ImmuCell(US:ICCC)2021-02-23 15:17Financial Data and Key Metrics Changes - Product sales increased by 12% for the year ended December 31, 2020, compared to 2019, indicating consistent market share gains [3][4] - The company reported an expected year-over-year increase in net cash provided by operating activities of approximately $1.1 million, which included $938,000 in other income from the forgiveness of a paycheck protection program loan [7] Business Line Data and Key Metrics Changes - The backlog of orders was approximately $1.8 million as of December 31, 2020, compared to no backlog as of December 31, 2019, reflecting strong demand for products [4] - Product development expenses increased by 18% to $4.4 million during 2020, including $1.5 million of non-cash depreciation expense [6] Market Data and Key Metrics Changes - The dairy industry experienced volatility during the COVID pandemic, with low milk prices in early 2020 rebounding towards the end of the year, contributing to strong demand in the fourth quarter [23] - The company reported a significant increase in orders during the fourth quarter, attributed to both market recovery and effective sales strategies [22][23] Company Strategy and Development Direction - The company is focused on expanding production capacity, with a 100% increase in liquid processing operations and a 50% increase in freeze-drying operations expected to be completed in the second quarter of 2021 [4][5] - Plans for a mass market launch of the Re-Tain product are set for the second quarter of 2022, pending FDA approval [6] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of cash flows over GAAP net loss at this stage, highlighting the relevance of cash flow statements for tracking performance [7] - The company anticipates a decrease in sales during the first quarter of 2021 compared to the first quarter of 2020, but expects to return to growth in the second half of 2021 [5] Other Important Information - The company is preparing for potential international market expansion, with ongoing regulatory work and partnerships in territories like South Korea and Japan [39] Q&A Session Summary Question: Why did the submission of Re-Tain take longer than expected? - Management explained that the submission was complex and required careful preparation, leading to a delay [10] Question: What was the order fulfillment situation in the fourth quarter? - Management confirmed strong demand in the fourth quarter, with a significant backlog contributing to order fulfillment [22][23] Question: What is the company's international sales strategy? - The company is focusing on regulatory approvals and partnerships for international expansion, with plans to enter new markets in the future [39]