Novo Integrated Sciences Reports Fiscal Year 2024 Second Quarter Financial Results

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 second fiscal quarter ended February 29, 2024.

Robert Mattacchione, Novo’s CEO and Board Chairman, stated, “The Company’s fiscal year 2024 second quarter period emphasized maximizing operational efficiencies pointed towards future cost savings and margin improvement. The Company continues to work with certain prospective financial partners to close previously announced non-traditional financing opportunities to raise foundational capital with repayment terms necessary to support and accelerate the further growth of Novo’s three-pillar business model. The Company remains committed to the commercialization of its proprietary product offerings and the expansion and delivery of its essential services and solutions for how non-catastrophic healthcare is delivered both now and in the future.”

Financial Highlights for the three-month period ended February 29, 2024:

• Cash and cash equivalents were $651,747, total assets were $34,949,271, total liabilities were $13,058,987, and stockholders’ equity was $21,890,284.
• Revenues were $3,170,592, representing an increase of $614,083, or 24%, from $2,556,509 for the three months ended February 28, 2023. The increase in revenue is principally due to an increase in product sales. Acenzia’s and Terragenx’s revenue for the three months ended February 29, 2024 were $884,396 and $103,399, respectively. Revenue from our healthcare services increased by 3.4% when comparing the revenue for the three months ended February 29, 2024 to the three months ended February 28, 2023.
• Operating costs were $2,863,854, representing an increase of $106,141, or 4%, from $2,757,713 for the three months ended February 28, 2023. The increase in operating costs was principally due to higher fair value of stock options issued during the three months.
• Net loss attributed to the Company for the three months ended February 29, 2024 was $2,746,128, representing a decrease of $1,875,227, or 41%, from $4,621,355 for the three months ended February 28, 2023. The decrease in net loss was principally due to the increase in gross profit and lower amount of other expenses.
• On December 21, 2023, the total principal and interest of $449,535 owed on the $445,000 Mast Hill Fund, LP promissory note, dated June 20, 2023, was converted to 457,128 shares of the Company’s common stock and paid in full.

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.

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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 February 29, 2024 (unaudited) and August 31, 2023

 

 

 

 

 

 

 

 

 

February 29,

 

 

August 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

651,747

 

 

$

416,323

 

Accounts receivable, net

 

 

2,153,914

 

 

 

1,467,028

 

Inventory, net

 

 

947,351

 

 

 

1,106,983

 

Other receivables

 

 

1,048,596

 

 

 

1,051,584

 

Prepaid expenses and other current assets

 

 

217,619

 

 

 

346,171

 

Total current assets

 

 

5,019,227

 

 

 

4,388,089

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

5,246,241

 

 

 

5,390,038

 

Intangible assets, net

 

 

15,205,967

 

 

 

16,218,539

 

Right-of-use assets, net

 

 

1,916,900

 

 

 

1,983,898

 

Goodwill

 

 

7,560,936

 

 

 

7,582,483

 

TOTAL ASSETS

 

$

34,949,271

 

 

$

35,563,047

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

2,173,667

 

 

$

3,513,842

 

Accrued expenses

 

 

1,328,828

 

 

 

1,233,549

 

Accrued interest (including amounts to related parties)

 

 

477,480

 

 

 

382,666

 

Government loans and notes payable, current portion

 

 

93,488

 

 

 

277,405

 

Convertible notes payable, net of discount of $2,004,245

 

 

1,773,533

 

 

 

558,668

 

Derivative liability

 

 

2,312,921

 

 

 

–

 

Contingent liability

 

 

27,756

 

 

 

61,767

 

Debentures, related parties

 

 

914,219

 

 

 

916,824

 

Due to related parties

 

 

434,039

 

 

 

533,001

 

Finance lease liability

 

 

5,788

 

 

 

11,744

 

Operating lease liability, current portion

 

 

417,342

 

 

 

415,392

 

Total current liabilities

 

 

9,959,061

 

 

 

7,904,858

 

 

 

 

 

 

 

 

 

 

Government loans and notes payable, net of current portion

 

 

64,016

 

 

 

65,038

 

Operating lease liability, net of current portion

 

 

1,639,391

 

 

 

1,693,577

 

Deferred tax liability

 

 

1,396,519

 

 

 

1,400,499

 

TOTAL LIABILITIES

 

 

13,058,987

 

 

 

11,063,972

 

 

 

 

 

 

 

 

 

 

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 February 29, 2024 and August 31, 2023, respectively

 

 

–

 

 

 

–

 

Common stock; $0.001 par value; 499,000,000 shares authorized; 17,748,320 and 15,759,325 shares issued and outstanding at February 29, 2024 and August 31, 2023, respectively

 

 

17,749

 

 

 

15,760

 

Additional paid-in capital

 

 

96,082,626

 

 

 

90,973,316

 

Common stock to be issued (17,375 and 91,138 shares at February 29, 2024 and August 31, 2023)

 

 

44,443

 

 

 

1,217,293

 

Other comprehensive gain (loss)

 

 

503,381

 

 

 

(357,383

)

Accumulated deficit

 

 

(74,459,512

)

 

 

(67,033,041

)

Total Novo Integrated Sciences, Inc. stockholders’ equity

 

 

22,188,687

 

 

 

24,815,945

 

Noncontrolling interest

 

 

(298,403

)

 

 

(316,870

)

Total stockholders’ equity

 

 

21,890,284

 

 

 

24,499,075

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

34,949,271

 

 

$

35,563,047

 

* The condensed consolidated balance sheets’ common stock amounts have been retroactively adjusted to account for the Company’s 1:10 reverse stock split, effective November 7, 2023.

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Three and Six Months Ended February 29, 2024 and February 28, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

February 29,

 

 

February 28,

 

 

February 29,

 

 

February 28,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,170,592

 

 

$

2,556,509

 

 

$

7,061,810

 

 

$

5,975,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

1,846,506

 

 

 

1,585,606

 

 

 

3,793,706

 

 

 

3,265,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,324,086

 

 

 

970,903

 

 

 

3,268,104

 

 

 

2,710,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

 

2,590

 

 

 

707

 

 

 

12,176

 

 

 

8,039

 

General and administrative expenses

 

 

2,861,264

 

 

 

2,757,006

 

 

 

8,113,333

 

 

 

6,731,167

 

Total operating expenses

 

 

2,863,854

 

 

 

2,757,713

 

 

 

8,125,509

 

 

 

6,739,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(1,539,768

)

 

 

(1,786,810

)

 

 

(4,857,405

)

 

 

(4,028,770

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

2,477

 

 

 

2,243

 

 

 

4,696

 

 

 

4,524

 

Interest expense

 

 

(138,684

)

 

 

(123,866

)

 

 

(282,058

)

 

 

(291,109

)

Other expense

 

 

(308,763

)

 

 

—

 

 

 

(960,937

)

 

 

—

 

Change in fair value of derivative liability

 

 

373,339

 

 

 

—

 

 

 

958,868

 

 

 

—

 

Amortization of debt discount

 

 

(1,114,573

)

 

 

(2,740,349

)

 

 

(2,190,501

)

 

 

(4,230,862

)

Foreign currency transaction (loss) gain

 

 

(19,588

)

 

 

3,620

 

 

 

(78,946

)

 

 

(35,681

)

Total other expense

 

 

(1,205,792

)

 

 

(2,858,352

)

 

 

(2,548,878

)

 

 

(4,553,128

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(2,745,560

)

 

 

(4,645,162

)

 

 

(7,406,283

)

 

 

(8,581,898

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(2,745,560

)

 

$

(4,645,162

)

 

$

(7,406,283

)

 

$

(8,581,898

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributed to noncontrolling interest

 

 

568

 

 

 

(23,807

)

 

 

20,188

 

 

 

(25,130

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributed to Novo Integrated Sciences, Inc.

 

$

(2,746,128

)

 

$

(4,621,355

)

 

$

(7,426,471

)

 

$

(8,556,768

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(2,745,560

)

 

 

(4,645,162

)

 

 

(7,406,283

)

 

 

(8,581,898

)

Foreign currency translation gain (loss)

 

 

750,067

 

 

 

(196,683

)

 

 

860,764

 

 

 

(617,665

)

Comprehensive loss:

 

$

(1,995,493

)

 

$

(4,841,845

)

 

$

(6,545,519

)

 

$

(9,199,563

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

 

17,642,829

 

 

 

7,933,492

 

 

 

17,184,569

 

 

 

5,646,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share - basic and diluted

 

$

(0.16

)

 

$

(0.59

)

 

$

(0.43

)

 

$

(1.52

)

* The condensed consolidated statements of operations and comprehensive loss’s share and per share amounts have been retroactively adjusted to account for the Company’s 1:10 reverse stock split, effective November 7, 2023.

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three and Six Months Ended February 29, 2024 and February 28, 2023 (unaudited)

 

 

 

 

 

Additional

 

 

Common

 

 

Other

 

 

 

 

 

Novo

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Stock To

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

Noncontrolling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Be Issued

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

 

Interest

 

 

Equity

 

Balance, August 31, 2023

 

 

15,759,325

 

 

$

15,760

 

 

$

90,973,316

 

 

$

1,217,293

 

 

$

(357,383

)

 

$

(67,033,041

)

 

$

24,815,945

 

 

$

(316,870

)

 

$

24,499,075

 

Cashless exercise of warrants

 

 

245,802

 

 

 

246

 

 

 

1,323,152

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

1,323,398

 

 

 

–

 

 

 

1,323,398

 

Exercise of warrants for cash

 

 

240,400

 

 

 

240

 

 

 

240,160

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

240,400

 

 

 

–

 

 

 

240,400

 

Share issuance for convertible debt settlement

 

 

519,845

 

 

 

520

 

 

 

577,002

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

577,522

 

 

 

–

 

 

 

577,522

 

Issuance of common stock to be issued

 

 

73,767

 

 

 

74

 

 

 

1,172,776

 

 

 

(1,172,850

)

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

Common stock issued for services

 

 

424,080

 

 

 

424

 

 

 

1,194,976

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

1,195,400

 

 

 

–

 

 

 

1,195,400

 

Reverse stock split share rounding

 

 

27,973

 

 

 

28

 

 

 

(28

)

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

Foreign currency translation loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

110,895

 

 

 

–

 

 

 

110,895

 

 

 

(1,919

)

 

 

108,976

 

Net loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

(4,680,343

)

 

 

(4,680,343

)

 

 

19,620

 

 

 

(4,660,723

)

Balance, November 30, 2023

 

 

17,291,192

 

 

$

17,292

 

 

$

95,481,354

 

 

$

44,443

 

 

$

(246,488

)

 

$

(71,713,384

)

 

$

23,583,217

 

 

$

(299,169

)

 

$

23,284,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share issuance for convertible debt settlement

 

 

457,128

 

 

 

457

 

 

 

453,616

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

454,073

 

 

 

–

 

 

 

454,073

 

Foreign currency translation gain

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

749,869

 

 

 

–

 

 

 

749,869

 

 

 

198

 

 

 

750,067

 

Fair value of stock options

 

 

–

 

 

 

–

 

 

 

147,656

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

147,656

 

 

 

–

 

 

 

147,656

 

Net loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

(2,746,128

)

 

 

(2,746,128

)

 

 

568

 

 

 

(2,745,560

)

Balance, February 29, 2024

 

 

17,748,320

 

 

$

17,749

 

 

$

96,082,626

 

 

$

44,443

 

 

$

503,381

 

 

$

(74,459,512

)

 

$

22,188,687

 

 

$

(298,403

)

 

$

21,890,284

 

 

 

 

 

 

 

 

 

Additional

 

 

Common

 

 

Other

 

 

 

 

 

Novo

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Stock To

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders’

 

 

Noncontrolling

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Be Issued

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

 

Interest

 

 

Equity

 

Balance, August 31, 2022

 

 

3,118,063

 

 

$

3,118

 

 

$

66,084,887

 

 

$

9,474,807

 

 

$

560,836

 

 

$

(53,818,489

)

 

$

22,305,159

 

 

$

(257,588

)

 

$

22,047,571

 

Common stock issued for cash, net of offering costs

 

 

400,000

 

 

 

400

 

 

 

1,794,600

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

1,795,000

 

 

 

–

 

 

 

1,795,000

 

Issuance of common stock to be issued

 

 

3,623

 

 

 

4

 

 

 

92,362

 

 

 

(92,366

)

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

Cashless exercise of warrants

 

 

467,399

 

 

 

467

 

 

 

1,138,583

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

1,139,050

 

 

 

–

 

 

 

1,139,050

 

Fair value of stock options

 

 

–

 

 

 

–

 

 

 

60,887

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

60,887

 

 

 

–

 

 

 

60,887

 

Foreign currency translation loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

(417,008

)

 

 

–

 

 

 

(417,008

)

 

 

(3,974

)

 

 

(420,982

)

Net loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

(3,935,413

)

 

 

(3,935,413

)

 

 

(1,323

)

 

 

(3,936,736

)

Balance, November 30, 2022

 

 

3,989,085

 

 

$

3,989

 

 

$

69,171,319

 

 

$

9,382,441

 

 

$

143,828

 

 

$

(57,753,902

)

 

$

20,947,675

 

 

$

(262,885

)

 

$

20,684,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share issuance for convertible debt settlement

 

 

9,310,940

 

 

 

9,311

 

 

 

9,076,740

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

9,086,051

 

 

 

–

 

 

 

9,086,051

 

Cashless exercise of warrants

 

 

115,935

 

 

 

116

 

 

 

282,417

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

282,533

 

 

 

–

 

 

 

282,533

 

Exercise of warrants for cash

 

 

131,000

 

 

 

131

 

 

 

130,869

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

131,000

 

 

 

–

 

 

 

131,000

 

Issuance of common stock to be issued

 

 

320,202

 

 

 

320

 

 

 

8,164,828

 

 

 

(8,165,148

)

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

Shares issued with convertible notes

 

 

95,500

 

 

 

96

 

 

 

82,868

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

82,963

 

 

 

–

 

 

 

82,963

 

Value of warrants issued with convertible notes

 

 

–

 

 

 

–

 

 

 

86,327

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

86,327

 

 

 

–

 

 

 

86,327

 

Fair value of stock options

 

 

–

 

 

 

–

 

 

 

60,887

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

60,887

 

 

 

–

 

 

 

60,887

 

Extinguishment of derivative liability due to conversion

 

 

–

 

 

 

–

 

 

 

1,390,380

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

1,390,380

 

 

 

–

 

 

 

1,390,380

 

Foreign currency translation loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

(195,821

)

 

 

–

 

 

 

(195,821

)

 

 

(862

)

 

 

(196,683

)

Net loss

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

–

 

 

 

(4,621,355

)

 

 

(4,621,355

)

 

 

(23,807

)

 

 

(4,645,162

)

Balance, February 28, 2023

 

 

13,962,662

 

 

$

13,963

 

 

$

88,446,635

 

 

$

1,217,293

 

 

$

(51,993

)

 

$

(62,375,257

)

 

$

27,250,640

 

 

$

(287,554

)

 

$

26,963,086

* The condensed consolidated statements of stockholders’ equity share amounts have been retroactively adjusted to account for the Company’s 1:10 reverse stock split, effective November 7, 2023.

NOVO INTEGRATED SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended February 29, 2024 and February 28, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

February 29,

 

 

February 28,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net loss

 

$

(7,406,283

)

 

$

(8,581,898

)

Adjustments for non-cash items:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,140,613

 

 

 

1,138,797

 

Fair value of vested stock options

 

 

147,656

 

 

 

121,774

 

Change in fair value of derivative liability

 

 

(958,868

)

 

 

—

 

Cashless exercise of warrants

 

 

1,323,398

 

 

 

1,421,583

 

Common stock issued for services

 

 

1,195,400

 

 

 

—

 

Operating lease expense

 

 

308,867

 

 

 

419,256

 

Amortization of debt discount

 

 

2,190,501

 

 

 

4,230,862

 

Foreign currency transaction losses

 

 

78,946

 

 

 

35,681

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(691,424

)

 

 

57,936

 

Inventory

 

 

157,116

 

 

 

(78,898

)

Prepaid expenses and other current assets

 

 

127,885

 

 

 

6,143

 

Accounts payable

 

 

(1,333,031

)

 

 

299,881

 

Accrued expenses

 

 

98,987

 

 

 

148,918

 

Accrued interest

 

 

63,151

 

 

 

28,226

 

Operating lease liability

 

 

(308,867

)

 

 

(405,082

)

Net cash used in operating activities

 

 

(3,865,953

)

 

 

(1,156,821

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

(Repayments to) proceeds from related parties

 

 

(64,837

)

 

 

6,138

 

Proceeds from notes payable

 

 

145

 

 

 

—

 

Repayments of notes payable

 

 

(184,475

)

 

 

—

 

Repayments of finance leases

 

 

(5,931

)

 

 

(4,299

)

Proceeds from issuance of convertible notes, net

 

 

3,314,153

 

 

 

445,235

 

Repayment of convertible notes

 

 

—

 

 

 

(2,977,778

)

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

 

 

—

 

 

 

1,795,000

 

Proceeds from exercise of warrants

 

 

240,400

 

 

 

131,000

 

Net cash provided by (used in) financing activities

 

 

3,299,455

 

 

 

(604,704

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

801,922

 

 

 

192,576

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

 

235,424

 

 

 

(1,568,949

)

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

416,323

 

 

 

2,178,687

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

651,747

 

 

$

609,738

 

 

 

 

 

 

 

 

 

 

CASH PAID FOR:

 

 

 

 

 

 

 

 

Interest

 

$

158,367

 

 

$

275,990

 

Income taxes

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Common stock issued for convertible debt settlement

 

$

1,031,595

 

 

$

9,086,051

 

Debt discount recognized on derivative liability

 

$

—

 

 

$

1,390,380

 

Debt discount recognized on convertible note

 

$

—

 

 

$

297,055

 

Extinguishment of derivative liability due to conversion

 

$

—

 

 

$

1,390,380

 

Common stock issued with convertible notes

 

$

—

 

 

$

82,963

 

Warrants issued with convertible notes

 

$

—

 

 

$

86,327

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240415120487/en/

Chris David, COO-President Novo Integrated Sciences, Inc. [e-mail] [phone]