Highlights

  • Of the quarter's receipts, A$117,000 related to the first Farmlands delivery, compared with A$6,000 in the June quarter.
  • The order is therefore only partly delivered, and the remaining balance had not been reported as completed.
  • A broader National Sales Agreement with Farmlands is conditional on ECO-Nurture gaining approval under New Zealand's ACVM Act.
  • The company lists advancing that registration as its first priority, and has not stated when approval might be received.

Skin Elements (ASX:SKN) has reported a September 2026 quarter in which customer receipts rose to A$123,000, the first shipment under a New Zealand distribution agreement was delivered, and closing cash increased to A$1.455 million. The company also said its renewed board is continuing a strategic and operational review.

Farmlands Agreement And First Delivery

On 9 July 2026 Skin Elements signed an exclusive distribution agreement with Farmlands in New Zealand for ECO-Nurture, a horticultural plant bio-stimulant. The initial order is NZ$600,000 plus GST, with an initial focus on the kiwifruit industry, where the company says PSA bacteria has caused major losses.

NZ$150,000 was delivered during the quarter, and a second NZ$150,000 delivery is in progress. Of the quarter's receipts, A$117,000 related to the first Farmlands delivery, compared with A$6,000 in the June quarter. The order is therefore only partly delivered, and the remaining balance had not been reported as completed.

A broader National Sales Agreement with Farmlands is conditional on ECO-Nurture gaining approval under New Zealand's ACVM Act. The company lists advancing that registration as its first priority, and has not stated when approval might be received.

Cash Flow And Funding

Net operating cash outflow was A$272,000, down from A$874,000 in the June quarter, which had included non-recurring legal costs linked to section 249D requisitions. Within operating outflows, about A$268,000 went on manufacturing, staff and research and development, A$44,000 on marketing, premises and administration, and A$82,000 on corporate costs, with customer receipts offsetting part of the total.

Financing inflow was A$887,000 net, comprising A$900,000 of placement proceeds less A$13,000 of costs. Closing cash was A$1.455 million, compared with A$840,000 at the start of the quarter.

The report's cash-flow statement estimates 5.35 quarters of funding at the current rate of outflow. That figure relies on this quarter's outflow alone, and the report notes that a management fee covering only two months was paid in the period. Adjusting for a full quarter would shorten the estimated runway to about 4.4 quarters, according to the document's own commentary, so the longer figure should be treated with caution.

The company also assessed its FY2026 R&D Tax Incentive refund at A$502,090. It is secured against a A$288,000 advance from Radium Capital at 15 per cent a year, which is due for repayment by 31 December 2026, with the net balance expected in the December 2026 quarter. Payments to directors and associates totalled A$97,000, including A$50,000 of accrued fees from earlier periods. Following a review in late June, non-executive director base fees were reduced, with the Chair's fee set at A$60,000 a year.

Other Product Developments

The Soleo Organics zinc oxide sunscreen range is progressing toward production after several formulation changes, subject to testing and regulatory requirements. A new online shop for the PapayaActivs pawpaw range has launched, and an email campaign is re-engaging about 34,816 registered customers. These are early commercial steps, and the company has not disclosed sales results from them.

Board And Strategic Review

The board was renewed in late June 2026, with Rod Nicholas as non-executive chairman. The renewed board has started a review of supply chain, manufacturing, laboratories, production processes and costs. The business states it has engaged a preferred contract manufacturing laboratory, rationalised operating expenditure and tightened expenditure-approval controls. The review is ongoing.

Stated Priorities

Skin Elements lists as next steps ACVM registration, completing the Farmlands initial order, starting production with the contract manufacturer, expanding online sales, preparing Soleo and PapayaActivs for scalable production, and completing the strategic review. None of these has a confirmed completion date in the report.