PetVivo Holdings, Inc. (Nasdaq: PETV
and
PETVW), an emerging biomedical device
company focused on the commercialization of innovative medical
therapeutics for animals, announces financial results for its
fiscal year ended March 31, 2022.
Key highlights for our fiscal year ended March 31, 2022,
were:
- Raised $11.25
million in uplisting to Nasdaq in August 2021
- Generation of
over $100,000 in revenue from sales of our lead product, Spryng™
with OsteoCushion™ Technology
- Rebranding of
Spryng™, launch of Sprynghealth.com and PetVivo.com websites
- Partnered with
Ethos on canine tolerance and efficacy study
- Attracted an
experienced management team to lead the Company
Management Commentary
“The most significant event on our financial
results during the fiscal year ended March 31, 2022, was our
generation of over $100,000 in revenues from the commercialization
and sale of our primary product, Spryng™, to veterinary clinics.”
Said John Lai, Chief Executive Officer of PetVivo.
“We continue to use the proceeds from our
initial public offering to expand our sales and marketing efforts
to generate clinical data to gain vet acceptance and generate
increased revenue from the sale of Spryng™”.
Fiscal Year Ended March 31, 2022
(“fiscal 2022”) Compared to The Year Ended March 31, 2021 (“fiscal
2021”)
Total Revenues. Revenues
increased to $115,586 in fiscal 2022 compared to $12,578 in fiscal
2021 and consisted of sales to veterinary clinics. The Company
began commercialization of its Spryng™ product in September
2021.
Total Cost of Sales. Cost of
sales was $201,154 in fiscal 2022 compared to $10,695 for fiscal
2021. The increase is directly related to increased sales of the
Spryng™ product. Cost of sales includes product costs related to
the sale of products and labor and overhead costs. The increase and
the negative gross margin are primarily attributed to our product
costs and related product launch expenses from the
commercialization of Spryng™ in September 2021.
Operating Expenses. Operating
expenses increased to $4,970,960 in fiscal 2022 compared to
$1,960,871 in fiscal 2021. Operating expenses consisted of general
and administrative, sales and marketing, and research and
development expenses. The increase is primarily due to increased
G&A expenses and sales and marketing expenses related to the
sale of our Spryng™ product.
General and administrative (“G&A”) expenses
were $3,148,494 and $1,767,664 in fiscal 2022 and 2021,
respectively. General and administrative expenses include
compensation and benefits, contracted services, consulting fees,
stock compensation and incremental public company costs.
Sales and marketing expenses were $1,347,585 and
$94,997 in fiscal 2022 and 2021, respectively. Sales and marketing
expenses include compensation, consulting, tradeshows, and stock
compensation costs to support the launch of our Spryng™
product.
Research and development (“R&D”) expenses
were $474,881 and $98,230 in fiscal 2022 and 2021, respectively.
The increase was related to clinical studies and efforts to support
the launch of Spryng™.
Operating Loss. As a result of
the foregoing, the Company’s operating loss was $5,056,528 and
$1,958,988 in fiscal 2022 and 2021, respectively. The increase was
related to the costs to support the launch of Spryng™ and the
incremental public company costs.
Other Income (Expense). Other
income was $41,533 in fiscal 2022 as compared to expense of
$1,563,792 in fiscal 2021. Other income in fiscal 2022 consisted of
the forgiveness of PPP Loan of $31,680 and net interest income of
$9,853. Other expense in fiscal 2021 consisted primarily of
derivative expense related to debt financing of $1,702,100 and
interest expense of $228,595 partially offset by a gain on debt
extinguishment of $366,903.
Net Loss. The Company’s net
loss in fiscal 2022 was $5,014,995 or ($0.57) as compared to a net
loss of $3,522,780 or ($0.57) per share in fiscal 2021. The
weighted average number of shares outstanding was 8,760,877
compared to 6,198,717 for fiscal 2022 and 2021, respectively.
Balance Sheet and Inventory
At March 31, 2022, the Company had $6.1 million
in cash and working capital of $5.6 million. The Company increased
its inventory to $98,000 as of March 31, 2022 in order to support
its expected revenue growth in 2023.
Business Update
In the first quarter of fiscal 2023, the Company
entered into a Distribution Services Agreement with MWI
Veterinarian Supply Co., a pre-eminent national distributor of
veterinarian products (“MWI”). Pursuant to this agreement, we
appointed MWI to distribute, advertise, promote, market, supply and
sell our lead product, Spryng™ and other products on an exclusive
basis for two (2) years within the United States.
Conference Call and Webcast
A live webcast of the conference call and
related earnings release materials can be accessed on PetVivo’s
Investor Relations website at:
https://audience.mysequire.com/webinar-view?webinar_id=4247f378-9329-46f0-adcf-44720e7f5ae6
A replay of the webcast will be available
through the same link following the conference call. Participants
can also access the call using the dial-in details below:
Date: Wednesday, June 29th, 2022Time: 4:00 p.m CT (5:00 pm
ET)Dial-in: +1-346-248-7799Meeting ID: 97245185036Passcode:
740720
About PetVivo Holdings, Inc.
PetVivo Holdings, Inc. is an emerging biomedical
device company currently focused on the manufacturing,
commercialization, and licensing of innovative medical devices and
therapeutics for animals. The Company's strategy is to leverage
human therapies for the treatment of dogs and horses in a capital
and time-efficient way. A key component of this strategy is the
accelerated timeline to revenues for veterinary medical devices,
which entered the market much earlier than more stringently
regulated pharmaceuticals and biologics.
PetVivo has a pipeline of seventeen products for
the treatment of animals and people. A portfolio of twenty-one
patents protects the Company's biomaterials, products, production
processes, and methods of use. The Company’s lead product SPRYNG™,
a veterinarian-administered intraarticular injection for the
management of lameness and joint afflictions, such as
osteoarthritis, in dogs and horses, is scheduled for expanded
commercial sale in the fourth quarter of this year.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. 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, 2021, 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.
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.
Contact:
John Lai, CEOPetVivo Holdings, Inc.Email: info1@petvivo.com(952)
405-6216
PETVIVO HOLDINGS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
March 31, 2022 |
|
|
March 31, 2021 |
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,106,827 |
|
|
$ |
23,578 |
|
Accounts receivable |
|
|
2,596 |
|
|
|
- |
|
Inventory, net |
|
|
98,313 |
|
|
|
- |
|
Prepaid expenses and other assets |
|
|
547,664 |
|
|
|
123,575 |
|
Total Current Assets |
|
|
6,755,400 |
|
|
|
147,153 |
|
|
|
|
|
|
|
|
|
|
Property and Equipment, net |
|
|
311,549 |
|
|
|
214,038 |
|
|
|
|
|
|
|
|
|
|
Other Assets: |
|
|
|
|
|
|
|
|
Deferred offering costs |
|
|
- |
|
|
|
280,163 |
|
Operating lease right-of-use asset |
|
|
299,101 |
|
|
|
157,760 |
|
Patents and trademarks, net |
|
|
48,452 |
|
|
|
27,932 |
|
Security deposits |
|
|
12,830 |
|
|
|
8,201 |
|
Total Other Assets |
|
|
360,383 |
|
|
|
474,056 |
|
Total Assets |
|
$ |
7,427,332 |
|
|
$ |
835,247 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
323,384 |
|
|
$ |
408,873 |
|
Accrued expenses |
|
|
784,375 |
|
|
|
554,012 |
|
Convertible notes and accrued interest |
|
|
- |
|
|
|
235,671 |
|
Accrued expenses – related parties |
|
|
- |
|
|
|
36,808 |
|
Operating lease liability – current portion |
|
|
59,178 |
|
|
|
26,582 |
|
PPP Loan and accrued interest |
|
|
- |
|
|
|
39,020 |
|
Notes payable and accrued interest - directors |
|
|
- |
|
|
|
20,000 |
|
Notes payable and accrued interest – related party |
|
|
- |
|
|
|
44,554 |
|
Note payable and accrued interest (current portion) |
|
|
6,549 |
|
|
|
39,528 |
|
Total Current Liabilities |
|
|
1,173,486 |
|
|
|
1,405,048 |
|
Other Liabilities |
|
|
|
|
|
|
|
|
Note payable and accrued interest (net of current
portion) |
|
|
27,201 |
|
|
|
- |
|
Operating lease liability (net of current portion) |
|
|
239,923 |
|
|
|
131,178 |
|
Share-settled debt obligation – related party, net of debt
discount |
|
|
- |
|
|
|
196,000 |
|
Total Other Liabilities |
|
|
267,124 |
|
|
|
327,178 |
|
Total Liabilities |
|
|
1,440,610 |
|
|
|
1,732,226 |
|
Commitments and Contingencies (see Note 13) |
|
|
|
|
|
|
|
|
Stockholders’ Equity (Deficit): |
|
|
|
|
|
|
|
|
Preferred stock, par value $0.001, 20,000,000 shares
authorized, issued 0 and 0 shares outstanding at March 31, 2022 and
March 31, 2021 |
|
|
- |
|
|
|
- |
|
Common stock, par value $0.001, 250,000,000 shares authorized,
issued 9,988,361 and 6,799,113 shares outstanding at March 31, 2022
and March 31, 2021, respectively |
|
|
9,988 |
|
|
|
6,799 |
|
Additional Paid-In Capital |
|
|
69,103,155 |
|
|
|
57,207,648 |
|
Accumulated Deficit |
|
|
(63,126,421 |
) |
|
|
(58,111,426 |
) |
Total Stockholders’ Equity (Deficit) |
|
|
5,986,722 |
|
|
|
(896,979 |
) |
Total Liabilities and Stockholders’ Equity (Deficit) |
|
$ |
7,427,332 |
|
|
$ |
835,247 |
|
The accompanying notes are an integral part of
these audited consolidated financial statements.
PETVIVO HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Year EndedMarch 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenues |
|
$ |
115,586 |
|
|
$ |
12,578 |
|
|
|
|
|
|
|
|
|
|
Cost of Sales |
|
|
201,154 |
|
|
|
10,695 |
|
Gross Profit (Loss) |
|
|
(85,568 |
) |
|
|
1,883 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Marketing |
|
|
1,347,585 |
|
|
|
94,977 |
|
Research and Development |
|
|
474,881 |
|
|
|
98,230 |
|
General and Administrative |
|
|
3,148,494 |
|
|
|
1,767,664 |
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
4,970,960 |
|
|
|
1,960,871 |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(5,056,528 |
) |
|
|
(1,958,988 |
) |
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
Gain on Debt Extinguishment |
|
|
- |
|
|
|
366,903 |
|
Forgiveness of PPP loan and accrued interest |
|
|
31,680 |
|
|
|
- |
|
Derivative Expense |
|
|
- |
|
|
|
(1,702,100 |
) |
Interest Income (Expense) |
|
|
9,853 |
|
|
|
(228,595 |
) |
Total Other Income (Expense) |
|
|
41,533 |
|
|
|
(1,563,792 |
) |
|
|
|
|
|
|
|
|
|
Net Loss before taxes |
|
|
(5,014,995 |
) |
|
|
(3,522,780 |
) |
|
|
|
|
|
|
|
|
|
Income Tax Provision |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(5,014,995 |
) |
|
$ |
(3,522,780 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Per Share: |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(0.57 |
) |
|
$ |
(0.57 |
) |
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
8,760,877 |
|
|
|
6,198,717 |
|
The accompanying notes are an integral part of
these audited consolidated financial statements.Shares
retroactively restated for 1-for-4 reverse stock split in December
of 2020.
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