MBX Biosciences, Inc.

Good morning, everyone. Thanks for joining us today. We have a session with Microbix to discuss the Q2 results they put out this morning. You can find those on the company's website on CDAR and the press release probably was sent to your inbox, let's hope. So with me today, I've got Ken Hughes, COO, Jim Curry, CFO, and Cameron Groom, CEO. The format of the session will be a review of the quarterly results by Cameron and his team, and then we'll open it up for Q&A. So feel free to start putting your questions in the Q&A box if you'd like, or you can email them to me. I don't believe that we're going to work off a formal presentation today. But as always, this session will contain forward-looking statements. You can find more about those on the company's website, on the presentation on the website, which I will update later today with the results. And with that out of the way, I'd like to turn the mic over to Cameron Groom, CEO. Hi, Cameron.

Hello, Debra. I'll start by taking myself off mute. It's always a good start for these things. Thank you very much, Debra. and Jim and Ken for joining us and for Second Deborah as well. And thank you to everyone participating for taking the time this morning. Very pleased to be reporting our results for the second quarter and first half of Microbics' fiscal 2025. In these periods, the three and six months respectively, we've demonstrated solid sales excellent gross margins and material net earnings. All those achieved as we've been continuing to build out the capabilities and capacity needed to successfully engage with the largest multinational diagnostics companies and PTEQA agencies and clinical lab chains. Our Q2 results specifically, we had $5.3 million in total revenues. Strengths in our antigen or in Greek test ingredients sales business over the quarter and slower sales of our quality assessment products due to a few one-off factors. We had excellent gross margins for the period at 60%, up a full 7% gross margin over the prior year. And as expected in the second quarter, we had... geared for this level of revenues to generate effectively a break-even result, which is what we achieved. For the first half, total revenues of $11.4 million, gross margins up by 10% year over year, so very strong progress there, and materially positive net earnings of $900,000, which, while we don't publish our budgets, both figures were in line or ahead of what we had targeted for the six months. Jim, did you want to offer any further color on the Q2 or first half results?

Yes, Cameron. I think you've covered the key points, but certainly the one area that I'm happy with, and I don't get happy easily as these two guys know, but I'm happy with is the gross margins and the cost of sales of the products, especially on the androgens business. We've put a number of processes in place within our androgens business to improve our margins. And we've seen that come through in spades over the last year. So that's an excellent one. We've also, in terms of the quarter, we've had a good strong quarter from cash and available credit, I guess, during the quarter. We exercise or people exercise $2.7 million worth of warrants and options during the quarter. We utilize some of those funds to pay down our mortgage of 1.15 million. And we also work with our bank to increase our credit line, doubled it from 2 million to 4 million. So overall a good strong quarter and we see that our balance sheet is in probably the best shape it's ever been in. We had good strong ratios at the end of the quarter. with our current ratio at 9.36 and our debt equity ratio at 0.27. So overall, an excellent quarter and an excellent half.