Bio-Gene Technology Limited - 2024 Annual Financial Report
BIO-GENE TECHNOLOGY LTD (BGT) Share Update August 2024 Tuesday 27th
Bio-Gene Technology Reports 2024 Annual Financial Results
Bio-Gene Technology Limited (ASX: BGT) has released its annual financial report for the year ended 30 June 2024, detailing significant developments and financial performance.
Instant Summary:
- Revenue from ordinary activities decreased by 87.7% to $18,320.
- Net loss after tax reduced by 22.2% to $2,409,179.
- No dividends declared or paid during the year.
- Net tangible asset backing per ordinary security decreased to 1.3 cents from 1.7 cents.
- Successful capital raising of $2.0 million to support ongoing operations.
Financial Performance
Bio-Gene Technology Limited reported a significant decrease in revenue from ordinary activities, down 87.7% to $18,320 compared to $149,232 in the previous year. Despite this, the net loss after tax improved by 22.2%, reducing to $2,409,179 from $3,095,782 in the prior year.
The company did not declare or pay any dividends during the year, consistent with its focus on reinvestment in research and development. The net tangible asset backing per ordinary security decreased to 1.3 cents from 1.7 cents, reflecting the reduced asset base.
Operational Highlights
Bio-Gene made significant progress in its strategic objectives, including advancing the development of its novel bio-insecticides, Flavocide® and Qcide®. The company strengthened its commercial partnerships, including agreements with Clarke Mosquito Control in the US and Evergreen Garden Care in the EU and ANZ.
Additionally, Bio-Gene was selected to participate in a US$10 million research program funded by the US Centers for Disease Control and Prevention for vector control targeting ticks as vectors of Lyme disease.
Capital Raising and Financial Position
During the year, Bio-Gene successfully raised $2.0 million through share placements, which will support the company's ongoing development and commercialization activities. As of 30 June 2024, the company held $2,209,558 in cash and cash equivalents, down from $2,990,527 at the end of the previous year.
The company's strategic objective remains to generate multiple revenue streams from technology licensing fees, milestone payments, and royalties by securing and owning active ingredient product registrations, developing proprietary manufacturing and production knowhow, and working with strong commercial partners on product development and marketing and distribution.
The financial results reflect the challenges faced by Bio-Gene in generating revenue from its novel bio-insecticides. However, the reduction in net loss and successful capital raising are positive indicators of the company's ability to manage its financial position and continue its development activities. The decrease in net tangible asset backing per ordinary security may impact investor sentiment in the short term.
Investor Reaction:
Analysts have noted the significant decrease in revenue but are encouraged by the reduction in net loss and the company's strategic partnerships. Investor reaction is likely to be cautious, with a focus on the company's ability to commercialize its products and generate sustainable revenue streams.
Conclusion:
Investors should closely monitor Bio-Gene's progress in its commercialization efforts and strategic partnerships. The company's ability to achieve regulatory approvals and secure additional funding will be crucial for its long-term success. Investors are encouraged to review the full annual report and consider the potential risks and opportunities associated with Bio-Gene's business model.