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Earnings Transcript for PETVW - Q1 Fiscal Year 2024

Operator: All right. Welcome, everyone, to the PetVivo Holdings, Inc., 2024 Fiscal Year First Quarter Earnings Report. We will now hand over to John Dolan and take it from there. Thank you.
John Dolan: Thank you, operator. Greetings, and welcome to the PetVivo Holdings first quarter of fiscal year 2024 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 for playback. Before we begin, I would like to remind everyone that comments made during this conference call by PetVivo's 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 earnings release and Form 10-Q with the SEC today, which provide a detailed discussion of our financial results. These documents can be found in the SEC website and the Investor Relations section of our website. I would now like to turn the call over to John Lai, the CEO and President of PetVivo. Please go ahead, John.
John Lai: Thank you, John, and welcome. Also joining me today is Bob Folkes, our Chief Financial Officer. I would like Bob to begin with by discussing some highlights and financial results for the first quarter of fiscal year 2024. John Dolan will provide an update on our clinical studies. And I will conclude by sharing some additional thoughts on our business strategy and key focus areas for fiscal 2024 before we open the line up for questions. I will now turn over the call to Bob.
Bob Folkes: Thank you, John, and good afternoon, everyone. Our key highlights for the first quarter of fiscal year 2024, where we reported revenues of $117,000 as compared to $58,000 in the first quarter of fiscal year 2023. Revenues for the first quarter included net revenue of $34,000 from shipments of Spryng to MWI Animal Health, a subsidiary of AmerisourceBergen, who is a leading distributor of animal health products, pursuant to our distribution and sales agreement with MWI dated June 17, 2022. We also reported revenues of $83,000 on direct sales to veterinary clinics as compared to $58,000 in the first quarter of fiscal year 2023. We added Spencer Breithaupt, a veteran in the animal health industry and former member of the leadership team at MWI Animal Health, to the company's Board of Directors. We also raised $2.1 million from the sale of the company's common stock in a registered direct offering in April 2023. And also subsequent to June 30, 2023, the company raised an aggregate of $2,325,000 in net proceeds from two offerings. On July 27, 2023, the company raised net proceeds of $550,000 in a private offering of convertible notes. And then on August 9, 2023, the company raised net proceeds of $1,775,000 from a registered direct offering of its common stock, conducted concurrently with a private offering of warrants. So we continue to invest our resources to expand our sales and marketing efforts and clinical data to gain vet acceptance and increase revenues from the sale of Spryng. And now I would like to turn the call over to John Dolan to provide an update on our clinical studies.
John Dolan: Thank you, Bob. We provided a detailed overview of PetVivo's clinical studies in our last earnings call on June 30, 2023. To summarize, PetVivo has a total of eight clinical studies in progress or that have been completed; six small animal clinical studies, i.e., canine and feline; and two equine clinical studies. We are fortunate to be working with a number of world-renowned research organizations, such as Colorado State University, Ethos Veterinary Health, and Inotiv, Inc. We anticipate that three of our small animal clinical studies will publish within the next three to four months. Furthermore, we are looking forward to the presentation of the final results of our clinical study conducted by Ethos Veterinary Health at the American College of Veterinary Surgeons Conference in October of 2023. The study is related to evaluating the benefit and tolerability of intraarticular injection of Spryng into the stifle joints of dogs with suspected partial or complete cranial cruciate ligament rupture. An abstract was presented at the Veterinary Orthopedic Society Conference in March 2023, demonstrating that Spryng is a minimally invasive management option for dogs suffering from cranial cruciate disease. The acquisition of clinical data proving the safety and efficacy of Spryng in a multitude of indications is incredibly important to PetVivo. The company plans to organize and conduct more clinical studies in addition to the ones in progress in order to expand our library of data that demonstrates the safety and efficacy of Spryng in a variety of indications. Such a library will assist our sales team to gain veterinarian acceptance in Spryng. I would like to turn it back over to John Lai.
John Lai: Thank you, John. I would like to talk more about our business strategy and key focus areas for fiscal 2024
Operator: [Operator Instructions]. Ms. Ribble.
Unidentified Analyst: I don't know if anyone can hear me.
John Lai: I can hear you, but there's a feedback.
Unidentified Analyst: Is that better?
John Lai: Yes, much better.
Unidentified Analyst: Oh, perfect. I'm just curious like -- I know in the beginning of everything, and I'm new to this world. So thank you for putting up with my greenness. Just -- we keep talking about a timeframe when they're starting injecting smaller animals and blah, blah, blah. Just when is that exact timeframe is my -- I'm just not clear on.
John Lai: Well, right now, veterinary doctors can buy the product, okay, for dogs and cats. We haven't pushed on that side because we talked about all these clinical datas and presentations on the small animals in September, October coming out. So we feel that's a big catalyst. But in the meantime, we're seeing a lot of great results occurring in the dogs and the cat side. And in many of the larger cities, we have multiple clinics using our product. Does that help answer the question?
Unidentified Analyst: It does. And then I know you keep saying -- referring to smaller animals. But isn't the long-term intention to be on bigger animals as well or --?
John Lai: No, we started off on the equine because that's an easy market for us. Because the veterinary doctors see the results right away. While when you're dealing with small animals, they like to have the clinical data to support whatever statements we can make. Plus, when they inject a dog, they may not see that dog for a year -- or six months to a year for the next checkup before they realize how well the dog is doing. So it's a much longer time adoption for small animals, but the market is significantly larger. So there's about 10 million horses in the United States, 83 million dogs in the United States, and about 60 million cats in the United States.
Unidentified Analyst: Okay. Awesome. Thank you.
John Lai: Okay.
Operator: [Operator Instructions]. I have a raised hand from a phone number ending in 4735. Please go ahead.
John Lai: Hello.
Unidentified Analyst : Hello, can you hear me okay?
John Lai: Yup.
Unidentified Analyst : Oh, hi, John. This is .
John Lai: Hi.
Unidentified Analyst : I've got a question. You had referred to something that I'm not familiar with because I'm relatively new to this field. It was called NSAIDs or NSAIDs. What was --
John Lai: NSAIDs, yeah. So that's the standard treatment that veterinary doctor gives. It's a basically an anti-inflammatory.
Unidentified Analyst : Okay.
John Lai: So with humans, it's like --
Bob Folkes: Advil.
John Lai: Naproxen or something.
Bob Folkes: Advil.
John Lai: Advil, yeah. Thank you. Yeah.
Unidentified Analyst : Okay, got it. How do you spell that?
John Lai: The NSAIDs?
Unidentified Analyst : Yes. How do you spell it?
John Lai: Oh, N-S-A-I-D.
Unidentified Analyst : Okay. Great. Yeah, thanks. I appreciate that. You referred to it more than once, so I thought, what is that?
John Lai: Okay, no problem.
Unidentified Analyst : And do you have an update on human trials?
John Lai: No. We stated that on the human side, we'd done the necessary reviews of what the outside experts are telling us from a timetable. And then we would eventually, hopefully soon, announce our advisory team that's experts in this area, to give recommendations the path to go. Because the human trials -- so if you look at the OA market for humans on a global basis, about 240 billion a year as an addressable market. So to go through the human side, it's significantly more expensive, obviously. But we would not raise money within PetVivo Holdings. We would always raise it within the subsidiary, so it won't impact PetVivo's share structure or expenses. And actually, when we do raise money on that side, the overall operating expenses from PetVivo Holdings, the parent itself, would actually reduce a little.
Unidentified Analyst: Okay. That sounds great. Thank you.
John Lai: Yup.
Operator: [Operator Instructions]. All right. No further questions. Thank you. This concludes our conference for today. Thank you for your participation, and you can find any information on the company site.