Mr. Cameron Groome reports

MICROBIX REPORTS STRONG REVENUES & EARNINGS FOR Q1 FISCAL 2025

Microbix Biosystems Inc. has released results for its first quarter of fiscal 2025 ended Dec. 31, 2024. Results for Q1 demonstrated the results of continuing efforts to increase recurring sales of Microbix's diagnostic-test-related ingredients and devices businesses, work that resulted in a 40-per-cent year-over-year increase in such revenues and material net income for the quarter.

Management discussion

Results for Q1 show robust growth in recurring sales of Microbix's test ingredients (antigens) and test quality assessment products (QAPs), which exceeded $6-million (collectively up by 40 per cent for Q1 versus prior year). These Q1 revenues generated solid margins and led to net earnings of $900,000. Microbix continues targeting annual sales growth in the range of 20 per cent to 40 per cent.

Quarter ended Dec. 31, 2024

For Q1, total revenue was $6,044,002. Within that total, antigen revenues were $4,266,758 (Q1 2024: $1,953,677), up 118 per cent from last year due to continuing strong demand. In turn, QAP revenues were $1,626,980, down 28 per cent from last year (Q1 2024: $2,248,236) due to reduced activity from test manufacturers versus the prior-year period and specifically relating to delays in test development programs of one such customer. Revenue from royalties was $150,263 (Q1 2024: $119,311). There were no non-recurring customer revenues in Q1 as compared with $4,086,660 in non-recurring Kinlytic licensing revenues generated in Q1 2024, which drove total revenues to $8,407,884, of which $4,321,224 were diagnostics related and from recurring clients. In summary, the company's level of revenues for Q1 was driven by strong growth in recurring revenues derived from segments of its core diagnostics related businesses.

Overall Q1 gross margin percentage was 62 per cent, down from 74 per cent last year. In the prior year, however, the higher Q1 2024 gross margins were strongly assisted by Kinlytic licensing revenues, to which no COGS (cost of goods sold) were attached. When compared without the impact of the Kinlytic licensing revenues, Microbix's margins for Q1 were 62 per cent, compared with 49 per cent in Q1 2024, and constituted a year-over-year improvement of 13 per cent due to improved efficiencies, pricing, product mix and currency exchange rates.

Operating expenses (including finance expenses) in Q1 decreased by 23 per cent relative to Q1 2024, principally due to significant Q1 2024 consulting fees incurred relating to the Kinlytic licensing agreement.

Over all, strong Q1 revenues and improved margins led to net income of $856,962 without any Kinlytic-related revenues versus Q1 2024 net income of $2,455,379 inclusive of Kinlytic-related revenues. Cash provided by operating activities was $792,702, compared with cash provided by operating activities of $1,338,952 in Q1 2024.

At the end of Q1, Microbix's current ratio (current assets divided by current liabilities) was 6.62 and its debt-to-equity ratio (total debt over shareholder equity) was 0.36. Both ratios were impacted by share repurchases during Q1, which utilized $511,000 toward the cancellation of 1.6 million shares.

Corporate outlook

Microbix will continue driving sales growth across all of its business lines while working to keep improving percentage gross margins and delivering bottom-line results. Management currently expects Microbix to generate meaningful year-over-year growth in revenues across full-year fiscal 2025.

Furthermore, at 11 a.m. ET on Thursday, Feb. 13, 2025, Microbix intends to hold a webinar discussion of Q1 results with its chief executive officer, chief financial officer and chief operating officer.

Investor and shareholders can participate in the webinar, hosted by Adelaide Capital, by registering on-line.. It will also be live streamed to YouTube.

A replay of the webinar will also be made available on Adelaide Capital's YouTube channel.

About Microbix Biosystems Inc.

Microbix Biosystems creates proprietary biological products for human health, with over 120 skilled employees and revenues now targeting $2-million or more per month. It enables the worldwide commercialization of diagnostic assays by making a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers while QAPs are sold to clinical lab accreditation organizations, diagnostics companies and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 and ISO 13485 accredited, U.S. Food and Drug Administration registered, Australian Therapeutic Goods Administration registered, and Health Canada establishment licensed and provides IVDR-compliant (In Vitro Diagnostic Regulation) CE-marked (Conformite Europeene) products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (for example, its DxTM for patient sample collection). Microbix is traded on the Toronto Stock Exchange and the OTCQX and is headquartered in Mississauga, Ont., Canada.

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