INVO Reports Second Quarter 2023 Financial Results
- INVO Bioscience reported a 116% increase in revenue for Q2 2023 compared to Q2 2022. Clinic revenue increased by 126% to $254,364. The company acquired Wisconsin Fertility Institute, generating $5.4 million in revenue and $1.7 million in net income in 2022. INVO implemented expense reductions and raised $4.5 million in a public offering. The CEO expects positive operating cash flow in 2024.
- None.
Company to Host Conference Call Today at 4:30pm ET
Q2 2023 Financial Highlights (all metrics compared to Q2 2022 unless otherwise noted)
- Revenue was
, an increase of$315,902 116% compared to .$146,135 - Clinic revenue increased
126% to , compared to$254,364 . All reported clinic revenue is derived from the Company's INVO Center in$112,358 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
, an increase of$712,433 145% 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 in revenue and approximately$5.4 million of net income in 2022.$1.7 million - 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
in gross proceeds in a public offering of common stock and warrants. The Company used approximately$4.5 million of proceeds for the initial payment for the WFI acquisition.$2.15 million - 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
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
The purchase price of the acquisition is
Financial Results
Revenue for the three months ended June 30, 2023, was
Clinic revenue from the Company's consolidated INVO Center was
Selling, general and administrative expenses for the three months ended June 30, 2023, were approximately
R&D expenses were approximately
Gain from equity investments for the three months ended June 30, 2023, was approximately
Adjusted EBITDA (see Adjusted EBITDA Table) for the three months ended June 30, 2023, was
As of June 30, 2023, the Company had approximately
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
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. | |||||
CONSOLIDATED BALANCE SHEETS | |||||
June 30, 2023 | December 31, | ||||
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, | 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 | For the Six Months Ended | |||||||||||
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 | For the Six Months Ended | ||||||||||
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, | December 31, | ||||||||||
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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SOURCE INVO Bioscience, Inc.
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