Clever Culture Systems (CC5) Q1 2025 earnings summary

Executive summary

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

• Secured major contracts with AstraZeneca (five instruments, ~$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 analysis module, expanding market and recurring revenue potential, with first installation at AstraZeneca and positive feedback.

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

Financial highlights

• Net cash inflows of AUD 0.1 million for the quarter ended 30 September 2024, with net cash outflows from operating and investing activities of AUD 0.8 million and net cash inflows from financing activities of AUD 0.9 million.

• Cash balance at 30 September 2024 was AUD 2.5 million.

• Over AUD 4.4 million in committed cash inflows expected in the next two quarters, including AUD 2.7 million from AstraZeneca and BMS sales and AUD 900,000 R&D tax incentive.

• $1.0 million raised from option exercises during the quarter, with $3.3 million potential if all options exercised by November 2025.

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

Outlook and guidance

• Positive net operating and investing cash flows expected over the next two quarters, underpinned by committed inflows exceeding AUD 4.4 million.

• Focus on completing AstraZeneca deliveries, supporting BMS evaluation, and advancing other large pharma evaluations.

• Anticipates further sales conversions and new evaluations commencing in early 2025.

• 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.