Edmonton, April 26, 2022. Innovotech Inc. (IOT – TSX-V), a pioneer in the field of biofilm product development, is pleased to report a net profit of $367,130 for the 2021 year from revenue of $1,481,767. Operating net income of $281,135 was augmented by an increase of $85,995 in the fair market value (“FMV”) of the Company’s shareholding underlying its $150,000 CanBiocin 8% convertible debenture whereby the 120,000 CanBiocin shares into which the debenture has since been converted (April 14th, 2022) have been determined to have increased in value to $1.75 from their $1.25 conversion price.
For three years, the Company has seen its revenue growing at a >20% per annum compounded rate. It is rewarding to see that growth supported this year by our CanBiocin investment as that company grew revenue by 300% in a profitable 2021 year and executed a $1.75 per share financing at yearend. Both of those events combined to drive the increase in the FMV of the CanBiocin shares held by Innovotech.
Cash generated by operating activities was $394,653, which, when added to the $150,000 share issuance to pay for the acquisition of the CanBiocin debenture and the increase in fair market value thereof combined to be the primary drivers of an increase in shareholder’s equity from $644,978 to $1,176,930.
The 2021 financial results drove an increase in shareholder’s equity from $644,978 to $1,176,930 of which working capital comprised $774,521. Cash of $442,419 and trade receivables of $368,931 comprised the principal components of working capital.
During the year the Directors promoted Dr. Tyler Boone to Chief Operating Officer and Dr. Patricia Nadworny to Chief Scientific Officer (CSO). As a result of the above two appointments, Innovotech now has a committed and experienced executive team fully familiar with its multiple operating procedures and working with more laboratory space equipped with new and upgraded facilities enabling us to handle a larger volume of contract research.
In 2021 the Company also enhanced its banking arrangements, improved its invoice payment process, increased its yield on surplus cash, revisited our SRED credit application procedures to ensure support for our R&D work, and began a relationship to improve our foreign exchange trading procedures, the latter of which was completed subsequent to year end.
