Virax Biolabs (VRAX) - 2026 Q2 - Quarterly Report

Financial Performance - Revenue for the six months ended September 30, 2025, was $1,608, compared to $4,953 for the same period in 2024, indicating a decrease of approximately 68.7%[5] - Net loss for the six months ended September 30, 2025, was $2,343,273, a reduction from a net loss of $2,756,564 in the same period of 2024, reflecting an improvement of about 15%[5] - The company reported a comprehensive loss of $2,510,851 for the six months ended September 30, 2025, compared to a comprehensive loss of $2,675,803 in the same period of 2024, indicating a decrease of approximately 6.1%[5] - For the six months ended September 30, 2025, the loss attributable to Virax was $2,338,771, a decrease from $2,756,427 in the same period of 2024, representing a 15.2% improvement[80] - Basic and diluted loss per share for the six months ended September 30, 2025, was $(0.49), compared to $(0.89) for the same period in 2024, indicating a 45% reduction in loss per share[80] Assets and Liabilities - Total assets decreased from $6,426,903 as of March 31, 2025, to $5,715,015 as of September 30, 2025, representing a decline of approximately 11%[3] - The accumulated deficit increased from $24,589,244 as of March 31, 2025, to $26,928,015 as of September 30, 2025, an increase of about 9.5%[3] - Cash at the end of the period decreased to $3,345,464 from $4,228,944 at the beginning of the period, a decline of about 20.9%[7] - As of September 30, 2025, the Company had a cash balance of $3,345,464 and current liabilities of $365,473, raising substantial doubt about its ability to continue as a going concern[14] - Current accounts payable and accrued liabilities decreased to $103,523 as of September 30, 2025, from $250,170 as of March 31, 2025, a reduction of 58.7%[87] Operating Expenses - Total operating expenses decreased from $2,872,417 in the six months ended September 30, 2024, to $2,586,762 in the same period of 2025, a reduction of approximately 10%[5] - Research and Development expenses increased significantly from $726,412 in 2024 to $1,379,745 in 2025, representing an increase of approximately 90%[5] - The Company expects to continue generating operating losses in the foreseeable future due to research and development activities and corporate overhead[17] Cash Flow and Financing - The Company reported a net decrease in cash of $883,480 for the six months ended September 30, 2025[14] - The company issued 2,201,476 shares for cash, raising $2,070,706 during the six months ended September 30, 2025[6] - The Company plans to fund its cash flow needs through current cash on hand and future debt and/or equity financings, but there is no assurance that sufficient funding will be available[15][16] - The company aims to manage its capital resources to ensure financial strength and maximize financial flexibility, primarily through the sale of ordinary shares[123] Revenue Recognition - The Company recognizes revenues upon the transfer of control of promised products, net of any taxes collected from customers[30] - 100% of the revenues for the six months ended September 30, 2025, were derived from the Company's research-use-only test kits associated with ViraxImmune[75] - The decrease in revenue is attributed to the Company's increasing focus on the ViraxImmune platform[75] Development and Research - The company is focused on developing T cell in vitro diagnostics and immune profiling, particularly in the area of post-acute infection syndromes (PAIS)[9] - The Company is developing ViraxImmune™, a T cell-based assay for immunology profiling, currently in clinical studies for conditions like long COVID and ME/CFS[10] - The Company is also developing the ImmuneSelect RUO portfolio, which includes peptide pools and immune-profiling reagents, intended for research use only[11] Stock and Options - The company issued stock options to purchase 214,500 shares at an average price of $0.88, with a fair value of $184,041 for the six months ended September 30, 2025[110] - As of September 30, 2025, there were 471,250 stock options outstanding, with 174,910 options vested and exercisable[112] - The company had 6,543,432 ordinary shares issued and outstanding as of September 30, 2025[105] - The company sold 2,201,476 shares at an average price of $0.9729 for gross proceeds of $2,141,816, resulting in net proceeds of $2,070,706 after offering costs[104] Tax and Credits - The company received $273,594 in research and development tax credits from HMRC for the six months ended September 30, 2025[82] - Total VAT receivable as of September 30, 2025, was $174,968, significantly up from $30,654 as of March 31, 2025[81] Other Financial Information - The Company has no financial instruments measured at fair value on a recurring basis as of September 30, 2025[65] - There were no impairment losses recognized for the six months ended September 30, 2025[48] - The estimated useful lives for laboratory equipment, computer equipment, and capitalized software are 5 years, 3 years, and 3 years, respectively[47] - The Company recognizes deferred tax assets only if it is probable that future taxable profit will be available to utilize those temporary differences and losses[44] - The Company does not have any expected credit losses on financial assets measured at amortized cost as of September 30, 2025[66] - Management does not consider there to be any significant judgments or estimates in the revenue recognition for the six months ended September 30, 2025[76]