Zomedica Corp. ($ZOMDF)

Welcome to Zomedica's Investor Webinar, where we'll explore our manufacturing strategy and capabilities. 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 on screen or to the 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, April 24, 2026, 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. 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. Now let's hear from Larry Heaton, Zomedica's Chief Executive Officer.

Hi. I'm Larry Heaton, Chief Executive Officer of Zomedica. Thank you for joining us for another Fourth Friday at Four webinar. Whether you're an investor, analyst, veterinary professional, partner, or just someone who loves animals as we do. We appreciate you taking the time to be with us today. Today, we're pulling back the curtain on manufacturing, an area that doesn't always get the spotlight, but it's absolutely critical to everything we deliver. It's where quality, reliability and performance are built, not just promised. At Zomedica, manufacturing isn't just about producing products at substantial margins. It's about ensuring that every device, every system and every component meets the highest standards of precision, consistency and clinical reliability. It's where our strategy, engineering and quality systems come together to create a real impact for veterinarians and ultimately, the animals they care for. As our portfolio has grown, so has the complexity of what we produce. We now support a range of diagnostics and therapeutics, each with unique technical requirements. That means our manufacturing approach must be both flexible and disciplined, able to handle diverse product lines while maintaining strict control over quality and performance. Over the past several years, we've made deliberate investments in building a scalable in-house manufacturing infrastructure. This allows us to stay closely aligned across R&D, quality and operations, respond quickly to customer feedback and continuously improve how we deliver our products. And because we operate across multiple facilities, we're able to strike the right balance between specialization and efficiency. Some sites focus on high mix engineering-driven assembly and rapid iteration, while others are optimized for high throughput production. Together, they create a system that create -- that supports both innovation and scale that delivers substantial margins for the company. Today, we'll take you inside that system, how it works, how it's evolved and how it positions us for continued growth. When we're done highlighting our manufacturing operations, we'll turn to your questions. With that, let's get started.

Good afternoon. I'm Tony Blair, Chief Operating Officer at Zomedica. I have over 35 years of operations leadership experience in the human medical device and pharmaceutical industries. And over the last 4.5 years, I've had the privilege of working at Zomedica with a talented, dedicated and skilled group that challenges each other and me to be better every day. Our staff care about our customers, the services we provide and each other, and I'm proud to be a part of this group. Our manufacturing operations are a core strategic asset that provides substantial margins. And this webinar will be showing you what that means in practice from our Roswell facility, which supports a diverse mix of product lines, including the PulseVet system, our TRUVIEW AI Microscope and our VETGuardian PLUSTM Monitor to our Plymouth site where automated TRUFORMA cartridge production and fulfillment operations run at scale. We have built a manufacturing foundation that is both disciplined and flexible. We believe operational excellence is a direct driver of quality outcomes, customer confidence and long-term shareholder value. Welcome to a look at our manufacturing operations. Our manufacturing approach is designed to accelerate innovation while safeguarding quality. By keeping manufacturing in-house, we shorten feedback loops, reduce technology transfer risk and maintain strong alignment across R&D, quality and operations. Operating across both the Roswell, Georgia and Plymouth, Minnesota facilities allow us to balance specialization while scalable throughput. Our Roswell, Georgia facility supports a diverse set of product lines, including the PulseVet device and trode assembly, the TRUVIEW assembly, the VETGuardian assembly, the TRUFORMA device assembly and the Assisi product assembly. The site also performs Assisi, ultrasound and X-ray fulfillment activities. As a high-mix environment with cross-qualified technicians, Roswell is ideal for controlled scale-ups, engineering pilots and rapid iteration. Our Plymouth, Minnesota facility houses the TRUFORMA automated cartridge production line, quality control and shipping as well as Vetagel fulfillment operations. Plymouth is our center for highly repeatable, high throughput manufacturing focused on ensuring product consistency, managing costs and supporting volume growth. Our ISO 13485 compliant quality system ensures that every product we build is controlled, traceable and inspection ready. From design transfer and process validation through receiving inspection, in-process checks and final release testing, we maintain complete documentation demonstrating conformity. Continuous improvement is woven into our CAPA system and change control processes to ensure we sustain high-quality manufacturing performance. Cross-training enables an agile workforce capable of meeting shifting production demands. Technicians are qualified across multiple assemblies, including PulseVet, TRUVIEW and VETGuardian, allowing us to balance labor efficiencies, respond quickly to constraints and maintain operations continuity. We also manage a shared supply chain across product lines, consolidating common components and leveraging vendor relationships wherever possible. This approach reduces complexity, shortens lead times and provides cost advantages through volume purchasing. Together, these practices create a manufacturing system that is both resilient and scalable.

Now let's visit our facilities and get a behind-the-scenes look at Zomedica's manufacturing and quality operations.

Welcome to the global manufacturing and distribution site in Roswell, Georgia. PulseVet is one of our most established product lines and its assembly process reflects years of refinement and continuous improvement. Customer feedback is brought in through our on-site customer support team led by Nicola Garnett, our Director of Customer Relations. Nic?

At Zomedica, one of our core priorities is the exceptional support we provide to customers every day. That support begins the moment an order is placed. For PulseVet, many of those orders center around our trodes, the consumable component that keeps the system delivering consistent therapeutic performance. Our customer support team directly works with our clinics, providing quick, responsive and reliable guidance whenever they need it. Their efforts connect our manufacturing floor to our end users ensuring every device performed exactly as the veterinarians expect. Great customer support is built on great products, which brings us to the heart of this facility, our device assembly team. These are the people who build the unit with precision and care. Our technicians focus on perfect mechanical alignment, consistent fastening and repeatable processes that give our devices the long-term durability and reliability we're known for. Technicians like [ Will Debronski ], exemplify their craftsmanship and skills and meticulous attention to detail ensures consistent builds. When you pair an experienced assembly team, the responsive customer support group, you create a full life cycle of quality and build to deployment long-term performance. This team is what makes that possible.

Alongside the device line, our trode assembly area is a highly specialized process for both new and refurbished trodes. We operate dedicated assembly and test equipment across 5 stations, giving us the flexibility to scale production simply by adding shifts when demand increases. After assembly, each trode undergoes performance testing to verify it delivers the precise focus shockwave output that defines the PulseVet name. What you see here is a disciplined repeatable workflow carried out by a team with deep experience in high precision assembly. TRUVIEW integrates optics, electronics and precision mechanics, which means every stage of the build requires careful control and attention to detail. The process begins with optics preparation carried out under clean controlled conditions. Technicians ensure that lenses, illumination modules and optical paths are clean, properly aligned and handled using antistatic and dust-free procedures to protect image quality from very start. Here, Michael Newton and Rob Varn are assembling TRUVIEW devices. TRUVIEW is our most complex system, and it demands the skill of our most experienced experts. Michael is the senior member of our manufacturing team and was recently promoted to manufacturing manager, reflecting his deep technical expertise and leadership on this line. Once the optics are prepared, the team moves into camera alignment and the illumination calibration. Using specialized fixtures, they verify uniformity across the field of view, confirm accurate focus and ensure consistent illumination intensity. These calibration steps are critical. Small deviations in light distribution or camera position can directly influence final image performance. The build then progresses to the motion and slide handling subsensors. These components undergo rigorous testing to validate smooth travel, precise homing, correct sensor engagement and repeatable positioning. Technicians confirm that each subsystem meets positional accuracy requirements so the platform can reliably capture high-quality images every time a slide is loaded. Because TRUVIEW is fundamentally an imaging system, even minor mechanical and optical variations can impact clarity, contrast and diagnostic value. For that reason, this assembly line emphasizes precision, robust documentation and comprehensive release testing. The VETGuardian assembly line is built around electronics integration, focused on producing the hardware that powers our touchless, continuous monitoring platform. Quality starts with our electronics supply chain partner. And here in Roswell, the process continues with our sensor module assembly. I'd like to introduce [ Malcolm Walker ] right now. At this stage, technicians bring together printed circuit boards, wiring harnesses and the enclosure components at every step follows standardized work instructions and is completed using calibrated tools to ensure that each connector, fastener and interface is built to specification. Throughout the build, technicians conduct in-process checks to confirm mechanical fit, seal integrity, connector engagement and overall assembly quality. These checkpoints help identify variations early, ensuring that every finished device delivers the accuracy and reliability clinicians rely on. I'd like now to introduce [ Isaa Dolman ]. He is performing the hardware and assembly functional testing, where we validate core system performance. This includes confirming accurate respiratory and heart rate monitoring, verifying both camera functionality and ensuring all sensing pathways respond properly under expected operating conditions. Any unit that does not fully meet performance threshold is reviewed for technical correction. After completing all required release test, including software verification and final QC inspection. Units are cleared for boxing and shipping. Packaging is checked for accuracy to ensure customers receive the correct accessories documentation and configuration. The VETGuardian line is essentially designed for flexibility and rapid responsiveness, cross-trained and adaptable process paths allow us to scale efficiently and respond quickly to shifts in market demand. This agility ensures we can support growing adoption while maintaining the high standards that define the VETGuardian platform. We highlighted several of the products we manufactured here in Roswell, Georgia. But this facility supports much more. We also build the TRUFORMA system, we assemble Assisi devices and we utilize the same assembly lines to support new contract manufacturing services. Next, I'm going to take you over to our Plymouth, Minnesota facility. Hi. Welcome to our Zomedica manufacturing development and distribution facility in Plymouth, Minnesota. Each day starts with our production meeting. This meeting takes about 10 minutes. In this meeting, we review the manufacturing needs and the plans, the day's activities along with all the short-term production schedules. I'd like to introduce everybody in this meeting. All our disciplines are covered in this meeting. It's led by manufacturing. We have materials and supply chain management involved in this meeting. We have administration in this meeting, facilities engineering, product engineering. We have research and development with new product development and new product introductions and quality. And last, shipping and logistics. So we talk about the daily schedule. We move into a more short-term view of the schedule, 3 to 4 weeks of information. We talk through all the material requirements, the shipping requirements. And once we get that done, we -- our teams get up out of this meeting and they move into production to carry out the daily operations. We're now in our manufacturing clean room suite, our TRUFORMA cartridge manufacturing is performed on a highly automated production line designed to deliver consistent and reliable product at scale. This production line has the capacity at about 4 million cartridges annually. We produce the cartridge and the package pouch for 18 different assays. Automation plays a critical role in reducing process variation by precisely controlling key manufacturing steps and minimizing manual and improving our yields and margins on our path to profitability. This standardized automated approach ensures each cartridge is produced to the same exacting specifications, supporting performance across every lot. By leveraging automation alongside our talented and experienced manufacturing group were able to maintain high quality while scaling production efficiently.

Hi, I'm [ Tara Rens ], Director of Quality at the [ Plymouth ], Minnesota location. Once TRUFORMA cartridges are manufactured, they move into a robust quality control process designed to ensure consistent reliable performance. A key component of this process is calibration, which helps control lot-to-lot manufacturing variability. By performing calibration at this stage, we ensure the lot meets defined performance standards or at least our facilities. This means customers do not need to perform additional calibration themselves, helping to simplify their workflow and reduce time spent on setup. Throughout quality control, each lot is thoroughly evaluated for precision accuracy and error rates. This has confirmed that cartridges perform as intended and deliver dependable results in real-world clinical environment. Through this comprehensive QC process, we help ensure customers receive packages they can trust right out of the box.

Once the product is completed and release approval is made by quality, products move into shipping fulfillment. [ Nicolas ], he is processing an order. And orders of process, picked, packed and verified by our trained team to ensure accuracy and on-time delivery. This team also manages Vetagel fulfillment, applying the same disciplined processes and attention to detail, keeping fulfillment in-house allows us to maintain inventory visibility, respond quickly to demand and ensure reliable delivery to customers. Together, these shipping operations connect our manufacturing capabilities to the field, supporting a consistent and dependable customer experience. Thank you for joining us at our Plymouth, Minnesota facility. Our experienced teams and automated manufacturing work together to deliver products customers can rely on. Our talented experienced workforce, along with the manufacturing strategy focuses on consistent quality, dependable supply and the ability to respond quickly to customer needs.

Now let's hear a message from our finance department.

Good afternoon. I'm Mike Zuehlke, Senior Vice President of Finance for Zomedica. And I wanted to take this opportunity to discuss the special item in the proxy form you received for our upcoming annual meeting. Before discussing what the resolution is seeking, I'd like to review where we are today. As a publicly traded company, our annual meeting is one of our most important requirements. Our current bylaws require shares representing 25% of all outstanding shares to be present or voted via proxy in order for the annual meeting to proceed. In prior years, index funds, for which proxies were essentially always submitted, held approximately 9% of our outstanding shares. When added to the 8% of shares held by Zomedica insiders, this typically gave us a good start to get to the 25% needed for a quorum. Retail investors hold the overwhelming majority of our shares, but may not always find it convenient to vote. Over 250,000 of our shareholders hold an average of 30 shares each, so they may not feel it is important to vote. In any event, while we make substantial efforts to reach out to all of our shareholders, requiring us to spend around $500,000 to do so, there is still a risk we may not achieve a quorum on our first attempt or even our second. In the event that a quorum is not reached, we would be required to adjourn the meeting and reschedule for a later date. Depending on the shortfall of quorum on the first attempt, we could incur additional costs such as the engagement of a proxy solicitation firm in an attempt to reach a quorum for the rescheduled meeting. So what happens if we continually fall short of attaining a quorum and are forced to adjourn and reschedule potentially in perpetuity? Well, in addition to incurring incremental costs in efforts to reach quorum, we would not be able to hold the following votes that recur every year. One, the ratification of our external auditors. Two, a vote on our Board of Director members. And three, the advisory vote on our executive pay. So what are we asking? The resolution put forth in this year's proxy is asking to amend our bylaws and limit the number of times the annual meeting can be adjourned due to a lack of quorum to one. In other words, if a quorum is not reached for our announced annual meeting date, we would adjourn the meeting and delay to a later date as we have always been required to do. However, if a quorum were not reached at the rescheduled meeting date, this resolution, if approved, would permit the meeting to continue. It is important to note that any votes cast via proxy for the originally scheduled meeting date would roll forward to the rescheduled meeting date and count towards the 25% requirement. Additionally, the agenda and items to be voted on at the annual meeting could not be amended or changed without the issuance of a new proxy and thus the incurrence of incremental costs we are looking to avoid. With that, I want to again thank you for your time today and your continued support of Zomedica.

[Operator Instructions]

So good afternoon. And first of all, thank you, Tony, for hosting the Fourth Friday presentation and your entire team for participating. I know some of them weren't planning on being behind the camera, so that's terrific. And also, Mike, for sharing the information about the special matter on the proxy. The preliminary proxy has been sent. That should be being received essentially now, and then that will be followed 2 weeks after it was sent with the final proxy in anticipation of the June 10 annual meeting. So good for that. Let's see. I see, Bill, you have your hand up in the little side thing. But unfortunately, we're only set to be able to take questions via the typed section. So hopefully, you're seeing more of the screen than the Zomedica in the upper right-hand corner. But if you have a question, please type it in and we'll certainly get to it. So with respect to the Q&A section, we're a little light today. So maybe the weather is outside, nice everywhere. Let's start with a question, Tony, for you. Regarding TRUFORMA manufacturing, what is your current monthly production capacity? And that's -- there's also some questions about how much we're distributing each month and how many -- well, I'll take the rest of that. So what's our capacity there? And what can it scale to?

Yes. So thanks for the question. And our current capacity is based on -- right now, we have 1 shift operating. So our current capacity is around 25,000 cartridges a month. But it would not -- our plan is to scale by adding shifts. And by doing that, in a very quick way, we can get to millions of cartridges a year, up to 4 million cartridges a year by having 4 -- by basically putting together a 24/7 operation where we would have 4 different shifts.

Okay. And we have the equipment, the automated equipment can run around the clock.

Correct.

Yes. Okay. Excellent. So the same person has also asked for us to disclose what our unit sales are on a monthly basis. Someone else is asking what percentage of our annual capacity is being utilized. And I'll just mention the same thing that I might mention each time, which is we don't disclose to that level, to the product line level. But we have -- we're making a lot, we're selling a lot, and we have plenty of capacity to make and sell more. There was also a little bit of a question -- the end of that question was, how many months do you estimate it will take to fully satisfy the initial demand for the Boehringer Ingelheim program. We were simply handling that demand as part of our normal growth. We've been growing very well, very strongly in the equine TRUFORMA subsegment or whatever you might call it, all along, you've seen some pretty good growth in our recent earnings reports. BI will stimulate even more growth in that program, which has kicked off at the beginning of April. So we don't expect any delay or we don't have to set aside capacity for that. That's just being handled out of our normal operations. Let's see here. When will the new website go live? Oh, sh***, Evan is not on this call. Let me just say I've seen some of the early -- not just early, but I've seen some pretty well-developed versions of that. So I would expect certainly by the end of -- by midyear, that will be happening. But probably before then. I'm sorry, I don't have a better answer on that. Nathan, I will get into it though. When is the Q1 earnings report? We'll be releasing earnings. The plan is always subject to a little bit of change. The plan is for Mike to answer that question. Mike?

Right now, the tentative plan, Larry, is to release earnings after market close on Wednesday, May 6.

Okay. Can existing facilities support, Rahm, and additional development services partners without major new CapEx? Tony?

Yes. And we're already going down that path. So yes, we have the available capacity to handle all the contract services that we're doing.

Yes. And you -- I noticed that you used some of that capacity to good effect for -- on Rahm's behalf not too long ago.

Yes.

Earlier, you mentioned about 4 million cartridges annual capacity, but now you said current capacity is around 25,000 per month on 1 shift. Can you clarify the difference between current operating throughput and full installed capacity? I think you kind of did, but let me leave that to you.

Yes. So if you do the math, 1 shift, there's -- to run 24/7 to get to a 4 million capacity, we would have 4 shifts running. The first shift, 1 shift, if we run 25,000 a month, we're about 300,000. That's because we gain a little bit of efficiency because of first shift. We have a little bit of flexibility that we wouldn't have if we had a 4-shift operation running. So yes, the 25,000 a month is 300,000 a year, which right now...

Let me step in, Tony. I think you might have inadvertently provided a little -- a different answer to the question. Capacity is one thing. I think you might be talking about what we're currently producing. And that's probably answering more than we want to. So -- without adding another shift, I believe you could do more than 25,000 on a monthly basis.

Oh, I'm sorry, yes. I mean we have the ability for 1 shift to run 1 million a year. So we could run about 80,000 cartridges a month. We just don't have that level of demand right now.

Yes. Okay. Mike will coach you a little bit later on. All right. Fine. So that, I think, answered the question I would expect. All right. Let's see. So how do we see organic growth going so far for 2026? So in just a couple of days, I think it's around 10 days or so from now, on May 6, we're going to announce earnings. It's actually 12 days, I guess, from now. We're going to announce earnings for the first quarter, and we'll disclose at that point, growth, both in our organic core products as well as our development services activities. I will just say at this point that once again, we're looking forward to releasing earnings. But also once again, I'll repeat the things that we've said historically for the last several years, which is that a couple of things -- a couple of -- our business is somewhat seasonal. Some trends we've noted over the last 4 years since I've been here, which is that the first quarter revenue -- the fourth quarter revenue is always the strongest due to high capital sales, first quarter revenue. Capital sales are the lightest of the year. And so revenue is reduced in the first quarter relative to the previous quarter that it just ended the fourth quarter. Also, as you've seen and we've spoken about pretty much every year, margins are always lowest in the first quarter. And also cash burn is usually highest, always, I should say, highest in the first quarter, and that's because we have certain expenses that have been accrued during the course of the year that are paid out. Actual cash payments are made in the first quarter as well as public company expenses and things like that and activities that are paid for during the first quarter. So the expectation that we've set each year and -- is that first quarter revenue was down from the fourth quarter. Cash burn is up from the fourth quarter. Margins are down from the fourth quarter. And then we expect margins and cash burn -- well, we expect margins to increase over the course of the year, which you've seen each year for the last however many, and we expect cash burn to be reduced in subsequent quarters. Having said that, we're looking forward to releasing earnings in 12 days. We don't expect anybody to be surprised. In other words, we don't expect anything to counter -- I mean we obviously know already. We don't expect anyone to be surprised or to see anything counter to the guidance that we provided each time we've spoken about it. Mike, anything to add to that?

No, sir. You covered it all.

Okay. All right. Last meeting, you said you intended to buy shares, but there was no window. Do you still intend to do so? Yes. So someone asked in the last meeting, does it -- what if the stock price is this or that or wherever, would you still buy shares? And the answer was yes. And so clearly, now it's even more robust, yes. But that would have to be -- our window will open on May 8 because we have to wait 48 hours after the presentation of earnings to the public. With the recent decline in share price, what are your thoughts? What is going to catapult the share price above $1 and a couple of other questions in that vein. My thoughts are it's a shame. It's unexpected. It certainly reflects from my belief, an undervaluation of our company. But at the same time, I think when you dig into, okay, well, other than you're disappointed and so on, what is it -- what do you think about it? I think that it's -- we need more buyers. We need more people to want to acquire the stock. So how do we do something? What do we do about that? As we talked about on the last webinar, we need to open -- we need to make it easier for new investors to acquire shares. We appreciate all of our existing investors who continue to see opportunity to acquire additional shares at what they believe to be an attractive price, which certainly I believe it to be an attractive price, but people that are buying, I think, would share that sentiment. But we need to open up to additional new shareholders, new investors. And so we note that there are some investors that don't want to buy a stock in a company when the company is not cash flow positive. And so we are striving for cash flow breakeven. We intend to get there just as soon as we possibly can. And we think once we do that, then an investor that wouldn't invest in a company that was burning cash would then potentially consider Zomedica as a stock to acquire. We think beyond cash flow positive that there are company -- that there are investors that don't want to invest in stock in a company that's not yet profitable. And so beyond cash flow positive, we're looking for GAAP profitability, which in our case, comes -- will come pretty close after cash flow positive, we think. And so we're striving for GAAP profitability just as soon as we can so that we can attract those additional investors. Sadly, there are some investors that don't want to invest in stock that's traded over the counter. There are investors that don't want to trade -- that don't want to acquire a stock that is priced at less than $1, they consider them penny stocks. Those require a little bit longer outlook. Those require a reduction in the total number of outstanding shares or a longer period of time to generate organic stock price growth. Beyond that, the company itself, and I've said this before, I quoted Jeff Bezos, "Company is not the stock and the stock is not the company." The company is growing. We're growing our revenue. We're maintaining attractive margins. We are reducing expenses. I think one of the things that I've repeatedly said is that we expect operating expense to be reduced as a percentage of sales and also in absolute dollar terms, spending less cash, generating higher revenue and less cash, so OpEx goes down. These are things that we are doing. Beyond that, I think we'll -- I'm surprised I don't see it yet, but there's usually a couple of questions on here about what about a stock buyback. And I will say the same thing I have historically, which is until we're cash flow positive and profitable, it would not be a prudent use of our capital. And would only probably generate a short-term rise that would benefit some investors, but certainly not those that are in for the long haul. Permanent short-term gain in stock price, but a permanent loss of capital for the company. We don't want to raise additional capital. We don't feel like we'll need to raise additional capital. We're happy with where we are. We're confident that we have sufficient capital to achieve our near-term financial objectives, but we're also pinching pennies. And we expect that you'll appreciate that when you see earnings released for the first quarter. There are other structural things that could be done with the capital table. You're all aware of what those might be. But at this point, we believe that the majority of shareholders would not support, any sort of structural changes in the cap table. If that changes in the future, then we'll certainly take that input and be guided by what the shareholders would like to see. Mike, anything -- any other comments you want to make on that? Okay. Let's see here. You said the company needs more buyers and easier access to the stock. What concrete actions are you taking in 2026 to improve that? I believe I just answered that question. If you want to ask a follow-on and ask for more specifics, I'd be happy to try and answer that as well. It seems that there are a few small holders who intentionally hold the price down. Are there any strategies to mitigate that? Thank you for your honesty. Well, and then a nice comment, which I appreciate. You know who you are that did that question. And then there's another question very similar to that from a long-term holder. And that is what is the long-term -- no, not that one. No, from a -- how is it? Is there a strategy to deal with the daily market maker manipulation of the current share price? Okay. So I'm not -- I'm really not the person to talk about the market maker and what they might be doing with the share price and so on and so forth. I think there's a lot of folks out there that certainly have their eye on that. I think -- there are people, I'm sure that when the stock price is at $0.10, buy it and when it gets to $0.15, sell it. And then if it goes back down, then they buy it again and so on and so forth, and it's a way for them to make some money. I think the best answer to that is for us to get to cash flow positive, get to cash flow breakeven, get to profitability and just continue to drive the stock -- continue to drive the performance of the company, which in a rational market, one would think achieving major milestones like that, showing continued progress and so on in a rational market, we think eventually we'll take care of those little dips that are happening on a daily basis. Do you believe cash flow breakeven alone is enough to attract new investors? Or do you think GAAP profitability and a higher share price are both needed before a broader re-rating happens? Mike, do you want to take that one? I can, but we're all here.

I think to borrow from what Larry just said, in a rational market, it certainly would remove criteria, right, as Larry has talked about, that prevent traders from coming in. So will it attract new investors? Yes, to the magnitude, I guess that's the question, to be determined. Again, as we've said before, the problem we're looking to address or what we're seeing in the volume here is we're shooting to operate the company with underlying performance, strong health, strong growth, strong liquidity that fosters confidence in the company and drives demand for the company stock. An increase in the number of buyers will all -- will subsequently drive an increase in the share price. So to answer your question, I can't tell you definitively that cash flow breakeven alone is enough. I can't tell you that once you get to GAAP profitability that, that will be enough for it to take place. What I can say is in a rationally behaved market, those would be logical achievements that would drive price. And there are things that are squarely in the control of this management team and the people that work for this company. So regardless of where the share price is today, if the company were overvalued, we would continue to do what we thought was the right thing in the best operating interest of the company for long-term health.

Yes. I think that's right on. I think the other thing I'll mention is the difference between cash flow breakeven and GAAP profitability really is just the noncash expenses that hit us, right? And those really consist of depreciation and amortization as well as stock option costs. And I guess one unexpected benefit, certainly unintended by anyone around here of having to take impairment charges in 2025 due to the reduction in stock price that came just after we moved to the OTC market because we were delisted from the New York American Exchange. was that the way that we took that impairment was we essentially eliminated goodwill. That's the only thing we could do. Maybe not to only think, Mike, you can comment on that, but certainly was pretty much the straightforward thing we had to do. And when we did that, that then had the effect of reducing forward-looking depreciation and amortization on some things.

Yes. Just a small correction, right? The goodwill, Larry, was fully impaired and that impairment expense to dip into some of the amortizing intangibles. But not fully, but that did bring the forward-looking amortization amount down a little bit as a result of taking that onetime charge.

And so as we look to the future, without those charges hitting us on a quarterly basis over like a 10-year period or however long the period is, that reduces the gap a little bit between cash flow positive and -- or cash flow breakeven and GAAP profitability. I will say that institutional investors generally will look beyond the -- above the bottom line of the company, which is the GAAP profitability determinant. And they'll look to the EBITDA or the earnings before interest, taxes, depreciation and amortization. And if that's positive, generally, that's sufficient for them to say, yes, this is a company that meets that criteria. Now there are other criteria such as we're less than $1 a share and we're traded over the counter that may then turn around and have them disregard that. But -- so anyway, that's that. Let's see here. Any new -- well, I can't really talk about that one. Basically, we could do 80,000 a month. The current demand is below that. What needs to happen commercially for demand to move meaningfully toward that level over the next 12 months. We continue, right? We continue to put more TRUFORMA instruments out into the marketplace. We leverage the support that we have received from Boehringer Ingelheim. But let me tell you, the reason behind the BI collaboration was that over the last few years, as we have developed assays in the equine market and specifically eACTH and insulin, and as equine physicians have used those products, that's caused certain academic institutions to look at them and analyze them and publish about them. And at last year's -- so December of last year, the annual Association of Equine Practitioners meeting, there was an academic presentation by a university academic veterinarian who talked about our eACTH assay and how it not only was just as accurate with the only other way to get that assay and the only way that veterinarians have gotten that assay over the last decade, not only was it just as accurate, but also provided additional information, which could potentially be meaningful from a clinical standpoint. And so that's really been accelerating that. And then, of course, BI says, well, if it's just as good and provides additional information, let's go ahead and essentially endorse it by collaborating with the company to provide free installations and so on to our customers, their customers, right? And now they become our customers as well if we didn't already have it. So we just need to continue to do that. We have some additional assays coming out this year. One is a -- well, we have additional assays coming out for both equine and feline applications. And as we increase the installed base and throughput continues. Also, we're seeing some really nice uptake internationally. We recently put TRUFORMA into the U.K. market through our distributor there. We put TRUFORMA into the equine market in the EU through our distributor there. And we put TRUFORMA into Turkey. And it's not terribly material, but that Turkish distributor went to a conference there in Turkey. And within the next week, had 11 installations of TRUFORMA instruments in like a week. And so we had to send some more TRUFORMA devices, which we were, of course, pleased to do. So just continue that, and then that will eventually get to the demand. There's other things we can do that we'll disclose in the future as we move forward. What are our thoughts on expanding the human health industry? Through collaborations, we think it's a terrific idea. We think our -- we certainly now have the capacity to do that. We're 13485 certified, which is a quality standard, which is necessary to be able to design, develop and produce products that are met for the human market. On the other hand, the regulatory pathway is stringent with FDA requirements. It requires clinical data from clinical trials, which can be expensive. And then once you have that completed and you go through a lengthy process with the FDA, then you have to invest in the commercial engine to be able to distribute those products throughout the human marketplace. And so we believe that our cash is best preserved to make Zomedica have it fulfill its promise, meet the near-term milestones and so on and so forth. So through the -- through collaborations. Now I say that having spent from 1982 to 2021 in the human health care market. I started as a salesperson at a company called U.S. Surgical, 18 years -- 13 years later, I became its CEO. When I started at that company, carrying a bag as a salesperson, $70 million were annual sales when I left, when I retired from there as the CEO, $2.1 billion, about half of that outside the U.S. and about half of that in the U.S. So very familiar with the human health market, did a number of start-ups in the human health market, went through the entire process with the FDA, with CMS to get coding and reimbursement and so on and so forth. So it's not that we don't understand it. Tony, who I've partnered with before in a start-up has vast experience in the human health market as well. Ashley was in human health, Evan was in human health. So our R&D team, our innovation technology team, many of the folks in our manufacturing facility in Plymouth, human market. So we understand the market. And we also understand what we have. And there's an opportunity there, and we intend to exploit it, probably more than you asked, but anyway. Okay. So here's one. I'll ask this one because it answers its own question, right? You mentioned BI support and continued TRUFORMA placements as the main drivers of higher demand? Yes. It's really the quality of the product and the outcomes that veterinarians get from it. BI is simply making them aware of it. And once they see it and they understand the accuracy and the benefits of it and so on, then that's what really drives it. But what specifically has to improve commercially for monthly cartridge demand to move meaningfully higher from here, more new instrument placements? Yes. Better utilization of existing sites? Yes. Broader assay adoption? Yes. And I'll answer one more, which is additional assays. Do you have institutional investors reaching out to possibly acquire shares? Institutional investors that would like to take a position in Zomedica generally would like to take that position through a direct investment in the company. And what does that mean? And I'm sorry to mansplain it here. But what that means is they don't want to try and buy shares on the open market. They want to come to us and have them sell them -- have us sell them x million dollars' worth of shares at one time in a deal, a private placement, it's called a PIPE, private investment in a public entity. And they happen all the time in the public markets, right? So -- and generally, those types of investors, they'd like to see a discount to the share price, the public share price. Well, first of all, what that would do is further dilute the shares of the company. And there's no one on this call that would benefit from further dilution of the shares. Could we do it? Yes. I know when a previous -- in previous discussions about potential changes to our capital structure were held. There were some that were concerned and many companies would do that because they don't have enough shares in their charter to be able to sell more shares and they need money. So then they changed their capital structure so that they could turn around. And now they have more room in their charter and then they sell those shares and then they bring in money and then everyone is diluted and everyone's not happy or many people are not happy, I guess. In our case, we don't have that limitation. We're a Canadian corporation. So we have no limit on the number of common shares that we can issue. We haven't had the limit since I've been here. And as long as we're a Canadian corporation, we won't have a limit. What keeps us from selling additional shares is we don't need the capital, and we don't want to further dilute the shareholders. So when institutional investors reach out to us to possibly acquire shares, we say we're not in a position to be able to sell shares, to have you acquire shares through a direct investment in the company. And it's pretty straightforward. In addition, institutional investors to an investment firm, if they wanted to acquire shares, they would also absolutely want us to change the capital structure, plain and simple because they view that. In fact, I have a couple of people that have posted questions or comments here in the Q&A that are suggesting that we go ahead with a change in the capital structure. So that's sort of a, I don't even say a double-edged sword. That's just a sword that's just sharp all around it, right? So generally, it really doesn't matter whether they're reaching out because we're not interested. Now that's different than someone that -- an outside investor, whatever that would want to acquire the company. If that were the case, we have a fiduciary responsibility to take that to the Board. The Board has a fiduciary responsibility to its shareholders. And so that's a different scenario. But if somebody wants to come along and say, hey, I'd like to take a $5 million position in the company, sell the shares to us directly, we say no, no thanks. And then do a capital -- do a change to your capital structure after that, then we just say no. It's kind of a convoluted answer, but do you think we will still have PIMS integration in June? Yes. I met with Evan today, and he assured me that, that project is going along very nicely. So just as before, that will come in June for the first product is TRUFORMA, and it will be sort of we've done a Pareto analysis. The major providers of PIMS services to the vet market will be the first ones. And then we'll eventually by sort of third, fourth quarter, we'll have all covered and all of our products that are applicable covered. To help investors frame the opportunity, should human health collaborations be viewed as a near-term revenue contributor over the next 20, 24 months or mainly as a longer-term strategic option? I think both. I think both. With -- we certainly, if we're doing sort of manufacturing and order fulfillment, customer service, technical support, things like that for a company like Rahm, this is a company that has one product that we're manufacturing today. And so in the near term, it's a revenue contributor. And you'll be able to gauge that as we report earnings on a go-forward basis. And also, it's a longer-term option as well because they have one product now, they have another one that we understand they're getting close to and then another one, and they've got lots of ideas, and we work well together. And so I think both. Other entities that we work with, if it's -- there are near-term opportunities for sure that may also turn into long-term opportunities, may turn into long-term revenue generators or after a certain point, they may not work out or they may want to manufacture themselves or I mean there's all sorts of -- there's things. But -- so the thing that we can count on a near-term basis is the things that we're doing on a near-term basis. And of course, we're always looking for ways to partner with new entities, consistent with what we said once we bought Qorvo Biotech. And so I think the answer to that is both. We talked about expanding the human health industry. We talked about that. About that, can't answer that. That's the same question before. Yes. So again, another question, I almost wonder if it's sort of an AI question. You said the key to attracting bigger investors is reaching not bigger investors, new investors, new retail investors, new investors that want to take a small position. And of course, if they want to take a larger position, typically, institutional investors tend to take larger positions. But our shareholder base is very much concentrated in retail investors, and we want to dance with the one that brung us, frankly. Anyway, to attract investors reaching cash flow breakeven and GAAP profitability without giving product line level detail, what milestones should shareholders watch over the next 2 to 3 quarters to know we're on track, for example, revenue growth, gross margin, OpEx as a percentage of sales, development services contribution. Again, those. Mike, you see any other ones? Cash burn going down.

I think cash burn is important. I think as you look at OpEx as a percentage of sales, again, I'd also encourage people as we've reiterated, also look at OpEx in terms of absolute dollars to the prior periods.

Okay. Key KPIs. I think we've answered that. Can Rahm and other development service partners scale in current facilities without margin pressure or major CapEx? Tony?

Yes. I think we've said it a number of times, we're set up to scale. We've invested the money in equipment and systems to be able to scale for all the things that you just asked.

I think we do see a little bit when we first do sort of a major production effort with a new partner that does put some pressure on margins because typically, we're -- that's where your costs are going to be higher relative as you're doing new things and so on and so forth. I think we've seen a little bit of that, and that will come out in the quarterly results. But we're happy to do it because we got the revenue and it more than offset the -- maybe the slight reduction in margin. But then each time that we've done it, we've seen the margin go back up. What year-end 2026 milestones would prove you're truly on track for 2027 breakeven and profitability, like really low cash burn and growing revenue and attractive margins. How should we think about Rahm ramping through the rest of 2026, steady contribution back half weighted or still too early to characterize? Tony, I mean you're closest to that because you're doing that manufacturing without giving any -- Mike shaking his head, no. So -- how about this, steady contribution. Let me answer it for you. Let's see. You mentioned that's done. We've asked that we've answered that about the CapEx. When does the report? When will the new website? Okay. All right. Since you identified revenue growth, gross margin, OpEx as a percentage of sales and development service contribution as key milestones, which one do you believe will improve first and be most visible in the next 2 quarters? Well, gross margin, I mean all these are going to be visible, right? So you're going to see -- so revenue growth year-over-year, we've hit, what, 21 quarters, I forget the number. Every quarter we've been here, has been increased year-over-year. I expect it -- well, as I said earlier, we don't see -- we don't expect anyone to be surprised with our quarterly results from that perspective. Gross margin, we talked about that. We need to keep attractive. Certainly, there's a trade-off in undertaking development for other companies and contract manufacturing for other companies. We're not going to see the same margins with those -- with that segment as we see with our own core products. But we appreciate the revenue opportunity. And so we're fine with that. That will be very visible every quarter. OpEx as a percentage of sales and in absolute dollar terms, you'll see that as well. I just don't think -- they all improve at the same time. Well, maybe not at the same time. I think really the bottom line is the thing that you're going to look at most. That's what I would look at. EBITDA, earnings before interest taxes, depreciation and amortization, that's the best indicator of the company's performance, I think, in my personal opinion. Mike, what do you think about that?

No, I would agree with that, Larry, that EBITDA line item would be the best summation of the various pieces by mathematical, right, it's the equation. That would be the tell-tale sign of all the levers being pulled in the right direction and coming together.

Okay. Does it make sense to license the Qorvo TRUFORMA tech outside of human health and vet, i.e., other industries that can use the BAW sensor technology? I suppose it would make sense to do that, but that's like Qorvo -- that's Qorvo, Qorvo Inc., that's theirs to license to other industries. We have a license to use it in health care, both for animal health and human health. But we don't have -- to my knowledge anyway, we don't have the ability to go to some other completely unrelated thing. I wouldn't know how that might look, but I think that would be something we could not do. We have several people opining that they don't want the capital structure change and several opining that they do. So I'll leave you to hash that out on your boards. Okay. And I think we're going to be pretty close to the bottom here. Any areas of the U.S. that have gaps in sales opportunities can shareholders contribute in advertising somehow? You all have dogs and cats. Please tell your vets. If they haven't heard of Zomedica, zomedica.com, we have products that will help them do the things they really love to do, improve the quality of care for your pets and your satisfaction as the pet parent client, and it will also help the veterinarian improve the workflow, the cash flow and the profitability of their practices. If they don't want to go online to zomedica.com to see, then have them call me. Have them send me an e-mail, and I'll make sure somebody gets to them. I likely will call them myself. If they tell me that they're referred by a shareholder, I promise you, I will call them myself. So please do that. Other than that, gaps in sales opportunities, yes, Hawaii, Alaska and some states that kind of -- where vets are really few and far between. But even in those areas, we have an inside sales group that will service those follow-up leads and be proactive, but there's no substitute for feet on the street. So -- but you all can help. So keep that in mind when you're at the vet. Everyone's spouse wants to know when we will change Friday at Four to another time. Mine too, by the way. Mike's too, Tony's too. I mean we could do Third Thursday at Three if we wanted to. Tell you what, in the last 3 minutes here, if you're still here and you still are in front of your keyboard, tell me if you'd prefer Third Thursday at Three, Fourth Friday at Four. We'd like something a little catchy so people can remember it. And if I get a whole bunch of Third Thursday at Three, then we'll do Third Thursday at Three. When you say gross margin will be the most visible improvement, should we expect -- did not say that. Did not say gross margin will be the most visible improvement. In fact, I've said earlier that gross margin generally dips in the first quarter and then improves during the course of the year. So please don't -- let me -- if I misspoke or if it's possible that someone misheard, please let me clarify. We expect the same thing this year as we have seen historically and traditionally. And there's reasons for that, which we can cover after the next earnings result. The most visible improvement is an increase in revenue, a reduction in OpEx in dollars, a reduction and a higher reduction in OpEx in -- as a percentage of capital -- percentage of revenue. Let me leave it at that. When you say really low cash burn, do you mean near 0 quarterly operating cash by Q4 to 2026 with revenue still growing and gross margin stable or improving? Yes. I mean we burned $1.5 million in the fourth quarter of last year. That was a pretty good sign that this year will look pretty good from a cash burn standpoint. What's required to get relisted on the major stock exchange and other plans to do it? Let me refer you to last month's Fourth Friday at Four. Mike had a little slide presentation on that. And let me just defer to that. And then I think that's -- I mean we're getting more of the same sort of questions. I'll have a couple more minutes. Let's see here. So I got anytime but Friday at Four. So I guess that's a vote for Third Thursday at Three. Someone else wants Fourth Friday at Four. Either day works. Thank you -- thank your staff for what they do. Gentlemen, please pass that along, especially you, Tony, to all the folks who -- I know some of them -- I know them personally, a lot of them, and I know they weren't comfortable being in front of the camera. Okay. And the rest of these are, I think, kind of more of the same, looking for more specifics than we're comfortable giving. And I noticed that it's now Fourth Friday at 5:14. So if your spouses were not happy that we did it at all at 4:00, I know they're certainly less happy that we're doing it over time. So with that, let me thank you very much. We're always available. Mike or I, you have our e-mail addresses. It's first letter, last name @zomedica.com. Feel free to reach out any time, and we will talk to you. We'll make a decision, and we'll talk to you either on the Third Thursday of -- actually, it will be Fourth Friday in May because May is really, really, really packed in there. We've got a bunch of stuff going on. And with that, thank you very much. Have a great weekend and go Zomedica. Take care.