vnrx_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36833

VOLITIONRX LIMITED

(Exact name of registrant as specified in its charter)

Delaware

91-1949078

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1489 West Warm Springs Road, Suite 110

Henderson, Nevada 89014

(Address of principal executive offices)

+1 (646) 650–1351

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	VNRX	NYSE American, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of August 4, 2022, there were 57,296,973 shares of the registrant’s $0.001 par value common stock issued and outstanding.

VOLITIONRX LIMITED

QUARTERLY REPORT ON FORM 10-Q

FOR THE SIX MONTHS ENDED JUNE 30, 2022

TABLE OF CONTENTS

			PAGE
PART I	FINANCIAL INFORMATION

Item 1.	FINANCIAL STATEMENTS (UNAUDITED)	4

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		29

Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		37

Item 4.	CONTROLS AND PROCEDURES		37

PART II	OTHER INFORMATION

Item 1.	LEGAL PROCEEDINGS		39

Item 1A.	RISK FACTORS		39

Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		39

Item 3.	DEFAULTS UPON SENIOR SECURITIES		39

Item 4.	MINE SAFETY DISCLOSURES		39

Item 5.	OTHER INFORMATION		39

Item 6.	EXHIBITS		40

SIGNATURES			41

Use of Terms

Except as otherwise indicated by the context, references in this Quarterly Report on Form 10-Q to the “Company,” “VolitionRx,” “Volition,” “we,” “us,” and “our” are references to VolitionRx Limited and its wholly owned subsidiaries, Volition Global Services SRL, Singapore Volition Pte. Limited, Belgian Volition SRL, Volition Diagnostics UK Limited, Volition America, Inc., Volition Germany GmbH, and its majority-owned subsidiary, Volition Veterinary Diagnostics Development LLC. Additionally, unless otherwise specified, all references to “$” refer to the legal currency of the United States of America.

Nucleosomics^TM and Nu.Q^® and their respective logos are trademarks and/or service marks of VolitionRx and its subsidiaries. All other trademarks, service marks and trade names referred to herein are the property of their respective owners.

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022, or this Report, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this Report or incorporated by reference into this Report are forward-looking statements. These statements include, among other things, predictions of earnings, revenues, expenses or other financial items; plans or expectations with respect to our development activities or business strategy; statements concerning clinical studies and results; statements concerning industry trends; statements regarding anticipated demand for our products, or the products of our competitors; statements relating to manufacturing forecasts, and the potential impact of our relationship with contract manufacturers and original equipment manufacturers on our business; statements relating to the commercialization of our products, assumptions regarding the future cost and potential benefits of our research and development efforts; forecasts of our liquidity position or available cash resources; statements relating to the impact of pending litigation; statements regarding the anticipated impact of the COVID-19 pandemic and statements relating to the assumptions underlying any of the foregoing. Throughout this Report, we have attempted to identify forward-looking statements by using words such as “may,” “believe,” “will,” “could,” “project,” “anticipate,” “expect,” “estimate,” “should,” “continue,” “potential,” “plan,” “forecasts,” “goal,” “seek,” “intend,” other forms of these words or similar words or expressions or the negative thereof (although not all forward-looking statements contain these words).

We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this Report.

Some significant factors that may impact our estimates and forward-looking statements include, but are not limited to:

	·	Our inability to generate any significant revenue or achieve profitability;
	·	Our need to raise additional capital in the future;
	·	Our expectations to expand our product development, research and sales and marketing capabilities could give rise to difficulties in managing our growth;
	·	Our limited experience with direct sales and marketing;
	·	The material weaknesses in our internal control over financial reporting that we have identified;
	·	The possibility that we may not be able to continue to operate, as indicated by the “going concern” opinion from our auditors;
	·	Our ability to successfully develop, manufacture, market, and sell our future products;
	·	Our ability to timely obtain necessary regulatory clearances or approvals to distribute and market our future products;
	·	The acceptance by the marketplace of our future products;
	·	The highly competitive and rapidly changing nature of the cancer diagnostics market;
	·	Our reliance on third parties to manufacture and supply our intended products, and such manufacturers’ dependence on third-party suppliers;
	·	Our dependence on third-party distributors;
	·	Protection of our patents, intellectual property and trade secrets;
	·	Business disruptions and economic and other uncertainties surrounding the COVID-19 pandemic; and
	·	Other risks identified elsewhere in this Report, as well as in our other filings with the Securities and Exchange Commission, or the SEC.

In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, readers are cautioned not to place undue reliance on any forward-looking statements. Our actual financial condition and results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on March 30, 2022, or our Annual Report, this Report, the documents that we file as exhibits to this Report and the documents that we incorporate by reference into this Report, with the understanding that our future results may be materially different from what we currently expect. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations. If we do update or correct any forward-looking statements, readers should not conclude that we will make additional updates or corrections.

Table of Contents

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

		Page

Condensed Consolidated Balance Sheets		5

Condensed Consolidated Statements of Operations and Comprehensive Loss		6

Condensed Consolidated Statements of Stockholders’ Equity		7

Condensed Consolidated Statements of Cash Flows		9

Notes to the Condensed Consolidated Financial Statements		10

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VOLITIONRX LIMITED

Condensed Consolidated Balance Sheets

(Expressed in United States Dollars, except share numbers)

	June 30,			December 31,
	2022			2021
				$ $
ASSETS	(UNAUDITED)
Current Assets
Cash and cash equivalents		16,730,441			20,581,313
Accounts receivable		8,489			12,510
Prepaid expenses		936,068			598,367
Other current assets		973,979			786,642
Total Current Assets		18,648,977			21,978,832

Property and equipment, net		4,807,729			4,911,077
Operating lease right-of-use assets		739,015			383,551
Intangible assets, net		151,314			216,876
Total Assets		24,347,035			27,490,336

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities
Accounts payable		2,602,351			1,542,457
Accrued liabilities		3,236,981			3,828,501
Deferred revenue		10,000,000			12,512
Management and directors’ fees payable		74,261			71,303
Current portion of long-term debt		1,085,089			797,855
Current portion of finance lease liabilities		44,293			48,958
Current portion of operating lease liabilities		241,838			171,166
Current portion of grant repayable		65,814			43,100
Total Current Liabilities		17,350,627			6,515,852

Long-term debt, net of current portion		1,743,156			2,270,767
Finance lease liabilities, net of current portion		447,880			511,086
Operating lease liabilities, net of current portion		519,485			217,305
Grant repayable, net of current portion		206,785			253,221
Total Liabilities		20,267,933			9,768,231

STOCKHOLDERS’ EQUITY
Common Stock
Authorized: 100,000,000 shares of common stock, at $0.001 par value Issued and outstanding: 53,846,973 shares and 53,772,261 shares, respectively		53,847			53,772
Additional paid-in capital		156,441,677			154,730,938
Accumulated other comprehensive income		244,519			148,326
Accumulated deficit		(152,272,367	)		(136,988,636	)
Total VolitionRx Limited Stockholders’ Equity		4,467,676			17,944,400
Non-controlling interest		(388,574	)		(222,295	)
Total Stockholders’ Equity		4,079,102			17,722,105

Total Liabilities and Stockholders’ Equity		24,347,035			27,490,336

(The accompanying notes are an integral part of these condensed consolidated financial statements)

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VOLITIONRX LIMITED

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

(Expressed in United States Dollars, except share numbers)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	$			$			$			$
Revenues
Services		10,046			-			70,300			-
Product		29,706			24,782			83,663			50,312
Total Revenues		39,752			24,782			153,963			50,312

Operating Expenses
Research and development		3,279,323			2,935,720			6,869,376			7,522,547
General and administrative		3,085,840			2,427,806			5,687,992			3,626,759
Sales and marketing		1,774,064			561,913			3,373,047			886,772
Total Operating Expenses		8,139,227			5,925,439			15,930,415			12,036,078

Operating Loss		(8,099,475	)		(5,900,657	)		(15,776,452	)		(11,985,766	)

Other Income (Expenses)
Grant income		393,440			391,532			393,440			391,532
Loss on disposal of fixed assets		-			(26,166	)		-			(26,167	)
Interest income		11,161			492			11,163			2,213
Interest expense		(37,129	)		(39,688	)		(78,161	)		(81,869	)

Total Other Income		367,472			326,170			326,442			285,709

Net Loss		(7,732,003	)		(5,574,487	)		(15,450,010	)		(11,700,057	)
Net Loss attributable to Non-Controlling Interest		82,302			47,539			166,279			56,963
Net Loss attributable to VolitionRx Limited Stockholders		(7,649,701	)		(5,526,948	)		(15,283,731	)		(11,643,094	)

Other Comprehensive Income / (Loss)