Form 8-K - Current report

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): September 19, 2024

 

INTELLIGENT BIO SOLUTIONS INC.

(Exact name of registrant as specified in its charter)

 

Delaware		001-39825		82-1512711
(State of Incorporation)		(Commission File Number)		(IRS employer identification no.)

 

135 West, 41st Street, 5^th Floor, New York, NY 10036

(Address of principal executive offices, including zip code)

 

Registrant’s telephone number, including area code: [phone]

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.01 par value		INBS		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On September 19, 2024, Intelligent Bio Solutions Inc. (the “Company”) issued a press release (the “Press Release”) announcing financial results for the three months and full fiscal year ended June 30, 2024. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information contained herein and in the accompanying exhibits shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

 

Item 9.01 Financial Statements and Exhibits.

 

No.		Description
99.1		Press release dated September 19, 2024
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: September 19, 2024
	INTELLIGENT BIO SOLUTIONS INC.
	By:	/s/ Spiro Sakiris
	Name:	Spiro Sakiris
	Title:	Chief Financial Officer

 

 

 

Exhibit 99.1

 

Intelligent Bio Solutions Inc. Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results and Operational Highlights

 

- Fourth-quarter revenue of $0.73 million, up 64% year-over-year –

 

- Full-year revenue of $3.11 million, up 148% year-over-year –

 

- As of June 30, 2024, the Company had $6.30 million in cash -

 

NEW YORK, September 19, 2024 - Intelligent Bio Solutions Inc. (Nasdaq: INBS) (“INBS” or the “Company”), a medical technology company delivering intelligent, rapid, non-invasive testing solutions, announced its financial results for the fiscal fourth quarter and full-year ended June 30, 2024, and provided a business update.

 

Fiscal fourth quarter revenue totalled $0.73 million, an increase of 64% compared to the same period the prior year, and full-year revenue totalled $3.11 million, an increase of 148% compared to the prior fiscal year. As of June 30, 2024, the Company had $6.30 million in cash.

 

“Our fiscal 2024 results reflect the dedication we have invested as a team to really drive the business forward,” said Harry Simeonidis, President and CEO at INBS. “Customer demand has remained strong, with orders increasing across the board as more businesses turn to our drug screening technology to safeguard their workforce and uphold their reputation for prioritizing safety. Our progress is promising, and we are continuously refining our strategy to ensure sustainable and profitable long-term growth. We remain on track for our planned FDA 510(k) submission in the fourth calendar quarter of this year and look forward to the opportunities this will unlock in 2025.”

 

In addition, INBS reported a 20% increase in cartridge sales and a 26% increase in reader sales for the fiscal year ended June 30, 2024, compared to the prior fiscal year. With each reader needing a continuous supply of cartridges for testing, recurring revenue from cartridge sales has been a key driver in INBS’ continued growth across its active customer base of more than 400 businesses.

 

Spiro Sakiris, CFO at INBS, commented, “We closed out fiscal 2024 with strong results. We have ensured revenue growth through concentrated expansion of our footprint, and with over 1,000 readers now installed, we are generating consistent and recurring revenue from cartridge sales. Awareness of our technology is growing, and we are seeing the results. Our next step is strategic geographical expansion, allowing us to enter new markets and further grow our customer network.”

 

Operational Highlights for Fiscal 2024:

 

	●	On June 28, 2024, the Company announced the successful completion of the in-clinic portion of its Pharmacokinetic (PK) study, a core component of the Company’s clinical study plan for its 510(k) pathway for clearance by the United States Food and Drug Administration (FDA). The Company expects to complete the full PK study in the third calendar quarter of 2024.
	●	On April 11, 2024, the Company announced that its wholly owned subsidiary, Intelligent Fingerprinting Limited, had been granted a new European patent with unitary effect for its DSR-Plus Cartridge Reader, bringing the patent into effect in 17 European countries.

 

 

 

	●	On February 28, 2024, the Company announced its partnership with Cliantha Research to perform a pharmacokinetic (PK) study as part of its FDA 510(k) clinical study plan. Initiating the clinical studies plan represented a critical milestone for the Company.
	●	In December 2023, the National Association of Testing Authorities (NATA) accredited the Company’s laboratory partner, Racing Analytical Services Limited (RASL), to perform its fingerprint confirmatory drug testing procedure. This accreditation serves as an independent benchmark for technical validation, demonstrating the Company’s commitment to product quality, safety, and reliability for its customers.
	●	During the year, the Company announced new partnerships with Robinson Brothers, DGP Plc and James Jones & Sons, VKVP Haulage, State Road Constructions, Titan Cranes and Rigging Pty Ltd. and P&O Ferries. Additionally, the Company reported the successful completion of 25,000 Intelligent Fingerprinting tests by its existing customer, Auctus Management Group. Continued customer account growth demonstrates the strength of the Company’s proprietary fingerprint sweat-based technology in the market. The Company looks to continue this momentum and expand into new customer segments and geographical regions throughout the Asia-Pacific region (the “APAC Region”), Europe, South America and the United Arab Emirates.
	●	On October 24, 2023, the Company announced its expansion into the New Zealand market, expanding its global footprint and extending the reach of its drug screening product. Expansion into New Zealand demonstrates the Company’s ability to introduce its product in new markets. The Company aims to continue growth in new markets, offering an alternative and innovative solution that places a strong emphasis on operational efficiency, fitness for duty, employee privacy and dignity.
	●	On September 27, 2023, the Company announced that its Intelligent Fingerprinting Drug Screening business had obtained recertification for the latest ISO 13485: 2016 harmonized quality management system standard for the medical device industry. The recertification took effect on October 14, 2023, and is valid for three years. ISO 13485:2016 is the international standard for medical devices quality management system certification and is a requirement for medical device manufacturers operating across key regions, including the USA, Canada, Europe, Japan, Singapore, Malaysia and Saudi Arabia.
	●	On September 21, 2023, the Company announced the successful debut of its Intelligent Fingerprinting Drug Screening System at the 2023 Workplace Health & Safety Show in Sydney, Australia.
	●	On September 8, 2023, the Company announced the successful completion of a key development milestone in its plans to add ketamine and tramadol to its Intelligent Fingerprinting Drug Screening System. New assays for testing both drugs have passed the Company’s initial design phase and are ready for scale-up and transfer to manufacture in preparation for potential clinical trials. After completing these activities and successful clinical trials, the assays can be added to the panel of substances detected by the Company’s proprietary drug screening system.
	●	On August 1, 2023, the Company announced that it had secured 8 new customers across various locations throughout Australia, which collectively employ over 10,000 individuals, within just two months of launching its Intelligent Fingerprinting Drug Screening System in Australia.
	●	On July 6, 2023, the Company announced that it has signed a distribution agreement with Chile-based company TSCOM SPA for its Intelligent Fingerprinting Drug Screening System, increasing the product’s availability across South America. The Company further announced that it received its first order under this agreement, from a Chile-based electrical distribution company.

 

 

 

Fourth Quarter and Full Year Ended June 30, 2024, Financial Results

 

All amounts are expressed in U.S. dollars unless indicated otherwise.

 

The Company’s revenue increased by 148% to $3.11 million for the fiscal year ended June 30, 2024, compared to $1.26 million for the fiscal year 2023.

 

The increase in revenue is due to market demand, increasing brand and product awareness, and continued expansion of the Company’s customer base. Throughout fiscal year 2024, the Company launched its Intelligent Fingerprinting Drug Screening System in the APAC region through its subsidiary, Intelligent Bio Solutions (APAC) Pty Ltd, adding to its existing commercialization and marketing efforts in the United Kingdom and Europe.

 

Loss from operations was $10.28 million for the 2024 fiscal year, compared to $12.59 million in the prior fiscal year. This improvement was primarily driven by an increase in revenue of $1.85 million and gross profit of $1.10 million, complemented by a reduction in total operating expenses of $1.53 million. The net loss attributable to INBS for fiscal year 2024 was $10.16 million, compared to $10.63 million in the prior fiscal year. This is mainly due to a fair value gain on the revaluation of financial instrument of $0.18 million in the fiscal year 2024 compared to $2.15 million in the prior fiscal year.

 

As of June 30, 2024, the Company’s cash and cash equivalents totalled approximately $6.30 million.

 

Financial Tables to Follow

 

 

 

Intelligent Bio Solutions Inc.

Consolidated Balance Sheets*

 

		As of June 30, 2024				As of June 30, 2023
ASSETS
Current assets
Cash and cash equivalents		$	6,304,098			$	1,537,244
Accounts receivable, net			429,704				293,861
Inventories, net			777,537				979,907
Research and development tax incentive receivable			525,332				498,758
Other current assets			497,572				552,791
Total current assets			8,534,243				3,862,561
Property and equipment, net			565,850				690,175
Operating lease right of use assets			306,744				546,475
Intangible assets, net			4,372,026				5,255,401
Total assets		$	13,778,863			$	10,354,612
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued expenses		$	1,704,568			$	2,610,028
Current portion of operating lease liabilities			274,834				223,447
Current portion of deferred grant income			2,486,668				2,338,057
Current employee benefit liabilities			469,381				358,942
Current portion of notes payable			515,282				353,211
Total current liabilities			5,450,733				5,883,685
Employee benefit liabilities, less current portion			63,615				24,902
Operating lease liabilities, less current portion			81,324				356,165
Notes payable, less current portion			-				402,862
Total liabilities			5,595,672				6,667,614
Commitments and contingencies
Shareholders’ equity
Common stock, $0.01 par value, 100,000,000 shares authorized, 3,456,000 and 194,200 shares issued and outstanding at June 30, 2024 and 2023, respectively*			34,557				1,942
Treasury stock, at cost, 116 shares as of June 30, 2024 and 2023, respectively*			(1	)			(1	)
Additional paid-in capital			60,971,740				46,180,112
Accumulated deficit			(51,964,332	)			(41,807,573	)
Accumulated other comprehensive loss			(712,614	)			(575,496	)
Total consolidated Intelligent Bio Solutions Inc. equity			8,329,350				3,798,984
Non-controlling interest			(146,159	)			(111,986	)
Total shareholders’ equity			8,183,191				3,686,998
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	13,778,863			$	10,354,612

 

*	Common Stock has been retroactively adjusted to reflect the decreased number of shares resulting from the 1-for-12 Reverse Stock Split on January 26, 2024, throughout the consolidated financial statements unless otherwise stated.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

Intelligent Bio Solutions Inc.

Consolidated Statements of Operations and Other Comprehensive Income (Loss)*

 

		Year ended June 30,
		2024				2023
Revenue		$	3,111,781			$	1,256,872
Cost of revenue (exclusive of amortization shown separately below)			(1,686,155	)			(930,204	)
Gross profit			1,425,626				326,668
Other income:
Government support income			424,776				737,628
Operating expenses:
Selling, general and administrative expenses			(9,258,496	)			(8,026,703	)
Development and regulatory approval expenses			(1,673,806	)			(507,424	)
Depreciation and amortization			(1,201,274	)			(966,732	)
Goodwill impairment			-				(4,158,670	)
Total operating expenses			(12,133,576	)			(13,659,529	)
Loss from operations			(10,283,174	)			(12,595,233	)
Other income (expense), net:
Interest expense			(167,140	)			(223,534	)
Realized foreign exchange loss			(1,178	)			(9,829	)
Fair value gain on revaluation of financial instrument			175,738				2,154,365
Interest income			84,822				9,676
Total other income, net			92,242				1,930,678
Net loss			(10,190,932	)			(10,664,555	)
Net loss attributable to non-controlling interest			(34,173	)			(32,835	)
Net loss attributable to Intelligent Bio Solutions Inc.		$	(10,156,759	)		$	(10,631,720	)
Other comprehensive income (loss), net of tax:
Foreign currency translation gain/ (loss)			(137,118	)			212,639
Total other comprehensive income (loss)			(137,118	)			212,639
Comprehensive loss			(10,328,050	)			(10,451,916	)
Comprehensive loss attributable to non-controlling interest			(34,173	)			(32,835	)
Comprehensive loss attributable to Intelligent Bio Solutions Inc.			(10,293,877	)			(10,419,081	)
Net loss per share, basic and diluted*		$	(6.38	)		$	(127.00	)
Weighted average units outstanding, basic and diluted *			1,592,746				83,717

 

The accompanying notes are an integral part of these consolidated financial statements.

 

*	Common Stock and per share amounts have been retroactively adjusted to reflect the decreased number of shares resulting from the 1-for-12 Reverse Stock Split on January 26, 2024, throughout the consolidated financial statement unless otherwise stated.

 

 

 

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. Additionally, the Company’s biosensor platform has the potential to test for various indications, ranging from immunological conditions to communicable diseases. The Company’s current customer segments 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. 

[e-mail] 

 

Investor & Media Contact:

 

Valter Pinto, Managing Director  

KCSA Strategic Communications  

PH: [phone]  

[e-mail]

 

 

Cover	Sep. 19, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 19, 2024
Entity File Number	001-39825
Entity Registrant Name	INTELLIGENT BIO SOLUTIONS INC.
Entity Central Index Key	0001725430
Entity Tax Identification Number	82-1512711
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	135 West, 41st Street
Entity Address, Address Line Two	5th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10036
City Area Code	(646)
Local Phone Number	828-8258
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	INBS
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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