Novadaq@ Technologies Inc. ("Novadaq" or the "Company") (TSX:

NDQ)(NASDAQ: NVDQ), a developer of clinically-relevant fluorescence

imaging solutions for use in surgical procedures, today announced

financial results for its first quarter ended March 31, 2012. Unless

otherwise indicated, all dollar amounts in this press release are

expressed in United States (U.S.) dollars.

"We are focused on building a sustainable business model based on

partnering our SPY fluorescence imaging technology for certain

surgical applications with market leading companies and

commercializing, on our own, new systems such as PINPOINT@ for

endoscopic surgery," commented Dr. Arun Menawat, Novadaq's President

and CEO.

"The combined installed base of SPY technology in the United States

now exceeds 400 systems, and 3,100 open SPY procedure kits were

shipped during the first quarter of 2012, increasing SPY recurring

revenues by 180% year-over-year. Additionally, with the recent

completion of the $40.3 million equity financing, and by sponsoring a

multi-center clinical trial called PILLAR?, we have taken the initial

steps towards the commercialization of PINPOINT," added Dr. Menawat.

First Quarter Corporate Highlights

-- Novadaq shipped 120 SPY Elite@ and FIREFLY systems during the first

quarter. At March 31, 2012, the number of US hospitals with installed

SPY and FIREFLY systems exceeded 400.

-- 3,100 SPY kits for open surgical procedures were shipped to hospitals

during the first quarter, representing a 163% increase over the same

period in 2011, and a 15% sequential increase compared with Q4-2011.

-- In January, Novadaq named MAQUET Cardiovascular as the exclusive US

distributor of Novadaq's CO2 Heart Laser products.

-- In March, Novadaq announced that its common shares were approved for

listing on the NASDAQ Global Market (NASDAQ) under the ticker symbol


-- Also in March, the Company announced that the Centers for Medicare &

Medicaid Services established SPY Vascular Angiography as a new

reimbursable service under the Hospital Outpatient Prospective Payment

System, effective April 1, 2012.

-- Prior to the end of the quarter, Novadaq initiated the multi-center

PILLAR (Perfusion Assessment in Laparoscopic Left Anterior Resection)

clinical trial, which will study the use of PINPOINT endoscopic

fluorescence imaging in up to 150 patients undergoing laparoscopic left

colectomies. Details of the study can be found at:, searching identifier NCT01560377.

Financial Highlights

-- Total revenues in the first quarter were $4.8 million, a 103% increase

compared to $2.3 million in the same period in 2011, due mainly to

increased sales of systems and procedure kits across both of our

commercial SPY businesses (SPY Elite and FIREFLY). Total revenues

decreased sequentially by $228,000 in comparison to Q4-2011 due to

seasonality in SPY Elite capital sales, and lower TMR revenues.

-- First quarter recurring revenues for our SPY businesses totaled $2.1

million, representing year-over-year growth of 180% compared to Q1-2011,

and sequential growth of 16% compared to Q4-2011.

-- Operating burn (cash used in operating activities before changes in

working capital) was close to break-even at $0.08 million in the first

quarter. Excluding the impact of NASDAQ registration fees, operations

would have contributed $0.2 million. This compares with operating burns

of $1.8 million for the same period in 2011, and $0.03 million in Q4-

2011. Working capital contributed $0.6 million during the first quarter

2012, and $1.9 million was invested, including $1.8 million to build the

SPY Elite installed base.

-- At March 31, 2012, cash and cash equivalents totaled $7.9 million, and

32.8 million basic shares were outstanding. Subsequent to the end of the

quarter, the Company raised $40.3 million by way of an underwritten

equity offering (net proceeds approximately $36.9 million), issuing

7,015,000 shares at a price of $5.75 per share.

Conference Call

Novadaq is pleased to invite all interested parties to participate in

a conference call today, Friday, May 4, 2012, at 8:30 a.m. Eastern

Time during which the results will be discussed.

Those wishing to access the live conference call by telephone should

dial 1-877-407-8031 (within Canada and the United States) or

1-201-689-8031 (international callers) several minutes prior to the

beginning of the call. A telephonic replay of the conference call will

be made available until midnight on June 4, 2012 and can be accessed

by dialing 1-877-660-6853 (within Canada and the United States) or

1-201-612-7415 (international callers) and entering the account number

286 and the conference identification number 388170 when prompted.

The call will be archived for 90 days on the Company's website at under the "Events" tab

in the Investors section. In addition, a replay of the call will be

available for download to a portable audio player or computer, as an

MP3 or podcast file, at the same location on Novadaq's website.

About Novadaq Technologies Inc.

Enabling surgeons with clinically-relevant, innovative fluorescence

imaging solutions to enhance the lives of patients and their surgeons,

while reducing health care costs, is Novadaq's global mission. SPY

fluorescence imaging technology provides surgeons with real-time

visualization, leading to improved outcomes and reduced costs without

exposing the patient to radiation. More than 50 peer-reviewed

publications demonstrate that the use of SPY during complex surgery,

leads to fewer post-operative complications and lower hospital costs.

The SPY Imaging System is United States Food and Drug Administration

("FDA") 510(k) cleared for use for use in seven surgical specialties.

The endoscopic version of SPY called PINPOINT?, combines the

capabilities of SPY Imaging with high definition ("HD") visible light

visualization offered by conventional endoscopes. Our unique business

model of partnering with market-leading companies to drive adoption of

our fluorescence imaging technology, while building our own commercial

infrastructure is the cornerstone of our corporate strategy for


Forward-Looking Statements

Certain statements included in this press release may be considered

forward-looking. Such statements involve known and unknown risks,

uncertainties and other factors that may cause actual results,

performance or achievements to be materially different from those

implied by such statements, and therefore these statements should not

be read as guarantees of future performance or results. All

forward-looking statements are based on Novadaq's current beliefs as

well as assumptions made by and information currently available to

Novadaq and relate to, among other things, the Company's strategy,

strategic goals, research and development activities, research and

clinical testing outcomes, taxes, capital expenditures, future

operations, future financial position, future revenues/results,

projected costs, prospects and plans and objectives of management.

Readers are cautioned not to place undue reliance on these

forward-looking statements, which speak only as of the date of this

press release. Due to risks and uncertainties, including the risks and

uncertainties identified by Novadaq in its public securities filings

available at, actual events may

differ materially from current expectations. Novadaq disclaims any

intention or obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or


Novadaq Technologies Inc.


(expressed in U.S. dollars)

As at As at

March 31, December 31,

2012 2011



Current assets

Cash and cash equivalents $ 7,894,253 $ 9,633,608

Accounts receivable 2,145,413 2,018,782

Prepaid expenses and other 1,508,354 829,625

Inventories 2,249,449 1,755,729

Non-current assets

Property and equipment 7,500,057 6,034,674

Deferred tax assets 222,546 248,640

Intangible assets 1,977,681 2,272,434


Total Assets $ 23,497,753 $ 22,793,492





Current liabilities

Accounts payable and accrued liabilities 4,341,377 $ 2,485,994

Provisions 41,620 41,300

Deferred revenue 450,238 396,859

Deferred partnership fee revenue 1,300,000 1,300,000

Repayable government assistance 202,556 197,760

Non-current liabilities

Deferred tax liabilities 222,546 248,640

Convertible debentures 4,327,830 4,223,454

Deferred revenue 164,357 188,883

Deferred partnership fee revenue 4,266,666 4,591,666

Repayable government assistance 169,175 214,402

Shareholder warrants 11,876,354 8,278,105


Total Liabilities $ 27,362,719 $ 22,167,063


Shareholders' (Deficiency) Equity

Share capital $ 98,825,650 $ 98,695,023

Contributed surplus 6,895,159 6,772,298

Equity component of convertible debentures 1,454,353 1,454,353

Deficit (111,040,128) (106,295,245)


Total Shareholders' (Deficiency) Equity $ (3,864,966) $ 626,429


Total Liabilities and Shareholders'

(Deficiency) Equity $ 23,497,753 $ 22,793,492



Novadaq Technologies Inc.



(expressed in U.S. dollars)

For the three months ended

March 31, March 31,

2012 2011


Product sales $ 3,654,045 $ 1,735,892

Royalty revenue 608,083 -

Deferred licensing revenue 325,000 200,000

Service revenue 180,247 404,938


Total revenues $ 4,767,375 $ 2,340,830

Cost of sales 2,045,537 1,257,057


Gross margin $ 2,721,838 $ 1,083,773


Selling and distribution costs $ 1,063,487 $ 1,275,219

Research and development expenses 1,161,731 1,048,128

Administrative expenses 1,470,950 1,112,784


Total operating expenses $ 3,696,168 $ 3,436,131


Loss from operations before the following $ (974,330) $ (2,352,358)

Finance costs $ (172,731) $ (167,578)

Finance income 427 7,085

Shareholder warrants revaluation adjustment (3,598,249) 4,307

Gain on investment - 25,000


Loss and comprehensive loss for the period $ (4,744,883) $ (2,483,544)



Basic and diluted loss and comprehensive loss

per share for the period $ (0.15) $ (0.09)



Novadaq Technologies Inc.



(expressed in U.S. dollars)

For the three months ended

March 31, March 31,

2012 2011



Loss and comprehensive loss for the period $ (4,744,883) $ (2,483,544)

Items not affecting cash

Depreciation of property and equipment 418,182 192,210

Amortization of intangible assets 294,753 235,183

Stock-based compensation 253,488 205,020

Finance costs, including imputed interest

on convertible debentures 104,376 96,760

Warrants revaluation adjustment 3,598,249 (4,307)


$ (75,835) $ (1,758,678)


Changes in non-cash working capital balances

(Decrease) increase in deferred revenue $ 40,387 323,772

(Increase) decrease in accounts receivable (126,631) 322,895

Increase in inventories (493,720) (799,410)

Increase in accounts payable and accrued

liabilities 1,845,432 627,129

Decrease (increase) in prepaid expenses

and other (652,635) 438,812


Net change in non-cash working capital

balances related to operations $ 612,833 $ 913,198


(Decrease) increase in long term deferred

revenue (357,650) (239,148)


Cash provided by (used in) operating

activities $ 179,348 $ (1,084,628)


Additions to property and equipment $ (1,913,282) $ (749,265)

Disposals of property and equipment 29,717 27,409

Purchase of TMR business - (1,000,000)


Cash used in investing activities $ (1,883,565) $ (1,721,856)



Issuance of common shares and warrants - $ 15,278,447

Transaction costs of common shares and

warrants - (998,207)

Repayable government assistance $ (40,431) -


Cash (used in) provided by financing

activities $ (40,431) $ 14,280,240


Net (decrease) increase in cash and cash

equivalents during the period $ (1,744,648) $ 11,473,756

Net foreign exchange difference 5,293 38,775

Cash and cash equivalents at beginning of

period 9,633,608 5,597,407


Cash and cash equivalents at end of period $ 7,894,253 $ 17,109,938