Quarterly wrap: YPB metrics continue to improve as it pursues profitability

It’s a wrap for the September quarter. Here are some of the latest highlights from a few ASX small and midcaps on their activities for the three months to the end of September.

YPB Group (ASX:YPB)

The anti-counterfeit and consumer engagement tech firm reported net operating cash performance of the business improved in Q3 FY23 by a further 7% on the record low achieved in Q2 to $437k.

Cash receipts were up 108% on Q2 FY23, the best in two years, as broader YPB product coverage was adopted by clients.

Cash gross margin rose from 97% in Q2 FY23 to 99% in Q3 FY23, which YPB says highlights the intellectual property inherent in the company’s products.

Pursuit of profitability remains YPB’s key focus with the recently achieved full-suite connectivity and IP library flexibility creating opportunity in new markets.

YPB finished the quarter with $711k in cash and cash equivalents. The company is trading at $0.003/share with a market cap of $625k.

Netlinkz (ASX:NET)

The global network solutions vendor NET says group revenue for the September quarter of $6 million was a 34% increase over the same quarter in the prior comparative period (PCP).

NET derived $1.9 million revenue during the September quarter, up on the $1 million in the June quarter of 2023 and says the NaaS Starlink bundle is proving to be a “compelling offer” which provides potential customers with a fully encrypted invisible private network for all devices connected to the network that access the internet.

Gross margins were in excess of 20% and are expected to rise once higher volume Starlink sales occur and high margin NaaS subscription revenues grow.

Research and development costs were $327k for the September quarter, up from $290k in the PCP as NET continues to develop enhancements to its NaaS suite of products and services, particularly to support its roll-out with HGC.

NET secured additional funding secured via a convertible securities agreement for up to $10 million and a debt and share offer for up to $12 million during the September quarter.

At the end of the September quarter NET had cash of $600k. The company is trading at $0.006/share with a market cap of $13 million.

Optiscan Imaging (ASX:OIL)

Biotech OIL undertook a capital raise of $16.7 million during the quarter, which it says will enable the company to strategically expand its portfolio and accelerate commercialisation.

In line with projections, the September quarter’s focus was on increased R&D and commercial activities both locally and in the US, have resulted in a net cash outflow from operating activities for the quarter of $1.6 million.

During the quarter, work started to implement the OIL’s telepathology platform following the passing of the proof of concept stage.

OIL says significant progress was made towards its US Food and Drug Administration (FDA) De Novo application for its trademarked InVivage product during the quarter. The company worked with US based regulatory consultants and the FDA and has completed several key components on its planned De Novo submission.

With plans to establish a US commercial operation, during the quarter OIL continued its search for highly skilled staff in the US to broaden its sales team. The company also featured at several key international conferences throughout the quarter.

At the end of the September quarter OIL had $15.74 million cash and cash equivalents. The company is trading at 8 cents/share with a market cap of $66.8 million.

RooLife Group (ASX:RLG)

The cross-border platform matching Chinese consumers with international brands and products reported a solid Q1 FY24. RLG continued expansion of consumer health, wellness and food products and additional sales channels with tactical product and brand selection.

During the quarter RLG subsidiary RLG Marketplace Pty Ltd inked a deal to source and supply products to be sold in China both online and through physical pharmacies and stores of Shanghai Stock Exchange-listed Shanghai No.1 Pharmaceuticals.

RLG also secured a deal with The Hydration Pharmaceuticals Company Limited (ASX:HPC) to sell its products in China.

In July RLG entered into a deal to obtain funding of an additional $600k by way of a convertible loan to the value of $200k from existing Hong Kong based substantial shareholder XiaodanWu and $400k in loan from directors.

The funds will be applied to drive immediate growth in sales and revenue and gross profit for this coming quarter.

RLG had cash and cash equivalents at the end of the quarter of $2.6 million. The company is trading at 1.1 cents/share with a market cap of $7.17 million.

MGC Pharmaceuticals (ASX:MXC)

European based Biopharma MXC reported a productive September, receiving an order for US$1m from AMC Pharma to produce ArtemiC. The order comes alongside AMC’s new supply agreement to distribute to over 100 holistic and wellness chiropractic offices in California, and Florida.

MXC was also granted its first import permit of Psilocybin Raw Mushroom material to its Slovenian research facility from Psyence Group Inc’s Southern Africa production site as part of the raw material transfer agreement signed between the two companies.

During the quarter, MGC welcomed new regulation in Australia to prescribe psychedelics to patients with depression or post-traumatic stress disorder (PTSD). Effective from July 1, 2023, MDMA and Psilocybin were reclassified as medicines for some complex mental health conditions.

MXC also conditionally raised $1.24 million by way of a placing and subscription and successfully completed a share purchase plan raising $834k during the quarter.

At the end of the September, MXC has ~A$417k of cash on hand. It’s currently trading at $0.001.share with a market cap of $4.43 million.