Good day, and welcome to the ImmuCell Corporation reports Second Quarter 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Joe Diaz. Please go ahead.

Thank you, Betsy. Good morning and welcome. My name is Joe Diaz, as Betsy indicated. I am with Lytham Partners. We are the Investor Relations consulting firm for ImmuCell. Thank you for joining us today to discuss the unaudited financial results for the second quarter of 2021. I’d like to preface this discussion today with a caution regarding forward-looking statements. Listeners are reminded that statements made by management during the course of this call include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. Additional information regarding these risks and uncertainties is available under the cautionary note regarding forward-looking statements or better known as a Safe Harbor statement provided with last night’s press release and the Company’s quarterly report on Form 10-Q. With that said, let me turn the call over to Michael Brigham, President and CEO of ImmuCell Corporation after which we will open the call for your questions. Michael?

Great. Thanks, Joe. I appreciate the opportunity to provide some updates on what is going on at ImmuCell. The press release and the quarterly report on Form 10-Q that we disclosed last night cover the key financial highlights and all the details. As you may know on July 7, we issued a press release covering our preliminary topline sales results. We have been making these optional announcements to give investors a very timely look at what I view as the most critical measure of our operations and financial performance, that being product sales early in the reporting period. I have no changes to that very strong previous disclosure. Again, the product sales were up 53% during the second quarter of 2021 and up 10% for the first six months of the year, compared to the same period of the prior year respectively. We have recovered from the first quarter sales drop and are on track to report positive sales growth for the full-year 2021 over 2020 as projected. The $4.5 million in sales that we recorded during the second quarter indicates an annualized rate of reduction of about $18.2 million. We are clearly making good progress towards achieving our stated objective of increasing our annual production capacity from about $16.5 million to about $23 million and eliminating the First Defense order backlog. As a result of our expanding production capacity, we shipped 11% more product during the second quarter of 2021 then during the first quarter of this year and we reduced the backlog of First Defense orders to approximately $1.3 million as of the end of last week. I am very pleased to report that our gross margin as a percentage of product sales recovered to 46% during the second quarter of 2021, compared to just 39% during the…

We will now begin the question-and-answer session. [Operator Instructions] And the first question comes from Sam Rebotsky with SER Asset Management. Please go ahead.

Yes. Good morning, Michael. I'm trying to understand what you expect to say in July about Re-Tain. Is that dependent upon the FDA?

Oh, 100%. Yes. So as you know we got – four technical sections have been previously submitted and completed, the fifth is the one pending review and we do expect their response in the third quarter still. So when we have that response, we definitely expect to announce the results of their review.

Okay. And as far as First Defense, you need another piece of equipment to get to sort of continue to build up more First Defense. This sounds – I mean, it's been difficult because of what's going on with COVID. And so you expect that in the quarter ending September?

Yes. So I really wanted everything buttoned up and done and just get on to the new level of production at June 30. That didn't happen. There were some COVID delays. There were some manufacturer problems. You can see, I guess, my point is that we didn't hit the $23 million in annual capacity, but we’re kind of halfway there at around $18.2 million. So what we have completed is growing our capacity and what we need to complete, we’ll bring it up to that $23 million level. And so a little off on the timing, but at least we're gaining. We have increased the capacity just not all the way yet.

Okay. Let me just get back to the Re-Tain. We have been talking to the FDA, but we haven't just received the final decision or we’ve been discussing…

Yes. On these technical sections, the five, they're all the same. You submit and you wait six months. That's just statutory and they've been consistent on the first four and I don't see any difference on the fifth. So yes, it's just the way the system works as they take six months, usually not more and usually not less. So that's what we're waiting on. It's kind of a – it’s all are nothing thing. They don't sort of give you interim status check. We wait for their response complete or incomplete.

Okay. Michael, I'm at the airport. So we'll…

Good Sam. Good to hear from you Sam. Travel safe.

Thank you. Good luck.

All right. Thanks.

[Operator Instructions] This concludes our question-and-answer session. I would like to turn the call back over to Joe Diaz for any closing remarks.

Okay. Thank you, and thanks all of you for participating in today's call. We look forward to talking with you again to review the results for the third quarter of 2021 around the second week of November. Have a great weekend. Stay safe and well.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.