4C for the March 23 quarter is out. The best financial highlights that management could claim are:

UBI invested $1.85 million in product development activities during the quarter which is a 48% decline compared to the same period in previous financial year. Receipts from customers increased by 44% to $0.85 million compared to the previous quarter. 

But have a look at operating cash flow.

Receipts from customers may have increased but when you take out $770k for product manufacturing and operating cost from $848k of receipts, they are left with $78k of gross profit; roughly 10% margin. Ouch! This is immediately consumed by marketing, $170k before they have a cent to pay for staff, $3,118k, administration, $1840k etc. Operating loss is $5.8M, ($6.2M if you add in property plant and equipment).

Yes, they still have $20M cash to burn, but burn it they will, even with sales growing. Sure, if sales can continue to grow 44% QoQ for a couple of years, they'd be doing $15M in Q1 of FY25 and might just break even.

Link to ann 45p524zq8gkst8.pdf (asx.com.au)

Saw a presentation at the Bell Potter Healthcare conference and liked the technology and diverse revenue streams of this company. PowerPoint Presentation (asx.com.au)

Seems like they've spent a truckload on R&D over the years and now have products and distribution that can turn this into cash. Could be at a tipping point (or at least a turning point).

Share price is down from a dollar back in Jan to 24c today so market cap is a mere $55M which includes $28.5M in cash. Rough enterprise value is a mere $30M.

Yes, they are still burning cash and I don't expect an instant turn-around, but they have 5 new products coming to market in 2023. To be fair, three are new tests on the Sentia platform, for wine, but this makes the device more compelling and drives revenue from consumables (strips). This product alone could be worth the EV.

Tests for pets is a great niche with less regulation than human medical devices. Petrakr could be a huge money spinner with sales to vets and pet owners. And, like the expansion of tests for wine, there must be other tests for pets that they can add.

Applying their tests to more real human medical testing could be a bonanza but it's going to take a lot of work (trials and approvals) to get there. This part is like every other medical company that presented. They've already got Xprecia into the market so there's a track record there. I like that they have non-medical products and revenue that can keep costs down and skills up while they go through the process.

Much like every loss-making tech company, UBI have been hammered but the current SP looks like a good entry point to me.