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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended October 31, 2024
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                               to
 
Commission file number 001-11504 
CHAMPIONS ONCOLOGY, INC.
(Exact name of registrant as defined in its charter)
 
Delaware52-1401755
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
  
One University Plaza, Suite 30707601
Hackensack, New Jersey
(Zip Code)
(Address of principal executive offices) 
 
(201) 808-8400
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)


Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per shareCSBR
The Nasdaq Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act:
None.

 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer ¨
Accelerated filer ¨
Non-accelerated filer þ
Smaller reporting company
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No þ
 The number of shares of common stock of the Registrant outstanding as of December 13, 2024 was 13,819,236.
 
DOCUMENTS INCORPORATED BY REFERENCE - None




INDEX TO FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2024 

  
Item 1. 
 
 
 
 
Item 2.
Item 3.
Item 4.
   
  
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

3


PART I – FINANCIAL INFORMATION
 
Item 1. Financial Statements
 
CHAMPIONS ONCOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
October 31,
2024
April 30,
2024
 (unaudited) 
ASSETS  
Current assets:  
Cash and cash equivalents$2,754 $2,618 
Accounts receivable, net10,470 9,526 
Prepaid expenses and other current assets860 1,495 
Total current assets14,084 13,639 
Operating lease right-of-use assets, net5,669 6,252 
Property and equipment, net4,967 5,721 
Other long-term assets185 185 
Goodwill335 335 
Total assets$25,240 $26,132 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$4,854 $5,800 
Accrued liabilities2,235 2,160 
Current portion of operating lease liabilities 1,401 1,337 
Other current liability151 150 
Deferred revenue10,220 12,094 
Total current liabilities18,861 21,541 
Non-current operating lease liabilities 5,374 6,093 
Other non-current liabilities324 401 
Total liabilities$24,559 $28,035 
Stockholders’ equity (deficiency):  
Common stock, $.001 par value; 200,000,000 shares authorized; 13,819,236 and 13,714,099 shares issued; and 13,698,903 and 13,593,766 outstanding as of October 31, 2024 and April 30, 2024, respectively
14 14 
Treasury stock, at cost(708)(708)
Additional paid-in capital83,927 83,384 
Accumulated deficit(82,552)(84,593)
Total stockholders’ equity (deficiency)681 (1,903)
Total liabilities and stockholders’ equity (deficiency)$25,240 $26,132 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4


CHAMPIONS ONCOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
  
Oncology services revenue$13,489 $11,573 $27,550 $24,134 
Costs and operating expenses:    
Cost of oncology services7,428 6,618 14,500 14,302 
Research and development1,689 2,515 3,143 5,308 
Sales and marketing1,751 1,795 3,430 3,491 
General and administrative1,889 2,600 4,416 5,540 
Total costs and operating expenses12,757 13,528 25,489 28,641 
Income (loss) from operations732 (1,955)2,061 (4,507)
Other income (expense) 7 (105)11 (91)
Income (loss) before provision for income taxes739 (2,060)2,072 (4,598)
Provision for income taxes11 11 31 39 
Net income (loss)$728 $(2,071)$2,041 $(4,637)
Net income (loss) per common share outstanding    
basic$0.05 $(0.15)$0.15 $(0.34)
and diluted$0.05 $(0.15)$0.15 $(0.34)
Weighted average common shares outstanding    
basic13,593,766 13,497,061 13,593,766 13,529,629 
and diluted14,016,953 13,497,061 14,029,666 13,529,629 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.



CHAMPIONS ONCOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY)
(Dollars in Thousands)
 Common StockTreasury StockAdditional
Paid-in
Capital
Accumulated
Deficit
Total
Stockholders'
Equity (Deficiency)
 SharesAmountSharesAmount
Balance April 30, 202413,714,099 $14 120,333 $(708)$83,384 $(84,593)$(1,903)
Stock-based compensation— — — — 258 — 258 
Net income— — — — — 1,313 1,313 
Balance July 31, 202413,714,099 $14 120,333 $(708)$83,642 $(83,280)$(332)
Stock-based compensation— — — — 9 — 9 
Issuance of common stock on exercise of stock options105,137 — — — 276 — 276 
Net income— — — — — 728 728 
Balance October 31, 202413,819,236 $14 120,333 $(708)$83,927 $(82,552)$681 
Common StockTreasury StockAdditional
Paid-in
Capital
Accumulated
Deficit
Total
Stockholders'
Equity
 SharesAmountSharesAmount
Balance April 30, 202313,544,228 $14 14,422 $(74)$82,013 $(77,317)$4,636 
Stock-based compensation— — — — 423 — 423 
Issuance of common stock on exercise of stock options40,897 — — — 12 — 12 
Repurchase of common stock(101,015)— 101,015 (602)(602)
Net loss— — — — — (2,566)(2,566)
Balance July 31, 202313,484,110 $14 115,437 $(676)$82,448 $(79,883)$1,903 
Stock-based compensation— — — — 53 — 53 
Issuance of common stock on exercise of stock options114,552 — — 240 — 240 
Repurchase of common stock(4,896)4,896 (32)(32)
Net loss— — — — — (2,071)(2,071)
Balance October 31, 202313,593,766 $14 120,333 (708)$82,741 $(81,954)$93 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.





CHAMPIONS ONCOLOGY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
Six Months Ended
October 31,
 20242023
Operating activities:  
Net income (loss)$2,041 $(4,637)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:  
Stock-based compensation267 476 
Depreciation and amortization expense848 929 
Loss on disposal of equipment 65 
Operating lease right-of use assets583 502 
Allowance for doubtful accounts and reversal of provision for credit losses(280)234 
Changes in operating assets and liabilities:
Accounts receivable(664)53 
Prepaid expenses and other current assets635 548 
Other long term assets (169)
Accounts payable(947)(800)
Accrued liabilities74 (245)
Operating lease liabilities(655)(549)
Deferred revenue(1,874)191 
Net cash provided by (used in) operating activities28 (3,402)
Investing activities:  
Purchase of property and equipment(94)(747)
Net cash used in investing activities(94)(747)
Financing activities:  
Proceeds from exercise of options276 252 
Finance lease payments(74)(74)
Repurchases of common stock (634)
Net cash provided by (used in) financing activities202 (456)
Increase (decrease) in cash136 (4,605)
Cash at beginning of period2,618 10,118 
Cash at end of period$2,754 $5,513 
 
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.



CHAMPIONS ONCOLOGY, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Note 1. Organization, Use of Estimates and Basis of Presentation
 
Champions Oncology, Inc. (the "Company", "us", "we", and "our") is a technology-enabled research organization engaged in creating technology solutions to be utilized in drug discovery and development. The Company's research center operates in both regulatory and non-regulatory environments and consists of a comprehensive set of computational and experimental research platforms. Its pharmacology, biomarker, and data platforms are designed to facilitate drug discovery and development at lower costs and increased speeds.
 
The Company has four operating subsidiaries: Champions Oncology (Israel), Limited, Champions Biotechnology U.K., Limited, Champions Oncology, S.R.L. (Italy), and Corellia A.I.. For the three and six months ended October 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. dollar. Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company’s international operations.
 
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company operates in one reportable business segment.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Intercompany transactions and accounts have been eliminated. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted. The April 30, 2024 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, 2024, as filed in the Company's Annual Report on Form 10-K with the SEC on July 19, 2024 (the "Annual Report"). 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 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations for a full fiscal year.
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.




Note 2. Significant Accounting Policies

The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in our 2024 Annual Report and there have been no changes to the Company's significant accounting policies during the six months ended October 31, 2024.

Liquidity and Going Concern
 
In accordance with Accounting Standards Codification ("ASC") Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its obligations as they become due within one year after the date that the financial statements are issued. As required under ASC 205-40, management’s evaluation should initially not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.

The Company has experienced negative operating cash flows and has incurred substantial operating losses from its activities, until recently. The Company also has a working capital deficit and an accumulated deficit of $4.8 million and $82.6 million, respectively, as of October 31, 2024. While the Company believes it has strategies to continue to increase revenues and reduce costs which can be implemented without disrupting the business or completely restructuring the Company, there can be no assurances that these efforts will be successful.

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. Most recently, the Company has met these cash requirements through cash on hand, working capital management, and sales of products and services. In the past, the Company has also received proceeds from certain private placements and public offerings of our securities. Should the Company be required to raise additional capital or seek to obtain financing, there can be no assurance that management would be successful in raising such capital or obtaining such financing on terms acceptable to us, if at all.

Such conditions raise substantial doubts about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.


Earnings Per Share
 
Basic net income or loss per share is computed by dividing the net income or loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock options.

The following table reflects these calculations. As of October 31, 2023, all of the Company's potential common stock was considered anti-dilutive due to the Company's net losses in the related period.








 
Three Months Ended
October 31,
Six Months Ended October 31,
(Dollars in Thousands)2024202320242023
Basic net income (loss) per share computation:  
Net income (loss) attributable to common stockholders$728 $(2,071)$2,041 $(4,637)
Weighted Average common shares – basic13,593,766 13,497,061 13,593,766 13,529,629 
Basic net income (loss) per share$0.05 $(0.15)$0.15 $(0.34)
Diluted net income (loss) per share computation:    
Net income (loss) attributable to common stockholders$728 $(2,071)$2,041 $(4,637)
Weighted Average common shares13,593,766 13,497,061 13,593,766 13,529,629 
Incremental shares from assumed exercise of stock options423,187  435,900  
Adjusted weighted average share – diluted14,016,953 13,497,061 14,029,666 13,529,629 
Diluted net income (loss) per share$0.05 $(0.15)$0.15 $(0.34)

The following table reflects the total potential common stock instruments outstanding at October 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.
 October 31,
 20242023
Total common stock equivalents907,979 1,831,867 
 

Income Taxes
 
    Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient earnings history, a valuation allowance is established. The Company's ability to utilize net operating losses (“NOL”) carryforwards to offset future taxable income would be limited if the Company had undergone or were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code (the “IRC”). The Company adjusts the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of October 31, 2024 and April 30, 2024, 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, 2024 and April 30, 2024.
 
The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not recognize interest or penalties on its consolidated statements of operations during the three or six month periods ended October 31, 2024 and 2023. The Company does not anticipate unrecognized tax benefits will be recorded during the next 12 months.
 
The provision for income taxes for both the three months ended October 31, 2024 and 2023 was $11,000. The provision for income taxes for the six months ended October 31, 2024 and 2023 was $31,000 and $39,000, respectively. The provision is



mainly attributable to taxable income earned in Israel and/or Italy relating to transfer pricing, and U.S. state income taxes for which net operating losses are limited.     

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606 ("ASC 606"), Revenue from Contracts with Customers. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services.

All revenue is generated from contracts with customers. The Company's arrangements are service type contracts that mainly have a duration of less than a year. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions.

The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract.

Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement.

The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12.

Pharmacology Study and Other Services

The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service.

The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation.

Incremental Costs of Obtaining a Contract (Sales Commissions)

Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred.

Variable Consideration

In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include



estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company.

Trade Receivables, Unbilled Services and Deferred Revenue

In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Unbilled services are classified as a component of accounts receivable on the balance sheet.

Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue is recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the condensed consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation.


Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting” (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Tax Disclosures” (Topic 740). The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and the income taxes paid information disclosed. The ASU is effective retrospectively for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.

In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures" (Subtopic 220-40) "Disaggregation of Income Statement Expenses". The new guidance is intended to enhance transparency and disclosures by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU is effective for annual reporting periods after December 15, 2026, and for interim reporting periods beginning December 15, 2027, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.



Note 3. Accounts Receivable, Unbilled Services and Deferred Revenue
Accounts receivable and unbilled services were as follows (in thousands)



October 31, 2024April 30, 2024May 1, 2023
Accounts receivable$4,857 $4,886 $3,843 
Unbilled services6,634 5,941 4,993 
Total accounts receivable and unbilled services11,491 10,827 8,836 
Less: Allowances for credit losses and bad debt(1,021)(1,301)(825)
Total accounts receivable, net$10,470 $9,526 $8,011 

Allowances for credit losses and bad debt were as follows:
Beginning balance April 30, 2024$1,301 
Plus: Provision for credit losses and bad debt 
Less: Reversal of provision for credit losses and bad debt, net(209)
Less: Reversal for amounts subsequently collected(71)
Less: Write offs 
Ending balance October 31, 2024$1,021 

Deferred revenue was as follows (in thousands):
October 31, 2024April 30, 2024May 1, 2023
Deferred revenue$10,220 $12,094 $12,776 




Note 4. Revenue from Contracts with Customers

Oncology Services Revenue
The following table represents disaggregated revenue for the three and six months ended October 31, 2024 and 2023:
Three Months Ended
October 31,
Six Months Ended October 31,
 2024202320242023
Pharmacology services$12,498 $10,876 $25,567 $22,735 
Other TOS revenue991 697 1,983 1,381 
Personalized oncology services   18 
Total oncology services revenue$13,489 $11,573 $27,550 $24,134 
Other Translational Oncology Solutions ("TOS") revenue represents additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry services and software-as-a-service ("SaaS") provided via our Lumin Bioinformatics software ("Lumin").


Note 5. Property and Equipment
Property and equipment is recorded at cost and primarily consists of laboratory equipment, computer equipment and software, capitalized software development costs, and furniture and fixtures. Depreciation and amortization is calculated on a straight-line basis over the estimated useful lives of the various assets ranging from three to nine years. Property and equipment consisted of the following (table in thousands):



October 31,
2024
April 30,
2024
Furniture and fixtures$246 $246 
Computer equipment and software2,155 2,152 
Capitalized software development costs1,888 1,888 
Laboratory equipment11,531 11,506 
Assets in progress69 3 
Leasehold improvements317 317 
Total property and equipment16,206 16,112 
Less: Accumulated depreciation and amortization(11,239)(10,391)
Property and equipment, net$4,967 $5,721 
Depreciation and amortization expense was $399,000 and $484,000 for the three months ended October 31, 2024 and 2023, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $362,000 and $448,000 for the three months ended October 31, 2024 and 2023, respectively.

Depreciation and amortization expense was $848,000 and $929,000 for the six months ended October 31, 2024 and 2023, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $774,000 and $857,000 for the six months ended October 31, 2024 and 2023, respectively.

As of October 31, 2024 and April 30, 2024, property, plant and equipment included gross assets held under finance leases of $1.0 million. Related depreciation expense was approximately $37,000 and $36,000 for the three months ended October 31, 2024 and 2023, respectively. Related depreciation expense was approximately $74,000 and $72,000 for the six months ended October 31, 2024 and 2023, respectively.


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"). The Company capitalizes 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. Costs incurred for significant upgrades, increased functionality, and enhancements to the Company's internal-use software solutions are also capitalized. Costs incurred for training, maintenance, and minor modifications are expensed as incurred. Capitalized software development costs are amortized using the straight-line method over an estimated useful economic life of three years.


Finance Lease

During fiscal year 2023, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $368,000 at inception through June 2027. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. 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 $18,000 and $17,600 for the three months ended October 31, 2024 and 2023, respectively, and $36,000 and $35,000 for the six months ended 2024 and 2023, respectively.

During fiscal year 2022, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $370,000 at inception through December 2025. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. 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 $19,000 and $18,500 for the three months ended October 31, 2024 and 2023, respectively, and $38,000 and $36,900 for the six months ended 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. The weighted average remaining lease term of these leases is 2.14 years.

Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands):

October 31, 2024April 30, 2024
Financing lease net asset$296 $370 
Current portion of financing lease liabilities
153 150 
Non-current portion of financing lease liabilities143 220 

Future minimum lease payments due each fiscal year as follows (in thousands):
2025 (remaining)$80 
2026140 
202780 
20286 
 Total undiscounted liabilities306 
Less: Imputed interest(10)
Present value of minimum lease payments$296 

Refer to Note 7, Leases, for information on operating leases.


 
Note 6. Share-Based Payments
 
Stock-based compensation expense was recognized as follows (table in thousands):
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
General and administrative$(95)$31 $90 $215 
Sales and marketing51 21 91 87 
Research and development3 1 7 12 
Cost of oncology services50  79 162 
Total stock-based compensation expense$9 $53 $267 $476 

The Company has in place a 2021 Equity Incentive Plan and 2010 Equity Incentive Plan (collectively, the "Plans"). 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.

2021 Equity Incentive Plan
As part of the 2021 Annual Shareholders Meeting, shareholders approved the adoption of the 2021 Equity Incentive Plan (“2021 Equity Plan”). The purpose of the 2021 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Incentive Stock Options; (iii) Restricted Stock Awards; and/or (iv) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2021 Equity Plan shall not exceed 2 million shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest



as determined by the Company's Board of Directors. 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, 2024, approximately 1.3 million shares were available for issue under this plan.

Stock Option Grants
 
Black-Scholes assumptions used to calculate the fair value of options granted during the three and six months ended October 31, 2024 and 2023 were as follows:
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
Expected term in years
6
6
6
6
Risk-free interest rates
3.58% - 3.77%
4.49%
3.58% - 4.48%
3.95% - 4.49%
Volatility
59.47% - 59.57%
63.30%
59.47% - 62.72%
 62.83% - 63.30%
Dividend yield%%%%
 
The weighted average fair value of stock options granted during the three months ended October 31, 2024 and 2023 was $2.48 and $4.02, respectively. The weighted average fair value of stock options granted during the six months ended October 31, 2024 and 2023 was $2.49 and $3.95, respectively.

The Company’s stock options activity for the six months ended October 31, 2024 was as follows:
 
Directors
and
Employees
Non-
Employees
TotalWeighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Outstanding, April 30, 20241,883,166 36,331 1,919,497 $5.04 5.2$2,172,000 
Granted102,500  102,500 4.26 9.8
Exercised(105,137) (105,137)2.63 
Forfeited(210,750) (210,750)6.50   
Canceled(500) (500)6.11 
Expired(1,500) (1,500)6.11   
Outstanding, October 31, 20241,667,779 36,331 1,704,110 4.96 4.8$1,275,000 
Vested and expected to vest as of October 31, 20241,667,779 36,331 1,704,110 4.96 4.8$1,275,000 
Exercisable as of October 31, 20241,566,097 3,750 1,569,847 4.94 4.4$1,275,000 

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 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. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The program does not obligate the Company to acquire a minimum number of shares. As of October 31, 2024, the Company had



purchased 120,333 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.


Note 7. Leases

The Company accounts for its leases under FASB ASC Topic 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if applicable, or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term.
Operating Leases
The Company currently leases certain office equipment and its office and laboratory facilities under non-cancelable operating leases. 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 for the three months ended October 31, 2024 and 2023. Rent expense totaled $907,000 for the six months ended October 31, 2024 and 2023. The Company considers its facilities adequate for its current operational needs.

The Company leases the following facilities:
 
One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease expires in November 2026. The Company recognized $19,000 of rent expense relative to this lease for both the three months ended October 31, 2024 and 2023. The Company recognized $38,000 of rent expense relative to this lease for both the six months ended October 31, 2024 and 2023.
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. The Company executed the original lease in January 2017. The lease was amended to expand the premises and extend the expiration date in March 2020 and again in December 2020. The operating commencement date was August 11, 2017. This lease expires in February 2029. The Company recognized $422,000 and $423,000 of rent expense relative to this lease for the three months ended October 31, 2024 and 2023, respectively. The Company recognized $843,000 and $846,000 of rent expense relative to this lease for the six months ended October 31, 2024 and 2023, respectively.
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. The Company executed separate leases for its laboratory space and office space during fiscal 2022. During fiscal 2023, the Company executed a new lease to consolidate its office and laboratory space at a new nearby location in Italy. 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 of rent expense relative to its current lease for both the three months ended October 31, 2024 and 2023. The Company recognized $25,000 and $26,000 of rent expense relative to this lease for the six months ended October 31, 2024 and 2023, respectively.

ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):
October 31, 2024April 30, 2024
Operating lease right-of-use assets, net
$5,669 $6,252 
Current portion of operating lease liabilities
1,401 1,337 
Non-current portion of operating lease liabilities5,374 6,093 

As of October 31, 2024, the weighted average remaining operating lease term and the weighted average discount rate were 4.24 years and 5.88%, respectively. 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.

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



2025 (remaining)$1,455 
20262,950 
20272,916 
20282,867 
20292,392 
Thereafter 
 Total undiscounted liabilities12,580 
Less: Imputed interest(5,805)
Present value of minimum lease payments$6,775 

The composition of total lease cost for three and six months ended October 31, 2024 and 2023 were as follows (in thousands):

Three Months Ended October 31,Six Months Ended October 31,
2024202320242023
Operating lease costs$432 $420 $861 $834 
Financing lease costs:
   Amortization of leased assets37 36 74 72 
   Interest on lease liabilities 3 4 6 8 
Total lease costs$472 $460 $941 $914 
Refer to Note 5, Property and Equipment, for information on financing leases.


 
Note 8. Related Party Transactions
 
Related party transactions include transactions between the Company and its shareholders, management, or affiliates.  The following transactions were in the normal course of operations and were measured and recorded at the exchange amount, which is the amount of consideration established and agreed to by the parties.
 
Consulting Services
 
During the three months ended October 31, 2024 and 2023, the Company recognized $6,000 and $9,000, respectively, for consulting services provided by an affiliate of a Board member, unrelated to his duty as a Board member. During the six months ended October 31, 2024 and 2023, the Company recognized $15,000 and $18,000, respectively, for consulting services provided by an affiliate of a Board member, 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, 2024, $3,000 was due to this related party. 

Note 9. Commitments and Contingencies
 
Legal Matters
 
The Company is not currently party to any legal matters to its knowledge. The Company is not aware of any other matters that would have a material impact on the Company’s financial position or results of operations.

Registration Payment Arrangements



The Company has entered into an Amended and Restated Registration Rights Agreement in connection with the March 2015 private placement. This Amended and Restated Registration Rights Agreement contains provisions that may call for the Company to pay penalties in certain circumstances. This registration payment arrangement primarily relates to the Company’s ability to file a registration statement within a particular time period, have a registration statement declared effective within a particular time period and to maintain the effectiveness of the registration statement for a particular time period. The Company has not accrued any liquidated damages associated with the Amended and Restated Registration Right Agreement as the Company has filed the required registration statement and anticipates continued compliance with the agreement.

Royalties

The Company contracts with third-party vendors to license tumor samples for development into Patient Derived Xenograft (PDX) models and use in our pharmacology TOS business. These types of arrangements have an upfront fee ranging from nil to $30,000 per tumor sample depending on the successful growth of the tumor model and ability to develop them into a sellable product. The upfront costs are expensed as incurred. In addition, under certain agreements, for a limited period of time, the Company is subject to royalty payments if the licensed tumor models are used for sale in our TOS business, ranging from 2% to 20% of the contract price after recouping certain initiation costs. 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, 2024 and 2023, we have recognized approximately $104,000 and $53,200, respectively, in expense related to these royalty arrangements. For the six months ended October 31, 2024 and 2023, we have recognized approximately $185,000 and $126,200, respectively, in expense related to these royalty arrangements.
 

Note 10. Subsequent Events

In December 2024, the Company executed a licensing agreement under which the Company will license and provide access to certain of its PDX data in exchange for approximately $5.0 million. Within the agreement, the customer has the option to license additional data and models for an another $3.0 million.



Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
The following discussion of our historical results of operations and our liquidity and capital resources should be read in conjunction with the condensed consolidated financial statements and related notes that appear elsewhere in this Report and our 2024 Annual Report.
 
Forward-Looking Statements
 
This Report contains certain “forward-looking statements,” which include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. These forward-looking statements include, without limitation, statements regarding: proposed new programs; expectations that regulatory developments or other matters will not have a material adverse effect on our financial position, results of operations, or liquidity; statements concerning projections, predictions, expectations, estimates, or forecasts as to our business, financial and operational results, and future economic performance; and statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. Words such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions, as well as statements in future tense, identify forward-looking statements.
 
Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.
 
Forward-looking statements speak only as of the date the statements are made. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, those described in “Risk Factors” in Part I, Item 1A of our 2024 Annual Report, as updated in our subsequent reports filed with the SEC, including any updates found in Part II, Item 1A of this or other reports on Form 10-Q, if any. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in



assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Overview and Recent Developments
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 pharmacology, biomarker, and data platforms are designed to facilitate drug discovery and development at lower costs and increased speeds. We perform studies which we believe may predict the efficacy of experimental oncology drugs or approved drugs as stand-alone therapies or in combination with other drugs and can simulate the results of human clinical trials. 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. 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. These studies include the use of our in vivo, ex vivo, analytical and computational platforms.

We are engaged in the development and sale of advanced technology solutions and products to personalize the development and use of oncology drugs through our Translational Oncology Solutions ("TOS"). This technology ranges from computational-based discovery platforms, unique oncology software solutions, and innovative and proprietary experimental tools such as in vivo, ex vivo and biomarker platforms. Utilizing our TumorGraft Technology Platform (the "Platform"), a comprehensive bank of unique, well characterized models, we provide select services to pharmaceutical and biotechnology companies seeking personalized approaches to drug development. By performing studies to predict the efficacy of oncology drugs, our Platform facilitates drug discovery with lower costs and increased speed of drug development as well as increased adoption of existing drugs.

We offer Lumin Bioinformatics ("Lumin"), an oncology data-driven Software as a Service ("SaaS") program. Our Lumin software contains comprehensive information derived from our research services and clinical studies. Lumin leverages our 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.

Our drug discovery and development business leverages the computational and experimental capabilities within our platforms. Our discovery strategy utilizes our Datacenter, coupled with artificial intelligence and other advanced computational analytics, to identify novel therapeutic targets. We then employ the use of our proprietary experimental platforms to validate these targets for further drug development efforts.

We have a pipeline of targets at various stages of discovery and validation, with a select group that has progressed to therapeutic development. Our commercial strategy for the validated targets and therapeutics established from this business is wide-ranging and still being developed. It will depend on many factors, and will be specific for each target or therapeutic area identified. All expenses associated with this part of our business are research and development and are expensed as incurred.

We regularly evaluate strategic options to create additional value from our drug discovery business, which may include, but are not limited to, potential spin-out transactions or capital raises.

Liquidity and Capital Resources
 
Under ASC Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are issued. The following conditions raised substantial doubt about our ability to continue as a going concern: a history of net losses, working capital deficits, accumulated deficit and declining cash position. Going concern matters are more fully discussed in Notes to the Consolidated Financial Statements, Note 2, Summary of Significant Accounting Policies. No adjustments have been made to the financial statements as a result this uncertainty.





Our 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. Most recently, we have met these cash requirements through cash on hand, working capital management, and sales of products and services. In the past, we have also received proceeds from certain private placements and public offerings of our securities. For the six months ended October 31, 2024, the Company had net income of approximately $2.0 million and cash provided by operations of approximately $28,000. As of October 31, 2024, the Company had an accumulated deficit of approximately $82.6 million and cash on hand of approximately $2.8 million. While we believe we have strategies to increase our revenues and reduce our costs which can be implemented without disrupting the business or completely restructuring the Company, there can be no assurances. In order to continue to fund our operations we may need to raise additional equity or debt capital in the near term and cannot provide any assurance that we will be successful in doing so, and if we can, on whether the terms will be acceptable to us. If we are unable to obtain additional financing in the near future, we may be required to pursue a reorganization proceeding, including under applicable bankruptcy or insolvency laws.
 
Operating Results
 
The following table summarizes our operating results for the periods presented below (dollars in thousands):
 
 For the Three Months Ended October 31,
2024% of
Revenue
2023% of
Revenue
%
Change
     
Oncology services revenue$13,489 100.0 %$11,573 100.0 %16.6 %
Costs and operating expenses:    
Cost of oncology services7,428 55.1 6,618 57.2 12.2 
Research and development1,689 12.5 2,515 21.7 (32.8)
Sales and marketing1,751 13.0 1,795 15.5 (2.5)
General and administrative1,889 14.0 2,600 22.5 (27.3)
Total costs and operating expenses12,757 94.6 13,528 116.9 (5.7)
Income (loss) from operations$732 5.4 %$(1,955)(16.9)%(137.4)%
 For the Six Months Ended October 31,
2024% of
Revenue
2023% of
Revenue
%
Change
     
Oncology services revenue$27,550 100.0 %$24,134 100.0 %14.2 %
Costs and operating expenses:   
Cost of oncology services14,500 52.6 14,302 59.3 1.4 
Research and development3,143 11.4 5,308 22.0 (40.8)
Sales and marketing3,430 12.5 3,491 14.5 (1.7)
General and administrative4,416 16.0 5,540 23.0 (20.3)
Total costs and operating expenses25,489 92.5 28,641 118.7 (11.0)
Income (loss) from operations$2,061 7.5 $(4,507)(18.7)%(145.7)%

Oncology Services Revenue
 
Oncology services revenue, which is primarily derived from pharmacology studies, was $13.5 million and $11.6 million for the three months ended October 31, 2024 and 2023, respectively, an increase of $1.9 million or 16.6%. Oncology services



revenue was $27.6 million and $24.1 million for the six months ended October 31, 2024 and 2023, respectively, an increase of $3.4 million or 14.2%. The increase in revenue for both the three-month and six-month periods is primarily due to a strengthening in our bookings, as customers’ budgets have expanded, leading to revenue growth; and, operational improvements and efficiencies implemented. The operational improvements have enabled the Company to convert bookings to revenue at a higher percentage.

Cost of Oncology Services
 
Cost of oncology services for the three months ended October 31, 2024 and 2023 were $7.4 million and $6.6 million, respectively, an increase of $810,000 or 12.2%.  Cost of oncology services for the six months ended October 31, 2024 and 2023 were $14.5 million and $14.3 million, respectively, an increase of $198,000 or 1.4%. The increases in cost of sales for both periods were primarily attributable to an increase in mice and lab supply costs.

 Research and Development
 
Research and development expense for the three months ended October 31, 2024 and 2023 were $1.7 million and $2.5 million, respectively, a decrease of approximately $826,000 or 32.8%. Research and development expense for the six months ended October 31, 2024 and 2023 were $3.1 million and $5.3 million, respectively, a decrease of approximately $2.2 million or 40.8%. The decreases in both the three and six month periods were primarily due to a reduction in investment in our developmental programs including target discovery. The declines were primarily from a reduction in salary expense and research agreements.
 
Sales and Marketing
 
Sales and marketing expenses for the three months ended October 31, 2024 and 2023 were $1.8 million, with a slight decrease of $44,000 or 2.5%. Sales and marketing expenses for the six months ended October 31, 2024 and 2023 were $3.4 million and $3.5 million, with a slight decrease of $61,000 or 1.7%. Sales and marketing expenses are primarily comprised of compensation expenses to support business development.

General and Administrative
 
General and administrative expenses for the three months ended October 31, 2024 and 2023 were $1.9 million and $2.6 million, respectively, a decrease of $711,000, or 27.3%. General and administrative expenses for the six months ended October 31, 2024 and 2023 were $4.4 million and $5.5 million, respectively, a decrease of $1,124,000, or 20.3%. General and administrative expenses are primarily comprised of compensation, insurance, professional fees, IT and depreciation and amortization expenses. The decrease for the three and six month periods ended October 31, 2024 was primarily from a decrease in compensation and employee recruitment expenses and an adjustment to our credit loss reserve.

 
Cash Flows
 
The following discussion relates to the major components of our cash flows:
 
Cash Flows from Operating Activities
 
For the six months ended October 31, 2024, net cash provided by operating activities was $28,000. The cash provided by operating activities was primarily due to income from operations offset by changes in our working capital accounts, including but not limited to, an increase in accounts receivable and a reduction in accounts payable in the ordinary course of business. For the six months ended October 31, 2023, net cash used in operating activities was $3.4 million. The cash used in operating activities was primarily due to the net operating loss during the period.
 
Cash Flows from Investing Activities
 
Net cash used in investing activities was $94,000 and $747,000 for the six months ended October 31, 2024 and 2023, respectively. The cash used in investing activities for the current and prior year period was for the investment in additional lab and computer equipment.
 
Cash Flows from Financing Activities
 
Net cash provided by financing activities was $202,000 for the six months ended October 31, 2024 . For the six months ended October 31, 2024, the cash provided was from cash received from stock options exercises slightly offset by financing



lease payments. Net cash used in financing activities was $456,000 for the six months ended October 31, 2023. The cash used was due to the Company's' stock repurchase program offset by cash received from stock option exercises.


Factors That May Adversely Affect our Results of Operations

Our results of operations may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond our control. Our business could be impacted by, among other things, downturns in the financial markets or in economic conditions, increases in oil prices, inflation, increases in interest rates, supply chain disruptions, declines in consumer confidence and spending, the effects of a resurgence or emergence of pandemic-like viruses, and geopolitical instability, such as the military conflicts in Ukraine and the Middle East. We cannot at this time fully predict the likelihood of one or more of the above events, their duration, or magnitude or the extent to which they may negatively impact our business.

Critical Accounting Estimates and Policies
 
The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to apply methodologies and make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates of the Company include, among other things, accounts receivable realization, revenue recognition, and stock-based compensation assumptions. Actual results could differ from those estimates. The Company’s critical accounting policies are summarized in our 2024 Annual Report.
 
Off-Balance Sheet Financing
 
We have no off-balance sheet debt or similar obligations.  We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported results of operations or financial position.  We do not guarantee any third-party debt.
 
Item 3. Quantitative and Qualitative Disclosures About Market Risk
 
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item.

Item 4. Controls and Procedures
 
Evaluation of Disclosure Controls and Procedures
 
It is management’s responsibility to establish and maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Exchange Act. Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. In designing and evaluating our disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily is required to apply its judgment in evaluating the relationship between the benefit of desired controls and procedures and the cost of implementing new controls and procedures.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Our management has assessed the effectiveness of our internal control over financial reporting as of October 31, 2024. Based on that assessment, our management, including our Chief Executive Officer and our Chief Financial Officer, have concluded that our disclosure controls and procedures were effective as of October 31, 2024 at the reasonable assurance level in ensuring that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure. Further, management concluded that our consolidated financial statements in this Report present fairly, in all material respects, the Company’s financial position, results of operations and cash flows as of the dates, and for the periods presented, in conformity with GAAP.



 
Changes in Internal Control Over Financial Reporting
 
No changes in our internal control over financial reporting occurred during the fiscal quarter ended October 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 




PART II – OTHER INFORMATION
 
Item 1. Legal Proceedings
 
To the knowledge of our management team, there is no litigation currently pending or contemplated against us, any of our officers or directors in their capacity as such, or against any of our property.
 

Item 1A. Risk Factors

As a smaller reporting company under Rule 12-2 of the Exchange Act, we are not required to include risk factors in this Report. However, as of the date of this Report, there have been no material changes with respect to those risk factors previously disclosed in our 2024 Annual Report. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risks could arise that may also affect our business. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.
 
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
Unregistered Sales of Equity Securities

None.

Use of Proceeds

None.

Issuer Purchases of Equity Securities

None.

 
Item 3. Defaults Upon Senior Securities
 
None.
 
Item 4. Mine Safety Disclosures
 
Not applicable.
 
Item 5. Other Information
 
None.



Item 6. Exhibits
  
101.INS* iXBRL Instance Document.
101.SCH* iXBRL Taxonomy Extension Schema Document.
101.CAL* iXBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF* iXBRL Taxonomy Extension Definition Linkbase Document.
101.LAB* iXBRL Taxonomy Extension Label Linkbase Document.
101.PRE* iXBRL Taxonomy Extension Presentation Linkbase Document.



* filed herewith
** furnished herewith



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
  
 CHAMPIONS ONCOLOGY, INC.
 (Registrant)
  
Date: December 16, 2024By:/s/ Ronnie Morris
  Ronnie Morris
  Chief Executive Officer
  (principal executive officer)
   
Date: December 16, 2024By:/s/ David Miller
  David Miller
  Chief Financial Officer
  (principal financial and accounting officer)



EXHIBIT 31.1
 
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
 
I, Ronnie Morris, certify that:
 
1. I have reviewed this Quarterly Report on Form 10-Q of Champions Oncology, Inc., a Delaware corporation;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
 
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: December 16, 2024/s/  Ronnie Morris
 Ronnie Morris
 Chief Executive Officer
 (Principal Executive Officer)



EXHIBIT 31.2
 
CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
 
I, David Miller, certify that:
 
1. I have reviewed this Quarterly Report on Form 10-Q of Champions Oncology, Inc., a Delaware corporation;
 
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
 
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
 
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Date: December 16, 2024/s/  David Miller
 David Miller
 Chief Financial Officer
 (Principal Financial and Accounting Officer)
 


EXHIBIT 32.1
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002
 
In connection with the Quarterly Report of Champions Oncology, Inc. (the “Company”) on Form 10-Q for the period ended October 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the U.S. Sarbanes-Oxley Act of 2002, that to the best of our knowledge:
 
1. the Report fully complies with the requirements of section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and
 
2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
Date: December 16, 2024/s/  Ronnie Morris
 Ronnie Morris
 Chief Executive Officer
 (Principal Executive Officer)
  
Date: December 16, 2024/s/  David Miller
 David Miller
 Chief Financial Officer
 (Principal Financial and Accounting Officer)
 

v3.24.4
Cover - shares
6 Months Ended
Oct. 31, 2024
Dec. 13, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Oct. 31, 2024  
Document Transition Report false  
Entity File Number 001-11504  
Entity Registrant Name CHAMPIONS ONCOLOGY, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 52-1401755  
Entity Address, Address Line One One University Plaza, Suite 307  
Entity Address, Postal Zip Code 07601  
Entity Address, City or Town Hackensack  
Entity Address, State or Province NJ  
City Area Code 201  
Local Phone Number 808-8400  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol CSBR  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   13,819,236
Amendment Flag false  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0000771856  
Current Fiscal Year End Date --04-30  
v3.24.4
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Oct. 31, 2024
Apr. 30, 2024
Current assets:    
Cash and cash equivalents $ 2,754 $ 2,618
Accounts receivable, net 10,470 9,526
Prepaid expenses and other current assets 860 1,495
Total current assets 14,084 13,639
Operating lease right-of-use assets, net 5,669 6,252
Property and equipment, net 4,967 5,721
Other long-term assets 185 185
Goodwill 335 335
Total assets 25,240 26,132
Current liabilities:    
Accounts payable 4,854 5,800
Accrued liabilities 2,235 2,160
Current portion of operating lease liabilities 1,401 1,337
Other current liability 151 150
Deferred revenue 10,220 12,094
Total current liabilities 18,861 21,541
Non-current operating lease liabilities 5,374 6,093
Other non-current liabilities 324 401
Total liabilities 24,559 28,035
Stockholders’ equity (deficiency):    
Common stock, $.001 par value; 200,000,000 shares authorized; 13,819,236 and 13,714,099 shares issued; and 13,698,903 and 13,593,766 outstanding as of October 31, 2024 and April 30, 2024, respectively 14 14
Treasury stock, at cost (708) (708)
Additional paid-in capital 83,927 83,384
Accumulated deficit (82,552) (84,593)
Total stockholders’ equity (deficiency) 681 (1,903)
Total liabilities and stockholders’ equity (deficiency) $ 25,240 $ 26,132
v3.24.4
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares
Oct. 31, 2024
Apr. 30, 2024
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 200,000,000 200,000,000
Common stock, shares issued (in shares) 13,819,236 13,714,099
Common stock, shares outstanding (in shares) 13,698,903 13,593,766
v3.24.4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Income Statement [Abstract]        
Revenue, Product and Service [Extensible List] Service [Member] Service [Member] Service [Member] Service [Member]
Oncology services revenue $ 13,489 $ 11,573 $ 27,550 $ 24,134
Costs and operating expenses:        
Cost, Product and Service [Extensible List] Service [Member] Service [Member] Service [Member] Service [Member]
Cost of oncology services $ 7,428 $ 6,618 $ 14,500 $ 14,302
Research and development 1,689 2,515 3,143 5,308
Sales and marketing 1,751 1,795 3,430 3,491
General and administrative 1,889 2,600 4,416 5,540
Total costs and operating expenses 12,757 13,528 25,489 28,641
Income (loss) from operations 732 (1,955) 2,061 (4,507)
Other income (expense) 7 (105) 11 (91)
Income (loss) before provision for income taxes 739 (2,060) 2,072 (4,598)
Provision for income taxes 11 11 31 39
Net income (loss) $ 728 $ (2,071) $ 2,041 $ (4,637)
Net income (loss) per common share outstanding        
basic (in dollars per share) $ 0.05 $ (0.15) $ 0.15 $ (0.34)
and diluted (in dollars per share) $ 0.05 $ (0.15) $ 0.15 $ (0.34)
Weighted average common shares outstanding        
basic (in shares) 13,593,766 13,497,061 13,593,766 13,529,629
and diluted (in shares) 14,016,953 13,497,061 14,029,666 13,529,629
v3.24.4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY) - USD ($)
$ in Thousands
Total
Common Stock
Treasury Stock
Additional Paid-in Capital
Accumulated Deficit
Beginning balance (in shares) at Apr. 30, 2023   13,544,228      
Beginning balance at Apr. 30, 2023 $ 4,636 $ 14 $ (74) $ 82,013 $ (77,317)
Beginning balance (in shares) at Apr. 30, 2023     14,422    
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation 423     423  
Issuance of common stock on exercise of stock options (in shares)   40,897      
Issuance of common stock on exercise of stock options 12     12  
Repurchase of common stock (in shares)   (101,015) 101,015    
Repurchase of common stock (602)   $ (602)    
Net income (loss) (2,566)       (2,566)
Ending balance (in shares) at Jul. 31, 2023   13,484,110      
Ending balance at Jul. 31, 2023 1,903 $ 14 $ (676) 82,448 (79,883)
Ending balance (in shares) at Jul. 31, 2023     115,437    
Beginning balance (in shares) at Apr. 30, 2023   13,544,228      
Beginning balance at Apr. 30, 2023 4,636 $ 14 $ (74) 82,013 (77,317)
Beginning balance (in shares) at Apr. 30, 2023     14,422    
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) (4,637)        
Ending balance (in shares) at Oct. 31, 2023   13,593,766      
Ending balance at Oct. 31, 2023 93 $ 14 $ (708) 82,741 (81,954)
Ending balance (in shares) at Oct. 31, 2023     120,333    
Beginning balance (in shares) at Jul. 31, 2023   13,484,110      
Beginning balance at Jul. 31, 2023 1,903 $ 14 $ (676) 82,448 (79,883)
Beginning balance (in shares) at Jul. 31, 2023     115,437    
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation 53     53  
Issuance of common stock on exercise of stock options (in shares)   114,552      
Issuance of common stock on exercise of stock options 240     240  
Repurchase of common stock (in shares)   (4,896) 4,896    
Repurchase of common stock (32)   $ (32)    
Net income (loss) (2,071)       (2,071)
Ending balance (in shares) at Oct. 31, 2023   13,593,766      
Ending balance at Oct. 31, 2023 $ 93 $ 14 $ (708) 82,741 (81,954)
Ending balance (in shares) at Oct. 31, 2023     120,333    
Beginning balance (in shares) at Apr. 30, 2024 13,593,766 13,714,099      
Beginning balance at Apr. 30, 2024 $ (1,903) $ 14 $ (708) 83,384 (84,593)
Beginning balance (in shares) at Apr. 30, 2024     120,333    
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation 258     258  
Issuance of common stock on exercise of stock options (in shares)   105,137      
Issuance of common stock on exercise of stock options 276     276  
Net income (loss) 1,313       1,313
Ending balance (in shares) at Jul. 31, 2024   13,714,099      
Ending balance at Jul. 31, 2024 $ (332) $ 14 $ (708) 83,642 (83,280)
Ending balance (in shares) at Jul. 31, 2024     120,333    
Beginning balance (in shares) at Apr. 30, 2024 13,593,766 13,714,099      
Beginning balance at Apr. 30, 2024 $ (1,903) $ 14 $ (708) 83,384 (84,593)
Beginning balance (in shares) at Apr. 30, 2024     120,333    
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income (loss) $ 2,041        
Ending balance (in shares) at Oct. 31, 2024 13,698,903 13,819,236      
Ending balance at Oct. 31, 2024 $ 681 $ 14 $ (708) 83,927 (82,552)
Ending balance (in shares) at Oct. 31, 2024     120,333    
Beginning balance (in shares) at Jul. 31, 2024   13,714,099      
Beginning balance at Jul. 31, 2024 (332) $ 14 $ (708) 83,642 (83,280)
Beginning balance (in shares) at Jul. 31, 2024     120,333    
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Stock-based compensation 9     9  
Net income (loss) $ 728       728
Ending balance (in shares) at Oct. 31, 2024 13,698,903 13,819,236      
Ending balance at Oct. 31, 2024 $ 681 $ 14 $ (708) $ 83,927 $ (82,552)
Ending balance (in shares) at Oct. 31, 2024     120,333    
v3.24.4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Operating activities:    
Net income (loss) $ 2,041 $ (4,637)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Stock-based compensation 267 476
Depreciation and amortization expense 848 929
Loss on disposal of equipment 0 65
Operating lease right-of use assets 583 502
Allowance for doubtful accounts and reversal of provision for credit losses (280) 234
Changes in operating assets and liabilities:    
Accounts receivable (664) 53
Prepaid expenses and other current assets 635 548
Other long term assets 0 (169)
Accounts payable (947) (800)
Accrued liabilities 74 (245)
Operating lease liabilities (655) (549)
Deferred revenue (1,874) 191
Net cash provided by (used in) operating activities 28 (3,402)
Investing activities:    
Purchase of property and equipment (94) (747)
Net cash used in investing activities (94) (747)
Financing activities:    
Proceeds from exercise of options 276 252
Finance lease payments (74) (74)
Repurchases of common stock 0 (634)
Net cash provided by (used in) financing activities 202 (456)
Increase (decrease) in cash 136 (4,605)
Cash at beginning of period 2,618 10,118
Cash at end of period $ 2,754 $ 5,513
v3.24.4
Organization, Use of Estimates and Basis of Presentation
6 Months Ended
Oct. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Use of Estimates and Basis of Presentation Organization, Use of Estimates and Basis of Presentation
 
Champions Oncology, Inc. (the "Company", "us", "we", and "our") is a technology-enabled research organization engaged in creating technology solutions to be utilized in drug discovery and development. The Company's research center operates in both regulatory and non-regulatory environments and consists of a comprehensive set of computational and experimental research platforms. Its pharmacology, biomarker, and data platforms are designed to facilitate drug discovery and development at lower costs and increased speeds.
 
The Company has four operating subsidiaries: Champions Oncology (Israel), Limited, Champions Biotechnology U.K., Limited, Champions Oncology, S.R.L. (Italy), and Corellia A.I.. For the three and six months ended October 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. dollar. Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company’s international operations.
 
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company operates in one reportable business segment.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Intercompany transactions and accounts have been eliminated. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted. The April 30, 2024 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, 2024, as filed in the Company's Annual Report on Form 10-K with the SEC on July 19, 2024 (the "Annual Report"). 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 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations for a full fiscal year.
 
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
v3.24.4
Significant Accounting Policies
6 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in our 2024 Annual Report and there have been no changes to the Company's significant accounting policies during the six months ended October 31, 2024.

Liquidity and Going Concern
 
In accordance with Accounting Standards Codification ("ASC") Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its obligations as they become due within one year after the date that the financial statements are issued. As required under ASC 205-40, management’s evaluation should initially not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.

The Company has experienced negative operating cash flows and has incurred substantial operating losses from its activities, until recently. The Company also has a working capital deficit and an accumulated deficit of $4.8 million and $82.6 million, respectively, as of October 31, 2024. While the Company believes it has strategies to continue to increase revenues and reduce costs which can be implemented without disrupting the business or completely restructuring the Company, there can be no assurances that these efforts will be successful.

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. Most recently, the Company has met these cash requirements through cash on hand, working capital management, and sales of products and services. In the past, the Company has also received proceeds from certain private placements and public offerings of our securities. Should the Company be required to raise additional capital or seek to obtain financing, there can be no assurance that management would be successful in raising such capital or obtaining such financing on terms acceptable to us, if at all.

Such conditions raise substantial doubts about the Company’s ability to continue as a going concern. These condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.


Earnings Per Share
 
Basic net income or loss per share is computed by dividing the net income or loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock options.

The following table reflects these calculations. As of October 31, 2023, all of the Company's potential common stock was considered anti-dilutive due to the Company's net losses in the related period.
 
Three Months Ended
October 31,
Six Months Ended October 31,
(Dollars in Thousands)2024202320242023
Basic net income (loss) per share computation:  
Net income (loss) attributable to common stockholders$728 $(2,071)$2,041 $(4,637)
Weighted Average common shares – basic13,593,766 13,497,061 13,593,766 13,529,629 
Basic net income (loss) per share$0.05 $(0.15)$0.15 $(0.34)
Diluted net income (loss) per share computation:    
Net income (loss) attributable to common stockholders$728 $(2,071)$2,041 $(4,637)
Weighted Average common shares13,593,766 13,497,061 13,593,766 13,529,629 
Incremental shares from assumed exercise of stock options423,187 — 435,900 — 
Adjusted weighted average share – diluted14,016,953 13,497,061 14,029,666 13,529,629 
Diluted net income (loss) per share$0.05 $(0.15)$0.15 $(0.34)

The following table reflects the total potential common stock instruments outstanding at October 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.
 October 31,
 20242023
Total common stock equivalents907,979 1,831,867 
 

Income Taxes
 
    Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient earnings history, a valuation allowance is established. The Company's ability to utilize net operating losses (“NOL”) carryforwards to offset future taxable income would be limited if the Company had undergone or were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code (the “IRC”). The Company adjusts the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of October 31, 2024 and April 30, 2024, 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, 2024 and April 30, 2024.
 
The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not recognize interest or penalties on its consolidated statements of operations during the three or six month periods ended October 31, 2024 and 2023. The Company does not anticipate unrecognized tax benefits will be recorded during the next 12 months.
 
The provision for income taxes for both the three months ended October 31, 2024 and 2023 was $11,000. The provision for income taxes for the six months ended October 31, 2024 and 2023 was $31,000 and $39,000, respectively. The provision is
mainly attributable to taxable income earned in Israel and/or Italy relating to transfer pricing, and U.S. state income taxes for which net operating losses are limited.     

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606 ("ASC 606"), Revenue from Contracts with Customers. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services.

All revenue is generated from contracts with customers. The Company's arrangements are service type contracts that mainly have a duration of less than a year. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions.

The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract.

Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement.

The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12.

Pharmacology Study and Other Services

The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service.

The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation.

Incremental Costs of Obtaining a Contract (Sales Commissions)

Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred.

Variable Consideration

In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include
estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company.

Trade Receivables, Unbilled Services and Deferred Revenue

In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Unbilled services are classified as a component of accounts receivable on the balance sheet.

Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue is recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the condensed consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation.


Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting” (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Tax Disclosures” (Topic 740). The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and the income taxes paid information disclosed. The ASU is effective retrospectively for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.
In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures" (Subtopic 220-40) "Disaggregation of Income Statement Expenses". The new guidance is intended to enhance transparency and disclosures by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU is effective for annual reporting periods after December 15, 2026, and for interim reporting periods beginning December 15, 2027, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.
v3.24.4
Accounts Receivable, Unbilled Services and Deferred Revenue
6 Months Ended
Oct. 31, 2024
Receivables [Abstract]  
Accounts Receivable, Unbilled Services and Deferred Revenue Accounts Receivable, Unbilled Services and Deferred Revenue
Accounts receivable and unbilled services were as follows (in thousands)
October 31, 2024April 30, 2024May 1, 2023
Accounts receivable$4,857 $4,886 $3,843 
Unbilled services6,634 5,941 4,993 
Total accounts receivable and unbilled services11,491 10,827 8,836 
Less: Allowances for credit losses and bad debt(1,021)(1,301)(825)
Total accounts receivable, net$10,470 $9,526 $8,011 

Allowances for credit losses and bad debt were as follows:
Beginning balance April 30, 2024$1,301 
Plus: Provision for credit losses and bad debt— 
Less: Reversal of provision for credit losses and bad debt, net(209)
Less: Reversal for amounts subsequently collected(71)
Less: Write offs— 
Ending balance October 31, 2024$1,021 

Deferred revenue was as follows (in thousands):
October 31, 2024April 30, 2024May 1, 2023
Deferred revenue$10,220 $12,094 $12,776 
v3.24.4
Revenue from Contracts with Customers
6 Months Ended
Oct. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Oncology Services Revenue
The following table represents disaggregated revenue for the three and six months ended October 31, 2024 and 2023:
Three Months Ended
October 31,
Six Months Ended October 31,
 2024202320242023
Pharmacology services$12,498 $10,876 $25,567 $22,735 
Other TOS revenue991 697 1,983 1,381 
Personalized oncology services— — — 18 
Total oncology services revenue$13,489 $11,573 $27,550 $24,134 
Other Translational Oncology Solutions ("TOS") revenue represents additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry services and software-as-a-service ("SaaS") provided via our Lumin Bioinformatics software ("Lumin").
v3.24.4
Property and Equipment
6 Months Ended
Oct. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment is recorded at cost and primarily consists of laboratory equipment, computer equipment and software, capitalized software development costs, and furniture and fixtures. Depreciation and amortization is calculated on a straight-line basis over the estimated useful lives of the various assets ranging from three to nine years. Property and equipment consisted of the following (table in thousands):
October 31,
2024
April 30,
2024
Furniture and fixtures$246 $246 
Computer equipment and software2,155 2,152 
Capitalized software development costs1,888 1,888 
Laboratory equipment11,531 11,506 
Assets in progress69 
Leasehold improvements317 317 
Total property and equipment16,206 16,112 
Less: Accumulated depreciation and amortization(11,239)(10,391)
Property and equipment, net$4,967 $5,721 
Depreciation and amortization expense was $399,000 and $484,000 for the three months ended October 31, 2024 and 2023, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $362,000 and $448,000 for the three months ended October 31, 2024 and 2023, respectively.

Depreciation and amortization expense was $848,000 and $929,000 for the six months ended October 31, 2024 and 2023, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $774,000 and $857,000 for the six months ended October 31, 2024 and 2023, respectively.

As of October 31, 2024 and April 30, 2024, property, plant and equipment included gross assets held under finance leases of $1.0 million. Related depreciation expense was approximately $37,000 and $36,000 for the three months ended October 31, 2024 and 2023, respectively. Related depreciation expense was approximately $74,000 and $72,000 for the six months ended October 31, 2024 and 2023, respectively.


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"). The Company capitalizes 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. Costs incurred for significant upgrades, increased functionality, and enhancements to the Company's internal-use software solutions are also capitalized. Costs incurred for training, maintenance, and minor modifications are expensed as incurred. Capitalized software development costs are amortized using the straight-line method over an estimated useful economic life of three years.


Finance Lease

During fiscal year 2023, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $368,000 at inception through June 2027. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. 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 $18,000 and $17,600 for the three months ended October 31, 2024 and 2023, respectively, and $36,000 and $35,000 for the six months ended 2024 and 2023, respectively.

During fiscal year 2022, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $370,000 at inception through December 2025. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. 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 $19,000 and $18,500 for the three months ended October 31, 2024 and 2023, respectively, and $38,000 and $36,900 for the six months ended 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. The weighted average remaining lease term of these leases is 2.14 years.

Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands):

October 31, 2024April 30, 2024
Financing lease net asset$296 $370 
Current portion of financing lease liabilities
153 150 
Non-current portion of financing lease liabilities143 220 

Future minimum lease payments due each fiscal year as follows (in thousands):
2025 (remaining)$80 
2026140 
202780 
2028
 Total undiscounted liabilities306 
Less: Imputed interest(10)
Present value of minimum lease payments$296 

Refer to Note 7, Leases, for information on operating leases.
v3.24.4
Share-Based Payments
6 Months Ended
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Payments Share-Based Payments
 
Stock-based compensation expense was recognized as follows (table in thousands):
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
General and administrative$(95)$31 $90 $215 
Sales and marketing51 21 91 87 
Research and development12 
Cost of oncology services50 — 79 162 
Total stock-based compensation expense$$53 $267 $476 

The Company has in place a 2021 Equity Incentive Plan and 2010 Equity Incentive Plan (collectively, the "Plans"). 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.

2021 Equity Incentive Plan
As part of the 2021 Annual Shareholders Meeting, shareholders approved the adoption of the 2021 Equity Incentive Plan (“2021 Equity Plan”). The purpose of the 2021 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Incentive Stock Options; (iii) Restricted Stock Awards; and/or (iv) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2021 Equity Plan shall not exceed 2 million shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest
as determined by the Company's Board of Directors. 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, 2024, approximately 1.3 million shares were available for issue under this plan.

Stock Option Grants
 
Black-Scholes assumptions used to calculate the fair value of options granted during the three and six months ended October 31, 2024 and 2023 were as follows:
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
Expected term in years
6
6
6
6
Risk-free interest rates
3.58% - 3.77%
4.49%
3.58% - 4.48%
3.95% - 4.49%
Volatility
59.47% - 59.57%
63.30%
59.47% - 62.72%
 62.83% - 63.30%
Dividend yield—%—%—%—%
 
The weighted average fair value of stock options granted during the three months ended October 31, 2024 and 2023 was $2.48 and $4.02, respectively. The weighted average fair value of stock options granted during the six months ended October 31, 2024 and 2023 was $2.49 and $3.95, respectively.

The Company’s stock options activity for the six months ended October 31, 2024 was as follows:
 
Directors
and
Employees
Non-
Employees
TotalWeighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Outstanding, April 30, 20241,883,166 36,331 1,919,497 $5.04 5.2$2,172,000 
Granted102,500 — 102,500 4.26 9.8
Exercised(105,137)— (105,137)2.63 
Forfeited(210,750)— (210,750)6.50   
Canceled(500)— (500)6.11 
Expired(1,500)— (1,500)6.11   
Outstanding, October 31, 20241,667,779 36,331 1,704,110 4.96 4.8$1,275,000 
Vested and expected to vest as of October 31, 20241,667,779 36,331 1,704,110 4.96 4.8$1,275,000 
Exercisable as of October 31, 20241,566,097 3,750 1,569,847 4.94 4.4$1,275,000 

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 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. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The program does not obligate the Company to acquire a minimum number of shares. As of October 31, 2024, the Company had
purchased 120,333 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.
v3.24.4
Leases
6 Months Ended
Oct. 31, 2024
Leases [Abstract]  
Leases Leases
The Company accounts for its leases under FASB ASC Topic 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if applicable, or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term.
Operating Leases
The Company currently leases certain office equipment and its office and laboratory facilities under non-cancelable operating leases. 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 for the three months ended October 31, 2024 and 2023. Rent expense totaled $907,000 for the six months ended October 31, 2024 and 2023. The Company considers its facilities adequate for its current operational needs.

The Company leases the following facilities:
 
One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease expires in November 2026. The Company recognized $19,000 of rent expense relative to this lease for both the three months ended October 31, 2024 and 2023. The Company recognized $38,000 of rent expense relative to this lease for both the six months ended October 31, 2024 and 2023.
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. The Company executed the original lease in January 2017. The lease was amended to expand the premises and extend the expiration date in March 2020 and again in December 2020. The operating commencement date was August 11, 2017. This lease expires in February 2029. The Company recognized $422,000 and $423,000 of rent expense relative to this lease for the three months ended October 31, 2024 and 2023, respectively. The Company recognized $843,000 and $846,000 of rent expense relative to this lease for the six months ended October 31, 2024 and 2023, respectively.
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. The Company executed separate leases for its laboratory space and office space during fiscal 2022. During fiscal 2023, the Company executed a new lease to consolidate its office and laboratory space at a new nearby location in Italy. 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 of rent expense relative to its current lease for both the three months ended October 31, 2024 and 2023. The Company recognized $25,000 and $26,000 of rent expense relative to this lease for the six months ended October 31, 2024 and 2023, respectively.

ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):
October 31, 2024April 30, 2024
Operating lease right-of-use assets, net
$5,669 $6,252 
Current portion of operating lease liabilities
1,401 1,337 
Non-current portion of operating lease liabilities5,374 6,093 

As of October 31, 2024, the weighted average remaining operating lease term and the weighted average discount rate were 4.24 years and 5.88%, respectively. 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.

Future minimum lease payments due each fiscal year as follows (in thousands):
2025 (remaining)$1,455 
20262,950 
20272,916 
20282,867 
20292,392 
Thereafter— 
 Total undiscounted liabilities12,580 
Less: Imputed interest(5,805)
Present value of minimum lease payments$6,775 

The composition of total lease cost for three and six months ended October 31, 2024 and 2023 were as follows (in thousands):

Three Months Ended October 31,Six Months Ended October 31,
2024202320242023
Operating lease costs$432 $420 $861 $834 
Financing lease costs:
   Amortization of leased assets37 36 74 72 
   Interest on lease liabilities
Total lease costs$472 $460 $941 $914 
Refer to Note 5, Property and Equipment, for information on financing leases.
v3.24.4
Related Party Transactions
6 Months Ended
Oct. 31, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
 
Related party transactions include transactions between the Company and its shareholders, management, or affiliates.  The following transactions were in the normal course of operations and were measured and recorded at the exchange amount, which is the amount of consideration established and agreed to by the parties.
 
Consulting Services
 
During the three months ended October 31, 2024 and 2023, the Company recognized $6,000 and $9,000, respectively, for consulting services provided by an affiliate of a Board member, unrelated to his duty as a Board member. During the six months ended October 31, 2024 and 2023, the Company recognized $15,000 and $18,000, respectively, for consulting services provided by an affiliate of a Board member, 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, 2024, $3,000 was due to this related party.
v3.24.4
Commitments and Contingencies
6 Months Ended
Oct. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
 
Legal Matters
 
The Company is not currently party to any legal matters to its knowledge. The Company is not aware of any other matters that would have a material impact on the Company’s financial position or results of operations.

Registration Payment Arrangements
The Company has entered into an Amended and Restated Registration Rights Agreement in connection with the March 2015 private placement. This Amended and Restated Registration Rights Agreement contains provisions that may call for the Company to pay penalties in certain circumstances. This registration payment arrangement primarily relates to the Company’s ability to file a registration statement within a particular time period, have a registration statement declared effective within a particular time period and to maintain the effectiveness of the registration statement for a particular time period. The Company has not accrued any liquidated damages associated with the Amended and Restated Registration Right Agreement as the Company has filed the required registration statement and anticipates continued compliance with the agreement.

Royalties
The Company contracts with third-party vendors to license tumor samples for development into Patient Derived Xenograft (PDX) models and use in our pharmacology TOS business. These types of arrangements have an upfront fee ranging from nil to $30,000 per tumor sample depending on the successful growth of the tumor model and ability to develop them into a sellable product. The upfront costs are expensed as incurred. In addition, under certain agreements, for a limited period of time, the Company is subject to royalty payments if the licensed tumor models are used for sale in our TOS business, ranging from 2% to 20% of the contract price after recouping certain initiation costs. 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, 2024 and 2023, we have recognized approximately $104,000 and $53,200, respectively, in expense related to these royalty arrangements. For the six months ended October 31, 2024 and 2023, we have recognized approximately $185,000 and $126,200, respectively, in expense related to these royalty arrangements.
v3.24.4
Subsequent Events
6 Months Ended
Oct. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
In December 2024, the Company executed a licensing agreement under which the Company will license and provide access to certain of its PDX data in exchange for approximately $5.0 million. Within the agreement, the customer has the option to license additional data and models for an another $3.0 million.
v3.24.4
Pay vs Performance Disclosure - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Oct. 31, 2023
Jul. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Pay vs Performance Disclosure            
Net income (loss) attributable to common stockholders $ 728 $ 1,313 $ (2,071) $ (2,566) $ 2,041 $ (4,637)
v3.24.4
Insider Trading Arrangements
3 Months Ended
Oct. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.4
Significant Accounting Policies (Policies)
6 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Earnings Per Share
Earnings Per Share
 
Basic net income or loss per share is computed by dividing the net income or loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock options.
Income Taxes
Income Taxes
 
    Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient earnings history, a valuation allowance is established. The Company's ability to utilize net operating losses (“NOL”) carryforwards to offset future taxable income would be limited if the Company had undergone or were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code (the “IRC”). The Company adjusts the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of October 31, 2024 and April 30, 2024, 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’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense.
Revenue Recognition
Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606 ("ASC 606"), Revenue from Contracts with Customers. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services.

All revenue is generated from contracts with customers. The Company's arrangements are service type contracts that mainly have a duration of less than a year. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions.

The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract.

Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement.

The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12.

Pharmacology Study and Other Services

The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service.

The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation.

Incremental Costs of Obtaining a Contract (Sales Commissions)

Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred.

Variable Consideration

In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include
estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company.

Trade Receivables, Unbilled Services and Deferred Revenue

In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Unbilled services are classified as a component of accounts receivable on the balance sheet.

Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue is recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the condensed consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year.
Reclassifications
Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting” (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.

In December 2023, the FASB issued ASU 2023-09, “Improvements to Tax Disclosures” (Topic 740). The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and the income taxes paid information disclosed. The ASU is effective retrospectively for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.
In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures" (Subtopic 220-40) "Disaggregation of Income Statement Expenses". The new guidance is intended to enhance transparency and disclosures by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU is effective for annual reporting periods after December 15, 2026, and for interim reporting periods beginning December 15, 2027, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.
Leases The Company accounts for its leases under FASB ASC Topic 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if applicable, or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term.
v3.24.4
Significant Accounting Policies (Tables)
6 Months Ended
Oct. 31, 2024
Accounting Policies [Abstract]  
Schedule of the calculation of earnings (loss) per share, basic and diluted
The following table reflects these calculations. As of October 31, 2023, all of the Company's potential common stock was considered anti-dilutive due to the Company's net losses in the related period.
 
Three Months Ended
October 31,
Six Months Ended October 31,
(Dollars in Thousands)2024202320242023
Basic net income (loss) per share computation:  
Net income (loss) attributable to common stockholders$728 $(2,071)$2,041 $(4,637)
Weighted Average common shares – basic13,593,766 13,497,061 13,593,766 13,529,629 
Basic net income (loss) per share$0.05 $(0.15)$0.15 $(0.34)
Diluted net income (loss) per share computation:    
Net income (loss) attributable to common stockholders$728 $(2,071)$2,041 $(4,637)
Weighted Average common shares13,593,766 13,497,061 13,593,766 13,529,629 
Incremental shares from assumed exercise of stock options423,187 — 435,900 — 
Adjusted weighted average share – diluted14,016,953 13,497,061 14,029,666 13,529,629 
Diluted net income (loss) per share$0.05 $(0.15)$0.15 $(0.34)
Schedule of antidilutive securities excluded from earnings per share calculations
The following table reflects the total potential common stock instruments outstanding at October 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.
 October 31,
 20242023
Total common stock equivalents907,979 1,831,867 
v3.24.4
Accounts Receivable, Unbilled Services and Deferred Revenue (Tables)
6 Months Ended
Oct. 31, 2024
Receivables [Abstract]  
Schedule of Accounts Receivable, Unbilled Services, And Advanced Billings
Accounts receivable and unbilled services were as follows (in thousands)
October 31, 2024April 30, 2024May 1, 2023
Accounts receivable$4,857 $4,886 $3,843 
Unbilled services6,634 5,941 4,993 
Total accounts receivable and unbilled services11,491 10,827 8,836 
Less: Allowances for credit losses and bad debt(1,021)(1,301)(825)
Total accounts receivable, net$10,470 $9,526 $8,011 
Schedule of Accounts Receivable, Allowance For Credit Loss Allowances for credit losses and bad debt were as follows:
Beginning balance April 30, 2024$1,301 
Plus: Provision for credit losses and bad debt— 
Less: Reversal of provision for credit losses and bad debt, net(209)
Less: Reversal for amounts subsequently collected(71)
Less: Write offs— 
Ending balance October 31, 2024$1,021 
Schedule of Advanced Billings
Deferred revenue was as follows (in thousands):
October 31, 2024April 30, 2024May 1, 2023
Deferred revenue$10,220 $12,094 $12,776 
v3.24.4
Revenue from Contracts with Customers (Tables)
6 Months Ended
Oct. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table represents disaggregated revenue for the three and six months ended October 31, 2024 and 2023:
Three Months Ended
October 31,
Six Months Ended October 31,
 2024202320242023
Pharmacology services$12,498 $10,876 $25,567 $22,735 
Other TOS revenue991 697 1,983 1,381 
Personalized oncology services— — — 18 
Total oncology services revenue$13,489 $11,573 $27,550 $24,134 
v3.24.4
Property and Equipment (Tables)
6 Months Ended
Oct. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property And Equipment Property and equipment consisted of the following (table in thousands):
October 31,
2024
April 30,
2024
Furniture and fixtures$246 $246 
Computer equipment and software2,155 2,152 
Capitalized software development costs1,888 1,888 
Laboratory equipment11,531 11,506 
Assets in progress69 
Leasehold improvements317 317 
Total property and equipment16,206 16,112 
Less: Accumulated depreciation and amortization(11,239)(10,391)
Property and equipment, net$4,967 $5,721 
Schedule of Assets And Liabilities
Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands):

October 31, 2024April 30, 2024
Financing lease net asset$296 $370 
Current portion of financing lease liabilities
153 150 
Non-current portion of financing lease liabilities143 220 
ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):
October 31, 2024April 30, 2024
Operating lease right-of-use assets, net
$5,669 $6,252 
Current portion of operating lease liabilities
1,401 1,337 
Non-current portion of operating lease liabilities5,374 6,093 
Schedule of Finance Lease, Liability, To Be Paid, Maturity
Future minimum lease payments due each fiscal year as follows (in thousands):
2025 (remaining)$80 
2026140 
202780 
2028
 Total undiscounted liabilities306 
Less: Imputed interest(10)
Present value of minimum lease payments$296 
v3.24.4
Share-Based Payments (Tables)
6 Months Ended
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Allocation Of Share Based Compensation Expense
Stock-based compensation expense was recognized as follows (table in thousands):
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
General and administrative$(95)$31 $90 $215 
Sales and marketing51 21 91 87 
Research and development12 
Cost of oncology services50 — 79 162 
Total stock-based compensation expense$$53 $267 $476 
Schedule of Valuation Assumptions For Stock Options Black-Scholes assumptions used to calculate the fair value of options granted during the three and six months ended October 31, 2024 and 2023 were as follows:
 
Three Months Ended
October 31,
Six Months Ended
October 31,
 2024202320242023
Expected term in years
6
6
6
6
Risk-free interest rates
3.58% - 3.77%
4.49%
3.58% - 4.48%
3.95% - 4.49%
Volatility
59.47% - 59.57%
63.30%
59.47% - 62.72%
 62.83% - 63.30%
Dividend yield—%—%—%—%
Schedule of Stock Option Activity
The Company’s stock options activity for the six months ended October 31, 2024 was as follows:
 
Directors
and
Employees
Non-
Employees
TotalWeighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Outstanding, April 30, 20241,883,166 36,331 1,919,497 $5.04 5.2$2,172,000 
Granted102,500 — 102,500 4.26 9.8
Exercised(105,137)— (105,137)2.63 
Forfeited(210,750)— (210,750)6.50   
Canceled(500)— (500)6.11 
Expired(1,500)— (1,500)6.11   
Outstanding, October 31, 20241,667,779 36,331 1,704,110 4.96 4.8$1,275,000 
Vested and expected to vest as of October 31, 20241,667,779 36,331 1,704,110 4.96 4.8$1,275,000 
Exercisable as of October 31, 20241,566,097 3,750 1,569,847 4.94 4.4$1,275,000 
v3.24.4
Leases (Tables)
6 Months Ended
Oct. 31, 2024
Leases [Abstract]  
Schedule of Assets And Liabilities
Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands):

October 31, 2024April 30, 2024
Financing lease net asset$296 $370 
Current portion of financing lease liabilities
153 150 
Non-current portion of financing lease liabilities143 220 
ROU assets and lease liabilities related to our current operating leases are as follows (in thousands):
October 31, 2024April 30, 2024
Operating lease right-of-use assets, net
$5,669 $6,252 
Current portion of operating lease liabilities
1,401 1,337 
Non-current portion of operating lease liabilities5,374 6,093 
Schedule of Future Operating Lease Payments
Future minimum lease payments due each fiscal year as follows (in thousands):
2025 (remaining)$1,455 
20262,950 
20272,916 
20282,867 
20292,392 
Thereafter— 
 Total undiscounted liabilities12,580 
Less: Imputed interest(5,805)
Present value of minimum lease payments$6,775 
Schedule of Lease Cost
The composition of total lease cost for three and six months ended October 31, 2024 and 2023 were as follows (in thousands):

Three Months Ended October 31,Six Months Ended October 31,
2024202320242023
Operating lease costs$432 $420 $861 $834 
Financing lease costs:
   Amortization of leased assets37 36 74 72 
   Interest on lease liabilities
Total lease costs$472 $460 $941 $914 
v3.24.4
Organization, Use of Estimates and Basis of Presentation (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
USD ($)
Oct. 31, 2023
USD ($)
Oct. 31, 2024
USD ($)
subsidiary
segment
Oct. 31, 2023
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Number of operating subsidiaries | subsidiary     4  
Number of reportable segments | segment     1  
Disaggregation of Revenue [Line Items]        
Revenue $ 13,489 $ 11,573 $ 27,550 $ 24,134
Operating Subsidiaries        
Disaggregation of Revenue [Line Items]        
Revenue $ 0 $ 0 $ 0 $ 0
v3.24.4
Significant Accounting Policies - Narrative (Details) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Apr. 30, 2024
Accounting Policies [Abstract]          
Working capital deficit $ 4,800,000   $ 4,800,000    
Accumulated deficit 82,552,000   82,552,000   $ 84,593,000
Unrecognized tax benefits 181,000   181,000   $ 181,000
Income tax penalties and interest expense 0 $ 0 0 $ 0  
Unrecognized tax benefits anticipated during the next 12 months 0   0    
Provision for income taxes $ 11,000 $ 11,000 $ 31,000 $ 39,000  
v3.24.4
Significant Accounting Policies - Schedule of Calculation of Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Jul. 31, 2024
Oct. 31, 2023
Jul. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Basic net income (loss) per share computation:            
Net income (loss) attributable to common stockholders $ 728 $ 1,313 $ (2,071) $ (2,566) $ 2,041 $ (4,637)
Weighted Average common shares - basic (in shares) 13,593,766   13,497,061   13,593,766 13,529,629
Basic net income (loss) per share (in dollars per share) $ 0.05   $ (0.15)   $ 0.15 $ (0.34)
Diluted net income (loss) per share computation:            
Net income (loss) attributable to common stockholders $ 728   $ (2,071)   $ 2,041 $ (4,637)
Weighted Average common shares (in shares) 13,593,766   13,497,061   13,593,766 13,529,629
Incremental shares from assumed exercise of stock options (in shares) 423,187   0   435,900 0
Adjusted weighted average share – diluted (in shares) 14,016,953   13,497,061   14,029,666 13,529,629
Diluted net income (loss) per share (in dollars per share) $ 0.05   $ (0.15)   $ 0.15 $ (0.34)
v3.24.4
Significant Accounting Policies - Schedule of Potentially Antidilutive Securities (Details) - shares
6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Accounting Policies [Abstract]    
Total common stock equivalents (in shares) 907,979 1,831,867
v3.24.4
Significant Accounting Policies - Revenue Recognition (Details) - Few Contracts - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01
Oct. 31, 2024
Minimum  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue arrangements by service contract period 1 year
Maximum  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue arrangements by service contract period 3 years
v3.24.4
Accounts Receivable, Unbilled Services and Deferred Revenue - Schedule of Accounts Receivable, Unbilled Services, And Advanced Billings (Details) - USD ($)
$ in Thousands
Oct. 31, 2024
Apr. 30, 2024
Apr. 30, 2023
Receivables [Abstract]      
Accounts receivable $ 4,857 $ 4,886 $ 3,843
Unbilled services 6,634 5,941 4,993
Total accounts receivable and unbilled services 11,491 10,827 8,836
Less: Allowances for credit losses and bad debt (1,021) (1,301) (825)
Total accounts receivable, net $ 10,470 $ 9,526 $ 8,011
v3.24.4
Accounts Receivable, Unbilled Services and Deferred Revenue - Schedule of Accounts Receivable, Allowance For Credit Loss (Details)
$ in Thousands
6 Months Ended
Oct. 31, 2024
USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]  
Accounts receivable, allowance for credit loss, beginning balance $ 1,301
Plus: Provision for credit losses and bad debt 0
Less: Reversal of provision for credit losses and bad debt, net (209)
Less: Reversal for amounts subsequently collected (71)
Less: Write offs 0
Accounts receivable, allowance for credit loss, ending balance $ 1,021
v3.24.4
Accounts Receivable, Unbilled Services and Deferred Revenue - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Oct. 31, 2024
Apr. 30, 2024
Apr. 30, 2023
Receivables [Abstract]      
Deferred revenue $ 10,220 $ 12,094 $ 12,776
v3.24.4
Revenue from Contracts with Customers (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Disaggregation of Revenue [Line Items]        
Total oncology services revenue $ 13,489 $ 11,573 $ 27,550 $ 24,134
Pharmacology services        
Disaggregation of Revenue [Line Items]        
Total oncology services revenue 12,498 10,876 25,567 22,735
Other TOS revenue        
Disaggregation of Revenue [Line Items]        
Total oncology services revenue 991 697 1,983 1,381
Personalized oncology services        
Disaggregation of Revenue [Line Items]        
Total oncology services revenue $ 0 $ 0 $ 0 $ 18
v3.24.4
Property and Equipment - Narrative (Details) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Apr. 30, 2023
Apr. 30, 2022
Apr. 30, 2024
Property, Plant and Equipment [Line Items]              
Depreciation and amortization $ 399,000 $ 484,000 $ 848,000 $ 929,000      
Depreciation and amortization, excluding finance leases 362,000 448,000 774,000 857,000      
Finance lease, asset, gross 1,000,000.0   1,000,000.0       $ 1,000,000.0
Finance lease, depreciation and amortization 37,000 36,000 74,000 72,000      
Amortization of leased assets $ 37,000 36,000 $ 74,000 72,000      
Finance lease, weighted average remaining lease term 2 years 1 month 20 days   2 years 1 month 20 days        
2023 Finance Lease              
Property, Plant and Equipment [Line Items]              
Finance lease costs     $ 368,000   $ 368,000    
Present value of minimum future obligations interest rate     3.50%        
Amortization of leased assets $ 18,000 17,600 $ 36,000 35,000      
2022 Finance Lease              
Property, Plant and Equipment [Line Items]              
Finance lease costs     $ 370,000     $ 370,000  
Present value of minimum future obligations interest rate     3.25%        
Amortization of leased assets $ 19,000 $ 18,500 $ 38,000 $ 36,900      
Capitalized software development costs              
Property, Plant and Equipment [Line Items]              
Useful lives 3 years   3 years        
Minimum              
Property, Plant and Equipment [Line Items]              
Useful lives 3 years   3 years        
Maximum              
Property, Plant and Equipment [Line Items]              
Useful lives 9 years   9 years        
v3.24.4
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Oct. 31, 2024
Apr. 30, 2024
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 16,206 $ 16,112
Less: Accumulated depreciation and amortization (11,239) (10,391)
Property and equipment, net $ 4,967 $ 5,721
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net Property and equipment, net
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 246 $ 246
Computer equipment and software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 2,155 2,152
Capitalized software development costs    
Property, Plant and Equipment [Line Items]    
Total property and equipment 1,888 1,888
Laboratory equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 11,531 11,506
Assets in progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment 69 3
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 317 $ 317
v3.24.4
Property and Equipment - Schedule of Finance Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Oct. 31, 2024
Apr. 30, 2024
Property, Plant and Equipment [Abstract]    
Financing lease net asset $ 296 $ 370
Current portion of financing lease liabilities 153 150
Non-current portion of financing lease liabilities $ 143 $ 220
v3.24.4
Property and Equipment - Schedule of Finance Lease Future Minimum Lease Payments (Details)
$ in Thousands
Oct. 31, 2024
USD ($)
Property, Plant and Equipment [Abstract]  
2025 (remaining) $ 80
2026 140
2027 80
2028 6
 Total undiscounted liabilities 306
Less: Imputed interest (10)
Present value of minimum lease payments $ 296
v3.24.4
Share-Based Payments - Schedule of Allocation of Share Based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 9 $ 53 $ 267 $ 476
General and administrative        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense (95) 31 90 215
Sales and marketing        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 51 21 91 87
Research and development        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 3 1 7 12
Cost of oncology services        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 50 $ 0 $ 79 $ 162
v3.24.4
Share-Based Payments - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended 19 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Mar. 29, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Weighted-average grant date fair value (in dollars per share) $ 2.48 $ 4.02 $ 2.49 $ 3.95    
Share repurchase program, authorized amount           $ 5,000
Treasury stock (in shares)         120,333  
Treasury stock average price (in dollars per share)         $ 5.73  
Treasury stock approximate value         $ 708  
Remaining repurchase amount $ 4,300   $ 4,300   $ 4,300  
Equity Incentive Plan 2021            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for grant (in shares) 1,300,000   1,300,000   1,300,000  
Expiration term of awards     10 years      
Strike price as percent of market value     100.00%      
Equity Incentive Plan 2021 | Maximum            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares available for grant (in shares) 2,000,000   2,000,000   2,000,000  
v3.24.4
Share-Based Payments - Schedule of Valuation Assumptions for Stock Options (Details)
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Share-Based Payment Arrangement [Abstract]        
Expected term (in years) 6 years 6 years 6 years 6 years
Risk-free interest rates minimum (in percent) 3.58%   3.58% 3.95%
Risk-free interest rates maximum (in percent) 3.77%   4.48% 4.49%
Risk free interest rate (in percent)   4.49%    
Volatility rate minimum (in percent) 59.47%   59.47% 62.83%
Volatility rate maximum (in percent) 59.57%   62.72% 63.30%
Volatility (in percent)   63.30%    
Dividend yield 0.00% 0.00% 0.00% 0.00%
v3.24.4
Share-Based Payments - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended 12 Months Ended
Oct. 31, 2024
Apr. 30, 2024
Total    
Outstanding, beginning balance (in shares) 1,919,497  
Granted (in shares) 102,500  
Exercised (in shares) (105,137)  
Forfeited (in shares) (210,750)  
Canceled (in shares) (500)  
Expired (in shares) (1,500)  
Outstanding, ending balance (in shares) 1,704,110 1,919,497
Vested and expected to vest (in shares) 1,704,110  
Exercisable (in shares) 1,569,847  
Weighted Average Exercise Price    
Outstanding, beginning balance (in dollars per share) $ 5.04  
Granted (in dollars per share) 4.26  
Exercised (in dollars per share) 2.63  
Forfeited (in dollars per share) 6.50  
Canceled (in dollars per share) 6.11  
Expired (in dollars per share) 6.11  
Outstanding, ending balance (in dollars per share) 4.96 $ 5.04
Vested and expected to vest (in dollars per share) 4.96  
Exercisable (in dollars per share) $ 4.94  
Weighted Average Remaining Contractual Life (Years)    
Outstanding (in years) 4 years 9 months 18 days 5 years 2 months 12 days
Outstanding, granted (in years) 9 years 9 months 18 days  
Vested and expected to vest (in years) 4 years 9 months 18 days  
Exercisable (in years) 4 years 4 months 24 days  
Aggregate Intrinsic Value    
Outstanding $ 1,275 $ 2,172
Vested and expected to vest 1,275  
Exercisable $ 1,275  
Directors and Employees    
Total    
Outstanding, beginning balance (in shares) 1,883,166  
Granted (in shares) 102,500  
Exercised (in shares) (105,137)  
Forfeited (in shares) (210,750)  
Canceled (in shares) (500)  
Expired (in shares) (1,500)  
Outstanding, ending balance (in shares) 1,667,779 1,883,166
Vested and expected to vest (in shares) 1,667,779  
Exercisable (in shares) 1,566,097  
Non- Employees    
Total    
Outstanding, beginning balance (in shares) 36,331  
Granted (in shares) 0  
Exercised (in shares) 0  
Forfeited (in shares) 0  
Canceled (in shares) 0  
Expired (in shares) 0  
Outstanding, ending balance (in shares) 36,331 36,331
Vested and expected to vest (in shares) 36,331  
Exercisable (in shares) 3,750  
v3.24.4
Leases - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Lessee, Lease, Description [Line Items]        
Operating leases, rent expense $ 454 $ 454 $ 907 $ 907
Weighted average remaining lease term (in years) 4 years 2 months 26 days 5 years 2 months 19 days 4 years 2 months 26 days 5 years 2 months 19 days
Weighted average discount rate, percent 5.88% 5.87% 5.88% 5.87%
Corporate Headquarters        
Lessee, Lease, Description [Line Items]        
Operating leases, rent expense $ 19 $ 19 $ 38 $ 38
Rockville, MD        
Lessee, Lease, Description [Line Items]        
Operating leases, rent expense 422 423 843 846
Milan Italy        
Lessee, Lease, Description [Line Items]        
Operating leases, rent expense $ 13 $ 13 $ 25 $ 26
v3.24.4
Leases - Schedule of ROU Assets and Lease Liabilities (Details) - USD ($)
$ in Thousands
Oct. 31, 2024
Apr. 30, 2024
Leases [Abstract]    
Operating lease right-of-use assets, net $ 5,669 $ 6,252
Current portion of operating lease liabilities 1,401 1,337
Non-current portion of operating lease liabilities $ 5,374 $ 6,093
v3.24.4
Leases - Schedule of Future Minimum Lease Payments (Details)
$ in Thousands
Oct. 31, 2024
USD ($)
Future minimum lease payments due each fiscal year as follows  
2025 (remaining) $ 1,455
2026 2,950
2027 2,916
2028 2,867
2029 2,392
Thereafter 0
 Total undiscounted liabilities 12,580
Less: Imputed interest (5,805)
Present value of minimum lease payments $ 6,775
v3.24.4
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Leases [Abstract]        
Operating lease costs $ 432 $ 420 $ 861 $ 834
Financing lease costs:        
Amortization of leased assets 37 36 74 72
Interest on lease liabilities 3 4 6 8
Total lease costs $ 472 $ 460 $ 941 $ 914
v3.24.4
Related Party Transactions (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Related Party        
Related Party Transaction [Line Items]        
Due to related parties $ 3   $ 3  
Board Member | Board Member One        
Related Party Transaction [Line Items]        
Related party transaction, amounts of transaction $ 6 $ 9 $ 15 $ 18
v3.24.4
Commitment and Contingencies (Details) - USD ($)
3 Months Ended 6 Months Ended
Oct. 31, 2024
Oct. 31, 2023
Oct. 31, 2024
Oct. 31, 2023
Commitments and Contingencies [Line Items]        
Royalty expense $ 104,000 $ 53,200 $ 185,000 $ 126,200
Minimum        
Commitments and Contingencies [Line Items]        
Royalty fee per tumor sample     $ 0  
Royalty payment, as percent of contract price     2.00%  
Maximum        
Commitments and Contingencies [Line Items]        
Royalty fee per tumor sample     $ 30,000  
Royalty payment, as percent of contract price     20.00%  
v3.24.4
Subsequent Events (Details) - Subsequent Event
$ in Millions
Dec. 12, 2024
USD ($)
Subsequent Event [Line Items]  
Proceeds from license agreement $ 5.0
Potential Future Optional Licensing Opportunity  
Subsequent Event [Line Items]  
Proceeds from license agreement $ 3.0

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