Volition(VNRX) - 2018 Q4 - Annual Report

Financial Performance - The company had no revenues for the years ended December 31, 2018, and December 31, 2017, remaining predominantly in the research and development stage [148]. - The net loss for the year ended December 31, 2018, was $18.0 million, an increase of approximately $3.2 million, or 22%, compared to a net loss of $14.8 million for the year ended December 31, 2017 [158]. - The company reported a net loss of $18.01 million for the year ended December 31, 2018, compared to a net loss of $14.77 million in 2017, indicating an increase in losses of about 22.5% [181]. - The company has incurred losses of approximately $73.7 million since inception and currently has no revenues, raising substantial doubt about its ability to continue as a going concern for at least one year from the issuance of the financial statements [191]. Operating Expenses - Total operating expenses increased to $17.9 million for the year ended December 31, 2018, from $14.7 million for the year ended December 31, 2017, representing a 22% increase [149]. - Operating expenses rose to $17.90 million in 2018, up from $14.70 million in 2017, reflecting an increase of approximately 21.5% [181]. - Research and development expenses rose to $10.9 million for the year ended December 31, 2018, up from $8.0 million in 2017, marking a 36% increase [150]. - The company incurred research and development expenses of $10.91 million in 2018, compared to $8.03 million in 2017, which is an increase of approximately 36.0% [181]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2018, were approximately $13.4 million [137]. - Cash and cash equivalents at the end of 2018 were $13.43 million, an increase from $10.12 million at the end of 2017, marking a growth of about 32.5% [183]. - Net cash used in operating activities was approximately $14.7 million for the year ended December 31, 2018, compared to $12.2 million in 2017, reflecting increased expenditures on research and development and sales and marketing [138]. - Net cash used in operating activities was $14.73 million in 2018, compared to $12.19 million in 2017, indicating an increase of about 20.8% [183]. Financing Activities - Total cash provided by financing activities was approximately $18.0 million for the year ended December 31, 2018, compared to $2.0 million in 2017, primarily due to public offerings and private placements [140]. - The company plans to secure additional capital through grants, equity or debt financing, and licensing agreements to sustain operations [135]. - The company plans to secure additional funding through grants, debt or equity financing, licensing agreements, and accelerating product development to sustain operations [192]. - The company issued 8.8 million shares of common stock in 2018, raising net proceeds of $17.25 million compared to $0.998 million in 2017 [185]. Assets and Liabilities - As of December 31, 2018, total assets increased to $17.49 million from $14.62 million in 2017, representing a growth of approximately 19.5% [180]. - The total liabilities increased to $5.35 million in 2018 from $4.67 million in 2017, which is an increase of approximately 14.7% [180]. - The company’s accumulated deficit increased to $73.72 million in 2018 from $55.71 million in 2017, which is an increase of approximately 32.4% [180]. - The total stockholders' equity increased to $12.14 million in 2018 from $9.96 million in 2017, representing a growth of approximately 21.9% [180]. Shareholder Information - The weighted average shares outstanding increased to 31,389,220 in 2018 from 26,389,580 in 2017, reflecting an increase of approximately 19% [181]. - As of December 31, 2018, the company had 35,335,378 shares of common stock issued and outstanding, an increase from 26,519,394 shares as of December 31, 2017, representing a growth of approximately 33% [230]. - The company issued 3.5 million shares of common stock in a public offering at $2.40 per share, generating gross proceeds of $8.4 million and net proceeds of approximately $7.6 million after fees [231]. - In a private placement offering, the company issued 5.0 million shares at $1.80 per share, resulting in gross proceeds of $9.0 million and net proceeds of approximately $8.9 million [232]. Internal Controls - As of December 31, 2018, the Company did not maintain effective internal control over financial reporting due to material weaknesses identified [285]. - The identified material weaknesses included inadequate segregation of duties in Finance and insufficient oversight in IT and Human Resources [285]. - The Company is currently implementing a remediation plan to address the identified internal control deficiencies [287]. - Management believes that the material weaknesses did not affect the Company's financial results [285]. Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of BB% and an expected user base increase to CC million [305]. - New product launches are anticipated to contribute an additional $DD million in revenue, with a focus on innovative technologies [306]. - The company is expanding its market presence in Europe, targeting a market share increase of EE% by the end of the fiscal year [307]. - Recent acquisitions are expected to enhance operational capabilities and are projected to add $FF million in annual revenue [308].