Novadaq (NVDQ) 6-K Novadaq Reports 2012 Fourth Quarter and Full Year Financial Results

Exhibit 99.1

For Immediate Release

Novadaq Reports 2012 Fourth Quarter and Full Year Financial Results

Toronto, Ontario—February 7, 2013 —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 fourth quarter and full year ended December 31, 2012. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (U.S.) dollars.

Novadaq reported total revenues for the fourth quarter and full year 2012 of $6.8 million and $23.0 million, respectively, representing increases of 37% and 50% as compared to the same periods in 2011. Growth was due to increased revenue from SPYElite^® and FIREFLY™ procedures and higher SPYElite and FIREFLY system sales to end users.

Fourth quarter and full year 2012 SPY product revenues were $5.9 million and $19.3 million, respectively, representing increases of 48% and 84% compared to the same periods in 2011. Fourth quarter SPY product recurring revenue increased by 67% to $3.0 million compared to $1.8 million reported in Q4-2011.

Fourth quarter gross profit of $4.6 million (67% margin), represents an increase of 56% compared with $2.9 million (59% margin) in Q4-2011, and an increase of 18% compared with $3.9 million (65% margin) in Q3-2012.

Fourth quarter of 2012 operating contribution (cash contributed by operating activities before changes in working capital) was $1.1 million compared with an operating burn of $0.06 million in the fourth quarter of 2011. During the fourth quarter, working capital consumed $1.8 million, and $1.4 million was invested in fixed assets, including $0.9 million to build the SPYElite installed base.

Net earnings of $3.1 million for the fourth quarter of 2012 increased by $5.1 million compared with the $2.0 million net loss in fourth quarter 2011. Fourth quarter 2012 earnings per share were $0.08. Excluding the impact of a non-cash $3.4 million warrants revaluation gain in fourth quarter 2012, loss per share was $0.01.

Cash and cash equivalents were $39.0 million at December 31, 2012, reflecting a decrease of $2.2 million, compared to the cash position as of September 30, 2012.

Novadaq shipped 135 SPYEliteand FIREFLY imaging systems during the fourth quarter of 2012. The combined installed base of SPY technology in the United States now exceeds 700 systems. Penetration into the U.S. breast reconstruction market by the end of Q4-2012 was approximately 13%.

“Both the installed base and utilization of SPY imaging systems are growing as surgeons representing multiple specialties continue to report reduced rates of post-operative complications, and lower patient care costs following procedures involving our technologies,” commented Dr. Arun Menawat, Novadaq’s President and CEO. “To further support Novadaq’s long term growth, the commercial and clinical launches of PINPOINT^® and LUNA™ are progressing as planned.”

Conference Call

Novadaq is pleased to invite all interested parties to participate in a conference call today, Thursday, February 7, 2013, 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 March 7, 2013 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 408022 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 60 peer-reviewed publications demonstrate that the use of SPY imaging during complex surgery, leads to fewer post-operative complications and lower hospital costs.

SPY Imaging Systems are United States Food and Drug Administration 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.

Novadaq Investor and Media Relations Contact:

David C. Martin

Vice President, Corporate Development and Investor Relations

Novadaq Technologies Inc.

905-629-3822 ext: 218

dmartin@novadaq.com

Novadaq Technologies Inc.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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

	As at December 31, 2012			As at December 31, 2011
ASSETS
Current assets
Cash and cash equivalents	$	38,954,181		$	9,633,608
Accounts receivable		4,056,954			2,018,782
Prepaid expenses and other assets		852,674			829,625
Inventories		1,713,577			1,166,417
Non-current assets
Property and equipment, net		10,717,661			6,623,986
Deferred tax assets		170,442			248,640
Intangible assets, net		1,121,808			2,272,434
Total Assets	$	57,587,297		$	22,793,492
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities	$	3,407,329		$	2,485,994
Provisions		85,260			41,300
Deferred revenue		637,864			396,859
Deferred partnership fee revenue		1,300,000			1,300,000
Repayable government assistance		203,148			197,760
Non-current liabilities
Deferred tax liabilities		170,442			248,640
Convertible debentures		4,656,746			4,223,454
Deferred revenue		144,204			188,883
Deferred partnership revenue		3,291,666			4,591,666
Repayable government assistance		17,946			214,402
Shareholder warrants		13,002,930			8,278,105
Total Liabilities	$	26,917,535		$	22,167,063
Shareholders’ Equity
Share capital	$	139,946,563		$	98,695,023
Contributed surplus		7,908,224			6,772,298
Equity component of convertible debentures		1,454,353			1,454,353
Deficit		(118,639,378	)		(106,295,245	)
Total Shareholders’ Equity	$	30,669,762		$	626,429
Total Liabilities and Shareholders’ Equity	$	57,587,297		$	22,793,492
Total number of common shares outstanding		40,226,243			32,769,462

Novadaq Technologies Inc.

CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(expressed in U.S. dollars, except per share amounts)

	For the three months ended						For the twelve months ended
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Product sales	$	5,770,240		$	4,404,981		$	19,037,096		$	12,925,953
Royalty revenue		545,523			116,797			1,849,668			395,398
Partnership fee revenue		325,000			241,667			1,300,000			841,667
Service revenue		204,918			231,632			802,296			1,129,423
Total revenues		6,845,681			4,995,077			22,989,060			15,292,441
Cost of sales		2,281,116			2,072,642			8,537,408			6,634,206
Gross profit		4,564,565			2,922,435			14,451,652			8,658,235
Selling and distribution expenses		1,357,015			1,348,328			4,926,376			5,375,612
Research and development expenses		1,640,963			1,185,349			5,958,499			4,610,694
Administrative expenses		1,601,586			1,194,632			6,573,484			4,550,971
Write-down of equipment		—			—			—			314,213
Write-down of inventory		—			(95	)		57,540			15,287
Total operating expenses		4,599,564			3,728,214			17,515,899			14,866,777
Loss from operations		(34,999	)		(805,779	)		(3,064,247	)		(6,208,542	)
Finance costs		(180,405	)		(169,905	)		(707,500	)		(679,079	)
Finance income		20,969			1,841			61,798			15,421
Warrants revaluation adjustment		3,389,066			(1,029,310	)		(8,558,323	)		(3,306,128	)
Gain on investment								25,000			25,000
Loss from operations before income taxes		3,194,631			(2,003,153	)		(12,243,272	)		(10,153,328	)
Income tax expense		(100,861	)		—			(100,861	)		—
Net loss and comprehensive loss for the year	$	3,093,770		($	2,003,153	)	($	12,344,133	)	($	10,153,328	)
Basic income (loss) and comprehensive income (loss) per share for the period		0.08			(0.05	)	($	0.32	)	($	0.32	)
Diluted loss and comprehensive loss per share for the period		—			(0.05	)	($	0.32	)	($	0.32	)

Novadaq Technologies Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(expressed in U.S dollars)

	For the three months ended						For the twelve months ended
	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
OPERATING ACTIVITIES
Loss and comprehensive loss for the year	$	3,093,770		($	2,003,153	)	($	12,344,133	)	($	10,153,328	)
Items not affecting cash
Depreciation of property and equipment		640,432			331,761			2,142,633			1,050,929
Amortization of intangible assets		284,191			294,753			1,150,626			1,119,691
Stock-based compensation		395,306			212,314			1,316,683			876,767
Imputed interest on convertible debentures		112,335			100,875			433,292			398,448
Warrants revaluation adjustment		(3,389,066	)		1,029,310			8,558,323			3,306,128
Write-down of equipment		—		$	0			—			314,213
Write-down of inventory		—			(95	)		57,540			15,287
Gain on investment		—			(25,000	)		(25,000	)		(25,000	)
		1,136,968			(59,235	)		1,289,964			(3,096,865	)
Changes in non-cash working capital
Increase in accounts receivable		(1,160,376	)		(85,114	)		(2,038,172	)		(583,818	)
Increase in inventories		161,195			(127,569	)		(604,700	)		(857,810	)
Decrease in prepaid expenses and other assets		3,658			261,516			55,149			259,614
Increase (decrease) in accounts payable		(1,059,141	)		(1,222,116	)		839,696			(588,099	)
Increase in deferred revenue		262,083			328,949			263,336			346,994
Net change in non-cash working capital balances related to operations		(1,792,581	)		(844,334	)		(1,484,691	)		(1,423,119	)
(Decrease) increase in long-term deferred revenue		(316,902	)		2,350,419			(1,325,602	)		1,656,607
Cash used in operating activities		(972,515	)		1,446,850			(1,520,329	)		(2,863,377	)
INVESTING ACTIVITIES
Purchase of property and equipment		(1,592,361	)		(2,163,850	)		(6,511,829	)		(6,545,062	)
Disposal of property and equipment		185,666			65,538			275,521			213,492
Purchase of Transmyocardial Revascularization (“TMR”) business		—			—			—			(1,000,000	)
Redemption of long-term investment		—			25,000			25,000			25,000
Cash used in investing activities		(1,406,695	)		(2,073,312	)		(6,211,308	)		(7,306,570	)
FINANCING ACTIVITIES
Proceeds from issuance of common shares and warrants		—			—			40,336,250			15,273,401
Transaction costs paid relating to issuance of common shares and warrants		—			—			(3,389,352	)		(998,207	)
Repayable government assistance		(53,726	)		(135,677	)		(191,068	)		(95,513	)
Proceeds from exercise of options		10,209			64,412			87,492			42,664
Proceeds from exercise of warrants		202,895			—			202,895			—
Cash provided by financing activities		159,378			(71,265	)		37,046,217			14,222,345
Net increase in cash and cash equivalents		(2,219,832	)		(697,727	)		29,314,580			4,052,398
Net foreign exchange difference		(4,011	)		27,587			5,993			(16,197	)
Cash and cash equivalents at beginning of year		41,178,024			10,303,748			9,633,608			5,597,407
Cash and cash equivalents at end of year	$	38,954,181		$	9,633,608		$	38,954,181		$	9,633,608