MINNEAPOLIS, MN, US, Feb. 14, 2025 (GLOBE NEWSWIRE) -- PetVivo Holdings, Inc. (OTCQB:PETV, OTC:PETVW), a leading biomedical company delivering innovative therapeutics and medical devices for equines and companion animals, reported results for its fiscal third quarter ended December 31, 2024. All comparisons are to the same year-ago period unless otherwise noted.
The company will hold a conference call today at 3:00 p.m. Eastern time to discuss the results for the period (see dial-in information below).
Fiscal Q3 2025 Financial Highlights
- Revenues totaled $583,000, up 191% sequentially and declined 2% from the same year ago period, reflecting the company's continued efforts from targeting primarily the equine market to include at a greater scale the much larger companion animal market. These efforts have involved a realignment and expansion of the company's sales force, with this producing an increased portion of sales related to companion animals in the past few quarters.
- Nationwide distributor network sales totaled $545,000, up 222% sequentially and relatively consistent from the same year ago period.
- Gross profit declined 2% to $522,000, with gross margin maintained at a highly favorable 89.5%.
- Operating loss totaled $1.8 million, improving by $375,000. The large reduction was due to the company's strategic corporate restructuring and cost reduction program.
- Net loss totaled $1.76 million or $(0.09) per basic and diluted share, as compared to a net loss of $1.75 million or $(0.12) per basic and diluted share in the same year-ago quarter.
Fiscal Q3 2025 Operational Highlights
- Continued to expand the distribution network of PetVivo's lead animal osteoarthritis medical device, Spryng® with OsteoCushion® Technology has been used by more than 800 veterinary clinics across all 50 states since its introduction to the veterinary market.
- Substantial accumulation of data for elbow osteoarthritis canine study with principal investigators from Orthobiologic Innovations, a leader in R&D for regenerative and sports medicine.
- Appointed Cindy Gill to the position of field veterinary business development manager for Oklahoma and Arkansas and the northern region of Texas.
- Hired two experienced sales representatives and a technical service veterinarian to support the company's territory managers.
- Exhibited at two major veterinary conferences: American College of Veterinary Surgeons Surgery Summit and American Association of Equine Practitioners convention.
Management Commentary
"During the fiscal third quarter, we continued to expand our nationwide distribution network for our lead animal osteoarthritis medical device, Spryng with OsteoCushion™ Technology," commented PetVivo CEO, John Lai. "Since this revolutionary device's introduction to the market in the fall of 2021, it has now been used by more than 800 veterinary clinics across all 50 states.
The nationwide expansion of our distribution network helped drive a 191% sequential quarterly increase in revenues to $583,000, with our nationwide distributor network sales contributing $545,000 of this total. Our fiscal third quarter is also typically the largest quarter of the year, with this mostly due to the exposure we receive at major veterinary conferences that occur during the period.
While total revenues increased sequentially, they declined 2% from the same year ago period. This reflects our continued endeavors in focusing a greater effort towards the much larger companion animal market. Our team is now focused upon expanding both the equine and 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 an 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 sales representatives and another senior technical services veterinarian to support our territory managers. These internal sales reps and technical services veterinarian are also supporting our direct sales and marketing to leading veterinary clinics.
We have also enhanced our leadership talent with the appointment of Mike Eldred as a Director to assist in the Company's operations and commercialization; Mr. Eldred was appointed to the Board in September, 2024. In this appointment, Mr. Eldred has been asked to assume the tasks and responsibilities of a Commercial and Operations Advisor. Mr. Eldred built Dechra's North American subsidiary from the ‘ground up' to become one of the fastest growing companies in the industry, with more than 250 employees and revenue in excess of $450 million. Mr. Eldred'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.
A key aspect of our strategy to drive greater adoption of Spryng is to expand the awareness of its effectiveness and benefits among key decision-makers, and do this at 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 Spryng to leading veterinarian surgeons. Furthermore, in December we participated in the American College of Veterinary Surgeons Surgery Summit, where Spryng was on display to the equine veterinary community. Finally, in January, we presented Spryng to a large number of veterinarian practitioners at the Veterinary Meeting & Expo Conference or VMX. VMX is the largest veterinary conference in the U.S. and hosts many of the industry's top professionals.
These events were great opportunities to demonstrate the advantages of Spryng, and the beneficial results we have seen when administered to horses and companion animals, both anecdotally and in numerous clinical studies.
During the third fiscal quarter, we continued the accumulation of data for our canine elbow study being conducted with Orthobiologic Innovations, a leader in R&D for regenerative and sports medicine. The study is being led by prominent veterinarians, Sherman and Debra Canapp and we expect it to be fully completed within the new few quarters. In addition to pursuing new clinical trials for Spryng, the experts at Orthobiologic 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 cranial cruciate 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.
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 Spryng in the upcoming quarters.
We also announced in the third quarter new distribution partnerships with Vedco and Clipper Distributing -- both leaders in logistical solutions and product supply to veterinarians. Vedco and Clipper distribute to many of the largest national veterinary product distribution entities in the U.S., including MWI, Covetrus, Patterson, Midwest Supply and Penn Supply -- just to name a few. With these distribution partnerships, we can help ensure that veterinarians across the country have easy access to Spryng.
Altogether, with our expanding distributor network, the completion of additional clinical studies, and our more efficient operational structure, we believe we are more well-positioned than ever to accelerate our growth over the next year and beyond. The expansion of our distribution network also means we are in the strongest position to capitalize on the vast opportunities in U.S. animal health marketplace, which today totals more than $5.7 billion …and is projected to double to $11.3 billion by 2030.
Another key milestone for the Company has been the signing of an exclusive licensing and supply agreement with VetStem, Inc. This partnership provides PetVivo the right to commercialize VetStem's proprietary allogeneic platelet rich plasma ("PRP") product for horses and dogs, PrecisePRP®. We are thrilled by the opportunity to work with this revolutionary product and VetStem's team of professionals.
As we grow, we will remain committed to advancing pet health solutions and ensuring that our products reach more veterinary professionals and pet owners. We look forward to building on these advancements as we continue to strengthen our market presence and drive greater value for our stakeholders."
Fiscal 2025 Revenue Outlook
For the company's full fiscal year 2025 ending March 31, 2025, it appears that its outlook for net revenue to total approximately $1.1 million. This would represent growth of approximately 10% over the prior year. Given this growth and the realignment in sales and marketing, combined with decreases in certain operating expenses, the company also expects an improved bottom line for the fiscal year.
Fiscal Q3 2025 and Fiscal First Nine Months of 2025 Financial Summary
Revenues in the fiscal third quarter of 2025 decreased 2% to $583,000, largely due to decreased direct sales to veterinary clinics as the company transitions to greater use of its expanding distribution network. Sales to distributors were relatively consistent in the quarter during this transitional period, with the anticipated longer-term benefit of more rapid sales growth and market expansion.
Gross profit totaled $522,000 or 89.5% of revenues, compared to $533,000 or 89.5% of revenues in the same year-ago period.
Revenues in the fiscal first nine months of 2025 declined 1% to $908,000 compared to $920,440 in the same year-ago period.
Gross profit totaled $812,000 or 89.5% of revenues in the first nine months of 2025, compared to $824,000 or 89.5% of revenue in the same year-ago period.
Operating expenses for the nine months ending December 31, 2024, decreased by $2 million (23%) from the same nine months period ending on December 31, 2023. The expense reduction was due to a strategic company-wide cost reduction and restructuring program that has decreased general and administrative expenses by $1 million, and a reduction of sales and marketing expenses by $1.2 million versus the same nine months a year-ago. The decreases were partially offset by an increase in R&D of $220,000 due to the performance of clinical trials to support the underlying science behind our Spryng product.
For the nine months ending, our net loss totaled $6 million or $(0.30) per basic and diluted share, which was $2.3 million less net loss of $8.3 million or $(0.64) per basic and diluted share in the same nine-month period a year-ago. Net loss for the third quarter totaled $1.76 million or $(0.09) per basic and diluted share compared to a net loss of $1.75 million or $(0.12) per basic and diluted share in the same year-ago quarter.
Cash and cash equivalents totaled totaled $29,000 at December 31, 2024. To improve our cash position, from the end of the quarter we completed a capital raise with net proceeds of approximately $1.1 million. 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 December 31, 2024, decreased 31% or $1.8 million compared to the same nine-months period ending December 31, 2023, demonstrating how we have become more efficient and cost-wise with our cash spending and company-wide cost cutting program.
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 will host a conference call today to discuss these results, which will include a question-and-answer period.
Date: Friday, February 14, 2025
Time: 2:00 p.m. CST (3:00 pm EST)
Dial-in: +1 253 215 8782
Meeting ID: 84361016783
Passcode: 632113
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, OTC: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.
Email Contact
Tel (952) 405-6216
PETVIVO HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| December 31, 2024 | March 31, 2024 | |||||||
| (Unaudited) | ||||||||
| Assets: | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 28,891 | $ | 87,403 | ||||
| Accounts receivable | 493,121 | 18,669 | ||||||
| Inventory, net | 353,307 | 390,076 | ||||||
| Prepaid expenses and other assets | 351,510 | 545,512 | ||||||
| Total Current Assets | 1,226,829 | 1,041,660 | ||||||
| Property and Equipment, net | 770,267 | 821,656 | ||||||
| Other Assets: | ||||||||
| Operating lease right-of-use | 1,055,150 | 1,194,348 | ||||||
| Trademark and patents, net | 25,104 | 30,099 | ||||||
| Security deposit | 34,990 | 27,490 | ||||||
| Total Other Assets | 1,115,244 | 1,251,937 | ||||||
| Total Assets | $ | 3,112,340 | $ | 3,115,253 | ||||
| Liabilities and Stockholders' Equity: | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 1,028,679 | $ | 821,230 | ||||
| Accrued expenses and other payables | 410,056 | 243,030 | ||||||
| Operating lease liability – short term | 191,766 | 190,589 | ||||||
| Note payable and accrued interest | 1,305,813 | 157,521 | ||||||
| Total Current Liabilities | 2,936,314 | 1,412,370 | ||||||
| Other Liabilities | ||||||||
| Operating lease liability (net of current portion) | 863,384 | 1,003,759 | ||||||
| Note payable and accrued interest (net of current portion) | 7,423 | 13,171 | ||||||
| Total Other Liabilities | 870,807 | 1,016,930 | ||||||
| Total Liabilities | 3,807,121 | 2,429,300 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Series A Preferred Stock, par value $0.001, 20,000,000 shares authorized, 3,045,000 and zero issued and outstanding at December 31, 2024 and March 31, 2024, respectively | 3,045 | - | ||||||
| Common Stock, par value $0.001, 250,000,000 shares authorized, 21,251,784 and 17,058,620 issued and outstanding at December 31, 2024 and March 31, 2024, respectively | 21,252 | 17,059 | ||||||
| Additional Paid-In Capital | 88,059,840 | 83,468,218 | ||||||
| Accumulated Deficit | (88,778,918 | ) | (82,799,324 | ) | ||||
| Total Stockholders' Equity | (694,781 | ) | 685,953 | |||||
| Total Liabilities and Stockholders' Equity | $ | 3,112,340 | $ | 3,115,253 | ||||
PETVIVO HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 583,313 | $ | 595,891 | $ | 907,783 | $ | 920,440 | ||||||||
| Cost of Sales | 61,497 | 62,569 | 95,653 | 96,646 | ||||||||||||
| Gross Profit | 521,816 | 533,322 | 812,130 | 823,794 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Sales and Marketing | 723,461 | 1,032,575 | 1,878,180 | 3,053,184 | ||||||||||||
| Research and Development | 371,953 | 351,584 | 1,224,642 | 1,004,780 | ||||||||||||
| General and Administrative | 1,184,807 | 1,282,787 | 3,685,186 | 4,737,374 | ||||||||||||
| Total Operating Expenses | 2,280,221 | 2,666,946 | 6,788,008 | 8,795,338 | ||||||||||||
| Operating Loss | (1,758,405 | ) | (2,133,624 | ) | (5,975,878 | ) | (7,971,544 | ) | ||||||||
| Other (Expense) Income | ||||||||||||||||
| Loss on Extinguishment of Debt | - | - | - | (534,366 | ) | |||||||||||
| Settlement Expense | - | - | - | (180,000 | ) | |||||||||||
| Extinguishment of payables | - | 385,874 | - | 385,874 | ||||||||||||
| Other Income (Expense) | 25,745 | - | 25,745 | - | ||||||||||||
| Interest (Expense) Income | (24,378 | ) | (2,098 | ) | (29,461 | ) | (4,542 | ) | ||||||||
| Total Other (Expense) Income | 1,367 | 383,776 | (3,716 | ) | (333,034 | ) | ||||||||||
| Loss before taxes | (1,757,038 | ) | (1,749,848 | ) | (5,979,594 | ) | (8,304,578 | ) | ||||||||
| Income Tax Provision | - | - | - | - | ||||||||||||
| Net Loss | $ | (1,757,038 | ) | (1,749,848 | ) | (5,979,594 | ) | (8,304,578 | ) | |||||||
| Net Loss Per Share: | ||||||||||||||||
| Basic and Diluted | $ | (0.09 | ) | (0.12 | ) | (0.30 | ) | (0.64 | ) | |||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic and Diluted | 20,632,921 | 14,271,530 | 19,786,608 | 12,976,851 | ||||||||||||
