PetVivo Holdings, Inc. (“PetVivo” or the “Company”) (Nasdaq: PETV),
an emerging biomedical device company focused on the
commercialization of innovative medical therapeutics for animals,
announces financial results for the second quarter of fiscal year
2023. The Company began commercialization of its lead product
Spryng™ with OsteoCushion™ Technology, a veterinarian-administered,
intra-articular injection for the management of lameness and other
joint afflictions such as osteoarthritis in dogs and horses, in
September 2021.
Highlights from the second quarter of fiscal
year 2023 and recent weeks include the following (all comparisons
are with the second quarter of fiscal year 2022, unless otherwise
indicated):
- Revenues of $223,280 for the three
months ended September 30, 2022, compared to revenues of $4,977 in
the three months ended September 30, 2021;
- Net revenue of $118,264 was from
shipments of Spryng™ to MWI Animal Health, a leading distributor of
animal health products (“Distributor” or “MWI”), pursuant to our
Distribution and Sales Agreement with MWI dated June 17, 2022
(“Distribution Agreement”).
Management Commentary
John Lai, CEO, commented, “I am excited to
report that we began shipping our products to MWI in the second
quarter of fiscal 2023 pursuant to our Distribution Agreement. We
are happy with the sell-through of our products by MWI and will
continue to educate and support MWI’s over 400 territory managers
about our solution for treating horses and dogs which have lameness
due to synovial joint issues.
I am also happy to report that we have expanded
our national presence and have opened up accounts with veterinary
clinics in 47 states.”
Second Quarter Financial
Results
Revenues. Revenues were
$223,280 for the three months ended September 30, 2022 compared to
revenues of $4,977 for the three months ended September 30, 2021.
Revenues in the three months ended September 30, 2022 consisted of
sales of our Spryng™ product to veterinary clinics in the amount of
$105,016 and to our Distributor of $118,264, respectively. In the
three months ended September 30, 2021, our revenues of $4,977
consisted of sales to veterinary clinics. The increase in our
revenues in the three months ended September 30, 2022 is due to (i)
increased sales to veterinary clinics due to our marketing and
other commercialization efforts which began in September 2021, and
(ii) sales to our Distributor pursuant to our Distribution
Agreement.
Cost of Sales. Cost of sales
was $148,159 and $0 for the three months ended September 30, 2022
and 2021, respectively. Cost of sales includes product costs
related to the sale of our Spryng™ products and labor and overhead
costs. The Company began commercialization of its Spryng™ product
in September 2021, which resulted in increased cost of sales in the
three months ended September 30, 2022, compared to the same period
in the prior year.
Operating Expenses. Operating
expenses were $2,194,689 and $1,108,333 for the three months ended
September 30, 2022 and 2021, respectively. Operating expenses
consisted of general and administrative, sales and marketing, and
research and development expenses. The Company began
commercialization of its Spryng™ product in September 2021, which
resulted in increased general and administrative expenses, and
sales and marketing expenses related to the sale of its Spryng™
product and incremental public company costs in the three months
ended September 30, 2022, compared to the same period in the prior
year.
Operating Loss. As a result of
the foregoing, our operating loss was $2,119,568 and $1,103,356 for
the three months ended September 30, 2022 and 2021, respectively.
The increase in our operating loss was related to the increased
operating expenses incurred to support the launch of Spryng™ and
the incremental public company costs incurred in the three months
ended September 30, 2022, compared to the same period in the prior
year.
Other Income (Expense). Other
income was $7,979 for the three months ended September 30, 2022 as
compared to other expense of $2,118 for the three months ended
September 30, 2021. Other income in 2022 consisted of net interest
income. Other expense in 2021 consisted of net interest
expense.
Net Loss. Our net loss for the
three months ended September 30, 2022 was $2,111,589 or ($0.21) per
share compared to a net loss of $1,105,474 or ($0.13) per share for
the three months ended September 30, 2021. The increase in our net
loss was related to the increased operating expenses incurred to
support the launch of Spryng™ and the incremental public company
costs compared to the same period in the prior year. The weighted
average number of shares outstanding was 10,053,463 compared to
8,749,233 for the three months ended September 30, 2022 and 2021,
respectively.
Year to Date Financial
Results
Revenues. Revenues were
$281,454 for the six months ended September 30, 2022 compared to
revenues of $9,122 for the six months ended September 30, 2021.
Revenues in the six months ended September 30, 2022 consisted of
sales of our Spryng™ product to veterinary clinics in the amount of
$163,190 and to our Distributor in the amount of $118,264,
respectively. In the six months ended September 30, 2021, our
revenues of $9,122 consisted of sales to veterinary clinics. The
increase in our revenues in the six months ended September 30, 2022
is due to (i) increased sales to veterinary clinics due to our
marketing and other commercialization efforts which began in
September 2021, and (ii) sales to our Distributor pursuant to the
Distribution Agreement.
Cost of Sales. Cost of sales
was $201,179 and $5,051 for the six months ended September 30, 2022
and 2021, respectively. Cost of sales includes product costs
related to the sale of products and labor and overhead costs. The
Company began commercialization of its Spryng™ product in September
2021, which resulted in increased cost of sales in the six months
ended September 30, 2022, compared to the same period in the prior
year.
Operating Expenses. Operating
expenses were $4,165,936 and $1,625,946 for the six months ended
September 30, 2022 and 2021, respectively. Operating expenses
consisted of general and administrative, sales and marketing, and
research and development expenses. The Company began
commercialization of its Spryng™ product in September 2021, which
resulted in increased general and administrative expenses and sales
and marketing expenses related to the sale of its Spryng™ product
and incremental public company costs in the six months ended
September 30, 2022, compared to the same period in the prior
year.
Operating Loss. As a result of
the foregoing, our operating loss was $4,085,661 and $1,621,875 for
the six months ended September 30, 2022 and 2021, respectively. The
increase in our operating loss was related to the costs to support
the launch of Spryng™ and the incremental public company costs
incurred in the six months ended September 30, 2022, compared to
the same period in the prior year.
Other Income. Other income was
$8,644 for the six months ended September 30, 2022 compared to
other income of $25,772 for the six months ended September 30,
2021. Other income in 2022 consisted of net interest income. Other
income in 2021 consisted of the forgiveness of PPP loan and accrued
interest of $31,680 partially offset by interest expense of
$5,908.
Net Loss. Our net loss for the
six months ended September 30, 2022 was $4,077,017 or ($0.41) per
share compared to a net loss of $1,596,103 or ($0.21) per share for
the six months ended September 30, 2021. The weighted average
number of shares outstanding was 10,021,090 compared to 7,757,099
for the six months ended September 30, 2022 and 2021,
respectively.
Balance Sheet and Inventory
On September 30, 2022, the Company had $2.3
million in cash and working capital of $2.1 million. The Company
increased its inventory to $304,967 as of September 30, 2022 in
order to support its expected revenue growth in 2023.
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=2c1ffe65-2a6d-4b5d-9931-4bcdab01365a
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: Thursday, November 10, 2022Time: 4:00 p.m
CT (5:00 pm ET)Dial-in number: +1 (669) 444-9171Conference ID:
93383649430Passcode: 182084
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 enter the market much earlier than more stringently regulated
pharmaceuticals and biologics.
PetVivo has a pipeline of additional products
for the treatment of animals and people. A portfolio of nineteen
patents protects the Company’s biomaterials, products, production
processes, and methods of use. The Company’s lead product is
Spryng™, a veterinarian-administered, intraarticular injection for
the treatment of osteoarthritis in dogs and horses.
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, 2022, 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
|
|
September 30,
2022(Unaudited) |
|
|
March 31, 2022 |
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,337,093 |
|
|
$ |
6,106,827 |
|
Accounts receivable |
|
|
129,142 |
|
|
|
2,596 |
|
Inventory, net |
|
|
304,967 |
|
|
|
98,313 |
|
Prepaid expenses and other assets |
|
|
612,128 |
|
|
|
547,664 |
|
Total Current Assets |
|
|
3,383,330 |
|
|
|
6,755,400 |
|
|
|
|
|
|
|
|
|
|
Property and Equipment,
net |
|
|
341,071 |
|
|
|
311,549 |
|
|
|
|
|
|
|
|
|
|
Other Assets: |
|
|
|
|
|
|
|
|
Operating lease right-of-use |
|
|
269,592 |
|
|
|
299,101 |
|
Patents and trademarks, net |
|
|
43,986 |
|
|
|
48,452 |
|
Security deposit |
|
|
12,830 |
|
|
|
12,830 |
|
Total Other Assets |
|
|
326,408 |
|
|
|
360,383 |
|
Total Assets |
|
$ |
4,050,809 |
|
|
$ |
7,427,332 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
422,141 |
|
|
$ |
323,384 |
|
Accrued expenses |
|
|
765,086 |
|
|
|
784,375 |
|
Operating lease liability – short term |
|
|
59,807 |
|
|
|
59,178 |
|
Note payable and accrued interest |
|
|
6,737 |
|
|
|
6,549 |
|
Total Current Liabilities |
|
|
1,253,771 |
|
|
|
1,173,486 |
|
Other Liabilities |
|
|
|
|
|
|
|
|
Note payable and accrued interest (net of current portion) |
|
|
23,868 |
|
|
|
27,201 |
|
Operating lease liability (net of current portion) |
|
|
209,785 |
|
|
|
239,923 |
|
Total Other Liabilities |
|
|
233,653 |
|
|
|
267,124 |
|
Total Liabilities |
|
|
1,487,424 |
|
|
|
1,440,610 |
|
Commitments and
Contingencies |
|
|
- |
|
|
|
- |
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
Preferred stock, par value
$0.001, 20,000,000 shares authorized, 0 and 0 shares issued and
outstanding at September 30, 2022 and March 31, 2022 |
|
|
- |
|
|
|
- |
|
Common stock, par value
$0.001, 250,000,000 shares authorized, 10,095,275 and 9,988,361
shares issued and outstanding at September 30, 2022 and March 31,
2022, respectively |
|
|
10,095 |
|
|
|
9,988 |
|
Additional Paid-In Capital |
|
|
69,756,728 |
|
|
|
69,103,155 |
|
Accumulated Deficit |
|
|
(67,203,438 |
) |
|
|
(63,126,421 |
) |
Total Stockholders’ Equity |
|
|
2,563,385 |
|
|
|
5,986,722 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
4,050,809 |
|
|
$ |
7,427,332 |
|
PETVIVO HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)
|
|
Three Months Ended September 30, |
|
|
Six Months Ended September 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenues |
|
$ |
223,280 |
|
|
$ |
4,977 |
|
|
$ |
281,454 |
|
|
$ |
9,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Sales |
|
|
148,159 |
|
|
|
- |
|
|
|
201,179 |
|
|
|
5,051 |
|
Gross Profit |
|
|
75,121 |
|
|
|
4,977 |
|
|
|
80,275 |
|
|
|
4,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Marketing |
|
|
867,985 |
|
|
|
235,767 |
|
|
|
1,524,554 |
|
|
|
285,498 |
|
Research and Development |
|
|
140,384 |
|
|
|
116,380 |
|
|
|
212,040 |
|
|
|
253,317 |
|
General and Administrative |
|
|
1,186,320 |
|
|
|
756,186 |
|
|
|
2,429,342 |
|
|
|
1,087,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
|
2,194,689 |
|
|
|
1,108,333 |
|
|
|
4,165,936 |
|
|
|
1,625,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(2,119,568 |
) |
|
|
(1,103,356 |
) |
|
|
(4,085,661 |
) |
|
|
(1,621,875 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forgiveness of PPP loan and accrued interest |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
31,680 |
|
Interest Income (Expense) |
|
|
7,979 |
|
|
|
(2,118 |
) |
|
|
8,644 |
|
|
|
(5,908 |
) |
Total Other Income (Expense) |
|
|
7,979 |
|
|
|
(2,118 |
) |
|
|
8,644 |
|
|
|
25,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxes |
|
|
(2,111,589 |
) |
|
|
(1,105,474 |
) |
|
|
(4,077,017 |
) |
|
|
(1,596,103 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Provision |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net Loss |
|
$ |
(2,111,589 |
) |
|
$ |
(1,105,474 |
) |
|
$ |
(4,077,017 |
) |
|
$ |
(1,596,103 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.41 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
10,053,463 |
|
|
|
8,749,233 |
|
|
|
10,021,090 |
|
|
|
7,757,099 |
|
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