Anixa Biosciences Inc

Previous wording

We have not generated any revenue to date from our therapeutics or vaccine programs. In addition, while we pursue our therapeutics and vaccine programs, we may also make investments in and form new companies to develop additional emerging technologies. We do not expect to begin generating revenue with respect to any of our current therapy or vaccine programs in the near term. We hope to achieve a profitable outcome by eventually licensing our technologies to large pharmaceutical companies that have the resources and infrastructure in place to manufacture, market and sell our technologies as therapeutics or vaccines. The eventual licensing of any of our technologies may take several years, if it is to occur at all, and may depend on positive results from human clinical trials.

Current wording

We have not generated any revenue to date from our therapeutics or vaccine programs. In addition, while we pursue our therapeutics and vaccine programs, we may also make investments in and form new companies to develop additional emerging technologies. We do not expect to begin generating revenue with respect to any of our current therapy or vaccine programs in the near term. We intend to achieve a profitable outcome by eventually licensing our technologies to large pharmaceutical companies that have the resources and infrastructure in place to manufacture, market and sell our technologies as therapeutics or vaccines. The eventual licensing of any of our technologies may take several years, if it is to occur at all, and may depend on positive results from human clinical trials.

Previous wording

Research and development expenses are related to the development of our cancer therapeutics and vaccine programs and the expenses incurred in the three months ended January 31, 2024 consisted of approximately $629,000 and $720,000 for CAR-T therapeutics and cancer vaccines, respectively.

Current wording

Research and development expenses are related to the development of our cancer therapeutics and vaccine programs and the expenses incurred in the three months ended April 30, 2024 consisted of approximately $798,000 and $848,000 for CAR-T therapeutics and cancer vaccines, respectively.

Previous wording

General and administrative expenses increased by approximately $772,000 to approximately $2,260,000 in the three months ended January 31, 2024, from approximately $1,488,000 in the three months ended January 31, 2023. The increase in general and administrative expenses was primarily due to an increase in investor and public relations expense of approximately $389,000, an increase in employee stock option compensation expense of approximately $95,000, an increase in legal and other professional fees of approximately $78,000, an increase in employee compensation and related costs, other than stock option compensation expense, of approximately $77,000, and an increase in director compensation, including stock option compensation, of approximately $72,000.

Current wording

General and administrative expenses increased by approximately $210,000 to approximately $1,821,000 in the three months ended April 30, 2024, from approximately $1,611,000 in the three months ended April 30, 2023. The increase in general and administrative expenses was primarily due to an increase in investor and public relations expense of approximately $214,000, an increase in consulting fees of approximately $89,000, and an increase in director stock option compensation expense of approximately $48,000, offset by a decrease in employee compensation and related costs, other than stock option compensation expense, of approximately $111,000.

Previous wording

Interest income increased by approximately $117,000 to approximately $319,000 in the three months ended January 31, 2024, from approximately $202,000 in the three months ended January 31, 2023, due to an increase in interest rates and the increased dollar amount held in short-term investments.

Current wording

Interest income increased by approximately $34,000 to approximately $287,000 in the three months ended April 30, 2024, from approximately $253,000 in the three months ended April 30, 2023, due to an increase in interest rates and the increased average dollar amount held in short-term investments.

Previous wording

The net loss attributable to noncontrolling interest, representing Wistar’s ownership interest in Certainty’s net loss, increased by approximately $3,000 to approximately $35,000 in the three months ended January 31, 2024 from approximately $32,000 in the three months ended January 31, 2023, as Certainty’s net loss increased.

Current wording

The net loss attributable to noncontrolling interest, representing Wistar’s ownership interest in Certainty’s net loss, increased by approximately $22,000 to approximately $41,000 in the three months ended April 30, 2024, from approximately $19,000 in the three months ended April 30, 2023, as Certainty’s net loss increased.

Previous wording

Research and development expenses increased by approximately $281,000 to approximately $1,349,000 in the three months ended January 31, 2024, from approximately $1,068,000 in the three months ended January 31, 2023. The increase in research and development expenses was primarily due to an increase in outside research and development expenses related to our breast cancer vaccine program of approximately $164,000, an increase in outside research and development expenses related to our CAR-T therapeutics program of approximately $141,000, and an increase in employee compensation and related costs, other than stock option compensation expense, of approximately $84,000, offset by a decrease in outside research and development expenses related to our ovarian cancer vaccine program of approximately $71,000.

Current wording

Research and development expenses increased by approximately $929,000 to approximately $2,995,000 in the six months ended April 30, 2024, from approximately $2,066,000 in the six months ended April 30, 2023. The increase in research and development expenses was primarily due to an increase in outside research and development expenses related to our CAR-T therapeutics program of approximately $407,000, an increase in outside research and development expenses related to our breast cancer vaccine program of approximately $394,000, an increase in employee compensation and related costs, other than stock option compensation expense, of approximately $195,000, and an increase in employee stock option compensation of approximately $80,000, offset by a decrease in outside research and development expenses related to our ovarian cancer vaccine program of approximately $96,000 and a decrease in consultant stock option expense of approximately $68,000.

Previous wording

Based on currently available information as of March 12, 2024, we believe that our existing cash, cash equivalents, short-term investments and expected cash flows will be sufficient to fund our activities for at least the next twelve months. We have implemented a business model that conserves funds by collaborating with third parties to develop our technologies. However, our projections of future cash needs and cash flows may differ from actual results. If current cash on hand, cash equivalents, short-term investments and cash that may be generated from our business operations are insufficient to continue to operate our business, or if we elect to invest in or acquire a company or companies or new technology or technologies that are synergistic with or complementary to our technologies, we may be required to obtain more working capital. During the three months ended January 31, 2024, we raised approximately $2,196,000, net of expenses, through an at-the-market equity offering of 555,820 shares of common stock, under which offering we may issue up to $100 million of common stock. Under our at-the-market equity program, which is currently effective and may remain available for us to use in the future, as of January 31, 2024, we may sell an additional approximately $98 million of common stock. We may seek to obtain working capital during our fiscal year 2024 or thereafter through sales of our equity securities or through bank credit facilities or public or private debt from various financial institutions where possible. We cannot be certain that additional funding will be available on acceptable terms, or at all. If we do identify sources for additional funding, the sale of additional equity securities or convertible debt will result in dilution to our stockholders. We can give no assurance that we will generate sufficient cash flows in the future to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available or would be approved by our security holders, if needed, on favorable terms or at all. If we fail to obtain additional working capital as and when needed, such failure could have a material adverse impact on our business, results of operations and financial condition. Furthermore, such lack of funds may inhibit our ability to respond to competitive pressures or unanticipated capital needs, or may force us to reduce operating expenses, which would significantly harm the business and development of operations.

Current wording

Based on currently available information as of June 4, 2024, we believe that our existing cash, cash equivalents, short-term investments and expected cash flows will be sufficient to fund our activities for at least the next twelve months. We have implemented a business model that conserves funds by collaborating with third parties to develop our technologies. However, our projections of future cash needs and cash flows may differ from actual results. If current cash on hand, cash equivalents, short-term investments and cash that may be generated from our business operations are insufficient to continue to operate our business, or if we elect to invest in or acquire a company or companies or new technology or technologies that are synergistic with or complementary to our technologies, we may be required to obtain more working capital. During the six months ended April 30, 2024, we raised approximately $3,029,000, net of expenses, through an at-the-market equity offering of 785,290 shares of common stock, under which offering we may issue up to $100 million of common stock. Under our at-the-market equity program, which is currently effective and may remain available for us to use in the future, as of April 30, 2024, we may sell an additional approximately $97 million of common stock. We may seek to obtain working capital during our fiscal year 2024 or thereafter through sales of our equity securities or through bank credit facilities or public or private debt from various financial institutions where possible. We cannot be certain that additional funding will be available on acceptable terms, or at all. If we do identify sources for additional funding, the sale of additional equity securities or convertible debt will result in dilution to our stockholders. We can give no assurance that we will generate sufficient cash flows in the future to satisfy our liquidity requirements or sustain future operations, or that other sources of funding, such as sales of equity or debt, would be available or would be approved by our security holders, if needed, on favorable terms or at all. If we fail to obtain additional working capital as and when needed, such failure could have a material adverse impact on our business, results of operations and financial condition. Furthermore, such lack of funds may inhibit our ability to respond to competitive pressures or unanticipated capital needs, or may force us to reduce operating expenses, which would significantly harm the business and development of operations.

Previous wording

During the three months ended January 31, 2024, cash used in operating activities was approximately $2,309,000. Cash provided by investing activities was approximately $129,000, resulting from the maturities of short-term investments of approximately $20,149,000, offset by purchases of short-term investments totaling approximately $20,020,000. Cash provided by financing activities was approximately $2,263,000, resulting from the sale of 555,820 shares of common stock in an at-the-market equity offering of approximately $2,196,000, net of expenses, and the proceeds from stock option exercises of approximately $67,000. As a result, our cash, cash equivalents, and short-term investments at January 31, 2024 decreased approximately $46,000 to approximately $23,798,000 from approximately $23,844,000 at the end of fiscal year 2023.

Current wording

During the six months ended April 30, 2024, cash used in operating activities was approximately $3,765,000. Cash provided by investing activities was approximately $685,000, resulting from the maturities of short-term investments of approximately $35,423,000, offset by purchases of short-term investments totaling approximately $34,738,000. Cash provided by financing activities was approximately $3,160,000, resulting from the sale of 785,290 shares of common stock in an at-the-market equity offering of approximately $3,029,000, net of expenses, proceeds from stock option exercises of approximately $124,000, and proceeds from the sale of common stock pursuant to an employee stock purchase plan of approximately $7,000. As a result, our cash, cash equivalents, and short-term investments at April 30, 2024 decreased approximately $605,000 to approximately $23,239,000 from approximately $23,844,000 at the end of fiscal year 2023.