Earnings Call Transcript - VNRX Q3 2025

Operator, Operator

Good morning, ladies and gentlemen, and thank you for joining us. Welcome to VolitionRx Limited's earnings conference call for the third quarter of 2025. This conference is being recorded today, November 14, 2025. I will now hand it over to Louise Batchelor, Group Chief Marketing & Communications Officer. Please proceed.

Louise Batchelor, Group Chief Marketing & Communications Officer

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 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. Cameron Reynolds, Group Chief Executive Officer, will open the call providing a business update. Dr. Jake Micallef, our Chief Scientific Officer, will present research highlights from across our product pillars. Terig Hughes, our Chief Financial Officer, will then provide a financial report before handing back to Cameron to close with a discussion of 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 Cameron.

Cameron Reynolds, Group Chief Executive Officer

Thanks, Lou, and thank you, everyone, for joining Volition's Third Quarter 2025 Earnings Call today. We very much appreciate your time given the busy earnings season. 2025 efforts for Volition have focused on commercializing our groundbreaking Nu.Q platform in the human diagnostic market, and we were excited this quarter to sign not 1 but 2 agreements, a research license and exclusive commercial option rights agreement for antiphospholipid syndrome, APS, with Werfen and a co-marketing and service agreement with Hologic. Both are multibillion-dollar companies and worldwide leaders in their specialized fields, and we are delighted to report that both have very much hit the ground running. Now taking each in turn. Werfen is a global leader in the field of in vitro diagnostics for hemostasis and thrombosis, among others, where neutrophil extracellular traps, NETs play such an important role. And of course, we have the only approved test to measure NETs. So this agreement fits extremely well into our strategy of leveraging the installed base of machines, specific disease knowledge and customer reach of our partners, combined with our unique NETs platform. Under this agreement, Werfen will gain access to the components of Volition's proprietary Nu.Q H3.1 NETs assay and will investigate its clinical utility in the management of APS patients on its platforms. Werfen also has an option to negotiate terms with Volition for it to launch the product commercially under an exclusive license. We have already successfully transferred the Nu.Q NETs assay to their ACL AcuStar platform. Early results in NET levels detection in APS patients with Nu.Q test are encouraging. Werfen is excited to validate further and complete a clinical utility study to determine the potential role of this marker as a risk indicator of thrombosis in APS patients, allowing a better management of this very complex syndrome. This could open the possibility to enlarge Werfen's portfolio in APS testing. Just to provide a bit of background about the condition as we haven't previously discussed this in detail. APS is a complex disorder of the autoimmune system affecting around 4 million people worldwide. It causes increased risk of blood clots and their associated complications such as stroke, heart attack, pulmonary embolism or deep vein thrombosis. It is also associated with recurrent miscarriages and pregnancy complications. It is currently diagnosed through a panel of blood tests requiring 2 positive results at least 12 weeks apart and is often a lifelong condition requiring regular monitoring. Emerging evidence suggests increased net formation appears to be a central mechanism in thrombosis in APS and that targeting NET pathways could provide future therapeutic avenues for thrombotic complications. We believe that Volition's Nu.Q NETs test is the first IVD assay being investigated in APS and could provide not only improved diagnostic information to aid clinical decision-making and personalized care, but also a low-cost test to continue to monitor these patients throughout their lifetimes. APS diagnosis and monitoring represents a total addressable market of approximately $85 million annually. So it is a very good early target for our NET platform. It is exciting to achieve this major milestone with Werfen, and we are already working with them on study design, etc. The second agreement we announced this quarter is with Hologic Diagenode for the co-marketing of Volition's Nu.Q Discover service. The Nu.Q Discover service provides drug developers and scientists with a range of state-of-the-art assays for rapid epigenetic profiling in disease model development, preclinical testing and clinical studies from discovery to being market ready. Hologic has extensive experience recording revenues of over $4 billion in 2024 from a large client base and international reach, providing tools to biotech and pharma companies and also to academic and government organizations. We have seen strong growth in interest from our Nu.Q Discover services and believe this partnership with Hologic will further accelerate the expansion of Nu.Q services to a wider base of customers to drive revenue. The inclusion of our nucleosome-based biomarkers in Hologic's portfolio demonstrates a strong validation of their value in clinical development. The Hologic team has really hit the ground running and have already presented the Nu.Q Discover offering at several international conferences, have launched a digital marketing campaign, including emails and LinkedIn advertising and have a webinar planned for next quarter. They have also received a lot of inbound interest from existing customers, so definitely an exciting start to what we hope will be a long and fruitful relationship. We are continuing our discussions with around 10 of the world's leading diagnostic and liquid biopsy companies and are at various stages of this process across our different pillars, ranging from due diligence to tech transfer to evaluation of clinical samples to term sheet and contract negotiations. We are very confident of further licensing deals with a range of large companies, and we'll update on progress as they are completed. We believe that our positive emerging clinical evidence supports the broad applicability of our Nu.Q technology in critical areas such as cancer and sepsis, including as a biomarker of interest to epigenetic drug development and expanding area of focus for big pharma. Beyond licensing, as discussed on our previous calls, another prong of our Nu.Q NETs commercialization strategy is to leverage our granted CE Mark approved in the EU for any NETosis-related diseases with the product under evaluation in 14 hospitals in 5 European countries. As Dr. Andrew Retter has discussed on previous calls, NETs are implicated in a wide range of diseases. We anticipate the presentation and publication of results regarding the clinical utility of the Nu.Q NETs H3.1 assay across a range of diseases in the coming months and quarters. So please keep an eye out. In fact, we have made significant progress on several publications in recent months and anticipate peer-reviewed publications across all pillars in the coming quarters. One such paper just recently submitted for peer review concerns our groundbreaking Capture-Seq technology. We believe the ability to concentrate chromatin fragments and therefore, tumor DNA has the potential to be a game changer in the liquid biopsy field. It is an exciting prospect from a licensing perspective, and I am pleased to report that we are currently in active discussions with third parties. But to provide more detail, I'm delighted to pass over to Dr. Jake Micallef, our Chief Scientific Officer, to share a more thorough update on scientific and clinical progress. Jake?

Jacob Micallef, Chief Scientific Officer

Thanks very much, Cameron, and good morning, everyone. I'd like to start by providing a little more color and detail to the Capture-Seq project. We've recently submitted a paper on this describing an entirely new liquid biopsy method to analyze blood samples to find DNA from cancer cells. This is not a new way to target the same cancer-derived DNA targeted by other tests. Instead, we target an entirely new class of cancer-derived DNA. This represents an entirely new class of cancer biomarkers with hundreds or possibly thousands of new targets, all of which are ignored by current methods. We have isolated this previously ignored DNA from blood and removed the background DNA. This is important because background DNA is the single biggest problem in current liquid biopsy methods and nobody has ever previously managed to remove this background; however, our new method isolates just the DNA we are looking at with 180-fold concentration. That's an 18,000% enrichment and removes more than 99.5% or almost all of the background DNA. This is a great result, but it would be easy to throw away the baby with the bathwater. That didn't happen. We retained 48% of the target material for analysis with almost all the background DNA removed. This is the first. It's never previously been achieved in liquid biopsy. Our new Capture-Seq method is extremely exciting, and I personally believe it may become commonly used worldwide, both in the detection of cancer and in cancer patient management. The focus of the paper we've submitted is scientific rather than clinical and showcases what we believe is a revolutionary new liquid biopsy method for detecting cancer DNA in blood. So how is it revolutionary or different from existing biopsy methods? Well, the vast majority of DNA circulates in the blood as nuclear proteins called nucleosomes, and most of this is actually background; however, small amounts of DNA also circulate bound directly to epigenetic regulators called transcription factors. And this DNA, as I say, it's ignored by present methods is our target. Some transcription factors bind to different DNA locations in the genome or DNA sequences in the cells of cancer patients; however, their isolation from blood has never previously been successful. And consequently, the different transcription factor binding that occurs in cancer has never previously been measured in blood samples. We have now succeeded in isolating transcription factors from blood plasma and found hundreds of transcription factor bound DNA sequences in the plasma of cancer patients that are not present in the plasma of healthy people. As I said, these new sequences represent an entirely new class of cancer biomarkers with hundreds or maybe thousands of new targets available to science for the first time, and Capture-Seq is an entirely new way to analyze blood samples to find them. So the next step was then to establish a proof of concept for cancer detection by transcription factor occupancy measurement in blood using Capture-Seq. The technical details will be published in the paper when it comes out, but the transcription factor we've worked on is called CTCF, and we've shown in a small number of patients that a panel of plasma CTCF ChIP-Seq results identified patients with cancer with 100% sensitivity and specificity. In lay terms, we detected all the cancers with no false positives. That was very encouraging, and we have good reason to believe Capture-Seq will be accurate and economical in routine use. Although we focused on one particular transcription factor, CTCF, this may be a pathfinder for many other similar tests using other transcription factors that are important in particular cancers. An easy example would be the estrogen receptor as a transcription factor in breast cancer. And perhaps most importantly, this new transcription factor DNA method may be used alone or in combination with other existing methods to bring multi-omics cancer DNA testing to patients for patient management and for early cancer detection. As Cameron mentioned, we're in many confidential discussions, and this is certainly proving a hot topic. So scientifically, a great step forward and hopefully, one which will translate into real-world clinical benefits for patients. We will, of course, update you more fully once the paper is out. I also wanted to take the opportunity to update you on a few other Q3 activities. I was very fortunate this quarter to visit our key collaborators in our lung cancer product development programs. In August, I met with Professor Chen and his team as well as the screening program leaders at the National Taiwan University Hospital in Taipei. During the visit, the IDS-i10 analyzer, which is the automated platform for our tests, was installed in NTU's laboratory and training was provided by 2 of our team to progress their validation study for lung cancer screening. They've also performed some analysis regarding use of the Nu.Q H3K27 Tri-Methyl test in prognostication of diagnosed lung cancer patients in studies similar to our previous collaborative studies in France. I also visited our colleagues in France who are continuing their work using Nu.Q H3K27 Tri-Methyl in lung cancer, and they're now expanding into other cancers. The clinical lung cancer patient management results in France are consistently excellent, and we're preparing for the introduction of Nu.Q H3K27 Tri-Methyl test in clinical practice in a group of hospitals in France. There will also be quite a few upcoming publications in cancer in the near future. In August, we also published a paper showing the utility and reliability of our Nu.Q NETs assay, and we expect further publications from ourselves and from collaborators over the coming months in NETs. So a lot of activity. And with that, I'll hand over to Terig for the finance.

Terig Hughes, Chief Financial Officer

Thanks, Jake, for that thorough and exciting update. Now on to the finance report. Revenue for the third quarter grew 32% over the same quarter last year, coming in at $0.6 million. At this early stage of commercialization, revenues remain fairly lumpy and difficult to predict from one quarter to the next. So we will not be providing revenue guidance at this point in time. Operating expenses for the quarter were down 10% year-on-year and down 18% for the first 3 quarters, primarily reflecting lower personnel costs and lower research and development expenses. As a result of strong cost management, net cash used in operating activities was $3.6 million for the quarter, down 33% over the same period prior year. Net loss was down 8% for the quarter and down 20% for the first 3 quarters compared to the prior year. Receipts during this third quarter included $1.2 million from a registered direct offering, which included participation by some of our directors. And subsequent to quarter end, we received net proceeds of approximately $6.1 million from a confidentially marketed public offering, including partial exercise of the underwriters' overallotment option. This raise also included insider participation, demonstrating once more strong managerial commitment. So to summarize the quarter, revenues were higher by 32% versus prior year, total operating costs lower by 10%. Cash used in operations was lower by 33%, net loss improved by 8%. And as Cameron reported at the top of the call, we are excited to have signed our first agreements with Werfen and Hologic. One of our key financial goals is to be cash neutral, meaning income, including licensing receipts, matches expenditure on a cash basis. We have made significant progress on cost reductions. However, to fully realize our ambition, we need to execute several significant licensing agreements in the human space and secure existing milestone payments in the vet space. I'm happy to say we continue to make solid progress against each of these targets. And with that, I will pass back to Cameron for closing remarks.

Cameron Reynolds, Group Chief Executive Officer

Thanks, Terig. Before summing up, I'll provide a quick update on Nu.Q Vet. Expanding the global reach of our Nu.Q Vet cancer test remains a key priority, enabling veterinarians worldwide to improve canine cancer screening and outcomes. Our supply agreements with leading industry players, including Antech, part of Mars Science and Diagnostics, Fujifilm Vet Systems and IDEXX are instrumental in achieving this. To further accelerate revenue growth and ensure consistent delivery, we are focused on centralized lab automation. At the end of the first quarter, Fujifilm Vet Systems expanded their contract with us to validate and then implement a centralized automated platform using the IDS-i10 analyzer. I am delighted to report that the Fuji team have made great progress this quarter in validating and verifying the Nu.Q Vet cancer test on the automated platform. We believe the automation of centralized labs is crucial to accelerating our growth rate. So this is a particular area of focus for us. We aim to enable all our large customers to be automated so that they can easily and effectively handle the much larger numbers of tests that would result from having our tests in annual pet wellness panels. Putting our tests into wellness panels would greatly increase sales volumes and will be a key target for 2026. Notably, this automated 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 technology. Terrific work from the Fuji team who continue to see steady growth in the use of the Nu.Q test in Japan. On the research and development front, we continue to make progress towards securing the final milestone payment of the $5 million related to our feline cancer product. In the second quarter, a peer-reviewed paper regarding pre-analytics was published, and we plan to present and submit for publication clinical data in the coming months. In drawing the call to a close, our goal is to secure a wide range of licensing agreements in the human diagnostics space, mirroring our successful strategy in the veterinary market and anticipate similar to the veterinary market, diverse deal structures with potential for upfront and milestone payments and future recurring revenue. We believe we have developed a unique and widely applicable platform that will be a big part of both oncology and NETosis for decades to come for hundreds of millions of people and animals worldwide. Cancer and sepsis diagnostics alone represent a combined total addressable market of approximately $25 billion annually, offering substantial revenue opportunities for Volition and our partners. I believe that these next few quarters will be transformative for our company. Our laser focus is on executing license agreements, and we will update you as they complete. Thank you for joining the call today. We very much appreciate it. We will now take your questions.

Operator, Operator

Our first question is from Justin Walsh with JonesTrading.

Justin Walsh, Analyst

Can you provide some additional color on the size of the antiphospholipid syndrome market and how it compares to other potential Nu.Q NET applications you guys are looking at?

Cameron Reynolds, Group Chief Executive Officer

Yes, Justin, thank you for the question. The NET market is immense, with significant areas like sepsis and AKI being the largest. We're pleased to start our program with these major diseases. There are approximately 4 million people affected by APS, making it a substantial market to enter, even if it's not the largest. We estimate the total addressable market to be around $85 million to $90 million annually. Autoimmune diseases are critical for various reasons and pose diagnostic challenges, so we believe this is an excellent starting point. The current diagnosis methods are quite inadequate and closely related to NETs. Revvity is already offering our assays in Europe, with analytics covering 21 different applications beyond APS. This initial market is sizable, and we anticipate developing a range of additional applications.

Operator, Operator

Our next question is from Yi Chen with H.C. Wainwright.

Yi Chen, Analyst

My first question is, could you tell us whether the Werfen partnership has made any contribution to the third quarter revenue? And also, how do you expect the Werfen and the Hologic partnerships to shape the top line revenue trend in 2026?

Cameron Reynolds, Group Chief Executive Officer

Werfen has not contributed to revenue yet as they are currently validating it on clinical samples for clinical utility. They have made significant progress, and I believe we will establish a broader agreement with them. They have successfully implemented our solution on their machine, which is one of the leading systems in the autoimmune coagulation space, indicating they will play a crucial role in our future endeavors. Our strategy has always included utilizing various platforms, and companies like Werfen, Sysmex, and Hologic are ideal starting points. All of these are major multibillion-dollar firms specializing in specific segments of the NETosis market. Werfen is the first to make substantial progress, and I anticipate an expanded partnership with them. Regarding Hologic, I am pleased to announce they have made their first sale. While this won't be reflected in the previous quarter's revenue, it will contribute to this quarter's figures. We are thrilled with our collaboration with Hologic, which, as you know, is a large multibillion-dollar company that is enthusiastic about our epigenetics products. They have showcased our offerings at several conferences, engaged in extensive marketing, trained their staff, and visited our labs in Belgium and California for a deeper understanding. With their first sale happening now, both partnerships are vital for our growth. The positive outcomes of these agreements also encourage discussions with other potential partners, making our collaborations with large companies impactful. Overall, I am very satisfied with the arrangements with both Werfen and Hologic, and as previously mentioned, we are actively engaging with several other parties. I strongly believe the NETosis test, particularly in oncology, will see widespread adoption globally in the near future, marking the beginning of a process that we expect to expand significantly in the upcoming months and quarters.

Yi Chen, Analyst

Got it. And with respect to those ongoing discussions with additional partnerships, how many do you expect to close in 2026?

Cameron Reynolds, Group Chief Executive Officer

I think we've struggled with predicting the timing of our deals. It's always challenging as these deals are crucial for us. However, for the largest companies, the pace can fluctuate. I expect to see a number of deals in the pipeline. We are currently in active discussions, some of which are nearing completion. While it's difficult to determine the exact timing, I would be surprised if we don’t see several more deals this year and next. My confidence stems from our NETosis test, which is the only method we have for measuring NETs. NETs represent a significant opportunity as they are linked to numerous medical conditions. In oncology, our Nu.Q platform for H3.1 and H3 K27 is our top product in the veterinary market and is gaining traction in the lung market in France and Taiwan, with plans to expand to other countries. Additionally, Dr. Micallef has made a breakthrough in concentrating chromatin, which is a critical advancement in oncology, especially since targeting in the liquid biopsy space is rare. By focusing on transcription factors, we're tapping into a vital area of epigenetics. Given all these developments, I am optimistic about securing more partnerships. We have something unique, but as we've mentioned before, it's a larger endeavor than we can handle alone. The initial partners have recognized this, and interest is increasing among other companies. As we continue to sign new deals, it becomes easier to attract more partners due to our growing credibility and track record.

Operator, Operator

Our next question is from Steven Ralston with Zacks.

Steven Ralston, Analyst

First of all congratulations on the traction you gained on the revenue line in the products and also on the significant reduction of expenses this quarter. And I'd like to dig into both of those. First of all, can you give some sort of breakdown of the product revenues? I know it consists of the Nu.Q Vet test and the Discover kits. In the vet, was there any like stocking for Fuji? Or was there some lumpiness in the Discover side?

Terig Hughes, Chief Financial Officer

So this is Terig, Steven. Yes, there is still a lot of lumpiness, which makes it a bit difficult to predict and then discover is very project-based. So that's up and down each month and each quarter. What I would say is that, as you can see, both services and product revenue had a very good quarter. And on the pillar side, every pillar made some progress, and we'd expect to continue to make progress through the balance of the year. We don't provide individual growth numbers for the individual pillars. But I do expect that we'll see growth across all the pillars through the full year.

Cameron Reynolds, Group Chief Executive Officer

And just one thing, Steven, to keep in mind as we go through them one by one. In the veterinary market, we are the largest seller of oncology tests, but we want to significantly increase our volume into the millions of tests and generate tens of millions in revenue. That won't happen until we have a centralized lab machine operational. However, as you've heard, we achieved that milestone this month with Fuji validating the i10. Currently, the platform operates on microtiter plates, which function adequately, but conducting hundreds of thousands of tests on plastic plates is not straightforward. The i10's functionality, produced by Revvity, a large multibillion-dollar company, is a significant advancement for us. In the coming year, we will focus on encouraging major companies to automate their processes, which opens up the potential for our tests to be included in wellness panels. If we see the big companies integrating these panels, it indicates a positive upward trend in our efforts so far. We're very enthusiastic about that. Nu.Q Discover has exceeded our expectations, attracting numerous clients for various applications, including research and commercialization. Hologic acquiring their first customer is particularly exciting as they have more resources than we might ever possess, and they are highly motivated about this collaboration. Regarding Nu.Q Net, the larger companies involved have substantial milestone payments, which take time. Meanwhile, we have established a presence in Europe with 14 hospital networks utilizing the system across five countries for 23 different net-related applications. They are currently working to establish a cutoff for each application, but we anticipate them starting to utilize it clinically in the coming year. This should lead to a significant uptick in distribution thanks to Revvity's involvement. We expect the first clinical use of our oncology platform in France to take place in Lyon within the next quarter or two. Overall, we have a lot in motion, and while it often requires some luck, we are optimistic that progress will materialize in the next few months and quarters. We're eager to see significant growth in the veterinary sector, the Discover area, the net space, and the lung space. We are doing everything possible to transition from steady organic growth to substantial momentum, which is our goal. Does that make sense?

Steven Ralston, Analyst

I would like to explore the revenue aspect further because, as an analyst, I need to conduct financial modeling, and I'm examining it by product line and their addressable markets. I understand that revenue is currently at a very early stage, but thinking about the long term, more than 80% of the revenues this quarter came from the product line. Based on accounting standards, segments typically break down when they exceed 10%. Do you believe there will come a time when you will break down revenue to show product lines, such as in the veterinary space and Discovery, with each of your pillars having its own revenue line or subsegment revenue line?

Terig Hughes, Chief Financial Officer

Yes. I think as the pillars develop and each revenue line becomes more significant, it would make sense to provide that level of detail. Currently, each pillar is still relatively small and somewhat inconsistent. For the foreseeable future, I think this is how we'll report it. However, if we start to see substantial growth, such as in the vet space if it gets adopted into the wellness plans and takes off, I believe it would be beneficial to report that pillar separately or similarly for others when they reach certain milestones. In the meantime, we’re happy to provide more insight on these calls, but we won’t be splitting that out further at this time.

Cameron Reynolds, Group Chief Executive Officer

To clarify, while product revenue is significant in the short term, we view it as primarily a means to demonstrate proof of concept and prepare for licensing. If NET becomes a global leader by 2030 or 2032, we could see hundreds of millions of tests annually as the total addressable market for NETosis. However, we don’t intend to sell that product ourselves or build a sales force. Our strategy involves working with partners and licensees to validate its efficacy. As the market expands, our role will diminish, and our revenue will derive from key components, royalties, and licensing rather than direct sales. Initially, we will focus on product sales to showcase our innovation, which will be relatively smaller in scale. Nevertheless, I'm very excited about the potential in both the oncology and NETosis sectors, as we anticipate that once demand escalates, licensing revenue will surpass product revenue, given the extensive reach of larger companies. Does that make sense, Steven? Hence, we expect a shift from substantial product revenue to dominant licensing revenue as things progress as we envision.

Steven Ralston, Analyst

Moving on to the expenses. The year-over-year and sequential improvement was dramatic, much more than I expected. I had an indication that the relative expenses for the second quarter would be the baseline, but you made a significant jump in the third quarter. This also marks about a year since you announced the cost-cutting program. Do you think you’ve reached the end of the cost-cutting efforts, and is this more like the new baseline, or can we expect more changes?

Terig Hughes, Chief Financial Officer

So I would certainly say it gets more difficult to beat the prior year because we started making progress in the third and fourth quarter of last year on the cost savings program. And so you're battling against a tough comparative. But yes, I certainly hope that we can continue to make progress, but it may not be as steep as we made year-to-date.

Cameron Reynolds, Group Chief Executive Officer

We've been attentive to our investors. While raising money in a challenging market, we've developed some remarkable technologies, but we must save every penny. Terig has excelled at managing expenses. However, achieving success isn't solely about cutting costs; we need to deliver deals and products, which we are currently doing. We've significantly reduced our workforce and expenditures while launching a range of products. Balancing these elements is a daily challenge. The key difference now lies not in cost-cutting, but in securing deals, licensing agreements, and sales. We cannot let our expenses escalate; we must keep them under control, especially given the difficulty of raising capital. We aim to do as much as possible while ensuring delivery. It's all about finding the right balance.

Steven Ralston, Analyst

And last question, and hopefully, this is a short one. I noticed that in a recent conference, it was mentioned that some preliminary results from the ongoing lung cancer study were presented. Was there any new information there?

Cameron Reynolds, Group Chief Executive Officer

No. There's actually a lot that will be presented at the conference in Chicago in December. North American...

Steven Ralston, Analyst

No, this is the one...

Cameron Reynolds, Group Chief Executive Officer

In Chicago, yes. No, they're making progress. There's a lot of new data being presented, and we anticipate it will soon be in routine use. This will be the first time our test is used routinely in humans in the near term. The Taiwanese have also done substantial work. So expect to see it later this year and early next year, but I believe there is nothing new in that process. However, they are very active and working on a significant amount of tasks. That's our basic Nu.Q platform, and we hope to expand into slightly more complex areas of capture and processing, both of which are progressing well.

Operator, Operator

Our next question is from Bruce Jackson with the Benchmark Company.

Bruce Jackson, Analyst

So if we could start with the question about the agreements with Werfen and Hologic. I understand those terms were confidential, but could you provide a general idea if there were any upfront payments included in those agreements?

Cameron Reynolds, Group Chief Executive Officer

Yes, they were in Werfen, not as we've said, we start smaller and we expect them to get bigger and bigger with every deal. But yes, there were upfront payments and ongoing payments from Werfen. So to the earlier question, there were some not product income from them, but Werfen did have some upfront. I can't discuss that too much more. They're confidential, but yes, they were, and they are ongoing. And Hologic, it's a co-marketing, so it's not upfront, but they are very active and have made their first sales, so it will contribute to our revenue in the short term.

Bruce Jackson, Analyst

Okay. And then second question, the milestone for the feline cancer testing, where do you think that might hit?

Cameron Reynolds, Group Chief Executive Officer

We are currently finalizing the last components, which has taken longer than anticipated. It is not easy to find caps for cancer testing, but we are making progress. According to our agreement, the timeline is defined, but it isn’t something we can publicly disclose yet. Once the paper is published, we can discuss the next steps. Terig, would you like to elaborate on this? I'm not certain about the details.

Terig Hughes, Chief Financial Officer

Well, what I would say is that the conditions to meet the milestone that we need to get a paper published and then the payment follows thereafter depending on, again, either the launch, the first commercial sale of a test or there's also a timeline by which they have to pay to us. So what we'd hope that once we've completed the study, got the paper published, that shortly after that, we would be looking for that milestone payment to be paid.

Cameron Reynolds, Group Chief Executive Officer

It's up to finishing the paper. And as you know, it takes some time sometimes. But I'm very hopeful we are close to getting that across the line. And then yes, then we're in a position to ask for that payment.

Bruce Jackson, Analyst

So publishing the paper triggers the milestone. Is that correct?

Cameron Reynolds, Group Chief Executive Officer

That's correct.

Bruce Jackson, Analyst

Then last question. Were there some Series A warrants that were milestone-based? Has that milestone been met with the announcement of the agreements? What are the conditions for that?

Cameron Reynolds, Group Chief Executive Officer

The conditions were an aggregate of milestone payments, which is higher than the milestone payments that we have. So it has not been triggered yet.

Operator, Operator

There are no further questions. I would like to turn the conference back over to Cameron for closing remarks.

Cameron Reynolds, Group Chief Executive Officer

Thank you all for joining the call today. I truly appreciate your time. There is a lot happening at Volition across all our areas. The current market is challenging for our shareholders, and we acknowledge that. We are focused on delivering what is necessary for our success. We are making significant progress, particularly in the veterinary market with our i10, which has been validated for centralized labs. We anticipate this development will encourage others to adopt centralized labs and wellness tests, potentially transforming our revenue in the veterinary sector. In Europe, we are advancing with the Nu.Q NETs through our excellent partners at Revvity, who are now selling them to 14 hospital networks. They are working on cutoffs for various uses of NET. We also signed our first two human deals in the NET space, beginning with APS, which has a market potential of around $85 million to $90 million. While this is a solid start, we expect even more progress. Jake has submitted a publication on the capture side, which is exciting news. We are making strong strides in lung cancer detection in France and Taiwan, and we anticipate its initial clinical use in the near future. There's a lot going on, and I want to thank you all for your continued interest in the company. Expect more updates on all these fronts in the coming months as we work on our commercialization plans. Thank you once again for your time today.

Operator, Operator

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