Edmonton, AB -  TheNewswire - May 25, 2023 - Innovotech Inc. (TSXV:IOT) incurred a loss of $83,005 on revenue of $255,692 for the first quarter (Q1) ended March 31st, 2023.

Contract research fees declined 6.1% in Q1 to $182,269 from $194,182 in Q1 of the prior year.  Product sales rose 10.9% to $73,423 from $66,229.  Low total Q1 revenues of $255,692 were the principal cause of the net loss of $83,005 for the quarter versus a loss of $32,287 in Q1 of the prior year.

Expensed R&D investment of $23,951 and increased sales and marketing expenses of $7,622 were factors in the negative results.  General and administrative expenditures were little changed and follow on cost-of-living increases provided to staff during the 2022 year.  

The Company advises that it has visibility on higher contract service revenues evidenced from signed, issued, and probable contract research protocols extending over Q2 and into Q3 of the current year.  On the other hand, Innovotech plans for an increase in research and development investment on its proprietary InnovoSIL™-1 silver antimicrobial, on the earn-in agreement respecting the Nou Life Sciences conjugated molecules, and on development to enable new contract research offerings over the balance of the year.  The cost of this research and development will be expensed against earnings as incurred.

REVENUE & GROSS PROFIT

OPERATING EXPENSES & NET LOSS

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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