Impact BioMedical Inc. Issues Shareholder Letter Highlighting Recent Achievements and Strategic Vision

Rhea-AI Summary

Impact BioMedical (NYSE American: IBO) released a shareholder letter highlighting its Q3 2024 achievements. The company completed its IPO in September 2024, raising $4.5 million through 1.5 million freely tradable shares. Q3 2024 reported net income of $4,241,000, with year-to-date net income at $2,363,000. Shareholder equity increased by $6.3 million to $34.56 million. The company has strategic partnerships with ProPhase Labs for Equivir™ and Linebacker™ development, while Laetose™ and 3F™ platforms are available for partnering. A debt restructuring allows repayment with company equity over 24 months.

Positive

• Successfully raised $4.5M through IPO in September 2024
• Q3 2024 net income of $4.24M
• YTD net income of $2.36M
• Shareholder equity increased by $6.3M to $34.56M
• Strong cash position of $2.66M
• Debt restructuring allowing equity-based repayment over 24 months

Negative

• 10M shares (majority) remain restricted until March 2025

Insights

Financial Analyst

The Q3 financial results and IPO details reveal significant positive momentum. The company achieved $4.24M in net income for Q3 and raised $4.5M through its IPO. Shareholder equity increased by $6.3M to $34.56M, representing a $0.54 per share growth. With $2.66M cash on hand and strategic debt restructuring allowing equity-based repayment, the company has improved financial flexibility.

The pipeline includes multiple revenue potential streams through partnerships, notably with ProPhase Labs for Equivir™ and Linebacker™, plus Laetose™ and 3F™ platforms available for licensing. The debt restructuring providing a 24-month window for equity-based repayment significantly reduces near-term cash flow pressure, allowing focus on R&D and commercialization efforts.

Medical Research Analyst

The company's portfolio shows promising diversity with both near-term and long-term potential. Equivir™ is positioned for relatively quick market entry as a health supplement through e-commerce and OTC channels, providing potential near-term revenue. Linebacker™'s focus on solid tumors (lung, colon) represents a larger long-term opportunity, with pre-clinical studies expected to yield results in 2025. The availability of Laetose™ and 3F™ platforms for immediate partnering suggests additional revenue streams through licensing deals could materialize in 2025.

HOUSTON, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Impact BioMedical Inc. (NYSE American: IBO), a pioneering biotechnology company dedicated to discovering, developing, and patenting innovative healthcare solutions, today announced that Frank D. Heuszel, Chairman and Chief Executive Officer of Impact BioMedical Inc., issued the following letter to Impact BioMedical shareholders regarding recent achievements, executional efficiencies and the positive outlook for the Company’s future.

Dear Impact Biomedical Inc. (IBO) Shareholders,

We closed our first quarter as a publicly traded company and wanted to address all current and future stakeholders highlighting our recent achievements, our appreciation for your support, and some additional insights into why we are excited for the future and continued success of Impact BioMedical Inc!

We are pleased to share this update on the heels of significant achievements after having just filed our quarterly report for the third quarter of 2024. Below are some of those highlights:

Successful IPO Launch and Funding in September

On September 16, 2024, IBO successfully launched its Initial Public Offering (IPO), raising $4.5 million in capital. The 1.5 million shares included in the IPO are freely tradable on the NYSE. The remaining 10 million shares issued and outstanding are restricted from trading until March 2025.

This key milestone for the company provides us with resources to accelerate our research and development initiatives, expand our market presence, and enhance shareholder value. Following the IPO, our company was officially listed on the NYSE American under the ticker IBO.

Q3 2024 Financial Performance

For the third quarter of 2024, IBO reported net income of $4,241,000, reflecting our ability to drive value. September 30, 2024 year-to-date net income stands at $2,363,000.

IBO has also made considerable progress in enhancing our financial stability and shareholder value. From June 30, 2024, to September 30, 2024, our shareholder equity increased from $28.26 million to $34.56 million, marking a $6.3 million increase. This represents growth of approximately $.54 per share.

Additionally, as of the end of the third quarter, the company’s cash position was approximately $2.66 million, positioning us well for investment in strategic initiatives and operational needs.

Strategic Debt Restructuring

As part of our ongoing efforts to optimize our capital structure, we successfully restructured our long-term debt during the third quarter. This restructuring improves our financial flexibility, enabling repayment of the debt with company equity for 24 months allowing the Company to conserve cash, which will further enhance our ability to invest in growth and innovation.

Strategic Partnerships and Product Development

We are also actively collaborating with strategic partners to advance the development and funding of key assets. These partnerships are critical to driving the commercialization and monetization of our cutting-edge technologies.

Key developments with our technologies licensed to ProPhase Labs, Inc. (NASDAQ: PRPH) include:

Equivir™:

Development and commercialization of the Equivir™ technology, with initial application planned as a health supplement. Studies are ongoing to support potential market claims, and contingent on final results, Equivir™ will be launched in the U.S. as an e-commerce and over the counter offering.

Linebacker™:

This technology is under evaluation with the initial target of solid tumors (lung, colon) in oncology. Pre-clinical studies are ongoing with results projected in 2025. Assuming successful results, these efforts would advance to IND discussions and plans to initiate a phase 1 study.

Outside of our partnership with ProPhase Labs Inc., our Laetose™ and 3F™ platforms are proven and available for immediate partnering with the potential to generate both license milestone and royalty revenue in 2025 and beyond.

Moreover, we continue our pursuit of new products that have the potential to expand our portfolio and enhance the company's value proposition. Our teams are focused on advancing these promising initiatives in the pipeline.

What’s Next? Live CEO Webinar on November 20^th at 4:30 pm ET

The third quarter of 2024 was a period of sturdy growth and strategic progress for Impact BioMedical Inc. With the successful IPO, strong financial performance, improved balance sheet, and continued investment in innovation, we are well-positioned to drive long-term value for our shareholders. We remain committed to executing our strategic goals and look forward to updating you on our progress as it applies to all four of our core platform technologies (Linebacker, Equivir, 3F, and Laetose).

To further this point, we are hosting a LIVE WEBINAR on November 20^th at 4:30 pm eastern time where you will have the opportunity to hear directly from myself as well as Mark Suseck (COO) and Todd Macko (CFO), where we will provide a full update on the company including our anticipated milestones and plans for the rest of 2024 and beyond. Do not miss out, sign up today with the link below and you will receive a calendar invite with all of the necessary information!

SIGN UP HERE

Thank you again for your continued support and we look forward to keeping you up to date on all of our progress in the coming weeks …. months … quarters … and years!

Sincerely,

Frank D. Heuszel

Chairman & CEO, Impact BioMedical Inc.

November 19, 2024

About Impact BioMedical, Inc.:
Impact BioMedical Inc. (NYSE American: IBO) discovers, confirms, and patents unique science and technologies which can be developed into new offerings in biopharmaceuticals and consumer healthcare and wellness in collaboration with external partners through research, licensing, co-development, joint ventures, and other relationships.

Safe Harbor Disclosure:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those projected. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date.

Investor Relations:
info@impactbiomedinc.com

FAQ

What was IBO's IPO raise amount in September 2024?

Impact BioMedical (IBO) raised $4.5 million through its IPO in September 2024, offering 1.5 million freely tradable shares on the NYSE American.

What was Impact BioMedical's (IBO) Q3 2024 net income?

Impact BioMedical (IBO) reported a net income of $4,241,000 for Q3 2024.

When will IBO's restricted shares become tradable?

The 10 million restricted shares of Impact BioMedical (IBO) will become tradable in March 2025.

What is Impact BioMedical's (IBO) current cash position?

As of Q3 2024, Impact BioMedical (IBO) had a cash position of approximately $2.66 million.