PetVivo - Q2 2023

Transcript

John Dolan (Chief Business Development Officer and General Counsel)

All right, let's begin the conference. Greetings and welcome to the PetVivo Holdings second quarter fiscal year 2023 financial results conference call. I am John Dolan, the Chief Business Development Officer and General Counsel at PetVivo. Today's call is being webcast and will be posted on the company's website for playback. Before we begin, I would like to remind everyone that comments made during this conference call by PetVivo's executives may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risk and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. PetVivo's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings.

PetVivo assumes no obligation to update any such forward-looking statements. PetVivo filed its earnings release and Form 10-Q with the SEC today, which provide a detailed discussion of our financial results. These documents can be found in the SEC website and the investor relations section of our website. I would like to now turn the conference over to John Lai, the CEO and President of PetVivo. Please go ahead, John.

John Lai (CEO and President)

Thank you, John, and welcome. Joining me today is Bob Folkes, our Chief Financial Officer. I would like to begin with discussing some highlights from last quarter, and then Bob Folkes will discuss the financial results and conditions in greater detail. I will conclude by sharing some of the additional thoughts of our business strategy as key focus areas for fiscal 2023 before we open the line up for questions. Our key highlights for the second quarter for fiscal 2023 were reported revenues of $223,280 as compared to $4,977 in the second quarter of fiscal year 2022. Revenues for the second quarter included net revenues of $118,264 for shipments of Spryng to MWI, a subsidiary of AmerisourceBergen. MWI being a wholly owned...

Our lead distributor of animal health products pursuant to the distribution and sales agreement with MWI dated June 17th, 2022. We expanded our national presence and have opened accounts with veterinary clinics in 47 states now. We've also added a 3 ml syringe as a new SKU. We are very pleased with the launch of Spryng with MWI. We have started training their sales team of over 400 territorial managers and are happy with the sell-through of Spryng product into the market to the veterinary doctors. We will be attending the American Association of Equine Practitioners annual conference in November 2022, and we'll be coordinating sales efforts with MWI at this important meeting. This is the largest conference for veterinary equine practitioners.

I would like to now turn the call over to Bob Folkes, our Chief Financial Officer, who will discuss our financial condition.

Bob Folkes (CFO)

Thank you, John, and good afternoon, everyone. As John mentioned, the most significant event for the quarter was the total revenue of approximately $223,000, highlighted by the net revenue of $118,000 to MWI. At September 30th, 2022, the company had $2.3 million in cash and working capital of $2.1 million. During the quarter, we increased our inventory to $305,000 in order to support our expected revenue growth for this current fiscal year. We continue to use the net proceeds from our initial public offering to expand our sales and marketing efforts and invest in clinical studies in order to gain vet acceptance and increase revenues from the sale of Spryng. Now I will turn the call back over to John Lai.

John Lai (CEO and President)

Thank you, Bob. I would like to talk more about the business strategy and key focus areas for fiscal 2023. We're in the process of generating a whole series of clinical evidence to support the equine and small animal market with MWI. John Dolan will go into detail, a little more detail about these studies. We hired sales territorial managers to support the relationship with MWI and will be adding more as the year goes on. We're also exhibiting at multiple conferences to promote awareness of Spryng. We're also presenting at multiple conferences where Dr. Joe Manning and Dr. Ann will be discussing the applications of Spryng. Also within our Spryng Health website, we have a whole series of supporting videos to show various injections or the most common injections as an educational.

We're building this whole system of education to support MWI, and this will be very crucial as we move forward into getting the product out into the market, and we are once again getting really good traction in the marketplace. Now I would like to turn the call over to John Dolan to provide an update of our clinical trials, which will be helpful in supporting our relationship with MWI. In addition, we expect that having more clinical data about the efficacy of Spryng will help us gain more acceptance from the veterinary doctors. I would like to turn it over to John Dolan.

John Dolan (Chief Business Development Officer and General Counsel)

Thank you, John. As John mentioned, clinical trials are an incredibly important thing to our company. We have entered into a clinical trial services agreement with Colorado State University on November 5th, 2020, in which we are evaluating the injection of Spryng on elbow-associated osteoarthritis in dogs. Unfortunately, because of COVID, there were some delays with this trial. We expect the study to be fully enrolled by the end of December 2022, and the data available in the fourth quarter of fiscal year ending March 31st, 2024. Additionally, we entered into a canine clinical study with Ethos Veterinary Health in May 2022. This is a pilot study in which we are evaluating intra-articular injection of Spryng in dogs with stifle disease for initial product tolerance and efficacy.

We expect the data for the first cohort of dogs to be available in or before March 2023. Also, in October 2022, we completed enrollment in a canine tolerance study in which we are evaluating the intra-articular injection of Spryng in dogs for product safety. We expect to have this data available in the fourth quarter of fiscal year ending March 31st, 2023. Finally, in October 2023, we initiated a feline tolerance study in which we are evaluating intra-articular injection of Spryng in cats for product safety. We expect to have this data available in or before June 2024. We expect to conduct additional clinical studies in order to support our relationship with MWI and gain vet acceptance of Spryng. Now I'd like to turn it back over to John Lai.

John Lai (CEO and President)

Thank you, John. I would like to open it up now for questions. John Dolan, can you explain to people how to ask questions, please?

John Dolan (Chief Business Development Officer and General Counsel)

Yes. If anyone has a question and they are dialing in by telephone, they can raise their hand by pressing star nine. Now, if they're online and would like to be allowed to talk, we can unmute them by pressing star six. On telephone, star nine, and if you're on your computer, please press star six.

Operator (participant)

My apologies. Just stepping in here, as the chair host. Star six is how the investors or attendees will unmute themselves once they're chosen for a question, and anybody on the computer should be able to press the Raise Hand icon to ask a question.

John Dolan (Chief Business Development Officer and General Counsel)

Oh, very good. Thank you.

Operator (participant)

Absolutely.

John Dolan (Chief Business Development Officer and General Counsel)

I am not seeing any questions. Does anyone have a question?

John Lai (CEO and President)

Well, John, if we're not seeing any questions, I'll just make a closing comment, and then we can end this call.

John Dolan (Chief Business Development Officer and General Counsel)

Very good.

John Lai (CEO and President)

Yep. The AAEP that's coming up, which is the American Association of Equine Practitioners, last year was a very big event for us. We gave it a whole series of vets that were trying our product, and we were able to get some good repeat orders. Excuse me. Some of these veterinary doctors. This year, you know, we expect it to be quite larger. It's a much bigger event, having it held in San Antonio, as well as having, if you saw our news release last Friday, I believe, or sometime this week, we talked about Dr. Joe Manning will be presenting some of the applications and successes that we have been seeing using the product in the equine space for multiple applications. We're pretty excited about that, working with MWI and then also at our Spryng Health website, Dr.

Turner gives a whole series of videos that shows how to use the product and what applications. Then also we have a whole series of intra-articular injections for the small animal side within that website. That website is more designed towards the veterinary professional. That's some of the supporting data we talked about on the previous call or the previous quarter that we would be developing and would be very instrumental in helping MWI educate the vets as well as helping them secure orders on the various applications. The vet, you know, we got multiple catalysts coming.

We completed the Ethos study at the end of October, and given that it takes a while to get it published, we're looking at getting it published February, March of 2023, which is in time for the new season of the major trade shows and events that we can present a lot of this data at. That's the plan, and that should help us get the small animal adoption at a much faster rate. With that, and if there's no more questions, that will conclude our call.