Full Press Release Details
Bio Solutions Inc. Reports Fiscal 2023 Second Quarter
Financial Results and Operational Highlights
Second quarter total revenue and government support income increased over 100% year-over-year-
- Government support income increased 52% for the quarter ended December 31, 2022 compared to the prior corresponding period, mainly
due to qualifying expenditures for completion of Milestone 7-
- Successful completion of Milestone 7, a key phase of its biosensor platform development-
- Cash and cash equivalents at quarter-end totaled $2.9 million -
February 14, 2023 - Intelligent Bio Solutions Inc. ("Intelligent Bio Solutions" or the "Company") (Nasdaq:
INBS), a life sciences company developing and delivering intelligent, non-invasive, real-time testing solutions, today announced its
financial results for its fiscal second quarter ended December 31, 2022, and provided a business update. All amounts are expressed in
U.S. dollars unless indicated otherwise, and all authorized, issued, and outstanding stock and per share amounts reflect the 1-for-20
reverse stock split effected by the Company on February 9, 2023, unless indicated otherwise.
strong fiscal second quarter results show the expansion and strength of our global portfolio, which now includes operations in the United
Kingdom, United States and Australia," commented Harry Simeonidis, Chief Executive Officer at Intelligent Bio Solutions. "We
continued to bolster Intelligent Bio Solution's leadership position in the field of non-invasive real-time diagnostic testing in
the second quarter, achieving several significant strategic goals. We released the successful results from Milestone 7, which showed
a four-time improvement in time-to-result (TTR) for our biosensor platform, returning test results in less than a minute. These exciting
results were a green light for our biosensor development team to progress to the next testing phase, which will include testing human
we announced several customer partnerships where companies are implementing our real-time, non-invasive intelligent fingerprinting testing
solutions for their staff drug tests," continued Mr. Simeonidis. "These successful partnerships demonstrate the demand for,
and effectiveness of, our innovative platform for testing needs. Based on this momentum, we believe Intelligent Bio Solutions is well
positioned for future growth as we advance our development pipeline and execute our strategic priorities."
Quarter Highlights, Recent Operational Developments
Partnerships & Pipeline Development
Events and Targeted Milestones for the Coming Fiscal Year
studies, in tandem, are intended to refine saliva collection protocols and enhance the biosensor's performance as the Company finalizes
product design and shifts from Research and Development ("R&D") to manufacturing.
Quarter Ended December 31, 2022, Financial Results
of December 31, 2022, the Company's cash, cash equivalents and marketable securities totaled approximately $2.9 million.
the quarter that ended December 31, 2022, the Company had a net loss of $0.42 million or $0.46 per share, compared to a net loss of $3.46
million or $4.65 per share in the prior year period. This decrease was primarily driven by expensing the prepaid R&D contribution
of $2.6 million during the same period in 2021 and recognition of fair value gain on the revaluation of convertible notes and holdback
Series C Preferred Stock during the current quarter of $1.8 million.
Company's government support income increased by 52% or $91,834 to $269,625 for the quarter ended December 31, 2022, compared to
the same period in 2021. This increase was primarily attributable to the timing of the amount spent on qualifying research and development
Intelligent Bio Solutions Inc.
Bio Solutions Inc. is a life sciences company developing and delivering intelligent, non-invasive, real-time testing solutions to customers
globally. With its world-first biosensor platform, Intelligent Bio Solutions is developing and launching diagnostic tests urgently needed
to help people living with chronic disease. In addition, through its recent acquisition of Intelligent Fingerprinting Limited, the Company
is the world leader in the advancement of portable drugs of abuse testing through the analysis of fingerprint sweat. The system is a
platform technology with potential applications in many areas of diagnostics, and its advantages include being non-invasive, hygienic,
fast, and cost-effective. The top-selling product screens for recent use of the most commonly taken drugs in workplace settings; opioids,
cocaine, methamphetamine, and marijuana. Sample collection takes just seconds, with results in ten minutes. Customers include employers
in safety-critical industries such as construction, transport and logistics firms, drug treatment organizations, and UK coroners. A laboratory
confirmation service is also available.
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 consummate
the proposed transaction described in this press release, develop and commercialize its 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.
KCSA Strategic Communications
Comma Communications
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 356,679 | $ | - | $ | 356,679 | $ | - | ||||||||
| Cost of revenue | (112,635 | ) | - | (112,635 | ) | - | ||||||||||
| Gross profit | 244,044 | - | 244,044 | - | ||||||||||||
| Other income: | ||||||||||||||||
| Government support income | 269,625 | 177,791 | 580,945 | 177,791 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative expenses | (2,245,289 | ) | (1,003,244 | ) | (3,695,707 | ) | (2,335,764 | ) | ||||||||
| Development and regulatory approval expenses | (1,191 | ) | (2,641,182 | ) | (80,465 | ) | (2,747,981 | ) | ||||||||
| Depreciation and amortization | (398,156 | ) | - | (398,156 | ) | - | ||||||||||
| Total operating expenses | (2,644,636 | ) | (3,644,426 | ) | (4,174,328 | ) | (5,083,745 | ) | ||||||||
| Loss from operations | (2,130,967 | ) | (3,466,635 | ) | (3,349,339 | ) | (4,905,954 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (76,767 | ) | (675 | ) | (77,832 | ) | (675 | ) | ||||||||
| Realized foreign exchange (loss)/gain | (13,901 | ) | 14 | (16,148 | ) | (3,104 | ) | |||||||||
| Fair value movements through profit and loss | 1,793,091 | - | 1,793,091 | - | ||||||||||||
| Interest income | 1,473 | 3,473 | 9,079 | 8,070 | ||||||||||||
| Total other income (expense) | 1,703,896 | 2,812 | 1,708,190 | 4,291 | ||||||||||||
| Net loss | (427,071 | ) | (3,463,823 | ) | (1,641,149 | ) | (4,901,663 | ) | ||||||||
| Net loss attributable to non-controlling interest | (6,471 | ) | (3,825 | ) | (12,256 | ) | (9,013 | ) | ||||||||
| Net loss attributable to Intelligent Bio Solutions Inc. | $ | (420,600 | ) | $ | (3,459,998 | ) | $ | (1,628,893 | ) | $ | (4,892,650 | ) | ||||
| Other comprehensive loss, net of tax: | ||||||||||||||||
| Foreign currency translation (loss)/gain | $ | 361,597 | $ | 7,355 | $ | 226,038 | $ | (60,127 | ) | |||||||
| Total other comprehensive (loss)/gain | 361,597 | 7,355 | 226,038 | (60,127 | ) | |||||||||||
| Comprehensive loss | (65,474 | ) | (3,456,468 | ) | (1,415,111 | ) | (4,961,790 | ) | ||||||||
| Comprehensive loss attributable to non-controlling interest | (6,471 | ) | (3,825 | ) | (12,256 | ) | (9,013 | ) | ||||||||
| Comprehensive loss attributable to Intelligent Bio Solutions Inc. | $ | (59,003 | ) | $ | (3,452,643 | ) | $ | (1,402,855 | ) | $ | (4,952,777 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.46 | ) | $ | (4.65 | ) | $ | (1.97 | ) | $ | (6.77 | ) | ||||
| Weighted average shares outstanding, basic and diluted | 908,283 | 744,126 | 826,389 | 722,216 |
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, 2022 | June 30, 2022 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,911,682 | $ | 8,238,301 | ||||
| Accounts receivable, net | 278,317 | - | ||||||
| Inventories | 670,968 | - | ||||||
| Grant receivable, current portion | 1,504,566 | 1,529,882 | ||||||
| Research and development tax incentive receivable | 490,637 | 353,048 | ||||||
| Other current assets | 521,894 | 746,761 | ||||||
| Total current assets | 6,378,064 | 10,867,992 | ||||||
| Property and equipment, net | 484,301 | 391,408 | ||||||
| Finance lease right-of-use assets | 506,360 | - | ||||||
| Goodwill | 4,130,037 | - | ||||||
| Intangible assets, net | 5,472,510 | - | ||||||
| Long-term grant receivable | 1,076,661 | 1,092,773 | ||||||
| TOTAL ASSETS | $ | 18,047,933 | $ | 12,352,173 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,855,465 | $ | 1,625,089 | ||||
| Current portion of finance lease liabilities | 160,826 | - | ||||||
| Current portion of deferred grant income | 2,153,091 | 2,836,582 | ||||||
| Current employee benefit liabilities | 319,119 | 201,332 | ||||||
| Current portion of notes payable | 326,033 | - | ||||||
| Total current liabilities | 4,814,534 | 4,663,003 | ||||||
| Employee benefit liabilities | 23,696 | 50,626 | ||||||
| Finance lease liabilities | 357,326 | - | ||||||
| Long-term deferred grant income | 1,558,287 | 1,092,773 | ||||||
| Notes payable | 507,403 | - | ||||||
| Convertible notes payable | 523,703 | - | ||||||
| Total liabilities | 7,784,949 | 5,806,402 | ||||||
| Commitments and contingencies (Note 18) | ||||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $0.01 par value, 10,000,000 shares authorized: Series C preferred stock, $0.01 par value, 4,012,276 shares designated, 2,363,003 and 0 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively | 23,630 | - | ||||||
| Series D preferred stock, $0.01 par value, 500,000 shares designated, 176,462 and 0 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively | 1,765 | - | ||||||
| Common stock, $0.01 par value, 100,000,000 shares authorized, 917,650 and 744,496 shares issued and outstanding at December 31, 2022 and June 30, 2022, respectively | 9,177 | 7,445 | ||||||
| Treasury stock, at cost, 1,386 and 0 shares as of December 31, 2022 and June 30, 2022, respectively | (14 | ) | - | |||||
| Additional paid-in capital | 43,686,676 | 38,581,465 | ||||||
| Accumulated deficit | (32,804,746 | ) | (31,175,853 | ) | ||||
| Accumulated other comprehensive loss | (562,097 | ) | (788,135 | ) | ||||
| Total consolidated Intelligent Bio Solutions Inc. equity | 10,354,391 | 6,624,922 | ||||||
| Non-controlling interest | (91,407 | ) | (79,151 | ) | ||||
| Total shareholders' equity | 10,262,984 | 6,545,771 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 18,047,933 | $ | 12,352,173 |