Petvivo Holdings Inc

Hi, everyone. We'll give everyone about 30 seconds just to join the call. Good afternoon, everyone. Thank you for joining us today to discuss our results for our third quarter and first nine months of fiscal 2026, ended December 31st, 2025. Hosting our call today is our Chief Executive Officer, John Lai, and our Chief Financial Officer, Gary Lowenthal, as well as 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 will provide some important cautions regarding the forward-looking statements made during the call. Before we begin, I'd like to remind everyone that the call is being recorded in order to make it available for replay later today. The replay link will be available in our investor relations section at our website at petvivo.com. Now turning to our results. Our third fiscal quarter represented another period of rapid transformation and platform advancement as we continued to intensify our focus and apply our limited resources on the greatest opportunities ahead of us. Many of these new opportunities were introduced over the course of the past year, therefore requiring extraordinary attention and focus to ensure their successful launch. Our primary objective has always been to create for our stakeholders the greatest opportunities for rapid growth and market expansion, including strong reoccurring revenues, and to support the highest potential value for our company for the benefit of our stakeholders. The clinical validation and broad market adoption of our flagship product, Spring, with osteocushion technology, has brought us far along. And now, over the course of the last year, it has set the stage for the launch of technology and products that promise to exceed even Spring's greatest potential. Toward this goal, we have made tremendous progress with new strategic alliances and collaborations with several key partners. This includes Digitalandia, a leading pioneer in agentic AI solutions. As you know, we signed an exclusive 10-year white-label licensing agreement with Digitalandia for its breakthrough next-generation agentic pet AI technology. Agenec Pets highly valuable and innovative technology features 10 specialized diagnostic AI agents that are protected by proprietary IP and five patent pending innovations. Among this technology's many capabilities, the solution addresses the critical challenges facing today's veterinary industry. This includes skyrocketing client acquisition costs and the difficulty in capturing the fastest growing demographic of Gen Z pet parents. Following the signing with Digitallandia, we are moving quickly to publicly launch our new Petvivo AI veterinary practice platform that is exclusively powered by this agenic pet AI technology. Petvivo AI is a new AI powered software as a service platform for veterinarians, which we believe is the first of its kind on the market, providing us what we believe to be a strong first mover advantage. We engaged an initial select group of veterinarians practices under a beta stage program for Petvivo AI, who have been providing us tremendous positive feedback. Petvivo AI has demonstrated in this beta testing to deliver a remarkable 50 to 90% reduction in veterinary customer acquisition costs, lowering it to from about 80 to 400 typically spent per new customer targets down to less than $43 per target customer. Petvivo AI then employs automated AI-powered engagement that intelligently converts the leads it generates into paying veterinary customers. This AI-powered solution greatly complements our existing medical device offerings, which we market to our existing network of thousands of veterinary clinics across North America and Europe. Perhaps most importantly, Petvivo AI has created a new recurring revenue stream, which has high 80% to 90% gross margins, combined with low capex scalability. Interested veterinarians are able to request a free demo of this amazing solution on our newly launched Petvivo AI website, where they can experience for themselves the power of this new platform that can transform their practice. In support of the launch of Petvivo AI during the quarter, Digitalandia published a comprehensive technical white paper documenting the Agenic Pet AI framework that powers this technology. The paper validates the technical foundation underlying our new B2B platform. It provides veterinary professionals, investors, and industry stakeholders with detailed visibility into the multi-agent artificial intelligence architecture that enables transformative clinical and economic benefits for their practice. Given the strength of this report, we expect our pet vivo AI solution to rival mainstream AI applications in terms of adoption rates. We also expect it to create tremendous visibility for our brands, particularly spring with Osseocushion technology and Precise PRP, and eventually the other new solutions in our product pipeline. The white paper is available to download from Digitallandia's website at digitallandia.com. For our part, during the quarter, we launched an online video explainer that walks you through the two-part ecosystem of PetVivo AI. It shows how PetVivo AI intelligently connects pet parents with veterinary practices looking for new clients. The professionally produced video explains all 10 specialized AI agents from behavioral scientists to radiologists and demonstrates the complete user journey for both pet parents and vets. If you haven't yet watched it, we very much encourage you to do so, as then you will understand why we are so excited about this new offering. Regarding other key new partners during the quarter, we joined forces with Austin, Texas-based Veterinary Growth Partners. As a management services organization, VGP supports veterinary practices with management and marketing tools, consulting, and vendor relationships designed to improve their efficiency and profitability. VGP has committed to actively promote our spring with osteo cushion technology and precise PRP products to its expansive member network of more than 7,300 veterinary clinic members across the United States. Product training of these veterinarians in their network is currently underway. And we're planning to introduce our new Petvivo AI practice management platform to VGPs clinic membership following this training period for spring and precise PRP. Also during the quarter, we substantially completed stage B of our strategic partnership with Piezo Biomembrane, a spinoff from the University of Connecticut, who offers advanced biocompatible piezoelectric materials for implantable and regenerative applications. This important partnership with PBM is furthering the R&D of revolutionary functional biomaterials that can promote regeneration, restoration, and or remodeling of damaged or injured tissue and bone in animals, as well as in humans. Stage A of the three-stage R&D project successfully determined that materials of our respective products can be combined into a single offering and demonstrated its piezoelectric activity, which can potentially provide therapeutic benefits to animals and humans. Stage B has now determined that the combined product can be mass produced at scale and with preliminary indication for safety and administration in animals. Stage C, which is expected to begin in the second quarter of 2026, is anticipated to demonstrate definitive safety and efficacy of this functional biomaterial in animals. Upon successful completion of stage C, we are also planning to initiate the process for FDA clearance for human applications. We anticipate that these products, these new functional biomaterials, may be available for commercialization by the end of this year, 2026, or the beginning of next year, 2027. We have also continued to advance the commercial launch of Precise PRP, a proprietary and revolutionary allogenic platelet-rich plasma product. PRP, regenerative product for horses and dogs that highly complements our spring product offering. Sold under an exclusive licensing and supply agreement with our strategic partner, VetStem, this product has been receiving favorable reports from veterinarians, especially regarding its ease of use. Part of our commercialization efforts have been to exhibit and research-backed benefits of Precise PRP along with SPRING at various major industry conferences. This includes the American Association of Equine Practitioners Conference held in December that was attended by leading veterinarian sports medicine and rehabilitation experts. Such events helped drive the greater adoption of spring and precise PRP by expanding awareness among key decision makers of its effectiveness in the management of osteoarthritis in animals. We also continued to advance our strategic collaboration with Commonwealth Markets, the syndicated ownership group behind the 2023 Kentucky Derby winner. Commonwealth now integrated spring and precise PRP into the care protocols of its top tiered thoroughbred stables. These two products are now being used as a management solution to promote joint health, extend performance longevity, and support recovery in high impact training and racing environments. This adoption by Commonwealth represents a tremendous validation of the effectiveness of spring and precise PRP, which we believe will open the door to greater opportunities. During the quarter, we also further developed our entrance of the European marketplace after our engagement of Nupcel Group in the previous quarter. For those unfamiliar with Nupcel, Noopsila is a leading UK-based veterinary group that operates as both a veterinary wholesaler and referral provider. Their specialization is musculoskeletal health, orthobiologics, and regenerative medicine for companion animals and horses. Noopsila has begun to inventory, market, and offer spring throughout the UK. An initial order has already been shipped and the official education and training of Noopsil and Salesforce is scheduled to begin before the end of this current calendar quarter. This new international engagement follows our previously announced first entrance into the international market with the signing of Especialidades to distribute products in the Mexico marketplace. We see Mexico as a very attractive market for animal health solutions, especially since the country's veterinary health care market is projected to grow at a compounded annual growth rate or CAGR of 11% and reach more than 2.4 billion within the next several years. Personal horse ownership is deeply intertwined with Mexican culture and tradition, which also makes Mexican marketplace an exceptionally ideal one. The European animal health market is also a large opportunity, estimated at more than 16.6 billion today. This market is projected to more than double to 34.8 billion by 2033, growing at a CAGR of 8.6%, which is remarkable for an already large market. On the R&D front, we completed the accumulation of data from the earlier announced canine elbow pilot study conducted by Orthobiologic Innovations, a leader in R&D for regenerative and sports medicine. The study was led by two prominent veterinarians, Sherman and Deborah Knapp. They are currently working in cooperation with our technical service veterinarians to incorporate the results into a white paper in preparation for submission to industry journals for potential publication. In terms of enhancing our corporate governance during the quarter, we were excited to announce the appointment of Josh Rubin to our board of directors. He has brought to us a wealth of experience in healthcare and life sciences, finance, capital markets, and corporate strategy, along with a proven track record in the execution of multimillion dollar M&A and capital transactions. Josh currently serves as a managing director of life sciences at Trinity Capital, which is focused on venture lending to healthcare companies. He previously served in financial director roles with RBC Capital Markets and Wells Fargo Securities. We expect Josh's deep understanding of the life sciences industry and strategic insights into growth stage companies like Pet Vivo to prove invaluable as we continue to expand our market presence. Now, before we get into more of the other exciting recent developments and our outlook for the rest of the year, I would like to turn the call over to our CFO, Gary Lowenthal, who will take us through the financial details for the quarter. Gary?

Thank you, John. Good afternoon, everyone. Thank you for joining us today to discuss our results for the first nine months of fiscal year 2026. For this reporting period, we'd like to focus on the results for the nine-month period as a better reflection of our progress, particularly given the change in sales mix during the period resulting from new product introductions. Revenues for the nine months ended December 31st, 2025, totaled $887,000, decreasing only 2% from the same year ago, period. Revenues for a period consisted of sales of our spring products, totaling $400,800, and precise PRP products totaling $486,000. This compares to the same year ago period where sales consisted entirely of spring. The slight decrease in our revenues for the period was primarily due to a decrease in spring product sales, offset by increase in sales of precise PRP. In the year-ago period, we had a special promotion with our distributors and vet clinics at the annual American Association of Practitioners Conference held in December. In the fiscal third quarter, that was not repeated in the fiscal third quarter of 2026, I just added in December. This contributed to the lower sales of spring in this most recent period. Going forward, though, we plan to re-implement special promotions to incentivize our distributors and veterinary clinics, whereby improving sales of our spring product. We believe the decrease in spring sales was also due to customers opting to use Precise PRP alone in that conjunction with spring. However, we believe the best outcomes would be created by using these two products together. We believe renewed efforts to better educate our customers on the benefits of using both products together will help drive greater sales of Spring in the future quarters. Gross profit in the first nine months totaled $551,500, or 62.2% of revenues, which was a decrease of 812,089% of revenues in the same period a year ago, due to the lower gross margins of the Precise PRP product line. We were able to maintain our high gross margin despite increased purchases of lower margin Precise PRP finished goods associated with exclusive license agreement with VETSTEM Incorporated and the consequent greater proportion of this lower margin product in our sales mix. We are exploring ways to improve our gross margin with the Precise PRP product as well as improve our product mix to include our higher spring gross margin. Total operating expenses decreased 2% to $6.7 million compared to the same year-ago period. The improvement was due to reduced general administrative costs and research and development costs, with this reflecting the strategic cost reduction and restructuring program we implemented last year. Likewise, operating loss increased 2% to $6.1 million from $6 million in the same year ago, same period. The increase was primarily due to the increase in sales and marketing expenses related to the rollout of our new Precise PRP product line, which has been well received by veterinarians in our network. Net loss in the first nine months was $7.5 million, or $0.27 per share as compared to a net loss of $6 million, or $0.30 a share, for the same year-ago period. The increase in net loss was primarily due to unrealized loss on change in derivative liabilities, loss on disposal of certain assets, amortization of debt discount, and interest expense on our convertible notes. Net cash used in operating activities during the nine months totaled $5.3 million. This cash used in operating activities were primarily attributed to our decrease of accounts payables and accrued expenses of $840,000. And the increase in precise PRP production and inventory purchases as we ramped up the market demand for this new product line. Now let's turn to the balance sheet. Our current assets totaled 1.4 million at the end of the period ended December 31st, 25. In comparison, our current liabilities were significantly reduced to only $980,000 from the same period last year of $4.2 million. And as of December 31st, our working capital as of December 31st totaled $395,000. Subsequent to the end of the period, since January 1st of this year, we raised additional capital from exercise of warrants and the sale of equity securities, bringing in an additional $477,500 of additional proceeds. Also, notably, our total liability decreased to $1 million on December 31st, down from $5.1 million on just March 31st in this nine-month period. The substantial 81% decrease in total liabilities in just nine months was primarily due to the conversion of all convertible notes in a common stock, extinguishment of our derivative liabilities related to these convertible notes, as well as a major reduction in accounts payables due to settlement vendors and trade vendors, the reduction of accrued expenses, and the termination of a 10-year lease obligation. In fact, our accounts payable decreased 53% from $821,000 just March of this past year at the end of our fiscal year, last fiscal year, to less than $386,000 by the end of December. This highlights our strongest balance sheet in many years. Now, this completes our financial review for the period. John? Thank you, Gary.

As I mentioned earlier, the combination of spring with precise PRP has been receiving very favorable reports from veterinarians, especially regarding their ease of use and effectiveness in the management of osteoarthritis in horses and companion animals. Our successful results led to Health Canada recently acknowledging SPRING with Osseocushion Technology as a veterinary medical device for use in Canada. Canada has recognized how this veterinary and administered intraarticular injection device can support joint health and aid in the management of lameness and other joint-related afflictions in animals. This action represents a major milestone in our global commercialization strategy as the first such recognition by an international regulatory body. As such, it has opened up a large new international market opportunity. The Canadian animal healthcare market is reportedly growing at 6.8% CAGR to exceed 4.4 billion by 2031. The official acknowledgement by Health Canada paves the way for commercial launch in the country. Preparations are underway and we're currently planning for the official launch at the beginning of the third calendar quarter of 2026. Meanwhile, we will continue to expand the awareness of the benefits of both of these innovative products among key decision leaders, including presenting them at a number of major conferences. As previously mentioned, we exhibited at the American Association of Equine Practitioners Conference in December. Then, just last week, we exhibited at the Florida Veterinary Medical Association Ocala Equine Conference held at the World Equestrian Center in Ocala, Florida. And currently, we are exhibiting at the Western Veterinary Conference in Las Vegas, Nevada. At these events, we demonstrated the research-backed benefits of spring and precise PRP to veterinarians, including leading surgeons, sports medicine, and rehabilitation experts in the veterinary industry. We are planning to exhibit at two more major conferences this spring, which are typically significant drivers of product adoption and new sales. The conferences also present the opportunity to share recent studies like our canine elbow study, as well as other completed and well-published studies that we have done. We currently have additional canine and equine studies for tolerance and efficacy of spring and precise PRP in the initial stages of development. We also continue to advance our pipeline of new products. This includes new functional biomaterial and bone-mimicking biomaterials that may be used to enhance the delivery of pharmacological agents and or promote the regeneration, restoration, and or remodeling of damaged or injured tissue and bone in animals and humans. I want to reemphasize another exciting event that occurred in the current quarter, that being Digitalandia's launch of their public access beta to its B2C agentic pet solutions for pet owners. The launch includes access to all of its 10 specialized AI agents, veterinarian, behavioral scientists, nutritionists, geneticists, vaccination specialists, trainer, blood analysis, radiologists, urinalysis, and fecal analysis. The launch targets Gen Z pet owners who represent 20% of US pet households and where pet ownership is growing at more than 43% annually. The B2B agenic pet has the capability to intake animal medical data, such as physician medical records, medical imaging, and lab results, and then assist veterinarians in diagnosing afflictions and diseases, and then suggest treatment options. Given how a genetic pet accomplishes this with an amazing 97% accuracy, this technology represents a paradigm shift in how we address the physical health of companion animals. Digitallandia recently reported that the launch of the B2C agentic pet crushed expectations with the onboarding of 1,000 active beta users in less than 72 hours. They believe this rapid onboarding validates the massive pent-up demand for AI-driven preventive pet healthcare. The fast adoption confirms the market thesis that pet owners are desperately seeking proactive solutions that catch health issues before symptoms emerge. rather than relying upon outdated reactive care models. The success of the beta program also strengthens the value proposition of the B2B Pet Vivo AI solution for thousands of veterinarian clinics in the Pet Vivo nationwide network. Altogether, our technologies have created an exciting future for Pet Vivo that is transformative to not only the veterinarians and the patients they serve, but potentially for humans as well. Looking ahead, we expect to see continued sales momentum and market penetration for the duration of fiscal 2026 and beyond. In fact, We have never been in a better position to accelerate our growth and expand across high growth US and international markets. The US animal health market alone is expected to double to 11.3 billion by 2030. Such massive growth is rare for such an already large industry and provides a strong tailwinds. To better tap the market opportunity, we are advanced discussions with an outside sales and marketing firm that specializes in our industry brings our experienced sales team an established distribution network. They would complement our own in-house sales team. We hope to provide additional details on this soon. As we continue to grow and expand over the coming quarters, we will remain committed to advancing the best in pet health solutions and ensure our products reach more veterinary professionals, and pet owners, with our success in these efforts driving greater value for our stakeholders. Now we would like to turn the call over to our CEO, John Lai, to provide some insights into some of the recent developments and answer any questions from our listeners. John?