Financial Data and Key Metrics Changes - The company reported total revenue of $57 million for fiscal year 2025, a 14% increase from $50.2 million in the previous year [12] - Research services revenue was $52.3 million, up 4% year over year, while data revenue contributed $4.7 million, reflecting initial data licensing deals [12] - Adjusted EBITDA for the year was $7.1 million, a significant improvement from an adjusted EBITDA loss of $3.9 million in fiscal year 2024 [16] Business Line Data and Key Metrics Changes - The core services business remains foundational, with targeted investments leading to improved quality, efficiency, and scalability [5] - The launch of the radiopharmaceutical services platform was a major milestone, expanding the company's offerings and capabilities [6][7] - Operating expenses rose by 7% in Q4 due to increased sales and marketing efforts, while R&D and G&A expenses saw modest declines [14] Market Data and Key Metrics Changes - The biotech and pharma R&D budgets remain constrained, but there are early signs of recovery, including a decrease in customer cancellations [6] - The company is focusing on strengthening relationships with big pharma, which are generally more resilient through market cycles [6] Company Strategy and Development Direction - The company aims to create the world's most comprehensive, clinically relevant tumor dataset, bridging the gap between legacy datasets and next-generation AIML-driven discovery pipelines [7] - The transition in leadership to Rob Braynen is expected to enhance the company's strategic direction, leveraging his extensive experience in life sciences and data-driven innovation [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about sustaining growth despite a tight marketplace, emphasizing the need for efficiency and better tools for marketing and sales [22] - The company anticipates a sequential increase in revenue and adjusted EBITDA profit in the upcoming quarters, supported by structural improvements made in fiscal year 2025 [17] Other Important Information - The company ended the year with $9.8 million in cash, up from $2.6 million a year ago, and remains debt-free [16] - The company plans to maintain cash neutrality in the next quarter, with projected cash growth in the second half of the year [17] Q&A Session Summary Question: Current environment and expectations for fiscal '26 - Management acknowledged that while the current environment is still tight, there are glimpses of improvement and they feel confident in sustaining growth [20][22] Question: Data licensing pipeline and expectations - Management indicated that the data licensing business is still in its early stages, with a growing pipeline and expectations for revenue to remain stable before increasing [24] Question: Radiopharmaceutical service agreements - Management described the new radiopharmaceutical services as having higher price tags and margins, with expectations of 50-60% margins due to high demand in the field [26] Question: Capital allocation and investments for growth - Management plans to focus investments on creating new datasets and enhancing data capabilities, with no significant capital expenditures expected [30][31] Question: Updates on Corellia AI programs - Management expressed excitement about the Corellia portfolio and ongoing efforts to raise funds for drug development, highlighting the potential of their drug targets [34]

[PART I](index=4&type=section&id=PART%20I) [Business](index=4&type=section&id=Item%201.%20Business) Champions Oncology is a research organization leveraging proprietary PDX models for drug discovery, offering research services, data licensing, and developing novel therapeutics - The company's business is centered around a proprietary bank of approximately **1,500 Patient Derived Xenograft (PDX) models**, which are used in its pharmacology, biomarker, and data platforms[17](index=17&type=chunk) - The company's ecosystem consists of three primary business lines: research services for biopharma, sales of PDX model data and SaaS tools, and the discovery of novel oncology therapeutics[19](index=19&type=chunk) Fiscal Year 2025 Revenue | Metric | Value | Year-over-Year Change | | :--- | :--- | :--- | | Total Revenue | $56.9 million | ~14% increase | - The company's growth strategy focuses on expanding its TumorBank, adding new experimental technologies, and leveraging its computational power and unique Datacenter for drug discovery[33](index=33&type=chunk)[34](index=34&type=chunk) - As of July 15, 2025, the company had **213 full-time employees**, with **159** engaged in research and development and laboratory operations[42](index=42&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including historical losses, capital needs, intense competition, intellectual property vulnerabilities, concentrated ownership, and geopolitical instability - The company has a history of losses, with an accumulated deficit of approximately **$79.9 million** as of April 30, 2025, despite achieving a net income of **$4.7 million** in FY2025, sustained profitability is not guaranteed[49](index=49&type=chunk) - The company's core TumorGraft Technology Platform is proprietary but not patented, creating a risk that competitors could develop similar procedures[64](index=64&type=chunk) - The company faces intense competition in research services, SaaS, and drug development from larger entities with substantially greater capital resources and experience[35](index=35&type=chunk)[37](index=37&type=chunk)[62](index=62&type=chunk) - A significant concentration of ownership exists, with officers, directors, and three major stockholders controlling approximately **72%** of the outstanding common stock, potentially limiting other shareholders' influence[87](index=87&type=chunk) - Geopolitical risks are present as the company's CEO resides in Israel and several customers are based there, making leadership continuity and business operations susceptible to regional instability[96](index=96&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[100](index=100&type=chunk) [Cybersecurity](index=16&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cybersecurity program with board oversight, reporting no material threats or incidents to date - The company has implemented a cybersecurity program involving ongoing monitoring, employee training, and consultation with external experts to manage risks[101](index=101&type=chunk) - Oversight is provided by the Board of Directors' Audit Committee, with the senior leadership team responsible for managing and reporting on cybersecurity threats[102](index=102&type=chunk) - As of the report date, no known cybersecurity threats have materially affected the company's business, operations, or financial condition[103](index=103&type=chunk) [Properties](index=16&type=section&id=Item%202.%20Properties) The company leases all its office and laboratory facilities across key locations in New Jersey, Maryland, and Italy Leased Facilities and Rent Expense (FY2025) | Location | Purpose | Lease Expiration | FY2025 Rent Expense | | :--- | :--- | :--- | :--- | | Hackensack, NJ | Corporate HQ | Nov 2026 | $75,000 | | Rockville, MD | Lab & Office | Feb 2029 | $1.7 million | | Milan, Italy | Lab & Office | Oct 2028 | $50,000 | - Total rent expense was consistent at **$1.8 million** for both fiscal years 2025 and 2024[104](index=104&type=chunk) [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) Management is unaware of any pending or contemplated litigation against the company or its officers and directors - To the knowledge of management, there is no pending or contemplated litigation against the company[107](index=107&type=chunk) [Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[108](index=108&type=chunk) [PART II](index=17&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, experiencing volatility, with no dividends paid and a limited share repurchase program - The company's common stock (**CSBR**) is listed on the Nasdaq Capital Market[110](index=110&type=chunk) Quarterly Stock Price Range (Fiscal Year 2025) | Quarter | High | Low | | :--- | :--- | :--- | | First | $5.44 | $4.50 | | Second | $5.45 | $3.60 | | Third | $11.99 | $3.79 | | Fourth | $11.98 | $7.01 | - The company has a share repurchase program with approximately **$4.3 million** remaining authorized as of April 30, 2025, with no shares repurchased in fiscal year 2025[115](index=115&type=chunk)[116](index=116&type=chunk) - No dividends have been declared or paid, and none are anticipated in the foreseeable future[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company achieved a financial turnaround in FY2025 with net income and strong revenue growth, driven by improved operational efficiency and positive cash flow from operations [Results of Operations](index=19&type=section&id=Results%20of%20Operations) FY2025 saw revenue growth and reduced operating expenses, shifting from an operating loss to a $4.6 million operating income Summary of Operations (in thousands) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Oncology Revenue | $56,944 | $50,155 | 13.5% | | Cost of Oncology Revenue | $28,389 | $29,401 | (3.4)% | | Research and Development | $6,825 | $9,544 | (28.5)% | | Sales and Marketing | $7,545 | $7,064 | 6.8% | | General and Administrative | $9,339 | $11,067 | (15.6)% | | **Income (Loss) from Operations** | **$4,553** | **($7,356)** | **(161.9)%** | Revenue Breakdown (in thousands) | Revenue Source | 2025 | 2024 | | :--- | :--- | :--- | | Pharmacology services | $48,585 | $47,035 | | TOS data license revenue | $4,676 | $0 | | Other TOS revenue | $3,683 | $3,102 | | Personalized oncology services | $0 | $18 | | **Total oncology revenue** | **$56,944** | **$50,155** | - The decrease in R&D expense was primarily due to a reduction in investment in developmental programs, including its subsidiary Corellia[136](index=136&type=chunk) - The decrease in G&A expense was mainly due to lower compensation expenses and professional fees[138](index=138&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) The company significantly improved its cash position and operating cash flow in FY2025, expecting sufficient liquidity through August 2026 Key Liquidity Metrics (as of April 30, 2025) | Metric | Value | | :--- | :--- | | Cash | $9.8 million | | Accumulated Deficit | ($79.9 million) | | Working Capital | ($1.5 million) | Cash Flow Summary (in thousands) | Cash Flow Source | FY 2025 | FY 2024 | | :--- | :--- | :--- | | Operating Activities | $7,386 | ($6,137) | | Investing Activities | ($389) | ($836) | | Financing Activities | $170 | ($527) | - Management asserts that current cash and expected cash flows from operations are adequate to fund the company through at least August 2026[143](index=143&type=chunk) [Critical Accounting Policies](index=21&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies involve significant judgments in revenue recognition for services and data licenses, and stock-based compensation valuation - Revenue from service contracts is primarily recognized over time, while revenue from data licenses is recognized at a point in time upon delivery[241](index=241&type=chunk)[242](index=242&type=chunk) - The company uses the Black-Scholes option pricing model to determine the fair value of stock-based awards, requiring management judgment for key assumptions[154](index=154&type=chunk)[227](index=227&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the company - Not applicable[160](index=160&type=chunk) [Financial Statements and Supplementary Data](index=25&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, including the independent auditor's report and notes - The independent auditor, EisnerAmper LLP, issued an opinion that the financial statements present fairly, in all material respects, the consolidated financial position of the company[185](index=185&type=chunk) - A critical audit matter was identified concerning revenue recognition for a new, first-time data license contract for **$4.5 million**, due to the complexity of the agreement and the application of accounting guidance[190](index=190&type=chunk)[191](index=191&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2025 | April 30, 2024 | | :--- | :--- | :--- | | Cash | $9,785 | $2,618 | | Total Current Assets | $22,369 | $13,639 | | Total Assets | $32,344 | $26,132 | | Total Current Liabilities | $23,853 | $21,541 | | Total Liabilities | $28,572 | $28,035 | | Total Stockholders' Equity (Deficiency) | $3,772 | ($1,903) | Consolidated Statement of Operations Highlights (in thousands) | Account | Year Ended April 30, 2025 | Year Ended April 30, 2024 | | :--- | :--- | :--- | | Oncology Revenue | $56,944 | $50,155 | | Total Costs and Operating Expenses | $52,391 | $57,511 | | Income (Loss) from Operations | $4,553 | ($7,356) | | **Net Income (Loss)** | **$4,701** | **($7,276)** | | **Diluted EPS** | **$0.33** | **($0.54)** | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=25&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[162](index=162&type=chunk) [Controls and Procedures](index=25&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of April 30, 2025 - Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2025[164](index=164&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of April 30, 2025[167](index=167&type=chunk) - No material changes were made to internal controls over financial reporting during the quarter ended April 30, 2025[168](index=168&type=chunk) [Other Information](index=26&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[169](index=169&type=chunk) [PART III](index=26&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=26&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[172](index=172&type=chunk) [Executive Compensation](index=27&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[173](index=173&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=27&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[174](index=174&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=27&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[175](index=175&type=chunk) [Principal Accounting Fees and Services](index=27&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item is incorporated by reference from the 2025 Proxy Statement - Information is incorporated by reference from the forthcoming 2025 Proxy Statement[176](index=176&type=chunk) [PART IV](index=27&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=27&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Annual Report, including financial statements and required exhibits - This item includes the consolidated financial statements and a list of all exhibits filed with the report[178](index=178&type=chunk)[180](index=180&type=chunk)

[Overall Financial Performance](index=1&type=section&id=Overall%20Financial%20Performance) Champions Oncology achieved record annual revenue and significant profitability in fiscal year 2025, driven by strategic growth [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Champions Oncology achieved record annual revenue of **$57 million** and **$4.6 million** net income in fiscal 2025, driven by a new data business and efficiency Fiscal Year 2025 Key Financial Highlights | Metric | Value (in millions) | Growth (YoY) | | :--- | :--- | :--- | | Record Annual Revenue | $57 | 14% | | Net Income | $4.6 | N/A (Turnaround from loss) | | Adjusted EBITDA Income | $7.1 | N/A (Turnaround from loss) | | Data License Revenue | $4.7 | N/A (New business) | | Year-end Cash Balance | $9.8 | +274% | - Management commentary emphasized a successful turnaround in FY2025, driven by a return to **growth**, the launch of a **high-margin data business**, and improved **operational efficiency**[2](index=2&type=chunk) - The company is optimistic about fiscal 2026, citing a **strong pipeline** for continued revenue growth and further monetization of its data offerings[2](index=2&type=chunk) [Fourth Quarter Fiscal 2025 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Results) Q4 FY2025 saw a **12% revenue decline** to **$12.4 million**, resulting in operating and EBITDA losses, despite strong operating cash flow Q4 FY2025 vs. Q4 FY2024 Financial Performance (in millions) | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $12.4 | $14.0 | -12% | | Gross Margin | 41% | 48% | -7 p.p. | | Loss from Operations | ($2.0) | ($0.2) | Increased Loss | | Adjusted EBITDA | ($1.2) | $0.9 | Decline | | Operating Cash Flow | $6.4 | N/A | Positive Flow | - Sales and marketing expenses increased by **30%** to **$2.3 million**, driven by higher compensation for the expanding data business development team and increased conference attendance[7](index=7&type=chunk) - General and administrative expenses decreased by **9%** to **$2.5 million**, mainly due to lower overall compensation and reduced recruiting fees[7](index=7&type=chunk) - The company ended the quarter with a cash position of **$9.8 million** and no debt[8](index=8&type=chunk) [Full Fiscal Year 2025 Financial Results](index=2&type=section&id=Full%20Fiscal%20Year%202025%20Financial%20Results) FY2025 achieved record revenue of **$56.9 million** (+14%), driven by research services and new data licenses, leading to a turnaround to **$4.6 million** operating income FY2025 vs. FY2024 Financial Performance (in millions) | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $56.9 | $50.2 | +14% | | Gross Margin | 50% | 41% | +9 p.p. | | Income (Loss) from Operations | $4.6 | ($7.4) | Turnaround to Profit | | Adjusted EBITDA | $7.1 | ($3.9) | Turnaround to Profit | - Revenue growth was driven by a **4% increase** in the research services business and **$4.7 million** from the new data license revenue stream[9](index=9&type=chunk) - Research and development expenses declined by **28%** to **$6.8 million** due to reduced investment in non-essential services[13](index=13&type=chunk) - Gross margin improved significantly to **50%** from **41%**, attributed to higher revenue, operational efficiencies, and the contribution from high-margin data revenue[12](index=12&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) This section provides a comprehensive overview of the company's financial position, operational results, and cash flows [Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) FY2025 operations show a turnaround to **$4.7 million** net income from a **$7.3 million** loss, driven by **14% revenue growth** and reduced expenses FY2025 vs. FY2024 Statement of Operations (in thousands) | Line Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Oncology Revenue | $56,944 | $50,155 | | Cost of Oncology Revenue | $28,389 | $29,401 | | Research and Development | $6,825 | $9,544 | | Sales and Marketing | $7,545 | $7,064 | | General and Administrative | $9,339 | $11,067 | | **Income (Loss) from Operations** | **$4,553** | **($7,356)** | | **Net Income (Loss)** | **$4,701** | **($7,276)** | | **EPS, diluted** | **$0.33** | **($0.54)** | [Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of) As of April 30, 2025, the balance sheet strengthened with total assets at **$32.3 million**, cash at **$9.8 million**, and stockholders' equity turning positive Balance Sheet Highlights as of April 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Cash | $9,785 | $2,618 | | Total Current Assets | $22,369 | $13,639 | | Total Assets | $32,344 | $25,962 | | Deferred Revenue | $15,443 | $12,094 | | Total Liabilities | $28,572 | $27,835 | | Stockholders' Equity (Deficit) | $3,772 | ($1,903) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) FY2025 saw **$7.4 million** cash generated from operations, a significant improvement, increasing the cash balance to **$9.8 million** FY2025 vs. FY2024 Cash Flow Summary (in thousands) | Cash Flow Activity | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $7,386 | ($6,137) | | Net Cash used in Investing Activities | ($389) | ($836) | | Net Cash from (used in) Financing Activities | $170 | ($527) | | **Increase (Decrease) in Cash** | **$7,167** | **($7,500)** | | **Cash, End of Period** | **$9,785** | **$2,618** | [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) Non-GAAP measures show FY2025 Adjusted EBITDA at **$7.3 million** and Adjusted EPS at **$0.53**, reflecting core operational improvements Reconciliation of GAAP Net Income to Adjusted EBITDA (in thousands) | Line Item | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Income (Loss) - GAAP | $4,701 | ($7,276) | | Stock-based compensation | $654 | $1,118 | | Depreciation and amortization | $1,640 | $1,867 | | Loss on equipment disposal | $293 | $435 | | **Adjusted EBITDA - Non-GAAP** | **$7,288** | **($3,856)** | Reconciliation of GAAP EPS to Non-GAAP EPS (basic) | Line Item | FY2025 | FY2024 | | :--- | :--- | :--- | | EPS – GAAP, basic | $0.34 | ($0.54) | | Effect of stock-based compensation | $0.05 | $0.08 | | Effect of depreciation and amortization | $0.12 | $0.14 | | Effect of loss on equipment disposal | $0.02 | $0.03 | | **Adjusted EPS - basic, Non-GAAP** | **$0.53** | **($0.29)** | [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential details about the company's business, upcoming events, and important disclaimers [Company Overview](index=4&type=section&id=About%20Champions%20Oncology%2C%20Inc.) Champions Oncology is a global preclinical and clinical research services provider supporting biopharma oncology R&D with proprietary models and platforms - The company operates as a **global preclinical and clinical research services provider** for biopharma organizations[22](index=22&type=chunk) - Core assets include the largest bank of clinically relevant **patient-derived xenograft (PDX) models** and proprietary in vivo and ex vivo platforms[22](index=22&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information%3A) A conference call to discuss Q4 financial results is scheduled for July 23, 2025, with full details available in the upcoming Form 10-K - A conference call to discuss Q4 financial results is scheduled for **4:30 p.m. EST on July 23, 2025**[15](index=15&type=chunk) - Full financial details will be available in the Company's **Form 10-K** on or before July 29, 2025[16](index=16&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially from expectations - The report contains **forward-looking statements** involving inherent risks and uncertainties[23](index=23&type=chunk) - Actual results may differ materially from expectations; readers are directed to the **Form 10-K** for risk factors[23](index=23&type=chunk)

Group 1 - Champions Oncology (NASDAQ: CSBR) is a specialized platform providing preclinical research services focused on oncology [1] - The company is at a critical inflection point, evolving its business model by monetizing its unique data asset through licensing [1] Group 2 - The investment thesis suggests that identifying high-quality and/or severely mispriced investment ideas is essential for potential investors [1]

Revenue Performance - Oncology revenue for the three months ended January 31, 2025, was $17.0 million, a 41.8% increase from $12.0 million in the same period in 2024[99] - For the nine months ended January 31, 2025, oncology revenue reached $44.6 million, reflecting a growth of 23.3% from $36.2 million in the prior year[99] Cost Management - Total costs and operating expenses for the three months ended January 31, 2025, decreased by 14.1% to $12.5 million from $14.6 million in the prior year[98] - Research and development expenses for the three months ended January 31, 2025, were $1.7 million, a decrease of 21.4% from $2.2 million in the same period in 2024[106] - Cost of oncology revenue decreased by 15.7% to $6.6 million for the three months ended January 31, 2025, down from $7.8 million in the prior year[105] - General and administrative expenses decreased by $366,000, or 13.2%, for the three months ended January 31, 2025, compared to the same period in 2024[111] - General and administrative expenses for the nine months ended January 31, 2025, were $6.8 million, a decrease of $1.5 million, or 18.0%, from $8.3 million in 2024[111] - The decrease in general and administrative expenses was primarily due to reductions in compensation and employee recruitment expenses[111] Financial Performance - The company reported an income from operations of $4.5 million for the three months ended January 31, 2025, compared to a loss of $2.6 million in the prior year[98] - For the nine months ended January 31, 2025, net cash provided by operating activities was $518,000, a significant improvement from a net cash used of $4.3 million in the same period of 2024[112] - Net cash used in investing activities was $136,000 for the nine months ended January 31, 2025, down from $839,000 in the prior year[113] - Net cash provided by financing activities was $202,000 for the nine months ended January 31, 2025, compared to a net cash used of $490,000 in the same period of 2024[114] Liquidity and Capital Needs - Cash on hand as of January 31, 2025, was approximately $3.2 million, indicating liquidity challenges[96] - The company may need to raise additional equity or debt capital in the near term to fund operations[97] Debt and Obligations - The company had an accumulated deficit of approximately $78.1 million as of January 31, 2025[96] - The company has no off-balance sheet debt or similar obligations[117] - There are no undisclosed transactions or obligations with related parties affecting the reported results[117] - The company does not guarantee any third-party debt[117] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[118]

Financial Data and Key Metrics Changes - Champions Oncology reported record revenue of $17 million for Q3 2025, marking a significant increase compared to the previous year [4][14] - Adjusted EBITDA reached a record high of $5.2 million, a substantial improvement from an adjusted loss of $1.7 million in the prior year [15][21] - Income from operations was $4.5 million, compared to a loss of $2.6 million in the same quarter last year [15] - Total revenue for the year-to-date was $45 million, up 22% from $36 million in the first three quarters of 2024 [19] Business Line Data and Key Metrics Changes - Research service revenue was $12.5 million, up from $12 million in the same period last year, while data revenue contribution was $4.5 million [15] - Gross margin for the quarter improved to 61%, driven by high-margin data revenue, with research service margins increasing to 48% from 35% [17][20] Market Data and Key Metrics Changes - The company noted a cautious optimism regarding a rebound in the biotech sector, with customers beginning to expand their R&D budgets [5] - Despite improvements, the overall environment remains tight, leading to potential performance volatility [5] Company Strategy and Development Direction - The company aims to create the world's most comprehensive biological data set from clinically relevant tumor populations, enhancing its PDX bank and multiomic data [8][9] - Champions Oncology is exploring various licensing models for its data, including one-time fees and potential royalties, to maximize revenue opportunities [49][50] - The company is focused on expanding its data business while maintaining profitability and driving shareholder value [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for long-term growth despite current challenges in the biotech sector [12][36] - The company is actively engaging with potential customers to build its opportunity pipeline, although it remains premature to forecast the number of deals or their impact on revenue [10][11] Other Important Information - The company ended the quarter with $3.2 million in cash and no debt, with cash generated from operating activities amounting to $900,000 [21][22] - The successful closure of the inaugural data deal is seen as an initial validation of the company's strategic vision [13] Q&A Session Summary Question: Details on the licensing deal structure and pipeline opportunities - The licensing deal was for a portion of the data with a one-time fee, and the company is in discussions with multiple partners in the biotech and pharma industry [26][27] Question: Impact of tariffs and budget cuts on customer conversations - Management indicated that while tariffs may not have a direct impact, the overall environment remains tight, affecting the biotech sector [28][29] Question: Customer demand and early studies in the biotech sector - Management acknowledged that the challenging environment has affected customer demand, but they have focused on larger biopharma companies and operational efficiency [31][32] Question: Potential for a turnaround in customer demand - Management noted ongoing investment in pharma and biotech, particularly in oncology, suggesting some positive trends despite overall challenges [34][35] Question: Capital raising for the drug development subsidiary - The subsidiary is seeking capital through external funding, which will not affect the parent company's cash flow but will be an asset for Champions Oncology [39][44] Question: Future pricing models for data licensing - The company is exploring various licensing models, including fees and royalties, to cater to different customer needs [49][50] Question: Competition in the data licensing space - Management believes they have a unique approach by providing deep insights into fewer patients, differentiating themselves from competitors who offer broader but shallower data [65][66] Question: Use of AI in the legacy business - Currently, AI has not significantly impacted the core business, but management remains optimistic about future applications [68] Question: Upcoming cancer research meeting and accepted abstracts - Management expressed excitement about presenting at the upcoming meeting, highlighting their commitment to innovation and R&D [79] Question: Internal team for customer acquisition regarding PDX data - The company has a dedicated team for data strategy, working alongside the core business development team to communicate the value of their data [81][84]

Financial Performance - Total revenue for Q3 fiscal 2025 reached $17.0 million, a 42% increase from $12.0 million in Q3 fiscal 2024[6] - Gross profit for Q3 fiscal 2025 was $10.4 million, resulting in a gross margin of 61%[4] - Net income for Q3 fiscal 2025 was approximately $4.5 million, compared to a loss of $2.6 million in Q3 fiscal 2024[7] - Adjusted EBITDA for Q3 fiscal 2025 was $5.2 million, a significant improvement from an adjusted EBITDA loss of $1.7 million in Q3 fiscal 2024[7] - Adjusted EPS for Q3 fiscal 2025 was $0.38, compared to an adjusted EPS loss of $0.12 in Q3 fiscal 2024[26] - Net income for the nine months ended January 31, 2025, was $6,536 million, compared to a net loss of $7,167 million for the same period in 2024[29] - The company reported a basic net income per share of $0.48 for the nine months ended January 31, 2025, compared to a loss of $0.53 in the same period of 2024[27] Revenue Growth - Total oncology revenue for the nine months ended January 31, 2025, was $44.6 million, a 23.3% increase from $36.2 million in the same period last year[12] - Oncology revenue for the three months ended January 31, 2025, was $17,039 million, a 42% increase from $12,019 million in the same period of 2024[27] - The company signed its first data licensing deal worth up to $8.0 million, marking a key milestone in monetizing its proprietary data platform[4] Expenses and Cost Management - Research and development expenses for Q3 fiscal 2025 decreased by 21.4% to $1.7 million compared to $2.2 million in Q3 fiscal 2024[9] - Total costs and operating expenses for Q3 fiscal 2025 were $12.5 million, a decrease of 14.1% from $14.6 million in Q3 fiscal 2024[6] - Research and development expenses decreased to $4,862 million for the nine months ended January 31, 2025, from $7,494 million in the same period of 2024[27] Cash and Assets - The company ended the quarter with cash on hand of approximately $3.2 million and has no debt[11] - Cash and cash equivalents rose to $3,202 million as of January 31, 2025, compared to $2,618 million at the end of April 2024[28] - The company reported a net cash provided by operating activities of $946 million for the nine months ended January 31, 2025, compared to a net cash used of $4,321 million in the same period of 2024[29] - Total assets increased to $30,627 million as of January 31, 2025, up from $26,132 million on April 30, 2024[28] Liabilities and Shares - Total current liabilities decreased to $19,870 million as of January 31, 2025, from $21,541 million on April 30, 2024[28] - The weighted average common shares outstanding for basic shares was 13,620,686 for the nine months ended January 31, 2025, compared to 13,538,480 for the same period in 2024[27] - Operating lease right-of-use assets decreased to $5,370 million as of January 31, 2025, from $6,252 million on April 30, 2024[28]

Group 1 - The article discusses the potential for initiating a short position in CSBR within the next 72 hours, indicating a bearish outlook on the stock [1] - The analysis emphasizes the importance of conducting due diligence before making investment decisions, highlighting that the research is for informational purposes only [2][3] - The article notes that past performance is not indicative of future results, suggesting caution in interpreting historical data [3] Group 2 - The company involved in the analysis has no current stock or derivative positions in the mentioned companies, which may influence the objectivity of the analysis [1] - The research covers a wide range of financial markets, including investment securities and futures & options, indicating a comprehensive approach to market analysis [2] - The article mentions that opinions expressed may not reflect the views of the broader organization, suggesting a diversity of perspectives within the company [3]

Revenue Performance - Oncology services revenue for the three months ended October 31, 2024, was $13.5 million, an increase of 16.6% compared to $11.6 million for the same period in 2023[107] - For the six months ended October 31, 2024, oncology services revenue reached $27.6 million, reflecting a 14.2% increase from $24.1 million in 2023[108] Cost and Expenses - The cost of oncology services for the three months ended October 31, 2024, was $7.4 million, up 12.2% from $6.6 million in 2023[109] - Research and development expenses decreased by 32.8% to $1.7 million for the three months ended October 31, 2024, compared to $2.5 million in 2023[110] - General and administrative expenses for the three months ended October 31, 2024, were $1.9 million, a decrease of 27.3% from $2.6 million in 2023[112] Financial Position - The company reported a net income of approximately $2.0 million for the six months ended October 31, 2024, with cash provided by operations of approximately $28,000[104] - As of October 31, 2024, the company had an accumulated deficit of approximately $82.6 million and cash on hand of approximately $2.8 million[104] - Net cash provided by financing activities was $202,000 for the six months ended October 31, 2024, primarily from cash received from stock options exercises[115] - The company has no off-balance sheet debt or similar obligations, ensuring transparency in its financial position[119] Strategic Considerations - The company is exploring strategic options to create additional value from its drug discovery business, which may include potential spin-out transactions or capital raises[102] - The company faces risks that could adversely affect its results of operations, including economic uncertainty, inflation, and geopolitical instability[117] Accounting Estimates - Significant estimates affecting financial statements include accounts receivable realization, revenue recognition, and stock-based compensation assumptions[118] - The company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[120]

Financial Data and Key Metrics Changes - Revenue for Q2 was $13.5 million, representing a 17% increase compared to the same period last year [11] - GAAP income from operations for Q2 was $700,000, compared to a loss of $1.9 million in the prior year [12] - Adjusted EBITDA for Q2 was $1.1 million, compared to an adjusted loss of $1.4 million in the year-ago period [12] - Gross margin improved to 45% from 43% year-over-year [14] - Total revenue for the first half was $27.6 million, an increase of 14% compared to $24 million in the first half of 2024 [16] Business Line Data and Key Metrics Changes - The core services business experienced sustained growth driven by the PDX bank and multi-omic data [5] - R&D expenses decreased to approximately $1.7 million from $2.5 million year-over-year, a decline of $800,000 [14] - Sales and marketing expenses remained mostly unchanged at $1.7 million compared to $1.8 million last year [15] - G&A expenses decreased to $1.6 million from $2.1 million, primarily due to reduced compensation and recruitment expenses [15] Market Data and Key Metrics Changes - The funding environment is showing signs of improvement, particularly from big pharma and the biotech sector, although it has not fully returned to previous levels [23][24] - There is increased investment in the biotech sector, indicating a cautiously optimistic outlook for funding [23] Company Strategy and Development Direction - The company is focusing on monetizing its unique data assets and plans to introduce a new revenue stream through data licensing [7] - The strategy includes enhancing the characterization of tumor models to provide valuable insights for drug development [6] - The company aims to transform its data strategy into a data business that will significantly impact revenue and enterprise value [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to a path of strong financial results and anticipates revenue growth of 10% to 15% for fiscal 2025 [19][20] - The company expects a slight decline in research service revenues next quarter, with a reacceleration anticipated in the fourth quarter [19] Other Important Information - The company ended the quarter with $2.8 million in cash and no debt, indicating a solid cash position [18] - Cash used in operating activities was $300,000, primarily due to an increase in accounts receivable [18] Q&A Session Summary Question: What are the market dynamics regarding funding? - Management noted that while the funding environment is not back to previous levels, it has improved over the last year, with cautious optimism for future funding from big pharma and biotech [23][24] Question: Are there any new tests or services being rolled out? - Management highlighted the focus on the unique biological data created over the years, emphasizing the potential for growth in this area, particularly with the advent of AI [27][28]