Innovotech Inc.
TSX VENTURE : IOT

Innovotech Inc.

May 15, 2013 08:00 ET

Innovotech Reports First Quarter 2013 Financial Results

EDMONTON, ALBERTA--(Marketwired - May 15, 2013) - Innovotech Inc. (TSX VENTURE:IOT), an innovator in the field of biofilm product development, today announced its audited financial and operational results for the quarter ended March 31, 2013.

Highlights:

  • Company reduced expenses while advancing InnovoSIL™ development.
  • InnovoSIL™-1 successfully deposited as an antimicrobial coating on various materials used in medical devices such as catheters.
  • Product gross margin percentages improved during the quarter

The big news during the quarter has come from Innovotech's Research and Development efforts. "Tests show InnovoSIL™-1 performs significantly better than the present two leading wound care products in killing bacteria typically present in wounds" says Ken Boutilier, Innovotech's CEO. "Not only that, InnovoSIL™-1 has other crucial properties, such as stability and ease of manufacture that make it an ideal candidate for both wound dressings and for coatings of medical devices. The Company has signed material transfer agreements with a number of major medical device companies with interests in applying InnovoSIL™-1 to wound dressings, urinary catheters, vascular catheters and endotracheal (breathing) tubes."

Financial Summary

($) Three-month period ended Three-month period ended
March 31, 2013 March 31, 2012
Revenues 163,427 172,995
G&A 229,395 297,986
R&D 209,099 237,718
Net loss (354,398 ) (394,993 )
Share Price 0.28 0.62
Cash position 164,836 271,031

Revenues

In the three-month period ended March 31, 2013, total revenues were $163,427 (2012 - 172,995; 2011 - $296,936). This included contract research revenue of $112,262 (2012 - $139,657; 2011 - $261,509) and product sales of $51,165 (2012 - $33,338; 2011 - $35,427). Revenue from contract research was affected by the delay of a major project into the second quarter.

General and Administrative Expense

In the three-month period ended March 31, 2013, general and administrative expense, including stock based compensation expense and allocated amortization expense, was $229,395 (2012 - 297,986). The reduction of G&A expenses is a result of various cost saving measures implemented over the past 12 months.

Research and Development

In the three-month period ended March 31, 2013, research and development expense was $209,099 (2012 - $237,718). The cost was partially offset by various grants of $38,738 (2012 - $154,782).

Liquidity and Capital Resources

At March 31, 2013, the Company had $164,836 in cash compared to $447,469 at December 31, 2012. Continued investment in development in the Company's lead products have contributed to a decrease in cash reserves over the past year. Cash generated by contract research activity in the quarter was lower than expected also contributing to a decrease in cash reserves.

Innovotech's first quarter 2013 Financial Statements and Management's Discussion and Analysis will be filed on The System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

About Innovotech Inc:

Innovotech Inc. is an innovator in the field of biofilm product development, focused on providing innovative and practical solutions to medical, agricultural and industrial problems caused by microbial biofilms. Biofilms are organized communities of microorganisms that exist in virtually every natural environment and are responsible for a host of diseases in human health, animal health and agriculture. There are few products or regulatory standards, aside from those of Innovotech, designed specifically for biofilm-forming organisms.

Innovotech has a broad range of products that address the issue of biofilms within a number of different industries, including commercially available products in a variety of market segments; the MBEC Assay™, InnovoSIL™, bioFILM PA™ InnovoSCEPT™-Human and InnovoSCEPT™- Veterinary tests. The MBEC Assay™ is a high throughput biofilm growth device that was recently approved as an ASTM International standard. InnovoSIL™ is a family of silver-based antimicrobials promising superior performance for medical device coatings, bioFILM PA™ and InnovoSCEPT™-Human are the first diagnostic tests to assist physicians in the selection of the most effective antibiotic treatment for patients with biofilm-based chronic infections, while the InnovoSCEPT™-Veterinary tests are designed to determine the most effective antibiotic treatment for chronic infections in both large and small animals. Agress® and AgreGuard™ are unique, environmentally friendly seed treatments and plant sprays designed to protect crops against both bacterial and fungal infections. Agress® is entering the regulatory approval stage.

Connect with us:

Website: www.innovotech.ca

Blog: www.cf-test.ca

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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