Universal Biosensors, Inc. (UBI) faces significant financial headwinds, casting doubt on its ability to continue as a going concern. The company’s latest quarterly report for the period ended March 31, 2025, reveals recurring losses and insufficient cash reserves to sustain operations beyond Q3 2025. This raises substantial uncertainty about its future within the next year. Despite experiencing a 6% increase in total revenue, driven by growth in Sentia wine testing and Petrackr veterinary diabetes products, the company reported a net loss of A$3.84 million, compared to A$3.44 million in the same period last year. Operating expenses, particularly in research and development, have contributed to these losses.
UBI’s cash and cash equivalents stood at A$4.92 million as of March 31, 2025, a decrease from A$7.39 million a year prior. The company used A$3.72 million in operating activities during the quarter. Management is actively exploring options to secure additional funding through revenue growth, joint ventures, partnerships, and equity issuance. However, no written agreements are in place, and there’s no guarantee of securing funding on acceptable terms.
The company’s strategy involves growing revenue, pursuing joint ventures or partnerships for our product portfolio and raising cash through the issuance of new equity, until such a time as the Group’s operations generate positive cash flows or other profitable investments may be achieved. A key focus remains on commercializing AQUASCOUT, a handheld water testing platform expected to launch in the second half of 2025. Twelve distribution agreements were signed in 2024 and three agreements signed in 2025 so far for Sentia and Xprecia which signals a commercial expansion. The company is navigating leadership changes within its HRL laboratory testing services to bolster performance after a 22% decline in revenue.
