Slide 1: Q2 2022 Earnings and Business Update
Q2 2022 Earnings and Business Update May 30, 2022 Brian Pedlar, CEO Jason Gorel, Interim CFO TSX-V: COV OTCQX: CVALF www.covalon.com | 1-877-711-6055
Slide 2: Our Infection Prevention Technologies Save Lives
TSX-V: COV OTCQX: CVALF Our Infection Prevention Technologies Save Lives Covalon is a patient-driven medical device company, built on the relentless pursuit to help the most vulnerable patients have a better chance at healing. Through a strong portfolio of patented “ My son is 7 months old, and tech
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Certain statements included in this Memorandum may be considered forward-looking statements. These forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “estimate”, “exp
Slide 4: Covalon Has a Strong Growth Platform
Covalon Has a Strong Growth Platform WHY INVEST IN COVALON Innovative Product Financially Strong Core Massive Growth Solutions backed by Business Potential Strong IP ~$22 million in cash; no debt Solid clinical evidence backing $8.9 billion infections and Above-market revenue growth patented product
Slide 5: Financials
covalon TECHNOLOGIES LTD,
Slide 6: Q1/Q2 Fiscal 2022 Financial Results – Key Highlights
Q1/Q2 Fiscal 2022 Financial Results – Key Highlights Revenue from continuing operations increased 19% to $8.2 million for Revenues 6 Months the year to date, compared to $6.9 million in the prior year due to an increase in product sales $8.2M +19% Q2 revenues were $3.3 million, down due to shipm
Slide 7: Balance Sheet Significantly Improved
Balance Sheet Significantly Improved Sept. 30, 2020 Sept. 30, 2021 Mar. 31, 2022 Cash $3.5M $25.5M $22.0M Current Assets $14.8M $37.4M $31.5M Total Assets $34.7M $40.6M $34.6M Debt ($17.7M) $----- $---- Current Liabilities ($22.6M) ($5.0M) ($3.5M) Total Liabilities ($25.6M) ($7.2M) ($5.4M) Key Takea
Slide 8: 6 Months Income Statement Highlights
6 Months Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $8.2M +19% $4.0M +19% $4.9M +22% 49% +--- ppts 60% +20 ppts Primarily driven by an increase Primarily driven by inventory Primarily due to impact of in Collagen product sales in the adjustments incurred in Q1 product
Slide 9: Q2 2022 Income Statement Highlights
Q2 2022 Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $3.3M -24% $1.7M -15% $1.9M -21% 53% +54 ppts 56% +21 ppts Primarily driven by shipping Primarily driven by shipping Primarily due to impact of delays due to Shanghai closure, delays and product mix product mix and sh
Slide 10: Q2 2022 Revenue
Q2 2022 Revenue Product revenue decreased 25% to $3.0 million, compared to $4.0 million for the same period in the prior year. Development and consulting services revenue for Q2 2022 decreased by 26% to $0.2 million, compared to $0.3 million for the same period of the prior year. Revenue from
Slide 11: Q2 2022 Revenue by Geography
Q2 2022 Revenue by Geography Revenue in the United States declined slightly by 14% to $2.5 million primarily as a result of the timing of collagen dressing shipments. International revenue was down 43% to $0.8 million. Product revenue was down due primarily to major delays in product shipments
Slide 12: Q2 2022 Gross Profit and Adjusted Gross Margin
Q2 2022 Gross Profit and Adjusted Gross Margin(1) Gross margin for the period ended March 31, 2021, increased to 53% compared to 47% for the same period of the prior year. The gross margin is significantly influenced by source of revenue and by the relative mix of products sold in any given fina
Slide 13: Q2 2022 Operating Expenses and Net Income
Q2 2022 Operating Expenses and Net Income Operational expenses from continuing operations increased 86% to $4.2 million compared to $2.2 million for the prior year. Excluding government subsidies ($0.2 million) and non-recurring recruiting fees ($0.6 million), operating expenses increased approx
Slide 14: Growth Drivers
Growth Financials Drivers 14
Slide 15: Solutions Designed for Patients and Made for Healthcare Providers
The world’s The world’s only dual- only dual- antimicrobial antimicrobial surgical site Solutions Designed for silicone IV dressing Patients and Made for dressing Healthcare Providers The world’s The world’s only only vascular access collagen wound line-to-line filler with connection antimicrobial b
Slide 16: Covalon Growth Drivers in 2022 and Beyond
Covalon Growth Drivers in 2022 and Beyond vascular • Expand growth team with focus on IV Clear and VALGuard cross selling access opportunities through existing US customer base technologies • Additional International contracts secured for 2022-2023 • Grow share of 350M+ I.V. dressings used each year
Slide 17: Poised for Continued Growth
Poised for Continued Growth Investing in commercialization to Well-funded and debt free accelerate and support long-term growth in an $8.7B market Significant need for cost-effective Innovative IP protected solutions solutions for infection prevention that address large market issues Patented collag
Slide 18: Questions about Covalon?
Questions about Covalon? WHY INVEST IN COVALON Innovative Product Financially Strong Core Massive Growth Solutions backed by Business Potential Strong IP ~$24 million in cash; no debt Solid clinical evidence backing $8.9 billion infections and Above-market revenue growth patented product solutions c
Slide 19: Covalon Technologies Ltd.
covalon TECHNOLOGIES LTD.