Novadaq (NVDQ) 6-K Novadaq Reports Third Quarter 2012 Financial Results

Exhibit 99.1

For Immediate Release

Novadaq Reports Third Quarter 2012 Financial Results

Toronto, Ontario—November 2, 2012 –Novadaq^® Technologies Inc. (“Novadaq” or the “Company”) (NASDAQ: NVDQ, TSX: NDQ,), a developer of clinically-relevant fluorescence imaging solutions for use in surgical procedures, today announced financial results for its third quarter ended September 30, 2012. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (U.S.) dollars.

Novadaq reported total third quarter 2012 revenue of $6.0 million, representing an increase of 39% as compared to third quarter of 2011. Revenue growth was driven by continued adoption of SPYElite^® and FIREFLY™ procedures and higher SPYElite and FIREFLY system sales to end users.

Third quarter of 2012 recurring revenue for Novadaq’s SPY businesses increased by 99% year-over-year to $2.9 million, and increased 16% sequentially from $2.5 million in the second quarter of 2012.

Third quarter of 2012 operating contribution (cash contributed by operating activities before changes in working capital) was $0.1 million compared with an operating burn of $0.4 million in the third quarter of 2011. During the third quarter, working capital contributed $0.2 million, and $0.8 million was invested in fixed assets, including $0.7 million to build the SPYElite installed base.

Net loss of $9.3 million for the third quarter of 2012 increased by $8.0 million compared with the $1.3 million net loss in third quarter 2011. Third quarter of 2012 loss per share was $0.23. Excluding the impact of a non-cash $8.0 million warrants revaluation expense in third quarter 2012, loss per share was $0.03, compared with $0.05 in third quarter 2011.

Cash and cash equivalents were $41.2 million at September 30, 2012, reflecting a decrease of $0.5 million, compared to the cash position as of June 30, 2012.

Novadaq shipped 108 imaging systems and approximately 4,600 SPYEliteand FIREFLY procedures kits during the third quarter of 2012. The combined installed base of SPY technology in the United States now exceeds 600 systems.

“We continue to see evidence that SPY technology is being embraced by surgeons across multiple specialties”, commented Dr. Arun Menawat, Novadaq’s President and CEO. “Recruitment into the PILLAR™ multi-center clinical study in patients undergoing low anterior colon resection surgery using our new product, PINPOINT^®, is progressing at seven participating sites.”

Conference Call

Novadaq is pleased to invite all interested parties to participate in a conference call today, Friday, November 2, 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 December 2, 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 conference identification number 402238 when prompted.

The call will be archived for 90 days on the Company’s website at http://www.novadaq.com 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 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 growth.

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 www.sedar.com, 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 otherwise.

Investor and Media Relations

Company:

David C. Martin

Vice President, Corporate Development and Investor Relations

Novadaq Technologies Inc.

905-629-3822 ext: 218

dmartin@novadaq.com

Novadaq Technologies Inc.

INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited)

(expressed in U.S. dollars, except common shares outstanding)

	As at September 30, 2012			As at December 31, 2011
ASSETS
Current assets
Cash and cash equivalents	$	41,178,024		$	9,633,608
Accounts receivable		2,896,578			2,018,782
Prepaid expenses and other assets		858,373			829,625
Inventories		2,954,544			1,755,729
Non-current assets
Property and equipment, net		8,871,626			6,034,674
Deferred tax assets		168,401			248,640
Intangible assets, net		1,405,999			2,272,434
Total Assets	$	58,333,545		$	22,793,492
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	4,447,354		$	2,485,994
Provisions		58,620			41,300
Deferred revenue		402,419			396,859
Deferred partnership fee revenue		1,300,000			1,300,000
Repayable government assistance		188,449			197,760
Non-current liabilities
Deferred tax liabilities		168,401			248,640
Convertible debentures		4,544,411			4,223,454
Deferred revenue		161,276			188,883
Deferred partnership fee revenue		3,616,666			4,591,666
Repayable government assistance		86,371			214,402
Shareholder warrants		19,643,033			8,278,105
Total Liabilities	$	34,617,000		$	22,167,063
Shareholders’ Equity
Share capital	$	136,476,748		$	98,695,023
Contributed surplus		7,518,592			6,772,298
Equity component of convertible debentures		1,454,353			1,454,353
Deficit		(121,733,148	)		(106,295,245	)
Total Shareholders’ Equity	$	23,716,545		$	626,429
Total Liabilities and Shareholders’ Equity	$	58,333,545		$	22,793,492
Common shares outstanding		39,903,594			32,769,462

Novadaq Technologies Inc.

INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Unaudited)

(expressed in U.S. dollars)

	For the three months ended						For the nine months ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
Product sales	$	5,101,480		$	3,740,007		$	13,266,856		$	8,520,972
Royalty revenue		349,812			139,851			1,304,145			278,601
Partnership fee revenue		325,000			200,000			975,000			600,000
Service revenue		208,207			231,553			597,378			897,791
Total revenues		5,984,499			4,311,411			16,143,379			10,297,364
Cost of sales		2,123,048			1,855,030			6,256,292			4,561,564
Gross profit		3,861,451			2,456,381			9,887,087			5,735,800
Selling and distribution costs		1,289,035			1,352,588			3,569,361			4,027,284
Research and development expenses		1,777,474			1,106,870			4,317,536			3,425,345
Administrative expenses		1,863,593			1,102,984			4,971,898			3,356,339
Write-down of equipment		—			314,213			—			314,213
Write-down of inventory		57,540			15,382			57,540			15,382
Total operating expenses		4,987,642			3,892,037			12,916,335			11,138,563
Loss from operations		(1,126,191	)		(1,435,656	)		(3,029,248	)		(5,402,763	)
Finance costs		(178,673	)		(170,785	)		(527,095	)		(509,174	)
Finance income		25,407			2,876			40,829			13,580
Warrants revaluation adjustment		(8,038,030	)		325,766			(11,947,389	)		(2,276,818	)
Gain on investment		25,000			—			25,000			25,000
Loss and comprehensive loss for the period	($	9,292,487	)	($	1,277,799	)	($	15,437,903	)	($	8,150,175	)
Basic and diluted loss and comprehensive loss per share for the period	($	0.23	)	($	0.04	)	($	0.41	)	($	0.26	)

Novadaq Technologies Inc.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(expressed in U.S. dollars)

	For the three months ended						For the nine months ended
	September 30, 2012			September 30, 2011			September 30, 2012			September 30, 2011
OPERATING ACTIVITIES
Loss and comprehensive loss for the period	($	9,292,487	)	($	1,277,799	)	($	15,437,903	)	($	8,150,175	)
Items not affecting cash
Depreciation of property and equipment		588,023			286,898			1,502,201			719,168
Amortization of intangible assets		284,190			294,877			866,435			824,938
Stock-based compensation		305,753			206,519			921,377			664,453
Imputed interest on convertible debentures		109,617			101,640			320,957			297,573
Warrants revaluation adjustment		8,038,030			(325,766	)		11,947,389			2,276,818
Recovery of investment		(25,000	)		—			(25,000	)		—
Write-down of equipment		—			314,213			—			314,213
Write-down of inventory		57,540			15,382			57,540			15,382
		65,666			(384,036	)		152,996			(3,037,630	)
Changes in non-cash working capital
Decrease (increase) in accounts receivable		35,813			525,262			(877,796	)		(498,704	)
(Increase) decrease in inventories		(670,885	)		359,287			(1,256,355	)		(912,027	)
Decrease (increase) in prepaid expenses and other assets		265,506			(548,877	)		51,491			(1,902	)
Increase (decrease) in accounts payable		929,700			990,087			1,898,837			634,017
(Decrease) increase in deferred revenue		(18,382	)		(96,062	)		1,253			18,045
Net change in non-cash working capital balances related to operations		541,752			1,229,697			(182,570	)		(760,571	)
Decrease in long-term deferred revenue		(314,477	)		(240,472	)		(1,008,700	)		(693,812	)
Cash provided by (used in) operating activities		292,941			605,189			(1,038,274	)		(4,492,013	)
INVESTING ACTIVITIES
Purchase of property and equipment		(761,809	)		(1,705,690	)		(4,429,008	)		(4,051,472	)
Disposals of property and equipment		1,395			—			89,855			—
Purchase of TMR business		—			—			—			(1,000,000	)
Redemption of long-term investment		25,000			—			25,000			—
Cash used in investing activities		(735,414	)		(1,705,690	)		(4,314,153	)		(5,051,472	)
FINANCING ACTIVITIES
Proceeds from issuance of common shares		—			—			40,336,250			15,273,401
Transaction costs paid relating to issuance of common shares		—			—			(3,389,352	)		(998,207	)
Repayment of government assistance		(39,985	)		(21,748	)		(137,342	)		40,164
Proceeds from exercise of options		3,457			—			77,283			(21,748	)
Cash (used in) provided by financing activities		(36,528	)		(21,748	)		36,886,839			14,293,610
Net (decrease) increase in cash and cash equivalents		(479,001	)		(1,122,249	)		31,534,412			4,750,125
Impact of foreign exchange on cash and cash equivalents		10,355			(77,685	)		10,004			(43,784	)
Cash and cash equivalents at beginning of period		41,646,670			11,503,682			9,633,608			5,597,407
Cash and cash equivalents at end of period	$	41,178,024		$	10,303,748		$	41,178,024		$	10,303,748