Anixa Biosciences Inc

Previous wording

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

Current wording

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

Previous wording

During the three months ended July 31, 2025, research and development expenses related to the development of our cancer vaccines and CAR-T therapeutics consisted of approximately $615,000 and $440,000, respectively. During the three months ended July 31, 2024 research and development expenses related to the development of our cancer vaccines and CAR-T therapeutics consisted of approximately $1,259,000 and $666,000, respectively.

Current wording

During the three months ended January 31, 2026, research and development expenses related to the development of our cancer vaccines and CAR-T therapeutics consisted of approximately $673,000 and $429,000, respectively. 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.

Previous wording

Research and development expenses decreased by approximately $870,000 to approximately $1,055,000 in the three months ended July 31, 2025, from approximately $1,925,000 in the three months ended July 31, 2024. The decrease in research and development expenses was primarily due to a decrease in outside research and development expenses related to our breast cancer vaccine of approximately $631,000, a decrease in outside research and development expenses related to our ovarian cancer CAR-T therapeutic of approximately $170,000, a decrease in employee stock-based compensation expense of approximately $106,000, and a decrease in clinical consulting services of approximately $52,000, offset by an increase in employee compensation and related costs, other than stock-based compensation expense, of approximately $96,000.

Current wording

Research and development expenses decreased by approximately $450,000 to approximately $1,102,000 in the three months ended January 31, 2026, from approximately $1,552,000 in the three months ended January 31, 2025. The decrease in research and development expenses was primarily due to a decrease in research and development expenses related to our breast cancer vaccine program as a result of fluctuations in the timing of certain materials manufacturing activities of approximately $189,000, a decrease in research and development expenses related to our CAR-T development program as a result of fluctuations in the timing of clinical trial patient enrollment of approximately $134,000, a decrease in employee compensation and related costs, other than stock-based compensation expense, of approximately $84,000, and a decrease in employee stock-based compensation expense of approximately $61,000.

Previous wording

General and administrative expenses decreased by approximately $286,000 to approximately $1,381,000 in the three months ended July 31, 2025, from approximately $1,667,000 in the three months ended July 31, 2024. The decrease in general and administrative expenses was primarily due to a decrease in director stock-based compensation of approximately $98,000, a decrease in investor and public relations expense of approximately $94,000, a decrease in employee compensation and related costs, other than stock-based compensation expense, of approximately $77,000 and a decrease in employee stock-based compensation of approximately $61,000.

Current wording

General and administrative expenses decreased by approximately $220,000 to approximately $1,614,000 in the three months ended January 31, 2026, from approximately $1,834,000 in the three months ended January 31, 2025. The decrease in general and administrative expenses was primarily due to a decrease in employee stock-based compensation expense of approximately $133,000, a decrease in director stock-based compensation of approximately $68,000, a decrease in patent prosecution costs of approximately $32,000, a decrease in director compensation, other than stock-based compensation expense, of approximately $29,000, and a decrease in employee compensation and related costs, other than stock-based compensation expense, of approximately $20,000, offset by an increase in investor and public relations expense of approximately $76,000.

Previous wording

Interest income decreased by approximately $121,000 to approximately $156,000 in the three months ended July 31, 2025, from approximately $277,000 in the three months ended July 31, 2024, primarily due to a decrease in the amount of short-term investments held and a decrease in interest rates.

Current wording

Interest income decreased by approximately $42,000 to approximately $131,000 in the three months ended January 31, 2026, from approximately $173,000 in the three months ended January 31, 2025, primarily due to a decrease in the amount of short-term investments held and a decrease in interest rates.

Previous wording

The net loss attributable to noncontrolling interest, representing Wistar’s ownership interest in Certainty’s net loss, decreased by approximately $16,000 to approximately $22,000 in the three months ended July 31, 2025 from approximately $38,000 in the three months ended July 31, 2024, 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, decreased by approximately $9,000 to approximately $20,000 in the three months ended January 31, 2026 from approximately $29,000 in the three months ended January 31, 2025, as Certainty’s net loss decreased.

Previous wording

Based on currently available information as of September 10, 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 $16,029,000 of cash, cash equivalents and short-term investments at July 31, 2025 compared to approximately $19,924,000 at October 31, 2024 which is a reduction of approximately $3,895,000 for the nine months ended July 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 nine months ended July 31, 2025, we raised approximately $1,924,000, net of expenses, through an at-the-market equity offering of 611,686 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 July 31, 2025, we may sell approximately $95 million of common stock.

Current wording

Based on currently available information as of March 9, 2026, 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 $14,202,000 of cash, cash equivalents and short-term investments at January 31, 2026 compared to approximately $15,174,000 at October 31, 2025 which is a reduction of approximately $972,000 for the three months ended January 31, 2026. 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, 2026, we raised approximately $1,625,000, net of expenses, through an at-the-market equity offering of 429,328 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 January 31, 2026, we may sell approximately $98 million of common stock.

Previous wording

During the nine months ended July 31, 2025, cash used in operating activities was approximately $5,918,000. Cash provided by investing activities was approximately $4,212,000, resulting from the maturities of short-term investments of approximately $40,912,000, offset by purchases of short-term investments of approximately $36,700,000. Cash provided by financing activities was approximately $1,930,000, resulting from the sale of 611,686 shares of common stock in an at-the-market equity offering of approximately $1,924,000, net of expenses, proceeds from the sale of common stock pursuant to an employee stock purchase plan of approximately $4,000 and proceeds from stock option exercises of approximately $2,000. As a result, our cash, cash equivalents, and short-term investments at July 31, 2025 decreased approximately $3,895,000 to approximately $16,029,000 from approximately $19,924,000 at the end of fiscal year 2024.

Current wording

During the three months ended January 31, 2026, cash used in operating activities was approximately $2,610,000. Cash provided by investing activities was approximately $1,228,000, resulting from the maturities of short-term investments of approximately $13,760,000, offset by purchases of short-term investments of approximately $12,532,000. Cash provided by financing activities was approximately $1,685,000, resulting from the sale of 429,328 shares of common stock in an at-the-market equity offering of approximately $1,625,000, net of expenses, and proceeds from stock option exercises of approximately $60,000. As a result, our cash, cash equivalents, and short-term investments at January 31, 2026 decreased approximately $972,000 to approximately $14,202,000 from approximately $15,174,000 at October 31, 2025.

Previous wording

The compensation cost for service-based stock options granted to employees, directors and consultants is measured at the grant date, based on the fair value of the award using the Black-Scholes pricing model, and is recognized as an expense on a straight-line basis over the requisite service period (the vesting period of the stock option) which is one to four years. For employee options vesting if the trading price of the Company’s common stock exceeds certain price targets, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period.

Current wording

The compensation cost for service-based stock options granted to employees, directors and consultants is measured at the grant date, based on the fair value of the award using the Black-Scholes pricing model, and is recognized as an expense on a straight-line basis over the requisite service period (the vesting period of the stock option) which is one to four years. For employee options vesting if the trading price of the Company’s common stock exceeds certain price targets, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period. For stock-based awards that vest upon the achievement of a performance metric, the Company recognizes the estimated fair value of the award when achievement becomes probable.

Previous wording

For stock awards granted to employees and directors that vest at date of grant we recognize expense based on the grant date market price of the underlying common stock. For restricted stock awards vesting upon achievement of a price target of our common stock, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest).

Current wording

For restricted stock awards granted to employees and directors that vest at date of grant, we recognize expense based on the grant date market price of the underlying common stock. For restricted stock awards vesting upon achievement of a price target of our common stock, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest).

Previous wording

The Black-Scholes pricing model and the Monte Carlo Simulation we use to estimate fair value requires valuation assumptions of expected term, expected volatility, risk-free interest rates and expected dividend yield. The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. For employees we use the simplified method, which is a weighted average of the vesting term and contractual term, to determine expected term. The simplified method was adopted since we do not believe that historical experience is representative of future performance because of the impact of the changes in our operations and the change in terms from historical options. For consultants we use the contract term for expected term. Under the Black-Scholes pricing model, we estimated the expected volatility of our shares of common stock based upon the historical volatility of our share price over a period of time equal to the expected term of the grants. We estimated the risk-free interest rate based on the implied yield available on the applicable grant date of a U.S. Treasury note with a term equal to the expected term of the underlying grants. We made the dividend yield assumption based on our history of not paying dividends and our expectation not to pay dividends in the future.

Current wording

The Black-Scholes pricing model and the Monte Carlo Simulation we use to estimate fair value requires valuation assumptions of expected term, expected volatility, risk-free interest rates and expected dividend yield. The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. For employees, we use the simplified method, which is a weighted average of the vesting term and contractual term, to determine expected term. The simplified method was adopted since we do not believe that we have sufficient historical exercise data on which to base our own estimate. For consultants, we use the contract term for expected term. Under the Black-Scholes pricing model, we estimated the expected volatility of our shares of common stock based upon the historical volatility of our share price over a period of time equal to the expected term of the grants. We estimated the risk-free interest rate based on the implied yield available on the applicable grant date of a U.S. Treasury note with a term equal to the expected term of the underlying grants. We made the dividend yield assumption based on our history of not paying dividends and our expectation not to pay dividends in the future.