OBD Oxford Biodynamics Plc

For further details please contact:

 

Oxford BioDynamics Plc	Tel: +44 (0)1865 518910
Iain Ross Executive Chairman Paul Stockdale, CFO
Shore Capital - Nominated Adviser and Broker	Tel: +44 (0)20 7408 4090
Advisory: Stephane Auton / Lucy Bowden Broking: Fiona Conroy
OAK Securities - Joint Broker	Tel: +44 (0)20 3973 3678
Jerry Keen / Henry Clarke / Damion Carruel
WG Partners - Joint Broker	Tel: +44 (0)20 3705 9330
David Wilson / Claes Spång / Satheesh Nadarajah / Erland Sternby
Camarco - Financial PR	Tel: +44 (0)20 3757 4980
Marc Cohen / Tilly Butcher / Fergus Young	OBDFinancial@camarco.co.uk

 

Executive Chairman's letter to shareholders

Background

On 16 December 2024, following an approach from the Oxford BioDynamics Board, I joined the Group, agreeing to do so on the basis that Vulpes Testudo Fund would provide a shareholder loan to the business for up to £1m whilst an immediate emergency fundraising was undertaken. I agreed to lead the fundraising because it was clear to me that this business has some potentially very valuable assets, which provide highly effective and unique solutions to health problems affecting millions of people worldwide, and some first-rate personnel. However, I believe mistakes had been made over the recent past that have contributed to a failure to deliver shareholder value.

I am pleased to report that in early January 2025 the Company announced it had raised £7.35 million (before expenses) and, following shareholder approval at the General Meeting held on 31 January 2025, I was appointed to the Board as Executive Chairman.

To start with, I want to thank our existing shareholders, many of whom, understandably, voiced their frustration and disappointment during the roadshow regarding the Company's progress. Your continued support is appreciated.  I also want to warmly welcome the new investors who have joined the register.

Focus and Realism

My remit is to turn this business around, recognising its valuable assets and its potential to become a significant player in the international diagnostics market. The challenge is to bring some focus and realism into the way we operate going forward and ensure we avoid the financial position in which the Group found itself at the end of 2024. I don't intend to comment on how this situation arose: a summary of the year ended 30 September 2024 is provided in the financial review which follows. 

In terms of focus and realism, one immediate aspect to which I would draw your intention is that, whilst recognising our intellectual property (IP) remains critical and is a bedrock of this business, we have included in the financial statements the impairment of selected patent assets, reflecting the decision to focus short-term resources on the Group's most advanced assets. I want to recognise the scientific excellence within the Company which has provided us with a valuable portfolio of assets, each of which is cutting edge and could result in improving and saving patients' lives. However, I also recognise that, in order to achieve our objectives, we must be financially pragmatic going forward.

Where do we go from here?

As Executive Chairman, my ultimate objective is to structure and operate the business to optimise shareholder value. In conjunction with the management team, I am undertaking a review of the operational aspects of the business in order to make it more commercially focused and market orientated.  

There will undoubtedly be some difficult decisions to make and along with a careful review of the current cost base, my goal is to ensure the business is 'fit for purpose' and well-positioned for success. To date there have been aspects of the business where the Group has had to take a "go it alone" approach, particularly in the USA, to drive adoption which is laudable, but in my opinion difficult to sustain for a business of our size. I recognise that whilst many good things have been achieved, the Group's commercial goals in terms of test sales have proven unrealistic and not been delivered.

Partnership & Collaboration

Going forward, the company intends to focus more on establishing partnerships and collaborations, across all geographies, as a way of securing commercial and financial success. As necessary, we are prepared to sacrifice upfront value, enter early partnerships and thereby increase the probability of success by working with third parties to accelerate the commercialisation of our assets. If we need to out-license a key asset or enter into an early-stage collaboration to share costs and fund this business, we will do, as we work towards our mission of creating and enhancing sustainable shareholder value. I am acutely aware of the risk and rewards associated with entering into partnerships, but I am also fully aware that our shareholders are looking for a return on their investment and to date, this has been sadly lacking.

At the time of writing, we are not ruling out anything and by way of example we are carefully weighing up the pros and cons of the competitive environment in which we operate, the current commercialisation strategy, and the urgent need for third-party validation. I recognise that OBD's 3D genomics KnowledgeBase and the contacts established with pharma and biotech partners over the years since the Company's inception offer significant potential value, but we need to accelerate the exploitation of this to our advantage.

To be clear, we are not starting with an empty page as there have been, and are, many good leads and ongoing third-party discussions. However, I intend to instil focus and a sense of urgency into the business to bring these opportunities to fruition. Whilst generating increasing revenue is an absolute priority, we will also seek to raise the external profile and awareness of Oxford BioDynamics and its assets amongst all facets of society including the scientific, academic, governmental and industrial communities and, where applicable, the general public.

In the last month we have seen the results of a multi-institutional clinical study published in the peer reviewed journal 'Cancers' confirming the efficacy of OBD's EpiSwitch^® blood-based No-Stool Test (NST) for accurate detection of early-stage colorectal cancer and pre-cancerous polyps; the announcement of a commercial partnership with Regina Maria,  Romania's largest private healthcare provider, serving 5 million patients and a highly publicised visit by Prostate Cancer Research's new ambassador the Right Honourable Rishi Sunak MP to our facilities in Oxford.  

Board Evolution & Independence

There is little doubt that the last twelve months has been very challenging for the OBD Board and Management as well as the Group as a whole and as we move forward, we need to recognise the efforts of those concerned. The Board, chaired by Matthew Wakefield, has, for the last four years, been unstinting in its efforts to support Management and raise funding for the business.

 

Matthew, in particular, has dedicated himself to steering the Company through some turbulent times in the recent past, but he has indicated, having recruited me and played his part in the recent successful fundraising, that now is the right time for him to step down from the Board prior to the forthcoming AGM at which the directors will be re-elected. I want to thank Matthew personally and on behalf of the Company for all his efforts, for recruiting me and for agreeing to assist me with the ongoing transition.

As I said on the fundraising roadshow - as Executive Chairman I want provide shareholders with optionality going forward such that they can decide either to continue to build and invest in the business or exit it for its true value in due course. The reality is that Oxford BioDynamics is a small player, albeit with a big ambition, but it has yet to prove its worth. I look forward to working with the Board, the management team, the staff and all stakeholders to realise true market value for the Company.

Iain G Ross

Executive Chairman

Oxford BioDynamics Plc

27 February 2025

Financial review

The Group's performance in the year ended 30 September 2024 and its position at that date reflected slower growth in revenues than expected following the launch of the EpiSwitch PSE test in September 2023 and increased fixed costs as a result of the Group's investment in staff and marketing to support its test products. This investment did not generate sufficiently rapid growth in sales to reassure the market and ultimately the Company's revenues from sales of its tests, whilst increased compared to the prior year, were too low to prevent the urgent need for the recent highly dilutive fundraising. The Group's loss before tax for the year ended 30 September 2024 was £11,956,000 (2023: £11,411,000).

 

EpiSwitch PSE

The Group's EpiSwitch PSE test was launched shortly before the start of the year ended 30 September 2024. During the year more than 700 tests were ordered by c.400 organisations worldwide. Post-year end orders have continued to increase, with over 500 tests sold in the four-month period to the end of January 2025.

 

The test is performed in OBD's CLIA^†- and ISO-accredited clinical laboratories in the US and UK respectively.

 

Following the launch of the test, the Group invested in targeted online marketing which, alongside a small sales team, would support PSE. From August 2024, this team was supported by the internal transfer of a number of sales managers who had previously been concentrating on growing sales of EpiSwitch CiRT. The level of spend on online advertising for PSE was significantly reduced shortly after the year end and the Group is continuing to monitor the impact of this reduction on sales of the test, particularly to new clinics or doctors.

 

EpiSwitch PSE benefits from:

·    a unique CPT-PLA^‡ code (0433U), enabling reimbursement by US insurers. Reimbursement for the test is regularly received from a growing number of US insurers including Medicare, Humana, United Healthcare and Aetna.

·    distribution agreements with Goodbody Clinic in the UK, KZT in Turkey and Regina Maria in Romania

·    direct agreements with organisations and concierge clinics that pay for the test on a 'cash pay' basis, such as The London Clinic in the UK and Doctors Studio in the US

·    endorsement from key opinion leaders such as Garret Pohlman, MD. Dr Pohlman has used over 175 PSE tests to date, sharing real world evidence of how he has used the test in his Nebraska clinic in early January 2025. Dr Pohlman estimates that since adopting the test he has been able to reduce the number of biopsies performed in his clinic by 50% and streamlined his clinical practices

 

Sufficiently rapid, significant growth in the number of PSE orders is most likely to arise from agreements that can generate large volumes without investment by the Group in, for example, large sales teams. To this end, the Group is focusing on seeking both agreements with large customers (such as UK insurers) and distribution partners for the test. The company has reached a commercial agreement with Regina Maria Private Health Network in January 2025, Romania's largest private healthcare provider, serving 5 million patients, to provide access to both EpiSwitch PSE and EpiSwitch CiRT tests.

The potential for PSE to be used as part of a screening programme for prostate cancer was highlighted in a recent Prostate Cancer Research (PCR) report. Analysis by PCR and Deloitte in the report suggested that a population-wide screening programme utilising a test such as PSE alongside PSA and before MRI and biopsy would deliver net benefits (to individuals, the health and care sector and society as a whole).

EpiSwitch CiRT

EpiSwitch CiRT accurately identifies patients who will respond to immune checkpoint inhibitor (ICI) therapy with a binary result (responder vs. non-responder), supporting oncologists in first-line treatment planning and making more informed treatment decisions when no benefit or disease progression is observed, or adverse events occur. The test can also identify as candidates for ICI therapy patients for whom other options have been exhausted or who other less accurate tests suggest will not respond to treatment with an ICI.

 

CiRT was launched in February 2022, with initial orders coming from early adopter oncologists. The Group initially focused on growing sales through 'peer-to-peer' marketing, facilitated by a team of salespeople. This approach had limited success relative to the costs incurred, but did generate initial evidence of the use and utility of the test. During the year, following the appointment of Dr Ryan Mathis to lead the CiRT vertical, the Group adapted its approach for growing CiRT in two main ways:

 

·    Inclusion in US physicians' guidelines (such as those of the National Comprehensive Cancer Network (NCCN)), which will be key to generating wider uptake of the test. To support an application for CiRT's inclusion in the NCCN Guidelines, the Group initiated the PROWES Registry Study, a prospective observational study involving up to 2,500 patients at up to 12 sites across the US. The Group is able to claim reimbursement for tests processed for patients enrolled into the study as normal under the test's unique CPT-PLA^‡ code but also incurs additional per-patient and per-site costs in the administration of the study.

·    With the majority of CiRT orders now coming from sites participating in PROWES, the Group was able to reallocate several members of the CiRT sales team to work on PSE, from September 2024.

 

The Group is currently developing an early application for guideline inclusion and in this context was pleased to note the presentation of real-world evidence of the clinical utility of CiRT in a cohort of patients with liver (hepatocellular) and gastrointestinal (GI) cancers by Georgetown University Medical Center at the American Society of Clinical Oncology Gastrointestinal Cancers Symposium (ASCO-GI) in January 2025.

 

There were over 670 CiRT orders in the year ended 30 September 2024. This represented a 30% increase on the prior year. However, as noted above, most volume currently comes from sites onboarded to the PROWES study.

 

CiRT tests are currently processed in the CLIA-accredited facilities of the Group's partner laboratory, Next Molecular Analytics, and in the Group's UK clinical laboratory.

Financial performance

Together, sales of the Group's clinical tests generated revenues of £0.4m (2023: £0.2m). Revenue from tests reimbursed by US insurers has effectively been recognised only on final receipt, which delays revenue recognition relative to test performance and cost of sales. Total revenues in the period were £0.6m (2023: £0.5m).

 

Other operating income was £0.5m (2023: £0.8m), arising from the Group's two Partnership for Advancing Cancer Therapies (PACT) Awards and its participation in the EU-funded HIPPOCRATES consortium (psoriasis and psoriatic arthritis).

 

Overall, the Group's cost base was increased, reflecting additional marketing spend to support PSE and increased headcount, typically in higher cost US-based roles. Higher base salaries were offset by not paying bonuses in respect of the year, such that total staff costs were 1.7% higher than the prior year at £5.5m (2023: £5.4m) even though headcount increased by 13%. Post year-end, the Group reduced headcount in the US and UK as part of its cost-saving activities.

 

Higher depreciation and amortisation (£1.5m, 2023: £1.4m) was driven primarily by the full-year impact of the Group's US clinical laboratory (the UK clinical lab commissioned during the period is in the Group's existing UK office and lab building). Non-cash share option charges were increased at £0.5m (2023: £0.3m), mainly as a result of a significant option award to the former Chief Executive Officer during the period. There was a modest increase in the amount spent on lab consumables in internal R&D (£0.8m, 2023: £0.75m).

 

As noted in the Executive Chairman's message and described in more detail in Note 2 to the financial statements, an impairment charge of £0.9m has been recognised in respect of certain families of patents that were previously capitalised. The write-down reflects the limited resources available for the near-term commercialisation of the patents concerned, although to date no decisions have been taken to abandon any of them. The position will be reviewed at subsequent reporting dates.

 

The significant fair value gain on financial liabilities of £1.4m (2023: fair value loss of £1.2m) arises on the estimation of the fair value of the warrants issued by the Company in 2021 and is driven mainly by the reduction in the share price over the year.

 

Finance income (unchanged at £0.1m, 2023: £0.1m) reflected higher receipts from bank deposits costs, offset by lower foreign exchange gains. Finance costs were increased at £0.5m (2023: £0.2m), driven mainly by foreign exchange losses.

 

Cash

Cash and term deposits at 30 September 2024 were £2.8m (30 September 2023: £5.3m), broadly reflecting £9.1m in net receipts from the equity fundraising in April 2024, the Group's operating cash outflow for the year of £10.6m (2023: £9.1m), net tax receipts of £0.4m (2023: £0.8m), capital expenditure of £0.6m (2023: £0.7m) and lease payments of £0.8m (2023: £0.9m).

 

Capital expenditure during the period mainly comprised spend on patents to support and expand the Company's intellectual property portfolio as well as development costs for the Group's clinical order management system. Property plant and equipment additions were limited, with some spend on lab equipment in the Group's CLIA-accredited lab in Frederick, MD, as well as purchases of office equipment for new starters.

 

Following the year end the Group benefited from an interest-free, unsecured, subordinated loan facility of up to £1m, from Vulpes Testudo Fund (which is controlled by Non-Executive Director Stephen Diggle and which, together with the Vulpes Life Sciences Fund is a significant shareholder in the Company). This facility was critical in permitting the Company to complete the recent equity fundraising referred to in the Executive Chairman's letter. As permitted by the terms of the loan, it was subsequently settled through the issuing of new ordinary shares to Vulpes Testudo Fund as part of the fundraising.

The Group enters the remainder of 2025 with replenished but limited cash resources. The Directors have concluded, as was the case at the previous year end, that material uncertainties exist which may cast significant doubt on the Group and Company's ability to continue as a going concern. Stakeholders' attention is drawn to the more detailed commentary on the Directors' assessment of the reasonableness of continuing to adopt the going concern assumption in the preparation of the accounts in Note 2.

 

Paul Stockdale

Chief Financial Officer

Oxford BioDynamics Plc

27 February 2025

 

† CAP-CLIA regulated laboratories are accredited by the College of American Pathologists as being compliant with the Clinical Laboratory Improvement Amendments, 1988 (42 CFR, Part 493).

‡ A Current Procedural Terminology - Proprietary Laboratory Analysis (CPT-PLA) code is used in the US to report medical and diagnostic services to entities such as health care professionals and payors.

 

CONSOLIDATED INCOME STATEMENT

YEAR ENDED 30 SEPTEMBER 2024

 

		2024		2023
		£000		£000
Continuing operations	Note
Revenue	3	636		510
Cost of sales		(347)		(244)
Gross profit		289		266
Admin expenses comprising:
Research & development costs (excluding staff costs)		(809)		(758)
Staff costs		(5,495)		(5,403)
General & other admin costs		(4,479)		(3,411)
Share option charges		(514)		(332)
Depreciation and amortisation		(1,466)		(1,357)
Impairment loss on intangible assets		(896)		-
Total admin expenses		(13,659)		(11,261)
Other operating income	4	476		827
Operating loss		(12,894)		(10,168)
Fair value gain / (loss) on financial liabilities designated as FVTPL	12	1,349		(1,246)
Gain reclassified to profit or loss on disposal of foreign operation		-		113
Finance income		112		103
Finance costs		(523)		(213)
Loss before tax		(11,956)		(11,411)
Income tax		389		585
Loss for the year from continuing operations	6	(11,567)		(10,826)
Loss attributable to:
Owners of the Company		(11,567)		(10,826)
Non-controlling interest		-		-
		(11,567)		(10,826)
Earnings / (loss) per share
From continuing operations
Basic and diluted (pence per share)	7	(4.5)		(7.3)

 

 

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 30 SEPTEMBER 2024

 

 

		2024		2023
		£000		£000
	Note
Loss for the year	6	(11,567)		(10,826)
Exchange differences on translation of foreign operations that may be reclassified to the income statement		255		(182)
Total comprehensive income for the year		(11,312)		(11,008)
Total comprehensive income attributable to:
Owners of the Company		(11,312)		(11,008)
Non-controlling interest		-		-
		(11,312)		(11,008)

 

 

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2024

 

 

				2024		2023*
				£000		£000
Assets	Note
Non-current assets
Intangible assets	8			1,351		1,913
Property, plant and equipment	9			1,762		2,238
Right-of-use assets	10			3,949		4,759
Deferred tax asset				-		50
Total non-current assets				7,062		8,960
Current assets
Inventories				321		274
Trade and other receivables				1,385		957
Current tax receivables				513		686
Fixed-term deposits				1,000		-
Cash and cash equivalents				1,827		5,250
Total current assets				5,046		7,167
Total assets				12,108		16,127
Equity and liabilities
Capital and reserves
Share capital	11			3,119		2,023
Share premium				40,149		32,144
Translation reserves				192		(63)
Share option reserve				3,017		2,776
Retained earnings				(42,119)		(30,825)
Total equity				4,358		6,055
Current liabilities
Trade and other payables				1,506		1,707
Warrant liability				11		1,360
Lease liabilities				1,046		818
Current tax liabilities				-		116
Total current liabilities				2,563		4,001
Non-current liabilities
Lease liabilities				4,694		5,621
Provisions				486		440
Deferred tax				7		10
Total non-current liabilities				5,187		6,071
Total liabilities				7,750		10,072
Total equity and liabilities				12,108		16,127

*See Note 2 for details of change in presentation of comparative information

 

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Year ended 30 September 2024
	Share  capital		Share premium		Transla- tion reserve		Share option reserve		Retained earnings		Attribu- table to share- holders
	£000		£000		£000		£000		£000		£000
At 1 October 2023	2.023		32.144		(63)		2,776		(30,825)		6,055
Loss for the year	-		-		-		-		(11,567)		(11,567)
Other comprehensive income for the period	-		-		255		-		-		255
Total comprehensive income for the period	-		-		255		-		(11,567)		(11,312)
Subscription for new shares	1,096		8,764		-		-		-		9,860
Transaction costs for new shares	-		(759)		-		-		-		(759)
Share option credit	-		-		-		514		-		514
Lapse of vested share options	-		-		-		(273)		273		-
At 30 September 2024	3,119		40,149		192		3,017		(42,119)		4,358
Year ended 30 September 2023
	Share  capital		Share premium		Transla- tion reserve		Share option reserve		Retained earnings		Attribu- table to share- holders
	£000		£000		£000		£000		£000		£000
At 1 October 2022	1,004		19,020		119		3,154		(20,709)		2,588
Loss for the year	-		-		-		-		(10,826)		(10,826)
Other comprehensive income for the period	-		-		(182)		-		-		(182)
Total comprehensive income for the period	-		-		(182)		-		(10,826)		(11,008)
Subscription for new shares	1,019		14,368		-		-		-		15,387
Issue of warrants to subscribe for new shares	-		-		-		-		-		-
Transaction costs for new shares	-		(1,244)		-		-		-		(1,244)
Share option credit	-		-		-		332		-		332
Lapse of vested share options	-		-		-		(710)		710		-
At 30 September 2023	2,023		32,144		(63)		2,776		(30,825)		6,055

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 30 SEPTEMBER 2024

		2024		2023
		£000		£000
	Note
Loss before tax for the financial year	6	(11,956)		(11,411)
Adjustments to reconcile loss for the year to net operating cash flows:
Net interest		113		141
Loss on disposal of property, plant and equipment		-		4
Depreciation of property, plant and equipment	9	550		548
Depreciation of right-of-use assets	10	745		663
Amortisation of intangible assets	8	171		146
Impairment loss on intangible fixed assets		896		-
Net foreign exchange movements		293		(122)
Movement in provisions		46		16
Share based payments charge		514		332
Fair value loss / (gain) on financial liabilities		(1,349)		1,246
Working capital adjustments:
Increase in trade and other receivables		(427)		(448)
(Increase) / decrease in inventories		(47)		63
Decrease in trade and other payables		(167)		(286)
Operating cash flows before interest and tax paid		(10,618)		(9,108)
R&D tax credits received		684		896
Tax paid		(238)		(82)
Net cash used in operating activities		(10,172)		(8,294)
Investing activities
Interest received		110		71
Purchases of property, plant and equipment		(80)		(250)
Purchases of intangible assets		(515)		(466)
(Increase) / decrease in term deposits		(1,000)		25
Net cash used in investing activities		(1,485)		(620)
Financing activities
Interest paid		(225)		(213)
Repayment of lease liabilities		(622)		(723)
Acquisition of minority interest shares in subsidiary entity		-		-
Issue of equity shares and warrants		9,860		15,387
Transaction costs relating to issue of equity shares		(759)		(1,244)
Net cash generated by financing activities		8,254		13,207
Net (decrease) / increase in cash and cash equivalents		(3,403)		4,293
Foreign exchange movement on cash and cash equivalents		(20)		(17)
Cash and cash equivalents at beginning of year	23	5,250		974
Cash and cash equivalents at end of year		1,827		5,250

 

1.    Corporate information

Oxford Biodynamics plc is a public limited company incorporated in the United Kingdom, whose shares were admitted to trading on the AIM market of the London Stock Exchange on 6 December 2016. The Company is domiciled in the United Kingdom and its registered office is 3140 Rowan Place, John Smith Drive, Oxford Business Park South, Oxford, OX4 2WB. The registered company number is 06227084 (England & Wales).

The Group is primarily engaged in the commercialization of proprietary molecular diagnostics products and biomarker research and development.

2.    Basis of the announcement

Basis of preparation

The final results for the year ended 30 September 2024 were approved by the Board of Directors on 27 February 2025. The final results do not constitute full accounts within the meaning of section 434 of the Companies Act 2006 but are derived from audited accounts for the year ended 30 September 2024 and the year ended 30 September 2023.

This announcement is prepared on the same basis as set out in the audited statutory accounts for the year ended 30 September 2024. The accounts for the years ended 30 September 2024 and 30 September 2023, upon which the auditors issued unqualified opinions, also had no statement under section 498(2) or (3) of the Companies Act 2006. The auditors' report includes reference to the material uncertainties relating to going concern. See below for more details of the going concern assessment performed by the Board of Directors.

While the financial information included in this results announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards in conformity with the Companies Act 2006 (IFRS), this announcement does not in itself contain sufficient information to comply with IFRS.

Reporting currency

The consolidated financial statements are presented in pounds sterling (GBP), which is also the Company's functional currency.

Disclosure of tax receivable

The Directors have reviewed the previous disclosure of tax receivable and, in order to comply with the requirements of IAS 1 'Presentation of Financial Statements', have represented the relevant balances separately in the Group and Company statements of financial position. There is no impact on any asset subtotals in either the current or prior year as a result of this additional disclosure.

Going concern

In assessing the appropriateness of adopting the going concern assumption, the Group and Parent Company has prepared a detailed financial forecast ("the Baseline Forecast") covering the period ending 31 March 2026. The Baseline Forecast includes:

·      estimates of likely revenue arising from EpiSwitch PSE and EpiSwitch CiRT;

·      anticipated revenues from contracts with pharmaceutical partners;

·      operating costs reflecting the current cost base including recently initiated cost-saving actions;

·      capital expenditure, primarily to maintain and extend the Group's patent estate.

 

Revenue for the year ended 30 September 2024 was slightly increased compared to the previous year, but the Group remained lossmaking, with increased costs and operating loss compared to the prior year.

 

The Group was able to maintain its cash reserves during the year, including through a placing, subscription and PrimaryBid offer of new ordinary shares issued in April 2024 that raised £9.9m before expenses. Although sales of the Group's proprietary tests increased over the year to 30 September 2024, this was more than offset by higher operating expenses and the Group required additional cash resources by early in the first quarter of 2025. There was a significant reduction in the Company's share price over the year ended 30 September 2024 and this trend continued after the year end.

 

In October 2024, the Board announced that it had initiated a number of cost-saving actions and a review of the strategic options open to the Company. Following the announcement of the appointment of Iain Ross as Executive Chairman, the Company successfully raised a total of £7.35m before expenses in January 2025.

 

Under this new leadership, the Company has indicated that it will operate with a renewed focus on partnerships, collaboration and licensing in order to monetise the Group's assets. To that end, the Group is currently involved in discussions, at various stages of development with multiple interested parties.

 

In addition to the Baseline Forecast, the Group and Parent Company has prepared an "Upside Forecast" that reflects the Directors' intention to agree partnerships, collaborations and/or licensing over the remainder of 2025. In addition, the Upside Forecast also reflects higher sales of the EpiSwitch PSE test than the Baseline Forecast, which are expected to arise from agreements with new distributors and/or expansion of coverage of the test by UK private health insurers.

 

As noted in the Executive Chairman's report, Iain Ross is currently leading a review of all of the Group's operations and expects to share the outcome of that review along with further progress around the time of the Company's annual general meeting in March 2025. Any additional potential cost reduction actions that may be taken as a result of this review have not been reflected in the Upside Forecast.

 

In the scenario reflected in the Baseline Forecast, the Company would need to generate additional funding during the final quarter of 2025. Should this forecast not be met (in a downside scenario) the quantum of any additional funding may need to be increased and/or the timing accelerated. With the income reflected in the Upside Forecast, cash resources would be expected to last beyond 31 March 2026.

 

Whilst the Board considers that the Upside Forecast represents a reasonable estimate of the Group's potential performance over the period to 31 March 2026, for the purposes of their assessment as to whether the Group and Parent Company would be able to continue as a going concern, the Directors referred to the Baseline Forecast.

 

In the Baseline Forecast, in the absence of income from partnership, collaboration or out-licensing, the availability of additional funding to enable the Group and Parent Company to continue as a going concern would be expected to depend on the Group having demonstrated either significant progress towards such a partnership, collaboration or out-licensing agreement or materially increased sales of its proprietary tests. The Directors expect that it will be possible to demonstrate such progress, but draw attention to significant uncertainties inherent in the preparation of the Baseline Forecast. As in the prior year, these primarily relate to balances associated with the revenue / income cycle, since most of the Group's costs are reasonably predictable. These uncertainties include volumes of orders of the Group's tests; the proportion of PSE test sales that are covered by US health insurance; reimbursement rates and timing of the reimbursement cycle (and consequent impact on the Group's working capital); and the number and value of new agreements with pharma/biotech customers.

 

As noted above, the Company raised a total of £7.35m (before expenses) from new and existing shareholders after the year end in January 2025. Whilst the fundraise was successful, it was carried out at a historically low issue price per share and involved significant dilution for non-participating shareholders. There is no guarantee that the Company will be able to access further cash resources from investors in future.

These conditions (that is, the uncertainties relating to revenue generation and the ability to raise further funds) represent material uncertainties which may cast significant doubt on the Group and Parent Company's ability to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its liabilities in the normal course of business.

Notwithstanding these material uncertainties, based on all the above considerations, the Directors confirm that they have a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future, being the period to 31 March 2026. Accordingly, the Directors continue to adopt the going concern basis of preparation of the Group and Company financial statements.

Critical judgements in applying the Group's accounting policies

The following are the critical judgements that the Directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements.

Treatment of revenue arising from test sales reimbursed by US insurance payors

The Group recognises revenue when or as the relevant performance obligations in its contracts with customers are completed. Sales of the Group's proprietary tests can be paid for by patients, payors with whom the Group has direct agreements in place, or by US insurers through the reimbursement process. In this final case, the Group may obtain an acknowledgement of financial responsibility from a patient before processing a test.

EpiSwitch® CiRT and PSE tests were regularly reimbursed by several US insurers throughout the year, for a range of amounts, and this has continued post-year end. The amount received is influenced by several factors, including the terms of individual patients' policies such as requirements for co-payment, the price listed for the test, if any, in the Centers for Medicare and Medicaid Services (CMS) Clinical Laboratory Fee Schedule (CLFS), insurers' own coverage policies in respect of the tests, and claim denials. Where reimbursement for a test is initially denied, or reimbursed at a lower-than-expected amount, the Group avails itself of the appeals process that exists in the reimbursement system. At the year end, a number of appeals were in process but not yet complete. Reimbursement claims for a further group of processed tests were held by the Group pending confirmation of coverage decisions by insurers or the relevant Medicare Administrative Contractor (MAC), in order to ensure the most positive likely outcome in terms of eventual reimbursement.

The above factors are relevant to Management's decision on whether a contract with a customer exists and therefore whether the five-step process of revenue recognition included in IFRS 15 Revenue from Contracts with Customers should be followed or whether instead revenue should be recognised on final receipt of funds from a payor.

Management exercised judgement in determining that for the Group's test orders in the period, the patient should be considered the customer, even if there is no explicit reimbursement agreement in place between the Group and the patient, the contract with the patient being judged to be established in accordance with customary business practices.

For the Group's clinical tests, since reimbursement ultimately received from insurers is variable, Management must exercise judgement in determining the amount and timing of revenue to be recognised.

Following the guidance in IFRS 15, Management limits the amount of variable consideration recognised to the "unconstrained" portion of such consideration. This means that the Group recognises revenue up to the amount of variable consideration that is not subject to a potential significant reversal until additional information is obtained or the uncertainty associated with additional payments or refunds is subsequently resolved. Up to 30 September 2024, the Group still had limited detailed historical data from which to reliably predict receipts from insurers and therefore the amount of variable consideration to recognise on delivery of a test report to a patient's doctor. In practice, this means that variable consideration arising from insurance-reimbursed clinical tests has been constrained to zero, until receipt of reimbursements from insurers.

The effect of this judgement is to delay revenue recognition, in the case of tests processed by the Group's partner laboratory to later than the recognition of cost of sales. To the extent that this judgment were to be inappropriate, the Group's revenue for the period would be increased, but Management do not expect that this would result in any material change to the amounts recognised in these financial statements.

Management anticipate that in future periods, as the Group's historical collections experience increases in volume and specificity in relation to particular payors and policies it is likely that judgement will continue to be required in determining the extent to which variable consideration relating to these tests is unconstrained and should therefore be recognised.

Identification of the Group's cash-generating unit

In carrying out the impairment review of patent assets set out in more detail below, Management exercised judgement in determining that the Group currently has one cash-generating unit (CGU). Guidance states that CGUs are "the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows for other assets or groups of assets".

The Group's strategy was expanded in December 2020, to include the development and commercialisation of proprietary tests. As at 30 September 2024, three lab developed test products had been launched, with two of these (EpiSwitch® CiRT and EpiSwitch® PSE) being actively marketed as well as the Group's EpiSwitch® Explorer Array Kit, which is marketed to the life science research community. Revenue from products and customer contracts is reported separately to Directors in the Group's internal management accounts. However, it is not currently possible to assign separate groups of OBD assets to particular cashflows. With very limited exceptions, people, premises, equipment and patents are generally applied to both product and customer contract revenue streams. This position may change as i) dedicated product sales and marketing teams are more fully developed, ii) the Group's LDTs are consistently processed through the Group's US and UK clinical laboratories and iii) test-specific revenue streams become more predictable.

At present, Management continues to conclude that the Group has one CGU, relating to all commercial exploitation of its EpiSwitch® technology. If a different judgement were taken and the Group determined to contain more than one separately identifiable CGU, as part of the impairment review of the Group's patent assets conducted at the year end, it would have been necessary to estimate the recoverable value of each CGU separately and to allocate patents to those CGUs.

Impairment review

Intangible assets are reviewed for indicators of impairment at the end of each reporting period. An impairment review of patent and other assets was conducted as at the year end, because there were a number of indicators of potential impairment, including the significant reduction during the year of the Company's share price and market capitalisation and the Group's financial performance for the year resulting in a larger than expected loss. In addition, an impairment review is required for any assets not yet being amortised and certain patent assets fall into this category.

As noted above, Management identified that at the current stage in the Group's development, it includes a single CGU, to which all patent assets are allocated. Management consider that the recoverable amount of the Group's single CGU is based on its fair value less cost of disposal (FVLCOD), and that this value is attributable to its intellectual property, including patents and know-how, and its other assets, including property plant and equipment. The most reliable available estimate for the fair value of the Group's CGU as a whole is the enterprise value of the Group, which is in turn given by the market value of the Company on a cash- and debt-free basis.

As at 30 September 2024, the Group had a market capitalisation of £10m (3.22p x 311,855,650 shares then in issue). Cash/cash equivalents and term deposits at 30 September 2024 of £2.8m are deducted from market value in arriving at the enterprise value. Following review of available guidance, Management determined that neither the warrant nor the lease liabilities associated with the Group's rented property should be added back to the market value in determining the enterprise value. This results in an estimate of the year-end enterprise value of the Group as a whole of approximately £7.2m.

In estimating the cost of disposal (COD), Management used an estimate of £1.2m, representing a COD of approximately 12% of the year end market value, which is within the range of estimates of disposal costs reviewed by Management. The FVLCOD of the Company as at 30 September 2024 was therefore estimated to be £6m. Management then compared the FVLCOD of the Company to the carrying value of the Group's assets excluding patents (£1.86m in respect of property plant and equipment and capitalised software). The excess of the Company's FVLCOD over its gross assets excluding patents was therefore approximately £4.1m, compared to a carrying value of patent assets (after patent-specific impairment charges noted above) of £1.24m. Management therefore concluded that no further impairment of the Company's capitalised patents existed at the year end.

Management considers that a reduction in the Company's estimated FVLCOD to an amount comparable to the carrying value of its non-patent assets would lead to a reduction in the recoverable amount of its patent assets, potentially to nil. Management will continue to assess, at the end of each reporting period and more frequently if necessary, whether there are indicators that any of the Group's assets may be impaired or that impairment charges recognised in the period require reversal.

Intangible assets

As at the year end, the Group had limited cash resources and Management's plans for near-term commercialisation were focused on a limited number of pipeline assets, alongside tests already launched and the EpiSwitch platform itself. In the light of this, Management further reviewed each of the Company's patent families for other indicators of impairment, principally considering whether amounts previously capitalised remain supportable by an assessment of likely future economic benefits, bearing in mind these more focused short-to-medium-term plans.

The Company is continuing to pursue, and where relevant renew, each of the individual patents in its 22 patent families, but in line with the guidance in the relevant accounting standards, Management determined that an impairment charge of £0.9m should be recognised in the period.

 

3.   Revenue

All revenue is derived from the Group's principal activities, namely sales of proprietary products and biomarker research and development. Analysis of the Group's revenue by principal activities, geography and pattern of revenue recognition is as follows:

		2024		2023
		£000		£000
Continuing operations:
Sales of proprietary products
USA		345		160
Rest of World		63		34
		408		194
Biomarker research and development
USA		114		228
Rest of World		114		88
		228		316
Consolidated revenue		636		510

 

		2024		2023
		£000		£000
Continuing operations:
Revenue recognised at a point in time		408		194
Revenue recognised over time		228		316
		636		510

Information about major customers

The Group's revenues for the periods covered by this report are derived from a small number of customers, several of which represent more than 10% of the revenue for the period.  These are summarised below:

		2024		2023
		£000		£000
Revenue from individual customers each representing more than 10% of revenue for the period:		170		280
		Number		Number
Number of individual customers each representing more than 10% of revenue for the period.		2		2

 

 

4.    Other operating income

		2024		2023
		£000		£000
Continuing operations:
Award and grant income		476		827

Income was recognised in both years in respect of each of the Company's PACT awards and OBD's involvement in the EU-funded HIPPOCRATES consortium.

 

5.    Business segments

Products and services from which reportable segments derive their revenues

Information reported to the Group's Chief Executive Officer (who was determined to be the Group's Chief Operating Decision Maker during the year) for the purposes of resource allocation and assessment of segment performance is focused on costs incurred to support the Group's main activities. The Group is currently determined to have one reportable segment under IFRS 8, that of sales of proprietary products and biomarker research and development. This assessment will be kept under review as the Group's activity expands.

The Group's operating expenses and non-current assets, analysed by geographical location were as follows:

 

		2024		2023
		£000		£000
Staff costs
UK		2,531		2,614
USA		2,869		2,692
Rest of World		95		97
Total staff costs		5,495		5,403
Research & development costs
UK		540		680
USA		269		77
Rest of World		-		1
Total research & development costs		809		758
General & other admin costs
UK		2,598		2,399
USA		1,837		969
Rest of World		44		43
Total general & other admin costs		4,479		3,411
Non-current assets
UK		6,025		7,446
USA		1,015		1,478
Rest of World		22		36
Total non-current assets		7,062		8,960

 

 

6.    Loss for the year

Loss for the year has been arrived at after charging/(crediting):

		2024		2023
		£000		£000
Net foreign exchange losses		298		(31)
Research and development costs (excluding staff costs)		809		758
Amortisation of intangible assets		171		146
Depreciation of property, plant and equipment		550		548
Depreciation of right-of-use assets		745		663
Impairment loss on intangible assets		896		-
Staff costs		5,495		5,403
Share-based payments charged to profit and loss		514		332
Fair value loss / (gain) on financial liabilities designated as FVTPL		(1,349)		1,246
Gain reclassified to profit or loss on disposal of foreign operation		-		(113)

 

 

7.    Earnings per share

From continuing operations

The calculation of the basic and diluted earnings per share is based on the following data:

		2024		2023
		£000		£000
Earnings for the purposes of basic earnings per share being net loss attributable to owners of the Company		(11,567)		(10,826)
Earnings for the purposes of diluted earnings per share		(11,567)		(10,826)

 

		2024		2023
		No		No
Number of shares
Weighted average number of ordinary shares for the purposes of basic and diluted earnings per share*		255,728,889		147,481,566
		Pence		Pence
Earnings per share
Basic and diluted earnings per share		(4.5)		(7.3)

*Ordinary shares that may be issued on the exercise of options or warrants are not treated as dilutive as the entity is loss-making.

The issue of shares post year end, as set out in note 15, would have significantly changed the number of ordinary shares outstanding at the end of the year had that transaction occurred prior to the year end

 

 

8.    Intangible fixed assets

 

Group					Website development costs		Software development costs		Patents		Total
					£000		£000		£000		£000
Cost
At 1 October 2023					62		173		2,101		2,336
Additions					-		90		425		515
Derecognition of assets					-		-		(997)		(997)
Exchange differences					-		(17)		-		(17)
At 30 September 2024					62		246		1,529		1,837
Accumulated amortisation
At 1 October 2023					62		99		262		423
Charge for the year					-		53		118		171
Derecognition of assets					-		-		(101)		(101)
Exchange differences					-		(7)		-		(7)
At 30 September 2024					62		145		279		486
Carrying amount
At 30 September 2024					-		101		1,250		1,351
Group					Website development costs		Software development costs		Patents		Total
					£000		£000		£000		£000
Cost
At 1 October 2022					62		144		1,674		1,880
Additions					-		39		427		466
Exchange differences					-		(10)		-		(10)
At 30 September 2023					62		173		2,101		2,336
Accumulated amortisation
At 1 October 2022					62		65		152		279
Charge for the year					-		36		110		146
Exchange differences					-		(2)		-		(2)
At 30 September 2023					62		99		262		423
Carrying amount
At 30 September 2023					-		74		1,839		1,913

As at 30 September 2024, in the Group, a total of £nil (2023: £304,000) of patent assets were not yet being amortised because their useful life was determined not to have begun.

The derecognition of assets with a carrying value of £896,000 has been presented as an impairment in the consolidated income statement. These assets continue to be held and maintained by the Group.

The Group hold no intangible assets that are determined to have indefinite useful life.

 

9.    Property, plant and equipment

 

 

Group		Leasehold improvements			Office equipment		Fixtures and fittings		Laboratory equipment		Total
			£000		£000		£000		£000		£000
Cost
At 1 October 2023			2,084		191		185		2,300		4,760
Additions			15		16		2		61		94
Disposals			-		(3)		-		(327)		(330)
Exchange differences			-		(5)		(1)		(34)		(40)
At 30 September 2024			2,099		199		186		2,000		4,484
Accumulated depreciation
At 1 October 2023			437		127		77		1,881		2,522
Charge for the year			211		36		35		268		550
Eliminated on disposals			-		(3)		-		(327)		(330)
Exchange differences			-		(2)		-		(18)		(20)
At 30 September 2024			648		158		112		1,804		2,722
Carrying amount
At 30 September 2024			1,451		41		74		196		1,762
Group		Leasehold improvements			Office equipment		Fixtures and fittings		Laboratory equipment		Total
			£000		£000		£000		£000		£000
Cost
At 1 October 2022			2,041		182		172		2,318		4,713
Additions			45		58		15		125		243
Disposals			-		(47)		-		(88)		(135)
Exchange differences			(2)		(2)		(2)		(55)		(61)
At 30 September 2023			2,084		191		185		2,300		4,760
Accumulated depreciation
At 1 October 2022			231		139		44		1,717		2,131
Charge for the year			208		37		34		269		548
Eliminated on disposals			-		(47)		-		(84)		(131)
Exchange differences			(2)		(2)		(1)		(21)		(26)
At 30 September 2023			437		127		77		1,881		2,522
Carrying amount
At 30 September 2023			1,647		64		108		419		2,238

 

10.  Right-of-use assets

 

Group							Buildings		Other		Total
							£000		£000		£000
Cost
At 1 October 2023							6,241		18		6,259
Additions							18		-		18
Derecognition							(12)		-		(12)
Exchange differences							(112)		-		(112)
At 30 September 2024							6,135		18		6,153
Accumulated depreciation
At 1 October 2023							1,483		17		1,500
Charge for the year							744		1		745
Eliminated on derecognition							(12)		-		(12)
Exchange Differences							(29)		-		(29)
At 30 September 2024							2,186		18		2,204
Carrying amount
At 30 September 2024							3,949		-		3,949
Group							Buildings		Other		Total
							£000		£000		£000
Cost
At 1 October 2022							5,224		18		5,242
Additions							1,029		-		1,029
Derecognition							-		-		-
Exchange differences							(12)		-		(12)
At 30 September 2023							6,241		18		6,259
Accumulated depreciation
At 1 October 2022							835		11		846
Charge for the year							657		6		663
Eliminated on derecognition							-		-		-
Exchange Differences							(9)		-		(9)
At 30 September 2023							1,483		17		1,500
Carrying amount
At 30 September 2023							4,758		1		4,759

 

 

 

 

 

11.  Share capital of the company

 

	2024		2024		2023		2023
	Number		£		Number		£
Authorised shares
Ordinary shares of £0.01 each - allotted and fully paid	311,855,650		3,118,557		202,303,415		2,023,034
Total	311,855,650		3,118,557		202,303,415		2,023,034

At 30 September 2024, the Company had one class of ordinary shares which carry no right to fixed income.

On 5 April 2024 and 8 April 2024, the Company issued a total of 109,552,235 new ordinary shares at an issue price of £0.09 per share raising gross proceeds of £9.9m with issuance costs of £0.8m.

No shares were issued on the exercise of share options or warrants during the year (2023: nil).

The Company has a number of shares reserved for issue pursuant to warrants and under an equity-settled share option scheme; further details are disclosed in Notes 12 and 14.

After the year end:

On 28 October 2024, the Company issued 2,285,741 new ordinary shares.

On 29 November 2024, the Company issued 2,435,178 new ordinary shares.

On 24 December 2024, the Company issued 2,742,657 new ordinary shares.

On 31 January 2025, the shareholders of the Company approved a share capital reorganisation, whereby each of the 319,319,226 ordinary shares of £0.01 each in the capital of the Company then in issue was sub-divided and re-designated as one new ordinary share of £0.001 each in the capital of the Company and one deferred share of £0.009 each in the capital of the Company. Following the Share Capital Reorganisation, there were 319,319,226 ordinary shares of £0.001 each and 319,319,226 deferred shares of £0.009 each.

As all of the existing ordinary shares were sub-divided and re-designated, the proportion of the issued share capital of the Company held by each shareholder immediately following the share capital reorganisation remained unchanged. In addition, apart from having a different nominal value, each ordinary share with a nominal value of £0.001 carries the same rights and represents the same proportionate interest in the Company as an original ordinary share with a nominal value of £0.01.

The deferred shares created are effectively valueless as they do not carry any rights to vote or dividend rights. In addition, holders of deferred shares will only be entitled to a payment on a return of capital or on a winding up of the Company after each of the holders of ordinary shares have received a payment of £1,000,000 on each such share. The deferred shares will not be listed on AIM and will not be transferable without the prior written consent of the Board. No share certificates have been issued in respect of the deferred shares, nor will CREST accounts of Shareholders be credited in respect of any entitlement to deferred shares. The Board's intention is that deferred shares will be bought back and cancelled in due course.

On 3 February 2025 and 4 February 2025, the Company issued a total of 1,638,258,415 new ordinary shares of £0.001 each.

 

 

 

12.  Warrants

As at 30 September 2024 there were 7,791,803 shares reserved for issue under warrants (30 September 2023: 7,791,803).

The Warrants were issued on 11 November 2021. The Warrants have an exercise price of 58.125p and may be exercised for a period beginning one year and ending five years after the issue date.

In certain circumstances, the Warrants may be exercised by way of a 'cashless exercise' whereby holders are entitled to receive a number of warrant shares equal to [(A-B) x 7,791,803]/(A), where A is the value of the Company's ordinary shares at the time, and B is the warrant exercise price of 58.125p. Anti-dilution provisions are also in place such that if there is an adjustment for any dividends paid or changes to ordinary share capital at any time whilst the warrant is outstanding, the number of shares issued on exercise of the warrant is adjusted to take into account the proportionate change (with a limitation on fractional shares).

On award and at each subsequent reporting date, the fair value of the Warrants has been estimated using the Black-Scholes option pricing model. Volatility has been estimated by reference to historical share price data over a period commensurate with the expected term of the options awarded (effectively the remaining term at each reporting date).

The fair value of the Warrants and the assumptions used in estimating it are shown below:          

			30 September 2024		30 September 2023
Share price at reporting date (p)			3.2		37
Exercise price (p)			58.125		58.125
Expected volatility			98.85%		84.39%
Dividend yield			0%		0%
Expected life of option			2.11 years		3.11 years
Risk free interest rate			3.82%		4.55%
Fair value per Warrant			0.2p		17p
Warrant liability			£11,000		£1,360,000

 

Warrant liability - Group and Company	Total
		£000
At 1 October 2023		1,360
Issue of warrants		-
Fair value gain on financial liability designated as FVTPL		(1,349)
At 30 September 2024		11
At 1 October 2022		114
Issue of warrants		-
Fair value loss on financial liability designated as FVTPL		1,246
At 30 September 2023		1,360

 

 

 

13.  Lease liabilities

 

 

Group		2024		2023
Maturity analysis:		£000		£000
Year 1		1,236		1,045
Year 2		1,030		1,052
Year 3		1,036		1,051
Year 4		1,042		1,058
Year 5+		2,020		3,101
		6,364		7,307
Less: future interest charges		(624)		(868)
		5,740		6,439
Analysed as:
Current		1,046		818
Non-current		4,694		5,621
		5,740		6,439

 

14.  Share-based payments

 

Equity-settled share option scheme

In November 2016, the Company established an Enterprise Management Incentive ("EMI") share option scheme, under which options have been granted to certain employees, and a non-employee option scheme with similar terms, except that options granted under it do not have EMI status. EMI and non-EMI share options were also previously granted under a share option scheme established in October 2008 ("the 2008 Scheme").  The Company does not intend to grant any further options under the 2008 Scheme. All of the schemes are equity-settled share-based payment arrangements, whereby the individuals are granted share options of the Company's equity instruments, namely ordinary shares of 1 pence (0.1 pence following the share capital reorganisation that took place on 31 January 2025) each.

The schemes include non-market-based vesting conditions only, whereby the share options may be exercised from the date of vesting until the 10^th anniversary of the date of the grant. In most cases options vest under the following pattern: one-third of options granted vest on the first anniversary of the grant date; one-third on the second anniversary and one-third on the third anniversary. 

The options outstanding as at 30 September 2024 have exercise prices in the range of £0.09 to £2.10.

			2024				2023
	Number of options		Weighted average exercise price		Number of Options		Weighted average exercise price
			£				£
Outstanding at start of period	9,983,143		0.57		9,447,658		0.67
Granted during the period	14,048,020		0.15		2,721,061		0.18
Forfeited during the period	(1,026,668)		(0.53)		(2,185,576)		(0.48)
Exercised during the period	-		-		-		-
Outstanding at end of period	23,004,495		0.32		9,983,143		0.57
Exercisable at end of period	7,506,823		0.67		5,983,853		0.76
Weighted average remaining contractual life (in years) of options outstanding at the period end			7.94				6.60

 

					2024		2023
					£000		£000
Expense arising from share-based payment transactions					514		332

The fair value of share options has been estimated using the Black-Scholes option pricing model. Volatility has been estimated by reference to historical share price data over a period commensurate with the expected term of the options awarded. The assumptions for the options granted during the current and prior periods were as follows:

 

					2024		2023
					£000		£000
Share price at date of grant					£0.06 to £0.34		£0.156 to £0.189
Exercise price					£0.09 to £0.34		£0.156 to £0.189
Expected volatility					67% to 69%		55% to 56%
Dividend yield					0%		0%
Expected life of option					9.0 to 9.1 years		8.7 to 9.0 years
Risk free interest rate					3.88% to 4.65%		3.45% to 3.70%

 

 

15.  Events after the balance sheet date

 

On 19 December 2024, the Company announced that it had entered an interest free loan agreement with Vulpes Testudo Fund to provide up to £1m in working capital to enable it to continue to pursue funding options.

 

On 17 January 2025, the Company announced that it had successfully raised gross proceeds of approximately £7.35m via the issue of 1,470,002,778 new ordinary shares by way of a placing, subscriptions and retail offer, as disclosed in note 11. The new shares were ultimately issued on 3 and 4 February 2025.

 

 

Notes for Editors

About Oxford BioDynamics Plc

 

Oxford BioDynamics Plc (AIM: OBD) is an international biotechnology company, advancing personalized healthcare by developing and commercializing precision clinical diagnostic tests for life-changing diseases.

 

Currently OBD has two commercially available products: the EpiSwitch® PSE (EpiSwitch Prostate Screening test) and EpiSwitch® CiRT (Checkpoint Inhibitor Response Test) blood tests. PSE boosts the predictive accuracy of a PSA test from 55% to 94% when testing the presence or absence of prostate cancer. CiRT is a highly accurate (85%) predictive response test to immuno-oncology checkpoint inhibitor treatments.

 

The tests are based on OBD's proprietary 3D genomic biomarker platform, EpiSwitch® which enables screening, evaluation, validation and monitoring of biomarkers to diagnose patients or determine how individuals might respond to a disease or treatment.

 

OBD's clinical smart tests have the potential to be used across a broader range of indications, and new tests are being developed in the areas of oncology, neurology, inflammation, hepatology and animal health.

 

The Group's headquarters and UK laboratories are in Oxford, UK. Its US operations and clinical laboratory are in Maryland, USA, along with a reference laboratory in Penang, Malaysia.

 

OBD is listed on the London Stock Exchange's AIM (LSE: OBD). For more information, please visit the Company's website, www.oxfordbiodynamics.com,  X (@OxBioDynamics) or LinkedIn.