PetVivo Holdings, Inc. Price & Performance (PETV)

While total revenues increased sequentially, they declined 2% from the same year ago period. This reflects our continuous endeavors in focusing a greater effort towards the much larger companion animal market. Our team is now focused on expanding both the equine and the small animal markets going forward. The increased emphasis on the small animal market has involved a realignment and expansion of our sales force, with this resulting in increased portion of sales related to companion animals in the third quarter. Meanwhile, we've been able to maintain our very favorable high gross margins of 89.5%. To further accelerate our growth, we have added a number of territory managers as well as some highly experienced sale representatives to support our territory an Executive an Executive Director to assist in the company's operations and commercialization. Mr. Eldred was appointed to the Board in September 2024. In his assignment as a Director, Mr. Eldred has been asked to assume the tasks and responsibilities of a commercial and operations advisor, thereby leading helping to lead the commercialization and operation efforts. For twenty years, Mr. Eldrig served as President of North American Operations for Deppra Pharmaceutical, a publicly traded global specialist in veterinary pharmaceuticals with revenues of nearly US1 billion dollars He also built DeCRA's North American subsidiary from the ground up to become one of the fastest growing companies in the industry with more than two fifty employees and revenue in excess of $450,000,000 Mike's experience and strong record of business achievement in pharmaceutical and animal health brings to our company a tremendously valuable resource for achieving our business goals.

Now, before we get into some more of the exciting developments and our outlook for the rest of the year, I would like to turn the call over to our CFO, Gary Lowenthal, to take us through our financial results for the quarter.

Thank you so much, John. Good afternoon, everyone. Thank you for joining us today to discuss our results for our third fiscal quarter of twenty twenty five. As John indicated earlier, we saw sequential quarter top line growth of 191% with our nationwide distributor network sales increasing 222% sequentially to $545,000 Our fiscal third quarter is typically the largest quarter of the year with this mostly due to the exposure we receive at major veterinary conferences that occurred during the period. Compared to the year ago quarter, our total revenues in the fiscal third quarter of twenty twenty five decreased 2% to $583,000 with this largely due to lower direct sales to veterinary clinics as we transitioned to greater use of our expanding distribution network. Sales to distributors were relatively consistent in the quarter during this transitional period as we pursued the longer term benefit of more rapid sales growth and market expansion via distributors. Our gross profit for the quarter totaled $522,000 or 89.5% of revenues with this compared to $533,000 with the same 89.5% of revenues in the same year ago period. Our operating expenses for the nine months ending 12/31/2024 decreased by $2,000,000 or a 23% decrease from the same nine month period ending 12/31/2023.

The expense reduction was due to a strategic company wide cost reduction and restructuring program that decreased general and administrative expenses by $1,000,000 and a reduction in sales and marketing expenses by 1,200,000 versus the same nine months a year ago. The decreases were particularly offset by an increase in research and development of $220,000 due to the performance of our clinical trials to support the underlying science behind our SPRING product. For the nine months ending, our net loss totaled $6,000,000 or $0.3 a share per basic and diluted share, which was $2,300,000 less than the net loss of $8,300,000 or $0.64 loss per basic and diluted share for the same nine month period a year ago. Turning to our balance sheet. Our cash and cash equivalents totaled $29,000 at December 31. So to improve our cash position from the end of the quarter, we completed capital raises with net proceeds of approximately $1,100,000 We expect these funds to keep the company on track to execute our growth strategies over the next few months. As a result of this recent raise, our cash and cash equivalents currently total approximately $418,000 Our net cash used in operating activities for the nine months ending 12/31/2024 decreased by 31% or a $1,800,000 decrease compared to the same nine months ending December '3, which demonstrates how we have become more cost efficient and cost wise with our cash spending and our company wide cost cutting program.

This completes our financial summary for the quarter. I'd now like to turn the call back to our Chief Business Development Officer, John Dolan.

Thank you, Gary. A key aspect of our strategy to drive greater adoption of Spring is to expand the awareness of its effectiveness and benefits among key decision makers and to do this on an increasingly greater scale. To support this effort, we participated in two major veterinary conferences last quarter, along with several smaller industry events. In October, we exhibited at the American Association of Equine Practitioners Convention Surgery Summit, where we demonstrated spring to leading veterinary surgeons. Furthermore, in December, we participated in the American College of Veterinary Surgeons Summit, where spring was displayed to the equine veterinary community. Both events were great opportunities to demonstrate the advantages of spring and the beneficial results we have seen when administered to horses and companion animals, both anecdotally and in numerous clinical studies. In January, we also presented spring to a large number of veterinary practitioners at the Veterinary Meeting and Expo Conference or VMX. VMX is the largest veterinary conference in The U. S. And hosts many of the industry's top professionals. During this third quarter third fiscal quarter, we continued the accumulation of data for our canine elbow study being conducted by Ortho Biologic Innovations, a leader in R and D for regenerative and sports medicine.

The study is being led by prominent veterinarians, Sherman and Deborah Knapp, and we expect it to be fully completed within the next few quarters. In addition to pursuing new clinical trials for spring, the experts at Orca Biologic Innovations are also supporting our product development and marketing. Studies like the canine elbow study as well as our completed studies related to the management of STIFLE, craniocruciate ligament disease and hip osteoarthritis play a crucial role in our distribution strategy as large national and international distributors often require university or independently conducted research before adding a new product like ours to their catalog. All of our existing and new distributors have been leveraging these existing studies in the commercialization of SPRING and additional studies will further support their promotion and the veterinarian training involved involving SPRING. With our already completed clinical studies, we believe we have sufficient data to secure large corporate clients who have extensive veterinary clinic networks nationwide. We estimate about 75% of veterinary clinics are owned by such major corporate groups and we anticipate engaging several of them regarding the use of spring in the upcoming quarters. Now, I would like to turn the call over to our Commercial and Operations Advisor, Mike Eldred, to talk more about a few recent exciting company events and our advances by our sales and marketing teams.

Thank you, John. Good afternoon to everyone. As John Dolan mentioned, I have been in the animal health industry for about thirty years and spent the last twenty years heading up the North American business for one of the fastest growing global animal health companies. It's been a pleasure to be part of the PedRegal team and to serve our Board of Directors. One thing I noticed immediately was the need to improve communication, teamwork and develop a clear strategy for the commercial team, which is to be the leader in veterinary medical devices and regenerative medicine. We recently streamlined the organization and implemented new roles and responsibilities for many employees. April Boyse has taken on all sales and marketing activities. Brian Monitor is now responsible for all distributor relationships and veterinary corporate accounts and is helping to expand the business internationally. We have recently expanded our distribution partnerships with the addition of Vetco and Clipper. Josh Willem is now responsible for all manufacturing and R and D activities. Doctor. Kirsty Husby has recently joined the team and is responsible for veterinary technical and professional services for the equine products. And Marie Bartling has joined as a full time employee and will be responsible for developing and driving our clinical studies and developing technical data to support all employees and customers.

As you may have seen, we issued a very exciting press release this morning. We're extremely excited about our partnership with VetSTEM. Precise PRP is a first in class off the shelf, platelet rich plasma PRP designed for the use by veterinarians. It is also the first blood derived product to be reviewed and approved for safety by the Center of Veterinary Medicine. Unlike the current PRP mechanical kits on the market, Precise PRP does not require a blood draw or the need and time for centrifugation, making it the first off the shelf PRP that is easy, convenient and affordable for veterinarians to use. An additional key benefit is the uniformity and consistency that PRP precise PRP guarantees. Each vial contains a consistent dose of 4,000,000,000 platelets at a concentration of 500,000 platelets per microliter. Finally, Precise PRP is a perfect fit with PetVivo's flagship product, Spring with Osteocrusion technology, which is a veterinary administered injectable medical device designed to manage joint related issues, including osteoarthritis in dogs and cats and horses. Adding a new innovative product for the pet beetle sales reps will allow them to work closer with veterinarians to address and provide solutions for their everyday challenges.

Now I would like to turn the call over to CEO, John Lai, to talk more about the quarter and our outlook for the rest of the year.

Thank you, Mike. So during the last fiscal quarter, market awareness of spring was greatly elevated when one of our advisory board members, Doctor. Tracy Turner, was placed in as president of the American Association of Equine Practitioners. This is actually the largest organization in the world related to equine practitioners. Tracy is widely recognized for pioneering in the use of thermograph as a diagnostic aid in horse lameness and the benefits of horse and welfare regulations. He has been a strong supporter of SPRING and have mentioned our product in multiple conferences and we believe with his appointment and we're seeing the elevation in the equine side. Also, Doctor. Tammy Grubb has she's a professor at Washington State University, has been placed in as President of the International Academy of Veterinary Pain Management, which is the largest organization for canine pain management. She actually did a peer review article indicating different new therapies for last year that have come into the market and she made comments that SPRING should be looked at by veterinary doctors as first use versus a much later stage use. We also changed our name of our subsidiary PetVivo Inc. To PetVivo Animal Health. This change will assist veterinarians and pet owners in recognizing PetVivo's mission in bringing innovative products, next generation disruptive products to enhance the life of our pets and as well as equine, as well as improving the quality of life and enjoyment of the pet owners.

We talked about the partnership with VetStem and Precise PRP as a product added to our portfolio. We feel this is we'll continue to add other products into the PetVivo Animal Health subsidiary. So we're excited to launch this product and we're looking for really good traction as we hit the marketplace. Also last month, as Mike mentioned, we added two new partnerships with Vetco and Clifford Distributing. Both are leaders in logistics solutions product supply to veterinarians. Vetco and Clifford distributes to the largest national veterinary product distributors such as MWI, Covetrus, Patterson, Midwest Veterinary, Penn Animal Supplies. And with the added distribution, we're able to get a lot more traction within the marketplace as these reps are very excited to learn about spring with Osteo Cushion technology as same as precise PRP. So we look forward to building on these advances and we continue to strengthen our market presence and drive greater value for our stakeholders. Now with that, I would like to open the call to your questions. Operator, would you please explain to the listeners how they may prompt in to ask questions?

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