CHAMPIONS ONCOLOGY, INC.

Previous wording

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. In the past, we have met these cash requirements through our cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities, and sales of products and services. For the six months ended October 31, 2025 and 2024, the Company had a net loss of $230,000 and net income of $2.0 million, respectively. As of October 31, 2025, the Company had an accumulated deficit of approximately $80.1 million, negative working capital of $809,000 and cash of $8.5 million. For the six months ended October 31, 2025, the Company used cash flow in operations of approximately $1.1 million. Despite our negative working capital at this date and cash used in operations for the period, we believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least December 2026. Should the Company be required to raise additional capital, there can be no assurance that management would be successful in raising such capital on terms acceptable to us, if at all.

Current wording

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. In the past, we have met these cash requirements through our cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities, and sales of products and services. For the nine months ended January 31, 2026 and 2025, the Company had a net loss of $508,000 and net income of $6.5 million, respectively. As of January 31, 2026, the Company had an accumulated deficit of approximately $80.4 million, negative working capital of $492,000 and cash of $7.1 million. For the nine months ended January 31, 2026, the Company used cash flow in operations of approximately $2.5 million. Despite our negative working capital at this date and cash used in operations for the period, we believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least March 2027. Should the Company be required to raise additional capital, there can be no assurance that management would be successful in raising such capital on terms acceptable to us, if at all.

Previous wording

Oncology revenue, primarily derived from research services, totaled $15.0 million for the three months ended October 31, 2025, compared to $13.5 million for the same period in 2024, an increase of $1.5 million or 11.5%. Oncology revenue, primarily derived from research services, totaled $29.0 million for the six months ended October 31, 2025, compared to $27.6 million for the same period in 2024, an increase of $1.5 million or 5.4%.

Current wording

Oncology revenue, primarily derived from research services, totaled $16.6 million for the three months ended January 31, 2026, compared to $17.0 million for the same period in 2025, a decrease of $480,000 or 2.8%. Oncology revenue, primarily derived from research services, totaled $45.6 million for the nine months ended January 31, 2026, compared to $44.6 million for the same period in 2025, an increase of $1.0 million or 2.2%.

Previous wording

•Other TOS Revenue includes additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry and SaaS provided via Lumin.

Current wording

•Other TOS Revenue includes additional services provided to the Company's pharmaceutical and biotechnology customers, including flow cytometry and SaaS offerings provided through Lumin which are not part of the Company's current strategic focus.

Previous wording

•Our flow cytometry services revenue decreased approximately $555,000 for the three months ended October 31, 2025, as compared to 2024, and $1.1 million for the six months ended October 31, 2025, as compared to 2024, due to a decline in clinical bookings and a de-emphasis on this business unit. The decrease in Other TOS Revenue was also a result of a decrease in our SaaS revenues for both the three and six month periods ending October 31, 2025 as compared with 2024.

Current wording

•Other TOS revenue decreased for both the three- and nine-month periods ended January 31, 2026 compared to the same periods in 2025. Flow cytometry services revenue decreased approximately $0.5 million for the three months ended January 31, 2026 and $1.6 million for the nine months ended January 31, 2026 compared to the same periods in 2025, primarily due to lower clinical bookings and a strategic de-emphasis on this part of our business. The decrease in Other TOS revenue also reflects lower SaaS revenue during the current periods.

Previous wording

For the three months ended October 31, 2025, cost of oncology revenue decreased $166,000 or 2.2% to $7.3 million, as compared to $7.4 million in the prior year period. The decrease was primarily driven by lower outsourced lab service costs. For the six months ended October 31, 2025, cost of oncology revenue increased $757,000 or 5.2% to $15.3 million, as compared to $14.5 million in the prior year period. The increase resulted primarily from higher mice costs resulting from higher revenue and outsourced lab services, including radiolabeling work. Management anticipates that as this radiolabeling work transitions into Champions’ labs over the coming quarters it will result in an improvement in the overall cost structure which will reduce cost of oncology revenue.

Current wording

Cost of oncology revenue increased $2.2 million or 33.5% to $8.8 million for the three months ended January 31, 2026, as compared to $6.6 million in the prior year period. For the nine months ended January 31, 2026, cost of oncology revenue increased $3.0 million or 14.1% to $24.1 million, as compared to $21.1 million in the prior year period. The increases for both periods were primarily attributable to outsourced laboratory services, including more than $2.0 million of radiolabeling work performed by third-party laboratories during the current quarter. Management expects that as this radiolabeling work transitions into Champions’ laboratories over the coming quarters, the Company will benefit from a more favorable cost structure.

Previous wording

Research and development expense for the three months ended October 31, 2025 and 2024 were $2.6 million and $1.7 million, respectively, an increase of approximately $927,000 or 54.9%. Research and development expense for the six months ended October 31, 2025 and 2024 were $4.7 million and $3.1 million, respectively, an increase of approximately $1.6 million or 49.5%.

Current wording

Research and development expense for the three months ended January 31, 2026 and 2025 were $2.3 million and $1.7 million, respectively, an increase of approximately $552,000 or 32.1%. Research and development expense for the nine months ended January 31, 2026 and 2025 were $7.0 million and $4.9 million, respectively, an increase of approximately $2.1 million or 43.3%.

Previous wording

Research and development expense increased for both the three- and six-month periods ended October 31, 2025 compared to the prior-year periods. The increases were primarily driven by higher outsourced laboratory service costs, increased compensation expense, and greater use of laboratory supplies as the Company expanded its investment in the development of its data licensing platform and in Corellia, the Company’s wholly owned subsidiary focused on target discovery. Management did not identify any other individually material factors contributing to the period-over-period changes.

Current wording

Research and development expense increased for both the three- and nine-month periods ended January 31, 2026 compared to the prior-year periods. The increases were primarily driven by higher outsourced laboratory service costs, including sequencing work performed by third-party providers to support the development of the Company’s data licensing platform, as well as increased compensation expenses associated with these initiatives.

Previous wording

Sales and marketing expenses were $2.0 million for the three months ended October 31, 2025, compared to $1.8 million for the same period in 2024, an increase of $247,000 or 14.1%. For the six months ended October 31, 2025 sales and marketing expenses were $3.9 million, compared to $3.4 million for the prior year period, an increase of $423,000 or 12.3%. The increases for both the three and six month periods were primarily driven by higher compensation expense associated with expanding the commercial organization to support the growth of the Company’s data licensing business.

Current wording

Sales and marketing expenses were $2.7 million for the three months ended January 31, 2026, compared to $1.8 million for the same period in 2025, an increase of $860,000 or 47.6%. For the nine months ended January 31, 2026 sales and marketing expenses were $6.5 million, compared to $5.2 million for the prior year period, an increase of $1.3 million or 24.5%. The increases for both periods were primarily driven by higher compensation expense associated with the expansion of the Company’s commercial organization, including personnel supporting both the Company’s core research services business and its data licensing initiatives. Sales and marketing expenses are expected to remain elevated as the Company continues to invest in commercial capabilities to support these growth initiatives.

Previous wording

For the six months ended October 31, 2025, net cash used in operating activities was $1.1 million. The use of cash was primarily driven by a decrease in deferred revenue, which reflects lower upfront billings. 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 in the ordinary course of business.

Current wording

For the nine months ended January 31, 2026, net cash used in operating activities was $2.5 million. The use of cash was primarily driven by a decrease in deferred revenue, which reflects lower upfront billings. For the nine months ended January 31, 2025, net cash provided by operating activities was $518,000. The cash provided by operating activities was primarily due to income from operations offset by changes in our working capital accounts in the ordinary course of business.

Previous wording

Net cash used in investing activities for the six months ended October 31, 2025 and 2024 was approximately $288,000 and $94,000. Cash used in investing activities was for the purchases of lab and computer equipment.

Current wording

Net cash used in investing activities for the nine months ended January 31, 2026 and 2025 was approximately $302,000 and $136,000. Cash used in investing activities was for the purchases of lab and computer equipment.

Previous wording

Net cash provided by financing activities was $154,000 for the six months ended October 31, 2025 resulting from proceeds received for stock options exercises, partially offset by financing lease payments. Net cash provided by financing activities was $202,000 for the six months ended October 31, 2024, resulting from proceeds received for stock options exercises, partially offset by financing lease payments.

Current wording

Net cash provided by financing activities was $118,000 for the nine months ended January 31, 2026 resulting from proceeds received for stock option exercises, partially offset by financing lease payments. Net cash provided by financing activities was $202,000 for the nine months ended January 31, 2025, resulting from proceeds received for stock option exercises, partially offset by financing lease payments.

Previous wording

There have been no changes to our critical accounting policies during the six months ended October 31, 2025. Critical accounting policies and the significant estimates made in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies” in “Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” as well as in our Condensed Consolidated Financial Statements and the footnotes thereto, each included in our 2025 Annual Report.

Current wording

There have been no changes to our critical accounting policies during the nine months ended January 31, 2026. Critical accounting policies and the significant estimates made in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies” in “Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” as well as in our Condensed Consolidated Financial Statements and the footnotes thereto, each included in our 2025 Annual Report.