Volitionrx Ltd Q1 FY2026 Earnings Call

Hello, everyone. Thank you for standing by. Welcome to VolitionRx Limited's First Quarter 2026 Earnings Conference Call. This conference is being recorded today, May 15, 2026. I'd now like to turn the conference call over to Louise Batchelor Day, Group Chief Marketing and Communications Officer. Please go ahead.

Thank you, and welcome, everyone, to today's earnings conference call for VolitionRx Limited. Before we begin, I'd like to remind everyone that some of the information discussed on this conference call will include forward-looking statements covered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our beliefs as well as assumptions we have used based upon information currently available to us. Because these statements reflect our current views concerning future events, these statements involve risks, uncertainties and assumptions. Actual 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. Terig Hughes, Group Chief Financial Officer, will open the call providing a financial report before handing over to Cameron Reynolds, Group Chief Executive Officer, who will provide a summary of recent key achievements and upcoming milestones. We will then open the conference call to a question-and-answer session. And with that, I'll turn the call over to Terig.

Thanks very much, Lou, and hello, everyone. I'm delighted to provide a financial report for the first quarter ending 31st of March 2026. From a revenue perspective, we recorded approximately $1 million in the first quarter compared to approximately $0.2 million in the same period of 2025. This increase was primarily driven by a $0.7 million increase in deferred revenue recognition related to our Nu.Q Vet agreement with Heska, the result of a periodic review and consistent with our accounting policies. As we have stated previously, at this stage of commercialization, revenues remain fairly lumpy and difficult to predict from one quarter to the next. And so while we remain confident of continuing to see solid growth year-over-year, we will not be providing revenue guidance for 2026 at this point in time. From an expenditure perspective, the operating expenses for the quarter were $6.3 million compared to $5.8 million in the same period last year. This increase partly reflected severance costs related to cost reduction actions, which will result in future savings as well as higher R&D costs related to work on our Capture-Seq and completion of certain lung cancer studies. As we reported in the recent 10-K, looking at the trend over the last two years, we now operate at significantly lower levels of expenditure. Furthermore, we have and will continue to take measures to reduce costs further in 2026. Net cash used in operating activities was $5.3 million compared with $4.3 million in Q1 2025, partly reflecting the timing of supplier payments. Cash and cash equivalents at the end of the quarter totaled approximately $3.1 million compared to $1.1 million at the end of December 2025. Receipts in the first quarter included approximately $5.4 million in net proceeds from our at-the-market or ATM facility and $1.9 million in net proceeds from issuance of a convertible note to Lind Global Asset Management LLC. We also continue to receive significant support from agencies of the Walloon Region in Belgium with non-dilutive funding of approximately $1 million received and an additional approximate $0.9 million expected to be received in tranches based on certain time and event milestones over the next 12 months. This takes the non-dilutive funding support from all sources from inception to date to well over $25 million. So to summarize the finance report, revenue was up 300% year-on-year. Operating loss was 3% lower year-on-year. We continue to work on reducing our underlying operating expenses. And as reported, we have made progress to secure a $5 million milestone payment from an existing agreement in the vet space. Last but not least, licensing discussions are progressing well. And to provide further detail, I will pass over to Cameron.

Thank you, everyone, for joining Volition's earnings call today. As always, we very much appreciate your time given the busy earnings season. The first quarter call always comes hot on the heels of the K, so I will try to be brief today. We have made some strong progress across all of our product pillars this year. So taking each in turn. Nu.Q Vet. The first quarter is always a busy conference season for the vet team, and this year was no different with a booth and sponsored symposium at both VMX and WVC, the two largest veterinary conferences in the world. In March of this year, we announced the completion of all validation and verification of the chemiluminescent immunoassay ChLIA version of the Nu.Q Vet Cancer Test with Fujifilm Vet Systems in Japan, allowing use of full automation rather than manual plates in central labs for dogs. This is a world first for us and will significantly enhance turnaround times and throughput to meet increasing demand. We believe that central lab automation is crucial for scaling our vet business and integrating our test into routine pet wellness panels. Importantly, this automation platform is the same technology utilized for our human diagnostic products, Nu.Q Cancer, Nu.Q NETs and Nu.Q Discover, highlighting the inherent synergy and efficiency of our core Nu.Q platform. From a product expansion perspective, we have also made great progress with our research into the use of Nu.Q in cats. Subsequent to quarter end, we announced the submission for peer review of a clinical manuscript reporting the high accuracy of our Nu.Q Vet feline prototype assay in detecting lymphoma in cats, the most common cancer in the species. At 97% specificity, the assay detected 86% of feline lymphomas. This breakthrough marks the development of what we expect to be the world's first simple, affordable blood-based liquid biopsy test for feline cancer, a significant unmet need in veterinary medicine. This opens up the potential for cancer screening and monitoring in cats. There are more than 60 million cats in the U.S. alone, 25% of which are senior cats and therefore, suitable for an annual check. This represents a tremendous commercial opportunity for Volition. The publication of this study in a peer-reviewed journal is expected to subsequently unlock a $5 million contractual milestone payment. And we also expect it will generate ongoing revenue in this large and growing market where our technology meets an unmet need. Incredibly quick progress from a product development perspective, given it was only May of last year that we reported detecting nucleosomes in cats, the third species for Nu.Q. Next up, Nu.Q NETs. NETosis really is an area of increasing scientific interest with a significant number of research articles published in recent years. I've spoken before about a number of manuscripts relating to the use of our Nu.Q NETs assay in sepsis. And this quarter, we reported findings in two further clinical indications. Firstly, in January, we shared a new clinical study demonstrating the use of Nu.Q NETs in patient management of hidradenitis suppurativa, HS, a lifelong disease which affects approximately 1% of the world's population. HS is a complex immune-mediated disorder with multiple pro-inflammatory cytokines contributing to its pathogenesis. The clinical presentation may also vary from person to person, making it challenging to manage. The findings described in the manuscript demonstrate that for the first time in an easy-to-measure blood test, Nu.Q NETs can be used to classify patients and to surrogate response to treatment. In February, we sponsored a well-attended satellite symposium with key opinion leader Professor Evangelos and are continuing further work in the field. We look forward to sharing further data as it becomes available. From a chronic disease use case to very much an acute use case. Secondly, at the end of the quarter, we were delighted to announce the publication of a study at the Mayo Clinic in the SHOCK Journal. The Mayo Clinic study of 674 trauma patients demonstrated that nucleosome levels as measured by Volition's Nu.Q H3.1 and Nu.Q H3R8 Citrulline are elevated in people that have experienced a traumatic event, and are even higher in those patients that go on to have complications from the trauma. The numbers and data are quite stark and some of the most compelling data I have ever seen. H3.1 levels in healthy people were low at 22.3 nanograms per ml. Those with trauma were elevated to 359.7 and those that went on to get venous thromboembolism, VTE, were 828.4 on average, over 37 times the level in healthy people. The identification of reliable biomarkers in trauma patients is a clinical challenge and remains an unmet need in the emergency and surgical setting. Professor Park, the principal investigator and senior author from the Mayo Clinic said, "These biomarkers could aid in the early risk identification and may inform targeted preventative strategies in trauma care." For my part, I believe this is a significant study with clear data; not only for the clinicians, patients and their families, but also for Volition. A peer-reviewed publication with the Mayo Clinic research team can only support our efforts to commercialize our Nu.Q NETs products. The Mayo Clinic team have continued their work with Nu.Q and are very much looking forward to sharing further updates in the coming months. Next up for Nu.Q NETs, a quick update on the DETECSEPS program. As a reminder, DETECSEPS is a French government-sponsored real-world evaluation of the early detection of sepsis and Volition's Nu.Q NETs assay is the sole biomarker. The DETECSEPS program provides an opportunity to receive individualized and personalized care adjusted to the risk of deterioration and progression to sepsis. I'm very pleased to be able to say the program is on track, and we hope the first patient will be recruited in the third quarter of this year, likely September. It is a privilege to be involved in such a program, and we hope that through the early identification of sepsis, lives can be saved, the quality of life of survivors can be improved and importantly, the burden on the health care system can be reduced. Also, subsequent to quarter end, we were delighted to report the breakthrough finger-prick detection of nucleosomes, thereby expanding global market potential for sepsis testing. This was a major technical milestone: the successful detection of nucleosomes in capillary blood from critically ill sepsis patients using our lateral flow prototype. This finger-prick test sample could be used at the bedside in the emergency room or even at home with a self-test lateral flow kit, similar to COVID-19 or pregnancy testing, thereby greatly expanding the potential market beyond centralized lab testing. The ability to rapidly identify high-risk patients at the point of care by quantifying nucleosome levels using a finger-prick sample and a simple lateral flow device could enable quicker clinical decision-making and consequently better patient outcomes. We believe this is a potential game changer, not only in diseases where time is critical, such as sepsis, but also in significantly expanding potential use cases beyond traditional hospital infrastructure. It also creates a compelling pathway into underserved low-income countries where lab infrastructure may be weak or nonexistent, an exciting development and one to keep an eye on for future updates. Next, I'd like to talk about our Nu.Q Discover pillar, where we are commercializing our service offering for nucleosome-based biomarkers to drug developers and researchers. In the first quarter, we were excited to expand our collaborator network and extend access to Nu.Q Discover through a nonexclusive agreement with Medical & Biological Labs Co., MBL. MBL is a leading provider of clinical research tools in Japan with a particular focus and track record in autoimmune diseases. Through our Nu.Q Discover pillar, we are now serving close to 100 clients worldwide including many top pharma and diagnostic companies, accelerating disease research and drug development across multiple therapeutic areas. Some of these pharma companies are progressing to late-stage clinical trials using our assays as pharmacodynamic biomarkers. Subsequent to quarter end, we launched our rNuQ webshop, offering a range of reliable, ready-to-use recombinant nucleosomes that we have developed over the past 10 years. Manufactured in our ISO 13485 certified facility, delivering reliable reproducibility and quality control. Volition's nucleosomes are stored and shipped at plus 4 degrees Celsius in glycerol-free buffer, simplifying handling while preserving structural integrity and experimental performance, thereby providing rapid access to high-quality nucleosomes for epi-drug researchers worldwide. This is a potential new source of revenue on our path to commercializing our very large IP portfolio. Moving on to Nu.Q Cancer and specifically Nu.Q Lung Cancer, where the first clinical use of Nu.Q is now imminent. Nu.Q Cancer represents a significant advancement in lung cancer patient management, offering clinicians an additional tool to enhance precision in treatment selection and monitoring. Research conducted by our long-term collaborators in Taiwan and Lyon demonstrates that our Nu.Q Cancer technology empowers clinicians to make more informed treatment decisions and provides valuable new monitoring capabilities throughout the patient journey. Several manuscripts and conference posters and presentations have already been published and several more clinical papers have either recently been submitted for peer review or will be in the coming weeks. Together, this evidence provides the basis of our reimbursement submission supported by our long-term collaborators at the Hospices Civils de Lyon, one of Europe's leading cancer centers. Reimbursement is the next step on the path to the first use of Nu.Q in clinical practice, an exciting prospect which is core to Volition's mission: using our tests to save lives. This submission is a significant undertaking, and we hope to participate in pre-submission meetings with the authorities in the coming weeks. Reimbursement will be a major milestone for Volition in the commercialization and licensing of Nu.Q in the human cancer field. And once achieved, we anticipate the introduction into clinical routine use in France late this year. The final pillar, which has generated a tremendous amount of interest this quarter, is Capture-Seq, which we have had several announcements about. Volition is, I believe, the first company to demonstrate the isolation and analysis of greater than 99% pure circulating tumor-derived DNA, ctDNA. To set the scene, the biggest problem facing liquid biopsy worldwide is that the vast majority of circulating DNA in blood plasma samples comes from healthy cells, not cancer cells. In a world-first new technology, Volition has overcome this hurdle and produced greater than 99% pure cancer-derived plasma DNA sequencing sets for liquid biopsy. We resubmitted our manuscript in March available to view on Research Square. Our continuing work on CTCF-bound DNA has revealed what we believe to be an unprecedented new discovery: there is almost no CTCF-bound DNA in healthy plasma and almost all CTCF-bound DNA in the blood of a cancer patient is derived from cancer cells, i.e., it is virtually pure circulating tumor-derived DNA. Removal of background normal cell-free DNA from the blood to reveal this level of tumor-derived DNA has been a long-term goal of liquid biopsy. In the updated manuscript, we report a new two-step method for preparing virtually pure circulating tumor DNA sets for cancer patients. Firstly, physical enrichment of the samples and secondly, bioinformatic removal of virtually all remaining non-tumor cell-free DNA sequences from the DNA sequence data set. This new method produces greater than 99% pure tumor DNA sequencing data sets for blood samples from cancer patients. And while we capture a subset of the tumor DNA, not all the tumor DNA in a sample, it is virtually pure cancer DNA. These methodological and technological breakthroughs represent a novel liquid biopsy method for a novel class of potentially thousands of liquid biopsy sequence biomarkers, representing, in our Chief Scientist's opinion, the biggest scientific breakthrough in cancer testing and monitoring in recent years. In addition to the manuscript, we also released data this quarter from a blinded validation cohort of 81 subjects: colorectal and lung cancer patients being 59 and healthy controls being 22. We are extremely encouraged by the results, particularly in early-stage cancer detection, where we detected over 95% of Stage 1 and 2 cancers. For patients, the potential significance is huge. If further validated in larger cohorts, CTCF Capture-Seq could contribute to multi-cancer early detection, fulfilling a significant unmet clinical need. We also believe Capture-Seq has the potential to play a role in cancer management, including, but not limited to, minimal residual disease detection, including tumor-naive MRD, and treatment monitoring, either alone or potentially in combination with other technologies. Volition is, I believe, the first liquid biopsy company to focus on circulating cell-free nuclear proteins, and we have filed a number of new patents to protect this technology. Our goal is to secure a wide range of licensing agreements in the human diagnostic space, mirroring our successful strategy in the vet market. And we anticipate diverse deal structures with potential for upfront and milestone payments and future recurring revenue. We have developed a truly remarkable versatile platform, and we are now working with governments and some of the biggest diagnostic and liquid biopsy companies to make our technology available worldwide as quickly as possible. We have continued to make good progress. Indeed, I would say that we are delighted to have grown the commercial interest in CTCF in the first quarter with an increase in discussions, including for technical evaluations. We set out 15 years ago to help save lives and improve outcomes for millions of patients worldwide, and we are making huge progress towards that goal. With the first clinical use now imminent, in both early sepsis and lung cancer management, we are about to be part of the solution through simple, easy-to-use, low-cost tests. Our vision is for our technology to be incorporated into tests that will be used by first millions and ultimately hundreds of millions of people and animals a year, with our platform licensed to a range of large diagnostic and liquid biopsy companies and governments worldwide. Combining our groundbreaking technology with their installed base of labs, analyzer machines and sales forces around the world, we aim to achieve the optimal outcome for us. Large companies have the resources to realize the opportunities better than Volition. The total addressable markets for our technologies on an annualized basis are multibillion-dollar opportunities, not only for Volition, but for our licensing partners too. Volition has made strong progress, both clinically and commercially. We are very active with a range of potential partners, and we are continuing our discussions with more than a dozen of the world's leading diagnostic and liquid biopsy companies to license and commercialize our very broad IP and product portfolio. These discussions are at various stages of the negotiation process across all of our different pillars. Our laser focus is on executing licensing agreements, and we'll update you as they progress. Thank you for joining the call today. We very much appreciate it. We will now take your questions. Operator?

Our first question comes from the line of Justin Walsh with JonesTrading.

I was curious if you could expand on the potential clinical utility of Nu.Q NETs in HS. I'm wondering how physicians might use the additional information to inform treatment decisions.

Yes. Thank you. A lot of that work has been done by Professor Evangelos, who is one of the world's leading experts in HS. And as we said on the call, we've had a satellite symposium. We're actually working with a lot of other groups getting further data. I won't go through the technical side. HS is a tricky, complicated condition. But what I do know is some of the world's best people are very keen on how it can be used to help. It is 1% of the world's population, which honestly was news to me. I'm not familiar with the condition myself, but it's supposed to be an extremely painful, extremely debilitating condition for a lot of the world's people. Professor Evangelos' paper and now I believe other groups are working on it as well are very convinced that it could be a very big part of the solution. But yes, I'm not the scientist involved. I'll put you over to Louise, do you want to?

I can add a little bit of color, Justin. So the way that Professor Evangelos has used it thus far is really in helping identify patients that might be having a flare-up. So it's a chronic condition that is often lifelong, and can be under control with treatment, and then people can unfortunately experience a flare. They're using the Nu.Q NETs assay to help monitor patients on an ongoing basis. His hope is to then utilize it within clinical studies of new therapeutics that are coming through. So that's the direction of travel for HS. I think it's definitely one to keep an eye on. I think we'll have more news about it throughout the year.

And the current diagnosis is a very complicated process. I've actually spoken to Professor Evangelos a few times. They're really hoping to simplify it, and he believes that's possible with our test. And just as a background, in the NET space there are so many potential uses: working with Werfen on APS, another autoimmune disease; with the French government that's doing this large interventional study in sepsis. Those are all looking progressed. And of course, I mentioned we're incredibly excited with the Mayo Clinic data. Trauma is, I believe, one of the biggest causes of emergency and intensive visits in the U.S., around 40 million a year. It's important to identify who will develop complications. The Mayo Clinic data was quite strong with H3.1 levels of 22.3 in healthy people, 359.7 in trauma, and over 800 in those who got VTE. One of the most important parts of that was the VTE section: going on to having a blood clot is obviously critical to know. Overall, the NETs platform is now stable, works on the Revvity machine, and we have the finger-prick capillary blood demonstration. I think we have a very wide range of potential uses beyond sepsis. We're working on another project with a well-regarded U.S. group which could become a fourth big use in the short term. So overall, the picture on NETs is really coming together between those different conditions, and we're hoping that will lead to the big companies putting it on their platforms and finishing those discussions with these different uses.

Our next question comes from the line of Yi Chen with H.C. Wainwright.

This is Katie on for Yi. You guys have described discussions with a good number of companies at various stages. Can you give us an idea of how far those have progressed? Have they reached a contract negotiation stage, term sheet? And what's kind of a realistic deal structure for those? And I guess, what should we really be expecting from the next agreement?

Very good question. So yes, we do have a lot of discussions going on. I think in the last quarter it's actually expanded because we've had a large number of inquiries. It's fair to say a very large percentage of the large diagnostic companies and the liquid biopsy companies and a range of other companies have engaged with us. As you know, we have signed some deals already with Hologic, Werfen and Revvity; Revvity being the machine platform for the IVDR and IVDD work. That has gone extremely well. The NETosis stage, I think, hinges on getting the big agreements with the big diagnostic companies. These are very large use cases and are well fleshed out. I think we're getting there, definitely on sepsis. Trauma has been a fantastic new entrant in the last quarter with the Mayo Clinic, and then HS as mentioned. We're also working on another very large use with a renowned institution in the U.S. On the Nu.Q Capture side, interest has gone up tremendously since the paper was in preprint. The preprint has been downloaded 2,700 times, which reflects substantial interest. Where we are with the different groups: all of them are in discussions. The more advanced ones are in the stage of technical validation and running their own trials on different technologies and processes, and that's progressing well. We're doing a lot of work with quite a few of them. The actual terms and the processes are confidential until we finish. But if you look at deals that have been done in this space, they typically involve upfront payments or milestones and a share of the revenue going forward, either through royalty or some other process like the sale of key components. We don't update on each one individually due to confidentiality. But yes, we're very happy with how they're advancing. There are a lot of discussions going on, and we'll continue to update as they come through. In the NETosis and Capture spaces and with groups like Revvity, Hologic, and Werfen, we've made strong progress and will update as agreements are finalized.

Great. If there's time, I'd like to have a quick follow-up on Werfen and Hologic.

Yes.

Could you quantify how much revenue has come in from those two so far this year? What kind of format it came in and give us an idea of what conditions or triggers might produce more revenue from those deals for the rest of 2026 and 2027?

Good question. With Werfen, we're working on APS. The NETs platform can be used in a wide range of areas from autoimmune diseases to sepsis, trauma and other indications. We've been working with different groups to either sign up for a big license for things like sepsis or for smaller uses which we hope to expand. Werfen is in the process of demonstrating how well it works in APS. They made a small upfront payment as part of the contract; we do not disclose specifics, but they have paid an initial amount and there are further payments to be made as they progress through APS review. Hologic has been working on a few agreements. We don't break out individual revenues, but they are working with us on selling some of the Discover portfolio. With both companies, we view initial projects as beachheads to expand from. The Discover revenue has grown strongly as a group. Werfen is still reviewing APS and has made an initial payment. Both relationships are developing and we expect larger agreements with upfront and milestone payments as they advance, but the early projects are the current focus and we'll update as they progress.

Our next question comes from the line of Steven Ralston with Zacks.

My first question concerns the progress of the prospective clinical study at the Hospices Civils de Lyon. They placed their first commercial order for their internal validation process. How is that process going, and does Volition need to wait for the reimbursement dossier to be completed for an additional order? Or is there a possibility it could be an order through funding such as the MERRI G03 allocation process?

Okay. Steven, there's a couple of things going on with the Lyon team. Firstly, from a clinical study point of view, they have a final clinical validation study called Ulysses MAP, and that is ongoing. Recruitment has been completed and the study now plays out because it's a longitudinal study. We hope to report that study later this year at ESMO 2026. So that's the clinical study. In terms of the certification of the product for use at the hospital, that has been completed. So that work has been finalized. In terms of reimbursement, we have compiled and sent into the relevant authorities a clinical compendium for their review and we've requested a pre-submission meeting. We're now just awaiting that pre-submission meeting with the team at Lyon and a couple of other hospitals in France that are supporting the pre-submission meeting for reimbursement. So a lot of work is going on in the background, but we're on track at the moment for Nu.Q Lung Cancer.

Could you talk about the documentation that's being used to support the Nu.Q test in the new in vitro diagnostic requirements for the CE Mark?

I don't have a lot of detail on that to hand, but suffice to say there is a team that has worked on the IVDR submission and all of the documentation has gone alongside that. We haven't yet published some of that information that's going to be used to support the IVDR application because I myself have sight of it today. But the submission for IVDR status is ahead of schedule in terms of our IVDR application, and we'll update you later in the year as that progresses.

That's something which will be very important for us: moving from IVDD to IVDR. As we've talked about, there's a dozen hospital networks now reviewing it for more than 20 different uses beyond the very big ones we've mentioned many times—trauma, sepsis, HS, APS. So moving product regulation from IVDD to IVDR is a very big point for us. As Louise said, we're very happy with how it's going and it's ahead of schedule. Expect to see a lot more of that this year as well.

I see the number of potential licensees and discussions with them has gone up from 10 to 12 according to your latest press release. Could you talk about in general the pathway that leads these companies to initiate discussions with Volition? Is it the clinical papers? Or the symposiums and conferences with posters and presentations? Or are there other avenues? Or is it a mixed bag?

It's a mixed bag. Some are inbound requests. For example, the Capture paper has been downloaded 2,700 times, which generated inbound interest. We've been in discussions with many groups for a while and they've often returned with renewed interest after seeing new data. On the Nu.Q NETs side, publications such as the Mayo paper have progressed discussions substantially. Some engagements are through key opinion leaders, like Professor Evangelos in HS. Some are long-term relationships. Also, recent veterinary developments, such as the feline paper, have renewed interest in vet companies. So it's a mix of inbound interest from publications, conference exposure, long-term partner relationships and outreach. The important point is interest is broad across diagnostic companies, liquid biopsy companies and veterinary organizations. Our job now is to convert that interest into executed deals.

Our next question comes from the line of Ilya Zubkov with Freedom Broker.

I have a question related to the launch of the rNuQ webshop. Could you provide more detail on your plans for developing this online channel going forward? And how should we think about the revenue contribution of this channel?

Good question. We have become experts at making chromatin fragments and recombinant nucleosomes over many years. These are used as controls in assays and in sequencing workflows. We've had inbound interest from groups that need recombinant materials for many uses. We did a market analysis and identified a potentially significant opportunity. Launching the rNuQ webshop was a low-cost way to make these products available to researchers and companies. The webshop offers recombinant nucleosomes that we manufacture in our ISO 13485 certified facility. On revenue, the short answer is we're not sure yet exactly how much the take-up will be. Discover is growing strongly and Vet is also growing. The webshop is another channel to monetize our capabilities. The initial cost to set it up was modest and we plan to add additional products as demand becomes evident. We will update you on revenue contribution in coming quarters, but we do not have projections to release today.

Our next question comes from the line of Bruce Jackson with StoneX.

A couple of questions on the vet space. With the feline milestone, that goes to deferred revenue, correct? And have you received the $5 million payment yet?

You're right, Bruce, that will, when we receive it, go to deferred revenue. We haven't received it yet. We have submitted the paper, which is part of the milestone. When that paper gets published, that's the completion from our end of the milestone deliverables. After that, it will be a matter of time before we collect the milestone payment. But you're correct: when we initially receive it, it would go to deferred revenue.

Okay. And then a question about product revenue for the quarter. What portion of that was from the vet business?

We don't split out the individual pillars at this point. But what I can say is that we've continued to make progress in product revenue sales, so we did see underlying growth there. As I mentioned in the earnings call itself, the big bump did come from deferred revenue, where we recognized $0.7 million as a result of reviewing our revenue recognition in line with our accounting policies and deciding to recognize that faster.

And then is that rate going forward, or is that more of a catch-up type of recognition?

It's partly a catch-up, but the rate going forward will be a bit faster as well.

And we have reached the end of the question-and-answer session. I would like to turn the floor back to Cameron Reynolds for closing remarks.

So thank you all for coming on the call today. I hope it was a good review. Just to reiterate, we are working very hard on the commercialization side. We're in a lot of discussions, and we hope to have a lot of news on that throughout the year as well as on all the product developments, particularly in the Capture and NETs spaces. Thank you very much for all your interest, and we look forward to catching up with you next quarter. Thanks for your time.

Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.