Innovotech Reports First Quarter 2011 Financial Results
June 15 2011 - 8:00AM
Marketwired Canada
Innovotech Inc. (TSX VENTURE:IOT), a pioneer in the field of biofilm product
development, today announced its unaudited financial and operational results for
the three month period ended March 31, 2011.
Highlights:
-- Innovotech's bioFILM PA(TM) receives regulatory approval in Israel
allowing the test to be marketed and distributed to hospitals
-- Innovotech adds five new products under the "InnovoSCEPT" name to
provide doctors and veterinarians with better antibiotic treatment
advice for virtually all chronic bacterial infections
"Based on the platform nature of Innovotech's proprietary technology, we have
been able to rapidly expand our product line of biofilm susceptibility kits,
allowing the Company to extend its reach into additional markets such as those
of the veterinary industry, and to supplement our susceptibility testing
services to physicians globally with tests that assess antibiotic treatment
choices for virtually all chronic bacterial infections," stated Ken Boutilier,
President and Chief Executive Officer of Innovotech. "While our ongoing progress
has prompted discussions with a number of potential industry partners interested
in licensing the Company's products, we have also achieved our first sales in
the Japanese veterinary market with our new line of veterinary tests."
Subsequent to the end of the first quarter, Innovotech's MBEC Assay(TM) was
approved as an ASTM International (ASTM) standard for testing the effectiveness
of hard surface disinfectants formulated to kill biofilm. Additionally, the
Company's proprietary light-activated product, Sani-Lux(TM), was approved by the
Canadian Food Inspection Agency (CFIA) as a natural hard surface sanitizer for
use in the food industry.
Financial Summary
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Three month period Three month period
ended March 31, ended March 31,
($) 2011 2010
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Revenues 296,936 454,370
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G&A 281,535 356,268
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R&D 277,588 173,324
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Net loss (308,562) (230,078)
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Share Price 0.75 0.78
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Cash position 412,934 1,299,207
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Revenues
In the three-month period ended March 31, 2011, total revenues were $296,936
(2010 - $454,370; 2009 - $216,000). This included contract research revenue of
$261,509 (2010 - $375,315; 2009 - $193,775), product sales of $35,427 (2010 -
$19,055; 2009 - $22,225). The decline in contract research revenue is not
atypical as lower first quarter sales, in comparison to sales for the balance of
the year, have been seen in several previous years. Product sales, on the other
hand, have experienced a continuous growth over the past three years as a result
of the increased interest in biofilm research.
General and Administrative Expense
In the three-month period ended March 31, 2011, general and administrative
expense was $281,535 (2010 - $356,268). The decrease was mainly due to a
decrease in professional costs and improved management of foreign exchange
transactions.
Research and Development
In the three-month period ended March 31, 2011, research and development expense
was $277,588 (2010 - $173,324). The cost was partially offset by various grants
of $112,023 (2010 - $21,811). The increase in research and development expense
is directly related to increased development costs of a new family of products
in human and veterinary susceptibility testing.
Liquidity and Capital Resources
At March 31, 2011, the Company had $412,934 in cash compared to $766,758 at
December 31, 2010. Continued investment in development and marketing of the
Company's two lead products have contributed to a decrease in cash reserves
since December 31, 2010. These expenditures were partially offset by the cash
inflows from increased product sales and contract research revenue as well as
various grants.
Currently, the Company is actively engaged in a private placement financing, the
proceeds of which will be used to strengthen the Company's cash position.
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
About Innovotech Inc.
Innovotech Inc. is a pioneer 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 responsible
for a host of diseases both in human health and agriculture due to their
inherent resistance to existing antibiotics and disinfectants. Aside from
Innovotech's products there are no antibiotics, disinfectants, diagnostics or
regulatory standards 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 three commercial products,
the MBEC Assay(TM), bioFILM PA(TM) and InnovoSCEPT veterinary kits. The MBEC
Assay(TM) is a high throughput biofilm growth device that was recently approved
as an ASTM International standard. bioFILM PA(TM) is the first diagnostic kit to
assist physicians in the selection of the most effective combination antibiotic
treatment of patients with biofilm-based chronic lung infections, while the
InnovoSCEPT veterinary kits are designed to determine the most effective
antibiotic treatment for infections in both large and small animals.
Innovotech also has two products in advanced stages of development; Agress(R) is
a unique, environmentally friendly seed treatment and plant spray designed to
protect crops against both bacterial and fungal infections and Sani-Lux(TM) is a
light-activated, natural hard surface sanitizer.
Connect with us:
Website: www.innovotech.ca
Blog: www.cf-test.ca
Twitter: www.twitter.com/innovotech
Facebook: www.facebook.com/innovotech
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.
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