INVO Fertility, Inc.

Hello, and welcome to INVO Fertility Second Quarter Fiscal Year 2026 Financial Results Conference Call. All participants will be in listen-only mode for this event. Please note, this event is being recorded. I would now like to turn the call over to Robert Bloom of Litham Partners. Mr. Bloom, please go ahead.

All right, wonderful. Thank you very much, Gary, and thank you all for joining us today to discuss INVO Fertility's Second quarter, 2026 financial results, and this is for the period ended June 30th, 2026. With us on the call today are Steve Shum, the company's chief executive officer, and Tara Krigsgold, 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. If you are listening through the webcast portal and would like to ask a question, you can submit it through the ask a question feature at in the webcast player. Before we begin, we submit for the record the following statement. Statements made by the management team of Invo Fertility during the course of this conference call may contain forward-looking statements within the meaning of the federal securities laws. These statements describe future expectations, plans, results, or strategies, and are generally identified by words such as may, will, should, expect, anticipate, believe, estimate, intend, plan, or similar expressions. Listeners are cautioned that such statements are subject to risks and uncertainties that could cause actual circumstances, events, or results to differ materially from those projected, including the risks described in the company's filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date they are made and and the company undertakes no obligation to update them except as required by law. Today's discussion will also include adjusted EBITDA and clinic-level adjusted EBITDA, which are non-GAAP financial measures. Reconciliations and additional information regarding these measures are included in today's press release. With that said, I'd like to turn the call over to Steve Shum, Chief Executive Officer of Invo Fertility. Steve, please proceed.

Thank you, Robert, and good morning to everyone joining us today. This is the first conference call INVO Fertility has conducted in a while. Over the past two years, we have focused our efforts on stabilizing the company, streamlining the business, improving our financial position, and establishing a clear operating foundation. We're not suggesting every challenge is behind us, but as mentioned in recent press releases, We do believe Invo is in the strongest position in its history with a clearer strategy and a stronger clinic operating platform. For those who have followed Invo's history, the business has been through several distinct chapters. The company began primarily as a medical device business built around InvoCell. We then expanded into operating fertility clinics, which gave us a more direct role in patient care and increased the revenue opportunity associated with each fertility treatment. We also pursued the NIAID transaction and operated for a period with fertility services and therapeutics under the same corporate structure. That expanded structure ultimately created complexity and made the underlying fertility business more difficult to evaluate and was simply too much for a small company. Last year, we divested the majority interest in Nya Therapeutics and returned the company to a strategic focus solely on fertility. We have also taken important steps to address some of the complexities to our capital structure and improve our financial position. During the first quarter, all Series C2 preferred stock was converted or retired, warrant liabilities were eliminated, and the company raised approximately $7.1 million of net proceeds through warrant exercises. We used a portion of those proceeds to satisfy deferred acquisition consideration and reduce debt. We completed our delayed 2025 Form 10-K and first quarter 2026 Form 10-Q filings in June, regained compliance with NASDAQ's timely filing requirement, and have continued to add resources across finance, operations, and human resources. I want to acknowledge those items directly on this call as it sets the stage for the company moving forward. The most useful way to evaluate InVote today is through the operating platform we now have, the earnings it generates, the opportunities within each clinic, and our goal is to add additional profitable practices to a larger network. The second quarter provides tangible evidence of that progress. As you saw in the press release, revenue in Q2 increased 17% to approximately $2.2 million. The quarter included the first full three-month contribution from Family Beginnings in Indiana, which we acquired in February, as well as continued organic growth initiatives across the clinic network. More importantly, our clinic platform remained profitable on an adjusted EBITDA basis before corporate operating public company expenses. Clinic level adjusted EBITDA was approximately $333,000 for the second quarter compared with approximately $164,000 in the first quarter and approximately $951,000 for the full year of 2025. We believe this is one of the most important facts for investors to understand about INVO. The clinics we have assembled are not simply producing revenue. At the clinic level, they are generating positive operating margin earnings. That provides a real economic base from which to grow. At the same time, the consolidated company is not yet profitable on a recurring operating basis. We continue to carry corporate costs associated with operating a public company, supporting the existing clinics, building shared services, and preparing the organization to integrate additional practices. Our key objective moving forward is to grow clinic level earnings through greater patient volumes, expanded services, improved execution and acquisitions, allowing us to spread the corporate and public company infrastructure costs across a larger revenue and earnings base and bring the overall company to a profitable state. We believe that is a clear and achievable operating objective. Let me discuss the major components of that strategy. The first is growing the clinics we already own. We are building a platform that pairs strong local physicians and care teams with centralized resources across finance, billing, human resources, administration, operations, marketing, and other support functions. These resources are intended to let clinical teams spend more time on patients, improve execution and accountability, and help each clinic increase volumes and broaden services. The objective is not to impose a one size fits all model. Fertility care remains local and highly personal. Our role is to preserve the strength and reputation of each practice while providing the support and investment that can make it more successful as part of the organization. Family Beginnings is a good example of this approach. The clinic has operated for more than a decade and has an experienced physician, clinical and embryology team. It offers a broad range of services, including IVF, IVC, fertility preservation, diagnostic testing and other services. Q2 was its first full quarter as part of INVO. Our focus is on maintaining continuity of care, support the local team, expanding awareness and patient access, and identifying opportunities to grow from an established and profitable operating base. The second component is increasing our ownership and control where it improves the platform. In June, we acquired the remaining ownership interest associated with our Birmingham, Alabama clinic, That operation was originally established as a joint venture. Bringing it fully into INVO gives us greater operational control, allows us to consolidate its results prospectively, and increases our participation in the clinic's future economics. It also enables us to apply the same shared service approach more directly across billing, finance, human resources, administration, and operating support. The third component is organic growth through access, services, and innovation. Earlier this year, Wisconsin Fertility Institute joined the Progene Network, expanding access to employer-sponsored patients. We added time-lapse incubation technology at Wisconsin to support embryo monitoring and clinical decision-making and patient engagement. Our clinical team has continued to evaluate and introduce additional patient-centered services. Together these initiatives represent the operating model we are building. We want our clinics to expand access, offer clinically appropriate services, adopt technologies that support care, quality, and patient engagement, and participate in relevant research. The fourth component involves acquisitions. We continue to evaluate a robust pipeline of established fertility practices across the United States. primarily seeking clinics with experienced physicians, strong clinical reputations, established patient demand, and a history of profitability. We are not pursuing acquisitions merely to increase the number of locations. Each transaction must make strategic and financial sense. We also need confidence that the clinical team will remain engaged, that the practice can be integrated without disrupting patient care, and that InVote can add value through capital, shared services, operating expertise, or growth initiatives. Our experience owning and operating clinics has improved our credibility with prospective partners, and we strongly believe we can successfully execute on additional acquisitions. When we step back from the individual initiatives, we believe the investment thesis is becoming clear. We have four operating fertility clinics in the United States. The clinic platform EBITDA, the clinic platform generated positive EBITDA before corporate operating and public company expenses. We have opportunities to further grow within the existing base. We have centralized capabilities that can support a larger network. We have a pipeline of established practices and we have taken meaningful steps to simplify the balance sheet and focus the organization. We certainly have more work to do. We need to continue strengthening our internal processes. We need to improve that our, we need to prove that our shared services can consistently improve clinic performance and that acquisitions can be integrated with discipline. Those are the standards by which we expect to be measured. With the core fertility platform producing revenue, growth, and positive clinic-level earnings, we believe we now have a strong foundation for the next phase of INBO's development. With that, I'll turn the call over to Tara to review the second quarter financial results in more detail. I will then return with closing comments before we open the call for questions. Tara?