IBT.V - Ibex Technologies Inc. (Profitable Biotech)
Posted: Thursday Dec 17 10:47:30AM 2015
(Ibex Technologies Inc) Due Diligence Report
Common Shares: 24,703,244
Insider Holdings: 9,133,650 (37% as per SEDI)
**CEO Paul Baher recently purchased 246,000 or 1% on December 2nd through the market**
Q1 2016 Financial Results + MD&A (Ending October 31st 2015)
Cash: $2,636,690 ( July 2015: $2,084,826) - $0.1067c a share in cash
Prepaid Expenses: $103,680
Assets Held For Sale: $438,012
Property & Equipment: $2,121,192
Total Assets: $6,711,439 ( July 2015: $6,379,167)
Long-Term Debt: $1,203,255
Deferred Income: $28,989
Total Liabilities: $1,679,592 ( July 2015: $1,707,405)
NAV(Net Asset Value) is just over $5 million or $0.20c a share.
Sales: $1,414,875 ( prior year sales: $627,447)
Net Income: $360,206 or $0.0145c EPS
Prior year sales Recap(from year end results)
Total Sales in 2015: $3,491,130
Net Income: $209,628
IBV is so undervalued given the financials that it makes sense as to why insiders were buying stock near 52 week highs just recently. IBT could pay all it’s debt and liabilities off right now and still have around a million dollars in liquid cash. Revenue keeps growing and the US/CDN dollar exchange will help that. A realistic price for IBT right now would be around the $0.20 to $0.25c range given its assets and earnings.
The Company, through its wholly owned subsidiaries, IBEX Pharmaceuticals Inc. and BioResearch Products Inc. (“BRP”), manufactures and markets enzymes for biomedical use. These enzymes are sold directly by the Company to manufacturers of medical devices, quality control labs and academic research institutions. Heparinase I is the most important of the IBEX enzymes. Its potential lies in its ability to cleave heparin and low molecular weight heparins and thereby neutralize the effects of heparin and heparinoids, drugs commonly used in hospitals which interfere with haemostasis test. Heparinase I recognizes and cleaves a pentasaccharide sequence which occurs in both heparin and the low molecular weight heparins, thereby neutralizing their anticoagulant activity. IBEX produces its enzymes at its sites in Montréal, Québec and North Liberty, Iowa, as well as at third party manufacturing facilities monitored by IBEX personnel. In addition to making and selling enzymes, IBEX also provides lyophilization services related to the making of components for disposable medical devices which are used in the hemostasis point of care market.
As at October 31, 2015, the Company had net working capital of $3,629,097 compared to net working capital of $3,192,333 as at July 31, 2015. Cash and cash equivalents increased by $551,864 to $2,636,690.
Management believes that the Company has sufficient funds to meet its obligations and planned expenditures for the ensuing twelve months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, twelve months from the end of the reporting period.
We see an improving picture and expect to be cash positive in the 2016 Fiscal Year if current customer purchase projections hold, and if we continue to benefit from the favourable US/CAN exchange rate.
The Company continues to work on a number of projects with our key customers, some of which it hopes will result in significant revenue in Fiscal 2016 and beyond. However, we cannot give any assurances that any of these projects will come to fruition and produce revenues
As at December 16, 2015, the Company has 1,015,000 stock options outstanding with exercise prices ranging from $0.05 to $0.24 and expiry dates ranging from January 2017 to December 2023. As at December 16, 2015, on an if-converted basis, these stock options would result in the issuance of 1,015,000 common shares at an aggregate exercise price of $191,400.
Posted: Thursday Dec 17 8:12:20AM 2015
I usually have a full due diligence report to post, but unfortunately we will have to wait for that until IBT releases their financials on Sedar. In the meantime I will use year end results, mixed with the Q1 news release that came out today.
IBT.V is a inexpensive biotech that looks to have turned the corner here in terms of probability and growth. Their year end results show a cash position of over $2 million, $6.38 million in assets and $1.7 million in liabilities. There are only 24.7 million common shares, of which 37% is held by insiders. In fact, two weeks ago the CEO purchased 246,000 shares on the open market which is 1% of the entire float. The company ended 2015 with a $210,000 net income and just today announced a $360,000 net income which means things are starting to grow rapidly. Last year IBT.V did $3.5 million in revenue total and just in Q1 2016 they did half of that amount. As well, sales are in US dollar, leveraging the company. Below is the news release from today:
IBEX earns $360,206 in fiscal Q1
2015-12-17 06:21 MT - News Release
Mr. Paul Baehr reports
IBEX REPORTS FIRST QUARTER FISCAL 2016 RESULTS
IBEX Technologies Inc. has released its financial results for the quarter ended Oct. 31, 2015.
"We are pleased to report an excellent quarter and start to the 2016 fiscal year. Net profit and working capital were up significantly over year ago, driven by lower operating costs and a significant increase in sales," said Paul Baehr, IBEX president and chief executive officer. "We continue to forecast a positive cash flow for the year; however, quarter-to-quarter profitability will vary significantly due the large variations in customer order patterns."
First quarter fiscal 2016 financial results
Sales for the quarter ended Oct. 31, 2015, totalled $1,414,875 compared with $627,447 in the same period of the prior year. Sales were up by $555,832 in the company's IBEX Pharma subsidiary and by $231,596 in its bioresearch products subsidiary. This increase in sales versus the previous year is primarily due to the quarter-to-quarter fluctuation in customer orders, rather than a sustained increase in sales.
The company sustained net earnings of $360,206, as compared with a net loss of $253,708 in the year-ago period. The favourable change in earnings traced mainly to the sales increase of $787,428 offset by the negative impact of inventory allocation of $194,166.
FINANCIAL SUMMARY FOR THE QUARTERS ENDED
Oct. 31, Oct. 31,
Revenues $1,414,875 $627,447
Earnings (loss) before interest, tax,
depreciation and amortization $460,302 ($161,642)
Depreciation $88,637 $84,137
Net earnings (loss) $360,206 ($253,708)
Earnings (loss) per share $0.01 ($0.01)
Cash and equivalents increased by $551,864 during the quarter ended Oct. 31, 2015, as compared with the year ended July 31, 2015. Net working capital increased by $436,764 during the quarter ended Oct. 31, 2015, as compared with the year ended July 31, 2015.
The company sees an improving picture and expects to be cash positive in the 2016 fiscal year if current customer purchase projections hold, and if the company continues to benefit from the favourable U.S./Canadian dollar exchange rate.
Management believes that the company has sufficient funds to meet its obligations and planned expenditures for the ensuing 12 months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period.
We seek Safe Harbor.
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