Novo Integrated Sciences Reports 2023 Fiscal Year Financial Results

Novo Integrated Sciences Reports 2023 Fiscal Year Financial Results




Novo Integrated Sciences Reports 2023 Fiscal Year Financial Results

BELLEVUE, Wash.–(BUSINESS WIRE)–$NVOS #AAPI–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, 2023.


Robert Mattacchione, the Company’s CEO and Board Chairman, stated, “The 2023 fiscal year emphasized maximizing efficiencies pointed toward future cost savings and margin stability. 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, 2023:

  • As of August 31, 2023, the Company’s cash and cash equivalents were $416.3 thousand, total assets were $35.56 million, total liabilities were $11.06 million, and stockholders’ equity was $24.81 million.
  • Revenues for the year ended August 31, 2023 were $12,572,019, representing an increase of $834,082, or 7%, from $11,737,937 for the same period in 2022. The increase in revenue is principally due to an increase in product sales. Acenzia’s and Terragenx’s revenue for the year ended August 31, 2023 was $3,817,346 and $53,751, respectively. Revenue from our healthcare services decreased by 2%, when comparing the revenue for the year ended August 31, 2023 to the same period in 2022.
  • Operating costs for the year ended August 31, 2023 were $13,505,877, representing a decrease of $16,320,038, or 55%, from $29,825,915 for the same period in 2022. The decrease in operating costs is principally due to (i) the decrease in overhead expenses associated with the operations of Acenzia, PRO-DIP, and Terragenx, and (ii) no further impairment of intangible assets and goodwill being recognized in the year ended August 31, 2023.
  • Net loss attributed to Novo Integrated Sciences for the year ended August 31, 2023 was $13,214,552, representing a decrease of $19,634,663, or 60%, from $32,849,215 for the same period in 2022. The decrease in net loss was principally due to (i) a decrease in overhead expenses associated with the operations of Acenzia, PRO-DIP, and Terragenx which was approximately $4,902,925 for the year ended August 31, 2023, (ii) a decrease in interest expenses, and (iii) no further impairment of intangible assets and goodwill being recognized in the year ended August 31, 2023.
  • On December 14, 2021, the Company 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, 2023, the Company made (i) cash payments in the aggregate amount of $3,001,442, principal and interest, and (ii) an aggregate of $8,429,225 in principal and interest was converted into 8,527,835 shares of common stock issued to the $16.66m Note holders.

Operational Milestones for the Fiscal Year Ended August 31, 2023:

  • The Company and Farm 7 Group Inc., a Canada corporation (“F7”), entered into a joint venture agreement (the “JV Agreement”) relating to the development, administration, and arrangement of structured financing for the implementation and commencement of the Kenya Agricultural Cooperative Project, a Kenya centric agricultural project with finalized and executed uptake contracts for food-based agricultural goods on up to 9 million hectares with potential revenue up to $350,000,000. The JV Agreement, which has an initial term of 30 years, provides for the annual distribution of the net profits 75% to F7 and 25% to Novo.
  • IoNovo Iodine and IoNovo for Kids Pure Iodine oral sprays granted a registration number and received regulatory approval by Turkey’s Ministry of Health as a dietary supplement determined to be safe, effective, of high quality, and eligible for sale in Turkey.
  • The Company received court approval from the United States District Court for the Central District of California for the Purchase and Sale Agreement which provides for the Company to acquire a certain collection of 43 gemstones, 42 of which are certified by the Gemological Institute of America, known as the “Ophir Collection”, for $60,000,000.
  • The Company entered into a Master Collaboration Agreement with Psychocare Health Pvt. Ltd. India (“PCHPL”), commencing a strategic initiative to introduce new products and state-of-the-art healthcare technologies to the Indian market, with plans to extend healthcare related products to the North American market, providing Novo with access to PCHPL’s over 500 India based franchisee distributors, and providing Novo with an opportunity to integrate into PCHPL’s supply chain. This strategic move is expected to optimize manufacturing processes and enhance market access for Novo brands and products.

Corporate Highlights:

  • Subsequent to the fiscal year end, Nasdaq informed the Company that it has regained compliance with the minimum bid price requirement as set forth under Nasdaq Listing Rule 5550(a)(2) for continued listing on The Nasdaq Capital Market.

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, 2023 and 2022

 

 

 

August 31,

 

August 31,

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

416,323

 

 

$

2,178,687

 

Accounts receivable, net

 

 

1,467,028

 

 

 

1,017,405

 

Inventory, net

 

 

1,106,983

 

 

 

879,033

 

Other receivables

 

 

1,051,584

 

 

 

1,085,335

 

Prepaid expenses and other current assets

 

 

346,171

 

 

 

571,335

 

Total current assets

 

 

4,388,089

 

 

 

5,731,795

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

5,390,038

 

 

 

5,800,648

 

Intangible assets, net

 

 

16,218,539

 

 

 

18,840,619

 

Right-of-use assets, net

 

 

1,983,898

 

 

 

2,673,934

 

Goodwill

 

 

7,582,483

 

 

 

7,825,844

 

TOTAL ASSETS

 

$

35,563,047

 

 

$

40,872,840

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

3,513,842

 

 

$

1,800,268

 

Accrued expenses

 

 

1,233,549

 

 

 

1,116,125

 

Accrued interest (including amounts to related parties)

 

 

382,666

 

 

 

454,189

 

Government loans and notes payable, current portion

 

 

277,405

 

 

 

 

Convertible notes payable, net of discount of $459,332

 

 

558,668

 

 

 

9,099,654

 

Contingent liability

 

 

61,767

 

 

 

534,595

 

Debentures, related parties, current portion

 

 

916,824

 

 

 

 

Due to related parties

 

 

533,001

 

 

 

478,897

 

Finance lease liability, current portion

 

 

11,744

 

 

 

8,890

 

Operating lease liability, current portion

 

 

415,392

 

 

 

582,088

 

Total current liabilities

 

 

7,904,858

 

 

 

14,074,706

 

 

 

 

 

 

 

 

Debentures, related parties, net of current portion

 

 

 

 

 

946,250

 

Government loans and notes payable, net of current portion

 

 

65,038

 

 

 

161,460

 

Finance lease liability, net of current portion

 

 

 

 

 

12,076

 

Operating lease liability, net of current portion

 

 

1,693,577

 

 

 

2,185,329

 

Deferred tax liability

 

 

1,400,499

 

 

 

1,445,448

 

TOTAL LIABILITIES

 

 

11,063,972

 

 

 

18,825,269

 

 

 

 

 

 

 

 

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, 2023 and August 31, 2022, respectively

 

 

 

 

 

 

Common stock; $0.001 par value; 499,000,000 shares authorized; 15,759,325 and 3,118,063 shares issued and outstanding at August 31, 2023 and August 31, 2022, respectively

 

 

15,760

 

 

 

3,118

 

Additional paid-in capital

 

 

90,973,316

 

 

 

66,084,887

 

Common stock to be issued (91,138 and 414,965 shares at August 31, 2023 and August 31, 2022)

 

 

1,217,293

 

 

 

9,474,807

 

Other comprehensive (loss) income

 

 

(357,383

)

 

 

560,836

 

Accumulated deficit

 

 

(67,033,041

)

 

 

(53,818,489

)

Total Novo Integrated Sciences, Inc. stockholders’ equity

 

 

24,815,945

 

 

 

22,305,159

 

Noncontrolling interest

 

 

(316,870

)

 

 

(257,588

)

Total stockholders’ equity

 

 

24,499,075

 

 

 

22,047,571

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

35,563,047

 

 

$

40,872,840

 

* The consolidated balance sheets’ common stock 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.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the Years Ended August 31, 2023 and 2022

 

 

 

Years Ended

 

 

August 31,

 

August 31,

 

 

2023

 

 

2022

 

 

 

 

 

 

Revenues

 

$

12,572,019

 

 

$

11,737,937

 

 

 

 

 

 

 

 

Cost of revenues

 

 

7,619,304

 

 

 

6,938,699

 

 

 

 

 

 

 

 

Gross profit

 

 

4,952,715

 

 

 

4,799,238

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Selling expenses

 

 

15,149

 

 

 

20,702

 

General and administrative expenses

 

 

13,490,728

 

 

 

14,364,639

 

Impairment of assets

 

 

 

 

 

14,083,531

 

Goodwill impairment

 

 

 

 

 

1,357,043

 

Total operating expenses

 

 

13,505,877

 

 

 

29,825,915

 

 

 

 

 

 

 

 

Loss from operations

 

 

(8,553,162

)

 

 

(25,026,677

)

 

 

 

 

 

 

 

Non-operating income (expense)

 

 

 

 

 

 

Interest income

 

 

9,027

 

 

 

169,088

 

Interest expense

 

 

(360,571

)

 

 

(1,594,275

)

Other income

 

 

607,589

 

 

 

 

Amortization of debt discount

 

 

(4,757,121

)

 

 

(5,973,973

)

Foreign currency transaction losses

 

 

(215,206

)

 

 

(641,643

)

Total other income (expense)

 

 

(4,716,282

)

 

 

(8,040,803

)

 

 

 

 

 

 

 

Loss before income taxes

 

 

(13,269,444

)

 

 

(33,067,480

)

 

 

 

 

 

 

 

Income tax expense (recovery)

 

 

 

 

 

(22,302

)

 

 

 

 

 

 

 

Net loss

 

$

(13,269,444

)

 

$

(33,045,178

)

 

 

 

 

 

 

 

Net loss attributed to noncontrolling interest

 

 

(54,892

)

 

 

(195,963

)

 

 

 

 

 

 

 

Net loss attributed to Novo Integrated Sciences, Inc.

 

$

(13,214,552

)

 

$

(32,849,215

)

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

Net loss

 

 

(13,269,444

)

 

 

(33,045,178

)

Foreign currency translation loss

 

 

(922,609

)

 

 

(431,605

)

Comprehensive loss:

 

$

(14,192,053

)

 

$

(33,476,783

)

 

 

 

 

 

 

 

Weighted average common shares outstanding – basic and diluted

 

 

10,165,548

 

 

 

2,913,263

 

 

 

 

 

 

 

 

Net loss per common share – basic and diluted

 

$

(1.30

)

 

$

(11.28

)

* The 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.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Years Ended August 31, 2023 and 2022

 

 

 

Common Stock

 

 

Additional

Paid-in

 

Common Stock To

 

Other Comprehensive

 

Accumulated

 

Total Novo Stockholders’

 

Noncontrolling

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

Be Issued

 

Income

 

Deficit

 

Equity

 

Interest

 

Total Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, August 31, 2021

 

 

2,661,014

 

 

$

2,661

 

 

$

54,603,345

 

 

$

9,236,607

 

 

$

991,077

 

 

$

(20,969,274

)

 

$

43,864,416

 

 

$

(60,261

)

 

$

43,804,155

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for services

 

 

75,000

 

 

 

75

 

 

 

1,329,675

 

 

 

 

 

 

 

 

 

 

 

 

1,329,750

 

 

 

 

 

 

1,329,750

 

Common stock issued as collateral and held in escrow

 

 

200,000

 

 

 

200

 

 

 

(200

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for conversion of convertible notes

 

 

63,653

 

 

 

64

 

 

 

1,272,930

 

 

 

 

 

 

 

 

 

 

 

 

1,272,994

 

 

 

 

 

 

1,272,994

 

Common stock issued for acquisitions

 

 

80,000

 

 

 

80

 

 

 

1,703,920

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

38,396

 

 

 

38

 

 

 

1,195,237

 

 

 

(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

 

 

3,118,063

 

 

$

3,118

 

 

$

66,084,887

 

 

$

9,474,807

 

 

$

560,836

 

 

$

(53,818,489

)

 

$

22,305,159

 

 

$

(257,588

)

 

$

22,047,571

 

Units issued for cash, net of offering costs

 

 

400,000

 

 

 

400

 

 

 

1,794,600

 

 

 

 

 

 

 

 

 

 

 

 

1,795,000

 

 

 

 

 

 

1,795,000

 

Cashless exercise of warrants

 

 

583,334

 

 

 

583

 

 

 

1,421,000

 

 

 

 

 

 

 

 

 

 

 

 

1,421,583

 

 

 

 

 

 

1,421,583

 

Share issuance for convertible debt settlement

 

 

10,177,834

 

 

 

10,178

 

 

 

9,957,962

 

 

 

 

 

 

 

 

 

 

 

 

9,968,140

 

 

 

 

 

 

9,968,140

 

Exercise of warrants for cash

 

 

532,600

 

 

 

533

 

 

 

532,067

 

 

 

 

 

 

 

 

 

 

 

 

532,600

 

 

 

 

 

 

532,600

 

Shares issued with convertible notes

 

 

265,167

 

 

 

265

 

 

 

247,622

 

 

 

 

 

 

 

 

 

 

 

 

247,887

 

 

 

 

 

 

247,887

 

Value of warrants issued with convertible notes

 

 

 

 

 

 

 

 

257,994

 

 

 

 

 

 

 

 

 

 

 

 

257,994

 

 

 

 

 

 

257,994

 

Beneficial conversion feature upon issuance on convertible debt

 

 

 

 

 

 

 

 

164,046

 

 

 

 

 

 

 

 

 

 

 

 

164,046

 

 

 

 

 

 

164,046

 

Extinguishment of derivative liability due to conversion

 

 

 

 

 

 

 

 

1,390,380

 

 

 

 

 

 

 

 

 

 

 

 

1,390,380

 

 

 

 

 

 

1,390,380

 

Common stock for services

 

 

358,500

 

 

 

359

 

 

 

480,233

 

 

 

 

 

 

 

 

 

 

 

 

480,592

 

 

 

 

 

 

480,592

 

Issuance of common stock to be issued

 

 

323,827

 

 

 

324

 

 

 

8,257,190

 

 

 

(8,257,514

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of stock options

 

 

 

 

 

 

 

 

385,335

 

 

 

 

 

 

 

 

 

 

 

 

385,335

 

 

 

 

 

 

385,335

 

Foreign currency translation loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(918,219

)

 

 

 

 

 

(918,219

)

 

 

(4,390

)

 

 

(922,609

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,214,552

)

 

 

(13,214,552

)

 

 

(54,892

)

 

 

(13,269,444

)

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

 

* The consolidated statements of stockholder’s 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.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended August 31, 2023 and 2022

 

 

 

Years Ended

 

 

August 31,

 

August 31,

 

 

2023

 

 

2022

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(13,269,444

)

 

$

(33,045,178

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

2,302,754

 

 

 

3,019,253

 

Fair value of vested stock options

 

 

385,335

 

 

 

426,690

 

Financing costs for debt extension

 

 

1,421,583

 

 

 

 

Default payment and interest paid through common share issuance

 

 

205,349

 

 

 

 

Common stock issued for services

 

 

480,592

 

 

 

1,329,750

 

Operating lease expense

 

 

797,515

 

 

 

852,580

 

Amortization of debt discount

 

 

4,757,121

 

 

 

5,973,973

 

Foreign currency transaction losses

 

 

215,206

 

 

 

641,643

 

Impairment of assets

 

 

 

 

 

14,083,531

 

Other receivables write-off

 

 

 

 

 

299,672

 

Goodwill impairment

 

 

 

 

 

1,357,043

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(597,191

)

 

 

457,006

 

Inventory

 

 

(255,781

)

 

 

(527,397

)

Prepaid expenses and other current assets

 

 

210,382

 

 

 

(369,647

)

Accounts payable

 

 

1,770,589

 

 

 

283,234

 

Accrued expenses

 

 

153,598

 

 

 

38,743

 

Accrued interest

 

 

(58,066

)

 

 

101,353

 

Operating lease liability

 

 

(762,852

)

 

 

(806,394

)

Net cash used in operating activities

 

 

(2,243,315

)

 

 

(5,884,145

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(49,224

)

 

 

(190,168

)

Cash acquired with acquisition

 

 

 

 

 

57,489

 

Collection of other receivable

 

 

 

 

 

296,138

 

Net cash (used in) provided by investing activities

 

 

(49,224

)

 

 

163,459

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Receipts from related parties

 

 

7,206

 

 

 

16,600

 

Proceeds from notes payable

 

 

222,780

 

 

 

 

Repayments of notes payable

 

 

(37,130

)

 

 

(10,591,115

)

Repayments of finance leases

 

 

(8,611

)

 

 

(18,435

)

Proceeds from issuance of convertible notes

 

 

1,285,903

 

 

 

15,270,000

 

Repayment of convertible notes

 

 

(3,033,888

)

 

 

(5,104,167

)

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

 

 

1,795,000

 

 

 

 

Proceeds from exercise of warrants

 

 

532,600

 

 

 

 

Net cash provided by (used in) financing activities

 

 

763,860

 

 

 

(427,117

)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(233,685

)

 

 

33,328

 

 

 

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

 

(1,762,364

)

 

 

(6,114,475

)

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

 

 

2,178,687

 

 

 

8,293,162

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF YEAR

 

$

416,323

 

 

$

2,178,687

 

 

 

 

 

 

 

 

CASH PAID FOR:

 

 

 

 

 

 

Interest

 

$

432,094

 

 

$

1,502,819

 

Income taxes

 

$

 

 

$

 

 

 

 

 

 

 

 

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

 

 

 

Common stock issued for convertible debt

 

$

9,968,140

 

 

$

1,272,994

 

Common stock issued for acquisition

 

$

 

 

$

1,704,000

 

Warrants issued with convertible notes

 

$

257,994

 

 

$

5,553,290

 

Beneficial conversion feature upon issuance of convertible notes

 

$

164,046

 

 

$

 

Debt discount recognized on derivative liability

 

$

1,390,380

 

 

$

 

Extinguishment of derivative liability due to conversion

 

$

1,390,380

 

 

$

 

Debt discount recognized on convertible note

 

$

975,024

 

 

$

 

Common stock issued with convertible notes

 

$

247,887

 

 

$

 

 

Contacts

Chris David, COO-President

Novo Integrated Sciences, Inc.

chris.david@novointegrated.com
(888) 512-1195