Molbio Diagnostics Limited IPO

The company derives a significant portion of its revenues from the sale of the company's products to the Indian central and state governments, and international aid agencies for their public healthcare programs. The company's revenue from such government and international aid agencies was 87.83%, 91.60% and 78.39% of its revenue from contracts with customers - sale of products - finished goods in Fiscals 2025, 2024 and 2023, respectively. Any unfavourable policy changes by these agencies or a decrease in funding for public healthcare programs may impact the sale of the company's products and adversely affect its business, financial condition, results of operations and cash flows.

The company derives a significant portion of its revenues from the sale of diagnostic test kits for tuberculosis ("TB"). The company's revenue from the sale of test kits for TB was 69.11%, 62.40% and 41.56% of its revenue from contracts with customers - sale of products - finished goods in Fiscals 2025, 2024 and 2023, respectively. Any decline in the demand for such test kits may have an adverse effect on the company's business, financial condition, results of operation and cash flows.

The company derives a significant portion of its revenue from the company's top 10 customers. The company's revenue from the top 10 customers was 83.62%, 78.54% and 66.07% of its revenue from contracts with customers - sale of products - finished goods in Fiscals 2025, 2024 and 2023, respectively. The loss of any of these customers or a decline in demand for our products from them could have an adverse effect on the company's business, financial condition, results of operations and cash flows.

The company has invested and intend to continue to invest in research and development ("R&D") efforts to grow its menu of tests. The company cannot assure you that our R&D efforts will result in the successful development and obtaining of government approvals for new tests, which could adversely affect the company's business, results of operations, and cash flows.

The company incurred losses in Fiscal 2023 and the company may incur losses in the future.

The company's sales cycle and sales demand are variable, which makes it difficult for the company to forecast its business, results of operations, financial condition and cash flows.

The company's inability to accurately forecast demand for its products and manage the company's inventory may have an adverse effect on its business, financial condition, results of operations and cash flows.

Any product liability claims or regulatory actions or imposition of liquidated damages on account of the company's failures to meet the contractual obligations, could have an adverse effect on its business, results of operations, financial condition and cash flows.

The company's operations are subject to extensive government regulation and if the company fails to obtain, maintain or renew the company's statutory and regulatory licenses, permits and approvals required to operate its business, results of operations and cash flows may be adversely affected.

The company's Statutory Auditor's reports on internal financial controls issued on its audited consolidated financial statements for Fiscals 2023 and 2024 contain a disclaimer of opinion relating to the Statutory Auditors' inability to obtain appropriate audit evidence to provide a basis for opinion on adequate internal financial controls.