INBS Revenue Jumps 27% Amidst Mounting Losses, Going Concern Doubts

TL;DR

**INBS is burning cash at an alarming rate despite revenue growth, making it a speculative bet on future financing and regulatory approvals.**

AI Summary

Intelligent Bio Solutions Inc. (INBS) reported a net loss of $2,983,006 for the three months ended September 30, 2025, an increase from a net loss of $2,685,633 in the prior-year period. Revenue grew by 27.47% to $1,111,797, up from $872,287, driven by increased sales of cartridges ($640,300 vs. $448,514) and readers ($286,913 vs. $233,786). Despite revenue growth, the company's gross profit increased to $518,291 from $346,801. Operating expenses, however, significantly impacted profitability, with selling, general and administrative expenses rising to $2,659,824 from $1,949,016. The company's cash and cash equivalents stood at $1,660,105 as of September 30, 2025, up from $1,019,909 at June 30, 2025, largely due to $3,558,165 in financing activities, including $3,333,631 from warrant exercises. INBS faces substantial doubt about its ability to continue as a going concern, citing a working capital deficit of $577,705 and an accumulated deficit of $65,516,071, and will require additional funding within the next 12 months.

Why It Matters

INBS's revenue growth, particularly in cartridges and readers, suggests increasing product adoption, which is a positive signal for customers and long-term viability. However, the escalating net losses and a working capital deficit of $577,705 raise significant red flags for investors, indicating that the company is burning cash faster than it generates it. The explicit 'going concern' warning highlights the urgent need for additional capital, placing pressure on management and potentially impacting employee morale and future product development. In a competitive medical technology market, INBS's financial instability could hinder its ability to innovate and compete effectively against better-capitalized rivals, making it a high-risk investment.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubt about its ability to continue as a going concern' due to a net loss of $2,983,006 for the quarter and an accumulated deficit of $65,516,071. Its cash and cash equivalents of $1.66 million are deemed 'insufficient to fund its current operating plan through at least the next twelve months,' necessitating additional financing with no assurance of availability.

Analyst Insight

Investors should exercise extreme caution and consider this a highly speculative investment. Monitor closely for successful capital raises and concrete progress on regulatory approvals in the U.S. and other key markets, as the company's survival hinges on these factors.

Financial Highlights

revenue

$1,111,797

net Income

-$2,983,006

gross Margin

46.62%

cash Position

$1,660,105

revenue Growth

+27.47%

Revenue Breakdown

Key Numbers

• $1,111,797 — Revenue (Increased by 27.47% from $872,287 year-over-year for the three months ended September 30, 2025)
• $2,983,006 — Net Loss (Increased from $2,685,633 year-over-year for the three months ended September 30, 2025)
• $65,516,071 — Accumulated Deficit (As of September 30, 2025, indicating significant historical losses)
• $577,705 — Working Capital Deficit (As of September 30, 2025, indicating current liabilities exceed current assets)
• $1,660,105 — Cash and Cash Equivalents (As of September 30, 2025, deemed insufficient to fund operations for the next 12 months)
• $3,558,165 — Net Cash Provided by Financing Activities (For the three months ended September 30, 2025, primarily from common stock issuance and warrant exercises)
• 27.47% — Revenue Growth (Percentage increase in revenue from Q3 2024 to Q3 2025)
• $2,659,824 — Selling, General and Administrative Expenses (Increased from $1,949,016 year-over-year for the three months ended September 30, 2025)

Key Players & Entities

• Intelligent Bio Solutions Inc. (company) — Registrant and medical technology company
• GBS Inc. (company) — Former name of Intelligent Bio Solutions Inc.
• Intelligent Fingerprinting Limited (company) — Company acquired by INBS on October 4, 2022
• SEC (regulator) — Securities and Exchange Commission
• The Nasdaq Stock Market LLC (regulator) — Exchange where INBS Common Stock is registered
• U.S. Federal Deposit Insurance Corporation (regulator) — Insurer for U.S. bank deposits
• Australia's Financial Claims Scheme (regulator) — Insurer for Australian bank deposits
• U.K. Financial Services Compensation Scheme (regulator) — Insurer for U.K. bank deposits

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern due to a working capital deficit of $577,705 and an accumulated deficit of $65,516,071 as of September 30, 2025. Additional funding is required within the next 12 months.
• Insufficient Cash Position [high — financial]: As of September 30, 2025, cash and cash equivalents stood at $1,660,105, which is deemed insufficient to fund operations for the next 12 months, despite an increase from the prior quarter. This necessitates reliance on future financing.
• Rising Operating Expenses [medium — operational]: Selling, General, and Administrative (SG&A) expenses increased significantly to $2,659,824 for the three months ended September 30, 2025, up from $1,949,016 in the prior-year period. This substantial rise outpaced revenue growth and contributed to the increased net loss.
• Increasing Net Loss [medium — financial]: The company reported a net loss of $2,983,006 for the three months ended September 30, 2025, an increase from $2,685,633 in the same period last year. This indicates deteriorating profitability despite revenue growth.
• Dependence on Product Sales [medium — operational]: Revenue is primarily driven by sales of cartridges and readers. Any disruption in the supply chain, manufacturing, or demand for these specific products could materially impact the company's financial performance.

Industry Context

The diagnostics industry, particularly in areas like rapid testing, is competitive and subject to rapid technological advancements. Companies often rely on product innovation and market penetration to drive growth. Regulatory approvals and reimbursement policies can significantly impact market access and adoption rates for new diagnostic tools.

Regulatory Implications

As a company in the diagnostics sector, INBS is subject to regulatory oversight from bodies like the FDA in the US and similar agencies globally. Compliance with manufacturing standards, product efficacy requirements, and marketing regulations is critical. Changes in regulatory landscapes or failure to maintain compliance can lead to product recalls, fines, or market withdrawal.

What Investors Should Do

1. Monitor cash burn and future financing activities closely.
2. Evaluate the sustainability of revenue growth against rising operating expenses.
3. Assess the company's strategy for addressing its working capital deficit and accumulated deficit.

Glossary

Accumulated Deficit

The total cumulative net losses of a company since its inception that have not been offset by profits or additional paid-in capital. (Indicates significant historical unprofitability for INBS, standing at $65,516,071 as of September 30, 2025.)

Working Capital Deficit

A situation where a company's current liabilities exceed its current assets, suggesting potential short-term liquidity issues. (INBS has a working capital deficit of $577,705 as of September 30, 2025, contributing to its going concern uncertainty.)

Going Concern

An assumption that a company will continue to operate for the foreseeable future, typically at least the next 12 months. (The company's financial condition raises substantial doubt about its ability to continue as a going concern, requiring disclosure and potential mitigation strategies.)

Warrant Exercises

The act of a warrant holder purchasing shares of a company's stock at a predetermined price (the exercise price). (Warrant exercises provided $3,333,631 in financing for INBS, contributing to the increase in cash and cash equivalents.)

CODM

Chief Operating Decision Maker, the individual responsible for allocating resources and assessing the performance of operating segments. (The CEO of INBS serves as the CODM, reviewing financial information on a consolidated basis and by geographic region for resource allocation and performance evaluation.)

Year-Over-Year Comparison

For the three months ended September 30, 2025, INBS reported a 27.47% increase in revenue to $1,111,797 compared to the prior year, driven by higher sales of cartridges and readers. However, this top-line growth was overshadowed by a significant increase in operating expenses, particularly SG&A, which rose from $1,949,016 to $2,659,824. Consequently, the net loss widened from $2,685,633 to $2,983,006. The company's cash position improved to $1,660,105 due to financing activities, but it continues to face substantial doubt about its ability to continue as a going concern, evidenced by a working capital deficit and accumulated deficit.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share INBS The Nasdaq Stock Mar

Filing Documents

• form10-q.htm (10-Q) — 745KB
• ex31-1.htm (EX-31.1) — 19KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 8KB
• ex32-2.htm (EX-32.2) — 8KB
• 0001493152-25-021751.txt ( ) — 4539KB
• inbs-20250930.xsd (EX-101.SCH) — 35KB
• inbs-20250930_cal.xml (EX-101.CAL) — 53KB
• inbs-20250930_def.xml (EX-101.DEF) — 111KB
• inbs-20250930_lab.xml (EX-101.LAB) — 326KB
• inbs-20250930_pre.xml (EX-101.PRE) — 243KB
• form10-q_htm.xml (XML) — 623KB

Financial Statements (unaudited)

Financial Statements (unaudited) Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) 4 Condensed Consolidated Statements of Changes in Shareholders' Equity 5 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20 PART II. OTHER INFORMATION 22 Item 1.

Legal Proceedings

Legal Proceedings 22 Item 1A.

Risk Factors

Risk Factors 22 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25

Signatures

Signatures 26 2 PART I. FINANCIAL INFORMATION Intelligent Bio Solutions Inc. Condensed Consolidated Balance Sheets As of September 30, As of June 30, 2025 2025 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 1,660,105 $ 1,019,909 Accounts receivable, net 717,823 594,614 Inventories 628,177 635,215 Research and development tax incentive receivable 924,062 734,408 Assets held for sale 66,020 327,500 Other current assets 488,182 826,976 Total current assets 4,484,369 4,138,622 Property and equipment, net 271,745 251,325 Operating lease right-of-use assets 1,808,892 69,520 Intangibles, net 3,473,303 3,790,319 Total assets $ 10,038,309 $ 8,249,786 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 3,992,427 $ 4,534,246 Current portion of operating lease liabilities 362,801 84,659 Current employee benefit liabilities 567,059 534,990 Notes payable 139,787 197,146 Total current liabilities 5,062,074 5,351,041 Employee benefit liabilities, less current portion 100,041 84,921 Operating lease liabilities, less current portion 1,449,265 - Total liabilities 6,611,380 5,435,962 Commitments and contingencies (Note 9) - - Shareholders' equity Common stock, $ 0.01 par value, 100,000,000 shares authorized, 9,098,473 and 9,098,357 shares issued and outstanding, respectively, as of September 30, 2025; 7,323,377 and 7,323,261 shares issued and outstanding, respectively, as of June 30, 2025 90,985 73,230 Treasury stock, at cost, 116 shares as of September 30, 2025 and June 30, 2025 ( 1 ) ( 1 ) Additional paid-in capital 69,325,542 65,783,916 Accumulated deficit ( 65,516,071 ) ( 62,533,065 ) Accumulated other comprehensive loss ( 279,228 ) ( 327,944 ) Total consolidated Intelligent Bio Solutions Inc. equity 3,621,227 2,996,136 Non-controlling interest ( 194,298 ) ( 182,312 ) Total shareho

financial statements

financial statements. Significant estimates inherent in the preparation of the accompanying unaudited condensed consolidated financial statements include the useful lives and impairments of long-lived assets, realizability of inventory, the allocation of transaction price among various performance obligations, fair value of warrants, realization of deferred tax assets and related uncertain tax positions, valuation of stock-based compensation awards and the allowance for credit losses. Actual results could materially differ from these judgments and estimates under different assumptions or conditions. Segment Reporting Accounting Standard Codification ("ASC") 280, Segment Reporting, defines operating segments as components of an enterprise where discrete financial information is available that is evaluated regularly by the chief operating decision-maker ("CODM") in deciding how to allocate resources and in assessing performance. The Company's Chief Executive Officer performs the function that allocates resources and assesses performance, and thus serves as the Company's CODM. The CODM reviews the assets, operating results, and financial metrics for four geographic segments: Americas consists of North America and South America United Kingdom consists of England, Scotland, Northern Ireland and Wales Asia Pacific ("APAC") consists of Southeast Asia and Oceania Rest of World consists of all other countries The CODM decides how to allocate resources based on a review of financial information presented on a consolidated basis accompanied by disaggregated information about revenue by product types, other income and long-lived assets for the purpose of allocating resources and evaluating financial performance for each geographic region. Accordingly, there are four reportable segments. Accounts Receivable and Allowances for Credit Losses Accounts receivable primarily arise out of sales to customers. The allowance for credit losses is an amount equal to the e

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