MINNEAPOLIS, MN, US, Nov. 14, 2024 (GLOBE NEWSWIRE) -- PetVivo Holdings, Inc. (OTCQB: PETV, PETVW), a leading biomedical company delivering innovative therapeutic medical devices for equines and companion animals, reported results for the fiscal second quarter ended September 30, 2024. All comparisons are to the same year-ago period unless otherwise noted.
The company will hold a conference call at 5:00 p.m. Eastern time November 14, 2024 to discuss the results (see dial-in information below).
Fiscal Q2 2025 Financial Highlights
- Revenues totaled $201,000, up 62% sequentially and down 3% from the same year ago period, as the company continued to transition in the current fiscal year from targeting primarily the equine market to include on a greater scale the much larger companion animal market. This transition has required realignment and expansion of the company's sales force, with this resulting in an increasing portion of sales related to companion animals in the second quarter.
- Further expanded nationwide distributor network, resulting in sales via distributors up 24% to $169,000.
- Gross profit declined 3% to $180,000, with gross margin maintained at 89.5%.
- Net loss improved to $2.2 million or $(0.11) per basic and diluted share, as compared to a net loss of $3.7 million or $(0.28) per basic and diluted share in the same year-ago quarter. This large expense reduction was due to a strategic corporate restructuring and company-wide cost reduction program implemented in fiscal first quarter and that has continued through the fiscal second quarter.
- Net cash used in operating activities improved to $1.6 million, as compared to $2.2 million in the same year-ago period. The Company utilized $800,000 less cash burn for the three month period ending September 30, 2024 due to a company-wide cost reduction program.
- Continued to expand the distribution network of PetVivo's lead animal osteoarthritis medical device, Spryng™ with OsteoCushion™ Technology, which has now been used by more than 800 veterinary clinics across all 50 States.
- Teamed up with Orthobiologic Innovations, a leader in R&D for regenerative and sports medicine, to pursue new clinical trials, product development and marketing of Spryng™.
- Former Dechra president and CEO, Mike Eldred, joined PetVivo's board as an independent director. His appointment increased the board to seven members with six serving independently. He brings to PetVivo more than 20 years of executive experience in animal health and the veterinary industry. Prior to Dechra, he held senior positions in business development, sales and operations at Virbac Corporation, Fort Dodge Animal Health, and Sanofi Animal Health.
- Appointed board certified veterinary surgeon, Dr. Kirsty Husby, DVM, MS, DACVS (LA), to the position of senior technical services veterinarian. Dr. Husby brings to PetVivo more than a decade of experience and accomplishment in animal health. This has involved clinical practice and research experience at leading animal clinics and educational institutions, including Columbia Equine Clinic, Cascade Animal Clinic, Banfield Pet Hospital and Oregon State University Department of Clinical Sciences.
- Appointed Eric Samples as field veterinary business development manager to cover Ohio, Pennsylvania and the Baltimore/DC area. He brings to PetVivo more than 25 years of human and animal health sales and management experience.
- Anthony Germinaro joined the company as a field sales veterinary business development manager for the Southwest Region of the U.S., and brings to PetVivo more than 14 years of experience in the animal health industry.
- Appointed Scot Cave, more than 25 years of animal health sales and management experience, as PetVivo's field veterinary business development manager for the northwest region of the U.S.
- Named Skylor Walker to the position of field veterinary business development manager for the state of Louisiana and southern region of Texas. She previously served as a regional sales manager covering Texas, Oklahoma, New Mexico for Contura International (maker of ArthramidVet®).
- Hired two experienced sales representatives to support the company's new territory managers.
- Exhibited at three major veterinary conferences: 2024 Southwest Veterinary Symposium, Texas Equine Veterinary Association 2024 Summer CE Symposium, and 2024 Pacific Northwest Veterinary Conference.
"In fiscal second quarter, we saw a 62% sequential increase in topline driven by sales to distributors, which was up by 24%, as we further expanded our nationwide distributor network,” commented PetVivo CEO, John Lai. "The slight decrease in revenue year-over-year was in part due to our continued transition from a primary focus on the smaller equine market to encompass the larger and faster-growing companion animal market.
Given that the companion animal market is also a significantly different market than equine, we have realigned our sales force accordingly for maximum effectiveness, including making several key new hires.
In this process, we also cut costs and laid a stronger foundation for future growth. In fact, our sequential topline sales growth is even more impressive when considering we had a 25% reduction in operating expenses, including year-over-year decreases of $425,000 in G&A and $458,000 in sales and marketing. We also reduced our cash burn by $1.5 million for the six months ending September 30, 2024 from $4.6 million for the same six month period a year ago.
During the quarter, we also positioned for growth by appointing for the first time two internal business development managers who support our field business development managers including our four new field business development managers.
We also enhanced our governance with the appointment of former Dechra president and CEO, Mike Eldred, to our board. Mike's experience and strong record of business achievement with pharmaceutical and animal health brings to us a valuable resource for achieving our business goals. We anticipate his significant knowledge and extensive background in the veterinary space will help support the growing adoption of Spryng.
During the quarter, we participated in multiple veterinary conferences from small to three major veterinary conferences that helped expand awareness of our Spryng ™ with OsteoCushion™ Technology. As a unique medical device, Spryng is increasingly being used to manage osteoarthritis and other musculoskeletal conditions in equines and companion animals.
During the quarter, we teamed up with Orthobiologic Innovations, a leader in R&D for regenerative and sports medicine, to pursue new clinical trials, product development and marketing of Spryng™ with OsteoCushion™ Technology. In fiscal Q2, we launched an elbow study with OBI for canine suffering from osteoarthritis. We anticipate the study to be completed in calendar Q1 or Q2 2025. The study is led by prominent veterinarians, including OBI president and CEO, Sherman O. Canapp, Jr. and its director of Diagnositcs and Education, Debra Canapp. We will provide further details of the progress in the coming weeks.
Clinical studies are critical to our distribution strategy, as large national and international distributors and large corporate veterinary clinic groups typically require university or independently conducted studies before considering a new product for inclusion in their catalogs and clinics. Supported by our completed and ongoing clinical studies, we are moving forward to the point where we have enough clinical data and interest that we believe we will secure additional distributors and major corporate clinics in next couple quarters. We estimate that 75% of all veterinary clinics are owned by large corporate groups. We believe in next two quarters we will land a number of these corporate groups.
Looking ahead, the current fiscal third quarter is typically our largest quarter as a result of major veterinary conferences like the American Association of Equine Practitioners ("AAEP”) Conference held in early December.
With our expanding distributor network, clinical studies that confirm product benefits, outstanding new hires, and a more efficient operational structure, we believe we are well-positioned to accelerate revenue growth and enhance shareholder value for the rest of the year and beyond. We are now in the strongest position yet to capitalize on the vast opportunities found in the $5.7 billion U.S. animal health market, which is projected to double to $11.3 billion by 2030."
Fiscal 2025 Revenue Outlook
For the fiscal full year of 2025, the company reiterated its outlook for net revenue of approximately $1.5 million, which would represent growth of approximately 50% over the prior year. Given the realignment in sales and marketing, combined with decreases in certain operating expenses, also expecting an improved bottom line for the year.
Fiscal Q2 2025 Financial Summary
Revenues in the fiscal second quarter of 2025 decreased 3% to $201,000, largely due to decreased sales to veterinary clinics. The decrease was partially offset by a 24% increase in sales to distributors as the company expanded its distribution channel and adoption of the company's lead veterinary medical device, Spryng with OsteoCushion technology.
Gross profit totaled $180,000 or 89.5% of revenues as compared to $186,000 or 89.5% of revenues in fiscal second quarter of 2024.
Operating expenses decreased 25% to $2.4 million compared to the fiscal second quarter of 2024. The expense reduction was due to a strategic company-wide cost reduction and restructuring program that decreased general and administrative expenses by $425,000 and sales and marketing expenses by $458,000 versus the same year-ago quarter. The decreases were partially offset by an increase in research and development of $106,000 due to additional clinical trials and research and development expenses.
Net loss improved to $2.2 million or $(0.11) per basic and diluted share from a net loss of $3.7 million or $(0.28) per basic and diluted share in the same year-ago quarter.
Cash and cash equivalents totaled $126,000 at September 30, 2024. Subsequent to the second quarter-end, the company raised net proceeds of $312,500 to date, which keeps the company in a good position to execute its growth plan over the next several months.
Net cash used in operating activities decreased 34% or $800,000 compared to fiscal second quarter of 2024.
Fiscal First Half of 2025 Financial Summary
Revenues in the fiscal first half of 2025 was relatively consistent at $324,000 compared to the same year-ago period.
Gross profit totaled $290,000 or 89.5% of revenues in the first half of 2025 and same year-ago period.
Operating expenses decreased by $1.6 million, or 27% compared to the fiscal first half of 2024. The expense reduction was due to a strategic company-wide cost reduction and restructuring program that decreased general and administrative expenses by $954,000 and sales and marketing expenses by $866,000 versus the same year-ago quarter. The decreases were partially offset by an increase in research and development of $200,000 due to additional clinical trials and research and development.
Net loss improved to $4.2 million or $(0.22) per basic and diluted share from a net loss of $6.6 million or $(0.53) per basic and diluted share in the same year-ago quarter.
For a more detailed overview of the company's financials, see PetVivo Holdings' consolidated statements of operations and consolidated balance sheet, below.
Conference Call
PetVivo management will host a conference call today to discuss these results, which will include a question-and-answer period.
Date: Thursday, November 14, 2024
Time: 4:00 p.m. CT (5:00 pm ET)
Dial-in: +1 720 707 2699
Meeting ID: 88540551001
Passcode: 967221
Webcast (live and replay): here
A replay of the webcast will be available through the same link following the conference call.
The conference call webcast is also available via a link in the Investors section of the company's website at petvivo.com/investors.
About PetVivo Holdings
PetVivo Holdings, Inc. (OTCQB: PETV, PETVW) is a biomedical device company focused on the manufacturing, commercialization and licensing of innovative medical devices and therapeutics for companion animals. The company is pursuing a strategy of developing and commercializing human therapies for the treatment of companion animals in capital and time efficient ways. A key component of this strategy is an accelerated timeline to revenues for veterinary medical devices that can enter the market much earlier than more stringently regulated human pharmaceuticals and biologics.
PetVivo has developed a robust pipeline of products for the medical treatment of animals and people, with a portfolio of 21 patents that protect the company's biomaterials, products, production processes and methods of use. The company's commercially launched flagship product, Spryng™ with OsteoCushion™ Technology, is a veterinarian-administered, intra-articular injectable designed for the management of lameness and other joint related afflictions, including osteoarthritis, in cats, dogs and horses.
For more information about PetVivo and its revolutionary Spryng with OsteoCushion Technology, email [email protected] or visit petvivo.com or sprynghealth.com.
Disclosure Information
PetVivo uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the company's Investor Relations website, in addition to following the company's press releases, SEC filings, public conference calls, presentations and webcasts.
Forward-Looking commercial Statements
The foregoing information regarding PetVivo Holdings, Inc. (the "Company”) may contain "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation the Company's proposed development and commercial timelines, and can be identified by the use of words such as "may,” "will,” "expect,” "project,” "estimate,” "anticipate,” "plan,” "believe,” "potential,” "should,” "continue” or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of uncertainties and risks that could significantly affect current plans. Risks concerning the Company's business are described in detail in the Company's Annual Report on Form 10-K for the year ended March 31, 2024 and other periodic and current reports filed with the Securities and Exchange Commission. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact
John Lai, CEO
PetVivo Holdings, Inc.
Tel (952) 405-6216
PETVIVO HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| September 30 2024 | March 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Assets: | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 126,239 | $ | 87,403 | ||||
| Accounts receivable | 133,680 | 18,669 | ||||||
| Inventory, net (Note 3) | 372,115 | 390,076 | ||||||
| Prepaid expenses and other assets (Note 4) | 614,350 | 545,512 | ||||||
| Total Current Assets | 1,246,384 | 1,041,660 | ||||||
| Property and Equipment, net (Note 5) | 777,330 | 821,656 | ||||||
| Other Assets: | ||||||||
| Operating lease right-of-use | 1,101,556 | 1,194,348 | ||||||
| Trademark and patents, net (Note 6) | 26,483 | 30,099 | ||||||
| Security deposit | 34,991 | 27,490 | ||||||
| Total Other Assets | 1,163,030 | 1,251,937 | ||||||
| Total Assets | $ | 3,186,744 | $ | 3,115,253 | ||||
| Liabilities and Stockholders' Equity: | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 762,103 | $ | 821,230 | ||||
| Accrued expenses and other payables | 395,625 | 243,030 | ||||||
| Operating lease liability - short term | 191,373 | 190,589 | ||||||
| Note payable and accrued interest | 508,916 | 157,521 | ||||||
| Total Current Liabilities | 1,858,017 | 1,412,370 | ||||||
| Other Liabilities | ||||||||
| Operating lease liability (net of current portion) | 910,184 | 1,003,759 | ||||||
| Note payable and accrued interest (net of current portion) | 9,372 | 13,171 | ||||||
| Total Other Liabilities | 919,556 | 1,016,930 | ||||||
| Total Liabilities | 2,777,573 | 2,429,300 | ||||||
| Commitments and Contingencies (see Note 10) | ||||||||
| Stockholders' Equity: | ||||||||
| Series A Preferred Stock, par value $0.001, 20,000,000 shares authorized, 3,045,000 and zero issued and outstanding at September 30, 2024 and March 31, 2024, respectively | 3,045 | - | ||||||
| Common Stock, par value $0.001, 250,000,000 shares authorized, 330,000 to be issued and 20,067,164 and 17,058,620 issued and outstanding at September 30, 2024 and March 31, 2024, respectively | 20,397 | 17,059 | ||||||
| Additional Paid-In Capital | 87,407,609 | 83,468,218 | ||||||
| Accumulated Deficit | (87,021,880 | ) | (82,799,324 | ) | ||||
| Total Stockholders' Equity | 409,171 | 685,953 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 3,186,744 | $ | 3,115,253 | ||||
PETVIVO HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 200,720 | $ | 207,366 | $ | 324,470 | $ | 324,549 | ||||||||
| Cost of Sales | 21,162 | 21,862 | 34,156 | 34,167 | ||||||||||||
| Gross Profit | 179,558 | 185,504 | 290,314 | 290,382 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Sales and Marketing | 620,307 | 1,078,725 | 1,154,720 | 2,020,611 | ||||||||||||
| Research and Development | 465,174 | 359,332 | 852,689 | 653,103 | ||||||||||||
| General and Administrative | 1,267,117 | 1,691,790 | 2,500,378 | 3,454,588 | ||||||||||||
| Total Operating Expenses | 2,352,598 | 3,129,847 | 4,507,787 | 6,128,302 | ||||||||||||
| Operating Loss | (2,173,040 | ) | (2,944,343 | ) | (4,217,473 | ) | (5,837,920 | ) | ||||||||
| Other (Expense) Income | ||||||||||||||||
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