Summary of INBS Q1 2023 Earnings Call

1Key Financial Results and Metrics

Cash Position: As of September 30, 2022, INBS reported cash, cash equivalents, and marketable securities of approximately $5.74 million, down from $8.24 million as of June 30, 2022. This decline is attributed to expenditures related to the pilot manufacturing facility and general overhead costs.

Net Loss: The company recorded a preliminary net loss of $1.21 million ($0.08 per share) for the year ended September 30, 2022, an improvement from a loss of $1.43 million ($0.10 per share) in the previous year, mainly due to recognized government support income of $0.31 million.

Cash Runway: Current financial resources are expected to cover expenses into the first half of 2023, excluding revenue from new markets or potential licensing agreements.

2Strategic Updates and Business Highlights

Acquisition of Intelligent Fingerprinting Limited (IFP): The acquisition, finalized in October 2022, is a cornerstone for INBS, enhancing its technology platform for on-site diagnostic testing. The company has rebranded to Intelligent Bio Solutions to reflect this strategic shift.

Product Development: INBS is advancing its non-invasive saliva-based glucose biosensor and has initiated clinical studies to optimize testing methods and assess accuracy.

Manufacturing Facility: Construction of a state-of-the-art facility in Newcastle, Australia, is underway, aimed at supporting both glucose testing and other potential applications.

Market Expansion: The company is targeting global expansion, with plans to enter the Australian market in early 2023 and pursue opportunities in the U.S. and other regions.

3Forward Guidance and Outlook

U.S. Market Entry: INBS aims to secure FDA approval within two years, which could unlock access to a $3 billion U.S. drug testing market. Initial interactions with the FDA have been positive.

Revenue Growth: The company anticipates strong growth in client acquisition, particularly in the Australian market, with sales expected in Q1 2023.

Future Product Lines: INBS is exploring additional applications for its fingerprint testing technology, including diagnostics for various conditions and food safety testing.

4Bad News, Challenges, or Points of Concern

Cash Burn: The company’s cash position has decreased, raising concerns about its ability to sustain operations without additional revenue streams or funding.

Regulatory Risks: The timeline for FDA approval and market entry in the U.S. is uncertain and contingent on regulatory processes, which could delay potential revenue.

Market Competition: The company faces competition in the drug testing market, and its success will depend on the adoption of its innovative testing methods over traditional approaches.

5Notable Q&A Insights

Market Entry in Australia: INBS plans to replicate its U.K. success in Australia, with expectations for initial sales in early 2023. The focus is on providing comprehensive testing solutions.

U.K. Police Project: There is significant interest from U.K. police forces in drug testing solutions, indicating potential for substantial future revenue.

Cortisol Testing: The company is assessing the market for cortisol testing, emphasizing the importance of regulatory approval and market demand before proceeding.

Grant Funding: The timing of cash flows from government grants is milestone-based, with expectations for reimbursements as project milestones are achieved. Overall, INBS is positioned for growth following its acquisition of IFP, with a focus on expanding its product offerings and entering new markets, though it faces challenges related to cash flow and regulatory approvals.