GBS(US:INBS)2026-02-12 13:31Revenue and Sales Performance - Revenue from sales of goods increased by $289,280 to $896,774 for the three months ended December 31, 2025, compared to $607,494 for the same period in 2024, driven by the addition of 17 new customers[110]. - Revenue from sales of goods increased by $528,790 to $2,008,571 for the six months ended December 31, 2025, compared to $1,479,781 for the same period in 2024, due to the addition of 49 new customers[111]. - Revenue for the three months ended December 31, 2025, was $896,774, up from $607,494 in the same period of 2024, while revenue for the six months ended December 31, 2025, reached $2,008,571, compared to $1,479,781 in 2024[119]. Profitability Metrics - Gross profit increased by $236,626 to $459,739 for the three months ended December 31, 2025, from $223,113 for the same period in 2024[114]. - Gross margin improved to 48.69% from 38.51% in the prior-year period, attributed to operational efficiencies and capitalization of certain direct labor costs[115]. - Contribution margin increased by $235,881 to $667,923 for the three months ended December 31, 2025, from $432,042 for the same period in 2024, with an improvement of approximately 3.36 percentage points[117]. - Contribution margin increased by $473,016 to $1,469,657 for the six months ended December 31, 2025, from $996,641 for the same period in 2024, reflecting an improvement of approximately 5.82 percentage points due to enhanced production efficiency and a favorable sales mix[118]. Operating Expenses - Total operating expenses increased to $3,168,197 for the three months ended December 31, 2025, from $2,621,235 for the same period in 2024[109]. - Selling, general and administrative expenses rose by $527,927 to $2,337,041 for the three months ended December 31, 2025, and by $1,238,735 to $4,996,865 for the six months ended December 31, 2025, driven by increased marketing and staffing costs[122]. Net Loss and Financial Health - Net loss attributable to Intelligent Bio Solutions Inc. was $2,677,590 for the three months ended December 31, 2025, compared to a net loss of $2,249,470 for the same period in 2024[109]. - The Company expects its cash and cash equivalents will be insufficient to fund its operating plan for at least 12 months, raising substantial doubt about its ability to continue as a going concern[149]. - The Company intends to raise additional capital through equity or debt financings, but there is no assurance that such funding will be available on acceptable terms[150]. Strategic Initiatives and Future Outlook - The company anticipates annual production cost savings of more than 40% from a new strategic manufacturing partnership, leading to an expected improvement of approximately 20 percentage points in gross profit[108]. - The company expanded sales and distribution throughout Australia, New Zealand, and other countries in the APAC Region, establishing necessary infrastructure and regulatory compliance[108]. - The company initiated research to broaden the capabilities of the Intelligent Fingerprinting System to test for additional drugs, facilitating expansion into point-of-care medical testing[108]. - The Company expects development and regulatory expenses to increase in future periods as it continues to gather additional supporting data for its new 510(k) submission to the FDA[126]. Capital and Financing Activities - The company raised approximately $3,624,773 through the sale of 347,863 shares under the At-the-Market Offering Agreement from September 18, 2024, to December 31, 2025[141]. - The Company issued a total of 154,549 shares of common stock, raising approximately $3.84 million in gross proceeds from the exercise of Series G and Series H-1 Warrants[144]. - The December Private Placement raised approximately $10.0 million in gross proceeds, intended for working capital and general corporate purposes[147]. - The Company has a repayment obligation of $2,096,222 related to the Australian Government Grant, which is disclosed as liabilities on the balance sheet[149]. Accounting and Compliance - The Company filed a Resale Registration Statement with the SEC by January 10, 2026, which was declared effective on January 21, 2026[148]. - The Company has elected to use the extended transition period for complying with new accounting standards, which may affect the comparability of its financial statements[151]. - The Company’s critical accounting policies and estimates are detailed in its 2025 Form 10-K, which may impact its financial statements materially[154]. - As of December 31, 2025, the Company did not have any off-balance sheet arrangements[152].