NEWS RELEASE INNOVOTECH REPORTS PROFITABLE 2020 YEAREND RESULTS Edmonton, Alberta, April 20th, 2021 – Innovotech Inc. (TSX-V, 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 14
th, 2020, Innovotech announced a Collaboration Agreement on InnovoSIL™-1 with a global medical implant company whereby future R&D and patent costs are for that company’s account and exclusivity payments are received by Innovotech on a quarterly basis.
· On August 17
th, 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 18
th, 2021.
· On September 2
nd, 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 24
th, 2020, management, and staff of Innovotech reached 100,000 laboratory hours without a single lost time accident.
· Payments made on October 8
th and November 7
th, 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 30
th, 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 16
th, 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 19
th, 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.