Zomedica (ZOM) - 2024 Q4 - Annual Report

Financial Performance - For the fiscal year ended December 31, 2024, the Company reported revenue of $27,285 million, an increase of$2,099 million or 8% compared to $25,186 million in 2023 [251]. - The gross profit margin for the year ended December 31, 2024 was 70$46,982 million, an increase of $12,453 million or 36$34,529 million in 2023 [265]. - Cash used in operating activities for the year ended December 31, 2024 was $23,630 million, an increase of$7,655 million or 48% from $15,975 million in 2023 [268]. - Cash provided by investing activities increased significantly to$17,854 million for the year ended December 31, 2024, compared to $1,577 million in 2023, a change of$16,277 million or 1032% [269]. - The Company had an accumulated deficit of $217,915 million as of December 31, 2024, and working capital of$72,442 million [271]. Impairment and Tax - The company reported total impairment charges of $16,024, primarily related to goodwill associated with certain reporting units due to changes in future sales growth projections and operating expenses allocation [236]. - The Company recorded a goodwill impairment charge of$16,024 million for the six months ended June 30, 2024, driven by changes in future sales growth projections [237]. - The company has recorded a full valuation allowance against its Canadian deferred tax assets due to uncertainty in realizing tax benefits [217]. - As of December 31, 2024, the company had net operating loss carryforwards of $16,044 for U.S. federal and state income tax purposes, and non-capital loss carryforwards of$6,419 for Canada, which will begin to expire in fiscal year 2039 [215]. Product Portfolio and Development - The product portfolio includes six platforms: TRUFORMA, TRUVIEW, VETGuardian, PulseVet, Assisi Loop, and VETIGEL, focusing on diagnostics and therapeutic medical devices [202][205]. - The TRUFORMA platform provides point-of-care diagnostic products for dogs, cats, and horses, enabling quicker disease diagnosis and treatment [206]. - The VETGuardian platform offers continuous wireless monitoring of pets' vital signs, assisting veterinarians in rapid diagnosis [206]. - The PulseVet platform delivers non-invasive electro-hydraulic shock wave treatment for various conditions, promoting healing and reducing the need for surgery [206]. - The company is focused on leveraging its acquisition of Qorvo for new assay development within the TRUFORMA platform and exploring new market opportunities [213]. - Research and development expenses increased by $1,524 million or 27$7,268 million for the year ended December 31, 2024, driven by the development of next-generation diagnostic products [260]. Operating Expenses - Selling and marketing expenses rose by $3,055 million or 22$17,192 million for the year ended December 31, 2024, primarily due to increased hiring campaigns [262]. Climate Change Impact - The company anticipates that climate change may increase operating costs due to potential physical risks and supply chain impacts [283]. - The company is unable to predict the future impact of climate change due to significant economic variability associated with changing conditions [283]. Public Company Costs - The company faces costs associated with being a public company and expenses related to business development or mergers and acquisitions [279]. Stock Information - As of March 13, 2025, there are 979,949,668 common shares issued and outstanding [279]. - There are stock options outstanding under the Stock Option Plan to acquire an aggregate of 89,051,943 common shares [279]. - Common share purchase warrants issued in February 2020 allow holders to acquire 197,917 common shares at an exercise price of $0.1500 per share [279]. - Common share purchase warrants issued in July 2022 allow holders to acquire 363,501 common shares at an exercise price of$0.1500 per share [279]. - Additional common share purchase warrants issued in July 2022 allow holders to acquire 10,000,000 common shares at an exercise price of $0.2201 per share [279]. - Further common share purchase warrants issued in July 2022 allow holders to acquire 22,000,000 common shares at an exercise price of$0.2520 per share [279]. Recent Accounting Pronouncements - Recent accounting pronouncements are not expected to have a material impact on the company's consolidated financial statements upon adoption [278].