About a year ago, Zomedica's (ZOM 0.64%) financial situation was a bit grim. The shares were trading at less than a $1 apiece -- and they faced a possible delisting from the NYSE. The veterinary diagnostics company had also posted years of deepening losses and declining cash levels.

But some investors hung on or bought shares. Why? Because Zomedica was arriving at a crucial moment. It had reached the final stages of development for its Truforma diagnostics platform. Now the company plans on launching the system in about a month. In that one-year period, Zomedica's stock has more than recovered, surging more than 1,800%. So, if you were an early believer, you've seen your investment soar. Let's do some math and find out exactly how much.

A veterinarian smiles as she holds a cat.

Image source: Getty Images.

Trading at $0.13 

A year ago, Zomedica's shares were trading at $0.13. So, with $10,000, you could have purchased 76,923 shares. Today, that investment would be worth more than $176,900. That's a win for investors who took a big risk at such a difficult time for Zomedica.

The shares didn't rise without reason, though. Zomedica's situation has progressed, and product launch is right around the corner.

First, from a stock market listing point of view, Zomedica recently announced something very positive. The NYSE American LLC told Zomedica that it's no longer in danger of being delisted. The exchange can remove a stock if it closes at less than $1 for more than 30 consecutive days. That's no longer the case for Zomedica.

Next, Zomedica's cash levels have improved. The company reported cash levels of $52 million as of September, up from $510,586 as of Dec. 31, 2019.

ZOM Cash and Equivalents (Quarterly) Chart

ZOM Cash and Equivalents (Quarterly) data by YCharts

The company has boosted liquidity through financing activities. In the first nine months of last year, Zomedica's proceeds from share sales totaled more than $56 million. And this year, Zomedica raised $173.5 million in a public stock offering.

The first commercialized product

There's a good reason for this fundraising. Zomedica will use the cash to help it launch Truforma. And that's the big news here. This represents Zomedica's first commercialized product -- and a pathway to revenue and eventual profitability.

Truforma is a toaster-sized device that runs assays to detect thyroid and adrenal disease in dogs and cats. Zomedica plans to sell the platform and assays to veterinarians for in-office use. The company will release Truforma along with three assays in a limited geographic area as of March 30. The goal then is to add two assays and expand the geographical reach later in the year.

Zomedica's tests provide precise results at the point of care in less than 20 minutes. Of course, Zomedica isn't the only player in the veterinary diagnostics field. Competitors include Siemens Healthineers AG (SMMNY 0.96%) and IDEXX Laboratories (IDXX -1.39%). But demand for such tests makes me optimistic about Zomedica's chances. The companion animal diagnostics market, worth $1.8 billion last year, will reach $3 billion by 2025, a Markets and Markets report predicts.

Now, what about risk? The big one just ahead is this: Will veterinarians choose Truforma or continue to use current systems? Any disappointment in Truforma sales could seriously hurt Zomedica's stock price. This is Zomedica's only potential product -- at least for now -- and more assays to run on the system are in development. Everything is riding on veterinarians' acceptance of this new product.

But if Truforma wins over veterinarians, Zomedica's growth story is really just beginning. We could expect some revenue this year and then more growth once the company expands rollout and adds assays. In that case, I would expect more share increases down the road. That means investors who believed in Zomedica at the start may have more to gain well into the future.