Core Viewpoint - ImmuCell Corporation's shares have significantly declined following the release of its third-quarter 2025 earnings, reflecting investor caution despite operational improvements [1] Sales & Revenue Performance - Product sales for Q3 2025 decreased by 8% year over year to $5.5 million from $6 million, attributed to shipment timing fluctuations and previous supply constraints [2] - The company's gross margin improved to 43% from 26% a year earlier, driven by better production yields and a cumulative price increase of approximately 6% [3] - The quarterly net loss narrowed to $140,000, or 2 cents per share, compared to a loss of $702,000, or 9 cents per share, in the same quarter last year [3] Year-to-Date Performance - For the first nine months of 2025, ImmuCell reported a net income of $1.8 million, a turnaround from a net loss of $2.7 million in the prior year, supported by higher sales and improved margins [4] - Operating income improved to $20,000 in Q3 2025, reversing a $575,000 operating loss from the previous year [5] - Adjusted EBITDA for Q3 reached approximately $751,000, up from $196,000 a year earlier, indicating enhanced operational efficiency [5] Cash and Working Capital - Cash and cash equivalents at the end of Q3 were $3.9 million, slightly up from $3.8 million at the end of 2024, despite inventory investments for peak demand [6] - Working capital expanded to $12.8 million, reflecting a stronger balance sheet [6] Domestic and International Sales - Domestic sales increased by 2% year over year in Q3 and 9.5% from Q2 2025 [7] - International sales, particularly to Canada, declined due to shipment timing, but international revenue for the first nine months of 2025 increased by 15% year over year [7] Management Commentary - Management noted the company has exited a prolonged order backlog, allowing for renewed customer acquisition efforts [8] - The new CEO emphasized a focus on operational excellence, customer engagement, and consistent product availability [8] - Improved manufacturing performance and pricing actions were highlighted as key drivers of margin expansion [9] Factors Influencing Sales - The year-over-year decline in quarterly sales was largely due to the unwinding of backlog dynamics, with distributors restocked earlier in the year [10] - Gross margin improvement was attributed to enhanced production yields, higher sales, and a composite price increase implemented in 2025 [11] Forward-Looking Considerations - The company anticipates continued challenging year-over-year comparisons due to prior backlog fulfillment, with normalization expected by the second half of 2026 [12] - Management is prioritizing operational discipline, customer engagement, and reinvestment in commercial opportunities [12] Product Development - FDA approval for the novel mastitis treatment, Re-Tain, is still pending, with investigational product use ongoing to gather field performance feedback [13] Leadership Transition - A leadership transition is underway as long-serving executive Michael Brigham steps back and Olivier te Boekhorst assumes the role of president and CEO [14] - The company is evaluating investments in production capacity and aseptic filling capabilities, with some capital projects paused due to cash constraints [14]

Financial Data and Key Metrics Changes - The company reported a net income of $1.8 million for the nine months ended September 30, 2025, compared to a net loss of $2.7 million for the same period in 2024, marking a $4.5 million improvement [13] - Basic net income per share was approximately $0.20 for the nine-month period ended September 30, 2025, compared to a net loss of $0.34 per share in the prior year [15] - Gross margin as a percentage of product sales increased to 43% during the third quarter of 2025, up from 26% in the same quarter of 2024 [17] Business Line Data and Key Metrics Changes - Total product sales decreased by 8% or $505,000 in the third quarter of 2025 compared to the same quarter in 2024 [15] - Domestic sales increased by 2% in the third quarter of 2025 compared to the same quarter in 2024, and were up 9.5% compared to the second quarter of 2025 [12] - International sales were down during the third quarter of 2025 compared to the same quarter in 2024, primarily due to timing of shipments and short supply management [12] Market Data and Key Metrics Changes - The U.S. market represented about 86% of total sales during the trailing 12-month period ended September 30, 2025 [12] - International sales for the nine-month period ended September 30, 2025, were 15% higher than the same period in the prior year [13] Company Strategy and Development Direction - The company aims to regain customers lost during supply shortages and expand the use of scour preventatives [11] - There is a focus on operational excellence and execution while reviewing next capacity expansion opportunities [14] - The company is awaiting FDA approval for its Retain product, which targets subclinical mastitis, and is conducting investigational product use studies in collaboration with Michigan State University [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position and the potential for growth, emphasizing the importance of their work in animal health [9][10] - The management team highlighted the need for continued strong production yields and sales growth to ensure future success [18] Other Important Information - The company has seen significant improvements in gross margins due to better manufacturing performance and a composite price increase of around 6% in 2025 [35] - Adjusted EBITDA for the three-month, nine-month, and trailing 12-month periods ended September 30, 2025, were $751,000, $4.4 million, and $5.8 million, respectively, showing strong year-over-year improvements [19] Q&A Session Summary Question: What active steps are being taken to increase growth for First Defense? - Management indicated that they have reached a level of capacity set during the expansion project and have implemented quality measures to ensure predictable manufacturing levels [26] Question: How do you plan to balance production with cash management given the growing inventory? - The CFO noted that inventory levels have increased to a more desirable level as they approach peak selling season, and they are closely monitoring inventory management [32] Question: What is attributed to the margin improvement in Q3? - The CFO attributed margin improvements to enhanced manufacturing performance and a price increase, along with the benefits of scale from increased sales volume [35]

Financial Data and Key Metrics Changes - The company reported a net income of $1.8 million for the nine months ended September 30, 2025, compared to a net loss of $2.7 million for the same period in 2024, marking a $4.5 million improvement [13] - Basic net income per share was approximately $0.20 for the nine-month period ended September 30, 2025, compared to a net loss of $0.34 per share in the prior year [16] - Gross margin as a percentage of product sales increased to 43% during the third quarter of 2025, up from 26% in the same quarter of 2024 [17] Business Line Data and Key Metrics Changes - Total product sales decreased by 8% or $505,000 in the third quarter of 2025 compared to the same quarter in 2024 [16] - Domestic sales increased by 2% in the third quarter of 2025 compared to the same quarter in 2024, and were up 9.5% compared to the second quarter of 2025 [12] - International sales were down during the third quarter of 2025 compared to the same period in 2024, primarily due to timing of shipments and short supply management [12] Market Data and Key Metrics Changes - The U.S. market represented approximately 86% of total sales during the trailing 12-month period ended September 30, 2025 [12] - International sales for the nine-month period ended September 30, 2025, were 15% higher than the same period in the prior year [13] Company Strategy and Development Direction - The company aims to regain customers and expand the use of scour preventatives while exploring new market opportunities more aggressively [11] - The focus is on operational excellence and execution, with a priority on production capacity and quality [14] - The company is awaiting FDA approval for the Re-Tain product, which targets subclinical mastitis, and is conducting investigational product use studies to gather market feedback [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position and the positive changes in the commercial team, emphasizing a shift from managing short supply to winning new customers [26] - The company is focused on maintaining strong production yields and achieving sales growth to drive future success [18] - Management acknowledged that difficult sales comparisons may persist due to backlog fulfillment but expects to lap this dynamic by the second half of 2026 [17] Other Important Information - The company has undergone significant management transitions, with Olivier te Boekhorst appointed as the new President and CEO effective November 1, 2025 [6] - The company has improved its cash position to $3.9 million as of September 30, 2025, from $3.8 million at the end of 2024, while investing in inventory [19] Q&A Session Summary Question: What active steps are being taken to increase growth for First Defense? - Management indicated that they have reached a level of capacity set during the expansion project and have implemented quality measures to ensure predictable manufacturing levels [26] Question: How does the company plan to balance production with cash generation? - The CFO noted that inventory levels have increased to a desirable level as they approach peak selling season, and they are closely monitoring inventory management [32] Question: What factors contributed to the margin improvement in Q3? - The CFO attributed margin improvement to enhanced manufacturing performance and a composite price increase of around 6% in 2025 [35]

Financial Data and Key Metrics Changes - The company reported a net income of $1.8 million for the nine months ended September 30, 2025, compared to a net loss of $2.7 million for the same period in 2024, marking a $4.5 million improvement [13] - Basic net income per share was approximately $0.20 for the nine-month period ended September 30, 2025, compared to a net loss of $0.34 per share in the prior year [16] - Gross margin as a percentage of product sales increased to 43% during the third quarter of 2025, up from 26% in the same quarter of 2024 [18] Business Line Data and Key Metrics Changes - Total product sales decreased by 8% or $505,000 in the third quarter of 2025 compared to the third quarter of 2024 [16] - Domestic sales increased by 2% in the third quarter of 2025 compared to the same quarter in 2024, and were up 9.5% compared to the second quarter of 2025 [12] - International sales were down during the third quarter of 2025 compared to the same period in 2024, primarily due to timing of shipments and short supply management [12] Market Data and Key Metrics Changes - The U.S. market represented approximately 86% of total sales during the trailing 12-month period ended September 30, 2025 [12] - International sales for the nine-month period ended September 30, 2025, were 15% higher than the same period in the prior year [13] Company Strategy and Development Direction - The company aims to regain customers and expand the use of scour preventatives while exploring new market opportunities more aggressively [11] - The focus is on operational excellence and execution, with a priority on production capacity and quality [14] - The company is awaiting FDA approval for its Retain product, which targets subclinical mastitis, and is conducting investigational product use studies to gather market feedback [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position and the positive changes in the commercial team, emphasizing a shift from managing short supply to winning new customers [26] - The company is focused on maintaining strong production yields and driving growth from existing products while managing cash and inventory effectively [20][31] Other Important Information - The company has undergone significant management transitions, with Oliver Tebukurst appointed as the new President and CEO effective November 1, 2025 [6] - The company has improved its cash position to $3.9 million as of September 30, 2025, from $3.8 million at the end of 2024, while investing in inventory [20] Q&A Session Summary Question: What has changed regarding First Defense and the growth expectations? - Management indicated that they have reached a level of capacity set during the expansion project and have implemented quality measures to ensure predictable manufacturing levels [26] Question: How does the company plan to balance production with cash generation? - The CFO noted that inventory levels have increased to a more desirable level as they approach peak selling season, and they are closely monitoring inventory management [31] Question: What attributed to the margin improvement in Q3? - The CFO attributed the gross margin improvement to enhanced manufacturing performance and a composite price increase of around 6% in 2025 [34]

Core Insights - ImmuCell Corporation reported a significant turnaround in financial performance for the nine-month period ended September 30, 2025, achieving a net income of $1.8 million compared to a net loss of $2.7 million in the same period last year, driven by higher product sales and improved gross margins [4][9]. Product Sales Highlights - Preliminary product sales for Q3 2025 were approximately $5.5 million, reflecting an 8% decrease compared to Q3 2024 [8]. - For the nine-month period ended September 30, 2025, product sales increased by 7% to approximately $20.0 million compared to the same period in 2024 [8]. - Over the twelve-month period ended September 30, 2025, product sales rose by 16% to approximately $27.8 million compared to the previous year [8]. Financial Performance - Gross margin improved to 43% for Q3 2025, up from 26% in Q3 2024, and reached 42.6% for the nine-month period ended September 30, 2025, compared to 27.3% in 2024 [5][9]. - The net loss for Q3 2025 was approximately $140,000, or $0.02 per basic share, compared to a net loss of $702,000, or $0.09 per basic share, in Q3 2024 [9][14]. - Adjusted EBITDA for Q3 2025 was approximately $751,000, significantly up from $196,000 in Q3 2024 [9][17]. Balance Sheet Data - As of September 30, 2025, cash and cash equivalents increased to approximately $3.9 million from $3.8 million as of December 31, 2024 [9][16]. - Net working capital rose to approximately $12.8 million as of September 30, 2025, compared to $10.6 million at the end of 2024 [9][16]. - Stockholders' equity increased to approximately $29.8 million as of September 30, 2025, up from $27.5 million as of December 31, 2024 [10][16]. Product Development - The company is actively developing Re-Tain, a treatment for subclinical mastitis in dairy cows, in partnership with Michigan State University, with ongoing market feedback collection planned through 2025 and into 2026 [6][20].

Core Points - ImmuCell Corporation plans to report unaudited financial results for Q3 2025 on November 13, 2025, after market close [1][3] - A conference call is scheduled for November 14, 2025, at 9:00 AM ET to discuss the financial results [2] - The company anticipates no changes to the preliminary sales results disclosed on October 7, 2025 [3] - An updated Corporate Presentation slide deck will be available after market close on November 13, 2025 [4] Company Overview - ImmuCell Corporation focuses on developing scientifically proven products to enhance the health and productivity of dairy and beef cattle [5] - The company manufactures First Defense, which provides Immediate Immunity™ to newborn calves, and is developing Re-Tain, a treatment for subclinical mastitis in dairy cows [5]

Core Insights - ImmuCell Corporation has appointed Olivier te Boekhorst as the new President and CEO effective November 1, 2025, succeeding Michael F. Brigham [2][3] - The company is focused on enhancing its First Defense franchise and completing the development of Re-Tain, a treatment for subclinical mastitis in dairy cows [3][4] Leadership Changes - Olivier te Boekhorst has taken over as President and CEO, with Michael F. Brigham continuing as a Board member and Special Advisor until January 2026 [2] - Timothy C. Fiori has been appointed as CFO, bringing 24 years of experience in the livestock industry, and will also serve as Treasurer and Secretary [2] Upcoming Financial Discussion - ImmuCell plans to host a conference call on November 14, 2025, to discuss the unaudited financial results for the quarter ended September 30, 2025 [3] - Investors can access the call via specific phone numbers and a replay will be available until November 21, 2025 [3] Company Overview - ImmuCell develops and markets products aimed at improving the health and productivity of dairy and beef cattle, including the First Defense product line [4] - The company is in the late stages of developing Re-Tain, which offers an alternative to traditional antibiotics without FDA-required milk discard or pre-slaughter withdrawal restrictions [4]

Core Insights - SRK Fund I, LP achieved a return of 46.94% in the first half of 2025, significantly outperforming the S&P 500 and Russell 2000, which returned 6.20% and -1.78% respectively [2][3] - Since its inception on May 1, 2018, the fund has appreciated 1200.66%, compared to 162.30% for the S&P 500 and 55.46% for the Russell 2000 [2][3] - The fund manager emphasizes the importance of long-term performance evaluation rather than short-term results [4] Portfolio Updates - **Innovative Solutions & Support (ISSC)**: Contributed significantly to the fund's performance with a 104% revenue increase and Ebitda margins reaching 35%. The company is expanding through strategic acquisitions and has increased its manufacturing capacity [6][7] - **ImmuCell Corporation (ICCC)**: Reported record first-quarter results with gross margins expanding to 42%. The company is targeting further growth and has received investigational use authorization for its product Re-Tain, which is pending FDA approval [8][9][10] - **Soléance (SLSN)**: Experienced a 53% revenue growth in the first half of the year despite lower margins due to onboarding costs. The company resolved litigation issues and uplisted to Nasdaq, which positively impacted its stock price [11] - **Sanuwave Health, Inc. (SNWV)**: Achieved 51% revenue growth without a national sales presence. The company has now established a national sales force and is pursuing debt refinancing options [12][13] Closing Thoughts - The strong returns in the first half of the year are viewed as a recovery from the previous year's poor performance. The fund has increased its cash reserves to capitalize on future investment opportunities [14]

Core Insights - ImmuCell Corporation reported preliminary, unaudited sales results for Q3 2025, showing a decrease in sales compared to the same period in 2024 and the previous quarter [1][3] - The company has been providing preliminary sales results since Q1 2020 and plans to continue this practice [2] Sales Performance - Total sales for Q3 2025 were $5.5 million, down from $6.0 million in Q3 2024, representing an 8% decrease [3] - For the first six months of 2025, total sales reached $12.0 million, a 4% increase from $11.5 million in the same period of 2024 [3] - Total sales for the first nine months of 2025 were $20.0 million, up 7% from $18.7 million in 2024 [3] - Over the trailing twelve months, total sales increased to $27.8 million, a 16% rise from $23.8 million in the previous year [3] Inventory and Market Dynamics - The increase in sales during the first half of 2025 was attributed to the rebuilding of inventories of the First Defense product line after backlogs peaked in early 2024 [3][4] - The company anticipates a potential softening of sales in the second half of 2025 due to the re-stocking of distributor inventories [3][4] Product Development - ImmuCell is conducting a controlled study of its Investigational Product, Re-Tain, in collaboration with Michigan State University, which is expected to provide valuable data for treating mastitis in dairy cows [4] - The company submitted a Non-Administrative New Animal Drug Application (NADA) in early January 2025, with the remaining hurdle being the clearance of inspectional observations at its contract manufacturer's facilities [4] Future Outlook - The sales team is focused on regaining lost market share and is optimistic about sustainable long-term growth for the First Defense product line [4]

Summary of ImmuCell Corporation's Investor Conference Call Company Overview - ImmuCell Corporation is located in Maine and has approximately 80 employees with trailing 12-month sales of about $28 million as of June 30 [2] - The company primarily focuses on its flagship product, First Defense, which is designed for newborn dairy calves [2] Product Details - The First Defense product line includes Tri-Shield, which was introduced in 2018 and adds rotavirus protection to the existing E. coli and coronavirus claims [4] - The product aims to prevent scours, a significant issue in calf raising, by providing concentrated antibodies to newborns [6][7] - The company is expanding its product line to include functional feeds, which will not have USDA claims but will utilize the same antibodies [5] Market Position and Competition - The total domestic market opportunity for calf-level treatment is estimated at $31 million, with an additional $82 million when including dam-level treatment [16] - Main competitors include large vaccine manufacturers like Boehringer Ingelheim and Merck, with ImmuCell differentiating itself by providing preformed antibodies rather than relying on vaccination [14][15] Manufacturing and Capacity - ImmuCell faced contamination issues in the past but has since improved its manufacturing processes and is now capable of producing over $30 million in revenue [17][18] - The company is considering expanding its capacity, which would involve a $3 million investment in additional equipment to support $40 million or more in revenue [28][30] Financial Performance - In the first half of 2025, ImmuCell reported a year-over-year revenue growth of approximately 14%, with net income around $1.9 million and adjusted EBITDA of approximately $3.7 million [33] - The company has recently refinanced loans to lower interest rates and remove large balloon payments due in 2026 [34] FDA Approval and Future Products - ImmuCell is developing a new product, Re-Tain, aimed at treating mastitis, which is currently in the late stages of FDA approval [35][36] - The company has invested $22 million in a commercial-scale production plant for Re-Tain, but is currently facing delays due to compliance issues with a contract manufacturer [37] Leadership Transition - CEO Michael Brigham announced his intention to step down due to personal reasons, with a succession plan in place to find a successor by year-end [39] Additional Insights - The company emphasizes sustainability by reducing antibiotic use in livestock, aligning with current health trends and regulatory demands [19][20] - Customer sentiment has been mixed due to past supply issues, but there is a strong return to the product as availability improves [25]