Novo Integrated Sciences Reports Record Revenue of $13.8 million in Fiscal 2022 Third Quarter

Revenue Increased 382% Sequentially and 481% Year-to-Year for the Fiscal 2022 Third Quarter

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 for services and product innovation, today reported its financial results for the fiscal third quarter ended May 31, 2022.

Robert Mattacchione, Novo’s CEO and Board Chairman, stated, “Novo achieved record revenue in the fiscal 2022 third quarter primarily driven by an increase in both proprietary and outsourced product sales. We believe that subsequent quarters will illustrate a further acceleration of market penetration for our product solutions, particularly when combined with the synergistic positive effect of both our existing and projected expansion of the Company’s service-oriented business units. The three pillars of the Company’s operating model are gaining traction particularly as we expand our line of product solutions and complete our acquisitional objectives.”

Financial Highlights for the Period Ended May 31, 2022:

  • Cash and cash equivalents were $12.6 million, total assets were $71.7 million, total liabilities were $27.3 million, and stockholders’ equity was $44.4 million.
  • Revenues were $13,851,883, representing an increase of $11,470,909, or 481.8%, from $2,380,974 for the same period in 2021 principally due to an increase in outsourced product sales and IoNovo Iodine which resulted in an increase in revenue of $9,730,236. Acenzia’s and Terragenx’s revenue for the three months ended May 31, 2022 was $645,588 and $1,275,690, respectively. Revenue from our healthcare services decreased by 7.6% when comparing the revenue for the three months ended May 31, 2022 to the same period in 2021 primarily due to a COVID-19 surge in Ontario province Canada and COVID-19 staffing related shortages limiting clinic and eldercare patient-practitioner direct personal interaction.
  • Operating costs for the three months ended May 31, 2022 were $3,611,628, representing an increase of $1,929,198, or 114.7%, from $1,682,430 for the same period in 2021. The increase in operating costs is principally due to the increase in overhead expenses associated with the operations of Acenzia, PRO-DIP, and Terragenx which was approximately $952,000 for the three months ended May 31, 2022. In subsequent quarters, this increase in overhead expenses associated with Acenzia, PRO-DIP, and Terragenx is projected to decrease as the Company integrates and consolidates operations. In addition, common stock issued for services increased by $276,828 for the three months ended May 31, 2022 compared to the same period in 2021. Also, an increase in legal and professional fees contributed to the increase in operating expenses.
  • Net loss attributed to Novo Integrated Sciences, Inc. for the three months ended May 31, 2022 was $3,810,054, representing an increase of $3,398,867, or 827%, from $411,187 for the same period in 2021. The increase in net loss is principally due to (i) an increase in overhead expenses associated with the operations of Acenzia, PRO-DIP, and Terragenx which was approximately $952,000 for the three months ended May 31, 2022, (ii) common stock issued for services of $314,000; (iii) an increase in interest expense and (iv) an increase in amortization of debt discounts.

Operational Milestones for the Fiscal 2022 Second Quarter:

  • Chief Medical Officer, Dr. Joseph M. Chalil, Selected as Top Physician of the Year by IAOTP for outstanding leadership, dedication, and innovation medical contributions.
  • 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.

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 multiple patient and consumer touchpoints for 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, diagnostic and therapeutic solutions, 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 Novo Healthnet Limited, Novo’s wholly owned subsidiary, 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.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of May 31, 2022 (unaudited) and August 31, 2021

 

 

 

 

 

 

 

 

May 31,

 

 

August 31,

 

 

 

2022

 

 

2021

 

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

12,677,446

 

 

$

8,293,162

 

Accounts receivable, net

 

 

5,166,239

 

 

 

1,468,429

 

Inventory, net

 

 

645,063

 

 

 

339,385

 

Other receivables, current portion

 

 

1,209,137

 

 

 

814,157

 

Prepaid expenses and other current assets

 

 

380,800

 

 

 

218,376

 

Total current assets

 

 

20,078,685

 

 

 

11,133,509

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

5,931,683

 

 

 

6,070,291

 

Intangible assets, net

 

 

32,192,858

 

 

 

32,029,499

 

Right-of-use assets, net

 

 

2,222,970

 

 

 

2,543,396

 

Other receivables, net of current portion

 

 

-

 

 

 

692,738

 

Goodwill

 

 

11,366,618

 

 

 

9,488,848

 

TOTAL ASSETS

 

$

71,792,814

 

 

$

61,958,281

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,621,719

 

 

$

1,449,784

 

Accrued expenses

 

 

1,243,792

 

 

 

1,129,309

 

Accrued interest (including amounts to related parties)

 

 

961,823

 

 

 

366,280

 

Government loans and notes payable, current portion

 

 

5,260,056

 

 

 

4,485,649

 

Convertible notes payable, net of discount of $0

 

 

1,875,000

 

 

 

-

 

Contingent liability

 

 

750,860

 

 

 

-

 

Due to related parties

 

 

456,528

 

 

 

478,920

 

Finance lease liability, current portion

 

 

15,982

 

 

 

23,184

 

Operating lease liability, current portion

 

 

544,690

 

 

 

530,797

 

Total current liabilities

 

 

12,730,450

 

 

 

8,463,923

 

 

 

 

 

 

 

 

 

 

Debentures, related parties

 

 

981,337

 

 

 

982,205

 

Notes payable, net of current portion

 

 

158,645

 

 

 

5,133,604

 

Convertible notes payable, net of discount of $5,170,205

 

 

10,252,017

 

 

 

-

 

Finance lease liability, net of current portion

 

 

8,563

 

 

 

16,217

 

Operating lease liability, net of current portion

 

 

1,734,790

 

 

 

2,057,805

 

Deferred tax liability

 

 

1,499,045

 

 

 

1,500,372

 

TOTAL LIABILITIES

 

 

27,364,847

 

 

 

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 May 31, 2022 and August 31, 2021, respectively

 

 

 

 

 

 

 

 

Common stock; $0.001 par value; 499,000,000 shares authorized; 30,659,073 and 26,610,144 shares issued and outstanding at May 31, 2022 and August 31, 2021, respectively

 

 

30,659

 

 

 

26,610

 

Additional paid-in capital

 

 

64,620,878

 

 

 

54,579,396

 

Common stock to be issued (4,308,591 and 3,622,199 shares at May 31, 2022 and August 31, 2021)

 

 

10,096,332

 

 

 

9,236,607

 

Other comprehensive income

 

 

1,015,993

 

 

 

991,077

 

Accumulated deficit

 

 

(31,391,082

)

 

 

(20,969,274

)

Total Novo Integrated Sciences, Inc. stockholders’ equity

 

 

44,372,780

 

 

 

43,864,416

 

Noncontrolling interest

 

 

55,187

 

 

 

(60,261

)

Total stockholders’ equity

 

 

44,427,967

 

 

 

43,804,155

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

71,792,814

 

 

$

61,958,281

 

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Three and Nine Months Ended May 31, 2022 and 2021 (unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

May 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

13,851,883

 

 

$

2,380,974

 

 

$

19,883,033

 

 

$

6,612,374

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

11,443,001

 

 

 

1,100,516

 

 

 

14,991,331

 

 

 

3,769,020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

2,408,882

 

 

 

1,280,458

 

 

 

4,891,702

 

 

 

2,843,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

 

9,802

 

 

 

2,381

 

 

 

36,340

 

 

 

4,226

 

General and administrative expenses

 

 

3,601,826

 

 

 

1,680,049

 

 

 

9,542,443

 

 

 

5,324,768

 

Total operating expenses

 

 

3,611,628

 

 

 

1,682,430

 

 

 

9,578,783

 

 

 

5,328,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(1,202,746

)

 

 

(401,972

)

 

 

(4,687,081

)

 

 

(2,485,640

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

8,355

 

 

 

8,402

 

 

 

25,233

 

 

 

25,265

 

Interest expense

 

 

(513,398

)

 

 

(21,701

)

 

 

(1,808,310

)

 

 

(68,590

)

Amortization of debt discount

 

 

(2,133,890

)

 

 

-

 

 

 

(3,654,752

)

 

 

-

 

Foreign currency transaction gains (losses)

 

 

97,654

 

 

 

-

 

 

 

(303,714

)

 

 

-

 

Total other income (expense)

 

 

(2,541,279

)

 

 

(13,299

)

 

 

(5,741,543

)

 

 

(43,325

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(3,744,025

)

 

 

(415,271

)

 

 

(10,428,624

)

 

 

(2,528,965

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,744,025

)

 

$

(415,271

)

 

$

(10,428,624

)

 

$

(2,528,965

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributed to noncontrolling interest

 

 

66,029

 

 

 

(4,084

)

 

 

(6,816

)

 

 

(6,438

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributed to Novo Integrated Sciences, Inc.

 

$

(3,810,054

)

 

$

(411,187

)

 

$

(10,421,808

)

 

$

(2,522,527

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(3,744,025

)

 

 

(415,271

)

 

 

(10,428,624

)

 

 

(2,528,965

)

Foreign currency translation gain

 

 

13,711

 

 

 

123,521

 

 

 

24,916

 

 

 

176,349

 

Comprehensive loss:

 

$

(3,730,314

)

 

$

(291,750

)

 

$

(10,403,708

)

 

$

(2,352,616

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

 

29,817,999

 

 

 

25,298,866

 

 

 

28,498,414

 

 

 

24,192,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

$

(0.13

)

 

$

(0.02

)

 

$

(0.37

)

 

$

(0.10

)

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Nine Months Ended May 31, 2022 and 2021 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 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

 

 

35,000

 

 

 

35

 

 

 

64,715

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

64,750

 

 

 

-

 

 

 

64,750

 

Common stock issued as collateral and held in escrow

 

 

2,000,000

 

 

 

2,000

 

 

 

(2,000

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock to be issued for purchase of Terragenx

 

 

-

 

 

 

-

 

 

 

-

 

 

 

983,925

 

 

 

-

 

 

 

-

 

 

 

983,925

 

 

 

97,311

 

 

 

1,081,236

 

Common stock to be issued for purchase of Mullin assets

 

 

-

 

 

 

-

 

 

 

-

 

 

 

188,925

 

 

 

-

 

 

 

-

 

 

 

188,925

 

 

 

-

 

 

 

188,925

 

Value of warrants issued with convertible notes

 

 

-

 

 

 

-

 

 

 

295,824

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

295,824

 

 

 

-

 

 

 

295,824

 

Fair value of stock options

 

 

-

 

 

 

-

 

 

 

154,135

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

154,135

 

 

 

-

 

 

 

154,135

 

Foreign currency translation loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(103,533

)

 

 

-

 

 

 

(103,533

)

 

 

(855

)

 

 

(104,388

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,806,587

)

 

 

(1,806,587

)

 

 

(9,808

)

 

 

(1,816,395

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, November 30, 2021

 

 

28,645,144

 

 

 

28,645

 

 

 

55,092,070

 

 

 

10,409,457

 

 

 

887,544

 

 

 

(22,775,861

)

 

 

43,641,855

 

 

 

26,387

 

 

 

43,668,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for services

 

 

240,000

 

 

 

240

 

 

 

297,760

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

298,000

 

 

 

-

 

 

 

298,000

 

Value of warrants issued with convertible notes

 

 

-

 

 

 

-

 

 

 

5,257,466

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,257,466

 

 

 

-

 

 

 

5,257,466

 

Fair value of stock options

 

 

-

 

 

 

-

 

 

 

44,427

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

44,427

 

 

 

-

 

 

 

44,427

 

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

114,738

 

 

 

-

 

 

 

114,738

 

 

 

355

 

 

 

115,093

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,805,167

)

 

 

(4,805,167

)

 

 

(63,037

)

 

 

(4,868,204

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, February 28, 2022

 

 

28,885,144

 

 

 

28,885

 

 

 

60,691,723

 

 

 

10,409,457

 

 

 

1,002,282

 

 

 

(27,581,028

)

 

 

44,551,319

 

 

 

(36,295

)

 

 

44,515,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for services

 

 

125,000

 

 

 

125

 

 

 

313,875

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

314,000

 

 

 

-

 

 

 

314,000

 

Common stock for conversion of convertible notes

 

 

623,929

 

 

 

624

 

 

 

1,247,225

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,247,849

 

 

 

-

 

 

 

1,247,849

 

Common stock for acquisition

 

 

800,000

 

 

 

800

 

 

 

1,703,200

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,704,000

 

 

 

-

 

 

 

1,704,000

 

Common stock to be issued for acquisitions

 

 

-

 

 

 

-

 

 

 

-

 

 

 

260,625

 

 

 

-

 

 

 

-

 

 

 

260,625

 

 

 

25,402

 

 

 

286,027

 

Issuance of common stock to be issued

 

 

225,000

 

 

 

225

 

 

 

573,525

 

 

 

(573,750

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Fair value of stock options

 

 

-

 

 

 

-

 

 

 

91,330

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

91,330

 

 

 

-

 

 

 

91,330

 

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

13,711

 

 

 

-

 

 

 

13,711

 

 

 

51

 

 

 

13,762

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,810,054

)

 

 

(3,810,054

)

 

 

66,029

 

 

 

(3,744,025

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, May 31, 2022

 

 

30,659,073

 

 

$

30,659

 

 

$

64,620,878

 

 

$

10,096,332

 

 

$

1,015,993

 

 

$

(31,391,082

)

 

$

44,372,780

 

 

$

55,187

 

 

$

44,427,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

21,905

 

 

 

22

 

 

 

91,978

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

92,000

 

 

 

-

 

 

 

92,000

 

Common stock issued for services

 

 

65,000

 

 

 

65

 

 

 

247,935

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

248,000

 

 

 

-

 

 

 

248,000

 

Foreign currency translation gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,596

 

 

 

-

 

 

 

10,596

 

 

 

(225

)

 

 

10,371

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(771,470

)

 

 

(771,470

)

 

 

(1,633

)

 

 

(773,103

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, November 30, 2020

 

 

23,553,141

 

 

 

23,553

 

 

 

45,245,367

 

 

 

-

 

 

 

1,210,292

 

 

 

(17,278,597

)

 

 

29,200,615

 

 

 

(51,717

)

 

 

29,148,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

7,500

 

 

 

8

 

 

 

11,992

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

12,000

 

 

 

-

 

 

 

12,000

 

Common stock issued for intellectual property

 

 

240,000

 

 

 

240

 

 

 

875,760

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

876,000

 

 

 

-

 

 

 

876,000

 

Common stock to be issued for services rendered

 

 

-

 

 

 

-

 

 

 

-

 

 

 

375,000

 

 

 

-

 

 

 

-

 

 

 

375,000

 

 

 

-

 

 

 

375,000

 

Rounding due to stock split

 

 

957

 

 

 

1

 

 

 

(1

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Fair value of vested stock options

 

 

-

 

 

 

-

 

 

 

22,215

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

22,215

 

 

 

-

 

 

 

22,215

 

Foreign currency translation

gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

42,232

 

 

 

-

 

 

 

42,232

 

 

 

(965

)

 

 

41,267

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,339,870

)

 

 

(1,339,870

)

 

 

(721

)

 

 

(1,340,591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, February 28, 2021

 

 

23,801,598

 

 

 

23,802

 

 

 

46,155,333

 

 

 

375,000

 

 

 

1,252,524

 

 

 

(18,618,467

)

 

 

29,188,192

 

 

 

(53,403

)

 

 

29,134,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for services

 

 

100,000

 

 

 

100

 

 

 

374,900

 

 

 

(375,000

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Common stock issued for acquisition

 

 

189,796

 

 

 

190

 

 

 

430,647

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

430,837

 

 

 

-

 

 

 

430,837

 

Common stock issued for services rendered

 

 

9,913

 

 

 

9

 

 

 

37,163

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37,172

 

 

 

-

 

 

 

37,172

 

Common stock issued for cash, net of offering costs

 

 

2,388,050

 

 

 

2,388

 

 

 

7,233,192

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,235,580

 

 

 

-

 

 

 

7,235,580

 

Fair value of vested stock options

 

 

-

 

 

 

-

 

 

 

66,640

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

66,640

 

 

 

-

 

 

 

66,640

 

Foreign currency translation

gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

123,521

 

 

 

-

 

 

 

123,521

 

 

 

(3,143

)

 

 

120,378

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(411,187

)

 

 

(411,187

)

 

 

(4,084

)

 

 

(415,271

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, May 31, 2021

 

 

26,489,357

 

 

$

26,489

 

 

$

54,297,875

 

 

$

-

 

 

$

1,376,045

 

 

$

(19,029,654

)

 

$

36,670,755

 

 

$

(60,630

)

 

$

36,610,125

 

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended May 31, 2022 and 2021 (unaudited)

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

May 31,

 

 

May 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(10,428,624

)

 

$

(2,528,965

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,349,434

 

 

 

1,118,925

 

Fair value of vested stock options

 

 

289,892

 

 

 

88,855

 

Common stock issued for services

 

 

676,750

 

 

 

660,172

 

Operating lease expense

 

 

418,188

 

 

 

467,864

 

Amortization of debt discount

 

 

3,654,752

 

 

 

-

 

Foreign currency transaction losses

 

 

303,714

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(3,650,069

)

 

 

543,213

 

Inventory

 

 

(263,539

)

 

 

-

 

Prepaid expenses and other current assets

 

 

(150,632

)

 

 

(143,590

)

Accounts payable

 

 

117,056

 

 

 

(97,659

)

Accrued expenses

 

 

(68,871

)

 

 

64,513

 

Accrued interest

 

 

598,904

 

 

 

7,455

 

Operating lease liability

 

 

(406,862

)

 

 

(460,063

)

Net cash used in operating activities

 

 

(6,559,907

)

 

 

(279,280

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(190,973

)

 

 

(201,369

)

Cash acquired from (paid for) acquisition

 

 

57,489

 

 

 

(10,000

)

Payment on other receivable

 

 

296,138

 

 

 

-

 

Amounts loaned for other receivables

 

 

-

 

 

 

(470,040

)

Net cash provided by (used in) investing activities

 

 

162,654

 

 

 

(681,409

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repayments to related parties

 

 

(21,932

)

 

 

(177,534

)

Repayments of finance leases

 

 

(14,797

)

 

 

-

 

Repayments of notes payable

 

 

(4,430,794

)

 

 

-

 

Proceeds from the sale of common stock, net of offering costs

 

 

-

 

 

 

7,327,580

 

Proceeds from exercise of stock options

 

 

-

 

 

 

12,000

 

Proceeds from issuance of convertible notes, net

 

 

15,270,000

 

 

 

-

 

Net cash provided by financing activities

 

 

10,802,477

 

 

 

7,162,046

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(20,940

)

 

 

97,970

 

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

4,384,284

 

 

 

6,299,327

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

8,293,162

 

 

 

2,067,718

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

12,677,446

 

 

$

8,367,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH PAID FOR:

 

 

 

 

 

 

 

 

Interest

 

$

1,294,912

 

 

$

33,183

 

Income taxes

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Common stock to be issued for intangible assets

 

$

188,925

 

 

$

876,000

 

Common stock to be issued for acquisitions

 

$

1,244,550

 

 

$

-

 

Common stock issued for acquisition

 

$

1,704,000

 

 

$

430,837

 

Conversion of convertible notes payable and accrued interest to common stock

 

$

1,247,849

 

 

$

-

 

 

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