Zomedica Corp. (ZOMDF) Earnings Call Transcript & Summary

I'm Dr. Kelli Puccio, and I am a professional services veterinarian with Zomedica. Prior to coming to work for Zomedica 2 years ago, I was a practicing small animal practitioner here in Denver, Colorado. Monitoring vital signs such as temperature pulsed respiration is very important in veterinary medicine. The reason is because small changes in these parameters can indicate problems with our patients, such as an elevated temperature can indicate either a worsening fever or a developing fever. It's most important in monitoring our patient's vital signs in 2 -- I would say, 2 scenarios. -- is going to be postoperatively. In the first 3 hours after a patient has taken off of general anesthesia, that is the most important time where we see the most anesthetic related deaths in our canine and feline patients. And so continuous monitoring is final during that period of time to decrease the chances of death in that period of time. The second is going to be our debilitated patients in ICU such as our patients with severe pancreatitis or DKA. Again, small changes their temperature pulse and respiration can indicate a serious problem that's going on. So ZeroTouch contactless monitoring affects many aspects of better investments such as workflow and efficiency, patient stress and safety. The way that it's going to help with workflow and efficiency is that in our small animal hospitals, oftentimes, we are understaffed. And therefore, our workflow is a lot harder on our staff. And by having a device that is taking care of TBR when we're understaffed, it allows our technicians and our staff to be participating in more advanced tasks and things of that nature. As far as patient stress, not having to have a technician go in every 10 minutes and take a temperature and a pause and touch the patient and to rearrange them while they're recovering from anesthesia or if they're very sick is also helps with patient stress. Also, we have -- you have your patients that are angry patients, your anxiety or fearful patients. and going in and constantly having to touch them every 10 minutes is very stressful for them as well as that goes into safety. When we're having to deal with these patients that don't like to be touched. It's safer for them as well as for our staff to have to do that less frequently. And having a contactless monitor allows us to have that freedom to do that. The study that was done regarding Vet Guardian Plus, what it was doing is it was comparing the technology of the Vet Guardian plus versus the pet pace wearable color. And what they were looking at is trying to see about the accuracy between the 2 and how they compare with each other. And what the study found is that there was a very strong agreement between the VetGuardianPlus and the pet pace wearable color. And so what that means is that instead of having to put something on the patient, whether it be your elevator clips, whether it be things that you stick on there, wires at all these contacts, all these things that touch the patient and cause more tree for the patient and are less safe for the patient. You can have a contactless technology that will give you comparable results that worked just as well. Zero-touch monitoring device adds the most value for veterinary practices particularly again in that post-op period of time. That is the most important time we need to be monitoring our patients. Oftentimes, we're doing one surgery right after another and having this contactless monitor adds value in the sense that it frees up our technician's time, they're not doing routine menial tasks constantly where they can be helping to set up the next patient for anesthesia, get the surgery spate cleaned and things that they can do things that they need to be doing and that adds value to the device because it allows our technicians to be doing things that are more profitable for all the hospitals. What it means is that we now have a better technology that is safer for our staff and our pets. It allows us to have more freedom to do the things that -- other things that we need to do in the hospital, and it allows us to have a better workflow and better efficiency within our hospitals by adapting these new technologies that are coming out in veterinary medicine.

This is a land study. A monitor is only worth buying if the clinic trust the numbers. And accuracy is the first question every buyer asks. Data that answers it removes the main objection and shortens the path to a first purchase. It also supports veterinarian workflow because the clinic can monitor patients without attaching leads or wearables. The next 2 studies come from the TRUFORMA platform, beginning with cats. Hyperthyroidism is the most common endocrine disease in older cats, and waiting on reference laboratory results can slow treatment decisions. The study included 169 untreated hyperthyroid cats confirmed by thyroid cyntigraphy, a form of nuclear imaging and grouped from subclinical to severe. It also included 53 cats previously treated with radioiodine 12 cats with chronic kidney disease and 78 healthy cats. Each CAT serum was tested 3 ways with a T4 test with the standard reference laboratory TSH test. And with the true former platform, TSH assay, which can measure TSH at levels about 4x lower. The team measured sensitivity, specificity and predictive values for diagnosing hyperthyroidism. And for diagnosing hypothyroidism caused by radioiodine treatment. The study was published in the American Journal of Veterinary Research in 2024 by Mark Peterson with coauthors Eric Doherty and Mark Richnew. For diagnosing hyperthyroidism, the Truforma platform, TSH assay, outperformed the reference laboratory TSH test and every difference was statistically significant. Sensitivity was 90.5% compared with 79.9% for the reference lab test. Specificity was 98.9% compared with 76.7% and positive predictive value was 86.9% compared with $21.7 million. The advantage was greatest in early disease in subclinical and mild hyperthyroidism, where T4 is often still normal or only slightly high. For hypothyroidism after radioiodine treatment both TSH test detected 100% of cases compared with 45.5% for T4. Positive predictive value was 100% for the True forma platform assay compared with 81.2% for the reference laboratory TSH test and 71.9% for T4. The author's conclusion was that TRUFORMA platform TSH alone or with T4 is a highly sensitive and specific test for both hyperthyroidism and post-radioiodine hypothyroidism in cats. Dr. Kristen Marson, professional services veterinarian at Zomedica joins us to discuss this study.

My name is Dr. Kristen Martin. I am a professional services veterinarian with Zomedica, -- my background is in small animal general practice. In overactive thyroid or hyperthyroidism is 1 of the most common diseases we see in older cats. -- and help diagnose it that often measure hormone called T4 and then another 1 called TSH. But the problem is that the TSH test that the reference lab and the other point-of-care devices used for caps was actually designed for dogs. So it can't measure very low TSH levels and very low TSH is exactly what we to see in a hyperthyroid cat. So that test can't reliably tell a healthy cap from SiC. So Dr. Mark Peterson, 1 of the leading experts in feline disease, wanted to know whether the TruFormA,FLin TSH, which can measure much lower levels, would do a better job. So his team tested both side-by-side. -- on the same samples from about 300 cats. TruForma outperformed the lab test on every key measure, about 91% of hyperthyroid cats compared to about 80%. And it correctly cleared almost 99% of healthy caps compared to 77%. With the old test, a low result only meant about a 1 in 5 chance that the cat was actually hyperthyroid whereas with Hofma, a low result means nearly 9 and 10 chance. So now veterinarians can be more confident about their diagnosis. The study also looked at path after radioiodine which is a treatment for hyperthyroidism. Some of these counts end up with the opposite problem an underactive thyroid, can harm their kidneys if it's missed. So Tru forma identified every single one of those caps, whereas a standard T4 test caught fewer than half -- so the authors concluded that the TSH tests, particularly the Truforma feline optimized TS should be considered a first-line screening test along together with. Truforma TSH can add value for vets in many different ways. It can help with early diagnosis, for example, in cats with early disease T4 often still looks normal. And in this study, T4 actually missed half of those early disease caps, whereas a sensitive TSH test like the Truform a TSH, will flag those caps so we can watch them more closely. It also can instill confidence in the veterinarian when Truforma says a CATs normal or abnormal. We can trust it, which means fewer unnecessary rechecks, less worry for owners. And then another added benefit is speed. It runs right in the clinic in less than 20 minutes. So we can make decisions during the visit instead of waiting days for lab results. Fibroid disease becomes part of the CAPS care as it ages. So it starts with wellness screening, adding TSH alongside a T4 to capture those problems early. If the cash signs like weight loss, despite a good appetite, or increased thirst, we can test them. And cats with borderline results are going to get rechecked over time to see if disease is developing. And then after treatment, do testing to make sure the thyroid is staying in a healthy range, not too high, not too low. So a single cat will likely need TSH testing many times throughout its senior years.

This is a deepened study. A broader fee line thyroid menu adds test to a platform the practice already runs and monitoring cats over the course of treatment creates recurring test revenue. a cat with thyroid disease is not tested once. It is rechecked throughout treatment. And each of those tests can run in the clinic. That is veterinarian cash flow and practice, and it drives recurring true form a platform cartridge utilization. Our second TRUFORMA study moves from cats to horses. Pituitary parts intermediate dysfunction known as PID, or Equine Cushing's disease and insulin dysregulation both drive lamonitis. Testing for them matters, and the samples are sensitive to shipping. The study was led by Dr. Kelsey Hart at the University of Georgia and was just published this month in the Journal of Veterinary Internal Medicine, it included 28 horses, 13 with PPID and 15 healthy horses. Blood was sampled in every season over 1 year, and each sample was tested on both the TRUFORMA platform point-of-care assay and the reference laboratory test. The TRUFORMA platform assay measures ACTH and CLIP separately. CLIP is a related peptide that the reference laboratory test also picks up the team measured correlation and bias against the reference laboratory test, along with precision and linearity. Overall, the Truforma platform assay showed strong agreement with the reference laboratory test a correlation of 0.95 with an average bias of 17 picograms per milliliter in horses with PPID agreement held with a correlation of 0.93 and an average bias of 30 picograms per milliliter. Bias was larger in autumn, about 34 to 36 picograms per milliliter compared with 2 to 11 in other months. Autumn is the season when ACTH runs naturally high. bias also grew at higher hormone concentrations. Precision was 8.5% variation within a run and 14.1% between runs, and linearity was excellent within our squared of 0.991d Dr. Kimberly Keeton, professional services veterinarian at Zomedica joins us to discuss this study.

I'm Dr. Kim Keeton, of professional services veterinarian with Zomedica. I joined the company after more than 20 years in clinical practice with experience in general medicine and reproduction in the United Kingdom. During the last decade in my clinical career, I focus primarily on integrated performance Core medicine specializing in the diagnosis and management of lanes and poor performance in Elite Sport horses. Dr.Hart's independent validation study demonstrated that the TRUFORMA assay is accurate during all times of the year and allowed the Equine endocrinology group to make the recommendation that Truforma is accurate, gear-round for horses with PPID as well as those without PID. Veterinarians are trained to question and verify. Our natural skepticism is actually a strength. We're relying on our resourcefulness to interpret what our patients cannot tell us, but we have to trust tools that have proven merit. University validated point-of-care testing helps us to move from curiosity to confident by providing independent research that supports clinical decision-making. In-house validation helps demonstrate value absolutely. But independent university research takes confidence to the next level by providing the objective evidence that we are seeking when evaluating new diagnostic tools. Dr. Kelsey Hart not only presented her findings to the national meeting of the American Association of Equine Practitioners last December those findings were also accepted by the Equine Endocrinology Group, which is an esteemed international panel of experts on the equine endocrinology disease, finding that TRUFORMA is as accurate or equivalent to reference lab testing for diagnosing PPI, it was also most recently accepted for publication in the Journal of Veterinary Internal Medicine, which is one of the most respected peer-reviewed journals in veterinary medicine. When I think about one particular horse that had stood out of my career as one that we managed PPID and insulin deregulation. I certainly have one very high-performance junior hunter in mind to Walton talks like a PPI horse. He was an air firm. He had a long hair code, crusting, all the clinical signs of PPID and insulin disregulation. With that particular animal, we were very careful with how we manage is osteoarthritis, how we manage to stay that they care. We have a lot of acupuncture and a lot of shock wave and medical manipulation to keep him as comfortable as possible so that we could avoid drugs and medications that might kick off a flare of laminitis because that can be career ending for horses like that and certainly challenging to manage in the long term if you end up with a botolamonitis because it often becomes chronic and affects that career -- that horse for the rest of its career and certainly for the rest of its life. Because veterinarians are inherently skeptical and evidence-driven, questions about novel test results are both expected and valuable. This leads to great legal conversations across the world with different people treating the same endocrine diseases and equities, be it donkeys, horses, performance sources, backyard horses. So being able to share this university validated research from Dr. Hart and pair testing outcomes with reference labs, helps provide the scientific context that veterinarians need to strengthen confidence and support adoption of the Truforma platform in clinics across the world. Full set customers have already demonstrated confidence in the technology backed by years of research and clinical validation. That established trust in both the science and Zomedica creates a natural pathway to introduce Truforma, the same horses being treated for lanes performance or age-related conditions with Pulsevet or often candidates for metabolic testing, such as PPID and insulin disregulation. With Truforma, these veterinarians can obtain reference lab quality endocrine results in about 20 minutes, allowing them to diagnose, discuss and begin treatment during the same visit, while creating a new source of recurring diagnostic revenue.

This is the EXPAND study. Equine endocrine testing gives the Triforma platform an entry into equine practice and equine practices that already treat with pulse-vet devices are the first place it goes. That shared base is where accounts expand. It also connects to the HUF growth study. laminitis is the same clinical risk now addressed from the diagnostics side. A study creates value when it reaches the practice. To show how that happens, here is Tanya Buckman, Senior Product Manager for Upstream.

Hello, I am Dr. Tanja Backman, and I'm the senior Upstream Product Manager at Zomedica. The claim gets a vet's attention, but to change how they practice, they want to see. It works in real patients ideally from colleagues, they respect a study turns trust us into here is the evidence. And when that trust the evidence they use the product with more confidence day after day. Both before a launch, we ask what evidence a bet will need to trust the product from day 1. That helps us to lend the first purchase for a product already in the field, let's keep asking new questions, like a new patient type or a new use. Studies help us answer those and that depends how much the practice uses the product. In both cases, the question starts with what the vet needs to see. The investigators run the science and share it with their peers. Take one of today's studies, a university specialist compared our in-clinic test with an established laboratory method across the seasons, present the findings at the national conferences for equine vets and has since given Zomedica University webinar on testing. That's how evidence reaches practices through publications, conferences and continuing education. And our PSV bring it into daily conversations with the vets. In my role upstream, I work with R&D and the PSV and sales teams to agree what evidence matters most to the map, and I make sure the results can reach the right people in a form they can use. So it's a loop. Feed questions go up, evidence comes back down. When a practice trusts the evidence behind one product, it's open to more. That's where we expand. A second product in the same practice built around the same vet. And that's the pattern you've seen across today's studies.

Tania Buckman is a familiar voice from our September session, and her upstream role sits at the start of this pipeline. A study pays off when it leaves the lab and reaches the practice. Results travel through 4 channels: publications, conferences, continuing education and sales training. Each one carries the evidence closer to the customer, the veterinarians who ran the studies become the peers who present them as key opinion leaders, they bring their results to colleagues through conferences and continuing education, which is how evidence becomes adoption and adoption becomes recurring use. To close today's session, here is Larry Heaton, Chief Executive Officer of Zomedica.

Thank you to everyone who contributed to today's session. including Ashley Wood and the veterinarians who shared their work with us. Let me bring today's discussion together. Veterinarians buy on evidence, and we build that evidence before we launch. Across several product lines today studies point to one consistent model. Evidence supports adoption, adoption supports utilization and utilization supports recurring consumable revenue. You also saw the 3 phases we used to describe how evidence turns into commercial results. The first is land. Evidence can win a first purchase or open a new type of practice. The hoof growth study points to podiatry practices and ferries. And the vet Guardian plus remote monitor accuracy study speaks to the first question, every buyer asks. The second phase is deepened. Evidence can add uses for a product that practice already owns. The Equine asthma study and the study of bone healing after TPLO surgery, each had a use for the Pulse Shockwave system. -- and the feline thyroid study as recurring test to the Tuforma platform. The third phase is expand. Evidence can carry a second brand into an existing account. Equine endocrine testing brings the TruPharma platform into equine practices that already use pulsevet devices. We also showed you the other half of the story. A study creates value when it reaches the practice, and that happens through publications, conferences, continuing education and sales training with the investigators themselves becoming the peers who present the results. What we believe matters most is this. Each study adds a lasting reason to buy or use the Zomedica product and the evidence-based compounds over time rather than resetting each quarter. We remain focused on quality, clinical outcomes and operational discipline, and we will continue to invest in the evidence that supports our customers and our growth. Thank you again for joining us for this Fourth Friday at Four webinar. We appreciate your time and your interest in Zomedica. Dr. Wood and members of our clinical studies team are with me now, and we're ready to take your questions. So let's get started.

[Operator Instructions].

So good afternoon. Almost good evening. This is a little longer than we normally take on the prepared remarks. But I think we've got a lot going on and to do it justice to just a bit longer. I'll extend the Q&A period to make sure that we get to all of your questions. Before we go further on this one, though, I'll just mention that in November, since the Fourth Friday in November is Black Friday and everyone will be sort of still moving slowly from all the Turkey we on Thanksgiving, we're going to do the fourth Friday on the third Friday in November. So our next webinar will be the third Friday, it's November 20, and it will cover the human resources at Zomedica. You've met many other people, but you'll meet some more even. So that will be November. And we will, as we did last year, we will not have a fourth Friday session in December when given everyone the Christmas holiday off. So with that, let me get to your questions. First, I appreciate those that have provided questions when you registered. Those will get to first. And let me just see what those are. So the first 1 is, will Zomedica dual list on the Canadian exchange and the OTC, if not, why? -- and another one, do we have a plan for being relisted on the NYSE. So to both of those questions, I would say that we definitely would very much like to uplist from the OTC there are requirements for the exchanges. Mike Selke has covered those before. And so we have a plan. We meet all the requirements except for share price. And so either either we address the capital structure in some way or we just grow like heck and be patient so that the market cap gets to the point where with 1 billion shares outstanding, we have the price per share that will allow us to uplift. We meet all the other requirements. So we definitely are pursuing that as appropriate and timely. Are we still on track to be cash flow positive by the end of this year, and there's another one, are we still planning on getting to profitability in 2027. And I'll just say, yes. So we -- the plan is for us to be cash flow positive, not by a huge amount in the fourth quarter, but we do believe that with the fourth quarter if we perform in the fourth quarter like we have in the last 3 years, fourth quarter and have increased revenue, our top revenue of the year that -- with that, we should be cash flow positive just a bit in the fourth quarter. And we also plan on reaching a profitability metric in 2027. What I mean by that is we would be adjusted EBITDA positive. In other words, not counting depreciation and amortization, which are noncash items, we would be -- we would reach that milestone in 2027, at least, if we can do better than that, then we will getting to GAAP profitability is the ultimate goal and sustaining that. The nice thing about adjusted EBITDA positive when you don't count the non- when you when you move away from the noncash items, then that's a good evidence that you're going to be cash flow positive for the whole year in 2027. So those things, I'll reiterate. So then I have a couple of questions from folks who either read the U.S. patent and trademark office journals on a monthly basis or subscribe to their newsletters. And I have noted a few trademarks that we have had issued. And then also, there is some reporting out of Korea that people have picked up on. So let me just say to that. Internally, we're working on a number of projects, we are always working on a number of projects. And in particular, we have a number of different projects that we're working on that we expect to deploy either late this year or in 2027. These are certainly nonpublic, but they're not necessarily material in and of themselves. Anything that we engage in that is material to the company performance overall, we disclose publicly as we are obligated to do. And I think you get that. If we haven't disclosed something publicly, then it's not in and of itself material to the overall company performance, and so it doesn't require disclosure. We could disclose it. I could talk about it. But if we don't, if we haven't, and we're not it's because we have a reason and that reason almost always is we don't want to disclose information that other companies would use as competitive intelligence and give them a jump on our plans. And that's kind of all I have to say about that at this point. I would say that folks that might have seen something that would allude to us doing something in December. -- we would more than likely be in a position to talk about that and our November or November webinar, right? But I would think -- I would hope that you would see as shareholders that wouldn't make a lot of sense for us to tell competitors about what our plans are going to be. I do, however, applaud those of you that have fair to this out. It just shows you're doing a lot of diligence on the company, and that makes, I think, more informed shareholders are, I think, better shareholders, right? You know what we're doing, then you're more likely than not to continue as shareholders, and I appreciate that. There's a question about are there any acquisition talks happening? So if that's us acquiring other companies, everything I just said would apply. We certainly wouldn't want to talk about it before anything was done an acquisition of a material acquisition would require disclosure. You would hear about it. At the same time, every other person in the public would hear about it. That's the whole idea of fair disclosure regulations, which we religiously adhere to. If you're talking about us being acquired, then not only do we have if it's material, but we have a fiduciary responsibility to take that to the board to review it and in almost all cases, to disclose it to the public. So the answer to that is, therefore, no because we would have already disclosed it. We have a question on the adoption rate for TrueForma. People know that, again, this is something that we regard as competitive intelligence I will just give you -- what I can tell you is that, overall, our Tru forma installed base increases quarter-over-quarter, it has since we launched the product. We continue to make gains in install devices in more and more accounts every quarter. Recently, over the last year or so, as we saw an opportunity in equine and we launched several important assays over the last 1.5 years in equine, we've seen a very significant growth in placements in equine, our recent collaboration with BI and Warner Ingelheim in the United States and in Canada then later has had a very significant impact that organization has done a really nice job of communicating with their customers the benefits of the device. You've seen the clinical data behind it before. And so I will tell you that -- it's certainly the fastest-growing segment and may actually even be -- I'd have to look at the numbers, but I wouldn't be surprised if we're getting to a higher percentage penetration in equine, but that's not because we have more absolute placements in equine, but simply that the denominator in that ratio is much smaller in equine. You have about 20 equine-only accounts in the United States versus 34,000 small animal accounts. The other thing I would say is that -- and if you're on LinkedIn, you might see posts from people, social media post talking about Truforma and how they're using it at their hospital and now another hospital is using it. and then you look at the names and you go, well, that's not even in the United States because we're now selling Truforma in several other countries have been now for a bit. And so that adoption rate is increasing. We'll continue to -- we'll continue, of course, to disclose revenue. I think you can kind of gauge from the fact that TruForma revenue, I think the last reported report that we released, we were up almost 100% or maybe even more year-over-year in Truforma. So that comes from a combination of new indications, but also primarily from new placements. See what else we have here. cash buyback or stock buybacks I get it. It's a nice -- it would be a nice thing to do. We have said before and we continue to stick with this. Our principles haven't changed, and that is that we will consider a stock buyback as a step towards addressing the capital structure once we are cash flow positive. Until then, we're going to retain the capital and use it for continuing to grow the company or just to have it in the -- on the balance sheet so that shareholders see that were solid and so on and so forth. Having said that, it's going to be it's -- it would take a lot of cash to buy back the shares that we would need to. And so that's not something that's going to have a immediate impact that's going to be something that will be done gradually over time once we are cash flow positive for that. So there are a couple of questions on that. Let's see what else. So from here, okay. So oops. So I like this one. So I'm a big sports fan and when I see my favorite teams deal with player injuries such as hamstrings, muscle strain, et cetera. I wonder if Pulsevet could make a positive impact on an athlete recovery and his or her return to action from these types of injuries much quicker than they currently do now. Thank you right about that. My recommendation is that your marketing team make a concerted effort to meet with locker room trainers, a professional sports team, college sports teams, et cetera, to trial a pulsevet as part of their team's treatment regimen. If successful, this could be a huge revenue contributors. So remember, pulse veterinary technologies, which we acquired, was itself spun out of a human company called San Wave. And Sandy Wave then use the money to go and get FDA clearance for their device for diabetic fasciitis, so I guess something that affects the feet of people. I -- when I first joined Zomedica and we acquired Pulsevet Technologies, actually on the same day I joined. I went to a meeting. It was big equine veterinarian meeting. And so I was asking in the veterinarian there about PulseVet tell you about it because I was new and so on. And one in particular said exactly that, right, that his brother in law play for the NFL. I won't say what team. And that whenever he came to visit, he always made the bet give them a shock wave treatment. And then 1 year, he called -- they were in the playoffs, and he called the 1 that to fly out and treat them there. And I said, you do it, it goes No. This is a veterinarian machine, that's a human being. And I remember thinking at the time, boy, you want to make sure you have good data before you start doing anything to a professional athlete that has millions of dollars riding on them all the time. Bottom line is for us to get FDA clearance for the device would be an expenditure that we're not prepared to take at this time. As I mentioned before, we're focused on the animal market. And I will also say that right now, sort of a hot topic in human health, but not FDA regulated health are a number of machines, shockwave machines that companies are -- the companies are marketing with no sort of health claims, just saying it will maybe help you feel good or something like that. And so there are people out there that are doing that. So if you happen to know somebody that's a sportsperson and wants to take a chance on the shock way, there's no shortage of people, primarily chiropractors or physiotherapists that buy the machines and then turn them into a really good income stream for them. Let's see this was about the -- this 1 was about the thing I already talked about. Assay development time line. First, on equine assay. We said we had targeted 4 new assays, but a recent webinar, as we mentioned, only 3 will launch in Q4 due to a delay in materials. Has the fourth assay been pushed in 2027? Or was it canceled. So we haven't canceled any that we have planned to do. And we will be launching 3 -- well, 2 new assays at the upcoming AEP meeting, which is the first week or so, maybe second week of December, we will be launching 3 equine assays. One of them will not be available to ship until January. I believe at the time, I forget exactly when that question was asked, but the fourth, we're also this year going to announce a new variation on a current assay for the small animal market. So that will make up a fourth one, if you will. And then we have several -- we have several fee line assays that we have planned for next year. So regarding a feline pharma partner, you mentioned your science team is in the early evaluation phase with a potential feline partner probably more than I should say my Head of R&D. Well, is smiling right now has said, hey, you shouldn't talk about that stuff. We don't know how it's going to go out. And the reason I mentioned it is simply because we do have -- I think the question was, are there a variety and there are a variety of people that we're talking to. It's sort of the epitome of forward-looking statements to now be on a clock for that. Certainly not material. Anything that would be we would let you know if it wasn't going to harm us from a competitive position. So -- but then you have another question, which is how long is the evaluation take? And then do they count towards a cycle to build them. And I would say, it depends if the evaluation is robust and it's proof of concept to see if the machine can actually pick up the assay, if there's antibodies available and all the rest of that stuff, then that evaluation would count because when you start from scratch to do an assay, those are things that you have to determine right upfront. The other thing I will tell you is that as we intend to be cash flow positive and EBITDA positive for 2027. Part of that is not spending as much on R&D as we had previously spent. So I think you can see that our R&D expense for this year is down from last year. And next year, we expect it to be down further as we've completed several projects and are about ready to go to market. So we could produce Ashley and her team could produce a whole boatload of assays, but each 1 of those is a sizable investment. And so we have to balance the amount of cash we want to spend on that, which is great for growth on an ongoing basis, but would potentially impact our ability to get cash flow positive and profitable. EBITDA positive in the coming year. Then there are some questions that would like to know a lot of information about our confidential partners in human health and animal health. And I'm just not going to be able to answer them. We -- you see the evidence of our work with them as we disclose our financial results. We broke them out into the Development Services segment. We break that down further into OEM manufacturing and engineering, so that you can gain some insight into what we're doing. But as far as who they are and what their plans are and so on and so forth, I really have to keep that confidential, just out of respect for them and also not getting ahead of ourselves, right? Let's see, buyback we did, buyback. Over the last few earnings, the stock hasn't really been going up even when the report is very strong. Do you know why that is or what other factors can help drive the price. It's a really good question. I mean if I was inclined to be flipped, I'd say because fewer people are buying the stock then want to sell it. I mean, that's kind of the definition of it. I know that there's a school of thought that says that the market makers are maybe doing something to keep the price at a certain level. I will say that with new investors comes an opportunity to create a higher demand for the stock than sellers are willing to sell, which means the price goes up. You know that I have spoken often about why we believe that institutional investors are attractive to the company. And the only reason is because they bring higher deeper pockets, if you will, to the marketplace. And if they're trying to acquire shares, a sizable number of shares, 10 million, 20 million, 30 million, 40 million shares that since we are not allowing them or we're not engaging with them to make direct investments in the company, which would have us issuing shares. And we have the ability. We have the ability to issue an unlimited number of shares by our charter. We haven't since I joined in 2021, we have no plans to. But when they come, if they can't get them directly and they really want to invest in the company, then they have to buy it in the open market and then the share price goes up. That's my feeling, which is why we would like to attract them, but you all are familiar with why they might not be here. So until then, we need to keep doing what we're doing, right, increasing revenue. reducing expenses, not only on a percentage of revenue basis, but on an absolute basis, maintaining strong margins and building the product line and the customer base that shows you that we have legs. We have a strong future ahead of us. I mean one of the metrics that I think we'll probably highlight more we highlighted it, but maybe even highlight even more is our consumable revenue. When you see Truforma at the place where it is now, now take that forward 4 quarters, and you can see that it's inevitable growth. Our trade reorders for Pulsevet continuously growing and that consumable revenue is about 70% of our revenue. So I think that's 1 of the metrics that should help do that. Okay. I'm just going to skip over the ones that are asking things have already answered buyback is the same answer that I gave before. Yes, GAAP profitability has never been a target for 2027, now when you have $9 million in D&A. So for Truforma placements accelerate our cartridge orders for analyses are also increasing. -- what percentage of Tru forma revenue now comes from recurring consumables. So yes, cartridge orders per analyzer are increasing as we increase the number of cartridges. And we -- the ones we come out, we bring out, we've done a lot of diligence to make sure that they are, in fact, high-demand items. Equine is a good example of that. Our initial order there because they have such high demand is for testing is coming in very nice. Percentage of Truforma revenue from recurring consumables 100%. We don't charge for the instrument. And so all of our revenue from Trueforma comes at $39 or $42 or $82 per cartridge, right? So the cartridge prices vary. So one after another, those dollars stack up pretty good. But as you can see, that's a boatload of cartridges. I have ever thought about doing more advertising, maybe reaching out to Instagram pages or other social media for some publicity. It's a good idea for sure. AmaCallen, who's Camera shy today and is not on the video right now. Runs our social media outreach. We're on Instagram. We're on Facebook. We're on TikTok. We're on LinkedIn every week. She also runs an influencer program. And that's been picking up as well. So as far as advertising and journals and things like that, we don't do that. I came in talk to the marketing group, hey, how many magazines are we going to be advertising in this month, and they looked at me like, boy, you are old, aren't I? It's a new day. Now we do use, we do purchase what they call paid ads. We use Meta and facebook and those paid ads generate a lot of leads for us. We turn those leads into sales. We constantly run ROI calculations on those. They're constantly refining those. If anyone has a thought about some forum or some channel where it's especially good and reaches people that you think would be really good targets for us, reach out, and we'll take a look at it. But it's generally going to be digital at this point. Which new product launches will contribute most to 2027 revenue and when should investors expect the first commercial sales. Well, I would say that we'll let you know when we launch the products. And I'm not trying to be any kind of way about that. I'm just saying, we don't want to announce what we're launching until we launch it so that we have a little bit of a element of surprise with the splash with the customer base, but also we don't telegraph what we're doing to competitors. We do expect that things that we will launch, will have an impact on 2027 revenue. It's part of where we're expecting our growth from that will take us to the level at which we are EBITDA positive. PIMS update yes, we're in clinics now. We expect to time the full-blown PIMS launch for our existing products and any new products that might need to be PIMS compatible at AAP. Between now and which is the first week of -- or like the December 7 or something like that, the -- and so between now and then, we're in clinics today, people using it to say, yes, working really well. Or hey, I noticed this or this could be whatever. But for the most part, it's it's just working really smoothly. We are gathering up the last of the -- not the last, but as we work down the list of PIMS providers, we're we're getting the last one signed up, but we've always timed this to be something that we would do in January, but we are jumping the gun in December because we can and because we have an opportunity there with with the equine vets that only comes once a year. They're big conferences in December. The status of contract manufacturing is same as it was. We're manufacturing products for Ram in a couple of different product lines, and that's been disclosed publicly. and for another entity as the need arises i.e. development and engineering. I think that's just a continuation of the question about contract manufacturing. So -- and of course, as I mentioned earlier, we report those segments separately and break them down for you. I already talked about the Korean company that maybe maybe disclose things a little prematurely. You mentioned consumables to represent about 70% of revenue. Is that company-wide or pulse out specifically, how fast is recurring consumables revenue growing year-over-year. It's 70% company-wide. True Form is 100% PulseVet. We sell a box for 32,000. We sell the consumables for 2,200 each. An average equine customer will go through 3 to 4 on average small and we'll go to a couple -- if you want to know about how it's growing year-over-year, just read any of our earnings releases, any of them because we always break out capital and consumables, and we always show the year-over-year comparison. So we report by segment, and then we report also by category, capital and consumables. I'd have to look and see what it was. I know what it is for the third quarter just because we're currently looking at that, but we're not disclosing that until November 4. It's a good number, though. Really good number. If share price stays about where it is now, are you and any other officers plan to purchase any more shares after release the third quarter earnings in November '26. So other officers can speak for themselves. There aren't any other officers on this call, so I'll only speak for myself. Yes, I intend to. It just depends on how much we disclose on November 4. But -- so I have a kind of an interest in doing that. Have you considered targeting advertising through Vetigel, Vetfolio and AAP, sponsored educational content and webinars could reach thousands of veterinarians directly generate qualified leads and turn clinical research into more product placements. We used to go through Vetigel. The ROI on that didn't seem to justify continuing. So we don't know about Veolia, but ask me again in the quarter, and I'll have the marketing team take a look at that. AP, I mean, we're intimately involved with AEP. Now as as to webinars and whatnot, we host the Medica University every other week. So I should say, twice a month. Twice a month, we host a webinar. It offers CE credit to the veterinarians or technicians, I guess. But that's for sure who attend. The webinars are presented by key opinion leaders, sometimes people that are on this call, the veterinarians here, Dr. Mars and Dr. Puccio, Dr. Keatan. T.J. have you done one? Yes, I should say, Dr. Barclay as well have all done these webinars. And most of the time, frankly, it's a different -- someone not working for Zomedica. We do those every week. And you're right, they do generate leads for us, which we then turn into sales. So it's a good suggestion, and you should be happy to know that we're we're doing it. How is fourth quarter looking? Good. So far so good. We're 23 days into it, but we're pretty happy on how things are going. Anything new with the CC or Vetigel in terms of more interest uptake. ACC, so a CC products are sold to veterinarians for use in their practice. They're sold they're sold also to retail, right? So some vets use them in their practice more often than not, it's the lounges that they use. So for example, a hospice that's taken care of pets that are approaching end of life. They like to get those because then they can get some they can alleviate the pain that they're going through. I was at a conference maybe a few weeks ago, and that came over and said I have a small and a medium and a large lounge. I need another large. And I said, okay, and we sold them one. It was like $1,400, so sure. And I asked him because I'm -- that's why I'm going to these conferences is to interact more with the vets and I asked him and he said, "Well, I like to do all my treatments while they're on the lounge because it makes them feel better and keep some calm and so on that's great. But the loops, which is most of what we sell for like $329 million, those are primarily sold to pet parents for use at home. And we see that increasing on a quarterly basis. It's a retail market, and that's not one that we're focusing on growing a lot. But -- we like the growth in the CC. We're pretty happy with it, and you'll see that when we release earnings here shortly. With Vetigel. I think you saw what you were here earlier, you saw some of the highlights -- once the physicians start using it, when they have an appropriate need for it, they really like this product because it is really a terrific clinical is an important part of their clinical armor material when they have really good strong bleeding. With new products and PIMS launching what is the biggest obstacle to accelerating growth in 2027 and beyond what measurable milestone would show investors as a Medica's successfully scaling revenue growth. Maintaining high margin, not letting expenses grow. If we can take the same expense structure from we took the expense structure from 2025 and reduced it in 2026 through the first half of the year. And I'm suggesting to you that it's going to continue through the second half of the year. If we take that now same expense structure. And that's even while we've done some things that some of people have asked about, right? So we haven't hesitated to invest where we needed to invest either in development of products or development of a new product or in acquiring inventory for sale in the new year. To the extent that we're doing that, I think you'll see that if we can keep that expense structure flat or even better down into the new year, while revenue grows and margins maintain consistency, that's the formula to get to EBITDA positive, which is what our plan is. With TruPharma analyzers placed at no charge. How long does it typically take for cartridge revenue to recover the cost of each analyzer, is that payback period improving, the payback period is improving as we see additional assays made available that are higher volume assays as those increase, then the payback period reduces. We understand you don't want to do the old IR, but any new venues to tell the story. Yes. So the old IR, even when you're invited and you don't have to pay for your speaking slot, it still requires travel and so on and so forth. So there will be I think there will be opportunities in the new year for us to do a little bit more of that. And so I will. You can -- I think you can see by these calls, these webinars that we have we've been producing takes effort by the part of all the folks. We're happy to do it. I think that informing our existing shareholder base is super important. And so it's not that we're afraid to spend the time. But some of the invitations I get to come and tell a story, it's institutional investors who are not likely to -- I mean, they'll ask questions, they'll be polite, but inside, I know that they're saying, "Okay, well, let's wait until you address certain issues." And the issues aren't with the business, by the way, issues are with our capital structure. Perhaps you can have someone to distribute all these great webinars on a podcast, combining them all incentive potential investors. Yes, I suppose we could do that. [ Am Rich ] you might want to think about that. In the meantime, they're all available at www.zomedica.com, and then you go into some Medical University, and they're all there. every single one of them. And in fact, recently, it used to be that if you didn't attend in person, you didn't get the CE credit, but now we actually are -- and some of them, and as we go forward, we're making it so that people vets can come and watch them well recorded and still get the CE credit. They have to pass the test and all that. But for investors, what we do now is we steer them to A couple of things. One, we steer to these webinars, and we let them know that these webinars are available. And so any -- if you're doing diligence on Zomedica and you have questions about pretty much anything there you go. -- and the only other way. The only way you're going to get more information on that is if you sign a nondisclosure agreement with us. And if you do that, then you're not able to trade the stock until anything that you've heard confidentially becomes public. Could we accelerate growth by signing nationwide agreements with major veterinary hospital change like NVA Vetcore and Mission Pet Health combining free true form a placements, PIMS integration, minimum cartridge commitments could scale recurring revenue across hundreds of clinics -- is this being pursued? Yes. I mean, in a word, yes. As you know, we hired [ Adrian Barcode ] just over a year ago. She was the Head of Corporate accounts, doing exactly that for Amtech it takes a little bigger and maybe a little different situation than we're in. Recently, she scored the agreement with the BMG, Medical Group, which has 2,400 hospitals around the country. And we've got our reps really busy going out and meeting these accounts in their localities and introducing not only our product line, but also the particular programs available only for BMG members. In addition, BMG itself is broken into groups of veterinarians and those groups get together and meet to meet DMG preferred providers, and we're asked to talk about 2 things. One, what do we have that will help them improve the care to their clientele. And two, what do we have that will improve the care to their practice through economics. And we've met with 2 of them so far, very on equine group and in early October and one, just like a week or 2 ago, a small animal group. So we're doing that. Now when you go to the very large groups, we hired Adrian because we felt like we were approaching critical mass if the only product you have is one thing, and they don't -- they don't use very much of it, then they're not going to spend a lot of time talking to you. As we move into the new year, we feel that as of the beginning of the year, when we've rolled out everything that we intend to, we will be at critical mass, and we will be in a position to make a difference to some of these large groups on a significant scale. And so we'll be accelerating that type of activity in 2027. How much of your expected 2027 profitability improvement will come from revenue growth versus reduced R&D and operating expenses consumed can sustain profitability while continuing to invest in rapid expansion. Yes. Yes. I mean I mean for that matter, frankly, we could have arguably -- well, we could have been more -- we could have produced less of an operating loss this year. Had we not spent the money that we spent this year to roll some things out for next year. right? And we made -- we looked at the balance between the desirability of getting to that milestone versus sustaining growth, not just in 2026, but also 2027 and beyond. So we'll continue to seek that balance. We're not cutting R&D. Well, if we were developing a new thing and we were going to spend, say, $1.5 million on it, during the course of 2026. That new thing is done and ready to launch. So we don't need to spend that $1.5 million next year. And if you take that by 2 or 3 different projects, then that sort of adds up. But do you still have that R&D function R&D is busy in any event, and we still will continue to develop new things, potentially not on the same scale that we did in 2026. So I'd hate to think that my comments would be would be taken to say that we're going to cut out R&D because we're not. We do think that between some of those things and some other positions that we eliminated during the course of 2026, which we don't intend to bring back in that sort of preordained when you get the full year benefit of that restructuring in 2027. So we believe we'll have reduced OpEx in 2027. But that alone would not get us to that alone will not get us to EBITDA positive. That requires revenue growth. And that's why we make the investments we do to continue to drive revenue growth. And there's one more that snuck in here. Well, some more. Okay. So I mean there's other questions here are seeking some additional detail, and I think the answer is going to be kind of -- you're probably tired to hear me give the same answer again and again. So let me just move beyond that. Anyone have any questions for our veterinarians who have been so patient as waiting for someone to ask a question about a clinical study. So I'll ask one, did you guys enjoy doing this? Yes, thumbs up -- you got to say yes, right? I mean, sorry, but I know no one really likes sitting there. Dr. Wood, as you all know, it's a delightful speaker. I always enjoy listening to her. She hates us out of her own voice, so she cringes whenever she comes in my office and I'm losing to the video. So I know you didn't really enjoy it that much, but I will thank you very much for doing it. I think the folks certainly appreciate your time and doing this. So thank you for that, and I'll end with 1 more comment here, I'd say the best one for last -- where did it go? Here we go. Keep up the great work. Thank you for such great communication and transparency with your shareholders, looking forward to 2027. I know there's no question in that, but it was a real comment in the Q&A. Again, let me thank you for your participation this afternoon. I appreciate it. As always, if you'd like to go more in depth on this stuff, I'm not going to be able to share material nonpublic information with anyone, but always happy to discuss further. Always get a couple of calls or e-mails and -- and after last week's -- or not last week, but last month's session, we did get a couple of folks that took me up on the offer to get flyers and hand them out to their vets. And I'll just mention that it's not at all out of the question that someone who gets those fires. If they give me their shirt sizes that they also are able to support some fancy Zomedica swag as they're handing out those fires. So with that, thank you very much, team. I really appreciate you guys doing this and for sticking it out. All right. Thanks all. You take care.