Novo Integrated Sciences Inc

Novo Integrated Sciences, Inc. (NASDAQ: NVOS) is a parent company to its subsidiaries. The Company owns Canadian and United States subsidiaries that provide, or intend to provide, essential and differentiated solutions to the delivery of multidisciplinary primary care and related wellness products through the integration of medical technology, interconnectivity, advanced therapeutic, diagnostic solutions, personalized product offerings, and rehabilitative science.

Recent Financial and Business Updates:

• Cash and Financial Position: During the mentioned period, the company's cash and cash equivalents amounted to USD 464,011. Its total assets were valued at USD 35.7 million, while total liabilities stood at USD 9.5 million. The stockholders' equity reached a total of USD 26.5 million.
• Revenue Decline: The company reported revenues of USD 3,292,933 for the quarter, reflecting a substantial decrease of 76% (USD 10,558,950) compared to the same period in 2022. This decline in revenue was largely attributed to reduced outsourced product sales and IoNovo Iodine sales. Acenzia and Terragenx contributed USD 896,405 and USD 5,866, respectively, to the overall revenue during this quarter. Additionally, the revenue from healthcare services witnessed an 8% decrease compared to the corresponding period in 2022.
• Operating Cost Reduction: Operating costs for the quarter amounted to USD 2,744,512, indicating a decrease of 24% (USD 867,116) from the figure of USD 3,611,628 reported for the same period in 2022. This decrease in operating costs primarily resulted from reductions in overhead expenses and depreciation and amortization.
• Net Loss Reduction: The net loss attributed to the Company for the quarter was USD 1,497,330, marking a 61% decrease (USD 2,312,724) from the net loss of USD 3,810,054 reported for the same period in 2022. This reduction in net loss was primarily driven by lower operating expenses.
• Financing Activities: On March 21, 2023, the Company issued a promissory note of USD 573,000 at a 12% annual interest rate. This was accompanied by the completion of a Securities Purchase Agreement with FirstFire Global Opportunities Fund, LLC, resulting in gross proceeds of USD 515,700. As part of this agreement, the Company issued 5-year warrants with an exercise price of USD 0.25 per share and issued 955,000 restricted shares to FirstFire.
• Additional Financing and Agreements: On April 26, 2023, the Company entered into a securities purchase agreement with RC Consulting Group LLC on behalf of SCP Tourbillion Monaco, leading to the issuance of an unsecured 15-year promissory note (RC Note). This note carried a maturity date of April 26, 2038, and a principal sum of USD 70,000,000, which included the USD 57,000,000 purchase price and a yield of 1.52% (non-compounding) per annum from April 26, 2023, until maturity.
• Subsequent Financing: Following the quarter ending on May 31, 2023, on June 20, 2023, the Company issued a USD 445,000 promissory note at a 12% annual interest rate. This issuance was made under a Securities Purchase Agreement with Mast Hill Fund, L.P., resulting in gross proceeds of USD 400,500. As part of this transaction, the Company granted 5-year warrants with an exercise price of USD 0.25 per share and issued 776,614 restricted shares to Mast Hill Fund, L.P.

Technical Observation (on the daily chart)

The price of NVOS stock has shown a consistent downward trend since making its 52-week high on August 29, 2022, with a correction of approximately 91.83%. The RSI (14 period) momentum indicator is in a down trend with currently at a value of 56.52, with expectations of some consolidation. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels. 

As per the above-mentioned price action, key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given Novo Integrated Sciences, Inc. (NASDAQ: NVOS) at the current market price of USD 0.14 as of August 17, 2023, at 09:45 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 17, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.