PetVivo Holdings, Inc. (NASDAQ:PETV) Second Quarter 2023 Earnings Conference Call November 10, 2022 5:00 pm ET
John Dolan, Director of Business Development and General Counsel
John Lai – President and CEO
Bob Folkes – CFO
Conference call participants
It’s okay. Let’s start the conference. Greetings and welcome to PetVivo Holdings’ FY2023 Second Quarter Financial Results Conference Call. I’m John Dolan, Director of Business Development and General Counsel for PetVivo. Today’s call is webcast and will be posted on the company’s website for replay.
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 today filed its earnings release and Form 10-Q with the SEC, which provide a detailed description of our financial results. These documents can be found on the SEC’s website and in the Investor Relations section of our website.
I would now like to turn the conference over to John Lai, CEO and President of PetVivo. Please go ahead John.
Thanks, John, and welcome. I’m joined today by Bob Folkes, our CFO. I’d like to start by discussing some highlights from the last quarter, and then Bob Folkes will discuss financial results and conditions in more detail. I will conclude by sharing some of additional thoughts on our business strategy as key focus areas for FY2023 before opening the queue for questions.
Our key highlights for the second quarter of fiscal 2023 were reported revenue of $223,280 compared to $4,977 in the second quarter of fiscal 2022. Second quarter revenue included net revenue of $118,264 from shipments from Spryng to MWI, a subsidiary of AmerisourceBergen. who is our leading distributor of animal health products pursuant to the distribution and sales agreement with MWI dated June 17, 2022; We expanded our national presence and now have open accounts with veterinary clinics in 14 southern states. We have also added a 3ml syringe as a new SKU.
We are very pleased with the launch of Spryng with MWI. We have started to train their sales team of over 400 Territory Managers and are happy with the direct sale of the Spryng product in the market to veterinarians.
We will attend the American Association of Equine Practitioners Annual Conference in November 2022 and coordinate sales efforts with MWI at this important meeting. This is the largest conference for equine veterinarians.
I would now like to turn the call over to Robert Folkes, our CFO, who will discuss our financial situation.
Thank you, John, and good afternoon everyone. As John mentioned, the most significant event for the quarter was total revenue of approximately $223,000, highlighted by net income of $118,000 for MWI. As of September 30, 2022, the business had $2.3 million in cash and working capital of $2.1 million. During the quarter, we increased our inventory to $305,000 to support our expected revenue growth for this current fiscal year.
We continue to use the net proceeds from our initial public offering to expand our sales and marketing efforts and invest in clinical studies to gain acceptance and increase the proceeds from the sale of Spryng.
So now I’ll call John Lai back.
Thanks Bob. I would like to talk more about the business strategy and key focus areas for FY2023. We are in the process of generating a full suite of clinical evidence to support the equine and small animal market with MWI. John Dolan will go into a little more detail on these studies.
We are hiring Territory Sales Managers to support the relationship with MWI and will add more as the year progresses. We are also exhibiting at multiple conferences to promote awareness of Spryng. And the conference will also be presented at multiple conferences where Dr. Joe Manning and Dr. Ann will discuss the applications of Spryng. Also within our Spryng Health website, we have a whole series of support videos to show various injections or the most common injections for educational purposes. So we’re building this whole education system to support MWI, and this is going to be very crucial as we move to bring the product to market. And we are, once again, getting very good traction in the market.
Now, I’d like to turn the call over to John Dolan to provide an update on our clinical trials, which will be helpful in supporting our relationship with MWI. In addition, we hope that having more clinical data on the efficacy of Spryng will help us gain greater acceptance from veterinarians.
I would like to give the floor to John Dolan.
Thank you John. As John mentioned, clinical trials are incredibly important to our company. On November 5, 2020, we entered into a clinical trial services agreement with Colorado State University, in which we are evaluating Spryng injection in elbow-associated osteoarthritis in dogs. Unfortunately, due to COVID, there were some delays to this trial. We expect this study to be fully enrolled by the end of December 2022 and data to be available in the fourth quarter of the fiscal year ending March 31, 2024.
In addition, we initiated a canine clinical study with Ethos Veterinary Health in May 2022. This is a pilot study in which we are evaluating intra-articular injection of Spryng in dogs with choking disease to determine early tolerance and efficacy of the product. We expect data from the first dog cohort to be available in March 2023 or sooner.
Also in October 2022, we completed enrollment in a canine tolerance study in which we are evaluating intra-articular injection of Spryng in dogs for product safety. We expect to have this data available in the fourth quarter of the fiscal year ending March 31, 2023.
And finally, in October 2023, we started a feline tolerance study in which we are evaluating the safety of the product by intra-articular injection of Spryng in cats. We expect to have this data available in June 2024 or sooner.
We look forward to conducting additional clinical studies to support our relationship with MWI and gain veterinary acceptance for Spryng.
Now, I would like to return the floor to John Lai.
Thank you John. I’d like to open now for questions. John Dolan, can you explain to people how to ask questions, please?
Very good. Thanks. I’m not seeing any questions. Someone has a question?
Well, John, if we don’t see any questions, I’ll make a closing comment, and then we can end this call.
Yes. So the upcoming AAEP, which is the American Association of Equine Practitioners, last year was a great event for us, it gave us a whole series of vets that were testing our product and we were able to get good repeat orders from these doctors veterinarians. This year, we expect it to be quite a bit bigger. It’s a much bigger event, taking place in San Antonio, and if you saw the press release last Friday, I think, or sometime this week, we talked about Dr. Joe Manning presenting some of the applications and successes. that we have been seeing using the product in the equine space for multiple applications. So we’re very excited about working with MWI.
And then also on our Spryng Health website, Dr. Turner provides a whole series of videos showing how to use the product and what applications. And then we also have a whole series of intra-articular injections for the small animal side within that website. That website is more designed for veterinary professionals.
That’s some of the supporting data that we talked about on the previous call or the previous quarter that we would be developing and that would be very critical in helping MWI educate vets as well as helping them get orders in the various apps.
So we have multiple catalysts on the way. We finished the Ethos study at the end of October. And since it takes a while to release, we’re looking to release it in February, March 2023, which is in time for the new season of major trade shows and events where we can present a lot of this. data in. That’s the plan, and that should help us get small animal adoption at a much faster rate.
With that, and if there are no more questions, we will conclude our call.
questions and answers session