27 unchanged sentences
Our Lumin software contains comprehensive information derived from our research services and clinical studies.
−Removed: Lumin leverages Champions’ large Datacenter coupled with analytics and artificial intelligence to provide a
−Removed: robust tool for computational cancer research.
+Added: Lumin leverages Champions’ large Datacenter coupled with analytics and artificial intelligence to provide a robust tool for computational cancer research.
Insights developed using Lumin can provide the basis for biomarker hypotheses, reveal potential mechanisms of therapeutic resistance, and guide the direction of additional preclinical evaluations.
2 unchanged sentences
We employ the use of our proprietary experimental platforms to rapidly validate these targets for further drug development efforts.
−Removed: We have a rich pipeline of targets at various stages of discovery and validation, with a select group that has progressed to therapeutic development.
+Added: We have a rich pipeline of targets at various stages of discovery and validation, with a select group that has progressed to therapeutic development, and we plan to continue investing in this research and development.
Our commercial strategy for the validated targets and therapeutics established from this business is wide-ranging and still being developed.
3 unchanged sentences
In the past, we have met these cash requirements through cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities, and sales of products and services.
−Removed: For the six months ended October 31, 2021, the Company had net income of approximately $105,000 and cash provided by operations of $1.4 million.
−Removed: As of October 31, 2021, the Company had an accumulated deficit of approximately $72.4 million, working capital of $1.2 million, and cash on hand of $4.8 million.
+Added: For the nine months ended January 31, 2022, the Company had net income of approximately $892,000 and cash provided by operations of $5.7 million.
+Added: As of January 31, 2022, the Company had an accumulated deficit of approximately $71.6 million, working capital of $2.3 million, and cash on hand of $8.7 million.
We believe that our cash on hand, together with expected positive cash flows from operations for fiscal year 2022, are adequate to fund operations through at least 12 months from the filing of this 10-Q.
3 unchanged sentences
The following table summarizes our operating results for the periods presented below (dollars in thousands):
−Removed: For the Three Months Ended October 31,
+Added: For the Three Months Ended January 31,
Revenue 2021 % of
7 unchanged sentences
Income from operations $ 830 6.3 % $ 982 9.1 % (15.5) %
−Removed: For the Six months ended October 31,
+Added: For the Nine Months Ended January 31,
Revenue 2021 % of
8 unchanged sentences
Oncology Services Revenue
−Removed: Oncology services revenue, which is primarily derived from pharmacology studies, was $11.8 million and $10.1 million for the three months ended October 31, 2021 and 2020, respectively, an increase of $1.7 million or 16.5%.
−Removed: Oncology services revenue was $23.0 million and $19.7 million for the six months ended October 31, 2021 and 2020, respectively, an increase of $3.4 million or 17.2%.
+Added: Oncology services revenue, which is primarily derived from pharmacology studies, was $13.2 million and $10.8 million for the three months ended January 31, 2022 and 2021, respectively, an increase of $2.4 million or 22.0%.
+Added: Oncology services revenue was $36.2 million and $30.5 million for the nine months ended January 31, 2022 and 2021, respectively, an increase of
+Added: $5.8 million or 18.9%.
The increase in revenue is due to continued demand for our core services and the expansion of both our platform and product lines driving increased sales, both in number and size of studies.
Cost of Oncology Services
−Removed: Cost of oncology services for the three months ended October 31, 2021 and 2020 were $5.6 million.
−Removed: For the three months ended October 31, 2021 and 2020, gross margins were 52.4% and 44.2%, respectively.
−Removed: Cost of oncology services for the six months ended October 31, 2021 and 2020 were $11.0 million and $11.0 million, respectively, an increase of $25,000.
−Removed: For the six months ended October 31, 2021 and 2020, gross margins were 52.2% and 44.2%, respectively.
−Removed: The improvement in gross margin was primarily due to the reduction in outsourced lab work.
−Removed: Performing the work internally offset the increase in compensation and lab supply expenses resulting from the increase in study volume.
+Added: Cost of oncology services for the three months ended January 31, 2022 and 2021 were $6.4 million and $4.6 million, respectively.
+Added: For the three months ended January 31, 2022 and 2021, gross margins were 51.4% and 57.2%, respectively.
+Added: Cost of oncology services for the nine months ended January 31, 2022 and 2021 were $17.4 million and $15.6 million, respectively.
+Added: For the nine months ended January 31, 2022 and 2021, gross margins were 51.9% and 48.8%, respectively.
+Added: Cost of sales for the three months ended January 31, 2021 were atypically low resulting in an unusually high gross margin.
+Added: The gross margins for the nine month periods ended January 2022 and 2021, respectively, were more indicative of margin trends.
+Added: The current year to date improvement was primarily due to the reduction in outsourced lab work which offset the increase in compensation and lab supply expenses resulting from the increase in study volume.
+Added: Additionally, the increase in gross margin demonstrated the inherent leverage in our operating model.
Research and Development
−Removed: Research and development expenses for the three months ended October 31, 2021 and 2020 were $2.3 million and $1.7 million, respectively, an increase of approximately $649,000 or 39.3%.
−Removed: Research and development expenses for the six months ended October 31, 2021 and 2020 were $4.6 million and $3.2 million, respectively, an increase of approximately $1.4 million or 41.8%.
−Removed: The increase for the three and six month periods was mainly due to increased compensation and sequencing costs related to our increased investment in our therapeutic target discovery platform.
+Added: Research and development expenses for the three months ended January 31, 2022 and 2021 were $2.2 million and $1.9 million, respectively, an increase of approximately $302,000 or 16.1%.
+Added: Research and development expenses for the nine months ended January 31, 2022 and 2021 were $6.8 million and $5.1 million, respectively, an increase of approximately $1.7 million or 32.4%.
+Added: The increase for the three and nine month periods was mainly due to increased compensation and sequencing costs related to our increased investment in our therapeutic target discovery platform.
Sales and Marketing
−Removed: Sales and marketing expenses for the three months ended October 31, 2021 and 2020 were $1.6 million and $1.3 million, respectively, an increase of $292,000, or 21.7%.
−Removed: Sales and marketing expenses for the six months ended October 31, 2021 and 2020 were $3.2 million and $2.6 million, respectively, an increase of $658,000, or 25.7%.
−Removed: The increase for the three and six month periods is mainly due to compensation expense driven by the expansion of our research services business development team and the addition of a Software as a Service ("SaaS") business development team.
+Added: Sales and marketing expenses for the three months ended January 31, 2022 and 2021 were $1.5 million, respectively.
+Added: Sales and marketing expenses for the nine months ended January 31, 2022 and 2021 were $4.8 million and $4.0 million, respectively, an increase of $716,000, or 17.7%.
+Added: The increase for the nine month period is mainly due to compensation expense driven by the expansion of our research services business development team and the addition of a Software as a Service ("SaaS") business development team.
General and Administrative
−Removed: General and administrative expenses for the three months ended October 31, 2021 and 2020 were $2.0 million and $1.5 million, an increase of $507,000, or 34.5%.
−Removed: General and administrative expenses for the six months ended October 31, 2021 and 2020 were $4.1 million and $2.9 million, an increase of $1.3 million, or 44.9%.
+Added: General and administrative expenses for the three months ended January 31, 2022 and 2021 were $2.2 million and $1.8 million, an increase of $391,000, or 21.3%.
+Added: General and administrative expenses for the nine months ended January 31, 2022 and 2021 were $6.4 million and $4.7 million, an increase of $1.7 million, or 35.6%.
The increase was primarily due to an increase in compensation as well as an increase in IT related expenses to support the overall infrastructure growth of the organization.
−Removed: Inflation does not have a meaningful impact on the results of our operations.
The following discussion relates to the major components of our cash flows:
Cash Flows from Operating Activities
−Removed: Net cash provided by operating activities was $1.4 million compared to net cash provided by operations of $164,000 for the six months ended October 31, 2021 and 2020, respectively.
−Removed: The cash generated from operating activities during the current period was primarily due to operating income excluding stock compensation, depreciation and amortization expenses, and changes in current balance sheet accounts in the ordinary course of business.
+Added: Net cash provided by operating activities was $5.7 million compared to net cash provided by operations of $299,000 for the nine months ended January 31, 2022 and 2021, respectively.
+Added: The cash generated from operating activities during the current period was primarily due to improving operating income excluding stock compensation and depreciation and amortization expenses.
Cash Flows from Investing Activities
−Removed: Net cash used in investing activities was $1.5 million and $1.1 million for the six months ended October 31, 2021 and 2020, respectively.
+Added: Net cash used in investing activities was $1.9 million and $2.3 million for the nine months ended January 31, 2022 and 2021, respectively.
The cash used in investing activities was primarily for the investment in additional lab equipment and software development.
Cash Flows from Financing Activities
−Removed: Net cash provided by financing activities was $123,000 for the six months ended October 31, 2021 compared to cash provided by financing activities $1.2 million for the six months ended October 31, 2020, respectively.
−Removed: Cash provided by financing activities decreased as a direct result of a decrease in options exercised versus the prior year period offset by the application of a financing lease payment for the six months ending October 31, 2020.
+Added: Net cash provided by financing activities was $191,000 for the nine months ended January 31, 2022 compared to cash provided by financing activities $1.1 million for the nine months ended January 31, 2021.
+Added: Cash provided by financing activities decreased primarily due to a reduction in the number of options exercised compared to the prior year.
Critical Accounting Estimates and Policies
12 unchanged sentences
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.