Revenue Growth - Total revenue for the second quarter of 2024 was $1,836,597, a significant increase from $315,902 in the same period of 2023, representing a growth of approximately 480%[9] - Clinic revenue reached $1,807,921 in Q2 2024, compared to $254,364 in Q2 2023, marking an increase of about 608%[9] - The company reported a net loss of approximately $3.8 million for the six months ended June 30, 2024, compared to a net loss of $4.8 million for the same period in 2023, indicating a 21% improvement in losses year-over-year[36] - The basic and diluted net loss per common share for the three months ended June 30, 2024, was $(0.62), a significant improvement from $(3.06) for the same period in 2023[33] Financial Position - Total current assets increased to $2,396,063 as of June 30, 2024, up from $1,259,775 at the end of 2023, reflecting a growth of approximately 90%[7] - Cash reserves increased significantly to $942,934 as of June 30, 2024, compared to $232,424 at the end of 2023, representing a growth of approximately 304%[7] - Total liabilities decreased to $16,668,243 as of June 30, 2024, down from $19,994,962 at the end of 2023, a reduction of about 16%[7] - The accumulated deficit as of June 30, 2024, was $(61,910,463), up from $(57,818,145) at the end of 2023, indicating an increase in losses[8] Operating Expenses - Operating expenses for Q2 2024 totaled $3,739,510, compared to $2,381,879 in Q2 2023, indicating an increase of about 57%[9] - Cash used in operating activities decreased to $1,716,214 for the six months ended June 30, 2024, compared to $2,792,860 in the prior year, indicating a 38.6% reduction[12] - Approximately $2.6 million of the net loss for the six months ended June 30, 2024, was related to noncash expenses, compared to $1.4 million for the same period in 2023[36] Shareholder Equity - The weighted average number of common shares outstanding increased to 3,609,812 in Q2 2024, compared to 732,255 in Q2 2023[9] - The total balances as of June 30, 2024, showed an increase in common shares to 3,864,072, with an accumulated deficit of $61,910,463[11] - The company has no current plans to pay dividends on its common stock in the foreseeable future[121] Acquisitions and Joint Ventures - INVO Bioscience completed its first IVF clinic acquisition in August 2023, expanding its operational footprint in the fertility care market[13] - The acquisition of the Wisconsin Fertility Institute was completed for a total purchase price of $10 million, with $2.15 million paid in cash at closing[40] - The company has invested $0.9 million in the Georgia joint venture (Bloom INVO, LLC) and recorded net losses of $47,000 for the six months ended June 30, 2024[47] - The Alabama joint venture (HRCFG INVO, LLC) recorded a net income of $36,000 for the six months ended June 30, 2024, with the Company recognizing a gain of $18,000 from equity method investments[49] Market Strategy - The company aims to pursue additional acquisitions of established and profitable fertility clinics to accelerate growth[155] - The company has identified over 50 suitable locations in the U.S. for new INVO Centers to address the supply-demand imbalance in the fertility market[161] - The company has entered into exclusive distribution agreements in various international markets, including Mexico and Malaysia, with minimum annual purchase requirements[168] Technology and Operations - The proprietary INVOcell technology allows fertilization and early embryo development to occur in vivo, providing a more natural and cost-effective alternative to traditional IVF[156] - INVOcell has received FDA 510(k) clearance for a 5-day incubation period, demonstrating improved patient outcomes[158] - The IVC procedure is offered at INVO Centers for $4,500 to $7,000 per cycle, significantly lower than the average IVF cost of $11,000 to $15,000[163] Financing Activities - The company raised approximately $3 million from the RD Offering and March Warrant Placement, with potential additional proceeds of $3.5 million if the March Warrant is fully exercised[105] - The Company entered into a Revenue Loan and Security Agreement for $1,500,000 with a maturity date of June 29, 2028, with interest varying based on repayment timing[79] - The Company incurred $108,513 in interest related to the RSLA Loan for the six months ended June 30, 2024[80] Merger and Future Plans - The company plans to merge with NAYA Biosciences, with each share of NAYA common stock converting into approximately 7.33333 shares of the company's newly designated common stock[179] - The completion of the merger is contingent upon the sale of 5,000,000 shares of Series A Preferred Stock at $5.00 per share to support fertility business activities[182] - The merger agreement completion is subject to several conditions, including the aggregate liabilities not exceeding $5,000,000[183]
INVO BioScience(INVO) - 2024 Q2 - Quarterly Report