PetVivo (PETV) Q1 2025 earnings summary

Executive summary

• Achieved strong financial and operational progress in fiscal Q1 2025, driven by the rollout of Spryng, an intra-articular injectable veterinary device for osteoarthritis in animals, with distribution expanded to over 800 clinics and more than 10,000 animals treated.

• PetVivo Holdings focuses on commercializing veterinary medical devices, with Spryng™ as its lead product for treating osteoarthritis in dogs and horses, operating as a single business segment and expanding its distribution network through agreements with MWI and Covetrus.

• Recent restructuring, including executive salary reductions and key hires in sales and marketing, aims to accelerate adoption and market penetration, especially in the companion animal segment.

• Securities were suspended and are pending delisting from Nasdaq following a hearing panel decision.

Financial highlights

• Revenue for the quarter ended June 30, 2024 was $124,000, up 6% year-over-year, with distributor sales up 102% to $68,000 and direct clinic sales down 33% to $55,000 due to a channel shift.

• Gross profit was $111,000, maintaining a high gross margin of 89.5%, with cost of sales at $12,994.

• Operating expenses decreased 28% to $2.2 million, reflecting cost reduction and restructuring.

• Net loss improved to $2,047,063 ($0.11 per share), compared to $2,893,577 ($0.25 per share) in the prior year.

• Net cash used in operating activities decreased 29% year-over-year to $1,530,469.

Outlook and guidance

• Management reiterated revenue guidance of $1.5 million (50% growth) to $2 million (100% growth) for the fiscal year.

• Proceeds of $1,218,000 from a private placement of Series A preferred stock are expected to fund operations for at least the next three months, but additional capital will be required to support commercialization and ongoing operations.

• Plans to add 10 additional sales reps in the next 12 months to target the companion animal market and expand product pipeline and manufacturing capacity.

• Anticipates continued strong clinic adoption and increased brand awareness through expanded marketing and educational initiatives.