Edmonton, AB - TheNewswire - August 15, 2023 - Innovotech Inc. (TSXV:IOT) (or “the Company”) recorded a second quarter profit of $72,900 on revenue of $411,023.  These results were not sufficient to eliminate the loss incurred in the first quarter of 2023.  Consequently, the Company has recorded a first half loss of $10,105.

Second quarter (Q2) revenue rose to $411,023 from $182,269 in the first quarter of 2023 and was up 68% over the prior year’s Q2 revenue of $259,584.  The higher revenue in Q2, 2023 was driven by $357,170 of contract research fees versus $199,207 in Q2 of the prior year.  Product sales were slightly lower at $53,853 versus $60,377 in the prior year.

General and administrative (G&A) expenses rose by 12% to $232,795 reflecting salary increases made over the past 12 months.  Research and development (R&D) investment of $26,854 decreased by 32% from $39,302 while sales and marketing expenses rose to $7,777 from $258 in Q2 of 2022.  Offsetting these expenses, the Company was in receipt of a SRED (Scientific Research and Development) grant in the amount of $33,439 in respect of 2022 R&D investment by the Company.    

REVENUE & GROSS PROFIT

OPERATING EXPENSES & NET INCOME

6 MONTH FINANCIAL RESULTS TO JUNE 30TH, 2023 (H1)

For the first 6 months of 2023, the improved results in Q2 were not able to eliminate the loss incurred in Q1 of the current year and the Company reports a 6-month loss of $10,105.  Revenue rose 24.3% over that of the prior year.

REVENUE & GROSS PROFIT

OPERATING EXPENSES & NET INCOME

The Company has applied to the TSX Venture Exchange to amend the expiry date of an aggregate of 937,500 common share purchase warrants (the “Warrants”) issued pursuant to a private placement which closed on September 2, 2020. Innovotech has applied to extend the expiry date of the Warrants from September 2, 2023 to September 2, 2024. In all other respects, the terms of the Warrants will remain unchanged and in full force and effect.  The amendments to the terms of the Warrants are subject to receipt of all applicable regulatory and stock exchange approvals.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.