GlobeNewswire Inc | May 14, 2021 08:30AM EDT

May 14, 2021

- Anticipate Emergency Use Submission for SARS-CoV-2Antibody Biosensor Test in the Second Half of 2021-

- $14 Million in Cash, Cash Equivalents, and Marketable Securities as of March 31, 2021, Provides Runway into the Second Half of 2022 -

- Established a Point-of-Care Test Commercialization Ecosystem with World-Class Healthcare Institutions -

- University of Newcastle, The Wyss Institute for Biologically Inspired Engineering and John Hopkins University -

NEW YORK, May 14, 2021 (GLOBE NEWSWIRE) -- GBS Inc. (Nasdaq: GBS), a life sciences company developing non-invasive, real-time diagnostic testing for patients and their primary health practitioners at point-of-care, today announced its financial results for the first quarter of 2021, and summarized recent business highlights.

We continued to execute across the business this quarter as we further developed our commercialization plans for both the COVID-19 test and glucose monitoring on the Biosensor Platform technology, Chief Executive Officer of GBS Inc. (GBS), Harry Simeonidis said. Our clinical chemistry and infectious disease programs are progressing as we continue the design for manufacturing of our Saliva Glucose Biosensor. In addition, we are integrating Harvard Universitys eRapid technology with our Biosensor for SARS-Cov-2 antibody tests, and are working with best-in-class commercialization experts across novel sensing technology and salivary diagnostics to decentralize and democratize diagnostics.

Chief Executive Officer of The iQ Group Global Group, Dr. George Syrmalis said, Despite the extensive vaccination rollout in most of the developed parts of the world, we have yet to generate real patient data assessing the levels of immunity of vaccinated people, over time. We have yet to understand how long the vaccine protects people and when reimmunization is necessary. Thus, we remain committed to bringing an oral point-of-care diagnostic and antibody monitoring test to market once EUA authorized.

Recent Operational Developments

Point-of-Care Test Commercialization Ecosystem Established

-- Received approval from theHarvard Longwood campus Institutional Review Board (IRB) to commence a validation study to test clinical samples from a COVID-19 repositoryand to commence clinical studies on the COVID-19 Antibody Biosensor. -- Onboarded and aligned with word-class institutions, Johns Hopkins University, The Wyss Institute for Biologically Inspired Engineering, and the University of Newcastle for the development of saliva-based POCTs for both glucose monitoring and COVID-19 antibody detection. -- Onboarded new top-tier members to GBSs scientific team to formulate and execute its commercialization plan.

COVID-19 Testing Key Developments

-- Commenced research protocols with The Wyss Institute for Biologically Inspired Engineering to progress with the milestone of integrating this technology with the Companys Biosensor for SARS-Cov-2 antibody tests. -- Initiated study for the salivary collection protocol with Johns Hopkins University, Bloomberg School of Public Health. -- Completed technical optimization of Wysss eRapid assay performance in relation to SARS-Cov-2 antibody detection at The Wyss Institute to align with the fastest antibody tests currently on market using clinical samples.

Glucose Testing Key Developments

-- Developing aclinical plan to for regulatory submission and subsequent approval with Precision Medicine Architects, LLC. -- Commenced global voice of customer survey with Precision Medicine Architects, LLC as part of the process to finalizeproduct development of the device and usability. -- Further development ofprototypingfor middleware and smartphone application. -- Executed Option Agreement to acquire the rights to use, make, market, sell and offer to sell Products under the Intellectual Property Rights in the Glucose Field in the North American market for the Saliva Glucose Biosensor.

Financial Discipline

-- For the quarter ending March 31, 2021, a total of 58,600 Series A warrants and 1,400,195 Series B warrants were exercised and converted into common stock. -- On March 31, 2021, GBS entered into an agreement with Life Science Biosensor Diagnostics (LSBD) to provide GBS an option to acquire an exclusive license to use LSBDs intellectual property in the treatment or management of diabetes, filed in North America (the Option Agreement). The Option Agreement has a term of two years and the exercise price for the option is $5 million.

Anticipated Events and Targeted Milestones for 2021

-- Anticipate Emergency Use Approval for SARS-CoV-2 Antibody Biosensor test from FDA in the second half of 2021. -- Development of clinical protocol for FDA review for Saliva Glucose Biosensor. -- Design transfer to manufacture for Saliva Glucose Biosensor and SARS-CoV-2 Antibody Biosensor. -- Continue to pursue our licensing and sublicensing partnership opportunities for commercialization.

First Quarter 2021 Financial Results

The Company reported a net loss of approximately $2.6 million, for the first quarter of 2021, compared to a net loss of approximately $0.11 million, for the first quarter of 2020. This overall increase was largely attributable to further progression on regulatory and development milestones and increased expenditure on general and administrative expenses with funding secured by the IPO.

As of March 31, 2021, the Companys cash, cash equivalents, and marketable securities totaled approximately $14.2 million, compared to approximately $19.8 million on December 31, 2020.

GBS believes that based on the current operating plan and financial resources, its cash equivalents and marketable securities will be sufficient to cover expenses and capital requirements through at least the second quarter of 2022.

About GBS Inc.GBS Inc. is a life sciences company developing non-invasive, real-time point-of-care (POC) diagnostic tests for patients and their primary health practitioners (GBS). For more information about the Company, please visit our corporate website at gbs.inc.

About The iQ Group GlobalThe iQ Group Global is a bioscience investment consortium that finds, funds and develops bioscience discoveries to create life-changing medical innovations. Visit our website: theiqgroupglobal.com

Forward-Looking StatementsSome of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements in this press release include, without limitation, GBS Inc.s ability to develop and commercialize its diagnostic tests, realize commercial benefit from its partnerships and collaborations, and secure regulatory approvals, among others. Although GBS, Inc. believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. GBS Inc. has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, included in the Companys public filings filed with the Securities and Exchange Commission. Any forward-looking statements contained in this release speak only as of its date. We undertake no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

For more information, please contact:

Investor Contact:LifeSci Advisors, LLCJeremy Feffer - Managing Director212-915-2568jeremy@lifesciadvisors.com

Company Contact:The iQ Group GlobalJames Gorman, Communications Manager +61282395400media@theiqgroupglobal.com

GBS, INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(UNAUDITED) Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Revenues Other income: Government $ 34,290 - $ 372,754 $ - support income Shared services - (1,533 ) - 119,744 Total revenues and other 34,290 (1,533 ) 372,754 119,744 income Operating expenses: General and administrative 1,013,389 53,842 2,205,842 1,752,182 expenses Development and regulatory 2,156,316 (58,825 ) 2,529,074 541,023 approval expenses Prospectus and capital raising 5,100 32,274 358,674 174,639 expenses Total operating 3,174,805 27,291 5,093,590 2,467,844 expenses Loss from (3,140,515 ) (28,824 ) (4,720,836 ) (2,348,100 )operations Other (expense) income: Interest (18,561 ) (82,305 ) (1,091,249 ) (380,961 ) expense Loss from unconsolidated - - (135,692 ) - equity method investment Realized foreign 8,774 - (270,333 ) - exchange gain/ (loss) Interest income 7,635 22 8,139 91 Total other (2,152 ) (82,283 ) (1,489,135 ) (380,870 ) expenseLoss before income (3,142,667 ) (111,107 ) (6,209,971 ) (2,728,970 )taxes Income tax (expense)/benefit Current - - - - Deferred - - - - Total income tax (expense)/ - - - - benefit Net loss (3,142,667 ) (111,107 ) (6,209,971 ) (2,728,970 ) Net (loss) income attributable to (14,854 ) 1,485 (25,684 ) (22,210 ) non-controlling interest Net loss attributable to $ (3,127,813 ) $ (112,592 ) $ (6,184,287 ) $ (2,706,760 ) GBS, Inc. Othercomprehensive income Foreign currency translation gain/(loss) - - - - attributable to non-controlling interest Foreign currency translation (262,032 ) 100,921 (278,744 ) (28,129 ) gain/(loss) attributable to GBS, Inc. Total other comprehensive (262,032 ) 100,921 (278,744 ) (28,129 ) income Comprehensive netloss attributable $ (3,389,845 ) $ (11,671 ) $ (6,463,031 ) $ (2,734,889 )to GBS, Inc Net loss pershare, basic and $ (0.27 ) $ (0.01 ) $ (0.64 ) $ (0.32 )diluted Weighted averagenumber of shares 11,795,741 8,510,000 9,667,399 8,510,000 outstanding, basicand diluted

This is information extracted from GBSs March 31, 2021, Financial Statements filed with the Form 10Q with the SEC on February 11, 2021, and should be read with the financial statements accordingly

GBS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(Amounts in $) March 31, 2021 June 30, 2020ASSETS Current assets: Cash and cash equivalents $ 14,261,622 $ 427,273 Deferred charges - 1,863,613 Other current assets 2,324,389 49,062 Total current assets 16,586,011 2,339,948 Investment in affiliate - 135,692 Other non-current assets 866,667 - TOTAL ASSETS $ 17,452,678 $ 2,475,640 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)Current liabilities: Accounts payable and accrued $ 1,521,899 $ 787,469 expenses Related party payables 37,235 1,769,293 Convertible notes payable - 5,133,706 Total current liabilities 1,559,134 7,690,468 Employee benefit liabilities 18,128 - Total liabilities 1,577,262 7,690,468 Commitments and contingencies - Note 10 Shareholders' equity (deficit): Preferred stock, $0.01 par value, 10,000,000 shares authorized, 3,000,000 and 2,370,891 shares 30,000 23,709 issued and outstanding at March 31, 2021 and June 30, 2020, respectively Common stock, $0.01 par value, 100,000,000 shares authorized, 11,881,322 and 8,630,000 shares 118,813 86,300 issued and outstanding at March 31, 2021 and June 30, 2020, respectively Additional paid-in capital 38,440,097 10,899,942 Accumulated deficit (22,016,804 ) (15,832,517 ) Accumulated other comprehensive (642,695 ) (363,951 ) loss Total consolidated group equity 15,929,411 (5,186,517 ) (deficit) Non-controlling interests (53,995 ) (28,311 ) Total shareholders' equity 15,875,416 (5,214,828 ) (deficit)TOTAL LIABILITIES AND SHAREHOLDERS' $ 17,452,678 $ 2,475,640 EQUITY

This is information extracted from GBSs March 31, 2021 Financial Statements filed with the Form 10Q with the SEC on February 11, 2021, and should be read with the financial statements accordingly