Quarterly Activities Report
Melbourne, Jan 30, 2023 AEST (ABN Newswire) - Bluechiip Limited (
ASX:BCT) (1BL:FRA), a leader in the development of advanced sample management solutions for harsh environments, is pleased to release the company's Appendix 4C - Quarterly Cashflow report and update for the quarter ended 31 December 2022.
Corporate and Business updates for the quarter
- Recorded sales of $280k and cash receipts of $527k for the second quarter FY23;
- Customer conversion and sales closure. 11 end-users have now ordered Bluechiip products, which will be used across 13 laboratories;
- Repeat orders and deliveries to existing customers;
- Actively executing development activities with FujiFilm Irvine Scientific under the licence and development agreement executed in October 2021;
- Continued to grow the pipeline of new customer opportunities and sales closure through its recent expanded North American sales and marketing team;
- Continued discussions and negotiations with potential OEMs in pursuit of additional OEM partner agreements including delivery of concepts and prototypes to pharmaceutical, cell therapy and biobanking OEM customers;
- Closing cash and cash equivalents of $575k as at 31 December 2022, with no borrowings;
- Received $825k in refund subsequent to 31 December 2022 for the 2021/2022 R&D Tax Incentive; and
- Received $173k (incl GST) following approval for $790k Supply Chain Resilience Initiative (SCRI) Grant from Australian Government;
Additional information
During the quarter, the Company recorded sales of goods and engineering services of $280k (Q1 2023: $240k). The Company also recorded cash receipts from customers for the quarter ended 31 December 2022 of $527k (Q1 2023: $193k) for products and engineering services.
The Company continues to actively engage with customers mainly in North America through its US subsidiary, Bluechiip Inc. Bluechiip Inc's expanded sales and marketing team enable the Group to aggressively build its pipeline, targeting customer engagement and sales closure.
Bluechiip's new range of consumables and Advanced Sample Management Solutions continue to receive strong interest from local and overseas customers. Since product launch in the December quarter 2021 end-customer use has continued to grow, with orders from 11 customers in 13 operating laboratories.
Notably, these customers are beginning to generate repeat orders, both for Bluechiip enabled consumables and also for additional readers and hardware, as the Bluechiip-enabled solution is embedded into their high-value sample inventory management processes.
Customer end markets include large pharmaceutical, cell therapy, clinical trial and research organisations, with significant opportunities to organically expand Bluechiip's footprint and usage. The adoption by laboratories of Bluechiip-enabled solutions has grown steadily since launch, from four in the December 2021 quarter, to five in the March 2022 quarter, 10 in the June 2022 quarter, 12 in the September 2022 quarter and 13 in the December quarter.
Bluechiip plans to continue to grow its sales and marketing team, especially in North America, over the next 12 months to service the growing demand for Bluechiip-enabled products.
Bluechiip continues to actively execute its development activities with FujiFilm Irvine Scientific under the licence and development agreement executed in the December quarter FY22, and is actively pursuing a supply agreement as product development moves towards product launch.
The Company continues to be in discussions and negotiations with potential OEMs in pursuit of OEM partner agreements including the delivery of concepts and prototypes to OEMs in the pharmaceutical, cell therapy and biobanking markets.
During the quarter, the Group recorded receipts from customers of $527k (Q1 Sep FY23: $193k). Staff costs, administration and corporate expenses and R&D continues to dominate cash outflow items: $988k (Q1 Sep FY23: $699k), $262k (Q1 Sep FY23: $156k) and $255k (Q1 Sep FY23: $161k) respectively. The Company also received $173k (incl GST) following approval for $790k Supply Chain Resilience Initiative (SCRI) Grant from the Australian Government, as one of the 18 successful applicants under the Australiawide program.
Subsequent to 31 December 2022, the Company received approximately $825k in refund following the approval for the 2021/2022 R&D Tax Incentive registration. During the coming quarter, the Company expects to receive receipts from ongoing sales made to customers and debtors which it is closely monitoring.
Outlook
The Company continues to respond to market conditions, including:
- Landing new direct customers with new installations, as well as meeting repeat orders from existing customers for Bluechiip Advanced Sample Management Solutions, including Bluechiip-enabled consumables, readers and software for the global biobanking market directly into North America and Australia/New Zealand and through distribution partners globally;
- Expanding through existing customers sites into additional laboratories and also into additional applications within customer sites;
- Progressing execution of the development activities under the licence and development agreement with FujiFilm Irvine Scientific with an active pursuit of a subsequent supply agreement over the next 3-9 months;
- Progressing towards OEM partner agreements with potential OEMs including in the pharmaceutical, cell therapy and target biobanking space, sectors that have gained significant traction for the Company's products and solutions; and
- Managing existing cash reserves, which will be allocated to the manufacture of readers and Bluechiipenabled consumables as demand increases and to evaluated R&D activities while prioritising expenditure in line with the Company's overall strategy.
*To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/MTLUSRTE
About Bluechiip Limited
Bluechiip Ltd (ASX:BCT) understands that every sample - stem cells, blood, eggs, sperm and other biospecimens - is critical, so our objective is to manage each one with optimal quality in the most efficient way. Bluechiip's advanced management solution is the only one that provides sample temperature with ID in cryogenic environments to. Most importantly, this delivers confidence in every sample.
Bluechiip's unique patented technology is a MEMS-based wireless tracking solution that contains no electronics. It represents a generational change from current tracking methods such as labels (hand-written and pre-printed), barcodes (linear and 2D), and Radio Frequency Identification. Bluechiip tags are either embedded or manufactured into storage products such as vials or bags. Each product can be easily identified, and critical information such as sample temperature, is detected by readers and stored in the Bluechiip software. In addition to functioning in extreme temperatures, the Bluechiip(R) Advanced Sample management solution can survive autoclaving, gamma irradiation sterilization, humidification, centrifuging, cryogenic storage and frosting.
Bluechiip's technology has applications in healthcare, including in cryogenic storage facilities (biobanks and biorepositories), pathology, clinical trials and forensics. Other key markets include cold-chain logistics/supply chain, security/defence, industrial/manufacturing and aerospace/aviation.
Bluechiip: Delivering confidence in every sample.
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