Q4 2023 VolitionRx Ltd Earnings Call

Good morning, ladies and gentlemen, and thank you for standing by welcome to volition or ex Limited's fourth quarter and full year 2023 earnings conference call. During today's presentation, all parties will be in a listen only mode. Following the presentation the conference call will.

Unknown Executive: Good morning, ladies and gentlemen, and thank you for standing by. Welcome to VolitionRX Limited's fourth quarter and full year call. All parties will be in a listen-only mode following. The conference call will be open for questions. If you have a question, please press the star key followed by the number one on your touch-screen. If you want to withdraw your question, press the star key followed by the number two.

The opening for questions. If you have a question. Please press the star key followed by the number one on your Touchtone phone if he would like to withdraw your question. Please press discharge he followed by that number too.

Unknown Executive: If you are using speaker equipment, please leave a message after the tone. Please lift the handset before making your selection; the conference call is being recorded today. 2024. I would now like, Group Chief, Barth.

If you are using speaker equipment. Please lift the handset before making their selections. This conference call is being recorded today March 26, 2024, I would now like to turn the conference over to Luis Bachelor Chief Group, Chief Marketing and Communications Officer. Please go ahead.

Unknown Executive: Thank you and welcome everyone to today's earnings conference call for VolitionRX Ltd. 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 Harbour 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. The 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 in our most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. We do not undertake an obligation to update any forward-looking statements made during the course of this call.

Louise Batchelor Day: Thank you and welcome everyone to today's call.

Speaker Change: Cold finish all accelerated.

Louise Batchelor Day: Before we begin I'd love.

Louise Batchelor Day: 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.

Louise Batchelor Day: On the information currently available to it.

Louise Batchelor Day: Because these statements reflect our current views concerning future events. These statements involve risks.

Louise Batchelor Day: And there's some shift.

Louise Batchelor Day: Actual future results may vary significantly based on a number of factors that may cause the actual results or events to be me.

Louise Batchelor Day: Materially different from future results performance or achievements expressed or implied by these statements.

Louise Batchelor Day: We have identified various risk factors associated with our pricing and I. Most recent annual report on Form 10-K.

Louise Batchelor Day: She reports on Form 10-Q, and other filings with the Securities and Exchange Commission.

Louise Batchelor Day: We do not undertake no obligation to update any forward looking statements made during the course of this call.

Louise Batchelor Day: I am joined today by Mr. Cameron Reynolds, President <unk>, Chief Executive Officer.

Cameron Reynolds: I am joined today by Mr Cameron Reynolds, President and Group Chief Executive Officer; Mr Terig Hughes, Group Chief Financial Officer; Dr Tom Butera, Chief Executive Officer of our Volition veterinary subsidiary; and Dr Andrew Retter, currently Medical Consultant to Volition but has recently announced he is due to join Volition in the role of Chief Medical Officer in April 2024. During the call, we will cover Volition's financial and operating results for the fourth quarter and full fiscal year of 2023, along with a discussion of our recent activities and upcoming milestones. Following our prepared remarks, we will open the conference call to a question and answer session. I'll now turn the call over to Cameron Reynolds. Cameron.

Speaker Change: Mr. Terry Akins, Chief Financial Officer Dr.

Cameron Reynolds: So Tom Katara, Chief Executive Officer, Bob Volition Veterinary subsidiary.

Speaker Change: I'm doing let's say currently medical consultancy volition, but has recently announced she joined volition and the role of Chief Medical Officer and April 24.

Speaker Change: During the call, we will cover Volitions financial and operating results for the fourth quarter and full fiscal year 2023, along with a discussion of our recent activities and upcoming milestones.

Speaker Change: Following our prepared remarks, we will open the conference call to a question and answer session.

Speaker Change: I'll now turn the call over to come on that.

Speaker Change: Sure.

Cameron Reynolds: Thanks, Lou, and thank you, everyone, for joining Volition's fourth quarter and full year 2023 earnings call today. We appreciate your time given the busy annual 10K filing season. We will commence the call with a financial report from our Group Chief Financial Officer, Terig Hughes, before moving on to a pre-recorded update from Dr Tom Butera, Chief Executive Officer of Volition VET, on the rollout of our NUQ VET cancer tests. And I'm delighted to welcome Dr Andy Retter to the call to provide an update on the NUQ NETs and CAPTCHA PCR. As announced last week, Andy will be joining Volition as our Chief Medical Officer beginning April 1st. Many of you will have heard from Andy previously, but I'd like to formally share his credentials. Dr. Retter is an intensive care consultant at Guy's and St. Thomas' NHS Foundation Trust in London, where he has worked as a consultant since 2014 and leads clinical governance in critical care. He specializes in the management of severe respiratory failure, ECMO, and thrombosis.

Come: Thanks, Lee and thank you everyone for joining Volitions fourth quarter and full year 2023 earnings call. Today. We appreciate your time given the busy annual 10-K filing season.

Unknown Executive: We will commence the coal with the financial report from our group Chief Financial Officer, Terry Qs before moving onto a prerecorded update from Doctor told them with Terra Chief Executive Officer of listen best on the rollout about EQ best Hence the tests and I'm delighted to welcome Dr. Andy restaurant to the call to provide an update on the <unk>.

Speaker Change: Net and capture PCR.

Speaker Change: As was announced last week and he will be joining volition as our chief Medical Officer, beginning April 1st.

Speaker Change: Many of you will have heard from Andy previously, but I'd like to formally share his credentials.

Terry Qs: Doctor Retch up is in intensive care consultant at Geis, and Thomas' NHS Foundation Trust in London, where he has worked as a consultant since 2014 and lead clinical governance in the critical care piece.

Terry Qs: <unk> specializes in the management of severe respiratory failure.

Terry Qs: And thrombosis.

Cameron Reynolds: Dr. Retter is the only consultant in the UK to hold dual entry on the specialist register in intensive care and in haematology and provides national guidance on the management of complex haematology patients in critical care. He will continue his clinical and research duties at Guy's and Thomas Foundation Trust after joining Volition. Dr. Retter has worked with Volition in an advisory capacity since January of 2022 to help guide the product development and clinical utility of NICU nets, our CE-marked routine blood tests to detect diseases associated with mitosis, such as sepsis. The whole team is absolutely delighted to be welcoming Andy more formally into Volition. As Chief Medical Officer, he will be vital to our success, ensuring the needs of the patient are placed at the heart of our research, development, and commercialization activities. It's great to have you on board, Andy.

Terry Qs: Dr. Richard the only consulting in the UK the whole jewelry entry on the specialist register in intensive care and in Hematology and provides national guidance on the management of complex hematology patients in critical care.

Terry Qs: Continuous clinical and resize, Judy that Gladstone Thomas Foundation truck after joining volition Doctor Ryder has worked with volition in an advisory capacity since January of 2022 to help guide the product development and clinical utility of each unit.

Terry Qs: <unk> routine blood tests to detect disease associated with the choices such as sepsis.

Terry Qs: The whole team are absolutely delighted to be welcoming Andy more formally its evolution.

Terry Qs: As Chief Medical officer, he will be vital to our success ensuring the needs of the patient are placed at the heart of our research development and commercialization activities.

Speaker Change: Great to have you on board, Andy and I must say your enthusiasm for our mission and platform really helps us to fully understand the great importance of the work we do.

Terig Hughes: And I must say, your enthusiasm for our mission and platform really helps us to fully understand the great importance of the work we do. Following Andy's update, I will wrap up with my thoughts and upcoming milestones and discuss our overall strategy going forward. Without further ado, I'll hand you over to Terig for our financial report.

Speaker Change: Following Andy's update I will wrap up with my thoughts and upcoming milestones and discuss our overall strategy going forward.

Speaker Change: Without further Ado I'll hand, you across the Terry for her financial report.

Speaker Change: Terry.

Terig Hughes: Thanks very much, Cameron, 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 December 31 and full year 2023. From a revenue perspective, we recorded revenue of $244,000 for the quarter, a 104% increase over the same period last year.

Terry: Thanks, very much Cameron and thank you everyone for joining our earnings call today I will now provide a summary of the key financial results for the quarter ended December 31, and full year 2023.

Terry: From a revenue perspective, we recorded revenue of $244 a quarter of 104% increase over the same period last year.

Terig Hughes: For the full year 2023, we recorded revenue of $775,000, an increase of 153% over the prior year. We believe that these results demonstrate steady progress, but not yet the ramping revenues that we anticipate. We expect revenues to accelerate in 2024 as several additional distributors come online with our new Q-VET cancer test, in particular HanTech and FujiVET, who are both about to launch, and our new Q-Discover pipeline continues to grow. In 2023, full-year revenue for the new Q-VET cancer test was $475,000, a year-on-year increase of 194%, mainly reflecting sales of reference kits through our agreement with IDEC Revenue for NuCube Discover for 2023 was $300,000, which reflects 107% growth over 2022. Moving on to the ballot sheet, We ended the year with cash and cash equivalents of approximately $20.7 million, compared with $10.9 million at the end of 2022.

Terry: For the full year 2023, we recorded revenue of $775000, an increase of 153% over the prior year.

Terry: We believe that these results demonstrate steady progress, but not yet the ramp in revenues that we anticipate.

We expect revenues to accelerate in 2020 for several additional distributors come on line, but how would you kill that cancer tests in particular.

Terry: And Fuji Bad who are both about to launch and our new <unk> discover pipeline continues to grow.

Terry: 2023 full year revenue of in Youtube cancer test was $475000 a year on year increase of 194% mainly reflecting.

Terry: The reference kits through our agreements with IDEXX.

Revenue for <unk> discover towards 23 was $300000, which reflects 107% growth over 2022.

Terry: Moving onto the balance sheet.

Terry: We ended the year with cash and cash equivalents of approximately $27 million compared with $10 $9 million at the end of 2022.

Terig Hughes: Net cash generated from operating activities during the fourth quarter 2023 was approximately $6.4 million and reflected the receipt of $13 million in milestone payments from Hesca Corporation in December. For the full year 2023, net cash used in operating activities was $18.1 million, compared to $15.3 million in the prior year. Net loss at the fourth quarter 2023 was $8.8 million, compared to $7.3 million for the fourth quarter 2022.

Terry: Net cash generated from operating activities during the fourth quarter 2023, with approximately $6 $4 million and reflected the receipt of $13 billion in milestone payments from Heska Corporation in December.

Terry: Full year 2023, net cash used in operating activities was $18 $1 million compared to $15 $3 million in the prior year net loss for fourth quarter, 2023 was $8 $8 million compared to $7 $3 million for the fourth quarter 2022.

Terig Hughes: And for the full year, $35.7 million, compared to $30.6 million in 2022. This increase was primarily the result of increased research and development expenditures, mainly reflecting the costs of our U.S. clinical trials, which added $3.1 million to P&L costs in 2023. To date, various European funding bodies, and in particular, Belgian agencies, have committed to the company over $21 million in non-diluted funding in various forms, including cash grants and loans on favorable terms. In the fourth quarter, a Walloon institutional fund and regional government bodies of the Walloon region of Belgium committed additional funding to the company, aggregating approximately $5.5 million, of which approximately one half was in the form of a loan.

Terry: For the full year at $35 $7 million compared to $36 million in 2022.

Terry: This increase was primarily the result of increased research and development expenditures, mainly reflecting the cost of our U S clinical trials, which added $3 $1 million to the P&L costs in 2023.

Terry: To date, various European funding bodies and in particular balance sheet agencies.

Terry: Getting to the company of $21 million in non dilutive funding in various forms including cash grants and loans on favorable terms.

In the fourth quarter, a balloon institutional funds and regional government bodies, the balloon region of Belgium committed additional funding to the company aggregate to approximately $5 $5 million of which approximately one half was in the form of alone.

Terry: We would like to publicly thank the various government agencies of Belgium for their continued support.

Terig Hughes: We would like to publicly thank the various government agencies of Belgium for their continued support. We have also initiated efforts with respect to seeking non-dilutive funding in the U.S. Our aim is to fund some of our major programs through either non-dilutive or project financing, which we anticipate could be substantial over the next two years. As mentioned earlier, at the end of the fourth quarter, we received $13 million in milestone payments from Hesca Corporation, now an Antec company and part of Mars Petcare, one of the largest pet health companies in the world. And so, to recap, we ended the year with cash and cash equivalents of $20.7 million.

Terry: We have also initiated efforts with respect to seeking non dilutive funding in the U S.

Terry: Our aim is to fund some of our major programs through either non dilutive or project financing, which we anticipate could be substantial over the next two years.

Terry: As mentioned earlier at the end of the fourth quarter, we received $13 million in milestone payments from Heska Corporation, now and AMETEK company had parts of Mars Petcare well, it's the largest pet health companies of the world.

Terry: And so to recap we ended the year with cash and cash equivalents of $27 million.

Terry: With that said I believe that we are well placed to execute the plans the team have in place for 2024.

Speaker Change: And with that I will pass out that's a doctor told with Ara C E O about position in veterinary subsidiary.

Terig Hughes: With that said, I believe that we are well placed to execute the plans the team has in place for 2024. And with that, I will pass over to Dr. Tom Butera, CEO of our Volition veterinary subsidiary.

Terry: Al.

al: Thanks, very much Terry and good morning, everybody in 2020, three we supply kits and components for over 58000 tests.

al: Five times that number in the prior year.

al: This growth demonstrates solid progress to date, and we certainly expect more growth to come as additional companies fully launch our product at home in the United States and around the world.

Salvatore Thomas Butera: Thanks very much, Terig, and good morning, everybody. In 2023, we will supply kits and components for over 58,000 tests, five times the number in the prior year. This growth demonstrates solid progress to date, and we certainly expect more growth to come as additional companies fully launch our product at home in the United States and around the world. By the end of 2023, the new QVET cancer test will be available in the US. The United Kingdom and Ireland, Portugal, Singapore, Taiwan, and Italy.

al: By the end of 2023, the new Kingbird cancer tests was available in the United States, The United Kingdom and Ireland.

al: Portugal, Singapore, Taiwan and Italy.

al: 2023 was a breakthrough year for volition veterinary gaining such wide distribution and with such respected company. So kudos to the team and a special thanks to our legal department.

al: We have also learned a great deal.

al: Launching and introducing a new product in veterinary medicine, especially early cancer detection in dogs takes a tremendous amount of education to teach veterinarians how to incorporate this early cancer dialogue into their routine wellness visits.

Salvatore Thomas Butera: 2023 was a breakthrough year for Volition Veterinary, gaining such wide distribution and with such respected companies. So kudos to the team and a special thanks to our legal department. We have also learned a great deal.

al: Our new two test also requires an additional cost to the client which is part of our educational conversation in teaching doctors.

al: Easily make this part of their wellness office visit.

al: Additionally, we are always emphasizing the affordable cost of our test and encouraging doctors to keep the tests at very reasonable margins.

Salvatore Thomas Butera: Launching and introducing a new product in veterinary medicine, especially early cancer detection in dogs, takes a tremendous amount of education to teach veterinarians how to incorporate this early cancer dialogue into their routine wellness visits. Our new Q-Test also requires an additional cost to the client, which is part of our educational conversation in teaching doctors how to easily make this part of their wellness office visit. Additionally, we are always emphasizing the affordable cost of our test and encouraging doctors to keep the cost at a very reasonable level.

al: The fact is clearly related to the very large number of dogs that they will be screened for early cancer detection.

al: All in all I believe our volition team will look back on 2023 is a proud pivotal moment in the burgeoning field of early canine cancer detection setting the stage to improve and extend the lives of millions of dogs in the months and years to come.

al: We have also launched a new contest with IDEXX.

al: One of the world's leading veterinary diagnostic companies and now Heska and and Tech company and part of bars pet care.

al: Another leading veterinary company and completing the exciting tech transfer onto the Heska element I plus in house diagnostic platform.

Salvatore Thomas Butera: This is clearly related to the very large number of dogs that they will be screening for early cancer detection. All in all, I believe our Volition team will look back on 2023 as a proud, pivotal moment in the burgeoning field of early canine cancer detection, setting the stage to improve and extend the lives of millions of dogs in the months and years to come. We have also launched the new Q-Test with IDEC, one of the world's leading veterinary diagnostic companies, and now HESCA, an Antec company and part of Mars Pet Care, another leading veterinary company, in completing the exciting tech transfer onto the HESCA Element I plus in-house diagnostic platform. More recently, as you will have seen in an announcement just last week, we have signed a supply agreement with Fujifilm Vet Systems for our Indeed, I have prerecorded my update for today's call, as I am currently over in Japan with our colleagues from Fuji. And wow, what an incredible event this last week.

al: More recently as you will have seen in an announcement just last week, we have signed a supply agreement with Fuji film that systems for a new two vet cancer tests in Japan.

Speaker Change: Indeed, I have prerecorded my update for today's call as I am currently over in Japan, with our colleagues from Fuji and Wow, what an incredible event. This last week.

Speaker Change: We were delighted to be deeply engaged with our Fuji colleagues at their veterinary booth located at the World Veterinary cancer Congress in Tokyo.

Speaker Change: This event also provided a significant exposure to numerous veterinary cancer specialists from around the world.

Speaker Change: We believe that Japan is a considerable market opportunity for volition as we seek to expand our new key that cancer test offering in Asia.

Speaker Change: And Fuji is a great partner with us.

Speaker Change: Fuji film that systems, as Japan's leading veterinary diagnostic laboratory service with a network of 10 laboratories, serving more than 90% of the 12000 veterinary clinics and hospitals nationwide in Japan.

Salvatore Thomas Butera: We were delighted to be deeply engaged with our Fuji colleagues at their veterinary booth located at the World Veterinary Cancer Congress in Tokyo. This event also provided significant exposure to numerous veterinary cancer specialists from around the world. We believe that Japan is a considerable market opportunity for Volition as we seek to expand our new QVET cancer test offering in Asia, and Fuji is a great partner with us. Ujifilm VetSystems is Japan's leading veterinary diagnostic laboratory service with a network of 10 laboratories, serving more than 90% of the 12,000 veterinary clinics and hospitals nationwide in Japan.

Speaker Change: As a reminder, our test is a simple affordable easy to use blood screening test that can be easily integrated into preventive care programs and used alongside other routine blood work during regular wellness visits.

Speaker Change: We had an incredibly busy time at the Fuji Booth and had been excited not only to see the response to the test, but also to hear about the exciting marketing plans Fuji has in place to drive the adoption of new Q.

Speaker Change: Heather also had the privilege of presenting a poster about the new convert cancer tests at the Congress.

Speaker Change: It's been a busy few days and we look forward to working alongside Fuji film Vet systems as they rollout our test countrywide.

Salvatore Thomas Butera: As a reminder, our test is a simple, affordable, easy-to-use blood screening test that can be easily integrated into preventive care programs and used alongside other routine blood work during regular wellness visits. We had an incredibly busy time at the Fuji booth and were excited not only to see the response to the test but also to hear about the exciting marketing plans Fuji has in place to drive the adoption of new Q. Heather also had the privilege of presenting a poster about the new QVET cancer test at the Congress. It's been a busy few days, and we look forward to working alongside Fujifilm VetSystems as they roll out our tests countrywide across their extensive diagnostic laboratory network. We are also incredibly excited that the new QVET cancer test will soon be available as an in-house diagnostic via HESQA and Antec.

Speaker Change: Their extensive diagnostic laboratory network.

Speaker Change: We are also incredibly excited that the new convert cancer test will soon be available as an in house diagnostic via Heska and and Tech company.

Speaker Change: We understand preorders are currently being processed and the test will be rolled out fully at their upcoming national sales meeting at the end of this month.

Speaker Change: Soon veterinarians will have accurate in hospital fast test results in under eight minutes. So that they can discuss findings with pet owners and hopefully develop an action plan before the patient even those homes.

Speaker Change: ANTEC is initially pricing the test at $35 to the veterinarian and we really believe that the relatively low cost combined with the effectiveness of our test will help drive adoption of the test now known as a screening tests, but also in time as an important monitoring tool.

Salvatore Thomas Butera: We understand pre-orders are currently being processed, and the tests will be rolled out fully at their upcoming national sales meeting at the end of this month. Soon, veterinarians will have accurate, in-hospital, fast test results in under eight minutes so that they can discuss findings with pet owners and hopefully develop an action plan before the patient even goes home. Antec is initially pricing the test at $35 for the veterinarian.

Speaker Change: For disease progression and remission.

Speaker Change: So to quote Cameron very exciting times indeed.

Speaker Change: That's a quick update for me given a package ended today I will now with absolute great pleasure handover to our incoming Chief Medical Officer, Dr. Andrew Rhetor Andy.

Speaker Change: Andy is a Fabulous addition to our leadership team Andy over to you for an update on <unk>.

Speaker Change: Thank you very much for today's kind words, Tom and good morning, everybody just like to take a moment to start by thanking Cameron Jake and the board of directors. So bear with me and inviting these joined deflation team at such an important time.

Salvatore Thomas Butera: And we really believe that the relatively low cost combined with the effectiveness of our test will help drive adoption of the test, not only as a screening test but also, in time, as an important monitoring tool for Disease Progression and Remission. So, to quote Cameron, very exciting times indeed. That's a quick update for me, given our packed agenda today. I will now, with absolute pleasure, hand over to our incoming Chief Medical Officer, Dr. Andrew Retter. Andy is a fabulous addition to our leadership team.

Andy: I've really enjoyed working with that issue for a lot of T. A.

Andy: We are excited about leaning in pes and contributing to delivering our mission and purpose in the east come you really hope to have an impact to improve the lives and close the lives of millions of people worldwide I'd like to update you. This morning on some of the significant progress we've made penuche nets and on me breakthrough cancer detection method, which we.

Andy: Now call capture P C L.

Andrew Retter: Andy, over to you for an update on NUQNET. Thank you very much for those kind words, Tom, and good morning, everybody. I'd just like to take a moment to start by thanking Cameron, Jake, and the Board of Directors for working with me and inviting me to join the Volition team at such an important time. I've really enjoyed working with Volition for the last two years, and I'm really excited about leaning into and contributing to the delivery of our mission and purpose in the years to come. We really hope to have an impact and improve the lives and quality of lives of millions of people worldwide. I'd like to update you this morning on some of the significant progress we've made with NukiNets and our new breakthrough cancer detection method, which we now call CapturePCR.

Andy: So first start uniqueness and sepsis.

Andy: Sepsis as you've heard me say before he's one of the leading of causes of death worldwide with over 50 million cases annually and around 11 million deaths.

Andy: Fish has made significant progress trying to address these issues in 2023 and I'd just like to recap a few highlights.

Andy: Timber fallacious hosted a key opinion leader round table of antenna can squeeze.

Andy: Workshop held over the course of two days focused exclusively on sepsis and the potential role of Nietzsche nets is attended by some of the world's leading experts many of the attendees are operating under the umbrella of our center of Excellence program. He knows firsthand experience using assay now in the sense from the Greek visit E C. Net.

Andy: Potentially represents one of the biggest breakthroughs in the diagnosis and monitoring of sepsis in the last 30 years.

Andrew Retter: So first, starting with Niki Netz and Sepsis. Sepsis, as you've heard me say before, is one of the leading causes of death worldwide, with almost 50 million cases annually and around 11 million deaths. VolitionRX has made significant progress trying to address these issues in 2023, and I'd just like to recap a few highlights. In September, VolitionRX hosted a Key Opinion Leader Roundtable event in Athens,

Andy: We're moving forward with this week and are now a human review article with the intention to submitted for peer reviewed publication in a journal towards the end of the year.

Andy: Continuing in the famous publications shortly after a key opinion leader event and subsequent core trend in October the first clinical paper from our clinical Excellence group was published.

Andy: The gain in Monterrey team in Lisle published data demonstrating the correlation of sneaky net level set.

Andrew Retter: The workshop, held over the course of two days, focused exclusively on sepsis and the potential role of NUQNets, is attended by some of the world's leading experts. Many of the attendees are operating under the umbrella of our Center of Excellence program with NUQNets and have first-hand experience using AssayNow. And the sense from the group was that NUQNets potentially represents one of the biggest breakthroughs in the diagnosis and monitoring of sepsis in the last 30 years. We're moving forward with this group, and I'm now working on a review article with the intention to submit it for peer review and publication in a journal towards the end of the year. Continuing in the theme of publications, shortly after our Kinney Opinion Leader event and subsequent quarter-end in October, the first clinical paper from our Clinical Excellence Group was published. Professor Guylain-Monterey's team in Lyon published data demonstrating the correlation between the nucleonates level and sepsis. There is a clear mortality signal. What does that mean?

Andy: Sepsis.

Andy: As a cable ties he signal what does that mean, the heart patients Nietzsche next level. Unfortunately, that's the more likely they are to die.

Andy: We've also seen a little cheat new fashion Nietzsche net level tracks very well with the severity of a patient's homeless.

Andy: We've been using something called safest cool sequential organ failure assessment school.

Andy: Calibrating check he Cunette Nichols.

His brilliant that we've got the first paper out and I'm really looking forward to it.

Andy: Publishing and sharing with you more data from our centers of excellence as we go through 2024 and 2025 over in the U S and Peace report that volition completes the key sub process with the U S food and drug administration.

The FDA has confirmed that we can continue to fly our traditional five 10-K pathway I'm also delighted to confirm that my own house through guidance in Thomas's has started teasing Newquay next in our first study.

Andrew Retter: The higher a patient's NICU NETs level, unfortunately, the more likely they are to die. We've also seen in a longitudinal fashion that the UQ NEP level tracks very well with the severity of a patient's Hill NEP. We've been using something called the SOFA score, the Sequential Organ Failure Assessment score, to calibrate and check EQ net levels. It's brilliant that we've got the first paper out, and I'm really looking forward to publishing and sharing with you more data from our centers of excellence as we go through 2024 and 2025. Over in the US, I'm pleased to report that Volition has completed the Q-sub process for the US Food and Drug Administration. The FDA has confirmed that we can continue to follow a traditional 510k pathway. I'm also delighted to confirm that my own hospital, Guy's and St Thomas', has started using new Q-nets in our first study. On a similar theme, we're trying to identify and track patients and monitor the severity of sepsis. This is a large study.

Andy: In a similar theme, we are trying to identify and track patients amongst the severity of sepsis.

Andy: It's a large study with Amy turmoil around 500 patients and <unk> patients with sepsis to healthy patients undergoing cardiac surgery.

Andy: It gives us really good data to try and split the patient support and understand differences between them for those that might have missed the recent edison weapon on sepsis or indeed, that's thematic report I want to highlight a couple of ongoing studies, which we hope will continue to reinforce and strengthen our clinical U K, we have ongoing analysis of two <unk>.

Andy: Large retrospective sepsis cohorts in Europe. The first is with the German Sepsis Creek and the second is that the team at U N C. Amsterdam in total these studies will examine the outcome and trajectory if every two and half thousand patients with sepsis they involve the processing.

8000, Teu Kinect samples.

Andy: Unbelievably rich data source for us we're really excited about this data, but really excited about presenting it and submitting an application by the end of 2024.

Andy: These studies will be a rich source of insight the easing Ethernet when a really large scale should.

Andrew Retter: We're aiming to enrol around 500 patients and compare patients with sepsis to healthy patients undergoing cardiac surgery. This should give us really good data to try and split the patients apart and understand differences between them. For those that might have missed the recent Edison webinar on sepsis, or indeed their thematic report, I wanted to highlight a couple of ongoing studies which we hope will continue to reinforce and strengthen our clinical utility case. We are currently analyzing two large retrospective sepsis cohorts in Europe.

Andy: Should enable us to sharpen and improve it as we move forward, Tim again, bringing into the clinical arena.

Andy: Our project with key opinion leader Professor T. Chilean on in France is progressing really well to Charlie's involved in a consortium project with an ongoing practice perspective study of which physician is a member.

Andy: Ken this loot cheating in nature and large scale is aiming to create 500 patients with.

Andy: We've also extended our study with dual credit in the U S. We.

Andy: We have refocused the study to concentrate on the sickest patients admitted to the emergency room, rather than simply including intensive care patients.

Andrew Retter: The first is with the German Sepsis Group, and the second is with the team at UNC Amsterdam. In total, these studies will examine the outcome and trajectory of over 2,500 patients with sepsis. They involve the processing of over 8,000 nucleonet samples. It's an unbelievably rich data source for us, and we're really excited about this data. We're really excited about presenting it and submitting it for publication by the end of 2024. These studies will be a rich source of insight.

Andy: This is expanding the population of patients in which we're using new key and that's really exciting we hope to close out the study by the end of the second quarter and we'll share those results as soon as we can.

Andy: We are confident that we would have significantly strengthened our data within the confidential atrium support ongoing commercial discussions by the middle of the year.

Andy: From a publication perspective, all eyes, and our focus will be on the European Society of intensive care meeting.

Andy: Labour later this year, we anticipate a number of the studies I've just mentioned, we'll report a S RCM.

Andy: Really proud to be sponsoring our first satellite symposium session of Congress will details willfully, but it's going to be a really busy year ahead for Nietzsche nets in sepsis I'd now like to take just a few minutes to discuss volitions potentially breakthrough cancer detection method, which we first presented at the European.

Andrew Retter: They're using NICU nets on a really large scale and should enable us to sharpen and improve it as we move forward to, again, bringing it into the clinical arena. Our project with Key Opinion Leader Professor Dajali Anand in France is progressing really well. She is involved in a consortium project with an ongoing prospective study of which Volition is a member.

Andy: Alrighty of medical oncology Congress in 2023.

Andy: Cancer as we all know effects of life of millions around the world each here.

Andrew Retter: Again, it's longitudinal in nature and large scale and is aiming to recruit 1,500 patients. We've also extended our study with Docro in the US. We have refocused this study to concentrate on the sickest patients admitted from the emergency room, rather than simply including intensive care patients.

Unfortunately, the number of new cases of cancer diagnoses TCA is continuing to grow like many diseases early diagnosis when the cancer is smaller and has it spread.

Andy: These T a better outcome for patients that's less surgery, and chemotherapy and 50 attain improved outcomes.

Andrew Retter: This is expanding the population of patients in which we're using NUQ, and that's really exciting. We hope to close out the study by the end of the second quarter, and we'll share the results as soon as we can. We're confident that we will have significantly strengthened our data within the confidential data room to support ongoing commercial discussions by the middle of the year. From a publication perspective, all eyes and our focus will be on the European Society of Intensive Care meeting in October later this year.

Andy: Sadly cancer is often a silent disease phase.

Asymptomatic and people don't realize they have it until really quite late.

Andy: In the U K as it were a perfect example of that that around 45% and cancers are diagnosed at the latest status stage III and stage four.

Andy: Our test focuses around detecting circulating tumor DNA.

Andy: C T DNA detecting C. T DNA is really difficult because the levels of DNA in blood are relatively low.

Andrew Retter: We anticipate a number of the studies I've just mentioned will report to ESRCM. We're also really proud to be sponsoring our first satellite symposium session at the Congress. More details will follow, but it's going to be a really busy year ahead for NICU Nets and Sepsis. I'd now like to take just a few more minutes to discuss Volition's potentially breakthrough cancer detection method, which we first presented at the European Society of Medical Oncology Congress in 2023. Cancer, as we all know, affects the lives of millions around the world each year. Unfortunately, the number of new cases of cancer diagnosed each year is continuing to grow. Like many diseases, early diagnosis, when the cancer is smaller and hasn't spread, leads to a better outcome for patients. That means less surgery, less chemotherapy, and just leads to better and improved outcomes. Sadly, cancer is often a silent disease. It's asymptomatic, and people don't realize they have it until it's really quite late.

Andy: And sat Kt tumor DNA compromises only about 0.0% to 1% of the circulating cell free DNA.

Andy: The challenge is compounded as most of the <unk> DNA.

Andy: Almost identical or is indeed exact kiss a nodal DNA volition.

Andy: Relation has developed a novel method of liquid biopsy involving the first reported physical isolation of Chile derived DNA fragments from blood.

Andy: The cancer derived circulating tumor DNA fragments are then extracted after removal of all normal background DNA.

Andy: And then they are sequenced he's in a low cost PCR test, calling this technique capture PCL.

Felicia as proof of concept data was presented as May 2023 demonstrates the escalation of tumor derived Cte DNA fragments from plasma.

Andy: Felicia tested the new method and a slow clinical experiment and detected a range of liquid and solid organ cancers, including early stage disease stage one disease.

Andy: These early assays were developed from our initial leukemia model, but to our surprise. The Osage. We were also able to detect many other cancers.

Andrew Retter: In the UK, we're a perfect example of that, where around 45% of cancers are diagnosed at the later stages, stage 3 and stage 4. Detecting CtDNA is really difficult because the levels of DNA in blood are relatively low, and circulating tumor DNA compromises only about 0.01% of the circulating cell-free DNA.

Andy: In particular, we were able to take colorectal cancer.

Really excited about the potential to capture PCL going forward.

Andy: My colleague Dr. Jane Mcauliffe and team have presented a number of country specific conferences, such as prostate cancer and liver cancer conferences.

Andy: I have been sharing their data with important key opinion leaders and we feel safe really valuable feedback and positive feedback as we go forward. The team has also continued to identify other potential market and other potential targets associated with the PCR test and we very much said fluids sharing this data.

Andrew Retter: Well, the challenge is compounded, as most of the cancer DNA looks almost identical, or is indeed exactly the same as normal DNA. Volition has developed a novel method of liquid biopsy involving the first reported physical isolation of tumor-derived DNA fragments from blood. The tumor-derived circulating DNA fragments are then extracted after removal of all normal background DNA, and then they are sequenced using a low-cost PCR test.

Andy: Take care and solid organ cancers throughout this year and beyond.

Andy: Last but by sending them at least take us working hard on completing the manuscript to submit this breakthrough method for peer reviewed publication.

Andy: Is going to be an incredibly important paper and is intrinsically aligned with <unk> core ethos and purpose of bringing a low cost diagnostic test to millions of people around the world on.

Andy: I understand to be there'll be ongoing commercial discussions hobby.

Andrew Retter: We're calling this technique Capture PCR. Volition's proof-of-concept data was presented at ESMO 2023, demonstrating the isolation of tumor-derived ctDNA fragments from plasma. Volition tested the new method in a small clinical experiment and detected a range of liquid and solid organ cancers, including early stage disease, stage 1 disease. These early assays were developed from our initial leukemia model, but to our surprise, we were also able to detect many other cancers. In particular, we were able to take colorectal cancer. We're really excited about the potential for capture PCR going forward. My colleague Dr. Jake Micallef and his team have presented at a number of cancer-specific conferences, such as the Prostate Cancer and Liver Cancer conferences. They have been sharing their data with important key opinion leaders, and we've received really valuable feedback and positive feedback as we go forward.

Andy: Enjoined took place.

Andy: I can hand back over to Cameron.

Cameron Reynolds: Like say commitment on hybrids come across to me talking here to express how personally excited I am to be joining the company I really believe inflations ethos and purpose.

Cameron Reynolds: 90 back to Cameron Phase closing remarks. Thank you. So much thanks, very much Andy providing those inside and thanks as always to Gerry and Tom for their reports.

Cameron Reynolds: It is a real sign that the varied expertise, we now have a abolition.

Cameron Reynolds: 2023 was certainly transformational volition at a year, we can look back on with pride.

Cameron Reynolds: The commercialization of our transformational Newquay bet cancer tests within the companion animal health care sector has led to agreements with several new global and regional partners, including last week with Fuji film bed systems, Japan's leading veterinary diagnostic service provider.

Cameron Reynolds: Looking just around the corner the NICU that cancer test will soon be available as an in house diagnostic tests through Heska and and Tech company with.

Cameron Reynolds: We strongly suspect we will see very good revenue growth from EQ bet through 2024 and beyond.

I'm also absolutely delighted and the progress made in our new units pillar and in particular in determining our regulatory pathway board with U S. F D. A.

Andrew Retter: The team has also continued to identify other potential markers and other potential targets associated with the PCR tests, and we very much look forward to sharing this data, in particular in solid organ cancers, throughout this year and beyond. Last but by certainly no means least, Jake is working hard on completing the manuscript to submit this breakthrough method for peer review and publication. This is going to be an incredibly important paper and is intrinsically aligned with Volition's core ethos and purpose of bringing a low-cost diagnostic test to millions of people around the world.

Cameron Reynolds: <unk> for the company and in having a number of large scale clinical studies for publication later this year.

Cameron Reynolds: Thirdly, and as we always seem to run low on time.

Cameron Reynolds: Too much but I would like to quickly mentioned Meek, you discover which recorded revenue of $300000 in 2023, and now has a pipeline of projects valued at over $1 million.

Cameron Reynolds: As a reminder, you can discover is a complete solution to profiling nucleus items.

Cameron Reynolds: Developers and scientists can work with us access a state of the art proprietary assays and realize the long term drug development needs.

Cameron Reynolds: In this way you discover is able to unlock value from Volitions IP portfolio by helping us commercialize the areas, we are not going to focus on ourselves.

Andrew Retter: Understandably, there will be ongoing commercial discussions throughout the year. In drawing to a close, and so I can hand back over to Cameron, I'd just like to take a moment, and I hope it's come across for me talking here, to express how personally excited I am to be joining the company. I really believe in Volition's ethos and purpose, and I'll hand you back to Cameron for his closing remarks. Thank you ever so much.

Cameron Reynolds: As I mentioned revenue in 2020 three was $300000 and we expect it to do more than doubled in 'twenty very full and be as profitable as early as 2025.

Cameron Reynolds: And finally I'm, absolutely also delighted with our potential breakthrough <unk> cancer detection method capture PCR, which we had a poster in the fourth quarter at ESMO.

Cameron Reynolds: We believe this is a true breakthrough moment, the first reported physical isolation of a class of tumor derived cell free DNA fragments from blood.

Cameron Reynolds: Thanks very much, Andy, for providing those insights. And thanks, as always, to Terig and Tom for their reports. It is a real sign of the varied expertise we now have at Volition. 2023 was certainly transformational for Volition and a year we can look back on with pride. The commercialization of our transformational NUQ VET cancer test within the companion animal health care sector has led to agreements with several new global and regional partners, including last week with Fujifilm VET Systems, Japan's leading veterinary diagnostic service provider. And looking just around the corner, the NUQ VET cancer test will soon be available as an in-house diagnostic test through Hesca, an Antec company.

Cameron Reynolds: We expect that this method, albeit expensive and time consuming DNA sequencing and bioinformatics, allowing for a rapid and cost effective detection in a routine blood test.

Cameron Reynolds: This method could become a must have technology given its significance. We are very much open to licensing this technology.

Cameron Reynolds: We have been tremendously encouraged by the level of interest thus far it has been and will continue to be a busy few months ahead of discussions and negotiations not only now on capture piece, yeah, but as we build out the data room or new units through the second quarter of this year, we anticipate more active discussions.

Cameron Reynolds: On that front as well.

Cameron Reynolds: It is an exciting time for us as a company and we look forward to sharing further updates and milestones with you over the coming quarters as we continue to adapt to changing times and conditions deliver on what we believe to be revolutionary technologies.

Cameron Reynolds: We strongly suspect we will see very good revenue growth from NUQ VET through 2024 and beyond. I am also absolutely delighted in the progress made in our new QNets pillar, and in particular in determining our regulatory pathway forward with the USFDA, a key milestone for the company, and in having a number of large-scale clinical studies due for publication later this year. Thirdly, and as we always seem to run low on time, I won't cover too much, but I'd like to quickly mention UQ Discover, which recorded revenue of $300,000 in 2023 and now has a pipeline of projects valued at over $1 million. As a reminder, UQ-Discover is a complete solution for profiling nucleosomes.

Cameron Reynolds: Given the current macroeconomic conditions, we are focusing on getting each pillar to support itself either through product revenues milestone payments out licensing or other non dilutive funding in the coming year. We are making every attempt to ensure as little dilution as possible to reach breakeven as a company with the <unk>.

Cameron Reynolds: Mix of non dilutive funding revenue and milestone payments from out licensing as we have achieved in bet. As we've described before we are currently targeting the following.

Cameron Reynolds: Firstly, we expect nuclear event to be overall cash positive from existing milestone payments and the expected revenue ramp as more partners launch and existing partners expand into new territories. We're also working on a range of new products to drive revenue growth and hopefully new out licensing and milestone payments in future years from Beth.

Cameron Reynolds: Secondly, we expect new could discover to more than double revenue in 2024 and to become profitable as a unit starting in 2025 with over $1 million in the current pipeline and growing strongly.

Cameron Reynolds: Drug developers and scientists can work with us, access our state-of-the-art proprietary assays, and realize their long-term drug development needs. In this way, NewQueue Discover is able to unlock value from Volition's IP portfolio by helping us commercialize the areas we are not going to focus on ourselves. As I mentioned, revenue in 2023 was $300,000, and we expect it to more than double in 2024 and be as profitable as early as 2025. And finally, I'm also delighted with our potential breakthrough CTCF cancer detection method, Capture PCR, which we had a poster about in the fourth quarter at ESMO. We believe this is a true breakthrough moment, the first reported physical isolation of a class of tumor-derived cell-free DNA fragments from blood.

Cameron Reynolds: Thirdly, we have begun the strategy to fund as Terry alluded to earlier, our NICU nets pillar through non dilutive and oil project funding with an aim of $25 million, we have targeted a range of governmental agencies and are also preparing the background work aimed at attracting a large player.

Cameron Reynolds: Out license or invest in this product directly.

We have made strong progress through the first quarter of 2024 in getting the Doctor acquired and our aim is to get the first payments in the next 12 months for me the corporate or governmental sources.

Cameron Reynolds: Lastly, as discussed by Joe Porter, our Chief commercialization officer in a recent webinar there has been a lot of external interest in our <unk> and Youku Tencent technologies.

Cameron Reynolds: Our strategy is to license this out should one or more large companies as a commercial undertaking of this size is likely beyond our current capabilities.

Cameron Reynolds: We expect that this method obviates expensive and time-consuming DNA sequencing and bioinformatics, allowing for rapid, cost-effective detection in a routine blood test. This method could become a must-have technology. Given its significance, we are very much open to licensing this technology. We have been tremendously encouraged by the level of interest thus far. It has been, and will continue to be, a busy few months ahead of discussions and negotiations, not only on CAPTURe PCR, but as we build out the data room for NUQNets through the second quarter of this year, we anticipate more active discussions on that front as well. It is an exciting time for us as a company, and we look forward to sharing further updates and milestones with you over the coming quarters as we continue to adapt to changing times and conditions to deliver on what we believe to be revolutionary technologies.

Cameron Reynolds: If successful we believe this strategy could provide us with ongoing royalties and very meaningful milestone payments in the next 12 months.

Cameron Reynolds: And drawing to a close I would like to thank you all for joining the call today, we very much appreciate it given how much there is to digest across all of our pillars.

Speaker Change: We are now happy to answer your questions.

Speaker Change: Operator.

Operator: Thank you.

Speaker Change: Good question. Please press star one on your telephone keypad confirmation tone will indicate your line is in the question queue you.

You May press Star two.

Speaker Change: From the Q and for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker Change: Our first question is from Tim Moore with ESI and please proceed.

Speaker Change: Yes.

Oh, Thank you and that was very informative prepared remarks and.

Timothy M. Moore: It was nice to hear that Theres, a lot of different levers being pulled in good optionality.

Cameron Reynolds: Given the current macroeconomic conditions, we are focusing on getting each pillar to support itself, either through product revenues, milestone payments, outlicensing, or other non-dilutive funding in the coming year. We are making every attempt to ensure as little dilution as possible to reach break-even as a company, with a mix of non-dilutive funding, revenue, and milestone payments from outlicensing, as we have achieved in VET.

Timothy M. Moore: Thank you.

Timothy M. Moore: Sure maybe I wanted to start out with IDEXX you know you mentioned.

Speaker Change: There were revenues it sounds like the end of the year that start to come through and I'm just kind of wondering if you can talk a little bit about you know it seems like have they financed finished kind of getting their standard operating procedures and best practices in place for the marketing launch and if you can remind me is it something like $10 per kit, you're getting on those because you were assembling the whole kit and shipping them.

Cameron Reynolds: As we've described before, we are currently targeting the following. Firstly, we expect NUQVET to be overall cash positive from existing milestone payments and the expected revenue ramp as more partners launch and existing partners expand into new territories. We're also working on a range of new products to drive revenue growth and hopefully new outlicensing and milestone payments in future years from VET. Secondly, we expect NUQ Discover to more than double revenue in 2024 and to become profitable as a unit starting in 2025 with over $1 million in the current pipeline and growing strongly. Thirdly, we have begun a strategy to fund, as Terig alluded to earlier, our NUQ Nets pillar through non-dilutive and or project funding with an aim of $25 million.

Speaker Change: Yeah.

Speaker Change: Yes, yes it is.

Speaker Change: That's correct.

Speaker Change: <unk> been great partners for last year, and a half and.

Speaker Change: I think that product, we're putting a lot of working to really.

Speaker Change: I'm trying to get this out was growing so I think it's a I think there's absolutely a huge need for the tests are worldwide and.

Speaker Change: Certainly to get to where we need to get through this had to be some education of the customers. It's a completely disruptive technology. So when it comes into the market. So obviously a whole new thing for for the vets as well as for the company and so we've been working closely with them.

To really.

Speaker Change: Get sales moving.

Speaker Change: Yes.

Speaker Change: It was mentioned several times over 58000 tests.

Speaker Change: This last year, so we sold the components for so.

Speaker Change: It's getting adoption.

Speaker Change: And obviously, it's a very disruptive test and I think also.

Speaker Change: When the new platform comes through which is actually cutting down on the first.

Speaker Change: Next next next month.

Speaker Change: It available in the lab as well as the point of care I think we'll be absolutely huge to get eaten.

Cameron Reynolds: We have targeted a range of governmental agencies and are also preparing the background work aimed at attracting a large player to either out-license or invest in this product directly. We have made strong progress through the first quarter of 2024 in getting the data required, and our aim is to get the first payments in the next 12 months from either corporate or governmental sources.

Speaker Change: Adoption out there I think the more groups out there selling it whether that's high tech or high school Fuji.

Speaker Change: It really helps to generate awareness and education and getting vets used to with disruptive new technology as we discussed there's been nothing available in.

Speaker Change: In the cancer space before so yeah and then.

Speaker Change: The task is correct.

Speaker Change: Great well, thanks for that really good Japan Fuji film that systems update that was it was terrific news and actually had a question about feline tests.

Cameron Reynolds: Lastly, as discussed by Gael Forterre, our Chief Commercialization Officer, in our recent webinar, there has been a lot of external interest in our CTCF and UQ cancer technologies. Our strategy is to license these out to one or more large companies as a commercial undertaking of this size is likely beyond our current capabilities. If successful, we believe this strategy could provide us with ongoing royalties and very meaningful milestone payments in the next 12 months. In drawing to a close, I would like to thank you all for joining the call today.

Speaker Change: Do you think that's still maybe on track to launch you know maybe late late this year and.

Speaker Change: When would you think he would receive the $5 million milestone payment timing.

Speaker Change: Yeah. Good question, the first point Fuji.

Speaker Change: I have done a huge amount of work before the launch.

Speaker Change: Very organised the biggest company in Japan the 60000.

Speaker Change: 12000 fit hospitals I didn't realize it was that big of a market.

Speaker Change: A large country and I haven't quite a rich country. So as.

As you probably heard from Tom and the team and enthusiasm from the fed commentary has been.

Speaker Change: A very large so it's extremely good too Keith.

Unknown Executive: We very much appreciate it, given how much there is to digest across all of our pillars. We are now happy to answer questions. Operator

So you do have some coming through.

Speaker Change: New market.

Keith: Yes, so the feline side, we've been doing some work on that.

Keith: With a range of other products.

Keith: We're going to launch in the vet space.

Unknown Executive: Thank you. If you would like to ask a question, press star one on your telephone keypad. A confirmation tone will indicate your line is in the question; press star 2 to remove your question.

Keith: We're looking to get it.

Keith: <unk> got 50, it so it's certainly possible this year in the first half of next year that that payment will be made.

Timothy M. Moore: Our first question is from Tim Moore with EFI. Oh, thank you. And that was very informative, prepared remarks. It was nice to hear that there are a lot of different levers being pulled and good optionality. Sure, maybe I just want to start out with IDEX, you know.

Keith: We talked about it I know overall part of our strategy is to get as much funding as we can from non dilutive and milestones and that would be the loss of the payments due to us from the 23 million. We've got so far plus these five so yes, it's definitely still in process and it's a reasonable thing to still have already on the books.

Speaker Change: Great Great. My last set of questions is tied to sepsis I mean, such a.

Timothy M. Moore: There were revenues, it sounds like, at the end of the year that started to come through. You know, I'm just kind of wondering if you could talk a little bit about, you know, it seems like, have they finally finished kind of getting their standard operating procedures and best practices in place for the marketing launch? And if you can remind me, you know, is it something like $10 per kit you're getting on those because you're assembling the full kit and shipping them?

Speaker Change: He was a catalyst gigantic market number one killer in the hospitals that you have talked before about the traditional is a five 10-K regulatory pathway and if you can remind me youre trying to demonstrate substantially equivalent performance and characteristics of the device already of the FDA cleared the U S right.

Speaker Change: You kind of walk us through that and you know I know, it's theoretical but you know what is the timeline again I get a lot of questions from investors about.

Cameron Reynolds: Yes, yes, it is, that's correct. So yeah, IDEX has been great partners for the last year and a half, and I think they're putting a lot of work in to really try to get the sales growing. So I think there's an absolutely huge need for the test worldwide, and certainly to get to where we need to get to, there's had to be some education of the customers. It's completely disruptive technology.

Speaker Change: When do you think you know if it does work out and you get approved what do you think you could maybe start achieving revenues on the subsea side.

Speaker Change: Yeah very good question. So obviously, its a product which is showing tremendous promise as you said and the two things we've proven so far.

Cameron Reynolds: So when it comes to the market, it's obviously a whole new thing for the vets as well as for the company. And so we've been working closely with them to really get sales moving, and I think, as I mentioned several times, there were 58,000 tests sold last year that we sold the components for. So it's getting adoption, and obviously it's a very disruptive test, and I think also when the new platform comes through, which is actually starting on the 1st of next month, having it available in the lab, as well as at the point of care, will I think the more groups out there selling it, whether that's IDEX, or HESCA, or Fuji, it really helps to generate awareness and education and get vets used to a disruptive new technology. As we discussed, there's been nothing available in the cancer space before, so yeah, and $10 a test is correct. Great Well, thanks for that really good Japan and Fujifilm vet systems update. That was terrific news! And I actually had a question about feline tests.

Speaker Change: Applications of Shine.

Speaker Change: Closely correlated with intensive care mortality and Hydro school, which is obviously part of it gets incredibly important.

Speaker Change: As we talked about.

Sorry, I'm going to.

Speaker Change: There's a range of studies, we're doing now which will put a mountain of data and avalanche of data coming out in <unk>.

Speaker Change: And thousands of patients in the tens of thousands of samples.

Speaker Change: Beginning this month and all the way through the rest of the year.

Speaker Change: Presenting there kind of in June.

Speaker Change: They're looking to show a correlation with the sepsis three school, which shot sepsis is now defined as a dis regulated immune response, which is exactly what we measure so it's actually obviously incredibly useful.

Speaker Change: The severity correlation with 28 day mortality.

Speaker Change: The duration of organ support and length of stay in hospital. So all of those are incredibly important to the clinician, which I think is why handy and I don't really have the questions. We've been working with us so so keen on them.

Speaker Change: With regards to the exact a five 10-K pop probably best to get it from Andy was the key person knows Charles and I Wonder if I'm, making.

Speaker Change: If I can stay on that there are quite a few private cuts that protocols, which measure we measure, but there are products, which have.

Speaker Change: Yes, I believe that's why.

Speaker Change: We were very Lucky if you get the five 10-K path and I'm sure. He can outline I think he might be available and some lighter coals that you go through.

Speaker Change: The product gets discussed.

Speaker Change: Something we're incredibly excited about and I think it's.

Cameron Reynolds: I think that's still maybe on track to launch, you know, maybe late this year. And when would you think you would receive the $5 million milestone? Yeah, good question. And the first point: Fuji has done a huge amount of work before the launch. They're very organized.

Speaker Change: If it continues to go well and every bit of data we've seen so far has been outstanding.

Speaker Change: And because the test is a low cost can be run on any platform can be a bedside test can be lab tests. It can be a lateral flow tests.

Speaker Change: And doing it through a five 10-K, which is as you know what I'm, saying the easier.

After the F D a.

Speaker Change: It's very important now as the <unk>.

Speaker Change: Timing.

Cameron Reynolds: They're the biggest vet company in Japan. There are 60,000 vets in Japan and 12,000 vet hospitals. I didn't realize it was that big a market. It's obviously a large country and quite a rich country.

Speaker Change: Obviously, we're doing everything we can to preserve cash so we're working with large government licensees to see if they can take a large part of the funding in the U S as well as Europe. We're also getting the data room ready so that we can.

Speaker Change: Get industry partners involved so that's it that's coming to a head in June when we opened up a data room.

Cameron Reynolds: So, as you probably heard from Tom and the team, the enthusiasm from the vet conference there has been very high. So, it's extremely good to hear that enthusiasm coming through and have a good new market. Yes, so on the Feline side, we've been doing some work with a range of other products looking to launch in the vet space. We're looking to get it working in CATS this year, so it's certainly possible this year or in the first half of next year that that payment will be made.

Look to get as much funding as possible from.

For obvious reasons the markets.

Speaker Change: It is what it is at the moment. So we're doing everything we can not to not to spend money and after that.

Speaker Change: It would be at least a couple of years, but don't forget our model has always been to make as much money as we can from.

Speaker Change: From licensing in upfront and milestone payments.

Speaker Change: And the last two years, we've got 23 million just from a healthcare loan, which is obviously very very meaningful and what we do.

Speaker Change: So I wouldn't just think of it as revenue, which is obviously a few years away but as.

Cameron Reynolds: As we talked about, an overall part of our strategy is to get as much funding as we can from non-dilutive and milestones, and that would be the last of the payments due to us from HEFCA, the $23 million we've got so far, plus this five. So yeah, it's definitely still in the process, and it's a reasonable thing to still have on the books. Great, great. My last set of questions is tied to sepsis.

Speaker Change: As we have invest getting large chunks of money in the meantime from large industry partners and all government agencies and I think there's oh.

Speaker Change: Certainly.

Speaker Change: I think it's a very reasonable chance that we'll get some licensing or milestone revenues from either or both.

Speaker Change: Scripture factors and the sepsis side in the next 12 months and if you look at the level of payments, we've gotten the vet side. It's a very important person event, but I think the U K, there's just a whole level of importance. We came out of it so we'd be expecting some very significant payments.

Cameron Reynolds: Hugh's Catalyst, gigantic market, number one killer in hospitals. So you have talked before about the traditional 510K regulatory pathway. And if you can remind me, you're trying to demonstrate.

Speaker Change: Timescale.

Speaker Change: What exactly that is true.

Speaker Change: Does it does that's terrific color and granularity in and I have one last little related topic question, you've kind of already addressed. This you know there could be potential for project financing or it could come from the corporate rack government. Both milestones one question I get from investors a lot was no if things go well on the vet side and you know maybe that becomes.

Cameron Reynolds: [inaudible] Yeah, very good question. So, obviously, it's a product which has shown tremendous promise, as you said, and the two things we've proven so far, what publications have shown, are closely correlated with intensive care mortality and SOFA score, which is obviously both of which are incredibly important. As we talked about, sorry, I've got a cold. There's a range of studies we're doing now, which will put a mountain of data, an avalanche of data coming out in thousands and thousands of patients and tens of thousands of samples beginning this month and all the way through the rest of the year, with a big crescendo kind of in June. They're looking to show correlation with the sepsis 3 score, which sepsis is now defined as a dysregulated immune response, which is exactly what we measure, so it's actually obviously incredibly useful. Disease severity, correlation with 28-day mortality, the duration of organ support, and the length of stay in hospital.

Speaker Change: Positive free cash flow and self funding two years from now you know hopefully.

Would you consider divesting the verso side or spinning it out to maybe cash flow find that the.

Speaker Change: Human sepsis trials.

Speaker Change: Yeah, absolutely. So obviously at the moment it is actually.

Speaker Change: From revenue, because you're saying what that is but from the milestone payments and other payments, we're getting it's actually cash flow positive at the moment from from all those other payments.

Speaker Change: 23 meals and colors, obviously, there's been a lot from from no fun.

Speaker Change: Yes, we would absolutely look to corporate ties and then.

Speaker Change: <unk> had to run as a separate entity because this is just the very first test on what should be a very long pathway of products, we can launch into that space.

You mentioned fee line as well, obviously sepsis happens in dogs and other animals and humans.

Speaker Change: And also the human transcription factor work.

Speaker Change: We have every reason to believe it would work in animals as well as humans and then all the other animals. So.

Speaker Change: I think going forward our business model, that's been very much to develop the technology and then prove it works.

Cameron Reynolds: So all of those are incredibly important to the clinician, which I think is why Andy and all the other clinicians we've been working with are so keen on them. With regard to the exact 510K path, it's probably best to get it from Andy. He was the key person in those trials, and I don't want to make a mistake about that. There are quite a few predicate products, none of which measure what we measure, but there are products which have the ability to do some of this.

Speaker Change: Launched like we have invented.

Speaker Change: We're about two in Texas, and then make revenue from licensing it out but I think the the final step on that path would be to make it to divest itself I don't think that's something which could well happen and get in the next couple of years and actually there's obviously been some interest from other groups were the only catch infections company out there at the moment, which is a product in the market.

Speaker Change: So I think it's going to be very attractive one, but we want to get that value curve kind of pushed up the curve.

Speaker Change: By proving felines angle sepsis and or transcription factors in the next 12 months. So it's probably a two year.

Cameron Reynolds: That's why we were very lucky to get the 510K path, and I'm sure he can outline it. I think he might be available on some later calls to go through the predicates as they were discussed. But no, it's something we're incredibly excited about, and I think it's, if it continues to go well, and every bit of data we've seen so far has been outstanding, and because the test is low cost, can be run on any platform, can be a bedside test, it can be a lab test, it can be a lateral flow test, and doing it through a 510K, which is, as Now as for timing... Obviously, we're doing everything we can to preserve cash, so we're working with large governmental agencies to see if they can take a large part of the funding in the US as well as Europe.

Speaker Change: Target for that.

Speaker Change: So that's terrific and thanks, so much and that's it for my questions.

Speaker Change: Thank you thanks for your time.

Freedom Broker: Our next question is from millions of calls with freedom broker. Please proceed.

Speaker Change: And good morning, and congrats on the progress in Q4.

Speaker Change: I have a question back on oncology that I'm talking about captured PCR technology, what types of cancer are currently considered as the most promising from detection. According to studies and say your expectation.

Speaker Change: That's a very good question. So transcription factors are actually indicative of all types of cancer.

Speaker Change: Because.

Speaker Change: It's an epigenetic signal, which is an all of the Kansas. So we've done some work and in a very advantage of Kansas, including lung and colorectal in the blood Kansas.

And initially we will focus on the larger Kansas the more prevalent ones.

Cameron Reynolds: We're also getting the data room ready so that we can get industry partners involved. So that's coming to a head in June when we'll start opening up the data room to look to get as much funded as possible from outside sources. For obvious reasons, the market is what it is at the moment, so we're doing everything we can not to spend money.

Particularly of course like we have in the past in lung and colorectal and blood cancers, because that's where we get the first first work, but it certainly holds the promise of it it's definitely going to be low cost very easy to run as easy to run as a COVID-19 test.

Speaker Change: In in in blood.

Speaker Change: But.

Speaker Change: Certainly a potential for every single type of cancer.

Cameron Reynolds: And after that, our product would be available for at least a couple of years. But don't forget, our model has always been to make as much money as we can from licensing and upfront and milestone payments. In the last two years, we've made $23 million just from HESCO alone, which is obviously very, very meaningful in what we do.

Speaker Change: It would probably not develop a test for every single type of cancer, you'd probably developed for the top five or seven times, which are between them account for the vast majority of cancer cases.

Yeah.

Speaker Change: Okay. Thank you that's helpful and one more from me.

Speaker Change: The test has demonstrated strong sensitivity and making me in detection.

Speaker Change: And I'm wondering has any covenant has been made in the diagnostic performance of detection of solid tumors. Since October last year, and do you see an opportunity for search in chromium.

Cameron Reynolds: So I wouldn't just think of it as revenue, which is obviously a few years away, but as, And I think there's a, certainly our aim, and I think it's a very reasonable chance, that we'll get some licensing or milestone revenues from either or both transcription factors and the sepsis side in the next 12 months. And if you look at the level of payments we've got on the VET side, it's a very important test for VET, but I think the new QNET test is a whole level of importance for humanity, so we'd be expecting some very significant payments in that sort of time scale. Does that answer your question? It does, it does! It has a terrific color and granularity.

Speaker Change: Duane in solid tumors with capture piece yeah.

Speaker Change: Yeah Yeah.

Speaker Change: Yes, we're doing a lot of work.

Speaker Change: The first thing we've been doing it's been optimizing the process to make it as quick as easy as possible and on discovery on a wide range of different targets. So, yes, we'd be making progress.

Speaker Change: I think Andy alluded to a paper that's in prices have been published.

Speaker Change: And also to make the process as quickly.

Speaker Change: The prices, we announced was a prototype we've been developing and as much as we can to make it quicker easier and cheaper I'd also want a broad range of solid tumors as well as the liquid tumor and yes, we're making very good progress and we're having to publish in the next few Oh.

Cameron Reynolds: And I have one last little related topic question. You kind of already addressed this, you know. There could be potential for project financing, you know. You can come from the corporate route, the government, both milestones. One question I get from investors a lot is, you know, as things go well on the veterinary side, and maybe that becomes positive free cash flow and self-funding two years from now, you know, hopefully, would you consider divesting the VEST side or spending it out to maybe cash flow fund the human sepsis trials? Yeah, absolutely. So, obviously, at the moment, it's actually not from revenue because you've seen what that is, but from the milestone payments and the other payments we're getting, it's actually cash flow positive at the moment from all those other payments.

Speaker Change: Cut soon in the next few months and also work heavily on out licensing.

Several times on public calls that we could get the complete breakthrough in and if we continue to show selection or concentration of Cima drive DNI.

Gonna have to be a must have for anyone in the liquid biopsy business. So we've been very pleasantly surprised with the level of excitement.

Excitement and interest from a range of different groups and those active discussions going on as well I would expect to have some news on that in the coming months and quarters as well because again, we want to license it out.

Speaker Change: And get upfront payments as well as a share of the upside going forward. So expect to keep it on all of that in the next few months and next few quarters.

Leah: Yeah and comment Mike if I can just this is then leave out and say hey, if I can just add and we've also presented a number of conferences. This year kind of a specific conference. They say we've been a prostate cancer conference live accounts are coming from and then just this last weekend.

Cameron Reynolds: $23 million obviously has been a lot from those sides. Yes, we would absolutely look to corporatise and then have a run as a separate entity because this is just the very first test on what should be a very long pathway of products we can launch in the Vetspace. We mentioned feline as well. Obviously, sepsis happens in dogs and every other animal as it does in humans.

Leah: And then kind of a common framework when it comes to specific pasted and.

Leah: With the <unk> capture PCR technology, and we thank God breast and CRC to come and in the second quarter say that has been instrumentation data presented and then we've got some.

Cameron Reynolds: And also, the human transcription factor works; we have every reason to believe it would work in animals just as well as humans and all the other animals. So, I think going forward, our business model has been very much to develop the technology and then prove it works, get a product launched like we have in Vetspace, like we're about to in Natosis, and then make revenue from licensing it out. But I think the final step on that path would be to make it to Vestas itself, and I think that's something which could well happen in the next couple of years. And actually, there's obviously been some interest from other groups. We're the only cancer detection company out there at the moment that has a product in the market. So I think it's going to be a very attractive one.

Leah: Cameron says further down the line at with the generation team.

Speaker Change: Great. Thank you so much I pass the line.

Speaker Change: Thank you have a great day.

Speaker Change: Our next question is from Bruce Jackson with the Benchmark company. Please proceed.

Bruce David Jackson: Hi, good morning, and thanks for taking my questions.

Bruce David Jackson: Hi, Bruce.

Bruce David Jackson: So my first question is for Andrew with the AR 500 patient study that you've just initiated is could that'd be ready in time for the conference in October.

Bruce David Jackson: I'm sorry, Andy is actually the right answer your question.

Bruce David Jackson: He said you can put any color.

Speaker Change: Yeah, Yeah. He's just didn't it just didn't prevent the kinect and the.

Cameron Reynolds: But we want to get that value curve kind of pushed up the curve by printing felines and or sepsis and or transcription factors in the next 12 months. So it's probably a two-year target for that. So that's terrific, and thanks so much, and that's it for my questions. Thank you. Our next question is from Ilias Zipkowski.

Andrew Retter: The full study well have been finished briefs by October of this year, but we all hate pin that we might potentially have some interim analysis, but we will have the results from several large scale.

Andrew Retter: Studies that will be presented at the El tape of confidence to say the U N C Amsterdam.

Did they all say the AD yet in fact physically today and will be presented.

Andrew Retter: Don't tell that but potentially they might just be an interim analysis that's attached to it.

Unknown Executive: procurement. Good morning and congratulations on the progress in Q4. I have a question about the oncology test.

Andrew Retter: Yeah.

Andrew Retter: One is the perspective, Bruce the retrospective ones, you MCM stem and the German study.

Ilias Zipkowski: Talking about CAPTCHA, what types of cancer are currently considered as the most promising for detection? That's a very good question. So, transcription factors are actually indicative of all types of cancer because they are, it's an epigenic signal that is in all cancers.

Andrew Retter: <unk> will be presented we believe but not the perspective that would be a bit slower of course.

Andrew Retter: Okay.

Andrew Retter: And then a question on the burn rate is going to stay where it was last year roughly how is that going to develop over the course of this year in 2025.

Andrew Retter: Sure.

Cameron Reynolds: So we've done some work in a varied range of cancers, including lung and colorectal and blood cancers, and initially, we'll focus on the larger cancers, the more prevalent ones, particularly, of course, like we have in the past in non-colorectal and blood cancers, because that's where we did the first work. But it certainly holds the promise of being low cost and very easy to run, as easy to run as a COVID test in blood. Certainly, there is potential for every single type of cancer, but you would probably not develop a test for every single type of cancer; you'd probably develop the top five or seven types, which between them account for the vast majority of cancer cases.

Andrew Retter: Yes.

Speaker Change: Good question Bruce.

Speaker Change: So.

Speaker Change: As we mentioned just now we ended the year with cash at $27 million in the bank.

Speaker Change: And we used net cash in operating activities last year at 18 $1 million.

Speaker Change:

Speaker Change: So that.

Speaker Change: That was a totally false sense for right at all.

Speaker Change: So partly offset by facilities.

Speaker Change: Licensing fees last year.

Speaker Change: And what.

Speaker Change: Well what.

Speaker Change: We can't expect to sit out cost this year will be slightly lower than they were.

Speaker Change: Yes.

Cameron Reynolds: Thank you. That's helpful. And one more from me. The comfort test has been Australia's strongest.

Speaker Change: That's partly a result of that.

Speaker Change: The.

Speaker Change: Cost saving actions that we took in the backend of last year saving.

Ilias Zipkowski: See you in the next video. And I'm wondering, has any progress been made in the diagnostic performance for the detection of salt? And do you see the opportunity? Do we need solid chambers with capture PCR?

Speaker Change: $2 million.

Speaker Change: Full year basis.

Speaker Change: And our focus this year is all of them.

Speaker Change: Hum achieving on mix licensing deals.

Cameron Reynolds: Yeah. Yes, yes. We've done a lot of work. The first thing we've been doing is optimizing the process to make it as quick and easy as possible and to discover on a wide range of different targets. So yes, we've been making progress. I think Andy alluded to a paper that's in the process of being published and also to make the process as quickly as possible; the process we announced was a prototype. We've been developing as much as we can to make it quicker, easier, and cheaper and also to treat a broad range of solid tumors as well as liquid tumors.

Speaker Change: And then space.

Cameron mentioned.

Speaker Change: Also initiated efforts with respect to seeking those that you took some day in the U S.

Speaker Change: And again as Kevin mentioned.

Speaker Change: Looking at.

Speaker Change: Getting each leg to support et cetera.

Speaker Change:

Speaker Change: What.

Speaker Change: Focusing on.

Speaker Change: Bringing in those licensing deals so that we can achieve upfront payments and milestone payments and we do expect to make a good progress on those by the end of the year.

Lou Batchelor: And yes, we're making very good progress, and we're aiming to publish in the next few, or submit it soon, in the next few months and also work heavily on outlicensing. We've discussed several times on public calls that we think it's a complete breakthrough, and if we continue to show selection or concentration of tumor-derived DNA, it's going to have to be a must-have for anyone in the liquid biopsy So we've been very pleasantly surprised with the level of excitement and the interest from a range of different groups, and those active discussions are going on as well. I would expect to have some news on that in the coming months and quarters as well, because again, we want to license it out and get upfront payments as well as a share of the upside going forward.

Speaker Change: Yeah, we'd expect that we've achieved.

Speaker Change: Well know more licensing deals by the end of the year.

Speaker Change: So yeah.

Speaker Change: I'm pretty confident at this stage.

Speaker Change: We've got available to us.

Speaker Change: With some additional merchandising to Sunday.

Speaker Change: Well at the moment.

Speaker Change: We'd be able to achieve those milestones that we've got planned for this year.

Okay great.

Speaker Change: That's it for me thank you very much.

Speaker Change: Thank you.

Speaker Change: Our next question is from Steven Ralston with Zacks. Please proceed.

Speaker Change: Yeah.

Steven Ralston: Good morning or evening.

Steven Ralston: You certainly have a lot of irons in the fire right now are more than I've seen in the past.

Steven Ralston: And despite the progress you've made.

Steven Ralston: And your R&D efforts and cancer and sepsis.

Lou Batchelor: So expect to keep an eye on all of that in the next few months and in the next few quarters. Yeah, and Cam, if I can just add, this is Lou Batchelor here, we've also presented at a number of conferences this year, cancer-specific conferences, so we've been at a prostate cancer conference, a liver cancer conference, and then just this last weekend, a lung cancer conference, with cancer-specific posters using the CTCM capture PCR technology. And we've then got BREAST and CRC to come in this second quarter.

Steven Ralston: I'm trying to get a better handle on your two developing revenue streams.

Steven Ralston: Hum.

Steven Ralston: When I look at the you know you have product categories.

Steven Ralston: Product and service.

Steven Ralston: Listed and the revenue streams are in the event in search and discovery areas.

Speaker Change: Could you delineate those a little better so I can better model the company.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes so.

Speaker Change: So.

Speaker Change: Yeah.

Speaker Change: Well.

Speaker Change: In terms of our revenue.

We.

Speaker Change: Achieved by $475000.

Ilias Zipkowski: So there has been some additional data presented, and then we've got some stuff, as Cameron says, further down the line with generation two. Great. Thank you so much. Thank you, have a great day.

Speaker Change: Revenue last year that was up 194%.

Speaker Change: But there's no revenues, but we expect it to still ramping.

Bruce David Jackson: Our next question is from Bruce Jackson with the Benchmark. Hi, good morning, and thanks for taking my questions.

Speaker Change: This year as we bring on line.

Speaker Change: Two we've distributed.

Speaker Change: So you've got tech and to keep it that was about to those.

Unknown Executive: So my first question is for Andrew. With the 500 patient study that you've just initiated, could that be ready in time for the conference in October? I'm sorry, Andy's actually not allowed to answer your question at the moment; he's in clinic. Oh, well, that's all right. No, he's just been pulled into clinic.

Speaker Change: Those.

Speaker Change: Currently pricing the testing them all together under $40.

Speaker Change: Rose.

Speaker Change: Having.

Speaker Change: Aggressive.

Speaker Change: <unk> four.

Speaker Change: Laughter.

Unknown Executive: The full study won't have been finished, Bruce, by October of this year, but we are hoping that we might potentially have some interim analysis available. But we will have the results from several large-scale studies that will be presented at the October conference. So the UMC Amsterdam study and also the German Sexist Group study will be presented in October, but potentially, there might just be an interim analysis available. His one is prospective, Bruce, so the retrospective ones, UMC Amsterdam and the German study, will be presented, we believe, but not the prospective ones; that will be a bit slower, of course. OK. Okay, and then a question on the burn rate.

Speaker Change: Launching the test so.

Looking ahead, so we'll see a decent ramp.

Speaker Change: Starting in Q2 going into the second half of the year.

Speaker Change:

Speaker Change: Yeah.

Speaker Change: So that leaves you discover.

Speaker Change: We did about $300000.

Speaker Change: Earned revenue last year.

Speaker Change: We've also got a very good pipeline building over $1 million of opportunities.

Speaker Change: That's difficult to forecast quarter to quarter, because its very lumpy in nature.

Speaker Change: Thank you.

Speaker Change: It's a.

Speaker Change: Number cortex of different sizes.

Speaker Change: And the timing it's difficult.

Bruce David Jackson: It's going to stay where it was last year, roughly. How is that going to develop over the course of this year in 2025, Darren?

Speaker Change: Difficult to estimate, but I do expect to see strong growth over the next year.

Terig Hughes: Yeah, a good question. Hi, Bruce. So, as we mentioned just now, we ended the year with cash of about $20.7 million in the bank, and we used net cash and operating activities of $18.1 million. So that was partly offset, or rather our costs were partly offset by the $13 million that we received in licensing fees last year. And what we can expect is that our costs this year will be slightly lower than they were last year. And that's partly a result of the cost-saving actions that we took at the back end of last year, and our focus this year is on achieving our next licensing deals in the human space, as Cameron mentioned. So we've also initiated efforts with respect to seeking non-diluted funding in the US. And again, as Cameron mentioned, we're looking at getting each leg to support itself.

Speaker Change: And for the year as a whole.

So yes.

I think because we can look forward to so subtle growth given the new acute discover projects does that answer your question.

Speaker Change: I think so.

Speaker Change: I think so in other words some of the discover revenue is a classic well this.

Speaker Change: Discover revenues classified both under product and service categories.

Speaker Change: That's right.

Speaker Change: It is.

Speaker Change: It's totally slight.

Speaker Change: Slightly more weighted towards the service and the product.

Speaker Change: It.

Speaker Change: Is it too early.

Speaker Change: The process to determine the relative profitability of.

Speaker Change: Between discover and that.

Speaker Change:

Speaker Change: So both of them.

Terig Hughes: What we're focusing on is bringing in those licensing deals so that we can achieve upfront payments and milestone payments. We do expect to make good progress on those by the end of the year. I would expect that we've achieved one or more licensing deals by the end of the year. And so I'm pretty confident with the resources that we've got available to us, with some additional non-dilutive funding that we're working on at the moment, that we'll be able to achieve those milestones that we've got planned for this year. Okay, great. That's it for me.

Speaker Change: Highly profitable in terms of gross margin.

Speaker Change: And that's I would say Colby.

Speaker Change: Hi.

Speaker Change: A little more highly profitable.

Speaker Change: Once we get it to scale and discover although highly profitable.

Speaker Change: The service element that and.

Speaker Change: So it makes it slightly less but still.

Speaker Change: We are very very good gross margin.

Speaker Change: Got it.

Speaker Change:

Speaker Change: Also is there a corporate model of wind to capture your deferred revenue.

Steven Ralston: Thank you very much. Thank you. Our next question is from Steven Ralston with Zach.

Speaker Change: I know, it's a it's a long tail and a very large market and it might be too early to determine that but you are generating some sales into that and therefore some.

Steven Ralston: Good morning or evening. You certainly have a lot of irons in the fire right now, more than I've seen in the past. And despite the progress you've made in your R&D efforts in cancer and sepsis, I'm trying to get a better handle on your two developing revenue streams. When I look at the, you know, you have product categories, well, product and service, listed, and the revenue streams are in the VET and DISCOVER areas. Could you delineate those a little better so I can better model the company? Yes, sure.

Speaker Change: A miniscule percentage of the deferred revenue should be coming over through the bottom line.

Speaker Change: And well be put into the topline to Kelvin.

Kelvin: Yeah, that's a that's a good point and I'm glad I'm glad you brought that up because as you know we.

Kelvin: Merci.

Speaker Change: $23 million so far.

Speaker Change: And payments related to the license agreement.

Scott: Scott No.

And that's currently classified as deferred income on the balance sheet.

Terig Hughes: So, in terms of our vet revenue, we achieved about $475,000 of revenue last year. That was up 194%. And that has not yet ramped up, but we expect it to start ramping this year as we bring online the two new distributors. So we've got Antec and Fujifilm who are both about to launch, both gradually pricing the test in the market at under $40, both having aggressive plans for. So looking ahead, I think we'll see a decent ramp starting in Q2 and going into the second half of the year. Um, So, on UQ Discover, we did about $300,000 in earned revenue last year. We've also got a very good pipeline building of over a million dollars of opportunity. That's a bit more difficult to forecast quarter-to-quarter because it's very lumpy in nature because it's a number of projects of different sizes, and the timing is from one quarter to another difficult to estimate.

Scott: And I do expect that to sell.

Scott: This year, because it's linked to when the.

Scott: Point of care or in house diagnostic test launches with Heska, which is as we said is imminent.

Scott: And so I do expect to start to see some of that earnings. This.

Scott: The ship, but it is a little tail over the lifetime.

Scott: The agreements.

Scott: She said 20 years.

Speaker Change: Thank you Jim.

Speaker Change: Just two comments I'd like to thank you for those informative webinars on cancer and sepsis I've listened to them. Several times every time I listen to them I get more out of it and also that the 2 million dollar cost cutting was not unnoticed.

Speaker Change: It came home below my expectations are with the lower cost.

Speaker Change: Thank you for your time.

Speaker Change: Thank you we have reached.

Terig Hughes: But I do expect to see strong growth over the next year and for the year as a whole. So I think we can look forward to further strong growth in the new QDiscover project. Did that answer your question? If you have more details, I think so.

Speaker Change: I shouldn't answer session I would like to turn the conference back over to Cameron for closing remarks.

Speaker Change: Yeah.

Cameron Reynolds: Thank you everyone for attending our call and we really appreciate them.

Cameron Reynolds: And we look forward to updating you with all the developments that we've outlined.

Steven Ralston: In other words, some of the Discover revenue is... Discover revenues are classified both under product and service categories. That's, that's right.

Cameron Reynolds: Next few months and on the first quarter earnings call, which is of course you in mid May. So thank you very much and have a great day. Thank you.

Terig Hughes: It is. It's probably slightly more weighted towards the service than the product. But is it too early in the process to determine the relative profitability between Discover and VET?

Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

Terig Hughes: So both are highly profitable in terms of gross margin. That, I would say, is probably higher, well, more highly profitable once we get it to scale and discover that, although highly profitable, there's a service element there that makes it slightly less profitable, but still, we have very, very good gross margins on both products. Also, is there a corporate model of when to capture your deferred revenue? I know it's a long tail and a very large market, and it might be too early to determine that, but you are generating some sales in that, and therefore, some minuscule percentage of the deferred revenue should be coming through the bottom line. Well, being put into the top line to come up.

Speaker Change: Hum.

Speaker Change: Thank you very much Gerry.

Speaker Change: [music].

Steven Ralston: Yeah, that's a good point, and I'm glad you brought that up, because, as you know, we've received $23 million so far in payments related to the license agreement with HESCA, now Antec, and that's currently classified as deferred income on the balance sheet. And I do expect that to start earning money this year because it's linked to when the point of care or in-house diagnostic test launches with HESCA, which is, as we said, imminent. And so I do expect to start to see some of that revenue this year, but it is a long tail over the lifetime of the agreement, which is 20 years.

Terig Hughes: Thank you. Just two comments. I'd like to thank you for those informative webinars on cancer and sepsis. I've listened to them several times, and every time I listen to them, I get more out of them.

Steven Ralston: And also that the $2 million cost cutting was not unnoticed. It came well below my expectations with the lower cost. Thank you for your time. Thank you. Thank you. We have reached the end of our question and answer session. I would like to turn the conference back over to Cameron for closing remarks.

Cameron Reynolds: Thank you everyone for attending our call, we really appreciate it and we look forward to updating you with all the developments that we've outlined over the next few months and on the first quarter earnings call which is of course due in mid-May. So thank you very much and have a great day. Thank you. Thank you. This will conclude today's conference. You may disconnect your lines at this time and thank you for your participation. Thank you very much, Sherry, https://www.youtube.com.au, ?? ?? ??

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