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 providing services and product innovation, today reported its financial results for the fiscal year ended August 31, 2022.
Robert Mattacchione, the Company’s CEO and Board Chairman, stated, “The Company’s fiscal year 2022 revenue increase of 26% compared to fiscal year 2021 revenue includes an adjustment, from gross sales to net sales, reducing Novo’s total reflected fiscal year 2022 3rd quarter outsourced product sales by approximately $9.4m. The Company elected to apply the adjustment based on the inconsistent and sporadic nature of outsourced product sales and the significant capital required to support the sales cycle. The Company remains committed to the commercialization of its proprietary product offerings and the expansion and delivery of its essential services and solutions to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future. Specific to increasing the Company’s cash position, management is primarily focused on raising capital through non-dilutive structures and solutions.”
Financial Info for the Fiscal Year Ended August 31, 2022:
- As of August 31, 2022, the Company’s cash and cash equivalents were $2.178 million, total assets were $40.872 million, total liabilities were $18.825 million, and stockholders’ equity was $22.305 million.
- Revenues for the year ended August 31, 2022 were $11,737,937, representing an increase of $2,432,682, or 26%, from $9,305,255 for the same period in 2021. The increase in revenue is principally due to an increase in product sales which resulted in an increase in revenue of $756,428. Acenzia’s and Terragenx’s revenue for the year ended August 31, 2022 was $3,067,772 and $266,635, respectively.
- Net loss attributed to Novo Integrated Sciences for the year ended August 31, 2022 was $32,849,215, representing an increase of $28,387,068, or 636%, from $4,462,147 for the same period in 2021. The increase in net loss is principally due to (i) an increase in impairment of intangible assets, (ii) an increase in the amortization of debt discount, (iii) an increase in the impairment of goodwill, (iv) an increase in depreciation amortization, (v) an increase in interest expense, and (vi) an increase in overhead expenses associated with the operations of Acenzia, PRO-DIP, and Terragenx.
- On December 14, 2021, Novo Integrated issued two senior secured convertible notes payable for a total of $16,666,666 (the “$16.66m notes”) with each note having a face amount of $8,333,333. During the year ended August 31, 2022, the Company made cash payments in the aggregate amount of $4,307,555 which includes a monthly Amortization Payment amount of $4,166,667 in principal and $140,888 in interest. Subsequent to the end of fiscal year 2022, the $16.66m notes have been paid in full.
- On November 17, 2021, Terragenx, a 91% owned subsidiary of the Company, issued two convertible notes payable for a total of $1,875,000 (the “$1.875m notes”) with each note having a face amount of $937,500.
- On June 1, 2022, the Company paid the balance owed on the first of two $1.875m notes for an aggregate payment of $948,874, including all principal and interest owed.
- On June 1, 2022, the Company made an interest payment on the second of two $1.875 million convertible notes for a payment of $192,188. On June 1, 2022, the Company and the note holder agreed to extend the maturity date to November 29, 2022 with a principal amount face value of $937,500. Subsequent to the end of fiscal year 2022, the second of two $1.875m notes was paid in full.
Operational Milestones for Fiscal Year 2022:
- Acquired 91% of Terragenx and the intellectual property portfolio, in an all-share transaction priced at $3.35 per share, for the unique formulation and manufacturing capability to produce a water-soluble iodine micro-nutrient that is FDA and Health Canada approved for over-the-counter and e-commerce distribution.
- Completed Acquisition of Clinical Consultants International LLC (CCI).
- PRO-DIP® issued U.S. Patent for oral pouch delivery system technology.
- Completed acquisition of 2 multi-disciplinary clinics in Ontario Canada.
- 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 to compliment NPN issued products IoNovo GO Iodine and IoNovo Pure.
- Established a 50/50 joint venture company, MiTelemed+, with EK-Tech Solutions Inc. to operate, support, and expand access and functionality of EK-Tech’s enhanced proprietary Telehealth platform (“iTelemed”). MiTelemed+, through the iTelemed platform, allows Novo to offer the patient and the practitioner a sophisticated and enhanced telehealth interaction. Through the interface of sophisticated peripheral based diagnostic tools operated by skilled support workers in the patient’s remote location, the practitioner’s ability and comfort to provide a uniquely comprehensive evaluation, diagnosis, and treatment solution is dramatically elevated.
- NovoConnect is in limited commercialization through certain of the Company’s corporate owned clinics with expanded commercialization intended to launch in 2023.
Corporate Highlights for the Fiscal Year Ended August 31, 2022:
- Chief Medical Officer, Dr. Joseph M. Chalil, Selected as Top Physician of the Year by IAOTP for outstanding leadership, dedication, and innovation medical contributions.
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 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, advanced therapeutics, 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 NHL, 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. |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
As of August 31, 2022 and 2021 |
||||||||
|
|
August 31, |
|
|
August 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,178,687 |
|
|
$ |
8,293,162 |
|
Accounts receivable, net |
|
|
1,017,405 |
|
|
|
1,468,429 |
|
Inventory, net |
|
|
879,033 |
|
|
|
339,385 |
|
Other receivables, current portion |
|
|
1,085,335 |
|
|
|
814,157 |
|
Prepaid expenses and other current assets |
|
|
571,335 |
|
|
|
218,376 |
|
Total current assets |
|
|
5,731,795 |
|
|
|
11,133,509 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
5,800,648 |
|
|
|
6,070,291 |
|
Intangible assets, net |
|
|
18,840,619 |
|
|
|
32,029,499 |
|
Right-of-use assets, net |
|
|
2,673,934 |
|
|
|
2,543,396 |
|
Other receivables, net of current portion |
|
|
- |
|
|
|
692,738 |
|
Goodwill |
|
|
7,825,844 |
|
|
|
9,488,848 |
|
TOTAL ASSETS |
|
$ |
40,872,840 |
|
|
$ |
61,958,281 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,800,268 |
|
|
$ |
1,449,784 |
|
Accrued expenses |
|
|
1,116,125 |
|
|
|
1,129,309 |
|
Accrued interest (including amounts to related parties) |
|
|
454,189 |
|
|
|
366,280 |
|
Government loans and notes payable, current portion |
|
|
- |
|
|
|
4,485,649 |
|
Convertible notes payable, net of discount of $2,851,048 |
|
|
9,099,654 |
|
|
|
- |
|
Contingent liability |
|
|
534,595 |
|
|
|
- |
|
Due to related parties |
|
|
478,897 |
|
|
|
478,920 |
|
Finance lease liability, current portion |
|
|
8,890 |
|
|
|
23,184 |
|
Operating lease liability, current portion |
|
|
582,088 |
|
|
|
530,797 |
|
Total current liabilities |
|
|
14,074,706 |
|
|
|
8,463,923 |
|
|
|
|
|
|
|
|
|
|
Debentures, related parties |
|
|
946,250 |
|
|
|
982,205 |
|
Government loans and notes payable, net of current portion |
|
|
161,460 |
|
|
|
5,133,604 |
|
Finance lease liability, net of current portion |
|
|
12,076 |
|
|
|
16,217 |
|
Operating lease liability, net of current portion |
|
|
2,185,329 |
|
|
|
2,057,805 |
|
Deferred tax liability |
|
|
1,445,448 |
|
|
|
1,500,372 |
|
TOTAL LIABILITIES |
|
|
18,825,269 |
|
|
|
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 August 31, 2022 and August 31, 2021, respectively |
|
|
- |
|
|
|
- |
|
Common stock; $0.001 par value; 499,000,000 shares authorized; 31,180,603 and 26,610,144 shares issued and outstanding at August 31, 2022 and August 31, 2021, respectively |
|
|
31,181 |
|
|
|
26,610 |
|
Additional paid-in capital |
|
|
66,056,824 |
|
|
|
54,579,396 |
|
Common stock to be issued (4,149,633 and 3,622,199 shares at August 31, 2022 and August 31, 2021) |
|
|
9,474,807 |
|
|
|
9,236,607 |
|
Other comprehensive income |
|
|
560,836 |
|
|
|
991,077 |
|
Accumulated deficit |
|
|
(53,818,489 |
) |
|
|
(20,969,274 |
) |
Total Novo Integrated Sciences, Inc. stockholders’ equity |
|
|
22,305,159 |
|
|
|
43,864,416 |
|
Noncontrolling interest |
|
|
(257,588 |
) |
|
|
(60,261 |
) |
Total stockholders’ equity |
|
|
22,047,571 |
|
|
|
43,804,155 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
40,872,840 |
|
|
$ |
61,958,281 |
|
| NOVO INTEGRATED SCIENCES, INC. | ||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||
For the Years Ended August 31, 2022 and 2021 |
||||||||
|
|
Years Ended |
||||||
|
|
August 31, |
|
August 31, |
||||
|
|
2022 |
|
|
2021 |
|
||
|
|
|
|
|
||||
Revenues |
|
$ |
11,737,937 |
|
|
$ |
9,305,255 |
|
|
|
|
|
|
|
|
||
Cost of revenues |
|
|
6,938,699 |
|
|
|
5,482,257 |
|
|
|
|
|
|
|
|
||
Gross profit |
|
|
4,799,238 |
|
|
|
3,822,998 |
|
|
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
|
||
Selling expenses |
|
|
20,702 |
|
|
|
7,525 |
|
General and administrative expenses |
|
|
14,364,639 |
|
|
|
8,089,641 |
|
Impairment of assets |
|
|
14,083,531 |
|
|
|
- |
|
Goodwill impairment |
|
|
1,357,043 |
|
|
|
99,351 |
|
Total operating expenses |
|
|
29,825,915 |
|
|
|
8,196,517 |
|
|
|
|
|
|
|
|
||
Loss from operations |
|
|
(25,026,677 |
) |
|
|
(4,373,519 |
) |
|
|
|
|
|
|
|
||
Non-operating income (expense) |
|
|
|
|
|
|
||
Interest income |
|
|
169,088 |
|
|
|
45,687 |
|
Interest expense |
|
|
(1,594,275 |
) |
|
|
(165,003 |
) |
Other income |
|
|
- |
|
|
|
21,900 |
|
Amortization of debt discount |
|
|
(5,973,973 |
) |
|
|
- |
|
Foreign currency transaction losses |
|
|
(641,643 |
) |
|
|
- |
|
Total other income (expense) |
|
|
(8,040,803 |
) |
|
|
(97,416 |
) |
|
|
|
|
|
|
|
||
Loss before income taxes |
|
|
(33,067,480 |
) |
|
|
(4,470,935 |
) |
|
|
|
|
|
|
|
||
Income tax expense |
|
|
(22,302 |
) |
|
|
- |
|
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(33,045,178 |
) |
|
$ |
(4,470,935 |
) |
|
|
|
|
|
|
|
||
Net loss attributed to noncontrolling interest |
|
|
(195,963 |
) |
|
|
(8,788 |
) |
|
|
|
|
|
|
|
||
Net loss attributed to Novo Integrated Sciences, Inc. |
|
$ |
(32,849,215 |
) |
|
$ |
(4,462,147 |
) |
|
|
|
|
|
|
|
||
Comprehensive loss: |
|
|
|
|
|
|
||
Net loss |
|
|
(33,045,178 |
) |
|
|
(4,470,935 |
) |
Foreign currency translation loss |
|
|
(431,605 |
) |
|
|
(210,233 |
) |
Comprehensive loss: |
|
$ |
(33,476,783 |
) |
|
$ |
(4,681,168 |
) |
|
|
|
|
|
|
|
||
Weighted average common shares outstanding - basic and diluted |
|
|
29,122,621 |
|
|
|
24,774,454 |
|
|
|
|
|
|
|
|
||
Net loss per common share - basic and diluted |
|
$ |
(1.13 |
) |
|
$ |
(0.18 |
|
| NOVO INTEGRATED SCIENCES, INC. | ||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||||||||||||
For the Years Ended August 31, 2022 and 2021 |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 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, net of offering costs |
|
|
2,409,955 |
|
|
2,410 |
|
|
7,325,170 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,327,580 |
|
|
|
- |
|
|
|
7,327,580 |
|
Common stock for services |
|
|
295,700 |
|
|
295 |
|
|
874,878 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
875,173 |
|
|
|
- |
|
|
|
875,173 |
|
Common stock issued for acquisition |
|
|
189,796 |
|
|
190 |
|
|
430,647 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
430,837 |
|
|
|
- |
|
|
|
430,837 |
|
Common stock issued for intellectual property |
|
|
240,000 |
|
|
240 |
|
|
875,760 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
876,000 |
|
|
|
- |
|
|
|
876,000 |
|
Common stock to be issued for purchase of Acenzia, Inc. |
|
|
- |
|
|
- |
|
|
- |
|
|
|
9,236,607 |
|
|
|
- |
|
|
|
- |
|
|
|
9,236,607 |
|
|
|
- |
|
|
|
9,236,607 |
|
Exercise of stock options |
|
|
7,500 |
|
|
8 |
|
|
11,992 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
12,000 |
|
|
|
- |
|
|
|
12,000 |
|
Fair value of stock options |
|
|
- |
|
|
- |
|
|
155,496 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
155,496 |
|
|
|
- |
|
|
|
155,496 |
|
Rounding due to stock split |
|
|
957 |
|
|
1 |
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Foreign currency translation loss |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(208,619 |
) |
|
|
- |
|
|
|
(208,619 |
) |
|
|
(1,614 |
) |
|
|
(210,233 |
) |
Net loss |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,462,147 |
) |
|
|
(4,462,147 |
) |
|
|
(8,788 |
) |
|
|
(4,470,935 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
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 |
|
|
750,000 |
|
|
750 |
|
|
1,329,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,329,750 |
|
|
|
- |
|
|
|
1,329,750 |
|
Common stock issued as collateral and held in escrow |
|
|
2,000,000 |
|
|
2,000 |
|
|
(2,000 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common stock for conversion of convertible notes |
|
|
636,501 |
|
|
637 |
|
|
1,272,357 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,272,994 |
|
|
|
- |
|
|
|
1,272,994 |
|
Common stock issued for acquisitions |
|
|
800,000 |
|
|
800 |
|
|
1,703,200 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,704,000 |
|
|
|
- |
|
|
|
1,704,000 |
|
Common stock to be issued for acquisitions |
|
|
- |
|
|
- |
|
|
- |
|
|
|
1,433,475 |
|
|
|
- |
|
|
|
- |
|
|
|
1,433,475 |
|
|
|
- |
|
|
|
1,433,475 |
|
Value of warrants issued with convertible notes |
|
|
- |
|
|
- |
|
|
5,553,290 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,553,290 |
|
|
|
- |
|
|
|
5,553,290 |
|
Issuance of common stock to be issued |
|
|
383,958 |
|
|
384 |
|
|
1,194,891 |
|
|
|
(1,195,275 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Fair value of stock options |
|
|
- |
|
|
- |
|
|
426,690 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
426,690 |
|
|
|
- |
|
|
|
426,690 |
|
Foreign currency translation loss |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
(430,241 |
) |
|
|
- |
|
|
|
(430,241 |
) |
|
|
(1,364 |
) |
|
|
(431,605 |
) |
Net loss |
|
|
- |
|
|
- |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(32,849,215 |
) |
|
|
(32,849,215 |
) |
|
|
(195,963 |
) |
|
|
(33,045,178 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, August 31, 2022 |
|
|
31,180,603 |
|
$ |
31,181 |
|
$ |
66,056,824 |
|
|
$ |
9,474,807 |
|
|
$ |
560,836 |
|
|
$ |
(53,818,489 |
) |
|
$ |
22,305,159 |
|
|
$ |
(257,588 |
) |
|
$ |
22,047,571 |
|
NOVO INTEGRATED SCIENCES, INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
For the Years Ended August 31, 2022 and 2021 |
||||||||
|
|
|
|
|
||||
|
|
Years Ended |
||||||
|
|
August 31, |
|
August 31, |
||||
|
|
2022 |
|
|
2021 |
|
||
|
|
|
|
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(33,045,178 |
) |
|
$ |
(4,470,935 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
3,019,253 |
|
|
|
1,724,122 |
|
Fair value of vested stock options |
|
|
426,690 |
|
|
|
155,496 |
|
Common stock issued for services |
|
|
1,329,750 |
|
|
|
875,173 |
|
Operating lease expense |
|
|
852,580 |
|
|
|
642,991 |
|
Amortization of debt discount |
|
|
5,973,973 |
|
|
|
- |
|
Foreign currency transaction losses |
|
|
641,643 |
|
|
|
- |
|
Gain on forgiveness of debt |
|
|
- |
|
|
|
(21,900 |
) |
Impairment of assets |
|
|
14,083,531 |
|
|
|
- |
|
Other receivables write-off |
|
|
299,672 |
|
|
|
- |
|
Goodwill impairment |
|
|
1,357,043 |
|
|
|
99,351 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
457,006 |
|
|
|
1,103,800 |
|
Inventory |
|
|
(527,397 |
) |
|
|
(147,814 |
) |
Prepaid expenses and other current assets |
|
|
(369,647 |
) |
|
|
(43,194 |
) |
Accounts payable |
|
|
283,234 |
|
|
|
(45,228 |
) |
Accrued expenses |
|
|
38,743 |
|
|
|
(287,034 |
) |
Accrued interest |
|
|
101,353 |
|
|
|
9,015 |
|
Operating lease liability |
|
|
(806,394 |
) |
|
|
(618,645 |
) |
Net cash used in operating activities |
|
|
(5,884,145 |
) |
|
|
(1,024,802 |
) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(190,168 |
) |
|
|
(255,949 |
) |
Cash paid for acquisition |
|
|
- |
|
|
|
(10,000 |
) |
Cash acquired with acquisition |
|
|
57,489 |
|
|
|
3,738,171 |
|
Amounts loaned for other receivables |
|
|
- |
|
|
|
(473,100 |
) |
Collection of other receivable |
|
|
296,138 |
|
|
|
- |
|
Net cash provided by investing activities |
|
|
163,459 |
|
|
|
2,999,122 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Receipts from (repayments to) related parties |
|
|
16,600 |
|
|
|
(246,327 |
) |
Repayments of notes payable |
|
|
(10,591,115 |
) |
|
|
(2,767,519 |
) |
Repayments of finance leases |
|
|
(18,435 |
) |
|
|
(8,872 |
) |
Proceeds from issuance of convertible notes |
|
|
15,270,000 |
|
|
|
- |
|
Repayment of convertible notes |
|
|
(5,104,167 |
) |
|
|
- |
|
Proceeds from the sale of common stock, net of offering costs |
|
|
- |
|
|
|
7,327,580 |
|
Proceeds from exercise of stock options |
|
|
- |
|
|
|
12,000 |
|
Net cash (used in) provided by financing activities |
|
|
(427,117 |
) |
|
|
4,316,862 |
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(33,328 |
) |
|
|
(65,738 |
) |
|
|
|
|
|
|
|
||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |
|
|
(6,114,475 |
) |
|
|
6,225,444 |
|
|
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
|
|
8,293,162 |
|
|
|
2,067,718 |
|
|
|
|
|
|
|
|
||
CASH AND CASH EQUIVALENTS, END OF YEAR |
|
$ |
2,178,687 |
|
|
$ |
8,293,162 |
|
|
|
|
|
|
|
|
||
CASH PAID FOR: |
|
|
|
|
|
|
||
Interest |
|
$ |
1,502,819 |
|
|
$ |
144,987 |
|
Income taxes |
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Common stock issued for intangible assets |
|
$ |
- |
|
|
$ |
876,000 |
|
Common stock issued for convertible debt |
|
$ |
1,272,994 |
|
|
$ |
- |
|
Common stock issued for acquisition |
|
$ |
1,704,000 |
|
|
$ |
430,837 |
|
Warrants issued with convertible notes |
|
$ |
5,553,290 |
|
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230403005889/en/
Contacts
Chris David, COO-President
Novo Integrated Sciences, Inc.
chris.david@novointegrated.com
(888) 512-1195
