Edmonton, Alberta – TheNewswire - April 20th, 2021 – Innovotech Inc. (TSXV:IOT) (“Innovotech” or “the Company”), is pleased to report its first profitable year ever following two years of successive 20%+ increases in revenue.  In 2020, the Company earned $106,317 off revenues of $1,193,382. compared with losses incurred in the 2018 and 2019 years as tabled below.

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

 

Year	2020	2019	2018
Gross revenue	1,193,382	986,225	826,935
Cost of sales	326,508	291,112	220,614
Gross profit	866,874	695,113	606,321
Operating expenses	767,557	737,874	733,308
Term loan forgiveness	(10,000)	-	-
Interest expense	3,000	6,000	647
Net profit (loss)	106,317	(48,761)	(127,634)

 

The 2020 year provided cash from operating activities of $175,998, which, added to the $375,000 proceeds from a unit private placement during the year combined to strengthen our balance sheet.

Selected balance sheet items ($)

                                        Dec. 31, 2020                  Dec. 31, 2019

Current assets Equipment & other	752,725 69,715	224,825 50,057
Total assets	822,440	274,882
Current liabilities Long-term liabilities	157,462 20,000	76,795 100,000
Total liabilities	177,462	176,795
Shareholder’s equity	644,978	98,087

 

2020 Highlights:

• - On July 14th, 2020, Innovotech announced a Collaboration Agreement on InnovoSIL™-1 with a global medical implant company whereby future RD and patent costs are for that company’s account and exclusivity payments are received by Innovotech on a quarterly basis.

 

• - On August 17th, 2020, the Company acquired the right (but not the obligation) to earn a 60% interest in Nou Life Sciences Inc whose assets consist of a patent on the linking of alpha lipoic acid and L-carnitine into one molecule toward improved penetration of human skin to obtain deeper delivery of these two anti-oxidants.  The agreement closed on January 18th, 2021.

  - On September 2nd, 2020 Innovotech received final approval from the TSX Venture Exchange for the closing of a private placement.  At the close, Innovotech raised $375,000 through the issuance of 1,875,000 units at a price of 20 cents per unit. Each unit was comprised of one common share and one-half common share purchase warrant.  

 

• - On September 24th, 2020, management, and staff of Innovotech reached 100,000 laboratory hours without a single lost time accident.

 

• - Payments made on October 8th and November 7th, 2020 reduced the Canadian Emergency Business Account term loan balance by $10,000 to $20,000 if repaid prior to Dec. 31, 2022.

 

• - On October 30th, the Company repaid a $100,000 shareholder loan, and except for the non-interest-bearing Canadian Emergency Business Account loan, Innovotech is debt free.

 

• - On October 16th, 2020, the Company agreed to acquire a $150,000 8% convertible debenture issued by and convertible into 120,000 shares of CanBiocin Inc at $1.25.  Payment was by way of issuance of 625,000 Innovotech treasury shares.  The debenture was acquired from Lonsdale Capital Corporation, a related party.  The transaction closed on February 19th, 2021,

Looking ahead to the 2021 year, with a stronger balance sheet and our now profitable operations, we are better able to represent ourselves to customers to grow our laboratory contract research business.  With our newly appointed COO, Dr. Tyler Boone, we will continue to focus on our laboratories and contract research to maintain the high quality of work that has become consistent with our reputation.  With this focus we will seek to maintain and work to improve on our two year revenue trend through the 2021 year.

Externally, the Company will continue to be alert for opportunities that may arise to further increase our revenues.

About Innovotech Inc.

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 and can be found online at www.innovotech.ca.

 

“Alan Savage”

 

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.