Petvivo Holdings Inc

Let's begin. Good afternoon, everyone. Thank you for joining us today to discuss PetVivo's results for its fiscal second quarter ended September 30th, 2024. Hosting the call today is our Chief Executive Officer John Lai, our Chief Financial Officer Gary Lowenthal, and myself, John Dolan, PetVivo's Chief Business Development Officer and General Counsel. Following our remarks, we'll open the call to your questions. Then before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made 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 that is available in the investor relations section of our website. Before we provide the financial details for the I would like to first provide an introductory overview and a few highlights for those new to PetVivo who have joined us today. In our fiscal second quarter of 2025, we achieved strong financial and operational progress on a number of fronts as we continue to advance the rollout of our flagship product that promotes the restoration of proper joint mechanics, Spring, with osteocushing technology. This injectable intraarticular veterinary device is composed of patented biocompatible microparticles derived from natural resources. The novel technology is a real result of years of R&D and independent 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. Afflictions that affect millions of pets and horses worldwide. More than 80% of dogs and cats and more than half of all horses experience this at some time during their lifetime. Spring's porous and spongy microparticles are specially designed to absorb and release synovial fluid in the joint in response to mechanical forces. In this way, they mimic the physical properties of natural cartilage. Most importantly, Spring has been clinically shown to go beyond the simple masking of symptoms to address the common root cause of lameness, which is missing or damaged cartilage. As the word continues to spread amongst veterinary practices and from our presentations at leading veterinary conferences about these breakthrough medical benefits, we are seeing increased demand from our distribution network. In fact, our sequential revenue growth of 62% in the second fiscal quarter was driven largely by substantial increases in distributor sales, which are up 147% or $101,000. Sequentially, and up to 24% or $33,000 over the past year, and these numbers continue to Meanwhile, we've been able to maintain our very favorable high gross margins of 89.5%. Earlier this year, our distribution of Spring surpassed the major milestone of more than 800 clinics across all 50 states. This has led to now more than 10,000 dogs, cats, and horses that have experienced the benefits of Spring nationwide. To further accelerate our growth, since the beginning of last quarter, we have added highly experienced sales and marketing personnel to support our growing distribution relationship with market leaders, including MWI and Covetris. They will also support our direct sales and marketing to leading veterinary clinics nationwide. Now, before we get some more exciting developments and our outlook for the rest of the year, including comments from our chief executive officer, John Lai, I would like to turn the call over to our CFO, Gary Lowenthal, to take us through our financial results for the quarter. Gary?

Thanks, John, and good afternoon, everyone. Thank you for joining us today. As John mentioned, we saw sequential revenue growth of 62%, which was largely driven by a substantial increase in our distributor sales, which were made up of 147% or $101,000 sequentially, and up to 24% or $33,000 versus the same year-ago quarter. Our revenues in the fiscal second quarter compared to the same year-ago quarter decreased 3% to $201,000. The decrease was largely due to the decreased direct sales to veterinary clinics, which was partially offset by the increased sales via distributors. The distributor sales growth reflects how we have greatly expanded our distributor channel and how we have continued to lay the foundation for the greater adoption of our spring season. Given the many operational changes and new marketing and sales staff onboarding processes during the quarter, we were pleased to keep revenue fairly even for the quarter versus the year-ago. We expect future quarters to be much stronger versus prior periods now with these expanded new teams in place. Now, for our gross profit in the second quarter, the totaled $180,000 or .5% of our revenues as compared to $186,000 or the same .5% of revenues in fiscal second quarter 2024. Operating expenses totaled $2.4 million, decreasing 25% from the same fiscal quarter of 2024. This extraordinary expense reduction was due to our strategic company-wide reduction and restructuring program that decreased general administrative expenses by $425,000 versus the same year-ago quarter. It also reduced sales and market expenses by $458,000 compared to the year-ago quarter. These decreases were partially offset by an increase in research and development of $106,000 due to additional clinical trials that will help support our future sales. Our net loss improved to $2.2 million or $0.11 a loss per share, basic undiluted share, from a net loss of $3.7 million or $0.28 a share per basic undiluted share in the same year or quarter ago. The large expense reduction was due to a strategic corporate restructuring and a company-wide class reduction program implemented in the first and second fiscal quarters of the year, continuing throughout the year. Operating expenses decreased by $1.6 million, or 27%, compared to the fiscal half of 2024. The expense reduction was due to a strategic company-wide class reduction and restructuring program. We decreased G&A costs by $954,000 and sales and marketing we reduced by $866,000 versus the same year-ago quarter. The decreases were partially offset by an increase in research and development of $200,000 due to additional clinical trials. Now turning to the balance sheet and cash flow statement. Cash and cash equivalents totaled $126,000 at the end of September 30, 2024. Subsequent to the second quarter end, starting October 1st, the company raised additional net proceeds of $312,500, which helps keep us in a good position to execute our growth plan over the next several months. Net cash use and operating activities decreased 34%, or $800,000 for the quarter, compared to the same fiscal quarter of 2024, if we are more efficient with the use of our cash spending. This completes our financial summary for the quarter. I'd now like to turn call back over to our Chief Business Development Officer and General Counsel, John Dolan. John?

Thank you very much, Gary. An important part of our strategy for increasing the adoption of spring is to create greater awareness of its benefits and effectiveness among key decision-makers and on scale. Toward this end, we participated in three major veterinary conferences in the past quarter, as well as in a number of smaller conferences. In October, we exhibited at the ACBS Summit and the American College of Veterinary Surgery Summit, where we demonstrated spring to leading veterinarian surgeons. Both events were a great opportunity to demonstrate the advantages of spring, including the beneficial results we have seen when administered to horses and companion animals throughout the U.S. We also presented spring to leading veterinary pain management experts at the International Veterinary Academy of Pain Management, Pain Management Forum. Our veterinary medical advisor, Marie Bartling, spoke on the topic entitled, How do we elevate our strategy for managing osteoarthritis in pets, which was very well received. Also, during the second quarter, we teamed up with Orthobiologic Innovations, a leader in R&D for regenerative and sports medicine. Together, we are pursuing new clinical trials for spring, as well as product development and marketing. One trial that we did begin with them at this point is an elbow study treating dogs with osteoarthritis in the elbow. We anticipate that that study will be completed in either Q1 or Q2 of calendar year 2025. Studies such as these have been essential to our distribution strategy. This is because the large national and international distributors typically require university or independently conducted studies before considering a new product for inclusion in their catalogs. Some have begun to do this already, and the additional studies will help with their veterinary and training courses for spring. Now I would like to turn the call back over to our CFO, Gary Lowenthal.