Petvivo Holdings Inc

Good afternoon, everyone. Thank you for joining us today to discuss Petvivo's results for our fiscal year 2025, which ended on March 31st, 2025. Hosting the call today is our Chief Executive Officer, John Lai, our Chief Financial Officer, Gary Lowenthal, our Commercial and Operations Advisor, Mike Eldred, 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, with the recording made available for replay per the instructions in today's press release, which is available in the Investor Relations section of our website. I should also note that we filed for an extension today for our Form 10-K filing. in order to allow our auditors to complete their audit for the fiscal year. Therefore, all financial results presented during today's call are unaudited preliminary estimates and are subject to change until our Form 10-K is filed. Now turning to our results for fiscal 2025. It was a strong and very productive year for Pet Vivo as we continue to expand the use of our lead animal osteoarthritis veterinary medical device, String, with osteo-fishing technology. We also strengthened our platform with the additions of technologies from new major partnerships we formed during the year. Innovative technologies involving diagnostics and medical treatments that we expect to be transformative for both our platform and the veterinarians we serve. Since the market introduction of spring in the fall of 2021, this product has now been used by more than 1,000 veterinary clinics across all 50 states. And now with the recent addition of our first distributor in Mexico, we can include a number of new international clinics in that country. We see Mexico as a very attractive market for us. With the veterinary healthcare market, they are projected to grow at 6% CAGR and reach nearly $2 billion by 2024. I'm sorry, 2026. This includes a particularly strong equine market with horse ownership deeply intertwined with Mexican culture and tradition. Our North American expansion, particularly with our distribution network, helped drive a 17% increase in revenues in fiscal 2025 to a record $1.1 million. Our expanded nationwide distributed network contributed sales of $958,000, or 86% of this total. These results reflect the success of our marketing and sales efforts, which still have a strong focus in the equine market, but with an increased effort to expand into the much larger and faster growing companion animal market. This greater expansion into the companion animal market, such as for dogs and cats, involved a full realignment and expansion of our sales force during this year. This has resulted in an increased portion of our overall revenues generated for the companion animal market while maintaining a steady gain in the equine market. Meanwhile, we've been able to maintain a favorable high gross margins at 87.8%. To support and further drive this growth, during the year we deployed several new highly experienced territory managers nationwide, as well as added professional sales representatives and technical service veterinarians to support them. These new internal sales reps and technical service veterinarians are also supporting our in-house direct sales and marketing teams as they further develop relationships with the nation's leading veterinary clinics, veterinary corporate entities, consolidators, and distributors. Also during the year, we strengthened our board and leadership team with the appointment of Mike Eldred to our board of directors and then with his appointment as a commercialization and operations advisor. In this position, he has been championing our refocus operations and commercialization efforts. Mike has brought to us more than 30 years of executive experience in animal health and the veterinary industry. Most notably, he built Dr. Pharmaceuticals, North American subsidiary, into one of the fastest-growing companies in the industry, with more than 250 employees and annual revenue exceeding $450 million. His experience and strong record of achievement in pharmaceutical and animal health provides us a tremendously valuable resource for achieving our business goals. Now, before we get into some of the other exciting developments and our outlook for the new fiscal year, I would like to turn the call over to our CFO, Gary Lowenthal, to take us through more of the financial details for fiscal 2025.

Gary? Thanks, John. Good afternoon, everyone. Thank you for joining us today to discuss our preliminary unaudited results for a fiscal year ended March 31, 2025. As John mentioned, we filed for an extension today for our Form 10-K filing in order to allow our auditor to complete their audit for the fiscal year, particularly to complete the review of accounting for derivatives. The following financial results are unaudited preliminary estimates and are subject to change until we file our Form 10-K with the SEC in the next week or so. We expect to report revenue growth of 17% growth for the fiscal year, totaling a record of $1.1 million. This growth was largely driven by our expanding nationwide distributor network, with their combined sales increasing 31% to $958,000 and representing 85% of our total revenues for the year. Gross profit totaled $995,000 or 87.8% of revenues in fiscal 25. This represents an increase of 15% compared to $867,000 or 89.5% of revenues in fiscal 24. Our operating expenses decreased 21% to $9.1 million compared to $11.5 million in fiscal year 24. The substantial reduction in expenses both due to our strategic company-wide cost reduction and restructuring program that was implemented during the year. We decreased our general administrative expenses by 28% and sales and marketing expenses by 23%, while creating more efficient and effective operations. These decreases were partially offset by an increase in research and development of 13% to support new clinical trials that demonstrate the benefit and effectiveness of SPRING. Net loss totaled $8 million or $0.39 per share in basic and diluted per share, which was an improvement of 27% from a net loss of $11 million or $0.78 per basic and diluted share in fiscal 24th. The net cash we used in operating activities decreased by 40%, or $2.9 million savings compared to fiscal 2024. This was, again, primarily due to the strategic company-wide cost reduction and restructuring program implemented in fiscal 2025. Now turning to our preliminary unaudited balance sheet. Cash and cash equivalents totaled $227,689 at March 31, 25 compared to $87,403 at March 31, 24. The increase was primarily due to the proceeds from equity finances we conducted during the year. Our total assets increased to $9.3 million at March 31, 25 compared to only $3.1 million at March 31, 24. Subsequent to the fiscal year end, beginning April 1st of this year, we raised net proceeds of $4.7 million to support our growth strategies for fiscal 26. The funding was a result of a successful offering of a $5 million in Series B convertible for stock, which was fully funded in multiple tranches, which we announced as closed on June 24, 2025. The proceeds have been earmarked to support the further commercialization and market penetration of our lead animal health products. As a result of the financing, our cash and cash equivalents in the bank today is approximately $3.3 million. This completes our preliminary financial summary for the year. John? Thank you, Gary.

Our overall strategy to drive the greater adoption of spring and more recently precise PRP has been to expand the awareness of the effectiveness and benefits of both these innovative products among key decision makers and to do this at an increasingly greater scale. Toward this end, during the year, we exhibited at several major veterinary conferences across the country, seven in total, as well as participated in several smaller veterinarian specialty events. These events have presented valuable opportunities to demonstrate the advantages of spring and precise PRP to key decision makers and show firsthand the beneficial results from administering spring and or precise PRP to horses and companion animals. with this provided by both many anecdotal reports of the benefits of spring and precise PRP, as well as by the numerous clinical studies of spring published by leading independent investigators. From these events, we have also gained a better understanding of our target market and the types of veterinarians we should be more focused on. This includes vets who specialize in sports medicine, rehabilitation, pain management, as well as surgery. Such specialties in the veterinary medical field have increased in recent years, primarily due to the many advancements made in veterinary science, the growing population of pet owners, and their desire for specialized care. This trend is being driven by other factors, such as the aging pet population, more owners treating their pets like family, and the greater availability of advanced diagnostics and treatment options. The increasing use of patent insurance is also helping to make such treatments more accessible and affordable. All these trends bode very well for the greater adoption of Spring and Precise PRP, as well as the other new products offerings we intend to add to our platform. Also during the year, we continue to accumulate impressive data from a new canine elbow study being conducted by Orthobiologic Innovations, a leader in R&D and regenerative and sports medicine. The case study is being led by two prominent veterinarians, Sherman and Debra Knapp, and we expect it to be completed before the end of the calendar year. Studies like this canine elbow study, as well as other published studies related to the management of stifled cranial cruciate ligament disease and hip osteoarthritis, continue to play a crucial role in our sales and distribution strategy. This is because veterinarians, as well as large national and international distributors, generally desire university or independently conducted research before adding a product like ours to their treatment regiments or distribution catalog. Our internal sales team and outside distributors have been leveraging these published studies in their commercialization programs for spring, and additional studies will further support the promotional efforts and veterinarian training for spring. We should also note that our market awareness of spring has been greatly elevated with our advisory board member, Tracy Turner, being inaugurated as president of the American Association of Equine Practitioners at their annual conference last year. Tracely is widely recognized for his pioneering use of thermography as a diagnostic aid in horse lameness evaluation and its beneficial use in horse welfare regulation. He has published many noted studies and has lectured nationally and internationally on these topics. Finally, I want to inform you that in March of this year, we entered into what we see as a groundbreaking, if not transformative, strategic alliance with Digitallandia, a pioneer in agentic AI solutions. Our collaboration with Digitallandia centers on their pet AI, a revolutionary technology that deciphers animal behavior and communication through real-time analysis of vocalizations, body language, and physiological signals captured via smartphone cameras with an amazing 97% accuracy. Digitallandia's agentic AI represents a paradigm shift in how we understand our pets. By aligning our clinically proven therapies with this technology, we have uniquely positioned Pet Vivo at the intersection of AI innovation and veterinary care. We anticipate Pet AI will rival mainstream AI applications in adoption rates, creating unparalleled visibility for our brands, including spring and precise PRP. This technology is currently being integrated with our veterinary products as a first-of-kind global pet care ecosystem. With initial beta testing now underway, we're looking forward to announcing some amazing results. Now I'll provide a financial and operational overlook. Altogether, the cross-pollination of these technologies is creating an exciting new future for PetVivo. One that is transformative for not only Cadevo, but also for veterinarians and the precious patients they serve. As a result of these many inroads, we have made a crux. We have made at conferences over the past year, combined with our expanded sales force and distributor network and more efficient operational structures, we expect to continue to see strong sales momentum and market penetration in fiscal 2026. In fact, we have never been in a greater position to accelerate our growth and expand into our high growth markets over the coming year and beyond. The U.S. animal health market is projected to double to $11.3 billion by 2030. Such massive growth is rare for such an already large industry, and it provides us tremendous tailwinds. As we continue to grow and expand, we will remain committed to advancing the best in pet health solutions and ensuring that our products reach more veterinary professionals and pet owners. For fiscal 2026, we look forward to building upon the many advancements we made over the last year and driving greater value for our stakeholders. Now to talk about some of the other exciting developments over this past year, and more recently, I would like to turn the call over to our commercial and operations advisor, Mike Eldred. Mike?