Financial Performance - Revenue for the three months ended June 30, 2024, was 6,131,anincreaseof111, or 2%, compared to 6,020forthesameperiodin2023;revenueforthesixmonthsendedJune30,2024,was12,393, an increase of 891,or823,931, an increase of 18,682,or3565,249 for the same period in 2023; for the six months, the net loss was 33,091,anincreaseof21,457, or 184%[150]. - Cash used in operating activities for the six months ended June 30, 2024, was 14,309,anincreaseof6,376, or 80%, compared to 7,933forthesameperiodin2023[152].GoodwillandImpairment−Thecompanyreportedagoodwillimpairmentchargeof16,024 for the three and six months ended June 30, 2024, due to slowed future sales growth projections and increased operating expenses[132]. - The carrying values of goodwill for the PulseVet and Assisi reporting units at June 30, 2024, were 43.4millionand2.2 million, respectively[134]. - The company evaluates goodwill for impairment annually or when triggering events occur, using qualitative and quantitative analyses to assess fair value[128]. - As of June 30, 2024, the implied control premium for the company's reporting units was 52.0%, consistent with historical premiums in the Medical, Dental, and Hospital Equipment and Supplies industry[135]. Operating Expenses - The company’s operating expenses consist of general and administrative, research and development, and selling and marketing expenses, with significant costs related to public company compliance[113]. - Research and development expenses for the three months ended June 30, 2024, increased by 647,or751,506, while for the six months, it increased by 1,500,or843,277[147]. - Selling and marketing expenses for the three months ended June 30, 2024, were 3,923,anincreaseof842, or 27%, compared to 3,081forthesameperiodin2023;forthesixmonths,expensesincreasedby1,533, or 24%, totaling 8,030[148].TaxandDeferredTaxAssets−ThecompanyhasrecordedafullvaluationallowanceagainstitsCanadiandeferredtaxassetsduetouncertaintyinrealizingtaxbenefitsasofJune30,2024[119].−AsofJune30,2024,thecompanyhaddeferredtaxassetsfornetoperatinglosscarryforwardsof14,069 million for U.S. federal income tax purposes and 9,581millionforCanada,withexpirationsbeginninginfiscalyear2035[157].−Thecompanyhasevaluatedtherealizabilityofitsdeferredtaxassets,resultinginaderecognitionof3,814 million, reducing the carryforward to 10,225million[157].InternalControlsandCompliance−ThecompanyhasremediatedamaterialweaknessininternalcontroloverfinancialreportingasofJune30,2024,whichwasrelatedtothetimelinessandprecisionofmanagement′sreviewcontrolsaroundfinancialprojections[165][168].−Thecompany’sinternalcontroloverfinancialreportingwasassessedaseffectiveasofJune30,2024,followingremediationefforts[166].−Thecompany’smanagementisresponsibleforestablishingeffectiveinternalcontroloverfinancialreportingtoensurereliabilityinfinancialstatements[165].−Thecompany’sdisclosurecontrolsandprocedureswereinitiallydeemedineffectivebuthavebeenimprovedfollowingremediationofidentifiedweaknesses[165].StrategicFocusandMarketConditions−ThecompanyisfocusedonleveragingitsrecentacquisitionofQorvointonewassaydevelopmentfortheTRUFORMAR◯platform,expandingcapabilitieswithinexistingproducts,andexploringnewmarketopportunities[114].−ThecompanycontinuestomonitorthepotentialimpactsoftheInflationReductionAct,whichincludesanew11 billion[117][118]. - The company acknowledges the uncertain impact of climate change on operations and customer needs, which may lead to increased operating costs and risks[158][159]. - There were no material changes in risk factors from those previously disclosed in the annual report for the year ended December 31, 2023[171]. Customer Contracts and Liabilities - As of June 30, 2024, the estimated value of the Therapeutic Device customer contract liability was 553;a261[140]. - The carrying value of the company's Diagnostic instruments was $10,330 as of June 30, 2024; a 25% reduction in estimated revenues would increase the payback period from 2.93 years to 3.81 years[137]. Stock-Based Compensation - Stock-based compensation expense is calculated using the fair value method and is recognized based on the expected vesting of stock-based payment awards[122]. - The company adopted the 2024 Stock Appreciation Rights Plan, allowing for the grant of stock appreciation rights up to 10% of the issued and outstanding shares of common stock[160]. Fair Value Assessment - As of June 30, 2024, the fair value of the PulseVet reporting unit exceeded its carrying amount, including goodwill, by 56%, while the Revo Squared, SMP, and Assisi reporting units had fair values below their carrying amounts by 64%, 80%, and 3%, respectively[132].