Novo Integrated Sciences Announces Preliminary Revenue and Financial Results of Second Quarter Fiscal Year ‘21

Rhea-AI Summary

Novo Integrated Sciences (NASDAQ:NVOS) reported its preliminary financial results for the second quarter of Fiscal Year 2021, ending February 28, 2021. Revenues were $2,075,894, a 14.5% decrease from $2,428,864 in 2020, primarily due to reduced patient visits during the COVID-19 pandemic. Operating costs surged by 109% to $2,077,390, leading to a net loss of $1,339,870, an increase of 165.6% compared to the previous year. The CEO expressed optimism about the company’s resilience and growth prospects despite ongoing challenges.

Positive

• CEO expresses optimism about growth despite challenges.

Negative

• 14.5% decline in revenue due to COVID-19 impact.
• Operating costs increased by 109% due to higher expenses.
• Net loss widened by 165.6% compared to last year.

Novo Integrated Sciences, Inc. (NASDAQ:NVOS) (the “Company” or “Novo Integrated Sciences”), a U.S.-based provider of multidisciplinary primary healthcare in Canada, announced today preliminary revenue and other financial results for its Fiscal Year 2021 second quarter period ended February 28, 2021.

• Revenues for the three months ended February 28, 2021 were $2,075,894, representing a decrease of $352,970, or 14.5%, from $2,428,864 for the same period in 2020. The decrease in revenue is principally due to the relative decrease in patient clinic visits due to the COVID-19 pandemic which had not begun to impact clinic visits during this period in 2020.
• Operating costs for the three months ended February 28, 2021 were $2,077,390, representing an increase of $1,083,618, or 109%, from $993,772 for the same period in 2020. The increase in operating costs is principally due to an increase in amortization of intangible assets, common stock issued for services including services related to our successful uplist to the Nasdaq Capital Markets, salary expense due to hiring of senior level executives, and legal fees related to the Company’s Nasdaq listing and filing of the Company’s registration statement on Form S-3.
• Net loss for the three months ended February 28, 2021 was $1,339,870, representing an increase of $835,386, or 165.6%, from $504,484 for the same period in 2020. The increase in net loss is principally due to a 14.5% decline in revenue and an increase in operating costs related to an increase in amortization of intangible assets, common stock issued for services including services related to our successful uplist to the Nasdaq Capital Markets, salary expense due to hiring of senior level executives, and legal fees related to the Company’s Nasdaq listing and filing of the Company’s registration statement on Form S-3.

Robert Mattacchione, the Company’s CEO and Board Chairman, stated, “With the COVID-19 global pandemic having now impacted and challenged our business for over one year, our entire team has risen to the challenge and shown tremendous flexibility and ability to adapt. While the current environment remains challenging, we believe our financial condition is strong and we look ahead to the remainder of 2021 with optimism and dedication to growth.”

About Novo Integrated Sciences, Inc.

Novo Integrated Sciences, Inc. owns Canadian and U.S. subsidiaries which deliver, or intend to deliver, multidisciplinary primary health care related services and products through the integration of medical technology, advanced therapeutics and rehabilitative science. Our clinicians and practitioners are not authorized to practice primary care medicine and they are not medically licensed to prescribe pharmaceutical based product solutions.

Currently, the Company’s revenue is generated solely through the team of multidisciplinary primary health care clinicians and practitioners from the Company’s subsidiary, Novo Healthnet Limited (“NHL”), providing assessment, diagnosis, treatment, pain management, rehabilitation, education and primary prevention for a wide array of orthopedic, musculoskeletal, sports injury, and neurological conditions across various demographics including pediatric, adult, and geriatric populations through NHL’s 16 corporate-owned clinics, a contracted network of affiliate clinics, and eldercare related long-term care homes, retirement homes, and community-based locations in Canada.

Our specialized multidisciplinary primary health care services include, but are not limited to, physiotherapy, chiropractic care, manual/manipulative therapy, occupational therapy, eldercare, massage therapy (including pre- and post-partum), acupuncture and functional dry needling, chiropody, stroke and traumatic brain injury/neurological rehabilitation, kinesiology, vestibular therapy, concussion management and baseline testing, trauma sensitive yoga and meditation for concussion-acquired brain injury and occupational stress-PTSD, women’s pelvic health programs, sports medicine therapy, assistive devices, dietitian, holistic nutrition, fall prevention education, sports team conditioning programs including event and game coverage, and private personal training.

We believe that “decentralizing” healthcare, through the integration of medical technology and interconnectivity offers an essential solution to the fundamental transformation of healthcare delivery. 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.

For more information concerning Novo Integrated Sciences, please visit www.novointegrated.com. For more information on NHL, please visit www.novohealthnet.com.

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 Integrated Sciences' 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 Integrated Sciences' control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects Novo Integrated Sciences' 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 Integrated Sciences 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.

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FAQ

What were Novo Integrated Sciences' revenues for Q2 FY2021?

Revenues for Q2 FY2021 were $2,075,894, a 14.5% decrease from $2,428,864 in Q2 FY2020.

How much did operating costs increase in Q2 FY2021 for NVOS?

Operating costs increased by 109% to $2,077,390 compared to $993,772 in Q2 FY2020.

What is the net loss reported by Novo Integrated Sciences for Q2 FY2021?

The net loss for Q2 FY2021 was $1,339,870, up 165.6% from $504,484 in Q2 FY2020.

What factors contributed to Novo Integrated Sciences' revenue decline?

The revenue decline was primarily due to reduced patient clinic visits resulting from the COVID-19 pandemic.

What is the outlook for Novo Integrated Sciences after Q2 FY2021?

The CEO expressed optimism about the company's financial condition and growth potential despite ongoing challenges.