Edmonton – TheNewswire - April 26, 2022.  Innovotech Inc. (TSXV:IOT), a pioneer in the field of biofilm product development, is pleased to report a net profit of $367,130 for the 2021 year from revenue of $1,481,767.  Operating net income of $281,135 was augmented by an increase of $85,995 in the fair market value (“FMV”) of the Company's shareholding underlying its $150,000 CanBiocin 8% convertible debenture whereby the 120,000 CanBiocin shares into which the debenture has since been converted (April 14th, 2022) have been determined to have increased in value to $1.75 from their $1.25 conversion price.

For three years, the Company has seen its revenue growing at a >20% per annum compounded rate.  It is rewarding to see that growth supported this year by our CanBiocin investment as that company grew revenue by 300% in a profitable 2021 year and executed a $1.75 per share financing at yearend. Both of those events combined to drive the increase in the FMV of the CanBiocin shares held by Innovotech.

Three-year summary of 12-Month revenue & gross profit ($)

Cash generated by operating activities was $394,653, which, when added to the $150,000 share issuance to pay for the acquisition of the CanBiocin debenture and the increase in fair market value thereof combined to be the primary drivers of an increase in shareholder’s equity from $644,978 to $1,176,930.

Selected balance sheet items ($)

2021 Developments

The 2021 financial results drove an increase in shareholder’s equity from $644,978 to $1,176,930 of which working capital comprised $774,521. Cash of $442,419 and trade receivables of $368,931 comprised the principal components of working capital.

During the year we promoted Dr. Tyler Boone to Chief Operating Officer and  Dr. Patricia Nadworny to Chief Scientific Officer (CSO).   As a result of the above two appointments, Innovotech now has a committed and experienced executive team fully familiar with our multiple operating procedures working with more laboratory space equipped with new and upgraded facilities enabling us to handle a larger volume of contract research.

In 2021 we also enhanced our banking arrangements, improved our invoice payment process, increased our yield on surplus cash, revisited our SRED credit application procedures to ensure support for our R&D work, and began a relationship to improve our foreign exchange trading procedures, the latter of which was completed subsequent to year end.

About Innovotech

Innovotech is a Canadian biotechnology company owning proprietary intellectual property, conducting contract research, and owning and providing proprietary devices for testing in multiple applications in microbiology.  Innovotech can be found online at www.innovotech.ca.

Alan C. Savage

Director & CFO

Innovotech Inc.

604 220-4935

This document may contain forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company’s exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management’s assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward-looking statements, except as required by applicable law.

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