(TheNewswire)
Edmonton – TheNewswire - April 26, 2022. Innovotech Inc. (TSXV:IOT), a pioneer in the field of biofilm productdevelopment, is pleased to report a net profit of $367,130 for the2021 year from revenue of $1,481,767. Operating net income of$281,135 was augmented by an increase of $85,995 in the fair marketvalue (“FMV”) of the Company's shareholding underlying its$150,000 CanBiocin 8% convertible debenture whereby the 120,000CanBiocin shares into which the debenture has since been converted(April 14 th , 2022) have been determined to have increased in value to$1.75 from their $1.25 conversion price.
For three years, the Company has seen its revenuegrowing at a >20% per annum compounded rate. It is rewarding tosee that growth supported this year by our CanBiocin investment asthat company grew revenue by 300% in a profitable 2021 year andexecuted a $1.75 per share financing at yearend. Both of those eventscombined to drive the increase in the FMV of the CanBiocin shares heldby Innovotech.
Three-year summary of 12-Monthrevenue & gross profit ($)
Year | 2021 | 2020 | 2019 |
Gross revenue | 1,481,767 | 1,193,382 | 986,225 |
Cost of sales | 363,153 | 326,508 | 291,112 |
Gross profit | 1,118,614 | 866,874 | 695,113 |
Operating expenses | 850,662 | 767,557 | 737,874 |
Interest expense | 4,383 | 3,000 | 6,000 |
Interest income | 17,566 | - | - |
Gain on fair value adjustment of debenture. | 85,995 | - | - |
Term loan forgiveness | - | 3,000 | 6,000 |
Net profit (loss) | 367,130 | 106,317 | (48,761) |
Cash generated by operating activities was $394,653,which, when added to the $150,000 share issuance to pay for theacquisition of the CanBiocin debenture and the increase in fair marketvalue thereof combined to be the primary drivers of an increase inshareholder’s equity from $644,978 to $1,176,930.
Selected balance sheetitems ($)
Year | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets Equipment & other | 993,530 | 752,725 69,715 | 224,825 50,057 |
Total assets | 1,432,973 | 822,440 | 274,882 |
Current liabilities Lease obligations | 219,009 | 157,462 20,000 | 76,795 100,000 |
Total liabilities | 256,043 | 177,462 | 176,795 |
Shareholder’s equity | 1,176,930 | 644,978 | 98,087 |
2021 Developments
The 2021 financial results drove an increase inshareholder’s equity from $644,978 to $1,176,930 of which workingcapital comprised $774,521. Cash of $442,419 and trade receivables of$368,931 comprised the principal components of working capital.
During the year we promoted Dr. Tyler Boone to ChiefOperating Officer and Dr. Patricia Nadworny to Chief ScientificOfficer (CSO). As a result of the above two appointments,Innovotech now has a committed and experienced executive team fullyfamiliar with our multiple operating procedures working with morelaboratory space equipped with new and upgraded facilities enabling usto handle a larger volume of contract research.
In 2021 we also enhanced ourbanking arrangements, improved our invoice payment process, increasedour yield on surplus cash, revisited our SRED credit applicationprocedures to ensure support for our R&D work, and began arelationship to improve our foreign exchange trading procedures, thelatter of which was completed subsequent to year end.
About Innovotech
Innovotech is a Canadian biotechnology company owning proprietaryintellectual property, conducting contract research, and owning andproviding proprietary devices for testing in multiple applications inmicrobiology. 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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