Volition(US:VNRX)2025-11-13 21:18Financial Performance - Total revenues for Q3 2025 reached $627,277, a 32.2% increase from $474,522 in Q3 2024[25] - Product revenues increased to $538,381 in Q3 2025, up 32.5% from $406,088 in Q3 2024[25] - The company reported a net comprehensive loss of $5,387,443 for Q3 2025, compared to $6,010,558 in Q3 2024[26] - For the nine months ended September 30, 2025, the net loss was $17,200,488, a decrease of 19.5% compared to the net loss of $21,400,758 for the same period in 2024[32] - The net loss for the three months ended September 30, 2025, was approximately $5.4 million, an 8% improvement from a net loss of $5.9 million in 2024[195] - The net loss for the nine months ended September 30, 2025, was approximately $17.2 million, a 20% improvement from a net loss of $21.4 million in 2024[207] Expenses - Operating loss for Q3 2025 was $5,100,990, a slight improvement from a loss of $5,868,707 in Q3 2024[25] - Research and development expenses decreased to $2,285,907 in Q3 2025, down 34.2% from $3,473,782 in Q3 2024[25] - General and administrative expenses rose by 37% to $2,483,793 for the three months ended September 30, 2025, compared to $1,815,863 in 2024[185] - Research and development expenses decreased by 36% to $7.6 million from $11.8 million in the prior year, primarily due to reduced clinical trial activity[199] - General and administrative expenses increased by 21% to $7.7 million from $6.4 million, driven by higher stock-based compensation and legal fees[202] - Sales and marketing expenses fell by 29% to $2.9 million from $4.1 million, attributed to reduced personnel and marketing costs[204] Cash Flow and Liquidity - Cash and cash equivalents significantly decreased to $199,407 as of September 30, 2025, from $3,264,429 at December 31, 2024[21] - Operating cash used was $14,191,467 for the nine months ended September 30, 2025, compared to $20,461,849 for the same period in 2024, indicating improved cash management[33] - Net cash used in operating activities was $14.2 million for the nine months ended September 30, 2025, a decrease from $20.6 million in the same period of 2024[175] - Net cash provided by financing activities increased to $11.0 million for the nine months ended September 30, 2025, compared to $6.4 million in 2024[177] - The company expressed substantial doubt about its ability to continue as a going concern without obtaining additional financing[208] Financing Activities - The company raised $4,454,633 from the issuance of common stock during the nine months ended September 30, 2025, down from $6,565,422 in the same period of 2024[33] - In March 2025, the company raised $2.3 million from a registered direct offering, selling 2,363,636 shares at $0.55 per share[68] - In August 2025, the company raised $1.21 million from another registered direct offering, selling 1,734,375 shares at $0.64 per share[69] - In September 2025, the company completed a private placement, raising $0.3 million by selling 483,870 shares at $0.62 per share[70][71] - The company raised approximately $880,862 through the sale of 1,386,223 shares under the 2025 ATM Sales Agreement from April 22, 2025, to September 30, 2025[75] - The company amended the 2025 ATM Sales Agreement to increase the maximum aggregate offering price from $7.5 million to $30.0 million[76] Stock and Compensation - The weighted average shares outstanding for Q3 2025 were 108,213,068, an increase from 87,886,012 in Q3 2024[26] - The company reported stock-based compensation of $1,872,586 for the nine months ended September 30, 2025, compared to $942,805 for the same period in 2024, indicating increased compensation expenses[32] - Total stock-based compensation expense related to RSUs for the nine months ended September 30, 2025, was $1,769,014, compared to $937,567 for the same period in 2024[101] - The company has unrecognized compensation expense of $979,980 related to RSUs from grants in 2025, with $224,055 vesting in 2026, $355,907 in 2027, and $400,018 in 2028[147][148] Assets and Liabilities - Total current assets decreased to $1,332,077 as of September 30, 2025, from $4,056,808 at December 31, 2024[21] - Total liabilities increased to $42,398,447 as of September 30, 2025, compared to $35,507,259 at December 31, 2024[23] - The Company's total property and equipment as of September 30, 2025, was $10.5 million, with accumulated depreciation of $6.3 million, resulting in a net value of $4.2 million[51] - The Company's intangible assets, primarily patents, totaled $1.5 million as of September 30, 2025, with accumulated amortization of $1.2 million, leading to a net value of $301,033[53] Strategic Initiatives - The company launched the Nu.Q® Vet Cancer Test in the UK and Ireland in November 2023, and in Japan in July 2024, now available in over twenty countries[170] - The company entered into a master license and product supply agreement with Heska, receiving a $10 million upfront payment and potential additional payments based on milestone achievements[168] - The company aims to partner with established diagnostic companies to market and sell its tests, leveraging their networks and expertise[165] - The company has committed to issuing 2,868,000 RSUs under the 2024 Plan, contingent on achieving various corporate goals[146] Legal and Compliance - The company is not aware of any legal proceedings that would materially affect its financial position[142] - The company adopted ASU 2023-05 on January 1, 2025, which did not have a material impact on its financial statements, indicating proactive compliance with new accounting standards[40] - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2024-03 and ASU 2025-05[42][43]