INVO Bioscience Reports Record Second Quarter 2018 Financial Results
MEDFORD, Mass., Aug. 14, 2018 /PRNewswire/ -- INVO Bioscience, Inc. (OTCQB: IVOB), a medical device company who was granted FDA clearance for the first Intravaginal Culture System, INVOcell™, today announced its Q2 2018 financial results for the quarter ended June 30, 2018 and recent highlights.
Financial Results and Recent Highlights:
Revenue for Q2 2018 was $110,210, an increase of 37% compared to $80,330 for the same period a year ago;
Gross margins improved during Q2 2018 to 85% compared to 83% in Q2 2017;
Excluding a one-time non-cash based expense relating to pre and post FDA clinical services, net loss was $(335,000) during Q2 2018 compared to $(136,974) in Q2 2017;
5 new clinics signed up offering or referring the INVOcell device and procedure since the last quarter, including two clinics in Texas, one in Hawaii, and two in Alabama;
Uplisting of IVOB stock to the OTCQB Venture Stock Market;
Raised approximately $1 million in new capital, allowing us to begin expanding our marketing and training efforts; and
The company continues to garner significant media attention, including mentions in:
Fox 6 Tuscaloosa
NewsChannel 3 Norfolk WTKR
"In addition to reporting record quarterly revenue during the second quarter, we also executed on a number of critical steps to drive long-term success for INVO Bioscience and adoption of our revolutionary INVOcell device and procedure," commented Katie Karloff, Chair and Chief Executive Officer of INVO Bioscience. "We are working with key influencers and academic institutions within the reproductive space to accelerate the near-term awareness of the product, and long-term adoption. Our focus within academic institutions in particular is a high focus in that it puts INVOcell at the ground floor of education for the next generation of clinical embryologists, andrologists, physicians and others involved in the practice of assisted reproductive technology and allows for a continued shift towards it as a standard of care. Importantly, we raised capital allowing us to significantly expand the sales and marketing efforts of INVOcell. The early adoption of the product, which has been almost entirely through word of mouth, has been amazing. With incremental sales and marketing efforts, we believe the opportunity for further adoption will be tremendous. Additionally, we satisfied the requirements of the OTC Markets to list the Company's shares on the OTCQB Venture Market. We are focused on driving rapid adoption of INVOcell in the years to come, whether that be through our direct sales efforts, or through efforts with partners around the world."
Q2 2018 Financial Results
Net sales and revenues for quarter ended June 30, 2018 were $110,210 compared to $80,330 for the same three-month period ended June 30, 2017.
Cost of goods sold for the three months ended June 30, 2018 were $16,710 or approximately 15% of revenues compared to $14,194 or approximately 17% of revenues for the quarter ended June 30, 2017. The improvement in gross margin was related primarily to the 2018 price increase on reorders compared to our 2017 introductory sales promotion.
Selling, general and administrative (SG&A) expenses for the three months ended June 30, 2018 were $1.9 million as compared to $199,000 for the three months ended June 30, 2017. Included in SG&A during the second quarter of 2018 was $1.5 million of non-cash common stock compensation in consideration for services performed both pre and post FDA clearance for clinical guidance and support by our Medical Director.
Adjusted EBITDA, which is a non-GAAP measure of operating performance, was $(208,000) during Q2 2018, compared to $(204,000) during Q2 2017. The company's executive management team continued to defer salaries and other expenses were kept to a minimum.
Net loss for the quarter was $(1,865,128), or $(0.01) per share, compared with $(136,974), or $(0.00) per share a year ago. Excluding the one-time non-cash based expense relating to pre and post FDA clinical services, net loss would have been $(335,000), or $(0.00) per share during Q2 2018.
The Company ended the quarter with $720,000 in cash compared to $35,000 on March 31, 2018.
Additional details pertaining to the quarterly financials can be found in our 10-Q filed today with the SEC.
Use of Non-GAAP Measure
Adjusted EBITDA is presented herein and is a non-GAAP measure. However, this measure is not intended to be a substitute for those financial measures reported in accordance with GAAP. Adjusted EBITDA has been included because management believes that, when considered together with the GAAP figures, it provides meaningful information related to our operating performance and liquidity and can enhance an overall understanding of financial results and trends. See our attached financials for a reconciliation of this non-GAAP measure to the most comparable GAAP measure.
About INVO Bioscience
We are a medical device company focused on creating simplified, lower cost treatments for patients diagnosed with infertility. Our solution, the INVO Procedure, is a disruptive new technology. The INVO Procedure is a revolutionary in vivo method of vaginal incubation that offers patients a more natural and intimate experience. Our lead product, the INVOcell, is a patented medical device used in infertility treatment and is considered an Assisted Reproductive Technology (ART). The INVOcell is the first Intravaginal Culture (IVC) system in the world used for the natural in vivo incubation of eggs and sperm during fertilization and early embryo development, as an alternative to traditional In Vitro Fertilization (IVF) and Intrauterine Insemination (IUI). Our mission is to increase access to care and expand fertility treatment across the globe with a goal to lower the cost of care and increase availability of care. For more information, please visit https://invobioscience.com/
Safe Harbor Statement
This release includes 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. The Company invokes the protections of the Private Securities Litigation Reform Act of 1995. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategies, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our filings at www.sec.gov. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Kathleen Karloff, CEO INVO Bioscience, Inc. 978-878-9505 ext. 504