What changed in this filing

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Item 1A. Risk Factors

2023-07-24 compared with 2022-07-22 · 18 added, 39 removed, 211 unchanged (21% of the section changed)

3 unchanged sentences

We historically incurred losses from operating activities, may require significant capital and may never achieve sustained profitability.

For the years ended April 30, 2022 and 2021, the Company had net income of approximately $548,000 and $362,000, respectively.

As of April 30, 2022, the Company has an accumulated deficit of approximately $72.0 million.

As of April 30, 2022, we had working capital of $2.2 million and cash of $9.0 million.

For the years ended April 30, 2023 and 2022, the Company had a net loss of approximately $5.3 million and net income of $548,000, respectively.

As of April 30, 2023, the Company has an accumulated deficit of approximately $77.3 million, negative working capital of $2.3 million, and a cash balance of $10.1 million.

The Company also had cash provided by operations of approximately $4.0 million for the twelve months ending April 30, 2023.

We believe that our cash on hand, together with expected cash flows from operations, are adequate to fund our operations through at least August 2024.

8 unchanged sentences

• the cost incurred in hiring and maintaining qualified personnel.

Currently, the Company derives revenue primarily from research services, while pursuing efforts to further develop its SaaS and drug discovery business units.

We are investing resources to further grow our sales of all of our business units.

Currently, the Company derives revenue primarily from research services, while pursuing efforts to further develop its drug discovery business units.

To become sustainably profitable, we will need to generate revenues to offset our operating costs, including our research and development and general and administrative expenses.

23 unchanged sentences

Such regulation and requirements are subject to change, and may result in additional costs or delays in providing our products to our customers.

In addition, the healthcare industry in general is highly regulated in the United States at both the federal and state

In addition, the healthcare industry in general is highly regulated in the United States at both the federal and state levels.

We seek to conduct our business in compliance with all applicable laws, but many of the laws and regulations potentially applicable to us are vague or unclear.

19 unchanged sentences

This may be difficult in the healthcare industry where competition for skilled personnel is intense.

In fiscal 2021, we identified that there was a material weaknesses in our internal control over financial reporting, which if not remediated, could materially adversely affect our ability to timely and accurately report our results of operations and financial condition.

We believe this material weakness has since been remediated as of the filing date of this Form 10-K.

If we fail to maintain an effective system of internal controls, the accuracy and timing of our financial reporting may be adversely affected.

As described in “Part II, Item 9A - Controls and Procedures,” of this Form 10-K we have concluded that there was a material weakness in our internal control over financial reporting in our prior fiscal reporting year.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

It is necessary for us to maintain effective internal control over financial reporting to prevent fraud and errors and to maintain effective disclosure controls and procedures so that we can provide timely and reliable financial and other information.

Specifically, our risk assessment procedures over certain of our contractual arrangements requiring the payment of royalties for the licensing of technology from third-parties did not adequately identify the risks and consider the Company's obligations based on the recognition of oncology services revenue for the prior fiscal year.

As a result, the Company had missing process level controls over the review of royalty arrangements and the timely determination and recognition of related liabilities.

As further described in Part II, Item 9A in this Annual Report on Form 10-K, while we believe that we have implemented and carried out a remediation plan to remediate this material weakness, there can be no assurance that this will not occur in future reports.

We may identify additional material weaknesses in our internal control over financial reporting in the future.

we are unable to fully remediate this material weakness or we identify additional material weaknesses in our internal control over financial reporting in the future, we may not be able to analyze, record and report financial information accurately, and/or to prepare our financial statements within the time periods specified by the rules.

Because our industry is very competitive and many of our competitors have substantially greater capital resources and more experience in research and development, we may not succeed in selling or increasing sales of our products and technologies.

14 unchanged sentences

Enforcing a claim that someone else illegally obtained and is using our trade secrets, like patent litigation, is expensive and time consuming, and the outcome is unpredictable.

In addition, courts outside the United States are sometimes less willing to protect trade secrets.

In addition, courts

outside the United States are sometimes less willing to protect trade secrets.

Finally, our competitors may independently develop equivalent knowledge, methods and know-how.

12 unchanged sentences

Patent applications are maintained in secrecy in the United States and also are maintained in secrecy outside the United States until the application is published.

Accordingly, we can conduct only limited searches to determine whether our technology

infringes the patents or patent applications of others.

Accordingly, we can conduct only limited searches to determine whether our technology infringes the patents or patent applications of others.

Any claims of patent infringement asserted by third parties would be time-consuming and could likely:

25 unchanged sentences

If we are unsuccessful in advancing our research and development programs into clinical testing or in obtaining regulatory approval, our long-term business prospects will be harmed.

Drug discovery programs, particularly those in early stages of development, may never be commercialized.

Our future success in drug discovery depends, in part, on our ability to select successful product candidates, complete preclinical development of these product candidates and advance them to and through clinical trials.

Early-stage product candidates in particular require significant investment in development, preclinical studies and clinical trials, regulatory clearances and substantial additional investment before they can be commercialized, if at all.

Our research and development programs related to drug discovery may not lead to commercially viable products for several reasons, and are subject to the risks and uncertainties associated with drug development.

For example, we may fail to identify promising product candidates, our product candidates may fail to be safe and effective in preclinical tests or clinical trials, or we may have inadequate financial or other resources to pursue discovery and development efforts for new product candidates.

From time to time, we may establish and announce certain development goals for our product candidates and programs.

However, given the complex nature of the drug discovery and development process, it is difficult to predict accurately if and

when we will achieve these goals.

If we are unsuccessful in advancing our research and development programs into clinical testing or in obtaining regulatory approval, our long-term business prospects will be harmed.

Impairment of goodwill or other long term assets may adversely impact future results of operations

We have intangible assets, including goodwill and capitalized software development costs, on our balance sheet.

If the future growth and operating results of our business are not as strong as anticipated and/or our market capitalization declines, this could impact the assumptions used in calculating the fair value of goodwill or recoverability of our capitalized software development costs.

To the extent impairment occurs, the carrying value of our assets will be written down to an implied fair value and an impairment charge will be made to our income from continuing operations.

During 2023, we recorded an asset impairment charge related to software development costs of $807,000, reducing the net book value to zero.

To the extent any future impairment occurs, the carrying value of our assets will be written down to an implied fair value and an impairment charge will be made to our income from continuing operations.

Such an impairment charge could materially and adversely affect our operating results.

53 unchanged sentences

Furthermore, this concentration of voting power could have the effect of delaying, deterring or preventing a change of control or other business combination that might otherwise be beneficial to our stockholders.

This significant concentration of share

ownership may also adversely affect the trading price for our common stock because investors may perceive disadvantages in owning stock in a company that is controlled by a small number of stockholders.

This significant concentration of share ownership may also adversely affect the trading price for our common stock because investors may perceive disadvantages in owning stock in a company that is controlled by a small number of stockholders.

We have not paid any cash dividends in the past and have no plans to issue cash dividends in the future, which could cause the value of our common stock to have a lower value than other similar companies which do pay cash dividends.

17 unchanged sentences

If any of our significant information technology systems suffer severe damage, disruption, or shutdown, and our business continuity plans do not effectively resolve the issues in a timely manner, our product sales, financial condition, and results of operations may be materially and adversely affected, and we could experience delays in reporting our financial results.

In addition, there is a risk of business interruption, violation of data privacy laws and regulations, litigation, and reputational damage from leakage of confidential information.

In addition, there is a risk of business interruption,

violation of data privacy laws and regulations, litigation, and reputational damage from leakage of confidential information.

Any interruption of our information technology systems could have operational, reputational, legal, and financial impacts that may have a material adverse effect on our business.

4 unchanged sentences

In response, most countries around the world imposed quarantines and restrictions on travel and mass gatherings in an effort to contain the spread of the virus.

Employers worldwide were also required to increase, as much as possible, the capacity

and arrangement for employees to work remotely.

Employers worldwide were also required to increase, as much as possible, the capacity and arrangement for employees to work remotely.

More recently, many of the restrictions and travel bans have been eased or lifted completely as global society as a whole works to return to pre-pandemic business and personal practices.

2 unchanged sentences

These could include disruptions or restrictions on our ability to travel, pursue partnerships and other business transactions, receive shipments of biologic materials, as well as be impacted by the temporary closure of the facilities of suppliers.

The spread of an infectious disease, including COVID-19, may also result in the inability of our suppliers to deliver supplies to us on a timely basis.

The spread of an infectious disease, like COVID-19, may also result in the inability of our suppliers to deliver supplies to us on a timely basis.

In addition, health professionals may reduce staffing and reduce or postpone meetings with clients in response to the spread of an infectious disease.

2 unchanged sentences

and, currently, we do not expect any material impact on our long-term activity.

The extent to which COVID-19 impacts our business will depend on future developments which are highly uncertain and cannot be predicted, including, but not limited to, new information which may emerge concerning the increased severity of the COVID-19 virus, the actions to contain COVID-19, or treat its impact.

The extent to which any spread of disease, like that of the COVID-19 pandemic, impacts our business will depend on future developments which are highly uncertain and cannot be predicted, including, but not limited to, information which may emerge concerning the spreading and severity of the any infectious diseases, the actions to contain these, or treat their impact.

Deterioration in general economic conditions in the United States and globally, including the effect of prolonged periods of inflation on our customers and suppliers, could harm our business and results of operations.

Our business and results of operations could be adversely affected by changes in national or global economic conditions.

These conditions include but are not limited to inflation, rising interest rates, availability of capital markets, energy availability and costs (including fuel surcharges), the negative impacts caused by pandemics and public health crises (including the COVID-19 pandemic), negative impacts resulting from the military conflict between Russia and the Ukraine, and the effects of governmental initiatives to manage economic conditions.

These conditions include but are not limited to inflation, rising interest rates, availability of capital markets, energy availability and costs (including fuel surcharges), the negative impacts caused by pandemics and public health crises (such as the COVID-19 pandemic), negative impacts resulting from the military conflict between Russia and the Ukraine, and the effects of governmental initiatives to manage economic conditions.

Impacts of such conditions could be passed on to our business in the form of a reduced customer base and/or potential for new bookings due to possible reductions in pharmaceutical and biotech industry-wide spend on research and development and/or economic pressure on our suppliers to pass on increased costs.

1 unchanged sentence

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-K

Item 1A. Risk Factors