Skin Elements (ASX: SKN) Receives Funding Boost in March Quarter

Highlights

• Phase 2 testing of ECO-Nurture, involving a full-season spray program, has been conducted on 10 kiwi fruit farms in New Zealand.
• Phase 2 market testing of SuprCuvr was carried out in hospitals and transport sectors.
• State-of-the-art UVA/UVB face skin testing technology is available at the West Perth lab of SKN.
• The company received an R&D rebate advance of AU$112k for R&D expenditure in FY2024.

Skin Elements Limited (ASX: SKN), an Australia-based natural biotechnology company, has been engaged in developing SE Formula^TM– over the past 15 years, which serves as the essence of every natural product being developed by the company. Skin Elements’ product portfolio includes Soléo Organics, SuprCuvr, ECO-Nurture, and PapayaActivs Therapeutics. During the March quarter, the company continued to invest in the research, development, and commercialisation of its product range.

The company's ongoing dedication to research and development in its proprietary technology SE Formula^TM rendered it eligible for the Federal Government's R&D Rebate for the 2024 fiscal year, with an R&D rebate of AU$ 933k as of 31 March 2024. Additionally, during the quarter, the company AU$ 112k as an R&D rebate advance from Radium Capital.

Phase 2 testing of ECO-Nurture makes headway

During the quarter, the company continued expanding the Phase 2 testing of ECO-Nurture. ECO-Nurture, made from plant-based SE Formula^TM, is a sustainable, horticultural plant bio-stimulant product.

Phase 2 testing involving a full season spray program trial of Eco-Nurture on 10 kiwi fruit farms in New Zealand has been concluded. These trials adhere to crop protection standards established by Zespri International, a global marketer of kiwifruit.

Preliminary results from independent laboratory tests indicate that Eco-Nurture serves as a viable substitute for copper and chemical fungicides in combating PSA bacteria, which significantly impacts kiwifruit crops.

After experiencing initial success with its trial in the kiwifruit sector, the company is now evaluating opportunities in other horticulture sectors, including conducting tests on grapes and various other fruit and vegetable crops.

Phase 2 market testing of SuprCuvr

SuprCuvr, a 100% plant-based product, is an independent laboratory-tested TGA registered hospital-grade disinfectant. During the quarter, the company continued test market assessment of the SuprCuvr disinfectant product range, delivering it to the health and public transport sectors for assessment and qualification purposes.

The company is presently exploring opportunities within the public transport sector, specifically focusing on suburban train carriages and stations in Melbourne, Australia.

Phase 3 commercialisation negotiations on Soléo Organics

Soléo Organics is an award-winning chemical-free sunscreen. It is the first product borne out of Skin Elements’ R&D program.

Throughout the quarter, the company advanced negotiations with a prominent health and wellness retail group in the United Kingdom regarding the distribution of the Soléo Organics sunscreen formulation under its white label. As a part of this activity, independent laboratory testing has commenced to verify crucial performance criteria tailored for the UK market. This entails assessing the Soléo Organics sunscreen formulation for both SPF50 and a 5-star rating, an unprecedented feature for a natural organic sunscreen formulation.

Moreover, the company has started using state-of-the-art UVA/UVB face skin testing technology at its West Perth lab to assist customers in identifying and assessing skin damage from environmental and sun factors. It is also aimed at providing customised recommendations to customers on preventing further damage by using the Soleo Organics sunscreen range.

Phase 2 product formulation improvements in PapayaActivs advances

PapayaActivs blends a high concentration of natural pawpaw extract with other active natural ingredients to alleviate symptoms associated with skin conditions. During the latest quarter, SKN advanced the Phase 2 improvements in the PapayaActivs formulations and expanded the product lineup.

The company aims to finalise Phase 2 product formulation improvements by July 2024, with plans for product introduction into Phase 3 test markets during the September quarter.

SKN shares traded at AU$0.004 apiece on 10 May 2024.