Innovotech Reports Q3 2026 Financial Results with Improving Margins and Growing Regulated Testing Revenue

EDMONTON, Alberta — November 10, 2026 — Leads & Copy — Innovotech Inc. (TSXV: IOT; OTCQB: IOTCF) reported its financial results for the third quarter and nine months ended September 30, 2026, highlighting improved margins, strengthened liquidity, and growing revenue from regulated testing services.

The company's net loss narrowed by 40% to $390,335, or $0.01 per share, compared to the second quarter. This improvement is attributed to cost-saving measures implemented earlier in the year, with total costs before grants and tax credits decreasing by 22% to $1.11 million. General and administrative expenses were also reduced by 24% to $413,276.

Gross margin saw a significant increase to 29.8% from 8.6% in the previous quarter. While still below its target, the company anticipates continued margin recovery as revenue grows on a leaner operational base.

Innovotech's GMP, analytical chemistry, and stability testing services experienced their strongest quarter of 2026, generating $363,112 in revenue. This represents a 9% increase from the third quarter of 2025 and a 13% increase from the second quarter of 2026. These services now constitute over half of the company's revenue, driven by recurring work from pharmaceutical, biotechnology, healthcare, and industrial clients. The growth is supported by investments in additional equipment and cleanroom capacity for GMP-associated sterility testing.

The company also bolstered its financial position. Working capital stood at $712,523 as of September 30, 2026, with its current ratio improving to 2.28 from 2.07 at the end of June. Innovotech financed its MALDI-TOF mass spectrometry system through a sale-and-leaseback agreement, preserving cash, and maintained strict expense and receivables control. On October 29, 2026, the company secured a commitment letter from ATB Financial for a $500,000 revolving operating facility and a $100,000 corporate credit card facility. Consolidating its banking with ATB Financial is expected to simplify operations and reduce costs, providing enhanced flexibility for cash flow management and growth initiatives.

“We have taken the steps needed to keep Innovotech on firm footing,” said Craig Milne, CEO. “Our costs are down, our margins are recovering, and our regulated testing business is growing. I am proud of how our team has responded. They adapted quickly, stayed focused on our clients and delivered through a challenging year. There is more work to do, particularly on margins, but our key measures are moving in the right direction. We have a clear plan, and we are executing it.”

Innovotech is also developing new revenue streams. In August, the company launched InnovoTEST™ hazardous drug wipe testing kits. A distribution agreement signed on November 3, 2026, with Healthmark will bring these kits to pharmacies across Canada. In contract research, Innovotech has begun introducing assay services using porcine skin explants and is progressing towards Good Laboratory Practice (GLP) certification.

The company anticipates that the full benefits of its reduced cost base will be more evident in the fourth quarter. Innovotech remains focused on returning to profitability by increasing revenue from its regulated testing services and InnovoTEST™ product line on a more efficient operational platform.

Innovotech Inc. is a life sciences services and technology company specializing in contract research, analytical, and microbial testing within regulated healthcare markets. The company operates ISO-certified and GMP-accredited laboratories, providing advanced services to the medical device, pharmaceutical, and industrial product sectors. Its offerings include biofilm science, antimicrobial testing, and high-throughput antimicrobial and antibiotic testing through its MBEC Assay® platform.

Source: Innovotech Inc.