Zomedica (ZOM) Status update summary

Strategic objectives and R&D focus

• Five pillars guide all decisions: pet care quality, pet parent satisfaction, workflow efficiency, cash flow, and profitability.

• R&D strategy blends acquisitions with internal development, retaining key expertise to drive innovation and efficiency.

• ISO 13485 certification achieved, ensuring high-quality, well-documented product development.

• Structured phase-gate process aligns product development with user needs and market demand.

• R&D efforts are closely tied to profitability and sustainable growth.

Product platform updates and innovation

• TRUFORMA platform expanded to 18 assays across three species, with equine market entry leveraging PulseVet brand.

• Notable TRUFORMA innovations include highly sensitive feline TSH and advanced equine insulin and ACTH assays.

• VetGuardian platform enhanced with VETGuardian PLUS, featuring improved hardware, radar, and upcoming AI-based cloud features.

• TRUVIEW digital microscope transformed for workflow efficiency, integrated AI for hematology, and seamless slide preparation.

• NanoView wireless ultrasound device added to portfolio, offering exclusive US distribution and multi-mode imaging.

Financial outlook and operational performance

• Q1 2026 started strong; Q4 2025 expected to be highest revenue quarter, with gross margins at historic levels.

• Operating loss for 2025 higher due to impairment, but adjusted loss expected to narrow in 2026.

• Profitability targeted for 2027, with potential for breakeven by end of 2026 at ~$55M revenue run rate.

• Positive operating leverage anticipated in 2026, with focus on revenue growth, margin improvement, and OpEx reduction.

• Share buybacks considered only after achieving cash flow positivity.