Zomedica Corp. (ZOMDF) Earnings Call Transcript & Summary

Before we begin, I want to remind current and potential investors that we will be making various remarks about future expectations, plans and prospects that are considered forward-looking statements. There are risks that actual results may differ from these statements. We refer you to the safe harbor statement at the end of this presentation or to the forward-looking and Risk Factors sections of our public filings, which can be found on our website under Investor Filings, EDGAR and SEDAR+. The statements are made as of today, May 23, 2025, and reflect our expectations as of today. Thank you for joining us for Zomedica's Investor Webinar Series. We're excited to have you with us as we take a closer look at our company, our innovative product platforms and the passionate people driving our success. This series is designed to give you a deeper understanding of how we're delivering value to veterinarians and to our shareholders. At Zomedica, our mission is to deliver innovative diagnostic and therapeutic technologies that empower veterinarians to focus on what they love most: enhancing pet care and improving pet parent satisfaction. Equally important, we help vets with what they need most: streamlining workflow, increasing cash flow and boosting practice profitability. We're focused on 2 of the fastest-growing segments in animal health: therapeutic devices and diagnostics and have built a total addressable market of $2.7 billion in annual recurring revenue. We've launched 6 product platforms, including PulseVet, each purpose-built to drive better outcomes, improve workflows and enhance practice profitability. Our performance backs it up. Since the acquisition of PulseVet and Assisi, therapeutic device revenue was up 25%; diagnostics revenue was up 77% in fiscal year 2024; and we've maintained strong gross margins around 70%. This isn't just growth. It's momentum. Now let's hear from Larry Heaton, Zomedica's Chief Executive Officer.

Hello, and welcome, everyone. I'm Larry Heaton, Chief Executive Officer of Zomedica. Thanks for joining us for our monthly Fourth Friday at Four Zomedica webinar series. Whether you're a pet parent, a shareholder, an investor, a pet health professional, or simply someone passionate about animal well-being, we're excited to have you on this journey with us. At Zomedica, we believe in transforming pet health through innovation. Our mission is simple: to bring cutting-edge veterinarian trusted solutions to market, helping pets live healthier, happier lives while making care more accessible for pet owners. But what truly sets us apart isn't just our products. It's our people. Each month, this series will introduce you to the dedicated people behind our technology, the science that drives our innovation and the real-world impact we're making in pet healthcare. Today you'll get a firsthand look at how we're revolutionizing the industry with our flagship product, the PulseVet Shock Wave device, designed to enhance pet care, reduce pain and inflammation and improve quality of life with the help of your veterinarian. We're here to educate, engage and most importantly, empower you with the knowledge and confidence to be a part of this exciting future with us. Thank you for being here, for believing in our vision and for your continued support of Zomedica. Let's get started.

At Zomedica, our mission is guided by what we call our 5 pillars. These are core objectives that shape every decision we make about products and innovation. First and foremost, we aim to improve the quality of care for the pets. Equally important is enhancing the satisfaction of the pet parent, ensuring they feel confident and comfortable with the care provided. Our solutions also focus heavily on improving the veterinarian's daily workflow, helping veterinary practices operate smoothly and efficiently. Additionally, we are committed to positively impacting veterinarian cash flow, making sure our offerings are financially accessible and beneficial. Finally, our ultimate goal is to increase veterinarian profitability, providing products and solutions that help veterinary clinics grow and thrive financially. The PulseVet system perfectly embodies these 5 pillars. It significantly improves pet care quality by accelerating healing and reducing pain, directly contributing to pet parent satisfaction through noticeable, rapid results. Its ease of use enhances veterinarian workflow, reducing treatment time and allowing veterinary staff to focus more on patient care. Financially, the PulseVet system supports veterinarian cash flow through flexible purchasing models. Ultimately, PulseVet boosts practice profitability by offering a high-value treatment that attracts clients and supports consistent revenue growth. Speaking of revenue growth, let's take a look at how sales of the PulseVet system have grown over the years and highlight some of the key events that helped drive that growth. Starting in 2017, PulseVet device sales were on a steady upward path as awareness and demand for regenerative therapies continued to grow. In 2020, sales experienced a brief slowdown due to the impact of COVID-19, which paused many elective veterinary procedures. During that same period, we were still competing directly with NeoVet. That changed in late 2020 when PulseVet acquired NeoVet. By early 2021, the NeoVet system was officially discontinued and we gained their customer base, eliminating competition and simplifying our value in the market. Later in 2021, Zomedica acquired Pulse Veterinary Technologies. With that acquisition came expanded resources, wider reach and a more experienced sales force focused on customer education and onboarding. As practices resumed normal operations post-COVID, device sales rebounded sharply. Improved branding, strong customer support and increased adoption across veterinary clinics all contributed to the growth. Since the October 2021 acquisition, sales have grown to $20.6 million in fiscal year 2024, and the number of installed systems has increased from 1,200 to over 2,000 worldwide. Now that we've covered PulseVet device sales, let's talk about the recurring revenue driver, trodes. The PulseVet system is made up of the PulseVet generator, a onetime purchase by the vet, and also the PulseVet trodes, which enable the system to be used for 50 to 65 treatments depending on the animal, after which they must be replaced. These trodes represent consumable revenue for Zomedica. In comparison to device sales within the same time period, trode sales followed a similar pattern. From 2017 through 2019, we saw consistent growth. In 2020, the pandemic caused a brief dip, followed by a transition period as we phased out the older Versatron system. That shift created a temporary slowdown. But once clinics adopted the newer PulseVet platform and training ramped up, trode sales recovered quickly. Today, recurring revenue from trodes continues to climb, driven by increased system usage, better customer engagement and ongoing support from the experience brought by Zomedica. This entire journey reflects a story of resilience and smart execution, from navigating a global pandemic to integrating a former competitor, to scaling with Zomedica's support. Each phase has strengthened our position and solidified PulseVet as a leader in veterinary regenerative therapy. Now let's dive into PulseVet, starting with a look at what Shock Wave therapy actually is.

That was a shock wave, a supersonic high energy pressure or sound wave. Did you know focused shock waves can offer highly effective medical treatment for canine, equine and other veterinary injuries? Here's the thing. Not all shock waves are created equal. Electrohydraulic shock wave generators have, by far, the most evidence for clinical rehabilitative success. Shock wave devices are used medically on humans and animals for a variety of applications. For example, lithotripsy uses shock wave energy to break up solid kidney stones. In the case of PulseVet Shock Wave, focused energy has been clinically validated to help heal soft tissue injuries and reduce chronic pain. Its pulsed energy waves stimulates cells, triggering the release of a wide variety of growth hormones and beneficial proteins that increase blood flow, accelerate bone and tissue healing and regulate inflammation to ultimately enhance the healing process. There are 3 main types of shock wave generators: Electrohydraulic, used by PulseVet Shock Wave; Piezoelectric; and Electromagnetic. The original shock wave devices utilize the electrohydraulic effect, where an underwater electrode like a car spark plug fires to form an explosive vapor bubble similar to the way lightning causes thunder. A primary shock wave reaches the tissue, almost immediately followed by a more intense, focused reflected wave. Piezoelectric and Electromagnetic devices were developed to more consistently control pulses into a smaller focal volume to break up kidney stones without unnecessarily focusing energy into the surrounding kidney tissue. While both Piezoelectric and Electromagnetic generators only deliver a single wave during each pulse, electrohydraulic generators uniquely deliver both a direct wave as well as a focused reflected wave to the affected tissue. This unique combination may give electrohydraulic devices a more varied and stimulating effect with each pulse, while the other devices produce a more repetitive, uniform wave. Ultimately, electrohydraulic shock wave generators create a significantly different output than electromagnetic and piezoelectric generators. Clinical research shows electrohydraulic generators have by far the most evidence for success, despite all 3 methods being available for commercial use in veterinary medicine for about 20 years. When choosing shock wave for clinical use, knowing the type of generator offered is crucial. It can make all the difference in treatment outcomes for your elite performance horse, working dog or family best friend. Results matter. Ask to see the evidence.

Now let's take a moment to meet some of the key people behind the PulseVet platform, those helping drive its continued growth and success. First up, we'll hear from Courtney Calnan, PulseVet's Senior Product Manager.

Hello. My name is Courtney Calnan, and I'm the Senior Product Manager for Therapeutics here at Zomedica. I come from many years in the animal health industry, spanning both sales and marketing. My first introduction to shock wave therapy and the PulseVet system was about 12 years ago when I had a horse who had a significant injury and her prognosis was not good. My veterinarian suggested that we try shock wave therapy as a last-ditch effort to get the horse comfortable. I'm happy to report that the horse not only became very comfortable but came back to a very successful competitive career. These results led me to become an advocate for the PulseVet system. I would tell anyone who would listen how much of a difference it made for my horse and how happy I was with the results. So when the opportunity presented itself about 2 years ago to join Zomedica and to head up product management for the PulseVet system, I jumped at it. There aren't many times that you get the opportunity to work with a company and a device that has made such a difference in the quality of life for your animal. The PulseVet Shock Wave system is a global leader in shock wave technology. It grew to prominence in equine sports and rehab medicine over the last 15 years or so. And then in the last couple of years, a new accessory device was developed, which enabled the PulseVet Shock Wave system to be used in small animals without the need for sedation. It's been clinically proven to enhance the quality and speed of healing in a variety of musculoskeletal conditions, from ligament and tendon injuries to osteoarthritis, wounds, LS disease and nonunion fractures. The PulseVet Shock Wave system is small, fast, powerful and easy to use, making it a must-have for veterinary clinics. So the PulseVet system stands out in the market due to its electrohydraulic shock wave technology. Electrohydraulic shock wave technology is the only type of shock wave with over 15 years of veterinary-specific peer-reviewed research. One of the things I love about the PulseVet system is that the device has presets that have been clinically proven to be effective, making it easy for veterinary technicians to perform these treatments. That helps the veterinary technicians feel empowered and a part of the treatment protocol. Additionally, PulseVet system provides customizable treatment protocols that allow tailored care for individual animals, ensuring precise and effective results. This means that if a veterinarian wants to do a treatment protocol that maybe the presets aren't quite right for that treatment, they're going to be able to tailor it just for that pet. When it comes to training small animals, the PulseVet Shock Wave system can be used to treat both dogs [Audio Gap] for a variety of injuries and chronic pain. For our small animal patients, only one trode is needed to treat all sizes. Some of the common places or things that we treat include tendon and ligament injuries, bone healing, chronic pain and those hard-to-heal wounds. In equine practice, PulseVet Shock Wave has developed a reputation as the gold standard therapy. Obviously, horses are significantly larger than our small animals that we treat. So our equine and mixed animal systems come with 4 different trodes or handpieces, allowing exact depth penetration needed for the equine indications. Our newest indications that we are most excited about are the results that we're seeing in exercise-induced pulmonary hemorrhage and asthma. Both of these conditions affect a large number of horses. We feel that the results that we are seeing in these 2 conditions will make a difference for horses at every level, whether it's a horse at the top of its competitive game or your child's best friend. Let's dive into the technology. The PulseVet Shock Wave system uses a noninvasive, high-energy, sound wave technology that reinitiates and amplifies the body's own healing process. Shock wave therapy was originally developed in human medicine. You may have even seen one at your chiropractor. One thing that sets the PulseVet Shock Wave system apart is over 15 years of published clinical research in veterinary patients. It has been proven to treat a variety of equine and canine indications. It speeds healing, manages pain and resolves lameness. It's a great surgery alternative in drug-free pain management solution. Pet parents are concerned about long-term effects that some of these medications can have on their pets, which makes PulseVet a great option for those pets. The treatments take less than 5 minutes and only 1 to 3 treatments is needed for optimal results. This means higher levels of compliance, resulting in better outcome and happier pet parents.

So you're asking me to talk about something I really enjoy talking about, and it's our PulseVet operations, which include a lot of things, but mainly, it's our people around PulseVet. We have a very tenured, loyal staff of people, all the way from customer service through shipping the product. Most of these people that are in this process have been in this process for over 10 years. My manufacturing folks are 14-year tenured people. To give you one example, one of the first hires that PulseVet made when they started manufacturing the product, which was 14 years ago, he now is our manufacturing manager over my whole manufacturing operation in Georgia. So we really believe in these folks. They're very loyal people. They're very good at what they do. They have a lot of talent and experience in all the manufacturing processes, but specific to PulseVet, because that's where they started and that's where they still are most of them. And here's what that buys us. That buys us loyalty of our folks. We believe in them. We believe in what they do. We invest in our folks through training and other means, giving them the proper tooling and equipment to do the job right. And when we have opportunities through our growth, we're promoting from within, and our hiring is done at the entry-level positions and we're promoting from within, which has really worked out well for us. What that does is that ensures that our gross margins are excellent, the reliability of our product is exceptional out in the field. And that really is what is driving culture in our operations activities. It's to ensure that our margins are improving, ensure that the reliability of our product, our quality of our products are always improving. It really is a culture of constant and continuous improvement. The other thing that's really important in this whole thing is you can't do it, you can't make good products without good suppliers. And we have all of our supply chain management is located in the same facility that the PulseVet unit is being built in, in Georgia. We have a very tenured group of folks that is managing our supply chain, along with our material planning activities. And the reason that's important is we're trying to keep our inventory [indiscernible] sustains our margins. So we have -- our supply chain around PulseVet is a very experienced supply chain. Most of the suppliers that are making parts for us are the same suppliers that made it 14 years ago as they started their manufacturing group. So these are people that understand what our requirements are. They put quality into the parts. And that gives us a lot of cost advantages. We have a lot of leverage with these suppliers, and that's really important to maintain our margins. And in our manufacturing process, we use state-of-the-art equipment. We've been investing in not just newer facilities, but additional equipment to increase our capacities around the product as we grow, but also allowing us to do testing where it's needed in our product and just getting the latest and greatest equipment to support those activities. That allows us to have the best process, manufacturing process and quality processes, that are very necessary, allows us to have a very consistent manufacturing process, which allows us to produce high-quality and high-reliable equipment that get shipped to our customers. And a very important thing around our operations is our order fulfillment processes, so our distribution and shipping activities. And we use state-of-the-art fulfillment softwares and processes around that. And it's our culture around the PulseVet product line is, if we get an order today, we ship it today. Our shipment activity goes all the way to 7:00 at night, Eastern Standard Time, and it allows us to, if we get an order at 6:00 in the evening, we're shipping it the same day. So we're very proud of this group. We really believe in the people and believe in what we do. And the last thing that I want to talk about is our customer support team. Our customer support team is in Roswell, Georgia too. Same facility. And that allows us to have a real cohesive, from the time we take the order, from the time we ship the order, it might be just an hour or 2 sometimes. So it's very important that we have a constant communication going across all those groups that I've mentioned. And we have that in Georgia. I spoke about our entire operation being in Roswell, Georgia giving us a lot of consistency through the process and efficiencies through the process. And it allows us to ship things very quickly. It allows us to adjust to schedule adjustments and things very quickly. We talked about supply chain being very tenured around PulseVet. All that allows us to make our product in one location in the U.S. And that's very important because we gain efficiencies. And those efficiencies turn into margin and those efficiencies turn into reliability.

The PulseVet system has also shown to achieve remarkable clinical outcomes, from pain reduction to improved mobility, making it a reliable tool. Its performance consistency is backed by years of research and real-world feedback. This solidifies its reputation as being the leading choice in the industry.

We already have more than 42 peer-reviewed papers and white papers proving PulseVet's safety and efficacy. And the studies on this slide are adding even more depth to that evidence base. Historically, shock wave therapy has not been applied to the lungs. However, recent studies measuring performed by independent veterinarians has shown that the lungs can be treated safely. Based on this early research, Zomedica is sponsoring additional studies to evaluate pulmonary indications more fully. The initial study examined the effect of shock wave therapy on Exercise Induced Pulmonary Hemorrhage, EIPH or bleeders, in a group of barrel racing horses. A second study focusing on equine asthma is targeting the 15% of horses over 7 that struggle with airway issues, testing shock wave therapy as a drug freeway to improve breathing and performance in horses. Early results have been extremely favorable in asthmatic horses. These studies began in the fourth quarter of 2022 and will continue in 2025. The launch of Zomedica's Equine Asthma Clinical Registry in Q2 will allow for continued data collection from the field while educating veterinarians on the newly expanded lung indications in horses and encouraging increased trode utilization. Colorado State's blinded canine osteoarthritis trial is wrapping up now, set to deliver year-long data on mobility and comfort. Taken together, these active studies extend an already robust evidence library, confirming that PulseVet delivers safe, drug-free and clinically meaningful improvements across both equine and small animal patients.

So using PulseVet, I had an integrative sport horse practice. So by integrative, I mean chiropractic, acupuncture, body work and lameness. So I integrated all of those complementary therapies together. And the PulseVet offered its own kind of disease-modifying effects as opposed to disease-masking effects. So those horses that we were able to use PulseVet, I was able to get more and different results through their body in addition to the other therapies that I was using, primarily because of the depth of penetration of the shock wave as well as the analgesic effects of the shock wave and the disease-modifying. And by disease-modifying, I mean, treating, you're actually allowing the body to heal itself and encouraging it to heal itself rather than trying to mask it with some sort of pharmaceutical. Those horses competing at the international level need every edge that they can get, just like a human athlete would have. And so PulseVet allows that to feel their best analgesically, meaning pain-relieving. Then also they need to be as healthy as possible. So the disease-modifying, allowing them to feel themselves are able to perform best if they feel their best because they're not hurting.

Yes. So I use the PulseVet product and it predecessor, the Versatron machine, for about 12 years in clinical practice, before I came onboard at Zomedica. And I think that had a desire to join this company because I was a huge believer in that product. It was a -- provided a huge benefit to me in managing some of the common indications that I saw in horses on a daily basis, be that soft tissue lesions, back pain. Those were, again, those were daily occurrences in my practice. And so the PulseVet device was being used constantly, and I could not have delivered the same level of care for my patients without it.

So when I joined PulseVet back in April 2017, much of our base was equine globally, equine vet customers. And we did have a small proportion of small animal vets who were using shock wave. But the most exciting thing that I've seen over the years is how many -- how the equine base has grown, but almost as much as exciting is, how much success the small animal vets are having with the PulseVet, which is the gold standard, and the big exciting testimonies I hear of some cases, maybe a certain lameness, or a dog that they just didn't figure out what they were going to do to get the dog sound. That is the most exciting thing for me.

Now let's dive into the economics of PulseVet. The initial investment for a clinic is about $32,000. Each Shock Wave session is typically billed at around $300, and most patients need 1 to 3 sessions. Even at a modest pace of 5 patients a month, that's roughly $3,000 in new revenue every month or $36,000 a year. So the system pays for itself in about 12 months. Because technicians can handle most treatments, the veterinarian's schedule stays free for higher-value procedures, while PulseVet delivers steady repeatable income. The beauty of PulseVet is that you can get it working for you before you ever open your wallet. Through our third-party financing partner, there's 0 money down, no payments for the first 6 months, and then just $100 a month for the next 6. After that, the remaining balance is spread over 5 years. So the cash burden is practically invisible. With that, the clinic needs only 2 treatments a week to cover every payment and still finish cash flow positive in year 1. Let's look at the numbers. Even with conservative usage, just 2 treatments per week, the clinic generates $36,000 in revenue in year 1. After covering a modest $2,600 in start-up costs, they're already cash flow positive by over $33,400 from years 2 through 5 after financing and trode costs, the practice pockets around $24,000 in pure profit every year. And remember, the system's useful life is well over a decade. So once it's paid off, nearly all that revenue drop straight to the bottom line. In short, no money down, minimal monthly obligation and a clear path to profit starting in the very first year. Now let's zoom out and look at how this translates to Zomedica's business model. The PulseVet system itself sells for $32,000 to $39,000, depending on how many trodes the clinic starts with. Each of those trodes, the handpieces used in treatment, sells for $2,000. What's exciting is that every system we place seeds 2 to 4 future trode purchases annually based on the type of practice. For small animal clinics, we see about 2 trodes per year. For equine, that number jumps to 3 or 4. This is where the magic happens. Over 70% of PulseVet's revenue today comes from trode sales alone. It's recurring, high margin and growing with every new device sold. This creates [Audio Gap] hardware opens the door and trodes keep the value flowing year after year. And year after year, PulseVet adoption by both equine and small animal vets continues to grow. We estimate adoption by equine vets is over 50%, with a significantly higher penetration by equine vets focused on sports and performance horses. Our new lung indications, including equine asthma, create opportunity for increased adoption by the remaining equine vets who see this condition often as it affects 15% of horses over 7 years old, and horses generally live around 30 years. Meanwhile, the small animal market is almost completely untapped, so the revenue runway ahead is far greater than what's being captured today. With current penetration of the small animal veterinary market being less than 5%, there is significant opportunity for Zomedica to help more vets help more pets and substantially grow Zomedica's revenues. Attaining the same level of penetration in the small animal market as the equine market would reflect adoption by about 15,000 clinics in the United States. That would generate a total of approximately $450 million in capital sales over the period and produce annual trode reorders of approximately 30,000 units, producing approximately $60 million in annual consumable revenue, all at margins of greater than 70%. This is why Zomedica is dedicated to investing in the infrastructure and sales and marketing teams as it produces meaningful opportunities for the company and its shareholders.

So marketing and sales work closely together to ensure alignment between product messaging, lead generation and customer conversations. Marketing focuses on creating awareness through digital campaigns, educational content and customer testimonials that highlight the PulseVet systems's effectiveness. Once the marketing team generates qualified leads, the sales team takes over with direct engagement, providing demos, answering specific customer questions and guiding prospects through the purchasing process. Sales shares valuable feedback from customers, which helps to redefine both marketing strategies and sales tactics. The collaboration ensures a unified approach in communicating the product value, ensuring the sales team is equipped with the right tools and resources to convert those needs into loyal customers. Regular communication between the 2 teams allows for adjustments in strategy based on market feedback and performance metrics. Once a clinic purchases the PulseVet Shock Wave system, we continue to support that clinic to help them build their customer base and promote their new service. Digital resources help our veterinary practice partners to easily promote their therapeutic services to their existing client base and attract new customers. We are always working to continue to expand our device platforms for clinical content and reduce barriers to therapeutic device use. We also list all of our veterinary partners who would like to be listed on our Vet Locator on our website. We also promote this Vet Locator in a lot of our sponsorships that we do. So as horse owners and pet parents start to learn about PulseVet Shock Wave, they're able to go to our Vet Locator and find a veterinarian near them that offers this service.

So we are doing some things that are very exciting, I think are going to be super effective. I've done a couple of test runs of this. And what it is, is offering to do client education directly to the veterinarian's customer base. So we are coming into the clinic that has purchased a PulseVet, offering them an opportunity to invite all of their clients to an educational evening webinar, where we are talking in very layman's terms to those pet owners about our horse, pet horse about the benefits and the difference of PulseVet Shock Wave. When the dog owner understands that they have a choice of a nonpharmaceutical option that is backed by the science, that is covered by insurance, that only requires 3 visits, they're very excited to do that. We believe this education direct to the pet owner is going to absolutely increase the demand for the treatment.

One way that we are helping clinics overcome the hurdles of the capital expense is by allowing them to be part of our Jumpstart program, where they purchase a trode or handpiece at a premium with enough pulses to deliver roughly 30 small animal treatments. This allows the clinic to start bringing in revenue immediately while advertising the service to their clients and building a customer base, before investing in the capital expense. It also allows corporately-owned clinics, who are sometimes limited by spending caps, the opportunity to bring in the technology into the clinic and offer premium care. We are very honored and proud to have been chosen to be the official shock wave of the following organizations: the United States Equestrian Team Veterinarians, the American Quarter Horse Association, the United States Eventing Association, the National Reined Cow Horse Association and the National Cutting Horse Association.

Thanks for watching the presentation and learning more about PulseVet's innovative technology and how it's transforming veterinary care. We're now moving into our live Q&A session with the team. If you have a question, feel free to drop it in the chat box now. We're here to help. And if something comes to mind later or you want to speak with someone directly, you can always reach us at the phone number or email address you see on your screen. Let's jump in.

Rich, you want to transition? So if any of the attendees have a question, please enter it in the Q&A -- go to the Q&A box down below. I think we have one. Okay. I don't know if that was -- it's probably for Nicole. Someone admires your glasses. I doubt their mind that they're admiring. So we hope that you have enjoyed this presentation, this deep dive into a big part of Zomedica's business, which is the PulseVet system and its associated accessories. We currently sell this product in around 30 countries around the world. We have a very good penetration, as you heard, in the equine market, and we expect that, that will continue to increase, not just for those that are focused on sports and performance, but also those that are really taking care of more of the neighborhood horses, because a lot of them get asthma and we recently launched our Equine Asthma Clinical Registry. And as far as small animals go, we've been focusing our sales organization on that. It's much more of a sort of a startup mode. It took about 10 years to get to 50% penetration in equine starting from scratch, with the foundation of having a good solid base of equine business and equine veterinarians to support the efficacy of the product. We don't think it will take 10 years, but we don't know how long it will take, but we know that it's a worthy goal and one that we're going after. So I see that we have a question. And so the question is, do we have plans to move the Canadian office? So a little bit about our corporate structure. Zomedica originally was founded as a Canadian corporation. And so we're incorporated under the laws of Canada. And originally, the company's stock was listed on the Toronto Stock Exchange. At some point, well before I arrived in late '21, at some point, the company began -- created a subsidiary in the United States, called Zomedica, Incorporated, and transitioned from the Toronto Exchange to the New York Stock Exchange. And then, of course, as you're all aware, we've subsequently moved to the OTCQB market. When we became listed in the United States, then we've began to follow, of course, all of the regulations that address U.S. corporations, as well as continuing to follow all the regulations for Canadian corporations. But we're still domiciled in Canada. That's sort of a technical and legal finance-type statement. We do not have an office in Canada though. We have no physical presence in Canada. We have a bunch of customers. But we don't have an office there to move from. We have an office in Ann Arbor, Michigan, which is where the company has been founded and operated for many years. And then, of course, we have the manufacturing plant in Roswell, Georgia that you heard about from Tony, and a manufacturing plant in Plymouth, Minnesota, just outside Minneapolis, that produces the TRUFORMA product line. So long story there, a long answer to a question. Let's see. Are there other questions? Here's a follow-up. When do you propose to hit profit? So the answer to that is just as rapidly as possible. In order to do that, of course -- in order to launch the products, I mean, even while PulseVet came with a base of revenue, we had about $12 million in trailing revenue -- trailing 12-month revenue, and as you heard, we've increased that significantly. In order to enter the market for small animal veterinarians, it's really regarded as a kind of a start-up opportunity. And each of our other products are also start-up products. And that they're brand new, it's new technology. It's very innovative technology. It's assays that haven't been available at the point of care. It's PulseVet therapy for small animals. It's magnetic field therapy for small animals versus -- and so it takes a bit of time to be able to let customers know -- potential customers know that the product is available, as well as to help them understand how it can help them improve the quality of care for the pet, the satisfaction of the pet parent as well as the workflow cash flow and profitability of their practices. And so for us to be able to enter the market and create a brand identity for Zomedica, which we've been doing over the last 3 years, it's required us to build a sales organization and begin to market before we had sales. And so now what we're doing is, as rapidly as possible, trying to ramp sales, as well as making sure that now that the development of the products and build-out of the infrastructure is complete, that we keep our spending low. And so we'll definitely stay tuned for that as it's a major objective for us. A follow-up. Are there plans to or desire to redomicile to the U.S.? It would be a benefit to the company to redomicile to the U.S. from Canada. There are costs associated with having to run everything through the Canadian regulatory filter as well as the U.S. regulatory filter. We have no immediate plans to effect a redomicile. It's sort of tied into another initiative that has been put on the ballot and rejected by shareholders. And so at this point, we're not looking to do just the redomicile. We'll wait until the future when there are other efforts that we undertake to address some of these concerns. How is it going globally, is a question. And I think it's actually going pretty well. Sales in the first quarter were up 32% over a year-ago first quarter outside the U.S. We continue to add distribution partners in different parts of the world. We, last year, obtained CE Mark coverage for the rest of our products besides PulseVet and Assisi, which are already sold internationally. And we are about the business of getting those into distributors in different parts of the world. So it's -- with the tariff situation and everything, it's really tough to figure out exactly what's going to happen from an ability of customers to purchase products without paying significant tariff on top of that. Having said that, I would say 2 things about tariffs. One is all of our products are made in the U.S. We manufacture all of our own products. Tony does it. I should say Tony's team does it. Except for VETIGEL, which is also manufactured by a partner and we pay contract prices for that. Very few of our components come from outside the U.S. So essentially no significant impact on cost of goods for us. On the other side, most of our revenue, the vast majority of international today is PulseVet trodes. And when an equine vet is used to using the PulseVet system, they need their trodes. Once they are used up, all the pulses in them are used up, they need new ones. And so it's not likely -- we don't think it's likely to affect our trode business as we move forward. Is the company actively pursuing any partnerships currently? We just announced at the end of December, very early January, a partnership with a company called Cresilon, which is the manufacturer of VETIGEL hemostatic gel. And so we trained the sales force in the first quarter, and we're selling that product now into the marketplace. There are other opportunities for us, and we'll make sure and keep you up to date on those as we move forward. So I don't -- let's see. That one's answered, that one -- what percent of revenue do you think PulseVet will account for in 2025? In a perfect world, it would account for the same percentage of revenue, but the total volume of revenue would be going through the roof. And so all the other products will be growing at the same rate. Having said that, PulseVet today represents a significant portion of our revenue, and we expect that to continue. I think you saw some of the graphics. The foundation of our revenue is the PulseVet trodes. We top it off with the PulseVet Capital. That's why it makes -- that's why the quarters sometimes are a little choppy. In the fourth quarter, we sell a lot of capital equipment. Equine vets tend to do their shopping, if you will, for this kind of product at their major medical meeting that's held in the fourth quarter of each year. Plus there's tax incentives and reasons why people tend to buy more capital -- customers tend to buy more capital at the end of the year. So then the first quarter falls off. This is something we've seen for as long as we've been in business pretty much. But having said that, that revenue base of trode usage and refurbishment, the consumable revenue base continues to grow. It's the same thing with our other products. TRUFORMA, once you get the system in, the cartridges are purchased, and you're going to see growth there regardless just from the cartridge sales, foundation of revenue, and then, on top of that, each time a new facility comes onboard. Okay. Let's see. Thanks for doing this. You're very welcome. In fact, I would like to thank Nicole Westfall for doing this. Nicole, you want to tell people -- this really sprang out of something called Zomedica University. Nicole, do you want to just mention what that is?

Oh, I'd love to. So Zomedica University is a program that we run every Wednesday at various times, led by some of our 190 key opinion leaders who are veterinarians in the industry who present continuing education to veterinarians, vet techs, practice managers, those who need to have ongoing education, not only to make themselves better practitioners and deliver the best care, but also to keep up with their license. And it covers a variety of topics. We do a different topic or presentation every week. And we make sure that one of our product lines, if not multiple, is mentioned in it. So that all the veterinarians in attendance are regularly learning about our products and the indications they're used for from industry experts. Because we can tell them how great we are all day, but having an industry leader tell them that this is what they do and this is why they do it typically leads to a much faster adoption rate.

Thanks, Nicole. I see one here and I'm tempted not to answer it, but I'm going to. It says if a company wanted to buy out Zomedica, would you consider it? And the answer to that is any time -- with a public company like ours, any time somebody came to us with a realistic, a serious intent to attempt to acquire the company, then myself as senior management as well as being on the Board of Directors and the Board itself has what's called a fiduciary responsibility to make sure and consider any offer like that. But at the end of the day, anything like that would be put up for a shareholder vote. Even if the Board of Directors said, yes, I want to sell for this price or whatever, that would still need to go to shareholders for their approval. And because we're a Canadian corporation, it would require 2/3 of shareholders to approve it. So the straightforward answer to your question is, of course, because everything should be considered, brought to the Board, the Board needs to fulfill its responsibility and seriously evaluate it. And then at that point, make a recommendation to shareholders who, at the end of the day, would be the ones making that decision. Okay. Well, I think that takes us to the last of the questions. And I recognize that we're all -- the Fourth Friday of this month at 4 happened to be the very end of the work week just before the Memorial Day holiday. So as there are no more questions, we're close to the end of the scheduled time, I just want to thank you all for your attendance, your participation, your support of Zomedica, and wish everyone a very happy, healthy and relaxing Memorial Day weekend.