Full Press Release Details
Bio Solutions Releases Shareholder Letter Detailing 2024 Growth and 2025 U.S. Expansion Strategy
highlights key milestones achieved in 2024, growing revenues and progress towards U.S. expansion in 2025
YORK, February 10, 2025 - Intelligent Bio Solutions Inc. (Nasdaq: INBS) ("INBS" or the "Company"),
a medical technology company delivering intelligent, rapid, non-invasive testing solutions, today issued a letter to shareholders from
Harry Simeonidis, President and CEO, reflecting on a year of growth in 2024 and its strategic path forward into the multi-billion dollar
U.S. market in 2025.
we begin 2025, I wanted to take the opportunity to recap on the progress we made in 2024 and key upcoming catalysts including our planned
entrance into the multi-billion dollar U.S. market.
was a pivotal year for the Company, in which we met several critical milestones. In particular, we made significant progress towards
entering the rapidly growing U.S. drug screening market. With the submittal of our 510(k) pre-market notification to the U.S. Food and
Drug Administration ("FDA") completed in December 2024, we remain on track to enter this exciting market in 2025.
believe the potential total addressable market in the U.S. for our Intelligent Fingerprinting Drug Testing Solution is substantial. Market
research shows that the U.S. accounted for approximately 28% of the global drug screening market in 2023, reinforcing its position as
one of the largest markets globally.1 The latest Quest Diagnostics Drug Testing Index report highlights key trends that demonstrate
the relevance of our product to U.S. employers. Marijuana positivity rates in the general U.S. workforce have risen by 4.7% over the
past year and by a huge 45% over the past five years, signalling growing demand for effective drug testing solutions. Further, cocaine
positivity in the general U.S. workforce increased by 9.1% in 2023.2 The rising positivity rates, particularly in safety-sensitive
industries, show the need for effective testing methods like our Drug Screening System.
and website references in this release are provided for convenience only and do not incorporate
the referenced content into this release.
Grand View Research. U.S. Drug Screening Market Size & Outlook 2023-2030. Available at: https://www.grandviewresearch.com/horizon/outlook/drug-screening-market/united-states
Quest Diagnostics. 2024 Drug Testing Index Report. Available at: https://www.questdiagnostics.com/business-solutions/employers/drug-screening/knowledge-center/drug-testing-index
a global view, the drug screening products market is projected to reach almost $15 billion in the next six years, presenting significant
growth opportunities for the Company.3 INBS is well-positioned to take advantage of this growth trajectory and increasing
demand for fast, efficient and accurate drug-screening solutions.
fiscal 2024, we achieved substantial revenue growth through strong adoption of our drug screening technology. Our fiscal 2024 revenues
grew 148% year-over-year, with our expanding sales and distribution network allowing us to meet rising global demand. INBS has an established
and diversified customer base worldwide, with over 400 accounts in 19 countries. Globally, this amounts to an estimated customer employee
base of 1.4 million employees.4 We are excited to build upon this success and execute on our U.S. expansion plans.
November 2024, we announced the results of our Pharmacokinetic (PK) and Method Comparison studies, both of which were crucial to progress
our FDA 510(k) submission. We were pleased to report the PK study results demonstrated that fingerprint sweat provides a reliable sample
matrix for drug detection, showing quantitative data closely aligned to blood, based on statistical comparisons made at the 95% confidence
level. Similarly, the Method Comparison Study demonstrated approximately 94% accuracy, confirming the reliability and usability of our
System, and validating its potential for use in workplace drug testing and other applications.
rising substance abuse cases, more stringent regulations, and an increased focus on workplace safety, we anticipate we will see growing
demand for faster, non-invasive testing, like our Intelligent Fingerprinting Drug Testing Solution. Recent data released by Quest Diagnostics
revealed that drug test tampering in the U.S. workforce increased six-fold in 2023 compared to 2022, the highest rate recorded in over
30 years of data.5 This means potentially impaired employees go undetected, presenting significant safety risks in the workplace.
INBS' innovative technology tackles the issue of drug test integrity with lockable, tamper-proof seals and a fully witnessed procedure,
eliminating the risk of tampering. Our plan to enter the U.S. market capitalizes on these trends, positioning our product as a rapid,
accurate, non-invasive alternative to traditional methods.
demand we have seen from our growing number of accounts is testament to the effectiveness of our product, which is revolutionizing portable
testing. Our Intelligent Fingerprinting Drug Screening System screens for drugs of abuse through fingerprint sweat analysis. It is a
highly accurate, hygienic, pain-free and cost-effective method, with sample collection in seconds and results in under ten minutes. This
sets us apart from traditional testing methods, such as saliva and urine testing, which can be slow, invasive, and less cost-effective.
Research and Markets 2025. Drug Screening - Global Strategic Business Report.
The customer employee base estimate of 1.4 million 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
Quest Diagnostics. 2024 Drug Testing Index Report. Available at: https://www.questdiagnostics.com/business-solutions/employers/drug-screening/knowledge-center/drug-testing-index
recently announced preliminary results for the fiscal second quarter ended December 31, 2024, demonstrate the progress we are making
in improving our gross profit margins. We expect to report unaudited revenue of approximately $0.61 million for the three months and
$1.48 million for the six months ended December 31, 2024. Notably, our gross profit is anticipated to increase 32.6% from $0.43 million
to $0.57 million and gross profit margin to grow to 38.5% from 27.7% for the six months ended December 31, 2024. Our strategic focus
on higher-margin cartridge sales has driven a significant 11-point expansion in gross profit margin, with cartridge sales expected to
continue to outpace reader sales, thereby becoming a primary source of recurring revenue with a higher profit margin. These results show
our upward trajectory and the strength of our business model.
current customer segments include construction, manufacturing and engineering, transport and logistics, mining, drug treatment, law enforcement
and forensics. The system screens for recent use of drugs commonly found in the workplace, including opiates, cocaine, methamphetamine,
and cannabis; however, the fingerprint sweat analysis technology has the potential for broader application in additional fields. We believe
there are further areas of the market to penetrate as our technology is a valuable tool for employers in any safety-critical industry.
market for our drug-testing solution is growing substantially, and by addressing the unique requirements of safety-critical industries,
as well as aligning with the wide market demand for rapid, advanced drug testing solutions, we believe we are well-positioned to capture
a share of this global market.
I would like to thank our shareholders for their continued support as we carry out our commitment to providing innovative, effective,
and non-invasive testing solutions.
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