Currently $16.5m MC Shares outstanding 324m Turned over 191m shares today between 5c - 7.5c. $12m traded today Today's VWAP 6.277 Top 11 holders hold approx. 187m shares as of 30/06/2019 - IRESS Cash burn in March quarter $1.66m Cash end of March quarter $2.9m Estimated cash outflows for quarter ending June $1.84m as per the quarterly ending 31st March If cash burn is similar to the estimated amount in the March quarterly that leaves approx $1m There was a announcement on the 13/05/19 about receiving $1.7m tax rebate for R&D activities up until the 31st December 2018. This extends until FY 2020 so a rebate can be expected each year. I would assume the rebate will be soon but I have emailed the company on when they can expect this. If they get the R&D rebate soon cash on hand is $2.7m So even with the R&D rebate there will be a capital raise soon as they won't let the $$$ get to low. Hard to say whether there will be a cornerstone investor after the FDA announcement today. The large holding of the top 20 have leads me to believe this could be a option. Or if it will be to sophs Technology protected by 8 patents
Solid gross margin on the capital investment and huge gross margin per test.... The following calcs are based off their presentation or approximated by myself
Let's say 100 instruments are sold in the first year 100*($500,000*.5) = $25,000,000 gross profit Minus $10m for OPEX I know the diagram below uses 35% capacity utilization but that's quite low in reality. Using those numbers $2,200,000/$1,500 = 1466.67 uses per year. 1466.67/365 days = 4 uses per day (quite low) Anyway I'll use their numbers. $2.2m per instrument at 80% gross margin. $2.2m*0.8 = $1.76m $1.76m*100 instruments = $176m gross profit from 100 instruments sold Minus 50m OPEX So $15m from the sale of 100 instruments and $126m from use of the instruments = $141m gross profit Because this is a bearish calcs. Let's take $80m off for revenue share. $61m gross profit minus tax, let's say $40m NET PROFIT at a P/E of 15 (reasonable/low for this sector) = $600m market cap
I mean the numbers are actually compelling if they can pull this off. There is a large upside potential. These numbers used 35% capacity on the instruments... I would think they could easily sell 100 units a year especially if the technology is less invasive, less harmful, and more accurate.
IBX Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
