Management expects Triple-digit Percentage Revenue Growth sequentially for the Fiscal 2022 Third Quarter

Novo Integrated Sciences, Inc. (NASDAQ:NVOS) (the “Company” or “Novo”), pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare ecosystem of multiple patient and consumer touchpoints for services and product innovation, today reported its financial results for the fiscal quarter ended February 28, 2022.

Robert Mattacchione, Novo’s CEO and Board Chairman, stated, “The 38.2% year-over-year revenue growth we experienced for the fiscal second quarter is directly related to the expansion of our essential and differentiated ecosystem for the delivery of healthcare related services and products. The Company projects 'triple-digit' percentage revenue growth sequentially for the fiscal third quarter ending May 31, 2022 primarily due to product and diagnostic technology sales. This projected acceleration in revenue growth in future quarters is directly related to the effects of commercializing our three-pillar model and crystalizes the Company’s mission for a fully integrated healthcare ecosystem, with global reach, resulting in rapid growth and profitability.”

Financial Highlights for the Period Ended February 28, 2022:

  • Cash and cash equivalents were $15.9 million, total assets were $70.3 million, total liabilities were $25.8 million, and stockholders’ equity was $44.5 million.
  • Revenues were $2,869,223, representing an increase of $793,329, or 38.2%, from $2,075,894 for the same period in 2021 principally due to the acquisition of Acenzia, Inc. in June 2021 and Terragenx in November 2021. Acenzia’s and Terragenx’ revenue for the three months ended February 28, 2022 was $749,345 and $245,658, respectively. Revenue from healthcare services decreased by 9.7%, when comparing the revenue for the three months ended February 28, 2022 to the same period in 2021, primarily due to a surge of COVID-19 in the province of Ontario, Canada, limiting clinic and eldercare patient-practitioner direct personal interaction.
  • Operating costs were $3,337,030, representing an increase of $1,259,640, or 60.6%, from $2,077,390 for the same period in 2021 principally due to (i) an increase in legal and professional fees related to fund raising, and (ii) an increase in overhead expenses associated with the acquisitions of Acenzia, PRO-DIP, and Terragenx which was approximately $1,133,000. In subsequent quarters, this increase in overhead expenses associated with Acenzia, PRO-DIP, and Terragenx is projected to decrease as the Company integrates and consolidates operations.
  • Net loss attributed to Novo Integrated Sciences, Inc. was $4,805,167, representing an increase of $3,465,297, or 258.6%, from $1,339,870 for the same period in 2021 principally due to (i) an increase in interest expense, (ii) an increase in amortization of debt discounts, (iii) an increase in legal and professional fees related to fund raising, (iv) an increase in overhead expenses associated with the acquisitions of Acenzia, PRO-DIP, and Terragenx which was approximately $1,133,000, and (v) an increase in foreign currency transaction losses.
  • On December 14, 2022, the Company completed a registered direct offering with accredited institutional investors, resulting in gross proceeds of $15 million to Novo.

Operational Milestones:

  • Completed an amended and restated Master Facility License Agreement with LA Fitness in Canada.
  • IoNovo Iodide and IoNovo for Kids Pure Iodine oral sprays granted Natural Product Number (NPN) by Health Canada.
  • Signed an Asset Purchase Agreement with the shareholder of Poling Taddeo Hovius Physiotherapy Professional Corp. (“PTHPC”), a clinic-based physiotherapy, rehabilitative, and related ancillary services and products business known as Fairway Physiotherapy and Sports Injury Clinic in Ontario province, Canada, to acquire all assets of PTHPC for a purchase price of $627,000 in exchange for an allotment of 156,750 restricted shares of the Company’s common stock at $4.00 per share. The transaction closed on March 1, 2022.
  • Signed a Share Exchange Agreement with the shareholder of 12858461 Canada Corp. (“1285”), a clinic-based physiotherapy and related ancillary services and products business in Ontario province, Canada, to acquire 50.1% of 1285 for a purchase price of $68,000 in exchange for an allotment of 17,000 restricted shares of the Company’s common stock at $4.00 per share. The transaction closed on March 1, 2022.

Operational Milestones Subsequent to End of Fiscal 2022 Second Quarter:

  • Completed Acquisition of Clinical Consultants International LLC (CCI).
  • As a result of CCI acquisition, Novo signed a memorandum of understanding with Boditech Med, a global point-of-care testing leader, to market and distribute in North America.
  • PRO-DIP® issued U.S. Patent for oral pouch delivery system technology.

About Novo Integrated Sciences, Inc.

Novo Integrated Sciences, Inc. is pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare ecosystem of multiple patient and consumer touchpoints for services and product innovation. Novo offers an essential and differentiated solution to deliver, or intend to deliver, these services and products through the integration of medical technology, diagnostic and therapeutic solutions, and rehabilitative science.

We believe that “decentralizing” healthcare, through the integration of medical technology and interconnectivity, is an essential solution to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future. Specific to non-critical care, ongoing advancements in both medical technology and inter-connectivity are allowing for a shift of the patient/practitioner relationship to the patient’s home and away from on-site visits to primary medical centers with mass-services. This acceleration of “ease-of-access” in the patient/practitioner interaction for non-critical care diagnosis and subsequent treatment minimizes the degradation of non-critical health conditions to critical conditions as well as allowing for more cost-effective healthcare distribution.

The Company’s decentralized healthcare business model is centered on three primary pillars to best support the transformation of non-catastrophic healthcare delivery to patients and consumers:

  • First Pillar: Service Networks. Deliver multidisciplinary primary care services through (i) an affiliate network of clinic facilities, (ii) small and micro footprint sized clinic facilities primarily located within the footprint of box-store commercial enterprises, (iii) clinic facilities operated through a franchise relationship with the Company, and (iv) corporate operated clinic facilities.
  • Second Pillar: Technology. Develop, deploy, and integrate sophisticated interconnected technology, interfacing the patient to the healthcare practitioner thus expanding the reach and availability of the Company’s services, beyond the traditional clinic location, to geographic areas not readily providing advanced, peripheral based healthcare services, including the patient’s home.
  • Third Pillar: Products. Develop and distribute effective, personalized health and wellness product solutions allowing for the customization of patient preventative care remedies and ultimately a healthier population. The Company’s science-first approach to product innovation further emphasizes our mandate to create and provide over-the-counter preventative and maintenance care solutions.

Innovation through science combined with the integration of sophisticated, secure technology assures Novo Integrated Sciences of continued cutting-edge advancement in patient first platforms.

For more information concerning Novo Integrated Sciences, please visit www.novointegrated.com. For more information on Novo Healthnet Limited, Novo’s wholly owned subsidiary, please visit www.novohealthnet.com.

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Forward-Looking Statements

This press release contains 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. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as "believe," “intend,” "expect," "anticipate," "plan," "potential," "continue" or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties are discussed in Novo’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond Novo’s control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Novo’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Novo assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of February 28, 2022 (unaudited) and August 31, 2021

 

 

 

February 28,

 

August 31,

 

 

2022

 

2021

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,943,997

 

 

$

8,293,162

 

Accounts receivable, net

 

 

1,251,973

 

 

 

1,468,429

 

Inventory

 

 

334,414

 

 

 

339,385

 

Other receivables, current portion

 

 

981,597

 

 

 

814,157

 

Prepaid expenses and other current assets

 

 

503,437

 

 

 

218,376

 

Total current assets

 

 

19,015,418

 

 

 

11,133,509

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

6,157,621

 

 

 

6,070,291

 

Intangible assets, net

 

 

33,217,602

 

 

 

32,436,468

 

Right-of-use assets, net

 

 

2,348,391

 

 

 

2,543,396

 

Other receivables, net of current portion

 

 

522,062

 

 

 

692,738

 

Goodwill

 

 

9,058,936

 

 

 

9,081,879

 

TOTAL ASSETS

 

$

70,320,030

 

 

$

61,958,281

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,105,707

 

 

$

1,449,784

 

Accrued expenses

 

 

1,199,274

 

 

 

1,129,309

 

Accrued interest (including amounts to related parties)

 

 

642,246

 

 

 

366,280

 

Government loans and notes payable, current portion

 

 

5,260,047

 

 

 

4,485,649

 

Convertible notes payable, net of discount of $302,550

 

 

1,572,450

 

 

 

-

 

Contingent liability

 

 

749,626

 

 

 

-

 

Due to related parties

 

 

473,367

 

 

 

478,920

 

Finance lease liability, current portion

 

 

17,533

 

 

 

23,184

 

Operating lease liability, current portion

 

 

533,535

 

 

 

530,797

 

Total current liabilities

 

 

11,553,785

 

 

 

8,463,923

 

 

 

 

 

 

 

 

Debentures, related parties

 

 

979,724

 

 

 

982,205

 

Notes payable, net of current portion

 

 

174,242

 

 

 

5,133,604

 

Convertible notes payable, net of discount of $6,943,704

 

 

9,722,962

 

 

 

-

 

Finance lease liability, net of current portion

 

 

10,854

 

 

 

16,217

 

Operating lease liability, net of current portion

 

 

1,866,858

 

 

 

2,057,805

 

Deferred tax liability

 

 

1,496,581

 

 

 

1,500,372

 

TOTAL LIABILITIES

 

 

25,805,006

 

 

 

18,154,126

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Novo Integrated Sciences, Inc.

 

 

 

 

 

 

Convertible preferred stock; $0.001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding at February 28, 2022 and August 31, 2021, respectively

 

 

 

 

 

 

Common stock; $0.001 par value; 499,000,000 shares authorized; 28,885,144 and 26,610,144 shares issued and outstanding at February 28, 2022 and August 31, 2021, respectively

 

 

28,885

 

 

 

26,610

 

Additional paid-in capital

 

 

60,691,723

 

 

 

54,579,396

 

Common stock to be issued (4,359,841 and 3,622,199 shares at February 28, 2022 and August 31, 2021)

 

 

10,409,457

 

 

 

9,236,607

 

Other comprehensive income

 

 

1,002,282

 

 

 

991,077

 

Accumulated deficit

 

 

(27,581,028

)

 

 

(20,969,274

)

Total Novo Integrated Sciences, Inc. stockholders’ equity

 

 

44,551,319

 

 

 

43,864,416

 

Noncontrolling interest

 

 

(36,295

)

 

 

(60,261

)

Total stockholders’ equity

 

 

44,515,024

 

 

 

43,804,155

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

70,320,030

 

 

$

61,958,281

 

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Three and Six Months Ended February 28, 2022 and 2021 (unaudited)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

February 28,

 

February 28,

 

February 28,

 

February 28,

 

 

2022

 

2021

 

2022

 

2021

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,869,223

 

 

$

2,075,894

 

 

$

6,031,150

 

 

$

4,231,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

1,652,869

 

 

 

1,324,448

 

 

 

3,548,330

 

 

 

2,668,504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,216,354

 

 

 

751,446

 

 

 

2,482,820

 

 

 

1,562,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

 

26,370

 

 

 

602

 

 

 

26,538

 

 

 

1,845

 

General and administrative expenses

 

 

3,310,660

 

 

 

2,076,788

 

 

 

5,940,617

 

 

 

3,644,719

 

Total operating expenses

 

 

3,337,030

 

 

 

2,077,390

 

 

 

5,967,155

 

 

 

3,646,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(2,120,676

)

 

 

(1,325,944

)

 

 

(3,484,335

)

 

 

(2,083,668

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Non operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

8,490

 

 

 

8,301

 

 

 

16,878

 

 

 

16,863

 

Interest expense

 

 

(1,226,182

)

 

 

(22,948

)

 

 

(1,294,912

)

 

 

(46,889

)

Amortization of debt discount

 

 

(1,463,022

)

 

 

-

 

 

 

(1,520,862

)

 

 

-

 

Foreign currency transaction losses

 

 

(66,814

)

 

 

-

 

 

 

(401,368

)

 

 

-

 

Total other income (expense)

 

 

(2,747,528

)

 

 

(14,647

)

 

 

(3,200,264

)

 

 

(30,026

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(4,868,204

)

 

 

(1,340,591

)

 

 

(6,684,599

)

 

 

(2,113,694

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,868,204

)

 

$

(1,340,591

)

 

$

(6,684,599

)

 

$

(2,113,694

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributed to noncontrolling interest

 

 

(63,037

)

 

 

(721

)

 

 

(72,845

)

 

 

(2,354

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributed to Novo Integrated Sciences, Inc.

 

$

(4,805,167

)

 

$

(1,339,870

)

 

$

(6,611,754

)

 

$

(2,111,340

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(4,868,204

)

 

 

(1,340,591

)

 

 

(6,684,599

)

 

 

(2,113,694

)

Foreign currency translation gain

 

 

114,738

 

 

 

42,232

 

 

 

11,205

 

 

 

52,828

 

Comprehensive loss:

 

$

(4,753,466

)

 

$

(1,298,359

)

 

$

(6,673,394

)

 

$

(2,060,866

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

 

28,740,700

 

 

 

23,754,808

 

 

 

27,827,686

 

 

 

23,630,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

$

(0.17

)

 

$

(0.06

)

 

$

(0.24

)

 

$

(0.09

)

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Six Months Ended February 28, 2022 and 2021 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

Additional

 

Common

 

Other

 

 

 

Novo

 

 

 

 

 

 

Common Stock

 

Paid-in

 

Stock To

 

Comprehensive

 

Accumulated

 

Stockholders’

 

Noncontrolling

 

Total

 

 

Shares

 

Amount

 

Capital

 

Be Issued

 

Income

 

Deficit

 

Equity

 

Interest

 

Equity

Balance, August 31, 2021

 

 

26,610,144

 

$

26,610

 

$

54,579,396

 

$

9,236,607

 

$

991,077

 

 

$

(20,969,274

)

 

$

43,864,416

 

 

$

(60,261

)

 

$

43,804,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for services

 

 

35,000

 

 

 

35

 

 

 

64,715

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

64,750

 

 

 

-

 

 

 

64,750

 

Common stock issued as collateral and held in escrow

 

 

2,000,000

 

 

 

2,000

 

 

 

(2,000

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock to be issued for purchase of Terragenx

 

 

-

 

 

 

-

 

 

 

-

 

 

 

983,925

 

 

 

-

 

 

 

-

 

 

 

983,925

 

 

 

97,311

 

 

 

1,081,236

 

Common stock to be issued for purchase of Mullin assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

188,925

 

 

 

-

 

 

 

-

 

 

 

188,925

 

 

 

-

 

 

 

188,925

 

Value of warrants issued with convertible notes

 

 

-

 

 

 

-

 

 

 

295,824

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

295,824

 

 

 

-

 

 

 

295,824

 

Fair value of stock options

 

 

-

 

 

 

-

 

 

 

154,135

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

154,135

 

 

 

-

 

 

 

154,135

 

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(103,533

)

 

 

-

 

 

 

(103,533

)

 

 

(855

)

 

 

(104,388

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,806,587

)

 

 

(1,806,587

)

 

 

(9,808

)

 

 

(1,816,395

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, November 30, 2021

 

 

28,645,144

 

 

 

28,645

 

 

 

55,092,070

 

 

 

10,409,457

 

 

 

887,544

 

 

 

(22,775,861

)

 

 

43,641,855

 

 

 

26,387

 

 

 

43,668,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for services

 

 

240,000

 

 

 

240

 

 

 

297,760

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

298,000

 

 

 

-

 

 

 

298,000

 

Value of warrants issued with convertible notes

 

 

-

 

 

 

-

 

 

 

5,257,466

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,257,466

 

 

 

-

 

 

 

5,257,466

 

Fair value of stock options

 

 

-

 

 

 

-

 

 

 

44,427

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

44,427

 

 

 

-

 

 

 

44,427

 

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

114,738

 

 

 

-

 

 

 

114,738

 

 

 

355

 

 

 

115,093

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,805,167

)

 

 

(4,805,167

)

 

 

(63,037

)

 

 

(4,868,204

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, February 28, 2022

 

 

28,885,144

 

 

$

28,885

 

 

$

60,691,723

 

 

$

10,409,457

 

 

$

1,002,282

 

 

$

(27,581,028

)

 

$

44,551,319

 

 

$

(36,295

)

 

$

44,515,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, August 31, 2020

 

 

23,466,236

 

 

$

23,466

 

 

$

44,905,454

 

 

$

-

 

 

$

1,199,696

 

 

$

(16,507,127

)

 

$

29,621,489

 

 

$

(49,859

)

 

$

29,571,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash

 

 

21,905

 

 

 

22

 

 

 

91,978

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

92,000

 

 

 

-

 

 

 

92,000

 

Common stock issued for services

 

 

65,000

 

 

 

65

 

 

 

247,935

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

248,000

 

 

 

-

 

 

 

248,000

 

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,596

 

 

 

-

 

 

 

10,596

 

 

 

(225

)

 

 

10,371

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(771,470

)

 

 

(771,470

)

 

 

(1,633

)

 

 

(773,103

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, November 30, 2020

 

 

23,553,141

 

 

 

23,553

 

 

 

45,245,367

 

 

 

-

 

 

 

1,210,292

 

 

 

(17,278,597

)

 

 

29,200,615

 

 

 

(51,717

)

 

 

29,148,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

7,500

 

 

 

8

 

 

 

11,992

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,000

 

 

 

-

 

 

 

12,000

 

Common stock issued for intellectual property

 

 

240,000

 

 

 

240

 

 

 

875,760

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

876,000

 

 

 

-

 

 

 

876,000

 

Common stock to be issued for services rendered

 

 

-

 

 

 

-

 

 

 

-

 

 

 

375,000

 

 

 

-

 

 

 

-

 

 

 

375,000

 

 

 

-

 

 

 

375,000

 

Rounding due to stock split

 

 

957

 

 

 

1

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Fair value of vested stock options

 

 

-

 

 

 

-

 

 

 

22,215

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

22,215

 

 

 

-

 

 

 

22,215

 

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

42,232

 

 

 

-

 

 

 

42,232

 

 

 

(965

)

 

 

41,267

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,339,870

)

 

 

(1,339,870

)

 

 

(721

)

 

 

(1,340,591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, February 28, 2021

 

 

23,801,598

 

 

$

23,802

 

 

$

46,155,333

 

 

$

375,000

 

 

$

1,252,524

 

 

$

(18,618,467

)

 

$

29,188,192

 

 

$

(53,403

)

 

$

29,134,789

 

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended February 28, 2022 and 2021 (unaudited)

 

 

 

Six Months Ended

 

 

February 28,

 

February 28,

 

 

2022

 

2021

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(6,684,599

)

 

$

(2,113,694

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,467,837

 

 

 

737,423

 

Fair value of vested stock options

 

 

198,562

 

 

 

22,215

 

Common stock issued for services

 

 

362,750

 

 

 

623,000

 

Operating lease expense

 

 

289,626

 

 

 

306,717

 

Amortization of debt discount

 

 

1,520,862

 

 

 

-

 

Foreign currency transaction losses

 

 

401,368

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

213,125

 

 

 

353,649

 

Inventory

 

 

46,135

 

 

 

-

 

Prepaid expenses and other current assets

 

 

(285,444

)

 

 

(216,568

)

Accounts payable

 

 

(422,847

)

 

 

(938

)

Accrued expenses

 

 

(111,479

)

 

 

153,807

 

Accrued interest

 

 

277,075

 

 

 

5,867

 

Operating lease liability

 

 

(282,703

)

 

 

(301,250

)

Net cash used in operating activities

 

 

(3,009,732

)

 

 

(429,772

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(192,536

)

 

 

(618

)

Cash acquired with acquisition

 

 

29,291

 

 

 

-

 

Net cash used in investing activities

 

 

(163,245

)

 

 

(618

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Repayments to related parties

 

 

(4,350

)

 

 

(82,723

)

Repayments of finance leases

 

 

(10,934

)

 

 

-

 

Repayments of notes payable

 

 

(4,415,000

)

 

 

-

 

Proceeds from the sale of common stock, net of offering costs

 

 

-

 

 

 

92,000

 

Proceeds from exercise of stock options

 

 

-

 

 

 

12,000

 

Proceeds from issuance of convertible notes, net

 

 

15,270,000

 

 

 

-

 

Net cash provided by financing activities

 

 

10,839,716

 

 

 

21,277

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(15,904

)

 

 

39,832

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

7,650,835

 

 

 

(369,281

)

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

8,293,162

 

 

 

2,067,718

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

15,943,997

 

 

$

1,698,437

 

 

 

 

 

 

 

 

CASH PAID FOR:

 

 

 

 

 

 

Interest

 

$

1,294,912

 

 

$

32,936

 

Income taxes

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

Common stock to be issued for intangible assets

 

$

188,925

 

 

$

960,000

 

Common stock to be issued for acquisition

 

$

983,925

 

 

$

-

 

 

Chris David, COO-President Novo Integrated Sciences, Inc. chris.david@novointegrated.com (888) 512-1195

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