Q4 2019 Earnings Call

Greetings and welcome to the miles runs technology.

Year end 2019 conference call and webcast.

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It's not my pleasure to introduce our hosts Joe and good for project manager. Please go ahead.

Thank you operator, thanks to all of you for joining us today and welcome to miles runs technology yearend 29, <unk> results conference call a webcast joining us on the call today as Josef Manolo, Chief Executive Officer, Joseph D. P H <unk> financial controller.

I would like to remind our listeners that any statements on this call that are not historical facts are forward looking statements.

Actual results may differ materially from those projected or implied in any forward looking statements such statements involve risks and uncertainties, including but not limited those relating to your product and customer demand market acceptance of our products the ability to create new products to research and development.

Yes, well results of strategic initiative.

The successful watch, where our products, including yield miles canine muscle formula milestones, Harold attrition formula and cure products.

Next up our research and development, including the clinical studies described above the results of the clinical evaluation afford a tropin and its effect the ability to entering a new partnerships opportunities and the success of our existing partnerships the ability to generate revenue and cash flow from sales of our products the ability to increase our revenue and gross brought.

EBIT margin the ability to achieve a sustainable profitable business, yeah effective economic condition, the ability to protect our intellectual property rights competition from other providers and products. The continued listing ever securities on the NASDAQ stock market risks in product development, our ability to raise capital to fund a genuine lot right.

Operation and other factors discussed from time to time in our filings with the Securities Exchange Commission, we undertake no obligation to update or revise any forward looking statements for events or circumstances, after that date, which Dave statement, which which such statement dismayed except as required by law.

Statements made on today's call have not been evaluated by the food and drug administration. Our products are not intended to diagnose tree fewer or prevent any disease.

I'd like to turn over the call to our first speaker Joseph D. P. Eight real to go over the financial results. Good morning show.

Good morning, Joanne. Thank you everybody for joining us our net revenues for the year ended December 31st 2019 increased 672000 2 million 32 487.

[laughter] compared to the part of your sales of 360.

This was primarily due to an increase in net revenues of 600004, yoked and miles cannot muscle formula products in 2019, and increasing our white label sells it to 21.

Offset by decrease in our old products a 149.

Cost of revenues for the year ended December 31st 2019 increased 149460% compared to cost of revenues for the year ended 2018, primarily due to an increase of 179 in manufacturing costs associated with making new products.

[noise] amongst the operating expenses sales marketing research expenses for the year ended December 31st 2019 increased 382000, more 43% compared to the prior year, primarily due to an increase in sales and marketing costs associated with the development and watch upon new product.

[noise] personnel and benefits expenses for the year ended December 31st when 19 increased 179000 or 10% compared to the prior year due to the hiring of additional sales staff.

And our Gi and they expenses for the year ended December 31st 2019 decreased 149000, or 8% compared to the year ended December 20, or 31st 20 team due to decrease in professional fees.

Our liquidity and capital resources as at December 31st 29 team. We had cash was 64000, an increase of 49 compared to prior year. This was primarily due to 2.4 million of net proceeds received from financing activities, which included proceeds of 1.8 million from the issuance of common stock.

211000 from a registered direct offering and 355000 from the draw down on our related party promissory note.

On March 15, 2020, the company closed a private placement with a group of accredited investors in the private placement. The company issued 1 billion 533058 shares of common stock to the investors, including for members of the company's board of directors.

An 825000 of the outstanding principal amount owed to promissory note issued to our Chief Executive officer, what's convert into 681818 shares of common stock.

I mean, and 851240 shares of common stock sold resulted in cash proceeds to the company of 1.030 million.

With that I'd like to turn call over to our Chief Executive Officer, Joe Me, though.

Good morning, everyone. Thank you Joe.

I hope everyone is safe and well during these very challenging times.

Oh I am sitting here.

Home, but my computer and tried to keep my two dogs from coming in embarking up this phone calls so again, I I hope, everyone as well and and safe.

Oh I wanted to go over some of the key highlights of 2019.

And why I feel these events have been transformational for my house.

One we had a successful study yet Kansas State University.

On 100 dogs, which is a pretty significant amount of subjects for a study.

These dogs.

On a fruit what is TPL low surgery similar to east C.L. surgery in humans.

ER and the results were very very positive for miles up with those results.

We.

Created miles canine muscle formula product and have made inroads into the vet community.

Having this site is unique in the pet world and we have specific science for our product we're not a commodity commodity remember we are the only ones with four to tropin.

We added events Drenth line also to give veterinarians an exclusive product.

We believe these the results of this study will soon be published in peer reviewed journal.

By the Oh, I've learned a in academia and with publishing it takes longer than you thought but.

We are.

We have a strong believes that this will happen soon hopefully within the next few weeks.

Number two we had a extremely successful study get you Cal Berkeley with Dr. William evidence in 60 to 75 year old men and women.

The people who took the individuals who took four to tropin at a 15% increase in muscle protein synthesis as Dr. Evans said it is rare for a nutrition product to show such efficacy he presented.

That those results.

Video conferencing.

At the Sarcopenia study going to lose France, a couple of weeks ago. A we now are using that video to help educate doctors et cetera on the benefits afforded tropin.

In all different age groups, but clearly to people who were 50 60 an older.

Oh. This is created an incredible opportunity in the anti aging longevity market a market of supposed to.

Supposedly will grow to about 270 billion over the next few years with that we launched physician muscle health formula.

And.

And in December.

The anti aging conference.

In Las Vegas.

With.

Anti aging doctors holistic doctors.

And are now how in the market with our Salesforce trying to get doctors to take the product and give it to their patients. We're excited about this.

Demographic for our product.

2020.

Let me move onto a 2020, we announced a partnership and distribution deal with T V. P International that we'll open the doors to over 10000 veterinarians in the U.S. and abroad [noise].

We think this distribution agreement is gonna be incredible for us they make braces. If you look at what kv P. does and those graces are used by dog owners and veterinarians to support dogs that have CCL tears or TPL low tears may.

Many of which who don't go for the surgery.

These braces can cause muscle atrophy.

And our product helps.

In just use muscle atrophy. So it is a great fit for their braces. So we are co marketing with in both the vet space in the direct to consumer space. This is just being launched as we announced in the press release, but I think it's an incredible opportunity.

We also announced an agreement a distribution agreement with you went up by.

One of the largest natural distributors in the country or that is supposed to get into our products have both miles canine muscle formula and our product up yoked hopefully we'll be in stores over the next couple of months, obviously with whats going.

Moving on in the World.

That could be delayed books were optimistic the fact that we were able to sign an agreement a distribution agreement with them.

As Joe spoke to we closed a 1.8 million financing in the private placement on March 15th.

And.

Now I think we have the company in that a great position to weather the storm that's going on right now.

Mendis things happening a modest but in light of covert 19, I wanted to address what miles is doing.

We have been deemed an essential business in the state of New Jersey by Governor fill mercy.

That that is great for us.

But about a week and a half ago, we made a decision that whole miles employees working remotely.

But we still have people going to the office.

To make sure a we manage our supply chain.

Related issues to make sure we have enough supply that's going into E Commerce, which is the area. That's still is very vibrant.

We prepare for the possibility of this business shutdown and moved a much greater quantity of product to our fulfillment warehouse. So we could complete E commerce orders.

We're actively working with a retail and vet partners and remain committed to helping them through these challenging times.

Well, many physicians beds and consumers are forced to reduce.

Other caseload indoor remain home, we've been actively engaging them through line lung webinars and want to use this time to create much more awareness for our product and the clinical research that backs it up.

We are committed to retaining a building or future customers say base by being sensitive to the needs of these physicians.

And veterinarians and.

And all consumers in light of the current situation.

So we will work with them, we will look at opportunities to build so once we get.

This all past us that miles is even in a better situation than we are today.

Let me just say a little bit about our product.

All the peer reviewed clinical research away from iOS has shown that improve muscle health can lead to a healthier and more active life.

When Bill Evans talks about our product for to Tropin and people, who experienced a 15% increase.

Priests in the rate a mosul protein synthesis, when compared with subjects, who did not take four to tropin. It shows that a small investment in muscle health can make a huge difference to ones overall.

Health and as we continue to tell the story afforded tropin and why people, who can take it should expect better outcomes and better health span.

We think we will continue to grow.

And build this business so.

During these travel in challenging times, our priorities there just a pretty simple one keeping all our employees.

To creating a greater awareness of the power of our products in both human and animal health three growing our revenue with a focus on ecommerce platforms.

And for supporting all our existing and new clients with enhanced marketing advertising and E learning opportunities.

I can assure you that we're doing everything.

To build miles even through these challenging times these times will and.

Miles will change and continue to adapt as we need to we're committed to our shareholders to do whatever is necessary to succeed and we will.

With that I want to open it up to questions.

Thank you.

Ladies and gentlemen will now begin our question and answer session.

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[noise] Diego it looks like there's no question, which is fine.

Thank you Sir one moment.

I can I'd like to conclude.

So again, thank you for taking the time and effort a to be on the coal. Please no as I said in my statement that Myos is doing everything it can during these times to succeed.

And I want to let you know that if you do have any questions feel free to email me call me a we were around we're working probably.

Longer hours than we were working before but will again, we'll do everything we can to build miles and we think.

We're in a great position to succeed in the future.

Thank you have a great day.

Thank you. This concludes todays conference all parties may disconnect have a great day.