Champions Oncology(CSBR) - 2026 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements Presents unaudited condensed consolidated financial statements for July 31, 2025, including balance sheets, operations, equity, cash flows, and detailed notes Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Dollars in Thousands) | Metric | July 31, 2025 | April 30, 2025 | | :------------------------------------------ | :------------ | :------------- | | Total assets | $30,546 | $32,344 | | Total liabilities | $27,008 | $28,572 | | Total stockholders' equity | $3,538 | $3,772 | | Cash and cash equivalents | $10,325 | $9,785 | | Accounts receivable, net | $9,474 | $11,204 | | Deferred revenue | $14,430 | $15,443 | Unaudited Condensed Consolidated Statements of Operations Unaudited Condensed Consolidated Statements of Operations (Dollars in Thousands, Except Per Share Amounts) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Oncology revenue | $13,995 | $14,061 | | Total costs and operating expenses | $14,522 | $12,732 | | (Loss) income from operations | $(527) | $1,329 | | Net (loss) income | $(466) | $1,313 | | Net (loss) income attributable to Company's common shares | $(436) | $1,313 | | Net (loss) income per common share outstanding (basic) | $(0.03) | $0.10 | | Net (loss) income per common share outstanding (diluted) | $(0.03) | $0.09 | - Oncology revenue decreased by 0.5% year-over-year for the three months ended July 31, 2025[15] - The company reported a net loss of $466K for the three months ended July 31, 2025, compared to a net income of $1,313K in the prior year period[15] Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficiency) Changes in Stockholders' Equity (Deficiency) (Dollars in Thousands) | Metric | Balance April 30, 2025 | Stock-based compensation | Issuance of common stock on exercise of stock options | Net Loss | Balance July 31, 2025 | | :-------------------------------- | :--------------------- | :----------------------- | :------------------------------------ | :------- | :-------------------- | | Total Stockholders' Equity | $3,772 | $208 | $24 | $(466) | $3,538 | - Total stockholders' equity decreased from $3,772K at April 30, 2025, to $3,538K at July 31, 2025, primarily due to a net loss of $466K[16] Unaudited Condensed Consolidated Statements of Cash Flows Unaudited Condensed Consolidated Statements of Cash Flows (Dollars in Thousands) | Activity | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $600 | $311 | | Net cash used in investing activities | $(46) | $— | | Net cash used in financing activities | $(14) | $(37) | | Increase in cash | $540 | $274 | | Cash at end of period | $10,325 | $2,892 | - Net cash provided by operating activities increased by $289K year-over-year for the three months ended July 31, 2025[18] - Cash at the end of the period significantly increased to $10,325K from $2,892K year-over-year[18] Notes to Unaudited Condensed Consolidated Financial Statements Note 1. Organization, Use of Estimates and Basis of Presentation - Champions Oncology, Inc. is engaged in drug discovery and development, utilizing its TumorGraft Technology Platform (Patient Derived Xenograft models) to personalize cancer care and facilitate drug discovery for pharmaceutical and biotechnology companies[19] - The company operates in one reportable business segment and prepares its financial statements in accordance with GAAP, with consistent accounting policies as its 2025 Annual Report[22][23] - The company has four operating subsidiaries, none of which generated revenue for the three months ended July 31, 2025 and 2024[20] Note 2. Significant Accounting Policies - As of July 31, 2025, the company had a net loss of $466K, an accumulated deficit of $80.4M, negative working capital of $1.7M, and cash of $10.3M; management believes cash on hand and expected cash flows are adequate to fund operations for at least the next twelve months[26] Earnings Per Share (Dollars in Thousands) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net income (loss) attributable to common stockholders | $(436) | $1,313 | | Basic net income (loss) per share | $(0.03) | $0.10 | | Diluted net income (loss) per share | $(0.03) | $0.09 | - Revenue for pharmacology services is recognized over time using a progress-based input method, while license revenue is recognized at a point in time upon delivery of data access[36][37] - The company operates in a single reportable segment pertaining to oncology services, with the CEO as the Chief Operating Decision Maker[44] Note 3. Accounts Receivable, Unbilled Services and Deferred Revenue Accounts Receivable, Unbilled Services and Deferred Revenue (in thousands) | Metric | July 31, 2025 | April 30, 2025 | May 1, 2024 | | :--------------------------------------- | :------------ | :------------- | :---------- | | Accounts receivable | $5,139 | $6,835 | $4,886 | | Unbilled services | $5,335 | $5,398 | $5,941 | | Total accounts receivable and unbilled services | $10,474 | $12,233 | $10,827 | | Less: Allowances for doubtful accounts and estimated credit losses | $(1,000) | $(1,029) | $(1,301) | | Total accounts receivable, net | $9,474 | $11,204 | $9,526 | | Deferred revenue | $14,430 | $15,443 | $12,094 | - Total accounts receivable, net, decreased from $11,204K to $9,474K from April 30, 2025, to July 31, 2025[48] - Deferred revenue decreased from $15,443K to $14,430K during the three months ended July 31, 2025[48] Note 4. Revenue from Contracts with Customers Disaggregated Oncology Revenue (in thousands) | Revenue Type | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Pharmacology services | $13,230 | $13,069 | | TOS data license revenue | $311 | $— | | Other TOS revenue | $454 | $992 | | Total oncology revenue | $13,995 | $14,061 | - TOS data license revenue generated $311K for the three months ended July 31, 2025, with no revenue from this category in the prior year[49][50] - Other