Slide 1: Q4 2022 Earnings and Business Update
TSX-V: COV OTCQX: CVALF Q4 2022 Earnings and Business Update Brian Pedlar CEO Jason Gorel Interim CFO January 26, 2023 covalon.com
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: Covalon is a patient-driven medical device company
TSX-V: COV OTCQX: CVALF 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 advanced wound care, infection prevention and medica
Slide 4: Balance Sheet Significantly Improved Since 2020
Balance Sheet Significantly Improved Since 2020 Sept. 30, 2020 Sept. 30, 2021 Sept. 30, 2022 Cash $3.5M $22.9M $14.1M Current Assets $14.8M $37.4M $27.2M Total Assets $34.7M $40.6M $30.4M Debt ($17.7M) $----- $---- Current Liabilities ($22.6M) ($5.0M) ($4.5M) Total Liabilities ($25.6M) ($7.2M) ($6.1
Slide 5: Our Patented FDA Cleared Product Solutions Focus On
Our Patented FDA Cleared Product Solutions Focus On Infection Prevention • Vascular Access Blood Stream Infections (“BSIs”) • Surgical Site Infections (“SSIs”) • Medical Device-related Infections Advanced Wound Healing • Diabetic chronic wounds • Surgical wounds • Traumatic non-healing wounds • Seri
Slide 6: Covalon is focused on becoming a leading provider of compassionate care solutions
Covalon is focused on becoming a leading provider of compassionate care solutions that help patients heal faster and live better. 6
Slide 7: Our Mission
Our Mission Provide innovative and cost- effective healthcare solutions that reduce pain, prevent infection, and promote healing. 7
Slide 8: Uninsured Hospital-Acquired Infections have increased as much as 63%
Uninsured Hospital-Acquired Infections have increased as much as 63% in Intensive Care Units 1 1 Weiner-Lastinger, L., Pattabiraman, V., Konnor, R., Patel, P., Wong, E., Xu, S., Dudeck, M. (2022). The impact of coronavirus disease 2019 (COVID-19) on healthcare-associated infections in 2020: A summar
Slide 9: Current Standard of Care Products are ineffective
Current “Standard of Care” Products used to combat vascular access and surgical site infections (SSIs) in hospitals in the United States are ineffective 1 1 Klevens, R. Monina; Edwards, Jonathan R.; Richards, Chesley L.; Horan, Teresa C.; Gaynes, Robert P; Pollock, Daniel A.; Cardo, Denise M. (2007)
Slide 10: Clinicians and Patients are demanding Better, Safer Products
Clinicians and Patients are demanding Better, Safer Products … A Better Standard of Care 10
Slide 11: 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 70 major hospital customers (> 300 beds) • 3 strong infection prevention products 400 Major Hospitals 6 of the Top 10 Pediatri
Slide 12: Many Prestigious Hospitals Choose Covalon
Many Prestigious Hospitals Choose Covalon Some of our Children’s Hospital Customers: Some of our Acute Care Hospital Customers: 12
Slide 13: Covalon's products are utilized around the world
Covalon’s products are 2022 Revenue utilized around the world Breakdown > 70 Major Hospitals Direct Sales (> 300 Beds) 6 of 10 Strong Clinical Evidence Top 10 Children’s Hospitals 67% United States Long-term Care & Home Healthcare Distribution Partners 20 International Countries 33% Distributors Int
Slide 14: Revenue Profile and Margins
Revenue Profile and Margins Key Takeaways • COVID recovery underway in the U.S. with ROW markets slower to recover • Collagen revenue in the U.S. down $0.6M in 2022 due to timing of orders. • Forecasting revenue growth for 2023 • Decline in International revenue due to exiting U.K. market • Gross ma
Slide 15: Year End Income Statement Highlights
Year End Income Statement Highlights Revenues Gross Profit Adjusted Gross Margin(1) $18.1M -7% $7.5M -23% $10.0M -3% 41% -90 ppts 55% +20 ppts Primarily driven by Collagen Primarily driven by $2.3M of Primarily due to impact of product sales in the United inventory adjustments product mix and increa
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.