Intelligent Bio Solutions Reports Fiscal 2025 First Quarter Financial Results and Operational Highlights
Quarterly revenue increased 10% year-on-year and 20% quarter-on-quarter, marking four consecutive quarters of year-on-year growth
Higher-margin, recurring cartridge revenue surpassed reader revenue as primary driver
Completed in-clinic portion of FDA 510(k) clinical study plan, on track to submit to FDA by year-end
Expanded distribution network in Saudi Arabia
Initial review of PK study results show fingerprint sweat strongly aligns to blood and oral fluid, results expected in November
NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Intelligent Bio Solutions Inc. (Nasdaq: INBS) ("INBS" or the "Company"), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today announced its financial results for the fiscal first quarter ended September 30, 2024, and provided a business update.
"We've kicked off another strong year with 10% growth in our first quarter compared to the previous year, marking our fourth consecutive quarter of year-on-year growth. As our active accounts continue to grow, so do our cartridge sales, which have surpassed our reader revenue. This shift improves our margins and strengthens our business foundation," said Harry Simeonidis, President and CEO of Intelligent Bio Solutions. "With clinical testing now complete, we're on track to submit our 510(k) package to the FDA by the end of the calendar year. We look forward to sharing our clinical results soon, with our pharmacokinetic study ("PK study") results expected in November. These findings are anticipated to confirm sweat's viability as a drug screening method."
"Our focus on higher-margin cartridge sales and strategic global expansion is creating a solid foundation for revenue growth and financial stability," added Spiro Sakiris, CFO of Intelligent Bio Solutions. "Our expanding distributor network enables us to meet rising global demand. With a 15% increase in international sales, we are on track to achieve our strategic goal of broadening our global reach and supporting workplace safety worldwide."
Throughout the quarter, INBS announced the completion of the in-clinic portion of its FDA 510(k) clinical study plan. An initial review of the PK study data shows that fingerprint sweat aligns strongly with blood and oral fluid, demonstrating its reliability for drug detection.
With FDA 510(k) submission planned in the fourth quarter of this calendar year and entry into the US market planned for the first half of the 2025 calendar year, INBS is capitalizing on the growing drug screening products market, estimated to have a total addressable market of $15 billion by 2030(1) .
Fiscal First Quarter & Recent Operational Highlights:
-- On September 27, 2024, the Company announced the successful completion of
in-clinic testing proposed to the FDA earlier this year in the Company's
clinical study plan. The clinical studies are a key element of the
Company's 510(k) submission, designed to demonstrate the accuracy and
reliability of its sweat-based testing method.
-- The Company secured 22 new accounts throughout the quarter, adding to its
400+ active customer accounts in 19 countries. These new accounts have a
combined total employee headcount of approximately 152,000 employees.*
-- On August 1, 2024, the Company announced its partnership with CenExcel to
perform a method comparison study as part of the Company's FDA 510(k)
clinical study plan.
-- On July 24, 2024, the Company announced QabasTech as its exclusive
distributor in Saudi Arabia, marking further growth for the Company in
the country.
-- On July 18, 2024, the Company announced the successful completion of
biocompatibility testing of its Intelligent Fingerprinting Drug Screening
System, a pivotal phase in the clinical study plan required for FDA
510(k) regulatory clearance.
Financial Results for the Fiscal 2025 First Quarter:
-- Total cash and cash equivalents on hand as of September 30, 2024, was
$3.99 million.
-- Shareholders equity as of September 30, 2024, was $5.95 million.
-- Total revenues for the fiscal first quarter were $0.87 million, an
increase of 10% year-on-year and 20% quarter-on-quarter.
-- Net loss for the fiscal first quarter was $2.70 million, including
non-cash depreciation and amortization and share-based expenses of $0.49
million.
Revenue from sales of goods increased by $76,193 to $872,287 from $796,094 for the three months ended September 30, 2024, compared to the same period in 2023. This is due to the expansion of the customer base, both in the pre-existing markets and expansion into new regions. The Company expects this trend to continue as it expands into new markets in the future.
Net loss attributable to the Company increased by $0.27 million from $2.43 million to $2.70 million for the three months ended September 30, 2024, compared to the same period the year prior. This increase is primarily driven by the Company's investment in R&D work required for its FDA 510(k) clinical study plan and planned submission in the fourth quarter of this calendar year. FDA clearance would enable INBS to introduce its drug screening technology to the United States market in the 2025 calendar year.
* The customer employee estimate of 152,000 employees was derived by aggregating publicly available data on the total number of employees for each INBS customer. Where employee ranges were provided, the midpoints were used for calculation. This estimate excludes customers for whom employee data is not publicly available. The total represents all employees within these organizations, including those who will not be tested using the Intelligent Fingerprinting Drug Screening System. The Company does not have the data to incorporate the percentage of employees tested using the Intelligent Fingerprinting Drug Screening System at each INBS customer. The growing customer employee base is a basic indication of the increased utilization of the Intelligent Fingerprinting Drug Screening System. The nature of work performed by certain employees or restrictions in specific jurisdictions may mean that drug testing is not necessary or applicable for all employees.
Financial Tables to Follow
Intelligent Bio Solutions Inc.
Condensed Consolidated Balance Sheets*
As of September 30, As of June 30,
--------------------- ----------------
2024 2024
--------------------- ----------------
(Unaudited)
ASSETS
Current assets
Cash and cash
equivalents $ 3,989,431 $ 6,304,098
Accounts receivable, net 578,578 429,704
Inventories, net 738,789 777,537
Research and development
tax incentive
receivable 648,334 525,332
Deferred charges 127,586 -
Other current assets 396,193 497,572
----------------- ------------
Total current assets 6,478,911 8,534,243
Property and equipment, net 586,120 565,850
Operating lease
right-of-use assets 260,760 306,744
Intangibles, net 4,400,092 4,372,026
----------------- ------------
Total assets $ 11,725,883 $ 13,778,863
================= ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued expenses $ 1,834,416 $ 1,704,568
Current portion of
operating lease
liabilities 281,565 274,834
Current portion of
deferred grant income 2,585,696 2,486,668
Current employee benefit
liabilities 477,517 469,381
Current portion of notes
payable 499,605 515,282
----------------- ------------
Total current
liabilities 5,678,799 5,450,733
Employee benefit
liabilities, less current
portion 69,731 63,615
Operating lease
liabilities, less current
portion 28,111 81,324
----------------- ------------
Total liabilities $ 5,776,641 $ 5,595,672
================= ============
Commitments and
contingencies
Shareholders' equity
Common stock, $0.01 par
value, 100,000,000
shares authorized,
4,377,759 and 3,456,000
shares issued and
outstanding at
September 30, 2024 and
June 30, 2024,
respectively 43,775 34,557
Treasury stock, at cost,
116 shares as of
September 30, 2024 and
June 30, 2024,
respectively (1) (1)
Additional paid-in
capital 61,207,017 60,971,740
Accumulated deficit (54,649,965) (51,964,332)
Accumulated other
comprehensive loss (496,259) (712,614)
----------------- ------------
Total consolidated
Intelligent Bio
Solutions Inc.
equity 6,104,567 8,329,350
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