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INVO Reports Record Second Quarter 2024 Financial Results with 481% Revenue Growth and a $1.1 Million Improvement to Adjusted EBITDA

SARASOTA, Fla., Aug. 14, 2024 (GLOBE NEWSWIRE) — INVO Bioscience, Inc. (Nasdaq: INVO) (“INVO” or the “Company”), a healthcare services fertility company focused on expanding access to advanced treatment through the establishment and acquisition of fertility clinics, and with the intravaginal culture (“IVC”) procedure enabled by its INVOcell® medical device, today announced financial results for the second quarter 2024 for the period ended June 30, 2024 and provided a business update.

Q2 2024 Financial Highlights (all metrics compared to Q2 2023 unless otherwise noted)

Management Commentary

“The growing, positive impact of our acquisition strategy remains in full swing as we report record second quarter revenue – up 481% year-over-year and 17% sequentially – with a $1.1 million improvement in adjusted EBITDA,” commented Steve Shum, CEO of INVO. “Our fertility centers in Middleton, Atlanta, and Birmingham are all experiencing sequential revenue growth and are collectively profitable. This growth and clinic-level profit, coupled with our careful management of overall corporate expenses, positions us to achieve our stated goal of reaching breakeven with our current operations. To accelerate our path to profitability, we also expect to resume both our acquisition and new INVO Center activities in 2025. I look forward to the continued strong execution by our team and making fertility care more accessible and inclusive to people in need.”

Definitive Merger Agreement

As originally reported, on October 23, 2023, INVO and NAYA, a company dedicated to increasing patient access to breakthrough treatments in oncology and regenerative medicine, jointly announced that they had entered into a definitive merger agreement (the “Merger Agreement”) for INVO to acquire NAYA in an all-stock transaction. The Merger Agreement was subsequently amended three times to primarily extend the target closing date and interim funding requirements to be provided by NAYA. INVO and NAYA are currently in discussions to agree to a further extension.

Financial Tables

Included in this press release is a reconciliation of Adjusted EBITDA. All additional financial tables are included in the Company’s 10-Q, which can be found on the Company’s website at https://www.invobioscience.com/sec-filings/ or at https://www.sec.gov/.

Use of Non-GAAP Measure

Adjusted EBITDA is a non-GAAP measure. 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. Adjusted EBITDA may be calculated by us differently than other companies that disclose measures with the same or similar terms. See our attached financials for a reconciliation of this non-GAAP measure to the nearest GAAP measure.

About INVO Bioscience

We are a healthcare services fertility company dedicated to expanding the assisted reproductive technology (“ART”) marketplace by making fertility care accessible and inclusive to people around the world. Our commercialization strategy is focused on the opening of dedicated “INVO Centers” offering the INVOcell® and IVC procedure (with three centers in North America now operational), the acquisition of US-based, profitable in vitro fertilization (“IVF”) clinics and the sale and distribution of our technology solution into existing fertility clinics. Our proprietary technology, INVOcell®, is a revolutionary medical device that allows fertilization and early embryo development to take place in vivo within the woman’s body. This treatment solution is the world’s first intravaginal culture technique for the incubation of oocytes and sperm during fertilization and early embryo development. This technique, designated as “IVC”, provides patients a more natural, intimate, and more affordable experience in comparison to other ART treatments. We believe the IVC procedure can deliver comparable results at a fraction of the cost of traditional IVF and is a significantly more effective treatment than intrauterine insemination (“IUI”). For more information, please visit www.invobio.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.

CONTACT

INVO Bioscience:
Steve Shum
978-878-9505
sshum@invobio.com 

INVO Investor Contact:
Robert Blum (Lytham Partners, LLC)
602-889-9700
INVO@lythampartners.com

  Adjusted EBITDA
      Three Months Ended
      June 30
        2024       2023  
           
Net loss attributable to INVO Bioscience, Inc. $ (2,245,170 )   $ (2,240,511 )
    Interest expense   118,640       52,474  
    Amortization of debt discount   250,972       122,718  
    Stock-based compensation   1,031,071       99,338  
    Stock option expense   69,035       326,916  
    Non cash compensation for services   45,000       45,000  
    Foreign currency exchange loss         265  
    (Gain) loss on disposal of fixed assets   (50,000 )      
    Loss from debt extinguishment   40,491        
    Depreciation and amortization   230,338       19,705  
Adjusted EBITDA $ (509,623 )   $ (1,574,095 )
           
Proforma net loss $ (2,245,170 )   $ (2,041,621 )
    Interest expense   118,640       52,474  
    Amortization of debt discount   250,972       122,718  
    Stock-based compensation   1,031,071       99,338  
    Stock option expense   69,035       326,916  
    Non-cash compensation for services   45,000       45,000  
    Foreign currency exchange loss         265  
    (Gain) loss on disposal of fixed assets   (50,000 )      
    Loss from debt extinguishment   40,491        
    Depreciation and amortization   230,338       19,705  
Proforma adjusted EBITDA $ (509,623 )   $ (1,375,205 )
           
INVO BIOSCIENCE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
                         
    For the Three Months Ended June 30,   For the Six Months Ended June 30,
      2024       2023       2024       2023  
Revenue:                        
Clinic revenue $ 1,807,921     $ 254,364     $ 3,345,120     $ 551,745  
Product revenue   28,676       61,538       67,763       112,182  
Total revenue   1,836,597       315,902       3,412,883       663,927  
Operating expenses:                      
Cost of revenue   861,648       235,714       1,711,882       466,719  
Selling, general and administrative     2,647,524       2,042,609       4,088,110       4,373,443  
Research and development           83,850       4,880       157,370  
Depreciation and amortization     230,338       19,705       457,298       38,792  
Total operating expenses     3,739,510       2,381,879       6,262,170       5,036,324  
Loss from operations   (1,902,913 )     (2,065,977 )     (2,849,287 )     (4,372,397 )
Other income (expense):                        
Gain (loss) from equity method investment     17,846       3,788       17,950       (23,947 )
Gain (loss) on disposal of fixed assets     50,000             (511,663 )      
Gain on lease termination             94,551        
Loss from debt extinguishment (40,491 )           (40,491 )      
Interest expense   (369,612 )     (175,192 )     (550,907 )     (391,781 )
Foreign currency exchange loss           (265 )           (400 )
Total other income (expense)     (342,257 )     (171,669 )     (990,560 )     (416,128 )
Loss before income taxes     (2,245,170 )     (2,237,646 )     (3,839,847 )     (4,788,525 )
Income taxes         2,865       1,836       2,865  
Net loss   $ (2,245,170 )   $ (2,240,511 )   (3,841,683 )   $ (4,791,390 )
                         
Net loss per common share:                    
Basic   $ (0.62 )   $ (3.06 )   $ (1.25 )   $ (7.07 )
Diluted   $ (0.62 )   $ (3.06 )   $ (1.25 )   $ (7.07 )
Weighted average number of common shares outstanding:                
Basic     3,609,812       732,255       3,072,877       677,684  
Diluted     3,609,812       732,255       3,072,877       677,684  
                         


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