INVO Fertility, Inc. Q1 FY2023 earnings call

• Existing INVO Centers in Birmingham, Atlanta, and Monterrey made further progress, nearing breakeven and expected to generate positive cash flows and profits soon. - Tampa INVO Center is on track for a midsummer opening, with an excellent team in training and planning. - Kansas City is in early preparation, while the Bay Area clinic opportunity is on hold. - Acquisition of the Wisconsin fertility Institute is strategically significant, adding immediate revenue and net income, highlighting the use of public company status to expand in the fertility marketplace, and aiming to integrate INVOcell technology into acquired practices. - Completed tabulating data for FDA five-day label enhancement and submitting it at the end of the week.

The three existing INVO Centers in Birmingham, Atlanta, and Monterrey generated approximately $647,000 in the first quarter, a 108% increase from the year-ago quarter and a 46% sequential increase from the fourth quarter. Revenue for the quarter totaled approximately $348,000. Approximately 85% ($297,000) of Q1 revenue consisted of consolidated service revenue from the Atlanta INVO Center, and the remaining 15% ($51,000) was from product sales of INVOcell. The acquired Wisconsin fertility Institute had trailing revenue of about $5.5 million and net income of around $1.9 million.

• Tampa INVO Center is targeted to open in midsummer. - Closing of the Wisconsin acquisition is on track for the current quarter. - Expect revenue from the Wisconsin acquisition to add scale and accelerate the path to overall profitability.

• Factors beyond the company's control may cause actual results to differ from forward-looking statements, as detailed in SEC filings. - Time delays in the acquisition process, as seen with the Wisconsin deal, could impact timelines.

Q: What were the key drivers behind the 46% sequential increase in Q1 revenues and strategies to promote INVOcell adoption outside operated clinics?

A: The increase was due to building awareness in marketplaces and increasing patient interaction. Strategies include using social media, Google Adwords, and promoting publication to drive awareness around INVO.

Q: About the acquisition strategy, clinic pipeline, and why Wisconsin partnered with INVO?

A: Added resources and streamlined documentation to shorten acquisition timelines. Wisconsin was attracted by the public platform offering, potential equity participation, and the benefits of INVO's technology to grow the clinic.

Q: How to handle product pricing overlap and the acquisition pipeline?

A: Targeting an additional patient market to avoid major overlap. The acquisition pipeline is approached at a measured pace, with the ability to manage a couple of acquisitions per year with current staff, and potential to add resources if needed.