ASX Earnings Wrap: Netlinkz revenue grows; Prescient and Incannex march ahead on clinical trials
It’s the half yearly season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Highlights for Q3 FY23:
Netlinkz’s growth in the quarter was driven by revenues from enterprise customers for its VSN Express suite of products.
Cash receipts for Q2 was $6.7m, a 29% increase over the previous quarter and a 22% increase on the pcp.
Growth was also driven by a new ongoing contract with a telecommunications company based in Australia and New Zealand for its interception software business.
Late in the quarter, the company entered into an agreement with Elon Musk’s SpaceX for Netlinkz to be a non-exclusive global reseller of the Starlink satellite based high-speed, low-latency broadband internet.
This agreement creates a direct channel to market for Netlinkz’s proprietary network solution called the Virtual Secure Network (VSN). So far, enquiries about the Starlink offering have been very strong.
Australian and foreign governments, multi-national business, local and overseas telecommunication businesses, and rural and remote businesses and communities have all enquired about more than 30,000 VSN Starlink units.
During the quarter, Netlinkz also saw significant recurring revenue for its awful interception product, which resulted in an increase in revenue of 49% on pcp for this division.
Overseas, the company received a Letter of Intent from Thailand-listed ALT Telecom to form a partnership to distribute Netlinkz services and product bundles for enterprises in Thailand.
Netlinkz says this contract will soon be followed by contracts in other Southeast Asian markets.
The company drew $5.3m from its funding facility during the quarter to fund the Starlink unit purchases and support business growth.
New board and management appointments were made – including Hakan Eriksson, a former CTO at Telstra who has now joined Netlinkz as an independent non-executive director.
Anthea Ye, a former CEO of China Telecom for Australia and Oceania, was also appointed as Netlinkz’s new COO.
Highlights for for December 2022 quarter:
The achievements in the last quarter has reinforced Prescient’s position as an emerging leader in the next generation of personalised cancer therapies.
Along with a solid cash base of $20.9m, Prescient has teamed up with world-leading partners to drive the commercial value of its oncology assets.
During the quarter, a top-up placement raised $2.5 million, bringing the total proceeds from the top-up Placement and Share Purchase Plan (SPP) to approximately $11.3m – surpassing the company’s target of $8m.
In addition, an Australian Government Research and Development tax refund of $1.6 million was received in November.
Prescient’s leading asset, PTX-100, continues to report encouraging clinical responses and an excellent safety profile in patients with relapsed and refractory T-cell lymphomas.
The company believes that PTX-100 represents a major opportunity to address the unmet needs of a patient group with few options available.
Prescient and its partners also continued to demonstrate how its CAR platform was more effective at targeting a wider range of cancer tumours compared to current first generation CAR-T treatments.
Several of its OmniCAR studies have now advanced through a number of important pre-clinical proof of concept trials, moving them closer to the start of first-in-human studies.
The CellPryme cell therapy, which was unveiled and hailed as a future cell therapy at a prestigious international cell therapy conference, has passed several development milestones and is now ready for testing by potential commercial partners.
Looking ahead, Prescient says there are numerous catalysts in the coming calendar that it will work towards across both its targeted therapies, OmniCAR and CellPryme.
Highlights for for December 2022 quarter:
During the quarter, Incannex completed a constructive pre-Investigational New Drug (IND) application meeting with the US FDA for its drug, IHL-216A.
IHL-216A is Incannex’s proprietary combination of cannabidiol (CBD) and isoflurane (ISO) that is being developed for treatment of TBI.
The FDA has confirmed that the FDA505(b)2 application was the appropriate regulatory pathway for IHL-216A, whereby some of the information required for marketing approval can be derived from studies already completed on the drug components of IHL-216A and in the public domain.
Elsewhere, patient dosing in the Phase 1 clinical trial of IHL’s anti-inflammatory drug IHL-675A has been completed.
The full clinical study report will be available in the March quarter following complete analysis by the contract research organisation.
However, the absence of adverse events in Phase 1 is encouraging, and permits Incannex to plan and arrange Phase 2 studies, initially in patients with rheumatoid arthritis.
During the quarter, Incannex also initiated a Bioavailability and Bioequivalence (BA/BE) study on Obstructive Sleep Apnoea, and will be targeting an IND application with FDA in the March quarter.
The BA/BE study will include 116 participants who will each complete four single dose treatment periods, being dosed with the company’s IHL-42X, a drug for which a patent is currently pending.
Incannex is well funded, with $41.4m in cash in the bank.
The company says it is eligible to receive an annual cash rebate equivalent to approximately 43.5% of all monies spent on research and development in Australia.
Highlights for Q2 FY23:
EQS says it will direct considerable efforts this year on achieving vastly improved direct sales of its core offerings.
This includes increasing its paid annual member subscriptions for the Equity Story trader podcast content, as well as A Rich Life research services.
The company also wants to ramp up its stock trader education seminars under the brand Cincinnati Trading Method.
The Cincinnati Trading System product was launched in late December, and started with advertising through the usual social platform mediums.
The objective of Cincinnati is to start selling the trading course firstly in Australia and then around the world, with prices starting at $4,997.
Additionally, the company will focus on growing incidental revenue streams from Capital Markets activity via subsidiary Equity Story Securities, and Paid Research services directed at listed companies.
EQS commenced the distribution of Capital Markets to a growing list of over 45 sophisticated and wholesale investors, and over 900 other investors, including various IPO, pre-IPO and convertible note opportunities.
The company has engaged Iron Cage, headed by the well-known ‘sales guru’ Gulliver Giles, to build, train and lead a new sales team to accelerate the sales growth of the Cincinnati Trading System and the core sales of Equity Story Subscriptions.
To achieve all this, EQS says it has implemented better marketing systems, streamlined operating functions, reduced costs, restructured leadership and cleared away special project distractions.
From this month onwards, cost savings of around 30% are being implemented.
Trent McGraw resigned as CEO at the end of the quarter after leading the business for two years.
In his place, founder David Tildesley has assumed the role of CEO and will lead the business through the next phase with the objective of rapidly growing core product sales and cash flows.
For the quarter, receipts from customers for subscriptions were up 9% for the quarter to $293k, versus $269k in the previous quarter.
The company has a cash balance of $1.883 million at the end of the quarter.
At Stockhead we tell it like it is. While Netlinkz, Prescient, Incannex and Equity Story are Stockhead advertisers, they did not sponsor this article.