Executive Summary

Revenue rose 14% year over year to $3.89M, driven by product sales; gross profit increased to $1.94M and gross margin expanded to ~50.0%. Versus the prior reported quarter (Q3 FY2023), revenue grew ~18% from $3.29M. EPS was $(0.28) versus $(1.16) in the prior-year quarter and $(0.01) in Q3 FY2023 .
Net loss widened to $(4.68)M as operating expenses rose 32% due largely to stock issued for services and cashless warrant exercises; other expense of $0.65M also weighed on results .
Segment mix improved: Product manufacturing and development sales more than doubled year over year ($1.77M vs $0.79M), while healthcare services were modestly higher (+1.2%) .
Liquidity remains tight (cash $1.64M; operating cash flow $(2.15)M), with management emphasizing non-dilutive financing (Mast Hill/FirstFire notes, $70M instrument, Ophir Collection purchase) and noting going-concern risks in the 10-Q .
Potential stock catalysts: progress on monetizing the Ophir Collection ($60M), execution on non-traditional financing plans, and leadership changes (new President to drive manufacturing margin improvement) .

What Went Well and What Went Wrong

Product-led growth: Product manufacturing and development revenue rose to $1.77M, up from $0.79M; gross margin expanded to ~50.0% on higher product mix .
CEO reiterated progress on non-traditional financing to support growth across three pillars, citing the $70M instrument, Ophir Collection acquisition, and gold-backed bond collateral transfer (“foundational capital and repayment terms necessary to support and accelerate” the model) .
Financing derivatives remeasurement added non-operating benefit: change in fair value of derivative liability recorded as a $0.59M gain in the quarter .

Profitability deterioration: Net loss widened to $(4.68)M and operating loss to $(3.32)M, driven by a 32% increase in operating expenses (stock issued for services and cashless warrant exercises) .
Other expense of $0.65M (related to a repayment to a former customer) increased non-operating losses, and amortization of debt discount remained elevated at $1.08M .
Liquidity pressure: Operating cash flow was $(2.15)M; management disclosed substantial doubt about going concern absent external financing/asset monetization .

Metric	Q2 2023	Q3 2023	Q1 2024
Revenue ($USD)	$2,556,509	$3,292,933	$3,891,218
Gross Profit ($USD)	$970,903	$1,314,094	$1,944,018
Gross Margin (%)	38.0% (calc from 92:5)	39.9% (calc from 84:6)	50.0% (calc from 49:6)
Operating Income (Loss) ($USD)	$(1,786,810)	$(1,430,418)	$(3,317,637)
Net Income (Loss) ($USD)	$(4,621,355)	$(1,497,330)	$(4,680,343)
Diluted EPS ($USD)	$(0.06)	$(0.01)	$(0.28)

Segment sales (Q1 FY2024 vs Q1 FY2023):

Segment	Q1 2023 Sales	Q1 2024 Sales
Healthcare services ($USD)	$2,021,213	$2,044,510
Product manufacturing and development ($USD)	$790,478	$1,768,458
Corporate ($USD)	$607,589	$78,250

Selected KPIs:

KPI	Q1 2024
Cash and Equivalents ($USD)	$1,640,007
Total Assets ($USD)	$37,244,384
Total Liabilities ($USD)	$13,960,336
Stockholders’ Equity ($USD)	$23,284,048
Cash from Operations (Quarter) ($USD)	$(2,152,358)
Accounts Receivable, net ($USD)	$2,636,174

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q1 FY2024	None provided	None provided	Maintained (no formal guidance)
Margins/OpEx/Tax/etc.	FY/Q1 FY2024	None provided	None provided	Maintained (no formal guidance)

Management did not issue quantitative guidance; focus remained on financing initiatives and product commercialization .

(No earnings call transcript available for Q1 FY2024) [List returned 0 documents].

Topic	Previous Mentions (Q2 FY2023 and Q3 FY2023)	Current Period (Q1 FY2024)	Trend
Non-dilutive financing/structured capital	Announced $70M unsecured 15-year instrument; conversions and new promissory notes (Mast Hill, FirstFire)	Continued emphasis on closing non-traditional financing (70M instrument; Ophir Collection; gold-backed bond collateral transfer)	Intensifying focus on asset monetization and structured capital
Product sales trajectory	Declines cited from outsourced product sales and IoNovo; Q2 revenue down; Q3 revenue down vs prior year	Product manufacturing and development revenue sharply higher; overall revenue up 14% YoY	Improving mix toward products
Healthcare services	+9% YoY in Q2; −8% YoY in Q3	+1.2% YoY growth	Stabilizing
Nasdaq compliance	Not highlighted	Regained compliance with minimum bid price (Nov 22, 2023)	Compliance regained
Leadership/operations	Not highlighted	New President appointed to improve manufacturing efficiency and margins	Strengthening operational focus

“The Company remains committed to the commercialization of its proprietary product offerings and the expansion and delivery of its essential services and solutions… These pending transactions would allow the Company access to the foundational capital and repayment terms necessary to support and accelerate the further implementation and growth of Novo’s three-pillar business model.” — CEO Robert Mattacchione .
Emphasis on closing: (i) $70M unsecured, non-dilutive 15-year instrument; (ii) acquisition and monetization of the Ophir Collection; and (iii) collateral transfer of a $1B gold-backed bond for monetization .

No Q1 FY2024 earnings call transcript was found; therefore, Q&A themes and clarifications are not available [List returned 0 documents].

S&P Global consensus estimates for NVOS Q1 FY2024 were unavailable due to missing Capital IQ company mapping for NVOS; comparisons to Wall Street consensus cannot be made at this time (tool error indicates no CIQ mapping). Values retrieved from S&P Global would normally be used, but were unavailable for NVOS.

Product momentum: Product manufacturing and development drove revenue growth and margin expansion; sustained execution here is critical to improving profitability .
Expense control needed: Operating expenses rose 32% YoY, largely due to stock-based service costs and warrant exercises; tightening OpEx is essential to narrowing losses .
Liquidity is constrained: Cash was $1.64M and operating cash flow was negative $(2.15)M; the 10-Q raises going-concern risks absent financing/monetization progress .
Financing/monetization catalysts: Success converting announced instruments (70M note, Ophir Collection monetization, gold-backed bond) could materially alter liquidity trajectory and sentiment .
Segment mix shift: Continued emphasis on products could sustain gross margin improvements; monitor segment gross profits and product costs each quarter .
Execution focus: Appointment of a new President with manufacturing expertise targets operational efficiency and margins; watch for measurable OpEx/product COGS improvements .
Trading lens: Near-term moves likely hinge on financing closings and incremental product revenue traction; lack of consensus estimates reduces typical “beat/miss” signaling, so operational and financing updates may dominate stock reaction .