Slide 1: Q3 2023 Earnings and Business Update
TSX-V: COV OTCQX: CVALF Q3 2023 Earnings and Business Update August 16th 2023 Brian Pedlar, CEO Jason Gorel, CFO www.covalon.com helping the most vulnerable patients have a better chance at healing 1
Slide 2: 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 3: We aren’t just another medical device company…
TSX-V: COV We aren’t just OTCQX: CVALF another medical device company… 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 technologies and solutions for advan
Slide 4: Our Mission
Our Mission Provide innovative and cost-effective healthcare solutions that reduce pain, prevent infection, and promote healing. 4
Slide 5: Innovative, compassionate care products will displace current standards of care
Innovative, compassionate care products delivered efficiently, will displace current standards of care because they result in better clinical outcomes and better clinician-patient interactions at a lower cost of care. 5
Slide 6: Covalon’s products are utilized around the world
Covalon’s products are 2023 Revenue utilized around the world Breakdown > 100 US Hospitals Direct Sales 6 of 10 Strong Clinical Evidence Top 10 Children’s Hospitals 70% United States Long-term Care & Home Healthcare Distribution Partners 20 International Countries 30% Distributors International ~20
Slide 7: Quarterly Revenue Growth Last 6 Quarters
Quarterly Revenue Growth Last 6 Quarters Key Takeaways • Strong revenue growth over last year • Forecasting revenue growth for 2023 vs 2022 • United States revenue growth tracking to plan • Middle East revenue continuing to return to expected levels, but still “lumpy” quarter to quarter • Rest of Wo
Slide 8: Third Quarter 2023 Financial Results – Key Highlights
Third Quarter 2023 Financial Results – Key Highlights Revenue 9 Months Revenue year to date was $19.7 million, compared to $12.8 million in the prior year $19.7M +54% Revenue was $6.3 million for the quarter, compared to $4.5 million in Revenue 3 Months the prior year Q3 Gross margin was $3.6
Slide 9: Balance Sheet Consistent with Significant Cash and No Debt
Balance Sheet Consistent with Significant Cash and No Debt Sept. 30, 2022 June 30, 2023 Cash $14.1M $9.2M Current Assets $27.2M $22.9M Total Assets $30.4M $26.4M Debt $---- $---- Current Liabilities ($4.5M) ($4.3M) Total Liabilities ($6.1M) ($5.3M) Key Takeaways • We ended Q3 2023 with $9.2M cash on
Slide 10: Q3 2023 Revenue
Q3 2023 Revenue Product revenue increased 46% to $6.0 million, compared to $4.1 million for the same period in the prior year. Development and consulting services revenue for Q3 2023 decreased by 44% to $0.2 million, compared to $0.4 million for the same period of the prior year. Revenue from
Slide 11: Q3 2023 Revenue by Geography
Q3 2023 Revenue by Geography United States accounts for 70% of revenue year-to-date. Q3 Revenue in the United States increased by 75% to $4.5 million, primarily as a result of increased collagen sales. Q3 International revenue was down slightly by 8% to $1.8 million. Revenue decreased in the M
Slide 12: Q3 2023 Gross Profit and Adjusted Gross Margin
Q3 2023 Gross Profit and Adjusted Gross Margin(1) Gross margin for the period ended June 30, 2023, was 57% compared to 47% 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 13: Q3 2023 Operating Expenses and Net Income
Q3 2023 Operating Expenses and Net Income Operational expenses increased 13% to $4.2 million compared to $3.7 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 team in the United States.
Slide 14: Fiscal 2023: Strong Path to Financial Growth
Fiscal 2023: Strong Path to Financial Growth Investing in Sales and Marketing initiatives to drive aggressive 2025 Targets: growth in our US Hospital Market • Currently have over 100 US hospital customers • 3 strong infection prevention products 400 Major Hospitals 6 of the Top 10 Pediatric Hospital
Slide 15: Many Prestigious Hospitals Choose Covalon
Many Prestigious Hospitals Choose Covalon Some of our Children’s Hospital Customers including 6 of the top 10 in the United States: Some of our Acute Care Hospital Customers in the United States: 15
Slide 16: Covalon Has a Strong Growth Platform
Covalon Has a Strong WHY INVEST Growth Platform IN COVALON Financially Strong Core Innovative Product Solutions Massive Growth Potential Business backed by Strong IP Significant cash; no debt Solid clinical evidence backing $8.9 billion infections and chronic Above-market revenue growth patented pro
Slide 17: www.covalon.com
covalon TECHNOLOGIES LTD.