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 June 30, 2013.


Highlights:



--  Change of Board Chairmanship 
--  Modest quarterly net income 
--  Strong sales revenue and reduced expenses in the half year 
--  Focused R&D programs advance milestones



Kerry Brown has resigned as a member of the Board of Directors of Innovotech. He
was replaced as Chairman of the Board on August 27, 2013 by Dr. James Timourian.
Dr. Timourian has served on the Innovotech board for many years and brings a
wealth of experience in growing and financing technology companies. He has
invested in and served on the boards and management teams of many companies in
his career.


The net income achieved in the quarter resulted from a number of factors such
as, increased contract research revenue at an increased profit margin, increased
product sales, decreased operating expenses and accrual of SR&ED credits. "We
are pleased with the improved financial results in the quarter," says Ken
Boutilier, Innovotech's CEO. Subsequent to the period end, the Company had
$212,978 in cash on hand, $161,038 in accounts receivable and $270,812 in
accounts payable at August 26, 2013.


"Development work continued on the veterinary InnovoSCEPT(TM) combination
antibiotic panel with the development team reporting that several combinations
had shown effectiveness against previously resistant bacterial strains,"
continued Boutilier.


Faced with the growing threat of hospital-acquired infections, more medical
device companies are showing an interest in testing and developing
InnovoSIL(TM)-1 as an antimicrobial coating for medical devices. Innovotech has
broadened its scope of companies to include orthopedics (joints), veterinary and
surgical device companies. The Company sees an equally large opportunity in the
wound care market.


Financial Summary



----------------------------------------------------------------------------
                    Three-month    Three-month      Six-month      Six-month
                   period ended   period ended   period ended   period ended
($)               June 30, 2013  June 30, 2012  June 30, 2013  June 30, 2012
----------------------------------------------------------------------------
                                                                            
Revenues                374,752        129,834        538,179        302,829
----------------------------------------------------------------------------
                                                                            
G&A                     236,116        248,712        465,507        546,698
----------------------------------------------------------------------------
                                                                            
R&D                     122,950        315,975        332,049        553,694
----------------------------------------------------------------------------
Net income                                                                  
 (loss)                   8,908      (445,059)      (345,486)      (840,053)
----------------------------------------------------------------------------
                                                                            
Share Price                   -              -           0.27           0.37
----------------------------------------------------------------------------
                                                                            
Cash position                 -              -         43,934        409,185
----------------------------------------------------------------------------



Revenues

In the three-month period ended June 30, 2013, total revenues were $374,752
(2012 - 129,834; 2011 - $138,612). This included contract research revenue of
$329,629 (2012 - $111,989; 2011 - $115,287) and product sales of $45,123 (2012 -
17,845; 2011 - 23,325).


In the six month period ended June 30, 2013, total revenues were $538,179 (2012
- 302,829; 2011 - 431,457).


General and Administrative Expense

In the three-month period ended June 30, 2013, general and administrative
expense, including stock based compensation expense and allocated amortization
expense, was $236,116 (2012 - 248,712). In the six-month period ended June 30,
2013, general and administrative expenses were $465,507 (2012 - 546,698). The
reduction of G&A expense is a result of various ongoing cost saving measures.


Research and Development

In the three-month period ended June 30, 2013, research and development expense
was $122,950 (2012 - $315,975). The cost was partially offset by various grants
of $86,480 (2012 -$32,850). In the six-month period ended June 30, 2013,
research and development expense was $332,049 (2012 - 553,694). 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 line.


Liquidity and Capital Resources

At June 30, 2013, the Company had $43,934 in cash compared to $447,469 at
December 31, 2012. Continued investment in development in the Company's lead
products has contributed to a decrease in cash reserves over the past year.
Since several large projects were completed late in the period, the cash
position does not reflect the increase in sales.


Subsequent to the period end, the Company had $212,978 in cash on hand, $161,038
in accounts receivable and $270,812 in accounts payable at August 26, 2013.


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.


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


Connect with us:
Website: www.innovotech.ca
Blog: www.cf-test.ca

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