Zomedica (ZOM) 10-Q10 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2023	Aug. 10, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-38298
Entity Registrant Name	Zomedica Corp.
Entity Incorporation State Country Code	Z4
Entity Tax Identification Number	00-0000000
Entity Address Address Line 1	100 Phoenix Drive
Entity Address Address Line 2	Suite 125
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
Security 12b Title	Common Shares
Trading Symbol	ZOM
Security Exchange Name	NYSE
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	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 27,951	$ 27,399
Available-for-sale securities	102,522	87,693
Trade receivables, net	654	596
Inventory, net	3,634	2,746
Prepaid expenses and deposits	3,562	3,799
Other receivables	1,302	1,268
Total current assets	139,625	123,501
Prepaid expenses and deposits	126	188
Property and equipment, net	7,291	6,809
Construction in progress	2,146	692
Right-of-use asset	1,355	1,665
Goodwill	63,979	63,979
Intangible assets, net	48,071	41,799
Non current available-for-sale securities	11,920	40,712
Other assets	265	265
Total assets	274,778	279,610
Current liabilities
Accounts payable and accrued liabilities	6,144	6,698
Accrued income taxes	74	187
Current portion of lease obligations	641	641
Customer contract liabilities	255	207
Other current liabilities	96	78
Total current liabilities	7,210	7,811
Lease obligations	781	1,097
Deferred tax liabilities	1,245	1,245
Customer contract liabilities	291	182
Liability due to Qorvo	3,591
Other liabilities	2,181	1,883
Total liabilities	15,299	12,218
Commitments and contingencies (Note 16)
Shareholders' equity
Unlimited common shares, no par value; 979,949,668 issued and outstanding at June 30, 2023 and December 31, 2022	380,973	380,973
Additional paid-in capital	27,156	23,666
Accumulated deficit	(148,038)	(136,404)
Accumulated comprehensive loss	(612)	(843)
Total shareholders' equity	259,479	267,392
Total liabilities and shareholders' equity	$ 274,778	$ 279,610

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Consolidated Balance Sheets
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

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Consolidated Statements of Operations and Comprehensive Loss
Net revenue	$ 6,020	$ 4,246	$ 11,502	$ 7,997
Cost of revenue	1,972	1,240	3,619	2,250
Gross profit	4,048	3,006	7,883	5,747
Expenses
Research and development	859	319	1,777	670
Selling, general and administrative	9,931	8,567	20,360	15,270
Loss from operations	(6,742)	(5,880)	(14,254)	(10,193)
Interest income	1,460	277	2,872	384
Interest expense	(62)		(112)
Gain (loss) on disposal of assets	1	(1)	1	(1)
Other income (loss)		1	(1)	(4)
Foreign exchange gain (loss)	17	(52)	(9)	(56)
Loss before income taxes	(5,326)	(5,655)	(11,503)	(9,870)
Income tax expense (benefit)	(77)	(382)	131	(660)
Net loss	(5,249)	(5,273)	(11,634)	(9,210)
Unrealized gain (loss), change in fair value of available-for-sale securities, net of tax	(8)		275
Change in foreign currency translation	(47)	(40)	(44)	11
Net loss and comprehensive loss	$ (5,304)	$ (5,313)	$ (11,403)	$ (9,199)
Weighted average number of common shares - basic (in shares)	979,949,668	979,899,668	979,949,668	979,899,668
Weighted average number of common shares - diluted (in shares)	979,949,668	979,899,668	979,949,668	979,899,668
Loss per share - basic (in dollars per share)	$ (0.005)	$ (0.005)	$ (0.012)	$ (0.009)
Loss per share - diluted (in dollars per share)	$ (0.005)	$ (0.005)	$ (0.012)	$ (0.009)

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Comprehensive (Loss)	Total
Balance, amount at Dec. 31, 2021	$ 380,962	$ 9,313	$ (119,391)	$ 2	$ 270,886
Balance (in shares) at Dec. 31, 2021	979,899,668
Stock-based compensation		4,533			4,533
Net loss			(9,210)		(9,210)
Other Comprehensive Income				11	11
Balance, amount at Jun. 30, 2022	$ 380,962	13,846	(128,601)	13	266,220
Balance (in shares) at Jun. 30, 2022	979,899,668
Balance, amount at Mar. 31, 2022	$ 380,962	11,354	(123,328)	53	269,041
Balance (in shares) at Mar. 31, 2022	979,899,668
Stock-based compensation		2,492			2,492
Net loss			(5,273)		(5,273)
Other Comprehensive Income				(40)	(40)
Balance, amount at Jun. 30, 2022	$ 380,962	13,846	(128,601)	13	266,220
Balance (in shares) at Jun. 30, 2022	979,899,668
Balance, amount at Dec. 31, 2022	$ 380,973	23,666	(136,404)	(843)	267,392
Balance (in shares) at Dec. 31, 2022	979,949,668
Stock-based compensation		3,490			3,490
Net loss			(11,634)		(11,634)
Other Comprehensive Income				231	231
Balance, amount at Jun. 30, 2023	$ 380,973	27,156	(148,038)	(612)	259,479
Balance (in shares) at Jun. 30, 2023	979,949,668
Balance, amount at Mar. 31, 2023	$ 380,973	25,431	(142,789)	(557)	263,058
Balance (in shares) at Mar. 31, 2023	979,949,668
Stock-based compensation		1,725			1,725
Net loss			(5,249)		(5,249)
Other Comprehensive Income				(55)	(55)
Balance, amount at Jun. 30, 2023	$ 380,973	$ 27,156	$ (148,038)	$ (612)	$ 259,479
Balance (in shares) at Jun. 30, 2023	979,949,668

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (11,634)	$ (9,210)
Adjustments for:
Depreciation	340	161
Amortization - intangible assets	2,492	1,495
Loss on disposal of property and equipment	1	1
Stock-based compensation	3,490	4,533
Non cash portion of rent expense	(5)	9
Accretion/amortization of available-for-sale securities	(1,247)
Change in assets and liabilities, net of acquisitions:
Purchased inventory	(1,561)	(2,572)
Prepaid expenses and deposits	297	(410)
Trade receivables	(52)	(96)
Other receivables	14	131
Accounts payable and accrued liabilities	(538)	292
Accrued income tax	(114)	(199)
Deferred tax liabilities		(661)
Other current liabilities	18	4
Customer contract liabilities	157	(25)
Other liabilities	409	30
Net cash used in operating activities	(7,933)	(6,517)
Cash flows from investing activities:
Investment in available-for-sale securities	17,178
Investment in debt security (at fair value)	(1,750)	(1,000)
Investment in property and equipment	(143)	(151)
Acquisition of intangibles	(4,066)
Investment in construction in progress	(2,690)	(492)
Net cash provided by (used in) investing activities	8,529	(1,643)
(Decrease) increase in cash and cash equivalents	596	(8,160)
Effect of exchange rate changes on cash	(44)	(29)
Cash and cash equivalents, beginning of year	27,399	194,952
Cash and cash equivalents, end of period	27,951	186,763
Noncash activities:
Change in fair value of available-for-sale securities, net of tax	275
Transfer of construction in progress into property and equipment and intangibles	1,344
Transfer of inventory into property and equipment	668	557
Supplemental cash flow information:
Interest received	$ 1,589	$ 384

Nature of Operations

Nature of Operations	6 Months Ended
Nature of Operations	Jun. 30, 2023
Nature of Operations
Nature of Operations	1. Nature of Operations Zomedica is a veterinary health company creating products for companion animals by focusing on the unmet needs of clinical veterinarians. The Company consists of the parent company, Zomedica Corp. and its wholly-owned U.S subsidiary, Zomedica Inc. and its international subsidiaries. Changes in Macroeconomic Conditions We are currently dealing with the aftermath of global changes in the macro-economic environment including disruptions in supply chain, labor disruptions, challenges in manufacturing, COVID-19 related concerns, challenges selling to customers, declines in customer demand, inflationary pressures, rising interest rates, and an impaired ability to access credit and capital markets, among other things. There are uncertainties as to the outcome of current financial conditions, including recessionary environment or a contraction in the economy, which may impact overall consumer demand and supply requirements.

Basis of Preparation

Basis of Preparation	6 Months Ended
Basis of Preparation	Jun. 30, 2023
Basis of Preparation
Basis of Preparation	2. Basis of Preparation Principles of Consolidation The 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 consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
Significant Accounting Policies	Jun. 30, 2023
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. Business Combinations We account for business combinations in accordance with ASC 805, Business Combinations, if the acquired assets assumed and liabilities incurred constitute a business. We consider acquired companies to constitute a business if the acquired net assets and processes have the ability to create outputs in the form of revenue. For acquired companies constituting a business, we recognize the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognize any excess of total consideration paid over the fair value of the identifiable net assets as goodwill. Estimates and Assumptions In preparing these 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, as determined by management, 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 are 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 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 of the exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations and comprehensive loss. Comparative Figures A portion of depreciation expense for the three and six months ended June 30, 2023 has been stated as part of cost of revenue for $102 and $193 respectively. The consolidated statements of income and comprehensive income for the three and six months ended June 30, 2022 have been adjusted for $30 and $51 respectively for depreciation that was included in selling, general, and administrative expense. This amount has been reclassified to cost of revenue to conform to the current year presentation. The change in presentation had no effect on the reported results of operations and does not affect previously reported cash flows from operating activities in the consolidated statements of cash flows. To better align with the way in which we measure and track our business, we have changed the categorization of products within our segmentation of revenue. A portion of the products in our Therapeutics segment were previously designated as instruments and trodes in our form 10Q for the period ending June 30, 2022. These products have since been renamed to be capital and consumables to better align with our other platforms and to provide a more consistent baseline for comparison of the product lines within. Capital refers to the devices we sell within our PulseVet ® ® ® ® ® 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 and Therapeutics. Cash and Cash Equivalents The Company considers all highly liquid securities with an original maturity of three months or less to be cash equivalents. 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 and Equity 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 shareholders’ equity. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded net of an allowance for credit losses and have payment terms of 30 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 June 30, 2023, our allowance was $66 and was recorded net in trade receivables. While we believe that our allowance for credit losses is adequate and represents our best estimate as of June 30, 2023, 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, plant 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. Intangible Assets Expenditures related to the planning and operation of the Company’s website are expensed as incurred. Expenditures related to the website application and infrastructure development are capitalized and amortized over the website’s estimated useful life. Costs related to acquired customer relationships, developed technology, licenses, trademarks, and tradenames have been capitalized and amortized over the estimated useful life. Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful lives and amortization methods are reviewed at the end of each year, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses. Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment when events or circumstances indicate that the carrying value of an asset may not be recoverable. For assets that are to be held and used, impairment is recognized when the sum of estimated undiscounted future cash flows associated with the asset or group of assets is less than its carrying value. If impairment exists, an adjustment is made to write the asset down to its fair value, and a loss is recorded as the difference between the carrying value and fair value. 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, 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. The nature of the Company’s PulseVet ® At times the Company receives consideration prior to when the performance obligation is completed, giving rise to a contract liability. 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 and six months ended June 30, 2023 and 2022 is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, Diagnostics Therapeutics Consolidated Diagnostics Therapeutics Consolidated 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Capital $ 67 $ - $ 1,892 $ 1,543 $ 1,959 $ 1,543 $ 284 $ - $ 3,386 $ 3,102 $ 3,670 $ 3,102 Consumables 182 92 3,850 2,579 4,032 2,671 364 148 7,416 4,680 7,780 4,828 Other (e.g., warranty and repairs) - - 29 32 29 32 - - 52 67 52 67 Total revenue $ 249 $ 92 $ 5,771 $ 4,154 $ 6,020 $ 4,246 $ 648 $ 148 $ 10,854 $ 7,849 $ 11,502 $ 7,997 Cost of Revenue Cost of goods sold consists of overhead, materials, labor, and shipping costs incurred internally to produce and receive the products. Shipping and handling costs incurred by the Company are included in cost of revenue. Research and Development Stock-based Compensation The Company calculates stock-based compensation using the fair value method, under which the fair value of the options at the grant date is calculated using the Black-Scholes Option Pricing Model, and subsequently expensed over the vesting period of the option using the graded vesting method. The provisions of the Company’s stock-based compensation plans do not require the Company to settle any options by transferring cash or other assets, and therefore the Company classifies the awards as equity. Stock-based compensation expense recognized during the period is based on the value of stock-based payment awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, 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 the United States and various states, 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 The Company follows ASC topic 220. This statement establishes standards for reporting and display of comprehensive (loss) income and its components. 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 its Japanese subsidiary. Loss Per Share

Critical Accounting Judgments a

Critical Accounting Judgments and Key Sources of Estimation Uncertainty	6 Months Ended
	Jun. 30, 2023
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 review affects both current and future periods. Critical areas of estimation and judgements in applying accounting policies include the following: Intangible Assets and Business Combinations Assets acquired and liabilities assumed as part of a business combination are recognized at their acquisition date fair values. In determining these fair values, we utilize various forms of the income, cost, and market approaches depending on the asset or liability being valued. We use a discounted cash flow model to measure the customer relationship, developed technology, license, trademark, and tradename assets. The estimation of fair value requires significant judgment related to future net cash flows based on assumptions related to revenue and EBITDA growth rates, discount rates, and attrition factors. Inputs are generally determined by taking into account competitive trends, market comparisons, independent appraisals, and historical data, among other factors, and are supplemented by current and anticipated market conditions. Impairment Testing We evaluate 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 may 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 consider 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 indicates a goodwill impairment is more likely than not, we perform 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 is recognized for the difference, up to the carrying amount of goodwill. We estimate 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. Valuation and Payback of Property and Equipment Diagnostic based TRUFORMA ® Revenue Recognition and Liabilities Due to Customers 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.

Investment Securities

Investment Securities	6 Months Ended
Investment Securities	Jun. 30, 2023
Investment Securities
Investment Securities	5. Investment Securities The following represents the Company’s investment securities as of June 30, 2023 (in thousands): Acquisition Cost Accretion / (Amortization) Unrealized Gain / (Loss) Estimated Fair Value Commercial paper $ 16,772 $ 535 $ (12) $ 17,295 Corporate notes / bonds 39,204 408 (392) 39,220 Debt security 2,750 - - 2,750 U.S. treasuries 12,639 177 (127) 12,689 U.S. govt. agencies 42,549 194 (255) 42,488 Money market funds 25,310 - - 25,310 Total investment securities $ 139,224 $ 1,314 $ (786) $ 139,752 Accretion / (amortization) refers to the discounts and premiums incurred on bonds and notes purchased and are included within interest income on our consolidated income statement. Accrued interest receivable related to the above investment securities amounted to $771 and is included within Other Receivables on our consolidated balance sheets. Contractual maturities of investment securities as of June 30, 2023 are as follows (in thousands): Acquisition Cost Estimated Fair Value Original maturities of 90 days or less $ 25,310 $ 25,310 Original maturities of 91-365 days 101,877 102,522 Original maturities of 366+ days 12,037 11,920 Total investment securities $ 139,224 $ 139,752

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2023
Fair Value Measurements
Fair Value Measurements	6. Fair Value Measurements In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” (“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 Topic 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 Topic 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, accounts receivable, and accounts payable: Available-for-sale securities: Earnout liability: Included within these available-for-sale securities are $2,750 in convertible notes associated with Structured Monitoring Products, Inc.’s (“SMP”) VetGuardian ® In accordance with the fair value hierarchy described above, the following table shows the fair value of our investments as of June 30, 2023: Level 1 Level 2 Level 3 Estimated Fair Value Commercial paper $ - $ 17,295 $ - $ 17,295 Corporate notes / bonds - 39,220 - 39,220 Debt security - - 2,750 2,750 U.S. treasuries 12,689 - - 12,689 U.S. govt. agencies 42,488 - - 42,488 Money market funds 25,310 - - 25,310 Total investment securities $ 80,487 $ 56,515 $ 2,750 $ 139,752 The following table shows these same investments and their respective balance sheet classifications: Cash & Cash Equiv. Available- For-Sale (Current) Available- For-Sale (Non-Current) Estimated Fair Value Commercial paper $ - $ 17,295 $ - $ 17,295 Corporate notes / bonds - 37,928 1,292 39,220 Debt security - - 2,750 2,750 U.S. treasuries - 10,740 1,949 12,689 U.S. govt. agencies - 36,559 5,929 42,488 Money market funds 25,310 - - 25,310 Total investment securities $ 25,310 $ 102,522 $ 11,920 $ 139,752 Unrealized gains 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 June 30, 2023.

Business Combinations

Business Combinations	6 Months Ended
Business Combinations	Jun. 30, 2023
Business Combinations
Business Combinations	7. Business Combinations All of the Company’s acquisitions of businesses have been accounted for under ASC 805, Business Combinations. Accordingly, the assets of the acquired companies reflect the fair values and have been included in the Company’s Condensed Financial Statements from their respective dates of acquisition. The results of operations of Pulse Veterinary Technologies, LLC, Revo Squared LLC, and Assisi Animal Health, LLC have been included in the Company’s Condensed Financial Statements since the dates of acquisition on October 1, 2021, June 14, 2022, and July 15, 2022, respectively. 2022 Acquisitions Asset Purchase Agreement with Assisi Animal Health LLC On July 15, 2022, Zomedica Corp. and its wholly owned subsidiary Zomedica Inc. entered into an Asset Purchase Agreement with Assisi Animal Health LLC (“Assisi”), its wholly owned subsidiary, AAH Holdings LLC, and certain of Assisi’s members (collectively the “Seller”) pursuant to which Zomedica Inc. agreed to acquire substantially all of the assets related to the Assisi ® ® ® ® ® Zomedica Inc. paid Assisi a purchase price of $18,293 in cash, which was subject to adjustments based on, among other things, the value of Assisi’s inventory and prepaid expenses at the closing of the acquisition. A portion of the purchase price ($1,400) was deposited into a third-party escrow account to support AAH Holdings LLC and certain of Assisi’s members’ indemnification obligation under the Purchase Agreement, of which $500 was released and $900 will be distributed to Assisi on the 18-month anniversary of the Closing Date, respectively, less the amount of prior or pending indemnification claims. The Company also issued to Assisi a ten-year warrant to purchase an aggregate of 22,000,000 of the Company’s common shares at a per share exercise price equal to $0.252 . The warrants may be exercised on a cash or cashless basis, at the election of the warrant holder. As a result of total consideration exceeding the preliminary fair value of the net assets acquired, goodwill in the amount of $14,329 was recorded in connection with this acquisition, which will be deductible for US tax purposes. The goodwill largely results from our ability to market and sell their respective products and services through our established customer base. The Company made a preliminary allocation of the purchase price for Assisi’s asset base based on its understanding of the fair value of the acquired assets and assumed liabilities. As the Company continues to obtain additional information about these assets and liabilities, including intangible asset appraisals, inventory valuation, and accrued expenses, and continues to integrate the newly acquired business, the Company will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company will continue to make required adjustments to the purchase price allocation prior to the completion of the acquisition period. The following table summarizes the preliminary acquisition date fair values of the assets acquired and liabilities assumed and subsequent initial period adjustments: Initial Measurement Allocation of Period Updated Consideration Adjustments Allocation Inventory, net $ 220 $ — $ 220 Prepaid expenses and deposits 271 — 271 Other receivables 406 (206) 200 Right of use asset — 260 260 Intangible Assets (estimated useful life) E-commerce technology ( 2 years) 200 — 200 Trade name ( 5 years) 300 — 300 Developed technology ( 10 years) 4,500 — 4,500 Customer relationships ( 19 years) 2,800 — 2,800 Total assets acquired 8,697 54 8,751 Current portion of lease obligations — 49 49 Non current portion of lease obligations — 211 211 Other non current liabilities 45 — 45 Total liabilities assumed 45 260 305 Net assets acquired, excluding goodwill 8,652 (206) 8,446 Goodwill 14,329 206 14,535 Net assets acquired $ 22,981 $ — $ 22,981 Purchase price consideration was made up of the following: Cash $ 18,293 Fair value of warrants $ 4,688 Total $ 22,981 The determination of the final purchase price allocation to specific assets and liabilities assumed is incomplete. The purchase price allocation may change in future periods as the fair value estimates of the assets (including intangibles) and liabilities are adjusted. The following table provides unaudited proforma financial information, prepared in accordance with Topic 805, for the three and six months ended June 30, 2023 and 2022, as if Assisi had been acquired as of January 1, 2022. Proforma results do not include the effect of any synergies anticipated to be achieved from the acquisition, and accordingly, are not necessarily indicative of the results that would have occurred if the acquisition had occurred on the date indicated or that may result in the future. For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net Revenue $ 6,020 $ 5,542 $ 11,502 $ 10,595 Net Losses $ (5,249) $ (5,330) $ (11,634) $ (9,849) The proforma amounts have been calculated by including the results of Assisi, and adjusting the combined results to give effect to the following, as if the acquisitions had been consummated on January 1, 2022, together with the consequential tax effects thereon: For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Adjustments to net revenues Assisi preacquisition revenues $ - $ 1,296 $ - $ 2,598 Adjustments to net income Assisi preacquisition net losses $ - $ (57) $ - $ (639) Asset Purchase Agreement with Revo Squared LLC On July 1, 2022, the parties consummated the acquisition. At the closing, Zomedica Inc. paid Revo Squared a base purchase price of $6,011 in cash, which was subject to adjustments based on the amount of Revo Squared’s working capital at the closing. On this date, $500 of the purchase price was deposited into a third-party escrow account for a period of fifteen months to support Revo Squared’s indemnification obligation under the Purchase Agreement. The Company also issued to Revo Squared a ten-year warrant to purchase an aggregate of 10,000,000 of the Company’s common shares at a per share exercise price equal to $0.2201 . The warrants may be exercised on a cash or cashless basis, at the election of the warrant holder. In addition, Zomedica Inc. has agreed to pay Revo Squared aggregate earn-out payments of up to $4,000 based on the achievement of milestones related to future net sales from Revo Squared Products. One-time earn-out payments of $2,000 each will be payable upon net sales from Revo Squared Products exceeding $5,000 and $10,000 during any calendar year ending on or prior to December 31, 2027. The fair value of the earnout liability was adjusted from $2,000 to $1,500 at December 31, 2022. Fair value of the earnout was determined using Level 3 inputs. As a result of total consideration exceeding the preliminary fair value of the net assets acquired, goodwill in the amount of $6,528 was recorded in connection with this acquisition, which will be deductible for US tax purposes. The goodwill largely results from our ability to market and sell their respective products and services through our established customer base. The Company made a preliminary allocation of the purchase price for Revo Squared’s asset base based on its understanding of the fair value of the acquired assets and assumed liabilities. As the Company continues to obtain additional information about these assets and liabilities, including intangible asset appraisals, inventory valuation, and accrued expenses, and continues to integrate the newly acquired business, the Company will refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment. The Company will continue to make required adjustments to the purchase price allocation prior to the completion of the acquisition period. The following table summarizes the preliminary acquisition date fair values of the assets acquired and liabilities assumed and subsequent initial period adjustments: Initial Measurement Allocation of Period Updated Consideration Adjustments Allocation Trade receivables, net $ 8 $ — $ 8 Prepaid expenses and deposits 10 — 10 Intangible Assets (estimated useful life) Trade name ( 5 years) 200 — 200 Developed technology ( 10 years) 2,300 — 2,300 Customer relationships ( 16 years) 1,200 — 1,200 Total assets acquired 3,718 — 3,718 Earnout liabilities 2,458 (458) 2,000 Total liabilities assumed 2,458 (458) 2,000 Net assets acquired, excluding goodwill 1,260 458 1,718 Goodwill 6,528 (458) 6,070 Net assets acquired $ 7,788 $ — $ 7,788 Purchase price consideration was made up of the following: Cash $ 6,011 Fair value of warrants 1,777 Total $ 7,788 The determination of the final purchase price allocation to specific assets and liabilities assumed is incomplete. The purchase price allocation may change in future periods as the fair value estimates of the assets (including intangibles) and liabilities are adjusted.

Inventory

Inventory	6 Months Ended
Inventory	Jun. 30, 2023
Inventory
Inventory	8. Inventory Inventory details are as follows: June 30, 2023 December 31, 2022 Diagnostics Therapeutics Consolidated Diagnostics Therapeutics Consolidated Raw Materials $ 1 $ 2,210 $ 2,211 $ — $ 1,685 $ 1,685 Finished Goods 339 342 681 — 182 182 Purchased Inventory 287 488 775 139 780 919 Total 627 3,040 3,667 139 2,647 2,786 Reserves (11) (22) (33) (18) (22) (40) Net inventory $ 616 $ 3,018 $ 3,634 $ 121 $ 2,625 $ 2,746

Prepaid Expenses and Deposits

Prepaid Expenses and Deposits	6 Months Ended
Prepaid Expenses and Deposits	Jun. 30, 2023
Prepaid Expenses and Deposits.
Prepaid Expenses and Deposits	9. Prepaid Expenses and Deposits June 30, December 31, 2023 2022 Deposits $ 2,668 $ 1,886 Prepaid marketing 109 114 Prepaid insurance 574 614 Prepaid taxes — 753 Other 337 620 Total prepaid expenses and deposits $ 3,688 $ 3,987

Property and Equipment

Property and Equipment	6 Months Ended
Property and Equipment	Jun. 30, 2023
Property and Equipment
Property and Equipment	June 30, December 31, 2023 2022 Machinery and office equipment $ 7,209 $ 6,487 Furniture and equipment 120 111 Laboratory equipment 337 249 Leasehold improvements 1,239 1,239 8,905 8,086 Accumulated depreciation and amortization 1,614 1,277 Net property and equipment $ 7,291 $ 6,809 Depreciation expense for the six months ended June 30, 2023 and 2022 was $340 and $161, respectively.

Intangible Assets

Intangible Assets	6 Months Ended
Intangible Assets	Jun. 30, 2023
Intangible Assets
Intangible Assets	11. Intangible Assets June 30, December 31, 2023 2022 Computer software $ 1,635 $ 350 Customer relationships 26,651 26,651 Licenses 7,479 - Technology 15,650 15,650 Trademarks 16 16 Tradename 2,850 2,850 Website 962 962 55,243 46,479 Accumulated amortization 7,172 4,680 Net intangibles $ 48,071 $ 41,799 Included within intangibles are Qorvo related licenses of $7,479 comprised of a one-time license fee of $4,000 that was paid on the effective date of the agreement and the discounted value of an obligation to make a second $4,000 payment upon completion of the installation qualification process for a cartridge production line. The liability associated with the second payment is being recorded in the “Liability Due to Qorvo” line in our Condensed Consolidated Balance Sheets. The estimated future amortization of intangible assets is as follows: 2023 $ 2,647 2024 5,243 2025 5,080 2026 4,637 2027 and beyond 30,464 Total $ 48,071 Amortization expense for the six months ended June 30, 2023 and 2022 was $2,492 and $1,495, respectively.

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2023
Leases
Leases	12. Leases On February 1, 2021 the Company downsized its office space and modified its existing lease with Wickfield Phoenix LLC. The new lease period was for forty-eight months , commencing on February 1, 2021 and ending on January 31, 2025 with a monthly rent payment of $12 for the first two months and escalating to $31 over the lease period. The carrying value of the right of use asset was $1,258 upon modification using the Company's incremental borrowing rate of 3.95% . During the period ending March 31, 2021 the Company recorded a gain on right-of-use asset of $24 in the consolidated statements of comprehensive loss. On September 15, 2021, the Company entered into an additional lease with Wickfield Phoenix LLC for warehousing space. The new lease period is for forty-one months , commencing on September 15, 2021, and ending on January 31, 2025, with a monthly rent payment of $5 for the first month and escalating to $10 over the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $366 using the Company's incremental borrowing rate of 3.95% . On April 1, 2022, the Company entered into an agreement with ULF Northfield Business Center LLC to lease 12,400 square feet of office and warehouse space. The lease period is for sixty-one months beginning on April 1, 2022, with a monthly rent payment of $9 for the first twelve months and escalating to $11 per month over the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $546 using an incremental borrowing rate of 3.95% . On July 1, 2022, as part of the Revo Squared Purchase, the Company assumed an agreement with Lebow 1031 Legacy, LLC to lease 4,626 square feet of office space. The remaining lease period assumed at the time of the agreement is for eighteen months beginning on July 1, 2022 and lasting through December of 2023. The lease has a monthly rent payment of $4 per month over the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $67 using an incremental borrowing rate of 7.00% . On July 15, 2022, as part of the Assisi asset purchase agreement, the Company assumed a license agreement pursuant to a lease agreement between The Wheelership LLC and The Realty Associates Fund XII portfolio, L.P., whereby Assisi sublet 5,185 square feet of warehousing space. The remaining lease period assumed at the time of the agreement is for fifty-two months beginning on August 16, 2022 and lasts through November of 2026. The lease has a rent payment of $4 for the first month and escalates to $6 per month over the lease period. The Company recorded a right-of-use asset and corresponding lease liability for $260 using an incremental borrowing rate of 7.00% . On May 10, 2023, the Company amended the lease agreement with ULF Northfield Business Center LLC to expand the lease by 6,000 square feet, to a total of 18,400 square feet, and extend the lease term from the date ending April 30, 2027 to sixty months after the earlier of the date on which the landlord delivers the expanded premises to the Company or December 1, 2023. The expanded premises has not yet been delivered to the Company, but upon delivery, the rent will increase to $16 for the first month and escalate over the course of the lease to $22 per month in the final year. For the three and six months ended June 30, 2023, the Company recognized $213 and $412 in rent expense inclusive of common area maintenance (CAM) charges, insurance, and tax with $23 and $41 recorded into cost of revenue, $66 and $106 recorded in research and development expenses, and $124 and $265 recorded in general and administrative expense in the consolidated statements of comprehensive loss. For the three and six months ended June 30, 2022, the Company recognized $179 and $331 in rent expense inclusive of common area maintenance (CAM) charges, insurance, and tax with $18 and $34 recorded in research and development expenses, and $161 and $297 recorded in general and administrative expense in the consolidated statements of comprehensive loss. We did not transfer any of the rent to cost of revenue in 2022. June 30, December 31, 2023 2022 Right-of-use asset Cost Aggregate lease commitments $ 2,759 $ 2,759 Less: impact of present value (262) (262) Balance $ 2,497 $ 2,497 Reduction in right-of-use asset Straight line amortization 1,292 946 Interest (150) (114) Balance $ 1,142 $ 832 Net book value as at: Balance $ 1,355 $ 1,665 Lease liabilities Additions $ 2,520 $ 2,520 Payments (1,248) (896) Interest 150 114 Total lease liabilities $ 1,422 $ 1,738 Current portion of lease liabilities 641 641 Long term portion of lease liabilities 781 1,097 Total lease liabilities $ 1,422 $ 1,738 Total remaining undiscounted lease liabilities related to the above lease are as follows: 2023 $ 354 2024 679 2025 237 2026 197 2027 44 Total lease payments $ 1,511 Less imputed interest 89 Total $ 1,422 Our weighted-average remaining lease term and discount rate are as follows: Six Months Ended June 30, 2023 Weighted-average remaining lease term 2.5 years Weighted-average discount rate 4.5%

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2023
Stock-Based Compensation
Stock-Based Compensation	13. Stock-Based Compensation During the three and six months ended June 30, 2023, the Company issued 1,455,000 and 8,165,000 stock options to purchase an aggregate of 1,455,000 and 8,165,000 common shares. These options also vest over a period of four years and have an expiration period of 10 years . During the three and six months ended June 30, 2022, the Company issued 6,575,000 and 21,000,000 stock options to purchase an aggregate of 6,575,000 and 21,000,000 common shares. These options also vest over a period of four years and have an expiration period of 10 years . The continuity of stock options are as follows: Number of Weighted Avg Options Exercise Price Balance at December 31, 2022 84,112,443 $ 0.3602 Stock options granted 8,165,000 0.1998 Stock options forfeited 2,095,000 0.3441 Vested stock options expired 727,500 1.1228 Balance at June 30, 2023 89,454,943 $ 0.3397 Vested at June 30, 2023 30,045,224 $ 0.3497 As of June 30, 2023, details of the issued and outstanding stock options are as follows: Grant Year Weighted Avg. Exercise Price Number of Options Issued and Outstanding Number of Vested Options Outstanding Number of Unvested Options Outstanding Weighted Avg. Remaining Life Outstanding (Years) 2020 0.22 17,137,724 15,938,974 1,198,750 2.45 2021 0.66 20,050,000 6,900,000 13,150,000 3.12 2022 0.27 44,142,219 7,206,250 36,935,969 4.07 2023 0.24 8,125,000 — 8,125,000 4.73 Balance at June 30, 2023 89,454,943 30,045,224 59,409,719 The Company calculates volatility of stock-based compensation using the historical price of the Company’s stock. An increase/decrease in the volatility would have resulted in an increase/decrease in the fair value of the options. The fair value of options granted during the three months ended June 30, 2023 and the twelve months ended December 31, 2022 were estimated using the Black-Scholes option pricing model to determine the fair value of options granted using the following assumptions: Grant Year Weighted Avg. Volatility Weighted Avg. Risk-Free Int. Rate Weighted Avg. Expected Life (In Years) Weighted Avg. Common Share Price Weighted Avg. Exercise Price 2020 96 % 0.47 % 9.53 $ 0.21 $ 0.22 2021 117 1.09 6.20 0.65 0.66 2022 112 3.10 5.91 0.26 0.27 2023 110 3.69 6.25 0.23 0.24 For the three months and six months ended June 30, 2023, the Company recorded $1,725 and $3,490 of stock-based expense. For the three months and six months ended June 30, 2022, the Company recorded $2,492 and $4,533 of stock-based expense.

Warrants

Warrants	6 Months Ended
Warrants	Jun. 30, 2023
Warrants
Warrants	14. Warrants The Company values warrants issued in equity placements using the Black Scholes model to allocate the fair value of the proceeds from equity financings using a relative fair value approach. Like other stock-based compensation, management uses judgment to determine the inputs to the Black-Scholes option pricing model including the expected life, and underlying share price volatility. Changes in these assumptions will impact the calculation of fair value and the value attributed to the warrants. The Company calculates volatility of warrants based on the historical price of the Company’s stock. An increase/decrease in the volatility would have resulted in an increase/decrease in the fair value of the options. In connection with the July 1, 2022 asset acquisition of Revo Squared, the Company issued a ten-year warrant to purchase 10,000,000 common shares at a per share exercise price equal to $0.2201 . The warrants may be exercised on a cash or cashless basis, at the election of the warrant holder. As of June 30, 2023, no warrants have been exercised. In connection with the July 15, 2022 asset acquisition of Assisi, the Company issued a ten-year warrant to purchase 22,000,000 common shares at a per share exercise price equal to $0.2520 . The warrants may be exercised on a cash or cashless basis, at the election of the warrant holder. As of June 30, 2023, no warrants have been exercised. As of June 30, 2023, details of the outstanding warrants were as follows: Weighted Average Exercise Warrants Remaining Original Issue date Price Outstanding Life February 14, 2020 (Series A) 0.1500 197,917 1.62 April 9, 2020 (Series B) 0.1500 363,501 1.78 May 29, 2020 (Series C) 0.1500 - - July 7, 2020 (Series D) 0.1600 - - July 1, 2022 (Revo Squared) 0.2201 10,000,000 9.01 July 15, 2022 (Assisi) 0.2520 22,000,000 9.05 Balance at June 30, 2023 32,561,418 Warrants Warrants Warrant Series Exercised Amount Expired Amount February 14, 2020 (Series A) 21,677,084 $ 4,293 — $ — April 9, 2020 (Series B) 17,969,833 2,695 — — May 29, 2020 (Series C) 133,213,333 19,982 120,000 18 July 7, 2020 (Series D) 187,269,000 29,963 231,000 37 July 1, 2022 (Revo Squared) — — — — July 15, 2022 (Assisi) — — — — Total 360,129,250 $ 56,933 351,000 $ 55

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
Income Taxes
Income Taxes	15. Income Taxes The Company is in an overall net deferred tax liability position as of June 30, 2023. Management has assessed that the future taxable income resulting from the deferred tax liability position will result in utilization of the Company’s US federal and state net operating loss carryforwards in future tax periods. The Company is in a net deferred tax asset position in Canada and a full valuation allowance against the Canada deferred tax assets remains necessary as a result of the historical losses and the uncertainty of realizing any future tax benefits related to the Canadian deferred tax assets.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2023
Commitments and Contingencies
Commitments and Contingencies	16. 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 June 30, 2023, and continuing as of August 10, 2023, the Company is not aware of any pending or threatened material litigation claims against the Company. On May 10, 2018, the Company entered a Development, Commercialization and Exclusive Distribution Agreement. As part of the agreement, the Company is required to make the following future milestone payments: ● 1st payment: $3,500 in cash payment upon the achievement of future development milestones ● 2nd payment: $3,500 in equity, determined by dividing the amount due by the volume-weighted average price of the Company’s common stock on the NYSE American exchange over the 10 trading days prior to the achievement of the milestone event. As of June 30, 2023, none of the future development milestones related to the above agreement have been met. The Company has assessed the probability of meeting the above milestones and has determined that an accrual is not necessary as of June 30, 2023 and December 31, 2022. On January 17, 2023, the Company entered into a series of agreements with Qorvo Biotechnologies, LLC. Under the terms of these agreements, the Company has the obligation: ● to purchase a minimum quantity of production and development cartridges for the period beginning on the date the parties entered into the agreements and ending on the earlier of the date Zomedica notifies Qorvo to stop production or December 31, 2024; ● to purchase a minimum quantity of BAW Sensors commencing on the Transition Date and continuing as long as Zomedica has a license from Qorvo to manufacture the cartridges, subject to each party’s rights to early termination including Zomedica’s right to terminate at any time with 90 days prior written notice; and ● to pay a royalty to Qorvo on the sale of cartridges after the Transition Date

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
Segment Information
Segment Information	17. Segment Information The Company’s operations are comprised of two reportable segments: ● Diagnostics, which consists of TRUFORMA ® , VetGuardian ® , and imaging products; ● Therapeutics, which consists of Assisi ® and PulseVet ® products The Company’s Chief Operating Decision Maker (CODM) is its Chief Executive Officer who has ultimate responsibility for enterprise decisions. 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, the Diagnostics segment, and the Therapeutics segment together. The CODM relies on internal segment reporting that analyzes results on certain key performance indicators, namely, revenues and gross profit. Costs below gross profit are not allocated to the segments. The following is a reconciliation of consolidated revenue, cost of revenue, and gross profit amongst our reportable segments as of June 30, 2023: Diagnostics Therapeutics Consolidated Net revenue $ 648 $ 10,854 $ 11,502 Cost of revenue 744 2,875 3,619 Gross profit $ (96) $ 7,979 $ 7,883

Loss Per Share

Loss Per Share	6 Months Ended
Loss Per Share	Jun. 30, 2023
Loss Per Share
Loss Per Share	18. Loss Per Share For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Numerator Net loss for the period $ (5,249) $ (5,273) $ (11,634) $ (9,210) Charge to retained earnings for preferred share exchange - - - - Loss attributable to common shareholders (5,249) (5,273) (11,634) (9,210) Denominator Weighted average shares - basic 979,949,668 979,899,668 979,949,668 979,899,668 Loss per share - basic and diluted $ (0.005) $ (0.005) $ (0.012) $ (0.009) As of June 30, 2023, and 2022, the Company had stock options outstanding of 89,454,943 and 61,507,724 and warrants outstanding of 32,561,418 and 792,418. 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.

Related Party Transaction

Related Party Transaction	6 Months Ended
Related Party Transaction	Jun. 30, 2023
Related Party Transaction
Related Party Transaction	19. Related Party Transaction On March 1, 2022 we entered into a Consulting Agreement with Johnny Powers, a member of our Board. Pursuant to the Powers Agreement, Dr. Powers provides strategic consulting services to the Company and is entitled to $10 per month as compensation and reimbursement for authorized expenses. The Powers Agreement expired May 31, 2023.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events
Subsequent Events	20. Subsequent Events None

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2023
Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The 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 consolidated financial statements. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
Basis of Measurement	Basis of Measurement The condensed consolidated financial statements have been prepared on the historical cost basis except as otherwise noted.
Business Combinations	Business Combinations We account for business combinations in accordance with ASC 805, Business Combinations, if the acquired assets assumed and liabilities incurred constitute a business. We consider acquired companies to constitute a business if the acquired net assets and processes have the ability to create outputs in the form of revenue. For acquired companies constituting a business, we recognize the identifiable assets acquired and liabilities assumed at their acquisition-date fair values and recognize any excess of total consideration paid over the fair value of the identifiable net assets as goodwill.
Estimates and Assumptions	Estimates and Assumptions In preparing these 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, as determined by management, 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 are 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 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 of the exchange gains or losses resulting from these transactions are recognized in the consolidated statements of operations and comprehensive loss.
Comparative Figures	Comparative Figures A portion of depreciation expense for the three and six months ended June 30, 2023 has been stated as part of cost of revenue for $102 and $193 respectively. The consolidated statements of income and comprehensive income for the three and six months ended June 30, 2022 have been adjusted for $30 and $51 respectively for depreciation that was included in selling, general, and administrative expense. This amount has been reclassified to cost of revenue to conform to the current year presentation. The change in presentation had no effect on the reported results of operations and does not affect previously reported cash flows from operating activities in the consolidated statements of cash flows. To better align with the way in which we measure and track our business, we have changed the categorization of products within our segmentation of revenue. A portion of the products in our Therapeutics segment were previously designated as instruments and trodes in our form 10Q for the period ending June 30, 2022. These products have since been renamed to be capital and consumables to better align with our other platforms and to provide a more consistent baseline for comparison of the product lines within. Capital refers to the devices we sell within our PulseVet ® ® ® ® ®
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 and Therapeutics.
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.
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 and Equity 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 shareholders’ equity.
Accounts Receivable and Allowance for Credit Losses	Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded net of an allowance for credit losses and have payment terms of 30 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 June 30, 2023, our allowance was $66 and was recorded net in trade receivables. While we believe that our allowance for credit losses is adequate and represents our best estimate as of June 30, 2023, 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, plant 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.
Intangible Assets	Intangible Assets Expenditures related to the planning and operation of the Company’s website are expensed as incurred. Expenditures related to the website application and infrastructure development are capitalized and amortized over the website’s estimated useful life. Costs related to acquired customer relationships, developed technology, licenses, trademarks, and tradenames have been capitalized and amortized over the estimated useful life. Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful lives and amortization methods are reviewed at the end of each year, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets
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, 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. The nature of the Company’s PulseVet ® At times the Company receives consideration prior to when the performance obligation is completed, giving rise to a contract liability. 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 and six months ended June 30, 2023 and 2022 is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, Diagnostics Therapeutics Consolidated Diagnostics Therapeutics Consolidated 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Capital $ 67 $ - $ 1,892 $ 1,543 $ 1,959 $ 1,543 $ 284 $ - $ 3,386 $ 3,102 $ 3,670 $ 3,102 Consumables 182 92 3,850 2,579 4,032 2,671 364 148 7,416 4,680 7,780 4,828 Other (e.g., warranty and repairs) - - 29 32 29 32 - - 52 67 52 67 Total revenue $ 249 $ 92 $ 5,771 $ 4,154 $ 6,020 $ 4,246 $ 648 $ 148 $ 10,854 $ 7,849 $ 11,502 $ 7,997
Cost of Revenue	For the Three Months Ended June 30, For the Six Months Ended June 30, Diagnostics Therapeutics Consolidated Diagnostics Therapeutics Consolidated 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Capital $ 67 $ - $ 1,892 $ 1,543 $ 1,959 $ 1,543 $ 284 $ - $ 3,386 $ 3,102 $ 3,670 $ 3,102 Consumables 182 92 3,850 2,579 4,032 2,671 364 148 7,416 4,680 7,780 4,828 Other (e.g., warranty and repairs) - - 29 32 29 32 - - 52 67 52 67 Total revenue $ 249 $ 92 $ 5,771 $ 4,154 $ 6,020 $ 4,246 $ 648 $ 148 $ 10,854 $ 7,849 $ 11,502 $ 7,997
Research and Development	Research and Development
Stock-based Compensation	Stock-based Compensation The Company calculates stock-based compensation using the fair value method, under which the fair value of the options at the grant date is calculated using the Black-Scholes Option Pricing Model, and subsequently expensed over the vesting period of the option using the graded vesting method. The provisions of the Company’s stock-based compensation plans do not require the Company to settle any options by transferring cash or other assets, and therefore the Company classifies the awards as equity. Stock-based compensation expense recognized during the period is based on the value of stock-based payment awards that are ultimately expected to vest. The Company estimates forfeitures at the time of grant and revises the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes, 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 the United States and various states, 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 The Company follows ASC topic 220. This statement establishes standards for reporting and display of comprehensive (loss) income and its components. 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 its Japanese subsidiary.
Loss Per Share	Loss Per Share

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	6 Months Ended
Significant Accounting Policies (Tables)	Jun. 30, 2023
Significant Accounting Policies
Schedule of segmented revenue	For the Three Months Ended June 30, For the Six Months Ended June 30, Diagnostics Therapeutics Consolidated Diagnostics Therapeutics Consolidated 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Capital $ 67 $ - $ 1,892 $ 1,543 $ 1,959 $ 1,543 $ 284 $ - $ 3,386 $ 3,102 $ 3,670 $ 3,102 Consumables 182 92 3,850 2,579 4,032 2,671 364 148 7,416 4,680 7,780 4,828 Other (e.g., warranty and repairs) - - 29 32 29 32 - - 52 67 52 67 Total revenue $ 249 $ 92 $ 5,771 $ 4,154 $ 6,020 $ 4,246 $ 648 $ 148 $ 10,854 $ 7,849 $ 11,502 $ 7,997

Investment securities (Tables)

Investment securities (Tables)	6 Months Ended
Investment securities (Tables)	Jun. 30, 2023
Investment Securities
Schedule of company's investment securities	The following represents the Company’s investment securities as of June 30, 2023 (in thousands): Acquisition Cost Accretion / (Amortization) Unrealized Gain / (Loss) Estimated Fair Value Commercial paper $ 16,772 $ 535 $ (12) $ 17,295 Corporate notes / bonds 39,204 408 (392) 39,220 Debt security 2,750 - - 2,750 U.S. treasuries 12,639 177 (127) 12,689 U.S. govt. agencies 42,549 194 (255) 42,488 Money market funds 25,310 - - 25,310 Total investment securities $ 139,224 $ 1,314 $ (786) $ 139,752
Schedule of contractual maturities of investment securities	Contractual maturities of investment securities as of June 30, 2023 are as follows (in thousands): Acquisition Cost Estimated Fair Value Original maturities of 90 days or less $ 25,310 $ 25,310 Original maturities of 91-365 days 101,877 102,522 Original maturities of 366+ days 12,037 11,920 Total investment securities $ 139,224 $ 139,752

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2023
Fair Value Measurements
Schedule of the fair value of our investments	Level 1 Level 2 Level 3 Estimated Fair Value Commercial paper $ - $ 17,295 $ - $ 17,295 Corporate notes / bonds - 39,220 - 39,220 Debt security - - 2,750 2,750 U.S. treasuries 12,689 - - 12,689 U.S. govt. agencies 42,488 - - 42,488 Money market funds 25,310 - - 25,310 Total investment securities $ 80,487 $ 56,515 $ 2,750 $ 139,752
Schedule of investments and balance sheet classifications	Cash & Cash Equiv. Available- For-Sale (Current) Available- For-Sale (Non-Current) Estimated Fair Value Commercial paper $ - $ 17,295 $ - $ 17,295 Corporate notes / bonds - 37,928 1,292 39,220 Debt security - - 2,750 2,750 U.S. treasuries - 10,740 1,949 12,689 U.S. govt. agencies - 36,559 5,929 42,488 Money market funds 25,310 - - 25,310 Total investment securities $ 25,310 $ 102,522 $ 11,920 $ 139,752

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
Business Combinations (Tables)	Jun. 30, 2023
Assisi
Summary of acquisition date fair values	Initial Measurement Allocation of Period Updated Consideration Adjustments Allocation Inventory, net $ 220 $ — $ 220 Prepaid expenses and deposits 271 — 271 Other receivables 406 (206) 200 Right of use asset — 260 260 Intangible Assets (estimated useful life) E-commerce technology ( 2 years) 200 — 200 Trade name ( 5 years) 300 — 300 Developed technology ( 10 years) 4,500 — 4,500 Customer relationships ( 19 years) 2,800 — 2,800 Total assets acquired 8,697 54 8,751 Current portion of lease obligations — 49 49 Non current portion of lease obligations — 211 211 Other non current liabilities 45 — 45 Total liabilities assumed 45 260 305 Net assets acquired, excluding goodwill 8,652 (206) 8,446 Goodwill 14,329 206 14,535 Net assets acquired $ 22,981 $ — $ 22,981 For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Net Revenue $ 6,020 $ 5,542 $ 11,502 $ 10,595 Net Losses $ (5,249) $ (5,330) $ (11,634) $ (9,849)
Summary of purchase price consideration	Cash $ 18,293 Fair value of warrants $ 4,688 Total $ 22,981
Schedule of pro forma financial information	For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Adjustments to net revenues Assisi preacquisition revenues $ - $ 1,296 $ - $ 2,598 Adjustments to net income Assisi preacquisition net losses $ - $ (57) $ - $ (639)
Revo Squared
Summary of acquisition date fair values	Initial Measurement Allocation of Period Updated Consideration Adjustments Allocation Trade receivables, net $ 8 $ — $ 8 Prepaid expenses and deposits 10 — 10 Intangible Assets (estimated useful life) Trade name ( 5 years) 200 — 200 Developed technology ( 10 years) 2,300 — 2,300 Customer relationships ( 16 years) 1,200 — 1,200 Total assets acquired 3,718 — 3,718 Earnout liabilities 2,458 (458) 2,000 Total liabilities assumed 2,458 (458) 2,000 Net assets acquired, excluding goodwill 1,260 458 1,718 Goodwill 6,528 (458) 6,070 Net assets acquired $ 7,788 $ — $ 7,788
Summary of purchase price consideration	Cash $ 6,011 Fair value of warrants 1,777 Total $ 7,788

Inventory (Tables)

Inventory (Tables)	6 Months Ended
Inventory (Tables)	Jun. 30, 2023
Inventory
Summary of inventory	June 30, 2023 December 31, 2022 Diagnostics Therapeutics Consolidated Diagnostics Therapeutics Consolidated Raw Materials $ 1 $ 2,210 $ 2,211 $ — $ 1,685 $ 1,685 Finished Goods 339 342 681 — 182 182 Purchased Inventory 287 488 775 139 780 919 Total 627 3,040 3,667 139 2,647 2,786 Reserves (11) (22) (33) (18) (22) (40) Net inventory $ 616 $ 3,018 $ 3,634 $ 121 $ 2,625 $ 2,746

Prepaid Expenses and Deposits (

Prepaid Expenses and Deposits (Tables)	6 Months Ended
Prepaid Expenses and Deposits (Tables)	Jun. 30, 2023
Prepaid Expenses and Deposits.
Schedule of prepaid expenses and deposits	June 30, December 31, 2023 2022 Deposits $ 2,668 $ 1,886 Prepaid marketing 109 114 Prepaid insurance 574 614 Prepaid taxes — 753 Other 337 620 Total prepaid expenses and deposits $ 3,688 $ 3,987

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
Property and Equipment (Tables)	Jun. 30, 2023
Property and Equipment
Schedule of property and equipment	June 30, December 31, 2023 2022 Machinery and office equipment $ 7,209 $ 6,487 Furniture and equipment 120 111 Laboratory equipment 337 249 Leasehold improvements 1,239 1,239 8,905 8,086 Accumulated depreciation and amortization 1,614 1,277 Net property and equipment $ 7,291 $ 6,809

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
Intangible Assets (Tables)	Jun. 30, 2023
Intangible Assets
Schedule of finite-lived intangible assets	June 30, December 31, 2023 2022 Computer software $ 1,635 $ 350 Customer relationships 26,651 26,651 Licenses 7,479 - Technology 15,650 15,650 Trademarks 16 16 Tradename 2,850 2,850 Website 962 962 55,243 46,479 Accumulated amortization 7,172 4,680 Net intangibles $ 48,071 $ 41,799
Schedule of finite-lived intangible assets, future amortization expense	2023 $ 2,647 2024 5,243 2025 5,080 2026 4,637 2027 and beyond 30,464 Total $ 48,071

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2023
Leases
Schedule of lessee, operating lease, right of use asset and lease liabilities	June 30, December 31, 2023 2022 Right-of-use asset Cost Aggregate lease commitments $ 2,759 $ 2,759 Less: impact of present value (262) (262) Balance $ 2,497 $ 2,497 Reduction in right-of-use asset Straight line amortization 1,292 946 Interest (150) (114) Balance $ 1,142 $ 832 Net book value as at: Balance $ 1,355 $ 1,665 Lease liabilities Additions $ 2,520 $ 2,520 Payments (1,248) (896) Interest 150 114 Total lease liabilities $ 1,422 $ 1,738 Current portion of lease liabilities 641 641 Long term portion of lease liabilities 781 1,097 Total lease liabilities $ 1,422 $ 1,738
Schedule of total remaining undiscounted lease liabilities	2023 $ 354 2024 679 2025 237 2026 197 2027 44 Total lease payments $ 1,511 Less imputed interest 89 Total $ 1,422
Schedule of weighted-average remaining lease term and discount rate	Six Months Ended June 30, 2023 Weighted-average remaining lease term 2.5 years Weighted-average discount rate 4.5%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2023
Stock-Based Compensation
Share-based payment arrangement, option, activity	Number of Weighted Avg Options Exercise Price Balance at December 31, 2022 84,112,443 $ 0.3602 Stock options granted 8,165,000 0.1998 Stock options forfeited 2,095,000 0.3441 Vested stock options expired 727,500 1.1228 Balance at June 30, 2023 89,454,943 $ 0.3397 Vested at June 30, 2023 30,045,224 $ 0.3497
Summary of issued and outstanding stock options	Grant Year Weighted Avg. Exercise Price Number of Options Issued and Outstanding Number of Vested Options Outstanding Number of Unvested Options Outstanding Weighted Avg. Remaining Life Outstanding (Years) 2020 0.22 17,137,724 15,938,974 1,198,750 2.45 2021 0.66 20,050,000 6,900,000 13,150,000 3.12 2022 0.27 44,142,219 7,206,250 36,935,969 4.07 2023 0.24 8,125,000 — 8,125,000 4.73 Balance at June 30, 2023 89,454,943 30,045,224 59,409,719
Summary of option fair value assumptions	Grant Year Weighted Avg. Volatility Weighted Avg. Risk-Free Int. Rate Weighted Avg. Expected Life (In Years) Weighted Avg. Common Share Price Weighted Avg. Exercise Price 2020 96 % 0.47 % 9.53 $ 0.21 $ 0.22 2021 117 1.09 6.20 0.65 0.66 2022 112 3.10 5.91 0.26 0.27 2023 110 3.69 6.25 0.23 0.24

Warrants (Tables)

Warrants (Tables)	6 Months Ended
Warrants (Tables)	Jun. 30, 2023
Warrants
Schedule of warrants outstanding	Weighted Average Exercise Warrants Remaining Original Issue date Price Outstanding Life February 14, 2020 (Series A) 0.1500 197,917 1.62 April 9, 2020 (Series B) 0.1500 363,501 1.78 May 29, 2020 (Series C) 0.1500 - - July 7, 2020 (Series D) 0.1600 - - July 1, 2022 (Revo Squared) 0.2201 10,000,000 9.01 July 15, 2022 (Assisi) 0.2520 22,000,000 9.05 Balance at June 30, 2023 32,561,418
Schedule of cumulative warrants exercised and expired	Warrants Warrants Warrant Series Exercised Amount Expired Amount February 14, 2020 (Series A) 21,677,084 $ 4,293 — $ — April 9, 2020 (Series B) 17,969,833 2,695 — — May 29, 2020 (Series C) 133,213,333 19,982 120,000 18 July 7, 2020 (Series D) 187,269,000 29,963 231,000 37 July 1, 2022 (Revo Squared) — — — — July 15, 2022 (Assisi) — — — — Total 360,129,250 $ 56,933 351,000 $ 55

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
Segment Information
Schedule of segments	Diagnostics Therapeutics Consolidated Net revenue $ 648 $ 10,854 $ 11,502 Cost of revenue 744 2,875 3,619 Gross profit $ (96) $ 7,979 $ 7,883

Loss Per Share (Tables)

Loss Per Share (Tables)	6 Months Ended
Loss Per Share (Tables)	Jun. 30, 2023
Loss Per Share
Schedule of earnings per share, basic and diluted	For the Three Months Ended June 30, For the Six Months Ended June 30, 2023 2022 2023 2022 Numerator Net loss for the period $ (5,249) $ (5,273) $ (11,634) $ (9,210) Charge to retained earnings for preferred share exchange - - - - Loss attributable to common shareholders (5,249) (5,273) (11,634) (9,210) Denominator Weighted average shares - basic 979,949,668 979,899,668 979,949,668 979,899,668 Loss per share - basic and diluted $ (0.005) $ (0.005) $ (0.012) $ (0.009)

Significant Accounting Polici_4

Significant Accounting Policies - Reclassification (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Reclassification
Cost of revenue depreciation	$ 102		$ 193
Adjustment of Prior Period
Reclassification
Cost of revenue depreciation		$ 30		$ 51

Significant Accounting Polici_5

Significant Accounting Policies - Interim (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Payment term			30 days
Net revenue	$ 6,020	$ 4,246	$ 11,502	$ 7,997
Allowance for credit loss on accounts receivable	66		66
Capital
Net revenue	1,959	1,543	3,670	3,102
Consumables
Net revenue	4,032	2,671	7,780	4,828
Other revenue
Net revenue	29	32	52	67
Diagnostics
Net revenue	249	92	648	148
Diagnostics \| Capital
Net revenue	67		284
Diagnostics \| Consumables
Net revenue	182	92	364	148
Therapeutics
Net revenue	5,771	4,154	10,854	7,849
Therapeutics \| Capital
Net revenue	1,892	1,543	3,386	3,102
Therapeutics \| Consumables
Net revenue	3,850	2,579	7,416	4,680
Therapeutics \| Other revenue
Net revenue	$ 29	$ 32	$ 52	$ 67

Investment Securities (Details)

Investment Securities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Investment securities
Acquisition Cost	$ 139,224
Accretion / (Amortization)	1,314
Unrealized Gain / (Loss)	(786)
Estimated Fair Value	139,752
Accrued interest receivable	771
Commercial paper
Investment securities
Acquisition Cost	16,772
Accretion / (Amortization)	535
Unrealized Gain / (Loss)	(12)
Estimated Fair Value	17,295
Corporate notes / bonds
Investment securities
Acquisition Cost	39,204
Accretion / (Amortization)	408
Unrealized Gain / (Loss)	(392)
Estimated Fair Value	39,220
Debt security
Investment securities
Acquisition Cost	2,750
Estimated Fair Value	2,750
U.S. treasuries
Investment securities
Acquisition Cost	12,639
Accretion / (Amortization)	177
Unrealized Gain / (Loss)	(127)
Estimated Fair Value	12,689
U.S. govt. agencies
Investment securities
Acquisition Cost	42,549
Accretion / (Amortization)	194
Unrealized Gain / (Loss)	(255)
Estimated Fair Value	42,488
Money market funds
Investment securities
Acquisition Cost	25,310
Estimated Fair Value	$ 25,310

Investment Securities - Maturit

Investment Securities - Maturities (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Investment securities
Acquisition Cost	$ 139,224
Estimated Fair Value	139,752
90 Days or less
Investment securities
Acquisition Cost	25,310
Estimated Fair Value	25,310
91 to 365 days
Investment securities
Acquisition Cost	101,877
Estimated Fair Value	102,522
366 or more days
Investment securities
Acquisition Cost	12,037
Estimated Fair Value	$ 11,920

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Debt security $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Fair value
Convertible note receivable	$ 2,750
Unrealized gain (loss)	0
Impairment of investments	$ 0

Fair Value Measurements - Inves

Fair Value Measurements - Investments (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Fair value
Total investment securities	$ 139,752
Commercial paper
Fair value
Total investment securities	17,295
Corporate notes / bonds
Fair value
Total investment securities	39,220
Debt security
Fair value
Total investment securities	2,750
U.S. treasuries
Fair value
Total investment securities	12,689
U.S. govt. agencies
Fair value
Total investment securities	42,488
Money market funds
Fair value
Total investment securities	25,310
Recurring
Fair value
Total investment securities	139,752
Recurring \| Commercial paper
Fair value
Total investment securities	17,295
Recurring \| Corporate notes / bonds
Fair value
Total investment securities	39,220
Recurring \| Debt security
Fair value
Total investment securities	2,750
Recurring \| U.S. treasuries
Fair value
Total investment securities	12,689
Recurring \| U.S. govt. agencies
Fair value
Total investment securities	42,488
Recurring \| Money market funds
Fair value
Total investment securities	25,310
Recurring \| Level 1
Fair value
Total investment securities	80,487
Recurring \| Level 1 \| U.S. treasuries
Fair value
Total investment securities	12,689
Recurring \| Level 1 \| U.S. govt. agencies
Fair value
Total investment securities	42,488
Recurring \| Level 1 \| Money market funds
Fair value
Total investment securities	25,310
Recurring \| Level 2
Fair value
Total investment securities	56,515
Recurring \| Level 2 \| Commercial paper
Fair value
Total investment securities	17,295
Recurring \| Level 2 \| Corporate notes / bonds
Fair value
Total investment securities	39,220
Recurring \| Level 3
Fair value
Total investment securities	2,750
Recurring \| Level 3 \| Debt security
Fair value
Total investment securities	$ 2,750

Fair Value Measurements - Balan

Fair Value Measurements - Balance sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair value, balance sheet
Cash and cash equivalents	$ 27,951	$ 27,399
Available-For-Sale (Current)	102,522	87,693
Available-For-Sale (Non-Current)	11,920	$ 40,712
Estimated Fair Value	139,752
Commercial paper
Fair value, balance sheet
Estimated Fair Value	17,295
Corporate notes / bonds
Fair value, balance sheet
Estimated Fair Value	39,220
Debt security
Fair value, balance sheet
Estimated Fair Value	2,750
U.S. treasuries
Fair value, balance sheet
Estimated Fair Value	12,689
U.S. govt. agencies
Fair value, balance sheet
Estimated Fair Value	42,488
Money market funds
Fair value, balance sheet
Estimated Fair Value	25,310
Recurring
Fair value, balance sheet
Cash and cash equivalents	25,310
Available-For-Sale (Current)	102,522
Available-For-Sale (Non-Current)	11,920
Estimated Fair Value	139,752
Recurring \| Commercial paper
Fair value, balance sheet
Available-For-Sale (Current)	17,295
Estimated Fair Value	17,295
Recurring \| Corporate notes / bonds
Fair value, balance sheet
Available-For-Sale (Current)	37,928
Available-For-Sale (Non-Current)	1,292
Estimated Fair Value	39,220
Recurring \| Debt security
Fair value, balance sheet
Available-For-Sale (Non-Current)	2,750
Estimated Fair Value	2,750
Recurring \| U.S. treasuries
Fair value, balance sheet
Available-For-Sale (Current)	10,740
Available-For-Sale (Non-Current)	1,949
Estimated Fair Value	12,689
Recurring \| U.S. govt. agencies
Fair value, balance sheet
Available-For-Sale (Current)	36,559
Available-For-Sale (Non-Current)	5,929
Estimated Fair Value	42,488
Recurring \| Money market funds
Fair value, balance sheet
Cash and cash equivalents	25,310
Estimated Fair Value	$ 25,310

Business Combinations - 2022 (D

Business Combinations - 2022 (Details) - USD ($) $ / shares in Units, $ in Thousands	Jul. 15, 2022	Jul. 01, 2022	Dec. 31, 2022
Assisi
Business acquisition
Purchase price	$ 18,293
Escrow deposit	$ 1,400
Warrant term	10 years
Warrant to purchase common stock	22,000,000
Warrant, exercise price (in dollars per share)	$ 0.2520
Assisi \| 18-month anniversary
Business acquisition
Escrow deposit	$ 900
Decrease escrow	$ 500
Escrow deposit term	18 months
Revo Squared
Business acquisition
Purchase price		$ 6,011
Warrant term		10 years
Warrant to purchase common stock		10,000,000
Warrant, exercise price (in dollars per share)		$ 0.2201
Contingent consideration milestones		$ 4,000
Contingent consideration fair value		2,000	$ 1,500
Goodwill expected to be deductible		6,528
Revo Squared \| Indemnification obligation
Business acquisition
Escrow deposit		$ 500
Escrow deposit term		15 months
Revo Squared \| Earnout payment at $5 million
Business acquisition
Contingent consideration milestones		$ 1
Earnout milestone basis		5,000
Revo Squared \| Earnout payment at $10 million
Business acquisition
Contingent consideration milestones		2,000
Earnout milestone basis		$ 10,000

Business Combinations - 2022 pu

Business Combinations - 2022 purchase allocation (Details) - USD ($) $ in Thousands	Jul. 15, 2022	Jul. 01, 2022	Jun. 30, 2023	Dec. 31, 2022
Business acquisition
Goodwill			$ 63,979	$ 63,979
Assisi
Business acquisition
Inventory, net	$ 220
Prepaid expenses and deposits	271
Other receivables	200
Right of use asset	260
Total assets acquired	8,751
Current portion of lease obligations	49
Non current portion of lease obligations	211
Other non current liabilities	45
Total liabilities assumed	305
Net assets acquired, excluding goodwill	8,446
Goodwill	14,535
Net assets acquired	22,981
Assisi \| Electronic Commerce / Website
Business acquisition
Intangible Assets	$ 200
Intangible assets indefinite useful lives	2 years
Assisi \| Tradename
Business acquisition
Intangible Assets	$ 300
Intangible assets indefinite useful lives	5 years
Assisi \| Developed technology
Business acquisition
Intangible Assets	$ 4,500
Intangible assets indefinite useful lives	10 years
Assisi \| Customer relationships
Business acquisition
Intangible Assets	$ 2,800
Intangible assets indefinite useful lives	19 years
Assisi \| Initial allocation of consideration
Business acquisition
Inventory, net	$ 220
Prepaid expenses and deposits	271
Other receivables	406
Total assets acquired	8,697
Other non current liabilities	45
Total liabilities assumed	45
Net assets acquired, excluding goodwill	8,652
Goodwill	14,329
Net assets acquired	22,981
Assisi \| Initial allocation of consideration \| Electronic Commerce / Website
Business acquisition
Intangible Assets	200
Assisi \| Initial allocation of consideration \| Tradename
Business acquisition
Intangible Assets	300
Assisi \| Initial allocation of consideration \| Developed technology
Business acquisition
Intangible Assets	4,500
Assisi \| Initial allocation of consideration \| Customer relationships
Business acquisition
Intangible Assets	2,800
Assisi \| Measurement period adjustment
Business acquisition
Other receivables	(206)
Right of use asset	260
Total assets acquired	54
Current portion of lease obligations	49
Non current portion of lease obligations	211
Total liabilities assumed	260
Net assets acquired, excluding goodwill	(206)
Goodwill	$ 206
Revo Squared
Business acquisition
Prepaid expenses and deposits		$ 10
Trade receivables, net		8
Total assets acquired		3,718
Earnout liabilities		2,000
Total liabilities assumed		2,000
Net assets acquired, excluding goodwill		1,718
Goodwill		6,070
Net assets acquired		7,788
Revo Squared \| Tradename
Business acquisition
Intangible Assets		$ 200
Intangible assets indefinite useful lives		5 years
Revo Squared \| Developed technology
Business acquisition
Intangible Assets		$ 2,300
Intangible assets indefinite useful lives		10 years
Revo Squared \| Customer relationships
Business acquisition
Intangible Assets		$ 1,200
Intangible assets indefinite useful lives		16 years
Revo Squared \| Initial allocation of consideration
Business acquisition
Prepaid expenses and deposits		$ 10
Trade receivables, net		8
Total assets acquired		3,718
Earnout liabilities		2,458
Total liabilities assumed		2,458
Net assets acquired, excluding goodwill		1,260
Goodwill		6,528
Net assets acquired		7,788
Revo Squared \| Initial allocation of consideration \| Tradename
Business acquisition
Intangible Assets		200
Revo Squared \| Initial allocation of consideration \| Developed technology
Business acquisition
Intangible Assets		2,300
Revo Squared \| Initial allocation of consideration \| Customer relationships
Business acquisition
Intangible Assets		1,200
Revo Squared \| Measurement period adjustment
Business acquisition
Earnout liabilities		(458)
Total liabilities assumed		(458)
Net assets acquired, excluding goodwill		458
Goodwill		$ (458)

Business Combinations - Purchas

Business Combinations - Purchase consideration (Details) - USD ($) $ in Thousands	Jul. 15, 2022	Jul. 01, 2022
Assisi
Business Acquisition [Line Items]
Cash	$ 18,293
Fair value of warrants	4,688
Total	$ 22,981
Revo Squared
Business Acquisition [Line Items]
Cash		$ 6,011
Fair value of warrants		1,777
Total		$ 7,788

Business Combinations - Proform

Business Combinations - Proforma (Details) - Assisi - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net revenue-proforma	$ 6,020	$ 5,542	$ 11,502	$ 10,595
Net losses-proforma	$ (5,249)	(5,330)	$ (11,634)	(9,849)
Assisi
Net revenue-proforma		1,296		2,598
Net losses-proforma		$ (57)		$ (639)

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Raw Materials	$ 2,211	$ 1,685
Finished Goods	681	182
Purchased Inventory	775	919
Total	3,667	2,786
Reserves	(33)	(40)
Net inventory	3,634	2,746
Diagnostics
Raw Materials	1
Finished Goods	339
Purchased Inventory	287	139
Total	627	139
Reserves	(11)	(18)
Net inventory	616	121
Therapeutics
Raw Materials	2,210	1,685
Finished Goods	342	182
Purchased Inventory	488	780
Total	3,040	2,647
Reserves	(22)	(22)
Net inventory	$ 3,018	$ 2,625

Prepaid Expenses and Deposits_2

Prepaid Expenses and Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Prepaid Expenses and Deposits.
Deposits	$ 2,668	$ 1,886
Prepaid marketing	109	114
Prepaid insurance	574	614
Prepaid taxes		753
Other	337	620
Total prepaid expenses and deposits	$ 3,688	$ 3,987

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Undepreciated instruments in property and equipment	$ 8,905		$ 8,905		$ 8,086
Accumulated depreciation and amortization	1,614		1,614		1,277
Net property and equipment	7,291		7,291		6,809
Depreciation expense	340	$ 161	340	$ 161
Machinery and office equipment
Undepreciated instruments in property and equipment	7,209		7,209		6,487
Furniture and equipment
Undepreciated instruments in property and equipment	120		120		111
Laboratory equipment
Undepreciated instruments in property and equipment	337		337		249
Leasehold improvements
Undepreciated instruments in property and equipment	$ 1,239		$ 1,239		$ 1,239

Intangible Assets - Summary (De

Intangible Assets - Summary (Details) - USD ($) $ in Thousands		6 Months Ended
	Jan. 17, 2023	Jun. 30, 2023	Dec. 31, 2022
Intangible Assets
Intangible assets		$ 55,243	$ 46,479
Accumulated amortization		7,172	4,680
Total		48,071	41,799
Acquisition of intangibles	$ 4,000	4,066
Liability due to Qorvo	$ 4,000	3,591
Computer software
Intangible Assets
Intangible assets		1,635	350
Customer relationships
Intangible Assets
Intangible assets		26,651	26,651
Licenses
Intangible Assets
Intangible assets		7,479	0
Technology
Intangible Assets
Intangible assets		15,650	15,650
Trademarks
Intangible Assets
Intangible assets		16	16
Tradename
Intangible Assets
Intangible assets		2,850	2,850
Electronic Commerce / Website
Intangible Assets
Intangible assets		$ 962	$ 962

Intangible Assets - Amortizatio

Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Intangible Assets
2023	$ 2,647
2024	5,243
2025	5,080
2026	4,637
2027 and beyond	30,464
Total	48,071		$ 41,799
Amortization - intangible assets	$ 2,492	$ 1,495

Leases (Details)

Leases (Details) $ in Thousands

3 Months Ended

6 Months Ended

May 10, 2023 USD ($) ft²

Jul. 15, 2022 USD ($) ft²

Jul. 01, 2022 USD ($) ft²

Apr. 01, 2022 USD ($) ft²

Sep. 15, 2021 USD ($)

Feb. 01, 2021 USD ($)

Jun. 30, 2023 USD ($)

Jun. 30, 2022 USD ($)

Mar. 31, 2021 USD ($)

Jun. 30, 2023 USD ($)

Jun. 30, 2022 USD ($)

Dec. 31, 2022 USD ($)

Lease

Right-of-use asset

$ 1,355

$ 1,665

Operating lease expense

213

$ 179

412

$ 331

Cost of revenue.

Lease

Operating lease expense

Research and development expenses

Lease

Operating lease expense

106

General and administrative expenses

Lease

Operating lease expense

$ 124

$ 161

$ 265

$ 297

Wickfield Phoenix office lease

Lease

Operating lease term

48 months

Right-of-use asset

$ 1,258

Discount rate (as a percent)

3.95%

(Gain) loss on right-of-use assets

$ 24

Wickfield Phoenix office lease | Minimum

Lease

Monthly rent payment

$ 12

Wickfield Phoenix office lease | Maximum

Lease

Monthly rent payment

$ 31

Wickfield Phoenix warehouse lease

Lease

Operating lease term

41 months

Right-of-use asset

$ 366

Discount rate (as a percent)

3.95%

Wickfield Phoenix warehouse lease | Minimum

Lease

Monthly rent payment

$ 5

Wickfield Phoenix warehouse lease | Maximum

Lease

Monthly rent payment

$ 10

ULF Northfield Business Center

Lease

Operating lease term

60 months

61 months

Right-of-use asset

$ 546

Discount rate (as a percent)

3.95%

Lease area | ft²

18,400

12,400

Lease area expansion | ft²

6,000

ULF Northfield Business Center | Minimum

Lease

Monthly rent payment

$ 16

$ 9

ULF Northfield Business Center | Maximum

Lease

Monthly rent payment

$ 22

$ 11

Lebow 1031 Legacy

Lease

Operating lease term

18 months

Monthly rent payment

$ 4

Right-of-use asset

$ 67

Discount rate (as a percent)

Lease area | ft²

4,626

Wheelership and The Realty Associates Agreement

Lease

Right-of-use asset

$ 260

Discount rate (as a percent)

Lease area | ft²

5,185

Remaining lease period

52 months

Wheelership and The Realty Associates Agreement | Minimum

Lease

Monthly rent payment

$ 4

Wheelership and The Realty Associates Agreement | Maximum

Lease

Monthly rent payment

$ 6

Leases - Balance sheet (Details

Leases - Balance sheet (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Leases - Balance sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases
Aggregate lease commitments	$ 2,759	$ 2,759
Less: impact of present value	(262)	(262)
Balance, cost	2,497	2,497
Straight line amortization	1,292	946
Interest	(150)	(114)
Balance, reduction in right-of-use asset	1,142	832
Net book value	1,355	1,665
Additions	2,520	2,520
Payments	(1,248)	(896)
Interest	150	114
Current portion of lease liabilities	641	641
Long term portion of lease liabilities	781	1,097
Total lease liabilities	$ 1,422	$ 1,738

Leases - Undiscounted liability

Leases - Undiscounted liability (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Leases
2023	$ 354
2024	679
2025	237
2026	197
2027	44
Total lease payments	1,511
Less imputed interest	89
Total	$ 1,422	$ 1,738

Leases - Term and discount rate

Leases - Term and discount rate (Details)	Jun. 30, 2023
Leases
Weighted-average remaining lease term	2 years 6 months
Weighted-average discount rate	4.50%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - shares	3 Months Ended		6 Months Ended
Stock-Based Compensation (Details) - shares	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-Based Compensation
Stock options granted (in shares)	1,455,000	6,575,000	8,165,000	21,000,000
Vesting period	4 years	4 years	4 years	4 years
Expiration period	10 years	10 years	10 years	10 years

Stock-Based Compensation - Opti

Stock-Based Compensation - Option activity (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-Based Compensation
Options Outstanding, beginning balance (in shares)			84,112,443
Stock options granted (in shares)	1,455,000	6,575,000	8,165,000	21,000,000
Stock options forfeited (in shares)			2,095,000
Vested stock options expired (in shares)			727,500
Options Outstanding, ending balance (in shares)	89,454,943		89,454,943
Vested (in shares)	30,045,224		30,045,224
Weighted Avg Exercise Price Options Outstanding (in dollars per share)			$ 0.3602
Weighted Avg Exercise Price, Stock options granted (in dollars per share)			0.1998
Weighted Avg Exercise Price Stock options forfeited (in dollars per share)			0.3441
Weighted Avg Exercise Price Vested Stock options expired (in dollars per share)			1.1228
Weighted Avg Exercise Price Options Outstanding (in dollars per share)	$ 0.3397		0.3397
Weighted Avg Exercise Price Vested (in dollars per share)	$ 0.3497		$ 0.3497

Stock-Based Compensation - Op_2

Stock-Based Compensation - Option details (Details) - $ / shares	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Stock-Based Compensation
Weighted Avg Exercise Price (in dollars per share)	$ 0.1998
Number of Options Issued and Outstanding (in shares)	89,454,943	84,112,443
Number of Vested Options Outstanding (in shares)	30,045,224
Number of Unvested Options Outstanding (in shares)	59,409,719
Grant Date 2020
Stock-Based Compensation
Weighted Avg Exercise Price (in dollars per share)	$ 0.22
Number of Options Issued and Outstanding (in shares)	17,137,724
Number of Vested Options Outstanding (in shares)	15,938,974
Number of Unvested Options Outstanding (in shares)	1,198,750
Weighted Avg Remaining Life Outstanding	2 years 5 months 12 days
Grant Date 2021
Stock-Based Compensation
Weighted Avg Exercise Price (in dollars per share)	$ 0.66
Number of Options Issued and Outstanding (in shares)	20,050,000
Number of Vested Options Outstanding (in shares)	6,900,000
Number of Unvested Options Outstanding (in shares)	13,150,000
Weighted Avg Remaining Life Outstanding	3 years 1 month 13 days
Grant Date 2022
Stock-Based Compensation
Weighted Avg Exercise Price (in dollars per share)	$ 0.27
Number of Options Issued and Outstanding (in shares)	44,142,219
Number of Vested Options Outstanding (in shares)	7,206,250
Number of Unvested Options Outstanding (in shares)	36,935,969
Weighted Avg Remaining Life Outstanding	4 years 25 days
Grant Date 2023
Stock-Based Compensation
Weighted Avg Exercise Price (in dollars per share)	$ 0.24
Number of Options Issued and Outstanding (in shares)	8,125,000
Number of Unvested Options Outstanding (in shares)	8,125,000
Weighted Avg Remaining Life Outstanding	4 years 8 months 23 days

Stock-Based Compensation - Assu

Stock-Based Compensation - Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock-Based Compensation
Weighted Avg Volatility			110%		112%	117%	96%
Weighted Avg Risk-Free Int Rate			3.69%		3.10%	1.09%	0.47%
Weighted Avg Expected Life			6 years 3 months		5 years 10 months 28 days	6 years 2 months 12 days	9 years 6 months 10 days
Weighted Avg Common Share Price	$ 0.23		$ 0.23		$ 0.26	$ 0.65	$ 0.21
Weighted Avg Exercise Price	$ 0.24		$ 0.24		$ 0.27	$ 0.66	$ 0.22
Stock-based expense	$ 1,725	$ 2,492	$ 3,490	$ 4,533

Warrants (Details)

Warrants (Details) - $ / shares			6 Months Ended
Warrants (Details) - $ / shares	Jul. 15, 2022	Jul. 01, 2022	Jun. 30, 2023
Assisi
Warrants outstanding term	10 years
Securities called by warrants (in shares)	22,000,000
Warrant, exercise price (in dollars per share)	$ 0.2520
Stock issuance from warrant exercises (in shares)			0
Revo Squared
Warrants outstanding term		10 years
Securities called by warrants (in shares)		10,000,000
Warrant, exercise price (in dollars per share)		$ 0.2201
Stock issuance from warrant exercises (in shares)			0

Warrants - Outstanding (Details

Warrants - Outstanding (Details)	6 Months Ended
Warrants - Outstanding (Details)	Jun. 30, 2023 $ / shares shares
Warrants outstanding (in shares) \| shares	32,561,418
February 14, 2020 (Series A)
Warrant, exercise price (in dollars per share)	$ 0.1500
Warrants outstanding (in shares) \| shares	197,917
Warrants, weighted average remaining life	1 year 7 months 13 days
April 9, 2020 (Series B)
Warrant, exercise price (in dollars per share)	$ 0.1500
Warrants outstanding (in shares) \| shares	363,501
Warrants, weighted average remaining life	1 year 9 months 10 days
May 29, 2020 (Series C)
Warrant, exercise price (in dollars per share)	$ 0.1500
July 7, 2020 (Series D)
Warrant, exercise price (in dollars per share)	0.1600
July 1, 2022 (Revo Squared)
Warrant, exercise price (in dollars per share)	$ 0.2201
Warrants outstanding (in shares) \| shares	10,000,000
Warrants, weighted average remaining life	9 years 3 days
July 15, 2022 (Assisi)
Warrant, exercise price (in dollars per share)	$ 0.2520
Warrants outstanding (in shares) \| shares	22,000,000
Warrants, weighted average remaining life	9 years 18 days

Warrants - Cumulative (Details)

Warrants - Cumulative (Details) $ in Thousands	6 Months Ended
Warrants - Cumulative (Details) $ in Thousands	Jun. 30, 2023 USD ($) shares
Cumulative warrants exercised (in shares) \| shares	360,129,250
Cumulative warrants exercised (in dollars) \| $	$ 56,933
Cumulative warrants expired (in shares) \| shares	351,000
Cumulative warrants expired (in dollars) \| $	$ 55
February 14, 2020 (Series A)
Cumulative warrants exercised (in shares) \| shares	21,677,084
Cumulative warrants exercised (in dollars) \| $	$ 4,293
April 9, 2020 (Series B)
Cumulative warrants exercised (in shares) \| shares	17,969,833
Cumulative warrants exercised (in dollars) \| $	$ 2,695
May 29, 2020 (Series C)
Cumulative warrants exercised (in shares) \| shares	133,213,333
Cumulative warrants exercised (in dollars) \| $	$ 19,982
Cumulative warrants expired (in shares) \| shares	120,000
Cumulative warrants expired (in dollars) \| $	$ 18
July 7, 2020 (Series D)
Cumulative warrants exercised (in shares) \| shares	187,269,000
Cumulative warrants exercised (in dollars) \| $	$ 29,963
Cumulative warrants expired (in shares) \| shares	231,000
Cumulative warrants expired (in dollars) \| $	$ 37

Commitments and Contingencies (

Commitments and Contingencies (Details) - Seraph Biosciences, Inc. $ in Thousands	May 10, 2018 USD ($)
Future milestone payable in cash	$ 3,500
Future milestone payable in equity	$ 3,500

Segment Information - Segment (

Segment Information - Segment (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information - Segment (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)
Number of reportable segments \| segment			2
Net revenue	$ 6,020	$ 4,246	$ 11,502	$ 7,997
Cost of revenue	1,972	1,240	3,619	2,250
Gross profit	4,048	3,006	7,883	5,747
Diagnostics
Net revenue	249	92	648	148
Cost of revenue			744
Gross profit			(96)
Therapeutics
Net revenue	$ 5,771	$ 4,154	10,854	$ 7,849
Cost of revenue			2,875
Gross profit			$ 7,979

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Loss Per Share
Net loss	$ (5,249)	$ (5,273)	$ (11,634)	$ (9,210)
Loss attributable to common shareholders	$ (5,249)	$ (5,273)	$ (11,634)	$ (9,210)
Weighted average shares - basic (in shares)	979,949,668	979,899,668	979,949,668	979,899,668
Weighted average shares - diluted (in shares)	979,949,668	979,899,668	979,949,668	979,899,668
Loss per share - basic (in dollars per share)	$ (0.005)	$ (0.005)	$ (0.012)	$ (0.009)
Loss per share - diluted (in dollars per share)	$ (0.005)	$ (0.005)	$ (0.012)	$ (0.009)

Loss Per Share - Anti-dilutive

Loss Per Share - Anti-dilutive (Details) - shares	6 Months Ended
Loss Per Share - Anti-dilutive (Details) - shares	Jun. 30, 2023	Jun. 30, 2022
Stock options
Antidilutive securities
Antidilutive securities (in shares)	89,454,943	61,507,724
Warrants.
Antidilutive securities
Antidilutive securities (in shares)	32,561,418	792,418

Related Party Transaction (Deta

Related Party Transaction (Details) $ in Thousands	Mar. 01, 2022 USD ($)
Related Party Transaction
Related party transaction	$ 10