INVO Fertility, Inc.

Revenue for the quarter was approximately $316,000, compared with approximately $146,000 in the prior-year period. Consolidated service revenue from the Atlanta INVO Center was approximately $254,000, or 81% of revenue, and product revenue was the remaining 19%; product revenue increased 82% year over year. Revenue from all three clinics totaled $712,000 versus $291,000 in the prior-year period. Operating expenses decreased to approximately $2.4 million from approximately $2.8 million, and adjusted EBITDA loss improved to approximately $1.6 million from approximately $2.2 million. At June 30, 2023, the company had approximately $112,000 in cash and $1.3 million in debt. Since quarter end, it repaid approximately $140,000 of convertible debt and raised approximately $4.5 million in gross proceeds in a public offering of common stock and warrants. Management expects 2023 clinic revenue to continue building, mainly from Wisconsin and to a lesser degree Tampa, and reiterated a target for operating cash flow breakeven in 2024.

Steve Shum framed the quarter as a turning point, emphasizing the closing of Wisconsin Fertility Institute as a transformative step that shifts INVO from a device company toward an integrated fertility services provider. He said the model is designed to capture more revenue per treatment, citing roughly $4,500 to $7,000 per IVC cycle versus about $400 per device sale, and he highlighted the company’s goal of scaling profitable clinic operations. His tone was optimistic and confident, pointing to Tampa, Wisconsin integration, and the 5-day labeling expansion as key drivers of future growth.

Andrea Goren detailed that Q2 revenue was approximately $316,000 versus approximately $146,000 last year, with adjusted EBITDA loss narrowing to approximately $1.6 million from approximately $2.2 million. She said operating expenses fell to approximately $2.4 million from approximately $2.8 million, largely due to lower personnel, marketing, stock-based compensation, and R&D costs. She also noted approximately $112,000 in cash and $1.3 million in debt at June 30, plus the post-quarter repayment of approximately $140,000 of convertible debt and a public offering that raised approximately $4.5 million gross. Management said the recent expense reductions, together with Wisconsin, should further improve EBITDA.

Analysts focused on the importance of the 510(k) clearance for 5-day incubation and how it changes both competitive messaging and clinic growth. Management said the longer incubation period helps correct what they view as a market misconception that INVOcell has inferior outcomes, and it lets clinics market the technology more proactively with validated data. The analyst also asked about the assumptions behind 2024 breakeven; management said it is based on incremental growth at Wisconsin, the Tampa opening, current clinic trajectory, and about 30% reductions in corporate costs, without assuming additional acquisitions.