IBT.V - Ibex Technologies Inc.

[Jack_Aster]

I usually have a full due diligence report to post, but unfortunately we will have to wait for that until IBT releases their financials on Sedar. In the meantime I will use year end results, mixed with the Q1 news release that came out today.

IBT.V is a inexpensive biotech that looks to have turned the corner here in terms of probability and growth. Their year end results show a cash position of over $2 million, $6.38 million in assets and $1.7 million in liabilities. There are only 24.7 million common shares, of which 37% is held by insiders. In fact, two weeks ago the CEO purchased 246,000 shares on the open market which is 1% of the entire float. The company ended 2015 with a $210,000 net income and just today announced a $360,000 net income which means things are starting to grow rapidly. Last year IBT.V did $3.5 million in revenue total and just in Q1 2016 they did half of that amount. As well, sales are in US dollar, leveraging the company. Below is the news release from today:

IBEX earns $360,206 in fiscal Q1

2015-12-17 06:21 MT - News Release

Mr. Paul Baehr reports

IBEX REPORTS FIRST QUARTER FISCAL 2016 RESULTS

IBEX Technologies Inc. has released its financial results for the quarter ended Oct. 31, 2015.

"We are pleased to report an excellent quarter and start to the 2016 fiscal year. Net profit and working capital were up significantly over year ago, driven by lower operating costs and a significant increase in sales," said Paul Baehr, IBEX president and chief executive officer. "We continue to forecast a positive cash flow for the year; however, quarter-to-quarter profitability will vary significantly due the large variations in customer order patterns."

First quarter fiscal 2016 financial results

Sales for the quarter ended Oct. 31, 2015, totalled $1,414,875 compared with $627,447 in the same period of the prior year. Sales were up by $555,832 in the company's IBEX Pharma subsidiary and by $231,596 in its bioresearch products subsidiary. This increase in sales versus the previous year is primarily due to the quarter-to-quarter fluctuation in customer orders, rather than a sustained increase in sales.

The company sustained net earnings of $360,206, as compared with a net loss of $253,708 in the year-ago period. The favourable change in earnings traced mainly to the sales increase of $787,428 offset by the negative impact of inventory allocation of $194,166.

FINANCIAL SUMMARY FOR THE QUARTERS ENDED

Oct. 31, Oct. 31,
2015 2014

Revenues $1,414,875 $627,447
Earnings (loss) before interest, tax,
depreciation and amortization $460,302 ($161,642)
Depreciation $88,637 $84,137
Net earnings (loss) $360,206 ($253,708)
Earnings (loss) per share $0.01 ($0.01)

Cash and equivalents increased by $551,864 during the quarter ended Oct. 31, 2015, as compared with the year ended July 31, 2015. Net working capital increased by $436,764 during the quarter ended Oct. 31, 2015, as compared with the year ended July 31, 2015.

Looking forward

The company sees an improving picture and expects to be cash positive in the 2016 fiscal year if current customer purchase projections hold, and if the company continues to benefit from the favourable U.S./Canadian dollar exchange rate.

Management believes that the company has sufficient funds to meet its obligations and planned expenditures for the ensuing 12 months as they fall due. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, 12 months from the end of the reporting period.

We seek Safe Harbor.

[Jack_Aster]

(Ibex Technologies Inc) Due Diligence Report

Symbol: IBT.V
Price: $0.10
Common Shares: 24,703,244
Insider Holdings: 9,133,650 (37% as per SEDI)
**CEO Paul Baher recently purchased 246,000 or 1% on December 2nd through the market**

Q1 2016 Financial Results + MD&A (Ending October 31st 2015)

ASSETS
Cash: $2,636,690 ( July 2015: $2,084,826) - $0.1067c a share in cash
Receivables: $735,182
Inventories: $676,683
Prepaid Expenses: $103,680
Assets Held For Sale: $438,012
Property & Equipment: $2,121,192
Total Assets: $6,711,439 ( July 2015: $6,379,167)

LIABILITIES
Payables: $476,337
Long-Term Debt: $1,203,255
Deferred Income: $28,989
Total Liabilities: $1,679,592 ( July 2015: $1,707,405)

NAV(Net Asset Value) is just over $5 million or $0.20c a share.

Q1 Revenue
Sales: $1,414,875 ( prior year sales: $627,447)
Net Income: $360,206 or $0.0145c EPS

Prior year sales Recap(from year end results)
Total Sales in 2015: $3,491,130
Net Income: $209,628

IBV is so undervalued given the financials that it makes sense as to why insiders were buying stock near 52 week highs just recently. IBT could pay all it