Anixa Biosciences Inc

Previous wording

In fiscal year 2023, we recorded revenue of approximately $210,000 from one license agreement related to our encrypted audio/video conference calling technology. The license agreement provided for a one-time, non-recurring, lump sum payment in exchange for a non-exclusive retroactive and future license, and covenant not to sue. Pursuant to the terms of the agreement, we have no further obligations with respect to the granted intellectual property rights, including no obligation to maintain or upgrade the technology, or provide future support or services. Accordingly, the performance obligations from the license were satisfied and 100% of the revenue was recognized upon execution of the license agreement. We did not have any revenue in fiscal year 2022.

Current wording

We did not have any revenue in fiscal year 2024. In fiscal year 2023, we recorded revenue of approximately $210,000 from one license agreement related to our encrypted audio/video conference calling technology. The license agreement provided for a one-time, non-recurring, lump sum payment in exchange for a non-exclusive retroactive and future license, and covenant not to sue. Pursuant to the terms of the agreement, we have no further obligations with respect to the granted intellectual property rights, including no obligation to maintain or upgrade the technology, or provide future support or services. Accordingly, the performance obligations from the license were satisfied and 100% of the revenue was recognized upon execution of the license agreement.

Previous wording

In fiscal year 2023, inventor royalties, contingent legal fees, litigation and licensing expenses related to patent assertion activities were approximately $161,000. Inventor royalties and contingent legal fees are expensed in the period that the related revenues are recognized. Litigation and licensing expenses related to patent assertion, other than contingent legal fees, are expensed in the period incurred.

Current wording

We did not have any inventor royalties, contingent legal fees, litigation and licensing expenses related to patent assertion activities in fiscal year 2024. In fiscal year 2023, inventor royalties, contingent legal fees, litigation and licensing expenses related to patent assertion activities were approximately $161,000. Inventor royalties and contingent legal fees are expensed in the period that the related revenues are recognized. Litigation and licensing expenses related to patent assertion, other than contingent legal fees, are expensed in the period incurred.

Previous wording

Research and development expenses are related to the development of our cancer therapeutic and vaccine programs, and our anti-viral drug program, and decreased by approximately $1,934,000 to approximately $4,769,000 in fiscal year 2023, from approximately $6,703,000 in fiscal year 2022. The decrease in research and development expenses was primarily due to a decrease in employee stock option compensation expense of approximately $1,386,000, a decrease in research and development expenses related to our COVID-19 development program of approximately $485,000 as a result of the suspension of that program in March 2023, a decrease in license fees of approximately $225,000, a decrease in consultant stock option expense of approximately $213,000, a decrease in research and development expenses related to our CAR-T development program of approximately $156,000, and a decrease in research and development expenses related to our ovarian cancer vaccine development program of approximately $130,000, offset by an increase in research and development expenses related to our breast cancer vaccine development program of approximately $563,000 and an increase in employee compensation and related costs, other than stock option compensation expense, of approximately $147,000.

Current wording

Research and development expenses increased by approximately $1,627,000 to approximately $6,396,000 in fiscal year 2024, from approximately $4,769,000 in fiscal year 2023. The increase in research and development expenses was primarily due to an increase in research and development expenses related to our CAR-T development program of approximately $845,000, an increase in research and development expenses related to our breast cancer vaccine development program of approximately $834,000, an increase in research and development expenses related to our new vaccine discover program of approximately $113,000, an increase in clinical trial consulting services of approximately $101,000, offset by a decrease in research and development expenses related to our ovarian cancer vaccine development program of approximately $170,000 and a decrease in consultant stock option expense of approximately $137,000.

Previous wording

General and administrative expenses decreased by approximately $881,000 to approximately $6,291,000 in fiscal year 2023, from approximately $7,172,000 in fiscal year 2022. The decrease in general and administrative expenses was principally due to a decrease in employee stock option compensation expense of approximately $309,000, a decrease in professional fees of approximately $239,000, a decrease in consultant warrant expense of approximately $221,000, a decrease in employee compensation and related costs, other than stock option compensation expense, of approximately $214,000, and a decrease in patent expenses of approximately $152,000, offset by an increase in director compensation expense, other than stock option compensation expense, of approximately $121,000 and an increase in director stock option compensation expense of approximately $116,000.

Current wording

General and administrative expenses increased by approximately $1,144,000 to approximately $7,435,000 in fiscal year 2024, from approximately $6,291,000 in fiscal year 2023. The increase in general and administrative expenses was principally due to an increase in investor and public relations firm expenses of approximately $629,000, an increase in stock compensation for investor and public relations firm of approximately $145,000, an increase in employee compensation and related costs, other than stock option compensation expense, of approximately $141,000 and an increase in employee stock option compensation expense of approximately $111,000.

Previous wording

Interest income increased to approximately $1,081,000 in fiscal year 2023 compared to approximately $104,000 in fiscal year 2022, due to an increase in interest rates and the increased dollar amount held in short-term investments.

Current wording

Interest income increased to approximately $1,133,000 in fiscal year 2024 compared to approximately $1,081,000 in fiscal year 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, decreased by approximately $57,000 to approximately $119,000 in fiscal year 2023, from approximately $176,000 in fiscal year 2022, as Certainty’s net loss decreased.

Current wording

The net loss attributable to noncontrolling interest, representing Wistar’s ownership interest in Certainty’s net loss, increased by approximately $25,000 to approximately $144,000 in fiscal year 2024, from approximately $119,000 in fiscal year 2023, as Certainty’s net loss increased.

Previous wording

Based on currently available information as of January 16, 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. Under our at-the-market equity program, which is currently effective and may remain available for us to use in the future, as of October 31, 2023, we may sell up to $100 million of common stock. We did not sell any shares under our at-the-market equity program during the fiscal year ended October 31, 2023. 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 January 10, 2025, 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 year ended October 31, 2024, we raised approximately $2,955,000, net of expenses, through an at-the-market equity offering of 785,290 shares 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 October 31, 2024, we may sell up to $97 million of common stock. We may seek to obtain working capital during our fiscal year 2025 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 could significantly harm the business and development of operations.

Previous wording

During the fiscal year ended October 31, 2023, cash used in operating activities was approximately $6,209,000. Cash used in investing activities was approximately $5,602,000, resulting from the purchase of short-term investments of approximately $44,411,000, which was offset by the proceeds on maturities of short-term investments of approximately $38,809,000. Cash provided by financing activities was approximately $366,000, resulting from proceeds from the exercise of stock options of approximately $353,000 and proceeds from the sale of common stock pursuant to an employee stock purchase plan of approximately $13,000. As a result, our cash, cash equivalents, and short-term investments at October 31, 2023 decreased approximately $5,843,000 to approximately $23,844,000 from approximately $29,687,000 at the end of fiscal year 2022.

Current wording

During the fiscal year ended October 31, 2024, cash used in operating activities was approximately $7,335,000. Cash provided by investing activities was approximately $4,276,000, resulting from the proceeds on maturities of short-term investments of approximately $68,046,000, which was offset by the purchase of short-term investments of approximately $63,770,000. Cash provided by financing activities was approximately $3,415,000, resulting from the sale of 785,290 shares of common stock in at at-the-market equity offering of approximately $2,955,000, proceeds from the exercise of stock options of approximately $456,000 and proceeds from the sale of common stock pursuant to an employee stock purchase plan of approximately $10,000, offset by the purchase of treasury stock of approximately $6,000. As a result, our cash, cash equivalents, and short-term investments at October 31, 2024 decreased approximately $3,920,000 to approximately $19,924,000 from approximately $23,844,000 at the end of fiscal year 2023.

Previous wording

We have expected future cash obligations related to the lease of our offices through 2026, estimated at approximately $202,000.

Current wording

We have expected future cash obligations related to the lease of our offices through 2029, inclusive of extension periods, estimated at approximately $312,000.

Previous wording

We discuss the effect of recently issued pronouncements in Note 2 to the Consolidated Financial Statements.

Current wording

We discuss the potential expected impacts of recently issued pronouncements in Note 2 to the Consolidated Financial Statements.