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Innovotech reports first quarter 2012 financial results
Edmonton, Alberta, Canada
May 16, 2012
Innovotech Inc. (TSX VENTURE:IOT) announced its audited financial and operational results for the quarter ended March 31, 2012.
Highlights:
- Innovotech receives initial purchase orders for Human and Veterinary InnovoSCEPT products
- Encouraging interim results in one of the two blinded study groups from the clinical trial at the Hospital for Sick Children
- Launched aggressive marketing campaign to promote Innovotech biofilm research expertise
"Initial purchase orders received in the quarter for the InnovoSCEPT susceptibility test product line from Spectrum Labs, for our veterinary tests, and Doctor's Data, for our human tests, are a promising start for revenue growth " said Ken Boutilier, CEO of Innovotech. "The Company also received interim results from the ongoing clinical trial at the Hospital for Sick Children showing a greater reduction in bacteria in the lungs in one of the two patient groups, although to maintain the integrity of the trial it could not be revealed if the beneficial group was the one using Innovotech's product bioFILM PA. Reduction of bacteria in the lungs means that the treatment is more effective and will likely be administered for a shorter time, meaning faster recovery for a patient and reduced cost for the medical system."
The Company has launched an aggressive marketing program to promote its biofilm expertise, including; adding to the contract research marketing team, hosting a Biofilm Workshop for the US Food and Drug Administration and industry clients in Washington DC, and increasing participation in industry conferences.
Subsequent to the quarter end the Company is actively engaged in a private placement financing to strengthen its cash position. Commitments have already been received for over $500,000.
Financial Summary
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Three-month period Three-month period
($) ended March 31, 2012 ended March 31, 2011
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Revenues 172,995 296,936
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G&A 297,986 281,535
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R&D 237,718 277,588
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Net loss (394,993) (308,562)
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Share Price 0.62 0.75
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Cash position 271,031 412,934
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Revenues
In the three-month period ended March 31, 2012, total revenues were $172,995 (2011 - $296,936; 2010 - $454,370). This included contract research revenue of $139,657 (2011 - $261,509; 2010 - $375,315) and product sales of $33,338 (2011 - $35,427; 2010 - $19,055). Recent delays in regulatory approvals have slowed product development for major Innovotech's clients within this sector resulting in a reduction in Innovotech's contract research revenue.
General and Administrative Expense
In the three-month period ended March 31, 2012, general and administrative expense, including stock based compensation expense and allocated amortization expense, was $297,986 (2011 - $281,535). The increase was mainly attributable to increased building and overhead expenses and stock options compensation expense.
Research and Development
In the three-month period ended March 31, 2012, research and development expense was $237,718 (2011 - $279,693). The cost was partially offset by various grants of $154,782 (2011 - $112,023)
Liquidity and Capital Resources
At March 31, 2012, the Company had $271,031 in cash compared to $459,275 at December 31, 2011. Continued investment in development and marketing of two of the Company's lead products have contributed to a decrease in cash reserves over the past year. These expenditures were partially offset by cash inflows from product sales, contract research revenue and various grants.
Innovotech's first quarter 2011 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
More news from: Innovotech Inc.
Website: http://www.innovotech.ca Published: May 16, 2012 |
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