Anixa Biosciences Inc

Previous wording

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Current wording

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Previous wording

We had no revenue during the three months ended July 31, 2024 and 2023.

Current wording

We had no revenue during the three-month periods ended January 31, 2025 and 2024.

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 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.

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 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.

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 July 31, 2024 consisted of approximately $666,000 and $1,259,000 for CAR-T therapeutics and cancer vaccines, respectively.

Current wording

During the three months ended January 31, 2025, research and development expenses related to the development of our cancer vaccines and CAR-T therapeutics consisted of approximately $975,000 and $577,000, respectively. During the three months ended January 31, 2024 research and development expenses related to the development of our cancer vaccines and CAR-T therapeutics consisted of approximately $720,000 and $629,000, respectively.

Previous wording

Research and development expenses increased by approximately $1,766,000 to approximately $4,920,000 in the nine months ended July 31, 2024, from approximately $3,154,000 in the nine months ended July 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 $1,088,000, an increase in outside research and development expenses related to our CAR-T therapeutics program of approximately $642,000, an increase in employee compensation and related costs, other than stock option compensation expense, of approximately $120,000, an increase in consulting fees of approximately $72,000, an increase in employee stock option compensation of approximately $57,000, and an increase in outside research and development expenses related to our new cancer vaccine discovery program of approximately $56,000, offset by a decrease in outside research and development expenses related to our ovarian cancer vaccine program of approximately $195,000 and a decrease in consultant stock option expense of approximately $103,000.

Current wording

Research and development expenses increased by approximately $203,000 to approximately $1,552,000 in the three months ended January 31, 2025, from approximately $1,349,000 in the three months ended January 31, 2024. 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 $88,000, an increase in license fees related to our ovarian cancer CAR-T therapeutic of approximately $80,000, an increase in employee compensation and related costs, other than stock-based compensation expense, of approximately $69,000, and an increase in outside research and development expenses related to our new vaccine discovery program of approximately $56,000, offset by a decrease in employee stock-based compensation expense of approximately $59,000, and a decrease in consultant stock-based compensation expense of approximately $33,000.

Previous wording

General and administrative expenses decreased by approximately $89,000 to approximately $1,667,000 in the three months ended July 31, 2024, from approximately $1,756,000 in the three months ended July 31, 2023. The decrease in general and administrative expenses was primarily due to a decrease in director stock option compensation expense of approximately $97,000 and a decrease in director fees of approximately $53,000, offset by an increase in employee stock option compensation expense of approximately $60,000.

Current wording

General and administrative expenses decreased by approximately $426,000 to approximately $1,834,000 in the three months ended January 31, 2025, from approximately $2,260,000 in the three months ended January 31, 2024. The decrease in general and administrative expenses was primarily due to a decrease in investor and public relations expense of approximately $291,000, a decrease in employee compensation and related costs, other than stock-based compensation expense, of approximately $70,000, a decrease in director stock-based compensation of approximately $67,000, and a decrease in legal and other professional fees of approximately $57,000, offset by an increase in employee stock-based compensation expense of approximately $48,000.

Previous wording

The net loss attributable to noncontrolling interest, representing Wistar’s ownership interest in Certainty’s net loss, increased by approximately $1,000 to approximately $38,000 in the three months ended July 31, 2024, from approximately $37,000 in the three months ended July 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, decreased by approximately $6,000 to approximately $29,000 in the three months ended January 31, 2025 from approximately $35,000 in the three months ended January 31, 2024, as Certainty’s net loss decreased.

Previous wording

Based on currently available information as of September 6, 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. The Company has approximately $20,745,000 of cash, cash equivalents, and short-term investments at July 31, 2024 compared to approximately $23,844,000 at October 31, 2023 which is a reduction of approximately $3,099,000 during the nine months ended July 31, 2024. Therefore, the Company believes that it has sufficient cash, cash equivalents, and short-term investments to operate its business, as currently contemplated, for significantly longer than 12 months from the date of this Report. We have implemented a business model that conserves funds by collaborating with third parties to develop our technologies. During the nine months ended July 31, 2024, we raised approximately $2,984,000, 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 July 31, 2024, we may sell an additional approximately $97 million of common stock.

Current wording

Based on currently available information as of March 11, 2025, we believe that our existing cash, cash equivalents and short-term investments will be sufficient to fund our activities for at least the next twelve months. The Company had approximately $18,686,000 of total current assets at January 31, 2025 compared to approximately $21,362,000 at October 31, 2024 which is a reduction of approximately $2,676,000 for the three months ended January 31, 2025. Therefore, the Company believes that it has sufficient cash, cash equivalents and short-term investments to operate its business, as currently contemplated, for significantly longer than 12 months from the date of this Report. We have implemented a business model that conserves funds by collaborating with third parties to develop our technologies. During the three months ended January 31, 2025, we did not issue any shares under our at-the-market equity offering. 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, 2025, we may sell approximately $97 million of common stock.

Previous wording

During the nine months ended July 31, 2024, cash used in operating activities was approximately $6,408,000. Cash provided by investing activities was approximately $3,409,000, resulting from the maturities of short-term investments of approximately $50,716,000, offset by purchases of short-term investments totaling approximately $47,307,000. Cash provided by financing activities was approximately $3,309,000, resulting from the sale of 785,290 shares of common stock in an at-the-market equity offering of approximately $2,984,000, net of expenses, proceeds from stock option exercises of approximately $318,000, 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 July 31, 2024 decreased approximately $3,099,000 to approximately $20,745,000 from approximately $23,844,000 at the end of fiscal year 2023.

Current wording

During the three months ended January 31, 2025, cash used in operating activities was approximately $2,904,000. Cash provided by investing activities was approximately $2,703,000, resulting from the maturities of short-term investments of approximately $15,700,000, offset by purchases of short-term investments totaling approximately $12,997,000. Cash used in financing activities was approximately $17,000, due to expenses related to maintaining our at-the-market equity offering program. As a result, our cash, cash equivalents, and short-term investments at January 31, 2025 decreased approximately $2,669,000 to approximately $17,255,000 from approximately $19,924,000 at the end of fiscal year 2024.