|IPA reported a big $7.6 million loss; an adjusted EBITDA loss of $4.4 million (EBITDA & Accretion expense of $904k.) |
|NET LOSS|| (7,617)|
|INTEREST EXPENSE|| 413 |
|TAXES || 5 |
|AMORTIZATION|| 1,875 |
|ACCRETION|| 904 |
Note that $1.312 million of this adj EBITDA loss of $4.4 million were ONE TIME costs incurred to bring on global services (European operations) and the critical CRM/ ERP system which will soon be going online.
Q4 revenues disappointed so rumours of significant new customers (who demand confidentiality) didn't have much of an impact - yet - it would appear. Also impacting was that they did a lot of write offs in cost of sales in Q4 with gross margins of 22% for the quarter bringing down the total year margins to 48%.
So its disappointing but well worth remembering that B cell select (tm) is available at IPA globally now and ONE job can run the customer several hundred thousand USD. As well, and not that this would apply to every job I 'm sure but an antibody discovery that the customer wants to work with to take to a stage 1 clinical trial would entail additional work by IPA. If each step is successful, the all in sales gets you looking at closer to US$2m range plus or minus. That;s one b cell project and we can run around 100 or more annually I believe?? And all this B cell work is high margin stuff. So
Let's not forget the role, also, of the full service B Cell offering that is IPA is and Dr. Bath's comment that they had been hired by one firm for example to replace all of that firm's 26 existing CROs (contractors - like IPA is a contractor). You can bet that some of that will start kicking in in the new fiscal. So in the rush to dump IPA based on Q4, some opportune investors are going to get in quite cheaply and be able to ride the wave from there.
And if being a contractor is not exciting then there is TALEM the new sub which gives IPA their platform for owning antibody discoveries; collaboration w/ pharmaceutical partners; sales and royalties from potential new drugs or other applications. They have been doing research globally and that's in the annual costs, too.
Not advice, it always takes longer to do and they have to do it. Hoping for more traction in Q1 and Q2. Please do your own DD!