Financial Data and Key Metrics Changes - Revenue for Q1 2022 totaled $163,000, a decrease from $685,000 in the prior year period [33] - The net loss was $2.8 million compared to a net loss of $2.5 million in the prior year [33] - Adjusted EBITDA loss was $2 million, compared to an adjusted EBITDA loss of $1 million last year [33] Business Line Data and Key Metrics Changes - Revenue consisted of product sales from INVOcell to IVF clinics in the U.S. and international distribution partners, as well as consolidated revenue from the Atlanta INVO Center [34] - The Atlanta INVO Center generated $106,000 in revenue for the quarter, showing a healthy increase from the previous quarter [36] - Combined revenue from Birmingham and Monterrey joint ventures was $170,000 in Q1 2022 [38] Market Data and Key Metrics Changes - The company has seen increased order flow from U.S. IVF clinics since taking over direct sales efforts in February [13][28] - A new distribution agreement was signed for China, with expected annual minimums totaling over $14 million over the initial five-year period [30][31] - Approximately 498 IVF clinics exist in China, with local sources indicating around 1 million treatment cycles annually [58][59] Company Strategy and Development Direction - The company plans to expand its INVO Center footprint, with ongoing discussions for new centers in Tampa, Kansas City, and San Francisco [10][17] - Marketing programs initiated in Atlanta are being applied to Birmingham and Mexico, with the goal of accelerating revenue ramp for future clinics [25][41] - The company is exploring ways to lower costs and accelerate expansion through partnerships with existing IVF clinics [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trends at existing INVO Centers and the impact of multi-channel marketing programs [9][41] - The company anticipates that increased patient flow will contribute to improved revenue activity in the coming months [82] - Management highlighted the importance of establishing strong partnerships and the evolving conversations with potential partners [42][80] Other Important Information - The company ended the quarter with approximately $3.8 million in cash and no outstanding debt [38] - The company is sourcing additional capital to support its expansion plans and corporate needs [39] Q&A Session Summary Question: Criteria for Evaluating Targets for Clinical Expansion - The company evaluates both quantitative and qualitative factors, including demographics and existing care levels in the market [46][47] Question: Progress on 5-Day Incubation Label Expansion - The company is finalizing submission for the 5-day clinical label and has collected sufficient data despite delays due to COVID [50][54] Question: Overview of IVF Clinics in China - There are approximately 498 IVF clinics in China, with local sources indicating around 1 million treatment cycles annually [58][59] Question: Distribution Strategy in China - The company plans to work with existing facilities in China and is excited about the partnership with Onesky for product registration [62][74] Question: Impact of Marketing Initiatives on Patient Flow - Marketing initiatives in Atlanta have led to increased patient inquiries, with direct results from advertising efforts [76][78]
INVO BioScience(INVO) - 2022 Q1 - Earnings Call Transcript