Slide 1: Q3 2022 Earnings and Business Update
Q3 2022 Earnings and Business Update August 29, 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 presentation 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”, “e
Slide 4: Financials
covalon TECHNOLOGIES LTD,
Slide 5: 9 Month 2022 Financial Results – Key Highlights
9 Month 2022 Financial Results – Key Highlights Revenue from continuing operations was $12.8 million for the year to Revenues 9 Months date, compared to $13.0 million in the prior year $12.8M -2% Q3 revenues were $4.5 million, down due to shipment timing related to US collagen sales Revenues Q3
Slide 6: Balance Sheet Significantly Improved
Balance Sheet Significantly Improved Sept. 30, 2020 Sept. 30, 2021 Jun. 30, 2022 Cash $3.5M $25.5M $16.6M Current Assets $14.8M $37.4M $28.8M Total Assets $34.7M $40.6M $32.0M Debt ($17.7M) $----- $---- Current Liabilities ($22.6M) ($5.0M) ($2.9M) Total Liabilities ($25.6M) ($7.2M) ($4.6M) Key Takea
Slide 7: 9 Months Income Statement Highlights
9 Months Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $12.8M -2% $6.2M -7% $7.3M +5% 48% -30 ppts 58% +36 ppts Primarily driven by Collagen Primarily driven by inventory Primarily due to impact of product sales in the United adjustments incurred to date product mix and
Slide 8: Q3 2022 Income Statement Highlights
Q3 2022 Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $4.5M -25% $2.1M -34% $2.4M -30% 47% -64 ppts 53% -36 ppts Primarily driven by timing of US Primarily driven by inventory Primarily due to impact of collagen sales adjustments incurred in Q3 product mix and shipping d
Slide 9: Q3 2022 Revenue
Q3 2022 Revenue Product revenue decreased 27% to $4.1 million, compared to $5.7 million for the same period in the prior year. Development and consulting services revenue for Q3 2022 increased by 11% to $0.4 million, compared to $0.3 million for the same period of the prior year. Revenue from
Slide 10: Q3 2022 Revenue by Geography
Q3 2022 Revenue by Geography Q3 Revenue in the United States declined by 38% to $2.5 million primarily as a result of the timing of collagen dressing shipments. During the prior year, collagen sales in the United States were more heavily weighted to Q3 and Q4, whereas this year collagen sales were
Slide 11: Q3 2022 Gross Profit and Adjusted Gross Margin
Q3 2022 Gross Profit and Adjusted Gross Margin(1) Gross margin for the period ended June 30, 2022, was 47% compared to 54% for the same period of the prior year. The gross margin is significantly influenced by source of revenue, recording of inventory provisions and by the relative mix of produc
Slide 12: Q3 2022 Operating Expenses and Net Income
Q3 2022 Operating Expenses and Net Income Operational expenses from continuing operations increased 53% to $3.7 million compared to $2.4 million for the prior year, due mostly to increased headcount in sales and marketing as the Company continues to invest in growing its direct sales and marketing
Slide 13: Growth Drivers
Growth Financials Drivers 13
Slide 14: 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 15: Covalon’s Products are Used Around the World
Covalon’s Products are Used Around the World 2022 Long-term Revenue Care & Home Breakdown Healthcare Distribution Partners 67% United States > 50 Major Hospitals Historic relationships with Direct Sales 1,500 hospitals & clinics 150 Regional Hospitals + Clinics 20 International Countries 33% Distrib
Slide 16: Significant Growth Opportunity in US Hospitals
Significant Growth Opportunity in US Hospitals Significant need for 2022 Investing cost-effective Direct Sales solutions for in sales and 2025 Target infection prevention $2.8 B TAM marking to grow install base 1.7 million infections cost hospitals $28 billion a year >50 400 Major Hospitals Major Ho
Slide 17: Why Invest in Covalon
Covalon Has a Strong Growth Platform WHY INVEST IN COVALON Innovative Product Financially Strong Core Massive Growth Solutions backed by Business Potential Strong IP Significant cash; no debt Solid clinical evidence backing $8.9 billion infections and Above-market revenue growth patented product sol
Slide 18: covalon
covalon TECHNOLOGIES LTD.