Revenue and Financial Performance - Oncology services revenue decreased to 53.9 million in fiscal 2023, a decline of 6.9%[124] - The company reported a net loss of approximately 5.3 million in fiscal 2023[133] - Net cash used in operating activities was 4.0 million in fiscal 2023[134] Expenses - Gross margin for oncology services was 41% in fiscal 2024, down from 45% in fiscal 2023, attributed to unchanged variable costs amid revenue decline[125] - Research and development expenses decreased by 17.3% to 11.5 million in fiscal 2023 due to cost-cutting measures[126] - General and administrative expenses increased by 8.1% to 807,000 related to Lumin software development costs in fiscal 2023, with no impairment charges in fiscal 2024[129] - The company recorded an asset impairment charge related to software development costs of 181,000[149] - The company has established a full valuation allowance for all deferred tax assets as of April 30, 2024 and 2023[148] Cash Flow and Investments - Cash used in investing activities was 2.9 million in fiscal 2023, primarily for lab and computer equipment[136] - Loss on disposal of equipment was $435,000 in fiscal 2024, compared to zero in fiscal 2023[130] Strategic Initiatives - The company is exploring strategic options to create additional value from its drug discovery business, including potential spin-out transactions or capital raises[121] Accounting Policies - The company adopted ASU No. 2016-13 on May 1, 2023, which requires immediate recognition of management's estimates of current expected credit losses, with no material effect on financial statements[152] - The company has no off-balance sheet debt or similar obligations, nor any transactions with related parties that are not disclosed[153] - Capitalized software development costs are amortized over an estimated useful economic life of three years[146] - The recoverability of capitalized software development costs is assessed by comparing forecasted future revenues to the carrying amount of the costs[147] - Stock-based payments are recognized based on fair value using the Black-Scholes option pricing model, with expenses adjusted for forfeitures[145] - The company does not anticipate any significant unrecognized tax benefits will be recorded during the next 12 months[149] - Amendments to contracts are evaluated to determine if they should be accounted for as separate contracts or as a continuation of the original agreement[144]
Champions Oncology(CSBR) - 2024 Q4 - Annual Report