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 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.

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 three months ended July 31, 2026 and 2025, the Company had net losses of $426,000 and $466,000, respectively. As of July 31, 2026, the Company had an accumulated deficit of approximately $81.5 million, working capital of $563,000 and cash of $4.4 million. For the three months ended July 31, 2026, the Company used cash flow in operations of approximately $492,000. Despite our 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 September 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

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%.

Current wording

Research and development expense for the three months ended July 31, 2026 and 2025 were $2.3 million and $2.1 million, respectively, an increase of approximately $262,000 or 12.6%. The increase was primarily attributable to higher share-based compensation expense related to Corellia, our wholly owned subsidiary focused on target discovery.

Previous 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.

Current wording

Sales and marketing expenses were $3.1 million for the three months ended July 31, 2026, compared to $1.9 million for the same period in 2025, an increase of $1.2 million or 66.6%. The increase was 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

General and administrative expenses were $3.0 million for the three months ended January 31, 2026, compared to $2.4 million for the same period in 2025, an increase of $577,000, or 24.1%. For the nine months ended January 31, 2026, general and administrative expenses were $8.5 million compared to $6.8 million for the same period in 2025 , an increase of $1.7 million, or 25.0%. General and administrative expenses primarily consist of compensation, insurance, professional fees, IT infrastructure, and depreciation and amortization. The increases for both periods were primarily attributable to higher compensation expenses associated with executive leadership changes and increased IT infrastructure costs supporting the Company’s investment in its data business.

Current wording

General and administrative expenses were $2.7 million for the three months ended July 31, 2026, compared to $2.6 million for the same period in 2025, an increase of $103,000, or 4.0%. General and administrative expenses primarily consist of compensation, insurance, professional fees, IT infrastructure, and depreciation and amortization. The increase was primarily attributable to higher compensation expenses associated with executive leadership changes made in the second quarter of fiscal 2026 offset by a decrease in IT infrastructure costs.

Previous 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.

Current wording

For the three months ended July 31, 2026, net cash used in operating activities was $492,000. The use of cash was primarily driven by the net loss for the quarter. For the three months ended July 31, 2025, net cash provided by operating activities was $600,000. The cash provided by operating activities in the prior year period was supported by receivables conversion and normal working capital activity, partially offset by a quarterly net loss.

Previous 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.

Current wording

Net cash used in investing activities for the three months ended July 31, 2026 and 2025 was approximately $55,000 and $46,000. Cash used in investing activities was for the purchases of lab and computer equipment.

Previous 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.

Current wording

Net cash provided by financing activities was $33,000 for the three months ended July 31, 2026 resulting from proceeds received for stock option exercises, partially offset by financing lease payments. Net cash used in financing activities was $14,000 for the three months ended July 31, 2025, resulting from financing lease payments.

Previous 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.

Current wording

There have been no changes to our critical accounting policies during the three months ended July 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 2026 Annual Report.