Volition(US:VNRX)2019-08-12 20:11Financial Position - As of June 30, 2019, the company had cash and cash equivalents of approximately $18.5 million[111]. - The company has no revenues reported for the three months ended June 30, 2019, and June 30, 2018, indicating ongoing operations are in the research and development stage[120]. - The company plans to use cash reserves predominantly for further research and development activities, with no substantial source of revenues currently available[115]. - The company’s future operations depend on obtaining sufficient capital contributions and financing to sustain operations and achieve profitable operations[108]. Operating Expenses - Total operating expenses decreased to $4.1 million for the three months ended June 30, 2019, down from $4.6 million in the same period in 2018, representing a 10% decrease[121]. - General and administrative expenses decreased to $1.4 million for the three months ended June 30, 2019, from $1.6 million for the same period in 2018, a reduction of approximately 12.2%[125]. - For the six months ended June 30, 2019, total operating expenses decreased to $8.1 million from $9.2 million for the same period in 2018, a decrease of approximately 12%[133]. - General and administrative expenses for the six months ended June 30, 2019, decreased to $2.6 million from $3.5 million for the same period in 2018, a decrease of approximately 25%[137]. - Research and development expenses decreased to $2.5 million for the three months ended June 30, 2019, from $2.7 million in the same period in 2018, primarily due to less collaboration work[123]. - Research and development expenses decreased to $4.95 million for the six months ended June 30, 2019, from $5.11 million for the same period in 2018, a reduction of approximately 3%[135]. - Total sales and marketing expenses increased slightly to $238,124 for the three months ended June 30, 2019, compared to $235,366 for the same period in 2018, an increase of 1.2%[127]. Net Loss - The company reported a net loss of $4.2 million for the three months ended June 30, 2019, compared to a net loss of $4.6 million in the same period in 2018, a 9% improvement[119]. - The net loss per share for the three months ended June 30, 2019, was $0.11, a 27% improvement from $0.15 in the same period in 2018[119]. - The Company's net loss for the six months ended June 30, 2019, was $8.4 million, a decrease of approximately $0.9 million, or 10%, compared to a net loss of $9.2 million for the same period in 2018[142]. - The Company's net loss for the three months ended June 30, 2019, was $4.2 million, a decrease of approximately $0.4 million, or 9%, compared to a net loss of $4.6 million for the same period in 2018[130]. Cash Flow - Net cash used in operating activities decreased to $6.4 million for the six months ended June 30, 2019, compared to $6.5 million for the same period in 2018, primarily due to reduced expenditures[112]. - Net cash provided by financing activities increased to $11.8 million for the six months ended June 30, 2019, compared to $8.2 million in the same period in 2018, primarily due to $11.7 million from warrant exercises[114]. Internal Controls and Compliance - The company continues to face material weaknesses in internal controls over financial reporting as of June 30, 2019[152]. - A remediation plan is being implemented to address identified weaknesses in internal controls[153]. - The Audit Committee regularly meets with financial management and independent auditors to discuss internal controls[153]. - The company does not expect its disclosure controls and internal controls to prevent all errors and fraud[156]. - There have been no changes in internal controls that materially affect financial reporting during the fiscal quarter ended June 30, 2019[155]. Risk Factors and Legal Proceedings - There have been no material changes in the assessment of risk factors affecting the business since the last Annual Report[161]. - The Company has not attained profitable operations and is dependent upon obtaining external financing to continue its operational and strategic plans[143]. - The company has not engaged in any unregistered sales of equity securities[162]. - There have been no defaults upon senior securities reported[163]. - The company is not subject to mine safety disclosures as it is not applicable[164]. - There are no material legal proceedings against the company or its affiliates[160].