Microbix Reports Results for Q2 Fiscal 2025

Revenues of $5.3 million, Improved Gross Margin, and Positive Net Income

MISSISSAUGA, Ontario, May 15, 2025 (GLOBE NEWSWIRE) — Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator, manufacturer, and exporter, reports results for its second quarter and first half of fiscal 2025 ended March 31, 2025 (“Q2” and “H1”). Sales for Q2 and H1 reflected differential growth between Antigens (up) and QAPs™ (down), alongside a markedly-improved gross margin.

Management Discussion
Results for H1 were largely satisfactory, with recurring revenues increasing by 14% to $11.4 million, gross margin on those sales increasing by 10% to 61%, and net income of $0.9 million. Financial strength was also improved, with record cash & equivalents and overall liquidity, even after a material debt repayment and share repurchases. New business development is proceeding well but management’s outlook for the second half of fiscal 2025 has become more guarded, mainly due to reduced sales into China.

Quarter ending March 31, 2025 (“Q2”)
Q2 revenue was $5,324,864, 5% below Q2 2024 revenues of $5,632,901. Included in Q2 were antigen revenues of $4,317,532 (2024 – $4,111,462), up 5% from last year. QAPs revenues of $864,320 were down 38% from Q2 2024 ($1,399,536), due to delays with the assay-development programs of one test-manufacturer customer. Revenue from royalties were $143,012 (2024 – $121,843). In summary, our Q2 sales increase in Antigens was more than offset by the decrease in our QAPs deliveries.

Q2 gross margin percentage was 60%, up from 53% last year. The higher gross margin was driven by improved manufacturing efficiencies, pricing, product mix, and favourable currency exchange rates. Operating expenses (including finance expenses) in Q2 increased by 21% relative to Q2 2024, principally due to increased investment in research and development projects, sales and marketing activities, and increased net financing charges.

Overall, Q2 revenues and stronger margins were offset by increased operating expenses which led to a net income of $20,664 versus Q2 2024 net income of $377,730. Cash provided by operating activities was $966,753, compared to cash provided by operating activities of $839,245 in Q2 2024. Cash and equivalents at March 31, 2025 remained strong at $14.5 million, up by $1.5 million from the prior quarter even following the repayment of $1.2 million of mortgage debt and $0.7 million of share repurchases.

Period ending March 31, 2025 (“H1”)
H1 revenue was $11,368,866, a 19% decrease from H1 2024 revenues of $14,040,785. H1 2024 revenues were greatly influenced by the recognition of $4,086,000 in Kinlytic® urokinase licensing payments. Comparing the two years without this Kinlytic revenue, revenues increased by 14%. Included in H1 2025 were antigen revenues of $8,584,290 (2024 – $6,065,138), up 42% from last year. QAPs revenues of $2,491,301were down 32% from H1 2024 (2024 – $3,647,832), again due to a year-over-year reduction in spend by one large client. Revenue from royalties were $293,275 (2024 – $241,155). In summary, Antigens sales growth was offset by lower QAPs revenues and the lack of Kinlytic licensing fees.

H1 gross margin was 61%, down slightly from 65% in H1 2024, primarily due to the impact of Kinlytic licensing revenues in H1 2024. Were the 2024 Kinlytic payment removed, H1 2024 gross margin would have been 51%, indicating that gross margin has improved by 10% for this same period in 2025. Operating expenses in H1 decreased slightly relative to H1 2024, principally due to increased investment in R&D projects, sales and marketing activities and increased financing costs offsetting the H1 2024 US$ 500,000 in investment-banking fees related to our Kinlytic licensing agreement.

Overall, H1 revenues led to an operating income and net income of $877,627 versus a H1 2024 operating income and net income of $2,833,109 (Predominantly due to the $3.4 million net impact from Kinlytic licensing). Cash provided by operating activities in H1 was $1,759,454, compared to cash provided by operating activities of $2,178,196 in H1 2024.

At the end of Q2, Microbix’s current ratio (current assets divided by current liabilities) was 9.68 and its debt to equity ratio (total debt over shareholders’ equity) was 0.27, both measures having improved from the preceding quarter, the 2024 fiscal year-end, and the prior year Q2.

Corporate Outlook
Microbix will continue driving sales growth across all of its business lines, while working to keep improving percentage gross margins and delivering bottom-line results. Management notes that the second-half 2025 outlook for its Antigens business has become challenging due to reduced sales into China.

Furthermore, at 11:00 AM ET on Thursday May 15^th, Microbix intends to hold a webinar discussion of Q2 results with its CEO, CFO, and COO.

Investor and shareholders can participate in the webinar, hosted by Adelaide Capital, by registering at: https://us02web.zoom.us/webinar/register/WN_WAJTH6BvQSiYKoh6wf2eaA.

It will also be live-streamed to YouTube at: https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.

A replay of the webinar will also be made available on Adelaide Capital’s YouTube channel.

About Microbix Biosystems Inc.
Microbix Biosystems Inc. creates proprietary biological products for human health, with over 120 skilled employees and revenues now targeting C$ 2.0 million per month. It enables the worldwide commercialization of diagnostic assays by making a wide range of critical ingredients and devices for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 & 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada establishment licensed, and provides IVDR-compliant CE marked products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (e.g., its DxTM™ for patient-sample collection). Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.

Forward-Looking Information
This news release includes “forward-looking information,” as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of financial results or the outlook for the business, risks associated with its financial results and stability, its current or future products, development projects such as those referenced herein, access to and sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management’s current estimates, beliefs, intentions, and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain, and that actual performance may be affected by many material factors, some of which are beyond the Company’s control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company’s judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.

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