(TheNewswire)
Edmonton – TheNewswire - May 24, 2022. Innovotech Inc.(TSXV:IOT), a pioneer in the field of biofilm product development, reports a net loss of $32,287 for the 2022 first quarter on account of reduced revenue of $276,648 compared to $308,575 in Q1 of the prior year. Both product sales and contract research revenues declined. The Company believes that the decline in product revenue was consequent on quarterly inventory building in 2021 by our clients on account of the well-advertised global supply chain issues. Sales of products were down by 23% to $66,229. Contract research service fees declined by 9% to $194,182 compared to Q1, 2021. Cash generated by operating activities was negative $5,557.
While the lower level of Q1 business activity allowed for Quality, Safety and HR systems to be updated following a very busy 2021, it is not the start to the 2022 year that the Company expected. Management and staff were also able to spend more time on development of the new testing platforms that we have been working on. We will be rolling out these new devices over the balance of 2022 with a view to favorably impacting the remainder of the year.
We also saw continued interest in potential collaborations on new applications for InnovoSIL-1 from prospective partners following on past non-disclosure and material transfer agreements and the Company is optimistic toward advancing one or more of these active interests to the agreement stage.
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Q1 2022 comparative financial results
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March 31st, 2022
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March 31st, 2021
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Gross revenue
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276,648
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308,575
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|
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Cost of sales
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91,268
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80,674
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Gross profit
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185,380
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227,901
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Operating expenses
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219,653
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207,747
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Interest expense
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(1,730)
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(2,081)
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Interest income
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3,716
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-
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Net profit (loss)
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(32,287)
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22,235
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Innovotech’s balance sheet remains strong. Working capital 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 owning proprietary intellectual property, conducting contract research, and owning and providing proprietary devices for testing in multiple applications 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 statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company’s exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management’s assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward-looking statements, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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