Company Reieterates Gudience of 50% to 100% Revenue Growth in Fiscal 2025
MINNEAPOLIS, MN, US, Aug. 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 first quarter ended June 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 August 14, 2024 to discuss the results (see dial-in information below).
Fiscal Q1 2025 Financial Highlights
- Revenues increased 6% to $124,000, driven by the increasing roll out and adoption of the company's flagship veterinary medical device, Spryng™ with OsteoCushion™ technology.
- Sales growth primarily driven by the company's expanded nationwide distributor network, with sales to distributors up by 102% to $68,000.
- Gross profit increased 6% to $111,000.
- Gross margin maintained at 89.5%.
- Net loss improved to $2.0 million or $(0.11) per basic and diluted share, as compared to a net loss of $2.9 million or $(0.25) 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 during the fiscal quarter.
Fiscal Q1 2025 Operational Highlights
- Achieved distribution milestone of Spryng used by more than 800 veterinary clinics across 50 States, and have achieved distribution of more than 10,000 syringes of Spryng.
- Appointed April Boyce to the new position of vice president of marketing, bringing to PetVivo more than 25 years of experience in marketing, sales, strategic partnerships, and global product licensing, including executive positions at Procter & Gamble (P&G) and Clorox.
- Appointed as vice president of sales, Bryan Monninger, with more than 20 years of experience in sales and marketing, including senior executive positions at Hill's Pet Nutrition, Novus International and Lintbells, as well as the Fortune 500 companies, Colgate-Palmolive, ConAgra and Hormel Foods.
- Exhibited Spryng at the American College of Veterinary Sports Medicine and Rehabilitation (ACVSMR) Symposium, demonstrating the research-backed benefits of Spryng to leading sports medicine and rehabilitation experts in the veterinary industry.
- Presented Spryng to leading veterinary pain management experts at the International Veterinary Academy of Pain Management (IVAPM) Pain Management Forum. Marie Bartling, DVM, cVMA, CCRT, Veterinary Medical Advisor (Small Animal Orthopedics and Pain Management) for PetVivo spoke on the topic, "How Do We Elevate Our Strategy for Managing Osteoarthritis in Pets."
Management Commentary
"In the fiscal first quarter of 2025, we achieved strong financial and operational progress as we continued to advance the rollout of our flagship product, Spryng with OsteoCushion™ Technology," commented PetVivo CEO, John Lai. "Moreover, our success with expanding the adoption of Spryng by veterinarians is also improving the health and wellbeing of equine and companion animals nationwide.
Our revenue growth was driven largely by our expanding distributor network, with sales of Spryng by distributors more than doubling over the past year, and this continues to climb as we maintained our highly favorable gross margins at 89.5%.
Now after accumulating a strong body of independent research that reveals the benefits of Spryng for companion animals, we are focused on accelerating the market adoption of Spryng with a number of key hires. This has included restructuring and realigning our sales and marketing teams and strengthening their efforts with two key senior sales and marketing appointments of individuals with extraordinary records of achievement in executive roles at Fortune 500 companies.
These individuals include appointing former Hills Pet Nutrition, Novus International and Colgate-Palmolive senior sales and marketing executive, Bryan Monninger, to the position of VP of sales, and appointing former P&G sales and Clorox marketing executive, April Boyce, as VP of marketing. We believe our ability to attract such exceptionally capable and experienced sales and marketing professionals in such a competitive jobs market is a testament to the strength of our product offering and potential for strong growth ahead.
Furthermore, as demand continues to grow, we plan to add additional sales and marketing personnel to support our growing distribution relationships with market leaders, MWI and Covetrus, as well as directly to leading veterinary clinics nationwide.
There are also a few studies currently in progress. One is being conducted at Colorado State University, where researchers are evaluating the effectiveness of intra-articular Spryng injections for managing pain associated with naturally occurring elbow osteoarthritis in dogs. The accumulation of data was recently completed, and scientists and statisticians are currently analyzing the data and preparing the results for publication. We anticipate seeing a presentation of this study sometime in the first half of next year.
All studies performed on behalf of the Company will add to the body of clinical research that now totals more than five published studies to date. These studies are critical to our distribution strategy, as large national and international distributors typically require university or independently conducted studies before considering a new product for inclusion in their catalogs.
Such studies also support our go-to-market strategy by attracting endorsements from Key Opinion Leaders and increasing our chances of receiving additional invitations to present at animal health conferences and tradeshows.
Between our strengthening distributor network, benefit-confirming clinical studies, exceptional new key hires and more efficient operational structure, we believe we have set the stage for accelerated growth in revenues and shareholder value for the remainder of the year and beyond.
By far, we have never been in a better position to address the enormous opportunities we enjoy in the $5.7 billion U.S. animal health market, which is expected 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 to $2.0 million, which would represent growth of approximately 50% to 100% over the prior year.
Fiscal Q1 2025 Financial Summary
Revenues in the fiscal first quarter of 2025 increased 6% to $124,000, largely due to distribution channel expansion and broader adoption of the company's lead veterinary medical device, Spryng with OsteoCushion technology.
Gross profit totaled $111,000 or 89.5% of revenues as compared to $105,000 or 89.5% of revenues in fiscal first quarter of 2024.
Operating expenses decreased 28% to $2.2 million compared to the fiscal first 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 $530,000 and sales and marketing expenses by $407,000 versus the same year-ago quarter. The decreases were partially offset by an increase in research and development of $94,000 due to additional clinical trials.
Net loss improved to $2.0 million or $(0.11) per basic and diluted share from a net loss of $2.9 million or $(0.25) per basic and diluted share in the same year-ago quarter.
Cash and cash equivalents totaled $12,000 at June 30, 2024. Subsequent to the first quarter-end, the company raised net proceeds of $1.21 million in July 2024, which keeps us in a good position to execute our growth plan over the next several months.
Net cash used in operating activities decreased 29% or $633,000 compared to fiscal first quarter of 2024.
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: Wednesday, August 14, 2024
Time: 5:00 p.m. Eastern time (2:00 p.m. Pacific time)
Toll-free dial-in number: 1-253-215-8782
Conference ID: 85913290613
Passcode: 187583
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.
If you require any assistance connecting to the call, please contact CMA at 1-949-432-7566.
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.
Email Contact
Tel (952) 405-6216
Investor Relations Contact
Ronald Both or Grant Stude
CMA Investor Relations
Tel (949) 432-7566
Email contact
PETVIVO HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| June 30, 2024 (Unaudited) | March 31, 2024 | |||||||
| Assets: | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 12,414 | $ | 87,403 | ||||
| Accounts receivable | 72,026 | 18,669 | ||||||
| Inventory, net | 383,577 | 390,076 | ||||||
| Prepaid expenses and other assets | 412,048 | 545,512 | ||||||
| Total Current Assets | 880,065 | 1,041,660 | ||||||
| Property and Equipment, net | 805,570 | 821,656 | ||||||
| Other Assets: | ||||||||
| Operating lease right-of-use | 1,147,939 | 1,194,348 | ||||||
| Trademark and patents, net | 27,866 | 30,099 | ||||||
| Security deposit | 29,490 | 27,490 | ||||||
| Total Other Assets | 1,203,295 | 1,251,937 | ||||||
| Total Assets | $ | 2,888,930 | $ | 3,115,253 | ||||
| Liabilities and Stockholders' Equity: | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 646,360 | $ | 821,230 | ||||
| Accrued expenses | 246,378 | 243,030 | ||||||
| Operating lease liability – short term | 190,980 | 190,589 | ||||||
| Note payable and accrued interest | 7,463 | 157,521 | ||||||
| Total Current Liabilities | 1,091,181 | 1,412,370 | ||||||
| Other Liabilities | ||||||||
| Operating lease liability (net of current portion) | 956,959 | 1,003,759 | ||||||
| Note payable and accrued interest (net of current portion) | 11,287 | 13,171 | ||||||
| Total Other Liabilities | 968,246 | 1,016,930 | ||||||
| Total Liabilities | 2,059,427 | 2,429,300 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders' Equity: | ||||||||
| Preferred Stock, par value $0.001, 20,000,000 shares authorized, no shares issued and outstanding at June 30, 2024 and March 31, 2024 | - | - | ||||||
| Common Stock, par value $0.001, 250,000,000 shares authorized, 19,904,852 and 17,058,620 issued and outstanding at June 30, 2024 and March 31, 2024, respectively | 19,905 | 17,059 | ||||||
| Additional Paid-In Capital | 85,655,985 | 83,468,218 | ||||||
| Accumulated Deficit | (84,846,387 | ) | (82,799,324 | ) | ||||
| Total Stockholders' Equity | 829,503 | 685,953 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 2,888,930 | $ | 3,115,253 | ||||
PETVIVO HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended | |||||||||
| June 30, 2024 | June 30, 2023 | ||||||||
| Revenues | $ | 123,751 | $ | 117,183 | |||||
| Cost of Sales | 12,994 | 12,304 | |||||||
| Gross Profit | 110,757 | 104,879 | |||||||
| Operating Expenses: | |||||||||
| Sales and Marketing | 534,413 | 941,886 | |||||||
| General and administrative | 1,233,261 | 1,762,798 | |||||||
| Research and development | 387,515 | 293,772 | |||||||
| Total Operating Expenses | 2,155,189 | 2,998,456 | |||||||
| Operating Loss | (2,044,432 | ) | (2,893,577 | ) | |||||
| Other Income (Expense) | |||||||||
| Interest expense | (2,631 | ) | - | ||||||
| Total Other Income (Expense) | (2,631 | ) | - | ||||||
| Loss before taxes | (2,047,063 | ) | (2,893,577 | ) | |||||
| Income Tax Provision | - | - | |||||||
| Net Loss | $ | (2,047,063 | ) | $ | (2,893,577 | ) | |||
| Net Loss Per Share: | |||||||||
| Basic and Diluted | $ | (.11) | $ | (0.25 | ) | ||||
| Weighted Average Common Shares Outstanding: | |||||||||
| Basic and Diluted | 18,683,975 | 11,657,035 | |||||||
