INNOVOTECH announces an increase in its net profit in 2021

Edmonton– TheNewswire – April 26, 2022. Innovotech Inc. (TSXV:IOT), a pioneer in the field of biofilm product development, is pleased to report net income of $367,130 for the year 2021 on revenues of $1,481,767. Net operating income of $281,135 was increased by an increase of $85,995 in the fair market value (“FMV”) of the Company’s equity ownership underlying its CanBiocin 8% convertible debenture of $150,000, the 120,000 shares of CanBiocin into which the debenture has since been converted (April 14and2022) were determined to have increased in value to $1.75 from their conversion price of $1.25.

For the past three years, the Company has seen its turnover grow at a compound rate of >20% per year. It is gratifying to see this growth supported this year by our investment in CanBiocin, as this company grew revenue by 300% in a profitable 2021 and executed a $1.75 per share financing at the end of the year. These two events combined to cause the FMV of CanBiocin shares held by Innovotech to increase.

Three-Year Summary of 12-Month Revenue and Gross Margin ($)





Gross revenue



986 225

Cost of sales

363 153


291 112

Gross profit


866 874

695 113

Operating Expenses

850 662


737 874

Interest expense




interest income


Gain on debenture fair value adjustment.


Term Loan Waiver



Net profit (loss)

367 130



Cash provided by operating activities amounted to $394,653, which, together with the issuance of shares of $150,000 to pay for the acquisition of the CanBiocin debenture and the increase in its fair market value, was the primary driver of an increase in equity from $644,978 to $1,176,930. .

Selected balance sheet items ($)


December 31, 2021

December 31, 2020

December 31, 2019

Current assets

Equipment and others

993 530
439 443

752 725




Total assets


822 440


Current liabilities

Rental obligations






Total responsibilities








Developments 2021

The 2021 financial results resulted in an increase in shareholders’ equity from $644,978 to $1,176,930, of which working capital included $774,521. Cash of $442,419 and trade receivables of $368,931 were the main components of working capital.

During the year, we 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 management team fully familiar with our multiple operating procedures working with more laboratory space equipped with new and improved facilities enabling us to manage a greater volume of contract research.

In 2021 we also improved our banking arrangements, improved our bill payment process, increased our yield on excess cash, reviewed our SRED credit application procedures to ensure support for our R&D work, and entered into a relationship to improve our procedures currency trading, the last of which was completed after the end of the year.

About Innovotech

Innovotech is a Canadian biotechnology company that owns proprietary intellectual property, conducts contract research, and owns and supplies proprietary devices for testing multiple applications in microbiology. Innovotech is available online at

Alan C. Savage

Director & CFO

Innovotech Inc.

604 220-4935

This document may contain forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; therefore, actual results may differ materially from past results and from those expressed or implied by 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 in 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; the use of key strategic relationships; the uncertainty of protecting intellectual property and the potential costs associated with defending it; 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 differ materially from those anticipated. The Company undertakes no obligation to issue or update any forward-looking statements, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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