GBS(INBS) - 2023 Q4 - Annual Report

Revenue and Profit - Revenue for the year ended June 30, 2023, was $1,256,872, an increase from$0 in the previous year, attributed to the acquisition of Intelligent Fingerprinting Limited and the launch of fingerprint drug testing in the APAC region [317]. - Gross profit for the same period was $326,668, up from$0, primarily due to the acquisition of Intelligent Fingerprinting Limited [320]. - Government support income rose to $737,628 from$437,146, an increase of $300,482, mainly due to qualifying research and development expenditures [322]. - Fair value gain on revaluation of financial instruments increased by$2,154,365 to $2,154,365 from$0 for the year ended June 30, 2023 [332]. - Interest income decreased by $4,750 to$9,676 from $14,426 for the year ended June 30, 2023, due to lower bank balance [333]. - Unrealized foreign currency translation gain increased by$339,514 to a gain of $212,639 from a loss of$126,875 for the year ended June 30, 2023 [334]. - Net loss attributable to INBS increased by $2,325,669 to$10,631,720 from $8,306,051 for the year ended June 30, 2023, primarily driven by impairment of goodwill of$4,158,670 [335]. Expenses - Selling, general and administrative expenses increased by $3,106,600 to$8,026,703, largely due to the addition of approximately 32 staff from the acquisition of Intelligent Fingerprinting Limited [324]. - Development and regulatory expenses decreased by $3,346,495 to$507,424, primarily due to the expensing of a prepaid R&D contribution in the previous year [326]. - Depreciation and amortization expenses were $966,732, an increase from$0, due to the amortization of acquired intangibles from the acquisition [328]. - Goodwill impairment expenses were $4,158,670, reflecting the impact of the acquisition of Intelligent Fingerprinting Limited [329]. - Interest expense increased to$223,534 from $7,539, attributed to interest on convertible notes post-acquisition [330]. Cash and Working Capital - As of June 30, 2023, the company had$1,537,244 in cash and cash equivalents and a working capital deficit of $2,021,124 [337]. - The company expects its cash and cash equivalents will be insufficient to fund its current operating plan for at least the next twelve months [338]. Grants and Deferred Income - The total grant value of$4.7 million was recognized as both a grant receivable and deferred grant income, with payments of $1.4 million and$2.1 million received during the years ended June 30, 2023 and 2022, respectively [348]. - A total of $127,944 and$51,258 deferred grant income was recognized within other income during the years ended June 30, 2023, and 2022, respectively [350]. Strategic Initiatives - The company intends to submit a 510(k) pre-market notification for its Intelligent Fingerprinting Drug Screening Cartridge as part of its U.S. expansion strategy [315]. - The company has expanded its customer base by entering into sales contracts with various firms, enhancing its market presence [316]. Other Information - The company has no off-balance sheet arrangements or relationships with unconsolidated entities [341]. - The company recognized an impairment charge of $4.2 million in the IFPG segment related to goodwill associated with the IFP Acquisition [354].