ImmuCell Corp (ICCC) 2026 Q1 法說會逐字稿

Good morning and welcome to the ImmuCell Corporation conference call to discuss unaudited first quarter 2026 financial results.

早安，歡迎參加 ImmuCell Corporation 的電話會議，討論 2026 年第一季未經審計的財務結果。

Today, all participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note, this event today is being recorded. I would now like to turn the conference call over to Joe Diaz of Lytham Partners. Please proceed.

今天所有與會者將以僅收聽模式參與。在今天的簡報結束後，將提供提問的機會。請注意，今天的活動將被錄音。現在我想把電話會議交給 Lytham Partners 的 Joe Diaz。請開始。

Thank you, Chris. Good morning and welcome. As the operator indicated, my name is Joe Diaz with Lytham Partners. We are the investor relations consulting firm for ImmuCell. I thank you for joining us today to discuss the unaudited earnings for the first quarter ended March 31. 2026.

謝謝你，Chris。各位早安，歡迎各位。如同接線員所示，我是 Lytham Partners 的 Joe Diaz。我們是 ImmuCell 的投資人關係顧問公司。感謝各位今天加入我們，一同討論截至 3 月 31 日止第一季的未經審計盈餘。2026 年。

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 the 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.

提醒並告誡各位聽眾，管理層在本次電話會議期間所作之陳述包含前瞻性陳述，其中包括任何提及未來事件或預期未來結果，或對公司計畫於未來採取之步驟所作之預測。此等陳述不構成績效保證，且受風險與不確定性影響，可能導致實際結果、成果或事件與今日討論內容存在重大差異。

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.

有關前瞻性陳述以及可能影響未來結果、成果或事件之風險與不確定性的更多資訊，請參閱「前瞻性陳述之警示說明」，亦即通常所稱之「安全港聲明（Safe Harbor Statement）」。

Provided with 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, May 15, 2026. The company undertakes no obligation to update any information discussed on today's call.

該等資訊載於公司昨晚提交的新聞稿中，並與公司向美國證券交易委員會（SEC）提交的其他定期申報文件一併提供。今日電話會議所討論之資訊僅截至今日，即 2026 年 5 月 15 日（星期五）。公司不承擔更新今日電話會議所討論任何資訊之義務。

Please note that references to certain non-GAAP financial measures may be made during today's call. With that said, let me turn the call over to Oliver Thubukarz, President and CEO of ImmuCell Corporation, for opening remarks. Oliver.

請注意，今日電話會議中可能會提及若干非 GAAP 財務衡量指標。話不多說，讓我把電話交給 ImmuCell Corporation 總裁兼執行長 Oliver Thubukarz，請他致開場詞。Oliver。

Thanks, Joe, and good morning, everyone. It's my pleasure to welcome you to today's discussion of ImmuCell's results for the first quarter of 2026.

謝謝你，Joe，各位早安。我很高興歡迎各位參與今天對 ImmuCell 2026 年第一季業績的討論。

Starting this quarter, our discussion of results will be accompanied by a few key slides that are part of our new investor presentation. You can find that on our investor page, imucell.com/investors.

自本季起，我們的業績討論將搭配幾張關鍵投影片，這些投影片屬於我們新的投資人簡報的一部分。您可在我們的投資人頁面 imucell.com/investors 找到。

In 2025, the company made significant changes to better position itself for success, including a strategic focus on the CAF scourge market and investments in leadership and in manufacturing yield improvement. In the first quarter of 2026, we are starting to see the results of this focus.

在 2025 年，公司進行了重大調整，以更好地為成功奠定基礎，包括策略性聚焦於 CAF scourge 市場，以及在領導團隊與製造良率提升方面的投資。在 2026 年第一季，我們開始看到此一聚焦所帶來的成果。

We achieved our first ever $10 million revenue quarter, which is an exciting milestone for our commercial team and our manufacturing team. And we also achieved 45% gross margins after absorbing legacy retain-related costs that shifted from product development to cost of goods sold and reduced gross margins by approximately 2.4% during the quarter. We also grew net income 34% compared to the first quarter of 2025.

我們達成公司史上首次單季營收 1,000 萬美元，這對我們的商務團隊與製造團隊而言是令人振奮的里程碑。此外，在吸收從產品開發轉列至銷貨成本、並於本季使毛利率約降低 2.4% 的既有 retain 相關成本後，我們仍達成 45% 的毛利率。相較於 2025 年第一季，我們的淨利亦成長 34%。

In previous calls, we explained the rationale behind our new strategy to focus on First Defense, our leading CASC hours preventative product. Since 1,991, IMISAR has competed successfully in the large growing market for CASC hours prevention with a highly differentiated product portfolio that we believe has considerable runway for further expansion domestically and internationally.

在先前的電話會議中，我們已說明新策略的理由：聚焦於 First Defense——我們領先的 CASC hours 預防產品。自 1,991 年以來，IMISAR 以高度差異化的產品組合，在 CASC hours 預防這個規模龐大且持續成長的市場中成功競爭；我們相信在國內與國際市場仍有相當大的進一步擴張空間。

As we will discuss later in the call, we believe we're gaining share in this market, competing against the world's largest animal health companies. Historically, Imucell's challenges have centered less around market demand and more on manufacturing capacity and product availability. And for a company our size, it makes a lot of sense to focus on a successful on-market product and solve those challenges, and we are well underway to do that.

如同我們稍後在電話會議中將討論的，我們相信我們正在此市場中提升市占，並與全球最大的動物保健公司競爭。歷史上，Imucell 的挑戰較少在於市場需求，而更多在於製造產能與產品供應。以我們這樣規模的公司而言，聚焦於一項已成功上市的產品並解決上述挑戰是非常合理的，而我們也正穩步推進。

Our results in the first quarter give us confidence in this decision. I will review some of these drivers in more detail and share some of our market observations after Timothy Fiori, our Chief Financial Officer, completes a deeper review of the financials for the first quarter of 2026. I now turn the call over to him. Tim.

第一季的結果讓我們對此決策更具信心。在我們的財務長 Timothy Fiori 完成對 2026 年第一季財務的更深入說明後，我將更詳細回顧其中一些驅動因素，並分享我們對市場的觀察。現在我把電話交給他。Tim。

Thank you, Oliver.

謝謝你，Oliver。

I'll start with a short recap of product sales results, which are unchanged from our April 8 press release. All the numbers I'll speak to are approximate and rounded. Product sales for the first quarter of 2026 came in at $10.4 million, an increase of 28.4% compared to what had been a record-breaking first quarter of 2025.

我先簡要回顧產品銷售結果，該結果與我們 4 月 8 日的新聞稿一致，沒有變動。我將提及的所有數字皆為約略值並已四捨五入。2026 年第一季產品銷售額為 1,040 萬美元，較 2025 年第一季（當時已創下紀錄）成長 28.4%。

Domestic sales for the first quarter grew 35.7% compared to the first quarter of 2025 to $9.7 million, while international sales for the first quarter declined 30.2% to about $600,000 in the same period. In terms of product specifics, we continue to be pleased with strong relative sales of [TriShield], our flagship product, which grew 38.5% in the first quarter of 2026 compared to the first quarter of 2025.

2026 年第一季國內銷售額較 2025 年第一季成長 35.7% 至 970 萬美元；同期間國際銷售額則下滑 30.2% 至約 60 萬美元。就產品細項而言，我們持續對旗艦產品 [TriShield] 的強勁相對銷售表現感到滿意；其在 2026 年第一季較 2025 年第一季成長 38.5%。

We realized gross margin improvement in the first quarter compared to prior year. Gross margin as a percentage of product sales increased to 45% during the first quarter of 2026 compared to 41.6% during the first quarter of 2025.

相較於去年同期，我們在第一季實現毛利率改善。以產品銷售額百分比計算，2026 年第一季毛利率提升至 45%，高於 2025 年第一季的 41.6%。

We achieved this improvement despite a headwind of 2.4% in the first quarter of 2026, coming from costs associated with former retain assets, which year-over-year have shifted the cost of goods sold from product development expense. Year-over-year gross margin expansion in the first quarter of 2026 is coming from both price and manufacturing performance, partially offset by the aforementioned shift of former retain-related costs.

儘管 2026 年第一季面臨 2.4% 的不利因素（來自前 retain 資產相關成本；與去年同期相比，該等成本已由產品開發費用轉列至銷貨成本），我們仍達成上述改善。2026 年第一季毛利率的年增擴張同時來自價格與製造表現，但部分被前述前 retain 相關成本轉列所抵銷。

Operating expenses increased to $2.7 million in the first quarter of 2026 compared to $2.2 million during the first quarter of 2025. This was driven by increases in G&A, mostly related to investments in leadership, and higher sales expense related to expanded commercial activities resuming a more normal pace following the backorder management period in the first quarter of 2025.

2026 年第一季營業費用增至 270 萬美元，較 2025 年第一季的 220 萬美元增加。此增幅主要由一般及行政費用（G&A）上升所帶動，主要與領導團隊投資相關；另銷售費用亦因擴大商務活動而增加，且在 2025 年第一季的欠貨訂單管理期間後，相關活動已恢復至較正常的節奏。

Operating expenses were partially offset by lower product development expenses due to the previously mentioned shift of former retain-related expenses to cost of goods sold. Other expense decreased to $15,000 in the first quarter of 2026, compared to $330,000 of other income in the first quarter of 2025. This was driven by a non-recurring insurance payment in the first quarter of 2025.

營業費用部分被較低的產品開發費用所抵銷，原因是先前提到將原本與 Retain 相關的費用轉列至銷貨成本。其他費用於 2026 年第一季降至 15,000 美元，相較於 2025 年第一季的其他收入 330,000 美元。此變動主要係 2025 年第一季一次性保險理賠款所致。

To wrap up our income statement discussion, our net income was $1.9 million or $0.21 per share during the first quarter of 2026, compared to $1.4 million or $0.16 per share during the first quarter of 2025. As Oliver mentioned, this is a 34% increase in net income year-over-year.

總結損益表部分，2026 年第一季淨利為 190 萬美元，或每股 0.21 美元；相較之下，2025 年第一季淨利為 140 萬美元，或每股 0.16 美元。如 Oliver 所提，淨利年增 34%。

As usual, we provided EBITDA figures in yesterday's earnings release. We believe looking at EBITDA assists management and investors by looking at our performance across reporting periods on a consistent basis, excluding certain charges from our reported income before income taxes. EBITDA improved to $2.6 million in the first quarter of 2026 from $2.3 million in the first quarter of 2025.

如同以往，我們在昨日的財報新聞稿中提供了 EBITDA 數據。我們認為觀察 EBITDA 有助於管理層與投資人以一致的基礎比較各報導期間的表現，並在所得稅前之已報導收益中排除特定費用。EBITDA 由 2025 年第一季的 230 萬美元提升至 2026 年第一季的 260 萬美元。

To wrap up with financials, let me highlight a few key balance sheet items. Our balance sheet as of March 31, 2026, is in a strong position with improvements versus year-end 2025, driven by the robust performance in product sales that we discussed previously. We ended the first quarter of 2026 with $6.8 million of cash on hand and $8.7 million of inventory.

最後就財務面作結，我想強調資產負債表中的幾個關鍵項目。截至 2026 年 3 月 31 日，我們的資產負債表維持強勁，較 2025 年底有所改善，主要受先前提到的產品銷售強勁表現所帶動。2026 年第一季末，我們持有現金 680 萬美元，存貨 870 萬美元。

Working capital increased from $13 million at the end of 2025 to $15 million at the end of the first quarter of 2026. We will continue to closely monitor and manage cash and our other assets as we balance long-term investment with near-term operational needs. With that, I will turn the call back to Olivier. Olivier.

營運資金由 2025 年底的 1,300 萬美元增加至 2026 年第一季末的 1,500 萬美元。在兼顧長期投資與短期營運需求的同時，我們將持續密切監控並管理現金及其他資產。接下來我把電話交回給 Olivier。Olivier。

Thanks, Tim. Congratulations to the team for the excellent results in the first quarter of '26.

謝謝你，Tim。恭喜團隊在 26 年第一季取得優異成果。

As I mentioned in my initial remarks, ImmuCell made the decision to focus on our SCARS preventative products called First Defense in late 2025. In the first quarter of this year, we achieved the record $10 million product sales and Price Shield, particularly, showed very strong growth. It is the most advanced protection against scars that we offer in the market.

如我在開場談話中提到的，ImmuCell 於 2025 年底決定聚焦於我們名為 First Defense 的 SCARS 預防產品。今年第一季，我們達成創紀錄的 1,000 萬美元產品銷售額，其中 Price Shield 尤其展現非常強勁的成長。這是我們在市場上所提供、針對 scours 最先進的防護方案。

Our focus on first defense makes a lot of sense when you consider CAF values have increased. Almost seven-fold in the past three years, and SCOURS is a condition that affects up to 15% of pre-weaning calves and is the leading cause of death in these calves. We believe it causes up to $1 billion of economic burden in the U.S. Due to treatment costs, performance losses and mortality.

當你考量到小牛價值（CAF values）已上升時，我們聚焦於 First Defense 就非常合理。過去三年幾乎成長了七倍，而 SCOURS 是一種影響多達 15% 斷奶前小牛的疾病，也是這些小牛的主要死因。我們認為，由於治療成本、表現損失與死亡率，該疾病在美國造成高達 10 億美元的經濟負擔。

High and rapidly increasing calf values have driven an increased appetite to invest in premium prevention products, and SCOURS is top of mind for many producers due to prevalence, morbidity and mortality.

小牛價值高且快速上升，推動了對高端預防產品投資意願的提升；由於其盛行率、發病率與死亡率，SCOURS 也成為許多生產者最關切的議題。

In 2025, we estimate US farmers spent approximately $93 million on scours prevention products for about 14% year-over-year growth. In Q1 2026, we saw a slightly moderated 11% year-to-year growth for the overall scours biologics category, but ImmuCell's first defense accelerated and accounted for what we estimated was nearly 80% of total category dollar expansion in the quarter.

我們估計 2025 年美國農民在 scours 預防產品上的支出約為 9,300 萬美元，約年增 14%。2026 年第一季，整體 scours 生物製劑類別的年增率略為放緩至 11%，但 ImmuCell 的 First Defense 加速成長，並占我們估計該季類別總金額擴張的近 80%。

This is based on revenues to end customers as reported by distribution partners and market research firms.

此係根據通路合作夥伴與市場研究機構所報告之對終端客戶的營收。

We are excited to report that our share of U.S. Category spend expanded from 29.1% to 35.2%, and our share of animals treated increased from 15% to 18.1% between 2021 and the first quarter of 2026.

我們很高興報告，美國該類別支出中的市占率由 29.1% 擴大至 35.2%，而接受治療的動物市占率則由 15% 提升至 18.1%，期間為 2021 年至 2026 年第一季。

We believe this performance is driven by an increase in sales activity that started last quarter and the market's increasing confidence in our product availability.

我們認為此表現主要來自上季開始增加的銷售活動，以及市場對我們產品供應可得性的信心提升。

Another driver is our premium pricing and positioning in the market. Premium pricing explains why our share of spend is higher than our share of animals treated. When I visited with our customers this quarter, they told me that First Defense products have several advantages that create a premium value proposition for them.

另一個驅動因素是我們在市場上的高端定價與定位。高端定價解釋了為何我們的支出市占率高於接受治療動物的市占率。我本季拜訪客戶時，他們告訴我 First Defense 產品具備多項優勢，為他們創造了高端價值主張。

Specifically, First Defense provides immediate protection for immune-incompetent newborn calves against the three common pathogens that cause scours. And in addition, it also offers a lot of other bioactives that help calves stay healthy as a result of being derived from colostrum.

具體而言，First Defense 可為免疫功能尚未健全的新生小牛，針對造成 scours 的三種常見病原體提供即時保護。此外，由於其來源為初乳，也提供許多其他生物活性成分，幫助小牛維持健康。

So our [SILS] activities are now pivoting to winning new customers since about 55% of calves are still not getting any biological treatments at all. We believe the addressable market in the US is more than $200 million, and internationally, the TAM is at least five times as large. We will focus on these opportunities.

因此，我們的 [SILS] 活動目前正轉向爭取新客戶，因為約有 55% 的小牛仍完全未接受任何生物性治療。我們認為美國的可服務市場規模超過 2 億美元，而在國際市場，TAM 至少是其五倍。我們將聚焦於這些機會。

As I discussed in previous calls, the key part of our strategy, given the tailwind from the macro environment and our excellent value proposition for customers, is to ensure we have product available. This has been challenging for ImmuCell, and we are working hard every day to ensure we maximize yield and increase our output to keep up with demand.

如我在先前的電話會議中所述，鑑於總體環境帶來的順風以及我們對客戶的優異價值主張，我們策略的關鍵在於確保產品供應充足。這對 ImmuCell 一直是項挑戰，我們每天都在努力，確保最大化良率並提升產出以跟上需求。

We made decisions in late 2025 to address manufacturing capacity constraints, and as you can see, we had an excellent first quarter of 2026, reaching a record of more than 450,000 manufacturing units of output per month.

我們在 2025 年底做出決策以因應製造產能限制；如各位所見，2026 年第一季表現非常出色，月產出達到超過 450,000 個製造單位的紀錄。

And this compares to 380,000 manufacturing units per month we achieved in 2025, 344,000 in 2024 and 252,000 in 2023. This expansion of output helped improve our gross margin, in addition to the price realization that Tim mentioned.

相較之下，我們在 2025 年達到每月 380,000 個製造單位，2024 年為 344,000 個，2023 年為 252,000 個。除了 Tim 提到的價格實現之外，這次產出擴張也有助於提升毛利率。

Yield improvement is challenging and comes from doing a lot of different things really well every single day. There's no magic bullet or single big lever. The team got together and committed to ensuring availability. And then we improved our planning, which allowed for more preventative maintenance and balanced workflows. We reduced waste and scrap events, and we increased utilization by deploying some overtime and making incremental investments in various equipment. To increase throughput. I can't thank the team enough for their efforts.

提升良率具有挑戰性，必須每天把許多不同的事情都做到位。沒有什麼靈丹妙藥或單一的大槓桿。團隊凝聚共識並承諾確保供應可得性。接著我們改善了規劃，使得能進行更多預防性維護並平衡工作流程。我們降低浪費與報廢事件，並透過安排部分加班及對各項設備進行小幅投資來提高稼動率。以提升產能吞吐量。我非常感謝團隊的努力。

Just a note about manufacturing units, they do not match up with revenue because of the difference in changing price points of our products and the different number of units used for different products in our portfolio.

關於製造單位數量補充說明一下：由於我們產品價格點的變動差異，以及我們產品組合中不同產品所使用的單位數不同，因此製造單位數量與營收並不一致。

There's still a lot of work to do to stay ahead of demand for the remainder of 2026. We have to stay focused on managing and mitigating contamination risk, we have to keep providing great service to our colostrum-supplying farms, and we have to manage yield improvement while we execute a major capacity expansion in our colostrum processing plant.

為了在 2026 年剩餘期間持續領先需求，我們仍有許多工作要做。我們必須持續專注於管理並降低污染風險，持續為提供初乳的牧場提供優質服務，並在我們於初乳加工廠執行重大產能擴張的同時，管理良率提升。

We are pleased to announce that we reached a $2 million settlement with a former contact manufacturer, and we plan to deploy this cash to expand capacity to meet long-term demand.

我們很高興宣布，我們與一家前合約製造商達成 200 萬美元和解，我們計畫運用這筆現金擴充產能，以滿足長期需求。

We plan to use more advanced process flows, state-of-the-art drying equipment, and assets previously purchased to manufacture retain the subclinical mastitis product that we have been developing until we focused on First Defense in December 2025. We are finalizing these expansion plans and will communicate more information on future earnings calls.

我們計畫採用更先進的製程流程、最先進的乾燥設備，以及先前購置的資產，來製造並保留我們一直在開發、直到 2025 年 12 月將重心轉向 First Defense 之前所開發的亞臨床乳腺炎產品。我們正在敲定這些擴張計畫，並將在未來的財報電話會議中提供更多資訊。

In pre... Previous calls, we discussed other investments we're making to align with our new growth strategy. We hired an international business development executive with decades of dairy industry experience, and he is helping us transition from a reactive approach to international opportunities to a planful strategic approach.

在先前…在先前的電話會議中，我們討論過為配合新成長策略而進行的其他投資。我們聘請了一位具備數十年乳業經驗的國際業務開發主管，他正協助我們從對國際機會的被動因應，轉型為有計畫、具策略性的做法。

We are using a rigorous process involving management and the board to understand market opportunities and product requirements. Go-to-market investments, regulatory activity and timelines, and our capacity expansion timelines as well.

我們採用一套嚴謹流程，由管理團隊與董事會共同參與，以了解市場機會與產品需求。同時也涵蓋上市推廣（go-to-market）投資、法規相關活動與時程，以及我們的產能擴張時程。

While we believe the international opportunity is significant, success will require disciplined market prioritization and time to prepare for and execute successfully.

雖然我們相信國際機會相當可觀，但成功將需要嚴謹的市場優先順序規劃，以及準備與成功執行所需的時間。

And our efforts are focused on building the right foundation for sustainable global expansion. In the meantime, we have expanded our sales territories in the U.S. By three instead of the previously announced two territories, since we see so much momentum in the domestic market.

而我們的努力重點在於建立可持續全球擴張的正確基礎。同時，由於我們看到國內市場動能強勁，我們已在美國將銷售區域擴增為三個，而非先前宣布的兩個區域。

Finally, I will repeat what I've communicated on each call. Our top priority at ImmuCell is solid execution across the organization, from sales to farm management to vaccine manufacturing and colostrum processing, including all the support functions that make future profitable growth possible.

最後，我會重申我在每次電話會議中所傳達的內容。ImmuCell 的首要任務，是在整個組織中扎實執行，從銷售、牧場管理、疫苗製造到初乳加工，包含所有能讓未來獲利成長成為可能的支援職能。

In the first quarter of the year, we announced changes to our corporate governance that supports this focus. We now have a smaller independent board with three new board members who bring extensive animal health and functional expertise. I look forward to working with the new board on executing our focused strategy to deliver the day while we secure the future.

在今年第一季，我們宣布了支持此一聚焦方向的公司治理變更。我們現在擁有規模更小的獨立董事會，並新增三位董事成員，他們帶來豐富的動物健康與職能專業。我期待與新董事會合作，執行我們聚焦的策略，在確保未來的同時交付當下成果。

With that said, we will be happy to take your questions. Let's have the operator open up the lines.

話說到這裡，我們很樂意回答各位的問題。請接線員開放電話線。

Thank you.

謝謝。

(Operator Instructions) Frank Gasker, a private investor.

(接線員指示) Frank Gasker，私人投資人。

Yes, outstanding quarter. And congratulations to the team on that performance. Could you talk a little bit about your First Defense product and its seasonality, its target market, whether or not it competes with existing products?

是的，本季表現非常出色。也恭喜團隊達成這樣的成績。能否請你談談 First Defense 產品及其季節性、目標市場，以及它是否會與既有產品競爭？

Thank you for that question. Let me see if I can give you a little bit more detail. So our functional feed product is a non-USDA-approved product that uses a different manufacturing process, so that we use a different process to make it, but it essentially has our first defense technology inside that uses the same colostrum.

謝謝你的提問。我看看能否提供更詳細的說明。我們的機能性飼料產品並非 USDA 核准產品，且採用不同的製造流程；也就是說，我們用不同的製程來製作，但其本質上內含我們的 First Defense 技術，並使用相同的初乳。

And it reduces our cost to manufacture and it's offered to the market at a lower price point. And it is particularly useful for those operations that don't want to feed each calf individually, but can add this to the water or colostrum or milk that they're providing to the calves as a group. And so it has a different dynamic in that regard. We launched it late last year, second-half of. Steer essentially the new formulations of this product. And so we're still in a product launch phase for us.

它能降低我們的製造成本，並以較低的價格提供給市場。它特別適用於那些不希望逐頭餵食每一隻小牛的牧場作業，而是可以將其加入水、初乳或牛奶中，提供給一群小牛一起飲用。因此在這方面它有不同的使用情境與動態。我們在去年下半年較晚的時候推出它，並且基本上引導了這項產品的新配方。因此對我們而言，目前仍處於產品上市導入階段。

Thank you.

謝謝。

George Milas, MKH Management.

George Milas，MKH Management。

Thank you. Yeah, totally outstanding quarter. Congratulations to a fantastic start. I want to ask a few questions about production capacity.

謝謝。是的，本季真的非常出色。恭喜有個很棒的開局。我想問幾個關於產能的問題。

I think you said that there's no magic bullet to improving production and yield, that there's so many different levels. Can you tell us a little bit more about what were. Some of the key improvement that led to the yield improvement? And also, with your current capacity and your four freezers, what do you see is your maximum capacity at this point?

我想你提到提升產量與良率沒有什麼靈丹妙藥，因為牽涉到很多不同層面。你能否再多談一些，哪些是…促成良率提升的關鍵改善項目？另外，以你們目前的產能與四座冷凍庫來看，你們認為現階段的最大產能大約是多少？

Thank you, George, for your question. There are some primary levers that we used in the last quarter, and there are some others that we are planning for that will hopefully yield more in the future.

謝謝你，George，謝謝你的問題。我們在上一季使用了一些主要槓桿，另外也規劃了其他措施，希望未來能帶來更多提升。

So the primary levers in the past four to six months have been improving our planning, so aligning our sales forecast with our production forecast on a very kind of SKU level and. And then planning our workflows so that it's balanced, so that one part of the team isn't waiting for another part of the team.

過去四到六個月的主要槓桿，是改善我們的規劃能力，也就是在非常細的 SKU 層級上，讓銷售預測與生產預測對齊。並且規劃工作流程使其更均衡，避免團隊某一部分在等待另一部分完成。

And with this planning, we also added some overtime capacity to some critical steps in the manufacturing process. And if you do that in a planned way, it's actually manageable and it ties into back to the planning point that I made.

配合這些規劃，我們也在製造流程中的一些關鍵步驟增加了加班產能。如果以有計畫的方式進行，其實是可控的，也呼應我剛才提到的規劃重點。

We also reduced waste in our process. There are parts of our process where we're not using everything that we could. And so reusing and just focusing on that waste and reducing that increases output.

我們也降低了流程中的浪費。在我們的流程中，有些環節並未把可用資源完全利用。因此透過再利用，並專注於找出並降低浪費，就能提高產出。

Finally, there were a couple of steps in the process where minor, I would say, investments in capital and a bigger tank, some extra membranes, and some things like that really helped increase the throughput of a particular step in the process that was either a bottleneck or about to become a bottleneck.

最後，在流程中有幾個步驟，只需要一些小幅度的資本投資——例如更大的槽體、額外的膜組等——就能大幅提升某個步驟的處理量，而該步驟原本是瓶頸，或即將成為瓶頸。

And so those are the key things that we've done. There's other ways to further improve yields, and we're looking at them on a continuous basis. We have a program in place that we're all focused on to get to a higher yield, and we review that program several times a week, actually, we're working on it.

以上就是我們已採取的關鍵措施。還有其他方法可以進一步提升良率，我們也持續在評估。我們已建立一套計畫，大家都專注於達到更高良率，而且我們實際上每週會檢視這套計畫好幾次，並持續推進。

And so we don't know and have a specific number in mind of what is our maximum, we're just improving yield kind of on a percentage basis, if you will, on a continuous basis.

因此，我們並不知道、也沒有在心中設定一個明確的最大值；我們只是持續地以百分比的方式、在連續的基礎上提升良率。

And at the same time, as I mentioned in my comments, it is time to think about a major capacity expansion and so we're very. Fortunate that we have the payment from our contract manufacturer that we can deploy towards that and we are in the midst of actively planning a capacity expansion for our plant.

同時，正如我在評論中提到的，現在是時候思考一次重大的產能擴張，因此我們非常……幸運的是，我們從合約製造商那裡收到一筆款項，可以用於此，我們也正積極規劃工廠的產能擴張。

Okay, great. Thank you for that. If I look at slide number five, where you have basically the product mix over the last three years. Help us understand the trajectory with TriShield, how it dipped during 2025 and has had a huge rebound. What drove that? Was that demand-driven?

好的，很棒。謝謝你的說明。如果我看第 5 張投影片，你們基本上呈現了過去三年的產品組合。請幫我們理解 TriShield 的走勢：它在 2025 年期間下滑，之後又大幅反彈。是什麼驅動了這個變化？是需求帶動的嗎？

I imagine you have some ability to influence demand, but it's a puzzling. It seems to peak in the first quarter, but it's maybe help us understand that, if you can.

我想你們應該有一些影響需求的能力，但這點讓人困惑。看起來在第一季達到高峰，但也許你能幫我們理解一下，如果可以的話。

Yeah, hi, George, good to hear from you. This is Sam here. I think that the thing that's challenging about some of the trends in the past few years even is the backorder dynamic. So it really, a lot of time depended on what was available to sell to customers.

是的，嗨 George，很高興聽到你的聲音。我是 Sam。我認為過去幾年一些趨勢之所以具有挑戰性，甚至在於積壓訂單（backorder）的動態。所以很多時候，真的取決於我們有什麼貨可以賣給客戶。

And I think that creates some different dynamics that may not be intuitive, so that could be what you're seeing. I mean, overall, the trend is that more customers seem to be shifting to Trishield, that seems to be really where we're growing, it's our flagship product, and that's the trend that we're focused on.

我認為這會造成一些不那麼直觀的動態，所以你看到的可能就是這個。我的意思是，整體趨勢是越來越多客戶似乎正在轉向 Trishield；那確實是我們成長的主要來源，它是我們的旗艦產品，而這也是我們聚焦的趨勢。

Okay, great.

好的，很棒。

Thank you very much.

非常感謝。

George, the only other thing that I would add to that is that TriShield is a premium-priced product, also compared to DualForce and our other products.

George，我唯一想補充的是，TriShield 也是一款高單價（premium-priced）的產品，相較於 DualForce 以及我們其他產品而言。

And in the calving season that we just had, it's the least price-sensitive segment that had a lot of demand in the last quarter or two. And so that helps explain some of the uptake on TriShield as well.

而在我們剛結束的產犢季中，對價格最不敏感的那個細分市場在最近一到兩季有很強的需求。因此，這也有助於解釋 TriShield 的採用提升。

Okay, yeah.

好的，是的。

(Operator Instructions) Frank Gasker, a private investor

(接線員指示) Frank Gasker，私人投資人

Yes, thanks for taking my questions. Your increase in sales force, again, that you just mentioned, I'm curious as to what the main drivers of that is, and as far as regionality and the target market for those regions, could you get into that?

是的，謝謝讓我提問。你們剛提到銷售團隊的擴編，我想了解其主要驅動因素是什麼；另外就區域性以及各區域的目標市場而言，你能談談嗎？

It's my understanding that the market is divided into dairy and beef. Where is your growth headed? Where is your sales directed? Thank you.

據我了解，市場分為乳牛與肉牛兩個部分。你們的成長將往哪裡走？你們的銷售重點指向哪裡？謝謝。

Thank you, Frank. We have expanded our sales team to essentially cover the entire country where there are calves, whether they're beef or dairy, because both industries use our product. Although traditionally more focused on the dairy segment, we're seeing significant increases in the beef as well, because beef calves are also increasing in value, and so with the increase in value of calf.

謝謝你，Frank。我們擴大了銷售團隊，基本上要覆蓋全國所有有小牛的地方，不論是肉牛或乳牛，因為兩個產業都使用我們的產品。雖然傳統上我們更聚焦於乳牛市場，但我們也看到肉牛市場顯著增加，因為肉牛犢的價值也在上升；因此，隨著小牛價值的提升。

Investing in a preventative like first offense makes a lot of sense for producers with a really and they get a really good return on investment. So our goal is that we understand, and I understand this from my personal visits to customers, but the sales team sees this, of course, every day is that the more contact you have with customers to explain how our product works.

對生產者而言，投資像 First Defense 這樣的預防性產品非常合理，而且能帶來非常好的投資報酬率。因此，我們的目標是——我從親自拜訪客戶中理解到這點，而銷售團隊當然每天都在看到——你與客戶接觸越多，越能解釋我們產品的運作方式。

The differences between our product and some of our competitors, which are vaccines, and the differentiation that our product provides, it really helps close the deal, helps educate the customer, and they appreciate the time and investment in them. So our strategy around Salesforce expansion is that more customer contact equals more revenue, and we've been seeing that now for a couple of quarters.

以及我們產品與一些競品（疫苗）之間的差異，還有我們產品所提供的差異化價值；這確實有助於促成成交、教育客戶，而客戶也會珍惜我們在他們身上投入的時間與資源。因此，我們在擴編銷售團隊上的策略是：更多的客戶接觸＝更多的營收，而我們在過去幾個季度已經看到這點。

And so we decided that it makes sense to add a third territory, a territory in the west of the US that had been frankly open for almost a year now, we decided to accelerate the hiring for that region. So I hope that gives you some color. We're really looking at, in each region of the country, what are the number of casts that are out there, what percentage of them are getting any treatment at all, and what does the sale cycle look like? We have some experience in that because in some regions, you can close the deal faster than others. And so we're looking at kind of the fastest, highest return of our investment when we talk about adding commercial people to our team.

因此我們決定，新增第三個銷售區域是合理的——美國西部的一個區域，坦白說已經空缺將近一年了，我們決定加速該區的招募。希望這能讓你更了解一些背景。我們真正關注的是：在全國各區域，小牛的數量有多少、其中有多少比例有接受任何治療，以及銷售週期長什麼樣子？我們在這方面有一些經驗，因為有些區域成交速度比其他區域更快。因此，在談到為團隊增加商務人員時，我們會評估投資回報最快、最高的方向。

That was great. Thank you very much.

這回答得很好。非常感謝。

Thank you.

謝謝。

And at this time, this concludes our question-and-answer session.

此時，我們的問答環節到此結束。

I would now like to turn the conference back over to Joe Diaz with Lithum Partners for any closing remarks.

接下來我想把電話會議交回給 Lithum Partners 的 Joe Diaz，請他做結語。

Thank you, Chris, and thank 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 ended June 30, 2026, during the week of August 10, 2026. Thanks again, and have a great day.

謝謝你，Chris，也謝謝各位參與今天的電話會議。我們期待在 2026 年 8 月 10 日當週，再次與各位交流，屆時將回顧截至 2026 年 6 月 30 日之季度的業績結果。再次感謝，祝各位有美好的一天。

And the conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.

本次電話會議到此結束。感謝各位參加今天的簡報，現在可以掛線。