Volition(US:VNRX)2021-05-11 20:15Financial Performance - Total revenues for the three months ended March 31, 2021, were $25,530, compared to $544 for the same period in 2020, representing an increase of over 100%[145] - The net loss for the three months ended March 31, 2021, was $6,125,570, compared to a net loss of $5,859,339 for the same period in 2020, an increase of 5%[146] - The company's net loss for Q1 2021 was $6.1 million, an increase of approximately $0.2 million from a net loss of $5.9 million in Q1 2020[157] - The company achieved a revenue of $5 million for the quarter, representing a 15% increase compared to the previous quarter[186] - VolitionRx expects to provide updated earnings guidance, projecting a revenue increase of 10% for the next quarter[186] Revenue Sources - The main source of revenues during the three months ended March 31, 2021, was direct sales of the Nu.Q Vet Cancer Screening Test[147] Cash Flow and Financing - Net cash used in operating activities was $6.2 million for the three months ended March 31, 2021, compared to $4.8 million for the same period in 2020, an increase of 29%[135] - Net cash provided by financing activities was $20.2 million for the three months ended March 31, 2021, primarily due to $18.9 million from the issuance of common stock[137] - The company plans to secure additional grant funds and obtain equity or debt financing to sustain operations[132] - The company plans to seek additional capital through the sale of debt or equity securities as necessary[160] Operating Expenses - Total operating expenses increased to $6.1 million for the three months ended March 31, 2021, from $5.9 million for the same period in 2020, an increase of 4%[148] - Research and development expenses were $3,873,079 for the three months ended March 31, 2021, a slight decrease of 1% from $3,894,966 in the same period in 2020[146] - General and administrative expenses increased to $1.8 million in Q1 2021, up from $1.7 million in Q1 2020, primarily due to higher personnel and legal expenses[152] - Sales and marketing expenses rose to $0.4 million in Q1 2021, compared to $0.3 million in Q1 2020, driven by increased personnel costs[154] - Personnel expenses in research and development increased to $1.49 million in Q1 2021 from $1.27 million in Q1 2020[151] - Stock-based compensation in general and administrative expenses surged to $333,866 in Q1 2021 from $107,265 in Q1 2020[153] Internal Controls and Compliance - As of March 31, 2021, the company identified material weaknesses in internal controls over financial reporting and is implementing a remediation plan[168] - The company has not maintained sufficient internal controls in areas such as segregation of duties and oversight in IT[168] - The Audit Committee regularly meets with financial management and independent auditors to discuss internal accounting controls[168] - The company continues to evaluate and enhance its internal controls over financial reporting[171] - The company does not expect its disclosure controls and internal controls to prevent all errors and fraud[172] Market Strategy and Growth - VolitionRx is focusing on expanding its market presence in Europe, targeting a 30% increase in market share by the end of the fiscal year[186] - The company is investing in new product development, with a budget allocation of $2 million for research and innovation in the next quarter[186] - VolitionRx plans to enhance its technology platform, aiming for a 20% improvement in processing efficiency by Q3 2021[186] - The company has outlined a strategic goal to pursue potential acquisitions, with a target of identifying at least two candidates by the end of the year[186] - The company has initiated a new marketing strategy, aiming to increase brand awareness by 40% through digital channels[186] - VolitionRx is committed to improving customer engagement, with a goal of increasing customer satisfaction scores by 15% in the upcoming quarter[186] - The company has reported a successful pilot program for its new diagnostic product, with a 90% accuracy rate in initial tests[186] Risk Factors and Legal Proceedings - The company has substantial doubt about its ability to continue as a going concern without obtaining external financing[158] - The company has not experienced any material changes in risk factors affecting its business since the last annual report[177] - There are no material, existing or pending legal proceedings against the company[176] - There were no significant off-balance sheet arrangements that could materially affect the company's financial condition[159]