Evome Medical Technologies (EVMT) Guidance summary

Opening remarks and agenda

• Call included forward-looking statements, non-GAAP measures, and references to material risks and uncertainties.

• Risk factors and non-GAAP reconciliations are available in news releases and SEDAR+ filings.

• CEO Mike Seckler scheduled an update call for June 4, 2024, to discuss Q1 financials, Q2 progress, and future plans.

Guidance on key objectives

• Focus on leveraging Biodex as the foundation, with continuous product launches and targeting private practice physical therapy.

• Preliminary estimated revenue for April and May 2024 reached $3,970,496 with a 36% gross margin for Biodex and DaMar.

• Q2 2024 revenues are projected to be 39% higher with increasing gross margins compared to Q1 2024 for Biodex and DaMar.

• Plan to pay down working capital debt over the next two quarters through increased revenues.

• Plans to divest DaMar in 2025 and further divest South Dakota Partners Inc. and Mio-Guard LLC in coming quarters to reduce debt.

Market trends and strategic opportunities

• High global demand for Biodex products, especially System 4 line, recognized as best-in-class.

• Entry into the private physical therapy market, which is ten times larger than the current institutional market.

• New Asian distributor deal could generate over $5 million annually.