PetVivo (PETV) - 2026 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenues for the nine months ended December 31, 2025, totaled $887,000, a decrease of 2% from the same year-ago period [17] - Gross profit for the first nine months totaled $551,500, or 62.2% of revenues, down from 89% of revenues in the same period a year ago [19] - Net loss for the first nine months was $7.5 million, or 27 cents per share, compared to a net loss of $6 million, or 30 cents a share for the same year-ago period [21] - Total liabilities decreased by 81% to $1 million on December 31, down from $5.1 million on March 31 [23] Business Line Data and Key Metrics Changes - Sales of Spryng products totaled $400,800, while sales of PrecisePRP products totaled $486,000, indicating a shift in sales mix [17] - The decrease in revenues was primarily due to a decline in Spryng product sales, offset by an increase in PrecisePRP sales [18] - Gross margins for the PrecisePRP product line were lower, impacting overall gross profit [19] Market Data and Key Metrics Changes - The Canadian animal healthcare market is projected to grow at a CAGR of 6.8% to exceed $4.4 billion by 2031 [24] - The European animal health market is estimated at over $16.6 billion today and is projected to double to $34.8 billion by 2033, growing at a CAGR of 8.6% [15] Company Strategy and Development Direction - The company is focusing on creating strong recurring revenues and market expansion opportunities through new product launches and strategic partnerships [2] - A new AI-powered software as a service platform, PetVivo AI, is being launched to enhance veterinary practices and reduce customer acquisition costs [4][5] - The company is advancing its product pipeline, including new functional biomaterials for regenerative applications [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued sales momentum and market penetration for the remainder of fiscal 2026 and beyond [30] - The company is in advanced discussions with an outside sales and marketing firm to enhance its distribution network [30] - Management highlighted the importance of educating customers on the combined use of Spryng and PrecisePRP to drive future sales [18] Other Important Information - The company appointed Josh Ruben to its board of directors, bringing extensive experience in healthcare and life sciences [16] - The partnership with Digital Landia aims to address challenges in the veterinary industry and enhance customer engagement through AI technology [3] Q&A Session Summary Question: Updates on getting on the NASDAQ listings - The company is working towards uplisting on the New York AMEX, contingent on stock price and market conditions [33] Question: Can you talk about the previous guidance given on last conference call? - Management noted that previous guidance was not recalled, but acknowledged that sales were affected by changes in promotional strategies [36][38] Question: Can you discuss the CapEx required for the rollout of the Digital Landia platform? - The onboarding process for veterinarians is designed to be efficient, with minimal CapEx required from the company [41][50] Question: Will PetVivo recognize revenues from the implementation of the veterinarian system? - Yes, the company expects to recognize revenues as veterinarians implement the system [45] Question: Do you have expectations for revenues and PNL in the next year? - Management refrained from providing specific revenue guidance at this time [52]