VolitionRx Limited (AMEX:VNRX) Q4 2023 Earnings Call Transcript

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 Nu.Q discover projects. Did that answer your question?

Steven Ralston: I think so. In other words, some of the Discover revenue is — well, discover revenue is classified both under product and service categories.

Terig Hughes: That’s right. It is. So, we — it’s probably slightly more weighted towards the service than the product.

Steven Ralston: Is it too early in the process to determine the relative profitability between Discover and Vet?

Terig Hughes: So, both are highly profitable in terms of gross margin. Vet, I would say, is probably higher or more highly profitable once we get it to scale and Discover although highly profitable, there’s a service element there and that makes it slightly less profitable, but still we have very, very good gross margins on both products.

Steven Ralston: 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 miniscule percentage of the deferred revenue should be coming over through the bottom line, well, being put into the top line to come

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

Steven Ralston: 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. Every time I listen to them, I get more out of it. and also, that the $2 million cost cutting was not unnoticed, it came all below my expectations with the lower cost.

Operator: 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.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.