ASX Quarterlies: Records tumble, targets achieved in good news for shareholders
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It’s quarterlies season as the ASX market announcements page becomes increasingly flooded with lodgements. The last day for companies to submit reports is the last business day of the first month after the prior quarter. If they don’t, they risk suspension (and consequential panic and anger from shareholders).
Here’s some of the reports which have caught our eye today.
The medicinal cannabis company announced another record quarter in Q4 FY22 with total cash receipts of $23 million.
Cronos received cash receipts from customers for FY22 of $70 million, representing 245% year-on-year growth.
Cronos achieved net positive operating cash flows of more than $13 million for FY22 with total cash increasing to more than $16 million at the end of the financial year.
A record 486,000 products were sold through BHC’s CanView platform during FY22m representing 270% year-on-year growth.
The company said almost half of Australian pharmacies now have accounts on the CanView platform. Cronos also completed a successful merger with CDA Health in FY22.
CEO Rodney Cocks said its CanView platform has been key to the strong results and has become the sales and distribution partner of choice for leading Australian medicinal cannabis suppliers.
“Having now established nationwide coverage of pharmacies, we look to execute the next phase of our growth strategy with our national medical science liaison team targeting further prescribers across the country,” he said.
The social commerce company had cash in the bank of $2.23 million as at June 30,2022, an increase of $940k from the prior quarter. It finished FY22 with operating cash flow of $200k, versus $970k for the previous year.
Net cash from operating activities for the quarter was $4k with net trading receipts of $8k.
The company said its mobile subscription division shows ongoing profitability alongside implementing growth measures on all business fronts.
The company has growing profitability per user and is implementing new technologies.
Talking Head’s technology development is accelerating and hitting all milestones on time with positive R&D results for next software version. A new platform version will be deployed in the following weeks including extended device support, improved voice recognition and stability features.
CM8 strategic partnership with media search company SourceFlare and Talking Head tech integrations in the first month of activity on the proof-of-concept stage exceeded expectations with $26k in revenue in June.
Subject to shareholder approval at the EGM on August 3, CM8 plans to raise a further $600k in cash via share placement.
Wingara which specialises in the processing, storage and marketing of agriculture produce for export markets has reported a solid June quarter.
Positive operating cash flow continue into FY23 from FY22 with the company ending the quarter on $1.2 million.
Wingara said it has had a strong start to FY23 with record JC Tanloden quarterly sales volume of 26,949 MT, up 36% and 6% on Q1 FY22 and prior quarterly respectively.
Austco Polar blast freezing volumes are recovering with the sale of the business scheduled for completion on August 5.
CEO James Whiteside said the business is recovering from a very challenging post-Christmas period, with strong demand returning to the red meat sector and its ability to service the continued strong demand in the export market improving.
“Major fodder markets have accepted further significant price increases made necessary by rising logistics costs and the weakening of the Australian dollar has had a significant and positive impact,” he said.
“However as with so many businesses, we continue to face labour shortages, exacerbated by the resurgence of covid-19.
“Notwithstanding our higher production volumes as a consequence of operational efficiencies, this shortage continues to impact production.”
Completion of the sale of Austco Polar Cold Storage is expected to substantially improve cashflows.
Aussie clinical stage biotech Dimerix highlighted significant progress during Q4 FY22 with its lead program ACTION3 Phase 3 clinical trial study in focal segmental glomerulosclerosis (FSGS) with several of the ~75 clinical sites actively recruiting globally.
In its announcement to the ASX DXB said Q4 was a key quarter to the program, as an effective study start-up process is fundamental to the overall operational success of a clinical trial.
It is also the largest cost component of the overall study that is reflected in the larger cash outflow for this quarter.
Dimerix ended Q4 FY22 with cash of $9.6 million ($16.8 million on 31 March 2022). Net operating cash outflows for the period of $7.2 million, compared with $500k net operating cash inflows in the prior quarter.
The increase in total operating cash outflows for the quarter relative to the prior period was put down to clinical trial start-up costs incurred for its Phase 3 FSGS Study.
Additionally, in the prior period $3.7 million was received relating to the FY21 R&D Tax Incentive Refund in conjunction with the receipt of $300k relating to the Biomedical Translation Bridge (BTB) grant.
Dimerix said it remains on track to deliver on its growth strategy by advancing clinical trials to provide treatments globally for patients with serious and life-threatening inflammatory diseases.
The company has several other trials also underway, including for diabetic kidney disease and covid-19.
Global SaaS and ed-tech company has reported its best June quarter net operating cash outflow since listing on the ASX in 2017.
June quarter 2022 net operating cash flow improved by ~53%, reducing to -$332,000 compared to -$706,000 in June 2021.
The company said the reduced June quarter operating outflows was a result of 14.9% cash receipt growth on pcp and -71% reduced cash payments ($391k) to its former sales distribution partner ISS.
The company said this significantly indicates Schrole has successfully transitioned away from its previous shared sales distribution model with ISS to a direct sales model.
Furthermore, June Quarter cash receipts of $1.062 million, were 14.9% growth compared to pcp. Schrole Community numbers increased by 3.1% to 345,187 platform users, customers, and referees.
The company said it is well positioned for growth in the traditionally stronger second half of the calendar year.
The Australia-based biomaterial technology company has made significant progress on its business development initiatives during Q4 FY22, including signing multiple collaboration agreements.
The company used Q4 to make the most of the pilot scale spin in February of its forest-friendly, sustainable Nullarbor-20 lyocell fibre with its strategic partner Birla Cellulose.
Among deals inked in Q4 was one with the world’s largest fashion retailers Industria de Diseño Textil, S.A. (INDITEX), Paradise Textiles, and von Holzhausen.
The company also launched a garment made from the fibre designed by Australian designer Lee Matthews at the global sustainability in fashion industry event, the Copenhagen Global Fashion Summit in June.
During the quarter Nanollose continued to progress work towards undertaking the second pilot spin of Nullarbor fibre, with a focus on increasing the scale along with other projects.
The critical connectivity technology company said continued global success of its Design Win strategy saw partnerships converted into revenue during the June quarter.
New commercial agreements were added in both the US and South America, while the first commercial shipment of the new Halo 5G units was also undertaken.
At the end of June Spright placed its first commercial order of Halo after signing a five-year agreement with the company.
After quarter-end Brazilian company Speedbird Aero signed a commercial agreement for Halo to be used for BVLOS drone parcel services in Brazil.
The company has placed its first commercial order for Halo with subsequent orders expected.
Speedbird is the first customer under Elsight’s HaaS payment model, designed to align the company’s business model better with its customers by lowering upfront payments while modestly increasing monthly recurring payments during the term of Halo usage.
The company now has 60 companies in the Halo investment program as part of its Design Win strategy.
Furthermore, during the quarter Walmart announced its plan to expand drone delivery services through their partnership with DroneUp from one to six US states by the end of 2022.
The expansion presents a growing market opportunity for Elsight through its collaboration with DroneUp to provide Halo as the bonded connectivity solution.
During the June quarter Elsight completed a transaction related to the early exercise of founder options which raised $3.345 million. Funds raised will enable Elsight to continue to accelerate execution of its Design Win strategy and further rollout its Halo tech with commercial partners.
The Aussie biotech has highlighted several positive trial results for the June quarter. IHL achieved positive results from full analysis of its phase 2 clinical trial on the effect of IHL-42X to treat patients with obstructive sleep apnoea (OSA).
IHL-42X is a proprietary cannabinoid drug comprised of tetrahydrocannabinol (THC) and acetazolamide.
During the quarter IHL announced results from a pre-clinical study into IHL-216A, a neuroprotective cannabinoid combination drug inhaled post-concussion or traumatic brain injury (TBI).
IHL-216 was observed to have a strong neuroprotective effect in a widely known model of sports concussion.
During the quarter IHL continued preparatory activities from its phase 1 clinical trial to assess IHL-675A soft gel capsules.
FDA pre-IND guidance was sought and received following six distinct in vitro and in vivo studies using established disease models relevant to inflammatory disorders.
In each model IHL-675A outperformed CBD in surpressing inflammation, indicating a wide scope of applicants to potentially disrupt the market.
The company also continued its Psi-GAD phase 2a clinical trial into psychedelic therapies for the treatment of generalised anxiety disorder during the quarter. The trial is being led by Dr Paul Liknaitzky at Monash University.
In May 2022, IHL announced it had completed the deal to buy 100% of the issued share capital in APIRX Pharmaceuticals USA.
During the quarter the company also completed a short-dated option program to raise $23.6 million at an exercise price of 35 cents/share.
As June 30, 2022, IHL recorded $37.5 million in cash, with $1.83 million recorded as cash outflows associated with R&D activities.
IHL is eligible to receive an annual cash rebate equivalent to ~43.5% of all monies spent on R&D in Australia.
At Stockhead we tell it like it is. While Cronos Australia, Crowd Media Holdings, Dimerix, Nanollose, Incannex Healthcare and Elsight, are Stockhead advertisers, they did not sponsor this article.