10-Q: PetVivo Holdings Reports Slight Revenue Dip in Q3 2025, Focuses on Cost-Cutting Measures

Sentiment:

Quarterly Report 14 February 2025 2:45 PM

PetVivo Holdings reports a slight decrease in revenue for the third quarter of fiscal year 2025, while implementing cost-cutting measures to reduce operating expenses.

Capital raiseThe company expects to continue to raise additional capital through the sale of its securities from time to time for the foreseeable future to fund its business expansion.From January 1, 2025, through the date of this quarterly report 10Q filing, the Company sold 950,000 restricted common shares to nine accredited investors who purchased the shares for $617,500 at $0.65 per share.

Worse than expectedThe company's revenues decreased slightly compared to the same period last year.

Summary

PetVivo Holdings, Inc. reported revenues of $583,313 for the three months ended December 31, 2024, compared to $595,891 for the same period in 2023.
The company's cost of sales remained relatively constant at $61,497 in 2024 versus $62,569 in 2023.
Operating expenses decreased from $2,666,946 in 2023 to $2,280,221 in 2024, primarily due to reductions in general and administrative, and sales and marketing expenses.
The operating loss was $1,758,405 for the quarter, an improvement from the $2,133,624 loss in the prior year.
Net loss was $1,757,038, or $0.09 per share, compared to a net loss of $1,749,848, or $0.12 per share, in the same quarter of the previous year.
For the nine months ended December 31, 2024, revenues were $907,783 compared to $920,440 for the same period in 2023.
The net loss for the nine-month period was $5,979,594, or $0.30 per share, compared to $8,304,578, or $0.64 per share, for the nine months ended December 31, 2023.
As of December 31, 2024, the company's current assets were $1,226,829, and current liabilities were $2,936,314, resulting in a working capital deficit of $1,709,485.
From January 1, 2025, through the date of this quarterly report 10Q filing, the Company sold 950,000 restricted common shares to nine accredited investors who purchased the shares for $617,500 at $0.65 per share.

Sentiment

Score: 5

Explanation: The document presents a mixed sentiment. While the company is actively managing costs and improving efficiency, it still faces challenges related to revenue growth and working capital.

Positives

Operating expenses decreased, indicating successful cost-cutting measures.
Net loss per share improved, reflecting better efficiency.
The company is actively raising capital through the sale of securities.
The operating loss was $1,758,405 for the quarter, an improvement from the $2,133,624 loss in the prior year.
The net loss for the nine-month period was $5,979,594, or $0.30 per share, compared to $8,304,578, or $0.64 per share, for the nine months ended December 31, 2023.

Negatives

Revenues experienced a slight decrease compared to the same period last year.
The company has a significant working capital deficit.
The company has an accumulated deficit of $88,778,918 on December 31, 2024.
The company incurred a net loss $ 5,979,594 for the nine months ended December 31, 2024, had net cash used in operating activities of $ 4,091,978 for the same period.

Risks

The company's ability to continue as a going concern is dependent on achieving profitability and/or obtaining adequate financing.
The company faces the risk of not being able to raise additional capital to fund its business plan.
The company has a working capital deficit of $1,709,485.
The company has an accumulated deficit of $88,778,918 on December 31, 2024.

Future Outlook

The company expects to continue to raise additional capital through the sale of its securities from time to time for the foreseeable future to fund its business expansion.

Industry Context

The company operates in the $11 billion companion animal veterinary care and product sales market, focusing on osteoarthritis treatments for dogs and horses.

Comparison to Industry Standards

The document mentions that drug sales typically represent up to 30% of revenues at a typical veterinary practice, indicating a benchmark for revenue composition in the industry.
The document mentions that Spryng is a veterinarian-administered medical device that should expand practice revenues and margins, indicating a benchmark for revenue composition in the industry.
The document mentions that a single injection of Spryng is approximately $600 to $900 per joint and typically lasts for at least 12 months, indicating a benchmark for pricing in the industry.

Legal Proceedings

In February 2025, we received a complaint for a dispute with a vendor with a value less than $ 75,000 for a heating, ventilation, and air conditioning (HVAC) unit.

Related Party Transactions

From October 7, 2024, through November 19, 2024, the Company entered into two convertible promissory notes with an aggregate of $ 200,000 to a related party.
From October 28, 2024, through December 30, 2024, the Company entered into various convertible promissory notes with an aggregate of $ 450,000 to another related party.
On December 20, 2024, the Company entered into a nonconvertible promissory note for $ 100,000 to a related party.

Stakeholder Impact

Shareholders: The company's financial performance and ability to raise capital will directly impact shareholder value.
Employees: Cost-cutting measures and the company's financial stability may affect employee job security and compensation.
Customers: The company's ability to commercialize Spryng and develop new products will impact the availability of veterinary treatments.
Creditors: The company's ability to repay its debts is dependent on its financial performance and ability to raise capital.

Next Steps

The company plans to increase its commercialization efforts of Spryng in the United States through its distribution relationship with MWI Veterinary Supply Co. and the use of sales reps, clinical studies, and market awareness to educate and inform key opinion leaders on the benefits of SpryngTM.
The company anticipates these and other studies that we plan to initiate will be primarily used to expand our distribution outlets since the large international and national distributors generally require a third-party university study and other third-party studies prior to including a product in their catalog of products.

Key Dates

Date	Description
2007	Spryng completed a safety and efficacy study in rabbits.
2009	PetVivo Holdings, Inc. was incorporated in March 2009 under Nevada law under a different name.
2020-07-10	Board of Directors unanimously approved the PetVivo Holdings, Inc. 2020 Equity Incentive Plan.
2020-09-22	The 2020 Plan was approved by stockholders at the Annual Meeting of Stockholders.
2020-11-05	Entered into a clinical trial services agreement with Colorado State University.
2021-02	The Company established a 401(k)-retirement plan for its employees.
2022-03	The Company successfully completed an equine tolerance study.
2022-05	Began two canine clinical studies with Ethos Veterinary Health, the first beginning in May of 2022.
2022-06-17	Entered into a Distribution Services Agreement with MWI Veterinary Supply Co.
2022-10-14	The stockholders of the Company approved the PetVivo Holdings, Inc. Amended and Restated 2020 Equity Incentive Plan.
2023-01-10	The Company entered into a new lease agreement for approximately 14,000 square feet of production and warehouse space.
2023-06	Began two canine clinical studies with Ethos Veterinary Health, the second beginning in June of 2023.
2023-09	David Masters executed the long-term agreement, and the Company recorded a settlement expense of $ 180,000.
2023-10	The settlement was paid in October 2023.
2023-12-18	The Company entered into a Distribution Services Agreement with Covetrus North America LLC.
2024-02-05	The note and accrued interest of $ 123,255 was converted into 164,340 shares of common stock.
2024-03	The Company entered into a convertible promissory note for $ 150,000.
2024-03	Expect this university clinical study to be completed in March 2024.
2024-04-10	The company entered into another promissory note for an additional $ 150,000 whereby the new principal balance was $ 300,000 with the same terms.
2024-04-29	The noteholder converted the $ 300,000 principal balance, along with $ 1,558 of accrued interest into Units, consisting of 430,798 common shares, in addition to the Company issuing 430,798 warrants to purchase shares with a strike price of $ 1.50 per share for a period of three years.
2024-09-09	The Company entered into a convertible promissory note for $ 150,000.
2024-09-27	The Company entered into another promissory note for an additional $ 350,000 with the same terms.
2024-10-07	From October 7, 2024, through November 19, 2024, the Company entered into two convertible promissory notes with an aggregate of $ 200,000 to a related party.
2024-10-28	From October 28, 2024, through December 30, 2024, the Company entered into various convertible promissory notes with an aggregate of $ 450,000 to another related party.
2024-12-20	The Company entered into a nonconvertible promissory note for $ 100,000 to a related party.
2024-12-20	The Company entered into a convertible promissory note for $ 25,000.
2025-02	In February 2025, we received a complaint for a dispute with a vendor with a value less than $ 75,000 for a heating, ventilation, and air conditioning (HVAC) unit.
2025-02-09	As of the date of this filing, the September 9, 2024 promissory note was amended with a new maturity date of February 9, 2025.
2025-02-14	Report date.
2025-02-24	As of the date of this filing, the September 24, 2024 promissory note was amended with a new maturity date of February 24, 2025.

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