INVO BioScience, Inc.

Good day and welcome to the INVO Biosciences Report's second quarter 2022 financial results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Robert Bloom. Please go ahead.

All right, thank you very much. Good afternoon, everyone, and thank you for joining us today to discuss InvoBioscience's second quarter 2022 financial results. Joining us on today's call is InvoBioscience's CEO, Steve Shum, the company's chief operating officer and VP of business development, Mike Campbell, and Andrea Gorin, the company's chief financial officer. At the conclusion of today's prepared remarks, we'll open the call for a question and answer session. Before we begin the event, we submit for the record the following statement. Certain matters discussed on this conference call by the management of InvoBioscience may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, Section 21E of the Securities Exchange Act of 1934 as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. all statements regarding the company's expected future financial position, results of operations, cash flows, financing plans, business strategies, products and services, competitive positions, growth opportunities, plans and objections, objectives of management for future operations, as well as statements that include words such as anticipate, if, believe, plan, estimate, expect, intend, may, could, should, will, and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties, and contingencies, many of which are beyond the company's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in the company's filings, at www.sec.gov. The company is under no obligation to and expressly disclaims any such obligation to update or alter our forward-looking statements, whether the result of new information, future events, or otherwise. With that said, let me turn the call event over to Steve Shum, Chief Executive Officer of InvoBioscience. Steve, please proceed.

Thank you, Robert, and welcome, everyone. I'll cover the general highlights for the second quarter as well as some important developments we see in front of us before turning to Mike and Andrea for additional details. First, all three of the existing InvoCenters continue to make solid progress. While the revenue growth was muted, patient trends and activity in the form of inquiries, consults, and initial testing continue to expand and was up sequentially again by approximately 20% from the first quarter. Revenues are ultimately driven from procedures in the clinics, batch patients together, and hence there can be some quarter to quarter variability based on the timing of those batch cycles. With the current batches already completed and scheduled for Q3, along with the higher number of patients in those batches, we do expect higher revenue for the third quarter. And the patient trends during Q3 are also up sequentially again from the second quarter. So we believe the activity continues to build nicely. Mike will provide some additional details around that. We also believe the current marketing programs, which we initially started in Atlanta and more recently in Birmingham and Mexico, are working well and have been a key contributor to the growing or building activity levels. We also continue to learn and gain insight with these marketing programs and plan to implement these programs in a more concerted manner to accelerate the cycle ramp in the future upcoming clinics. We are also exploring additional cost-effective ways or marketing methods to help drive further awareness. This includes our plans to produce additional published material around the InvoCell and its success rates and patient costs. Let me also just say, we think it's important to understand that it takes time and is a process to establishing a brand new medical practice and build the awareness, reputation, and confidence around a local community. Remember, many existing IVF practices that are successful and profitable have been around for many years within their community. And of course, that is our goal to create the same reputation and stature for each INVO center. With respect to the previously announced new info centers, the Tampa lease was signed and build out is underway. As we indicated on our last call, we were able to reduce part of the upfront investment required to bring Tampa operational in the form of higher TI and build out cost allocation being incorporated into the lease rate for the space. Our discussions with potential clinician partners in Tampa are progressing well, and we expect to have further updates on that soon. The planned California Center is underway as well and also expected to open around the end of this year. And we are making early progress on Kansas City, although some of the early planning steps there have taken a little longer. As we've noted in our past calls, our strategy also continues to evolve and we are finding ways to further expand our efforts. On that point, let me shift gears and discuss a new and positive dynamic that has emerged for INVO, and one we think is quite additive or complementary to our existing growth strategy. That is acquisition potential. We now see the opportunity to acquire smaller to mid-sized established fertility practices. This wasn't part of our focus originally, so you haven't heard us discuss this until now. but it has emerged as a result of our ability to directly interact with the existing practices in the U.S. since resuming control of the distribution efforts in early February of this year. As noted in our press release, we have already signed a non-binding letter of intent to acquire one such practice. It's well established and been in their local community providing care for over 15 years and nicely profitable. The physician principal shares our vision for providing care and is excited about the InvoCell solution. We are working to consummate the transaction in a reasonable timeframe as diligent and audit review is underway. While this clinic primarily offers conventional IVF today, we will look to work with the physician partner and fully integrate InvoCell and further enhance the operations. For us, we think adding an acquisition approach to our strategy makes sense. We are furthering our mission to help patients and bring care to the market, and it helps accelerate our ability to build scale more quickly in our operations by adding immediate revenues and positive EVA dot contribution. Equally important, we believe we have priced the current proposed acquisition well and structured it in a very favorable win-win manner for both us and the principals. We have also signed an LOI to provide funding to close the transaction in a non-dilutive manner. So we are excited by this specific opportunity and believe we may have additional opportunities with other practices. And again, we think it's very complimentary with our efforts to build new practices as well. So we have now developed a more comprehensive approach of both build and buy. which again can bring scale to the business and help bring the whole company to a profitable operating state more quickly. As a quick reminder, any potential acquisition, including this initial target line, is subject to completing our comprehensive diligence review. On the overall distribution front, we continue to see encouraging feedback and activity in the U.S., as well as selectively outside the U.S., While that was not evident with order flow in the second quarter, we believe the momentum is building, and Mike will add some color on this. Getting to our clinical activities, I'm also pleased to report we finally completed collecting all the necessary data, have calculated all the necessary statistics around that data, including the comparison to the IVF data set, and have fully validated everything to support our 510 submission. all of which is designed to support our five-day clinical label enhancement efforts. We believe the data looks very good, and we are very pleased with the outcomes and excited to share those with the market as soon as possible. The final submission will be sent in imminently, likely within the coming days here. Let me turn this over to Mike for his comments on additional details around our commercialization efforts. Mike?