IOT Innovotech Inc

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 September 30, 2013.


Highlights:



--  Revenue increases by 11% for nine-month period compared to 2012. 
--  Losses reduced by 49% from previous nine-month period 
--  InnovoSIL(TM)-1 development allows pursuit of licensing and new product
    opportunities.



In the nine-month period ended September 30, 2013, total revenue increased to
$713,575 compared to $644,860 in 2012 representing an 11% increase. Completion
of work in the current contract pipeline will lead to 2013 annual revenue that
is higher than the comparable figure for 2012.


Total net loss for the nine-month period decreased 49% compared to the previous
year. The Company has reduced operating expenses and has tightly focused R&D
costs.


"InnovoSIL(TM)-1 is at a stage in which licensing agreements and potential
products are being actively pursued," says Ken Boutilier, Innovotech's CEO. "The
continuing threat of hospital-acquired infections will force health systems and
medical device companies to reconsider their current approaches and pursue more
innovative products and services. Innovotech is well positioned to meet this
need." 


Financial Summary



----------------------------------------------------------------------------
($)                   Three-month   Three-month    Nine-month    Nine-month 
                     period ended  period ended  period ended  period ended 
                    September 30, September 30, September 30, September 30, 
                             2013          2012          2013          2012 
----------------------------------------------------------------------------
Revenues                  175,396       342,031       713,575       644,860 
----------------------------------------------------------------------------
G&A                       183,765       270,165       649,272       816,863 
----------------------------------------------------------------------------
R&D                       140,067       264,037       472,116       817,731 
----------------------------------------------------------------------------
Net income (loss)        (206,636)     (235,302)     (552,122)   (1,075,354)
----------------------------------------------------------------------------
Share Price                                              0.14          0.35 
----------------------------------------------------------------------------
Cash position                                          61,710       242,633 
----------------------------------------------------------------------------



Revenue

In the three-month period ended September 30, 2013, total revenues were $175,396
(2012 - $342,031; 2011 - $393,970). This included contract research revenue of
$156,843 (2012 - $285,834; 2011 - $327,614) and product sales of $18,553 (2012 -
$56,197; 2011 - $66,356). Higher product sales numbers in 2012 and 2011 were due
to test sales of a preliminary version of the InnovoSCEPT veterinary panel. In
the nine- month period ended September 30, 2013, total revenues were $713,575
(2012 - $644,860; 2011 - $825,428). Sales of the MBEC Assay were up 19% for the
nine-months ended September 30, 2013 compared to the same period in 2012. 


General and Administrative Expense

In the three-month period ended September 30, 2013, general and administrative
expense, including stock based compensation expense and allocated amortization
expense, was $183,765 (2012 - $270,165). In the nine-month period ended
September 30, 2013, general and administrative expenses were $649,272 (2012 -
$816,863). 


Research and Development

In the three-month period ended September 30, 2013, research and development
expense was $140,067 (2012 - $264,037). The cost was partially offset by various
grants of $64,271 (2012 - $129,056). In the nine-month period ended September
30, 2013, research and development expense was $472,116 (2012 - $817,731). The
decrease in costs is mainly attributed to the freeze of agricultural programs in
favour of the development of InnovoSIL(TM) and the InnovoSCEPT(TM) product
lines. 


Liquidity and Capital Resources

At September 30, 2013, the Company had $61,710 in cash compared to $447,469 at
December 31, 2012. Continued investment in development in the Company's lead
products and slower growth than expected in revenue have contributed to a
decrease in cash reserves over the past year. 


The Company has a cash management plan in place that focuses on expanding
revenue from its contract research business and limiting expenses to cover only
critical activities.


As of November 19, 2013, the Company had $99,653 cash on hand, accounts
receivable totaling $99,991 and accounts payable totaling $251,761.


If cash flow from operations is insufficient to cover planned expenditures,
management will allocate available resources in such manner as deemed to be in
the Company's best interest. This may result in a significant reduction in the
scope of existing and planned operations.


Innovotech's second 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.


Grant of Stock Options

In accordance with the policies of the TSX Venture Exchange, the Board of
Directors has approved a grant of stock options to some of the Company's
directors to purchase an aggregate of 110,000 common shares pursuant to its
stock option plan in consideration of their expanded service to the Company.
These options have an exercise price of $0.18 per common share which is $0.10
above the approximate average share price for the past month and expire on
November 19, 2023.


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(TM), InnovoSIL(TM),
bioFILM PA(TM) InnovoSCEPT(TM)-Human and InnovoSCEPT(TM)-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(TM)-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(TM)-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.


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.


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
Blog: www.cf-test.ca

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