Virax Biolabs (VRAX) - 2025 Q2 - Quarterly Report

Financial Performance - Revenue for the six months ended September 30, 2024, was $4,953, a decrease of 93.5% compared to $76,500 for the same period in 2023[5] - Net loss for the six months ended September 30, 2024, was $2,756,564, compared to a net loss of $2,914,204 for the same period in 2023, reflecting a 5.4% improvement[5] - Operating expenses for the six months ended September 30, 2024, totaled $2,872,417, an increase of 5.7% from $2,716,741 in the same period of 2023[5] - The company reported a gross loss of $6,474 for the six months ended September 30, 2024, compared to a gross profit of $10,518 for the same period in 2023[5] - Total revenue for the six months ended September 30, 2024, was $4,953, a significant decrease from $76,500 in the same period of 2023, indicating a decline in focus on the ViraxClear and ViraxVet platforms[74] - For the six months ended September 30, 2024, the company reported a loss of $2,756,427, resulting in a basic and diluted loss per share of $(0.89), compared to a loss of $2,909,652 and a loss per share of $(1.64) for the same period in 2023[78] Assets and Equity - Total assets increased to $9,442,944 as of September 30, 2024, up from $5,483,969 on March 31, 2024, representing a growth of 72%[3] - Total stockholders' equity rose to $8,416,877 as of September 30, 2024, compared to $5,138,775 on March 31, 2024, indicating a growth of 63.5%[3] - The accumulated deficit increased to $21,284,424 as of September 30, 2024, from $18,527,997 on March 31, 2024[3] Cash Flow and Liquidity - Cash at the end of the period increased to $7,285,991, up from $3,589,244 at the beginning of the period, marking a 103.5% increase[8] - Cash flows from operating activities showed a net cash used of $1,918,624 for the six months ended September 30, 2024, compared to $3,593,961 for the same period in 2023, indicating a reduction in cash outflow[8] - As of September 30, 2024, the company had a cash balance of $7,285,991 and current liabilities of $693,969, resulting in a net increase in cash of $3,696,747 for the six months ended September 30, 2024[14] Research and Development - The company expects to continue generating operating losses in the foreseeable future due to ongoing research and development activities, corporate overhead, and costs associated with being a public company[15] - The company is developing the ViraxImmune platform, which aims to provide immunology profiling to assess individual immune risk against major viral diseases and assist in early diagnosis of post-viral syndromes[11] - The company plans to apply for regulatory agency approval for its T cell Test under the ViraxImmune brand, focusing initially on diseases associated with post-viral syndromes, including SARS-CoV-2 and HPV[11] Shareholder Information - The company issued 1,499,909 shares for cash, raising $5,128,186 during the period[6] - The Company completed a Share Consolidation on December 18, 2023, consolidating every ten shares into one, enabling compliance with Nasdaq Marketplace Rule 5550(a)(2) and maintaining its listing[98] - As of September 30, 2024, the Company had 4,341,956 ordinary shares issued and outstanding[102] - The Company raised gross proceeds of $4,990,014 from a registered direct offering of 1,108,892 ordinary shares at $4.50 per share on August 21, 2024, with total net proceeds of $4,389,863 after offering costs[101] Taxation and Compliance - The Company expects to be subject to income and other taxes in various jurisdictions in the future, despite being organized as a Cayman Islands corporation[43] - Deferred tax assets are recognized only if it is probable that future taxable profit will be available to utilize those temporary differences and losses[45] Accounting Policies - The company’s financial statements are prepared in accordance with IFRS, ensuring consistency in accounting policies across all periods presented[17] - The company’s revenue recognition policy reflects the transfer of control of products to customers, with revenues recognized net of any taxes collected[31] - The Company accounts for leases under IFRS 16, recognizing a right-of-use asset and a lease liability for all leases with a term of more than twelve months[50] Inventory and Expenses - Inventories as of September 30, 2024, totaled $125,255, consisting of raw materials, work-in-progress, and finished goods, compared to $60,383 as of March 31, 2024[81] - The company reported depreciation expense of $117,220 for the six months ended September 30, 2024, significantly higher than $4,750 for the same period in 2023[84] - Accounts payable and accrued liabilities increased to $422,865 as of September 30, 2024, from $120,894 as of March 31, 2024[85] Loans and Liabilities - The company entered into a loan payable of $315,000 on July 1, 2024, with a balance of $222,728 as of September 30, 2024, and incurred interest expense of $5,794 during the period[86] - Lease liabilities totaled $380,474 as of September 30, 2024, with total lease payments amounting to $537,704[95] Capital Management - The Company aims to manage its capital resources to ensure financial strength and maximize financial flexibility, primarily through the sale of ordinary shares[119]