INVO BioScience, Inc.

Good day, and welcome to the INVO Biosciences reports on the third 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 would now like to turn the conference over to Robert Bloom with Lithum Partners. Please go ahead.

All right. Thank you very much, Jason. Good afternoon, everyone, and thank you for joining us for today's InvoBioscience third quarter 2022 financial results conference call. 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 will open the call for a question and answer session. Before we begin with 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 objectives of management for future operations, as well as statements that include words such as anticipate, if, believe, plan, estimate, expect, intend, may, could, expect, 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.com. The company is under no obligation to and expressly disclaims any such obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise. With that said, I'd like to turn the event over to Steve Shum, Chief Executive Officer of InvoBioscience. Steve, please proceed.

Thank you, Robert, and welcome, everyone. Let me start by saying we are pleased with the progress made across each of our key operating objectives during the quarter. On the clinic side, our three operating info centers in Birmingham, Atlanta, and Monterey all made excellent progress, with revenue from the consolidated and non-consolidated centers combined increasing over the year-ago period and sequentially. Please remember that only revenue derived from our Atlanta center is consolidated into our results, whereas Birmingham and Monterey are accounted for under the equity methods. We also continue to see improved efficiencies within the centers. On the distribution side, since regaining full U.S. commercialization rights in February this year, our year-to-date product sales continue to build, which does now include selling directly to the U.S. IVF clinics and we expect to see further progress moving forward. So our multi-channel strategy of supporting, servicing, and expanding across existing IVF clinics, as well as building new dedicated in-vote centers is progressing well and building. As we mentioned on our last earnings call, we also added a very important third key aspect to our commercial strategy regarding an acquisition approach. We are actively working through the necessary components to close our first acquisition, which again, as we noted last quarter, we put under an LOI. We expect to complete the closing near term, at which time we will plan to provide all the critical details. We believe this will be extremely positive for a number of reasons. As we highlighted last quarter, when we brought this part of the strategy to your attention, we felt we had the opportunity to potentially acquire smaller, to mid-sized established fertility practices in the marketplace. While this wasn't part of our initial commercial focus, we believe adding an acquisition approach to our strategy makes sense. It advances our mission to help patients and bring care to the market, and it helps accelerate our ability to build scale more quickly in our overall operations by adding immediate revenues and positive EBITDA contributions. The initial acquisition we are working on is a well-established practice and nicely profitable. The clinic primarily offers conventional IVF today, but we will look to work with the physician partner and fully integrate InvoCell and further enhance those operations post closing. As with this first opportunity, our overall acquisition strategy is focused on pricing deals attractively and structuring them in a very favorable win-win manner. and we will seek these out on a selective basis and at a measured pace. As we also noted last quarter, we executed an LOI to provide the funding necessary to close this first transaction, and it represents non-dilutive capital. So we remain excited about closing this first acquisition, and based on current active discussions, we believe we will have additional opportunities to acquire other practices as we move beyond this first one. I would also note that existing clinics interested in teaming up with us via an acquisition see the benefits of our mission and approach, but also see the benefits of doing so within a public company platform as it can offer the benefit of longer-term upside and attractive wealth planning for those owner-operators. And we think this effort is very complementary with our ongoing efforts to build new practices. giving us a more comprehensive approach of both building new and buying existing, which again we believe brings scale to the business and helps bring the whole company to a profitable operating state more quickly. One important additional item to note, because the current acquisition is pending and is material to the business, it does limit our financing options currently until we can close and provide the audited financials publicly on this acquisition. So we're unable to use our current shell filing or other types of public offerings until we complete this process. We have added additional liquidity via simple note from a private family office that is familiar and supportive of our strategy. And we are working to close a small private funding shortly as well. Shifting back to our current INBO centers, The revenue progress made in the period reflects the patient building activities we've discussed in the prior periods, and we are seeing further strong growth in the current fourth quarter, where all three clinics have treated their highest number of patients yet. Over the past few months, we have also not needed to provide any funding to the clinics, which represents an important milestone as they are becoming more cash flow self-supportive. It doesn't mean they are necessarily gap profitable just yet, as a number of factors impact cash flow, but we view it as important. As they further ramp activities from here, we would expect to see them continue to improve and start generating excess cash flow. We also believe this progress has been supported by the various marketing programs, and we are seeking new methods to further enhance those efforts as well. With respect to the previously announced planned new INBO centers, we can now see that our original goal of opening the Tampa and the Bay Area clinics by year end will occur a bit later into the new year. They are underway in terms of planning and build out. However, these delays are not a negative in our minds given the focus on the acquisition and the advantage of closing that opportunity first. As we get into the beginning of the year, we will provide more specific updates along with the Kansas City clinic as well. I would note that the added time has afforded us the opportunity to further advance some great discussions with potential partners that could help drive more rapid patient growth in these new clinics once they are up and running over what we've experienced with the existing clinics in Birmingham, Atlanta, and Mexico. On the distribution front, we continue to see clinics increasingly interested in incorporating the technology into their practices and we expect that will continue to build from here. Shifting to our clinical activities, we're also very pleased to report we submitted the updated 510 during the third quarter with all the additional data collected over the past year and a half. We expect to be receiving a response from FDA very soon. As we mentioned on the last call, we believe the data looks very good and we are quite pleased with the outcomes and excited to share those with the market as soon as possible. With that, let me turn this over to Andrea to quickly cover some of the financial highlights. Andrea?