Earnings call transcript: ImmuCell Q2 2025 sees strong sales growth, stock dips

ImmuCell Corporation reported a robust performance for Q2 2025, with a significant increase in product sales and improved gross margins. The company’s earnings per share (EPS) of $0.06 did not meet market expectations, contributing to a 6.25% decline in its stock price. The stock closed at $6.72, marking a notable movement within its 52-week range of $3.34 to $7.60. According to InvestingPro data, the company has delivered an impressive 82.11% return over the past year, with particularly strong momentum in the last three months.

Key Takeaways

• Product sales rose by 18% compared to Q2 2024.
• Gross margin improved to 44% from 22% a year earlier.
• Adjusted EBITDA turned positive, reaching $1.4 million.
• Stock price fell by 6.25% following the earnings announcement.
• New product formats and capacity expansion highlight strategic growth.

Company Performance

ImmuCell’s Q2 2025 results reflect a period of significant growth and operational improvements. The company reported an 18% increase in product sales compared to the same quarter last year, driven by the expansion of its First Defense product line and the introduction of new product formats. The gross margin saw a substantial improvement, doubling from 22% in 2024 to 44% in 2025, indicating enhanced operational efficiency.

Financial Highlights

• Revenue: Increased by 18% year-over-year.
• Earnings per share: $0.06, below market expectations.
• Adjusted EBITDA: $1.4 million, compared to a loss of $619,000 in Q2 2024.
• Cash reserves: Grew to $6 million as of June 30, 2025, from $3.8 million at the end of 2024.

Market Reaction

Despite the positive operational performance, ImmuCell’s stock price fell by 6.25% following the earnings announcement. The decline was partly due to the EPS not meeting market expectations. The stock’s movement is significant within its 52-week range, reflecting investor concerns over the earnings miss.

Outlook & Guidance

Looking ahead, ImmuCell anticipates potential sales softening in the second half of 2025 due to inventory rebuilds. The company is also exploring strategic partnerships and alternative uses for its RETAIN manufacturing plant. Future launches, including the RETAIN product, will depend on FDA approval and other factors.

Executive Commentary

CEO Michael Brigham expressed optimism about the company’s transition, stating, "We are in the midst of a very positive transition right now at ImmuCell." He emphasized the renewed focus of the sales team, saying, "Our sales team is back to what they like doing, which is selling."

Risks and Challenges

• FDA approval delays for the RETAIN product could impact future growth.
• Inventory rebuilds may soften sales in the latter half of 2025.
• The fragmented beef market presents ongoing challenges.
• Economic pressures could affect the demand for sustainable animal health solutions.
• Competition from traditional antibiotic products remains a concern.

Q&A

During the earnings call, analysts questioned the challenges surrounding FDA approval for the RETAIN product and the company’s strategy for recovering lost customers. Executives highlighted their focus on overcoming these hurdles and expanding into new market segments.

Full transcript - ImmuCell Corporation (ICCC) Q2 2025:

Conference Call Operator: Good morning, and welcome to Immutale Corporation Reports Second Quarter Ended 06/30/2025 Unaudited Financial Results Conference Call. Please note that this event is being recorded. I would now like to turn the conference over to Joe Diaz of Lytham Partners. Please go ahead. You, and good morning to everyone.

As the conference call operator indicated, my name is Joe Diaz. I’m with Lytham Partners. We’re 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 the 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?

Michael Brigham, President and CEO, ImmuCell Corporation: Great. Thank you, Joe, and good morning, everyone. So, yes, I would like to make a few opening comments. We we are in the midst of a very positive transition right now at ImmuCell. Our investments to increase production capacity for the First Defense product line to support 30,000,000 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 time line 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 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.

So at this point, I’m going to 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, CFO, ImmuCell Corporation: 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 $1,800,000 over the 2024. Product sales during the trailing twelve month period ended 06/30/2025 increased by 22% or 5,100,000 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 ship 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 second half of twenty twenty five. 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 2025 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. To remain successful, we must regain customers that we lost during our period of short product supply and increase market share while 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 depreciation expense on our bottom line is significant.

To be clear, adjusted EBITDA as opposed to just EBITDA includes an add back of stock based compensation expense, which is another non cash expense that is included in net income as calculated in accordance with GAAP. We created an adjusted EBITDA of 1,400,000.0 3,700,000.0 and $5,300,000 during the three months, six months and twelve month periods ended 06/30/2025 respectively. These strong results compare very favorably to adjusted EBITDA of negative $619,000 negative $161,000 and negative $370,000 during the three months, six months and twelve months periods ended 06/30/2024 respectively. These strong results helped us increase cash to $6,000,000 as of 06/30/2025 from $3,800,000 as of 12/31/2024. On a final note, you may have seen our press release Tuesday night about the refinancing 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?

Michael Brigham, President and CEO, ImmuCell Corporation: Great. Thanks, Tim. So we are very focused on the commercial opportunities that we have with First Defense. We are pleased to see traction of the new product format 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 shows up on 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 the 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 and may die or be culled from the herd.

The success of this product will depend largely on our ability to implement treatment protocols in ways that the nice when we deliver to treat the 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 practices 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 that often go untreated, while at the same time improving the quantity and quality of milk that is produced and 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 prevention of certain diseases in humans, which is a growing public health concern in our society, an active issue with the FDA largely because the growing evidence that this overuse of traditional antibiotics contributes to antibiotic resistance in the rise of superbugs or pathogens that are resistant to these antibiotics. Our bacteria in fact, 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. We think could 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 substantially excuse me, while sustainability objectives call for reducing the use of antibiotics and food producing animals, no new FDA approved drug to treat methotrexate has been developed in years. In the big picture, we are introducing an entirely new class of antimicrobial as an animal drug, a bacteriasin 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 bacteriasome like NICE into 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 we have a short expiry date, If market launch were delayed, we did build inventory during 2022 and 2023 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 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 that being one, conducting the infield investigational product use trial, which could provide valuable insights into how producers perceive the product 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.

Conference Call Operator: Thank you. We will now begin the question and answer session. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. And your first question today will come from Andrew Rem with Odinson Partners.

Please go ahead.

Tim Fiori, CFO, ImmuCell Corporation: I guess my first question is, you noted that second half sales down, can you kind of work through the backlog? Can you say what organic growth, if we exclude the benefit of backlog sales in the first half

Michael Brigham, President and CEO, ImmuCell Corporation: was?

Tim Fiori, CFO, ImmuCell Corporation: Hi. This is Tim. No, I don’t think we are going to specifically mention a number. I would mention that the backlog at the March was at 03/31/2025 was $4,000,000 and we have worked through that backlog 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 don’t know, Michael.

Michael Brigham, President and CEO, ImmuCell Corporation: No. I think you’re right. I mean, we really stay focused on gas. Sales out our door. Our sales team has discussions with with distribution and, you know, obviously tries to keep them full, but we don’t have reporting requirements there or or reporting results there.

It’s a little yeah. I think we stick with gap out our door, but we’re we’re in enough conversations to to raise it as a caution. It’s a it’s it’s essentially a one timer, and I think that answer is gonna play out over q three and q four. I do think the long term plan is solid, but we’ve got to get through this bubble.

Tim Fiori, CFO, ImmuCell Corporation: Alright. And then can you guys give an update on kind of repaying? I think in your 10 Q from the first quarter, I think you had mentioned, you had had a facility inspection and we’re kind of I think you got a four eighty three. I think you responded to that. But has there been any any additional back and forth with the FDA relating to that, or can you speculate on, the delay in potential approval?

No.

Michael Brigham, President and CEO, ImmuCell Corporation: 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 past inspection. We do not have a four eighty three.

We’ve been in that good condition for for quite some time now. The challenge the frustrating challenge is that we do use the CMO for filling asepticly 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. Their their their their success or the FDA’s agreement to their success, it’s an open inspection that they are motivated to resolve, not just for retains, 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 almost exclude totally out of our control, and and the FDA and the CMO are working on it. Okay.

Tim Fiori, CFO, ImmuCell Corporation: That’s that’s helpful. You guys had also mentioned you’ve got 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?

Michael Brigham, President and CEO, ImmuCell Corporation: Well, not in, like, numbers of twos and certainly not in dollar value because it it will not generate sales as I mentioned, but the answer is all of it. This is product that was produced in anticipation of commercial launch. It will all be used for investigational. Investigational. It will not generate revenue.

And I think as I mentioned, coming back to commercial launch will require new production, and we have not put the cash to that at this point because we think it’s better to 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.

Tim Fiori, CFO, ImmuCell Corporation: Yeah. So that that inventory for retains has already been expensed, so there is no p and l impact coming in the future.

Joe Diaz, Investor Relations, Lytham Partners: Right. Okay.

Tim Fiori, CFO, ImmuCell Corporation: And then can you just maybe provide maybe some examples of the type? When when you mentioned you’ve 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 that could reasonably take?

Michael Brigham, President and CEO, ImmuCell Corporation: Yeah. So, you know, I think the number one priority would be and we we we are a relatively small company with a relatively small sales team, and that team is very, very focused on first offense. So bringing in a larger marketing group that could could could we hope they would look at our investigational study data and 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 take this to the next step. And, you know, we we’d like to think that we would be a manufacturer.

But, you know, that that 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 bar, a lot of time with producers. And so some 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.

Tim Fiori, CFO, ImmuCell Corporation: Would a would a distributor not necessarily be a good partner just because they might have the distribution channel, but they they would lack kind of the experience or knowledge around on the manufacturing side or even maybe the willingness to put up capital. Yeah. I think I think

Michael Brigham, President and CEO, ImmuCell Corporation: you’ve almost answered your own question, and I would agree with your answer. I mean, we 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 and and changing practice and educating the industry and working with milk processors and lending financial support, I 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.

Tim Fiori, CFO, ImmuCell Corporation: I think I think maybe my last question is just I think you also have mentioned before thinking capacity from 30 to to 40. Does the timing of that what what is that kind of dependent on? Yeah. So we’re we’re continuing to evaluate the the timing of that. There are you know, there’s no change in the what we’ve announced in the past, which is essentially that that project is on hold.

There’s some disclosure in the queue about the relative cost of moving to from supporting $30,000,000 in revenue to $40,000,000 plus approximately. But no no news on the timing, I think.

Michael Brigham, President and CEO, ImmuCell Corporation: 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 and not too far out. So careful evaluation and under consideration timing is everything. Cash flow is everything.

Tim Fiori, CFO, ImmuCell Corporation: Okay. Maybe maybe last question. On on First Defense, it sounds like the sales team maybe has had some distraction but now or more recently have greater focus. Can you comment on how you think that will help that that product line, First Defense?

Michael Brigham, President and CEO, ImmuCell Corporation: Yeah. I’m guessing. And if there’s a distraction to our sales team, that would be I think you might be referencing how 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. So 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.

So it’s a great flip here right around June 30 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 what what they like doing, which is selling.

Tim Fiori, CFO, ImmuCell Corporation: Is is some of that too part of I may be using the wrong word, but kind of rebuilding your your reputation in the in the marketplace. But I assume some of that is not necessarily starting on June 30. Your ability to unwind the backlog, I I would hope that kind of helps in that process, but maybe just talk about some of the challenges of of, you know Yeah.

Michael Brigham, President and CEO, ImmuCell Corporation: I mean, I I I I would be very fair to say very open to say our our reputation was tarnished when we didn’t deliver what the market wanted. They got frustrated with us. It was you know, and then efficacy rules. They want this 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 that phase, that era is over, and and we just fill 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.

Tim Fiori, CFO, ImmuCell Corporation: Alright. Well, I appreciate the time. It sounds like you’ve kinda been some ways, at least for First Defense specifically, a little bit of blue sky, which is kind of a nice nice environment for you guys to to be in. So looking forward to watching you guys and the team kind of execute. I appreciate it.

Thanks a lot. Great quarter.

Michael Brigham, President and CEO, ImmuCell Corporation: Yep. Thank you, Andrew. Very, very fair comment that’s that’s felt by each employee and himself for sure.

Conference Call Operator: And your next question today will come from George Melas with MKH Management.

Joe Diaz, Investor Relations, Lytham Partners: Good morning. You mentioned that that you started to get some traction for the new format for for for First Defense, and I think that this pre dried collusion. Can you talk a little bit about that? And maybe if you already have some sales there and how do you sort of see the market opportunity?

Tim Fiori, CFO, ImmuCell Corporation: Yeah. Just on on sales, we’re not specifically breaking it out. We definitely did have our first sales in q two, and, you know, we’re gonna continue to be on the market. And I think we’ll start breaking that out in the in the disclosures in q three. So we’ll provide a little bit more detail as it becomes, hopefully, more material over time.

And

Michael Brigham, President and CEO, ImmuCell Corporation: Okay. Yeah. I I I I I I just yeah. I think the numbers are early

Tim Fiori, CFO, ImmuCell Corporation: Yeah.

Michael Brigham, President and CEO, ImmuCell Corporation: But the 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 seeds as opposed to, you know, the traditional, you know, the dairy milking operation. And, yeah, so far so good. And and I’ll 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 to see where we get to in the third quarter and start Tri Shield, spray dried and other. Just to give it a bit better but but an exciting start. You know, it’s quite a build up, a great job by 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, different formats, different packages, different markets, different customers.

Joe Diaz, Investor Relations, Lytham Partners: That sounds really good. And it would be great if you could I I appreciate that that we will break it out. That will, I think, sort of enrich the conversation. Regarding redeeming 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, President and CEO, ImmuCell Corporation: 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 balancing act or rebound act is important. But but, you know, seeing customers that just had to switch to different products, they have to try something else to take care of their tasks.

Those are the ones they gotta get back, and they can call their distributor, and the answer will be it’ll ship tomorrow.

Joe Diaz, Investor Relations, Lytham Partners: Okay. So is your sales force really energized right now that they can actually really sell as opposed to sort of take phone calls from customers that they couldn’t, you know, deliver on?

Michael Brigham, President and CEO, ImmuCell Corporation: Energized? How do I say that more strongly? I mean, it’s a new world, George. I mean, it was really hard for them. It 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 can deliver with tubes in the cooler.

Joe Diaz, Investor Relations, Lytham Partners: Okay. Great. And then a couple more questions. I looked at the the frozen collection inventory, and it’s relatively flat. It came down a little.

So it seems after two very strong month quarters of production, I was a little surprised that it didn’t come down. So you still have you have a very strong inflow, so of cholesterol of milk from the cow. How do you see that over the next six to twelve months?

Tim Fiori, CFO, ImmuCell Corporation: Yeah. Just on inventory, generally, you’re right. We do have a strong network of farms that can provide colostrum to us, and we’re going to evaluate inventory over time as we see sales coming in during the second half and manage that appropriately. I

Michael Brigham, President and CEO, ImmuCell Corporation: think, you know, just preventing a return to backlog is probably the number one priority. And so, yeah, cash management is essential and, you know, obviously, super important. But this inventory, this frozen colossum does have a long shelf life. So it’s a little bit of a security blanket, and the rebound plan would be to build work it down and spray dry as part of that strategy. But, yeah, it’s pretty hot right now.

And I 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.

Joe Diaz, Investor Relations, Lytham Partners: Okay. Well, you made progress on those accounts this quarter because net debt is down significantly and and backlog is gone, and you have some finished good inventory. So it seems like you would check there.

Michael Brigham, President and CEO, ImmuCell Corporation: I see.

Tim Fiori, CFO, ImmuCell Corporation: George, I

Michael Brigham, President and CEO, ImmuCell Corporation: missed it. You said backlog was down. We agreed. Some the other piece we missed. What what else?

Joe Diaz, Investor Relations, Lytham Partners: No. Not that was down meaningfully. So you made progress both on the cash position and on being able to serve customers.

Michael Brigham, President and CEO, ImmuCell Corporation: 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.

Joe Diaz, Investor Relations, Lytham Partners: Yeah. The net debt was down.

Tim Fiori, CFO, ImmuCell Corporation: Yeah. So we were able to refinance a couple of our loans. And as part of that, we eliminated a balloon payment right around $2,000,000. And so the the the the debt in total is is around the same amount, but we did eliminate a balloon payment in 2026.

Joe Diaz, Investor Relations, Lytham Partners: Right. Right.

Tim Fiori, CFO, ImmuCell Corporation: And then

Michael Brigham, President and CEO, ImmuCell Corporation: Taking a taking a ’26 balloon and spreading it over five years Yeah. But you’d like to Tim said total is still it was it was a it was a it was just kind of a wash on the total, same total. Right.

Joe Diaz, Investor Relations, Lytham Partners: And then on the beef segment, that’s my last question. It’s very seasonal. It is primarily December and January. What’s 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, President and CEO, ImmuCell Corporation: Yeah. It’s hard because, again, we sell the distribution and we don’t know where they ship to. We don’t get that kind of data, but we know just by historical seasonality, we know the way that these guys do their calving early in the year. We we know that that spike is largely due to beef, but also, you know, there can be seasonal challenges on scours and maybe, you know, some people do treat more in this 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. Beef is much more spread out, much more smaller. So a lot of that work, you know, is done by by marketing and just, you know, in the in the right pockets with the sales reps in the beef area due due due to the on-site on farm, on ranch visit. But we’ve what’s new on that area to address beef is is probably the biggest new thing is what Bobby as the VP of sales has done with with the marketing campaign so we can reach a lot of people without a lot of truck rides.

Joe Diaz, Investor Relations, Lytham Partners: Okay. Great. Okay. Thanks very much.

Michael Brigham, President and CEO, ImmuCell Corporation: Thanks, George. Appreciate it.

Conference Call Operator: 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. 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.

Tim Fiori, CFO, ImmuCell Corporation: The conference has now concluded. Thank you

Conference Call Operator: for attending today’s presentation. You may now disconnect.

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