(TheNewswire)
Edmonton, AB - TheNewswire - August 15, 2023- Innovotech Inc. (TSXV:IOT) (or “ the Company ”) recorded a secondquarter profit of $72,900 on revenue of $411,023. These results werenot sufficient to eliminate the loss incurred in the first quarter of2023. 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 prioryear’s Q2 revenue of $259,584. The higher revenue in Q2, 2023 wasdriven by $357,170 of contract research fees versus $199,207 in Q2 ofthe prior year. Product sales were slightly lower at $53,853 versus$60,377 in the prior year.
General and administrative (G&A) expenses rose by12% to $232,795 reflecting salary increases made over the past 12months. Research and development (R&D) investment of $26,854decreased by 32% from $39,302 while sales and marketing expenses roseto $7,777 from $258 in Q2 of 2022. Offsetting these expenses, theCompany was in receipt of a SRED (Scientific Research and Development)grant in the amount of $33,439 in respect of 2022 R&D investmentby the Company.
REVENUE & GROSS PROFIT
Period | Q2 2023 | Q2 2022 | % change |
Contract research fees Product sales Other revenue | 357,170 53,853 - | 199,207 60,377 - | |
Gross revenue | 411,023 | 259,584 | +58.3% |
Cost of sales | 106,168 | 78,255 | |
Gross profit Gross profit % | 304,855 | 181,329 70% | +68.1% |
OPERATING EXPENSES & NET INCOME
Period | Q2 2023 | Q2 2022 | % change |
General & administrative Sales & marketing Research & development | 232,795 7,777 26,854 (33,439) | 207,563 258 39,302 - | |
Operating expenses | 233,987 | 247,563 | -5.5% |
Interest expense | 112 (2,144) | 1,416 (4,703) | |
Net income (loss) | 72,900 | (62,507) | +216.6% |
6 MONTH FINANCIAL RESULTS TO JUNE 30 TH , 2023 (H1)
For the first 6 months of 2023, the improved results in Q2 were notable to eliminate the loss incurred in Q1 of the current year and theCompany reports a 6-month loss of $10,105. R evenuerose 24.3% over that of the prior year.
REVENUE & GROSS PROFIT
Period | H1 2023 | H1 2022 | % change |
Contract research fees Product sales Other revenue | 539,439 127,276 - | 393,389 126,606 16,237 | |
Gross revenue | 666,715 | 536,232 | +24.3% |
Cost of sales | 194,056 | 169,253 | |
Gross profit Gross profit % | 472,659 71% | 366,709 68% | +28.9% |
OPERATING EXPENSES & NET INCOME
Period | H1 2023 | H1 2022 | % change |
General & administrative Sales & marketing Research & development | 453,176 15,399 50,805 (33,439) | 420,643 337 45,796 - | |
Operating expenses | 485,941 | 466,776 | +4.1% |
Interest expense | 557 (3,734) | 3,146 (8,419) | |
Net income (loss) | (10,105) | (94,794) | +89.3% |
The Company has applied to the TSX Venture Exchange toamend the expiry date of an aggregate of 937,500 common share purchasewarrants (the “Warrants”) issued pursuant to a private placementwhich closed on September 2, 2020. Innovotech has applied to extendthe expiry date of the Warrants from September 2, 2023 to September 2,2024. In all other respects, the terms of the Warrants will remainunchanged and in full force and effect. The amendments to the termsof the Warrants are subject to receipt of all applicable regulatoryand stock exchange approvals.
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 contain forward-looking statementsthat are predictive in nature and subject to risks and uncertaintiesthat cannot be predicted or quantified; consequently, actual resultsmay differ materially from past results and those expressed or impliedby any forward-looking statements. Factors that could cause orcontribute to such risks or uncertainties include, but are not limitedto: the regulatory environment including the difficulty of predictingregulatory outcomes; changes in the value of the Canadian dollar; theCompany’s reliance on a small number of customers includinggovernment organizations; fluctuations in operating results;government policies or actions; progress and cost of clinical trials;reliance on key strategic relationships; uncertainty related tointellectual property protection and potential costs associated withits defense; the Company’s exposure to lawsuits and other mattersbeyond the control of management. Should known or unknown risks oruncertainties materialize, or should management’s assumptions proveinaccurate, actual results could vary materially from thoseanticipated. The Company undertakes no obligation to publicly make orupdate any forward-looking statements, except as required byapplicable 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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