10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026.

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________.

Commission File Number: 001-38298

Zomedica Corp.

(Exact name of registrant as specified in its charter)

Alberta, Canada	N/A
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

1101 Technology Drive, Suite 100 Ann Arbor, Michigan	48108
(Address of principal executive offices)	(Zip code)

(734) 369-2555

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, without par value	ZOMDF	OTCQB

As of May 6, 2026, 979,949,668 shares of the registrant’s common shares, without par value, were issued and outstanding.

ZOMEDICA CORP.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED

March 31, 2026

TABLE OF CONTENTS

		Page
PART I
FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
	Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025
	Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025
	Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2026 and 2025
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025
	Notes to the Condensed Consolidated Financial Statements
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 4.	Controls and Procedures	32
PART II
OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 6.	Exhibits	33

2

PART I — FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

Zomedica Corp.

Consolidated Balance Sheets as of March 31, 2026 (Unaudited) and December 31, 2025

(United States Dollars in Thousands)

	March 31,		December 31,
	2026		2025
Assets
Current assets
Cash and cash equivalents	$	9,369	$	9,017
Available-for-sale securities		38,138		44,239
Trade receivables, net		4,428		3,012
Inventory, net		5,875		5,545
Prepaid expenses and deposits		1,846		1,787
Other receivables		373		443
Total current assets		60,029		64,043
Prepaid expenses and deposits		131		152
Property and equipment, net		20,459		20,912
Right-of-use assets		1,863		2,023
Intangible assets, net		37,975		38,808
Other assets		1,076		1,101
Total assets	$	121,533	$	127,039
Liabilities and shareholders’ equity
Current liabilities
Accounts payable	$	2,200	$	1,718
Accrued income taxes		190		252
Current portion of lease obligations		715		717
Customer contract liabilities		352		368
Accrued expenses and other current liabilities		5,101		6,394
Total current liabilities		8,558		9,449
Lease obligations		1,296		1,467
Deferred tax liabilities, net		45		27
Customer contract liabilities		273		232
Other liabilities		416		467
Total liabilities	$	10,588	$	11,642
Commitments and contingencies (Note 14)
Shareholders’ equity
Unlimited common shares, no par value; 979,949,668 issued and outstanding at March 31, 2026 and December 31, 2025	$	380,973	$	380,973
Additional paid-in capital		34,176		34,037
Accumulated deficit		(304,307)		(299,773)
Accumulated comprehensive income		103		160
Total shareholders' equity		110,945		115,397
Total liabilities and shareholders’ equity	$	121,533	$	127,039

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

Zomedica Corp.

Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2026 and 2025

(Unaudited) (United States Dollars in Thousands, Except for Per Share Data)

	Three Months Ended March 31,
	2026		2025
Net revenue	$	8,799	$	6,500
Cost of revenue		3,315		2,093
Gross profit		5,484		4,407
Expenses
General and administrative		5,413		6,262
Research and development		1,154		1,853
Selling and marketing		3,817		5,007
Impairment expense		—		55,833
Loss from operations		(4,900)		(64,548)
Other income (expense), net
Interest income		455		730
Loss on disposal of assets		(15)		(8)
Other expense		(26)		(44)
Foreign exchange (loss) income		(9)		4
Loss before income taxes		(4,495)		(63,866)
Income tax expense (benefit)		39		(57)
Net loss		(4,534)		(63,809)
Unrealized loss, change in fair value of available-for-sale securities, net of tax		(43)		(18)
Change in foreign currency translation		(14)		62
Net loss and comprehensive loss	$	(4,591)	$	(63,765)
Weighted average number of common shares - basic and diluted		979,949,668		979,949,668
Loss per share - basic and diluted (Note 16)	$	(0.00)	$	(0.07)

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Zomedica Corp.

Consolidated Statements of Shareholders’ Equity for the Three Months Ended March 31, 2026 and 2025

(Unaudited) (United States Dollars in Thousands)

	Three Months Ended March 31, 2026
				Additional				Accumulated
	Common Stock			Paid-In		Accumulated		Comprehensive
	Shares	Amount		Capital		Deficit		Income (Loss)		Total
Balance at December 31, 2025	979,949,668	$	380,973	$	34,037	$	(299,773)	$	160	$	115,397
Stock-based compensation	—		—		139		—		—		139
Net loss	—		—		—		(4,534)		—		(4,534)
Other comprehensive loss	—		—		—		—		(57)		(57)
Balance at March 31, 2026	979,949,668	$	380,973	$	34,176	$	(304,307)	$	103	$	110,945

	Three Months Ended March 31, 2025
				Additional				Accumulated
	Common Stock			Paid-In		Accumulated		Comprehensive
	Shares	Amount		Capital		Deficit		Income (Loss)		Total
Balance at December 31, 2024	979,949,668	$	380,973	$	32,518	$	(217,915)	$	88	$	195,664
Stock-based compensation	—		—		545		—		—		545
Net loss	—		—		—		(63,809)		—		(63,809)
Other comprehensive income	—		—		—		—		44		44
Balance at March 31, 2025	979,949,668	$	380,973	$	33,063	$	(281,724)	$	132	$	132,444

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Zomedica Corp.

Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2026 and 2025

(Unaudited) (United States Dollars in Thousands)

	Three Months Ended March 31,
	2026		2025
Cash flows from operating activities:
Net loss	$	(4,534)	$	(63,809)
Adjustments for:
Depreciation		519		521
Amortization - intangible assets		1,372		1,693
Impairment loss		—		55,833
Loss on disposal of property and equipment		15		8
Stock-based compensation		643		618
Noncash portion of rent benefit		(13)		(11)
Accretion/amortization of available-for-sale securities		(105)		(288)
Equity in loss of nonconsolidated entities		25		40
Deferred tax expense		18		(82)
Change in assets and liabilities, net of acquisitions:
Purchased inventory		(347)		(334)
Prepaid expenses and deposits		(39)		166
Trade receivables		(1,416)		854
Other receivables		94		156
Accounts payable		385		423
Accrued income tax		(53)		26
Accrued expenses and other current liabilities		(1,796)		(2,530)
Customer contract liabilities		25		20
Other liabilities		(50)		48
Net cash used in operating activities		(5,257)		(6,648)
Cash flows from investing activities:
Securities matured		6,135		8,806
Investment in property and equipment		(60)		(280)
Acquisition of intangibles		(453)		(120)
Net cash provided by investing activities		5,622		8,406
Increase in cash and cash equivalents		365		1,758
Effect of exchange rate changes on cash		(13)		58
Cash and cash equivalents, beginning of year		9,017		7,021
Cash and cash equivalents, end of period	$	9,369	$	8,837
Noncash activities:
Change in fair value of available-for-sale securities, net of tax	$	(43)	$	(18)
Property and equipment accrued for in accounts payable		3		44
Transfer of property and equipment into intangibles		—		39
Net transfer of property and equipment into inventory		17		(37)
Intangible assets accrued for in accounts payable		131		61
Right-of-use assets obtained in exchange for operating lease obligations		—		1,056
Supplemental cash flow information:
Interest received on available-for-sale securities	$	400	$	591

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

1. Nature of Operations

Zomedica Corp. (“Zomedica” or the “Company”) is a veterinary health company creating products for companion animals by focusing on the unmet needs of clinical veterinarians. While prioritizing animal health, we also strategically leverage our existing manufacturing and engineering capabilities to provide development services beyond animal health. The Company consists of the parent company, Zomedica Corp., its wholly owned U.S subsidiary, Zomedica Inc., and the wholly owned subsidiaries of Zomedica Inc.

2. Basis of Preparation
​

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. Intercompany transactions and balances between consolidated businesses have been eliminated. The accounting policies set out below have been applied consistently in the condensed consolidated financial statements.

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim reports. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary to present fairly the information required to be set forth therein. The Company’s management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (“2025 Form 10-K”).

3. Significant Accounting Policies

Basis of Measurement

The condensed consolidated financial statements have been prepared on the historical cost basis except as otherwise noted.

Estimates and Assumptions

In preparing these condensed consolidated financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other outside sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur, and additional information is obtained. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements.

Functional and Reporting Currencies

The functional currency for Canada and our subsidiaries in the United States and Switzerland is U.S. dollars, which is also our reporting currency. The functional currency, as determined by management, for our Japanese subsidiary is Japanese Yen. Japanese Yen is translated for financial reporting purposes, with translation gains and losses recorded as a component of other comprehensive income or loss. In respect of transactions denominated in currencies other than the Company’s and its wholly owned operating subsidiaries’ functional currencies, the monetary assets and liabilities are remeasured at the period end rates. Revenue and expenses are measured at rates of exchange prevailing on the transaction dates. All exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations.

7

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Recently Issued Accounting Pronouncements

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The ASU clarifies interim disclosure requirements and the applicability of Topic 270 and results in a comprehensive list of interim disclosures required by other standards. In addition, the ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.  The ASU updates the existing accounting standards over internal-use software capitalization to increase the operability of the recognition guidance considering different methods of software development. The ASU removes all references to prescriptive and sequential software development stages (referred to as “project stages”) and replaces it with a probable-to-complete recognition model. As part of this updated recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. This ASU is effective for annual reporting periods beginning after December 15, 2027, and for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures to disaggregate costs and expense line items presented on the face of the consolidated statements of operations and comprehensive loss. These disclosures include: (a) amounts related to purchased inventory, employee compensation, depreciation, amortization, and other significant components of costs and expenses; (b) an explanation of costs and expenses that are not disaggregated quantitatively; and (c) the definition and total amount of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public entities with fiscal years beginning after December 15, 2024. The Company adopted this guidance for the year ended December 31, 2025 and applied the guidance on a prospective basis. The adoption did not have a material impact on the consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient permitting an entity to assume the conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for the current classified accounts receivable and contract assets. The Company early adopted the standard during the year ended December 31, 2025 on a prospective basis. The adoption did not have a material impact on the consolidated financial statements.

Segment Reporting

The Company reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s reportable segments consist of Diagnostics, Therapeutic Devices, and Development Services.

Cash and Cash Equivalents

The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. As of March 31, 2026 and December 31, 2025, the Company's cash balances exceeded federally insured limits by approximately $766 and $916.

8

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Investment Securities

Our investment securities, which are comprised of corporate bonds/notes and US treasuries, are accounted for in accordance with ASC 320, Investments – Debt Securities (“ASC 320”). The Company considers all of its securities for which there is a determinable fair market value, and there are no restrictions on the Company’s ability to sell within the next twelve months, as available for sale. We classify these securities as both current and non-current depending on their time to maturity. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported as a component of comprehensive loss.

Trade Receivables and Allowance for Credit Losses

Trade receivables are recorded net of an allowance for credit losses and have payment terms of 30-90 days. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries, and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. As of March 31, 2026,  December 31, 2025, and December 31, 2024, trade receivables were $4,606, $3,263, and $2,794, respectively, net of allowance for doubtful accounts of $178, $251, and $371, respectively. While we believe that our allowance for credit losses is adequate and represents our best estimate as of March 31, 2026, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to these estimates.

Inventories

Inventories are stated at the lower of cost or net realizable value. The Company utilizes the specific identification and First in, First out (“FIFO”) method to track inventory costs. The Company records reserves, when necessary, to reduce the carrying value of inventory to its net realizable value. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Property and Equipment

Property and equipment are carried at historical cost less accumulated depreciation and any accumulated impairment losses. Property and equipment acquired in a business combination are recorded at fair value as of the date of acquisition. Maintenance and repair expenditures that do not improve or extend the life are expensed in the period incurred. Depreciation is recognized so as to write off the cost less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Included in property and equipment is construction in progress (“CIP”), which consists of property and equipment that are purchased or constructed and require time before being ready for their intended use. CIP is recorded at acquisition cost, including directly attributable installation costs. No depreciation is recorded on CIP until assets are complete and ready for use, at which point CIP balances are transferred to the appropriate property and equipment accounts, and depreciation begins in accordance with our policy.

Intangible Assets

Definite-lived intangible assets include acquired customer relationships, developed technology, licenses, trademarks, and tradenames. These assets are capitalized and amortized on a straight-line basis over their estimated useful lives. Intangible assets acquired as part of a business combination are initially recorded at their estimated fair value as of the acquisition date, while all other intangible assets are capitalized at cost. The estimated useful lives and amortization methods are reviewed annually, with any changes applied prospectively.

Expenditures for the planning and ongoing operation of the Company’s website are expensed as incurred. Costs incurred for website application development and infrastructure enhancements are capitalized and amortized over their estimated useful life.

Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. These assets are not amortized but are assessed for impairment at least annually, or more frequently if events or circumstances indicate potential impairment.

9

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Impairment of Long-Lived and Indefinite-Lived Intangible Assets

The Company evaluates long-lived assets, including property, equipment, and definite-lived intangible assets, for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. If the sum of estimated undiscounted future cash flows expected to be generated by an asset or asset group is less than its carrying value, an impairment loss is recognized. The impairment loss is measured as the excess of the asset’s carrying amount over its fair value.

Indefinite-lived intangible assets, including goodwill, are tested for impairment at least annually or when impairment indicators arise. If the carrying amount exceeds the fair value, an impairment loss is recognized.

During the first quarter of 2025, the Company identified a triggering event and recorded a material impairment charge related to certain long-lived and indefinite-lived intangible assets, including goodwill. See Note 10, Property and Equipment and Note 11, Goodwill and Intangible Assets, for further information.

Revenue Recognition

The Company enters into agreements which may contain multiple promises where customers purchase products, services, or a combination thereof. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires judgment. We determine the transaction price for a contract based on the total consideration we expect to receive in exchange for the transferred goods or services.

The Company allocates revenue to each performance obligation in proportion to the relative standalone selling prices and recognizes revenue when control of the related goods or services is transferred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the performance obligation when sold separately.

The Company's contracts with customers are generally comprised of purchase orders for the sale of the point of care instrument, consumable products, development services, and extended warranties, or some variation thereof. The instrument and consumables each represent a single performance obligation when sold separately, that is satisfied at a point in time upon transfer of control of the product to the customer which is typically upon receipt of the goods by the customer. The extended warranties are also a separate performance obligation, whereby revenue is recognized over time. Development services are recognized over time, as they do not create an asset with alternative use to us, and we have an enforceable right to payment for performance completed to date. ASC 606, Revenue from Contracts with Customers (“ASC 606”) contains a practical expedient whereby if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. The Company has elected to apply this practical expedient to our services revenue.

The Company also enters into contracts with customers where it receives payment for the consumable products and does not receive additional or separate consideration for the use of the point of care instrument furnished by the Company for the clinical veterinarian’s use. For these contracts, the Company considers the guidance under ASC 842, Leases (“ASC 842”), in order to determine if the furnishing of the point of care instrument to the customer during the period of use creates an embedded lease. If the point of care instrument is identified as a lease, it is classified as an operating lease as it does not meet any of the finance lease criteria per ASC 842. In these arrangements, the consumable products are classified as non-lease components. The Company allocates revenue to these lease and non-lease components based on standalone selling prices or, if not available, a cost-plus approach. Revenue related to the lease component is recognized ratably over the term of the contract. Revenue related to the non-lease components is recognized when control of the product has been transferred to the customer.

The nature of the Company’s PulseVet^® business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned.

10

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are based upon historical experience and known trends. These estimated credits are nonrefundable and may only be used towards the purchase of future trode refurbishments. These credits give rise to the contract liability contained on the balance sheet. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode on hand with ample capacity to perform treatments. As of March 31, 2026, December 31, 2025 and December 31, 2024, contract liabilities were $625, $600, and $550, respectively.

Sales are recorded net of sales tax. Sales tax is charged on sales to end users and remitted to the appropriate state authority.

Disaggregated revenue for the three months ended March 31, 2026 and 2025 is as follows:

		Three Months Ended March 31,
		Diagnostics				Therapeutic Devices				Development Services				Consolidated
		2026		2025		2026		2025		2026		2025		2026		2025
Capital	$	167	$	156	$	1,433	$	1,800	$	374	$	-	$	1,974	$	1,956
Consumables		799		403		4,369		4,094		302		-		5,470		4,497
Engineering		-		-		-		-		1,244		-		1,244		-
Other		-		-		19		47		92		-		111		47
Total revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500

Cost of Revenue

Cost of goods sold consists of overhead, materials, labor, shipping costs, and a portion of depreciation incurred internally to produce and receive the products or to provide services. Shipping and handling costs incurred by the Company are included in cost of revenue.

Research and Development

Research and development costs related to continued research and development programs are expensed as incurred.

Stock-based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation, (“ASC 718”). Stock-based compensation expense is recognized for awards granted to employees and directors based on the fair value of the awards on the grant date. The Company’s stock-based compensation includes stock options, which are classified as equity awards, and stock appreciation rights (SARs), which are classified as liability awards.

The Company calculates stock-based compensation for stock options using the fair value method. The fair value of stock options at the grant date is determined using the Black-Scholes Option Pricing Model. The resulting fair value is recognized as compensation expense over the vesting period of the award using the graded vesting method. The Company’s stock option plans do not require the settlement of awards by transferring cash or other assets. Therefore, stock options are classified as equity awards. Compensation expense recognized during the period reflects the fair value of stock-based payment awards that are ultimately expected to vest. In accordance with ASC 718, the Company recognizes forfeitures of employee awards as they occur.

The Company accounts for SARs under ASC 718 as liability-classified awards because they are settled solely in cash and do not result in the issuance of equity. The fair value of SARs is measured at the grant date and remeasured at each reporting date until settlement. Changes in fair value are recognized as compensation expense in the consolidated statements of operations and comprehensive loss in the period of remeasurement. The fair value of SARs is determined using the Black-Scholes Option Pricing Model, incorporating significant assumptions such as expected stock price volatility, expected term of the award, and risk-free interest rate.

SARs vest over the defined vesting period, and compensation expense is recognized based on the proportion of the vesting period that has elapsed. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the SAR.

11

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), on a tax jurisdictional basis. The Company files income tax returns in Canada and the province of Alberta and its subsidiaries file income tax returns in Switzerland, Japan, the United States and various states within, including in Michigan where the Company’s headquarters are located.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their financial statement reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized.

The Company assesses the likelihood of the financial statement effect of an uncertain tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in the United States, Canada, Japan, and Switzerland. The Company recognizes tax-related interest and penalties, if any, as a component separate from income tax expense.

Comprehensive Loss

Our comprehensive loss is reported in accordance with ASC 220, Income Statement — Reporting Comprehensive Income (“ASC 220”). Comprehensive loss is net loss plus certain items that are recorded directly to shareholders’ equity. The Company has recorded a currency translation adjustment associated with the translation of its Japanese subsidiary to the reporting currency.

Loss Per Share

Basic loss per share (“EPS”) is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options is excluded from diluted EPS if the effect of such inclusion would be anti-dilutive.

4. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and further periods if the revision affects both current and future periods.

Critical areas of estimation and judgements in applying accounting policies include the following:

Impairment Testing

Prior to fully impairing goodwill during the first quarter of 2025, we evaluated goodwill for impairment annually or more frequently when an event occurs or circumstances change indicating the carrying value may not be recoverable. When testing goodwill for impairment, we would first assess qualitative factors to determine if it is more likely than not the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, we considered the impact of changes, if any, to the following factors: macroeconomic, industry and market factors; cost factors; changes in overall financial performance; and any other relevant events and uncertainties impacting a reporting unit. If our qualitative assessment indicated a goodwill impairment is more likely than not, we performed additional quantitative analyses. We may also elect to skip the qualitative testing and proceed directly to the quantitative testing. For reporting units where a quantitative analysis is performed, we perform a test measuring the fair values of the reporting units and comparing them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, an impairment was recognized for the difference, up to the carrying amount of goodwill.

12

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

We estimated the fair values of our reporting units using a discounted cash flow method or a weighted combination of discounted cash flows and a market-based method. The discounted cash flow method includes assumptions about a wide variety of internal and external factors. Significant assumptions used in the discounted cash flow method include financial projections of free cash flow, including revenue trends, medical costs trends, operating productivity, income taxes and capital levels; long-term growth rates for determining terminal value beyond the discretely forecasted periods; and discount rates. Financial projections and long-term growth rates used for our reporting units will be consistent with, and use inputs from, our internal long-term business plan and strategies.

Discount rates were determined for each reporting unit and include consideration of the implied risk inherent in their forecasts. Our most significant estimate was the discount rate determinations involves our adjustments to the peer company weighted average costs of capital reflecting reporting unit-specific factors. We did not make any adjustments to decrease a discount rate below the calculated peer company weighted average cost of capital for any reporting unit. Company-specific adjustments to discount rates are subjective and thus are difficult to measure with certainty.

The passage of time and the availability of additional information regarding areas of uncertainty with respect to the reporting units’ operations could cause these assumptions to change in the future. Additionally, as part of our quantitative impairment testing, we performed various sensitivity analyses on certain key assumptions, such as discount rates, cash flow projections, and peer company multiples to analyze the potential for a material impact. The market-based method requires determination of an appropriate peer group whose securities are traded on an active market. The peer group is used to derive market multiples to estimate fair value.

Valuation and Payback of Property and Equipment

Diagnostic based TRUFORMA^® capital is placed in fixed assets once purchased or manufactured, where they remain, undepreciated, until they are placed with our customers under the agreement that they will repeatedly purchase consumables or services which are utilized within. Each instance of this placed capital represents an asset that we own. An estimate is made of the anticipated future revenue over its respective life which is ten years. If the payback period of the initial investment in the asset is less than the ten-year life of the asset, we conclude that the assets have been properly recorded, and no write-down is necessary. We rely on third-party data that considers various data points and assumptions, including, but not limited to, the expected volume of consumables which will be sold, anticipated growth rates, and anticipated placements. Realization of the anticipated revenue is dependent on the current assumptions and forecasted models.

Revenue Recognition

The nature of the Company’s business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are estimated based upon historical experience and known trends. These estimated credits are non-refundable and may only be used towards the purchase of future trode refurbishments. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode at hand with ample capacity to perform treatments.

5. Investment Securities

The following represents the Company’s investment securities as of March 31, 2026 and December 31, 2025:

Balance at March 31, 2026		Acquisition Cost		Accretion / (Amortization)		Unrealized Gain / (Loss)		Estimated Fair Value
Commercial paper	$	4,903	$	56	$	(2)	$	4,957
Corporate notes / bonds		22,146		90		(31)		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		8,535		35		(3)		8,567
U.S. treasuries		3,661		(5)		(2)		3,654
Total investment securities	$	44,827	$	176	$	(38)	$	44,965

13

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Balance at December 31, 2025		Acquisition Cost		Accretion / (Amortization)		Unrealized Gain / (Loss)		Estimated Fair Value
Commercial paper	$	4,888	$	34	$	—	$	4,922
Corporate notes / bonds		24,063		96		2		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		11,192		64		5		11,261
U.S. treasuries		4,881		11		(1)		4,891
Total investment securities	$	50,311	$	205	$	6	$	50,522

Accretion / (amortization) refers to the discounts and premiums incurred on bonds and notes purchased and are included within Interest income on the consolidated statements of operations and comprehensive loss.

Accrued interest receivable related to the above investment securities amounted to $282 and $314 as of March 31, 2026 and December 31, 2025, respectively, and is included in Other receivables on the consolidated balance sheets. The contractual maturities of investment securities as of March 31, 2026, are as follows:

		Acquisition Cost		Estimated Fair Value
Original maturities of 90 days or less	$	6,823	$	6,827
Original maturities of 91-365 days		38,004		38,138
Original maturities of 366+ days		-		-
Total investment securities	$	44,827	$	44,965

6. Fair Value Measurements

In accordance with FASB ASC 820, Fair Value Measurement (“ASC 820”), the Company measures its cash and cash equivalents and investments at fair value on a recurring basis. The Company also measures certain assets and liabilities at fair value on a non-recurring basis when applying acquisition accounting.

ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.

As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable inputs other than quoted prices included in Level 1 for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3: Unobservable data points for the assets or liability, and include situations where there is little, if any, market activity for the asset or liability. Valuations based on inputs that are unobservable and involve management judgement and the reporting entity’s own assumptions about market participants and pricing.

Cash and cash equivalents, trade receivable, and accounts payable: The carrying amount of these assets approximate fair value due to the short maturity of these instruments. Cash and cash equivalents include marketable securities with an original maturity within 90 days.

14

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Available-for-sale securities: The Company classifies marketable securities and other highly liquid investments, with a maturity of greater than three months and that can be readily purchased or sold using established markets, as available-for-sale. These investments are reported at fair value on the Company’s consolidated balance sheets and unrealized gains and losses are reported as a component of shareholders’ equity.

Stock Appreciation Rights liability: The Company measures its cash-settled SARs at fair value on a recurring basis using a Black-Scholes option-pricing model. The liability, classified as Level 2 within the fair-value hierarchy, is reported at fair value on the Company’s consolidated balance sheets, and changes in fair value are recognized as compensation expense in the consolidated statements of operations and comprehensive loss in the period of remeasurement.

In accordance with the fair value hierarchy described above, the following table shows the fair value of our investments as of March 31, 2026 and December 31, 2025:

Balance at March 31, 2026		Level 1		Level 2		Level 3		Estimated Fair Value
Commercial paper	$	—	$	4,957	$	—	$	4,957
Corporate notes / bonds		—		22,205		—		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		8,567		—		—		8,567
U.S. treasuries		3,654		—		—		3,654
Total investment securities	$	17,803	$	27,162	$	—	$	44,965

Balance at December 31, 2025		Level 1		Level 2		Level 3		Estimated Fair Value
Commercial paper	$	—	$	4,922	$	—	$	4,922
Corporate notes / bonds		—		24,161		—		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		11,261		—		—		11,261
U.S. treasuries		4,891		—		—		4,891
Total investment securities	$	21,439	$	29,083	$	—	$	50,522

The following tables shows our investments as of March 31, 2026 and December 31, 2025 and their respective balance sheet classifications:

Balance at March 31, 2026		Cash & Cash Equivalents		Available- For-Sale (Current)		Available- For-Sale (Non-Current)		Estimated Fair Value
Commercial paper	$	1,245	$	3,712	$	—	$	4,957
Corporate notes / bonds		—		22,205		—		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		—		8,567		—		8,567
U.S. treasuries		—		3,654		—		3,654
Total investment securities	$	6,827	$	38,138	$	-	$	44,965

Balance at December 31, 2025		Cash & Cash Equivalents		Available- For-Sale (Current)		Available- For-Sale (Non-Current)		Estimated Fair Value
Commercial paper	$	—	$	4,922	$	—	$	4,922
Corporate notes / bonds		—		24,161		—		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		—		11,261		—		11,261
U.S. treasuries		996		3,895		—		4,891
Total investment securities	$	6,283	$	44,239	$	—	$	50,522

15

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Unrealized gains and losses on our investments have not been recorded into income as we do not intend to sell nor is it more likely than not that we will be required to sell these investments prior to recovery of their amortized cost basis. The decline in fair value of our debt securities is largely due to the rising interest rate environment driven by current market conditions that have resulted in higher credit spreads. The credit ratings associated with our debt securities are mostly unchanged, are highly rated, and the debtors continue to make timely principal and interest payments. As a result, there were no credit or non-credit impairment charges recorded through March 31, 2026.

7. Inventory

	March 31, 2026						December 31, 2025
	Diagnostics		Therapeutic Devices		Consolidated		Diagnostics		Therapeutic Devices		Consolidated
Raw materials	$	2,232	$	2,322	$	4,554	$	2,425	$	1,899	$	4,324
Finished goods		385		457		842		307		482		789
Purchased inventory		142		357		499		119		349		468
Total inventory		2,759		3,136		5,895		2,851		2,730		5,581
Less: reserves		(20)		—		(20)		(36)		—		(36)
Inventory, net	$	2,739	$	3,136	$	5,875	$	2,815	$	2,730	$	5,545

There was no inventory associated with the Development Services segment as of March 31, 2026 or December 31, 2025.

8. Prepaid Expenses and Deposits

	March 31,		December 31,
	2026		2025
Deposits	$	394	$	208
Prepaid marketing		126		196
Prepaid insurance		333		437
Other		1,124		1,098
Total prepaid expenses and deposits	$	1,977	$	1,939

9. Accrued Expenses and Other Current Liabilities

	March 31,		December 31,
	2026		2025
Accrued employee compensation and benefits	$	2,182	$	3,865
Stock appreciation rights		1,574		1,071
Accrued taxes		757		856
Accrued professional services		362		403
Other		226		199
Total accrued expenses and other current liabilities	$	5,101	$	6,394

16

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

10. Property and Equipment

	March 31,		December 31,
	2026		2025
Machinery and equipment	$	15,827	$	15,556
Furniture and fixtures		169		169
Laboratory equipment		842		842
Leasehold improvements		2,847		2,847
Construction in progress		6,177		6,415
Total property and equipment		25,862		25,829
Less: accumulated depreciation		(5,403)		(4,917)
Property and equipment, net	$	20,459	$	20,912

Depreciation expense related to property and equipment is as follows:

	Three Months Ended March 31,
	2026		2025
Depreciation expense	$	519	$	521

During the first quarter of 2025, a significant decline in the Company’s market-capitalized value following the delisting of its common shares from NYSE American constituted a triggering event requiring interim impairment testing of goodwill. In connection with this assessment, the Company reviewed its property and equipment for recoverability under ASC 360, Property, Plant, and Equipment (“ASC 360”). That review determined that certain assets within the Diagnostics segment were not fully recoverable. As a result, the Company recognized a $1,981 impairment charge, of which $897 related to machinery and equipment and $1,084 related to construction in progress, and recorded this charge in the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2025. There were no interim triggering events identified during the three months ened March 31, 2026.

11. Goodwill and Intangible Assets

The following table provides a rollforward of the carrying amount of goodwill by segment:

	Diagnostics		Therapeutic Devices		Development Services		Total
Balance at December 31, 2024	$	—	$	45,556	$	—	$	45,556
Impairment		—		(45,556)		—		(45,556)
Balance at December 31, 2025	$	—	$	—	$	—	$	—

During the first quarter of 2025, the Company determined that a triggering event had occurred that required interim goodwill impairment analysis in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), due to a significant decline in its market capitalization, driven by a substantial decrease in its stock price following the delisting of its common shares from NYSE American. The Company concluded that the fair values of certain reporting units were below their carrying values. The difference between the reporting units’ carrying values and fair values was recognized as impairment charges. The Company recognized $45,556 of non-cash impairment charges related to goodwill, which represented full impairments of goodwill in the PulseVet and Assisi reporting units within the Therapeutic Devices segment. As a result, no goodwill remains on the Company’s consolidated balance sheets as of December 31, 2025.

During the first quarter of 2025, the Company also evaluated its amortizable intangible assets for recoverability under ASC 360. It was determined that the carrying values of certain intangible assets exceeded their fair values. The decline in fair value was related to the same facts and circumstances as those noted above as part of our interim goodwill impairment analysis. The Company recognized $8,296 in non-cash impairment charges related to these amortizable intangible assets within the Diagnostics segment during the three months ended March 31, 2025, which consisted primarily of $7,060 related to technology assets and $763 related to customer relationships. All impairment charges are reported under Impairment expense in the consolidated statements of operations and comprehensive loss. There were no interim triggering events identified during the three months ended March 31, 2026.

17

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

The following table summarizes our intangible assets, net of accumulated amortization:

	March 31,		December 31,
	2026		2025
Computer software	$	3,394	$	3,348
Customer relationships		26,087		26,087
Licenses		9,642		9,542
Technology		18,240		17,990
Tradenames		2,787		2,787
Trademarks		16		16
Website		1,433		1,433
Intangibles under construction		232		89
Total intangibles		61,831		61,292
Less: accumulated amortization		(23,856)		(22,484)
Intangibles, net	$	37,975	$	38,808

Included within intangibles are $663 in licenses associated with future exclusivity to sell products should we determine that they have both market viability and are a complementary fit within our suite of offerings. As these relationships are still in the exploratory phase with no revenue stream to match expenses against nor a guarantee that this exclusivity will ever be used, we are considering these to be indefinite lived as of March 31, 2026. This, along with our intangible assets under construction, accounts for the difference between the net intangibles as found within our consolidated balance sheets and the amortization table below. We will continue to assess the commercialization status and relationship with these companies on a quarterly basis and will adjust our amortization schedules accordingly.

The estimated future amortization of intangible assets is as follows:

2026	$	3,878
2027		5,080
2028		4,828
2029		4,709
2030		4,588
Thereafter		13,997
Total	$	37,080

Amortization expense associated with intangible assets is as follows:

	Three Months Ended March 31,
	2026		2025
Amortization expense	$	1,372	$	1,693

12. Stock-Based Compensation

Stock Options

The Zomedica Amended and Restated Stock Option Plan (the “Plan”) was amended and restated on June 15, 2022, and provides incentives through the grant of stock options which may be granted to the directors, officers, employees of the Company, and consultants. The Plan is administered by the Board of Directors of the Company, and the aggregate number of shares reserved for issuance under the Plan shall not, at the time of the stock option grant, exceed ten percent of the total number of issued and outstanding shares (calculated on a non-diluted basis). If any stock options granted under this Plan shall expire or terminate for any reason without having been exercised in full, they shall be available for the purposes of granting new stock options under this Plan.

18

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

During the three months ended March 31, 2026 and 2025, the Company issued 2,450,000 and 6,975,000 stock options to purchase an aggregate of 2,450,000 and 6,975,000 common shares, respectively. These options vest over a period of four years and have an expiration period of 10 years.

The continuity of stock options for the three months ended March 31, 2026 and 2025 are as follows:

	Number of Options	Weighted-Average Exercise Price
Balance at December 31, 2025	94,338,469	$	0.2904
Stock options granted	2,450,000		0.1322
Stock options forfeited	2,041,248		0.1223
Vested stock options expired	358,750		0.1986
Balance at March 31, 2026	94,388,471	$	0.2902
Vested at March 31, 2026	68,894,689	$	0.3520

	Number of Options	Weighted-Average Exercise Price
Balance at December 31, 2024	89,051,943	$	0.3232
Stock options granted	6,975,000		0.1183
Stock options forfeited	351,250		0.1769
Vested stock options expired	3,845,557		0.3354
Balance at March 31, 2025	91,830,136	$	0.3077
Vested at March 31, 2025	55,036,523	$	0.3565

The Company recorded the following stock-based compensation expense associated with outstanding stock options:

	Three Months Ended March 31,
		2026		2025
Stock-based compensation expense	$	139	$	545

As of March 31, 2026, the total unrecognized compensation cost related to nonvested awards was $877, which is expected to be recognized over a weighted-average period of 2.6 years.

Cash-Settled Stock Appreciation Rights (“SARs”)

On August 12, 2024, the Board of Directors of the Company adopted the Zomedica Corp. 2024 Stock Appreciation Rights Plan (the “SAR Plan”). The SAR Plan is administered by the Board of Directors, which may delegate administration to a committee of the Board. Up to 10% of the issued and outstanding shares of common stock of the Company (calculated on a non-diluted basis) is available for the grant of SARs. Awards are settled solely in cash and do not result in the issuance of shares.

The Board determines the exercise price of each SAR, which must not be less than the fair market value of one share of common stock on the grant date, as well as the term and vesting provisions of each award. The term of a SAR may not exceed ten years. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price.

SARs granted to employees vest 25% on the first anniversary of the grant date, with the remainder vesting 1/48th per month over the next 36 months. SARs granted to non-employee directors vest 100% on the first anniversary of the grant date, subject to continuous service through the vesting date.

Following termination of service, vested SARs may generally be exercised within 90 days, or up to 12 months in the event of death or disability, but not beyond the expiration date of the SAR. The SAR Plan is subject to the terms outlined in individual grant agreements.

19

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

The continuity of SARs for the three months ended March 31, 2026 and 2025 is as follows:

	Number of SARs	Weighted-Average Exercise Price
Balance at December 31, 2025	26,890,832	$	0.12
Balance at March 31, 2026	26,890,832	$	0.12
Vested at March 31, 2026	13,521,379		0.13

	Number of SARs	Weighted-Average Exercise Price
Balance at December 31, 2024	13,521,379	$	0.13
Balance at March 31, 2025	13,521,379	$	0.13
Vested at March 31, 2025	—		—

As of March 31, 2026, unrecognized stock-based compensation expense related to non-employee director SARs was $753 and is expected to be recognized over a weighted-average period of approximately 0.6 years. During the three months ended March 31, 2026 and 2025, the Company recognized a compensation expense of $504 and $73, respectively, related to SARs. The carrying amount of the SAR liability, measured at fair value, was $1,574 as of March 31, 2026, and $1,071 as of December 31, 2025, and is presented within Accrued expenses and other current liabilities on the consolidated balance sheets.

13. Income Taxes

The Company is in an overall domestic net deferred tax liability position for the three months ended March 31, 2026. Management has assessed that the future taxable income resulting from the deferred tax liability position will result in partial utilization of the Company's US federal and state net operating loss carryforwards and has therefore concluded a valuation allowance of $27,329 is currently necessary. Due to the uncertainty of realizing any tax benefits as of March 31, 2026 due to historical losses, a full valuation allowance remains necessary to fully offset our Canadian deferred tax assets.

14. Commitments and Contingencies

From time to time, the Company may be exposed to claims and legal actions in the normal course of business. As of March 31, 2026, and continuing as of May 6, 2026, the Company is not aware of any pending or threatened material litigation claims against the Company.

Agreements with Qorvo Biotechnologies, LLC

On January 17, 2023, the Company entered into a series of agreements with Qorvo Biotechnologies, LLC. Other than the obligation to purchase a minimum quantity of BAW sensors during the term of the BAW Sensor Supply Agreement from Qorvo US, Inc., the obligations under these agreements were terminated upon the acquisition of Qorvo Biotechnologies, LLC on October 4, 2023.

20

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

Development and License Agreement with Brisby, Inc.

On April 4, 2023, the Company entered into a Development and License Agreement with Brisby Inc. Under the terms of this agreement, Brisby grants the Company a license to use, develop, manufacture, have manufactured, offer for sale, sell, and import certain Brisby products, such as the Smart Pet Pad and the Intelligent Pet Bed, along with any future developments of these products.

As part of this agreement, the Company is required to make the following milestone payments:

● $3,500 in aggregate cash payments, covering the initial license fee, equity interest, development milestones, and commercial sales;

● $750 in warrants upon the first commercial sale of the Smart Pet Pad, determined by dividing the amount due by the closing price of the Company's common stock on the date of such first commercial sale, as reported on the OTCQB marketplace, with a term of 10 years;

● $750 in warrants upon the first commercial sale of the Intelligent Pet Bed, determined by dividing the amount due by the closing price of the Company's common stock on the date of such first commercial sale, as reported on the OTCQB marketplace, with a term of 10 years;

● $5,000 in warrants upon reaching $15,000 in annual net sales of the licensed products, determined by dividing the amount due by the closing price of the Company's common stock on the date that net sales reach $15,000, as reported on the OTCQB marketplace, with a term of 10 years.

As of March 31, 2026, the Company has made $1,711 in cash payments for milestones achieved under this agreement and holds a 19.50% equity stake in Brisby Inc. The remaining cash payments, totaling $1,789, are due upon the achievement of future development milestones and the first commercial sales of the Smart Pet Pad and the Intelligent Pet Bed.

The Company’s investment in Brisby Inc. is accounted for under the equity method in accordance with ASC 323, Investments – Equity Method and Joint Ventures (“ASC 323”), and is included in Other assets on the consolidated balance sheets.

License and Supply Agreement with Cresilon, Inc.

On December 30, 2024 (the “Effective Date”), the Company entered into a License and Supply Agreement with Cresilon, Inc. Under the terms of this agreement, Cresilon will manufacture and supply VETIGEL^® Hemostatic Gel and related products (the “Products”) to the Company, ensuring the Products materially conform to agreed specifications.

The agreement grants the Company a perpetual, royalty-bearing exclusive license to promote, market, and sell VETIGEL Products in the United States and, upon regulatory approval, Japan, as well as a non-exclusive license for global markets outside these territories. Both licenses include sublicensing rights but exclude any rights to manufacture the Products. Additionally, the Company received a non-exclusive, transferable trademark license to use Cresilon trademarks solely for the sale and importation of VETIGEL Products.

As part of this agreement, the Company is required to make the following considerations:

● $1,500 in an up-front license fee, due upon execution of the Agreement, which was paid during the year-ended December 31, 2024;

● $1,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $3,000 (provided this occurs within five years of the Effective Date);

● $1,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $5,000 (provided this occurs within five years of the Effective Date);

● $2,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $10,000 (provided this occurs within five years of the Effective Date);

21

Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

● Royalties on Net Sales less amounts paid to Cresilon for the Products (“Cresilon Net Sales”), ranging from 5% to 15%, depending on territory and patent status;

● A Minimum Royalty obligation (beginning in the second calendar year following the Effective Date), consisting of: (a) a royalty based on at least $1,000 in Cresilon Net Sales; and (b) a shortfall payment based on the number of Products  manufactured by Cresilon to meet that threshold but not purchased by the Company during the applicable calendar year.

Agreement with Oxford Science, Inc.

On March 4, 2026, the Company entered into an agreement with Oxford Science Inc. to acquire certain assets which will be useful in the development and expansion of its product offerings. As part of this agreement, the Company was required to make an upfront payment of $250, which was paid during the three months ended March 31, 2026, and is required to make aggregate payments of $1,750, contingent on future development milestones.

15. Segment Information

The Company’s operations are comprised of three reportable segments:

● Diagnostics, which consists of TRUFORMA^®, VETGuardian^®, and TRUVIEW^® products;

● Therapeutic Devices, which consists of Assisi^®, PulseVet^®, and VETIGEL^® products; and

● Developmental Services, which consists of contract manufacturing and engineering services, including Cell-Guardian.

The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer who has ultimate responsibility for enterprise decisions. Segment information is used by the CODM to evaluate financial performance and to make strategic decisions related to resource allocation and operational focus across the segments. The CODM does not assess individual expense line items beyond cost of goods sold, nor does the CODM evaluate additional financial measures or allocate assets at the segment level.

Although our reportable segments provide similar products, each one is managed separately to better align with the Company’s customers and distribution / development partners. The CODM determines resource allocation for, and monitors performance of, the consolidated enterprise, which includes the Diagnostics, Therapeutic Devices and Development Services segments. The CODM relies on internal segment reporting that analyzes results on certain key performance indicators, namely, revenues, cost of goods sold, and gross profit. Cost of goods sold is the only significant expense evaluated at the segment level, as it is critical for assessing gross profit and segment performance. Costs below gross profit, such as operating expenses, are not allocated to the segments, nor are asset groupings, except for the purpose of periodic impairment analysis.

The following is a reconciliation of consolidated revenue, cost of revenue, and gross profit amongst our reportable segments for the three months ended March 31, 2026 and 2025:

	Three Months Ended March 31,
	Diagnostics				Therapeutic Devices				Development Services				Consolidated
	2026		2025		2026		2025		2026		2025		2026		2025
Net revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500
Cost of revenue		615		557		1,773		1,536		927		-		3,315		2,093
Gross profit	$	351	$	2	$	4,048	$	4,405	$	1,085	$	-	$	5,484	$	4,407

For the three months ended March 31, 2026, revenue from external customers in the U.S. was $7,383 and from customers in foreign countries was $1,416, compared to $5,053 and $1,447, respectively, for the same period in 2025.

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Zomedica Corp.
Notes to the Condensed Consolidated Financial Statements
(United States Dollars in Thousands)

16. Loss Per Share

	Three Months Ended March 31,
	2026		2025
Numerator
Net loss for the period	$	(4,534)	$	(63,809)
Denominator
Weighted-average shares - basic		979,949,668		979,949,668
Loss per share - basic and diluted	$	(0.00)	$	(0.07)

As of March 31, 2026 and 2025, the Company had stock options outstanding of 94,388,471 and 91,830,136, respectively, and warrants outstanding of 32,000,000 and 32,561,418, respectively. These securities could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted loss per share in the periods presented, as their effect would be anti-dilutive.

17. Subsequent Events

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of March 31, 2026 for items that could potentially be recognized or disclosed in these financial statements. We did not identify any items which would require disclosure in or adjustment to the consolidated financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATION

(All amounts are expressed in thousands unless otherwise indicated)

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to help the reader understand the results of operations and financial condition of the Company. The Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and notes thereto for the quarter ended March 31, 2026. This report contains forward-looking statements or forward-looking information (collectively, “forward-looking statements”) made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, as well as the safe harbor provisions of applicable Canadian securities legislation, that are based on management’s beliefs and assumptions and involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.

Forward-looking statements can also be identified by words such as “future”, “anticipates”, “believes”, “projects”, “estimates”, “expects”, “intends”, “plans”, “predicts”, “will”, “should”, “would”, “could”, “can”, “may”, or similar terms. Forward-looking statements are not guarantees of future performance and Zomedica’s actual results may differ significantly from the results discussed in the forward-looking statements. Zomedica cautions that these statements are subject to numerous important risks, uncertainties, assumptions, and other factors, some of which are beyond Zomedica’s control. These risks could cause Zomedica’s actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to adverse macroeconomic conditions; geopolitical tensions; laws and policies resulting from change in federal government administration; impact of trade tarrifs; changes in consumer confidence and spending in response to economic volatility; our ability to develop and commercialize our products; our ability to integrate our acquisitions successfully into our business; supply chain disruptions that increase our costs and impair our ability to manufacture our products; our ability to attract and keep senior management and key scientific personnel; our ability to obtain and maintain intellectual property protection; the accuracy of our estimates regarding expenses, future revenues, and capital requirements; and the “Risk Factors” described in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”). The foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or risk factors that we are faced with that may cause our actual results to differ from those anticipated in our forward-looking statements.

Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no duty to update any of these forward-looking statements after the date of this Form 10-Q to conform our prior statements to actual results or revised expectations, except as required by applicable law.

Components of Revenue and Costs and Expenses

Revenue

Our revenue consisted of consumables sold in the U.S. and internationally associated with our Assisi^® products; capital and consumables sold in the U.S and internationally associated with our PulseVet^® platform; consumables sold in the U.S and internationally associated with our TRUFORMA^® platform; subscriptions and services sold in the U.S. associated with our TRUVIEW^® products; capital and service agreements sold in the U.S. and internationally associated with our VETGuardian^® products; consumables sold in the U.S. and internationally associated with our VETIGEL^® products; contract manufacturing of Cell-Guardian, a non-animal health product; and contract manufacturing and engineering services and consumables and capital sold in the U.S.

Cost of Revenue

Cost of revenue consisted primarily of the cost of raw materials, labor and overhead used in the assembly of: PulseVet^® capital and consumables; TRUFORMA^® capital and consumables; Assisi^® consumables; TRUVIEW^® capital and consumables; VETGuardian^® capital and services; VETIGEL^® consumables sourced under our supply arrangement with Cresilon, Inc.; and labor cost associated with contract manufacturing and engineering services. We expense all inventory obsolescence provisions related to normal manufacturing changes as cost of revenue.

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Operating Expenses

Our current operating expenses consist of three components — general and administrative expenses, research and development expenses, and selling and marketing expenses.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries, wages, stock-based compensation, and overhead costs incurred to support our business as a publicly traded company. The functions involved include Accounting, Business Development, Finance, Human Resources, Information & Innovation Technology, Investor Relations, Legal, and portions of other functional areas. Included within these support costs are significant public company expenses such as stock exchange fees, annual meeting expenses, audit, tax, Sarbanes-Oxley, and other compliance costs.

Research and Development Expenses

Research and development (“R&D”) expenses consist of salaries and related expenses for R&D personnel, fees paid to consultants and outside service providers, travel costs, and materials used in clinical trials and general R&D. These costs are primarily focused on leveraging our acquisition of Qorvo Biotechnologies, LLC into new assay development for our TRUFORMA^® platform, expanding capabilities and usability within existing products, and exploring new market opportunities.

Selling and Marketing Expenses

Selling and marketing expenses consist of personnel costs, including salaries and related benefits, as well as costs associated with sales and marketing activities including conference and tradeshow attendance, sponsorships, and general advertising and promotional activities.

Canadian Taxes

In Canada, due to the uncertainty of realizing any tax benefits as of March 31, 2026, we continue to record a full valuation allowance against our Canadian deferred tax assets.

Translation of Foreign Currencies

The functional currency, as determined by management, for our subsidiaries in the United States, Switzerland, and Canada is the U.S. dollar, which is also our reporting currency.

The functional currency, as determined by management, for our Japanese subsidiary is the Japanese Yen. Japanese Yen is translated for financial reporting purposes with translation gains and losses recorded as a component of other comprehensive income or loss.

Stock-Based Compensation

Stock-based compensation expense is recognized for awards granted to employees and directors based on the fair value of the awards on the grant date. The Company’s stock-based compensation includes stock options, which are classified as equity awards, and SARs, which are classified as liability awards.

Equity-Classified Awards (Stock Options)

We measure the cost of equity-settled transactions by reference to the fair value of the equity instruments at the grant date. The fair value of stock options is calculated using the Black-Scholes Option Pricing Model and recognized as compensation expense over the vesting period of the award using the graded vesting method. Since our stock-based compensation plans do not require settlement in cash or other assets, stock options are classified as equity awards.

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Compensation expense recognized during the period reflects the fair value of stock-based payment awards that are ultimately expected to vest. We account for forfeitures of employee awards as they occur. The expected term of stock options, which represents the period the options are expected to remain outstanding, is estimated based on the average term of the options. The risk-free interest rate is based on the U.S. treasury yield curve at the time of grant for the expected term. We assume a zero dividend yield at the date of grant, as we do not anticipate paying dividends in the foreseeable future. The expected volatility used in valuing stock options is calculated based on the historical price of the Company’s stock. Changes in volatility would result in a corresponding increase or decrease in the fair value of the options.

Liability-Classified Awards (SARs)

The Company accounts for SARs as liability-classified awards because they are settled solely in cash and do not result in the issuance of equity. The fair value of SARs is initially measured at the grant date and subsequently remeasured at each reporting date until settlement. The fair value of SARs is calculated using the Black-Scholes Option Pricing Model and recognized as compensation expense over the vesting period of the award using the straight-line method. Changes in fair value are recognized as compensation expense in the consolidated statement of operations during the period of remeasurement based on the proportion of the vesting period that has elapsed. The expected term of SARs, which represents the period the SARs are expected to remain outstanding, is estimated based on the average term of the SARs. The risk-free interest rate is based on the U.S. treasury yield curve at the time of valuation for the expected term. We assume a zero-dividend yield, as we do not anticipate paying dividends in the foreseeable future. The expected volatility used in valuing SARs is calculated based on the historical price of the Company’s stock. Changes in volatility would result in a corresponding increase or decrease in the fair value of the SARs.

Upon exercise, SAR participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the SAR. Since SARs are remeasured at each reporting date, volatility in the Company’s stock price may lead to fluctuations in the recognized compensation expense and recorded liability.

Loss Per Share

Basic loss per share, or EPS (earnings per share), is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options, warrants and convertible securities are excluded from diluted EPS if the effect of such inclusion would be anti-dilutive.

Comprehensive Loss

Our comprehensive loss is reported in accordance with ASC 220, Income Statement — Reporting Comprehensive Income (“ASC 220”). Comprehensive loss is net loss plus certain items that are recorded directly to shareholders’ equity.

Critical Accounting Policies and Significant Judgments and Estimates

Our management’s discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. The preparation of our consolidated financial statements and related disclosures requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue, costs and expenses, and related disclosures during the reporting periods. On an ongoing basis, we evaluate our estimates and judgments, including those described below. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

While our significant accounting policies are more fully described in Note 3 of the notes to our consolidated financial statements included within our 2025 Form 10-K, management has identified the following as “Critical Accounting Policies and Estimates”: Intangible Assets and Business Combinations; Impairment Testing; Valuation and Payback of Property and Equipment; and Revenue Recognition and Liabilities Due to Customers. We believe that the estimates and assumptions involved in these accounting policies may have the greatest potential impact on our financial statements.

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Impairment Testing

Prior to fully impairing goodwill during the first quarter of 2025, we evaluated goodwill for impairment annually or more frequently when an event occurs or circumstances change indicating the carrying value may not be recoverable. When testing goodwill for impairment, we would first assess qualitative factors to determine if it is more likely than not the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, we considered the impact of changes, if any, to the following factors: macroeconomic industry and market factors; cost factors; changes in overall financial performance; and any other relevant events and uncertainties impacting a reporting unit. If our qualitative assessment indicated a goodwill impairment is more likely than not, we performed additional quantitative analyses. We may also elect to skip the qualitative testing and proceed directly to the quantitative testing. For reporting units where a quantitative analysis was performed, we performed a test measuring the fair values of the reporting units and comparing them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, an impairment was recognized for the difference, up to the carrying amount of goodwill.

We estimated the fair values of our reporting units using a discounted cash flow method or a weighted combination of discounted cash flows and a market-based method. The discounted cash flow method includes assumptions about a wide variety of internal and external factors. Significant assumptions used in the discounted cash flow method include financial projections of free cash flow, including revenue trends, medical costs trends, operating productivity, income taxes and capital levels; long-term growth rates for determining terminal value beyond the discretely forecasted periods; and discount rates. Financial projections and long-term growth rates used for our reporting units will be consistent with, and use inputs from, our internal long-term business plan and strategies.

Discount rates will be determined for each reporting unit and include consideration of the implied risk inherent in their forecasts. Our most significant estimate in the discount rate determinations involves our adjustments to the peer company weighted average costs of capital reflecting reporting unit-specific factors. We do not make any adjustments to decrease a discount rate below the calculated peer company weighted average cost of capital for any reporting unit. Company-specific adjustments to discount rates are subjective and thus are difficult to measure with certainty.

The passage of time and the availability of additional information regarding areas of uncertainty with respect to the reporting units’ operations could cause these assumptions to change in the future. Additionally, as part of our quantitative impairment testing, we perform various sensitivity analyses on certain key assumptions, such as discount rates, cash flow projections, and peer company multiples to analyze the potential for a material impact. The market-based method requires determination of an appropriate peer group whose securities are traded on an active market. The peer group is used to derive market multiples to estimate fair value.

During the first quarter of 2025, the Company determined that a triggering event occurred, which required interim testing for impairment in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). The triggering event was related to the Company’s market capitalized value, which is a function of its stock price, which had reduced significantly subsequent to the delisting of the Company’s common shares from NYSE American during the three months ended March 31, 2025. We elected to perform a quantitative analysis as part of our interim goodwill impairment test. Our analysis of the PulseVet reporting unit indicated that its carrying amount, including goodwill, exceeded its fair value by approximately 163%. Our analysis of the Assisi reporting unit indicated that its carrying amount, including goodwill, exceeded its fair value by approximately 128%. As part of the Company’s quantitative analysis, we updated our implied fair value calculations to more closely align with our reduced market capitalization as of March 31, 2025. As a result, a non-cash goodwill impairment charge of $45,556 was recorded for the three months ended March 31, 2025. Given that no goodwill remained on our consolidated balance sheets after March 31, 2025, there were no further impairment considerations for the three months ended March 31, 2026.

In connection with our interim impairment analysis during the first quarter of 2025, the Company also evaluated its amortizable intangible assets for recoverability in accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”). It was determined that the carrying values of certain intangible assets exceeded their fair values, which were impacted by the same factors noted in the goodwill impairment analysis. As a result, the Company recognized $8,296 in non-cash impairment charges related to these amortizable intangible assets. During the three months ended March  31, 2026, no impairment indicators were identified, which would require a recoverability assessment of intangible assets under ASC 360.

Additionally, as part of the interim impairment analysis the Company evaluated its property and equipment for recoverability under ASC 360. Based on this assessment, it was determined that certain property and equipment assets were not fully recoverable due to the same triggering event described above. As a result, the Company recognized a non-cash impairment charge of $1,981 related to property and equipment during the three months ended March 31, 2025. During the three months ended March 31, 2026, no impairment indicators were identified requiring a recoverability assessment of property and equipment under ASC 360.

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While the Company continues to believe its estimates of fair value for its amortizable intangible assets and property and equipment are reasonable, changes in assumptions concerning future financial performance, increases in discount rates, or other market and operational factors could negatively impact the recoverability of these assets. As a result, the Company may be required to recognize additional impairment charges related to its amortizable intangible assets or property and equipment in future periods.

Valuation and Payback of Property and Equipment

Diagnostic based TRUFORMA^® capital is placed in fixed assets once purchased or manufactured, where they remain, undepreciated, until they are placed with our customers under the agreement that they will repeatedly purchase consumables or services which are utilized within. Each instance of this placed capital represents an asset that we own. An estimate is made of the anticipated future revenue over its respective life which is ten years. If the payback period of the initial investment in the asset is less than the ten-year life of the asset, we conclude that the assets have been properly recorded, and no write-down is necessary. We rely on various data points and assumptions, including, but not limited to, the expected volume of consumables which will be sold, anticipated growth rates, and anticipated placements. Realization of the anticipated revenue is dependent on the current assumptions and forecasted models.

The customer is obligated to purchase consumables during the placement period. However, since the customer is not obligated to purchase the capital, and can return it at any time, we are exposed to a risk of loss to the extent the customer returns the capital and discontinues consumable or related service purchases.

As of March 31, 2026, the carrying value of our Diagnostic instruments was $9,402. Significant assumptions included in the realization model are the rate of placement and expected utilization over the life of the instrument. A 25% reduction in the estimated revenues associated with annual placements of instruments would increase the payback period from 3.64 years to 5.04 years as of March 31, 2026.

Revenue Recognition

The nature of our Therapeutic Device business segment gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. When revenue is recognized, a simultaneous adjustment for returns is estimated, reducing revenue. Estimated return credits are presented as a reduction to gross sales with the corresponding reserve presented as customer contract liabilities.

Variable consideration related to unused shock credits is calculated using the expected value method, which estimates the amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Estimates of variable consideration are based upon historical experience and known trends. These estimated credits are non-refundable and may only be used towards the purchase of future trode refurbishments. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, enabling the customer to always have a trode on hand with ample capacity to perform treatments.

The number of trodes returned by year is tracked against the number of trodes sold in that same year, creating a current experience rate. It is assumed that the ultimate return rate for the trodes is 98%. For annual calculations, it is assumed that the expected returns in the current year for each layer increase to the experience rate of the year immediately preceding it. Once the 98% is reached the layer is removed from the calculation. The annual incremental change in expected returns is multiplied by an average return credit amount, generating the current liability due to customers.

The average return credit is calculated by dividing the actual shock credits issued by the actual number of trodes returned. A variance in the assumed return rate compared to the actual rate would impact the estimate and potentially understate net sales (overestimated rate) or overstate net sales (underestimated rate) in any given year and create a corresponding misstatement of the liability due to customers.

Results of Consolidated Operations

Our results of operations for the three months ended March 31, 2026 and 2025 are as follows:

Revenue

Revenue for the three months ended March 31, 2026 was $8,799, compared to $6,500 for the three months ended March 31, 2025, an increase of $2,299, or 35%.

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The increase in revenue for the three months ended March 31, 2026, was primarily due to contract manufacturing and engineering revenue recognized during the current period; growth in TRUFORMA^® products, including the impact of launching new assays since the end of the comparative period; growth in consumables sales in our existing PulseVet^® products; contract manufacturing of Cell-Guardian which the Company began in the current period; growth in our existing Assisi^® products; and growth in our existing VETIGEL^® products. In general, we expect revenue to increase in subsequent periods as we increase our sales, marketing, and commercialization efforts.

Cost of Revenue

Cost of revenue for the three months ended March 31, 2026 was $3,315, compared to $2,093 for the three months ended March 31, 2025, an increase of $1,222, or 58%.

The increase in cost of revenue for the three months ended March 31, 2026, was primarily driven by increased manufacturing expense resulting from higher unit sales as well as increased salaries and wages associated with our manufacturing and engineering operations. We anticipate that costs of revenue will continue to increase in subsequent periods in accordance with increased unit sales as described above.

Gross Profit

Gross profit margin for the three months ended March 31, 2026 was 62%, compared to 68% for the three months ended March 31, 2025.

The decrease in gross profit margin percentage for the three months ended March 31, 2026, was primarily due to the impact of the change in product mix associated with our unit sales.

General and Administrative

General and administrative expense for the three months ended March 31, 2026 was $5,413, compared to $6,262 for the three months ended March 31, 2025, a decrease of $849, or 14%.

The decrease in general and administrative expense for the three months ended March 31, 2026, was primarily driven by lower wages and related benefits, lower general office expenses including those associated with our corporate office move in the prior year which did not recur, and lower amortization expense. While we expect future general and administrative expense to increase, we expect it to decrease proportionally relative to sales and related product expansion.

Research and Development

Research and development expense for the three months ended March 31, 2026 was $1,154, compared to $1,853 for the three months ended March 31, 2025, a decrease of $699, or 38%.

The decrease in research and development expense for the three months ended March 31, 2026, was primarily driven by lower wages and related benefits and lower external consulting and contracted development expenses following the successful launch of our new TRUFORMA^® assays and VETGuardian PLUS^TM during  the second half of 2025. We anticipate that research and development expense will continue to increase as we maintain and enhance our current product lines and develop new products.

Selling and Marketing

Selling and marketing expense for the three months ended March 31, 2026 was $3,817, compared to $5,007 for the three months ended March 31, 2025, a decrease of $1,190, or 24%.

The decrease in selling and marketing expenses for the three months ended  March 31, 2026 was primarily driven by lower wages and related benefits and a decrease in discretionary marketing spend. We expect future selling and marketing expense to increase in line with product expansion and growth in our commercialization efforts.

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Impairment Expense

There was no impairment expense recorded for the three months ended March 31, 2026. Impairment expense for the three months ended March 31, 2025 was $55,833.

The impairment expense for the three months ended March 31, 2025 was due to impairment charges recognized as a result of a significant decline in the Company’s market capitalization following the delisting of its common shares from NYSE American. The impairment charges consisted of $45,556 related to goodwill, $8,296 related to amortizable intangible assets, and $1,981 related to property and equipment.

Net Loss

Net loss for the three months ended March 31, 2026 was $4,534 compared to a net loss of $63,809 for the three months ended March 31, 2025, a decrease of $59,275, or 93%.

The change in net loss for both comparative periods was attributed to the matters described above, particularly the significant impairment expense. We expect to continue to record net losses in future periods until such time as we have sufficient revenue from product sales to offset our operating expenses.

Cash Flows

The following table shows a summary of our cash flows for the periods set forth below:

	Three Months Ended March 31,
	2026		2025		Change
Cash used in operating activities	$	(5,257)	$	(6,648)	$	1,391	(21)%
Cash provided by investing activities		5,622		8,406		(2,784)	(33)%
Increase in cash and cash equivalents		365		1,758		(1,393)	(79)%
Effect of exchange rate changes on cash		(13)		58		(71)	(122)%
Cash and cash equivalents, beginning of period		9,017		7,021		1,996	28%
Cash and cash equivalents, end of period	$	9,369	$	8,837	$	532	6%

Net cash used in operating activities for the three months ended March 31, 2026 was $5,257 compared to $6,648 for the three months ended March 31, 2025, a decrease in cash used of $1,391, or 21%. The decrease in cash used in operating activities primarily resulted from the decrease in operating expenses noted above, excluding the impact of non-cash charges, including impairment expense. These decreases were partially offset by an increase in our trade receviables balances as of March 31, 2026.

Net cash provided by investing activities for the three months ended March 31, 2026 was $5,622 compared to $8,406 for the three months ended March 31, 2025, a decrease in cash provided of $2,784, or 33%. The decrease in cash provided by investing activities primarily resulted from lower securities matured in the current period and increased intangible investment, partially offset by decreased property and equipment capital expenditures.

Liquidity, Capital Resources, and Financial Condition

We have incurred losses and negative cash flows from operations since our inception in May 2015. As of March 31, 2026, we had an accumulated deficit of $304,307. We continue to fund our working capital requirements primarily through revenue generating activity and proceeds generated from our past sales of our equity and equity-related securities and the exercise of stock options and warrants.

As of March 31, 2026, the Company had working capital (defined as current assets minus current liabilities) of $51,471.

Short-Term Cash Requirements

We believe that our existing cash is sufficient to fund our expected short-term needs (defined as the next 12 months). We currently have fixed obligations in association with our building leases and quarterly inventory orders. We also have payment obligations associated with our on-going clinical studies, and we believe that we have sufficient cash to cover these requirements. We do not expect that our operations will require significant increases in our short-term cash needs, and our short-term cash requirements have not changed materially since the 2025 Form 10-K.

30

Long-Term Cash Requirements

We believe that our existing cash resources will be sufficient to fund our expected operational requirements for the long-term period (defined as beyond the next twelve months). We regularly evaluate our business plans and strategy. These evaluations often result in changes to our business plans and strategy, some of which may be material and significantly change our cash requirements. Ongoing business development activity may also require us to use some of our liquidity and use of additional capital to fund newly acquired operations. If we raise additional funds by issuing equity securities, our existing security holders will likely experience dilution, and the incurring of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that could restrict operations.

Our future capital requirements depend on many factors, including, but not limited to:

● the costs and timing of our development and commercialization activities;

● the cost of manufacturing our existing and future products;

● the cost of marketing and selling our existing and future products including marketing, sales, service, customer support and distribution costs;

● the expenses needed to attract and retain skilled personnel;

● the costs associated with being a public company;

● the costs associated with additional business development or mergers and acquisitions activity, including acquisition-related costs, earn-outs or other contingent payments and costs of developing and commercializing any technologies to which we obtain rights;

● third-party costs associated with the development and commercialization of our existing and future products and the ability of our development partners to satisfy our requirements on a timely basis;

● the scope and terms of our business plans from time to time, and our ability to realize upon our business plans; and

● the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing possible patent claims, including litigation costs and the outcome of any such litigation.

The Company’s long-term cash requirements have not changed materially since the 2025 Form 10-K.

U.S. Taxes

As of March 31, 2026, we had deferred tax assets for net operating loss carryforwards for U.S. federal income tax purposes of $22,154 and non-capital loss carryforwards for Canada of $9,644, which will begin to expire in fiscal year 2035. We have evaluated the factors bearing upon the realizability of our deferred tax assets, which are comprised principally of net operating loss carryforwards and non-capital loss carryforwards. In 2021, we concluded that, due to the limitations under Section 382, our U.S. federal income tax net operating loss carryforwards, as well as R&D credit carryforwards, for the periods prior to February 11, 2021 have been limited to zero. We therefore have derecognized $3,814 of this asset, reducing the carryforward of these amounts to $18,340.

Climate Change

Increased public awareness and concern about climate change will likely continue to (1) generate more regional and/or national requirements to reduce greenhouse gas emissions; (2) increase energy efficiency and reduce carbon pollution; and (3) cause a shift to cleaner and more sustainable sources of energy which may be more expensive than using fossil fuels as an energy source.

The potential impact of climate change on our operations and the needs of our customers remains uncertain. Scientists have proposed that the impacts of climate change could include changes in rainfall patterns, water shortages, changes to the water levels of lakes and other bodies of water, changing storm patterns, more intense storms and changing temperature levels. These changes could be severe and vary by geographic location. Climate change may also affect the occurrence of certain natural events, the incidence and severity of which are inherently unpredictable.

31

The effects of climate change also may impact our decisions to construct new buildings or maintain existing facilities in any areas that are or become prone to physical risks, which could similarly increase our operating costs. We could also face indirect financial risks passed through the supply chain that could result in higher prices for resources, such as energy. Additionally, climate change may adversely impact the demand, price and availability of property and casualty insurance that insures our physical assets. Due to significant economic variability associated with future changing climate conditions, we are unable to predict the impact climate change will have on us in the future.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Evaluation of our disclosure controls

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized, and reported within the specified time periods and accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer, as appropriate to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report was made under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer.

Based upon that evaluation, our principal executive officer and principal financial and accounting officer concluded that our disclosure controls and procedures were effective as of March 31, 2026.

Changes in Internal Control Over Financial Reporting

During the three months ended March 31, 2026 there were no changes to our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

Item 1A. Risk Factors.

There have been no material changes in our risk factors from those previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.

32

Item 6. Exhibits.

The exhibits listed on the accompanying index to exhibits immediately preceding the exhibits are filed as part of, or hereby incorporated by reference into, this Quarterly Report.

EXHIBIT INDEX

Exhibit  No.	Description
31.1**	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**	Certification of Vice President of Finance and Corporate Controller, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer and Vice President of Finance and Corporate Controller, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.
101.INS	Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL (1).
101.SCH	Inline XBRL Taxonomy Extension Schema Document (1).
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (1).
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (1).
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (1).
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (1).
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.1)

** Filed herewith

33

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 6, 2026.

Zomedica Corp.
By:	/s/ Larry Heaton
Name:	Larry Heaton
Title:	Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Michael Zuehlke
Name:	Michael Zuehlke
Title:	Vice President of Finance and Corporate Controller
	(Principal Financial and Accounting Officer)

34

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Larry Heaton, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the three months ended March 31, 2026, of Zomedica Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2026

/s/ Larry Heaton

Larry Heaton

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Zuehlke, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the three months ended March 31, 2026, of Zomedica Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 6, 2026

/s/ Michael Zuehlke

Michael Zuehlke

Vice President of Finance and Corporate Controller

(Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF

THE CHIEF EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002, 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q of Zomedica Corp. (the “Company”) for the three months ended March 31, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned Larry Heaton, Chief Executive Officer of the Company, and Michael Zuehlke, Vice President of Finance and Corporate Controller of the Company, hereby certify, to the knowledge of the undersigned, pursuant to 18 U.S.C. Section 1350, that:

(1) The Report fully complies with the requirements of Section13(a)or 15(d)of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 6, 2026

/s/ Larry Heaton

Larry Heaton

Chief Executive Officer

(Principal Executive Officer)

Date: May 6, 2026

/s/ Michael Zuehlke

Michael Zuehlke

Vice President of Finance and Corporate Controller

(Principal Financial and Accounting Officer)

This Certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Report, irrespective of any general incorporation language contained in such filing.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares	3 Months Ended
	Mar. 31, 2026	May 06, 2026
Cover Page
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2026
Document Transition Report	false
Securities Act File Number	001-38298
Entity Registrant Name	Zomedica Corp.
Entity Incorporation, State or Country Code	Z4
Entity Tax Identification Number	00-0000000
Entity Address, Address Line One	1101 Technology Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Ann Arbor
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48108
City Area Code	734
Local Phone Number	369-2555
Title of 12(b) Security	Common Shares
Trading Symbol	ZOMDF
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		979,949,668
Entity Central Index Key	0001684144
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 9,369	$ 9,017
Available-for-sale securities	38,138	44,239
Trade receivables, net	4,428	3,012
Inventory, net	5,875	5,545
Prepaid expenses and deposits	1,846	1,787
Other receivables	373	443
Total current assets	60,029	64,043
Prepaid expenses and deposits	131	152
Property and equipment, net	20,459	20,912
Right-of-use assets	1,863	2,023
Goodwill		0
Intangible assets, net	37,975	38,808
Other assets	1,076	1,101
Total assets	121,533	127,039
Current liabilities
Accounts payable	2,200	1,718
Accrued income taxes	190	252
Current portion of lease obligations	715	717
Customer contract liabilities	352	368
Accrued expenses and other current liabilities	5,101	6,394
Total current liabilities	8,558	9,449
Lease obligations	1,296	1,467
Deferred tax liabilities, net	45	27
Customer contract liabilities	273	232
Other liabilities	416	467
Total liabilities	10,588	11,642
Commitments and contingencies (Note 14)
Shareholders' equity
Unlimited common shares, no par value; 979,949,668 issued and outstanding at March 31, 2026 and December 31, 2025	380,973	380,973
Additional paid-in capital	34,176	34,037
Accumulated deficit	(304,307)	(299,773)
Accumulated comprehensive income	103	160
Total shareholders' equity	110,945	115,397
Total liabilities and shareholders' equity	$ 121,533	$ 127,039

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2026	Dec. 31, 2025
Consolidated Balance Sheets
Unlimited common shares	Unlimited	Unlimited
Common Shares, no par value (in dollars per share)	$ 0	$ 0
Common Shares, issued (in shares)	979,949,668	979,949,668
Common Shares, outstanding (in shares)	979,949,668	979,949,668

XML

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Consolidated Statements of Operations and Comprehensive Loss
Net revenue	$ 8,799	$ 6,500
Cost of revenue	3,315	2,093
Gross profit	5,484	4,407
Expenses
General and administrative	5,413	6,262
Research and development	1,154	1,853
Selling and marketing	3,817	5,007
Impairment expense		55,833
Loss from operations	(4,900)	(64,548)
Interest income	455	730
Loss on disposal of assets	(15)	(8)
Other expense	(26)	(44)
Foreign exchange (loss) income	(9)	4
Loss before income taxes	(4,495)	(63,866)
Income tax expense (benefit)	39	(57)
Net loss	(4,534)	(63,809)
Unrealized loss, change in fair value of available-for-sale securities, net of tax	(43)	(18)
Change in foreign currency translation	(14)	62
Net loss and comprehensive loss	$ (4,591)	$ (63,765)
Weighted average number of common shares - basic (in shares)	979,949,668	979,949,668
Loss per share - basic (in dollars per share)	$ 0	$ (0.07)
Loss per share - diluted (in dollars per share)	$ 0	$ (0.07)

XML

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Comprehensive Income	Total
Balance, amount at Dec. 31, 2024	$ 380,973	$ 32,518	$ (217,915)	$ 88	$ 195,664
Balance (in shares) at Dec. 31, 2024	979,949,668
Shareholders' Equity
Stock-based compensation		545			545
Net loss			(63,809)		(63,809)
Other comprehensive income (loss)				44	44
Balance, amount at Mar. 31, 2025	$ 380,973	33,063	(281,724)	132	132,444
Balance (in shares) at Mar. 31, 2025	979,949,668
Balance, amount at Dec. 31, 2025	$ 380,973	34,037	(299,773)	160	115,397
Balance (in shares) at Dec. 31, 2025	979,949,668
Shareholders' Equity
Stock-based compensation		139			139
Net loss			(4,534)		(4,534)
Other comprehensive income (loss)				(57)	(57)
Balance, amount at Mar. 31, 2026	$ 380,973	$ 34,176	$ (304,307)	$ 103	$ 110,945
Balance (in shares) at Mar. 31, 2026	979,949,668

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Cash flows from operating activities:
Net loss	$ (4,534)	$ (63,809)
Adjustments for:
Depreciation	519	521
Amortization - intangible assets	1,372	1,693
Impairment loss		55,833
Loss on disposal of property and equipment	15	8
Stock-based compensation	643	618
Noncash portion of rent benefit	(13)	(11)
Accretion/amortization of available-for-sale securities	(105)	(288)
Equity in loss of nonconsolidated entities	25	40
Deferred tax expense	18	(82)
Change in assets and liabilities, net of acquisitions:
Purchased inventory	(347)	(334)
Prepaid expenses and deposits	(39)	166
Trade receivables	(1,416)	854
Other receivables	94	156
Accounts payable	385	423
Accrued income tax	(53)	26
Accrued expenses and other current liabilities	(1,796)	(2,530)
Customer contract liabilities	25	20
Other liabilities	(50)	48
Net cash used in operating activities	(5,257)	(6,648)
Cash flows from investing activities:
Securities matured	6,135	8,806
Investment in property and equipment	(60)	(280)
Acquisition of intangibles	(453)	(120)
Net cash provided by investing activities	5,622	8,406
Increase in cash and cash equivalents	365	1,758
Effect of exchange rate changes on cash	(13)	58
Cash and cash equivalents, beginning of year	9,017	7,021
Cash and cash equivalents, end of period	9,369	8,837
Noncash activities:
Change in fair value of available-for-sale securities, net of tax	(43)	(18)
Property and equipment accrued for in accounts payable	3	44
Transfer of property and equipment into intangibles		39
Transfer of inventory into property and equipment	17	(37)
Intangible assets accrued for in accounts payable	131	61
Right-of-use assets obtained in exchange for operating lease obligations		1,056
Supplemental cash flow information:
Interest received on available-for-sale securities	$ 400	$ 591

XML

Nature of Operations

3 Months Ended

Mar. 31, 2026

Nature of Operations

Nature of Operations

1. Nature of Operations

Zomedica Corp. (“Zomedica” or the “Company”) is a veterinary health company creating products for companion animals by focusing on the unmet needs of clinical veterinarians. While prioritizing animal health, we also strategically leverage our existing manufacturing and engineering capabilities to provide development services beyond animal health. The Company consists of the parent company, Zomedica Corp., its wholly owned U.S subsidiary, Zomedica Inc., and the wholly owned subsidiaries of Zomedica Inc.

XML

Basis of Preparation

3 Months Ended

Mar. 31, 2026

Basis of Preparation

Basis of Preparation

2. Basis of Preparation
​

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. Intercompany transactions and balances between consolidated businesses have been eliminated. The accounting policies set out below have been applied consistently in the condensed consolidated financial statements.

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim reports. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary to present fairly the information required to be set forth therein. The Company’s management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (“2025 Form 10-K”).

XML

Significant Accounting Policies

3 Months Ended

Mar. 31, 2026

Significant Accounting Policies

Significant Accounting Policies

3. Significant Accounting Policies

Basis of Measurement

The condensed consolidated financial statements have been prepared on the historical cost basis except as otherwise noted.

Estimates and Assumptions

In preparing these condensed consolidated financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other outside sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur, and additional information is obtained. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements.

Functional and Reporting Currencies

The functional currency for Canada and our subsidiaries in the United States and Switzerland is U.S. dollars, which is also our reporting currency. The functional currency, as determined by management, for our Japanese subsidiary is Japanese Yen. Japanese Yen is translated for financial reporting purposes, with translation gains and losses recorded as a component of other comprehensive income or loss. In respect of transactions denominated in currencies other than the Company’s and its wholly owned operating subsidiaries’ functional currencies, the monetary assets and liabilities are remeasured at the period end rates. Revenue and expenses are measured at rates of exchange prevailing on the transaction dates. All exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations.

Recently Issued Accounting Pronouncements

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The ASU clarifies interim disclosure requirements and the applicability of Topic 270 and results in a comprehensive list of interim disclosures required by other standards. In addition, the ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.  The ASU updates the existing accounting standards over internal-use software capitalization to increase the operability of the recognition guidance considering different methods of software development. The ASU removes all references to prescriptive and sequential software development stages (referred to as “project stages”) and replaces it with a probable-to-complete recognition model. As part of this updated recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. This ASU is effective for annual reporting periods beginning after December 15, 2027, and for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures to disaggregate costs and expense line items presented on the face of the consolidated statements of operations and comprehensive loss. These disclosures include: (a) amounts related to purchased inventory, employee compensation, depreciation, amortization, and other significant components of costs and expenses; (b) an explanation of costs and expenses that are not disaggregated quantitatively; and (c) the definition and total amount of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public entities with fiscal years beginning after December 15, 2024. The Company adopted this guidance for the year ended December 31, 2025 and applied the guidance on a prospective basis. The adoption did not have a material impact on the consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient permitting an entity to assume the conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for the current classified accounts receivable and contract assets. The Company early adopted the standard during the year ended December 31, 2025 on a prospective basis. The adoption did not have a material impact on the consolidated financial statements.

Segment Reporting

The Company reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s reportable segments consist of Diagnostics, Therapeutic Devices, and Development Services.

Cash and Cash Equivalents

The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. As of March 31, 2026 and December 31, 2025, the Company's cash balances exceeded federally insured limits by approximately $766 and $916.

Investment Securities

Our investment securities, which are comprised of corporate bonds/notes and US treasuries, are accounted for in accordance with ASC 320, Investments – Debt Securities (“ASC 320”). The Company considers all of its securities for which there is a determinable fair market value, and there are no restrictions on the Company’s ability to sell within the next twelve months, as available for sale. We classify these securities as both current and non-current depending on their time to maturity. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported as a component of comprehensive loss.

Trade Receivables and Allowance for Credit Losses

Trade receivables are recorded net of an allowance for credit losses and have payment terms of 30-90 days. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries, and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. As of March 31, 2026,  December 31, 2025, and December 31, 2024, trade receivables were $4,606, $3,263, and $2,794, respectively, net of allowance for doubtful accounts of $178, $251, and $371, respectively. While we believe that our allowance for credit losses is adequate and represents our best estimate as of March 31, 2026, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to these estimates.

Inventories

Inventories are stated at the lower of cost or net realizable value. The Company utilizes the specific identification and First in, First out (“FIFO”) method to track inventory costs. The Company records reserves, when necessary, to reduce the carrying value of inventory to its net realizable value. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Property and Equipment

Property and equipment are carried at historical cost less accumulated depreciation and any accumulated impairment losses. Property and equipment acquired in a business combination are recorded at fair value as of the date of acquisition. Maintenance and repair expenditures that do not improve or extend the life are expensed in the period incurred. Depreciation is recognized so as to write off the cost less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Included in property and equipment is construction in progress (“CIP”), which consists of property and equipment that are purchased or constructed and require time before being ready for their intended use. CIP is recorded at acquisition cost, including directly attributable installation costs. No depreciation is recorded on CIP until assets are complete and ready for use, at which point CIP balances are transferred to the appropriate property and equipment accounts, and depreciation begins in accordance with our policy.

Intangible Assets

Definite-lived intangible assets include acquired customer relationships, developed technology, licenses, trademarks, and tradenames. These assets are capitalized and amortized on a straight-line basis over their estimated useful lives. Intangible assets acquired as part of a business combination are initially recorded at their estimated fair value as of the acquisition date, while all other intangible assets are capitalized at cost. The estimated useful lives and amortization methods are reviewed annually, with any changes applied prospectively.

Expenditures for the planning and ongoing operation of the Company’s website are expensed as incurred. Costs incurred for website application development and infrastructure enhancements are capitalized and amortized over their estimated useful life.

Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. These assets are not amortized but are assessed for impairment at least annually, or more frequently if events or circumstances indicate potential impairment.

Impairment of Long-Lived and Indefinite-Lived Intangible Assets

The Company evaluates long-lived assets, including property, equipment, and definite-lived intangible assets, for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. If the sum of estimated undiscounted future cash flows expected to be generated by an asset or asset group is less than its carrying value, an impairment loss is recognized. The impairment loss is measured as the excess of the asset’s carrying amount over its fair value.

Indefinite-lived intangible assets, including goodwill, are tested for impairment at least annually or when impairment indicators arise. If the carrying amount exceeds the fair value, an impairment loss is recognized.

During the first quarter of 2025, the Company identified a triggering event and recorded a material impairment charge related to certain long-lived and indefinite-lived intangible assets, including goodwill. See Note 10, Property and Equipment and Note 11, Goodwill and Intangible Assets, for further information.

Revenue Recognition

The Company enters into agreements which may contain multiple promises where customers purchase products, services, or a combination thereof. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires judgment. We determine the transaction price for a contract based on the total consideration we expect to receive in exchange for the transferred goods or services.

The Company allocates revenue to each performance obligation in proportion to the relative standalone selling prices and recognizes revenue when control of the related goods or services is transferred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the performance obligation when sold separately.

The Company's contracts with customers are generally comprised of purchase orders for the sale of the point of care instrument, consumable products, development services, and extended warranties, or some variation thereof. The instrument and consumables each represent a single performance obligation when sold separately, that is satisfied at a point in time upon transfer of control of the product to the customer which is typically upon receipt of the goods by the customer. The extended warranties are also a separate performance obligation, whereby revenue is recognized over time. Development services are recognized over time, as they do not create an asset with alternative use to us, and we have an enforceable right to payment for performance completed to date. ASC 606, Revenue from Contracts with Customers (“ASC 606”) contains a practical expedient whereby if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. The Company has elected to apply this practical expedient to our services revenue.

The Company also enters into contracts with customers where it receives payment for the consumable products and does not receive additional or separate consideration for the use of the point of care instrument furnished by the Company for the clinical veterinarian’s use. For these contracts, the Company considers the guidance under ASC 842, Leases (“ASC 842”), in order to determine if the furnishing of the point of care instrument to the customer during the period of use creates an embedded lease. If the point of care instrument is identified as a lease, it is classified as an operating lease as it does not meet any of the finance lease criteria per ASC 842. In these arrangements, the consumable products are classified as non-lease components. The Company allocates revenue to these lease and non-lease components based on standalone selling prices or, if not available, a cost-plus approach. Revenue related to the lease component is recognized ratably over the term of the contract. Revenue related to the non-lease components is recognized when control of the product has been transferred to the customer.

The nature of the Company’s PulseVet^® business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned.

Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are based upon historical experience and known trends. These estimated credits are nonrefundable and may only be used towards the purchase of future trode refurbishments. These credits give rise to the contract liability contained on the balance sheet. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode on hand with ample capacity to perform treatments. As of March 31, 2026, December 31, 2025 and December 31, 2024, contract liabilities were $625, $600, and $550, respectively.

Sales are recorded net of sales tax. Sales tax is charged on sales to end users and remitted to the appropriate state authority.

Disaggregated revenue for the three months ended March 31, 2026 and 2025 is as follows:

		Three Months Ended March 31,
		Diagnostics				Therapeutic Devices				Development Services				Consolidated
		2026		2025		2026		2025		2026		2025		2026		2025
Capital	$	167	$	156	$	1,433	$	1,800	$	374	$	-	$	1,974	$	1,956
Consumables		799		403		4,369		4,094		302		-		5,470		4,497
Engineering		-		-		-		-		1,244		-		1,244		-
Other		-		-		19		47		92		-		111		47
Total revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500

Cost of Revenue

Cost of goods sold consists of overhead, materials, labor, shipping costs, and a portion of depreciation incurred internally to produce and receive the products or to provide services. Shipping and handling costs incurred by the Company are included in cost of revenue.

Research and Development

Research and development costs related to continued research and development programs are expensed as incurred.

Stock-based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation, (“ASC 718”). Stock-based compensation expense is recognized for awards granted to employees and directors based on the fair value of the awards on the grant date. The Company’s stock-based compensation includes stock options, which are classified as equity awards, and stock appreciation rights (SARs), which are classified as liability awards.

The Company calculates stock-based compensation for stock options using the fair value method. The fair value of stock options at the grant date is determined using the Black-Scholes Option Pricing Model. The resulting fair value is recognized as compensation expense over the vesting period of the award using the graded vesting method. The Company’s stock option plans do not require the settlement of awards by transferring cash or other assets. Therefore, stock options are classified as equity awards. Compensation expense recognized during the period reflects the fair value of stock-based payment awards that are ultimately expected to vest. In accordance with ASC 718, the Company recognizes forfeitures of employee awards as they occur.

The Company accounts for SARs under ASC 718 as liability-classified awards because they are settled solely in cash and do not result in the issuance of equity. The fair value of SARs is measured at the grant date and remeasured at each reporting date until settlement. Changes in fair value are recognized as compensation expense in the consolidated statements of operations and comprehensive loss in the period of remeasurement. The fair value of SARs is determined using the Black-Scholes Option Pricing Model, incorporating significant assumptions such as expected stock price volatility, expected term of the award, and risk-free interest rate.

SARs vest over the defined vesting period, and compensation expense is recognized based on the proportion of the vesting period that has elapsed. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the SAR.

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), on a tax jurisdictional basis. The Company files income tax returns in Canada and the province of Alberta and its subsidiaries file income tax returns in Switzerland, Japan, the United States and various states within, including in Michigan where the Company’s headquarters are located.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their financial statement reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized.

The Company assesses the likelihood of the financial statement effect of an uncertain tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in the United States, Canada, Japan, and Switzerland. The Company recognizes tax-related interest and penalties, if any, as a component separate from income tax expense.

Comprehensive Loss

Our comprehensive loss is reported in accordance with ASC 220, Income Statement — Reporting Comprehensive Income (“ASC 220”). Comprehensive loss is net loss plus certain items that are recorded directly to shareholders’ equity. The Company has recorded a currency translation adjustment associated with the translation of its Japanese subsidiary to the reporting currency.

Loss Per Share

Basic loss per share (“EPS”) is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options is excluded from diluted EPS if the effect of such inclusion would be anti-dilutive.

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Critical Accounting Judgments and Key Sources of Estimation Uncertainty

3 Months Ended

Mar. 31, 2026

Critical Accounting Judgments and Key Sources of Estimation Uncertainty

Critical Accounting Judgments and Key Sources of Estimation Uncertainty

4. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

The preparation of financial statements in accordance with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, and revenue and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and further periods if the revision affects both current and future periods.

Critical areas of estimation and judgements in applying accounting policies include the following:

Impairment Testing

Prior to fully impairing goodwill during the first quarter of 2025, we evaluated goodwill for impairment annually or more frequently when an event occurs or circumstances change indicating the carrying value may not be recoverable. When testing goodwill for impairment, we would first assess qualitative factors to determine if it is more likely than not the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, we considered the impact of changes, if any, to the following factors: macroeconomic, industry and market factors; cost factors; changes in overall financial performance; and any other relevant events and uncertainties impacting a reporting unit. If our qualitative assessment indicated a goodwill impairment is more likely than not, we performed additional quantitative analyses. We may also elect to skip the qualitative testing and proceed directly to the quantitative testing. For reporting units where a quantitative analysis is performed, we perform a test measuring the fair values of the reporting units and comparing them to their aggregate carrying values, including goodwill. If the fair value is less than the carrying value of the reporting unit, an impairment was recognized for the difference, up to the carrying amount of goodwill.

We estimated the fair values of our reporting units using a discounted cash flow method or a weighted combination of discounted cash flows and a market-based method. The discounted cash flow method includes assumptions about a wide variety of internal and external factors. Significant assumptions used in the discounted cash flow method include financial projections of free cash flow, including revenue trends, medical costs trends, operating productivity, income taxes and capital levels; long-term growth rates for determining terminal value beyond the discretely forecasted periods; and discount rates. Financial projections and long-term growth rates used for our reporting units will be consistent with, and use inputs from, our internal long-term business plan and strategies.

Discount rates were determined for each reporting unit and include consideration of the implied risk inherent in their forecasts. Our most significant estimate was the discount rate determinations involves our adjustments to the peer company weighted average costs of capital reflecting reporting unit-specific factors. We did not make any adjustments to decrease a discount rate below the calculated peer company weighted average cost of capital for any reporting unit. Company-specific adjustments to discount rates are subjective and thus are difficult to measure with certainty.

The passage of time and the availability of additional information regarding areas of uncertainty with respect to the reporting units’ operations could cause these assumptions to change in the future. Additionally, as part of our quantitative impairment testing, we performed various sensitivity analyses on certain key assumptions, such as discount rates, cash flow projections, and peer company multiples to analyze the potential for a material impact. The market-based method requires determination of an appropriate peer group whose securities are traded on an active market. The peer group is used to derive market multiples to estimate fair value.

Valuation and Payback of Property and Equipment

Diagnostic based TRUFORMA^® capital is placed in fixed assets once purchased or manufactured, where they remain, undepreciated, until they are placed with our customers under the agreement that they will repeatedly purchase consumables or services which are utilized within. Each instance of this placed capital represents an asset that we own. An estimate is made of the anticipated future revenue over its respective life which is ten years. If the payback period of the initial investment in the asset is less than the ten-year life of the asset, we conclude that the assets have been properly recorded, and no write-down is necessary. We rely on third-party data that considers various data points and assumptions, including, but not limited to, the expected volume of consumables which will be sold, anticipated growth rates, and anticipated placements. Realization of the anticipated revenue is dependent on the current assumptions and forecasted models.

Revenue Recognition

The nature of the Company’s business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are estimated based upon historical experience and known trends. These estimated credits are non-refundable and may only be used towards the purchase of future trode refurbishments. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode at hand with ample capacity to perform treatments.

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Investment Securities

3 Months Ended

Mar. 31, 2026

Investment Securities

Investment Securities

5. Investment Securities

The following represents the Company’s investment securities as of March 31, 2026 and December 31, 2025:

Balance at March 31, 2026		Acquisition Cost		Accretion / (Amortization)		Unrealized Gain / (Loss)		Estimated Fair Value
Commercial paper	$	4,903	$	56	$	(2)	$	4,957
Corporate notes / bonds		22,146		90		(31)		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		8,535		35		(3)		8,567
U.S. treasuries		3,661		(5)		(2)		3,654
Total investment securities	$	44,827	$	176	$	(38)	$	44,965

Balance at December 31, 2025		Acquisition Cost		Accretion / (Amortization)		Unrealized Gain / (Loss)		Estimated Fair Value
Commercial paper	$	4,888	$	34	$	—	$	4,922
Corporate notes / bonds		24,063		96		2		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		11,192		64		5		11,261
U.S. treasuries		4,881		11		(1)		4,891
Total investment securities	$	50,311	$	205	$	6	$	50,522

Accretion / (amortization) refers to the discounts and premiums incurred on bonds and notes purchased and are included within Interest income on the consolidated statements of operations and comprehensive loss.

Accrued interest receivable related to the above investment securities amounted to $282 and $314 as of March 31, 2026 and December 31, 2025, respectively, and is included in Other receivables on the consolidated balance sheets. The contractual maturities of investment securities as of March 31, 2026, are as follows:

		Acquisition Cost		Estimated Fair Value
Original maturities of 90 days or less	$	6,823	$	6,827
Original maturities of 91-365 days		38,004		38,138
Original maturities of 366+ days		-		-
Total investment securities	$	44,827	$	44,965

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Fair Value Measurements

3 Months Ended

Mar. 31, 2026

Fair Value Measurements

Fair Value Measurements

6. Fair Value Measurements

In accordance with FASB ASC 820, Fair Value Measurement (“ASC 820”), the Company measures its cash and cash equivalents and investments at fair value on a recurring basis. The Company also measures certain assets and liabilities at fair value on a non-recurring basis when applying acquisition accounting.

ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.

As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable inputs other than quoted prices included in Level 1 for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3: Unobservable data points for the assets or liability, and include situations where there is little, if any, market activity for the asset or liability. Valuations based on inputs that are unobservable and involve management judgement and the reporting entity’s own assumptions about market participants and pricing.

Cash and cash equivalents, trade receivable, and accounts payable: The carrying amount of these assets approximate fair value due to the short maturity of these instruments. Cash and cash equivalents include marketable securities with an original maturity within 90 days.

Available-for-sale securities: The Company classifies marketable securities and other highly liquid investments, with a maturity of greater than three months and that can be readily purchased or sold using established markets, as available-for-sale. These investments are reported at fair value on the Company’s consolidated balance sheets and unrealized gains and losses are reported as a component of shareholders’ equity.

Stock Appreciation Rights liability: The Company measures its cash-settled SARs at fair value on a recurring basis using a Black-Scholes option-pricing model. The liability, classified as Level 2 within the fair-value hierarchy, is reported at fair value on the Company’s consolidated balance sheets, and changes in fair value are recognized as compensation expense in the consolidated statements of operations and comprehensive loss in the period of remeasurement.

In accordance with the fair value hierarchy described above, the following table shows the fair value of our investments as of March 31, 2026 and December 31, 2025:

Balance at March 31, 2026		Level 1		Level 2		Level 3		Estimated Fair Value
Commercial paper	$	—	$	4,957	$	—	$	4,957
Corporate notes / bonds		—		22,205		—		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		8,567		—		—		8,567
U.S. treasuries		3,654		—		—		3,654
Total investment securities	$	17,803	$	27,162	$	—	$	44,965

Balance at December 31, 2025		Level 1		Level 2		Level 3		Estimated Fair Value
Commercial paper	$	—	$	4,922	$	—	$	4,922
Corporate notes / bonds		—		24,161		—		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		11,261		—		—		11,261
U.S. treasuries		4,891		—		—		4,891
Total investment securities	$	21,439	$	29,083	$	—	$	50,522

The following tables shows our investments as of March 31, 2026 and December 31, 2025 and their respective balance sheet classifications:

Balance at March 31, 2026		Cash & Cash Equivalents		Available- For-Sale (Current)		Available- For-Sale (Non-Current)		Estimated Fair Value
Commercial paper	$	1,245	$	3,712	$	—	$	4,957
Corporate notes / bonds		—		22,205		—		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		—		8,567		—		8,567
U.S. treasuries		—		3,654		—		3,654
Total investment securities	$	6,827	$	38,138	$	-	$	44,965

Balance at December 31, 2025		Cash & Cash Equivalents		Available- For-Sale (Current)		Available- For-Sale (Non-Current)		Estimated Fair Value
Commercial paper	$	—	$	4,922	$	—	$	4,922
Corporate notes / bonds		—		24,161		—		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		—		11,261		—		11,261
U.S. treasuries		996		3,895		—		4,891
Total investment securities	$	6,283	$	44,239	$	—	$	50,522

Unrealized gains and losses on our investments have not been recorded into income as we do not intend to sell nor is it more likely than not that we will be required to sell these investments prior to recovery of their amortized cost basis. The decline in fair value of our debt securities is largely due to the rising interest rate environment driven by current market conditions that have resulted in higher credit spreads. The credit ratings associated with our debt securities are mostly unchanged, are highly rated, and the debtors continue to make timely principal and interest payments. As a result, there were no credit or non-credit impairment charges recorded through March 31, 2026.

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Inventory

3 Months Ended

Mar. 31, 2026

Inventory

Inventory

7. Inventory

	March 31, 2026						December 31, 2025
	Diagnostics		Therapeutic Devices		Consolidated		Diagnostics		Therapeutic Devices		Consolidated
Raw materials	$	2,232	$	2,322	$	4,554	$	2,425	$	1,899	$	4,324
Finished goods		385		457		842		307		482		789
Purchased inventory		142		357		499		119		349		468
Total inventory		2,759		3,136		5,895		2,851		2,730		5,581
Less: reserves		(20)		—		(20)		(36)		—		(36)
Inventory, net	$	2,739	$	3,136	$	5,875	$	2,815	$	2,730	$	5,545

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Prepaid Expenses and Deposits

3 Months Ended

Mar. 31, 2026

Prepaid Expenses and Deposits

Prepaid Expenses and Deposits

8. Prepaid Expenses and Deposits

	March 31,		December 31,
	2026		2025
Deposits	$	394	$	208
Prepaid marketing		126		196
Prepaid insurance		333		437
Other		1,124		1,098
Total prepaid expenses and deposits	$	1,977	$	1,939

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Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2026

Accrued Expenses and Other Current Liabilities

Accrued Expenses and Other Current Liabilities

9. Accrued Expenses and Other Current Liabilities

	March 31,		December 31,
	2026		2025
Accrued employee compensation and benefits	$	2,182	$	3,865
Stock appreciation rights		1,574		1,071
Accrued taxes		757		856
Accrued professional services		362		403
Other		226		199
Total accrued expenses and other current liabilities	$	5,101	$	6,394

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Property and Equipment

3 Months Ended

Mar. 31, 2026

Property and Equipment

Property and Equipment

10. Property and Equipment

	March 31,		December 31,
	2026		2025
Machinery and equipment	$	15,827	$	15,556
Furniture and fixtures		169		169
Laboratory equipment		842		842
Leasehold improvements		2,847		2,847
Construction in progress		6,177		6,415
Total property and equipment		25,862		25,829
Less: accumulated depreciation		(5,403)		(4,917)
Property and equipment, net	$	20,459	$	20,912

Depreciation expense related to property and equipment is as follows:

	Three Months Ended March 31,
	2026		2025
Depreciation expense	$	519	$	521

During the first quarter of 2025, a significant decline in the Company’s market-capitalized value following the delisting of its common shares from NYSE American constituted a triggering event requiring interim impairment testing of goodwill. In connection with this assessment, the Company reviewed its property and equipment for recoverability under ASC 360, Property, Plant, and Equipment (“ASC 360”). That review determined that certain assets within the Diagnostics segment were not fully recoverable. As a result, the Company recognized a $1,981 impairment charge, of which $897 related to machinery and equipment and $1,084 related to construction in progress, and recorded this charge in the consolidated statements of operations and comprehensive loss for the three months ended March 31, 2025. There were no interim triggering events identified during the three months ened March 31, 2026.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2026

Goodwill and Intangible Assets

Goodwill and Intangible Assets

11. Goodwill and Intangible Assets

The following table provides a rollforward of the carrying amount of goodwill by segment:

	Diagnostics		Therapeutic Devices		Development Services		Total
Balance at December 31, 2024	$	—	$	45,556	$	—	$	45,556
Impairment		—		(45,556)		—		(45,556)
Balance at December 31, 2025	$	—	$	—	$	—	$	—

During the first quarter of 2025, the Company determined that a triggering event had occurred that required interim goodwill impairment analysis in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”), due to a significant decline in its market capitalization, driven by a substantial decrease in its stock price following the delisting of its common shares from NYSE American. The Company concluded that the fair values of certain reporting units were below their carrying values. The difference between the reporting units’ carrying values and fair values was recognized as impairment charges. The Company recognized $45,556 of non-cash impairment charges related to goodwill, which represented full impairments of goodwill in the PulseVet and Assisi reporting units within the Therapeutic Devices segment. As a result, no goodwill remains on the Company’s consolidated balance sheets as of December 31, 2025.

During the first quarter of 2025, the Company also evaluated its amortizable intangible assets for recoverability under ASC 360. It was determined that the carrying values of certain intangible assets exceeded their fair values. The decline in fair value was related to the same facts and circumstances as those noted above as part of our interim goodwill impairment analysis. The Company recognized $8,296 in non-cash impairment charges related to these amortizable intangible assets within the Diagnostics segment during the three months ended March 31, 2025, which consisted primarily of $7,060 related to technology assets and $763 related to customer relationships. All impairment charges are reported under Impairment expense in the consolidated statements of operations and comprehensive loss. There were no interim triggering events identified during the three months ended March 31, 2026.

The following table summarizes our intangible assets, net of accumulated amortization:

	March 31,		December 31,
	2026		2025
Computer software	$	3,394	$	3,348
Customer relationships		26,087		26,087
Licenses		9,642		9,542
Technology		18,240		17,990
Tradenames		2,787		2,787
Trademarks		16		16
Website		1,433		1,433
Intangibles under construction		232		89
Total intangibles		61,831		61,292
Less: accumulated amortization		(23,856)		(22,484)
Intangibles, net	$	37,975	$	38,808

Included within intangibles are $663 in licenses associated with future exclusivity to sell products should we determine that they have both market viability and are a complementary fit within our suite of offerings. As these relationships are still in the exploratory phase with no revenue stream to match expenses against nor a guarantee that this exclusivity will ever be used, we are considering these to be indefinite lived as of March 31, 2026. This, along with our intangible assets under construction, accounts for the difference between the net intangibles as found within our consolidated balance sheets and the amortization table below. We will continue to assess the commercialization status and relationship with these companies on a quarterly basis and will adjust our amortization schedules accordingly.

The estimated future amortization of intangible assets is as follows:

2026	$	3,878
2027		5,080
2028		4,828
2029		4,709
2030		4,588
Thereafter		13,997
Total	$	37,080

Amortization expense associated with intangible assets is as follows:

	Three Months Ended March 31,
	2026		2025
Amortization expense	$	1,372	$	1,693

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2026

Stock-Based Compensation

Stock-Based Compensation

12. Stock-Based Compensation

Stock Options

The Zomedica Amended and Restated Stock Option Plan (the “Plan”) was amended and restated on June 15, 2022, and provides incentives through the grant of stock options which may be granted to the directors, officers, employees of the Company, and consultants. The Plan is administered by the Board of Directors of the Company, and the aggregate number of shares reserved for issuance under the Plan shall not, at the time of the stock option grant, exceed ten percent of the total number of issued and outstanding shares (calculated on a non-diluted basis). If any stock options granted under this Plan shall expire or terminate for any reason without having been exercised in full, they shall be available for the purposes of granting new stock options under this Plan.

During the three months ended March 31, 2026 and 2025, the Company issued 2,450,000 and 6,975,000 stock options to purchase an aggregate of 2,450,000 and 6,975,000 common shares, respectively. These options vest over a period of four years and have an expiration period of 10 years.

The continuity of stock options for the three months ended March 31, 2026 and 2025 are as follows:

	Number of Options	Weighted-Average Exercise Price
Balance at December 31, 2025	94,338,469	$	0.2904
Stock options granted	2,450,000		0.1322
Stock options forfeited	2,041,248		0.1223
Vested stock options expired	358,750		0.1986
Balance at March 31, 2026	94,388,471	$	0.2902
Vested at March 31, 2026	68,894,689	$	0.3520

	Number of Options	Weighted-Average Exercise Price
Balance at December 31, 2024	89,051,943	$	0.3232
Stock options granted	6,975,000		0.1183
Stock options forfeited	351,250		0.1769
Vested stock options expired	3,845,557		0.3354
Balance at March 31, 2025	91,830,136	$	0.3077
Vested at March 31, 2025	55,036,523	$	0.3565

The Company recorded the following stock-based compensation expense associated with outstanding stock options:

	Three Months Ended March 31,
		2026		2025
Stock-based compensation expense	$	139	$	545

As of March 31, 2026, the total unrecognized compensation cost related to nonvested awards was $877, which is expected to be recognized over a weighted-average period of 2.6 years.

Cash-Settled Stock Appreciation Rights (“SARs”)

On August 12, 2024, the Board of Directors of the Company adopted the Zomedica Corp. 2024 Stock Appreciation Rights Plan (the “SAR Plan”). The SAR Plan is administered by the Board of Directors, which may delegate administration to a committee of the Board. Up to 10% of the issued and outstanding shares of common stock of the Company (calculated on a non-diluted basis) is available for the grant of SARs. Awards are settled solely in cash and do not result in the issuance of shares.

The Board determines the exercise price of each SAR, which must not be less than the fair market value of one share of common stock on the grant date, as well as the term and vesting provisions of each award. The term of a SAR may not exceed ten years. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price.

SARs granted to employees vest 25% on the first anniversary of the grant date, with the remainder vesting 1/48th per month over the next 36 months. SARs granted to non-employee directors vest 100% on the first anniversary of the grant date, subject to continuous service through the vesting date.

Following termination of service, vested SARs may generally be exercised within 90 days, or up to 12 months in the event of death or disability, but not beyond the expiration date of the SAR. The SAR Plan is subject to the terms outlined in individual grant agreements.

The continuity of SARs for the three months ended March 31, 2026 and 2025 is as follows:

	Number of SARs	Weighted-Average Exercise Price
Balance at December 31, 2025	26,890,832	$	0.12
Balance at March 31, 2026	26,890,832	$	0.12
Vested at March 31, 2026	13,521,379		0.13

	Number of SARs	Weighted-Average Exercise Price
Balance at December 31, 2024	13,521,379	$	0.13
Balance at March 31, 2025	13,521,379	$	0.13
Vested at March 31, 2025	—		—

As of March 31, 2026, unrecognized stock-based compensation expense related to non-employee director SARs was $753 and is expected to be recognized over a weighted-average period of approximately 0.6 years. During the three months ended March 31, 2026 and 2025, the Company recognized a compensation expense of $504 and $73, respectively, related to SARs. The carrying amount of the SAR liability, measured at fair value, was $1,574 as of March 31, 2026, and $1,071 as of December 31, 2025, and is presented within Accrued expenses and other current liabilities on the consolidated balance sheets.

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Income Taxes

3 Months Ended

Mar. 31, 2026

Income Taxes

Income Taxes

13. Income Taxes

The Company is in an overall domestic net deferred tax liability position for the three months ended March 31, 2026. Management has assessed that the future taxable income resulting from the deferred tax liability position will result in partial utilization of the Company's US federal and state net operating loss carryforwards and has therefore concluded a valuation allowance of $27,329 is currently necessary. Due to the uncertainty of realizing any tax benefits as of March 31, 2026 due to historical losses, a full valuation allowance remains necessary to fully offset our Canadian deferred tax assets.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2026

Commitments and Contingencies

Commitments and Contingencies

14. Commitments and Contingencies

From time to time, the Company may be exposed to claims and legal actions in the normal course of business. As of March 31, 2026, and continuing as of May 6, 2026, the Company is not aware of any pending or threatened material litigation claims against the Company.

Agreements with Qorvo Biotechnologies, LLC

On January 17, 2023, the Company entered into a series of agreements with Qorvo Biotechnologies, LLC. Other than the obligation to purchase a minimum quantity of BAW sensors during the term of the BAW Sensor Supply Agreement from Qorvo US, Inc., the obligations under these agreements were terminated upon the acquisition of Qorvo Biotechnologies, LLC on October 4, 2023.

Development and License Agreement with Brisby, Inc.

On April 4, 2023, the Company entered into a Development and License Agreement with Brisby Inc. Under the terms of this agreement, Brisby grants the Company a license to use, develop, manufacture, have manufactured, offer for sale, sell, and import certain Brisby products, such as the Smart Pet Pad and the Intelligent Pet Bed, along with any future developments of these products.

As part of this agreement, the Company is required to make the following milestone payments:

● $3,500 in aggregate cash payments, covering the initial license fee, equity interest, development milestones, and commercial sales;

● $750 in warrants upon the first commercial sale of the Smart Pet Pad, determined by dividing the amount due by the closing price of the Company's common stock on the date of such first commercial sale, as reported on the OTCQB marketplace, with a term of 10 years;

● $750 in warrants upon the first commercial sale of the Intelligent Pet Bed, determined by dividing the amount due by the closing price of the Company's common stock on the date of such first commercial sale, as reported on the OTCQB marketplace, with a term of 10 years;

● $5,000 in warrants upon reaching $15,000 in annual net sales of the licensed products, determined by dividing the amount due by the closing price of the Company's common stock on the date that net sales reach $15,000, as reported on the OTCQB marketplace, with a term of 10 years.

As of March 31, 2026, the Company has made $1,711 in cash payments for milestones achieved under this agreement and holds a 19.50% equity stake in Brisby Inc. The remaining cash payments, totaling $1,789, are due upon the achievement of future development milestones and the first commercial sales of the Smart Pet Pad and the Intelligent Pet Bed.

The Company’s investment in Brisby Inc. is accounted for under the equity method in accordance with ASC 323, Investments – Equity Method and Joint Ventures (“ASC 323”), and is included in Other assets on the consolidated balance sheets.

License and Supply Agreement with Cresilon, Inc.

On December 30, 2024 (the “Effective Date”), the Company entered into a License and Supply Agreement with Cresilon, Inc. Under the terms of this agreement, Cresilon will manufacture and supply VETIGEL^® Hemostatic Gel and related products (the “Products”) to the Company, ensuring the Products materially conform to agreed specifications.

The agreement grants the Company a perpetual, royalty-bearing exclusive license to promote, market, and sell VETIGEL Products in the United States and, upon regulatory approval, Japan, as well as a non-exclusive license for global markets outside these territories. Both licenses include sublicensing rights but exclude any rights to manufacture the Products. Additionally, the Company received a non-exclusive, transferable trademark license to use Cresilon trademarks solely for the sale and importation of VETIGEL Products.

As part of this agreement, the Company is required to make the following considerations:

● $1,500 in an up-front license fee, due upon execution of the Agreement, which was paid during the year-ended December 31, 2024;

● $1,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $3,000 (provided this occurs within five years of the Effective Date);

● $1,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $5,000 (provided this occurs within five years of the Effective Date);

● $2,000 in a sales milestone payment, payable no later than January 31 of the first calendar year following the first calendar year in which Gross Sales exceed $10,000 (provided this occurs within five years of the Effective Date);

● Royalties on Net Sales less amounts paid to Cresilon for the Products (“Cresilon Net Sales”), ranging from 5% to 15%, depending on territory and patent status;

● A Minimum Royalty obligation (beginning in the second calendar year following the Effective Date), consisting of: (a) a royalty based on at least $1,000 in Cresilon Net Sales; and (b) a shortfall payment based on the number of Products  manufactured by Cresilon to meet that threshold but not purchased by the Company during the applicable calendar year.

Agreement with Oxford Science, Inc.

On March 4, 2026, the Company entered into an agreement with Oxford Science Inc. to acquire certain assets which will be useful in the development and expansion of its product offerings. As part of this agreement, the Company was required to make an upfront payment of $250, which was paid during the three months ended March 31, 2026, and is required to make aggregate payments of $1,750, contingent on future development milestones.

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Segment Information

3 Months Ended

Mar. 31, 2026

Segment Information

Segment Information

15. Segment Information

The Company’s operations are comprised of three reportable segments:

● Diagnostics, which consists of TRUFORMA^®, VETGuardian^®, and TRUVIEW^® products;

● Therapeutic Devices, which consists of Assisi^®, PulseVet^®, and VETIGEL^® products; and

● Developmental Services, which consists of contract manufacturing and engineering services, including Cell-Guardian.

The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer who has ultimate responsibility for enterprise decisions. Segment information is used by the CODM to evaluate financial performance and to make strategic decisions related to resource allocation and operational focus across the segments. The CODM does not assess individual expense line items beyond cost of goods sold, nor does the CODM evaluate additional financial measures or allocate assets at the segment level.

Although our reportable segments provide similar products, each one is managed separately to better align with the Company’s customers and distribution / development partners. The CODM determines resource allocation for, and monitors performance of, the consolidated enterprise, which includes the Diagnostics, Therapeutic Devices and Development Services segments. The CODM relies on internal segment reporting that analyzes results on certain key performance indicators, namely, revenues, cost of goods sold, and gross profit. Cost of goods sold is the only significant expense evaluated at the segment level, as it is critical for assessing gross profit and segment performance. Costs below gross profit, such as operating expenses, are not allocated to the segments, nor are asset groupings, except for the purpose of periodic impairment analysis.

The following is a reconciliation of consolidated revenue, cost of revenue, and gross profit amongst our reportable segments for the three months ended March 31, 2026 and 2025:

	Three Months Ended March 31,
	Diagnostics				Therapeutic Devices				Development Services				Consolidated
	2026		2025		2026		2025		2026		2025		2026		2025
Net revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500
Cost of revenue		615		557		1,773		1,536		927		-		3,315		2,093
Gross profit	$	351	$	2	$	4,048	$	4,405	$	1,085	$	-	$	5,484	$	4,407

For the three months ended March 31, 2026, revenue from external customers in the U.S. was $7,383 and from customers in foreign countries was $1,416, compared to $5,053 and $1,447, respectively, for the same period in 2025.

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Loss Per Share

3 Months Ended

Mar. 31, 2026

Loss Per Share

Loss Per Share

16. Loss Per Share

	Three Months Ended March 31,
	2026		2025
Numerator
Net loss for the period	$	(4,534)	$	(63,809)
Denominator
Weighted-average shares - basic		979,949,668		979,949,668
Loss per share - basic and diluted	$	(0.00)	$	(0.07)

As of March 31, 2026 and 2025, the Company had stock options outstanding of 94,388,471 and 91,830,136, respectively, and warrants outstanding of 32,000,000 and 32,561,418, respectively. These securities could potentially dilute basic earnings per share in the future but were excluded from the computation of diluted loss per share in the periods presented, as their effect would be anti-dilutive.

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Subsequent Events

3 Months Ended

Mar. 31, 2026

Subsequent Events

Subsequent Events

17. Subsequent Events

We have evaluated events and transactions occurring subsequent to the consolidated balance sheet date of March 31, 2026 for items that could potentially be recognized or disclosed in these financial statements. We did not identify any items which would require disclosure in or adjustment to the consolidated financial statements.

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2026

Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. Intercompany transactions and balances between consolidated businesses have been eliminated. The accounting policies set out below have been applied consistently in the condensed consolidated financial statements.

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) applicable to interim reports. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements include all normal recurring adjustments necessary to present fairly the information required to be set forth therein. The Company’s management believes the disclosures are adequate to make the information presented not misleading when read in conjunction with the audited consolidated financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 16, 2026 (“2025 Form 10-K”).

Basis of Measurement

Basis of Measurement

The condensed consolidated financial statements have been prepared on the historical cost basis except as otherwise noted.

Estimates and Assumptions

Estimates and Assumptions

In preparing these condensed consolidated financial statements, management was required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates and assumptions are based on our historical experience, the terms of existing contracts, our evaluation of trends in the industry, information provided by our customers and suppliers and information available from other outside sources, as appropriate. These estimates and assumptions are subject to an inherent degree of uncertainty. We are not presently aware of any events or circumstances that would require us to update such estimates and assumptions or revise the carrying value of our assets or liabilities. Our estimates may change, however, as new events occur, and additional information is obtained. As a result, actual results may differ significantly from our estimates, and any such differences may be material to our financial statements.

Functional and Reporting Currencies

Functional and Reporting Currencies

The functional currency for Canada and our subsidiaries in the United States and Switzerland is U.S. dollars, which is also our reporting currency. The functional currency, as determined by management, for our Japanese subsidiary is Japanese Yen. Japanese Yen is translated for financial reporting purposes, with translation gains and losses recorded as a component of other comprehensive income or loss. In respect of transactions denominated in currencies other than the Company’s and its wholly owned operating subsidiaries’ functional currencies, the monetary assets and liabilities are remeasured at the period end rates. Revenue and expenses are measured at rates of exchange prevailing on the transaction dates. All exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations.

Recently Issued or Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

In December 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. The ASU clarifies interim disclosure requirements and the applicability of Topic 270 and results in a comprehensive list of interim disclosures required by other standards. In addition, the ASU also includes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.  The ASU updates the existing accounting standards over internal-use software capitalization to increase the operability of the recognition guidance considering different methods of software development. The ASU removes all references to prescriptive and sequential software development stages (referred to as “project stages”) and replaces it with a probable-to-complete recognition model. As part of this updated recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. This ASU is effective for annual reporting periods beginning after December 15, 2027, and for interim reporting periods within annual reporting periods beginning after December 15, 2028. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Disaggregation of Income Statement Expenses. This ASU requires additional disclosures to disaggregate costs and expense line items presented on the face of the consolidated statements of operations and comprehensive loss. These disclosures include: (a) amounts related to purchased inventory, employee compensation, depreciation, amortization, and other significant components of costs and expenses; (b) an explanation of costs and expenses that are not disaggregated quantitatively; and (c) the definition and total amount of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this ASU and has not yet determined its effect on the consolidated financial statements.

Recently Adopted Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. This ASU is effective for public entities with fiscal years beginning after December 15, 2024. The Company adopted this guidance for the year ended December 31, 2025 and applied the guidance on a prospective basis. The adoption did not have a material impact on the consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient permitting an entity to assume the conditions at the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for the current classified accounts receivable and contract assets. The Company early adopted the standard during the year ended December 31, 2025 on a prospective basis. The adoption did not have a material impact on the consolidated financial statements.

Segment Reporting

Segment Reporting

The Company reports segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s reportable segments consist of Diagnostics, Therapeutic Devices, and Development Services.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. As of March 31, 2026 and December 31, 2025, the Company's cash balances exceeded federally insured limits by approximately $766 and $916.

Investment Securities

Investment Securities

Our investment securities, which are comprised of corporate bonds/notes and US treasuries, are accounted for in accordance with ASC 320, Investments – Debt Securities (“ASC 320”). The Company considers all of its securities for which there is a determinable fair market value, and there are no restrictions on the Company’s ability to sell within the next twelve months, as available for sale. We classify these securities as both current and non-current depending on their time to maturity. Available-for-sale securities are carried at fair value, with unrealized gains and losses reported as a component of comprehensive loss.

Accounts Receivable and Allowance for Credit Losses

Trade Receivables and Allowance for Credit Losses

Trade receivables are recorded net of an allowance for credit losses and have payment terms of 30-90 days. Our policy for determining the allowance is based on factors that affect collectability, including: (a) historical trends of write-offs, recoveries, and credit losses; (b) the credit quality of our customers; and (c) projected economic and market conditions. As of March 31, 2026,  December 31, 2025, and December 31, 2024, trade receivables were $4,606, $3,263, and $2,794, respectively, net of allowance for doubtful accounts of $178, $251, and $371, respectively. While we believe that our allowance for credit losses is adequate and represents our best estimate as of March 31, 2026, we continue to closely monitor customer liquidity and industry and economic conditions, which may result in changes to these estimates.

Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value. The Company utilizes the specific identification and First in, First out (“FIFO”) method to track inventory costs. The Company records reserves, when necessary, to reduce the carrying value of inventory to its net realizable value. Management considers forecast demand in relation to the inventory on hand, competitiveness of product offerings, market conditions and product life cycles when determining excess and obsolescence and net realizable value adjustments. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established cost basis.

Property and Equipment

Property and Equipment

Property and equipment are carried at historical cost less accumulated depreciation and any accumulated impairment losses. Property and equipment acquired in a business combination are recorded at fair value as of the date of acquisition. Maintenance and repair expenditures that do not improve or extend the life are expensed in the period incurred. Depreciation is recognized so as to write off the cost less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Included in property and equipment is construction in progress (“CIP”), which consists of property and equipment that are purchased or constructed and require time before being ready for their intended use. CIP is recorded at acquisition cost, including directly attributable installation costs. No depreciation is recorded on CIP until assets are complete and ready for use, at which point CIP balances are transferred to the appropriate property and equipment accounts, and depreciation begins in accordance with our policy.

Intangible Assets

Intangible Assets

Definite-lived intangible assets include acquired customer relationships, developed technology, licenses, trademarks, and tradenames. These assets are capitalized and amortized on a straight-line basis over their estimated useful lives. Intangible assets acquired as part of a business combination are initially recorded at their estimated fair value as of the acquisition date, while all other intangible assets are capitalized at cost. The estimated useful lives and amortization methods are reviewed annually, with any changes applied prospectively.

Expenditures for the planning and ongoing operation of the Company’s website are expensed as incurred. Costs incurred for website application development and infrastructure enhancements are capitalized and amortized over their estimated useful life.

Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. These assets are not amortized but are assessed for impairment at least annually, or more frequently if events or circumstances indicate potential impairment.

Impairment of Long-Lived and Indefinite-Lived Intangible Assets

Impairment of Long-Lived and Indefinite-Lived Intangible Assets

The Company evaluates long-lived assets, including property, equipment, and definite-lived intangible assets, for impairment whenever events or circumstances indicate that their carrying value may not be recoverable. If the sum of estimated undiscounted future cash flows expected to be generated by an asset or asset group is less than its carrying value, an impairment loss is recognized. The impairment loss is measured as the excess of the asset’s carrying amount over its fair value.

Indefinite-lived intangible assets, including goodwill, are tested for impairment at least annually or when impairment indicators arise. If the carrying amount exceeds the fair value, an impairment loss is recognized.

During the first quarter of 2025, the Company identified a triggering event and recorded a material impairment charge related to certain long-lived and indefinite-lived intangible assets, including goodwill. See Note 10, Property and Equipment and Note 11, Goodwill and Intangible Assets, for further information.

Revenue Recognition

Revenue Recognition

The Company enters into agreements which may contain multiple promises where customers purchase products, services, or a combination thereof. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires judgment. We determine the transaction price for a contract based on the total consideration we expect to receive in exchange for the transferred goods or services.

The Company allocates revenue to each performance obligation in proportion to the relative standalone selling prices and recognizes revenue when control of the related goods or services is transferred for each obligation. We utilize the observable standalone selling price when available, which represents the price charged for the performance obligation when sold separately.

The Company's contracts with customers are generally comprised of purchase orders for the sale of the point of care instrument, consumable products, development services, and extended warranties, or some variation thereof. The instrument and consumables each represent a single performance obligation when sold separately, that is satisfied at a point in time upon transfer of control of the product to the customer which is typically upon receipt of the goods by the customer. The extended warranties are also a separate performance obligation, whereby revenue is recognized over time. Development services are recognized over time, as they do not create an asset with alternative use to us, and we have an enforceable right to payment for performance completed to date. ASC 606, Revenue from Contracts with Customers (“ASC 606”) contains a practical expedient whereby if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. The Company has elected to apply this practical expedient to our services revenue.

The Company also enters into contracts with customers where it receives payment for the consumable products and does not receive additional or separate consideration for the use of the point of care instrument furnished by the Company for the clinical veterinarian’s use. For these contracts, the Company considers the guidance under ASC 842, Leases (“ASC 842”), in order to determine if the furnishing of the point of care instrument to the customer during the period of use creates an embedded lease. If the point of care instrument is identified as a lease, it is classified as an operating lease as it does not meet any of the finance lease criteria per ASC 842. In these arrangements, the consumable products are classified as non-lease components. The Company allocates revenue to these lease and non-lease components based on standalone selling prices or, if not available, a cost-plus approach. Revenue related to the lease component is recognized ratably over the term of the contract. Revenue related to the non-lease components is recognized when control of the product has been transferred to the customer.

The nature of the Company’s PulseVet^® business gives rise to variable consideration, including discounts and applicator (“trode”) returns for refurbishment. Credits are issued for unused shocks on returned trodes, which can be used toward the purchase of replacement trodes. Discounts and the estimated unused shock credits decrease the transaction price, which reduces revenue. Variable consideration related to unused shock credits is estimated using the expected value method, which estimates the amount that is expected to be earned.

Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration are based upon historical experience and known trends. These estimated credits are nonrefundable and may only be used towards the purchase of future trode refurbishments. These credits give rise to the contract liability contained on the balance sheet. This practice encourages refurbishment purchase prior to complete utilization of the previous trode, so the customer will always have a trode on hand with ample capacity to perform treatments. As of March 31, 2026, December 31, 2025 and December 31, 2024, contract liabilities were $625, $600, and $550, respectively.

Sales are recorded net of sales tax. Sales tax is charged on sales to end users and remitted to the appropriate state authority.

Disaggregated revenue for the three months ended March 31, 2026 and 2025 is as follows:

		Three Months Ended March 31,
		Diagnostics				Therapeutic Devices				Development Services				Consolidated
		2026		2025		2026		2025		2026		2025		2026		2025
Capital	$	167	$	156	$	1,433	$	1,800	$	374	$	-	$	1,974	$	1,956
Consumables		799		403		4,369		4,094		302		-		5,470		4,497
Engineering		-		-		-		-		1,244		-		1,244		-
Other		-		-		19		47		92		-		111		47
Total revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500

Cost of Revenue

Cost of Revenue

Cost of goods sold consists of overhead, materials, labor, shipping costs, and a portion of depreciation incurred internally to produce and receive the products or to provide services. Shipping and handling costs incurred by the Company are included in cost of revenue.

Research and Development

Research and Development

Research and development costs related to continued research and development programs are expensed as incurred.

Stock-based Compensation

Stock-based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation, (“ASC 718”). Stock-based compensation expense is recognized for awards granted to employees and directors based on the fair value of the awards on the grant date. The Company’s stock-based compensation includes stock options, which are classified as equity awards, and stock appreciation rights (SARs), which are classified as liability awards.

The Company calculates stock-based compensation for stock options using the fair value method. The fair value of stock options at the grant date is determined using the Black-Scholes Option Pricing Model. The resulting fair value is recognized as compensation expense over the vesting period of the award using the graded vesting method. The Company’s stock option plans do not require the settlement of awards by transferring cash or other assets. Therefore, stock options are classified as equity awards. Compensation expense recognized during the period reflects the fair value of stock-based payment awards that are ultimately expected to vest. In accordance with ASC 718, the Company recognizes forfeitures of employee awards as they occur.

The Company accounts for SARs under ASC 718 as liability-classified awards because they are settled solely in cash and do not result in the issuance of equity. The fair value of SARs is measured at the grant date and remeasured at each reporting date until settlement. Changes in fair value are recognized as compensation expense in the consolidated statements of operations and comprehensive loss in the period of remeasurement. The fair value of SARs is determined using the Black-Scholes Option Pricing Model, incorporating significant assumptions such as expected stock price volatility, expected term of the award, and risk-free interest rate.

SARs vest over the defined vesting period, and compensation expense is recognized based on the proportion of the vesting period that has elapsed. Upon exercise, participants receive a cash payment equal to the excess of the fair market value of a share of common stock on the exercise date over the exercise price of the SAR.

Income Taxes

Income Taxes

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), on a tax jurisdictional basis. The Company files income tax returns in Canada and the province of Alberta and its subsidiaries file income tax returns in Switzerland, Japan, the United States and various states within, including in Michigan where the Company’s headquarters are located.

Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the tax basis of assets and liabilities and their financial statement reported amounts using enacted tax rates and laws in effect in the year in which the differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is determined to be more likely than not that the deferred tax asset will not be realized.

The Company assesses the likelihood of the financial statement effect of an uncertain tax position that should be recognized when it is more likely than not that the position will be sustained upon examination by a taxing authority based on the technical merits of the tax position, circumstances, and information available as of the reporting date. The Company is subject to examination by taxing authorities in the United States, Canada, Japan, and Switzerland. The Company recognizes tax-related interest and penalties, if any, as a component separate from income tax expense.

Comprehensive Loss

Comprehensive Loss

Our comprehensive loss is reported in accordance with ASC 220, Income Statement — Reporting Comprehensive Income (“ASC 220”). Comprehensive loss is net loss plus certain items that are recorded directly to shareholders’ equity. The Company has recorded a currency translation adjustment associated with the translation of its Japanese subsidiary to the reporting currency.

Loss Per Share

Loss Per Share

Basic loss per share (“EPS”) is computed by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding. Diluted EPS reflects the potential dilution that could occur from common shares issuable through the exercise or conversion of stock options, restricted stock awards, warrants and convertible securities. In certain circumstances, the conversion of options is excluded from diluted EPS if the effect of such inclusion would be anti-dilutive.

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2026

Significant Accounting Policies

Schedule of disaggregated revenue

		Three Months Ended March 31,
		Diagnostics				Therapeutic Devices				Development Services				Consolidated
		2026		2025		2026		2025		2026		2025		2026		2025
Capital	$	167	$	156	$	1,433	$	1,800	$	374	$	-	$	1,974	$	1,956
Consumables		799		403		4,369		4,094		302		-		5,470		4,497
Engineering		-		-		-		-		1,244		-		1,244		-
Other		-		-		19		47		92		-		111		47
Total revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500

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Investment securities (Tables)

3 Months Ended

Mar. 31, 2026

Investment Securities

Schedule of company's investment securities

Balance at March 31, 2026		Acquisition Cost		Accretion / (Amortization)		Unrealized Gain / (Loss)		Estimated Fair Value
Commercial paper	$	4,903	$	56	$	(2)	$	4,957
Corporate notes / bonds		22,146		90		(31)		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		8,535		35		(3)		8,567
U.S. treasuries		3,661		(5)		(2)		3,654
Total investment securities	$	44,827	$	176	$	(38)	$	44,965

Balance at December 31, 2025		Acquisition Cost		Accretion / (Amortization)		Unrealized Gain / (Loss)		Estimated Fair Value
Commercial paper	$	4,888	$	34	$	—	$	4,922
Corporate notes / bonds		24,063		96		2		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		11,192		64		5		11,261
U.S. treasuries		4,881		11		(1)		4,891
Total investment securities	$	50,311	$	205	$	6	$	50,522

Schedule of contractual maturities of investment securities

		Acquisition Cost		Estimated Fair Value
Original maturities of 90 days or less	$	6,823	$	6,827
Original maturities of 91-365 days		38,004		38,138
Original maturities of 366+ days		-		-
Total investment securities	$	44,827	$	44,965

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Fair Value Measurements

Schedule of the fair value of our investments

Balance at March 31, 2026		Level 1		Level 2		Level 3		Estimated Fair Value
Commercial paper	$	—	$	4,957	$	—	$	4,957
Corporate notes / bonds		—		22,205		—		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		8,567		—		—		8,567
U.S. treasuries		3,654		—		—		3,654
Total investment securities	$	17,803	$	27,162	$	—	$	44,965

Balance at December 31, 2025		Level 1		Level 2		Level 3		Estimated Fair Value
Commercial paper	$	—	$	4,922	$	—	$	4,922
Corporate notes / bonds		—		24,161		—		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		11,261		—		—		11,261
U.S. treasuries		4,891		—		—		4,891
Total investment securities	$	21,439	$	29,083	$	—	$	50,522

Schedule of investments and balance sheet classifications

Balance at March 31, 2026		Cash & Cash Equivalents		Available- For-Sale (Current)		Available- For-Sale (Non-Current)		Estimated Fair Value
Commercial paper	$	1,245	$	3,712	$	—	$	4,957
Corporate notes / bonds		—		22,205		—		22,205
Money market funds		5,582		—		—		5,582
U.S. govt. agencies		—		8,567		—		8,567
U.S. treasuries		—		3,654		—		3,654
Total investment securities	$	6,827	$	38,138	$	-	$	44,965

Balance at December 31, 2025		Cash & Cash Equivalents		Available- For-Sale (Current)		Available- For-Sale (Non-Current)		Estimated Fair Value
Commercial paper	$	—	$	4,922	$	—	$	4,922
Corporate notes / bonds		—		24,161		—		24,161
Money market funds		5,287		—		—		5,287
U.S. govt. agencies		—		11,261		—		11,261
U.S. treasuries		996		3,895		—		4,891
Total investment securities	$	6,283	$	44,239	$	—	$	50,522

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Inventory (Tables)

3 Months Ended

Mar. 31, 2026

Inventory

Summary of inventory

	March 31, 2026						December 31, 2025
	Diagnostics		Therapeutic Devices		Consolidated		Diagnostics		Therapeutic Devices		Consolidated
Raw materials	$	2,232	$	2,322	$	4,554	$	2,425	$	1,899	$	4,324
Finished goods		385		457		842		307		482		789
Purchased inventory		142		357		499		119		349		468
Total inventory		2,759		3,136		5,895		2,851		2,730		5,581
Less: reserves		(20)		—		(20)		(36)		—		(36)
Inventory, net	$	2,739	$	3,136	$	5,875	$	2,815	$	2,730	$	5,545

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Prepaid Expenses and Deposits (Tables)

3 Months Ended

Mar. 31, 2026

Prepaid Expenses and Deposits

Schedule of prepaid expenses and deposits

	March 31,		December 31,
	2026		2025
Deposits	$	394	$	208
Prepaid marketing		126		196
Prepaid insurance		333		437
Other		1,124		1,098
Total prepaid expenses and deposits	$	1,977	$	1,939

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Accrued Expenses and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2026

Accrued Expenses and Other Current Liabilities

Schedule of accrued expenses and other current liabilities

	March 31,		December 31,
	2026		2025
Accrued employee compensation and benefits	$	2,182	$	3,865
Stock appreciation rights		1,574		1,071
Accrued taxes		757		856
Accrued professional services		362		403
Other		226		199
Total accrued expenses and other current liabilities	$	5,101	$	6,394

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Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2026

Property and Equipment

Schedule of property and equipment

	March 31,		December 31,
	2026		2025
Machinery and equipment	$	15,827	$	15,556
Furniture and fixtures		169		169
Laboratory equipment		842		842
Leasehold improvements		2,847		2,847
Construction in progress		6,177		6,415
Total property and equipment		25,862		25,829
Less: accumulated depreciation		(5,403)		(4,917)
Property and equipment, net	$	20,459	$	20,912

	Three Months Ended March 31,
	2026		2025
Depreciation expense	$	519	$	521

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2026

Goodwill and Intangible Assets

Schedule of goodwill by segment

	Diagnostics		Therapeutic Devices		Development Services		Total
Balance at December 31, 2024	$	—	$	45,556	$	—	$	45,556
Impairment		—		(45,556)		—		(45,556)
Balance at December 31, 2025	$	—	$	—	$	—	$	—

Schedule of finite-lived intangible assets

	March 31,		December 31,
	2026		2025
Computer software	$	3,394	$	3,348
Customer relationships		26,087		26,087
Licenses		9,642		9,542
Technology		18,240		17,990
Tradenames		2,787		2,787
Trademarks		16		16
Website		1,433		1,433
Intangibles under construction		232		89
Total intangibles		61,831		61,292
Less: accumulated amortization		(23,856)		(22,484)
Intangibles, net	$	37,975	$	38,808

Schedule of finite-lived intangible assets amortization

2026	$	3,878
2027		5,080
2028		4,828
2029		4,709
2030		4,588
Thereafter		13,997
Total	$	37,080

	Three Months Ended March 31,
	2026		2025
Amortization expense	$	1,372	$	1,693

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2026

Stock-Based Compensation

Schedule of stock options activity

	Number of Options	Weighted-Average Exercise Price
Balance at December 31, 2025	94,338,469	$	0.2904
Stock options granted	2,450,000		0.1322
Stock options forfeited	2,041,248		0.1223
Vested stock options expired	358,750		0.1986
Balance at March 31, 2026	94,388,471	$	0.2902
Vested at March 31, 2026	68,894,689	$	0.3520

	Number of Options	Weighted-Average Exercise Price
Balance at December 31, 2024	89,051,943	$	0.3232
Stock options granted	6,975,000		0.1183
Stock options forfeited	351,250		0.1769
Vested stock options expired	3,845,557		0.3354
Balance at March 31, 2025	91,830,136	$	0.3077
Vested at March 31, 2025	55,036,523	$	0.3565

Schedule of the continuity of SARs

	Number of SARs	Weighted-Average Exercise Price
Balance at December 31, 2025	26,890,832	$	0.12
Balance at March 31, 2026	26,890,832	$	0.12
Vested at March 31, 2026	13,521,379		0.13

	Number of SARs	Weighted-Average Exercise Price
Balance at December 31, 2024	13,521,379	$	0.13
Balance at March 31, 2025	13,521,379	$	0.13
Vested at March 31, 2025	—		—

Stock options

Stock-Based Compensation

Share-based payment arrangement, cost by plan

	Three Months Ended March 31,
		2026		2025
Stock-based compensation expense	$	139	$	545

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2026

Segment Information

Schedule of segments

	Three Months Ended March 31,
	Diagnostics				Therapeutic Devices				Development Services				Consolidated
	2026		2025		2026		2025		2026		2025		2026		2025
Net revenue	$	966	$	559	$	5,821	$	5,941	$	2,012	$	-	$	8,799	$	6,500
Cost of revenue		615		557		1,773		1,536		927		-		3,315		2,093
Gross profit	$	351	$	2	$	4,048	$	4,405	$	1,085	$	-	$	5,484	$	4,407

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Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2026

Loss Per Share

Schedule of earnings per share, basic and diluted

	Three Months Ended March 31,
	2026		2025
Numerator
Net loss for the period	$	(4,534)	$	(63,809)
Denominator
Weighted-average shares - basic		979,949,668		979,949,668
Loss per share - basic and diluted	$	(0.00)	$	(0.07)

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Significant Accounting Policies - Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Significant Accounting Policies
Company balances exceeded federally insured limits	$ 766	$ 916

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Significant Accounting Policies - Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Dec. 31, 2024
Significant Accounting Policies
Accounts receivable, gross	$ 4,606	$ 3,263	$ 2,794
Allowance for credit loss on accounts receivable	$ 178	$ 251	$ 371

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Significant Accounting Policies - Contract Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025	Dec. 31, 2024
Significant Accounting Policies
Contract liabilities	$ 625	$ 600	$ 550

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Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Disaggregation of Revenue
Net revenue	$ 8,799	$ 6,500
Capital
Disaggregation of Revenue
Net revenue	1,974	1,956
Consumables
Disaggregation of Revenue
Net revenue	5,470	4,497
Engineering
Disaggregation of Revenue
Net revenue	1,244
Other
Disaggregation of Revenue
Net revenue	111	47
Diagnostics
Disaggregation of Revenue
Net revenue	966	559
Diagnostics | Capital
Disaggregation of Revenue
Net revenue	167	156
Diagnostics | Consumables
Disaggregation of Revenue
Net revenue	799	403
Therapeutic Devices
Disaggregation of Revenue
Net revenue	5,821	5,941
Therapeutic Devices | Capital
Disaggregation of Revenue
Net revenue	1,433	1,800
Therapeutic Devices | Consumables
Disaggregation of Revenue
Net revenue	4,369	4,094
Therapeutic Devices | Other
Disaggregation of Revenue
Net revenue	19	$ 47
Development Services
Disaggregation of Revenue
Net revenue	2,012
Development Services | Capital
Disaggregation of Revenue
Net revenue	374
Development Services | Consumables
Disaggregation of Revenue
Net revenue	302
Development Services | Engineering
Disaggregation of Revenue
Net revenue	1,244
Development Services | Other
Disaggregation of Revenue
Net revenue	$ 92

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Critical Accounting Judgments and Key Sources of Estimation Uncertainty (Details)	Mar. 31, 2026
Significant Accounting Policies
Intangible assets useful lives	10 years

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Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Investment securities
Acquisition Cost	$ 44,827	$ 50,311
Accretion / (Amortization)	176	205
Unrealized Gain / (Loss)	38	(6)
Estimated Fair Value	44,965	50,522
Accrued interest receivable	282	314
Commercial paper
Investment securities
Acquisition Cost	4,903	4,888
Accretion / (Amortization)	56	34
Unrealized Gain / (Loss)	2
Estimated Fair Value	4,957	4,922
Corporate notes / bonds
Investment securities
Acquisition Cost	22,146	24,063
Accretion / (Amortization)	90	96
Unrealized Gain / (Loss)	31	(2)
Estimated Fair Value	22,205	24,161
Money market funds
Investment securities
Acquisition Cost	5,582	5,287
Estimated Fair Value	5,582	5,287
U.S. govt. agencies
Investment securities
Acquisition Cost	8,535	11,192
Accretion / (Amortization)	35	64
Unrealized Gain / (Loss)	3	(5)
Estimated Fair Value	8,567	11,261
U.S. treasuries
Investment securities
Acquisition Cost	3,661	4,881
Accretion / (Amortization)	(5)	11
Unrealized Gain / (Loss)	2	1
Estimated Fair Value	$ 3,654	$ 4,891

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Investment Securities - Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Investment securities
Acquisition Cost	$ 44,827	$ 50,311
Estimated Fair Value	44,965	$ 50,522
Original maturities of 90 days or less
Investment securities
Acquisition Cost	6,823
Estimated Fair Value	6,827
Original maturities of 91-365 days
Investment securities
Acquisition Cost	38,004
Estimated Fair Value	$ 38,138

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Fair Value Measurements - Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Fair value
Total investment securities	$ 44,965	$ 50,522
Commercial paper
Fair value
Total investment securities	4,957	4,922
Corporate notes / bonds
Fair value
Total investment securities	22,205	24,161
Money market funds
Fair value
Total investment securities	5,582	5,287
U.S. govt. agencies
Fair value
Total investment securities	8,567	11,261
U.S. treasuries
Fair value
Total investment securities	3,654	4,891
Recurring
Fair value
Total investment securities	44,965	50,522
Recurring | Commercial paper
Fair value
Total investment securities	4,957	4,922
Recurring | Corporate notes / bonds
Fair value
Total investment securities	22,205	24,161
Recurring | Money market funds
Fair value
Total investment securities	5,582	5,287
Recurring | U.S. govt. agencies
Fair value
Total investment securities	8,567	11,261
Recurring | U.S. treasuries
Fair value
Total investment securities	3,654	4,891
Recurring | Level 1
Fair value
Total investment securities	17,803	21,439
Recurring | Level 1 | Money market funds
Fair value
Total investment securities	5,582	5,287
Recurring | Level 1 | U.S. govt. agencies
Fair value
Total investment securities	8,567	11,261
Recurring | Level 1 | U.S. treasuries
Fair value
Total investment securities	3,654	4,891
Recurring | Level 2
Fair value
Total investment securities	27,162	29,083
Recurring | Level 2 | Commercial paper
Fair value
Total investment securities	4,957	4,922
Recurring | Level 2 | Corporate notes / bonds
Fair value
Total investment securities	$ 22,205	$ 24,161

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Fair Value Measurements - Balance sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Fair value, balance sheet
Cash and cash equivalents	$ 9,369	$ 9,017
Available-For-Sale (Current)	38,138	44,239
Estimated Fair Value	44,965	50,522
Commercial paper
Fair value, balance sheet
Estimated Fair Value	4,957	4,922
Corporate notes / bonds
Fair value, balance sheet
Estimated Fair Value	22,205	24,161
Money market funds
Fair value, balance sheet
Estimated Fair Value	5,582	5,287
U.S. govt. agencies
Fair value, balance sheet
Estimated Fair Value	8,567	11,261
U.S. treasuries
Fair value, balance sheet
Estimated Fair Value	3,654	4,891
Recurring
Fair value, balance sheet
Cash and cash equivalents	6,827	6,283
Available-For-Sale (Current)	38,138	44,239
Estimated Fair Value	44,965	50,522
Recurring | Commercial paper
Fair value, balance sheet
Cash and cash equivalents	1,245
Available-For-Sale (Current)	3,712	4,922
Estimated Fair Value	4,957	4,922
Recurring | Corporate notes / bonds
Fair value, balance sheet
Available-For-Sale (Current)	22,205	24,161
Estimated Fair Value	22,205	24,161
Recurring | Money market funds
Fair value, balance sheet
Cash and cash equivalents	5,582	5,287
Estimated Fair Value	5,582	5,287
Recurring | U.S. govt. agencies
Fair value, balance sheet
Available-For-Sale (Current)	8,567	11,261
Estimated Fair Value	8,567	11,261
Recurring | U.S. treasuries
Fair value, balance sheet
Cash and cash equivalents		996
Available-For-Sale (Current)	3,654	3,895
Estimated Fair Value	$ 3,654	$ 4,891

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Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Inventory
Raw materials	$ 4,554	$ 4,324
Finished goods	842	789
Purchased inventory	499	468
Total inventory	5,895	5,581
Less: reserves	(20)	(36)
Inventory, net	5,875	5,545
Diagnostics
Inventory
Raw materials	2,232	2,425
Finished goods	385	307
Purchased inventory	142	119
Total inventory	2,759	2,851
Less: reserves	(20)	(36)
Inventory, net	2,739	2,815
Therapeutic Devices
Inventory
Raw materials	2,322	1,899
Finished goods	457	482
Purchased inventory	357	349
Total inventory	3,136	2,730
Inventory, net	$ 3,136	$ 2,730

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Prepaid Expenses and Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Prepaid Expenses and Deposits
Deposits	$ 394	$ 208
Prepaid marketing	126	196
Prepaid insurance	333	437
Other	1,124	1,098
Total prepaid expenses and deposits	$ 1,977	$ 1,939

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Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Accrued Expenses and Other Current Liabilities
Accrued employee compensation and benefits	$ 2,182	$ 3,865
Stock appreciation rights	1,574	1,071
Accrued taxes	757	856
Accrued professional services	362	403
Other	226	199
Total accrued expenses and other current liabilities	$ 5,101	$ 6,394

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Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Property and Equipment
Gross property and equipment	$ 25,862		$ 25,829
Less: accumulated depreciation	(5,403)		(4,917)
Property and equipment, net	20,459		20,912
Depreciation expense	519	$ 521
Impairment charge	1,981,000
Machinery and equipment
Property and Equipment
Gross property and equipment	15,827		15,556
Impairment charge	897,000
Furniture and fixtures
Property and Equipment
Gross property and equipment	169		169
Laboratory equipment
Property and Equipment
Gross property and equipment	842		842
Leasehold improvements
Property and Equipment
Gross property and equipment	2,847		2,847
Construction in progress
Property and Equipment
Gross property and equipment	6,177		$ 6,415
Impairment charge	$ 1,084,000

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Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2025 USD ($)
Goodwill by segment
Goodwill	$ 45,556
Impairment	(45,556)
Goodwill	0
Therapeutic Devices
Goodwill by segment
Goodwill	45,556
Impairment	$ (45,556)

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Goodwill and Intangible Assets - Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2025	Sep. 30, 2025	Mar. 31, 2026	Dec. 31, 2025
Intangible Assets
Intangible assets, gross			$ 61,831	$ 61,292
Less: accumulated amortization			(23,856)	(22,484)
Intangibles, net			37,975	38,808
Diagnostics
Intangible Assets
Impairment of intangible assets	$ 8,296
Licenses
Intangible Assets
Indefinite lived intangible assets			663
Computer software
Intangible Assets
Intangible assets, gross			3,394	3,348
Customer relationships
Intangible Assets
Intangible assets, gross			26,087	26,087
Customer relationships | Diagnostics
Intangible Assets
Impairment of intangible assets		$ 763
Licenses
Intangible Assets
Intangible assets, gross			9,642	9,542
Technology
Intangible Assets
Intangible assets, gross			18,240	17,990
Technology | Diagnostics
Intangible Assets
Impairment of intangible assets	$ 7,060
Tradenames
Intangible Assets
Intangible assets, gross			2,787	2,787
Trademarks
Intangible Assets
Intangible assets, gross			16	16
Website
Intangible Assets
Intangible assets, gross			1,433	1,433
Intangible under construction
Intangible Assets
Intangible assets, gross			$ 232	$ 89

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Goodwill and Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Goodwill and Intangible Assets
2026	$ 3,878
2027	5,080
2028	4,828
2029	4,709
2030	4,588
Thereafter	13,997
Total	37,080
Amortization - intangible assets	$ 1,372	$ 1,693

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Stock-Based Compensation - Info (Details) - USD ($) $ in Thousands		3 Months Ended
	Aug. 12, 2024	Mar. 31, 2026	Mar. 31, 2025	Dec. 31, 2025
Stock-Based Compensation
Stock options granted (in shares)		2,450,000	6,975,000
Accrued employee compensation and benefits		$ 2,182		$ 3,865
Stock options
Stock-Based Compensation
Shares reserved under plan (as a percent)		10.00%
Vesting period		4 years
Expiration period		10 years
Stock-based expense		$ 139	$ 545
Unrecognized cost, recognition period		2 years 7 months 6 days
Unrecognized cost related to awards		$ 877
SARs
Stock-Based Compensation
Shares reserved under plan (as a percent)	10.00%
Expiration period	10 years
Stock-based expense		$ 504	$ 73
Unrecognized cost, recognition period		7 months 6 days
Unrecognized cost related to awards		$ 753
Accrued employee compensation and benefits		$ 1,574		$ 1,071
SARs | Minimum
Stock-Based Compensation
Exercise period after termination of service	90 days
SARs | Maximum
Stock-Based Compensation
Exercise period after termination of service	12 months
SARs | Employee | First Anniversary of Grant
Stock-Based Compensation
Vesting percentage	25.00%
SARs | Employee | After first anniversary of grant
Stock-Based Compensation
Vesting period	36 months
Vesting percentage	0.0208%
SARs | Non-employee | First Anniversary of Grant
Stock-Based Compensation
Vesting percentage	100.00%

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Stock-Based Compensation - Options activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Stock-Based Compensation
Options Outstanding, beginning balance (in shares)	94,338,469	89,051,943
Stock options granted (in shares)	2,450,000	6,975,000
Stock options forfeited (in shares)	2,041,248	351,250
Vested stock options expired (in shares)	358,750	3,845,557
Options Outstanding, ending balance (in shares)	94,388,471	91,830,136
Vested (in shares)	68,894,689	55,036,523
Weighted Avg Exercise Price Options Outstanding (in dollars per share)	$ 0.2904	$ 0.3232
Weighted Avg Exercise Price, Stock options granted (in dollars per share)	0.1322	0.1183
Weighted Avg Exercise Price Stock options forfeited (in dollars per share)	0.1223	0.1769
Weighted Avg Exercise Price Vested Stock options expired (in dollars per share)	0.1986	0.3354
Weighted Avg Exercise Price Options Outstanding (in dollars per share)	0.2902	0.3077
Weighted Avg Exercise Price Vested (in dollars per share)	$ 0.352	$ 0.3565

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Stock-Based Compensation - SARs activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025	Dec. 31, 2024
Stock-Based Compensation
Outstanding (in shares)			13,521,379	13,521,379
Vested (in shares)	13,521,379
Outstanding, weighted average fair value			$ 0.13	$ 0.13
Vested, weighted average fair value	$ 0.13
SARs
Stock-Based Compensation
Outstanding (in shares)	26,890,832	26,890,832
Outstanding, weighted average fair value	$ 0.12	$ 0.12

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Income Taxes - Carryforward (Details) $ in Thousands	Mar. 31, 2026 USD ($)
Income Taxes
Operating loss carryforwards	$ 27,329

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Commitments and Contingencies - Agreements (Details) - USD ($) $ in Thousands	Dec. 30, 2024	Apr. 04, 2023	Mar. 31, 2026
Brisby Inc
Commitments and Contingencies
Milestone consideration term		10 years
Milestone target annual net sales		$ 15,000
Brisby Inc
Commitments and Contingencies
Milestone payable in cash or combination		3,500
Milestone on annual net sales		5,000
Milestone target annual net sales		15,000
Payments per collaborative arrangement			$ 1,711
Remaining contractual obligation			$ 1,789
Brisby Inc | Brisby Inc
Commitments and Contingencies
Equity method investment (as a percent)			19.50%
Brisby Inc | Smart Pet Pad
Commitments and Contingencies
Milestone on first commercial sale of product		$ 750
Milestone consideration term		10 years
Brisby Inc | Intelligent Pet Pad
Commitments and Contingencies
Milestone on first commercial sale of product		$ 750
Milestone consideration term		10 years
Cresilon
Commitments and Contingencies
Payments per collaborative arrangement	$ 1,500
Minimum royalty obligation	$ 1,000
Cresilon | Minimum
Commitments and Contingencies
Royalty payments on sales (as a percent)	5.00%
Cresilon | Maximum
Commitments and Contingencies
Royalty payments on sales (as a percent)	15.00%
Cresilon | First level
Commitments and Contingencies
Milestone payable in cash or combination	$ 1,000
Milestone consideration term	5 years
Milestone target annual net sales	$ 3,000
Cresilon | Second level
Commitments and Contingencies
Milestone payable in cash or combination	$ 1,000
Milestone consideration term	5 years
Milestone target annual net sales	$ 5,000
Cresilon | Third level
Commitments and Contingencies
Milestone payable in cash or combination	$ 2,000
Milestone consideration term	5 years
Milestone target annual net sales	$ 10,000
Oxford Science, Inc.
Commitments and Contingencies
Payments per collaborative arrangement			$ 1,750
Upfront payment			$ 250

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Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2026 USD ($) segment	Mar. 31, 2025 USD ($)
Segment Information
Number of reportable segments | segment	3
Net revenue	$ 8,799	$ 6,500
Cost of revenue	3,315	2,093
Gross profit	5,484	4,407
US
Segment Information
Net revenue	7,383	5,053
Foreign countries
Segment Information
Net revenue	1,416	1,447
Diagnostics
Segment Information
Net revenue	966	559
Cost of revenue	615	557
Gross profit	351	2
Therapeutic Devices
Segment Information
Net revenue	5,821	5,941
Cost of revenue	1,773	1,536
Gross profit	4,048	$ 4,405
Development Services
Segment Information
Net revenue	2,012
Cost of revenue	927
Gross profit	$ 1,085

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Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Loss Per Share
Net loss for the period	$ (4,534)	$ (63,809)
Weighted average shares - basic (in shares)	979,949,668	979,949,668
Loss per share - basic (in dollars per share)	$ 0	$ (0.07)
Loss per share - diluted (in dollars per share)	$ 0	$ (0.07)

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Loss Per Share - Anti-dilutive (Details) - shares	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Stock options
Antidilutive securities
Antidilutive securities (in shares)	94,388,471	91,830,136
Warrants
Antidilutive securities
Antidilutive securities (in shares)	32,000,000	32,561,418