Novo Integrated Sciences Announces Second Quarter 2021 Financial Results
Novo Integrated Sciences (NASDAQ: NVOS) reported its fiscal second quarter results for the period ending February 28, 2021. Revenues decreased by 14.5% to $2,075,894, largely due to reduced patient visits amid the COVID-19 pandemic. Operating expenses rose significantly by 109% to $2,077,390, driven by increased amortization, salaries for new executives, and legal fees. The net loss expanded to $1,339,870 or $0.06 per share, a 165.6% increase from the previous year. Despite these challenges, the company remains optimistic about future growth.
- Uplisted to the Nasdaq Capital Market on February 23, 2021.
- Successfully raised approximately $8.0 million through a registered direct offering.
- Revenue decreased by 14.5% year-over-year to $2,075,894.
- Operating expenses increased by 109% to $2,077,390.
- Net loss increased by 165.6% to $1,339,870.
Novo Integrated Sciences, Inc. (NASDAQ:NVOS) (the “Company” or “Novo Integrated Sciences”), a provider of multidisciplinary primary healthcare, today reported financial results for its fiscal second quarter period ended February 28, 2021.
The following is of note:
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Revenues for the three months ended February 28, 2021 were
$2,075,894 , representing a decrease of$352,970 , or14.5% , 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. -
Operating expenses for the three months ended February 28, 2021 were
$2,077,390 , representing an increase of$1,083,618 , or109.0% , from$993,772 for the same period in 2020. The increase in operating expenses 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 the 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 attributed to Novo Integrated Sciences for the three months ended February 28, 2021 was
$1,339,870 , or$0.06 per share, representing an increase of$835,386 , or165.6% , from$504,484 , or$0.02 per share, for the same period in 2020. The increase in net loss is principally due to a14.5% decline in revenue and an increase in operating expenses. -
As of February 28, 2021, the Company’s cash and cash equivalents was
$1,698,437 , total assets were$34,856,673 , total liabilities were$5,721,884 , and stockholders’ equity was$29,134,789.
Robert Mattacchione, the Company’s CEO and Board Chairman, stated, “Even with the consequential impact of the COVID-19 global pandemic having now challenged our business for over one year, our revenue for the fiscal year 2021 second quarter is down only
Novo Integrated Sciences’ recent milestones:
- Effective January 26, 2021, the Company appointed 3 new independent directors to serve on both its Board of Directors and the newly formed Audit Committee.
- Effective February 23, 2021, the Company successfully uplisted to the Nasdaq Capital Market.
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On March 22, 2021, the SEC declared effective the Company’s registration statement on Form S-3 (File No. 333- 254278) (the “Form S-3”). The Form S-3 is a shelf registration statement relating to (i) the offer from time to time of securities having a maximum aggregate offering price of
$75,000,000 , and (ii) the resale by certain selling stockholders of up to an aggregate of 597,352 shares of the Company’s common stock. -
On April 13, 2021, the Company completed the closing pursuant to a securities purchase agreement with certain accredited institutional investors to purchase approximately
$8.0 million of its common stock in a registered direct offering under Form S-3 and warrants to purchase common stock in a concurrent private placement. The combined purchase price for one share of common stock and one warrant is$3.35 .
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 our Canadian subsidiary, Novo Healthnet Limited (“NHL”). NHL’s team of multidisciplinary primary health care clinicians and practitioners provide 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.
