Aug 14, 2026 earnings call — PBM acquisition and PetVivo.ai commercial rollout
Revenue rose 13% to $338,000 this quarter.
Revenue $0.0B (est $0.0B) · EPS $-0.05 (est $-0.08)
Analyst Q&A 7
Opening remarks and product updates
Q (John Lai): No question. This was management's prepared remarks before Q&A covering PetVivo.ai, partnerships, Spryng regulatory progress, PBM acquisition, marketing and hires.
A: Management described PetVivo.ai and its AgenticPet partnership, said the beta reduced customer acquisition costs and that the platform will launch commercially in the next few months. They also reviewed PBM deal progress, Spryng regulatory recognition in Canada, clinical studies in progress, and marketing hires.
Grants filing and transaction contingency
Q: Analyst asked whether they filed grants with PBM and which entity filed them, and asked what happens if the transaction is not completed.
A: John Lai said the grant filings are part of the technology effort and that they filed for grants across 5 different product categories and may be eligible for R&D tax credits. He said the filings were done by both parties and that he could not answer legal questions about what happens if the transaction fails and suggested asking attorneys.
"We were able to file for grants that I think we said in the call here, 5 different categories of products for grant availability, and we would get acknowledgment of how much grants we get." — John Lai (CEO)
Who formally filed the grant
Q: Analyst asked to confirm the University of Connecticut filed the grant and what happens to PetVivo's involvement if the merger does not occur.
A: John Dolan said the grant was formally filed under UConn with PBM and PetVivo listed as sponsors and that there will likely be an amendment to include PetVivo as an applicant. He added that if the merger did not happen, the grant would still go forward and they would still be beneficiaries.
Capital raise and R&D spend
Q: Analyst asked about plans to raise the $5 million needed to close the PBM transaction and what percent of SG&A is currently dedicated to R&D.
A: John Lai said they could not discuss details of the capital raise but that everyone is confident it is secured and close. Garry Lowenthal said R&D last quarter was $233,000 of $1.8 million total operating expenses, that last year R&D was roughly 12% to 12.5%, and that R&D spending will be significantly higher going forward.
"We had $233,000 of $1.8 million total operating expenses for R&D." — Garry Lowenthal (CFO)
R&D team and development stages
Q: Analyst asked whether the projects are still whiteboard ideas and need future funding to move forward.
A: John Dolan said they have roughly 8 people on staff who work at least partly on product development and R&D, including clinical studies, product identification and formulation. He said each product is at different stages: formulation is done for many, some safety work has been done, and final safety and efficacy studies remain.
Who does clinical studies
Q: Analyst asked whether later-stage clinical work is more capital intensive and who does those studies.
A: John Dolan confirmed later stages are more capital-intensive and that they involve not only internal studies but also engaging outside parties to run clinical studies. He did not provide a capital estimate in this exchange.
Budget, FDA path, and gross margins
Q: Analyst asked whether they estimated the capital needed to complete development for all products, and then asked if last quarter included VetStem sales and how that affected gross margins.
A: John Dolan said the capital estimate is still in process but they have done a budget or partial budget for the first product, which is in Stage B and likely will go through an FDA process because it is expected for both human and animal use. Garry Lowenthal said last quarter was roughly 40% VetStem sales (which lowered margins), that the last quarter margin was 66%, the flagship product margin is 90.3%, and starting next quarter sales will be mainly Spryng with expected margins in the high 80s to low 90s.