PetVivo Reports Third Quarter 2022 Financial Results

Minneapolis, Minnesota, UNITED STATES


Conference call begins at 4:00 p.m. Central time today

EDINA, MN, Feb. 10, 2022 (GLOBE NEWSWIRE) -- PetVivo Holdings, Inc. (Nasdaq: PETV), an emerging biomedical device company focused on the commercialization of innovative medical therapeutics for animals, announces financial results for the three and nine months ended December 31, 2021.

Highlights from the third quarter of 2022 and recent weeks include the following:

  • Generation of revenue from sales of Spryng
  • Increased emphasis on the sales and marketing of Spryng

Management Commentary

“The most significant event on our financial results during the last quarter results from the commercialization and sale of our primary product, Spryng, to veterinary clinics.” Said John Lai, chief executive officer of PetVivo. “We ended our first full quarter following the commencement of sales of Spryng with $51,004 in revenue.”

“We continue to use the proceeds from our initial public offering to expand our sales and marketing efforts to generate clinical data to gain vet acceptance and generate increased revenue from the sale of Spryng”.

Third Quarter Financial Results

Revenues increased to $51,004 for the three months ended December 31, 2021 compared to $507 for the three months ended December 31, 2020, and consisted of sales of our Spryng product to veterinary clinics. The increase in revenues is due to the Company commercialization of its Spryng product in September 2021.

Cost of sales increased to $98,997 for the three months ended December 31, 2021 compared to $0 for the three months ended December 31, 2021 and 2020, respectively. The increase is directly related to increased sales of the Spryng product. Cost of sales includes product costs related to the sale of products and labor and overhead costs.

General and administrative (“G&A”) expenses increased to $1,170,870 for the three months ended December 31, 2021 compared to $331,148 for the three months ended December 31, 2020. General and administrative expenses include compensation and benefits, contracted services, consulting fees, stock compensation and incremental public company costs.

Sales and marketing expenses were $404,462 and $24,484 for the three months ended December 31, 2021 and 2020, respectively. Sales and marketing expenses include compensation, consulting, tradeshows and stock compensation costs to support the launch of Spryng.

Research and development (“R&D”) expenses were $34,326 and $30,265 for the three months ended December 31, 2021 and 2020, respectively.

Other income was $15,522 for the three months ended December 31, 2021 as compared to expense of $652,363 for the three months ended December 31, 2020. Other income in 2021 consisted of net interest income. Other expense in 2020 consisted primarily of derivative expense related to debt financing of $970,600 and interest expense of $48,666 partially offset by a gain on extinguishment of debt of $366,903.

Net loss for the three months ended December 31, 2021 was $1,642,129 or ($0.17) as compared to a net loss of $1,037,753 or ($0.16) per share for the three months ended December 31, 2020. The increase was related to the infrastructure costs to support the launch of Spryng and the incremental public company costs. The weighted average number of shares outstanding was 9,756,945 compared to 6,442,549 for the three months ended December 31, 2021 and 2020, respectively.

Nine Month Financial Results

Revenues increased to $60,126 for the nine months ended December 31, 2021 compared to $7,303 for nine months ended December 31, 2020, respectively, and consisted of sales to veterinary clinics. The Company began commercialization of its Spryng product in September 2021.

Cost of sales was $104,048 for the nine months ended December 31, 2021 compared to $350 for the nine months ended December 31, 2020. The increase is directly related to increased sales of the Spryng product. Cost of sales includes product costs related to the sale of products and labor and overhead costs. The increase is primarily attributed to our increased sales.

G&A expenses were $2,258,001 and $1,515,968 for the nine months ended December 31, 2021 and 2020, respectively. These expenses include compensation and benefits, contracted services, consulting fees, stock compensation and incremental public company costs.

Sales and marketing expenses were $689,960 and $106,745 for the nine months ended December 31, 2021 and 2020, respectively. Sales and marketing expenses include compensation, consulting, tradeshows and stock compensation costs to support the launch of Spryng.

R&D expenses were $287,643 and $30,265 for the nine months ended December 31, 2021 and 2020, respectively. The increase was related to efforts to support the launch of Spryng.

Other income was $41,294 for the nine months ended December 31, 2021 as compared to expense of $1,553,738 for the nine months ended December 31, 2020. Other income in 2021 consisted of the forgiveness of PPP Loan of $31,680 and net interest income of $9,614. Other expense in 2020 consisted primarily of derivative expense related to debt financing of $1,702,100 and interest expense of $219,539.

Net loss for the nine months ended December 31, 2021 was $3,238,232 or ($0.38) as compared to a net loss of $ 3,199,763 or ($0.53) per share for the nine months ended December 31, 2020. The weighted average number of shares outstanding was 8,426,135 compared to 6,006,382 for the nine months ended December 31, 2021 and 2020, respectively.

Conference Call and Webcast

A live webcast of the conference call and related earnings release materials can be accessed on PetVivo’s Investor Relations website at https://audience.mysequire.com/webinar-view?webinar_id=c0d62920-a22f-4c6e-bd3f-c9a2d44daecb. A replay of the webcast will be available through the same link following the conference call. Participants can also access the call using the dial-in details below.

Date: Thursday, February 10, 2022
Time: 4:00 p.m CT (5:00 pm ET)
Dial-in number: +1 (669) 900-6833
Conference ID: 99870885526
Passcode: 297536

About PetVivo Holdings, Inc.

PetVivo Holdings, Inc. is an emerging biomedical device company currently focused on the manufacturing, commercialization and licensing of innovative medical devices and therapeutics for animals. The Company's strategy is to leverage human therapies for the treatment of dogs and horses in a capital and time efficient way. A key component of this strategy is the accelerated timeline to revenues for veterinary medical devices, which enter the market much earlier than more stringently regulated pharmaceuticals and biologics.

PetVivo has a pipeline of seventeen products for the treatment of animals and people. A portfolio of twenty-one patents protects the Company's biomaterials, products, production processes and methods of use. The Company’s lead product SPRYNG, a veterinarian-administered, intraarticular injection for the treatment of osteoarthritis in dogs and horses, is scheduled for expanded commercial sale in the fourth quarter of this year.

Disclosure Information

PetVivo uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the company’s Investor Relations website, in addition to following the company’s press releases, SEC filings, public conference calls, presentations and webcasts.

Contact:

John Lai, CEO
PetVivo Holdings, Inc.
Email: info1@petvivo.com
(952) 405-6216

PETVIVO HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS 

  December 31, 2021
(Unaudited)
  March 31, 2021
Assets:       
Current Assets       
Cash and cash equivalents$7,553,738   $23,578 
Accounts receivable 3,186    - 
Inventory, net 104,965    - 
Prepaid expenses and other assets 373,505    123,575 
Total Current Assets 8,035,394    147,153 
       
Property and Equipment, net 269,226    214,038 
       
Other Assets:      
Deferred offering costs -    280,163 
Operating lease right-of-use asset 137,921    157,760 
Trademark and patents, net 40,738    27,932 
Security deposits 12,830    8,201 
Total Other Assets 191,489    474,056 
Total Assets$8,496,109   $835,247 
       
Liabilities and Stockholders’ Equity (Deficit)      
Current Liabilities      
Accounts payable $263,267   $408,873 
Accrued expenses  805,937    554,012 
Convertible notes and accrued interest  -    235,671 
Accrued expenses – related parties  -    36,808 
Operating lease liability – current portion  27,011    26,582 
PPP Loan and accrued interest  3,769    39,020 
Notes payable and accrued interest - directors  -    20,000 
Notes payable and accrued interest – related party  -    44,554 
Note payable and accrued interest (current portion)  6,456    39,528 
Total Current Liabilities  1,106,440    1,405,048 
Other Liabilities       
Note payable and accrued interest (net of current portion)  28,837    - 
Operating lease liability (net of current portion)  110,910    131,178 
Share-settled debt obligation – related party, net of debt discount  -    196,000 
Total Other Liabilities  139,747    327,178 
Total Liabilities  1,246,187    1,732,226 
Commitments and Contingencies (see Note 13)       
Stockholders’ Equity (Deficit):       
Preferred stock, par value $0.001, 20,000,000 shares authorized, issued 0 and 0 shares outstanding at December 31, 2021 and March 31, 2021       
Common stock, par value $0.001, 250,000,000 shares authorized, issued 9,757,728 and 6,799,113 shares outstanding at December 31, 2021 and March 31, 2021, respectively  9,758    6,799 
Additional Paid-In Capital  68,589,822    57,207,648 
Accumulated Deficit  (61349,658)   (58,111,426)
Total Stockholders’ Equity (Deficit)  7,249,922    (896,979)
Total Liabilities and Stockholders’ Equity (Deficit) $8,496,109   $835,247 


PETVIVO HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

  Three Months Ended
December 31,
  Nine Months Ended
December 31,
 
  2021   2020   2021   2020  
Revenues $51,004   $507   $60,126   $7,303  
                 
Cost of Sales  98,997    -    104,048    350  
Gross Profit (Loss)  (47,993)   507    (43,922)   6,953  
                 
Operating Expenses:                
                 
Sales and Marketing  404,462    24,484    689,960    106,745  
Research and Development  34,326    30,265    287,643    30,265  
General and Administrative  1,170,870    331,148    2,258,001    1,515,968  
                 
Total Operating Expenses  1,609,658    385,897    3,235,604    1,652,978  
                 
Operating Loss  (1,657,651)   (385,390   (3,279,526)   (1,646,025 
                 
Other Income (Expense)                
Gain on Sale of Asset  -    -    -    482  
Gain on Debt Restructuring  -    -    -    516  
Gain on Debt Extinguishment  -    366,903    -    366,903  
Forgiveness of PPP loan and accrued interest  -    -    31,680    -  
Derivative Expense  -    (970,600)   -    (1,702,100) 
Interest Income (Expense)  15,522    (48,666   9,614    (219,539 
Total Other Income (Expense)  15,522    (652,363   41,294    (1,553,738 
                 
Net Loss before taxes  (1,642,129)   (1,037,753   (3,238,232   (3,199,763 
                 
Income Tax Provision  -    -    -    -  
                 
Net Loss $(1,642,129)  $(1,037,753  $(3,238,232)  $(3,199,763 
                 
Net Loss Per Share:                
Basic and Diluted $(0.17  $(0.16  $(0.38  $(0.53 
                 
Weighted Average Common Shares Outstanding:               
Basic and Diluted  9,756,945    6,442,549    8,426,135    6,006,382     


The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
Shares retroactively restated for 1-for-4 reverse stock split in December of 2020