Full Press Release Details
Bio Solutions Announces Fiscal Q2 2025 Financial Results and Key Operational Achievements
profit increase of 32.6% and 11-point gross profit margin increase driven by higher-margin cartridge sales
FDA 510(k) and remain on track for planned expansion into multi-billion dollar U.S. market in 2025
strategic partnerships, increasing visibility across the Asia-Pacific Region and the U.S.
19 accounts during quarter, adding to 400+ active customer accounts in 19 countries
YORK, February 13, 2025 - 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 second quarter and six months ended December 31, 2024, and provided a business update.
Q2 was a successful quarter for the business in a number of areas. From a financial standpoint, our business model is excelling, with
higher-margin cartridge sales steadily increasing, contributing to our gross profit and margin growth. Our focus on deal size and growing
the volume of cartridge sales has resulted in an 11-point increase in our gross profit margin," said Harry Simeonidis, President
and CEO at Intelligent Bio Solutions. "From a regulatory standpoint, our clinical studies returned strong results, and we achieved
a significant milestone with the submission of our FDA 510(k) package in December. We remain on track to enter the multi-billion dollar
U.S. market this year, and look forward to the opportunities this will present for the business. In addition, we successfully executed
on our international expansion plans, adding key strategic partnerships in the Asia-Pacific Region and the U.S."
performance over the first half of fiscal 2025 shows that our focus on growing cartridge sales is translating to higher gross profit
and margins. We were pleased that gross profit grew to 32.6% while gross profit margins increased to 38.5% from 27.7% for the six months
ended December 31, 2024, year-over-year, showing that we have made strides in sustaining the Company's long-term financial strength,"
said Spiro Sakiris, CFO at Intelligent Bio Solutions. "We expect cartridge sales to continue outpacing reader sales moving forward,
maximizing our recurring revenue. We also continued to scale our customer base of over 400 accounts and expand our international presence,
which we expect will continue to grow as we enter the U.S. market this year."
Second Quarter & Recent Operational Highlights:
Results for the Fiscal 2025 Second Quarter and Six-Months Ended December 31, 2024:
from sales of goods decreased by $156,569 to $607,494 from $764,063 for the three months ended December 31, 2024, compared to the same
period in 2023, and by $80,376 to $1,479,781 from $1,560,157 for the six months ended December 31, 2024, compared to the same period
in 2023. Despite these fluctuations, the Company increased its gross profit margin by concentrating on higher-margin cartridge sales.
Increases in gross profit margin are further attributable to enhanced production capacity, which has reduced direct labor, direct materials
and overhead costs. The Company continues to improve its strategic sales mix and operational streamlining, thus driving increased gross
loss attributable to the Company increased by $279,829 to $2,249,470 from $1,969,641 for the three months ended December 31, 2024, compared
to the same period in 2023, and by $540,258 to $4,935,103 from $4,394,845 for the six months ended December 31, 2024, compared to the
same period in 2023. This increase is primarily driven by the Company's investment in R&D work required for its FDA 510(k)
clinical study plan and increased selling, general and administrative expenses due to continued expansion in existing and new regions.
The Company submitted its 510(k) pre-market notification to the US Food and Drug Administration (FDA) on December 18, 2024.
Intelligent Bio Solutions Inc.
Bio Solutions Inc. (NASDAQ: INBS) is a medical technology company delivering innovative, rapid, non-invasive testing solutions. The Company
believes that its Intelligent Fingerprinting Drug Screening System will revolutionize portable testing through fingerprint sweat analysis,
which has the potential for broader applications in additional fields. Designed as a hygienic and cost-effective system, the test screens
for the recent use of drugs commonly found in the workplace, including opiates, cocaine, methamphetamine, and cannabis. With sample collection
in seconds and results in under ten minutes, this technology would be a valuable tool for employers in safety-critical industries. The
Company's current customer segments outside the US include construction, manufacturing and engineering, transport and logistics
firms, drug treatment organizations, and coroners.
more information, visit: http://www.ibs.inc
of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section
21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties.
Forward-looking statements in this press release include, without limitation, Intelligent Bio Solutions Inc.'s ability to successfully
develop and commercialize its drug and diagnostic tests, realize commercial benefit from its partnerships and collaborations, and secure
regulatory approvals, among others. Although Intelligent Bio Solutions Inc. believes that the expectations reflected in such forward-looking
statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or
implied by such forward-looking statements. Intelligent Bio Solutions Inc. has attempted to identify forward-looking statements by terminology,
including "believes," "estimates," "anticipates," "expects," "plans," "projects,"
"intends," "potential," "may," "could," "might," "will," "should,"
"approximately" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements.
These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, included in Intelligent
Bio Solutions' public filings filed with the Securities and Exchange Commission. Any forward-looking statements contained in this
release speak only as of its date. Intelligent Bio Solutions undertakes no obligation to update any forward-looking statements contained
in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
Intelligent Bio Solutions Inc.
Valter Pinto, Managing Director
KCSA Strategic Communications
Consolidated Balance Sheets
| As of December 31, | As of June 30, | |||||||
| 2024 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,242,209 | $ | 6,304,098 | ||||
| Accounts receivable, net | 266,080 | 429,704 | ||||||
| Inventories, net | 701,280 | 777,537 | ||||||
| Research and development tax incentive receivable | 375,687 | 525,332 | ||||||
| Deferred charges | 127,586 | - | ||||||
| Other current assets | 348,684 | 497,572 | ||||||
| Total current assets | 4,061,526 | 8,534,243 | ||||||
| Property and equipment, net | 537,225 | 565,850 | ||||||
| Operating lease right-of-use assets | 182,637 | 306,744 | ||||||
| Intangibles, net | 3,902,587 | 4,372,026 | ||||||
| Total assets | $ | 8,683,975 | $ | 13,778,863 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 1,074,716 | $ | 1,704,568 | ||||
| Current portion of operating lease liabilities | 205,945 | 274,834 | ||||||
| Current portion of deferred grant income | 2,299,644 | 2,486,668 | ||||||
| Current employee benefit liabilities | 416,929 | 469,381 | ||||||
| Current portion of notes payable | 405,535 | 515,282 | ||||||
| Total current liabilities | 4,402,769 | 5,450,733 | ||||||
| Employee benefit liabilities, less current portion | 63,283 | 63,615 | ||||||
| Operating lease liabilities, less current portion | 14,535 | 81,324 | ||||||
| Total liabilities | $ | 4,480,587 | $ | 5,595,672 | ||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Common stock, $0.01 par value, 100,000,000 shares authorized, 4,807,068 and 3,456,000 shares issued and outstanding at December 31, 2024 and June 30, 2024, respectively | 48,068 | 34,557 | ||||||
| Treasury stock, at cost, 116 shares as of December 31, 2024 and June 30, 2024, respectively | (1 | ) | (1 | ) | ||||
| Additional paid-in capital | 61,856,832 | 60,971,740 | ||||||
| Accumulated deficit | (56,899,435 | ) | (51,964,332 | ) | ||||
| Accumulated other comprehensive loss | (639,424 | ) | (712,614 | ) | ||||
| Total consolidated Intelligent Bio Solutions Inc. equity | $ | 4,366,040 | $ | 8,329,350 | ||||
| Non-controlling interest | (162,652 | ) | (146,159 | ) | ||||
| Total shareholders' equity | 4,203,388 | 8,183,191 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 8,683,975 | $ | 13,778,863 |
Consolidated Statements of Operations and Other Comprehensive Income (Loss)
| Three months ended December 31, | Six months ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 607,494 | $ | 764,063 | $ | 1,479,781 | $ | 1,560,157 | ||||||||
| Cost of revenue (exclusive of amortization shown separately below) | (384,381 | ) | (564,815 | ) | (909,867 | ) | (1,128,578 | ) | ||||||||
| Gross profit | 223,113 | 199,248 | 569,914 | 431,579 | ||||||||||||
| Other income: | ||||||||||||||||
| Government support income | 133,640 | 153,204 | 259,768 | 263,075 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | (1,809,114 | ) | (1,705,044 | ) | (3,758,130 | ) | (4,162,104 | ) | ||||||||
| Development and regulatory approval expenses | (506,944 | ) | (348,452 | ) | (1,455,696 | ) | (452,399 | ) | ||||||||
| Depreciation and amortization | (305,177 | ) | (290,313 | ) | (605,599 | ) | (597,873 | ) | ||||||||
| Total operating expenses | (2,621,235 | ) | (2,343,809 | ) | (5,819,425 | ) | (5,212,376 | ) | ||||||||
| Loss from operations | (2,264,482 | ) | (1,991,357 | ) | (4,989,743 | ) | (4,517,722 | ) | ||||||||
| Other income (expense), net | ||||||||||||||||
| Interest expense | (13,502 | ) | (32,468 | ) | (35,829 | ) | (69,916 | ) | ||||||||
| Realized foreign exchange loss | (750 | ) | (555 | ) | (801 | ) | (555 | ) | ||||||||
| Fair value gain on revaluation of financial instrument | - | 44,488 | - | 175,738 | ||||||||||||
| Interest income | 21,937 | 3,509 | 74,777 | 3,648 | ||||||||||||
| Total other income, net | 7,685 | 14,974 | 38,147 | 108,915 | ||||||||||||
| Net loss | (2,256,797 | ) | (1,976,383 | ) | (4,951,596 | ) | (4,408,807 | ) | ||||||||
| Net loss attributable to non-controlling interest | (7,327 | ) | (6,742 | ) | (16,493 | ) | (13,962 | ) | ||||||||
| Net loss attributable to Intelligent Bio Solutions Inc. | $ | (2,249,470 | ) | $ | (1,969,641 | ) | $ | (4,935,103 | ) | $ | (4,394,845 | ) | ||||
| Other comprehensive income (loss), net of tax: | ||||||||||||||||
| Foreign currency translation gain (loss) | (143,165 | ) | 75,133 | 73,190 | 57,117 | |||||||||||
| Total other comprehensive income (loss) | (143,165 | ) | 75,133 | 73,190 | 57,117 | |||||||||||
| Comprehensive loss | (2,399,962 | ) | (1,901,250 | ) | (4,878,406 | ) | (4,351,690 | ) | ||||||||
| Comprehensive loss attributable to non-controlling interest | (7,327 | ) | (6,742 | ) | (16,493 | ) | (13,962 | ) | ||||||||
| Comprehensive loss attributable to Intelligent Bio Solutions Inc. | (2,392,635 | ) | (1,894,508 | ) | (4,861,913 | ) | (4,337,728 | ) | ||||||||
| Net loss per share, basic and diluted | $ | (0.50 | ) | $ | (2.07 | ) | $ | (1.18 | ) | $ | (7.68 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 4,535,815 | 949,660 | 4,173,452 | 571,930 |