PetVivo (PETV) - 2022 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements The financial statements for the period ended September 30, 2021, show significant improvement in financial position due to a public offering, increasing assets and equity while reducing net loss Condensed Consolidated Balance Sheets The balance sheet significantly strengthened by September 30, 2021, with total assets increasing to $9.9 million and equity turning positive Condensed Consolidated Balance Sheet Highlights (Unaudited) | Financial Metric | September 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $8,817,472 | $23,578 | | Total Current Assets | $9,510,922 | $147,153 | | Total Assets | $9,914,124 | $835,247 | | Liabilities & Equity | | | | Total Current Liabilities | $1,217,733 | $1,405,048 | | Total Liabilities | $1,365,870 | $1,732,226 | | Total Stockholders' Equity (Deficit) | $8,548,254 | $(896,979) | Condensed Consolidated Statements of Operations Net loss decreased for both three and six-month periods ended September 30, 2021, primarily due to the absence of derivative expenses Statement of Operations Summary (Unaudited) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Six Months Ended Sep 30, 2021 | Six Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $4,977 | $4,790 | $9,122 | $6,797 | | Total Operating Expenses | $1,108,333 | $823,007 | $1,625,946 | $1,267,082 | | Operating Loss | $(1,103,356) | $(818,567) | $(1,621,875) | $(1,260,635) | | Derivative Expense | $0 | $(389,300) | $0 | $(731,500) | | Net Loss | $(1,105,474) | $(1,348,002) | $(1,596,103) | $(2,162,010) | | Net Loss Per Share | $(0.13) | $(0.23) | $(0.21) | $(0.37) | Condensed Consolidated Statements of Cash Flows Net cash provided by financing activities significantly increased cash by $8.8 million for the six months ended September 30, 2021 Cash Flow Summary for Six Months Ended September 30 (Unaudited) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | $(1,340,137) | $(472,307) | | Net Cash Used in Investing Activities | $(36,213) | $(107,991) | | Net Cash Provided by Financing Activities | $10,170,244 | $735,459 | | Net Increase in Cash | $8,793,894 | $155,161 | - The primary source of financing cash flow in the six months ended September 30, 2021, was $10.2 million from the sale of stock and warrants[20] Notes to Financial Statements Notes detail accounting policies, a 1-for-4 reverse stock split, and the August 2021 public offering that raised $9.78 million to address going concern - The company effectuated a 1-for-4 reverse stock split of its common stock on December 29, 2020[25] - In August 2021, the company raised net proceeds of approximately $9.78 million from a public offering, addressing previous 'going concern' doubts for the next twelve months[87] - On August 13, 2021, the company sold 2.5 million units at $4.50 per unit in a public offering, each unit consisting of one share of common stock and one warrant[97] - In November 2021, the company received a letter alleging breach of settlement and consulting agreements from a former officer, which the company believes is without material impact[116] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the launch of Spryng™ and improved liquidity from the August 2021 public offering, which raised $9.78 million, reducing net loss Current Business Operations The company launched Spryng™ in September 2021, targeting a $4 billion canine osteoarthritis market and $550 million equine lameness market - The company's lead product, Spryng™, was launched in September 2021 for treating osteoarthritis and lameness in dogs and horses[121] - The estimated market opportunity for canine osteoarthritis is $4 billion, affecting approximately 14 million dogs in the US and EU[124] - Commercialization in the U.S. will leverage major veterinary-product distributors, supported by regional sales representatives and digital marketing[132][133] Results of Operations Net loss decreased for both three and six-month periods ended September 30, 2021, primarily due to the absence of derivative expenses Comparison of Results for the Three Months Ended September 30 | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Revenues | $4,977 | $4,790 | | Operating Expenses | $1,108,333 | $823,007 | | Other Expense | $2,118 | $529,435 | | Net Loss | $(1,105,474) | $(1,348,002) | Comparison of Results for the Six Months Ended September 30 | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Revenues | $9,122 | $6,797 | | Operating Expenses | $1,625,946 | $1,267,082 | | Other Income (Expense) | $25,772 | $(901,375) | | Net Loss | $(1,596,103) | $(2,162,010) | - The decrease in net loss for both periods was primarily due to the absence of derivative expenses recognized in 2020[143][150] Liquidity and Capital Resources Liquidity significantly improved with $9.78 million net proceeds from the August 2021 public offering, providing sufficient capital for the next 12 months - On August 13, 2021, the company closed a public offering with net proceeds of approximately $9,781,000[151] Liquidity Position as of September 30, 2021 | Metric | Amount | | :--- | :--- | | Current Assets | $9,510,922 | | Cash | $8,817,472 | | Current Liabilities | $1,217,733 | | Working Capital | $8,293,189 | - Management believes the current working capital is sufficient to fund operations for at least the next 12 months[152][161] Item 3. Quantitative and Qualitative Disclosures About Market Risk Disclosure for market risk is not required for smaller reporting companies - Disclosure is not required for this item[164] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were not effective as of September 30, 2021, with no significant changes to internal controls - As of September 30, 2021, disclosure controls and procedures were concluded to be not effective by the principal executive and financial officers[166] - No significant changes occurred in internal control over financial reporting during the quarter ended September 30, 2021[167] PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is involved in ordinary course legal claims, none of which are expected to materially impact its financial position or operations - The company does not expect current legal proceedings to have a material impact on its financial position, cash flows, or operations[168] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company issued 432,230 unregistered shares and used $101,400 of the $9.78 million public offering proceeds for debt repayment - From April to September 2021, the company issued 432,230 shares of common stock through unregistered sales for cash, debt conversion, warrant exercises, and services[169][170] - The August 2021 Public Offering raised net proceeds of approximately $9,781,000[173] - A portion of the public offering proceeds, $101,400, was used for debt repayment to the CEO, directors, and a former director[174] Item 3. Defaults Upon Senior Securities Disclosure for defaults upon senior securities is not required for this item - Disclosure is not required for this item[176] Item 4. Mine Safety Disclosure Disclosure for mine safety is not required for this item - Disclosure is not required for this item[177] Item 5. Other information No other information was reported for this period - None[178] Item 6. Exhibits This section lists exhibits filed with the Quarterly Report, including agreements and officer certifications - The report includes exhibits such as the Underwriting Agreement, Warrant Agent Agreement, and certifications from the Principal Executive Officer and Principal Financial Officer[180]