Petvivo Holdings Inc

Good afternoon, everyone. Thank you for joining us today to discuss Petvivo's results for its fiscal first quarter ended June 30th, 2024. Hosting the call today are the Chief Executive Officer of Petvivo, John Lai, the company's Chief Financial Officer, Gary Lowenthal, and myself, John Dolan, Chief Business Development Officer in General Counsel. Following the remarks of the hosts, we'll open the call to your questions. The operator will explain how to participate in the Q&A following the presentation by the hosts. Before we conclude today's call, I'll provide some important cautions regarding the 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 instruction in today's press release, which is available in the investor relations section of the company's website. Before we venture into the details of the first quarter of 2025, let me provide you an introductory overview related to the company and a few highlights. In our fiscal first quarter of 2025, we achieved strong financial and operational progress as we continue to advance the rollout of our flagship product, Spring, with Osseocushy Technology. which promotes the restoration of proper joint mechanics. This injectable intraarticular veterinary device is composed of patented biocompatible microparticles derived from natural sources. The novel technology results from years of R&D and clinical studies. Spring's unique, lubricious, and viscoelastic characteristics address a prevalent unmet medical need to reduce the joint pain and discomfort caused by osteoarthritis and poor joint biomechanics that affect millions of pets and horses. This includes more than 80% of all dogs and cats and more than half of all horses at some time during their lifetime. These porous spongy microparticles are specifically designed to absorb and release synovial fluid in the joint in response to mechanical forces, thereby mimicking the properties of natural cartilage. Most importantly, SPRING has been clinically shown to go beyond the simple masking of symptoms to address the root cause of lameness, which is usually missing or damaged cartilage. As the word continues to spread among veterinary practices and from our presentations at leading veterinary conferences about these breakthrough medical benefits for horses and companion animals, we are seeing increased demand from our distribution network. In fact, our revenue growth for this past quarter was driven largely by distributor sales, which more than doubled over the past year, and they continue to climb. Meanwhile, we've been able to maintain our highly favorable gross margins of 89.5%. During this past quarter, our distribution of spring surpassed more than 800 veterinary clinics across 50 states. This has led to now more than 10,000 dogs, cats, and horses that have experienced the benefits of spring nationwide. With this growing adoption of spring, veterinarians now have a valuable new revenue stream that creates better outcomes for their patients and at a lower cost for pet owners as compared to traditional methods of treatment. Now after accumulating a strong body of independent research that reveals benefits of SPRING for commanding animals, we have established the ideal position for accelerating the market adoption of SPRING. We recently restructured and realigned our sales and marketing teams and strengthened our efforts with the appointment of two key senior sales and marketing professionals with extraordinary records of achievement in executive roles at Fortune 500 companies. This includes appointing formal Hills Pet Nutrition and Novus International Senior Sales and Marketing Executive Brian Moniger to the position of VP of Sales in June, and then appointing former Procter & Gamble and Clorox Sales and Marketing Executive April Boyce as VP of Marketing also in June. As sales continue to ramp, we plan to add additional sales and marketing personnel to support our growing distribution relationships and market leaders that currently include MWI and Covetris. We also plan to hire additional personnel to support direct sales and marketing to leading veterinary clinics nationwide. Now, before we get into some exciting recent developments and our outlook for the rest of the year, including comments from our Chief Executive Officer, John Lye, I would like to turn the call over to our CFO, Gary Lowenthal, who will take us briefly through the financial details for the quarter. Gary.

Thanks, John. And good afternoon, everyone. Thank you for joining us today. Our revenues in the fiscal first quarter of 2025 increased 6% to $124,000, largely due to distribution channel expansion and broader adoption of our spring product. This included sales to our distributors, increasing 102% year-over-year to $68,000. Sales to veterinary clinics totaled $55,000, which declined 33% compared to the year-ago period due to veterinary clinics buying direct from our distributors. Furthermore, the marketing transition from solely equine horses sales to include companion animals such as dogs and cats, which represents a far greater market opportunity. As John Dolan mentioned, This transition has been enabled by the numerous positive clinical studies published over the last two years with a number of new studies underway. Gross profit totaled $111,000, 89.5% of revenues as compared to 105,000 or 89.5% of revenues in the first quarter of 2024. Our operating expenses decreased 28% to 2.2 million compared to the first quarter of 2024. This large expense reduction was due to a strategic company-wide cost reduction in corporate restructuring program that decreased general administrative expenses by $530,000 and decreased sales and marketing expenses by $407,000 versus the same year ago quarter. These decreases were partially offset by a nominal increase in research and development of $94,000, mostly clinical studies. Net loss improved to $2 million or 11 cents loss of share per basic and diluted share from a net loss at 2.9 million or 25 cents per basic and diluted share in the same year or quarter. I'll turn you to the balance sheet and cash flow statement. Cash and cash equivalents total 12,000 at June 30th. However, subsequent to the end of the quarter, we raised net proceeds of $2 million which keeps us in a good position to execute our growth plan over the next several months. Net cash use and operating activities decreased 29% or $633,000 compared to fiscal first quarter 2024. Now this completes our financial summary for the quarter. I'd like to now turn the call back over to our Chief Business Development Officer, John Dolan.

Thank you, Gary. As a key part of our strategy to accelerate the adoption of Spring and expand our market reach, we attended two major veterinary conferences in this past quarter. In April, we exhibited Spring at the American College of Veterinary Sports Medicine and Rehabilitation Symposium in Naples, Florida. The symposium provided the perfect venue to present the research-backed benefits of Spring for the management of osteoarthritis to an audience of leading sports medicine rehabilitation experts in the veterinary space. This group of veterinarians are primary users of SPRING, therefore being a key target market for Pet Vivo. We also presented SPRING to leading veterinary pain management experts at the International Veterinary Academy of Pain Management Forum. Our veterinary medical advisor, Dr. Marie Bartling, spoke on the topic how do we elevate our strategy for managing osteoarthritis in pets, which was very well received. This coming fall and early winter provides us the opportunity to exhibit at a number of prominent trade shows in the industry, including the American College of Veterinary Surgeons Summit in October in Phoenix, Arizona, and the American Association of Equine Practitioners Convention in December in Orlando, Florida. Our sales and marketing teams have a number of other shows scheduled during the fall and winter, which we anticipate will enhance veterinarian awareness and educate the veterinary field about the benefits of spring. Also to drive the greater adoption of spring, we are working with a number of prominent organizations to complete existing studies and to prepare protocols for a few more clinical studies that are planned for enrollment in the third and fourth quarter of this year. As mentioned, There are a few studies currently in progress. One is being conducted at Colorado State University where researchers are evaluating the effectiveness of intraarticular spring injections for managing pain associated with naturally occurring elbow osteoarthritis in dogs. The accumulation of data is complete and the scientists and statisticians are currently assessing the numbers and preparing the data and results for publication. We hope to see a presentation of the study sometime in Q1 or Q2 of 2025. The second is a double-blinded placebo-controlled field study supported by Ethos that involves approximately 40 dogs. It is assessing the efficacy of intraarticular spring injections for managing unilateral or bilateral coccyfemoral joint osteoarthritis. This study is expected to conclude by Q3 or Q4 of next year. Finally, the PetVivo R&D team is currently working through the protocol details of the first of a series of studies with Sherman and Deborah Knapp of Orthobiologics Innovation, LLC. We will provide further details of the progress in upcoming earnings calls. All of these studies will add to the body of published clinical research that now totals more than five studies to date. These studies are critical to our distribution strategy as large national and international distributors typically require a university or independently conducted studies before considering a new product for inclusion in their catalogs. Such studies also support our go-to-market strategy by attracting endorsements from key opinion leaders and increasing our chances of being invited to present at animal health conferences and trade shows. Now with that, I'd like to turn the call over to John Lai.