- Small-cap biotech Holista CollTech (HCT) is trading slightly stronger today following its latest quarterly financial report
- The company ended the quarter with $3.15 million in the bank after improving net cash outflows to just under $760,000
- However, customer receipts for the quarter were lower than the quarter before, meaning the improved cash outflow came mostly from lighter expenses
- Nevertheless, Holista says it expects to improve cash flow even further in coming quarters and has enough funds left to last over a year
- Investors have tentatively placed some buy orders today, with Holista shares up just over two per cent and worth 9.8 cents each
Holista CollTech (HCT) is trading slightly stronger today following its latest quarterly financial report.
The small-cap biotech company ended the quarter with $3.15 million in the bank after cutting quarterly operating cash outflows to $759,000 — a major improvement compared to the $1.86 million in outflows from the June quarter.
Interestingly, customer receipts were slightly soft over September compared to the quarter before. In the three months to the end of September, Holista made just under $1.1 million in customer receipts; over the June quarter, customer receipts were just over $1.3 million.
As such, the improved cash flow was largely driven by lower costs — particularly relating to product manufacturing and operating.
Either way, at this level of cashflow, Holista had over a full year left of cash in the bank at the end of September. According to the company, this means it has enough funding to take on some immediate growth plans for its NatShield and Protectene disinfectant range.
These products are made with Holista's Path-Away compound, which has recently been proven to kill 99.9 per cent of SARS-CoV-2, which causes COVID-19, in a lab.
Nevertheless, Holista said its dietary supplements business is still its primary income contributor. In light of this, this segment of the company's business was the most expensive during the September quarter.
Holista told shareholders that while COVID-19 is still impacting operations, the word of the fallout from the pandemic is over.
As such, the company is expecting to improve operating cashflow even more in coming quarters in light of some progress made over the September quarter towards Holista's next phase of growth.
Holista is growing its business through its partnership with Global Infection Control Consultants (GICC) and potential joint venture deals for the M3 heating, ventilation, and air-conditioning (HVAC) systems to treat airborne viruses.
Investors have tentatively placed some buy orders today, likely hesitant to commit too much in light of HCT's 2020 extreme volatility.
Shares in Holista CollTech are up 2.08 per cent and worth 9.8 cents at 1:54 pm AEDT.