Earnings Call Transcript - PETV Q3 2022

John Dolan, Chief Business Development Officer and General Counsel

Greetings, and welcome to the PetVivo Holdings Third Quarter 2022 Financial Results Conference Call. My name is John Dolan, the Chief Business Development Officer and General Counsel at PetVivo. Today's call is being webcast and will be posted on the company's website through playback. Before we begin, I would like to remind everyone that comments made during this conference call by PetVivo executives may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. PetVivo’s actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings. PetVivo assumes no obligation to update any such forward-looking statements. PetVivo filed its 10-Q and earnings release with the SEC today, which provided a detailed discussion of our financial results; both of these documents can be found on the SEC website and in the Investor Relations section of our website. I would now like to turn the conference over to John Lai, the CEO and President of PetVivo. John, please go ahead.

John Lai, CEO and President

Thank you, John. I would like to welcome everyone to our call. Joining me today will be Robert Folkes, our CFO. I would like to begin by discussing highlights from the last quarter, then turn it over to Bob Folkes for a more detailed discussion on the financials and financial conditions in greater detail. I will conclude by sharing some additional thoughts on the business strategy, key focus areas, and the second half of fiscal 2022, before we open it up to questions. Some of the key highlights for the last quarter were that we generated $51,000 in revenues for the sale of Spryng. We officially launched in September of 2021. The introduction of Spryng really occurred at the American Association of Equine Practitioners in December of 2022. It was at the end of the first week or the beginning of the second week of December. Additionally, we added Dr. Joe Manning as a Senior Equine Veterinary Specialist to our team. Joe has many years of experience in the equine space, in veterinary medicine development, and FDA work. We launched a branding initiative regarding Spryng and we are updating our website. We now have a Spryng with OsteoCushion website along with the PetVivo website and we will be driving viewership and interest to both of those sites. We have updated sales material, as well as attended many more conferences coming up. We just got back, actually it’s still ongoing, from Snowmass, Colorado, which is an Orthopedic conference. I would now like to turn the call over to Robert Folkes, our CFO, who will discuss the recently completed registered offering, as well as our financial conditions.

Robert Folkes, CFO

Thank you, John, and good afternoon, everyone. The most significant event from last quarter was that the company began generating revenue from the sales of Spryng, with revenues of approximately $51,000 in our first full quarter of sales. On our balance sheet, we had cash and cash equivalents of approximately $7,554,000 at the end of December. We also have approximately $105,000 of inventory built up to support the sales lines of Spryng. We continue to use the remaining net proceeds from our initial public offering to expand our sales and marketing efforts, again driving acceptance and increased revenues from the sales of Spryng, as John had previously mentioned. With that, I will turn it back over to John.

John Lai, CEO and President

Thank you, Bob. I would like to talk in more detail regarding the business strategy and key focus areas from the last quarter. We're in the process of generating data to support marketing for Equine and small animals. The Colorado State study is progressing, but it's moving slowly because of COVID. However, we did engage a couple of private practices or private research groups that will be able to provide us data much quicker. We anticipate data coming out related to Equine probably within the next quarter, as well as for small animals, dogs, and so on, within the next two quarters. We're hiring additional sales individuals for regional managerial positions. As year-end has been completed, many of these salespeople that we have been discussing are in the process of receiving their year-end cash bonuses. As they receive these bonuses, we have made offer letters and we anticipate in the next 45 to 50 days to have 2 to perhaps 3 regional territorial sales managers in the field with us. We will be exhibiting at multiple conferences and will launch branding and key support initiatives for Spryng through TV commercials, billboards, as well as supporting white papers and collaboration with key opinion leaders, including actual veterinary doctors who have used the product; they are really helping us spread the word. So, with that, from the AAEP Conference, we shipped the initial products. We are pleased with the feedback we're receiving from the vets who got the product, and we are seeing repeat orders from those vets. Right now, I'll just turn it over to see if there are any questions, and I'll be happy to answer them. Operator, can you take charge, please?

Operator, Operator

No problem. I don't see anyone at this time raising their hand.

John Lai, CEO and President

Well, let's give it another minute. If not, I'll just go into give a closing comment about what I'm looking at for the second half of 2022, or actually the last quarter of 2022.

Operator, Operator

It looks like we still have no questions at this time.

John Lai, CEO and President

Okay. Why don't I just take over and conclude with closing comments here? In the past, I talked about the revenue mix being focused on Equine first, which has a much higher percentage, and then the small animals, and we are seeing it that way. Additionally, from the conference, we picked up some very influential Equine vets throughout the United States, and those vets have been using the product. We're receiving very positive feedback about the disruptiveness of the product, and we're getting repeat orders from them, as well as they're helping to spread the word. So, we believe we will see results from those activities. As we move forward, we will have supporting data from studies conducted by the private organizations, arriving much faster than the Colorado State study, which will help us further attract small animal vets to use the product. The key takeaway here is that once a vet uses the product, we are receiving favorable feedback, and we are seeing a conversion of those vets towards using our product as a treatment relative to what they are currently using. Therefore, as we look to the future, we feel confident in our ability to execute our plans and let everything fall into place with the disruptiveness of this product. I want to thank everyone for joining us on the call, and I don't believe I see any questions, as I think they still could ask questions. We will formally conclude the conference call.