(TheNewswire)
Edmonton – TheNewswire - May 24, 2022. Innovotech Inc. ( TSXV: IOT ), a pioneer in the field of biofilmproduct development, reports a net loss of $32,287 for the 2022 firstquarter on account of reduced revenue of $276,648 compared to $308,575in Q1 of the prior year. Both product salesand contract research revenues declined. The Company believes that thedecline in product revenue was consequent on quarterly inventorybuilding in 2021 by our clients on account of the well-advertisedglobal supply chain issues. Sales of products were down by 23% to$66,229. Contract research service fees declined by 9% to $194,182compared to Q1, 2021. Cash generated by operating activities was negative$5,557.
While the lower level of Q1 business activity allowedfor Quality, Safety and HR systems to be updated following a very busy2021, it is not the start to the 2022 year that the Company expected.Management and staff were also able to spend more time on developmentof the new testing platforms that we have been working on. We willbe rolling out these new devices over the balance of 2022 with a viewto favorably impacting the remainder of the year.
We also saw continued interest in potentialcollaborations on new applications for InnovoSIL-1 from prospectivepartners following on past non-disclosure and material transferagreements and the Company is optimistic toward advancing one or moreof these active interests to the agreement stage.
Q1 2022 comparative financial results | March 31 st , 2022 | March 31st, 2021 | |
Gross revenue | 276,648 | 308,575 | |
Cost of sales | 91,268 | 80,674 | |
Gross profit | 185,380 | 227,901 | |
Operating expenses | 219,653 | 207,747 | |
Interest expense | (1,730) | (2,081) | |
Interest income | 3,716 | - | |
Net profit (loss) | (32,287) | 22,235 |
Innovotech’s balance sheet remains strong. Workingcapital declined to $739,463 from $774,521 while cash increased to$552,741 on account of a decline in accounts receivable of $177,821.
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 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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