Greetings, and welcome to the PetVivo Holdings fiscal year ending March 31st, 2022 financial results conference call. I am John Dolan, the Chief Business Development Officer and General Counsel of PetVivo. Today's call is being webcast and will be posted on the company's website for playback. Before we begin, I would like to remind everyone that comments made during this conference call by PetVivo's executives may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to risks and uncertainties. Any statement that refers to expectations, projections, or other characterizations of future events, including financial projections or future market conditions, is a forward-looking statement. PetVivo's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings.
PetVivo assumes no obligation to update any such forward-looking statements. PetVivo filed its earnings release with the SEC today, which provided a detailed discussion of our financial results. We filed our 10-K on Friday, June 24th, 2022. Both of these documents can be found in the SEC website and the investor relations section of our website. I would like to now turn the conference over to John Lai, the CEO and President of PetVivo. Please go ahead, John.
Thank you, John, and welcome everyone. Joining me today will be Robert Folkes, our Chief Financial Officer. I would like to begin by discussing some of the highlights from the last fiscal year, then Bob Folkes will discuss our financial results, financial conditions in much greater detail. I will conclude by sharing additional thoughts on our business strategy and key focus areas for fiscal 2023, and we'll then open it up for questions. Our key highlights for fiscal 2022 were that we raised $11.25 million in a NASDAQ uplist in August of 2021. The last two quarters, we generated over $100,000 in sales in Spryng, and then also rebranded our product, the name Spryng, and launched two websites, sprynghealth.com and petvivo.com. Sites specifically targeting the veterinary space with sprynghealth.com.
We're also partnering with Ethos, which is a private organization that does clinical research. We're doing a canine tolerance study as well as an efficacy study over the next several quarters, and we've really attracted some very seasoned management team. Basically putting all the right pieces in the right places to really help the company and drive sales. I would like now to turn the call over to Robert Folkes, our Chief Financial Officer, who will be discussing our recently completed registered offering and our financial condition.
Thank you, John, and good afternoon, everyone. The most significant event from last year was the uplisting to NASDAQ that John mentioned, in which the company raised, our net proceeds was $9.78 million. That was in August of 2021. This really provided the necessary capital for the company to commercialize Spryng, which began in September of 2021. At March 31st, 2022, the company had $6.1 million in cash and cash equivalents, and working capital of $5.6 million. We increased our inventory to 98,000 in order to support our expected revenue growth in 2023. We continue to use the net proceeds from our initial public offering to expand our sales and marketing efforts and clinical studies to gain vet acceptance and increase revenues from the sale of Spryng. Now I will turn the call back to John.
Thank you, Bob. I would like to talk more about our recent developments and key focus areas for fiscal 2023. As we reported in our 8-K on June 24th, the company entered into a distribution service agreement with MWI Animal Health, a subsidiary of AmerisourceBergen, ticker symbol ABC. We are excited to partner with MWI, as they are one of the largest distributors in the veterinary products in the world, with over 400 territorial managers in the United States. We expect the distribution agreement will help expand our awareness of Spryng, as well as the introduction of our product within the United States to veterinary physicians, and we anticipate distribution or shipment by the second half of July 2022. We expect the product to be shipped to multiple distribution centers for MWI.
I would also like to discuss our clinical studies, which will help us support our relationship with MWI. Many national distributors such as MWI like to see third-party university studies as other third-party publications, including product catalog before they include in their product catalog. In addition, we expect to have more clinical data about efficacy of Spryng that will help us gain more acceptance within the veterinary space. We entered into a clinical trial service agreement with Colorado State University on November 5th, 2020, to evaluate the injection of Spryng into elbows. It was a double-blind elbow study. Because of COVID, we were delayed significantly, but the study has been moving forward, and enrollments of dogs have been picking up, and we expect the completion of this study sometime in November 2023.
We also entered into a canine clinical study with Ethos Veterinary Health in May 2022, with anticipated completion date in sometime in fiscal 2023, so that means by March 2023. This pilot study will help evaluate the intra-articular injection of Spryng in dogs in the stifle disease. It will initially product tolerance and then eventually efficacy. We expect to conduct additional trials or studies in order to gain vet acceptance of Spryng. As I mentioned at the beginning of the call, we have established a new website, sprynghealth.com. Within that, Dr. Tracy Turner, board-certified equine surgeon and a recognized veterinary expert in equine lameness and a member of our advisory board, has developed a video Q&A series.
I believe there are 16 short videos on answering certain questions with the use of the product Spryng in treating joint health issues. Dr. Turner consults the United States Equestrian Federation. He has worked at the four Pan Am Games and two World Equestrian Games and, in 2020, the Tokyo Games. I would like to open it up for questions. Operator, could you kind of go over the instructions on how people calling in can ask questions?
Everyone, if you have a question at this time, please click Raise Hand at the bottom of the screen. If you called in to the meeting today, you can press star nine to raise your hand. Okay. It looks like we have a couple questions here. The first one is Gary Z.
Hi, Gary. Go ahead.
Gary, it looks like you're still muted. You can press star six to unmute yourself.
Okay. Can you hear me?
We can hear you.
Thank you. Right. It's Gary Zwetchkenbaum , by the way. John, I'd like to congratulate you guys and the whole PetVivo team on a great exclusive distribution agreement with MWI Animal Health, a subsidiary of AmerisourceBergen. John, if you would discuss a little bit about the agreement, meaning you had, I think, a sales staff of roughly five people, including your national sales manager. How many outside salespeople are you getting from MWI who will be selling Spryng, and how many of their support staff will be taking orders for your products, you know, with phone and et cetera? I also understand that MWI is gonna be a customer, and they're gonna purchase inventory to sell to their veterinary customers directly.
You can tell me a little bit about how the orders begin and when you are gonna start sales, if it starts?
Sure
...in July and, if you would, please. Thank you.
Yes. I'll take the last one first. I think it was related to, Oh, God, I can't remember which one was first. I'll just try to answer, and then if I miss it, let me know.
Thank you.
Basically, in theory, there should be about potentially over 700 sales reps that will have the ability to. I gotta mute you, Gary, because I'm getting feedback. Can you mute yourself? Thank you. Basically, there's 700. We, as part of the agreement with MWI, will provide educational resource material as well as training of key trainers and sales managers to help roll the product out properly, so there is a little time involved in that. As discussed in the 8-K, we talked about promoting, marketing, and them doing distribution. Basically, they will ship to various distribution centers.
They'll order from us, put it into the distribution centers, and then they will be able to support their salespeople to get product in the hands of the veterinary doctors much faster than we could if we were fulfilling. Furthermore, we will be expanding in-house additional sales reps to be able to support the 700+ reps in the field. Our people will become like manufacturers reps that have very good experience in handling 100, 200 sales reps under them from the years of experience in the field. We'll be hiring more people in that space in the next 60 days. Also, we're looking at potentially an in-house support staff to be able to be customer service oriented to assist with MWI questions as well as the veterinary doctor questions.
I believe I answered all the questions you had.
Anyway, I'm excited about the release, and hopefully to hear updates on sales as you go through this quarter and the next quarter. Thank you very much.
Thank you.
Okay, we have a second question now.
Okay.
Okay, you can go ahead.
I believe it's Anthony, right?
John, it's Tony Fitzgerald.
Yes, Tony.
Can you hear me?
Yes, I can.
Congratulations on the quarter. I wanted to just make sure that I was clear on which of your products are currently in the market.
It's Spryng with OsteoCushion Technology. I understand the 8-K says other veterinary products, which they do for the next two years and possibly three years. As part of our plan and in the previous presentations, as well as our PowerPoint, that's up on our website, the most recent one just got uploaded, I believe yesterday.
Mm-hmm.
It does have other products in the veterinary space, so definitely that would be a possibility of helping us get faster adoption of the other products.
Great. Thank you.
Thank you.
We have another question here who called in.
Okay.
Go ahead and press star six to speak, please.
Hello. Thank you for taking my question. My question is about your target market in the horse area, particularly related to the cost of the product. You know, does that fit into, like, only horses that will race? Is this horses that, you know, an average family farm might have? Who's your target market for this product?
It would be pretty much anyone that has a horse, because if you look at the chart within our PowerPoint, it shows the cost of a Spryng injection is between $600-$900. What we have seen in real world cases is that after the injection, there is a reduction in the use of other products, such as you know, the various HA injections and so on. There is a potential reduction in NSAIDs and so on. There is a cost savings. The economics really works out. We've seen that with Bender and other racehorses, but not just racehorses, but horses in general. The amount of follow-up therapy needed for you know other products is reduced.
If I could follow that up with another question. Based on the sort of, for lack of a better word, 'cause I'm not an accountant, the money you have in the bank, how much farther do you anticipate going before you're gonna need to do another raise of money?
Yep. Since the uplift, we have always targeted sometime in the first quarter of calendar quarter of 2023. We always figured and stated in those presentations that we believe we would have material events that would justify a better valuation to bring in a small amount of capital.
Mm-hmm. Okay. If you don't mind, one more question. Does this product you're planning on bringing to the dog market also maybe the cat market too, I don't know, do you anticipate the injection costs for a typical customer and a typical suburban dog owner to be less than $600-$900, or what do you anticipate there?
No, it would be pretty much the same.
Okay.
We are selling to canine customers already, okay?
You are? Okay.
Yeah. Yes. The difference is now we have a group that's already have established relationships with many of the veterinary doctors. MWI probably have accounts open with over 90% of existing veterinary clinics. It's much easier.
Mm-hmm
to go in and get the attention and start talking about the product use. If you look at our chart that I talk about the product uniqueness or pipeline or cost, you'll see that there's significant economic benefits of using ours versus the competitor ones. Just your standard generic NSAIDs, it's gonna be $400 a year, and that's pretty much focused on masking the symptoms with potential side effects.
Sure.
Also, you know, the compliance issue with the dog owner or the pet owner trying to give the pill to the dog.
Sure. Okay. All right. That's it for my questions. Thank you.
Thank you.
It looks like that's all the questions, for now.
Okay. If there are no more questions, I think we can end the conference call.