EDGAR, SEDAR+. The statements are made as of today 27 February 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 five 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. Let's hear from Larry Heaton, Zomedica's Chief Executive Officer.
Hello, everyone, and welcome. I'm Larry Heaton, Chief Executive Officer of Zomedica. Thanks for joining us for another Fourth Friday at Four webinar. Whether you're a shareholder, a veterinary professional, a partner, or simply someone interested in how innovation is shaping animal health and improving the quality of life of the animals we love, we appreciate you spending this time with us. Today's session is centered on research and development, the engine behind how our portfolio grows, improves, and adapts to the evolving needs of veterinary medicine. At Zomedica, R&D is not just about creating new products. It's about refining existing technologies, integrating new capabilities, and ensuring that every advancement we bring forward is clinically relevant, reliable, and economically meaningful for practices and a further step on our path to profitability.
Over the past several years, our strategy has combined thoughtful acquisitions with disciplined internal development. This allows us to retain deep subject matter expertise, apply it across multiple product lines, and continue raising the quality and performance standards our customers expect. You'll hear today how our development processes, quality systems, and talented experts help guide decisions balancing customer need, clinical impact, and long-term business sustainability. We'll also give you a closer look at the people and facilities behind this work because innovation ultimately comes from teams of people who are passionate about solving real problems for veterinarians and the animals they serve. From there, we'll move into updates across several of our key platforms, including TRUFORMA, VetGuardian, and TRUVIEW, highlighting not only technological progress, but the practical outcomes these efforts are producing in clinics.
To begin, I'll hand it over to our Vice President of Research and Development, Dr. Ashley Wood, who will provide a brief overview and then take you deeper into our R&D strategy and portfolio evolution. With that, let's get started.
Thank you, Larry. I've been with Zomedica for over six years, during which time I've had the opportunity to lead a wide range of R&D initiatives. Today, I'm excited to share more about our R&D strategy, what we've accomplished, and how we're shaping our portfolio going forward. At Zomedica, we have grown our product portfolio through acquisition, and from there we have followed one of two paths. For products like PulseVet and Assisi that were already commercialized, we continue directly to market. For others, such as TRUVIEW, we conducted deeper technical evaluations and determined that additional internal development was needed to fully meet customer expectations. Since 2023, you can see that internal development has become an increasing part of our strategy. That is shown here in green.
This includes enhancements to the TRUVIEW microscope, advancements to the VetGuardian platform, and the internal development of new TRUFORMA assays following the acquisition of Qorvo Biotechnologies. A key driver of our ability to scale R&D quickly and effectively is our approach to retaining subject matter experts from each acquisition. This continuity has strengthened our R&D program and allowed us to build a highly capable team of scientists and engineers with broad transferable expertise. Their knowledge not only supports the technologies they originally worked on, but it also contributes across our entire product portfolio. For example, the lead software engineer who joined Zomedica through the SMP acquisition has continued to advance the VetGuardian product line and has also played an important role in software development for TRUVIEW.
This strategy, retaining key expertise and applying it across product lines, enables us to run a highly efficient and productive R&D organization. Another key element of ensuring successful R&D outcomes is our commitment to a structured product development process. We use a phase-gate approach that moves from discovery and feasibility through design, testing, launch preparation, and finally commercial launch. During the feasibility phase, we define user needs, and those needs guide every step of design and testing to ensure we are consistently progressing towards a high-quality product that truly meets customer expectations. In October 2025, we achieved ISO 13485 certification. This is the internationally recognized standard for quality management systems in the design and manufacturing of medical devices. Following ISO 13485 ensures our development work is well documented, high quality, and closely aligned with our quality and manufacturing teams.
By doing development the right way, we minimize costly redesigns and reduce risks that could impact manufacturing or product performance. By centering development around clearly defined user needs and maintaining traceability from those needs through every stage of the process, we have built an R&D program focused on market demand and revenue potential. This disciplined approach is essential in supporting Zomedica's pathway to profitability. Now I'd like to take you on a brief tour of our R&D space in the Zomedica Plymouth facility and introduce you to some of the members of our team. Welcome to the research and development laboratory at our Zomedica Plymouth facility. This is the center of innovation behind our TRUFORMA diagnostic platform. This is where we translate scientific insight into commercially viable assays that strengthen our competitive position in veterinary diagnostics.
Our development philosophy is centered on rigor, speed, and market relevance. We establish clear assay performance targets early in the development process, then apply a disciplined design and testing framework to ensure we meet customer needs with consistency and reliability. Each prototype undergoes both in-house verification and field validation studies, giving us confidence in performance before products move into manufacturing and commercialization. Our R&D team includes highly skilled scientists and engineers with extensive experience with Bulk Acoustic Wave technology. Many of these people have been involved since the technology's very early stages. Their expertise accelerates development timelines, reduces risk, and supports the scalability of the TRUFORMA product line. I'd like to introduce you to Ian Harmon. He's our Senior Director of R&D.
I've been working with the TRUFORMA technology for over 20 years now. I was one of the first employees when we were a startup, and I've been able to grow and watch the technology develop and have an integral part in improving and developing that technology, and I can continue to do that at Zomedica. One of the things I enjoy about working at Zomedica is being able to work with the marketing team, the commercial team, as well as the professional service veterinarians to understand what the market needs and how we can make tests better for them and improve their lives and workflow.
This is Dr. Zach Butz . He is an R&D manager here at Zomedica.
Hi, I'm Dr. Butz. Been working with TRUFORMA since 2020, initially with the Qorvo Biotechnologies and now with Zomedica. I work in the assay improvement group, in which I'm working closely with manufacturing, QC, and customer service to rapidly address customer concerns.
At our Plymouth facility, we also conduct R&D for the VetGuardian product line. This advanced touchless monitoring platform represents a new frontier in veterinary diagnostics, and our team is actively enhancing performance, developing new features, and exploring ways to broaden its clinical applications. Our VetGuardian R&D is led by Ken Balow, who joined Zomedica through the SMP acquisition. Ken?
Hi, my name is Ken Balow. I've been with Zomedica for a little over two years now since the acquisition. Previous to that, I was working on the product for another couple of years, as well. One of the many things I like about working with Zomedica is the access to engineers and scientists that we have throughout our facilities. We did not have access to any of that before, including DVMs. That's made integrating new products and features a lot faster. I also like having access to our Georgia facility, where we get to manufacture in a world-class facility.
At Zomedica, our R&D mission is to create products that deliver commercial value. This is brought to life when prototypes advance into manufacturing. We are proud of the robust manufacturing capabilities in our Plymouth facility, and our R&D team works closely with operations to ensure quality, drive cost efficiencies, and advance Zomedica's pathway to profitability. We hope this behind-the-scenes look demonstrates the strength of our team, the sophistication of our processes, and the commitment we bring to developing innovative products for the veterinary community. Next, let's take a look at some of the internal development work we've completed over the past few years. For the TRUFORMA platform, we've continued to grow the assay menu every year since launch, and today we offer 18 assays across three species.
The acquisition of Qorvo Biotechnologies has been a major turning point, giving us control over the full development process, enabling us to accelerate timelines, and significantly lowering the cost to bring each new assay to market. More recently, we expanded the platform into the equine space, where we're able to leverage the strength and reputation of our PulseVet brand to introduce TRUFORMA to a broader customer base. This expansion not only enhances the value of the TRUFORMA platform but also strengthens our overall presence in equine veterinary medicine. With that background, I'll now turn things over to Ian Harmon, who will walk you through how we harness the unique capabilities of the TRUFORMA technology to deliver meaningful solutions that address real customer needs.
Hello, everyone. I'm here to talk to you about TRUFORMA innovation, and I wanna start with the platform itself that I helped to develop. One of the most innovative things about the platform is the cartridge itself. We have a main cartridge body where the user simply adds sample, sticks it into the instrument, and gets a result. On the cartridge, we have a wheel, like a reagent wheel of carousels, and this is very innovative, and it's something unique to TRUFORMA, and it allows us to do things that a lot of other point-of-care technologies can't. That's what's really enabled a lot of those advancements. The real first assay that kinda differentiated us was the Feline TSH assay.
We knew that hyperthyroidism is a problem in cats, and so we wanted to develop a TSH assay that is more sensitive than what's on the market. The existing standard of care, IMMULITE, is not sensitive enough, so you can't differentiate between hyperthyroid and normal cats. When the vet gets the results back and it says less than 0.03, they don't know if that's a low normal or if it's in fact hyperthyroidism. We were able to drive the sensitivity low enough that we're able to differentiate from normal cats and hyperthyroidism. We worked with key opinion leaders, and one of them, Mark Peterson, who's really, probably one of the biggest authorities out there on feline hyperthyroidism, published a paper that showed that our clinical sensitivity was significantly better than the Feline TSH on the IMMULITE.
It was also better than if you used Total T4 and TSH together from the IMMULITE. By developing a test that was more sensitive than what is currently on the market, we were able to create, you know, a tool that gives vets a fairly definitive answer on thyroid, feline hyperthyroidism. That was really the first innovative things that we did, and then following on into the equine space, we initially developed an insulin test, and we got good feedback on it. One of the complaints we got is that it didn't go high enough. We had the dynamic range capped out at 200 microunits per ml. Although, you know, this is very high, it's abnormal, clinicians really want to understand is that horse, you know, is it 201, or is it 1,001?
They asked us to develop a, you know, off-cartridge dilution protocol. This is pretty standard stuff. Like, if you send samples to Cornell, they'll run this for you. What we decided to do, because we have the reagent reagent wheel, what we did is we used a well on the cartridge to do the dilution. Now the user doesn't have to do anything offline. They just add the sample as they normally do. They stick the cartridge into the instrument. Then it asks them, "Do you wanna run the standard assay that goes up to 400, or do you wanna run the dilution protocol that goes up to 1,500?" If they select the dilution protocol, it actually runs a slightly different test, and it interpolates the values off a different calibration curve.
It'll do that on-cartridge dilution, and then that'll allow people to get values up to 1,500. This is a great tool for to vets to understand, you know, how bad is the insulin dysregulation. For ACTH, you know, we launched an initial ACTH assay, and then as we continued to understand more about ACTH and explore some discordance we were seeing in the field, especially seasonal discordance, 'cause ACTH molecule, you know, varies based on season, we discovered that the predicate test is recognizing both ACTH and then in the body, ACTH kinda gets cut in half and to two different molecules, alpha-MSH and CLIP. The predicate uses antibodies that recognize both, so it's recognizing both ACTH and CLIP. The more we dug into it, the more we realized how important this CLIP result was.
To better match the predicate and clinical guidelines, we developed a test that measures both full-length ACTH and CLIP independently, and then it adds those 2 numbers together to give the clinician something that matches the predicate that they're used to seeing. This really accomplishes two things. One, it gives us results that match all the current guidelines and cutoff ranges, you know, that the veterinarians are used to seeing. Also this gives the vet an extra piece of information which they may not know what to do with yet, but it's really putting us on the forefront for understanding this disease in horses called PPID. I think in the future through work with key opinion leaders, you know, CLIP will evolve and become its own sort of biomarker with reference ranges and stuff like that.
I think in a couple years it'll be giving the clinicians a much larger picture of what's going on with that animal. Going forward, we're looking to expand our menu and give vets additional tools, and we're hoping to continue to be able to innovate and bring tools that vets don't currently have to improve animal health.
We introduced the VetGuardian in 2023, shortly after acquiring SMP. Late last year, we advanced the product line with the release of the VETGuardian PLUS . Ken Balow will now share more about the enhancements delivered through our internal development efforts.
Hey, everybody. I'm here to talk about the VetGuardian and the new VETGuardian PLUS that we just released. The biggest change you'll see on the VETGuardian PLUS is the addition of the screen on the back. We added the screen based on feedback we were hearing from the clinics, to further improve and streamline the process when using the VetGuardian. Not only did we make changes to the outside, the biggest changes are actually on the inside of the device. We completely redesigned our radar from the ground up to further improve our signal quality, along with adding and supporting future features we want in the field going forward.
Not only did we make improvements to the outside and the inside of the device, we have a lot of new exciting features coming out this year that are targeted specifically for releasing in the cloud. A lot of those new features are actually gonna be AI-based. Stay tuned for a lot of exciting new VetGuardian features that we have coming up. As Zomedica continues to be the leader in non-contact-based vital sign monitoring.
When we acquired the TRUVIEW technology, we immediately recognized its unique ability to address one of the biggest challenges with point-of-care digital microscopy, the quality of slide preparation. We also saw the original REVO² form factor that required a computer connection and external reagents was not ideal for very busy veterinary clinics due to the larger footprint and added complexity. Before launch, we undertook a development effort to integrate a built-in screen and to relocate reagents and consumable storage inside the device, creating a more streamlined, clinic-friendly solution. The TRUFORMA and VetGuardian development work that we've talked about up to this point reflects the R&D conducted in our Plymouth facility. Our TRUVIEW program, however, is driven out of our Roswell site under the leadership of Bill Campbell and Negin Ghassemian.
Bill and Negin will now walk through the additional enhancements that we have made and show you how the TRUVIEW platform is designed to solve real-world problems for our veterinary customers.
Over the past few years, TRUVIEW has gone through some of the most significant transformations since Zomedica acquired Revo Squared . I'm extremely proud of how far the team has come. When Zomedica acquired the technology, we provided a strong, innovative concept. Since then, the device has fully matured into an integrated clinical device that feels modern and truly aligned with the way veterinarians work in the clinic today.
The biggest transformation that I've seen is the on-screen experience for the customer. When we came here, it was bluntly kind of kludgy. We've spent the last three years watching customers work with the system, looking where points of friction were, and removing those points of friction every way we could. The button they expect to push all of a sudden is available to them, and there's no extraneous things to do with the screen. It's very, very smooth. It's a much more workflow-friendly process than probably any system in veterinary medicine makes. We've produced a way where you really can just put a drop of blood in the slide and it come back to final results, either from an AI interpretation or even a pathologist interpretation. That's true of both hematology and cytology.
Not only did we enhance the on-screen experience and the device workflow, but our newest, most exceptional progress has been made with hematology AI. One of the most challenging domains in veterinary medicine is making a blood smear and then being able to interpret a blood smear. We're seeing much stronger performance among different breeds with different sample types, including atypical or immature cells, more consistent differentials, and much more reliable red blood cell data and morphology detection. When we look at the validation data, not only did we collect hundreds of thousands of samples that we were able to validate on, but we were able to do it in a real-life situation with the devices that were actually in veterinary clinics being used by veterinary professionals on a day-to-day basis.
What really matters to this, what got us started in this in the first place, is the real-world impact of this. What we've learned over the years, and particularly perfected in the last few years, is that technicians in veterinary hospitals and even the doctors themselves hate making blood slides because they're difficult, the outcome is unreliable, and we've taken all of that out of it. Every single slide is perfect. Every single slide is stained perfectly. It's really changed their desire to do a blood smear, which everyone knows is best medicine. Best medicine, best practices is make a blood smear on every time that you have a patient whose blood results are out of whack when it comes to the blood analyzers. That's something we've done and really changed the way people perceive blood smears in the clinic.
In summary, TRUVIEW has progressed amazingly well since it's been here. It is elegant. It works every single time. It's virtually what the market was asking for. It's the only system in the market that actually prepares the slide, stains the slide, scans it, digitizes everything on it, sends it to a pathologist or AI at your discretion, and give you answers with almost no human interaction. We're very proud of what it is now.
We'd like to introduce a few people that have helped make this project possible and are members of our TRUVIEW team. Rob Varn and Michael Newton, Nathan Chung, and Malcolm Walker.
They've helped.
Thank you for joining us today. We appreciate your time and engagement as we showcased the work underway across our R&D organization. As you've seen, our approach is grounded in efficient, strategic product development, focusing our resources on innovations that truly matter to our customers and deliver meaningful clinical and operational value. By aligning our efforts with clear revenue opportunities and long-term profitability, we ensure that every project advances both our mission and the financial health of the company. This disciplined mindset not only accelerates high-quality product launches but also strengthens our ability to grow sustainably. Thank you again for being part of the conversation and for your continued support as we build a stronger, more innovative, and more profitable Zomedica.
We'll now move into the live Q&A section. If you have a question, please drop it into the chat box now. We're here to help. If you have questions later, you can contact us with the contact information shown on your screen.
Thanks to all for attending today's webinar. We appreciate your support of Zomedica and look forward to answering some questions. Let's just jump right in there. First one. Well, first actually it's not a question, but I will go ahead and answer it. We will be releasing earnings on March 16th at the close of the market. Our next fourth Friday webinar will be on 27 March . We expect to issue earnings with a, you know, pretty comprehensive press release on the 16th at the end of the day. Of course, our 10-K annual report will also be issued that day. You'll have lots and lots of data, and then you'll have 11 days to prep your questions for our fourth Friday webinar.
I imagine that there may be some questions, because we're looking forward, as I've mentioned before, to those to those releases. All right, second question. Ashley, this one's for you. What is your background?
I did my PhD at Johns Hopkins University in molecular biology and genetics, and then I did a post-doctoral fellowship at the Northwestern Feinberg School of Medicine. There I was using imaging, so various microscopy techniques to look at genome organization during cell differentiation. At that point I decided to leave academia, and I went into industry, and I was really excited to start focusing on product development. At first I started in Next-Generation Sequencing, so doing assay development, translating complex technologies into commercially viable products. At that point I came to Zomedica, and I've been here for the last six years and, you know, at this point leading our R&D efforts.
Thank you, Dr. Wood. I appreciate it. I know we call you Ashley around here, but you do have, you do have the pedigree. You were here when I got here, and I appreciate you being here today. Anyway, thanks. All right, let's dive into a little different ones. First one is, how are Q1 earnings shaping up? Mike, you wanna take that one?
Yeah, sure, Larry. Q1, we're off to a good start this year. As we've talked about, we're excited to release full year and fourth quarter earnings, as Larry mentioned on 16 March . We look forward to speaking with you about the year that completed. We're equally excited at the way this year started out and is shaken out, and look forward to continuing to communicate positive momentum for the company.
You know, I think, you know, some of the things that we've talked about in the past or the trends that we see and the seasonality, you know, not just of the revenue, but also of different aspects of it, right? Fourth quarter is generally the highest revenue of the year. As I mentioned before, we expect that to be the case. First quarter then comes back from that a little bit, and we would expect that to continue. Nothing to do with how the quarter's shaping up, but just that's our typical format. We also see that the fourth quarter generally has the lowest cash burn of the year, which goes along with high revenues and so on.
The first quarter then would have the highest cash burn of the year, generally speaking. Just because the revenue is a little bit lower, we're taking in a little bit less revenue, but also because we have certain expenses that we pay during the first quarter that are accrued during the course of the year. We expect all of that to continue. We'll comment more on the next on the next call, but there's nothing, you know, there'd be nothing amiss in all of that. Okay. The share price seems stagnant and hasn't shown any major improvements lately. Is there anything forthcoming that could move the share price higher besides the Q4 earnings report? You know, the share price is a function of really you all on the call and the market itself.
We will continue to report the developments as they occur. We expect to continue to have increasing revenue, really good margins, reduced OpEx as a percentage of revenue and actually, in whole dollar terms. We have announced some collaborations recently. We expect, you know, as you might imagine, we continue to explore those, and we'll announce those as they occur. The impact on the share price, I sort of have to leave to y'all to determine at the time whether or not you think that that's going to be impactful. I know that's a lot of words and didn't really give you a good answer, but it's tough on that one because it's not something that's directly under our control. When will human health information be added to the website? Good question.
We talked about that, the last, about a month ago. We're working on actually updating the website in a lot of different areas. This new update, which we expect probably by the time we do our next fourth Friday, it's a first quarter initiative. We expect that that will, you know, will have places to put different parts on the website. We'll see that probably by the next fourth Friday. I'll defer to w ell, I'll leave a little bit of wiggle room there because, you know, it's not so much how quickly you get it done, but how well, and that's gonna be our priority there. Any updates on potentially going to the Texas Stock Exchange? Mike, I know you looked into that. You wanna update on that?
Sure. similar to, as we talked about with Nasdaq and NYSE, both Nasdaq and NYSE American, there are listing requirements that predominantly right now. However, with the Texas Stock Exchange, Larry, we're actually whereas with Nasdaq and NYSE, our stock price is the only thing holding us back from being listed on those. There are some stiffer requirements on the Texas Exchange. I won't go into a ton of detail on all of them, but some of the primary criteria involve generation of pre-tax income, which we're not there yet as a company over a couple year period. $500 million market cap is one of the thresholds. There are barriers to us listing Zomedica on the Texas Exchange.
In other words, it'll be a super great day when we are able to get listed on that exchange.
It will be wonderful.
All right.
For all involved here.
All right. We'll work towards that. Is there any potential to break even near the end of the 2026 fiscal year? Yes, there is. Any updates on the new animal or human health collaborations that you're working on? Let me fold that in. There's some other questions here. I'll answer that along with the next one, which is given the recent ISO 13485 certification, the contract manufacturing agreement with RAHM to serve the human health sector, when can we expect a concrete timeline for transitioning the TRUFORMA or BAW technology into human medicine? Additionally, does Zomedica plan to enter this market as a technology partner for others, or will pursue its own independent FDA approvals for human diagnostics? Okay. First of all, good for noting the RAHM agreement and that venture into human health.
We have really good expectations of that business. Their original product intended for like jails and prisons is going well. Our understanding is that they've now recently launched their next product, which is intended for older people. That's good. With respect to entering the human market with TRUFORMA technology, first of all, we will enter that market, or to the extent we enter that market, let me say that that way, it would be as a technology partner for others as opposed to us commercializing the technology. I will remind our shareholders that we do own the TRUFORMA technology and a cartridge that received FDA emergency use authorization for the diagnosis of COVID. Of course, we've put that on the shelf because there's a lot of other ways that you can get your COVID diagnosed .
For us to pursue a human launch of that product would require us to do some additional work to move from emergency use authorization to full approval. That's a significant investment in the part of the regulatory submission, clinical product. Now that what the market was expecting was AI from the jump, as a result, we really, and I, and we've shared this on previous calls. We really did not do a full launch of that product. Instead, we gathered the data because we wanted to go out into the marketplace and make a splash with it with the AI in place. It is in place now. We're doing the full launch, done it early January. Early results are good. We'll talk about it more at the next at the next call a month from now.
As far as Moichor is concerned, you know, Moichor is a reference lab first and a telepathology platform second. They have a captive customer group of all the customers that send blood and tissue into them for their reference lab. And they have their own sales force to continue to get new customers. It's really an additive scenario for us. Our own sales force is putting these out there. We have already interest in international markets. To bring this into new to new countries, which frankly we expected to do later than now, but now is good too. Everything they do will be additive to what we are doing ourselves and then that would allow us to perform over what our current operating plan is asking us to do.
I think that answered the question also, how many clinics use TRUVIEW? In other words, not saying at this point. Actually, the recent patent for crowded sensor. The recent patent for multiplex detection of multiple biomarkers, could this have significance on the human side if we went in that direction?
That patent is based around the idea of adding a crowding agent to reduce the kinetics of binding to our biosensor. This is useful anytime you have if you're trying to quantify a analyte that's at a very high concentration in a sample. This could be useful in animal health, could be useful in human health. It's any time you're trying to quantify something that's at a very high level.
Okay. Glad you took that one. Which product is experiencing the most growth? That's a good question. I would probably say VetGuardian. Some specific TruView, Truforma assays, I think, really have taken off, partly because, you know, these equine vets never had anything before. They could use stall side or even in their own clinic. They had to send them out. In terms of maybe unit growth, probably the Truforma assays. In terms of revenue growth, that's gonna be VetGuardian. This VetGuardian system has really caught the attention of the vet community. We receive leads on, you know, a daily basis, unsolicited to the website. Not just from here in the United States, but really all over the world.
I'm not sure how some of these markets even have heard about it. You know, we felt like the product could be better, and it is better now. I think I think we're gonna see in this year with the VETGuardian PLUS . You know, we de-emphasized it a bit with the sales force last year, toward the end of the year 'cause we knew we were coming out with a new one. We knew we were gonna be upgrading them in the field. We felt like we were, you know, doing pretty well from a revenue standpoint, and we're focusing on this year. I would put those up there. All of them, I mean, we're expecting good growth across the board.
A question about the product lines, breadth plans to expand to larger audiences, thereby growing total available market and other market metrics. Not sure exactly what the question is. I will say that we are all about expanding the indications for our products. You know, for example, when we added asthma and now more recently sole depth growth to the indications for PulseVet, that opened up, you know, the use of PulseVet to a certain kind of equine veterinarian that might not have been focused so much before on rehab, but everyone focuses on sole depth. It's a major issue for horses and also for asthma, which is treated not just by. It's treated also by the sort of the recreational horse vets that are out in the rural areas, and so on.
We expect to expand them within animals. Humans, as we work with, we work with partners that obviously we've talked about. Also, you know, some of our products, for example, the TRUVIEW microscope, this is our product. You saw Bill and Negin, they developed this product. Once we really show its track record in animal health, we would expect that that also could go into human health. Don't have anything right now on the board for it. I don't wanna create an impression that's not correct, but that's certainly in our, you know, in our forward-looking thinking. Very much similar to when we acquired Qorvo.
We said a number of times on calls that we had preserved the human technology, and we expected to monetize that product at a future point, and we're seeing that now. Is there any plan to have share buybacks? We certainly expect to get to cash flow positive before we would consider any share buybacks. Let's leave it at that. Based on current run rate and business outlook, when do you believe we can become profitable? We currently are planning on profitability in 2027, although in response to the earlier question, I mentioned that that might come toward the end of this year. You mentioned increasing revenue, strong margins and OpEx down even in absolute dollars.
Can you share what you expect for Q4 revenue and gross margin and whether operating loss is narrowing year-over-year? We expect for Q4 revenue to be the highest revenue of last year. We've mentioned that several times. We expect gross margins to stay at the historic levels. If those two things are true, then operating loss, 2025 was a really eventful year, as all of you who rode the, you know, rode this, with us, from March of last year, through the end of the year. With the impairment charges that we took, in March of last year that were driven by the delisting and the abrupt stock price drop, operating loss this year will be, or for 2025, will be higher than the previous year due to impairment.
Now, if you take that impairment out, if you disregard the impairment, then you and everything else I said that you heard was the case, then you would expect operating loss, adjusted operating loss to have been down. We would very much expect that to be the case for 2026 for sure. That comparison to 2026, we would expect that to be an improvement, a narrowing of loss, not just from the impairment-loaded loss of 25, but also the adjusted loss without impairment. When you reference human health, is the strategy purely contract manufacturing and services like RAHM, or do you plan to pursue FDA clearance for any proprietary platform? What's the realistic 12 to 12-month revenue expectation from human-related work?
We certainly will take advantage of contract manufacturing services like RAHM and others. As I mentioned earlier, getting FDA approval requires a substantial amount of investment in both the regulatory workup, but also the clinical data that needs to be collected ahead of time. We are focused on achieving profitability first and foremost. As I mentioned a minute ago or a couple of minutes ago with respect to TRUVIEW, you know, that might be, you know, that might be a product that we do take down that road, 'cause it's a completely developed product at this point, but it would not be until we are profitable and certainly cash flow positive. On human health, should investors view this primarily as contract manufacturing services or it's the same question. Okay.
The same question. You know, I think, when you look at the company, I think there's different ways to look at it. I think any of our shareholders or investors will be or should be happy that in addition to growing our core business, which especially our core consumables business, which is up, that any additional revenue that we can pull in, revenue that will help achieve a profitability, cash flow positive sooner, will help, you know, improve margins through extra volume. I think that people would find that an advantage. Again, it's really a market decision in terms of how much they value that. Can you give an update on PIMS partner progress? Are you still looking at getting the largest signed up first?
Yeah, the answer to that's for sure. We expect to be PIMS capable as early as June of this year. That will be with the, you know, with the largest. We're getting synced up with the larger ones first and then adding the smaller ones as we go through. That timeframe for, you know, our initial group of products is in the June to sort of September timeframe. That's on track, very much on track. Will you still be in a blackout period after Q4 earnings is released? If not, do you plan on still buying shares? This question is for me. The answer is, I mean, at this point, we're making sure to tell everything we know when we release the earnings.
Yeah, I should not be in a blackout period at that point, and I do plan on still buying shares on a personal basis. For the TRUFORMA human partner strategy, what would be the trigger to pursue a human partnership? Do you already have active discussions? What timeline would a first pilot partnership realistically take? I would just basically steer you to our last release and our next release. When you see development services, revenue, you'll know that we've been working with a partner. Other than that, you know, I don't wanna create false expectation, or I don't wanna create wrong impressions. Until an agreement is executed, our expectation is that we'll continue to work towards it.
Once it's executed, we'll announce it to the extent that it's material. I need to sort of beg off on some of the specifics in that question. Any potential merger or buyout? We're not looking to merge with companies that we would otherwise want to acquire, and we're not looking to buy out any other company. No, I think that's probably a different kind of a question. You know, we have a fiduciary responsibility. If we had something like that, you know, you would hear about it. You know, since you're not hearing about it, then the answer to that is no. When you say break even near the end of 2026, do you mean EBITDA break even, operating income break even, or net income break even, or what annual revenue run rate is required to get there?
We've talked before about, you know, getting to a cash flow break even at a run rate in the, you know, in the 50s, $55 million in revenue. That's generally speaking, when I've been talking about getting to cash flow, we're talking about getting to profitability sort of toward the end of this year. I think the question was in the context of breakeven from a cash flow standpoint. With us, cash flow breakeven and adjusted EBITDA are pretty similar in terms of time frame. Since we might be at breakeven at the end of 2026, where do you see the share price at end of 2026? Your estimate would be just as relevant as mine might be. I'll leave that to you to answer that question for yourself.
Hopefully, you know, there's some self-fulfilling prophecy out there where you can make that come through by buying a bunch of shares. I'll do my part. To the extent that we're all in the same boat, it'd be good if we work together on that. Average annual recurring revenue per TRUVIEW system, and how quickly does a new placement ramp to that level? The way that we are commercializing TRUVIEW, is we are placing the device without a capital requirement upfront. We are holding. The customer signs a minimum of a one-year agreement. The customer commits to spending a minimum of $750 per month. We charge then for the supplies that we provide them on a per slide basis. We also charge them for each AI report that is generated. We charge them for each pathologist report that is generated.
We expect that the revenue on a monthly basis, if they access the average number of these reports and so on, we expect the revenue to be significantly higher than $750 a month. As we launch it, we're making it a relatively low level. Interestingly, Well, just FYI, the ones that we put out to gain access to images produced on our scope, those were at a sort of a $500 monthly subscription. We've increased that. Who are our main top competitors, and how are we positioned compared to the top three competitors? All right. For which product, right? For PulseVet, our main competitors would be drugs, Rimadyl, for example, for OA, would be surgery, for example, for cruciate tears, laser, maybe. In each case, the PulseVet shockwave technology is superior to any of those.
Our specific kind of shockwave, which is electrohydraulic, is superior to piezoelectric. There are a couple of small companies out there pitching that. From a PulseVet standpoint, we really stand at the top in terms of what the therapy can do. There are a lot more lasers out there than shockwave in the small animal market. In the equine market, we have really good penetration of the equine vet market, and we're far better than a laser in the equine vet market for our indications. In the small animal market, for many years, shockwave treatment would require that the pet would be sedated, which is not a really good thing. There wasn't much penetration, like hardly any, until we took it.
The Extrode accessory allows for it to be used without sedation, and that's one of the big reasons why we acquired it. We've been making really good inroads. In terms of number of lasers out there, they're far more than us. On the other hand, we get recurring revenue, and they do not. That's the shockwave. From the VetGuardian standpoint, there is no competition. Competition is a technician sitting there, and taking manual reads of temperature, pulse, and respiration every 15 minutes or, you know, five minutes or 30 minutes, depending upon the protocol and where the pet is in the continuum of care. There is no other competition to VetGuardian. With respect to VETIGEL, there are a number of other products out there. None of them are as fast-acting as VETIGEL, which can stop bleeding within five seconds.
I honestly don't know the market share. I mean, VETIGEL is really new into the market for us, you know, we're definitely not a leader in market share for that product. TRUVIEW microscope, there are two other competitors. One is Zoetis has an Imagyst device, which does not automatically prepare the slides, but it does give AI reports and gives access, I think, to a pathologist as well. They've been out there for a bit, they have a bigger share than we do. The other product that's out there is a product called a Motic scope. It's a scope that's made in China. Antech, IDEXX, and Moichor, until very recently, buy those scopes from that Chinese manufacturer and then turn around and sell them or place them however they do it into the marketplace here.
Those scopes do not automatically prepare the slides. They have the market today. TRUFORMA, you know, IDEXX, Antech, Zoetis Abaxis. These are all diagnostic devices. Point of care, at the point of care. Reference labs really are our competition with most of the TRUFORMA assays because you can only get the cartridges that we offer, the assays, the tests that we provide, generally, the only other way you can get them is by sending the product, sending the blood out to a reference lab. That's not completely the case. There is some overlap, as some of the manufacturers, you know, when we launched our product and now it was us or the reference lab, you know, they suddenly had the ability to put it on their machine, which is why we don't give a lot of notice now about, which assays we're launching.
Let's see. All right. Jeff, I'm gonna, you know, you got a lot of questions here, and we're coming up on time. I expect you're building a model. I respect that. I would suggest that you sort of reach out to Mike or I, and we can talk to you individually. We won't give you any more information individually than I'm giving to everybody right now. I'm gonna kind of skip through some of your remaining questions to get to some of the other folks. Martin asks, "Can you explain what Moichor adds in terms of AI engine? I thought TRUVIEW had its own AI. Do we need their enhancements, and if so, does this limit who else we might partner with?" Certainly has no impact on limiting who we partner with.
In fact, it's good for us if Moichor, which does a lot of exotic animal testing, to the extent that they can, using our scope, and they wanna do more and more AI, we would have access to that same technology. It's a technology-sharing agreement as well. It's a good thing overall. It doesn't limit us in any way. If the US enters into a potential war with Iran, do you see potential sales decline?" I think it would be terrible if we entered a war with anyone, including Iran, because it's a war. I don't think anybody thinks that would be a good thing. My son is an officer in the Marine Corps Infantry, and I certainly, you know, feel a certain kind of way about that stuff.
On the other hand, I don't think it would affect our sales. We don't sell anything into Iran. We did get a lead today from Pakistan, but I don't know. I don't think that has anything to do with what our sales would be. Let's see. Since we may break even at the end of 2026, could we cash flow break even," sorry, "could we possibly relist with the NYSE before the end of 2026?" The NYSE has certain criteria for delisting you, which we all learned in March of this past year. They have other criteria for listing you. Mike, you wanna share those criteria?
Yeah. As we've talked about before, there are a number of them around market cap, trading volume, et cetera. The biggest hindrance is the stock price. Listing on the NYSE American Exchange, where we were formerly listed, involves having a minimum bid of $2 on the stock price. Listing on the NYSE big exchange has a $4 minimum bid price, Larry Heaton. Again, as you play it forward, all other metrics are met, and criteria are met for listing on those exchanges short of the minimum bid price required.
Thank you. Couple of these. Let's see, to track that narrowing losses planned in 2026, what are the key KPIs, revenue growth, gross margin, OpEx reduction? I think each of those is exactly what we're looking at. Will 2026 show positive operating leverage? Yes, absolutely. That's even if revenue grows modestly, it will show it whether revenue grows modestly or revenue grows significantly, which, you know, we know where we w ell, I think we would all hope that we're on the, this latter part of that. A lot of questions that you're trying to quantify us, we're just gonna wait for earnings. That's one of the dangers here of doing this once a month. Will you still be locked out from buying shares after you report a few weeks?
As I mentioned earlier, I do not expect to be. Something could come up, but I don't expect to be. Would I still buy at these levels? Absolutely. Absolutely. What point will you go back to an earnings call? I think if we saw attendance here start to drop off or if we had people on the call saying that they wanted us to do this once a quarter instead of once a month, we'd, you know, frankly, it would be easier for us to do that. We're also committed as we committed, you know, this past year to, you know, sharing the progress of your company with you on a monthly basis, and we've got a number of topics. We run out of topics or whatnot, or you start getting bored, then you'll let us know.
We fold in the sort of earnings discussion on the next fourth Friday. Any thoughts on doing Friday at 4:00 P.M. on an alternative day of the week to make it easier for investors? Yeah, some of my employees who say, It's great that we're doing this, but does it have to be Friday at 4:00? We could do third Thursday. That's a catchy little thing. If you want and you're online, let us know if you prefer the 3rd Thursday to the 4th Friday. We'd be certainly open to do that. Just let us know what you prefer. Can't really comment on what I think the stock price is gonna be at the year-end, although obviously I believe that's gonna be higher. And we'll, you know, expect to continue to purchase shares with that expectation in mind.
NanoView was on the 2026 presentation today. When will you discuss this product more? Is it minimal impact? Will compete with it, et cetera, opportunity? Yeah, NanoView is a really cool little ultrasound device. It's a handheld device. If you looked at the picture, and you can access this when we get it up on the website later. If you look at the picture, it comes in a case. That case is actually the battery charger. It's a completely wireless ultrasound device. It has three actual modes of performing ultrasound, which is the only handheld device that has three modes. It is, we have an exclusive license to distribute that here in the United States. We just recently acquired that license. We recently closed on that deal.
We've we first took that product in just to sort of distribute it without a formal agreement. We found good reception. It competes with a couple of other devices out in the marketplace. There's one called Edge. There's one called Butterfly iQ. We think ours is actually better from a quality standpoint. Now that we've signed the exclusive distribution agreement for the US and several countries outside the US as well, we will be labeling that product. We'll report more on that as we move forward through the year. There's a lot of ultrasound companies out there, including handheld ones. Ours is the only one that's completely wireless, and then it'll put the image on your phone or your pad or whatever.
Yeah, we like this product, and we'll talk more about it in the future, along with our other ultrasound products . Moichor placements have not yet begun. They had a couple of devices in inventory that they intend to place, and we're just now doing the, you know, putting their name as well as ours on the TRUVIEW microscope. We haven't made any sales. We haven't made any sales yet to Moichor. When we do make them, you'll see them as just part of our TRUVIEW sales. Will VETGuardian PLUS be monetized via subscription service fees? Yep. It's not a lot. It's l et's see. It's about $600 a year. We get $240 a year for the cloud service and $355 for the extended warranty. So that's about $600 per year.
Really what we find with VetGuardian, with the VetGuardian platform is that our recurring revenue is they want another unit, and another unit, and another unit. Remember, when these go in, not only are they freeing up tech time, improving the quality of the monitoring that they're doing and freeing up technician time, which is very valuable and important to them, which justifies the expense of it if that's it. They also bring in additional revenue because they're typically charging for these continuous monitoring sessions anywhere from $50-$100, maybe some are more than that. Generally, it's $50 for a post-op session and then $100 overnight. Once they find that, holy cow, this is not only reducing my expense and improving my quality of monitoring, it's also generating revenue, then we'll get another one, another one, another one.
A fairly common package that we have is buy four monitors, and four VetGuardian monitors, and then, and then with that we include a flat-screen TV that will put those four up on the wall. Generally speaking, that's the sort of the next sale we go for after that initial one. If there's any, d o you see Assisi as more of a retail product? And if so, is this part of the portfolio you would monetize to keep current portfolio targeting vets? We do see Well, it's interesting.
It is a retail product primarily, with the exception of the large Assisi Loop Lounge, which is really a therapeutic device that a lot of these animal hospices, you know, that are taking care of animals at the end of life, they'll buy it and use it because it really relieves the pet as they're going through their end of life. Beyond that, the Loops especially, and the lounges as well, those are retail products. Vets buy them from us to sell them to their customers. We still, in addition to selling to people, directly, through our website and Amazon and whatnot, we also sell these to vets. Would we sell this product? Would we sell this product line to someone else?
You know, I think if, I mean, you know, make us an offer, if it was humongous, you know, then we would consider it. We don't need the cash. At this point, cash is always good, we don't need the cash. What we do appreciate is the revenue and the good margins. It contributes to high revenue, it contributes to margins, and it contributes to our path to profitability. You know, if as long as that's the case, then we would have, you know, no, we certainly have no plans to sell this off to anyone else. If the share price pushes up to $0.20 after Q4 is released, would you still buy at those levels? Yes. What is our durable competitive advantage, and why won't a larger, better-capitalized competitor replicate it within five years?
What we're doing here at Zomedica is helping vets do five things: improve the quality of care of the pet and the satisfaction of the pet-parent client, and the workflow, the cash flow, and the profitability of the practice. As long as we're doing those things, we're focused on those things, and our portfolio of products all walk the walk, other companies can come and go. You know, we have a very significant substantial IP portfolio around the TRUVIEW, around the VetGuardian, and around TRUFORMA. We've got over a couple hundred patents all in, right? All around the world. You know, good luck to somebody that wants to build the exact product. I don't wanna provoke anyone to prove me wrong, but, you know, it would be a hard row to hoe for them, from a technology standpoint.
I think our advantage is the novelty, the differentiation of our products, the proprietary nature of these. You know, I can't answer this question without talking about our people. I mean, you met now Ashley and Evan last month, that are responsible for continuing to innovate with our technology. You know, Kevin Klass from our sales group, has been there, done that with larger companies. He took Heska to sales over $200 million. They ended up selling that company for $1.2 billion. He came here, in his words, to do it again. While I've been buying shares for my grandchildren, he's been buying them for himself, and he's bought over $5 million in the open market. We've got people. You've seen some of the people on these screens.
You know, Bill and Negin developed that TRUVIEW microscope. They came here to see their legacy extended. You know, there's always, we're mindful of competition, we're mindful of competitive threats, but we're not worried about it. I think that that is going to, I think I'm gonna call it at that point. Jeff, I'm not sure if that's your actual name, but, Jeff T on our, on the list here, feel free to reach out. I see that you're looking for, you know, very specific details. As I said before, we're happy to share what we can. If we can't, then we'll make every effort to release it to the shareholders from an FD standpoint in our earnings reports and so on. With that, Ashley, Mike, any other comments?
No.
For me, just wishing everyone a great weekend.
Hey, thanks all. Thanks for your support.
Thanks
Have a good weekend. Take care.
Bye.