Q3 2026 PetVivo Holdings Inc Earnings Call [BACKUP]

February 17, 2026

John Lai: 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 Spryng with OsteoCushion technology and PrecisePRP 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 VGP's clinic membership following this training period for Spryng and PrecisePRP.

[Company Representative] (PetVivo Holdings): 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 Spryng with OsteoCushion technology and PrecisePRP 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 VGP's clinic membership following this training period for Spryng and PrecisePRP.

John Lai: Also, during the quarter, we substantially completed Stage B of our strategic partnership with Piezo Biomembrane, a spin-off 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.

[Company Representative] (PetVivo Holdings): Also, during the quarter, we substantially completed Stage B of our strategic partnership with Piezo Biomembrane, a spin-off 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.

John Lai: Stage C, which is expected to begin in Q2 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 PrecisePRP, a proprietary and revolutionary allogeneic platelet-rich plasma, PRP, regenerative PRP product for horses and dogs that highly complements our Spryng 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.

[Company Representative] (PetVivo Holdings): Stage C, which is expected to begin in Q2 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 PrecisePRP, a proprietary and revolutionary allogeneic platelet-rich plasma, PRP, regenerative PRP product for horses and dogs that highly complements our Spryng 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.

John Lai: Part of our commercialization efforts have been to exhibit and research-backed benefits of PrecisePRP along with Spryng 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 help drive the greater adoption of Spryng and PrecisePRP 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 has now integrated Spryng and PrecisePRP 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.

[Company Representative] (PetVivo Holdings): Part of our commercialization efforts have been to exhibit and research-backed benefits of PrecisePRP along with Spryng 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 help drive the greater adoption of Spryng and PrecisePRP 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 has now integrated Spryng and PrecisePRP 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.

John Lai: This adoption by Commonwealth represents a tremendous validation of the effectiveness of Spryng and PrecisePRP, 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 Nupsala Group in the previous quarter. For those unfamiliar with Nupsala, Nupsala 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. Nupsala has begun to inventory, market, and offer Spryng throughout the UK. An initial order has already been shipped, and the official education and training of Nupsala's sales force is scheduled to begin before the end of this current calendar quarter.

[Company Representative] (PetVivo Holdings): This adoption by Commonwealth represents a tremendous validation of the effectiveness of Spryng and PrecisePRP, 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 Nupsala Group in the previous quarter. For those unfamiliar with Nupsala, Nupsala 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. Nupsala has begun to inventory, market, and offer Spryng throughout the UK. An initial order has already been shipped, and the official education and training of Nupsala's sales force is scheduled to begin before the end of this current calendar quarter.

John Lai: This new international engagement follows our previously announced first entrance into the international market with the signing of EK 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 healthcare 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.

[Company Representative] (PetVivo Holdings): This new international engagement follows our previously announced first entrance into the international market with the signing of EK 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 healthcare 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.

John Lai: 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 Knapp and Debra 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.

[Company Representative] (PetVivo Holdings): 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 Knapp and Debra 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.

If you haven't yet watched it we very much encourage you to do so as then you'll understand why we are so excited about this new offering.

John Lai: 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 PetVivo 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?

[Company Representative] (PetVivo Holdings): 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 PetVivo 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?

Regarding other key new partners during the quarter, we joined forces with Austin, Texas based veterinary growth partners.

As a management service and services organization V. G. P. It supports veterinary practices with management and marketing tools consulting and vendor relationships designed to improve their efficiency and profitability.

<unk> has committed to actively promote our spring with Osceola Cushing technology and precise PRP products to its expansive member network of more than 7300 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 pet vivo AI practice management platform to Bgp's clinic membership. Following this training period for spring and precise PRP.

Garry Lowenthal: 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 31 December 2025 totaled $887,000, decreasing only 2% from the same year ago period. Revenues for a period consist of sales of our Spryng products, totaling $400,800, and PrecisePRP products totaling $486,000. This compares to the same year ago period where sales consisted entirely of Spryng.

Also during the quarter, we substantially completed stage b of our strategic partnership with peso biome membrane a spin off from the University of Connecticut, who offers advanced Biocompatible PCL electric materials for implantable and regenerative applications. This important partnership.

With PVM is further in R&D of revolutionary functional bio materials that can promote regeneration restoration and or remodeling of damage or injured tissue and bone in animals as well as in humans stay.

Garry Lowenthal: The slight decrease in our revenues for the period was primarily due to a decrease in Spryng product sales, offset by an increase in sales of PrecisePRP. In the year-ago period, we had a special promotion with our distributors and vet clinics at the annual American Association of Equine Practitioners conference held in December. In the fiscal Q3, that was not repeated in the fiscal Q3 of 2026, that just ended in December. This contributed to the lower sales of Spryng 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 Spryng product. We believe the decrease in Spryng sales was also due to customers opting to use PrecisePRP alone, and not in conjunction with Spryng.

Stage <unk> of the three stage R&D projects successfully determined that materials of our respective products can be combined into a single offering and demonstrated its peso ISO electric activity, which can potentially provide therapeutic benefits to animals and humans stage V.

<unk> 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 and animals. Upon successful completion of stage C. We are also planning to initiate the process for FDA clearance for <unk>.

<unk> 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.

Garry Lowenthal: 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 Spryng in the future quarters. Gross profit in the first nine months totaled $551,500, or 62.2% of revenues, which was a decrease of $812,000, or 89% of revenues in the same period a year ago, due to the lower gross margins of the PrecisePRP product line. We were able to maintain our high gross margin despite increased purchases of lower-margin PrecisePRP finished goods associated with the exclusive license agreement with VetStem Incorporated, and the consequent greater proportion of this lower-margin product in our sales mix.

We have also continued to advance commercial launch or precise PRP, a proprietary and revolutionary allogeneic platelet rich plasma TRP regenerative price product for horses, and dogs that highly complements our spring product offerings.

Sold under an exclusive licensing and supply agreement with our strategic partner vet stem. 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.

Garry Lowenthal: 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 Spryng 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 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.

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 has 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 and high impact training and racing environments. This.

Garry Lowenthal: 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 per share, for the same year-ago period. The increase in net loss was primarily due to unrealized loss and 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 $848,000... and the increase in Precise PRP production and inventory purchases as we've ramped up the market demand for this new product line. Now let's turn to the balance sheet.

As adoption by Commonwealth represents a tremendous validation of the effectiveness 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 <unk> group and the previous quarter.

For those who aren't familiar with new pillar <unk>.

<unk> is a leading UK based veterinary group that operates as both a veterinary wholesaler and referral.

Provider there.

Their specialization is muscular skeletal health ortho biologics regenerative medicine for companion animals, and horses <unk> has begun to inventory market and offer spring throughout the UK and initial order has already been shipped and the official education and training of new store sales.

Garry Lowenthal: Our current assets totaled $1.4 million at the end of the period ending 31 December 2025. In comparison, our current liabilities were significantly reduced to only $988,000 from the same period last year of $4.2 million. As of 31 December 2025, our working capital as of 31 December 2025 totaled $395,000. Subsequent to the end of the period, since 1 January 2026, 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 31 December 2025, down from $5.1 million on just 31 March 2025 in this nine-month period.

For us as scheduled.

Again before the end of this current calendar quarter.

This new international engagement follows our previously announced first entrants into the international market with the signing of.

A special data to.

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.

Garry Lowenthal: The substantial 81% decrease in total liabilities in just 9 months was primarily due to the conversion of all convertible notes into common stock, extinguishment of our derivative liabilities related to these convertible notes, as well as a major reduction in accounts payables due to the settlement of 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?

Personal horse ownership is deeply intertwined with Mexican culture, and tradition, which also makes Mexican can marketplace and exceptionally ideal one.

The European Animal health market is also a large opportunity estimate that 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 eight 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 ortho biologic innovations a leader in R&D for regenerative and sports medicine.

John Lai: Thank you, Gary. As I mentioned earlier, the combination of Spryng with PrecisePRP 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 Spryng with OsteoCushion Technology as a veterinary medical device for use in Canada. Canada has recognized how this veterinarian-administered intra-articular 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.

[Company Representative] (PetVivo Holdings): Thank you, Gary. As I mentioned earlier, the combination of Spryng with PrecisePRP 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 Spryng with OsteoCushion Technology as a veterinary medical device for use in Canada. Canada has recognized how this veterinarian-administered intra-articular 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 study was led by two prominent veterinarians Sherman endeavor can out.

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 expected.

Excited to announce the appointment of Josh Rubin to our board of directors.

He has brought to us a wealth of experience in health care and life Sciences Finance capital markets and corporate strategy, along with a proven track record and 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 health care companies. He.

He previously served in financial director roles with RBC capital markets and Wells Fargo Securities. We expect Josh his deep understanding of the life sciences industry and strategic insights into growth stage companies like pet evil to prove invaluable as we continue to expand our market presence now.

John Lai: The official acknowledgment 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 Q3 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. Currently, we are exhibiting at the Western Veterinary Conference in Las Vegas, Nevada. At these events, we demonstrated the research-backed benefits of Spryng and PrecisePRP to veterinarians, including leading surgeons, sports medicine, and rehabilitation experts in the veterinary industry.

[Company Representative] (PetVivo Holdings): The official acknowledgment 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 Q3 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. Currently, we are exhibiting at the Western Veterinary Conference in Las Vegas, Nevada. At these events, we demonstrated the research-backed benefits of Spryng and PrecisePRP to veterinarians, including leading surgeons, sports medicine, and rehabilitation experts in the veterinary industry.

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, Barry Lowenthal, who will take us through the financial details for the quarter Gary.

Thank you John and 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 wed like to focus on the results for the nine month period is 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 31, 2025 totaled $887000 decrease in only 2% from the senior ago period.

Revenue for period consist of sales of our spring products totaling $400800 and precise PRP products totaling $486000. This compared to the same year ago period, where sales consisted entirely of spring.

John Lai: 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 Spryng and PrecisePRP 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.

[Company Representative] (PetVivo Holdings): 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 Spryng and PrecisePRP 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.

The slight decrease in our revenues.

Primarily primarily due to a decrease in spring product sales offset by increase in sales as a percent 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 2026 that just ended 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 and net conjunction with spring.

John Lai: I want to re-emphasize another exciting event that occurred in the current quarter, that being Digital Landia's launch of their public access data 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 agentic 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.

[Company Representative] (PetVivo Holdings): I want to re-emphasize another exciting event that occurred in the current quarter, that being Digital Landia's launch of their public access data 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 agentic 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.

However, we believe the best outcomes would be created by using these two products together, we believe renewed effort 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 $551500 or 62% of revenues, which was a decrease of 812000 or 89% of revenues in the same period 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 merger precise PRP finished goods associated with exclusive license agreement with vet stem incorporated and the consequent greater proportion of this lower margin product in our sales mix.

Exploring ways to improve our gross margin with the precise POC product.

John Lai: Given how AgenticPet accomplishes this with an amazing 97% accuracy, this technology represents a paradigm shift in how we address the physical health of companion animals. Digital Landia recently reported that the launch of the B2C AgenticPet 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 health care. 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 PetVivo.ai solution for thousands of veterinarian clinics in the PetVivo nationwide network.

[Company Representative] (PetVivo Holdings): Given how AgenticPet accomplishes this with an amazing 97% accuracy, this technology represents a paradigm shift in how we address the physical health of companion animals. Digital Landia recently reported that the launch of the B2C AgenticPet 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 health care. 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 PetVivo.ai solution for thousands of veterinarian clinics in the PetVivo nationwide network.

As well as improve our product mix to include a higher spring gross margin.

Total operating expenses decreased 2% to $6 $7 million in periods in the same year ago period the.

The improvement was due to reduced general and 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 senior of those same periods.

The increase was primarily due to an increase in sales and marketing expenses related to the rollout of our new precise PRP product line, which has been well received by veterinarians and our network.

Net loss for the first nine months was $7 5 million or 27 cents per share as compared to a net loss of $6 million or <unk> 30 cents a share for the same year ago period.

The increase in net loss was primarily due to unrealized loss on change in derivative liabilities.

John Lai: Altogether, our technologies have created an exciting future for PetVivo 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 us strong tailwinds. To better tap the market opportunity, we are in advanced discussions with an outside sales and marketing firm that specializes in our industry and brings our experienced sales team an established distribution network. They would complement our own in-house sales team.

[Company Representative] (PetVivo Holdings): Altogether, our technologies have created an exciting future for PetVivo 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 us strong tailwinds. To better tap the market opportunity, we are in advanced discussions with an outside sales and marketing firm that specializes in our industry and brings our experienced sales team an established distribution network. They would complement our own in-house sales team.

Loss on disposable 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 was primarily attributed to our decrease of accounts payables and accrued expenses $820000.

And the increase in price precise <unk> 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 31 25.

In comparison, our current liabilities were significantly reduced to only $980000 from the same period last year of $4 2 million.

And as of December 31, our working capital as of December 31 totaled $395000.

Subsequent to the end of the period since January one of this year, we raise additional capital from exercise of warrants and the sale of equity securities, bringing in digital additional $477500 of additional proceeds.

John Lai: 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, I 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?

[Company Representative] (PetVivo Holdings): 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, I 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?

Also notably our total liability decreased to $1 million at December 31 down from $5 1 million and just March 31 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 into common stock.

John Lai: Thank you, John. I would like to now open it up to our Q&A session formally. Operator, could you please provide the necessary instructions for our participants to be able to ask questions?

Extinguishment of derivative liabilities related to these convertible notes as well as a major reduction in accounts payables due to the sentiment vendors and trade vendors the reduction of accrued expenses and determination of a 10 year lease obligation.

In fact, our accounts payable decreased 53%.

Operator: Hi. For anyone that joined over the phone, please dial star nine to raise your hand, or if you joined over the computer, please click on the React button on the toolbox and select Raise Hands.

$821000 just March of this past year at the end of our fiscal year last fiscal year to less than $386000 by the end of December.

This highlights our strongest balance sheet in many years.

Now this completes our financial review for the period John.

John Lai: So I do see a question on there that says, updates on getting on the NASDAQ listings. So, you know, the plan was, not for NASDAQ, but more on NYSE American, and we're working towards that. And, you know, a function of that is, stock price and the, life science micro-cap market's kind of going through a more correctional phase. But we anticipate, as future events occur, that we will get the necessary pricing that we would like, to be able to uplist onto the NYSE American.

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 and horses and companion animals are.

Our successful results led to health, Canada recently, acknowledging spring with Osteo cushioning technology as a veterinary medical device for use in Canada.

Under has recognized houses this veterinarian administered intra articular injection device can support join health and aid in the management of lameness and other joint related afflictions in animals. This.

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.

Operator: We have a raised hand for the number ending with 619. You have been allowed to talk. Please dial star six to mute or unmute. Number ending with 619.

The Canadian animal health care market is reportedly growing at six 8% CAGR to exceed $4 4 billion by 2031.

[Analyst]: John, can you talk a little bit about the previous guidance you gave on the last conference call, and how you see that guidance in light of this quarter's results?

[Shareholder] (Private Inverstor): John, can you talk a little bit about the previous guidance you gave on the last conference call, and how you see that guidance in light of this quarter's results?

The official knowledge and meant 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.

John Lai: I'm gonna let Gary answer that question because I can't recall what guidance we gave. I don't think we gave a guidance. Gary?

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 congresses.

Garry Lowenthal: Yeah, but-

[Analyst]: I believe it was around... Yeah, I believe it was $2 to 2.5 million for fiscal year.

[Shareholder] (Private Inverstor): I believe it was around... Yeah, I believe it was $2 to 2.5 million for fiscal year.

Garry Lowenthal: I don't recall the guidance you're referring to. Was that in a previous call or a press release?

As previously mentioned, we exhibited at the American Association of Equine practitioners conference in December.

[Analyst]: Last quarter's conference call.

[Shareholder] (Private Inverstor): Last quarter's conference call.

Garry Lowenthal: Okay, well, we just explained in our half-hour conversation of why the revenues were down for the last 90 days. And we have a brand-new product, and like we had said, that some of the veterinarians were ordering either Spryng or the PrecisePRP. And now our job is to show through studies that we've already done, that having both products work together has better results. We've also got involved in some acquisitions through the Digital Landia as well, and that revenue won't actually kick in till the Q1 of our next fiscal year, beginning 1 April. And then we have some, a whole new product pipeline that's actually gonna monetize into the middle of the year.

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 rehab ability Asian 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.

[Analyst]: So are you pushing out the uptick in sales? Should we expect the previous guidance that was given to reflect it on the next conference call? How should we think about that?

[Shareholder] (Private Inverstor): So are you pushing out the uptick in sales? Should we expect the previous guidance that was given to reflect it on the next conference call? How should we think about that?

We currently have additional canine and <unk> studies for tolerance and the efficacy of spring and precise TRP in the initial stages of development.

Garry Lowenthal: I wouldn't look at something that happened 90 days ago. What we did is we, in the past, we've had big promotions that we, that we had our salespeople have in December of every year. This past December, we didn't do that. We changed the model. It turned out it didn't really work. We rely on our revenue with the largest distributor in the entire industry, and in the past, we've loaded them, loaded them up in December. So that's why our December and our Q3 numbers were, were unusually high. And that's what we decided to spread it out more evenly into the Q4 and then the Q1 coming up.

We also continue to advance our pipeline of new products. This includes new functional biomaterial and bolt amendment gain biomaterials that may be used to enhance the delivery of pharmacological agents and or promote the regeneration and restoration and our 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 digital Andy is launch of their public access beta two it's b to C. A generic pet solutions for pet owners.

Garry Lowenthal: The other thing we're doing is we're actually outsourcing to a third-party organization that does the outsource inside sales, and they specialize in working with all distributors, not just a handful. So we're enhancing our entire sales organization as well.

The launch includes accessed all of its 10 specialized AI agents veterinarian behavioral scientists nutritionists geneticist vaccination specialists trainer blood.

[Analyst]: ... one more question. Can you talk a little bit about the CapEx that's going to be required to roll out the education of the veterinarian system in terms of the Digital Landia platform?

[Shareholder] (Private Inverstor): ... one more question. Can you talk a little bit about the CapEx that's going to be required to roll out the education of the veterinarian system in terms of the Digital Landia platform?

Analysis Radiologists urinalysis urinalysis.

And fecal analysis.

Launch targets Gen Z <unk>.

Who represent 20% of U S pet households, and where pet ownership is growing at more than 43% annually.

Garry Lowenthal: I'm gonna let John Lyons-

[Analyst]: And who's gonna be responsible?

[Shareholder] (Private Inverstor): And who's gonna be responsible?

Garry Lowenthal: Sure.

[Analyst]: Who's gonna be responsible for that rollout?

[Shareholder] (Private Inverstor): Who's gonna be responsible for that rollout?

John Lai: So, there are multiple aspects to that. So one of the things that has occurred is the accreditation organization RACE. We have four different webinars now that have continuing education credits to give to the veterinary doctors, and we started onboarding the VGP group, which is the Veterinary Growth Partners, which has over 7,300 clinics. So that just started to occur on the Digital Landia side. From the standpoint of PetVivo.ai, the onboarding will be part of our current clinics to put them into the system so they're able to use it, to see how how efficient it is for them.

The b to B, a genetic pad 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 pep accomplishes this within amazing 97% accuracy. This technology represents a paradigm shift in how we address the physical health of companion animals.

Digital Landsea recently reported that the launch of the BDC, a genetic pet crushed expectations with the Onboarding of a thousand active beta users and less than 72 hours. They believe this rapid onboarding validates the massive pent up demand for AI, driven preventive health care the <unk>.

Fast adoption confirms the market thesis that pet owners are desperately seeking proactive solutions.

John Lai: Because the open architecture platform allows them to load the app, and the app will go on any existing system that the vet is using to gather the data for the vet, so the onboarding time is greatly reduced. So the vet doesn't have to go into this application, go into that application to pull X-rays, go into that one to pull urology or urine analysis. This does it all for the vet, so they're able to do actual vet work and looking at the diagnosis. Also, when you're allowing. So, so that's why it takes time to allow them to build out the B2C side.

Catch health issues before symptoms emerge rather than relying upon outdated reactivate care models.

Success of the Beta program also strengthens the value proposition of the B to B 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.

John Lai: So each vet that comes in, they says, "I wanna look for potential new customers within a 5-mile radius that may have osteoarthritis issues with their dog or cat," it would automatically provide them with a very good detailed list of potential customers, and then they're able to reach out to those customers and offer them specials on vaccine or Spryng product that may fit their current situation. So a lot of it is gonna be influencer driven, as the model indicates that influencers will get a residual commission on the B2C side as they bring people into the B2C. So it's a dual ecosystem, one feeds on the other. So that's being built up right now.

In fact, we have never been in a better position to accelerate our growth and expand it across high growth U S and international markets.

The U S animal health market alone.

<unk> 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 tailwind.

To better tap the market opportunity, we are in advanced discussions with an outside sales and marketing firm that specializes in our industry and brings our experienced sales team and establish distribution network.

They would complement our own in house sales team.

We hope to provide additional details on this soon.

John Lai: They're probably at over 30-some thousand that have signed up to get the system, and I don't have the count on their side, exactly how many are using the system, but they've been limited to 100 users a day by giving access codes where they can get in and get the full functioning system for the B2C. But we're, we're not far away from launching our B2B.

As we continue to grow and expand over the coming quarters, we will remain committed to advancing the best and 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 I would like to turn the call over to our CEO John lie to provide some insights into some of the recent developments and answer any questions from our listeners John Thank.

[Analyst]: PetVivo is gonna recognize revenues from the implementation, you know, from the vets implementing.

[Shareholder] (Private Inverstor): PetVivo is gonna recognize revenues from the implementation, you know, from the vets implementing.

Thank you John.

I would like to now open it up to our Q&A session formally and the operator.

John Lai: Yes, yes!

[Analyst]: Correct.

[Shareholder] (Private Inverstor): Correct.

John Lai: Yes, because we're able to show the vets they're saving significant costs. So it's a true SaaS model that has the economics, financials, and convenience for the vet, that we believe we're changing the ecosystem for them. And the clinic ownership's revenue source or potential earning source is greatly enhanced using the PetVivo.ai system.

Could you please provide the necessary instructions for participants to be able to ask questions.

Hi for anyone that joined over the phone please dial <unk> nine.

The rates are here.

Or if you do it over the computer lease fleet on the react but on on the two books.

Garry Lowenthal: And by the way-

[Analyst]: So the vet, just so I understand, so I understand. Vet needs to sign up, download the, you know, PetVivo Agentic AI system, reap the benefits of that sign-up through, you know, new customers, greater information from those customers, correct?

[Shareholder] (Private Inverstor): So the vet, just so I understand, so I understand. Vet needs to sign up, download the, you know, PetVivo Agentic AI system, reap the benefits of that sign-up through, you know, new customers, greater information from those customers, correct?

Raise him.

So I do see a question on here that says.

Updates on getting on the NASDAQ listing.

And this things so the plan was not for NASDAQ, but more on New York Amex, and we're working towards that end.

<unk> of that is stock price.

John Lai: Correct, correct. You know, chances are, because we have these partnerships and they're Spryng users, we'll probably do some early promotional to get them on board. And so once they, we feel once they try the system, the conversion rate into a paying customer is gonna be pretty high.

In the life Science Microcap market is kind of going to a.

More correctional phase, but we anticipate.

As future events occurred that we will get.

The necessary pricing that we would like.

To be able to uplift to the New York Amex.

Garry Lowenthal: And that makes.

[Analyst]: I guess my question is, who's gonna support that ecosystem?

[Shareholder] (Private Inverstor): I guess my question is, who's gonna support that ecosystem?

John Lai: Oh-

[Analyst]: Who's gonna support-

[Shareholder] (Private Inverstor): Who's gonna support-

John Lai: That's all part of Digital Landia's contract.

We have on rates for the number ending with six from one nine.

[Analyst]: Sure.

[Shareholder] (Private Inverstor): Sure.

John Lai: They provide continued updates. They're providing the functional system, and so they would be doing that. Our CapEx is very minimal from that standpoint. So we would be... Our expenditure in that area would be more soft dollars of promoting to veterinary clinic groups that may have a big influence on a large group of clinics.

You have been allowed to talk please dial star seeks to mute or on mute.

Number ending with 619.

John can you talk a little bit about your previous guidance you gave.

Last conference call and how you see that guidance in light of this quarter as a result.

I'm going to let Gary answer that question, because I can't recall what guidance. We gave I don't think we gave our guidance.

[Analyst]: Do you have expectations for revenues and P&L?

[Shareholder] (Private Inverstor): Do you have expectations for revenues and P&L?

John Lai: No.

[Analyst]: You know, a year, two years out?

[Shareholder] (Private Inverstor): You know, a year, two years out?

John Lai: No, no. Not, not, not on the pet side, because we have a general idea, but we're not giving any guidance yet.

Gary I believe it was around.

Yes, I believe it was two to two 5 million.

Our fiscal year.

I don't recall the guidance, you're referring to is that in our previous call or a press release.

Garry Lowenthal: And by the way, that revenue-

[Analyst]: Thank you.

[Shareholder] (Private Inverstor): Thank you.

Garry Lowenthal: It's a recurring revenue model, so it's monthly recurring revenue when it kicks in. So that's those that convert to the fee-paying; you go from freemium to what's called premium model. And again, the important point that John and I talked about was it's very little CapEx cost for us. That's Digital Landia; that's their responsibility.

Last quarter's conference call Okay.

Okay, well, we just explained in a half hour conversation and why the revenues were down for the last 90 days.

And we have a brand new product and like we had said some the veterinarian wondering either spring or the precise PRP and now our job is to is to show two studies that we've already done that.

John Lai: Well, but it also will help reduce our costs to reach out to customers, being the veterinary doctors of Spryng and PrecisePRP and other products that we'll be introducing into the network, as well as using the B2B, B2C component, where we will be able to push ads towards people that have osteoarthritis issues, lameness issues, or potential rehab issues.

Having both products work together has better results. We've also gotten malone in some acquisitions through through the digital land here as well and that that revenue will actually kicked into the first quarter of our next fiscal year beginning April 1st and then we have.

Some.

New product pipeline is actually going to monetize into the middle of the year.

Yes.

So are you pushing out the uptick in sales should we expect the previous guidance that was given to <unk>.

[Analyst]: Okay, so you view Digital Landia or PetVivo.ai as a direct-to-consumer, you know, marketing enhancer?

[Shareholder] (Private Inverstor): Okay, so you view Digital Landia or PetVivo.ai as a direct-to-consumer, you know, marketing enhancer?

Reflected on the next conference call.

Should we think about that I wouldn't look at something that happened in 90 days ago what.

John Lai: No, no, that's one facet of it.

[Analyst]: Um.

[Shareholder] (Private Inverstor): Um.

John Lai: It's more veterinary doctors focused, but because it's a dual ecosystem, we're able to do both. So we're able to, as the vet goes, "Okay, I want to see who in my 10-mile radius may have a severe case of osteoarthritis." They can, they can search that network within the 10-mile radius. They'll have a list of potential customers that aren't customers of theirs. They can offer them a special promotion to come in for the exam. They may say, "The exam's gonna be $10," you know? So VCA's been launching a model like that, where they open a new clinic, the first visit is free, just to get people in the door to develop a lifetime customer.

What we did is we in the past we've had big promotions that we had our salespeople.

December of every year. This past December we didn't do that we changed the model it turned out it didn't really work.

We rely on our revenue with the largest distributor in the entire industry and in the past we load loaded them up in December. So that's why our our December in our third quarter numbers were unusually high and that's why we decided to spread it out more evenly into the fourth quarter than the first quarter coming up.

And the other thing we're doing is we're actually outsourcing to us.

To a third party organization that does the outsource inside sales and the special item and work with all distributors not just the handful and so we're enhancing our entire sales organization as well.

John Lai: Well, our app will create a much better experience for the pet owner as well as the veterinary doctor, where they're more inclusive into the health of the animal because they're working together on doing the diagnostics, and the pet owner now has a good understanding of what the vet is telling them in terms of what needs to be done. So, it's a really, you're building the trust between the vet and the pet owner.

One more question can you talk a little bit about the capex required to rollout the education.

The veterinarian.

In terms of its Bob.

The digital media platform.

I'm going to let John Lyons, who is going to respond.

And we're going to be responsible for that rollout.

So there are multiple aspects to that so one of the things that has occurred is the accreditation organization race.

[Analyst]: At the beginning of the call, you mentioned, I believe you mentioned that Digital Landia's PetVivo.ai platform should have the same adoption rate as the current AI platform. Are you talking about the large language model platforms like ChatGPT, or what platforms are you referring to?

[Shareholder] (Private Inverstor): At the beginning of the call, you mentioned, I believe you mentioned that Digital Landia's PetVivo.ai platform should have the same adoption rate as the current AI platform. Are you talking about the large language model platforms like ChatGPT, or what platforms are you referring to?

We have four different webinars now that have continue education credits to given to the veterinary doctors and we started onboarding.

BGP group, which is the veterinary growth practices, which has over 7300 clinics. So that just started to occur on the digital linear side.

John Lai: So subscription model platforms is generally around 20-something percent that actually end up paying for the system. Like a Sofie, which is a veterinary system. I think they have, like, 25% of the people that try the system will convert into a full-time, regular customer.

From the standpoint of Pep vivo.

<unk> Dot AI.

Onboarding will be part of our current clinics.

Into the system. So they are able to use it to see how.

[Analyst]: Okay, so it's not, it's not based around AI models, it's based around subscription models, correct?

[Shareholder] (Private Inverstor): Okay, so it's not, it's not based around AI models, it's based around subscription models, correct?

How efficient it is for them because the open architecture platform.

John Lai: Well, yeah, it's a SaaS model, but it's based on AI, where we're giving a much better outcomes and platform and operating efficiency, but it's still you're selling a service.

Allows them to load the App and the App will go on any existing system that the bed is using the gathered the data for the vet. So the onboarding time is greatly reduce the vet doesn't have to go into this application go into that application to pro X rays co into that one to poll urology urology.

[Analyst]: Okay, understood. Thank you so much for your answers. I appreciate it.

[Shareholder] (Private Inverstor): Okay, understood. Thank you so much for your answers. I appreciate it.

John Lai: Thank you.

John Lai: Thank you.Thank you. Is there any more questions?

[Analyst]: Thank you. Is there any more questions?

Our urine analysis. This does it all for the vet. So they are able to do actual vet work and looking at the diagnosis also when you are.

John Lai: For anyone that joined over the phone, please dial star nine to raise your hand, or if you joined over your computer, please click on the React button and select Raise Hand.

Operator: For anyone that joined over the phone, please dial star nine to raise your hand, or if you joined over your computer, please click on the React button and select Raise Hand.

Allowing so so that's why it takes time to allow them to build out the <unk>.

<unk> side. So each event that comes in they says I want to look for potential new customers within a five mile radius that may have osteoarthritis issues with their dog or cat it would automatically provide them with the.

They're very good detailed list of potential customers and then they are able to reach out to those customers and offer them specials on vaccine or or spring product that may fit their current situations. So so a lot of it is going to be influencing driven.

As the model indicates stent Influencers, we'll get a residual commission on the B C side as they bring people into the BDC. So do ecosystem one feeds on the other so that's being built up right now they are probably at over.

30, some thousand that have signed up to get the system and I don't have the account on their side exactly how many are using the system, but they have been limited to 100 users a day.

By giving access codes, where they can get in and get the full functioning system for the BDC, but where we're not far away from launching our b to b.

And that deal is going to recognize revenues from implementation from events implementing yes, yes, yes, because we were able to show the best they are saving significant cost. So it's a true SaaS model that has the economics financials and convenience for the VAT that we believe.

We're changing the ecosystem for them in the clinic owner ships revenue source of potential earnings source is greatly enhanced you using the pep vivo data AI system.

And by the way so does that just sort of understand how does that need to sign up.

Download the.

Vivo Jonathan system.

Reap the benefits.

Oh, that's gone through.

Through new customers.

Great information from those customers correct.

Correct correct.

Chances are because we have these partnerships and their spring users will probably do some early promotional to get them onboard and so once that we feel once they try the system the conversion rate into a paying.

Customers could be pretty high.

And then I guess my question is who's going to support what is going to support that ecosystem.

Our part of digital Randy as contract they provide continue updates there providing the functional system.

Jim.

So they would be doing that our capex is very minimal from that standpoint, so we would be.

Our expenditure in that area would be more soft dollars promoting two two.

That scenario.

Plenty groups that may have a big influence on a large group of clinics.

Do you have expectations for revenues and P&L no no no that does not on the.

Pet side, because we Havent general idea, but we're not giving any guidance yet.

And by the way that revenue.

It's a recurring revenue model. So it's monthly recurring revenue when it kicks in so that's does that convert to <unk>.

<unk> Eagle from freemium to what's called premium model.

And again, the important point that John and I talked about was it's very little capital Capex cost for us that digital and yet desk their responsibility.

But it also will help reduce our cost to reach out to customers being the veterinary doctors of spring and precise PRP and other products that we'll be introducing into the network.

As well as using the B to B B to C component, where we will be able to push ads towards people that have osteoarthritis issues, our lameness issues or potential.

Rehab issues.

Okay.

Do you view digital land you are kind of vivo is AI as a direct to consumer.

Marketing.

That's one.

It's more that veterinary doctors focus, but because it's a dual ecosystem, we're able to do both so we're able to as the vet goes okay. I wanted to see who in my 10 mile radius may have.

Severe case of osteoarthritis. They can they can search that network within a 10 mile radius still have a list of potential customers that aren't customers of theirs. They can offer them a special promotion to come in for the exempt. They may say the exam is going to be $10. So VCA has been marching our model.

That where they opened a new clinic.

The first visit is free just to get people in the door to develop a lifetime customer well, our app will create a much better experience for the pet owner as well as the veterinary Doctor, where theyre more inclusive into the into the health of the animal because they are working together on during the day.

Aspects and the pet owner now has good understanding of what the ventas telling them in terms of what needs to be done. So so it's really you're building the trust between the vet and the pet owner.

At the beginning of the call you mentioned.

I believe you mentioned that digital land is zero.

<unk> platform should have the same adoption rate of the current AI platform that you're talking about the large language mana platform like <unk>.

That GBP of what platforms are you reporting children subscription model platforms is generally around 20, some percent that actually end up paying for it for the.

Ford for the system.

Like us make us Sophie which is a veterinary system I think they have like 25% of the people that try the system will convert into a full time rig with customer.

Okay. So it's not it's not based around AI model that is based around a subscription model.

It's a SaaS model, but it's based on AI, we're giving a much better outcomes and platform and operating efficiency, but it's still you are selling a service.

Okay. Thank you so much for your answers.

Thank you.

Is there any more questions.

Alright.

And over the phone please.

The rates are.

Thank you Joe.

Your computer.

Yes.

Okay.

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