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Date
Friday, August 15, 2025 at 9 a.m. ET
Call participants
President and CEO — Michael Brigham
Chief Financial Officer — Tim Fiori
Investor Relations — Joe Diaz
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Risks
Potential Sales Softening— CFO Fiori directly cited a temporary boost from fulfilling backlog orders.
FDA Approval Dependency— CEO Brigham said, "it is the final hurdle to FDA approval and we're eager to get it resolved, but it is it's almost totally out of our control," referencing delays related to third-party contract manufacturing organization (CMO) inspection issues.
Takeaways
Annual Revenue Growth-- Product sales (GAAP) increased by 22%, or $5.1 million, over the trailing twelve months ended June 30, 2025, compared to the prior year.
Inventory & Backlog-- The $4 million order backlog as of March 31, 2025, was eliminated by the end of Q2 2025, with inventory levels rebuilt at distribution; CFO Fiori noted this likely provided a "temporary boost" to sales in 2025.
Adjusted EBITDA-- Adjusted EBITDA for Q2 2025 was $1.43 million, up from negative $119,000 in Q2 2024.
Cash Position-- Cash increased to $6 million at June 30, 2025, up from $3.8 million at December 31, 2024.
Debt Refinancing-- The company refinanced debt, reducing the interest rate and replacing a $2 million balloon payment due in 2026 with a five-year note payable through 2030.
Product Portfolio Expansion-- CEO Brigham said, "First Defense product line now should be seen as a suite of related products with expanded uses and appeal." citing new product formats and niches pursued, such as spray-dried colostrum for large ranches.
Retain Commercialization Plan-- A full commercial launch for Retain will not proceed until FDA approval is obtained.
Retain Inventory Utilization-- All previously built Retain inventory will be used in investigational product use studies in the second half of 2025, generating no sales or gross margin, with CFO Fiori clarifying, "that inventory for retain has already been expensed, so there is no, you know, impact coming in the future."
Strategic Options for Retain-- Management is exploring partnerships offering financial and marketing support "take this to the next step" for Retain, with flexibility on structure and participation dependent on investigational study results.
Summary
ImmuCell(ICCC -10.71%) reported significant annual growth in sales and margins for the trailing twelve months ended Q2 2025, fueled by elimination of a large order backlog and completion of production capacity expansion for the First Defense line. Management highlighted that recent inventory replenishment at distributors provided a temporary sales benefit that will not recur, warning of potential near-term softness. Delays in FDA approval for Retain remain outside company control, as a third-party CMO works to resolve outstanding inspection observations. Cash generation improved, driven by stronger adjusted EBITDA for Q2 2025, and the firm restructured its debt, extending maturities and reducing near-term repayment risk. The company advanced its product strategy with new formats and is leveraging previously built Retain inventory for data-generating studies rather than commercial sales in 2025. Management signaled openness to external partners for Retain commercialization but cautioned that a full market launch depends on three key milestones.
Management emphasized a "disciplined approach" for Retain, including completion of investigational studies and review of strategic options for the manufacturing facility if FDA approval remains delayed.
The sales team has shifted its focus from mitigating shortages to actively pursuing new customers and regaining lost ones, as inventory constraints were resolved as of Q2 2025.
CEO Brigham stated, "we were unreliable in supply in the past, but we are ready to ship every day going forward." affirming improved operational execution.
Plans for a further production increase to support $40 million in annual revenue remain on hold, with timing subject to cash flow performance and ongoing evaluation by management and the board.
Industry glossary
CMO (Contract Manufacturing Organization): A third-party entity contracted to provide aseptic filling or other manufacturing services for pharmaceutical products; the regulatory status of the CMO can impact product approval timelines.
Bacteriocin: A class of antimicrobial peptides produced by bacteria, such as nisin in Retain, intended as an alternative to traditional antibiotics in animal health.
Scours: Diarrheal disease in newborn calves, a key health challenge addressed by the First Defense product line.
Full Conference Call Transcript
Michael Brigham: We are the investor relations consulting firm for ImmuCell. Thank you again for all of us who are joining us today to discuss the unaudited financial results for the second quarter ended 06/30/2025. Listeners are reminded and cautioned that statements made by management during the course of this call include forward-looking statements. Which include any statement that refers to future events or expected future results or predictions about steps the company plans to take in the future. These statements are not guarantees of performance and are subject to risks and uncertainties that could cause actual results, outcomes, or events to differ materially from those discussed today.
Additional information regarding forward-looking statements and the risks and uncertainties that could impact future results, outcomes, or events is available under the cautionary note regarding forward-looking statements or better known as a safe harbor statement provided with form 10-Q and the press release that the company filed last night along with the company's other periodic filings with the SEC. Information discussed on today's call speaks only as of today, Friday, 08/15/2025. The company undertakes no obligation to update any information discussed on today's call. Please note that references to certain non-GAAP financial measures may be made during today's call.
The company included definitions of these terms as well as reconciliations of these figures to the most comparable GAAP financial measures in last night's press release in order to better assist you in understanding its financial performance. With that said, let me turn the call over to Michael Brigham, President and CEO of ImmuCell Corporation, for opening remarks. Michael? Great. Thank you, Joe, and good morning, everyone.
Michael Brigham: So yes, I would like to make a few opening comments. We are in the midst of a very positive transition right now at ImmuCell. Our investment to increase production capacity for the First Defense product line to support $30 million or more in revenue per year is now complete. For sure, this took longer than we had planned as the process was plagued by certain contamination events and other challenges. That said, it is done, and we are in a good place going forward. With regards to our very long development timeline with Retain, we are now initiating investigational product use studies to test market acceptance in the field over the second half of the year.
While, of course, we would prefer commercial sales under an FDA approval, we'd like to say that we are going to get paid in data. This data will inform our exploration of strategic options and the future plan for this product as we continue to anticipate the FDA approval. At this point, I'm gonna turn the call over to Tim Fiori, our CFO, to review some second quarter financial highlights. Then I would like to offer a few comments from a strategic perspective. After which, we will open the call for your questions. So, Tim?
Tim Fiori: Thanks, Michael. Product sales during the 2025 increased by 18% or $972,000 over the 2024. Product sales during the 2025 increased by 14% or $1.8 million over the 2024. Product sales during the twelve trailing twelve-month period ended 06/30/2025 increased by 22% or $5.1 million over the trailing twelve-month period ended 06/30/2024. This period of increased production output allowed us to effectively eliminate our backlog of orders and rebuild inventory at distribution. During this period of short supply, we often shipped direct to critical customers to keep them in supply. Now we are back to only shipping through our normal distribution channels. Refilling the distribution pipeline after an extended backlog likely provided a temporary boost to sales.
Because this inventory rebuild is not expected to repeat, we may experience a softening in sales during the 2025. We also realized some good gross margin improvement during the 2025. Gross margin as a percentage of product sales increased to 44% during the 2025 compared to just 22% during the 2024. Gross margin increased to 43% during the '25 compared to just 28% during the 2024. Gross margin increased to 37% during the trailing twelve-month period ended 06/30/2025 compared to just 26% during the trailing twelve-month period ended 06/30/2024. Remain successful, we must regain customers that we lost during our period of short product supply and increase market share.
Operating without significant contamination events or equipment breakdowns and also achieve strong production yields. I'd like to talk for a moment about adjusted EBITDA because the impact of non-cash appreciation expense on our bottom line is significant. Be clear, adjusted EBITDA as opposed to just EBITDA includes an add back of stock-based compensation expense, which is another non-cash that is included in net income as calculated in accordance with GAAP. We created an adjusted EBITDA of $1.43 million, $3.7 million, and $5.3 million during the three-month, six-month, and twelve-month periods ended 06/30/2025 respectively. These strong results compare very favorably to adjusted EBITDA of negative $119,000, negative $161,000, and negative $370,000 during the three-month, six-month, and twelve-month periods ended 06/30/2024, respectively.
These strong results helped us increase cash to $6 million as of 06/30/2025 from $3.8 million as of 12/31/2024. On a final note, you may have seen our press release Tuesday night about the refinancing of a portion of our bank debt. We were able to reduce our interest rate and avoid large balloon payments that were due during the 2026 with a new five-year note payable through the 2030. With that, I will turn the call back to Michael. Michael? Great. Thanks, Tim.
Michael Brigham: So we are very focused on the commercial opportunity that we have with First Defense. We are pleased to see traction of the new product formats of First Defense that we have introduced. To the point where the First Defense product line now should be seen as a suite of related products with expanded uses and appeal. Our financial recovery and improvement show up in the favorable adjusted EBITDA results that Tim just touched on. Eliminating the order backlog has been a critical business objective for some time now. Our focus remains on both recovering from the disruption caused by the prolonged supply shortage and capturing increased market share with a goal of building a long-term growth track.
With regards to Retain, we expect producers to become excited about identifying and treating cows at the subclinical stage with Retain thereby creating a substantial animal welfare benefit. That is because animals infected with subclinical mastitis often go untreated and progress to the clinical disease state. Once cows are that sick, they require antibiotic treatment, may die, or be culled from the herd. The success of this product will depend largely on our ability to implement treatment protocols in a way that the niacin we deliver to treated cows does not interfere with starter cultures that are used in some milk processing methods to make, for example, cheese and yogurt.
One of our challenges is to find optimal treatment in milk processing to avoid such issues. The following comment is a very important issue to me. We hope that milk processors will engage in this evaluation with us in order to help the dairy industry improve the health of certain sick cows often go untreated, while at the same time improving the quantity and quality of milk that is produced also reducing abortion rates. We believe that treating subclinically infected cows could enhance best practices in the industry.
It is common practice for cows to be treated with traditional antibiotics that are also used in the prevention of certain diseases in humans, which is a growing public health concern in our society. Active issue with the FDA largely because the growing evidence that this overuse of traditional antibiotics contributes to antibiotic resistance and the rise of superbugs. Or pathogens that are resistant to these antibiotics.
Our bacteriocin is an alternative to these traditional antibiotics that are used in human medicine because our active ingredient niacin is not used in human health care, Retain would not contribute to this significant public health concern and could help the industry address an important sustainability objective, that being the overuse of antibiotics that are medically important to human health care. While at the same time improving the quantity and quality of milk produced by treated cows. While sustainability objectives call for reducing the use of antibiotics in food-producing animals, no new FDA-approved drug to treat mastitis has been developed in years.
In the big picture, we are introducing an entirely new class of antimicrobial as an animal drug, a bacteriocin, that does not promote resistance against antibiotics used in human medicine. Making it more socially responsible. The industry could keep treating this very significant disease with traditional antibiotics, but it takes innovation to bring a bacteriocin like niacin to market. We believe our product fits very well with where the industry is going to be in the coming years. So while being mindful and prudent of how much cash we invested in inventory, that would have a short expiry date if market launch were delayed, we did build inventory during '22 and '23 to support potential initial sales of Retain.
Over the 2025, we plan to use this inventory on hand that now has a relatively short shelf life in investigational product use studies. Collecting market feedback about product performance in the field in collaboration with Michigan State University. We do not anticipate the investigational product use to generate sales or gross margin. Although the FDA granted zero milk discard period for Retain in 02/2018, we decided to introduce a short discard period in these studies out of an abundance of caution. This is because niacin levels, while considered safe for adult human consumption, can impact certain milk processing applications.
Even if we conclude that a milk discard period is required by milk processors at launch, we expect it to be significantly shorter than those associated with traditional antibiotics currently on the market. Further, discarded milk is often fed to calves and we believe that this discarded milk will be much healthier for calves than antibiotic-laden discard milk. It is our objective to complete the investigational product study and data analysis during the 2026. At the same time, we are reducing product development expenses and exploring potential strategic options for our novel technology. Our go-to-market strategy for Retain has evolved in response to FDA approval delays and cash constraints.
A full commercial launch will not proceed until three key conditions are met. One, FDA approval is obtained. Two, a validated aseptic fill solution is in place. And three, adequate cash is available to produce commercial inventory. In the meantime, we are focused on three key projects. At being one, conducting the infield investigational product use trials, could provide valuable insights into how producers perceive the product's benefits and integrate the product into their herd health protocols. And two, evaluating strategic options that could offset some cash requirements and enable a mass market launch of Retain. And three, investigating alternative uses for the Retain manufacturing plant and equipment.
This disciplined approach is intended to protect shareholder value, ensure regulatory compliance, and support a successful market entry. So lastly, I encourage you to review our corporate presentation slide deck. I believe it provides a very good summary of our business strategy and objectives as well as our current financial results. An August update was just posted to our website last night, See the investors section of our website and click on corporate presentation or contact us for a copy. With that, we would be happy to take your questions. Let's have Nick open up the lines, please.
Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, At this time, we will pause momentarily to assemble our roster. Once again, if you would like to ask a question, please press star then one. And your first question today will come from Andrew Rem with Odinson Partners. Please go ahead.
Andrew Rem: Morning, gentlemen. I guess my first question is, you noted that second half sales down because you kinda worked through the backlog?
Tim Fiori: Can you say what organic growth if we exclude the benefit of backlog sales in the first half was Hi. This is Sam. No. I don't think we are gonna specifically mention a number. I would mention that the backlog at the March was at 03/31/2025 was $4 million and we have worked through that backlog, you know, during the second quarter. With some of the orders being canceled, most of them being filled. And I think that's as far as we can go. I know, Michael,
Michael Brigham: Yeah. No. I think you're right, Tim. I mean, we really stay focused on GAP. Sales out our door. Our sales team has discussions with distribution and you know, obviously tries to keep them full. But we don't have reporting requirements there or reporting results there. It's yeah. I think we stick with gap out our door, but we're we're in enough conversations to raise it as a caution. It's a it's it's essentially a one-timer I do think the long-term plan, is solid, but we gotta get through this And I think that answer is gonna play out over Q3 and Q4. this bubble. Alright. And then can you guys give an update on kind of retain?
I think in your 10-Q from the first quarter, I think you had mentioned you had a facility inspection, and we're kind of I think you got a $4.83. I think you responded to that, but has there been any additional back and forth with the FDA relating to that, or can you speculate on the delay in potential approval?
Michael Brigham: No. It's a good question, Andrew. And just for clarity, there's sort of two sides to this. So there's the ImmuCell side where we make the drug substance. We have passed inspection. We do not have a four eighty-three. We've been in that good condition for quite some time now. The challenge the frustrating challenge is that we do use a CMO for filling aseptically filling our drug substance into the tubes And that CMO is under has to resolve 43 inspection observations. And I wish as much and probably more than you that I could put a timeline on that. It's extremely frustrating. It's been going on for over a year now.
I do know with confidence they're working hard on it. But I don't know the timing on either end. They're they're their success or the FDA's agreement to their success It's an open inspection that they are motivated to resolve not just for Retain, but for other products in their suite. And it is the it is the final hurdle to FDA approval and we're eager to get it resolved, but it is it's almost totally out of our control, and the FDA and the CF are working on it. Okay. That's that's helpful.
You guys had also mentioned you've got some inventory, which it sounds like it's coming up close to expiring, so you're gonna use that as part of your investigational. Can you just comment on how much inventory will be expiring in that let's say, the second half of the year, that would be part of that investigational use.
Tim Fiori: Well, not in, like, numbers of tubes and certainly not in dollar value because it will not generate sales, as I mentioned, But the answer is all of it. This is product was produced in anticipation of commercial launch It will all be used for investigational. It will not generate revenue and I think as I mentioned, that coming back to commercial launch will require new production and we have not put the cash to that. That at this point because we think it's better to con get the approval, complete the investigational, and then see what our strategic options are. And that will really have yeah. Tim, comment on the p and l impact. Yeah.
Tim Fiori: So that inventory for retain has already been expensed, so there is no, you know, impact coming in the future.
Andrew Rem: Right. Okay. And then can you just maybe provide maybe some examples of the type. When you mentioned you mentioned a few different times here, including in the press release pursuing some strategic options. Like, what might be some of the different forms that could reasonably take.
Michael Brigham: Yeah. So, you know, I think the number one priority would be I mean, we are a relatively small company with a relatively small sales team, and that team is very, very focused on first defense. So bringing in a larger marketing group that could we hope they would look at our investigational study data get excited and then help us with that launch. Financially and, you know, in the barn. Introducing a very different, a very novel, very new way to treat a disease state subclinical mastitis that's not treated today. So we were looking for a financial support and marketing support to take this to the next step.
And, you know, we'd like to think that we would be a manufacturer but you know, that's that those negotiations are really open and really flexible. As to what form that takes. But conceptually, it would be financial support and introducing a novel product to commercial launch requires you know, a lot of a lot of time in the barn, a lot of time with producers and so some combination that brings us that commercial launch with less financial exposure based on good data that we hope to get from this study during the 2025.
Would a would a distributor not necessarily be a good partner just because they might have the distribution channel, but they would lack kind of the experience or knowledge around on the manufacturing side or even maybe the willingness to put up capital?
Michael Brigham: Yeah. I think I think you've almost answered your own question, and I would agree with your answer. I mean, we this distribution our distribute distribution partners are essential. They're key. They do a great job for us. Our sales team is leveraged by them largely, obviously, right now getting First Defense to market. But as far as selling and changing practice and educating the industry and working with milk processors, and lending financial support, I'd I mean, the phone line's open, but I don't think that's likely. I think it's gonna come more from a strategic than a distributor.
Andrew Rem: I think I think maybe my last question is just, I think you also have mentioned before taking capacity from 30 to 40. Does the timing of that what is that kind of dependent on?
Tim Fiori: Yeah. So we're we're continuing to evaluate the timing of that. There have you know, there's no change in the we've announced in the past, which is essentially that project is on hold. There's some disclosure in the queue about the relative cost of moving to from supporting $30 million in revenue to $40 million plus approximately. But no news on the timing, I think. I think it's you know, very important decision for our management and for our board, and timing is essential. And we're just gonna watch this over the second half of the year just to make sure the cash flows are right.
We're very happy to be over 30, and we're very optimistic that we will need to be over 40 in not too far out. So careful evaluation and under consideration timing is everything. Cash flow is everything.
Andrew Rem: Okay. Maybe last question. On First Offense. It sounds like the sales team maybe has had some distraction at but now or more recently, have greater focus Can you comment on how you think that will help that product line? First Defense? Yeah. I'm guessing. And if there's a distraction to our sales team, that would be I think you might be referencing does the sales team sell product when it's on short supply. So they've been very distracted dealing with a lot of very irritated distributors and customers that couldn't get the product they need. They did the best they could to manage that short supply, but that is distracting from new business. New territories, new customers.
Out of central need of we didn't we couldn't it would only make our backlog bigger if we brought in new business. It's a great flip here right around June 30 going into the going into the third quarter where now they are confident that we have adequate very sufficient inventory Go get the customers that we may have lost during short supply. Go get the new business wherever they can find it, dairy, beef, new territories, They're back to what is what they like doing, which is selling.
Andrew Rem: Is someone that too part of I may be using the wrong word, but kind of rebuilding your reputation and the marketplace, but I assume some of that is not necessarily starting on June 30. Your ability to unwind the backlog, I would hope that kind of helps in that process, but maybe just talk about some of the challenges of you know,
Michael Brigham: Yeah. I mean half. I would be very fair to say very open to say our reputation was tarnished when we didn't deliver what the wanted. They got frustrated with us. It was the you know, and then efficacy rules. They want the product because it works better than others. So, yes, they were frustrated. That's what the sales team was distracted. On, deal with that frustration. But, you know, with the expansion capacity expansion complete, that phase, that era is over, and we just build back with you know, we were we were we were unreliable in supply in the past, but we are ready to ship every day going forward. So come back to us.
Because efficacy rules, and that's how we'll get them back, the product performance. Yeah. Alright. Well, I appreciate the time. It sounds like you're kinda been some ways, at least for Offenses specifically, a little bit of blue sky, which is kind of a nice environment for you guys to be in. So looking forward to watching you guys and my team kind of execute. So I appreciate it. Thanks a lot. Great quarter. Yep.
Michael Brigham: Thank you, Andrew. Very, very fair comment that's I've felt by each employee at Himself for sure.
Operator: And your next question today will come from George Melas with MKH Management. Please go ahead.
George Melas: Thank you. Hi, Michael. Hi, Sam.
Michael Brigham: Hey. Good morning, George. Good morning.
Tim Fiori: Good morning.
George Melas: You mentioned that you start to get some traction for the new format. For First Defense, and I think that's this pre-dried colostrum. Can you talk a little bit about that and maybe if you already had some sales there and how have you sort of see the market opportunity?
Tim Fiori: Yeah. Just on sales, we're not specifically breaking it out. We definitely did have our first sales in Q2 and we're gonna continue beyond the market. And I think we'll start breaking that out in the in the disclosures in Q3. So we'll provide a little bit more detail as becomes, hopefully, more material. Over time.
Michael Brigham: And Okay. We'll grab Yeah. I just yeah. I think the numbers are early. Yeah. But the feeling and the momentum is certain. I know Bobby and the sales team are really excited about it's a new niche. It's customers. It's it's large ranches with calf feed as opposed to you know, the traditional, you know, the dairy milking operation. And, yeah, so far so good. And I'll stand with Tim's comment, and I think third quarter is the right time to start. We've always recently given that Tri Shield product line breakout and I think it's appropriate to see where we get to in the third quarter and start Tri Shield.
Spray dried, and other just to give it bit better. But an exciting start You know, it's quite a buildup. A great job by the production team and by the sales team to get this new format out there and it's that's how we grow. Same technology in different formats, different packages, different markets, different customers.
George Melas: That sounds really good. And it would be great if you could I appreciate that you will break it out. That will I think, sort of enrich the conversation. Regarding regaining customers, are you talking primarily about sort of second-tier distributors that were somewhat neglected Are you talking about end customers or are you talking sort of about both?
Michael Brigham: It is a little bit of both, but mostly, it's end customers. When you know, distribution will move whatever we they have available. And we'll you know, some got more than others. So, you know, same balance act or rebound act is important, but, you know, it's the end customers that just had to switch to a different product. They have to try something else. To take care of their calf. Those are the ones that gotta get back and they can call their distributor, and the answer will be it'll ship tomorrow.
George Melas: Okay. So is your Salesforce really energized right now that they can really sell as opposed to sort of take phone calls from customers and they couldn't, you know, deliver on.
Michael Brigham: Energized? How do I say that more strongly? I mean, it's a new world, George. I mean, it was really hard for them. Was really hard for everyone. And this is what they're just this is what they do for a living. This is what turns them on, and they are fired up. Yep. It's a great it's a I'm sorry that they had to go through what they went through on short supply, and I'm excited for what they're gonna deliver tubes in the cooler.
George Melas: Okay. Great. And then a couple more question. I looked at the frozen colostrum inventory, and it's well flat. It came down a little So it seems after two very strong quarters of production, I was a little surprised that it didn't come down. So you still you have a very strong inflow. So of cholesterol. Of milk from the cows. How do you see that over the next six or twelve months?
Tim Fiori: Yeah. Just on inventory in general, you're right. We do have a strong network of farms that can provide cloth to us and we'll, you know, we're going to evaluate inventory over time as we see sales come in during the second half and manage that appropriately. And I think, you know, just preventing
Michael Brigham: a return to backlog is probably the number one priority And so, yeah, cash management is essential and know, obviously, super important. But this inventory, this frozen cloth does have a long shelf life. So it's a little bit of a security blanket, and the rebound plan would be the build work it down and spray dry as part of that strategy. But, yeah, it's pretty high right now and I back to Andrew's question on when do you go from 30 to 40. Those are the things we're managing. Whatever steps we take, are influenced by cash, and by no return to backlog.
George Melas: Okay. But you made progress on those counts this quarter because net debt is down significantly? And backlog is gone, and you have some finished good inventory. So it seems like you're in good shape there.
Michael Brigham: George, I missed it. You said backlog was down. We agreed. Some the other piece we missed. What else?
George Melas: My net debt went down meaningfully. So you made progress both on the cash position and on being able to serve customers.
Michael Brigham: Yeah. I'm sorry, George. We're definitely agreeing with your backlog down. That was key. Did you say debt was down? I missed that.
George Melas: Yeah. The net debt was down significantly as well.
Tim Fiori: Yeah. So we were able to refinance a couple of our loans and as part of that, we eliminated a balloon payment right around $2 million And so the debt in total is around the same amount, but we did eliminate balloon payment in 2026.
George Melas: Right. Right. And then Taking a Yeah. Taking a twenty-six balloon and
Michael Brigham: spreading it over five years. Yeah. But you'd like Tim said, total is still
George Melas: it was it was a it was a
Michael Brigham: it was just kind of a wash on the total, same total. Right. And then on the beef segment, that's my last question. It's
George Melas: very seasonal. It is primarily December and January. What historic how big historically has that segment been for any cell? And sort of what are you trying to do to build that side of the business?
Michael Brigham: Yeah. It's hard because, again, we sell the distribution, and we don't know where they ship to. We don't get that kinda data, but we know just by historical seasonality. We know the way the beef guys do their calving early in the year. We know that's spike is largely due to beef, but also, you know, there can be seasonal challenges on scours and maybe some people do treat more in a in a stressful cold winter. But beef is important and beef is difficult. Like, we can do big dairies in, you know, one sales call. Can address 10,000 calves. Visa is much more spread out, much more smaller.
So a lot of that work, you know, is done by marketing and just you know, in the in the right pockets with the sales reps in the beef area do the on-site on farm, on ranch visit, but we've what's new on that area to address beef is probably the biggest new thing is what Bobby, the VP of sales, has done with the marketing campaign so we could reach a lot of people without a lot of truck rides.
George Melas: Okay. Great. Okay. Thanks very much.
Michael Brigham: Thanks, George. Appreciate it.
Operator: Once again, if you have a question, please press star and then 1. Please stand by as we poll for questions. Seeing no further questions, this will conclude our question and answer session. I would like to turn the conference back over to Joe Diaz for any closing remarks.
Joe Diaz: Thanks to all of you for participating on today's call. We'll look forward to talking with you again to review the results for the quarter ending 09/30/2025 sometime during the week of November 10. Thank you, and have a great day.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.