Q3 2022 VolitionRX Ltd Earnings Call
Good morning, ladies and gentlemen, thank you for standing by welcome to Volition Limited third quarter 2022 earnings conference call. During today's presentation, all parties will be in a listen only mode.
Following the presentation. The conference call will be opened for questions. If you have a question. Please press.
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He's hearing isn't it.
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This conference is being recorded today November .
November 16.
2022 I'd now like to turn the conference Jay Cocks, Colo Executive Vice President of Investor Relations.
Well what.
Thank you.
Operator, and welcome everyone to todays earnings conference call for Volition Rx limited.
This call will cover Volitions financial and operating results for the third quarter of 2022.
Along with a discussion of our recent activities and key upcoming milestones.
Following our prepared remarks, we will open the conference call to a question and answer session.
Also on our call today are Mr. Cameron Reynolds, President and Chief Executive Officer.
Dr. Tom You Tara Chief Executive Officer of our bullish in veterinary subsidiary.
Mr. Terry Queues, Chief Financial Officer.
Before we begin I'd like to remind everyone that some of the information discussed on this conference call will include forward looking statements covered under the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
These statements are based on our beliefs as well as assumptions we have used based upon information currently available to us.
Because these statements reflect our current views concerning future events. These statements involve risks uncertainties and assumptions.
Actual future results may vary significantly based on a number of factors that may cause the actual results or events to be materially different from future results performance or achievements expressed or implied by these statements we have identified various.
Risk factors associated with our operations.
Most recent annual report on Form 10-K.
Orderly reports on Form 10-Q, and other filings with the Securities and Exchange Commission, we do not undertake any obligation to update any forward looking statements made during the course of this conference call.
I'd now like to turn the call over to our President and Chief Executive Officer, Mr. Cameron Reynolds Kevin.
Okay.
Thanks, Scott and thank you everyone for joining Volitions third quarter 2022 earnings call today.
Especially appreciate as always your time, given the busy earnings call season.
We will commence the call with Dr. Tom Butera, Chief Executive Officer abolition met to discuss the rollout to beat you bet Bob.
Our global supply and licensing agreement.
Then to Terry who will provide a financial report and finally I'll provide an update on the great progress the team have been making with regards to another of our key pillars.
As well as a brief update on <unk>.
Uh huh.
So without further Ado I'll hand, you across to Tom for an update on what's been an incredibly exciting time or a bad thing.
Thanks, very much Cameron and good morning, everybody.
I'm delighted to say that we've continued to make very strong progress in our mission to provide an accessible and affordable screening test to aid early detection to veterinarians and pet owners around the world.
Last month, we were thrilled to announce the signing of a global supply agreement with a market leader in pet health care.
Through this supply agreement, we are working with a market leading company as a worldwide provider of the new Q vet cancer tests through its extensive reference laboratory network cancer indications and animal health.
This is a breakthrough agreement.
Together with our previously executed agreements means the new cues that cancer test will be available at a mass market level.
Absolutely thrilled that this agreement has been executed.
And that the teams are now working towards a product launch I very much look forward to providing further updates in the near future.
And speaking of product launches subsequent to quarter end, we were delighted to announce the launch of our new Q vet cancer tests across the United States and the forthcoming launch in Europe by Heska Corporation.
Also one of the leading global providers of advanced veterinary diagnostics through Heska is veterinary diagnostic laboratories.
Just want to repeat that this is the launch via Heska as reference labs.
This means that any veterinarian in the United States, the world's largest pet care market can now order the new Q that cancer test for their clients.
Interestingly enough. This news broke the morning of the New York Vet show and our Booth was nearby the Heska team and we mutually enjoyed a great deal of interest and interaction with the veterinarians and vertex attending the show.
And it's not just the U S. The testicles shouldn't be available be a skill, which is test because European subsidiary, thereby we will officially launch in Europe as well.
I'm here in London, England, This week and that the London Vet show, so look forward to generating ongoing awareness and significant interest while attending.
Watching via Heska as reference lab network is an important achievement in our transformative work together as we move towards the launch at Heska as flagship point of care solution also anticipated in early 2023.
I know a number of folks they asked at this launch prompted payment of any of the milestones within the Heska agreement.
These do not come with the reference lab launches in the U S and Europe , but on the schedule, which I will articulate for you below.
Volition received a $10 million upfront payment on signing the agreement.
This payment will be recognized as revenue over the lifetime of the point of care product.
Volition will also receive up to $18 million based upon the achievement of near and mid term milestones.
$6.5 million relating to the first commercial sale of the point of care screening product.
And then six and a half million dollars relating to the first commercial sale of the point of care monitoring for dogs product.
Both of which we anticipate receiving in the first half of 'twenty 'twenty three.
With the final payment of $5 million do you have the publication of clinical use in cats, most likely in early 2024.
In addition to these milestone payments and most likely significantly greater than these payments is the ongoing revenue.
That volition expects to receive in relation to payment for kits for.
For the reference lab market in particular.
And for the supply of key components for the exclusive point of care product that heska will bring to the market.
Please remember every time Heska sells a test volition will make money.
Be that through the sale of a kit or from the sale of a key component.
And this is a long term deal with incredible market potential where we expect millions of tests will be sold so we expect the ongoing revenue for volition to be very significant.
And outside of these global providers that I spoke of earlier, we continued to make solid progress with other distributors, particularly in Europe , where the market is fairly fragmented and anticipate launching with at least one other company before the end of the year.
This will bring the total to five either global.
More and more local company license he's running our test an excellent outcome and significant progress throughout this year.
I use an analogy with the team when I think about volition.
There are 12 years of hard work and where we are today and for our fellow space Geeks I think you'll like this one.
Our rocket is ready.
We are on the launch pad yeah.
Yes, the crawler has taken time to deliver the rocket.
We are now Theyre all systems go.
It's a tremendously exciting and rewarding achievement for the company and we think our long term investors for their belief in us.
We have discussed the commercial opportunity before but as a quick recap just to remind you.
There are approximately 84 million pet dogs in the United States and just under 50% of those dogs will have at least one veterinary care visit per annum, which volition believes will provide an incredible opportunity to screen those senior dogs over seven years of age and breeds at risk.
Cancer from four years and upwards.
And it's worth noting.
There are 30, plus breeds identified as high risk.
Implementing the new to that cancer tests and annual wellness visits can help detect cancer at an early stage.
Even before symptoms appear.
Allowing for a better chance of effective treatment and improved outcomes.
And that's why we are all here to help save lives and improve outcomes for millions of people and animals worldwide.
So that's the commercial update for <unk>, and perhaps before I move onto R&D updates I might just think the whole volition and volition veterinary team. It has taken tremendous hard work and determination from each and every member of this company to get that rocket on.
That launch pad.
Thank you again for your support of commitment and most importantly, thank you for your innovation.
From an R&D perspective, I'll keep this brief and simply highlight news out just yesterday.
We were excited to have announced a clinical research study with uncle that IRA.
Announced veterinary referral clinic specializing in medical and radiation oncology.
This study of 100 dogs and twenty-five cats supplements the ongoing work at Texas A&M looking at the use of new cuvette, not only of dogs, but also cats as bolt a screening and monitoring tool.
We are excited to be adding cats and more monitoring data to our growing list of research.
This non interventional study is being led by doctors Jerome then walk.
Aka vet clinical director and will evaluate circulating nuclear zones of dogs and cats with cancer using volitions, new view that cancer test.
For those of you less familiar with the veterinary space. Dr. <unk> is one of the world's leading veterinary oncologists and is currently the president of the European Society of veterinary oncologists known as S. Funk.
So yet again, we are honored to be working with such a key opinion leader.
On Covid is well known in Europe, but the design and management of veterinary clinical trials in dogs and cats and we very much hope. This is simply the start of an effective long term relationship with all COVID-19 as we seek to broaden the range of cancers that are ncube had cancer test can detect across different species.
We look forward to providing further updates and sharing the results in due course.
In summary, I could not be happier with how the commercialization has gone so far this year.
And we are very hopeful we will get a lot of news on very meaningful product launches early in 2023.
And with that I'll now hand, it over to Terry for the financial report.
Eric.
Thanks, very much Paul and thank you everyone for joining our earnings call today.
I'll now provide a summary of the key financial results for the quarter ended September 32022.
Sue.
We ended the quarter with cash and cash equivalents of approximately $16 $4 million compared with $67 million, the second quarter and $26 million at the end of 2021.
During this quarter, we received approximately $6 $4 million in cash under the license fees and expenses through an underwritten public offering of our common.
Stock.
Additionally, we secured over one $5 million.
Funding from the board after risks in Belgium.
No the access program positions new protocols.
Key titles across the EU UK and U S.
As at the end of September we've drawn down $1 million.
Just for information during third quarter, we made zero sales of our common stock under the aftermarket equity distributions.
We continue to manage our expenditures carefully net cash used in operating activities, averaging approximately $2 $3 million a month in the three months to the end of September .
Revenue reported year to date 2022 with approximately $187000.
$6000 at the same periods in the prior year.
This revenue excludes upfront milestone payments and $10 million in cash.
Cash for Heska Corporation received in March.
Worth noting with pay.
Putting risky nonrefundable it has not been recognized as revenue.
Okay.
In accordance with the relevant accounting standards.
As Tom mentioned earlier, it will be recognized as revenue over the lifetime cap, which has not yet been launched.
This is just because of several milestone payments expected in relation to that.
We anticipate that the next two milestones will be achieved and payments totaling $13 million.
During the first half of 2023.
Final payments of $5 million due following publication of clinical data in cats.
Slide 30.
Thank you Paul.
Given the output of LNG is expected in the short to mid term.
We have the resources to deliver clean mouth.
Due to the revenue ramp we expect to start welding.
Wide launch.
Anticipated interest rate.
As we discussed on previous calls given the product range. We believe we can develop promote for processing.
We believe our addressable market.
Most notably in the short term with Youtube Youtube net.
I'll be happy to discuss the total addressable market in future calls.
I'll now hand, the timber.
Thanks, Kevin.
Thank you Terry and thank you Tom well, there's a comprehensive update bright progress indeed.
I will wrap up the call to date with update on two other product.
You can get any cancer.
Early in the third quarter and highlighted on our last call. We sponsored a genome web of women are presented by Dr. Andrew Swabbing.
God promises University Hospital, London Tahoe, the promise of neutral extra million traps net as biomarker inflammatory disease.
This webinar the second in a theory was incredibly well attended with an engaged audience.
What's on demand into the genome website.
Also during the third quarter in collaboration with researchers at the University of Nomura and Bally blood in Belgium, We published a clinical paper entitled the closest nucleosome Biomarkers in septic shock and critical COVID-19 patients and observational study and the poster presentation entitled.
Evaluation and comparison of the.
<unk> biomarker in sepsis and COVID-19 patients.
At the International Society on thrombosis and Haemostasis.
The hatred Congress in July .
Subsequent to the quarter end, we also presented data at the international Symposium on infection in the critically ill patients and international Sepsis Forum.
The key binding presented that levels the choices as measured by our new unit.
Highly elevated expenses.
Moreover, the results about that correlate very well with the severity of disease.
The severity of disease is currently.
Using the sequential organ failure assessment both at school.
This score is assessed on fixed separate organ function lung cardiovascular liver kidney.
Coagulation system and the Brian .
Test results just a single number from a routine blood tests are related with the Sofa school with something of great interest to the convention in attendance at the Forum these conferences.
A real highlight of 2022 with many of the team in attendance to develop a network of key opinion leaders. In addition to starting discussions with potential licensing and distribution partners.
Indeed, I am happy to announce we have initiated commercial discussions with major acted in the devices space and are making great progress with our market access program.
We currently have two centers of excellence.
But actively using new units with a further two deepened legal review of contractual terms and we have identified a number of other sites, we hope to onboard.
Great.
These multiple centers of excellence will help narrow down specific indications useful to our future and medical and regulatory trial.
And speaking of trial during the third quarter, we reported clinical research organization.
You want to take development and clinical validation studies.
<unk> product portfolio in the U S.
Doug will conduct large scale finding study across multiple sites in the U S.
Listen if you net new cancer tests to determine clinical utility evidence and got them.
I'm very happy to say they have made significant progress in setting up sites with all three clinical studies and I am delighted to announce today, we anticipate our first patient has been recruited into the study in the coming weeks.
We anticipate that subsequent studies will investigate the chosen intended use claims of the test.
With the objective to gain clearance authorization or approved in the United States food and drug administration.
The F D a.
It allows us to be marketed in the U S.
These multipart studies will help us demonstrate our <unk> technology can do.
Directly benefit patients and support our application to the Fda's breakthrough device program expected in the first half of next year and a pre submission.
In 2023.
Great. Thanks to Sharon Best Thereof Entertainment was spearheading our research efforts in the U S.
It is fantastic to get this project underway.
We're also delighted to be working with one of the worlds leading cancer research institutions M D. Anderson.
As announced earlier in the third quarter, we are sponsoring research from the University of Texas, MD Anderson Cancer Center.
The role of neutrophil extracellular, perhaps net in cancer patients with sepsis.
The patients have weakened immune system and shockingly, having 10 times higher likelihood of developing sepsis and ultimate Lockheed design development.
Therefore, it is critical for positions brilinta by cancer patients at risk of sepsis early.
As she had treatment quickly improve patient outcomes.
Our study with MD Anderson is an important study that evaluates the potential utility of using Ethernet in the management of cancer patients at risk of sepsis and we're delighted to collaborate on this research and look forward to sharing further updates and results in the future.
And Luckily and bringing its right up to date with the news out last week we.
We have been invited to participate in the government backed prospective study.
The performance of blood biomarker in the early detection of lung cancer with.
With the Hospices Civils de Leon Hcl, Fred the second largest University hospital.
The <unk> initiative or the initiation of lung cancer screening.
It's a wide range of clinical study assessing the feasibility of a lung cancer screening program.
The effectiveness of screening.
The Gilead study will evaluate the performance of volition geeky test as a biomarker for the early detection of lung cancer when used alone and in conjunction with a C. T scan over the next year.
Lung cancer is tragically the most common causes of death.
Worldwide.
One 8 million patients each year, we know that screening saves lives and there's a real unmet need for lung cancer screening globally.
Our colleagues at <unk> have recognized the need and we're proud to be part of the pioneering Gilead study in France, where they.
Ultimate goal of developing a national screening program.
It is expected that over 400 subjects will take part of the study over the next year become a thing of smoking cessation and lung cancer awareness campaign.
One on one intervention and screening opportunity and indeed I'm glad to report that the first three subjects have already been recruited.
So truly.
An exciting quarter here at volition.
With the achievement of our EU regulatory hurdle publishing compelling data set of our market access program.
And indeed, our commercial discussions with major players in this space.
There's also a fantastic get a clinical and regulatory program underway in the U S and convinced the government backed studies in lung cancer screening and brands.
After many years of hard work has indeed delivered a rocket to the launch pad and we're excited to have our new you bet. That's a test available.
Soon to be available by five global and local licensing agreements.
Agreements.
I'm absolutely delighted with the progress we have made and the people of the visit as we progressed strongly from a purely research and development company for company with wide ranging products.
It is an exciting path moving part of our business with clear potential to generate significant revenue for the company in terms of both milestone payments and an ongoing revenue stream as Tom explained for the sale of kits and fee component no need to Heska and scale, but also to say in health care in Singapore, Texas.
DNA taken Portugal at another global market leader in Pet Health care recently are now enjoying this goal we're close I'd like to thank you all for joining us today.
Hi, along with the rest of the board and indeed, the whole company very much look forward to sharing further news regarding you bet and our other new pillars as well as the results of our <unk> and <unk> studies.
Locations and milestones over the coming months and borders.
I very much feel we're in extremely strong position to commercialize a new platform in so many areas.
Well listen truly is powered by <unk>.
I could not be more positive about our work at the heart of Epigenetics and I am excited for the next phase of our journey.
Happy to take questions.
Uh huh.
Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line. That's a good question Kim.
You May press star two if he would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys, one moment, please while I look for a fourth license.
Yeah.
Our first question comes from Michael <unk> with Maxim Group. Please go ahead.
Hey, guys. Thank you for taking my questions and congratulations it seems like you've made a lot of progress over the last couple of months.
Thank you.
Sure.
First I'd like to get a bit more on the on the Gilead study.
In particular, how it differs from the lung work that you've done in Asia and then.
What are the timelines for this study is this using one of your CE marked assay is and could this potentially result in a in a commercial product if the data from that is positive I know, it's a multi party.
Yes, very good question. So obviously, we've had very good data from Asia, which we've talked about a lot.
And obviously during the pandemic there's been issues in the country. There. So it's good to have a focus in Europe very close to our home.
We're working very closely with University in France, and they are absolute world leaders in what they do.
I've been running out tests and seeing how they work now they're very keen to see if we can be added to the national trial and the national screening program. So.
It is it depends on what assays are they testing a few different things what is the final product, but it could include a part of what is currently CE Mark that will be determined by the study. So the study they have underway now.
Should be finished next year, but into next year and the aim if it goes as well as they would like would be.
Added to the National screening program.
They've got obviously everywhere in lung cancer is a massive problem and I'm no less in France. So the government is really trying to do something about it. So we're hopeful we've seen very good results as a day with what we do as we have in Asia.
And adding it to their trial and we'll see how it goes but very encouraging absolutely top worldwide opinion leaders in this field a great study and we're really happy to be part of it and we should have the first round or finished by the end of next year.
Oh, yeah. Thank you for that.
And then regarding the study with uncle Bat is is this a program that you reached out to them to do or is this something where they saw the potential of new Q and then reached out to you to conduct the study.
Tom.
And Michael just to add to that no. Dr. <unk> actually reached out to us because he was very interested in our platform and was.
His staff as well as a number of bordered oncologists there as well, we're all very interested in and so we were delighted and flattered by his outreach.
Alright, Thank you for that and then one last one.
Oh, sorry go ahead.
I think thats indicative and Tom can verify this from his point of view, we're doing a lot of VIX shows an interest the inbound interest has been absolutely fantastic Tom joining him speak to the inbound interest.
At normal level of interest from people. Yes. This is I mean, just one last comment to Mike on and Thats been why he's also the president of <unk> Bank.
That's actually where he initially made contact with us as far as the European Veterinary oncology group, which is similar to the American <unk>.
BCS group, which actually Dr. Roadways, as president of who is our chief Medical Officer Volition. So we are continuing to return I'm in London, Obviously this week, who are attending to London vet show.
We continue to spend a lot of time in Europe as well as domestically in the the interest from my veterinary colleagues supposed to both on the oncology side as well as the general practitioner side is quite robust tremendous interest everywhere. We go and we are being invited to so you know.
A lot of the conversations and all of the presentations that were making even though much here in Europe right now I am personally be invited that Aurora has been invited to speak we just spoke of the Netherlands, and we're going to be going to Portugal to speak. There. So these are frequently coming from invites to us personally as they were this past summer with reference to Germany, and France as well so weird.
Alright, and then again flattered by the amount of attention that test is getting.
Thank you Sir is certainly exciting to see how the vet programs unfolded just one last follow up to that question and then I'll hop back in the Q4, that's 5 million dollar milestone from Heska once you get a publication cats.
Are you expecting that a publication from the anchor study given that that is including cats could support this milestone.
Yes.
We're reaching out obviously to get additional fee line as well and also we like the fact that we're reaching out to additional kols to support the research that we're doing and we will look to see and align that the information on the studies that they're doing are lining up with the studies that we're running in the U S. So.
Parallel studies at different locations supporting the and the validation of our test in the Cat is obviously going to lend a lot of additional credibility to the value of our tests.
And we certainly expect just on your last point to get to a critical mass we need for the product really to take off we've had fantastic partnerships with the GI lab in Texas and in Singapore, but they are relatively small labs and its never going to be a large amount running through them, but with the potential launches in the short term of Heska and the other very big company I think.
It'll it'll generate demand, we generate demand and they'll support each other and so we're launching we think on point of care and in lab reference labs. So we'll have it all covered in the call.
Testing demand the vaccine has been generating.
They will make the supply from the big companies and we'd really expect it to start taking off once they've launched the two big companies in particular, which we would hope to be early next year and one other thing to remember is 84 million dogs in the United States.
There is close to 90 million cats, and we haven't even touched on the potential opportunity. That's there. So obviously the analytical studies, we're doing on the fee line.
Is going to be a match for us as well.
Alright, Kamran Tom. Thank you very much I really appreciate you guys, taking my questions here.
Thank you Youre welcome Mike.
Yeah.
Right.
The next question comes from Bruce Jackson with the Benchmark Company. Please go ahead.
Hi, good morning, and thanks for taking my questions. A couple of follow up questions on the Iliad study are they evaluating any other testing modalities. In addition to C T and the <unk> test.
Not that I'm aware.
From my understanding and it wasn't a Saudi are developed but it was where the only blood test and <unk> scanning and then other lifestyle choices in areas Bot and smoking, but we got to my knowledge. The only blood test on there. So hopefully we could be a very important part because I mean as you know there really isn't another blood just help it certainly not something routine.
And it can be run easily so it's something we're very hopeful.
And then in terms of how this plays out so they finish up enrollment end of 2020 three.
US what happens after that in terms of the review period and what their intended plan is in terms of developing national screening guidelines and when those might be in place.
And they are looking for a very comprehensive strategy I think it was outlined a little bit in the press release.
Mitigating smoking.
Scanning mobile centers, where they can scan and test your blood a very comprehensive program because as you know Bruce lung cancer is incredibly deadly and happens all too quickly. So we're looking for a comprehensive program and we're hopeful we'll find out. After this trial has gone through to be a part of the system of what they do.
So it'll be the running of the trial and the data we would expect by the end of next year and then the government will decide what the packages, which at between the government. It can be done reasonably quickly.
They put a lot of resources behind it and Theyre very keen to see how our new platform works given the data we've had in lung and other cancers.
We're very hopeful that we can be helpful to them and I think it's very good now that we have a fantastic base and the best base, a very good basis now and the doses and also very heartening to be back in the human capital selectively in Europe now as we have made in Asia.
Forget that.
Doug very study is also looking at human cancers, particularly the <unk>.
Liquid tumors. So we've got a lot going on and as Tom said, the the rocket on the launch pad and suddenly things now to ready to lift off and with strong we expect the vet market to really take the demand is really great strongly once the big companies launch, which we expect to be soon.
Okay, Great and then.
Turning over to the vet space a question for Terry.
The heska milestones so the original attainment is being amortized.
Upcoming milestones also gonna be amortized over a certain period of time or would those be lump sum payments to you.
So we will get them as lump sum payments.
Which which we'll be able to use.
As cash.
They will be treated exactly the same as the first payments so there'll be amortized over the life of the product.
From a revenue perspective.
And then with the new agreements that you've.
Just put in place how are those going to be coming to you and revenue.
So for the new agreement.
We will get a payment every time they sell a test.
So similarly to the way that Everytime Heska Telus attack Heska, well, we will get our payments everytime heska sort of a pet.
Similarly every time this new company sales of test, we will get paid.
One thing to make clear Hey, Bruce.
Heck are fantastic partners and I go to exclusive at the point of care, but what we're looking to do in the reference labs as you can see we've got a bunch of reference labs, and we would expect a bunch more we really wanted many companies out there selling the product as possible because we get a very large very reasonable percentage of the revenue and all of the deals. We're looking to do so, but we do not expect to get larger.
<unk> payments in the nonexclusive spike in the reference labs. The most important thing for us with them is that we have large coverage with the biggest companies out pushing our product.
As Tom said, we'll pointed out there's a tens of millions of dogs.
We now target market in the U S alone. So we wont have any opportunity to run the test on as many platforms as possible.
And we're looking to get a similar structure.
As possible for each one and how much we get paid protests. So they are very lucrative.
For ourselves, particularly if they reach their potential we expect them to reach.
Okay got it.
Thank you for taking my questions and congratulations on all the progress during the quarter.
I think we both Bruce.
Hello.
The next question comes from Steven Ralston with Zacks. Please go ahead.
If we could just kind of talk about new queued discover.
There was a you.
You had oh, it's multiple contracts signed that had an aggregate annual worth of $200000 and they were expected to.
Ramp up at all during the fourth quarter.
Half of this year are those are on schedule.
Yes, hi, David tended to be lumpy.
Yes, it does to be lumpy.
So Steve.
It is lumpy, but so discover it we had a bunch of them as inbound interest end of last year early this year and as you rightly pointed out we've now closed the mall.
Trials are all going very very well all different uses and fantastic to see our platform being used in so many different ways by different companies.
Now to use the Cricketing term, we're getting on the front foot and win.
It might be outbound interest to get demand up so we'd expect to see a bunch of Oregon next year.
So the bottom line is it's going very well the companies. We've signed the work is progressing very well and a very wide range of areas. It is lumpy and we are expecting a lot more in way of actually now I've taken on some.
Team members, who will help us to really get on the front foot in and get out.
Because they are all potentially hundreds of different clients out there. We think so we're being very active now would expect that to really come through more next year with a range of new contracts.
Can you just kind of a space as well as perhaps follow up on the ones we've already signed.
Yeah.
Thank you.
Over the last few quarters in the 10-Q, you've added quite a number of employees in certain areas.
And I've noticed at least in my model.
Okay.
Aggregate employee expenses R&D and G&A are on target, but it's it's it's the mix is changing I mean, the G&A expenses are actually going down in our R&D expenses are going up is there any significance to that.
Terry.
So with with G&A, we do we do try and keep the G&A.
Very much under control.
Where we have added it is building out the infrastructure for the future business. So.
The support element.
In terms of R&D.
We've got I think within that number we've got the innovation lab, which we've been stepping up and building out so that that's one of the elements that you would see that and I think also within the R&D. You've also got Duction side of things, which we've been building out so it's basically.
Building the infrastructure to support the business that we expect to get in the coming year.
Alright. Thanks.
Yeah, they've been as a company we've been very careful with Paypal administration cost as low as possible and to really hot and new people really.
At the front of front of mind, so to speak to make sure as Terry said the production, we can really make the capacity, we expect strong demand to be rising through next year, we won't be able to apply for that.
And also also our teams in the marketing of the products as well as the development of the products. So we wanted to we haven't we're focused on our current products very very carefully and how as you can tell and we're also trying to stay on the cutting edge of epigenetics. So we have done some research through then you could capture side and other work. So we're managing too awful lot with not very much.
Or a spin given how careful we are and the adaptability of our platform is truly remarkable we're doing all the things we're doing with exactly the same platform. So I think a lot of ways, we have a very unique proposition.
Thank you.
And my last question could you provide an update on those marquee studies being conducted by the National University of Taiwan.
Yeah. So we've been back to you posted with them quite a bit obviously there has been some.
Issues in Asia, and we've done a lot of work in Taiwan and China.
I'll provide more updates as they come through bad judgment done a lot of work with them in colorectal and lung and once we have the update to be finished and what the future looks like for those.
As you can see the lung, particularly is going very well and thats why its come back to Europe , and we will fully update call is when we have more information from the conferences, but we've been very very happy with the partnerships, we've had down there and we'd be hopeful perhaps of getting some more work in Asia, but it's just starting to open up now after the very end of the Lockdowns and the pandemic So I hope.
That will be picking up a lot in different areas, but our team there has done a great job spearheaded by Jasmine and keeping ongoing during these very difficult times.
Due to Lockdowns and the pandemic.
Thank you for taking my questions.
Thank you.
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There are no further questions at this time I would like to turn the floor back all that you can foresee.
I'll then comment please go ahead sir.
Thank you won't get again for joining our call and I think it's going to be a very exciting next few months as we launch a range of products in the vet space and make very strong progress, including the studies in the U S on the doses and progressed all the human cancer side.
It's getting more and more exciting from getting hopefully some very big launches soon which would really help generate.
A very increasing amount of revenue so it's going to be very exciting times. So please.
Keep in contact and look forward to the update coming soon thank you for your time.
This concludes today's conference call you may disconnect. Your lines at this time. Thank you for your participation and have a great day.
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