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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-

Key Takeaway: Intelligent Bio Solutions Inc. reported a positive financial performance for the first quarter of fiscal 2025, with a 10% increase in revenue year-on-year and a significant 20% increase compared to the previous quarter. The company also highlighted that its cartridge sales have overtaken reader revenue, which is a positive shift for its business margins. Operationally, the firm is on track to submit its FDA 510(k) package by year-end, aiming to capitalize on a growing drug screening market. Despite these positives, the company faces challenges with rising net losses due to ongoing investments in research and development.

Market Sentiment Analysis

POSITIVE FACTORS

  • Quarterly revenue increased by 10% year-on-year and 20% quarter-on-quarter.
  • Recurring cartridge revenue surpassed reader revenue as the primary growth driver.
  • In-clinic FDA 510(k) clinical study submission is on track for year-end.
  • Expansion of distribution network in Saudi Arabia demonstrates global growth.

CONCERNS & RISKS

  • Net loss increased from $2.43 million to $2.70 million compared to the same period last year.
  • Ongoing R&D investments are driving current losses.
  • Cash and cash equivalents decreased from $6.30 million to $3.99 million over the quarter.

Full Press Release Details

Bio Solutions Reports Fiscal 2025 First Quarter Financial Results and Operational Highlights
revenue increased 10% year-on-year and 20% quarter-on-quarter, marking four consecutive quarters of year-on-year growth
recurring cartridge revenue surpassed reader revenue as primary driver
in-clinic portion of FDA 510(k) clinical study plan, on track to submit to FDA by year-end
distribution network in Saudi Arabia
review of PK study results show fingerprint sweat strongly aligns to blood and oral fluid, results expected in
YORK, November 07, 2024 - 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.
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."
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."
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.
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 20301.
First Quarter & Recent Operational Highlights:
and Markets, 2024. Drug Screening - Global Strategic Business Report. Available at:
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.
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.
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.
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
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
Non-controlling interest (155,325 ) (146,159 )
Total shareholders' equity 5,949,242 8,183,191
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 11,725,883 $ 13,778,863
Consolidated Statements of Operations and Other Comprehensive Income (Loss)*
Three Months Ended September 30,
2024 2023
Revenue $ 872,287 $ 796,094
Cost of revenue (exclusive of amortization shown separately below) (525,486 ) (563,763 )
Gross profit 346,801 232,331
Other income
Government support income 126,128 109,871
Operating expenses
Selling, general and administrative expenses (1,949,016 ) (2,457,060 )
Development and regulatory approval expenses (948,752 ) (103,947 )
Depreciation and amortization (300,422 ) (307,560 )
Total operating expenses (3,198,190 ) (2,868,567 )
Loss from operations (2,725,261 ) (2,526,365 )
Other income (expense), net
Interest expense (22,327 ) (37,448 )
Realized foreign exchange loss (51 ) -
Fair value gain on revaluation of financial instrument - 131,250
Interest income 52,840 139
Total other income, net 30,462 93,941
Net loss (2,694,799 ) (2,432,424 )
Net loss attributable to non-controlling interest (9,166 ) (7,220 )
Net loss attributable to Intelligent Bio Solutions Inc. $ (2,685,633 ) $ (2,425,204 )
Other comprehensive income (loss), net of tax
Foreign currency translation gain / (loss) 216,355 (18,016 )
Total other comprehensive income / (loss) 216,355 (18,016 )
Comprehensive loss (2,478,444 ) (2,450,440 )
Comprehensive loss attributable to non-controlling interest (9,166 ) (7,220 )
Comprehensive loss attributable to Intelligent Bio Solutions Inc. (2,469,278 ) (2,443,220 )
Net loss per share, basic and diluted* $ (0.70 ) $ (12.48 )
Weighted average shares outstanding, basic and diluted * 3,811,090 194,200
Intelligent Bio Solutions
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

Frequently Asked Questions

What was the revenue growth for Intelligent Bio Solutions in Q1 2025?

The revenue increased by 10% year-on-year and 20% quarter-on-quarter.

What is the primary source of growth for INBS?

Recurring cartridge revenue has now surpassed reader revenue, driving growth.

When does INBS plan to submit its FDA 510(k) package?

INBS aims to submit its FDA 510(k) package by the year's end.

How many new accounts did INBS secure in the last quarter?

INTBS secured 22 new accounts during the quarter.

What is the total addressable market for drug screening products?

The total addressable market for drug screening products is estimated at ~$15 billion.

Last updated: Nov 7, 2024