What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-03-12 compared with 2025-12-15 · 48 added, 46 removed, 105 unchanged (47% of the section changed)

18 unchanged sentences

We are a technology-enabled research organization engaged in creating transformative technology solutions to be utilized in drug discovery and development.

Our research center consists of a comprehensive set of computational and experimental research platforms.

Our research center consists of a comprehensive set of computational and experimental

research platforms.

Our pharmacology, biomarker, and data platforms are designed to facilitate drug discovery and development at lower costs and increased speeds.

1 unchanged sentence

These studies include in vivo studies that rely on implanting multiple tumors from our TumorBank in mice and testing the therapy of interest on these tumors.

Studies may also include bioinformatics analysis that

reveal the differences in the genetic signatures of the tumors that responded to a therapy as compared to the tumors that did not respond.

Studies may also include bioinformatics analysis that reveal the differences in the genetic signatures of the tumors that responded to a therapy as compared to the tumors that did not respond.

Additionally, we provide computational or experimental support to identify novel therapeutic targets, select appropriate patient populations for clinical evaluation, identify potential therapeutic combination strategies, and develop biomarker hypothesis of sensitivity or resistance.

22 unchanged sentences

In the past, we have met these cash requirements through our cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities, and sales of products and services.

For the six months ended October 31, 2025 and 2024, the Company had a net loss of $230,000 and net income of $2.0 million, respectively.

As of October 31, 2025, the Company had an accumulated deficit of approximately $80.1 million, negative working capital of $809,000 and cash of $8.5 million.

For the six months ended October 31, 2025, the Company used cash flow in operations of approximately $1.1 million.

Despite our negative working capital at this date and cash used in operations for the period, we believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least December 2026.

For the nine months ended January 31, 2026 and 2025, the Company had a net loss of $508,000 and net income of $6.5 million, respectively.

As of January 31, 2026, the Company had an accumulated deficit of approximately $80.4 million, negative working capital of $492,000 and cash of $7.1 million.

For the nine months ended January 31, 2026, the Company used cash flow in operations of approximately $2.5 million.

Should the Company be required to raise additional capital, there can be no assurance that management would be successful in raising such capital on terms acceptable to us, if at all.

1 unchanged sentence

The following table summarizes our operating results for the periods presented below (dollars in thousands):

For the Three Months Ended October 31,

For the Three Months Ended January 31,

Revenue 2025 % of

5 unchanged sentences

General and administrative 2,975 18.0 2,398 14.1 24.1

Loss on sale and disposal of equipment 89 0.5 — — 100.0

Total costs and operating expenses 16,835 101.6 12,540 73.6 34.3

Income from operations $ (276) (1.6) % $ 4,499 26.4 % (106.2) %

For the Six Months Ended October 31,

For the Nine Months Ended January 31,

Revenue 2025 % of

5 unchanged sentences

General and administrative 8,519 18.7 6,813 15.3 25.0

Loss on disposal of equipment 20 0.1 — — 100.0

Loss on sale and disposal of equipment 110 0.2 — — 100.0

Total costs and operating expenses 46,208 101.3 38,029 85.2 21.5

1 unchanged sentence

Oncology Revenue

Oncology revenue, primarily derived from research services, totaled $15.0 million for the three months ended October 31, 2025, compared to $13.5 million for the same period in 2024, an increase of $1.5 million or 11.5%.

Oncology revenue, primarily derived from research services, totaled $29.0 million for the six months ended October 31, 2025, compared to $27.6 million for the same period in 2024, an increase of $1.5 million or 5.4%.

Oncology revenue, primarily derived from research services, totaled $16.6 million for the three months ended January 31, 2026, compared to $17.0 million for the same period in 2025, a decrease of $480,000 or 2.8%.

Oncology revenue, primarily derived from research services, totaled $45.6 million for the nine months ended January 31, 2026, compared to $44.6 million for the same period in 2025, an increase of $1.0 million or 2.2%.

Our revenues are comprised of the following:

Three Months Ended

October 31, Six Months Ended October 31,

January 31, Nine Months Ended January 31,

(in 000s) 2026 2025 2026 2025

4 unchanged sentences

Pharmacology Services

• Revenue increased for both the three- and six-month periods ended October 31, 2025 compared to the same periods in 2024, primarily due to an improvement in the bookings-to-revenue conversion rate.

Bookings, which represent the total value of signed statements of work, convert to revenue over time as the Company fulfills its contractual performance obligations.

Fewer study cancellations during the current periods allowed a larger portion of previously contracted work to convert to revenue.

Management did not identify any other individually material factors affecting the year-over-year change.

• Pharmacology services revenue increased for both the three- and nine- month periods ended January 31, 2026 compared to the same periods in 2025.

The increase reflects modest improvement in bookings and conversion of previously booked studies into revenue, as well as the timing of study completion during the quarter.

Bookings represent the total value of signed statements of work and convert to revenue over time as the Company fulfills its contractual performance obligations.

The level of study activity reaching completion during a given quarter can vary depending on the timing and progress of individual studies.

TOS Data License Revenue

• Revenue for both the three and six months ending October 31, 2025 resulted from the sale of data licenses.

There was no data license revenue for the three or six months ended October 31, 2024.

• Revenue from TOS data licenses was $0 for the three months ended January 31, 2026, compared to $4.5 million for the same period in 2025.

The prior-year amount reflects the recognition of a single data license transaction during that period.

For the nine months ended January 31, 2026, TOS data license revenue totaled $0.5 million, compared to $4.5 million for the same period in 2025.

Other TOS Revenue

• Other TOS Revenue includes additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry and SaaS provided via Lumin.

• Our flow cytometry services revenue decreased approximately $555,000 for the three months ended October 31, 2025, as compared to 2024, and $1.1 million for the six months ended October 31, 2025, as compared to 2024, due to a decline in clinical bookings and a de-emphasis on this business unit.

The decrease in Other TOS Revenue was also a result of a decrease in our SaaS revenues for both the three and six month periods ending October 31, 2025 as compared with 2024.

• Other TOS Revenue includes additional services provided to the Company's pharmaceutical and biotechnology customers, including flow cytometry and SaaS offerings provided through Lumin which are not part of the Company's current strategic focus.

• Other TOS revenue decreased for both the three- and nine-month periods ended January 31, 2026 compared to the same periods in 2025.

Flow cytometry services revenue decreased approximately $0.5 million for the three months ended January 31, 2026 and $1.6 million for the nine months ended January 31, 2026 compared to the same periods in 2025, primarily due to lower clinical bookings and a strategic de-emphasis on this part of our business.

The decrease in Other TOS revenue also reflects lower SaaS revenue during the current periods.

Cost of Oncology Revenue

For the three months ended October 31, 2025, cost of oncology revenue decreased $166,000 or 2.2% to $7.3 million, as compared to $7.4 million in the prior year period.

The decrease was primarily driven by lower outsourced lab service costs.

For the six months ended October 31, 2025, cost of oncology revenue increased $757,000 or 5.2% to $15.3 million, as compared to $14.5 million in the prior year period.

The increase resulted primarily from higher mice costs resulting from higher revenue and outsourced lab services, including radiolabeling work.

Management anticipates that as this radiolabeling work transitions into Champions’ labs over the coming quarters it will result in an improvement in the overall cost structure which will reduce cost of oncology revenue.

Cost of oncology revenue increased $2.2 million or 33.5% to $8.8 million for the three months ended January 31, 2026, as compared to $6.6 million in the prior year period.

For the nine months ended January 31, 2026, cost of oncology revenue increased $3.0 million or 14.1% to $24.1 million, as compared to $21.1 million in the prior year period.

The increases for both periods were primarily attributable to outsourced laboratory services, including more than $2.0 million of radiolabeling work performed by third-party laboratories during the current quarter.

Management expects that as this radiolabeling work transitions into Champions’ laboratories over the coming quarters, the Company will benefit from a more favorable cost structure.

Research and Development

Research and development expense for the three months ended October 31, 2025 and 2024 were $2.6 million and $1.7 million, respectively, an increase of approximately $927,000 or 54.9%.

Research and development expense for the six months ended October 31, 2025 and 2024 were $4.7 million and $3.1 million, respectively, an increase of approximately $1.6 million or 49.5%.

Research and development expense for the three months ended January 31, 2026 and 2025 were $2.3 million and $1.7 million, respectively, an increase of approximately $552,000 or 32.1%.

Research and development expense for the nine months ended January 31, 2026 and 2025 were $7.0 million and $4.9 million, respectively, an increase of approximately $2.1 million or 43.3%.

The significant components of research and development expense are comprised of the following:

Three Months Ended October 31, Six Months Ended October 31,

Three Months Ended January 31, Nine Months Ended January 31,

(in 000s) 2026 2025 2026 2025

3 unchanged sentences

Outside Services 700 70 1,900 143

Research and development expense increased for both the three- and six-month periods ended October 31, 2025 compared to the prior-year periods.

The increases were primarily driven by higher outsourced laboratory service costs, increased compensation expense, and greater use of laboratory supplies as the Company expanded its investment in the development of its data licensing platform and in Corellia, the Company’s wholly owned subsidiary focused on target discovery.

Management did not identify any other individually material factors contributing to the period-over-period changes.

Research and development expense increased for both the three- and nine-month periods ended January 31, 2026 compared to the prior-year periods.

The increases were primarily driven by higher outsourced laboratory service costs, including sequencing work performed by third-party providers to support the development of the Company’s data licensing platform, as well as increased compensation expenses associated with these initiatives.

Sales and Marketing

Sales and marketing expenses were $2.0 million for the three months ended October 31, 2025 , compared to $1.8 million for the same period in 2024, an increase of $247,000 or 14.1%.

For the six months ended October 31, 2025 sales and marketing expenses were $3.9 million, compared to $3.4 million for the prior year period, an increase of $423,000 or 12.3%.

The increases for both the three and six month periods were primarily driven by higher compensation expense associated with expanding the commercial organization to support the growth of the Company’s data licensing business.

Sales and marketing expenses were $2.7 million for the three months ended January 31, 2026, compared to $1.8 million for the same period in 2025, an increase of $860,000 or 47.6%.

For the nine months ended January 31, 2026 sales and marketing expenses were $6.5 million, compared to $5.2 million for the prior year period, an increase of $1.3 million or 24.5%.

The increases for both periods were primarily driven by higher compensation expense associated with the expansion of the Company’s commercial organization, including personnel supporting both the Company’s core research services business and its data licensing initiatives.

Sales and marketing expenses are expected to remain elevated as the Company continues to invest in commercial capabilities to support these growth initiatives.

General and Administrative

General and administrative expenses for the three months ended October 31, 2025 and 2024 were $3.0 million and $1.9 million, respectively, an increase of $1.1 million, or 57.4%.

General and administrative expenses for the six months ended October 31, 2025 and 2024 were $5.5 million and $4.4 million, respectively, an increase of $1.1 million, or 25.5%.

General and administrative expenses are primarily comprised of compensation, insurance, professional fees, IT and depreciation and amortization expenses.

The increase for both the three and six month periods was primarily the result of an increase in compensation related to executive leadership changes and IT infrastructure expenses to support our investment in our data business.

General and administrative expenses were $3.0 million for the three months ended January 31, 2026, compared to $2.4 million for the same period in 2025, an increase of $577,000, or 24.1%.

For the nine months ended January 31, 2026, general and administrative expenses were $8.5 million compared to $6.8 million for the same period in 2025 , an increase of $1.7 million, or 25.0%.

General and administrative expenses primarily consist of compensation, insurance, professional fees, IT infrastructure, and depreciation and amortization.

The increases for both periods were primarily attributable to higher compensation expenses associated with executive leadership changes and increased IT infrastructure costs supporting the Company’s investment in its data business.

The following discussion relates to the major components of our cash flows:

Cash Flows from Operating Activities

For the six months ended October 31, 2025, net cash used in operating activities was $1.1 million.

For the nine months ended January 31, 2026, net cash used in operating activities was $2.5 million.

The use of cash was primarily driven by a decrease in deferred revenue, which reflects lower upfront billings.

For the six months ended October 31, 2024, net cash provided by operating activities was $28,000.

For the nine months ended January 31, 2025, net cash provided by operating activities was $518,000.

The cash provided by operating activities was primarily due to income from operations offset by changes in our working capital accounts in the ordinary course of business.

Cash Flows from Investing Activities

Net cash used in investing activities for the six months ended October 31, 2025 and 2024 was approximately $288,000 and $94,000.

Net cash used in investing activities for the nine months ended January 31, 2026 and 2025 was approximately $302,000 and $136,000.

Cash used in investing activities was for the purchases of lab and computer equipment.

Cash Flows from Financing Activities

Net cash provided by financing activities was $154,000 for the six months ended October 31, 2025 resulting from proceeds received for stock options exercises, partially offset by financing lease payments.

Net cash provided by financing activities was $202,000 for the six months ended October 31, 2024, resulting from proceeds received for stock options exercises, partially offset by financing lease payments.

Net cash provided by financing activities was $118,000 for the nine months ended January 31, 2026 resulting from proceeds received for stock option exercises, partially offset by financing lease payments.

Net cash provided by financing activities was $202,000 for the nine months ended January 31, 2025, resulting from proceeds received for stock option exercises, partially offset by financing lease payments.

Critical Accounting Estimates and Policies

There have been no changes to our critical accounting policies during the six months ended October 31, 2025.

There have been no changes to our critical accounting policies during the nine months ended January 31, 2026.

Critical accounting policies and the significant estimates made in accordance with such policies are regularly discussed with our Audit Committee.

8 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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis