Q4 2025 PetVivo Holdings Inc Earnings Call
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Speaker Change: You have joined the meeting as an attendee and will be needed throughout the meeting.
Speaker Change: Good afternoon, everyone. Thank you for joining us today to discuss <unk> results for fiscal year, 2025, which end.
Speaker Change: At March 31 2025.
Speaker Change: Hosting the call today is our Chief Executive Officer, John Line, our Chief Financial Officer, Gary Low end call, our commercial and operations advisor, Mike Alfred and myself, John Dolan at vivo as Chief business Development Officer and General Counsel.
Speaker Change: Following our remarks, we'll open the call to your questions.
Speaker Change: Then before we conclude today's call I'll provide some important cautions regarding the forward looking statements made during the call.
Speaker Change: I'd like to remind everyone that today's call is being recorded with recording made available for replay per the instructions in today's press release, which is available in the Investor Relations section of our website.
Speaker Change: I should also acknowledge that we filed for an extension today for our Form 10-K filing in order to allow our auditors complete their audit for the fiscal year. Therefore, all financial results presented during todays 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 strong and very productive year for pet vivo as we continue to expand the use of our lead animal osteoarthritis veterinary medical device spring with axial Cushing technology.
We also strengthened our platform with the additions of technologies from new major partnerships, we formed during the year.
Speaker Change: Innovative technologies, and Balkan diagnostics and medical treatments that we expect to be transformative for both our platform and the veterinarians we serve.
Speaker Change: First the market introduction of spring in the fall of 'twenty 'twenty. One this product has now been used by more than 1000 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 has very attractive market for us with a veterinary health care market are projected to grow at 6% CAGR and reached nearly 2 billion by 2024.
2026.
This includes a particularly strong equine market with horse ownership deeply intertwined with Mexican culture and tradition.
Speaker Change: Our nurses can expansion, particularly with our distribution net work helped drive a 17% interest increase in revenues in fiscal 2025 to a record $1 1 million or.
Our expanded nationwide distributed accurate contributed sales of $958000 or 86% of this total.
Speaker Change: These results reflect the success of our marketing and sales efforts, which still have a strong focus in the equine market with an increased effort to expand into the much larger and faster growing companion animal market.
Speaker Change: This greater expansion into the companion animal market, such as for dogs and cats involved a full realignment and the expansion of our sales force during this year.
Speaker Change: This has resulted in an increased portion of our overall revenues generated for the companion animal market, while maintaining a steady gain in the coin market.
Meanwhile, we've been able to maintain a favorable high gross margins at 87.8%.
Speaker Change: 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.
Speaker Change: Also during the year, we strengthened our board and leadership team with the appointment of Mike algorithms to our board of Directors and then with his appointment as our commercialization and operations advisor.
Speaker Change: In this position he has been championing our refocus operations and commercialization efforts.
Speaker Change: Mike has brought to us more than 30 years of executive experience in animal health and the veterinary industry, most notably he Gulped Acro Pharmaceuticals, North American subdivision subsidiary into one of the fastest growing companies in the industry with more than 250 employees and annual revenue exceeding $450 million.
Speaker Change: His experience and strong record of achievement in pharmaceutical and animal health provides us a tremendously valuable resource for achieving our business schools.
Speaker Change: 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 Gerry law enthrall to take us through more of the financial details for fiscal 2025, Gary.
Speaker Change: Thanks, John and good afternoon, everyone.
Speaker Change: Thank you for joining us today to discuss our preliminary unaudited results for our 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.
Speaker Change: The following financial results are unaudited preliminary estimates and are subject to change until we file our Form 10-K with the FTC in the next week yourself.
Speaker Change: We expect to report revenue growth of 17% growth for the fiscal year totaling a record one for $1 million. This growth was largely driven by our expanding nationwide distributor network with their combined sales, increasing 31% that $950000 and representing.
Speaker Change: 85% of our total revenue for the year.
Speaker Change: Gross profit totaled $995000 or <unk> 87, 8% of revenues in fiscal 'twenty five.
Speaker Change: This represents an increase of 15% compared to 867089 and half percent of revenues in fiscal 'twenty four.
Speaker Change: Our operating expenses decreased 21% to $921 million compared to $11 5 million in fiscal year 'twenty for.
Speaker Change: The substantial reduction in expenses was due to our strategic company wide cost reduction and restructuring program depth implemented during the year.
Speaker Change: We decreased our general and administrative expenses.
Speaker Change: By 28% and sales and marketing expenses by 23%, while creating more efficient and effective operations.
Speaker Change: The 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.
Speaker Change: Net loss totaled $8 million or <unk>, 39, 39 cents per share and diluted basic and diluted per share.
Speaker Change: Which was an improvement of 27% from a net loss of $11 million or 78 cents per basic and diluted share in fiscal 'twenty four.
Speaker Change: The net cash we used in operating activities decreased by 40% or $2 $9 million.
Speaker Change: Savings compared to fiscal 2024.
Speaker Change: This was again, primarily due to the strategic company wide cost reduction and restructuring program implemented in fiscal 'twenty five.
Speaker Change: Now turning to our preliminary unaudited balance sheet cash and cash equivalents totaled 227689 at March 31, 25 compared to 87403 at March 31, 20 for the.
Speaker Change: The increase was primarily due to the proceeds from equity financings, we conduct during the year.
Speaker Change: Our total assets increased to $9 3 million at March 31, 25, compared to only $3 1 million at March 31 24.
Speaker Change: Subsequent to the fiscal year end beginning April one of this year, we raised net proceeds of $4 $7 million to support our growth strategies for fiscal 'twenty six.
Speaker Change: Funding was result of a successful offering of a $5 million in series B convertible preferred stock, which was fully funded in multiple tranches, which we announced and closed on June 24 25.
Speaker Change: The proceeds have been earmarked to support that further commercialization and market penetration our lead animal health products.
Speaker Change: As a result of the financing our cash and cash equivalents in the bank today is approximately $3.3 million.
Speaker Change: This completes her preliminary financial summary for the year John.
John: Thank you Gary.
John: Our <unk> strategy to drive the greater adoption of spring and more recently precise PRP has been to expand the awareness of it and of the effectiveness and benefits of both of these innovative products among key decision makers and to do this at an increasingly greater scale.
John: Third 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.
Speaker Change: 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 a niche administering spring and or criticized PRP to horses in companion animals with this provided by mobile many anecdotal reports.
Speaker Change: <unk> of the benefits of spring and precise PRP as well as by the numerous clinical studies of spring published by leading independent investigators from.
Speaker Change: From these events. We have also gained a better understanding of our target market and the types of veterinarians, who we should be more focused on this includes vets, who specialized in sports medicine rehabilitation pain management as well as surgery.
Speaker Change: Such special 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.
Speaker Change: This trend is being driven by other factors such as the aging pet population more one is treating their pets like family and the greater availability of advanced diagnostics and treatment options the.
Speaker Change: The increasing use of patent shirts 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.
Speaker Change: Also during the year, we continue to accumulate impressive data from a new canine almost study being conducted by ortho biologic innovations a leader in R&D in regenerative and sports medicine.
Speaker Change: The case study is being led by two prominent veterinarian Sherman and Deborah to map and we expect it to be completed before the end of the calendar year.
Speaker Change: Ladies like this canine Alpha study as well as other published studies related to the management of stifle cranial cruciate ligament disease and hip osteoarthritis continue to play a crucial role in our sales and distribution strategy.
Speaker Change: 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.
Speaker Change: Our internal sales team and outside distributors had been leveraging these published studies in their commercialization programs for spring and additional studies will further support their promotional efforts and veterinarian training for spring.
Speaker Change: We should also note that our market awareness of spring has been greatly elevated with the with our advisory Board member Tracy Turner B not inaugurated as president of the American Association of equine practitioners at their annual conference last year.
Speaker Change: Tracy is widely recognized for its pioneering use of thermography as a diagnostic aid in horsley Missy valuation and it's beneficial use in horse welfare and regulation is published many noted studies and as electric nationally and internationally on these topics.
Speaker Change: Finally, I want to inform you that in March of this year, we entered into what we see as a groundbreaking if not transformed a strategic alliance with digital Landsea, a pioneer and a journey AI solutions.
Speaker Change: Our collaboration with digital Antia centers on their pet AI, a revolutionary technology that does cypress animal behavior and communication through real time analysis of vocalizations body language and physiological signals captured via smartphone cameras with an amazing 97% accuracy.
Speaker Change: Hey.
Speaker Change: Digital land is a genic 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.
Speaker Change: We anticipate pet AI, we rival mainstream AI applications and adoption rates, creating unparalleled visibility for our brands, including spring and precise PRP.
Speaker Change: 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.
Speaker Change: Now I'll provide our financial and operational overlook.
Speaker Change: Altogether the cross pollination of these technologies is creating exciting new future for pet vivo one is that as transformative for not only cut vivo, but also for veterinarians and the and the precious patient slated.
Speaker Change: Serve.
Speaker Change: As a result of these many inroads we have made a crop with.
Speaker Change: We have made in 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.
Speaker Change: 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.
Speaker Change: The U S animal health market is projected to double to 11 3 billion by 'twenty three.
Speaker Change: Such massive girl is rare for such an already large industry and it provides us tremendous tail winds.
Speaker Change: As we continue to grow and expand we will remain committed to advancing the best and Pascal Pet health solutions, and ensuring that our products reach more veterinary professionals and pet owners.
Speaker Change: 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.
Speaker Change: 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.
Mike: Thank you John and good afternoon, everyone.
Speaker Change: During the year, we greatly strengthened our commercial team with the appointment of April boys to the new position of Vice President of sales and marketing.
Speaker Change: <unk> has over 25 years of experience in marketing sales strategic partnerships and global product licensing, including executive positions at Procter and Gamble and Clorox for.
Speaker Change: Our efforts have been truly transformative for our company is here as we have worked to grow the equine market and further expand into the companion animal market.
Speaker Change: Additionally, we enhanced our commercialization impact by restructuring, Brian monitors would to vice president of distributor relations and corporate accounts, Brian has more than 20 years of experience in sales marketing and strategic partnerships as well as leading efforts to secure outside does.
Speaker Change: Tribunal and large corporate accounts.
Speaker Change: Brian previously held executive positions at Hill's Pet nutrition, Novus International and led bulbs.
Speaker Change: To further extend our market reach we added bechtel and clipper distributing to our nationwide distributor network.
Speaker Change: Both partners have quickly ramped up a coke collectively contributed more than $483000 in sales during the last four months of the fiscal year.
Speaker Change: <unk> Cohen Clipper are known in the industry as the primary distributors to the national and regional distributors.
Speaker Change: They supply veterinary product to the largest veterinary product distributors in the United States, including M Wi, Quebec, Chris Paterson, Midwest that supply and Penn vet.
Speaker Change: We have also expanded our technology platform with the signing of an exclusive licensing and supply agreement with vet stem, which provides us the right to commercialize their revolutionary precise P. R. P, which is an allogeneic platelet rich plasma or PRP product for horses and dogs.
Speaker Change: This is a first in class off the shelf platelet rich plasma product developed for use by veterinarians and currently the only animal cell and tissue product approved for safety by the center of Veterinary Medicine.
Speaker Change: Additionally, we announced a strategic collaboration with Commonwealth markets. The syndicated ownership group behind 2023, Kentucky, Kentucky Derby winner MAGE, <unk> and 2022 Dubai World Cup champion country Grammar, our partnership with Comed.
Speaker Change: Wealth is centered on the clinical use and promotion of spring and precise PRP.
Speaker Change: As part of the collaboration Commonwealth will integrate spring and precise TRP into the care protocol of its top tier Thoroughbred stable.
Speaker Change: We're in a we'll use the technology as both a preventative measure and a treatment solutions promote joined Cal and extend performance as well as support recovery and high impact screening and racing environments.
Speaker Change: In addition to the clinical implementation together, we plan to explore co branded content educational initiatives and industry outreach designed to elevate awareness around joint walnuts and to support the broader adoption of spring a precise PRP across the equine health community.
Speaker Change: Partnering with Commonwealth a leader in the highest level of the sport makes a major my marks a major milestone for both spring and precise PRP.
Speaker Change: Their championship caliber horses, and progressive approach to wellness makes them the ideal partner to showcase the benefits of our technology.
Speaker Change: In addition, we recently announced a strategic partnership with <unk> bio membrane, a pioneer and biodegradable piso electric material intended for implantable application.
Speaker Change: Gathering we plan to advance the research and development of revolutionary functional biomaterials, which promote regeneration and door remodeling of damage or issues or injured tissue and bone in animals and humans.
Speaker Change: Altogether these new technologies partnerships and expanded commercial team have created an exciting future verb that vivo.
Speaker Change: And it will all be well received by veterinarians and the patients they serve.
Speaker Change: Now I'd like to turn the call over to our CEO John likes to answer any questions about the company's performance this past year and our outlook for the coming year John.
John: Thank you Mike.
Speaker Change: Operator would you please.
Speaker Change: Instruct the callers on how to ask questions using the keypad or computer.
John: Hi, John worse.
Speaker Change: So let's continue with the Q&A.
Speaker Change: Or anyone that joined over.
Speaker Change: Computers.
Speaker Change: But you didn't react button on your toolbox.
Speaker Change: And fleet on rate.
Speaker Change: Or any one they're joined over the phone.
Speaker Change: <unk> bio SAR nine.
Speaker Change: The rates on lower Dunhill.
Speaker Change: Can we have one question more.
Speaker Change: Number ending 471.
Speaker Change: I will just go ahead and allow us to talk.
Speaker Change: Jupon mute your phone.
Speaker Change: User with the.
Speaker Change: That adds more terminal one lease dial to start.
Speaker Change: On mute.
Speaker Change: You are not alone to talk.
Speaker Change: Thank you John Great presentation and wonderful results.
Speaker Change: Thank you and how much dilution how much dilution do you expect from the conversion of the series D.
Speaker Change: Prefer shown so that's on a one to one basis. So we were it was sold at a premium. So we did it at a dollar a share and one preferred converts into one common keep in mind. When we did the Trent initial transaction for the first 600000, our stock was trading at 55 cents. So we're.
Speaker Change: Pretty proud of the ability to get a deal done in these market conditions at a premium because everybody else is doing it at a 40% discount with protective warrant options.
Speaker Change: This is Charles there would be an additional 5 million shares if it gets all converted yet.
Speaker Change: Wonderful thank you.
Speaker Change: Great we have another question.
Speaker Change: From number ending.
Speaker Change: Bye.
Speaker Change: I will just go ahead and allowed to talk.
Zeke: Please user ending with Zeke spiky style starts seats to our needs.
Speaker Change: Okay user and the which six five T. You are now allowed to talk to.
Speaker Change: You just need to be on mute by dial Lee.
Speaker Change: Art.
Speaker Change: On your phone.
Speaker Change: In the core.
Speaker Change: Thank you Sir.
Speaker Change: Go ahead ask your question, Okay. John what is the average price per vial of the spring injection that veterinarians are charging for the.
Speaker Change: Canines.
Speaker Change: So on average the veterinary adapters charge like $800 per joint but that varies between countries I'm in parts of the country and the veterinary doctors and if they're specialists are we have seen prices ranging from 500 to 1200 for the same injection, but advair.
Speaker Change: He said it all depends on the complexity of the problem, but to give you an example.
Speaker Change: Of a competitive product that's been recently introduced in the market are at.
Speaker Change: It would be a la bra, which is a monoclonal antibody that injects and it's basically masking the problem by blocking the pain receptors are two to the brain and that injection is $150 a month for the life of the animal. So every month you would have to go into the veterinary deal.
Speaker Change: Doctor to get the injection.
Speaker Change: Okay.
Speaker Change: That five to $1200 is that based on volume discounts to the veterinary clinic or or how.
Speaker Change: Or no drug that's what what are that we charge, where we're not allowed to do.
Speaker Change: Give a what.
Speaker Change: The vessel pain, because that's part of the distribution agreement has said that price is confidential, but what I. What I quoted the 800 per joined was spread is typically charged by the veterinary doctor.
Speaker Change: Okay I was going to ask that next what was the price at the they actually purchased that when you've got a pretty good idea by looking at our gross profit margin that we publicly rebounded.
Speaker Change: Gotcha.
Speaker Change: Okay, Yes.
Speaker Change: Hey.
Speaker Change: Alright, Thank you John Okay.
Speaker Change: Or anyone else that I would like to ask a question in Q.
Julien: Hey, Julien over your computer. Please go to the tone bumps and then Blake on react but.
Julien: Equally gone lower.
Speaker Change: Raise your hand.
Julien: Or is he going over the phone please dial <unk> nine.
Julien: Eraser.
Julien: And we have another question from a user ending lead odd number ending with 853.
Speaker Change: You are now allowed to talk please I'll start.
Speaker Change: On mute.
Speaker Change: Hey, John can you talk a little bit about the human trials and how that what that's projected to do in the past that's going on.
John: I'm going to assume you're talking about.
Speaker Change: Our partnership with <unk>, where they have done small animal studies and they're in the large animal studies Solessi, a spin off where they are with the trials being done at University of Connecticut. So we're pretty excited about that.
Speaker Change: Because we're seeing some pretty good results in a small animals and large animals. The AR. The intended future application would obviously be looking at the human side and what we have found is that ox spring with their nano fiber technology and using the ultrasound.
John: Create the electrical field that.
John: Has created a atmosphere or ed or a setting where we're seeing really good movement of.
John: Our regeneration within the scaffolding that we establish with our combined products. So whats happening is its creating a rapid acceleration of enzymes and growth factors to go into the area, where there has been damage and from what we saw in there and some of the early ever.
Speaker Change: It ends of their studies that they release it shows a very good likelihood that it can be repeated within the human market and if you look at the human market for osteoarthritis. It's.
Speaker Change: It's one of 11.2 billion are in the United States and about 33 billion on a global basis and that's for joint replacements are you know hip surgeries and knee surgeries. Obviously, we hope that the product will be able to show very good efficacy as we go into that space.
Speaker Change: Put on the human side.
Speaker Change: Is there any other questions.
Speaker Change: If anyone has any other questions. Please.
Speaker Change: I'll start nine.
Speaker Change: Raise your hand.
Speaker Change: Or use your toolbox to go to the react but equally got very skittish.
Speaker Change: Sure.
Speaker Change: Well, if there's no more questions.
Speaker Change:
Speaker Change: I would like to once again, thank everybody for dialing into today's call.
Speaker Change: We're looking forward to talking to you again soon.
Speaker Change: And presenting our first fiscal quarter results. When we again report them in August is always take care and thank you for joining us today, and we turn it over to John Darwin, where we'll give.
John Darwin: The wrap up and his normal legal disclosures.
Chad: Thank you Chad.
John Darwin: Now before we conclude today's call I would like to provide the company's safe Harbor statement that includes cautions regarding forward looking statements made during today's call Dave.
John Darwin: The information that we have provided in this conference call includes forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the company's future revenue future plans objectives expectations and events assumptions.
John Darwin: <unk> and estimates forward looking statements can be identified by the use of words or phrases usually containing the words believe estimate project intend expect should will or similar expressions.
John Darwin: Statements that are not historical facts are based on the company's current expectations beliefs assumptions estimates forecasts and projections for its business and the industry and market related to its business.
John Darwin: Any forward looking statement made during this conference call are not guarantees of future performance and involve certain risks uncertainties and assumptions, which are difficult to predict.
John Darwin: Actual outcomes and results may differ materially from what is expressed in such forward looking statements.
John Darwin: Factors that would cause or contribute to such differences include but are not limited to various risks as detailed in the company's periodic report filings with the U S Securities and Exchange Commission.
John Darwin: For more information about risks and uncertainties associated with the company's business. Please refer to the management's discussion and analysis of financial conditions or results of operations and risk factors sections of the company's SEC filings, including but not limited to our annual report on Form 10-K and quarterly.
John Darwin: Ports up for Form 10-Q.
John Darwin: Any forward looking statements made during the conference call speaks as of today's date, the company expressly disclaims any obligations or undertaking to update or revise any forward looking statements made during the conference call to reflect any changes in its expectations with regard thereto or any changes in its events.
John Darwin: Conditions or circumstances of which any forward looking statements are based except as required by law.
John Darwin: I would like to remind everyone that this call will be available for replay starting later this evening for Apple latest by early Tomorrow morning.
John Darwin: Please refer to today's earnings release for Dialling replay instructions available via the company's website at Www Dot pet vivo dotcom.
John Darwin: Thank you for attending today's presentation.
John Darwin: This concludes the conference call.
John Darwin: Operator.
John Darwin: Okay.
John Darwin: Goodbye.