PetVivo Reports Second Quarter of Fiscal 2024 Financial Results
PetVivo Holdings, Inc. (Nasdaq: PETV) announces financial results for the three months ended September 30, 2023. Key highlights include the release of clinical study results for Spryng™, raising $2.35 million from stock offerings, and entering into an ATM Sales Agreement with ThinkEquity, LLC.
Positive
Positive clinical study results for Spryng™ demonstrate its benefit and tolerability for dogs with suspected cruciate ligament rupture, showing potential for market growth. The successful fundraising activities indicate investor confidence in the company's future. The ATM Sales Agreement provides a flexible financing option for future capital needs.
11/14/2023 - 03:00 PM
Conference call begins at 4:00 p.m. Central time today
EDINA, MN, Nov. 14, 2023 (GLOBE NEWSWIRE) -- PetVivo Holdings, Inc. (Nasdaq: PETV) , an emerging biomedical device company focused on the commercialization of innovative medical therapeutics for animals, announces financial results for the three months ended September 30, 2023 (“second quarter of 2024”).
Key highlights from the second quarter of 2024 and through November 14, 2023, include the following:
Released clinical study results which demonstrate the benefit and tolerability of an intra-articular injection of Spryng™ into the stifle joint for dogs with suspected cruciate ligament rupture (similar to ACL tear in humans); Raised $2.35 million from the sale of the Company’s common stock in a convertible note offering and a registered direct offering in the second quarter of 2024; Entered into an At-The-Market Sales Agreement (“ATM Sales Agreement”) with ThinkEquity, LLC for the sale of shares of the Company’s common stock with an aggregate offering price of up to $2.5 million . Subsequent to September 30, 2023, the Company raised an aggregate of $870,000 in gross proceeds from sales under its ATM Sales Agreement.
Management Commentary
“We are excited about the progress the Company has made this past quarter, including the recent release to the veterinary community of beneficial clinical trial results related to PetVivo’s innovative medical device, Spryng™ with OsteoCushion™ Technology,” said John Lai, Chief Executive Officer of PetVivo Holdings, Inc. “The clinical trial data and corresponding results, provided by Ethos Veterinary Health, a nationally renowned operator of 145 world-class specialty veterinary hospitals, indicated significant improvement in the thirty-nine dogs injected with Spryng. All primary and secondary clinical endpoints related to pain, lameness and quality of life were achieved. This clinical trial demonstrates that Spryng™ is a reasonable, non-invasive alternative for patients with cranial cruciate disease (“CCD”) when patient and/or owner factors preclude surgical intervention.”
Second Quarter Financial Results
For The Three Months Ended September 30, 2023 Compared to The Three Months Ended September 30, 2022
Total Revenues $207,366 and $223,280 for three months ended September 30, 2023 and 2022, respectively. Revenues in the three months ended September 30, 2023 consist of sales of our Spryng™ product to MWI Veterinary Supply Co. (“our Distributor”) of $143,606 and to veterinary clinics in the amount of $63,760. In the three months ended September 30, 2022, our revenues of $223,280 consisted of sales of our Spryng™ product to our Distributor of $118,264 and to veterinary clinics in the amount of $105,016.
Cost of Sales $140,913 and $148,149 for the three months ended September 30, 2023 and 2022, respectively. Cost of sales includes product costs related to the sale of our Spryng™ product and labor and overhead costs.
Operating Expenses $3,010,796 and $2,194,689 for the three months ended September 30, 2023 and 2022, respectively. Operating expenses consisted of general and administrative, sales and marketing, and research and development expenses. The increase is primarily due to increased general and administrative expenses and sales and marketing expenses related to the sale of our Spryng™ product.
Operating Loss $2,944,343 and $2,119,568 for the three months ended September 30, 2023 and 2022, respectively. The increase was related to costs to support the launch of Spryng™ .
Other (Expense) Income. $716,810 for the three months ended September 30, 2023 as compared to other income of $7,979 for the three months ended September 30, 2022. Other expense in 2023 consisted of a loss on extinguishment of debt of $534,366 , a settlement to a former employee and interest expense. Other income in 2022 consisted of net interest income.
Net Loss $3,661,153 or ($0.28) per share as compared to a net loss of $2,111,589 or ($0.21) per share for the three months ended September 30, 2022. The increase was related to the costs to support the launch of Spryng™ and loss on extinguishment of debt. The weighted average number of shares outstanding was 12,987,641 and 10,053,463 for the three months ended September 30, 2023 and 2022, respectively.
Year to Date Financial Results
Revenues $324,549 for six the months ended September 30, 2023 compared to revenues of $281,454 in the six months ended September 30, 2022. Revenues in the six months ended September 30, 2023 consisted of sales of our Spryng™ product to our Distributor of $177,395 and to veterinary clinics in the amount of $147,154. In the six months ended September 30, 2022, our revenues of $281,454 consisted of sales of our Spryng™ product to our Distributor of $118,264 and to veterinary clinics in the amount of $163,190.
Cost of Sales $223,183 and $201,179 for the six months ended September 30, 2023 and 2022, respectively. Cost of sales includes product costs related to the sale of products and labor and overhead costs.
Operating Expenses $5,939,287 and $4,165,936 for the six months ended September 30, 2023 and 2022, respectively. Operating expenses consisted of general and administrative, sales and marketing, and research and development expenses. The increase is primarily due to increased general and administrative expenses and sales and marketing expenses related to the sale of our Spryng™ product.
Operating Loss $5,837,920 and $4,085,661 for the six months ended September 30, 2023 and 2022, respectively. The increase in our operating loss, was related to the costs to support the launch of Spryng™ , stock issued for services and stock compensation.
Other (Expense) Income. $716,810 for the six months ended September 30, 2023 as compared to other income of $8,644 for the six months ended September 30, 2022. Other expense in 2023 consisted of a loss on extinguishment of debt of $534,366 , a settlement to a former employee and interest expense. Other income in 2022 consisted of interest income.
Net Loss $6,554,730 or ($0.53) per share as compared to a net loss of $4,077,017 or ($0.41) per share for the six months ended September 30, 2022. The weighted average number of shares outstanding was 12,325,973 and 10,021,090 for the six months ended September 30, 2023 and 2022, respectively.
Balance Sheet and Inventory
As of September 30, 2023, our current assets were $2,015,826 , including $55,254 in cash and cash equivalents. Our working capital as of September 30, 2023 was $100,517.
Conference Call and Webcast
A live webcast of the conference call and related earnings release materials can be accessed on the Company’s Investor Relations website at:
https://audience.mysequire.com/webinar-view?webinar_id=13014345-4054-48e0-b0d9-f0b425d9e51c
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: November 14, 2023
About PetVivo Holdings, Inc.
PetVivo Holdings, Inc. (the “Company”) is in the business of licensing and commercializing its proprietary medical devices and biomaterials for the treatment and/or management of afflictions and diseases in animals, initially for dogs and horses. The Company began commercialization of its lead product Spryng™ with OsteoCushion™ Technology, a veterinarian-administered, intraarticular injection for the management of lameness and other joint afflictions such as osteoarthritis in dogs and horses in September 2021. The Company has a pipeline of additional products for the treatment of animals in various stages of development. A portfolio of twenty patents protects the Company’s biomaterials, products, production processes and methods of use.
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, 2023, 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
The Company 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: info1@petvivo.com
(Tables to follow)
PETVIVO HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, 2023 (Unaudited) March 31, 2023 Assets: Current Assets Cash and cash equivalents $ 55,254 $ 475,314 Accounts receivable 155,888 86,689 Inventory 434,080 370,283 Prepaid expenses and other assets 1,370,604 491,694 Total Current Assets 2,015,826 1,423,980 Property and Equipment, net 665,381 630,852 Other Assets: Operating lease right-of-use asset 1,318,666 317,981 Patents and trademarks, net 34,374 38,649 Security deposit 27,490 27,490 Total Other Assets 1,380,530 384,120 Total Assets $ 4,061,737 $ 2,438,952 Liabilities and Stockholders’ Equity: Current Liabilities Accounts payable $ 912,040 $ 588,713 Accrued expenses 818,357 779,882 Operating lease liability – short term 177,773 78,149 Note payable and accrued interest 7,139 6,936 Total Current Liabilities 1,915,309 1,453,680 Non-Current Liabilities Note payable and accrued interest (net of current portion) 16,856 20,415 Operating lease liability (net of current portion) 1,140,893 239,832 Total Non-Current Liabilities 1,157,749 260,247 Total Liabilities 3,073,058 1,713,927 Commitments and Contingencies Stockholders’ Equity: Preferred Stock, par value $0.00 1, 20,000,000 shares authorized, no shares issued and outstanding at September 30, 2023 and March 31, 2023 - - Common Stock, par value $0.00 1, 250,000,000 shares authorized, 13,841,731 and 10,950,220 issued and outstanding at September 30, 2023 and March 31, 2023, respectively 13,842 10,950 Common Stock to be Issued - 137,500 Additional Paid-In Capital 79,373,596 72,420,604 Accumulated Deficit (78,398,759 ) (71,844,029 ) Total Stockholders’ Equity 988,679 725,025 Total Liabilities and Stockholders’ Equity $ 4,061,737 $ 2,438,952
PETVIVO HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended September 30, Six Months Ended September 30, 2023 2022 2023 2022 Revenues $ 207,366 $ 223,280 $ 324,549 $ 281,454 Cost of Sales 140,913 148,159 223,182 201,179 Gross Profit 66,453 75,121 101,367 80,275 Operating Expenses: Sales and Marketing 1,078,725 867,985 2,020,611 1,524,554 Research and Development 240,281 140,384 464,088 212,040 General and Administrative 1,691,790 1,186,320 3,454,588 2,429,342 Total Operating Expenses 3,010,796 2,194,689 5,939,287 4,165,936 Operating Loss (2,944,343 ) (2,119,568 ) (5,837,920 ) (4,085,661 ) Other (Expense) Income Loss on Extinguishment of Debt (534,366 ) - (534,366 ) - Settlement Expense (180,000 ) - (180,000 ) - Interest (Expense) Income (2,444 ) 7,979 (2,444 ) 8,644 Total Other (Expense) Income (716,810 ) 7,979 (716,810 ) 8,644 - - - - Loss before taxes (3,661,153 ) (2,111,589 ) (6,554,730 ) (4,077,017 ) Income Tax Provision - - - - Net Loss $ (3,661,153 ) $ (2,111,589 ) $ (6,554,730 ) $ (4,077,017 ) Net Loss Per Share: Basic and Diluted $ (0.28 ) $ (0.21 ) $ (0.53 ) $ (0.41 ) Weighted Average Common Shares Outstanding: Basic and Diluted 12,987,641 10,053,463 12,325,973 10,021,090
What are the key highlights of PetVivo Holdings, Inc.'s financial results for the three months ended September 30, 2023?
The key highlights include the release of clinical study results for Spryng™, raising $2.35 million from stock offerings, and entering into an ATM Sales Agreement with ThinkEquity, LLC.
What is the clinical study results for Spryng™?
The clinical study results demonstrate the benefit and tolerability of an intra-articular injection of Spryng™ into the stifle joint for dogs with suspected cruciate ligament rupture, showing potential for market growth.
How much did PetVivo Holdings, Inc. raise from stock offerings?
The company raised $2.35 million from the sale of common stock in a convertible note offering and a registered direct offering in the second quarter of 2024, and an aggregate of $870,000 in gross proceeds from sales under its ATM Sales Agreement after September 30, 2023.
What is the ATM Sales Agreement with ThinkEquity, LLC?
The ATM Sales Agreement allows the sale of shares of the Company’s common stock with an aggregate offering price of up to $2.5 million, providing a flexible financing option for future capital needs.
