Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 1 - Nature of Operations
The Company was incorporated under the laws of the State of Delaware on September 24, 1998. On September 22, 2011, the Company filed a Certificate for Renewal and Revival of Charter with Secretary of State of Delaware. Pursuant to Section 312(1) of the Delaware General Corporation Law, the Company was revived under the new name of “VolitionRX Limited”. The name change to VolitionRX Limited was approved by FINRA on October 7, 2011 and became effective on October 11, 2011. On October 7, 2016, the Company filed a Second Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware that reflects the name “VolitionRx Limited”.
On October 6, 2011, the Company entered into a share exchange agreement with Singapore Volition Pte. Limited, a Singapore corporation incorporated on August 5, 2010 (“Singapore Volition”), and the shareholders of Singapore Volition. Pursuant to the terms of the share exchange agreement, the former shareholders of Singapore Volition held 85% of the issued and outstanding common shares of the Company. The issuance was deemed to be a reverse acquisition for accounting purposes and as such, Singapore Volition is regarded as the predecessor of the Company. The number of shares outstanding and per share amounts of the Company have been restated to recognize the foregoing recapitalization.
The Company’s principal business objective through its subsidiaries is to develop and bring to market simple, easy to use, cost effective blood tests designed to help diagnose a range of cancers and other diseases. The tests are based on the science of Nucleosomics, which is the practice of identifying and measuring nucleosomes in the bloodstream or other bodily fluid – an indication that disease is present. The Company has one wholly-owned subsidiary, Singapore Volition. Singapore Volition has one wholly-owned subsidiary, Belgian Volition SPRL, a Belgium private limited liability company formerly known as ValiBio SA (“Belgian Volition”), which it acquired as of September 22, 2010. Belgian Volition has two wholly-owned subsidiaries, Volition Diagnostics UK Limited (“Volition Diagnostics”), which was formed as of November 13, 2015 and Volition America, Inc. (“Volition America”), which was formed as of February 3, 2017. Following the acquisition of Singapore Volition in 2011, the Company’s fiscal year end was changed from August 31 to December 31.
Note 2 - Going Concern
The Company's condensed consolidated financial statements are prepared using accounting principles generally accepted in the United States of America (“U.S. GAAP”) applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has incurred losses since inception of $77.9 million, has negative cash flows from operations, and currently has no revenues, which creates substantial doubt about its ability to continue as a going concern for a period of one year from the date of issuance of these condensed consolidated financial statements.
The future of the Company as an operating business will depend on its ability to obtain sufficient capital contributions, financing and/or generate revenues as may be required to sustain its operations. Management plans to address the above as needed by (a) securing additional grant funds, (b) obtaining additional financing through debt or equity transactions, (c) granting licenses to third parties in exchange for specified up-front and/or back-end payments and (d) developing and commercializing its products on an accelerated timeline. Management continues to exercise tight cost controls to conserve cash.
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually attain profitable operations. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations.
Note 3 - Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2019, and for all periods presented herein, have been made.
8
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 3 - Summary of Significant Accounting Policies (continued)
Certain information and footnote disclosures normally included in financial statements prepared in accordance U.S. GAAP have been condensed or omitted. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K, for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission on March 13, 2019. The results of operations for the periods ended March 31, 2019 and 2018 are not necessarily indicative of the operating results for the full years. The condensed consolidated financial statements of the Company are expressed in United States Dollars. The Company’s fiscal year end is December 31.
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company also regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances and stock-based compensation.
The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.
Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements for the period ended March 31, 2019 include the accounts of the Company and its wholly-owned subsidiaries, Singapore Volition, Belgian Volition, Volition America, and Volition Diagnostics. All significant intercompany balances and transactions have been eliminated in consolidation.
Leases
In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 - Leases (Topic 842), which significantly amends the way companies are required to account for leases. Under the updated leasing guidance, some leases that did not have to be reported previously are now required to be presented as an asset and liability on the balance sheet. In addition, for certain leases, what was previously classified as an operating expense must now be allocated between amortization expense and interest expense. The Company adopted this update as of January 1, 2019 using the optional modified retrospective transition method and prior periods have not been restated. Upon implementation, the Company recognized an initial operating lease right-of-use asset of $110,630 and operating lease liability of $110,630. Due to the simplistic nature of the Company's leases, no retained earnings adjustment was required. See Note 9(b) for further details.
Basic and Diluted Net Loss Per Share
The Company computes net loss per share in accordance with Accounting Standards Codification (“ASC”) 260, “Earnings Per Share,” which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. As of March 31, 2019, 7,724,055 potential common shares equivalents from warrants and options were excluded from the diluted EPS calculations as their effect is anti-dilutive.
Recent Accounting Pronouncements
The Company has implemented all other new applicable accounting pronouncements that are in effect. The Company does not believe that there are any other new applicable accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.
9
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 4 - Property and Equipment
The Company’s property and equipment consist of the following amounts as of March 31, 2019 and December 31, 2018:
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2019
|
|
|
|
|
|
Accumulated
|
|
Net Carrying
|
|
|
|
Cost
|
|
Depreciation
|
|
Value
|
|
Useful Life
|
|
$
|
|
$
|
|
$
|
Computer hardware and software
|
3 years
|
|
384,040
|
|
193,325
|
|
190,715
|
Laboratory equipment
|
5 years
|
|
1,707,181
|
|
993,225
|
|
713,956
|
Office furniture and equipment
|
5 years
|
|
199,945
|
|
83,594
|
|
116,351
|
Buildings
|
30 years
|
|
1,471,384
|
|
102,163
|
|
1,369,221
|
Building improvements
|
5-15 years
|
|
630,471
|
|
85,968
|
|
544,503
|
Land
|
Not amortized
|
|
89,766
|
|
-
|
|
89,766
|
|
|
|
|
|
|
|
|
|
|
|
4,482,787
|
|
1,458,275
|
|
3,024,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
Accumulated
|
|
Net Carrying
|
|
|
|
Cost
|
|
Depreciation
|
|
Value
|
|
Useful Life
|
|
$
|
|
$
|
|
$
|
Computer hardware and software
|
3 years
|
|
344,383
|
|
166,750
|
|
177,633
|
Laboratory equipment
|
5 years
|
|
1,673,215
|
|
928,841
|
|
744,374
|
Office furniture and equipment
|
5 years
|
|
204,129
|
|
75,137
|
|
128,992
|
Buildings
|
30 years
|
|
1,502,171
|
|
91,785
|
|
1,410,386
|
Building improvements
|
5-15 years
|
|
643,663
|
|
77,049
|
|
566,614
|
Land
|
Not amortized
|
|
91,644
|
|
-
|
|
91,644
|
|
|
|
|
|
|
|
|
|
|
|
4,459,205
|
|
1,339,562
|
|
3,119,643
|
|
|
|
|
|
|
|
|
During the three months ended March 31, 2019 and March 31, 2018, the Company recognized $145,683 and $137,705 respectively, in depreciation expense.
Note 5 - Intangible Assets
The Company’s intangible assets consist of patents, mainly acquired in the acquisition of Belgian Volition. The patents and intellectual property are being amortized over the assets’ estimated useful lives, which range from 8 to 20 years.
|
|
|
|
|
March 31,
|
|
|
|
|
|
2019
|
|
|
|
Accumulated
|
|
Net Carrying
|
|
Cost
|
|
Depreciation
|
|
Value
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
Patents
|
1,146,839
|
|
709,073
|
|
437,766
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2018
|
|
|
|
Accumulated
|
|
Net Carrying
|
|
Cost
|
|
Depreciation
|
|
Value
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
|
Patents
|
1,167,383
|
|
700,478
|
|
466,905
|
10
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 5 - Intangible Assets (continued)
During the three months ended March 31, 2019, and March 31, 2018, the Company recognized $22,103 and $23,682, respectively, in amortization expense.
The Company amortizes the long-lived assets on a straight-line basis with terms ranging from 8 to 20 years. The annual estimated amortization schedule over the next five years is as follows:
2019 - remaining
|
$
|
63,765
|
2020
|
$
|
87,497
|
2021
|
$
|
87,497
|
2022
|
$
|
87,497
|
2023
|
$
|
87,497
|
Greater than 5 years
|
$
|
24,013
|
Total Intangible Assets
|
$
|
437,766
|
The Company periodically reviews its long-lived assets to ensure that their carrying value does not exceed their fair market value. The Company carried out such a review in accordance with ASC 360 as of December 31, 2018. The result of this review confirmed that the ongoing value of the patents was not impaired as of December 31, 2018.
Note 6 - Related Party Transactions
See Note 7 for common stock issued to related parties and Note 8 for stock options and warrants issued to related parties. The Company has agreements with related parties for consultancy services which are accrued under management and directors’ fees payable (see condensed consolidated balance sheets).
Note 7 - Common Stock
As of March 31, 2019, the Company was authorized to issue 100 million shares of common stock par value $0.001 per share, of which 37,813,991 and 35,335,378 shares were issued outstanding as of March 31, 2019 and December 31, 2018, respectively.
Issuances Upon Warrant Exercises
From January 30, 2019 to February 26, 2019, 754,475 warrants were exercised at a price of $2.20 per share, for gross cash proceeds to the Company of $1.66 million. As a result, a total of 754,475 shares of common stock were issued.
On March 8, 2019, Cotterford Company Limited exercised 1,724,138 warrants at a price of $2.90 per share, for gross cash proceeds to the Company of $5 million. As a result, a total of 1,724,138 shares of common stock were issued.
Equity Distribution Agreement
On September 7, 2018, the Company entered into an equity distribution agreement with Oppenheimer & Co. Inc. (“Oppenheimer”), which agreement allows it to offer and sell shares of common stock having an aggregate offering price of up to $10.0 million from time to time pursuant to a shelf registration statement on Form S-3 (declared effective by the SEC on September 28, 2018, File No. 333-227248) through Oppenheimer acting as the Company’s agent and/or principal. As of March 31, 2019, the Company had not sold any shares under the equity distribution agreement.
11
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 8 - Warrants and Options
a)
Warrants
The following table summarizes the changes in warrants outstanding of the Company during the three month period ended March 31, 2019:
|
Number of
|
|
Weighted Average
|
|
Warrants
|
|
Exercise Price ($)
|
Outstanding at December 31, 2018
|
6,107,617
|
|
2.88
|
Granted
|
-
|
|
-
|
Exercised
|
(2,478,613)
|
|
2.68
|
Expired
|
(133,750)
|
|
2.20
|
Outstanding at March 31, 2019
|
3,495,254
|
|
2.99
|
|
|
|
|
Exercisable at March 31, 2019
|
3,370,254
|
|
3.01
|
Effective March 5, 2019, the Company entered into an amendment to an outstanding warrant to purchase up to an aggregate of 5.0 million shares of our common stock, originally issued to Cotterford Company Limited, a significant stockholder, in connection with an equity financing completed on or about August 10, 2018. The amendment temporarily reduced the exercise price of such warrant from $3.00 per share to $2.90 per share through the close of business on March 8, 2019. On March 8, 2019, Cotterford Company Limited partially exercised the warrant for 1,724,138 shares of our common stock at $2.90 per share resulting in gross proceeds of $5.0 million. The warrant remains exercisable through August 10, 2019 for the remaining balance of 3,275,862 shares of common stock at a price of $3.00 per share. As a result of this amendment, $196,957 was recorded in other expenses.
During the quarter ended March 31, 2019, 2,478,613 warrants were exercised (including the exercise by Cotterford Company Limited referenced above) for gross cash proceeds to the Company of $6.66 million. Refer to Note 7 for the details of these exercises.
Below is a table summarizing the warrants issued and outstanding as of March 31, 2019, which have an aggregate weighted average remaining contractual life of 0.50 years.
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
Remaining
|
Proceeds to
|
Number
|
|
Number
|
|
Exercise
|
|
Contractual
|
Company if
|
Outstanding
|
|
Exercisable
|
|
Price ($)
|
|
Life (Years)
|
Exercised ($)
|
29,392
|
|
29,392
|
|
2.40
|
|
0.75
|
|
70,541
|
150,000
|
|
25,000
|
|
2.47
|
|
3.43
|
|
370,500
|
3,275,862
|
|
3,275,862
|
|
3.00
|
|
0.36
|
|
9,827,586
|
40,000
|
|
40,000
|
|
4.53
|
|
1.63
|
|
181,200
|
3,495,254
|
|
3,370,254
|
|
|
|
|
|
10,449,827
|
Warrant expense of $2,127 and $2,199 was recorded in the three months ended March 31, 2019 and March 31, 2018, respectively. Total remaining unrecognized compensation cost related to unvested warrants is approximately $14,885 and is expected to be recognized over a period of 1.8 years. As of March 31, 2019, the total intrinsic value of warrants was $960,949.
12
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 8 - Warrants and Options (continued)
b)
Options
The following table summarizes the changes in options outstanding of the Company during the three month period ended March 31, 2019:
|
|
Number of
|
|
Weighted Average
|
|
|
Options
|
|
Exercise Price ($)
|
Outstanding at December 31, 2018
|
|
3,498,801
|
|
4.00
|
Granted
|
|
730,000
|
|
3.25
|
Exercised
|
|
-
|
|
-
|
Expired/Cancelled
|
|
-
|
|
-
|
Outstanding at March 31, 2019
|
|
4,228,801
|
|
3.87
|
|
|
|
|
|
Exercisable at March 31, 2019
|
|
3,473,801
|
|
4.00
|
Effective February 11, 2019, the Company granted stock options to purchase 730,000 shares of common stock to various Company personnel (including directors, executives, members of management and employees) for services to the Company. These options vest on February 11, 2020 and expire 5 years after the vesting date, with an exercise price of $3.25 per share. The Company has calculated the estimated fair market value of these options at $1,569,816, using the Black-Scholes model and the following assumptions: term 6 years, stock price $3.16, exercise price $3.25, 77.86% volatility, 2.52% risk free rate, and no forfeiture rate.
Below is a table summarizing the options issued and outstanding as of March 31, 2019, all of which were issued pursuant to the 2011 Equity Incentive Plan (for option issuances prior to 2016) or the 2015 Stock Incentive Plan (for option issuances commencing in 2016)
and
which have an aggregate weighted average remaining contractual life of 3.73 years
. As of March 31, 2019, a total of 69,000 shares of common stock remained
available for future issuance
under the 2015 Stock Incentive Plan.
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Remaining
|
|
Proceeds to
|
Number
|
|
Number
|
|
Exercise
|
|
Contractual
|
|
Company if
|
Outstanding
|
|
Exercisable
|
|
Price ($)
|
|
Life (Years)
|
|
Exercised ($)
|
17,766
|
|
17,766
|
|
2.35
|
|
0.95
|
|
41,750
|
322,500
|
|
322,500
|
|
2.50
|
|
1.39
|
|
806,250
|
322,500
|
|
322,500
|
|
3.00
|
|
1.39
|
|
967,500
|
730,000
|
|
-
|
|
3.25
|
|
5.87
|
|
2,372,500
|
17,767
|
|
17,767
|
|
3.35
|
|
1.95
|
|
59,519
|
20,000
|
|
20,000
|
|
3.80
|
|
2.13
|
|
76,000
|
1,911,167
|
|
1,886,167
|
|
4.00
|
|
3.17
|
|
7,644,669
|
17,767
|
|
17,767
|
|
4.35
|
|
2.95
|
|
77,286
|
50,000
|
|
50,000
|
|
4.80
|
|
3.76
|
|
240,000
|
819,334
|
|
819,334
|
|
5.00
|
|
2.73
|
|
4,096,670
|
4,228,801
|
|
3,473,801
|
|
|
|
|
|
16,382,144
|
Stock option expense of $338,331 and $895,226 was recorded in the three months ended March 31, 2019 and March 31, 2018, respectively. Total remaining unrecognized compensation cost related to non-vested stock options is approximately $1,381,839 and is expected to be recognized over a period of 0.87 years. As of March 31, 2019, the total intrinsic value of stock options was $338,490.
13
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 9 - Commitments and Contingencies
a)
Finance Lease Obligations
In 2015, the Company entered into an equipment finance lease to purchase three Tecan machines (automated liquid handling robots) for €550,454 Euros. As of March 31, 2019, the balance payable was $112,347.
In 2016, the Company entered into a real estate finance lease with ING Asset Finance Belgium S.A. (“ING”) to purchase a property located in Belgium for €1.12 million Euros. As of March 31, 2019, the balance payable was $673,787.
In 2018, the Company entered into a finance lease with BNP Paribas leasing solutions to purchase a freezer for the Belgium facility for €25,000 Euros. The leased equipment is amortized on a straight line basis over 5 years. As of March 31, 2019, the balance payable was $26,107.
The following is a schedule showing the future minimum lease payments under finance leases by years and the present value of the minimum payments as of March 31, 2019.
2019 - remaining
|
$
|
121,733
|
2020
|
$
|
114,584
|
2021
|
$
|
69,907
|
2022
|
$
|
61,762
|
2023
|
$
|
60,353
|
Greater than 5 years
|
$
|
505,433
|
Total
|
$
|
933,772
|
Less: Amount representing interest
|
$
|
(121,531)
|
Present value of minimum lease payments
|
$
|
812,241
|
b)
Operating Lease Right-of-Use Obligations
The Company adopted Topic 842 on January 1, 2019. The Company elected to adopt this standard using the optional modified retrospective transition method and recognized a cumulative-effect adjustment to the condensed consolidated balance sheet on the date of adoption. Comparative periods have not been restated. With the adoption of Topic 842, the Company’s condensed consolidated balance sheet now contains the following line items: Operating lease right-of-use assets, Current portion of operating lease liabilities and Operating lease liabilities, net of current portion.
As all the existing leases subject to the new lease standard were previously classified as operating leases by the Company, they were similarly classified as operating leases under the new standard. The Company has determined that the identified operating leases did not contain non-lease components and require no further allocation of the total lease cost. Additionally, the agreements in place did not contain information to determine the rate implicit in the leases, so we used our incremental borrowing rate as the discount rate. Our weighted average discount rate is 4.50% and the weighted average remaining lease term is 26 months.
As of March 31, 2019, operating lease right-of-use assets and liabilities arising from operating leases was $96,538 and $97,096, respectively. During the three months ended March 31, 2019, cash paid for amounts included for the measurement of lease liabilities was $12,494 and the Company recorded operating lease expense of $13,052.
The following is a schedule showing the future minimum lease payments under operating leases by years and the present value of the minimum payments as of March 31, 2019.
2019 - remaining
|
$
|
37,536
|
2020
|
$
|
49,296
|
2021
|
$
|
14,835
|
Total Operating Lease Obligations
|
$
|
101,667
|
Less: Amount representing interest
|
$
|
(4,571)
|
Present Value of minimum lease payments
|
$
|
97,096
|
14
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 9 - Commitments and Contingencies (continued)
b)
Operating Lease Right-of-Use Obligations (continued)
The Company’s office spaces are short term. The Company has elected not to recognize them on the balance sheet under the short-term recognition exemption. During the three months ended March 31, 2019, $45,264 was recognized in short-term lease costs associated with office space leases. The annual payments remaining for short term office leases were as follows:
2019 - remaining
|
$
|
128,953
|
2020
|
$
|
13,708
|
Total Lease Obligations
|
$
|
142,661
|
c)
Grants Repayable
In 2010, the Company entered into an agreement with the Walloon Region government in Belgium for a colorectal cancer research grant for €1.05 million Euros. Per the terms of the agreement, €314,406 Euros of the grant is to be repaid.by instalments over the period from June 30, 2014 to June 30, 2023. The Company has recorded the balance of €733,614 Euros to other income in previous years as there is no obligation to repay this amount. In the event that the Company receives revenue from products or services as defined in the agreement, it is due to pay a 6% royalty on such revenue to the Walloon Region. The maximum amount payable to the Walloon Region, in respect of the aggregate of the amount repayable of €314,406 Euros and the 6% royalty on revenue, is twice the amount of funding received. As of March 31, 2019, the grant balance repayable was $176,620.
In 2018, the Company entered into an agreement with the Walloon Region government in Belgium for a colorectal cancer research grant for €605,000 Euros. Per the terms of the agreement, €181,500 Euros of the grant is to be repaid by instalments over 12 years commencing in 2020. In the event that the Company receives revenue from products or services as defined in the agreement, it is due to pay a 3.53% royalty on such revenue to the Walloon Region. The maximum amount payable to the Walloon Region, in respect of the aggregate of the amount repayable of €181,500 Euros and the 3.53% royalty on revenue, is equal to the amount of funding received. As of March 31, 2019, the grant balance repayable was $199,748.
As of March 31, 2019, the total grant balance repayable was $376,368 and the annual payments remaining were as follows:
2019 - remaining
|
$
|
39,272
|
2020
|
$
|
52,849
|
2021
|
$
|
49,939
|
2022
|
$
|
47,239
|
2023
|
$
|
48,408
|
Greater than 5 years
|
$
|
138,661
|
Total Grants Repayable
|
$
|
376,368
|
15
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 9 - Commitments and Contingencies (continued)
d)
Long-Term Debt
In 2016, the Company entered into a 7-year loan agreement with Namur Invest for €440,000 Euros with a fixed interest rate of 4.85%. As of March 31, 2019, the principal balance payable was $375,675.
In 2016, the Company entered into a 15-year loan agreement with ING for €270,000 Euros with a fixed interest rate of 2.62%. As of March 31, 2019, the principal balance payable was $265,523.
In 2017, the Company entered into a 4-year loan agreement with Namur Invest for €350,000 Euros with a fixed interest rate of 4.00%. As of March 31, 2019, the principal balance payable was $258,722.
In 2017, the Company entered into a 7-year loan agreement with SOFINEX for up to €1 million Euros with a fixed interest rate of 4.50%. As of March 31, 2019, €750,000 Euros has been drawn down under this agreement and the principal balance payable was $841,552.
In 2018, the Company entered into a 4-year loan agreement with Namur Innovation and Growth for €500,000 Euros with fixed interest rate of 4.00%. As of March 31, 2019, the principal balance payable was $523,509.
As of March 31, 2019, the total balance for long-term debt payable was $2,264,981 and the payments remaining were as follows:
2019 - remaining
|
$
|
373,355
|
2020
|
$
|
674,736
|
2021
|
$
|
604,290
|
2022
|
$
|
447,953
|
2023
|
$
|
233,898
|
Greater than 5 years
|
$
|
198,788
|
Total
|
$
|
2,533,020
|
Less: Amount representing interest
|
$
|
(268,039)
|
Total Long-Term Debt
|
$
|
2,264,981
|
e)
Collaborative Agreement Obligations
In 2015, the Company entered into a research sponsorship agreement with DKFZ, in Germany for a 3-year period for €338,984 Euros. As of March 31, 2019, $84,155 is still to be paid
by the Company under this agreement.
In 2016, the Company entered into a research co-operation agreement with DKFZ, in Germany for a 5-year period for €400,000 Euros. As of March 31, 2019, $224,414 is still to be paid by the Company under this agreement.
In 2016, the Company entered into a collaborative research agreement with Munich University, in Germany for a 3-year period for
€360,000 Euros. As of March 31, 2019, $298,471 is still to be paid by the Company under this agreement.
In 2017, the Company entered into a clinical study research agreement with
the
University
of Michigan for a 3-year period for
up to $3 million. As of March 31, 2019,
up to $1.50 million is still to be paid
by the Company under this agreement.
In 2018, the Company entered into a research collaboration agreement with the University of Taiwan for a 3-year period for a cost to the Company of up to $2.55 million payable over such period. As of March 31, 2019, $2.04 million is still to be paid by the Company under this agreement.
As of March 31, 2019, the total amount to be paid for future research
and collaboration commitments was approximately $4.15 million and the annual payments remaining were as follows:
2019 - remaining
|
$
|
2,262,077
|
2020
|
$
|
992,463
|
2021
|
$
|
892,500
|
Total Collaborative Agreement Obligations
|
$
|
4,147,040
|
16
VOLITIONRX LIMITED
Notes to the Condensed Consolidated Financial Statements (Unaudited)
($ expressed in United States Dollars)
Note 9 - Commitments and Contingencies (continued)
f)
Legal Proceedings
There are no legal proceedings which the Company believes will have a material adverse effect on its financial position.
Note 10 - Subsequent Events
On April 30, 2019, stock options to purchase 30,000 shares of common stock expired unexercised.
On May 1, 2019, the Company entered into a research collaboration agreement with the University of Taiwan to collect a total of 1,200 samples for a 2-year period for a cost to the Company of $320,000 payable over such period.
On May 3, 2019, Cotterford Company Limited partially exercised its warrant for 1,666,667 shares of our common stock at $3.00 per share resulting in the issuance of 1,666,667 shares of common stock for gross proceeds of $5.0 million. The warrant remains exercisable through August 10, 2019 for the remaining balance of 1,609,195 shares of common stock at a price of $3.00 per share.
END NOTES TO FINANCIALS
17