INBS adds Pyrotek to its client roster with drug test tech

NEW YORK - Intelligent Bio Solutions Inc. (NASDAQ:INBS), a medical technology firm specializing in non-invasive rapid testing solutions, has announced the acquisition of a new client, Pyrotek Pty Ltd, an engineering solutions provider with a global presence. Pyrotek will be implementing INBS's Intelligent Fingerprinting Drug Testing Solution across its operations in Australia, transitioning from traditional saliva-based drug testing to a more efficient, fingerprint sweat-based method.

This new agreement allows Pyrotek to conduct drug screenings in-house, which is expected to reduce downtime, cut costs, and yield quicker results, thereby enhancing productivity and workplace safety. The system's ease of use enables comprehensive on-site testing for the entire workforce, a significant shift from the previous method that required an external provider and only allowed for periodic testing of selected employees.

The Sydney Site Manager of Pyrotek emphasized the importance of employee safety and expressed confidence that the integration of INBS's drug screening system would bolster their existing safety protocols. Following the initial rollout at its main branch in Sydney, Pyrotek plans to expand the use of INBS's technology across its Australian locations.

Intelligent Bio Solutions is poised for growth, with plans to submit for FDA 510(k) clearance in the fourth quarter of 2024 and aims to enter the US market in the first half of 2025. The company is targeting a segment of the drug screening products market, which is projected to reach approximately $15 billion by 2030.

Intelligent Bio Solutions serves over 400 customers in 19 countries and is advancing its Intelligent Fingerprinting Drug Screening System, which is designed to be a hygienic and cost-effective solution for detecting recent drug use. The technology is suitable for various industries where safety is critical, such as construction, manufacturing, engineering, and logistics.

This announcement is based on a press release statement and includes forward-looking statements subject to risks and uncertainties. Intelligent Bio Solutions' future results could materially differ from those anticipated in these forward-looking statements.

In other recent news, Intelligent Bio Solutions has reported significant advances in its operations. The company has completed a key phase in its FDA 510(k) submission process for its sweat-based drug testing method, bringing it a step closer to FDA clearance. In addition, Intelligent Bio Solutions has announced a $3 million stock offering in an agreement with Ladenburg Thalmann & Co. Inc., aimed at funding working capital and other corporate purposes.

The company has reported an 80% increase in revenue for the fiscal third quarter and a 193% rise for the nine months ending March 31, 2024, primarily due to a surge in product sales. The firm installed over 1,000 drug screening readers, marking a 65% growth from the previous year, and reported a 20% increase in cartridge sales.

Recent developments also include substantial salary increases for CEO Harry Simeonidis and CFO Spiro Sakiris, and the passing of board member Lawrence Fisher. The company has also been granted a significant number of fully vested shares to its top executives as part of its 2024 compensation analysis and evaluation.

The company also secured approximately $10.1 million in funding through a private placement transaction and was granted a new European patent for its DSR-Plus Cartridge Reader. These are the recent developments from Intelligent Bio Solutions Inc.

InvestingPro Insights

As Intelligent Bio Solutions Inc. (NASDAQ:INBS) expands its client base with the addition of Pyrotek Pty Ltd, investors may be interested in the company's financial health and market performance. According to InvestingPro data, INBS has shown impressive revenue growth, with a 147.58% increase in the last twelve months as of Q4 2024. This aligns with the company's expansion plans and potential market entry in the US.

However, it's important to note that INBS is currently not profitable, with an operating income margin of -330.46% in the same period. This is reflected in an InvestingPro Tip that states the company is "quickly burning through cash." This could be a concern for investors, especially as INBS prepares for FDA clearance and US market entry, which may require significant resources.

Despite these challenges, another InvestingPro Tip indicates that INBS "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company pursues growth opportunities. Additionally, analysts anticipate sales growth in the current year, which could be driven by new client acquisitions like Pyrotek and the potential US market entry.

For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for INBS, providing a deeper understanding of the company's financial position and market performance.

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