Innovus Pharma Turns Cash Flow Positive With Over $1 Million in Revenues for the Second Quarter 2016

SAN DIEGO, CA--(Marketwired - Aug 9, 2016) -  Innovus Pharmaceuticals, Inc., ("Innovus Pharma") www.innovuspharma.com (OTCQB: INNV) announced today that the Company turned cash flow positive with over $256,000 in cash provided by operations which is ahead of its projected timelines, due to higher revenues from the sale of its Beyond Human and Innovus Pharma products.

"Becoming operationally cash flow positive from the second quarter and ahead of the timeline projected is a major financial achievement for the Company and a big step towards our projected profitability in 2017. We have now fully integrated the Beyond Human sales and marketing platform and are reaping the benefits of this acquisition," said Dr. Bassam Damaj, Innovus Pharma President & CEO.

2016 Business Outlook

"Based on the huge success we are experiencing with our sales, we believe we are well positioned to achieve our projected $5M in revenues for 2016 without any revenue from our long awaited product FlutiCare™, currently under review by the FDA," Dr. Damaj stated. "To date we have exceeded our commercial expectations and with the projected launch of Sensum+®, RecalMax™ and Xyralid® in the second half of 2016 under the Beyond Human sales platform, we believe that revenues will continue to increase through the balance of 2016 and into 2017 and exceed our projections." he added.

Q2 Financial Results for the three months ended June 30, 2016:

• Net revenues totaled over $1.0 million, $880,000 of which came from the sale of Beyond Human and Vesele® products. An increase of $836,000 as compared to net revenues of $183,000 for the same period in 2015,.
• Gross profit on product sales was $757,000 or 74% of net revenues, compared to gross profit on product sales of $114,000 or 64% of net revenues, for the same period in 2015. The increase in gross profit on product sales was primarily due to sales from Beyond Human products.
• Total operating expenses increased 51% to $1,462,000 from $966,000 in the same period in 2015. Selling, general and administrative expenses for the second quarter of 2016 increased primarily due to increased sales and marketing efforts for our products.
• Net loss was $ 4,360,340 or a loss of $0.05 per share compared with a net loss of $864,000 or a loss of $0.02 per share for the same period in 2015. The increase in the net loss compared to the same period in 2015 is a result of the non-cash charge related to the financing.

Highlights for six months, ending June 30, 2016, included: