Financial Performance - Total revenue for the three months ended September 30, 2024, was $1,433,151, representing an increase of 47% compared to $974,894 for the same period in 2023[17]. - Clinic revenue for the nine months ended September 30, 2024, reached $4,763,131, up from $1,499,636 in the same period last year, indicating a growth of 217%[17]. - The company reported a net loss of $1,630,662 for the three months ended September 30, 2024, compared to a net loss of $1,248,440 for the same period in 2023, representing a 31% increase in losses[17]. - Operating expenses for the three months ended September 30, 2024, totaled $2,733,553, a 47% increase from $1,861,184 in the same period last year[17]. - Net loss for the nine months ended September 30, 2024, was $5,472,345, an improvement from a net loss of $6,039,830 for the same period in 2023, representing a decrease of approximately 9.4%[25]. - Basic net loss per common share for the three months ended September 30, 2024, was $(0.42), compared to $(0.70) for the same period in 2023[17]. Assets and Liabilities - Total current assets increased to $1,957,481 as of September 30, 2024, compared to $1,259,775 at the end of 2023, reflecting a growth of 55%[15]. - Cash balance increased to $471,591 as of September 30, 2024, compared to $232,424 at the end of 2023, marking a growth of 103%[15]. - Total liabilities decreased slightly to $17,042,805 as of September 30, 2024, from $17,613,091 at the end of 2023[15]. - The company’s accumulated deficit increased to $(63,541,125) as of September 30, 2024, compared to $(57,818,145) at the end of 2023[15]. - Total stockholders' equity (deficit) was $(23,316) as of September 30, 2024, down from $892,825 at the end of 2023[15]. Stock and Financing Activities - The company raised $1,587,500 from the sale of common stock, net of fees, during the quarter ending June 30, 2023[20]. - The total common stock issued increased to 2,492,531 shares by December 31, 2023, with additional paid-in capital at $52,710,721[20]. - The Company raised $1.6 million from the sale of preferred stock and $0.9 million from the exercise of warrants during the first nine months of 2024[61]. - The Company completed the acquisition of the Wisconsin Fertility Institute for a total purchase price of $10 million, with $2.15 million paid in cash at closing[63]. - The Company entered into a Revenue Loan and Security Agreement for $1,500,000 with a maturity date of June 29, 2028, incurring $169,042 in interest for the nine months ended September 30, 2024[121][122]. Operational Highlights - The company plans to continue expanding its market presence and product offerings in the upcoming quarters[20]. - The Company expects to continue incurring significant expenses and operating losses as it ramps up commercialization of INVOcell and develops new INVO Centers[62]. - The Company anticipates continuing sales of INVOcells to its consolidated and unconsolidated VIEs in the ordinary course of business[82]. Joint Ventures and Acquisitions - The Georgia joint venture recorded net losses of $0.1 million for both the nine months ended September 30, 2024, and 2023[73]. - The Mexico joint venture was impaired by approximately $0.09 million in 2023 due to operational uncertainties, and as of September 30, 2024, the Company's investment in this JV was $0[79]. - The Company plans to grow the Wisconsin Fertility Institute and pursue additional IVF clinic acquisitions over the next 12 months[61]. Tax and Legal Matters - Income tax expense for the three months ended September 30, 2024, was $29,259, compared to $1,886 for the same period in 2023, representing a significant increase[206]. - The annual forecasted effective income tax rate for 2024 is 0%, with a year-to-date effective income tax rate of 0% for the nine months ended September 30, 2024[206]. - The Company is currently not subject to any material legal proceedings, but may face claims in the ordinary course of business[209]. Stock Options and Compensation - The Company has issued stock options to directors and employees as compensation, totaling 69,035 shares[21]. - The Company incurred $209,371 in expenses related to the vesting of options for the nine months ended September 30, 2024[183]. - The total fair value of options vested was $209,371, with no options granted during this period[187]. Depreciation and Amortization - The Company reported depreciation and amortization expenses of $687,793 for the nine months ended September 30, 2024, compared to $59,296 in the same period of 2023, reflecting a substantial increase[25]. - The Company recorded depreciation expenses of $26,120 for the three months ended September 30, 2024, compared to $20,504 for the same period in 2023, an increase of 27.5%[85]. - The Company recorded amortization expenses related to intangible assets of $204,375 for the three months ended September 30, 2024, compared to $0 for the same period in 2023[88]. Merger and Corporate Governance - The Company entered into a Merger Agreement with Legacy NAYA on October 22, 2023, which was amended on October 25, 2023[210]. - As a result of the Merger, each share of Legacy NAYA common stock will be converted into the right to receive 7.33333 shares of the Company's newly designated Class B common stock[212]. - Following the Merger, Dr. Daniel Teper will be named chairman and CEO of the Company, with a board of directors comprising at least nine members[213].
INVO BioScience(INVO) - 2024 Q3 - Quarterly Report