Petvivo Holdings Inc

To let everyone get into the call, we'll wait at least one minute before we start. Good afternoon, and thank you for joining us today to discuss Petvivo's results for its fiscal year ended March 31st, 2024. Hosting the call today is the Chief Executive Officer of Petvivo, John Lai, the company's Chief Financial Officer, Gary Lowenthal, and me, John Dolan, the company's Chief Business Development Officer and General Counsel. Following our remarks and at the end of this call, we'll open the call to your questions. But before we conclude today's call, I'll provide some important cautions regarding forward-looking statements made by management during the call. I'd like to remind everyone that today's call is being recorded and it will be made available for telecom replay per the instructions in today's press release, which is available in the investor relations section of the company's website. Now I'd like to turn the call over to the Pet Vivo CFO, Gary Lowenthal. Gary, please go ahead.

Good afternoon. Thank you, John, and good afternoon, everyone. Thank you for joining us today to discuss our results for our fiscal year 2024. As you saw in our earnings release issued earlier today, we reported strong financial and operational progress, including revenues up of 6% to $969,000, driven by sales of our lead veterinary medical device spring with osteocushion technology. Our revenue growth was driven largely by our expanded distributor network, with sales by distributors up 15% to $732,000. This helped drive our gross profit up 6% to $740,000, with strong gross margins improving 40 basis points to 76.3%. Our lead product, Spring, provides veterinarians an innovative treatment for dogs and horses suffering from osteoarthritis, a common inflammatory joint disease. Studies show the disease affects 80% of dogs over eight years of age, 61% of cats over six, and more than half of horses over 15 years. So it's no wonder that the animal osteoarthritis market is projected to reach $3.7 billion this year, growing at more than 10% CAGR. In light of this large and fast-growing market during our 2024 fiscal year, we achieved a major milestone with the distribution of springs. reaching more than 600 veterinary clinics across 49 states. This led to more than 4,500 spring syringes being distributed nationwide. Helping us achieve these numbers was our new distribution partner, Covetris North America, who is helping us market, sell, and distribute spring throughout the United States. Covetris began selling spring in January of this year, and we recognized $106,000 in sales by Covetris before our fiscal year-end, March 31st. This represents 11% of our total revenues for the year. Excuse me. Also, during the year, we expanded our sales and marketing team, strengthened our intellectual property portfolio, and reported positive results from two key clinical animal studies. I would like to take us through the financial details for the year. Our revenues in fiscal 24, which ended March 31st, increased 6% to $969,000, primarily due to the expansion of our distribution channels. Revenues primarily consisted of sales of our spring product to our distributors totaling $732,000, which was up 15% year over year. Sales to veterinary clinics totaled $237,000, which was down 16% compared to the year ago period due to the transition from solely equine sales, the horses, to include companion animals such as dogs and cats. This transition was enabled by the positive clinical studies published prior to and during the year. Our distributed partnership with MWI generated 65% of our total revenues from spring sold during the fiscal year. In January of this year, Covetris began selling spring. We recognized product sales to Covetris of $106,000, or 11% of total revenues for the year. Gross profit totaled $740,000, or 76.3% of revenues, as compared to $670,000, or 75.9% of revenues for fiscal 2023. The increase in gross margin resulted from really more of a favorable product shift. We also reduced our production costs. The operating expenses increased 20% to $11.4 million compared to fiscal 2023. The increase in operating expenses is due to increase in G&A tech costs of $1.7 million, research and development of $270,000, $272,000. This was partially offset by $11,000 decrease in sales and marketing. The net loss totaled $11 million or $0.78 a share per basic and diluted share as compared to a net loss of $8.7 million or $0.85 per basic and diluted share in the same period last year. Now, turning to the balance sheet, cash and cash equivalents totaled $87,000 on March 31st of 24. Subsequent to the year end, we raised net proceeds of $1.8 million through a private equity offering. The completeness of our financial summary for the year. Now, I'd like to turn the call over to our Chief Business Development Officer, John Dolan. Thank you, Gary.

For those of you who have been following our progress, you've heard about the numerous case studies and veterinarian reports that indicate long-lasting improvement in lameness in animals, particularly in horses and dogs, lasting 12 months or longer. Over the course of last fiscal year, there were two key clinical studies of spring completed and their results announced. The first was completed in September 2023 by Ethos Veterinarian Health. Ethos evaluated the benefits and tolerability of an intraarticular injection of spring, a collagen-based biomaterial, into the stifled joints of dogs with suspected cruciate ligament rupture. The study involved a Simons two-stage study design with an initial cohort of 22 patients with unilateral cranial cruciate ligament disease, and an additional 18 patients were enlisted once the treatment was shown to be effective for a total of 40 subjects. The researcher reported that on average, there was significant improvement in all clinical variables within the range for gradual improvement. The tests included in the study were the modified Glasgow composite pain scale to test pain, the visual lameness score wherein the veterinarian assesses mobility, and the liver pool osteoarthritis in dogs questionnaire wherein the owner assesses the mobility and movement. Each of these tests demonstrated significant results. The study was presented at the annual American College of Veterinary Surgeons conference held in October of last year and received a very favorable response. Then in January of this year, Ethos completed another key study in collaboration with Colorado Animal Specialty and Emergency, also known as CASE. They studied the effects of spring in pain and function secondary to hip osteoarthritis in dogs. Case enrolled an initial cohort of nine dogs. Each was skeletally mature and demonstrated hip pain without other joint pain and with radiographic osteoarthritis in one or both hips. Of the nine dogs who completed the study, at day 84, 77.8% had a greater than three point reduction in total CBPI score, while 77.8% had improved hip extension on goniometry. This researcher reported that all subjects had improved visual lameness scores and quality of life assessments. These results were presented to the Veterinary Orthopedic Society Annual Conference in February of 2024. Further details and summaries of these new studies and other past studies are available for download from our springhealth.com website. We also received positive results from two other tolerance clinical studies, which were completed at the year end of this year. Both tolerance studies conducted by Innatib, one for cats and the other one for dogs. And there is still another study underway at Colorado State University which is evaluating the intraarticular injection of spring on naturally occurring elbow osteoarthritis associated with pain in dogs. This CSU study is expected to be completed in September of this year. All of these studies are key to our distribution strategy, since large national and international distributors generally require a university study or other independently conducted study by an independent institution before including a product in their catalogs. These studies also further our go-to-market strategy by attracting the attention and endorsements of key opinion leaders, as well as being invited to make podium presentations at animal health conferences and trade shows. Now, with that, I would like to turn the call back over to John Lai.