Good afternoon and welcome to the INVO Bioscience Second Quarter Fiscal Year 2021 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Thanks very much Gary and good afternoon everyone. Thank you all for joining us for today’s INVO Bioscience’s second quarter 2021 financial results conference call. Joining us on the call today is Steve Shum, INVO Bioscience’s Chief Executive Officer, the company’s Chief Operating Officer and VP of Business Development, Mike Campbell; and the company’s Chief Financial Officer, Andrea Goren. At the conclusion of today’s prepared remarks, we will open the call for a question-and-answer session. Before we begin with the event, we submit for the record the following statements. Certain matters discussed on this conference call by management of INVO Bioscience maybe forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, Section 21E of the Securities Exchange Act of 1934 as amended and such forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements regarding the company's expected future financial position, results of operations, cash flows, financing plans, business strategies, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as anticipate, if, believe, plan, estimate, expect, intend, may, could, should, will and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond the company’s control, which may cause actual results, performance or achievements to differ materially from the anticipated results, performance or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in the company’s filings at www.sec.gov. The company is under no obligation too and expressly disclaims any such obligation to update or alter our forward-looking statements, whether as the results of new information, future events or otherwise. With that said, I’d like to turn the event over to Steve Shum, Chief Executive Officer of INVO Bioscience. Steve, please proceed.

Great. Thank you, Robert. Welcome everyone. Along with Mike Campbell, our Chief Operating Officer, joining us today is our recently appointed CFO Andrea Goren, I would like to welcome Andrea to the call. I'll cover a few highlights for the quarter before passing to Mike and Andrea for additional details. During the second quarter, we made excellent progress towards our key objectives highlighted by last week's official opening of our first INVO Center practice in Birmingham, Alabama. We consider that event to be one of the most significant milestones in the company's history. I really cannot say enough about all the hard work and dedication by our internal team and our partners to accomplish this milestone. The center is off to an encouraging start, as we have surpassed our internal expectations for initial patient appointments and expected treatment cycles plan for the first month. More importantly, we have the additional centers opening soon, we expect the Atlanta, Georgia center where we signed a joint venture agreement with Bloom Fertility, led by reproductive specialist Dr. Sue Ellen Carpenter to open in September of 2021. For our joint venture in Monterrey, Mexico with Dr. Aaron dondo and Dr. Ramiro Ramirez, we expect it to open in the October time frame. And finally, our San Francisco Bay Area center should open shortly thereafter. As we stated earlier this year, our goal was to have three to five centers open before year end and we fully expect to meet at least the minimum objective we set. We are certainly looking forward to the impact of the center operations on our revenue and overall results in the second half of this year and beyond. With the centers, we are now diversifying our business model beyond device sales through distributors to a model where we will…

Great, thanks, Mike. Let me pass to Andrea to briefly review the financials. Again we are excited to have Andrea join the team. To those not familiar, Andre replaces our past utilization of an outside CFO consulting firm, and he will now lead the company's finance function and support the execution of our strategic business plan including the operational launch of the info center joint ventures. So Andrea Thank you, Steve. Hello, everybody. I want to start by telling you how excited I am to have joined INVO. I've known Steve for some time and had been following Any developments from a distance. But when he asked me to get involved I did not think about it twice. I share everyone Mike Steve and the whole team's enthusiasm for the opportunity in front of us to dramatically expand access to advanced fertility treatments. I joined part time about a year ago, to start to focus on legal and financial matters, including the launch of our new INVO centers. We've made a lot of progress in that time and we are rapidly transforming the company with a view to making the info sell and IBC as common as IDF is today. With that said, Here are a few financial highlights. revenue for the quarter totaled $208,000, which compared to $246,000. In the prior year period, we recorded a net loss of 1.8 million compared to a net loss of 1.3 million in the prior year. Excluding non cash charges, mainly related to equity based compensation and debt discount amortization are adjusted EBITDA loss was $1.3 million compared to $825,000 loss last year. During the second quarter in relation to INVO Centers, we expensed almost 100,000 and invest and invested an additional 741,000. That is reflected on our balance sheet in the…

Great, thank you, Andrea. I want to re reemphasize a comment Andrea made. Today when people think of advanced Fertility Care, they think of IVF. It's interchangeable. If we meet our objectives in both cell and IVC will also become just as ubiquitous or commonplace as IVF and open up a whole new market segment to patients in need. Move into our clinical efforts. With respect to our five day label enhancement for the U.S. market, we are making progress upon the remaining data together. Admittedly, this process has taken longer than we originally envisioned. But we are keeping our goal is to complete that this year, and we will report additional updates as we have them. I'll conclude our prepared remarks by expressing an appreciation to our entire team including our internal operating team, our board, our scientific advisory board, our partners and key consultants. They are all working hard to have tremendous passion for those mission. While some of our activities have taken longer than we originally thought and COVID certainly didn't help although I will not point to that as the only reason, it has not diminished our collective enthusiasm whatsoever. I would also say as our team is not just motivated by the opportunity to build a very large and significant company. But equally if not more driven by the chance to help so many people around the world having a child is one of the greatest joys in life and improving the chances for that to happen is incredibly rewarding to all of us. With that we'll open up for questions.

We will now begin the question and answer session. [Operator Instructions] At this time, we will pause momentarily to assemble our roster. Our first question is from Scott Henry with ROTH Capital. Please go ahead.

Thank you and good afternoon. A couple of questions. First on the 2Q results, were there any international product revenues in the quarter or was it all U.S. based?

Very small start. It was just a little bit of U.S. based revenue on a very small mix of some international activity.

Okay. And when we think about the underlying trends for Ferring in the U.S. product revenue, obviously it’s going to be very chunky based on the annual minimums but can you give us any color on how you think the roll-out is going for them and what kind of organic trends they are seeing on that and perhaps how much COVID is still impacting it?

Yes, well first I would say at a high level, we do recognize it’s been a slower bill process within the existing practices and certainly Ferring has seen that as well. There is a number of factors contributing to that and we can go through those. But the key elements moving forward that we believe will help. That effort is the expanded evidence based data we have on INVOcell, which is critical in a build confidence, as well as the start of the INVO centers is, as Mike pointed out. And Ferring is doing additional marketing efforts to help improve the visibility. But again, we really think the INVO Centers will compliment their activities. But again, it's been a, slower process with the existing practices, last year, they were heavily affected by COVID. Many of the practicians are reporting being very busy. And when a practician is extremely busy, it also becomes a challenge to integrate a new process and procedure. We believe they're making progress. Again, we think our efforts in the U.S. market will help that. But it's hard to see exactly when some of that acceleration could occur within the existing practices.

Okay, then perhaps shifting gears to this center revenue. When we think about magnitude of revenues there, can you give us a sense of how many procedures annually, you would expect a typical center to perform I know, Birmingham's probably going to be stronger than average. But the typical procedures per center, and then an idea of how much revenue, we should expect per procedure to flow to the INVO income statement.

So I want to let Andrea take the last part of that question regarding how it's going to affect our P&L. Mike, I'm sure it's got a comment on the build and the ramp within the centers, I'll give you just a high level bet, we have built these facilities in terms of resource and physical footprint to be capable of doing upwards of a couple of -- initially a couple of 1,000 cycles per year. Now, that'll take time for these centers to build. And we'll obviously need to bring our marketing efforts that we're working on behind the scenes to help broaden out awareness and drive patient flow to those clinics. So it'll take some time to build to that. If you look at the average -- I think we've said this before, the average IVF practice out there runs around 600 cycles per year, obviously, there's the larger practices and do a lot more, they're smaller practices. But that's kind of the blended average. We've also stated that we would expect our centers to be self sustaining and breakeven and around 200 cycles per year. So 17 or 18 patient per month average would bring them breakeven. So for us, it's a little hard to gauge just yet, since this first center just opened last week, to know how fast they can build. But, we certainly have expectations, they would operate well above the breakeven point and at minimum reach the average level and IVF practice operates at and then like said, hopefully, our marketing efforts will build on top of that, and continue to see them expand. Mike, I don't know if you want to add any more of that. So probably -- I probably went a little deeper than I was expecting.

No, that's exactly what I would have said, Steve. The metrics are 200 on breakeven average about 600. And then our capacity at 2,000. So I really -- the other thing, the only real world data we have here is the AI [indiscernible] practice that was in Birmingham, Alabama, that [indiscernible] was formerly at and I believe they did about 250 their first year has been they ramped that up to about 500, 600 in the second year. So I'm hoping to see similar ramps in our facilities as well, that would be rewarded.

Okay. And how should we think about revenue per procedure?

Yes, I'm going to let Andrea speak to that. He's really done a lot of work on the modeling and how it's going to flow through our P&L. So, Andrea you're out?

Yes, we -- the way the joint ventures at least the date has been structured is such that, it would enable us to consolidate their results into our own. So basically the top line revenue from these joint ventures will be added to in both top line revenue and then we would have to back out, whatever the profit or losses that does not pertains to our ownership. Obviously, the big driver for the facilities is the INVO cycle revenue, but there's a lot of ancillary services from the initial patient visits to other types of procedures and services whether it's from the lab or the doctors that would be performed. And so we will be participating as owners of these joint ventures in all of that revenue. So and a much bigger slice of the revenue per cycle that our device generates, on top of -- the actual price of the device itself. I think the amount of revenue per cycle will change a lot by location, you can imagine that, what might be charged in Birmingham will be different than what would be charged in San Francisco, I think our current expectation is that for the cycle revenue, Mike, correct me if I'm wrong, but we're probably somewhere around 6,000 or thereabouts.

Yes, that's what we're --

Yes, Birmingham – I am kind of going to give a little color. Birmingham probably be about 5,000 and then yes San Francisco is going to be an 8,000. So we're looking at an average, an ASP for the INVO procedure with around $6,000, which are the ASP for that.

And then Scott. We'll be consolidating all of that and then on these initial clinics, and then backing out of the portion on a single line that we don't hold. So….

And is that revenue, is that per patient or is that per individual cycle per patient?

Yes, per cycle.

Per cycle. Yes.

Okay. Great. Thank you for taking the questions.

You bet. Thank you.

The next question is from Kyle Bauser with Colliers Securities. Please go ahead.

Great, thank you. Thanks for the updates here. Maybe just following up on Scott's question. So appreciate the color on amount per cycle. Maybe you could talk a little bit about the timing of revenue recognition? Do you anticipate patient's pain and multiple installments? Do you recognize the revenue at the end? At the outset? Just kind of curious the timing on how the money will flow into the income statement?

Yes, I think -- yes, go ahead, Andrea. Yes, recognition would occur when the cycle has been completed. But that's a couple week process from start to finish with a patient. But go ahead, Andrea.

Yes, that's what I was going to say. And most of these -- there really isn't much. I think the team has started to look at sort of the insurance angle, but really most of these are all cash pay. And in most instances, I think from what has been discussed with our current partners is that all those payments would be due upfront. There are some specialty patient lending firms that we have been evaluating to offer financing to the patients that wants to spread out payments. But from our perspective and our joint venture partners perspective, we would get the cash right away.

Got it. Appreciate that. And then on the five-day label enhancement, sounds like you're continuing to put the data together. At the beginning of the year, we were pretty excited that there's the possibility you wouldn't have to run a clinical trial and just use the data that's already out there. And now we're almost into September. And I'm wondering if maybe just doing a trial would have been more favorable? Maybe that's not the case. I'd love your reaction to that. And Steve just any, I guess, updates on the discussions you've had with the FDA and any sort of timing? Yes.

Yes. I think with the benefit of hindsight? It's possible, I'm not sure we've crossed over that point just yet. Kyle, but and part of that, I say that because our clinical sites we're still a bit consumed with managing just past COVID and the volumes of patients they were seeing. And so the recruitment process, we could have envisioned might have taken a little longer as a result of some of that impact, hard to say it for sure. Well, we do feel -- we continue to feel pretty strongly that we can get the data we need from the retrospective data. It is a lot of data. And we had to go into some of these same individual clinics. And they've been great at pulling that data. But it's definitely taken a while to do. And part of that is, I think, also a function of them being very busy. But we're pretty close having it pulled together. So I would still say I think we will ultimately be ahead pursuit just pressing on and finishing this process than would have taken going through the prospect of.

Got it. That's helpful. And maybe just on the burn, sorry, if I missed this, how are we thinking about that for the balance of the year on a quarterly basis, now that we've essentially gotten two to three INVO centers up and running a lot of those startup costs associated, I think, should dissipate. Just help for modeling purposes with the quarterly burn?

Well, our operating -- on the operating side, I think Andre mentioned that we would expect that the cash operating burn to kind of run before any gross profit offset, we would expect to continue to maintain around the $1.3 million to $1.4 million quarter level before joint venture activities. We actually do have some spend we'll still have to do for Atlanta, as well as both Mexico and the Bay Area. So there still will be some JV investment going on in the third and fourth quarters. So we'll still have that as part of our mix, but we are looking to generally maintain our internal operating levels consistent with where they've been in the last couple of quarters.

Got it. Okay. Well, congrats on opening these clinics. And thanks for all the updates today.

Thanks Kyle.

The next question -- excuse me. The next question is from Rodney Baber with Paulson. Please go ahead.

Hey, Steve, can you hear me, okay?

Hear you just fine. How you doing Rodney?

Perfect, good. Thank you for all the hard work is going into this is going to be really a lot of fun to follow you guys over the next several years. I think it'd be important if we have some clarity on how you market this product. In other words, you're putting centers and now one ARMS can do 500 or 600 a year which produces a certain amount of revenues. There's another ways I could ask this question. But Mike maybe jump in here? How do you spend money? I mean, do you go to Facebook? They – you get a lot of word of mouth, which is wonderful and all that. How do you spend money? If you're going to have somebody do two cycles to get a baby and they're paying you $12,000? How much money goes into the marketing of it or sales app for whatever if you can give -- if you could give us some clarity on that? I'd love to hear that.

Yes, Rodney, we are in conjunction with our local partners for their local markets. And we're really not going to roll-out a national campaign for sure right now. But what we plan to do is, obviously use the social media platforms, we have hired a social media platform expert in my opinion and we're putting those altogether. And the other thing we're going to do is just in the local markets themselves, we're going to do an outreach program, to the local OB-GYN to the referring physicians to the businesses and potentially we're working on reimbursement as well. So we're looking at some of the private insurance fertility providers and just to get the word out about the technologies the process, the procedure and the opportunity. So like I said they got 70 folks down there just because we all know Karen Hammond down in Birmingham, and we haven't even started our marketing atmosphere. So very encouraged about that. But yes, I think this is all going to be social media platform and local outreach.

Do you have a cost per patient expenditure that you're going to be willing to make to get a customer? Do you have a thought on what that's going to be? How does it impact your profitability as far as spending the money for all of this to generate the revenues you want?

Yes we're working on -- we are actually working with the centers right now on all of those metrics right now, Rodney. We have a budget for each of the centers. And, again yes we have to divide that by the number of patients that come in, but our initial budget is enough to at least get this social media platform up and going and then again, includes a local outreach program to the local community. So that's depend upon -- it just depends upon, what type of reaction we get to that? How we move forward?

Okay, Steve, let me….

Yes, Ron I just want to add one thing, too, We absolutely do assume in our planning that we would that we're going to spend a certain percentage of sales on marketing activities. And so to Mike's point, we're going to start in the local markets. But as we do have more and more centers out there, that will over time, we'll build into more of a national sort of program on some of that activity. And it is part of our, our planning and our budgeting.

On another topic, you've got, 445 IVF centers out there, which is a comp on what's already established and the size of the market, and you're talking about $5 billion domestically, and all that what are you -- in the back of your mind when you think about the roll-out of this company over the next couple, three years I know, we don't know the answers. And I'm not asking for a projection I'm going to hold you to but I'm just saying roughly, how many clinics would we have? And then, if you had to guess on how they would be structured? How many would be standalone INVOcell centers, where you're putting one in like Birmingham? How many of them would be joint ventures where somebody else is doing it? There's several silos of ways that you can roll this thing out with different business models for each one. What do you think you'd have on a couple of years? If you had to take a guess on this thing right now? About how this company will look in two to three years? How big will -- how many clinics would there be? Any color on that? And I know that's a wide open question. And, you may not want to mess with that too much. But I would love to just have a thought about how you can roll this thing out?

Yes, well, first of all, it's a huge opportunity. I mean, hopefully, that came out loud and clear in our prepared remarks about the size of the underserved patient market out there. And really, again, how big that opportunity is to open up a whole new segment of the market, we're not talking about trying to capture share from the existing market, we're -- the opportunity here is to really open up a completely new patient market. And that's really our core objective here as you know. So as far as the INVO Centers, we see those playing out a couple different ways. Obviously, our current ones are in joint venture with partners where we're coinvesting or we're putting up even most of the money with in conjunction with our partners and then we get a perpetual carried interest in those centers. And we're happy to keep doing that we think there's lots of opportunity to expand that initiative. As Mike often says, we've probably given the scale ability of INVOcell, we probably don't need to put multiple centers in a particular location, because we're -- like said very efficient and scalable technology, we could do one center, handle a lot of volume, and then just expand that particular center. But we also could envision seeing a scenario where as that awareness grows, there may be interested parties that want to in essence, build an INVO Center, but really do it on their own under almost like a franchise type model where they want our support. But we don't really necessarily have to co invest with them. And maybe there's a participation in their revenue under like a franchise type model. We're happy to entertain those kinds of scenarios as well. Because the way we look at it, whether the…

Well, if you ask for details on that, I haven't been surprised, okay because there's just no way to know that at this point until things roll-out. But here in the 20,000 [indiscernible] view that like that is very helpful. So thank you for sharing that with me.

Hey, Rodney, it's Mike, I think the important thing Steve said is very important. We are not trying to take share from the current market. That's a different animal, that's a different game, we are opening up an entirely brand new market for unmet need, pent up demand patient population. So I mean, my attitude is, if we build it, they will come because they need a solution. And we are the perfect solution for them. So I was excited here to see how this rolls out over the next several years because, as Steve said, we have lots of different options. And all of them are good.

Perfect. Well, thank you guys for sharing.

Thanks, Rodney.

The next question is from Ben Haynor with Alliance Global Partners. Please go ahead.

Good afternoon, guys. Thanks for taking the questions. I apologize if I missed some of this earlier, but jumping between calls here, but -- what's the new -- well, first-off, congrats on opening the first center, just kind of wondering what's attracted women to the first center, was there kind of a backlog or patients when you opened? Is there any surprises on what attracted patients?

Well, I think that -- what it really reflects and this is goes back to AIRM I know my spell a lot of strong perspective on this too. But we think AIRM, which was the previous practice with practitioners that now were partners with in Birmingham under our new INVO Center, they really proved the case that there is a lot of interest in demand in an affordable, high quality solution -- and in the U.S. market. And so they actually had a map on their -- in their previous practice, where, when they were out in the marketplace offering a full INVOcell cycle for around $5,000 to $6,000. They had patients coming in to their clinic from over 20 different states just by word of mouth, people that have heard about the solution and the price point. And to us that again, that really demonstrated the need -- the unmet need the patient that needs access to an affordable solution. And again, we think that dynamic is even more profound in other parts of the world. So Mike, I'm sorry, I didn't mean to talk already jump in [indiscernible].

Yes, I just going to say exactly what you said. And then Ben, yes this is -- I'm going to credit all this to Dr. Karen Hammond. She is a very profound and well recognized clinical practitioner. It's all word of mouth. The other thing is there's a Facebook page for imbecile patients, there's about 1,800 members. And yes, I mean, I learned a lot about the technology from this particular group, and a lot of them talk about Karen Hammond and say if you're going to do imbeciles, it's worth it to take the trip to Birmingham and have her do it so. Yes, we didn't do any advertising down there. We haven't done anything yet, because it's really a soft opening. We're just going to have to work out the things over the next month or two. And these 70 patients that showed up have all showed up for Karen Hammond in my opinion.

Okay, that's helpful. And then, is there kind of maybe a rule of thumb sort of conversion rate from, kind of initial appointment to treatment cycle or is that kind of two or more first to get into…?

Yes, I mean, there obviously is a conversion rate to all the practices see that sometimes it's a function of is it, does the patient have suitability, even to undergo fertility treatment. So you often have patients coming in, they're just -- they're not a good candidate under any circumstances. Sometimes patients don't convert because of the expensive cost. But again, that's something we've -- we think that our approach helps address that component to it. But I don't know what the exact -- I mean, I think every clinic is a little different, depending on what kind of patient flow they're seeing in terms of what their conversion rates are. But yes, you can assume you wouldn't necessarily convert every patient that came in for a consultation, for sure.

Good, it is there -- it kind of well, 30% of them wind up going -- doing a treatment cycle, or is it just -- it's all over the map?

Yes, Ben I don't know the end. I mean, I don't know what the industry conversion number is. But in Birmingham, in the first cycle, we're hoping for somewhere between 20% and 30% conversion. And as Steve mentioned, a lot of the factors have to do with clinical factors, the patients are not ready for an ABI index issue they present with endometriosis. But this first cycle, yes, we're not going to get 80 INVO cycles rather yes, our expectation is we do like 15 to 20 would be a good number for us.

Okay, that's very helpful. And then lastly, for me just -- with the strategy overall. Yes, I would expect that there might be some sort of kind of halo effect in a given geography or given city. If there is -- if they open your own center and that's getting some attention and there are other clinics in the area that are offering INVOcell, do you expect volumes to go up there at these other clinics as well, or is that not the case?

No, we're actually seeing that already.

Yes, we absolutely think there's going to be a halo effect. Overall. We already see growing awareness just in the community in the industry around INVOcell we see it growing within the patient market. There's more and more some of the patient education sites that are referring to INVOcell as a treatment option, even the existing IVF clinics out there. Some of them we're seeing doing a little better job of presenting and representing INVOcell as well. So -- but with our question, we think standalone dedicated center will have an awareness effect and a halo effect for the whole industry, we fundamentally believe that.

Okay, great. Well, that's all I had gentlemen. Thanks for taking the questions. And congrats on opening that for center.

Thanks, Ben. Appreciate it.

The next question is from John Heerdink with Vista Partners. Please go ahead.

Good afternoon, gentlemen. Thanks for taking my call today. And congratulations on advancing the model. It's exciting to see that you've successfully are weaving in this sort of what I say is a three pronged sort of approach to creating developing your business that seems quite scalable, from the distributorship to now the clinics and next bringing it and putting it in the hands of possibly every reasonable OB-GYN at every community, therefore creating this access to care that seems to be really missing in this extremely underserved patient population. Would you speak to -- would you say that as you're doing this, you're trying to create sort of a fabric of understanding, maybe similar to other solutions that have that in the market, like say, for example, Invisalign, which has a sidestep the sort of orthodontists out there that was sort of controlling that market and took it straight to the patients to create awareness and then pull through while educating of physician population. Could you speak to that and with this new global marketing team, you've put in there from the board with Rebecca Messina to the new Director of Marketing, Meryle Lynn Chamberlain and so could you speak to that and help me understand that better?

Yes, well, again, we -- I would say, this is a credit to Mike, when he really got involved in early 2019 and even before that, when he as a Board Member, he was -- had a strong opinion that it would be very important to really help develop the INVOcell technology in the marketplace, to be able to create the concept of a dedicated center. And took us a while to actually develop that strategy and actually, partner up with our first partners and actually finally opened our first center. So but I distinctly remember the conversations he and I had two years ago that this needed to be a central effort to our strategy to help build the market. Whether that's because there's a reluctance with the existing practices to adopt it, I don't know that we would go so far as to say that versus maybe there just needed to be more knowledge. And well, we keep saying evidence based information around INVOcell, because that really does help build confidence with practitioners. And if you think about it, our first practice -- our first partners in our INVO Centers are practitioners that were the early adopters of INVOcell. So they had their own, evidence, if you will, from their own working with the INVOcell technology. So we think it's going to take hold and continue to be adopted within the existing practices, we acknowledge it's been a slower process, but as more and more information is available and we think course the INVO Centers, as I just mentioned with them provide that halo effect of driving awareness. And helping to force the industry to pay more attention to this as a solution. And again not as an alternative to IVF but something to help open up access…

All right. Thank you, Steve. I think that answers of toward today and I think that it seems to be coming out, if you check on social media and check that out, you're seeing the discussion going up. And that's what has happened with other products in the medical device and med tech areas that I've seen and had some success with. Follow up another question…

And I would say John, sometimes markets build in a methodical process. Again, one of the reasons we're so excited about the INVO Centers especially as we get a few of them up and running, is that we think it'll help accelerate the market and really create kind of a tipping point, if you will, of better adoption across the board.

Agreed. Down another line of questioning here, one of your -- it's my understanding per recent filing that your largest shareholder is special situations run by AWM in New York multibillion dollar fund. That's been noted for investing in emerging growth companies and having great successful track record as they've grown up over the last couple of decades that I've been in and around the space with them. They -- I believe, increase their position from the full quarter from 6.5% to 11.1% of this extremely tight float company of, I think he said around 10.4 million or 5 million shares outstanding. One, can you confirm that and two, also address that this fun as portions is run by Dr. David [indiscernible], who is a former IVF doc and now runs this particular funds. And he's been loud and as he's spoken and written several times, and the biggest conferences in the space that we were lacking -- needing a solution that was affordable to fill this gap. And he likened the situation to IVF being sort of the Ritz Carlton or four seasons, if you will, where someone might pay $1,200 for this luxury stay, but would necessarily want this luxury sort of efficacy, if you will, in our case, but a more affordable say liken it to Marriott or Hilton, where you go there. And you don't have to pay an arm and a leg but you still get amazing stay good sleep, et cetera. Could you speak to both of those for me?

We saw the filing too, we can -- we assume those are up to-date and that reflects their position. We think they're a great investor. And we appreciate their support without question. Yes, you're correct. Dr. [indiscernible] is actively speaks about the industry out there. He does use that analogy that this industry is predominantly currently made up of the Ritz Carlton's as the analogy. And what we need to do is build the holiday-ins, where maybe you don't have all the bells and whistles, but you get a great night's sleep and a more affordable price, you treat different segment of the market. So we completely agree with that perspective to good analogy. And I said I think that he's someone who recognizes what the needs in industry are. And, you really speaks to some of the need for efficiencies in the industry as well. And which is another requirement in order to really be able to treat the volume of patients that need care. You just -- you simply can't just bring prices down. We also need to find solutions to be more efficient in the care in order to be able to treat more patients with the existing resources. We absolutely agree with that point too. And we think that's a sweet spot for INVOcell as a technology.

Thank you. Again, congratulations on advancing the business. And happy to be an investor and looking forward to seeing where you guys are taking us.

Great. Thanks, John. Appreciate it.

This concludes our question and answer session. I would like to turn the conference back over to Steve Shum for any closing remarks.

Great. We appreciate everyone who joined us on the call today. Please do not hesitate to reach out directly or to our IR firm. Should you have any additional questions. Thank you again.

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