* The condensed consolidated statements of stockholders' equity share amounts have been retroactively adjusted to account for the Company's 1:10 reverse stock split, effective November 7, 2023.
NOVO INTEGRATED SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended May 31, 2024 and 2023 (unaudited)
Nine Months Ended
------------------------------
May 31, May 31,
2024 2023
------------- ---------------
(unaudited) (unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $(21,142,583) $(10,067,193)
Adjustments for non-cash items:
Depreciation and amortization 1,697,317 1,718,388
Fair value of vested stock
options 147,656 385,335
Change in fair value of
derivative liability 5,765,822 --
Cashless exercise of warrants 1,323,398 1,421,583
Common stock issued for
services 1,195,400 --
Operating lease expense 466,276 624,246
Amortization of debt discount 5,095,331 4,386,899
Foreign currency transaction
losses 1,485,861 (12,652)
Changes in operating assets and
liabilities:
Accounts receivable (797,692) (308,907)
Inventory (12,548) (92,260)
Prepaid expenses and other
current assets 130,015 333,724
Accounts payable 408,067 154,542
Accrued expenses 76,428 104,004
Accrued interest 103,605 (67,634)
Operating lease liability (466,276) (594,618)
----------- -----------
Net cash used in operating
activities (4,523,923) (2,014,543)
----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and equipment (2,005) (18,870)
----------- -----------
Net cash used in investing
activities (2,005) (18,870)
----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
(Repayments to) proceeds from
related parties (267,756) (56,649)
Proceeds from notes payable 274 222,000
Repayments of notes payable (184,125) --
Repayments of finance leases (7,350) (6,435)
Proceeds from issuance of
convertible notes, net 8,649,153 925,306
Repayment of convertible notes (3,311,536) (3,033,888)
Proceeds from the sale of common
stock, net of offering costs -- 1,795,000
Proceeds from exercise of warrants 240,400 451,000
----------- -----------
Net cash provided by financing
activities 5,119,060 296,334
----------- -----------
Effect of exchange rate changes on
cash and cash equivalents 530,316 22,403
----------- -----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 1,123,448 (1,714,676)
CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD 416,323 2,178,687
----------- -----------
CASH AND CASH EQUIVALENTS, END OF
PERIOD $ 1,539,771 $ 464,011
=========== ===========
CASH PAID FOR:
Interest $ 190,491 $ 343,878
Income taxes $ -- $ --
SUPPLEMENTAL NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Common stock issued for
convertible debt settlement $ 1,610,883 $ 9,186,329
Beneficial conversion feature upon
issuance of convertible notes -- 66,068
Debt discount recognized on
derivative liability -- 1,390,380
Debt discount recognized on
convertible note -- 639,993
Extinguishment of derivative
liability due to conversion -- 1,390,380
Common stock issued with
convertible notes -- 173,095
Warrants issued with convertible
notes $ -- $ 180,138
View source version on businesswire.com: https://www.businesswire.com/news/home/20240719320957/en/
CONTACT: Chris David, COO-President
Novo Integrated Sciences, Inc.
chris.david@novointegrated.com
$(888.UK)$ 512-1195
(END) Dow Jones Newswires
July 19, 2024 17:00 ET (21:00 GMT)
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