Clever Culture Systems (CC5) Q1 2025 earnings summary

Executive summary

• Achieved record sales in the pharmaceutical sector, with eight APAS instruments sold since March 2024 and a growing pipeline with major pharmaceutical manufacturers, totaling expected revenue of ~$5.3 million over 7 years.

• Secured major contracts with AstraZeneca (five instruments valued at over AUD 3.4 million/~$2.3 million) and Bristol Myers Squibb, with further evaluations ongoing.

• Completed a clinical sale to Quest Diagnostics via Thermo Fisher, marking entry into a large US diagnostics network.

• Launched new APAS Contact Plate application, expanding market and recurring revenue potential.

• Appointed US pharmaceutical leader Ian Wisenberg as non-executive director.

Financial highlights

• Net cash inflow for the quarter was AUD 0.1 million/$0.1 million, with net cash outflows from operating and investing activities of AUD 0.8 million/$0.8 million, including AUD 600,000 in receipts from AstraZeneca deposits and other income.

• Net cash inflows from financing activities totaled AUD 900,000/$0.9 million, mainly from option exercises.

• Quarter-end cash balance stood at AUD 2.5 million/$2.5 million.

• $1.0 million raised from exercise of options during the quarter, $2.2 million in total.

• Related party payments of $199,000 made to directors.

Outlook and guidance

• Expects positive net operating and investing cash flows over the next two quarters, underpinned by AUD 4.4 million/over $4.4 million in committed inflows.

• Anticipates higher cash outflows next quarter due to inventory replenishment.

• Focused on completing AstraZeneca deliveries, supporting BMS evaluations, and advancing new sales opportunities.

• Development of the contact plate application expected to complete by mid-2025.

• Transitioning all clinical service contracts from Thermo Fisher, adding ~$350,000 per annum in recurring revenue.