Intelligent Bio Solutions Inc

Intelligent Bio Solutions Inc. (NASDAQ: INBS) is a life sciences company. The Company is engaged in developing non-invasive, real-time monitoring and diagnostic tests for patients and their primary health practitioners. It operates through two segments, namely Commercially available Intelligent Fingerprinting Products (IFPG) and Development Stage Saliva Glucose Biosensor Platform (SGBP). Its product portfolio includes a portable drug screening system that works by analyzing fingerprint sweat using a one-time cartridge and portable handheld reader and also includes a development stage range of biosensor- based Point of Care diagnostic tests (POCT) that are developed in the modalities of clinical chemistry, immunology, tumor markers, allergens, and endocrinology.

Recent Business and Financial Updates

• Intelligent Bio Solutions Inc. Commences Key PK Study: Intelligent Bio Solutions Inc. (Nasdaq: INBS) has successfully begun subject recruitment and screening for its pharmacokinetic (PK) study, an essential step in the FDA 510(k) regulatory process. This study aims to enhance understanding of opiate metabolism and excretion in human sweat, comparing results with blood, saliva, and urine specimens. The company expects to complete subject screening by June 2024, moving closer to market introduction of its innovative non-invasive drug testing technology.
• Financial Results for the Fiscal 2024 Third Quarter
  • Cash and Shareholders' Equity: As of March 31, 2024, Intelligent Bio Solutions Inc. reported a significant increase in total cash and cash equivalents, reaching USD 9.40 million, up from USD 1.1 million on December 31, 2023. Shareholders' equity stood at USD 11 million on March 31, 2024.
  • Revenue Performance: The fiscal third quarter total revenues amounted to USD 0.82 million, marking an 80% increase compared to the same period the previous year. For the nine months ending March 31, 2024, total revenues were USD 2.38 million, reflecting a 193% increase year-over-year. This substantial growth in revenue was driven by the organic expansion of the business and entry into new markets and customer segments following the acquisition of Intelligent Fingerprinting Ltd (IFP) in October 2022.
  • Net Loss Analysis: The net loss for the fiscal third quarter was USD 2.98 million, which included non-cash expenses such as depreciation, amortization, and share-based expenses totaling USD 0.54 million. For the nine months ending March 31, 2024, the net loss attributable to INBS decreased by USD 600,287, from USD 7.97 million to USD 7.37 million. This reduction was primarily due to goodwill impairment charges of USD 4.10 million and operational results post-acquisition of IFP, partially offset by a fair value gain on the revaluation of convertible notes and holdback Series C Preferred Stock amounting to USD 2.06 million in the previous year. Additionally, the Company raised approximately USD 10.76 million through a warrant inducement transaction and a private placement, after deducting closing costs, placement agent fees, and other expenses.
• Fiscal Third Quarter & Recent Operational Highlights
  • Strategic Partnerships and Market Expansion: On February 28, 2024, INBS announced a partnership with Cliantha Research to conduct a pharmacokinetic (PK) study as part of its FDA 510(k) clinical studies plan, maintaining its trajectory for entry into the US market in 2025.
  • Customer Growth and Intellectual Property: Throughout the quarter, INBS secured 26 new accounts, encompassing approximately 16,779 employees. Moreover, the Company was granted a new European patent with unitary effect for its DSR-Plus Cartridge Reader, now effective in 17 European countries.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands consolidating with value of 42.78, with expectations of a consolidation. Additionally, the stock's current positioning is below both the 21-period SMA and 50-period SMA, which may serve as dynamic short to medium-term resistance levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 31, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.