(TheNewswire)
Edmonton, AB - TheNewswire - May 25, 202 3 - InnovotechInc. (TSXV:IOT) incurred a loss of $83,005 on revenue of $255,692 for thefirst quarter (Q1) ended March 31 st , 2023.
Contract research fees declined 6.1% in Q1 to $182,269from $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 theprincipal cause of the net loss of $83,005 for the quarter versus aloss of $32,287 in Q1 of the prior year.
Expensed R&D investment of $23,951 and increasedsales and marketing expenses of $7,622 were factors in the negativeresults. General and administrative expenditures were little changedand follow on cost-of-living increases provided to staff during the2022 year.
T he Company advises that it hasvisibility on higher contract service revenues evidenced from signed,issued, and probable contract research protocols extending over Q2 andinto Q3 of the current year. On the other hand, Innovotech plans foran increase in research and development investment on its proprietaryInnovoSIL™-1 silver antimicrobial, on the earn-in agreementrespecting the Nou Life Sciences conjugated molecules, and ondevelopment to enable new contract research offerings over the balanceof the year. The cost of this research and development will beexpensed against earnings as incurred.
REVENUE & GROSS PROFIT
Period | Q1 2023 | Q1 2022 |
Contract research fees Product sales Other revenue | 182,269 73,423 - | 194,182 66,229 16,237 |
Gross revenue | 255,692 | 276,648 |
Cost of sales | 87,888 | 91,268 |
Gross profit Gross profit % | 167,804 | 185,380 |
OPERATING EXPENSES & NET LOSS
Period | Q1 2023 | Q1 2022 |
General & administrative Sales & marketing Research & development (includingamortization) | 220,381 7,622 23,951 | 213,080 79 6,494 |
Operating expenses | 251,954 | 219,653 |
Interest (expense) | (445) | (1,730) |
Net income (loss) | (83,005) | (32,287) |
About Innovotech
Innovotech is a Canadian biotechnology company owningproprietary intellectual property, conducting contract research, andowning and providing proprietary devices for testing in multipleapplications in microbiology. Innovotech can be found online at www.innovotech.ca .
Alan C. Savage
Director & CFO
Innovotech Inc.
604 220-4935
This document may containforward-looking statements that are predictive in nature and subjectto risks and uncertainties that cannot be predicted or quantified;consequently, actual results may differ materially from past resultsand those expressed or implied by any forward-looking statements.Factors that could cause or contribute to such risks or uncertaintiesinclude, but are not limited to: the regulatory environment includingthe difficulty of predicting regulatory outcomes; changes in the valueof the Canadian dollar; the Company’s reliance on a small number ofcustomers including government organizations; fluctuations inoperating results; government policies or actions; progress and costof clinical trials; reliance on key strategic relationships;uncertainty related to intellectual property protection and potentialcosts associated with its defense; the Company’s exposure tolawsuits and other matters beyond the control of management. Shouldknown or unknown risks or uncertainties materialize, or shouldmanagement’s assumptions prove inaccurate, actual results could varymaterially from those anticipated. The Company undertakes noobligation to publicly make or update any forward-looking statements,except as required by applicable law.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
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