Q4 2024 ImmuCell Corp Earnings Call

Operator: Good morning and welcome to ImmuCell Corporation reports. It's fourth quarter and year ended December 31st, 2024, unaudited financial results conference call. All participants will be in listen only mode.

Good morning, and welcome to M Yourself Corporation reports, its fourth quarter and year ended.

December 31st 2024.

Audited financial results conference call, all participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please.

Operator: After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded.

Please note this event is being recorded.

Joe Diaz: I would now like to turn the conference over to Joe Diaz of Litham Partners. Please go ahead. Thank you, Debbie.

Joe Diaz: I would now like to turn the conference over to Joe Diaz of law.

Joe Diaz: Partners. Please go ahead.

Speaker Change: Thank you Debbie good morning, and welcome to all.

Joe Diaz: Good morning, and welcome to all. As conference call operator indicated, my name is Joe Diaz. I'm with Litham Partners. We're the investor relations consulting firm for ImmuCell.

Joe Diaz: Conference call Operator indicated my name is Joe Diaz I'm with Lytham partners, we are the Investor relations consulting firm for Michele. Thanks, All of you for joining us today to discuss the unaudited financial results for the fourth quarter and the year ended December 31 2024.

Joe Diaz: Thank all of you for joining us today to discuss the unaudited financial results for the fourth quarter and the year ended December 31, 2024. Listeners are reminded and cautioned that statements made by management during the course of this call include forward-looking statements. which include any statement that refers to future events or expected future results or predictions about the steps. the company plans to take in the future. Statements are not guarantees of performance and are subject to risks and uncertainties that could cause actual results, outcomes, or events to differ materially from those discussed today. Additional information regarding forward-looking statements and the risks and uncertainty that could impact future results, outcomes, or events is available under the Cautionary Note regarding forward-looking statements, or better known as Safe Harbor Statement, provided with the press release that the company filed last night, along with the company's other periodic filings with the SEC.

Speaker Change: Sure.

Speaker Change: Listeners are reminded and cautioned that statements made by management. During the course of this call include forward looking statements, which include any statement that refers to future events or expected future results or predictions about the steps.

Speaker Change: Company plans to take in the future.

Speaker Change: Statements are not guarantees of performance and are subject to risks and uncertainties that could cause actual results outcomes or events to differ materially from those discussed today.

Speaker Change: Additional information regarding forward looking statements and the risks and uncertainties that could impact future results and outcomes or event is available under the cautionary note regarding forward looking statements or better known as the Safe Harbor statement provided with the press release that the company filed last night.

Speaker Change: Along with the company's other periodic filings with the SEC.

Joe Diaz: Information discussed on today's call speaks only as of today, Wednesday, February 26, 2025. company undertakes no obligation to update any information discussed on today's call.

Speaker Change: Information discussed on today's call speaks only as of today Wednesday February 26, 2025, the company undertakes no obligation to update any information discussed on today's call. Please.

Joe Diaz: Please note that references to certain non-GAAP financial measures may be made during today's call. The company included definitions of these terms as well as reconciliations of these figures to the most comparable GAAP financial measures in last night's press release in order to better assist you in understanding its financial performance.

Speaker Change: Please note that references to certain non-GAAP financial measure may be made during today's call. The company included definitions of these terms as well as reconciliations of these figures to the most comparable GAAP financial measures in last nights press release in order to better assist you in understanding.

Speaker Change: If financial performance.

Michael Brigham: With that said, let me turn the call over to Michael Brigham, President and CEO of ImmuCell Corporation, after which we will open the call for your questions. Thanks, Joe. And good morning, everyone.

Speaker Change: With that said, let me turn the call over to Michael Brigham.

Michael Brigham: And as CEO of <unk> Corporation, after which we will open the call for your questions Mike.

Speaker Change: Yeah.

Mike: Thanks, Joe.

Speaker Change: Good morning, everyone.

Michael Brigham: Sales growth of 52% during both the fourth quarter of 24 and during the full year of 2024 in comparison to the same periods of the prior year is huge for us.

Speaker Change: The sales growth of 52% during both the fourth quarter of 'twenty four and during the full year of 2024 in comparison to the same periods of the prior year is huge for us.

Michael Brigham: It should be noted that our performance during 2023 and the first nine months of 2024 was limited by production contamination events that led to a reduction in manufacturing output and delayed effective implementation of our investment and capital expenditures necessary to double our production capacity. This led to a period of short product supply to market as evidenced by our publicly reported backlog of orders. As a result, the 2024 results are compared to periods in 2023 when our production was limited.

Speaker Change: It should be noted that our performance during 2023 and the first nine months of 2024 was limited by production contamination events that led to a reduction in manufacturing output and delayed effective implementation of our investment in capital expenditures necessary to double our production capacity. This led to a period.

Speaker Change: It is short product supply to market as evidenced by our publicly reported backlog of orders as a result, the 'twenty 'twenty four results are compared to periods in 2023, when our production was limited the absolute dollar value of the sales is more important to me than the period to period flux comparisons to that.

Michael Brigham: The absolute dollar value of the sales is more important to me than the period-to-period flux comparisons. To that end, the $7.8 million in sales recorded during the fourth quarter of 2024 suggests that we have achieved our goal of increasing annual production capacity to $30 million or more per year. The results for the fourth quarter of 2024 put us in a much stronger track as we enter 2025.

Speaker Change: And the $7 8 million in sales recorded during the fourth quarter of 2024 suggests that we have achieved our goal of increasing annual production capacity to $30 million or more per year.

Speaker Change: The results for the fourth quarter of 2024, it put us in a much stronger track as we enter 2025, we have not incurred another contamination event. Since April of 2024. This is critical it suggests that we have effectively remediated the problem and are keeping the bio burden within <unk>.

Michael Brigham: We have not incurred another contamination event since April of 2024. This is critical. It suggests that we have effectively remediated the problem and are keeping the bioburden within specification.

Speaker Change: Suffocation.

Michael Brigham: When I look back, I see something that is now very understandable. After successfully running the same process for over 30 years, sudden growth is hard. We work with a high bio-burden source material, that being farm milk. We needed to better control quality at the source of this growth. We are doing that now.

Speaker Change: When I look back I see something that is now very understandable after successfully running the same process for over 30 years sudden growth as hard we work with a high bio burden source material that being farm milk, we needed to better control quality at the source of this growth we are doing that now similar challenge.

Michael Brigham: Similar challenges were incurred in our downstream processing as we pushed our well-established process and equipment harder. We believe that the operational improvements implemented are allowing us to run more effectively at a higher output level going forward.

Speaker Change: Were incurred in our downstream processing as we pushed our well established process and equipment harder we believe that the operational improvements implemented are allowing us to run more effectively at a higher output level going forward to be successful, we must avoid future significant contamination events and equipment breakdowns and operate with good <unk>.

Michael Brigham: To be successful, we must avoid future significant contamination events and equipment breakdowns and operate with good production. We pay our bills and drive our cash flows with gross margin dollars. To that end, gross margin increased by 125 percent, or $1.6 million, to $2.8 million during the fourth quarter of 2004 in comparison to the fourth quarter of 2023, and it increased by 105 percent, or $4.1 million, to $7.9 million during the year ended December 31, 2024 in comparison to the year ended December 31, 2023. We experienced some low gross margin percentages in prior periods as we dealt with low output and scrap costs related to the contaminations.

Speaker Change: <unk> yields.

Speaker Change: We pay our bills and drive our cash flows with gross margin dollars to that and gross margin increased by 125% or $1 6 million to $2 8 million during the fourth quarter of <unk> 24 in comparison to the fourth quarter of 2023, and it increased by 105% or $4 one.

Speaker Change: Million to $7 9 million during the year ended December 31, 2024 in comparison to the year ended December 31 2023.

Speaker Change: We experienced some low gross margin percentages in prior periods as we dealt with low output and scrap costs related to the Contaminations 36, 5% gross margin as a percentage of sales that we recorded during the fourth quarter of 'twenty four is a step in the right direction, but we still have some work to do to return to our target of over 40%.

Michael Brigham: The 36.5 percent gross margin as a percentage of sales that we recorded during the fourth quarter of 2004 is a step in the right direction, but we still have some work to do to return to our target of over 40 percent. The increase in sales and the improvement in gross margin are important.

Speaker Change: The increase in sales and the improvement in gross margin are important I take nothing away from those accomplishments, but I would like to talk for a moment about EBITDA because the impact of noncash depreciation expense on our bottom line is significant.

Michael Brigham: I take nothing away from those accomplishments, but I would like to talk for a moment about EBITDA because the impact of non-cash depreciation expense on our bottom line is significant. We created EBITDA of $1.3 million during the fourth quarter of 2024. In contrast to negative EBITDA of $311,000 during the fourth quarter of 2023. The fourth quarter results were strong enough to create EBITDA of $1.1 million during the year ended December 31, 2024, in contrast to negative EBITDA of $2.6 million during the year ended December 31, 2014. December 31, 2023. That is a swing in the right direction of approximately $3.7 million between the years.

Speaker Change: We created EBITA of $1 $3 million during the fourth quarter of 2024, and contrast to negative EBITDA of 311000 during the fourth quarter of 2023.

Speaker Change: Fourth quarter results were strong enough to create EBITDA of $1 1 million. During the year ended December 31, 24, and contrasts a negative EBITDA of $2 $6 million during the year ended.

Speaker Change: At December 31, 2023.

Speaker Change: That is a swing in the right direction of approximately $3 $7 million between the years.

Michael Brigham: In order to improve our cash position, we effectively utilize our at the market offering, raising net proceeds of almost $4.4 million during 2024. This helped us increase our cash position to approximately $3.8 million as of December 31, 2024, from just $979,000 as of December 31, 2023.

Speaker Change: In order to improve our cash position, we effectively utilize our at the market offering raising net proceeds of almost $4 4 million. During 2024. This helped us increase our cash position to approximately $3 8 million as of December 31, 24 from just 979000 as of December 31, two.

Speaker Change: 23.

Michael Brigham: Switching topics a bit, I'd like to offer some comments about RETAIN. We remain poised and excited to revolutionize the way that subclinical mastitis is treated in today's dairy market with a novel alternative to traditional antibiotics without FDA-required milk discard or meat withhold label restrictions. We are eager to find out what the market thinks.

Speaker Change: Switching topics a bit I'd like to offer some comments about retain.

Speaker Change: We remain poised and excited to revolutionize the way the subclinical mastitis is treated in today's dairy market with a novel, a pone or alternative to traditional antibiotics without F. D. A required milk discard or meat withhold label restrictions, we are eager to find out what the market thinks.

Michael Brigham: of our new product. We can see the potential of achieving FDA approval of Retain after all these years of investment. The initiation of our previously disclosed controlled launch is pending FDA clearance of inspectional observations at the facilities of our contract manufacturer and the FDA's review of our non-administrative NADA submission, which we submitted during early January of 2025. This submission includes all other information and product labeling, as well as our fourth submission of the CMC technical section, responding to the minor non-complex issues from the incomplete letter issued by the FDA in May of 2024. We have been in discussions with the FDA to seek an expedited review.

Speaker Change: Of our new product, we can see the potential of achieving FDA approval of retained after all these years of investment the initiation of our previously disclosed controlled launch is pending FDA clearance of inspection and observations at the facilities of our contract manufacturer and the after his review of our non administrative.

Speaker Change: And a T a submission.

Speaker Change: Which we submitted during early January of 2025.

Speaker Change: This submission includes all of their information and product labeling as well as our fourth submission of the CMC technical section responding to the minor noncompliance issues from the incomplete letter.

Speaker Change: Issued by the FDA in May of 'twenty 'twenty four we have been in discussions with the FDA to seek an expedited review.

Michael Brigham: After an investment of about 25 years and approximately $50 million in the development of this technology, we are committed to seeing retain through regulatory approval and initiation of our limited distribution control launch strategy. But at the same time, we are reducing product development expenses as we await FDA approval of retain.

Speaker Change: After an investment of about 25 years and approximately $50 million in the development of this technology. We are committed committed to seeing retained through regulatory approval and initiation of our limited distribution controlled launch strategy, but at the same at the same time, we are reducing product development expenses.

Speaker Change: As we await FDA approval of retain.

Michael Brigham: We are also in the very early stages of exploring potential strategic options that could offset some of the product development expenses and enhance a mass market launch of retail. As we work through what we see as the final stages of the regulatory approval process and our effort to bring Retain to market, we will remain focused on the commercial opportunity that we have with First Offense.

Speaker Change: We are also in the very early stages of exploring potential strategic options that could offset some of the product development expenses and enhance a mass market launch of retain.

Speaker Change: As we work through what we see is in the final stages of the regulatory approval process and our effort to bring retained to market. We will remain focused on the commercial opportunity that we haven't with first defense.

Michael Brigham: That is the big picture from my perspective. With regards to the other financial results, the press release provides the unaudited P&L results and some unaudited summary balance sheet data. We plan to file our Form 10-K around the end of March with all the audited Financial Details and Management's Discussion and Analysis. Lastly, I encourage you to review our corporate presentation slide deck. I believe it provides a very good summary of our business strategy and objectives, as well as our current financial results. A February update was just posted to our website last night. See the Investors section of our website and click on Corporate Presentation or contact us for a copy.

Speaker Change: That was the big picture from my perspective with regards to the other financial results. The press release provides the unaudited P&L results and some on audited summary balance sheet data, we plan to file our Form 10-K around the end of March with all the audited financial.

Speaker Change: Details and management's discussion and analysis lastly, I encourage you to review our corporate presentation slide deck I believe it provides a very good summer of a summary of our business strategy and objectives as well as our current financial results of February update was just posted to our website last night see the investors.

Speaker Change: Section of our website and click on corporate presentation or contact us for a copy.

Michael Brigham: With that said, I'll be happy to take your questions. Let's have the operator open up the lines, please. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing.

Speaker Change: But that said I'll be happy to take your questions, let's have the operator open up the lines. Please.

We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.

Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.

Operator: If at any time your question has been addressed and you would like to withdraw your question, please press star then to At this time, we will pause momentarily to assemble our roster.

Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

George Melas: The first question comes from George Melas with MKH Management. Please go ahead. Great, thank you. Hi, Michael. Good morning. Hey, good morning, George. How are you? Very well, thanks. So congrats on the on very good results for the quarter.

Speaker Change: The first question comes from George Melas with Kim K H management. Please go ahead.

George Melas: Thank you Hi, Michael good morning.

Michael Brigham: Hey, good morning, George how are you.

Speaker Change: So congrats on that.

Speaker Change: Very good results for the quarter.

Michael Brigham: And I want to ask a couple questions, one on gross margin and the other one on inventory. So on gross margin, you achieved 36.5, which is the best results in eight quarters. But like you said, in previous years, like from 17 to 22 to mid 22 you were consistently having gross margins in the mid to high 40s. So looking at the changes, there's been a few changes. Of course, product makes this difference with a bigger share of TriShield. Salary costs, I'm sure, have gone up, but so has pricing. So I'm trying to see what else accounts for the difference in the gross margin.

Speaker Change: And I wanted to ask a couple of questions. One on gross margin and the other one is inventory. So on gross margin you achieved 36, five which is the best result in eight quarters, but like you said in previous years.

Speaker Change: Like from 17 to 22 to make 22, you would consistently having gross margin in the mid to high Forty's.

Speaker Change: So looking at the changes there's been a few changes of course product makes this disciplines, where the big issue that's Tri shield.

Speaker Change: Salary cost I'm sure have gone up but so has pricing so I'm trying to see what else accounts for the difference in the gross margin and you're saying that your goal is.

Michael Brigham: And you're saying that your goal is... 40s, sort of 40% plus. And what would it take to get there? So certainly a lot of factors, but I think the biggest one is... I don't want to rank them. I'll comment on a couple. You mentioned product mix, I totally agree with that. Simply, TriShield is more expensive to produce than the Bolas. The Bolas is a simple bivalent product, a single production train. The TriShield is trivalent, and involves two production trains. So TriShield product mix, but you know, that's a negative. But the positive is TriShield is creating a heck of a lot of growth.

Speaker Change: Forties sort of 40% plus and what would it take to get there.

Speaker Change: Yeah. So.

Speaker Change: So certainly a lot of factors, but I.

Speaker Change: I think the biggest one is.

Speaker Change: Well I won't I don't want to rank them I'll comment on a couple.

Speaker Change: Mentioned product mix I totally agree with that simply Tri shield is more expensive to produce than the bolus. The Bose is as simple a bivalent product a single production.

Train.

Speaker Change: Tri Shield is trivalent.

Speaker Change: And it involves two production trains so tri shield product mix, but you know that's a negative but the positive is treasury was creating a heck of a lot of growth at our customers really love that broad spectrum coverage with the addition of rotavirus to our long standing E coli and Corona.

Michael Brigham: Customers really love that broad spectrum coverage with the addition of rotavirus to our long-standing E. coli and corona. Then I sort of jump off to the 37 and the fourth quarter, and I kind of put that in a Condition of work in progress. So like you mentioned, way better than the past and still room to go. So 37% is that 24 pricing. So we've got a 25 price increase to help us and the rest we've got to get from yield and throughput. And those bad periods that you referred to were burdened by contamination. They were burdened by a remediation process that slowed down our production.

Speaker Change: Then then I sort of jump off the 37 in the fourth quarter and I kind of put that in a.

Speaker Change: Condition of work in progress so like you mentioned way better than the past and still run room to go. So 37% is that 24 pricing. So we've got a 25 price increase to help us and the rest we've gotta get from yield and throughput and those bad those bad periods.

Speaker Change: Referred to were burdened by contamination there were burdened by a.

Speaker Change: Our remediation process is slow down our production so lower volume.

Michael Brigham: So lower volume, all the impacts there. and you know, that that's what that's what I see us I see that turn 2425 that we're coming out of that without contamination with higher production with a price increase off a fourth quarter base of 37%. It's pretty optimal almost at this point.

Speaker Change: All the impacts there.

Speaker Change: You know that that's what that's what I see I see that turned 'twenty four 'twenty five that were coming out of that without contamination with higher production, where does the price increase off of fourth quarter base of 37%.

Speaker Change: Does that makes sense, okay, yes, but can you provide a little bit more color on.

Speaker Change: Okay. So you're talking about sort of really three factors that makes but that's not changing the price increase that's impacting the gross margin.

Speaker Change: And throughput that triplet seems PD.

Speaker Change: Pretty pretty optimal almost at this point so.

Michael Brigham: So what can you do from an operational perspective, you think, or is there much to do from an operational perspective? Well, first off, more of the same. I mean, we just have to continue that kind of production. It's a it's a six month production cycle. We saw, you know, a turn here in the to the better and the fourth quarter. You know, now we're not projecting. Now we're managing repeat, do more of the same, do a better. And I think the one factor we didn't talk about there, but it was related to contamination is yield.

Speaker Change: What can you do from an operational perspective, you think or is there much to do from an operational perspective.

Speaker Change: Well first off more of the same I mean, we just have to continue that kind of reduction of it. It's a it's a six month production cycle.

Speaker Change: We saw a turn here to the better in the fourth quarter.

Speaker Change: Now we're not projecting now we're managing.

Speaker Change: Pete do more of the same do a better and I think the one factor we didn't talk about there, but it was related to contamination is yield so one of our top priorities around here as.

Michael Brigham: So one of our top priorities around here is, is the same work for more doses and just simply increase production yield. Biological processing is subject to a huge amount of yield variance. And I think we've made some steps and there's always room for more, more improvement on the yield improvement. and I always say yield resumption. You know, it's not like creating a new, a new level of yield that you know, doses per batch or whatever measure you use, it's getting back to the old yields. So it's really putting all of those factors in the play in the second three months of this six month period ended March 31.

Speaker Change: Is the same work for more doses.

<unk> increased production yield biological processing is subject to a huge.

Speaker Change: The amount of yield variance and I think we've made some steps when theres always room for more more improvement on the yield improvement.

Speaker Change: Hello.

George Melas: Real George I always say yield resumption.

George Melas: You know, it's not like creating a new a new level of yield that you know doses for batch or whatever measure you use it's getting back to the old yields. So it's really putting all of those factors.

George Melas: In to play in that the the second three months of this six month period ended March 31.

Michael Brigham: Okay, so just a question on doses per batch. Is there much variation right now in doses per batch? Or has that sort of improved? And is the relative that it was within a particular, you know, a very small range? Or does it vary a great deal from batch to batch? Yeah, I will go with both. I mean, this is biological, this is cows, there's so many different factors, there's always going to be variance. But I think we've, you know, try and knock off the bottom and try and get more repetition of the better of the better batches.

Speaker Change: Okay, and then just a question on doses per batch.

Speaker Change: Is there much variation right now in those just a batch.

Speaker Change: That sort of improved and is the reality.

Speaker Change: That's it was Egypt within a particular you know a very small range or does it vary a great deal from batch to batch.

Speaker Change: Yeah, I will go with both I mean this is biological this as cows theres. So many different factors, there's always going to be variance, but I think we've you know try and knock off the bottom and try and get more repetition of the better of the better batches, but there's we're always going to be <unk>.

Michael Brigham: But there's, we're always going to be dealing with yield. I mean, that that variance and And just, just, just, just continual improvement. And that's what we've been seeing, that's related to the 37%. Okay, okay, great. Okay.

Speaker Change: With the yield I mean is that that variance and and.

Speaker Change: And just just just just continual improvement.

Speaker Change: That's what we've been seeing that's related to the 37%.

Speaker Change: Okay. Okay, great. Okay. So then yes, you can just my second question on inventory. So one of the stories over the last two and a half years is the big increase in inventory and almost all of that is wet so my understanding and I'll. Just tell you My story, but you tell me, whether it's right or wrong is that you guys.

George Melas: So, let me ask you just my second question on inventory. So, one of the stories of the last two and a half years is this big increase in inventory, and almost all of that is whipped. So, my understanding, and I'll just tell you my story, but you tell me whether it's right or wrong, is that as you guys expected growth, you contracted for a lot of milk deliveries, but then there were these unforeseen events, the syringe shortage in mid-22, the contamination events, and you could not take that. You could not use that milk, but you still had to take it.

Speaker Change: As expected growth you've contracted for a lot of deliveries, but then they were these unforeseen events assuming shortage in mid 'twenty two the contamination events and you could not take that you could not use that but you still had to take it. It gets deriving your flows it and that is basically.

Michael Brigham: It kept arriving. You froze it. And that is basically most of the web. Is that kind of a correct story? How can you elaborate on that story? Yeah, I think, George, that's all fair. Certainly, you know, growing your real estate or facilities and equipment, people, growing the schedule doesn't do you any good if you don't have more raw material coming into to feed the process. So yes, we expanded farms, we expanded cows, we expanded colostrum collection. And then the slowdown meant that we didn't need it all at that time, but I wouldn't do it different.

Speaker Change: Clearly most of the weight.

Speaker Change: Is that candidate correct story, how can you elaborate on that story.

Speaker Change: Yeah, I think I'm sure. That's a fair certainly you know growing your real estate or facilities and equipment and people growing the schedule doesn't do you any good if you don't have more.

Speaker Change: Raw material coming into to feed the process. So yes, we expanded farms are expanded cows, we expanded classroom collection.

Speaker Change: And then the slowdown meant that we didn't need it all at that time, but I wouldn't do it different I wouldn't want to be short on classroom.

Michael Brigham: I wouldn't want to be short on colostrum. And what I think one of the best, so if that's a negative, which I see your point, a little negative on the cash flow or where we invest the cash. I think the offsetting and more than offsetting positive is what our really creative sales team is doing with that inventory. And we've talked about this a little but it's in the development stage of a basically a new format. So everything we've been selling everything we've been making has been Freeze-dried and a very, very, you know, our intellectual property around our manufacturing process is to get a very purified, concentrated, and specific antibody.

Speaker Change: And what I think one of the best.

Speaker Change: So if that's a negative which I see your point, a little negative on the cash flow or where we invest the cash I think the offsetting more than offsetting positive is what are really created sales team is doing with that inventory and we've talked about this a little but it's in the development stage of a basically a new format. So everything.

Speaker Change: We've been selling everything we've been making has been.

Speaker Change: Freeze dried and a very very.

Speaker Change: Intellectual property around our manufacturing process to just to get a very purified and concentrated in specific antibody spray drying is going to be more of a bolt product.

Michael Brigham: Spray drying is going to be more of a bulk product, and this excess, I hesitate to call it excess, but this level of colostrum enables us to explore that path, a new product format, same concept, antibodies, same antibodies, same disease, but just a different market segment being, you know, bulk feed rather than a, you know, four to six gram dose. So I hear you point on, you know, cash is king and we watch it super tight, but in this case, I think it's, you can't, you can't grow without more incoming. And again, I just credit the sales team for, for initiating this, this new format.

Speaker Change: And this excess hesitate to call it excess but this level of colostrum enables us to explore that path.

Speaker Change: New product format same concept antibodies same antibodies same same.

Speaker Change: Same disease, but just a different market segment being bulk feed rather than a.

Speaker Change: Four to six Gram dose.

Speaker Change: So hi.

Speaker Change: I hear your point on cash is king and we watch it super tight.

Speaker Change: But in this case I think it's you you can't do you can't grow without more incoming and again just credit sales teams.

Speaker Change: For initiating this this new format and over.

Michael Brigham: And, uh, you know, over the coming quarters, we'll be able to report on. The success or failure of that initiative. Okay, great. And in timeline, you think with the, there might be some, the new format might be in beta with some customers or? It's a 25 thing that will inform our decisions for 26 and after. You know, it's it's it's a nice thing here is we're we're not subject to a regulatory hurdle. So this is going to be a no claim product. It's not a USDA claim product. So that allows us to get the market faster.

Speaker Change: Over the coming quarters, we will be able to report on.

Speaker Change: The success or failure of that initiative.

Speaker Change: Okay great.

Speaker Change: And timeline, you think there might be some of the new format might be in beta with some customers or.

Speaker Change: You can get if it's a 25 thing that will that will inform our decisions for 'twenty six and after so.

Speaker Change: Think.

Speaker Change: You know it's it's the nice thing here is we're we're we're not subject to a regulatory hurdle.

Speaker Change: So this is gonna be a no claim product, it's not a U S T a claim product.

Speaker Change: So that allows us to get to market faster and that's what we're working on.

George Melas: And that's what we're working Okay, great. Okay. Thanks a lot. Congratulations again. All right. Hey, thanks, George. Appreciate it.

George Melas: Okay, great. Okay. Thanks, a lot congratulations again right hey, Thanks, George I appreciate it.

Operator: Again, if you have a question, please press star then one. At this time, there are no further questions, so this concludes the question and answer session.

Speaker Change: Again, if you have a question. Please press Star then one.

George Melas: Okay.

Speaker Change: At this time there are no further questions. So this concludes the question and answer session I would like to turn the conference back over to Joe Diaz for any closing remarks.

Joe Diaz: I would like to turn the conference back over to Joe Diaz for any closing remarks. Thanks to all of you for participating on today's call. We look forward to talking with you again to review the results of the first quarter ending March 31 2025 during the week of May 12 2020.

Joe Diaz: Thanks to all of you for participating on today's call. We look forward to talking with you again to review the results of the first quarter ending March 31, 2025. During the week of May 12, 2025 have a great day again, thanks for participating.

Joe Diaz: Have a great day. Again, thanks for participating.

Operator: The conference has now concluded. Thank you for attending today's presentation.

Joe Diaz: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: You may now disconnect.

Joe Diaz: Yeah.

Joe Diaz: Okay.

Joe Diaz: Yeah.

Joe Diaz: Yeah.

Joe Diaz: Yeah.

Joe Diaz: Okay.

Joe Diaz: Okay.

Joe Diaz: Yeah.

Joe Diaz: Okay.