PetVivo Reports Third Quarter 2022 Financial Results

Rhea-AI Summary

PetVivo Holdings, Inc. (Nasdaq: PETV) reported financial results for the three and nine months ending December 31, 2021. Revenue for Q3 2022 was $51,004, a significant increase from $507 in Q3 2021, driven by sales of Spryng™. However, the net loss rose to $1,642,129, or ($0.17) per share, compared to a net loss of $1,037,753, or ($0.16) per share, the previous year. Total revenues for the nine months reached $60,126, up from $7,303 in 2020. Despite the revenue growth, increased costs in sales, marketing, and general administration contributed to a wider net loss.

Positive

• Q3 revenue increased to $51,004, up from $507 in 2020.
• Nine-month revenue reached $60,126 compared to $7,303 in 2020.

Negative

• Net loss increased to $1,642,129 for Q3 2022, compared to a loss of $1,037,753 in Q3 2021.
• Total expenses for G&A were $2,258,001 for nine months, up from $1,515,968 in 2020.
• R&D expenses increased significantly to $287,643 in the nine-month period from $30,265 in 2020.

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

FAQ

What were PetVivo Holdings' Q3 revenue results?

PetVivo Holdings reported Q3 2022 revenue of $51,004, a significant increase from $507 in the same quarter of 2021.

What is the net loss for PetVivo for the three months ended December 31, 2021?

The net loss for PetVivo for Q3 2022 was $1,642,129, or ($0.17) per share.

How did PetVivo's nine-month revenues compare to the previous year?

PetVivo's nine-month revenues were $60,126 for 2022, up from $7,303 in 2020.

What factors contributed to the increased net loss in the recent quarter for PetVivo?

The increased net loss was primarily due to higher infrastructure costs associated with the launch of Spryng™ and increased public company expenses.