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Margins Improving, Liquidity Strengthened and Regulated Testing Revenue Growing

EDMONTON, Alberta – November 10, 2026 – TheNewswire – Innovotech Inc. (TSXV: IOT; OTCQB: IOTCF) (“Innovotech” or the “Company”), a life sciences services and technology company focused on applied microbiology, analytical chemistry, and regulated laboratory services, today reported its financial results for the three and nine months ended September 30, 2026. All amounts are in Canadian dollars.

The third quarter reflected the actions the Company took earlier in the year to align its cost structure with a lower revenue outlook for 2026. Revenue held steady at $661,762, the Company’s cost base came down significantly, and its net loss narrowed by 40% from the second quarter to $390,335, or $0.01 per share. The improvement built through the quarter as further changes took effect, with a net loss of approximately $24,000 in September.

Gross margin improved to 29.8% from 8.6% in the second quarter. Margins remain below what the Company believes the business can achieve, but they are moving in the right direction. Total costs before grants and tax credits fell 22% from the second quarter to $1.11 million, and general and administrative expenses decreased 24% to $413,276. As revenue grows on this leaner base, the Company expects margins to continue to recover.

Innovotech’s GMP, analytical chemistry and stability testing services had their strongest quarter of 2026, with revenue of $363,112, up 9% from the third quarter of 2025 and 13% from the second quarter. These services now represent more than half of the Company’s revenue and are built on recurring work for a broad base of pharmaceutical, biotechnology, healthcare and industrial clients. The growth reflects consistent, strong customer service and the capabilities the Company has invested in, including additional equipment and clean room capacity for GMP-associated sterility testing.

The Company also strengthened its financial position. Working capital was $712,523 at September 30, 2026, and its current ratio improved to 2.28 from 2.07 on June 30. During the quarter, the Company collected previously unbilled work, financed its MALDI-TOF mass spectrometry system through a sale-and-leaseback that preserved cash, and maintained tight control of expenses and receivables. On October 29, 2026, the Company accepted a commitment letter from ATB Financial for a $500,000 revolving operating facility and a $100,000 corporate credit card facility, and is consolidating its banking with ATB to simplify operations and reduce costs. These steps give the Company added flexibility to manage its cash flows and support its 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.”

The Company is also building new sources of revenue. In August, Innovotech launched InnovoTEST™ hazardous drug wipe testing kits for pharmacies, hospitals and cancer centres, and on November 3, 2026, it signed a distribution agreement with Healthmark, a coast-to-coast Canadian distributor, to bring InnovoTEST™ to hospital, community and long-term care pharmacies across Canada. In contract research, the Company has begun introducing assay services using porcine skin explants, and its preparations toward Good Laboratory Practice (GLP) certification are progressing.

Because the Company continued to make changes through September, its third-quarter results do not yet reflect a full quarter of its reduced cost base. The Company expects the benefit to be more fully reflected in the fourth quarter and remains focused on returning to profitability by growing revenue across its regulated testing services and InnovoTEST™ on a leaner, more efficient platform.

The Company’s unaudited interim consolidated financial statements and MD&A for the three and nine months ended September 30, 2026 are available on SEDAR+ at www.sedarplus.ca and at www.innovotech.ca .

About Innovotech

Innovotech Inc. is a leading life sciences services and technology company specializing in contract research, analytical, and microbial testing within regulated healthcare markets. The Company is a recognized leader in biofilm science and antimicrobial testing and provides advanced laboratory services supporting medical device, pharmaceutical, and industrial product development. Innovotech combines deep scientific expertise with proprietary methodologies and products, including its widely used MBEC Assay® platform for high-throughput antimicrobial and antibiotic testing. Operating through ISO-certified and GMP-accredited laboratories, Innovotech supports clients across multiple sectors and geographies, delivering reliable, decision-enabling data aligned with regulatory expectations such as those of the U.S. Food and Drug Administration and Health Canada. Learn more at https://www.innovotech.ca .

This document may contain forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company’s reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company’s exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management’s assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward- looking statements, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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