Champions Oncology(US:CSBR)2023-09-12 16:00Revenue and Financial Performance - Oncology services revenue for the three months ended July 31, 2023, was $12.6 million, a decrease of 8.6% from $13.7 million in the same period of 2022[79]. - The company reported a net loss of approximately $2.6 million for the three months ended July 31, 2023, compared to a loss of $284,000 in the same period last year, representing a 798.6% increase in loss[79]. - Total costs and operating expenses increased by 7.7% to $15.1 million in Q3 2023, compared to $14.0 million in Q3 2022[79]. Cash and Liquidity - As of July 31, 2023, the company had cash on hand of approximately $4.9 million and an accumulated deficit of approximately $79.9 million[78]. - The company’s liquidity needs are primarily driven by research and development funding, with cash used in operations amounting to approximately $4.0 million for the three months ended July 31, 2023[78]. - Net cash used in operating activities was $4.0 million for the three months ended July 31, 2023, compared to cash used of $195,000 in the same period of 2022, primarily due to an operating loss and increased accounts receivable[123]. Expenses - Research and development expenses for Q3 2023 were $2.8 million, accounting for 22.2% of revenue, a slight decrease from 21.0% in Q3 2022[79]. - General and administrative expenses increased by 22.6% to $2.9 million in Q3 2023, compared to $2.4 million in Q3 2022[79]. - General and administrative expenses increased to $2.9 million for the three months ended July 31, 2023, up $542,000 or 22.6% from $2.4 million in 2022, primarily due to increased bad debt expense and non-cash stock-based compensation[122]. - Total stock-based compensation expense for the three months ended July 31, 2023, was $423,000, compared to $206,000 in the same period of 2022, reflecting a significant increase[114]. Investments and Capital Expenditures - Net cash used in investing activities was $668,000 for the three months ended July 31, 2023, down from $754,000 in 2022, attributed to investments in additional lab and computer equipment[124]. - The company recognized a finance lease for laboratory equipment with costs of approximately $368,000, with cash payments structured as part of a purchase commitment agreement[109]. - The total capitalized gross asset costs for the Lumin platform, which was launched and placed into service, amounted to $1.9 million, with an impairment loss recognized of $807,000 as of April 30, 2023[108]. Lease Obligations - The company’s operating leases resulted in a total undiscounted liability of $16.2 million, with a present value of minimum lease payments at $8.4 million as of July 31, 2023[87]. Research and Development - The company has a pipeline of targets at various stages of discovery and validation, with a select group progressing to therapeutic development, indicating ongoing research efforts[100]. - For the three months ended July 31, 2023, research and development expenses were $2.8 million, a slight decrease of approximately $0.1 million or 3.3% compared to $2.9 million in the same period of 2022[120]. Shareholder Actions - The company has a share repurchase program authorized for up to $5.0 million, with approximately 115,000 shares purchased at an average price of $5.62 per share, totaling approximately $676,000[82]. - As of July 31, 2023, approximately 1.6 million shares remain available for issuance under the 2021 Equity Incentive Plan, which allows for various forms of stock-based compensation[112]. Accounting Changes - The company adopted ASU 2016-03 on April 1, 2023, which did not have a material effect on its financial statements[89]. Depreciation and Amortization - Depreciation and amortization expense for the three months ended July 31, 2023, was $445,000, compared to $528,000 in the same period of 2022[103].