GBS Inc. Reports Fourth Quarter and Full Year ended June 30, 2022 Preliminary Financial Results and Recent Business Highlights
- Entered into exclusive agreement with
- Completed collection and analysis in a study with coincidental sampling of oral fluid and blood to evaluate the time-course of glucose in oral fluids -
- Company to host conference call & webcast today at
“Over the course of the last fiscal year we have successfully advanced our novel saliva Glucose Biosensor into an ongoing comparative study at the Diabetes Research Institute of Sutter Health’s Mills-Peninsula Medical Center (MPMC) in San Mateo, California,” stated Dr.
Fourth Quarter and Full Year Highlights, Recent Operational Developments
Strategic Partnerships &
- Entered into an exclusive agreement with
Intelligent Fingerprinting Ltd.(IFP) for the rights to acquire the company including its point of care fingerprint sweat-based drug screening technology focused on opioids and drugs of abuse. This agreement forms the precursor for a proposed acquisition of IFP that, if consummated, would allow GBS to expand its portfolio with a rapid non-invasive diagnostic solution outside of saliva, while also accelerating revenue growth through an expanded portfolio of tests.
- Completed sample collection and analysis in a study of coincident sampling of oral fluid and blood to evaluate the time-course of glucose and intended to support clinical validation of the Saliva Glucose Biosensor and to solidify the direction of further development and subsequent clinical studies. The results from this study are encouraging and broadly in line with expectations with the blood: salivary glucose concentrations consistent with previous studies. GBS is now proceeding with the next phase of the glucose biosensor development program, including two key parallel clinical studies. In the first study, GBS will apply the results of our recent study to focus on eliminating the variables affecting glucose levels in saliva and in the sample collection method, and in the second study, GBS will move forward with a patient study involving saliva on the Glucose Biosensor test strip to assess accuracy and reproducibility.
- In the early part of the last fiscal year, GBS reorganized its leadership team to accelerate product development and manufacturing. Specifically, the Board of Directors appointed Professor
Steven Boyages, PhD, Chairman of the Board of GBS, to the additional position of Interim Chief Executive Officer, effective October 29, 2021. An endocrinologist with extensive experience in research and clinical science and a Clinical Professor of the Sydney Medical Schoolat The University of Sydney, Dr. Boyagesis also a seasoned healthcare executive who has led complex, large organizations across the healthcare industry.
- In June, GBS selected a site with the
University of Newcastlein Australiafor construction and operation of a new, state-of-the-art, proprietary biosensor manufacturing facility and will begin construction before the end of the year.
- Also in June, GBS hired
Peter Passarisas Director of Operations. Peter has 18 years of experience in manufacturing and enterprise industries. He began his career as a Chemical Engineer, R&D, eventually moving into technical sales and operations. Most recently, Mr. Passarisserved as Sales and Operations Manager at Ecolab, where he led a high performing sales team of engineers/sales reps and technicians. He will be responsible for managing the Newcastle SRA and product development.
March 19, 2022, Tom Parmakellis resigned as a member of the Board of Directors for reasons unrelated to the company’s operations. In connection with Mr. Parmakellis’ resignation, and to strengthen our Board’s operations, existing, independent board members were appointed to specific committee governance roles. Specifically, George Margeliswas appointed to serve on the Audit Committee; Christopher Towerswas appointed to serve on the Compensation Committee; and Lawrence Fisherwas appointed to serve on the Nominating Committee.
Anticipated Events and Targeted Milestones for the Coming Fiscal Year
|•||Prospective Acquisition of
|•||Full results of comparative study of coincident sampling of oral fluid and blood to evaluate the time-course of glucose and inform the downstream clinical strategy and product development.|
||Advancement into the final design and verification phase of the Glucose Biosensor development, involving two key parallel clinical studies.|
|1.||Applying the results of our recent blood:glucose study to focus on eliminating the variables affecting glucose levels in saliva and in the sample collection method; and|
|2.||A patient study involving saliva on the Glucose Biosensor test strip to assess accuracy and reproducibility.|
|Both studies will further improve saliva collection protocols and fine-tune the biosensor performance as we head towards finalizing our product design and moving it from Research and Development to Manufacturing.|
||Completion of algorithm, middle wear and application development with the
||Expansion of biosensor development to include additional analytes in the product portfolio in point of care testing using saliva.|
Full Year Ended
For the year ended,
Government support income was
Since our IPO, GBS has brought forward expenditure on key resources and commercial partners’ activities to advance projects towards commercialization. The major categories include:
- Research, Development & Commercialization for the full fiscal year 2022 of
$3.8 millioncompared to the year prior of $3.8 million.
- Employee Benefits Expense for the full fiscal year 2022 of
$2.3 millioncompared to the year prior of $1.9 million.
GBS is of the view that based on the current operating plan and financial resources, its cash, cash equivalents and marketable securities at
Conference Call & Webcast
|Conference Call Details:||Toll-Free: 877-407-3982
Conference ID: 13731215
|The conference call will be webcast live from the Company’s website and will be available via the following links:
|Webcast:||Webcast Registration Link
The webcast should be accessed 15 minutes prior to the conference call start time.
A replay of the webcast will be available following the conclusion of the live broadcast and will be accessible on the Company’s website at https://gbs.inc/
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, GBS Inc.’s ability to consummate the proposed transaction described in this press release, develop and commercialize its diagnostic tests, realize commercial benefit from its partnerships and collaborations, and secure regulatory approvals, among others. Although GBS Inc. believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. GBS Inc. has attempted to identify forward-looking statements by terminology, including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, included in GBS’s public filings filed with the Securities and Exchange Commission. Any forward-looking statements contained in this release speak only as of its date. GBS undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.
PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Amounts in $)
|Government support income||$||437,146||$||1,980,484|
|General and administrative expenses||4,920,103||3,359,065|
|Development and regulatory approval expenses||3,853,919||3,835,703|
|Prospectus and capital raising expenses||-||359,198|
|Total operating expenses||8,774,022||7,553,966|
|Loss from operations||(8,336,876||)||(5,573,482||)|
|Other income (expense):|
|Loss from unconsolidated equity method investment||-||(135,692||)|
|Realized foreign exchange loss||(3,987||)||(271,225||)|
|Total other income (expense)||2,900||(1,486,719||)|
|Net loss attributable to non-controlling interest||(27,925||)||(22,915||)|
|Net loss attributable to
Other comprehensive loss, net of tax:
|Foreign currency translation loss||$||(126,875||)||$||(297,309||)|
|Total other comprehensive loss||(126,875||)||(297,309||)|
|Comprehensive loss attributable to non-controlling interest||(27,925||)||(22,915||)|
|Comprehensive loss attributable to
|Net loss per share, basic and diluted||$||(0.57||)||$||(0.68||)|
|Weighted average shares outstanding, basic and diluted||14,665,263||10,414,886|
PRELIMINARY CONSOLIDATED BALANCE SHEETS
(Amounts in $)
|Cash and cash equivalents||$||8,238,301||$||12,573,685|
|Grant receivable, current portion||1,529,882||2,098,884|
|Research and development tax incentive receivable||353,048||1,025,455|
|Other current assets||746,761||2,509,017|
|Total current assets||10,867,992||18,207,041|
|Long-term grant receivable||1,092,773||3,148,328|
|Construction in progress||391,408||-|
|Other non-current assets||-||504,000|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accounts payable and accrued expenses||$||1,625,089||$||1,467,968|
|Related party payables||-||13,323|
|Current portion of deferred grant income||2,836,582||2,098,884|
|Current employee benefit liabilities||201,332||102,475|
|Total current liabilities||4,663,003||3,682,650|
|Employee benefit liabilities||50,626||21,770|
|Long-term deferred grant income||1,092,773||3,148,328|
|Commitments and contingencies (Note 10)|
|Additional paid-in capital||38,440,011||38,440,089|
|Accumulated other comprehensive loss||(788,135||)||(661,260||)|
|Total shareholders' equity||6,545,771||15,006,621|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$||12,352,173||$||21,859,369|
Source: GBS, Inc.