Intelligent Bio Solutions Reports Revenue Decline and Increased Net Loss for Six Months Ending December 31, 2024

Intelligent Bio Solutions Inc. reported a decline in financial performance for the six months ending December 31, 2024, with total revenue of $1.48 million, down from $1.56 million in the same period of the previous year. The company experienced a net loss of $4.94 million, compared to a loss of $4.39 million for the prior year. The decrease in revenue was attributed primarily to instability in the construction sector, which impacted sales of its fingerprint drug screening readers. Despite the revenue decline, the company managed to increase its gross profit margin, driven by a higher proportion of sales from high-margin cartridges.

The company’s total current assets decreased significantly to $4.06 million as of December 31, 2024, from $8.53 million at the end of June 2024. This decline was accompanied by a reduction in cash and cash equivalents, which fell to $2.24 million from $6.30 million. Current liabilities also decreased to $4.40 million from $5.45 million, resulting in a working capital deficit of $341,243. The company’s accumulated deficit increased to $56.90 million, reflecting ongoing operational losses.

Strategically, Intelligent Bio Solutions has made significant advancements, including the submission of its 510(k) premarket notification to the U.S. Food and Drug Administration (FDA) for its Intelligent Fingerprinting Drug Screening System. The company also completed a method comparison study confirming the system's effectiveness. Additionally, it secured 19 new accounts during the quarter, contributing to a total of over 400 active customer accounts across 19 countries. The company continues to focus on expanding its market presence and enhancing its product offerings.

Operationally, the company reported an increase in selling, general, and administrative expenses, which rose to $3.76 million for the six months ended December 31, 2024, down from $4.16 million in the prior year. This decrease was primarily due to reduced legal and insurance costs, offset by increased marketing and travel expenses. Research and development expenses surged to $1.46 million, reflecting the company's commitment to advancing its product development and regulatory approval processes.

Looking ahead, Intelligent Bio Solutions anticipates continued operating losses and recognizes the need for additional funding to support its operations. The company has entered into an At The Market Offering Agreement to raise up to $3 million, having raised approximately $676,619 through the sale of common stock by the end of December 2024. However, there is substantial doubt regarding the company's ability to continue as a going concern without securing further financing. The management is actively working to address its financial challenges while pursuing its strategic objectives in the medical technology sector.