IOT Innovotech Inc

Innovotech Inc. (TSX VENTURE:IOT), a pioneer in the field of biofilm product
development, today announced its audited financial and operational results for
the year ended December 31, 2012.


Highlights of the Year:



--  Further progress in the development of the exciting InnovoSIL(TM)
    antibacterial wound care and medical device coating compound 
--  Expansion of novel InnovoSCEPT(TM) veterinary test kit product line



During the year Innovotech continued its development of the proprietary
InnovoSIL(TM) antibacterial product. Hospital acquired infections have a major
patient and financial impact, and InnovoSIL has the potential to reduce one of
the major contributors, infections spread by medical devices. Innovotech has
demonstrated that InnovoSIL has a high level or performance, in effectiveness,
in persistence of activity, and in ability to maintain its performance even in
the presence of blood and other bodily fluids. The Company incorporated
InnovoSIL(TM) into a number of medical device materials including titanium,
plastics and silicone. Product prototypes are now being evaluated by a number of
medical device companies. Wound care applications are also being evaluated.


The InnovoSCEPT(TM) veterinary test kit line was expanded during the year to
include a wider range of bacteria that can be tested as well as antibiotics and
combinations of antibiotics. This will expand the market for the kits as they
will supply more and better information to aid veterinarians in dealing with
chronic pet infections. A substantial portion of the new product development was
completed in the year, so that the kits will be available for sale in 2013. As
InnovoSCEPT represents a new approach to treating infections, Innovotech
recognizes that an educational period is required prior to full-fledged adoption
of InnovoSCEPT. The Company therefore has moderate sales expectations during
this educational period.


"InnovoSIL(TM) has captured the interest of a number of medical device companies
who have commented that they have not seen silver products with such a high
level of performance" says Ken Boutilier, Innovotech's CEO. "Given the economic
and emotional impact that hospital- acquired infections are causing in our
healthcare systems we are truly excited about the opportunities that this
product line creates in reducing these infections."


Financial Summary



($)              Year ended December 31, 2012  Year ended December 31, 2011 
----------------------------------------------------------------------------
Revenues                              868,590                     1,087,905 
----------------------------------------------------------------------------
G&A                                 1,078,919                     1,098,577 
----------------------------------------------------------------------------
R&D                                 1,084,092                     1,100,567 
----------------------------------------------------------------------------
Net loss                           (1,497,723)                   (1,176,899)
----------------------------------------------------------------------------
Share Price                             0.305                          0.74 
----------------------------------------------------------------------------
Cash position                         447,469                       495,275 
----------------------------------------------------------------------------



Revenues

In the year ended December 31, 2012, total revenues were $868,590 (2011 -
$1,087,905; 2010 - $1,595,052). This included contract research revenue of
$706,260 (2011 - $935,990; 2010 - $1,431,975) and product sales of $162,330
(2011 - $151,915; 2010 - $103,077). Revenue in contract research decreased
because a drop off in activity from key existing clients. Increased marketing
efforts, while improving sales in the second half of 2012 did not have a
sufficient impact to achieve 2011 sales.


General and Administrative Expense

In the year ended December 31, 2012, general and administrative expense,
including stock based compensation expense and allocated amortization expense,
was $1,078,918 (2011 - $1,098,577). While some G&A expenses have decreased due
to cost saving measures ("salaries & benefits" have decreased by 14%), other
less discretionary expenses.


Research and Development

In the year ended December 31, 2012, research and development expense, including
allocated amortization and patents costs, was $1,084,092 (2011 - $1,100,567).
The cost was partially offset by various grants of $385,582 (2011 - $499,060).
The company retained activities in research and development of products in
human/veterinary susceptibility testing and Agress(R), while initiating
extensive chemistry work on the InnovoSIL(TM) platform.


Liquidity and Capital Resources

At December 31 2012, the Company had $447,469 in cash compared to $495,275 at
December 31, 2011. Continued investment in development and marketing of
InnovoSCEPT(TM) and InnovoSIL(TM) has contributed to a decrease in cash reserves
since December 31, 2011. These expenditures were partially offset by the
proceeds from the private placements initiated in 2012, as well as by cash
inflows from product sales, contract research revenue and various grants. The
Company will continue with a high level of activity to increase contract
research and product sales revenue in 2013 as seen with an increased number of
purchase orders already in place with clients.


Innovotech's audited Financial Statements for the year ended December 31, 2012
and Management's Discussion and Analysis will be filed on The System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.


Annual General Meeting

Innovotech's Annual General Meeting of Shareholders will be held on April 30,
2013 at 10:00am (Edmonton time) in the Windsor Room, 3rd Floor, Conference
Centre, Manulife Place, 10180 - 101 Street, Edmonton, Alberta, T5J 3S4.


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 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(TM), InnovoSIL(TM),
bioFILM PA(TM) InnovoSCEPT-Human and InnovoSCEPT- Veterinary tests. The MBEC
Assay(TM) is a high throughput biofilm growth device that was recently approved
as an ASTM International standard. InnovoSIL(TM) is a family of silver-based
antimicrobials promising superior performance for medical device coatings,
bioFILM PA(TM) 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(R) and AgreGuard(TM)
are unique, environmentally friendly seed treatments and plant sprays designed
to protect crops against both bacterial and fungal infections. Agress(R) is
entering the regulatory approval stage.


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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Innovotech Inc.
Ken Boutilier
President and CEO
(780) 448-0585 ext. 221
(780) 424-0941 (FAX)
ken.boutilier@innovotech.ca
www.innovotech.ca

Innovotech (TSXV:IOT)
Historical Stock Chart
From Nov 2024 to Dec 2024

Innovotech (TSXV:IOT)
Historical Stock Chart
From Dec 2023 to Dec 2024