Financial Performance - Total revenue for Q1 2024 was $1,576,286, a significant increase of 353% compared to $348,025 in Q1 2023[17] - Clinic revenue reached $1,537,199 in Q1 2024, up from $297,381 in Q1 2023, representing a growth of 417%[17] - The net loss for Q1 2024 was $1,596,513, a reduction from a net loss of $2,550,879 in Q1 2023, indicating an improvement of approximately 37%[17] - The company reported a basic net loss per share of $0.42 for Q1 2024, compared to a loss of $4.10 per share in Q1 2023[17] - The net loss for the three months ended March 31, 2024, was $1,596,513, a decrease from a net loss of $2,550,879 in the same period of 2023, representing a 37.5% improvement[50] - The basic and diluted net loss per common share improved to $(0.42) for Q1 2024 from $(4.10) in Q1 2023[50] Assets and Liabilities - Total current assets increased to $1,724,946 as of March 31, 2024, compared to $1,259,775 as of December 31, 2023, reflecting a growth of 37%[15] - Total liabilities decreased to $18,307,610 as of March 31, 2024, down from $19,994,962 as of December 31, 2023, a reduction of about 8%[15] - Cash and cash equivalents rose to $475,125 as of March 31, 2024, compared to $232,424 as of December 31, 2023, an increase of 104%[15] - The total stockholders' equity as of March 31, 2024, was $10,155, a decrease from $892,825 as of December 31, 2023[15] Cash Flow and Operating Activities - Net cash used in operating activities decreased to $(260,557) in Q1 2024 from $(1,148,461) in Q1 2023, indicating improved cash flow management[50] - Cash and cash equivalents at the end of the period were $475,125, down from $2,188,245 at the end of Q1 2023[50] - The company had cash paid for interest amounting to $50,804 during the period, compared to no interest paid in the same period of the previous year[50] Research and Development - Research and development expenses significantly decreased to $4,880 in Q1 2024 from $73,520 in Q1 2023, a decline of approximately 93%[17] Acquisitions and Joint Ventures - The company completed its first IVF clinic acquisition in August 2023 and currently operates two INVO Centers in the United States[24] - The Company acquired the Wisconsin Fertility Institute for a total purchase price of $10 million, with $2.15 million paid in cash at closing and the remainder in installments[55] - The Georgia joint venture (Bloom INVO, LLC) recorded net losses of $50,000 for the three months ended March 31, 2024, compared to a net loss of $32,000 for the same period in 2023[65] - The Alabama joint venture (HRCFG INVO, LLC) reported a net income of $0.2 thousand for the three months ended March 31, 2024, recovering from a net loss of $37,000 in the same period of 2023[67] - The Company recognized a total impairment of approximately $0.09 million for its investment in the Mexico joint venture due to operational uncertainties[70] Financing Activities - The company raised $500,000 from the sale of preferred stock during the financing activities in Q1 2024[50] - During the first three months of 2024, the Company raised $0.5 million from preferred stock sales and $0.2 million from note sales, indicating ongoing reliance on capital raising[53] - The Company entered into a Standard Merchant Cash Advance Agreement with Cedar Advance LLC, resulting in a net cash receipt of $356,250 after a gross purchase price of $375,000 for receivables of $543,750[99] - The Company secured a Revenue Loan and Security Agreement for a gross amount of $1,500,000, with a maturity date of June 29, 2028, and varying interest based on repayment timing[102] Stock and Shareholder Matters - The Company approved a reverse stock split at a ratio of 1-for-20, reducing authorized common stock from 125,000,000 to 6,250,000 shares[109] - Shareholders approved an increase in authorized common stock from 6,250,000 to 50,000,000 shares on October 13, 2023[110] - The Company filed a Certificate of Designation for Series A Preferred Stock, authorizing 1,000,000 shares with a stated value of $5.00 per share, convertible at $2.20 per share[111][112] - The Company entered into a share exchange agreement with Cytovia Therapeutics for the acquisition of 1,200,000 shares of Series B Preferred Stock in exchange for 163,637 shares of NAYA's common stock[125][126] - The Company entered into an equity purchase agreement allowing the purchase of up to $10.0 million of common stock in multiple tranches[127] Legal and Compliance - The Company received a notice from Nasdaq indicating non-compliance with the Equity Rule, requiring a minimum stockholders' equity of $2,500,000, as it reported stockholders' equity of $892,825[211] - The Company is subject to various covenants that restrict its ability to declare dividends, make certain investments, or enter into transactions with affiliates, prioritizing the repayment of the FirstFire Note[193] Future Outlook - The Company expects to continue incurring significant operating losses as it ramps up commercialization efforts and develops new INVO Centers[54] - The completion of the merger is subject to several conditions, including a private offering of at least $5,000,000 in gross proceeds and the Company's liabilities not exceeding $5,000,000[174]
INVO BioScience(INVO) - 2024 Q1 - Quarterly Report