Covalon Technologies Ltd. · TSXV:COV
Covalon Technologies — Q1 2023 Earnings Presentation
16 slides from Covalon Technologies's earnings presentation, Feb 23, 2023
Slide 1: Q1 2023 Earnings and Business Update
TSX-V: COV OTCQX: CVALF Q1 2023 Earnings and Business Update Brian Pedlar CEO Jason Gorel Interim CFO February 23, 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: 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 5: 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. 5
Slide 6: Covalon's products are utilized around the world
Covalon’s products are 2023 Revenue utilized around the world Breakdown > 70 Major Hospitals Direct Sales (> 300 Beds) 6 of 10 Strong Clinical Evidence Top 10 Children’s Hospitals 63% United States Long-term Care & Home Healthcare Distribution Partners 20 International Countries 37% Distributors Int
Slide 7: First Quarter 2023 Financial Results – Key Highlights
First Quarter 2023 Financial Results – Key Highlights Revenue was $6.2 million for the quarter, compared to $4.9 million in Revenue 3 Months the prior year $6.2M +25% Gross margin was $3.7 million or 60%, an improvement over last year’s $2.3 million or 46% Gross Margin Covalon ended the period
Slide 8: Balance Sheet Consistent with Significant Cash and No Debt
Balance Sheet Consistent with Significant Cash and No Debt Sept. 30, 2022 Dec. 31, 2022 Cash $14.1M $14.1M Current Assets $27.2M $26.7M Total Assets $30.4M $30.0M Debt $---- $---- Current Liabilities ($4.5M) ($5.1M) Total Liabilities ($6.1M) ($6.5M) Key Takeaways • We ended both Q1 2023 and fiscal 2
Slide 9: Q1 2023 Revenue
Q1 2023 Revenue Product revenue increased 17% to $5.2 million, compared to $4.5 million for the same period in the prior year. Development and consulting services revenue for Q3 2022 increased by 111% to $0.8 million, compared to $0.4 million for the same period of the prior year. Revenue from
Slide 10: Q1 2023 Revenue by Geography
Q1 2023 Revenue by Geography United States accounts for 63% of revenue Q1 Revenue in the United States increased by 8% to $3.9 million, primarily as a result of increased sales to hospitals and development services. International revenue was up 71% to $2.3 million. Revenue increased in Latin A
Slide 11: Q1 2023 Gross Profit and Adjusted Gross Margin
Q1 2023 Gross Profit and Adjusted Gross Margin(1) Gross margin for the period ended December 31, 2022, was 60% compared to 46% 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 pr
Slide 12: Q1 2022 Operating Expenses and Net Income
Q1 2022 Operating Expenses and Net Income Operational expenses increased 20% to $4.1 million compared to $3.4 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 team in the United States
Slide 13: 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 14: Our Mission
Our Mission Provide innovative and cost- effective healthcare solutions that reduce pain, prevent infection, and promote healing. 14
Slide 15: 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 16: www.covalon.com
covalon TECHNOLOGIES LTD.