What changed in this filing

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Item 1. Financial Statements

2024-03-15 compared with 2023-12-13 · 83 added, 72 removed, 391 unchanged (28% of the section changed)

25 unchanged sentences

Total liabilities $ 28,845 $ 29,675

Stockholders’ equity:

Stockholders’ equity (deficiency):

Common stock, $ .001 par value;

1 unchanged sentence

13,714,099 and 13,558,650 shares issued;

and 13,593,766 and 13,544,228 outstanding as of October 31, 2023 and April 30, 2023, respectively

and 13,593,766 and 13,544,228 outstanding as of January 31, 2024 and April 30, 2023, respectively

Treasury stock, at cost ( 708 ) ( 74 )

1 unchanged sentence

Accumulated deficit ( 84,484 ) ( 77,317 )

Total stockholders’ equity 93 4,636

Total liabilities and stockholders’ equity $ 28,294 $ 34,311

Total stockholders’ equity (deficiency) ( 2,058 ) 4,636

Total liabilities and stockholders’ equity (deficiency) $ 26,787 $ 34,311

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

3 unchanged sentences

Three Months Ended

October 31, Six Months Ended

January 31, Nine Months Ended

2024 2023 2024 2023

6 unchanged sentences

Total costs and operating expenses 14,596 15,231 43,238 43,534

Income (loss) from operations ( 1,955 ) 7 ( 4,507 ) ( 277 )

Other loss ( 105 ) ( 9 ) ( 91 ) ( 27 )

Loss from operations ( 2,577 ) ( 2,458 ) ( 7,085 ) ( 2,735 )

Other income (loss) 58 36 ( 33 ) 9

Loss before provision for income taxes ( 2,519 ) ( 2,422 ) ( 7,118 ) ( 2,726 )

7 unchanged sentences

CHAMPIONS ONCOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY)

(Dollars in Thousands)

3 unchanged sentences

Stockholders'

Equity (Deficiency)

Shares Amount Shares Amount

11 unchanged sentences

Balance October 31, 2023 13,593,766 $ 14 120,333 $ ( 708 ) $ 82,741 $ ( 81,954 ) $ 93

Stock-based compensation — — — — 379 — 379

Net loss — — — — — ( 2,530 ) ( 2,530 )

Balance January 31, 2024 13,593,766 $ 14 120,333 ( 708 ) $ 83,120 $ ( 84,484 ) $ ( 2,058 )

Common Stock Treasury Stock Additional

11 unchanged sentences

Balance October 31, 2022 13,558,650 $ 14 — — $ 81,475 $ ( 72,317 ) $ 9,172

Stock-based compensation — — — — 331 — 331

Net loss — — — — — ( 2,439 ) ( 2,439 )

Balance January 31, 2023 13,558,650 $ 14 — — $ 81,806 $ ( 74,756 ) $ 7,064

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

2 unchanged sentences

(Dollars in Thousands)

Six Months Ended

Nine Months Ended

Operating activities:

36 unchanged sentences

(Italy), and Corellia A.I..

For the three and six months ended October 31, 2023 and 2022, there were no revenues earned by these subsidiaries.

For the three and nine months ended January 31, 2024 and 2023, there were no revenues earned by these subsidiaries.

The Company’s functional currency for its foreign subsidiaries is the U.S.

5 unchanged sentences

The April 30, 2023 condensed consolidated balance sheet in the accompanying interim condensed consolidated financial statements was derived from audited consolidated financial statements.

The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual consolidated financial statements for the fiscal year ended April 30, 2023, as filed on Form 10-K with the SEC.

In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Company’s Annual Report on Form 10-K for the year ended April 30, 2023.

The results of operations for the interim periods are not necessarily indicative of the results of operations for a full fiscal year.

4 unchanged sentences

The Company considers only those investments which are highly liquid, readily convertible to cash, and with original maturities of three months or less to be cash equivalents.

As of October 31, 2023 the Company had cash equivalents of $ 3.6 million and, as of April 30, 2023, the Company had no cash equivalents.

As of January 31, 2024 the Company had cash equivalents of approximately $ 2.9 million and, as of April 30, 2023, the Company had no cash equivalents.

The Company is subject to a concentration of credit risk in the form of its cash deposits held at multiple banking institutions.

Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000.

As of October 31, 2023 and April 30, 2023, the Company had $ 4.3 million and $ 8.7 million in excess of the FDIC insured limit, respectively.

As of January 31, 2024 and April 30, 2023, the Company had approximately $ 3.3 million and $ 8.7 million in excess of the FDIC insured limit, respectively.

The Company's liquidity needs have typically arisen from the funding of our research and development programs and the launch of new products, working capital requirements, and other strategic initiatives.

1 unchanged sentence

In the past, the Company has also received proceeds from certain private placements and public offerings of its securities.

For the six months ended October 31, 2023, the Company had a net loss of approximately $ 4.6 million and cash used in operations of approximately $ 3.4 million.

As of October 31, 2023, the Company had an accumulated deficit of approximately $ 82.0 million and cash on hand of approximately $ 5.5 million.

The Company believes that cash on hand, together with expected cash to be provided from operations for the remainder of fiscal year 2024, are adequate to fund operations through at least 12 months from the filing of this Quarterly Report on Form 10-Q (this "Report").

For the nine months ended January 31, 2024, the Company had a net loss of approximately $ 7.2 million and cash used in operations of approximately $ 4.3 million.

As of January 31, 2024, the Company had an accumulated deficit of approximately $ 84.5 million and cash on hand of approximately $ 4.5 million.

The Company believes that cash on hand, together with expected cash to be provided from operations during fiscal year 2025, are adequate to fund operations through at least 12 months from the filing of this Quarterly Report on Form 10-Q (this "Report").

However, should the Company's revenue expectations not materialize, the Company believes it has cost reduction strategies that could be implemented without disrupting the business or restructuring the Company.

7 unchanged sentences

The Company evaluates its hierarchy disclosures each quarter.

As of October 31, 2023 the Company had assets measured at fair value on a recurring and/or non-recurring basis as follows:

(in 000s) October 31, 2023

As of January 31, 2024 the Company had assets measured at fair value on a recurring and/or non-recurring basis as follows:

(in 000s) January 31, 2024

Level 1 Level 2 Level 3

2 unchanged sentences

Total $ 2,854 $ — $ —

As of October 31, 2023, the Company had no liabilities measured at fair value on a recurring and/or non-recurring basis.

As of January 31, 2024, the Company had no liabilities measured at fair value on a recurring and/or non-recurring basis.

As of April 30, 2023, the Company had no assets or liabilities measured at fair value on a recurring and/or non-recurring basis.

3 unchanged sentences

Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock options.

As of October 31, 2023 and 2022, all of the Company's potential common stock is considered anti-dilutive.

The following table reflects the total potential share-based instruments outstanding at October 31, 2023 and 2022 including those that could have an effect on the future computation of dilution per common share, had their effect not been anti-dilutive due to the Company's net losses in the related periods:

As of January 31, 2024 and 2023, all of the Company's potential common stock is considered anti-dilutive.

The following table reflects the total potential share-based instruments outstanding at January 31, 2024 and 2023 including those that could have an effect on the future computation of dilution per common share, had their effect not been anti-dilutive due to the Company's net losses in the related periods:

Total common stock equivalents 1,903,747 1,779,167

4 unchanged sentences

Changes in valuation allowances from period to period are included in the tax provision in the period of change.

As of October 31, 2023 and April 30, 2023, the Company provided a valuation allowance for all net deferred tax assets as it is more likely than not that the assets will not be recovered based on an insufficient history of earnings.

As of January 31, 2024 and April 30, 2023, the Company provided a valuation allowance for all net deferred tax assets as it is more likely than not that the assets will not be recovered based on an insufficient history of earnings.

The Company reflects tax benefits only if it is more likely than not that the Company will be able to sustain the tax position, based on its technical merits.

If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized.

The Company recorded $ 181,000 of liabilities related to uncertain tax positions relative to one of its foreign operations as of October 31, 2023 and April 30, 2023.

The Company recorded $ 181,000 of liabilities related to uncertain tax positions relative to one of its foreign operations as of January 31, 2024 and April 30, 2023.

The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.

The Company did no t recognize interest or penalties on its consolidated statements of operations during the three and six-month periods ended October 31, 2023 and 2022.

The Company did no t recognize interest or penalties on its consolidated statements of operations during the three and nine-month periods ended January 31, 2024 and 2023.

The Company does no t anticipate unrecognized tax benefits will be recorded during the next 12 months.

The provision for income taxes for the three months ended October 31, 2023 and 2022 was $ 11,000 and $ 14,000 , respectively.

The provision for income taxes for the six months ended October 31, 2023 and 2022 was $ 39,000 and $ 31,000 , respectively.

The provision for income taxes for the three months ended January 31, 2024 and 2023 was $ 11,000 and $ 17,000 , respectively.

The provision for income taxes for the nine months ended January 31, 2024 and 2023 was $ 49,000 and $ 48,000 , respectively.

The provision is mainly attributable to taxable income earned in Israel and/or Italy relating to transfer pricing.

51 unchanged sentences

Accounts receivable and unbilled services were as follows (in thousands)

October 31, 2023 April 30, 2023

January 31, 2024 April 30, 2023

Accounts receivable $ 4,653 $ 3,843

1 unchanged sentence

Total accounts receivable and unbilled services 9,033 8,836

Less allowances ( 1,058 ) ( 825 )

Allowances ( 1,138 ) ( 825 )

Total accounts receivable, net $ 7,895 $ 8,011

Deferred revenue was as follows (in thousands):

October 31, 2023 April 30, 2023

January 31, 2024 April 30, 2023

Deferred revenue $ 13,329 $ 12,776

1 unchanged sentence

As of May 1, 2023 and 2022, respectively, the consolidated balance of net accounts receivable was $ 8.0 million and $ 9.5 million, respectively, and deferred revenue was $ 12.8 million and $ 11.1 million, respectively.

As of August 1, 2023 and 2022, respectively, the consolidated balance of net accounts receivable was $ 9.0 million and $ 9.4 million, respectively, and deferred revenue was $ 11.1 million and $ 10.9 million, respectively.

As of November 1, 2023 and 2022, respectively, the consolidated balance of net accounts receivable was $ 7.7 million and $ 9.0 million, respectively, and deferred revenue was $ 13.0 million and $ 11.2 million, respectively.

Revenue from Contracts with Customers

Oncology Services Revenue

The following table represents disaggregated revenue for the three and six months ended October 31, 2023 and 2022:

The following table represents disaggregated revenue for the three and nine months ended January 31, 2024 and 2023:

Three Months Ended

October 31, Six Months Ended October 31,

January 31, Nine Months Ended January 31,

2024 2023 2024 2023

24 unchanged sentences

Property and equipment, net $ 6,533 $ 7,186

Depreciation and amortization expense was $ 484,000 and $ 560,000 for the three months ended October 31, 2023 and 2022, respectively.

Depreciation and amortization expense was $ 929,000 and $ 1.1 million for the six months ended October 31, 2023 and 2022, respectively.

Depreciation and amortization expense, excluding expense recorded under finance leases, was $ 448,000 and $ 525,000 for the three months ended October 31, 2023 and 2022, respectively.

Depreciation and amortization expense, excluding expense recorded under finance leases, was $ 857,000 and $ 1.0 million for the six months ended October 31, 2023 and 2022, respectively.

As of October 31, 2023 and April 30, 2023, property, plant and equipment included gross assets held under finance leases of $ 1.0 million, respectively.

Related depreciation expense was approximately $ 36,000 and $ 35,000 for the three months ended October 31, 2023 and 2022, respectively, and $ 72,000 and $ 64,000 for the six months ended October 31, 2023 and 2022, respectively.

Depreciation and amortization expense was $ 481,000 and $ 575,000 for the three months ended January 31, 2024 and 2023, respectively.

Depreciation and amortization expense was $ 1.4 million and $ 1.7 million for the nine months ended January 31, 2024 and 2023, respectively.

Depreciation and amortization expense, excluding expense recorded under finance leases, was $ 445,000 and $ 540,000 for the three months ended January 31, 2024 and 2023, respectively.

Depreciation and amortization expense, excluding expense recorded under finance leases, was $ 1.3 million and $ 1.6 million for the nine months ended January 31, 2024 and 2023, respectively.

As of January 31, 2024 and April 30, 2023, property, plant and equipment included gross assets held under finance leases of $ 1.0 million.

Related depreciation expense was approximately $ 36,000 and $ 35,000 for the three months ended January 31, 2024 and 2023, respectively, and $ 108,000 and $ 99,000 for the nine months ended January 31, 2024 and 2023, respectively.

During the nine months ended January 31, 2024, the Company disposed of two assets and recognized a loss on disposal of equipment of $ 81,000 within other income (loss) as presented in the condensed consolidated statement of operations.

The first asset, laboratory equipment, was acquired for $ 128,000 and had accumulated depreciation of $ 62,000 , resulting in a loss of $ 66,000 upon disposal.

The second asset, acquired software, was purchased for $ 33,000 and had accumulated amortization of $ 18,000 , resulting in a loss of $ 15,000 upon disposal.

Capitalized Software Development Costs Under a Hosting Arrangement

The Company accounts for the cost of computer software obtained or developed for internal use as well as the software development and implementation costs associated with a hosting arrangement ("internal-use software") that is a service contract in accordance and with ASC 350, Intangibles - Goodwill and Other ("ASC-350").

in accordance and with ASC 350, Intangibles - Goodwill and Other ("ASC-350").

We capitalize certain costs in the development of our internal-use software when the preliminary project stage is completed and it is probable that the project itself will be completed and the software will perform as intended.

These capitalized costs include personnel and related expenses for employees and costs of third-party consultants who are directly associated with and who devote time to these internal-use software projects.

Capitalization of these costs ceases once the project is substantially complete and the software is

ready for its intended purpose.

Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose.

Costs incurred for significant upgrades, increased functionality, and enhancements to the Company's internal-use software solutions are also capitalized.

6 unchanged sentences

During the fourth quarter of fiscal year 2023, an impairment loss was recognized equal to the amount by which the carrying amount exceeded the future net revenues, or, its net book value at April 30, 2023 of $ 807,000 .

Amortization expense related to this asset was $ 0 and $ 157,000 for the three months ended October 31, 2023 and 2022, respectively, and $ 0 and $ 314,000 for the six months ended October 31, 2023 and 2022, respectively.

Amortization expense related to this asset was $ 0 and $ 157,000 for the three months ended January 31, 2024 and 2023, respectively, and $ 0 and $ 471,000 for the nine months ended January 31, 2024 and 2023, respectively.

Finance Lease

3 unchanged sentences

The present value of the minimum future obligations of $ 368,000 was calculated based on an interest rate of 3.5 %.

Depreciation and amortization expense related to this finance lease was $ 17,600 and $ 17,000 for the three months ended October 31, 2023 and 2022, respectively, and $ 35,000 and $ 28,200 for the six months ended October 31, 2023 and 2022, respectively.

Depreciation and amortization expense related to this finance lease was $ 17,800 and $ 17,100 for the three months ended January 31, 2024 and 2023, respectively, and $ 52,800 and $ 45,100 for the nine months ended January 31, 2024 and 2023, respectively.

During fiscal year 2022, the Company recognized a finance lease for laboratory equipment.

2 unchanged sentences

At the commencement of the commitment, the present value of the minimum future obligations of $ 370,000 was calculated based on an interest rate of 3.25 %.

Depreciation and amortization expense related to this finance lease was $ 18,500 and $ 18,000 for the three months ended October 31, 2023 and 2022, respectively, and $ 36,900 and $ 35,700 for the six months ended October 31, 2023 and 2022, respectively.

Depreciation and amortization expense related to this finance lease was $ 18,700 and $ 18,000 for the three months ended January 31, 2024 and 2023, respectively, and $ 55,600 and $ 54,000 for the nine months ended January 31, 2024 and 2023, respectively.

The liabilities related to these finance leases are classified under other current liability and other non-current liabilities on the Company's balance sheet.

4 unchanged sentences

Three Months Ended

October 31, Six Months Ended

January 31, Nine Months Ended

2024 2023 2024 2023

6 unchanged sentences

In general, these Plans provide for stock-based compensation to the Company’s employees, directors and non-employees.

The Plans also

provide for limits on the aggregate number of shares that may be granted, the term of grants and the strike price of option awards.

The Plans also provide for limits on the aggregate number of shares that may be granted, the term of grants and the strike price of option awards.

2021 Equity Incentive Plan

7 unchanged sentences

Options and Stock Appreciation Rights have a strike price not less than 100 % of the fair market value of the common stock subject to the option or right at the date of grant.

As of October 31, 2023, approximately 1.4 million shares were available for issue under this plan.

As of January 31, 2024, approximately 1.3 million shares were available for issue under this plan.

2010 Equity Incentive Plan

8 unchanged sentences

Stock Option Grants

Black-Scholes assumptions used to calculate the fair value of options granted during the three and six months ended October 31, 2023 and 2022 were as follows:

Black-Scholes assumptions used to calculate the fair value of options granted during the three and nine months ended January 31, 2024 and 2023 were as follows:

Three Months Ended

October 31, Six Months Ended

January 31, Nine Months Ended

2024 2023 2024 2023

2 unchanged sentences

3.95 % - 4.49 %

2.87 % - 3.70 %

Volatility 63.41 %

62.83 % - 63.41 %

61.88 % - 62.58 %

Dividend yield — % — % — % — %

The weighted average fair value of stock options granted during the three months ended October 31, 2023 and 2022 was $ 4.02 and $ 0.00 , respectively, as there were no stock options granted during the second quarter of fiscal year 2023.

The weighted average fair value of stock options granted during the six months ended October 31, 2023 and 2022 was $ 3.95 and $ 4.50 , respectively.

The Company’s stock options activity for the six months ended October 31, 2023 was a s follows:

The weighted average fair value of stock options granted during the three months ended January 31, 2024 and 2023 was $ 3.41 and $ 4.20 , respectively.

The weighted average fair value of stock options granted during the nine months ended January 31, 2024 and 2023 was $ 3.77 and $ 4.33 , respectively.

The Company’s stock options activity for the nine months ended January 31, 2024 was a s follows:

Employees Non-

8 unchanged sentences

Expired ( 54,166 ) — ( 54,166 ) 12.78

Outstanding, October 31, 2023 1,795,536 36,331 1,831,867 5.25 4.6 $ 2,685,000

Vested and expected to vest as of October 31, 2023 1,795,536 36,331 1,831,867 5.25 4.6 $ 2,685,000

Exercisable as of October 31, 2023 1,478,204 1,875 1,480,079 4.91 4.0 $ 2,675,000

Outstanding, January 31, 2024 1,867,416 36,331 1,903,747 5.04 5.4 $ 3,068,000

Vested and expected to vest as of January 31, 2024 1,867,416 36,331 1,903,747 5.04 5.4 $ 3,068,000

Exercisable as of January 31, 2024 1,453,363 3,750 1,457,113 4.63 4.3 $ 3,011,000

Share Repurchase Program

On March 29, 2023, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $ 5.0 million of the Company’s common stock.

The share repurchase program is designed in accordance with Rule 10b-18 of the Securities Exchange Act.

The share repurchase program is designed in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

The shares may be purchased from time to time in the open market, as permitted under applicable rules and regulations, at prevailing market prices.

1 unchanged sentence

The program does not obligate the Company to acquire a minimum number of shares.

As of October 31, 2023, the Company had purchased approximately 120,300 shares of its common stock, at an average price of $ 5.73 per share, totaling approximately $ 708,000 and leaving an available balance of approximately $ 4.3 million authorized by the Board for use in the program as of that date.

As of January 31, 2024, the Company had purchased approximately 120,300 shares of its common stock, at an average price of $ 5.73 per share, totaling approximately $ 708,000 and leaving an available balance of approximately $ 4.3 million authorized by the Board for use in the program as of that date.

The Company accounts for its leases under FASB ASC Topic 842, Leases.

6 unchanged sentences

Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date.

Rent expense totaled $ 454,000 and $ 466,000 for the three months ended October 31, 2023 and 2022, respectively.

Rent expense totaled $ 907,000 and $ 934,000 for the six months ended October 31, 2023 and 2022, respectively.

Rent expense totaled $ 454,000 and $ 475,000 for the three months ended January 31, 2024 and 2023, respectively.

Rent expense totaled $ 1.4 million for both the nine months ended January 31, 2024 and 2023.

The Company considers its facilities adequate for its current operational needs.

2 unchanged sentences

The lease expires in November 2026.

The Company recognized $ 19,000 and $ 21,000 of rent expense relative to this lease for the three months ended October 31, 2023 and 2022, respectively.The Company recognized

$ 38,000 and $ 42,000 of rent expense relative to this lease for the six months ended October 31, 2023 and 2022, respectively.

The Company recognized $ 19,000 and $ 20,000 of rent expense relative to this lease for the three months ended January 31, 2024 and 2023, respectively.The Company recognized $ 57,000 and $ 62,000 of rent expense relative to this lease for the nine months ended January 31, 2024 and 2023, respectively.

• 1330 Piccard Drive Suite 025, Rockville, MD 20850, which consists of laboratory and office space where the Company conducts operations related to its primary service offerings.

3 unchanged sentences

This lease expires in February 2029.

The Company recognized $ 423,000 and $ 422,000 of rent expense relative to this lease for the three months ended October 31, 2023 and 2022, respectively, and $ 846,000 and $ 844,000 of rent expense relative to this lease for the six months ended October 31, 2023 and 2022, respectively.

The Company recognized $ 422,000 of rent expense relative to this lease for both the three months ended January 31, 2024 and 2023, and $ 1.3 million of rent expense relative to this lease for both the nine months ended January 31, 2024 and 2023.

• VIA LEONE XIII, 14, Milan, Italy, which consists of laboratory and office space where the Company conducts operations related to its flow cytometry service offerings.

2 unchanged sentences

The lease expires October 31, 2028 and it replaces the previous two leases, which were terminated during fiscal year 2023.

The Company recognized $ 13,000 and $ 23,000 of rent expense relative to these leases for the three months ended October 31, 2023 and 2022, respectively, and $ 26,000 and $ 48,000 for the six months ended October 31, 2023 and 2022, respectively.

The Company recognized $ 13,000 and $ 34,000 of rent expense relative to these leases for the three months ended January 31, 2024 and 2023, respectively, and $ 38,000 and $ 81,000 for the nine months ended January 31, 2024 and 2023, respectively.

ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):

October 31, 2023 April 30, 2023

January 31, 2024 April 30, 2023

Operating lease right-of-use assets, net

2 unchanged sentences

Non-current portion of operating lease liabilities 6,437 7,391

As of October 31, 2023, the weighted average remaining operating lease term and the weighted average discount rate were 5.22 years and 5.87 %, respectively.

As of January 31 2024, the weighted average remaining operating lease term and the weighted average discount rate were 4.98 years and 5.88 %, respectively.

Future minimum lease payments due each fiscal year as follows (in thousands):

9 unchanged sentences

Consulting Services

During the three months ended October 31, 2023 and 2022, the Company paid an affiliate of a Board member $ 9,000 and $ 9,000 , respectively, for consulting services unrelated to his duty as a Board member.

During the six months ending October 31, 2023 and 2022, the Company paid an affiliate of a Board member $ 18,000 and $ 18,000 , respectively, for consulting services unrelated to his duty as a Board member.

During both the three months ended January 31, 2024 and 2023, the Company paid an affiliate of a Board member $ 9,000 for consulting services unrelated to his duty as a Board member.

During both the nine months ending January 31, 2024 and

2023, the Company paid an affiliate of a Board member $ 27,000 for consulting services unrelated to his duty as a Board member.

Such amounts are included in general and administrative expenses in the accompanying condensed consolidated statements of operations.

As of October 31, 2023, $ 0 was due to this related party.

As of January 31, 2024, $ 0 was due to this related party.

Commitments and Contingencies

12 unchanged sentences

Some of these arrangements also set forth an annual minimum royalty due regardless of tumor models used for sale.

For the three months ended October 31, 2023 and 2022, we have recognized approximately $ 53,200 and $ 32,000 , respectively, in expense related to these royalty arrangements.

For the six months ended October 31, 2023 and 2022, we have recognized approximately $ 126,200 and $ 108,000 , respectively, in expense related to these royalty arrangements.

For the three months ended January 31, 2024 and 2023, we have recognized approximately $ 114,000 and $ 21,000 , respectively, in expense related to these royalty arrangements.

For the nine months ended January 31, 2024 and 2023, we have recognized approximately $ 240,000 and $ 129,000 , respectively, in expense related to these royalty arrangements.

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