Intelligent Bio Solutions Announces Fiscal Q2 2025 Financial Results and Key Operational Achievements
Rhea-AI Summary
Intelligent Bio Solutions (NASDAQ: INBS) reported its fiscal Q2 2025 results, highlighting a 32.6% increase in gross profit and an 11-point rise in gross profit margin to 38.5%, driven by higher-margin cartridge sales. The company submitted its FDA 510(k) application in December 2024 and remains on track for U.S. market expansion in 2025.
Key financial metrics include Q2 revenue of $0.61 million, cash and equivalents of $2.24 million, and shareholders' equity of $4.20 million. The company secured 19 new accounts during the quarter, expanding its presence to over 400 active customers across 19 countries. However, revenue from sales decreased by $156,569 compared to the same quarter last year, and net loss increased to $2.25 million.
The company formed strategic partnerships with B2i Digital for investor marketing and Spirit Group for distribution in the Asia-Pacific region, while successfully completing method comparison and pharmacokinetic studies for its Intelligent Fingerprinting Drug Screening System.
Positive
- Gross profit increased 32.6% to $0.57 million
- Gross profit margin improved to 38.5% from 27.7%
- FDA 510(k) submission completed for U.S. market entry
- Secured 19 new accounts, expanding to 400+ customers in 19 countries
- Strong results from method comparison and pharmacokinetic studies
Negative
- Revenue decreased by $156,569 to $607,494 in Q2
- Net loss increased by $279,829 to $2.25 million
- Six-month revenue declined by $80,376 to $1.48 million
Insights
The Q2 FY2025 results reveal a strategic transformation in INBS's business model, with a compelling shift towards recurring revenue through cartridge sales. The
The expansion of the customer base to over 400 accounts across 19 countries provides a solid foundation for recurring revenue growth. The
The FDA 510(k) submission marks a important inflection point for INBS. The U.S. drug screening market represents a multi-billion dollar opportunity, and the company's non-invasive testing solution could capture significant market share, particularly in sectors like transportation, construction, and healthcare where regular drug screening is mandatory. The successful completion of the method comparison study and pharmacokinetic results strengthen the likelihood of FDA approval.
The strategic partnerships with Spirit Group and expansion into the Asia-Pacific region demonstrate a methodical approach to market penetration. These relationships could accelerate customer acquisition in key industries while keeping marketing costs manageable. The focus on Indigenous-owned businesses also opens access to specialized market segments with substantial testing requirements.
Gross profit increase of
Submitted FDA 510(k) and remain on track for planned expansion into multi-billion dollar U.S. market in 2025
Added strategic partnerships, increasing visibility across the Asia-Pacific Region and the U.S.
Secured 19 accounts during quarter, adding to 400+ active customer accounts in 19 countries
NEW YORK, Feb. 13, 2025 (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 second quarter and six months ended December 31, 2024, and provided a business update.
"Fiscal 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."
"Our 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
Fiscal Second Quarter & Recent Operational Highlights:
- On December 18, 2024, the Company announced the submission of its 510(k) pre-market notification to the US Food and Drug Administration (FDA) for clearance following FDA review of its Intelligent Fingerprinting Drug Screening System.
- On November 26, the Company announced the successful completion of its method comparison study on its Intelligent Fingerprinting Drug Screening System, confirming the sensitivity, specificity, accuracy, and usability of the System.
- On November 13, the Company announced strong initial results from its Pharmacokinetic (PK) study required for an FDA 510(k) submission, showing that fingerprint sweat mimics the rate and extent of codeine in blood and saliva.
- On October 31, the Company announced a strategic partnership with B2i Digital to launch an investor-focused marketing campaign, employing advanced digital marketing strategies to raise awareness of INBS' patented drug screening technology.
- On October 9, the Company announced its distribution partnership with Spirit Group, an Australian, Indigenous-owned marketing and consulting agency, with prominent clients across a wide range of industries, including mining, transportation, and construction.
- The Company secured 19 accounts throughout the quarter ended December 31, 2024, adding to its 400+ active customer accounts in 19 countries.
Financial Results for the Fiscal 2025 Second Quarter and Six-Months Ended December 31, 2024:
- Total cash and cash equivalents on hand as of December 31, 2024, was
$2.24 million . - Shareholders equity as of December 31, 2024, was
$4.20 million . - Total revenues for the fiscal second quarter were
$0.61 million . - Total revenue for the six months ended December 31, 2024, was
$1.48 million . - Gross profit increased
32.6% from$0.43 million to$0.57 million for the six months ended December 31, 2024. - Gross profit margin increased to
38.5% from27.7% for the six months ended December 31, 2024. - Net loss for the fiscal second quarter was
$2.26 million , including non-cash depreciation and amortization and share-based expenses of$0.32 million .
Revenue from sales of goods decreased by
Net loss attributable to the Company increased by
About Intelligent Bio Solutions Inc.
Intelligent 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.
For more information, visit: http://www.ibs.inc
Forward-Looking Statements:
Some 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.
Company Contact:
Intelligent Bio Solutions Inc.
info@ibs.inc
LinkedIn | Twitter
Investor & Media Contact:
Valter Pinto, Managing Director
KCSA Strategic Communications
PH: (212) 896-1254
INBS@kcsa.com
Financial Tables to Follow
| Intelligent Bio Solutions Inc. Condensed 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, | 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 | ||||
| Intelligent Bio Solutions Inc. Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) | ||||||||||||||||
| 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 | ||||||||||||
FAQ
What was INBS's gross profit margin increase in Q2 2025?
When did INBS submit its FDA 510(k) application?
How many new accounts did INBS secure in Q2 2025?
What was INBS's net loss in Q2 2025?
How much cash did INBS have on hand as of December 31, 2024?
