Quarterly Wrap: Pot stocks shine with record revenues for Melodiol, 75pc increase in revenue for Bioxyne

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.

Melodiol Global Health (ASX:ME1)

The pot stock reported ~$7.5 million in unaudited revenue achieved across its group of companies in Q3 FY23, a 265% increase on the PCP and a 58% rise on last quarter.

Net cash used in operations was $340k in Q3 FY23 versus $2.37 million in Q2 FY23. Total unaudited FY23 revenue generated to date is now more than $14.54 million – a record for the company.

ME1 reported consistent revenue growth underpinned by its Canadian subsidiary Mernova Medicinal, which delivered $1.85 million in revenue for the quarter.

Recently acquired subsidiary Health House International (HHI) generated unaudited revenue of $4.85 million, including $2.99 million in net revenue from its Australian operations.

HHI’s Australian operations delivered an unaudited net profit of $312,548 during the quarter. ME1 says HHI’s 10% profit margin reflects well-established operating procedures on costs of goods sold and a strong sales network across several leading Australian pharmacies.

Record cash receipts from customers during the quarter of $8.27 million was up 60% on the prior quarter. ME1 says it continues to deliver on its stated strategy of driving revenue growth through optimised operations and strategic M&A while maintaining a stringent focus on costs.

ME1 had cash and cash equivalents of $1.31 million at the end of the quarter with commitments for an additional $1m received post period end. The company is trading at $0.003/share with a market cap of $6.26 million.

Bioxyne (ASX:BXN)

Health and wellness company BXN reported a 75% increase in revenue on pcp for Q1 FY24 to ~$2.1 million with growth driven by Breathe Life Sciences medicinal cannabis business, principally in UK and Europe.

The group recorded an unaudited operating profit for the quarter of ~$200k. BXN’s patented probiotic strain PCC wholesale business was 20% up on pcp at $263k.

BXN says it made significant progress during the quarter in development of its medicinal cannabis business in UK, Europe and Australia.

In August BXN executed a joint venture with CanXChange to launch an AI-powered B2B therapeutic goods platform in Australia.

This platform targets Australia’s fast-growing $500 million medicinal cannabis market to provide a portal to facilitate wholesale trading between licensed buyers, sellers, cultivators, and accredited manufacturers in the country.

The platform will also open international markets for Australian medicinal cannabis companies licensed to export.

BXN successfully secured medicinal cannabis products during the quarter from Colombia, Uruguay and Macedonia to meet growing demand following the launch of its Dr Watson branded dried flower product, increasing wholesale demand and increased subscriptions through the Australian online healthcare business, BLS Clinics.

Investment in inventory has increased from $995k at June 30, 2023 to $2 million as at September 30, 2023.

BXN had a net cash outflow for the quarter of $1.6 million that included a $1 million build-up in medicinal cannabis product to meet growing demand.

BXN director NH Chua has advised the board he will retire at the AGM on November 17.

Cash balance at the end of the quarter was $2.2 million. BXN is trading at 1.2 cents/share with a market cap of $22.82 million.

iCandy Interactive (ASX:ICI)

The mobile games developer and publisher successfully executed a corporate-wide cost review and right-sizing initiative during the quarter, playing a pivotal role in enabling ICI to achieve a positive cash flow.

Higher revenue and receipts enabled ICI to record a 28% jump in cash receipts from the previous quarter to $7.7 million.

ICI is the co-development partner of Yuga Labs for Web3 game Legend of the Mara (LOTM), with its beta launch in late September 2023.

LOTM is a collection based 2D strategy game that is part of the broader Otherside metaverse game in development at Yuga Labs.

Yuga Labs is the renowned global company behind the Bored Ape Yacht Club franchise. ICI says it looks forward to further milestones in its role as a co-development partner, shaping the future of metaverse gaming experiences.

ICI had cash and cash equivalents at the end of the quarter of $7.84 million. ICI is trading at 3.4 cents/share with a market cap of $45.63 million.

Roots Sustainable Agricultural Technologies (ASX:ROO)

ROO says it secured distribution agreements during the quarter and purchase orders subsequent to the end of the period.

The company secured a $288,266 purchase order from Silal Food and Technology for two root zone cooling projects in connection with Silal’s berry farming operations in the United Arab Emirates.

After the quarter’s end, ROO announced a deal with Orbia’s precision agriculture business Netafim, the global leader of sustainable precision irrigation solutions and agricultural projects. RLG’s root zone heating and cooling products will be available across Netafim’s global distribution and dealership network.

During the quarter RLG entered into a short term loan agreement for an aggregate amount of $165,287 with First State Pty Ltd.

“During the quarter, Roots undertook a considerable amount of work which has led to two transformational agreements with industry leaders post quarter end,” CEO Boaz Wachtel says.

ROO is trading at $0.005/share with a market cap of $767k.

Fatfish Group (ASX:FFG)

The tech venture firm says diligent efforts made to enhance efficiency of its operating activities paid off during the quarter. Net cash used in operating activities reduced to $95k, representing a significant 79% reduction from the $450k recorded in the previous quarter.

FFG reported a decrease in cash receipts for the September quarter, with a total of $700k, compared to $1 million in the preceding quarter.

“Management remains steadfast in its commitment to fostering high-quality revenue streams and has been actively engaged in the implementation of cost review measures aimed at achieving profitability,” FFG says in its announcement.

FFG says its fintech business Asean Fintech Group continues to see growth in its payment gateway business which saw $665 million worth of transactions during the Quarter.

A new healthcare digital insurance product by Asean Fintech Carewise received endorsement from its partnered insurance provider and regulators and was soft-launched during the quarter.

Fatberry introduced new general insurance products during the quarter and automated many of its inbound enquiry using AI technology. In addition, the group formed an AI Incubation Team to explore and incubate potential businesses using AI technologies.

FFG had cash and cash equivalents at the end of the quarter of $989k. It is currently trading at 1.1 cents and has a market cap of $13.09 million.