What changed in this filing

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Item 1. Financial Statements

2022-06-10 compared with 2022-03-11 · 232 added, 223 removed, 502 unchanged (48% of the section changed)

14 unchanged sentences

Accrued expenses

lease liability

current liabilities

Operating lease liability

Total current liabilities

Operating lease liability,

Total liabilities

Commitments and contingencies (Note 9)

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no shares issued or outstanding

Series A convertible preferred

stock, par value $ 100 per share;

Series A convertible

preferred stock, par value $ 100 per share;

140 shares authorized;

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100,000,000 shares authorized;

30,132,319 and 30,050,894 shares issued and outstanding as of January 31, 2022 and October 31, 2021, respectively

30,154,708 and 30,050,894 shares issued and outstanding as of April 30, 2022 and October 31, 2021,

Additional paid-in capital

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thousands, except per share data)

the Three Months Ended January 31,

For the three months ended

For the six months ended

Operating costs and expenses:

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AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

THE THREE MONTHS ENDED JANUARY 31, 2022 (UNAUDITED )

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED )

thousands, except share data)

THE THREE MONTHS ENDED APRIL 30, 2022

Shareholders’

Balance, January 31, 2022

$ ( 208,619 )

Stock option compensation to employees and

Stock options and warrants issued to consultants

Common stock issued to consultants

Common stock issued pursuant to employee stock

purchase plan

Balance, April 30, 2022

$ ( 212,163 )

THE THREE MONTHS ENDED APRIL 30, 2021

Shareholders’

Balance, January 31, 2021

$ ( 194,044 )

Stock option compensation to employees and

Stock options and warrants issued to consultants

Common stock issued upon exercise of stock

Common stock issued pursuant to employee stock

purchase plan

Common stock issued in a public offering, net

of offering expenses of $ 2,208

Common stock issued in at-the-market offering,

net of offering expenses of $ 156

Balance, April 30, 2021

$ ( 196,443 )

accompanying notes are an integral part of these condensed consolidated financial statements.

BIOSCIENCES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED )

thousands, except share data)

THE SIX MONTHS ENDED APRIL 30, 2022

Shareholders’

Balance, October 31, 2021

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options and warrants

Common stock issued upon exercise of stock

options, shares

stock issued in at-the-market offering, net of offering expenses

stock issued in at-the-market offering, net of offering expenses , shares

Balance, January 31, 2022

Common stock issued to consultants

Common stock issued pursuant to employee stock

purchase plan

Balance, April 30, 2022

$ ( 212,163 )

THE THREE MONTHS ENDED JANUARY 31, 2021 (UNAUDITED )

THE SIX MONTHS ENDED APRIL 30, 2021

Shareholders’

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Common stock issued upon exercise of stock

Common stock issued pursuant to employee stock

purchase plan

Common stock issued in a public offering, net

of offering expenses of $ 2,208

Common stock issued in at-the-market offering,

net of offering expenses of $ 341

Balance, January 31, 2021

Balance, April 30, 2021

$ ( 196,443 )

3 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

the three months ended January 31,

the six months ended April 30,

Cash flows from operating activities:

Reconciliation

of net loss to net cash used in operating activities:

option compensation to employees and directors

options and warrants issued to consultants

on sale of equipment

of operating lease right-to-use asset

in operating assets and liabilities:

expenses and other current assets

Reconciliation of net loss

to net cash used in operating activities:

Stock option compensation

to employees and directors

Stock options and warrants

issued to consultants

Common stock issued to

Gain on sale of equipment

Amortization of operating

lease right-of-use asset

Change in operating assets

and liabilities:

Prepaid expenses and other

current assets

Accounts payable

Accrued expenses

lease liability

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Cash flows from investing activities:

Disbursements

to acquire short-term investments

from maturities of short-term investments

Disbursements to acquire

short-term investments

Proceeds from maturities

of short-term investments

from sale of equipment

cash provided by investing activities

cash provided by (used in) investing activities

Cash flows from financing activities:

proceeds from sale of common stock in an at-the-market offering

Gross proceeds from sale

of common stock in a public offering

Expenses of the public

Gross proceeds from sale

of common stock in an at-the-market offering

Expenses of the at-the-market

Proceeds from sale of common

stock pursuant to employee stock purchase plan

from exercise of stock options

cash provided by financing activities

Net increase in cash and cash equivalents

Net (decrease) increase in cash and cash equivalents

Cash and cash equivalents

at beginning of period

Cash and cash equivalents

at end of period

Cash and cash equivalents at end of period

accompanying notes are an integral part of these condensed consolidated financial statements.

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With respect to Certainty’s

equity obligations to Wistar, Certainty issued to Wistar shares of its common stock equal to five percent ( 5 % )

of the common stock of Certainty.

equity obligations to Wistar, Certainty issued to Wistar shares of its common stock equal to five percent ( 5 %) of the common stock of

in collaboration with the H.

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clinical testing of the CAR-T technology licensed by Certainty from Wistar aimed initially at treating ovarian cancer.

We submitted an

Investigational New Drug (“IND”) application to the U.S.

Food and Drug Administration (“FDA”) in March 2021 and

in August 2021, we received authorization from the FDA to commence enrollment and treatment of patients in a Phase 1 clinical trial.

We are performing the activities necessary to prepare for treatment of patients in the Phase 1 clinical trial, and we anticipate initiating

the trial in the first calendar quarter of 2022.

This study is a dose-escalation trial with two arms based on injection method—intraperitoneal

or intravenous—to determine the maximum tolerated dose in patients with recurrent epithelial ovarian cancer and to assess persistence,

expansion and efficacy of the modified T-cells.

The study is being conducted at Moffitt and will consist of 24 to 48 patients who have

received at least two prior lines of chemotherapy.

The study is estimated to be completed in two to four years depending on multiple

factors including when maximum tolerated dose is reached and the rate of patient recruitment.

We received authorization

from the U.S.

Food and Drug Administration (“FDA”) in August 2021, to commence enrollment and treatment of patients in a

Phase 1 clinical trial.

We began patient recruitment for the trial in March 2022, and that process is ongoing.

This study is a dose-escalation

trial with two arms based on injection method—intraperitoneal or intravenous—to determine the maximum tolerated dose in patients

with recurrent epithelial ovarian cancer and to assess persistence, expansion and efficacy of the modified T-cells.

The study is being

conducted at Moffitt and will consist of 24 to 48 patients who have received at least two prior lines of chemotherapy.

The study is estimated

to be completed in two to four years depending on multiple factors including when maximum tolerated dose is reached and the rate of patient

April 2020, we entered into a collaboration with OntoChem GmbH (“OntoChem”) to discover and ultimately develop anti-viral

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In these animal studies, the two compounds were compared to Remdesivir, which at the time the assays were performed was the only

anti-viral drug authorized by the FDA for the treatment of COVID-19.

The data showed that administration of the drugs to infected

hamsters did not cause any noticeable adverse effects, and monitoring of weight and general animal behavior demonstrated comparable efficacy

between each of our compounds and Remdesivir.

Based on this promising data in the animal study, we directed our team to proceed to the

next stage of drug development and we selected one of the compounds around which our team is performing combinatorial synthetic medicinal

chemistry to evaluate whether potency can be increased and pharmacokinetics optimized.

anti-viral drug authorized by the FDA for COVID-19.

The data showed that administration of the drugs to infected hamsters did not cause

any noticeable adverse effects, and monitoring of weight and general animal behavior demonstrated comparable efficacy between each of

our compounds and Remdesivir.

Based on this promising data in the animal study, we directed our team to proceed to the next stage of

drug development and we selected one of the compounds around which our team is performing combinatorial synthetic medicinal chemistry

to evaluate whether potency can be increased and pharmacokinetics optimized.

May 2021, after completion of the aforementioned animal studies, OntoChem assigned its rights and obligations related to this collaboration

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than Pfizer’s nirmatrelvir.

Whereas we believe Pfizer’s Paxlovid is a repurposed drug based on research done

on other viruses and not designed specifically for SARS-CoV-2, our compounds were designed specifically against the main protease

of SARS-CoV-2 and at the current time we do not anticipate the need for a combination therapy.

hold an exclusive worldwide, royalty-bearing license to use certain intellectual property owned or controlled by The Cleveland Clinic

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Studies have shown that vaccinating against this protein prevents breast cancer in mice.

submission of an IND application with the FDA in November 2020, and the FDA’s subsequent authorization to proceed with clinical

trials in December 2020, in October 2021, we commenced dosing patients in a Phase 1 clinical trial of our breast cancer vaccine.

Department of Defense grant, this study is a multiple-ascending dose Phase 1 trial to determine the maximum tolerated dose

of the vaccine in patients with early-stage, triple-negative breast cancer as well as monitor immune response.

The study is being conducted

at Cleveland Clinic and will consist of 18 to 24 patients who have completed treatment for early-stage, triple-negative breast cancer

within the past three years and are currently tumor-free but at high risk for recurrence.

During the course of the study, participants

will receive three vaccinations, each two weeks apart, and will be closely monitored for side effects and immune response.

is estimated to be completed in the third calendar quarter of 2022.

the FDA’s authorization to proceed with clinical trials in December 2020, in October 2021, we commenced dosing patients in a Phase

1 clinical trial of our breast cancer vaccine.

Funded by a U.S.

Department of Defense grant, this study is a multiple-ascending dose

Phase 1 trial to determine the maximum tolerated dose of the vaccine in patients with early-stage, triple-negative breast cancer as well

as monitor immune response.

The study is being conducted at Cleveland Clinic and will consist of 18 to 24 patients who have completed

treatment for early-stage, triple-negative breast cancer within the past three years and are currently tumor-free but at high risk for

During the course of the study, participants will receive three vaccinations, each two weeks apart, and will be closely monitored

for side effects and immune response.

The study is roughly one-fourth of the way complete and is estimated to be completed by the end

of calendar year 2022.

Initial indications suggest that an immune response is being observed.

November 2020, we executed a license agreement with Cleveland Clinic pursuant to which the Company was granted an exclusive worldwide,

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As part of our legacy operations, the Company remains

engaged in limited patent licensing activities regarding its liquid biopsy platform, as well as in the area of encrypted audio/video

conference calling.

We do not expect these activities to be a significant part of the Company’s ongoing operations nor do we expect

these activities to require material financial resources or attention of senior management.

engaged in limited patent licensing activities regarding its liquid biopsy platform and in the area of encrypted audio/video conference

We do not expect these activities to be a significant part of the Company’s ongoing operations nor do we expect these

activities to require material financial resources or attention of senior management.

the past several years, our revenue was derived from technology licensing and the sale of patented technologies, including revenue from

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We do not expect to begin generating revenue with respect to any of our current therapy or vaccine programs in the near

We hope to achieve a profitable outcome by eventually licensing our technologies to large pharmaceutical companies that have the

resources and infrastructure in place to manufacture, market and sell our technologies as therapeutics or vaccines.

The eventual licensing

of any of our technologies may take several years, if it is to occur at all, and may depend on positive results from human clinical trials.

Our strategy is to achieve a profitable outcome by eventually licensing our technologies to large pharmaceutical companies that

have the resources and infrastructure in place to manufacture, market and sell our technologies as therapeutics or vaccines.

licensing of any of our technologies may take several years, if it is to occur at all, and may depend on positive results from human

clinical trials.

and Management’s Plans

on currently available information as of March 11, 2022, we believe that our existing cash, cash equivalents, short-term investments

on currently available information as of June 10, 2022, we believe that our existing cash, cash equivalents, short-term investments

and expected cash flows will be sufficient to fund our activities for at least the next twelve months.

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include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair statement of our financial

position as of January 31, 2022, and results of operations and cash flows for the interim periods represented.

position as of April 30, 2022, and results of operations and cash flows for the interim periods represented.

The results of operations

for the three months ended January 31, 2022 are not necessarily indicative of the results to be expected for the entire year.

for the three and six months ended April 30, 2022 are not necessarily indicative of the results to be expected for the entire year.

Noncontrolling

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The following table sets

forth the changes in noncontrolling interest for the three months ended January 31, 2022 (in thousands):

OF NONCONTROLLING INTEREST AS A COMPONENT OF EQUITY

forth the changes in noncontrolling interest for the six months ended April 30, 2022 (in thousands):

SCHEDULE OF NONCONTROLLING INTEREST AS A COMPONENT OF EQUITY

Balance, October 31, 2021

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to noncontrolling interest

Balance, January 31, 2022

Balance, April 30, 2022

revenue has been derived solely from technology licensing and the sale of patented technologies.

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Accordingly, the performance obligations from

these agreements were satisfied and 100 %

of the revenue was recognized upon the execution of the agreements.

these agreements were satisfied and 100 % of the revenue was recognized upon the execution of the agreements.

of revenues include the costs and expenses incurred in connection with our patent licensing and enforcement activities, including inventor

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We recorded stock-based compensation expense related to service-based

stock options granted to employees and directors of approximately $ 730,000 and $ 875,000 during the three months ended January 31, 2022

stock options granted to employees and directors of approximately $ 875,000 and $ 881,000 during the three months ended April 30, 2022

and 2021, respectively, and approximately $ 1,605,000 and $ 1,756,000 during the six months ended April 30, 2022 and 2021, respectively.

stock options granted to employees and directors that vest based on market conditions, such as the trading price of the Company’s

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compensation cost over the implied service period (median time to vest).

On June 1, 2021, our Chairman, President and Chief Executive

Officer and our Chief Operating Officer and Chief Financial Officer were awarded market condition stock options for 2,000,000 shares

and 100,000 shares of common stock, respectively, that vest in four equal installments upon the Company’s share price achieving

targets ranging from $ 5.00 to $ 8.00 per share, with implied service periods of three to fifteen months.

We recorded market condition

stock-based compensation expense during the three months ended January 31, 2022 and 2021 of approximately $ 1,405,000 and $ 0 , respectively.

On June 1, 2021, our Chairman and Chief Executive Officer and

our President, Chief Operating Officer and Chief Financial Officer were awarded market condition stock options for 2,000,000 shares and

100,000 shares of common stock, respectively, that vest in four equal installments upon the Company’s share price achieving targets

ranging from $ 5.00 to $ 8.00 per share, with implied service periods of three to fifteen months.

We recorded market condition stock-based

compensation expense during the three months ended April 30, 2022 and 2021 of approximately $ 587,000 and $ 0 , respectively, and approximately

$ 1,993,000 and $ 0 during the six months ended April 30, 2022 and 2021, respectively.

compensation cost for service-based stock options granted to consultants is measured at the grant date, based on the fair value of the

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We recorded stock-based consulting expense related to stock options granted

to consultants of approximately $ 109,000 and $ 54,000 during the three months ended January 31, 2022 and 2021, respectively.

the three months ended January 31, 2022, we had two stock option plans:

to consultants of approximately $ 109,000 and $ 132,000 during the three months ended April 30, 2022 and 2021, respectively, and approximately

$ 218,000 and $ 186,000 during the six months ended April 30, 2022 and 2021, respectively.

the three months ended April 30, 2022, we had two stock option plans:

the Anixa Biosciences, Inc.

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Option Activity

the three months ended January 31, 2022 and 2021, we granted options to purchase 30,000 shares and 1,130,000 shares of common stock,

respectively, to employees and consultants, with exercise prices ranging from $ 2.83 to $ 3.24 per share, pursuant to the 2018 Share Plan.

During the three months ended January 31, 2022 and 2021, stock options to purchase 100,000 shares of common stock, net of 53,091 shares

withheld on a cashless exercise, and 29,880 shares of common stock, respectively, were exercised with aggregate proceeds of $ 0 and approximately

the three months ended April 30, 2022 and 2021, we granted options to purchase 1,400,000

shares and 250,000

shares of common stock, respectively, and during

the six months ended April 30, 2022 and 2021, we granted options to purchase 1,430,000

shares and 1,380,000

shares of common stock, respectively, to employees

and consultants, with exercise prices ranging from $ 2.62

per share, pursuant to the 2018 Share Plan.

the three months ended April 30, 2022 and 2021, stock options to purchase 0

shares of common stock and 77,571

shares of common stock, net of 7,937

shares withheld on a cashless exercise, respectively,

were exercised with aggregate proceeds of $ 0

respectively.

During the six months ended April 30, 2022 and 2021, stock options to purchase 46,909

shares of common stock, net of 53,091

shares withheld on a cashless exercise and 107,451

shares of common stock, net of 7,937

shares withheld on a cashless exercise, respectively,

were exercised with aggregate proceeds of $ 0

respectively.

2010 Share Plan provided for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and

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respect to the ability to grant future awards on July 14, 2020.

Information regarding the 2010 Share Plan for the three months ended

January 31, 2022 is as follows:

Information regarding the 2010 Share Plan for the six months ended April

30, 2022 is as follows:

SCHEDULE OF OPTION ACTIVITY

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Options outstanding at October 31, 2021

Forfeited/Expired

Options outstanding

and exercisable at

January 31, 2022

following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of January 31, 2022:

April 30, 2022

following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of April 30, 2022:

SCHEDULE OF OUTSTANDING AND EXERCISABLE

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Exercise Price

regarding the 2010 Share Plan for the three months ended January 31, 2021 is as follows:

Average Exercise

Price Per Share

Intrinsic Value

(in thousands)

Options Outstanding

at October 31, 2020

Forfeited/Expired

Outstanding at January 31, 2021

Exercisable at January 31, 2021

following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of January 31, 2021:

Exercise Prices

Contractual Life

Exercise Price

Contractual Life

2018 Share Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards,

performance awards and stock units to employees, directors and consultants.

As of January 31, 2022, the 2018 Share Plan had 2,000,000

shares available for future grants.

Information regarding the 2018 Share Plan for the three months ended January 31, 2022 is as follows:

As of April 30, 2022, the 2018 Share Plan had 600,000 shares

available for future grants.

Information regarding the 2018 Share Plan for the six months ended April 30, 2022 is as follows:

SCHEDULE OF OPTION ACTIVITY

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Price Per Share

Intrinsic Value

(in thousands)

Options outstanding

at October 31, 2021

outstanding at January 31, 2022

exercisable at January 31, 2022

following table summarizes information about stock options outstanding and exercisable under the 2018 Share Plan as of January 31, 2022:

Options outstanding at October 31, 2021

Options outstanding at April 30, 2022

Options exercisable at April 30, 2022

following table summarizes information about stock options outstanding and exercisable under the 2018 Share Plan as of April 30, 2022:

SCHEDULE OF OUTSTANDING AND EXERCISABLE

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Contractual Life

regarding the 2018 Share Plan for the three months ended January 31, 2021 is as follows:

Average Exercise

Price Per Share

(in thousands)

Options outstanding

at October 31, 2020

Forfeited/Expired

outstanding at January 31, 2021

exercisable at January 31, 2021

following table summarizes information about stock options outstanding and exercisable under the 2018 Share Plan as of January 31, 2021:

Exercise Prices

Contractual Life

Exercise Price

Contractual Life

addition to options granted under stock option plans, during the years ended October 31, 2012 and 2013, the Board of Directors approved

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Information regarding stock options that were granted outside of share

plans for the three months ended January 31, 2022 is as follows:

plans for the six months ended April 30, 2022 is as follows:

SCHEDULE OF OPTION ACTIVITY

Price Per Share

(in thousands)

Options outstanding at October

Options outstanding

and exercisable at

January 31, 2022

following table summarizes information about stock options outstanding and exercisable that were granted outside of share plans as of

January 31, 2022:

SCHEDULE OF OUTSTANDING AND EXERCISABLE

Average Remaining

Contractual Life

Exercise Price

regarding stock options that were granted outside of share plans for the three months ended January 31, 2021 is as follows:

Average Exercise

Price Per Share

Intrinsic Value

(in thousands)

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and exercisable at

January 31, 2021

April 30, 2022

following table summarizes information about stock options outstanding and exercisable that were granted outside of share plans as of

January 31, 2021:

Exercise Prices

Contractual Life

April 30, 2022:

SCHEDULE OF OUTSTANDING AND EXERCISABLE

Average Remaining Contractual Life

Exercise Price

stock awards granted to employees, directors and consultants that vest upon grant, we recognize expense at the date of grant based on

the grant date market price of the underlying common stock.

We did not grant any stock awards that vested upon grant during the three

months ended January 31, 2022 or 2021.

the grant date closing price of the underlying common stock.

We did not grant any stock awards that vested upon grant during the six

months ended April 30, 2022 or 2021.

Stock Purchase Plan

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by our shareholders on September 27, 2018.

During the three months ended January 31, 2022 and 2021, no shares were purchased under the

During the six months ended April 30, 2022 and 2021, employees purchased 2,389 and 1,634 shares,

respectively, with aggregate proceeds of approximately $ 7,000 and $ 3,000 , respectively.

October 30, 2020, we issued a warrant, expiring on October 30, 2025 , to purchase 60,000 shares of common stock at $ 2.06 per share, vesting

over five months , to a consultant for investor relations services.

We recorded consulting expense of approximately $ 57,000 during the

three months ended January 31, 2021, based on the fair value of the warrant on the date of grant recognized on a straight-line basis

over the vesting period.

On November 16, 2021, the warrant was exercised on a cashless basis and 25,484 shares were withheld as payment.

We recorded consulting expense of approximately $ 38,000 and $ 96,000 ,

respectively, during the three and six months ended April 30, 2021, based on the fair value of the warrant on the date of grant recognized

on a straight-line basis over the vesting period.

On November 16, 2021, the warrant was exercised on a cashless basis and 25,484 shares

were withheld as payment.

November 1, 2021 we issued a warrant, expiring on October 30, 2026 , to purchase 60,000 shares of common stock at $ 4.77 per share, vesting

over five months , to a consultant for investor relations services.

We recorded consulting expense of approximately $ 110,000 during the

three months ended January 31, 2022, based on the fair value of the warrant on the date of grant recognized on a straight-line basis

over the vesting period.

of January 31, 2022, we also had warrants outstanding to purchase 300,000 shares of common stock at $ 6.56 per share, issued during fiscal

We recorded consulting expense of approximately $ 110,000 and $ 220,000 ,

respectively, during the three and six months ended April 30, 2022, based on the fair value of the warrant on the date of grant recognized

on a straight-line basis over the vesting period.

of April 30, 2022, we also had warrants outstanding to purchase 300,000 shares of common stock at $ 6.56 per share, issued during fiscal

year 2021 and expiring on March 22, 2026 .

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assumptions a market participant would use in pricing the asset and liabilities.

following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of January 31, 2022:

OF FAIR VALUE MEASUREMENTS

following table presents the hierarchy for our financial assets measured at fair value on a recurring basis as of April 30, 2022:

SCHEDULE OF FAIR VALUE MEASUREMENTS

(in thousands)

Money market funds:

Cash and cash

Cash equivalents

Certificates of deposit:

Cash and cash equivalents

Cash equivalents

Short-term investments

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Money market funds:

Cash and cash

Cash equivalents

Certificates of deposit:

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Total financial assets

estimated fair value of prepaid expenses and other current assets and accounts payable approximates their individual carrying

amounts due to the short-term nature of these instruments.

Cash and cash equivalents are stated at carrying value which approximates

estimated fair value of prepaid expenses and other current assets and accounts payable approximates their individual carrying amounts

due to the short-term nature of these instruments.

Cash balances are stated at carrying value which approximates fair value.

expenses consist of the following as of:

OF ACCRUED EXPENSES

(in thousands)

Payroll and related expenses

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Accrued other

Accrued expenses

LOSS PER SHARE OF COMMON STOCK

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is the same as Basic EPS, as the inclusion of the effect of common share equivalents then outstanding would be anti-dilutive.

reason, excluded from the calculation of Diluted EPS for the three months ended January 31, 2022 and 2021, were stock options to purchase

reason, excluded from the calculation of Diluted EPS for the six months ended April 30, 2022 and 2021, were stock options to purchase

12,100,626 and 8,813,626 shares, respectively, and warrants to purchase 360,000 and 860,000 shares, respectively.

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could be subject to limitations under Internal Revenue Code section 382.

We have no unrecognized income tax benefits as of January 31,

We have no unrecognized income tax benefits as of April 30,

2022 and October 31, 2021 and we account for interest and penalties related to income tax matters, if any, in general and administrative

lease approximately 2,000

square feet of office space at 3150 Almaden Expressway,

San Jose, California (our principal executive offices) from an unrelated party pursuant to an operating lease that was to expire

lease approximately 2,000 square feet of office space at 3150 Almaden Expressway, San Jose, California (our principal executive offices)

from an unrelated party pursuant to an operating lease that was to expire on September 30, 2021 .

Effective August 17, 2021, the lease

was amended to extend the expiration date to September 30, 2024, with an option to extend the lease an additional two years.

rent is approximately $ 5,000

per month and the lease provides for annual increases

of approximately 3 %

and an escalation clause for increases in certain operating costs.

The amendment to the lease resulted in a right-of-use asset and lease

liability of approximately $ 260,000

rent is approximately $ 5,000 per month and the lease provides for annual increases of approximately 3 % and an escalation clause for increases

in certain operating costs.

The amendment to the lease resulted in a right-of-use asset and lease liability of approximately $ 260,000

with a discount rate of 10 %.

Rent expense was approximately $ 17,000

and $ 16,000 ,

respectively, for the three months ended January 31, 2022 and 2021.

Rent expense was approximately $ 17,000 and $ 16,000 , respectively, for the three months ended April 30, 2022

and 2021, and approximately $ 33,000 and $ 32,000 , respectively, for the six months ended April 30, 2022 and 2021.

operating leases, the lease liability is initially measured at the present value of the unpaid lease payments.

The remaining 53 -month

lease term as of January 31, 2022 for the Company’s lease includes the noncancelable period of the lease and the additional two-year

lease term as of April 30, 2022 for the Company’s lease includes the noncancelable period of the lease and the additional two-year

option period that the Company expects to exercise.

All right-of-use assets are reviewed for impairment.

sheet information related to the Company’s lease is presented below:

of OPERATING LEASE

Operating Lease:

Operating lease right-of-use asset

Right-of-use liability,

Operating lease liability

Operating lease liability,

of January 31, 2022, the annual minimum lease payments of our operating lease liabilities were as follows:

All right-of-use assets are reviewed for impairment when indications of impairment

of April 30, 2022, the annual minimum future lease payments of our operating lease liabilities were as follows:

of MINIMUM LEASE PAYMENTS

Ended October 31,

For Periods Ended October 31,

(in thousands)

future minimum lease payments, undiscounted

Total future minimum lease

payments, undiscounted

Imputed interest

value of future minimum lease payments

Present value of future

minimum lease payments

AND CONTINGENCES

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or financial condition.

Collaborative

Research and License Commitments

of January 31, 2022, our commitments under the collaborative and license agreements with Moffitt, Wistar, Cleveland Clinic and MolGenie

for the year ending October 31, 2022 were approximately $ 320,000 .

of Coronavirus Pandemic

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The following represents selected financial information for our segments for the three

months ended January 31, 2022 and 2021 and as of January 31, 2022 and October 31, 2021:

and six months ended April 30, 2022 and 2021 and as of April 30, 2022 and October 31, 2021, in thousands:

of SEGMENT INFORMATION

For the Three Months Ended January

(in thousands)

the Three Months Ended April 30,

the Six Months

Ended April 30,

CAR-T Therapeutics

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Total operating costs and expenses

non-cash share-based compensation

costs and expenses excluding

non-cash share-based compensation

Operating costs and expenses excluding non-cash

share based compensation expense:

Less non-cash share-based

costs and expenses excluding non-cash share-based compensation

Operating costs and

expenses excluding non-cash share based compensation:

CAR-T Therapeutics

1 unchanged sentence

Anti-Viral Therapeutics

Operating costs and expenses excluding non-cash

share based compensation expense

(in thousands)

costs and expenses excluding non-cash share based compensation expense

Total assets:

5 unchanged sentences

Company’s consolidated revenue of $ 513,000 and inventor royalties, contingent legal fees, litigation and licensing expense of $ 385,000

for the three months ended January 31, 2021 were solely related to our encrypted audio/video conference calling technology, which is

included in our other segment.

All our revenue is generated domestically (United States) based on the country in which the licensee is

for the six months ended April 30, 2021 were solely related to our encrypted audio/video conference calling technology, which is included

in our Other segment.

All our revenue is generated domestically (United States) based on the country in which the licensee is located.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements