Company to Host Conference Call Today at
4:30pm ET
SARASOTA, Fla., Aug. 14,
2023 /PRNewswire/ -- INVO Bioscience, Inc. (Nasdaq:
INVO) ("INVO" or the "Company"), a healthcare services fertility
company focused on expanding access to advanced treatment worldwide
with its INVOcell® medical device and the intravaginal culture
("IVC") procedure it enables, today announced financial results for
the second quarter ended June 30,
2023 and provided a business update.
Q2 2023 Financial Highlights (all metrics compared to Q2 2022
unless otherwise noted)
- Revenue was $315,902, an increase
of 116% compared to $146,135.
- Clinic revenue increased 126% to $254,364, compared to $112,358. All reported clinic revenue is derived
from the Company's INVO Center in Atlanta, Georgia, which is consolidated in the
Company's financial statements.
- Revenue from all clinics, inclusive of both those accounted for
as consolidated and under the equity method, was $712,433, an increase of 145% compared to
$290,517.
Recent Operational and Strategic Highlights
- Acquired Wisconsin Fertility Institute (WFI), a profitable
Madison-based fertility center
that primarily offers conventional IVF procedures and generated
approximately $5.4 million in revenue
and approximately $1.7 million of net
income in 2022.
- Acquisition further accelerates INVO's transition to a
healthcare services company and provides an opportunity to advance
IVC volume and the ability to secure a greater share of total
fertility cycle revenue.
- Implemented expense reductions as part of go-forward plan to
focus on its healthcare service strategy and a near-term path to
profitability.
- Buildout of the Company's new Tampa,
Florida clinic – Tampa Fertility Institute, an INVO Center –
is nearing completion.
- Raised approximately $4.5 million
in gross proceeds in a public offering of common stock and
warrants. The Company used approximately $2.15 million of proceeds for the initial payment
for the WFI acquisition.
- Received 510(k) FDA clearance for expanded use of the INVOcell
device.
Management Commentary
"We believe we have successfully transformed INVO into a rapidly
growing, innovative healthcare services company which allows us to
help accelerate IVC volume and obtain a greater share of the total
fertility cycle revenue," commented Steve
Shum, CEO of INVO. "The closing of the WFI acquisition last
week, coupled with the rapid 145% revenue growth in our existing
INVO Center's during this past quarter, should position our clinic
operations to be cash flow positive in the third quarter of this
year. Further, we have implemented a number of expense reductions
as part of our go-forward plan to focus on our healthcare service
strategy, which when coupled with the elimination of substantive
costs associated with our successful 510(k) submission, should
drive the business towards overall positive operating cash flow in
2024."
Acquisition Details
On August 11, 2023, INVO announced
it closed the acquisition of Wisconsin Fertility Institute, one of
the state's leading fertility centers, having assisted in welcoming
over 5,000 babies since opening its doors in 2007 and completing
approximately 550 conventional IVF cycles in 2022. The acquisition
provides operational scale and complements the Company's new-build
INVO Center strategy. The Madison-based fertility center primarily
offers conventional IVF procedures, having generated approximately
$5.4 million in revenue and net
income of approximately $1.7 million
for the year ended December 31, 2022.
INVO will look to further expand the center through the
introduction of the IVC procedure as an added service offered to
patients.
The purchase price of the acquisition is $10 million payable over a three-year period.
There was an initial $2.15 million
cash payment made at closing (net of a $350,000 holdback), with subsequent $2.5 million payments due annually for the
following three years. At the discretion of the sellers, subsequent
payments may be paid in cash or in a fixed amount of shares of INVO
common stock at presently agreed values. Wisconsin Fertility
Institute becomes a wholly owned subsidiary, and its financial
statements will be consolidated with those of INVO.
Financial Results
Revenue for the three months ended June
30, 2023, was $315,902
compared to $146,135 for the three
months ended June 30, 2022, an
increase of 116%.
Clinic revenue from the Company's consolidated INVO Center was
$254,364 during the second quarter of
2023, an increase of 126% compared to $112,358 for the three months ended June 30, 2022. Revenue from all INVO Centers
combined was $712,433, an increase of
145% compared to the year-ago period.
Selling, general and administrative expenses for the three
months ended June 30, 2023, were
approximately $2.0 million compared
to approximately $2.4 million for the
three months ended June 30, 2022. The
decrease of approximately $0.4
million was primarily the result of approximately
$0.2 million in decreased personnel
expenses and approximately $0.2
million in decreased marketing expenses. Non-cash,
stock-based compensation expense, which was $0.4 million in the period, compared to
$0.7 million for the same period in
the prior year.
R&D expenses were approximately $0.1
million and $0.2 million for
the three months ended June 30, 2023,
and June 30, 2022, respectively.
Gain from equity investments for the three months ended
June 30, 2023, was approximately
$4,000 compared to a $0.1 million loss for the three months ended
June 30, 2022. The gain is due to an
increase in revenue from the equity method JV's and a decrease in
expenses associated with one-time startup costs.
Adjusted EBITDA (see Adjusted EBITDA Table) for the three months
ended June 30, 2023, was $(1.6) million, compared to adjusted EBITDA of
$(2.2) million for the quarter ended
June 30, 2022.
As of June 30, 2023, the Company
had approximately $0.1 million in
cash. Subsequent to the end of the quarter, the company completed a
public offering generating $4.5
million in gross proceeds.
Use of Non-GAAP Measure
Adjusted EBITDA is a non-GAAP measure. This measure is not
intended to be a substitute for those financial measures reported
in accordance with GAAP. Adjusted EBITDA has been included because
management believes that, when considered together with the GAAP
figures, it provides meaningful information related to our
operating performance and liquidity and can enhance an overall
understanding of financial results and trends. Adjusted EBITDA may
be calculated by us differently than other companies that disclose
measures with the same or similar terms. See our attached
financials for a reconciliation of this non-GAAP measure to the
nearest GAAP measure.
Conference Call Details
INVO has scheduled a conference call for Monday, August 14, 2023, at 4:30 pm ET (1:30 pm
PT) to review these results and recent events. Interested
parties can access the conference call by dialing (833) 756-0861 or
(412) 317-5751, or can listen via a live Internet webcast at
https://app.webinar.net/y0l43MO6o9Z, or via the Investor Relations
section of the Company's website
at https://www.invobio.com/investors. A teleconference replay
of the call will be available through August
21, 2023, at (877) 344-7529 or (412) 317-0088, confirmation
#8863258. A webcast replay will be available in the Investor
Relations section of the Company's website
at https://www.invobio.com/investors for 90 days.
About INVO Bioscience
We are a healthcare services fertility company dedicated to
expanding the assisted reproductive technology ("ART") marketplace
by making fertility care accessible and inclusive to people around
the world. Our commercialization strategy is focused on the opening
of dedicated "INVO Centers" offering the INVOcell® and IVC
procedure (with three centers in North
America now operational), the acquisition of US-based,
profitable in vitro fertilization ("IVF") clinics and the sale and
distribution of our technology solution into existing fertility
clinics. Our proprietary technology, INVOcell®, is a revolutionary
medical device that allows fertilization and early embryo
development to take place in vivo within the woman's body. This
treatment solution is the world's first intravaginal culture
technique for the incubation of oocytes and sperm during
fertilization and early embryo development. This technique,
designated as "IVC", provides patients a more natural, intimate,
and more affordable experience in comparison to other ART
treatments. We believe the IVC procedure can deliver comparable
results at a fraction of the cost of traditional IVF and is a
significantly more effective treatment than intrauterine
insemination ("IUI"). For more information, please visit
www.invobio.com.
Safe Harbor Statement
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
The Company invokes the protections of the Private Securities
Litigation Reform Act of 1995. All statements regarding our
expected future financial position, results of operations, cash
flows, financing plans, business strategies, products and services,
competitive positions, growth opportunities, plans and objectives
of management for future operations, as well as statements that
include words such as "anticipate," "if," "believe," "plan,"
"estimate," "expect," "intend," "may," "could," "should," "will,"
and other similar expressions are forward-looking statements. All
forward-looking statements involve risks, uncertainties, and
contingencies, many of which are beyond our control, which may
cause actual results, performance, or achievements to differ
materially from anticipated results, performance, or achievements.
Factors that may cause actual results to differ materially from
those in the forward-looking statements include those set forth in
our filings at www.sec.gov. We are under no obligation
to (and expressly disclaim any such obligation to) update or alter
our forward-looking statements, whether as a result of new
information, future events, or otherwise.
INVO BIOSCIENCE, INC.
|
|
|
|
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|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
June 30,
2023
|
|
|
December
31,
2022
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash
|
$
|
112,485
|
|
$
|
90,135
|
Accounts
receivable
|
|
74,908
|
|
|
77,149
|
Inventory
|
|
280,018
|
|
|
263,602
|
Prepaid expenses and
other current assets
|
|
374,714
|
|
|
190,201
|
Total current
assets
|
|
842,125
|
|
|
621,087
|
Property and equipment,
net
|
|
659,442
|
|
|
436,729
|
Lease right of
use
|
|
4,004,962
|
|
|
1,808,034
|
Investment in joint
ventures
|
|
1,132,365
|
|
|
1,237,865
|
Total assets
|
$
|
6,638,894
|
|
$
|
4,103,715
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
1,844,629
|
|
$
|
1,349,038
|
Accrued
compensation
|
|
1,202,420
|
|
|
946,262
|
Notes payable,
net
|
|
263,888
|
|
|
100,000
|
Notes payable - related
parties, net
|
|
770,000
|
|
|
662,644
|
Deferred
revenue
|
|
161,187
|
|
|
119,876
|
Lease liability,
current portion
|
|
227,026
|
|
|
231,604
|
Total current
liabilities
|
|
4,469,150
|
|
|
3,409,424
|
Lease liability,
net of current portion
|
|
3,873,289
|
|
|
1,669,954
|
Deferred tax
liability
|
|
1,949
|
|
|
1,949
|
Total
liabilities
|
|
8,344,388
|
|
|
5,081,327
|
|
|
|
|
|
|
Stockholders' equity (deficit)
|
|
|
|
|
|
Common Stock, $.0001
par value; 6,250,000 shares authorized; 826,886 and 608,611
issued
and outstanding as of June 30, 2023 and December 31, 2022,
respectively
|
|
83
|
|
|
61
|
Additional paid-in
capital
|
|
52,869,346
|
|
|
48,805,860
|
Accumulated
deficit
|
|
(54,574,923)
|
|
|
(49,783,533)
|
Total stockholders'
equity (deficit)
|
|
(1,705,494)
|
|
|
(977,612)
|
|
|
-
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
$
|
6,638,894
|
|
$
|
4,103,715
|
INVO BIOSCIENCE, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
June 30,
|
|
For the Six Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Clinic
revenue
|
|
$
|
254,364
|
|
$
|
112,358
|
|
$
|
551,745
|
|
$
|
218,206
|
Product
revenue
|
|
|
61,538
|
|
|
33,777
|
|
|
112,182
|
|
|
90,527
|
Total
revenue
|
|
|
315,902
|
|
|
146,135
|
|
|
663,927
|
|
|
308,733
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
235,714
|
|
|
170,526
|
|
|
466,719
|
|
|
367,207
|
Selling, general and
administrative
|
|
|
2,042,609
|
|
|
2,444,586
|
|
|
4,373,443
|
|
|
4,991,714
|
Research and
development
|
|
|
83,850
|
|
|
190,761
|
|
|
157,370
|
|
|
294,941
|
Depreciation and
amortization
|
|
|
19,705
|
|
|
22,083
|
|
|
38,792
|
|
|
37,630
|
Total operating
expenses
|
|
|
2,381,879
|
|
|
2,827,956
|
|
|
5,036,324
|
|
|
5,691,492
|
Loss from
operations
|
|
|
(2,065,977)
|
|
|
(2,681,821)
|
|
|
(4,372,397)
|
|
|
(5,382,759)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from equity
method joint ventures
|
|
|
3,788
|
|
|
(117,978)
|
|
|
(23,947)
|
|
|
(189,095)
|
Interest
income
|
|
|
-
|
|
|
48
|
|
|
-
|
|
|
273
|
Interest
expense
|
|
|
(175,192)
|
|
|
(102)
|
|
|
(391,781)
|
|
|
(1,558)
|
Foreign currency
exchange loss
|
|
|
(265)
|
|
|
(888)
|
|
|
(400)
|
|
|
(1,914)
|
Total other income
(expense)
|
|
|
(171,669)
|
|
|
(118,920)
|
|
|
(416,128)
|
|
|
(192,294)
|
Loss before income
taxes
|
|
|
(2,237,646)
|
|
|
(2,800,741)
|
|
|
(4,788,525)
|
|
|
(5,575,053)
|
Income taxes
|
|
|
2,865
|
|
|
800
|
|
|
2,865
|
|
|
800
|
Net
loss
|
|
$
|
(2,240,511)
|
|
|
(2,801,541)
|
|
|
(4,791,390)
|
|
|
(5,575,853)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(3.06)
|
|
$
|
(4.62)
|
|
$
|
(7.07)
|
|
$
|
(9.23)
|
Diluted
|
|
$
|
(3.06)
|
|
$
|
(4.62)
|
|
$
|
(7.07)
|
|
$
|
(9.23)
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
732,255
|
|
|
605,760
|
|
|
677,684
|
|
|
604,123
|
Diluted
|
|
|
732,255
|
|
|
605,760
|
|
|
677,684
|
|
|
604,123
|
ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 30
|
|
June 30
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
$
(2,240,511)
|
|
$
(2,801,541)
|
|
$
(4,791,390)
|
|
$
(5,575,853)
|
|
|
Interest
expense
|
|
52,474
|
|
54
|
|
90,683
|
|
1,285
|
|
|
Foreign currency
exchange loss
|
|
265
|
|
888
|
|
400
|
|
1,914
|
|
|
Stock-based
compensation
|
|
99,338
|
|
135,102
|
|
295,741
|
|
445,314
|
|
|
Stock option
expense
|
|
326,916
|
|
432,796
|
|
652,750
|
|
861,284
|
|
|
Non-cash compensation
for services
|
|
45,000
|
|
30,000
|
|
90,000
|
|
30,000
|
|
|
Amortization of debt
discount
|
|
122,718
|
|
-
|
|
301,098
|
|
-
|
|
|
Depreciation and
amortization
|
|
19,705
|
|
22,082
|
|
38,792
|
|
37,629
|
Adjusted
EBITDA
|
|
$
(1,574,095)
|
|
$
(2,180,619)
|
|
$
(3,321,926)
|
|
$
(4,198,427)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain)Loss from equity
method JV
|
|
$
(3,788)
|
|
$
117,978
|
|
$
23,947
|
|
$
189,095
|
|
|
Loss from consolidated
JV (less depreciation)
|
61,486
|
|
132,827
|
|
82,354
|
|
311,524
|
Adjusted EBITDA for INVO
corporate
|
|
$
(1,516,397)
|
|
$
(1,929,814)
|
|
$
(3,215,625)
|
|
$
(3,697,808)
|
INVO Center RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
summarize the combined financial information of our consolidated
and equity method joint venture INVO Centers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
June 30,
|
|
For the Six Months Ended
June 30,
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Statements of
operations:
|
|
|
|
|
|
|
|
|
|
Operating
revenue
|
|
|
$ 712,433
|
|
$
290,517
|
|
$
1,359,141
|
|
$
440,947
|
Operating
expenses
|
|
|
(798,670)
|
|
(679,940)
|
|
(1,529,317)
|
|
(1,175,379)
|
Net income
|
|
|
|
$
(86,237)
|
|
$
(389,423)
|
|
$
(170,176)
|
|
$
(734,432)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2023
|
|
December 31,
2022
|
|
|
|
|
Balance
sheets:
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
$
597,453
|
|
$
447,422
|
|
|
|
|
Long-term
assets
|
|
|
|
1,873,382
|
|
2,000,841
|
|
|
|
|
Current
liabilities
|
|
|
|
(921,886)
|
|
(735,767)
|
|
|
|
|
Long-term
liabilities
|
|
|
(996,892)
|
|
(1,042,167)
|
|
|
|
|
Net assets
|
|
|
|
$
552,057
|
|
$
670,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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View original content to download
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SOURCE INVO Bioscience, Inc.