Intelligent Bio Solutions — Fiscal First Quarter 2027 Earnings Summary

Financial Performance:

• Total revenue reached $1.39 million, a 25% increase year-over-year and 21% increase sequentially.
• Revenue surpassed the prior record of $1.145 million set in Q4 fiscal 2026, marking the third consecutive quarter above $1 million.
• Cartridge sales totaled $845,583, up 32% year-over-year and 35% sequentially, representing 61% of total revenue.
• Other sales were $281,253, up 52% year-over-year, representing 20% of revenue.
• Gross profit was $758,004, up 46% year-over-year, with a gross profit margin of 54.5% compared to 46.6% in the prior-year quarter.
• Net loss attributable to Intelligent Bio Solutions Inc. was $2.66 million, an improvement from $2.98 million in the same period last year.
• Net loss per share (basic and diluted) was $0.86, compared to $3.49 in the prior-year quarter.
• Cash and cash equivalents were $5.93 million as of September 30, 2026, up from $3.99 million as of June 30, 2026.
• Total assets were $13.62 million as of September 30, 2026, compared to $11.94 million as of June 30, 2026.
• Total liabilities were $6.27 million as of September 30, 2026, down from $6.65 million as of June 30, 2026.
• Selling, general and administrative expenses were $2.58 million, down from $2.71 million in the prior-year quarter.
• Development and regulatory approval expenses were $829,544, up from $486,169 in the prior-year quarter.

Guidance and Future Outlook:

• Management stated the company is well-positioned to continue growth through fiscal 2027.
• The company plans to enter the multi-billion-dollar U.S. drug screening market following FDA clearance.
• The company will continue to invest in clinical and regulatory work supporting its 510(k) submission.
• Future growth is expected to be driven by recurring demand for higher-margin cartridge consumables from the existing installed base.

Business Segments and Product Lines:

• The Intelligent Fingerprinting Drug Screening System is the primary product line, screening for opiates, cocaine, methamphetamine, and cannabis.
• The company is an authorized distributor of the SMARTOX SmarTest Patch, a 7-to-10-day sweat patch for detecting a broad range of substances.
• The Intelligent Fingerprinting Drug Screening business was recertified to the ISO 13485:2016 quality management system standard.
• The company serves customer segments including construction, manufacturing, transport, mining, energy, government, law enforcement, and drug treatment.

Market and Competitive Landscape:

• The company is targeting the multi-billion-dollar U.S. drug screening market.
• The installed base of readers grew to 1,978 units as of September 30, 2026.
• Active customer accounts reached 516 as of September 30, 2026, including 27 new accounts added during the quarter.

Risks and Challenges:

• Forward-looking statements highlight risks regarding the ability to successfully develop and commercialize drug and diagnostic tests.
• Risks include the timing and outcome of the FDA's review of the 510(k) premarket notification.
• Uncertainties exist regarding timelines to enter the U.S. market and realizing commercial benefits from partnerships.
• Actual results may differ materially from expectations due to known and unknown risks, uncertainties, and factors described in SEC filings.

Management Commentary and Tone:

• CEO Harry Simeonidis described the quarter as having the highest revenue in the company's history.
• Management highlighted improving unit economics driven by manufacturing efficiencies and a higher share of revenue from higher-margin cartridge consumables.
• The tone was confident, noting the business continues to scale with expanding gross profit margins.
• Management emphasized that the 510(k) submission was the culmination of the 2026 clinical program and a key step toward U.S. market entry.

Other Key Points:

• On September 9, 2026, the company submitted its 510(k) premarket notification to the FDA for the Intelligent Fingerprinting Drug Screening System for the detection of the opiate codeine.
• The 510(k) submission included clinical data demonstrating accuracy above 98%, sensitivity above 94%, and specificity of 100% across three independent U.S. clinical sites.
• The company completed precision testing, interference, usability, and method comparison studies, resolving all cybersecurity review items.
• Weighted average shares outstanding increased to 3,095,306 from 854,693 in the prior-year quarter.
• The company recognized $205,501 in government support income for the quarter.