for 2021 included revenues of $4,008 and net income of $454 since the date of acquisition of PulseVet[39]. - The company’s revenue for the three months ended March 31, 2022, was $3,751,000, with diagnostics contributing $57,000 and therapeutics contributing $3,694,000[66]. - Revenue for the three months ended March 31, 2022, was $3,751, an increase of $3,737 compared to $14 for the same period in 2021[115]. - Revenue from the PulseVet platform was $3,694, while revenue from the TRUFORMA® platform was $57, an increase of 307% compared to the previous year[115]. - The company expects revenue to increase in subsequent periods as sales and marketing efforts for the PulseVet platform are enhanced and additional assays are added to the TRUFORMA® platform[115]. Expenses and Losses - For the three months ended March 31, 2022, the Company recognized $152 in rent expense, with $16 in research and development expenses and $136 in general and administrative expenses[47]. - Selling, general and administrative expense increased by $3,254, or 91%, to $6,722 for the three months ended March 31, 2022, primarily due to increased share-based compensation[119]. - The company’s operating loss for the three months ended March 31, 2022, was $4,314,000, with a loss before income taxes of $4,215,000[66]. - Net loss for the three months ended March 31, 2022, was $3,937, a decrease of $100 compared to a net loss of $4,037 for the same period in 2021[122]. - The accumulated deficit as of March 31, 2022, was $123,328, indicating ongoing losses since inception in May 2015[127]. Assets and Liabilities - As of March 31, 2022, total inventory was reported at $3,606, with reserves of $28[41]. - The Company’s net property and equipment as of March 31, 2022, was $1,373, an increase from $1,130 as of December 31, 2021[43]. - The total lease liabilities as of March 31, 2022, amounted to $1,277,000, a decrease from $1,379,000 as of December 31, 2021[49]. - As of March 31, 2022, the company reported total assets of $277,990,000, a slight decrease from $280,400,000 as of December 31, 2021[66]. - The Company recorded an allowance for doubtful accounts of $36 as of March 31, 2022, compared to $34 as of December 31, 2021[32]. Cash Flow and Financing - Net cash used in operating activities for Q1 2022 was $2,471, a decrease of $168 or 6.4% compared to Q1 2021[124]. - Net cash used in investing activities increased to $206 in Q1 2022 from $18 in Q1 2021, representing an increase of $188 or 1,043.7%[125]. - Cash from financing activities was zero in Q1 2022, a decrease of $217,267 or 100% compared to $217,267 in Q1 2021[126]. - As of March 31, 2022, the company had cash and cash equivalents of $192,337, down $84,265 or 30.5% from $276,602 at the end of Q1 2021[123]. - The company believes existing cash resources will be sufficient to fund operational requirements through at least December 2024[131]. Acquisitions and Goodwill - The acquisition of PulseVet on October 1, 2021, was completed for a purchase price of $71,929, resulting in goodwill of $43,288, which is not deductible for U.S. tax purposes[38][39]. Research and Development - The company has focused its development efforts on the TRUFORMA® platform and PulseVet technology to capitalize on core strengths and accelerate commercialization[84]. - The company’s research and development expenses primarily consist of salaries, consultant fees, and materials used in clinical trials, all of which are expensed in the period incurred[88]. - Research and development expense decreased by $62, or 15%, to $351 for the three months ended March 31, 2022, due to reduced activity associated with TRUFORMA®[118]. Stock Options and Compensation - The Company issued 14,425,000 stock options during the three months ended March 31, 2022, compared to 1,400,000 stock options issued in the same period of 2021[50]. - Stock-based compensation recorded for the three months ended March 31, 2022, was $2,041,000, an increase from $1,283,000 in the same period of 2021[54]. - The balance of stock options at March 31, 2022, was 57,632,724, with a weighted average exercise price of $0.45[51]. - The Company’s stock options have a remaining life of approximately 9.12 years on average[51]. Lease Agreements - The company entered into a lease agreement for 61,500 square feet of office and warehouse space with a monthly rent starting at $9, escalating to $11 over the lease period[69]. - The Company’s net book value of right-of-use assets as of March 31, 2022, was $1,218,000, down from $1,320,000 as of December 31, 2021[49]. - The Company recorded a straight-line amortization of $461,000 for right-of-use assets during the three months ended March 31, 2022[49]. - The total remaining undiscounted lease liabilities for 2022 are projected to be $347,000[49]. Foreign Currency Risks - The company is exposed to foreign currency risks that may impact reported revenue and operating income due to international operations[138].