# INBS fingerprint drug screening system deployed in over 50 US locations

Intelligent Bio Solutions (INBS) has deployed over 50 drug screening readers via its SMARTOX partnership, facilitating 7,000+ tests, with 1,500 in 2024 alone, driving a 15% stock increase in the past week. While currently limited to forensic use in the U.S., INBS is pursuing FDA clearance for its opiate test system and anticipates 273% revenue growth this year; however, InvestingPro data indicates the company is rapidly burning through cash. The company also secured a new U.S. patent for its drug screening technology and announced a common stock offering of up to $1.38M to support working capital and product development.

Analysis

Intelligent Bio Solutions Inc. (INBS), a micro-cap healthcare technology firm with a $12.61 million market valuation, is demonstrating operational traction through its partnership with SMARTOX, having deployed over 50 of its fingerprint-based drug screening readers and facilitated over 7,000 tests, including 1,500 in 2024 alone. This progress has coincided with a notable 15% gain in INBS stock over the past week. The company's non-invasive screening system, providing results in under ten minutes and currently utilized in U.S. forensic settings, is reported by clients to improve efficiency and user dignity. Significant future growth, with analysts projecting a 273% revenue increase this year, hinges on INBS securing FDA clearance for its opiate test system, which would enable expansion into broader U.S. markets such as workplace drug testing by its target of 2025. However, this expansionary phase is characterized by a rapid cash burn rate, a critical financial consideration. To support its objectives, INBS recently secured a new U.S. patent for its screening technology and announced an at-the-market common stock offering of up to approximately $1.38 million, with proceeds intended for working capital and product development.

Key Decisions for Investors

• Investors should carefully weigh INBS's significant revenue growth potential, driven by its innovative drug screening technology and market expansion efforts, against the inherent risks associated with a micro-cap company, including its high cash burn rate and potential for further shareholder dilution from financing activities.
• The progress of INBS's 510(k) application with the FDA for its opiate test system represents a critical near-term catalyst; successful clearance is essential for accessing the larger U.S. workplace testing market and achieving projected growth targets.
• Monitor the company's cash flow, burn rate, and the execution of its capital raising strategy, including the current stock offering, as sustained funding will be crucial for continued product development, operational scaling, and achieving regulatory milestones.