Champions Oncology(CSBR) - 2023 Q4 - Annual Report

Revenue and Growth - Oncology services revenue increased by 9.7% to $53.9 million for the year ended April 30, 2023, compared to $49.1 million in 2022[113]. - Total costs and operating expenses increased by 21.9% to $59.1 million in 2023, compared to $48.5 million in 2022[112]. - Sales and marketing expenses rose by 9.8% to $7.0 million in 2023, reflecting increased compensation and marketing initiatives[117]. - Research and development expenses increased by 23.2% to $11.5 million in 2023, compared to $9.4 million in 2022, driven by investments in new service capabilities[116]. Cost and Expenses - Cost of oncology services rose by 25.0% to $29.5 million in 2023, up from $23.6 million in 2022, primarily due to increased compensation and supply expenses[114]. - Gross margin decreased to 45% in 2023 from 52% in 2022, attributed to rising costs that did not support expected revenue growth[115]. - General and administrative expenses increased by 12.3% to $10.2 million in 2023, primarily due to higher non-cash depreciation and amortization expenses[118]. Financial Position - Net cash provided by operating activities was $4.0 million in 2023, down from $6.5 million in 2022, primarily due to the net loss in fiscal 2023[123]. - As of April 30, 2023, the company had an accumulated deficit of approximately $77.3 million and negative working capital of $2.3 million[121]. - The company recorded an asset impairment of $807,000 related to Lumin software development costs in fiscal 2023, with no impairment charges in 2022[119]. - The company recorded an asset impairment charge related to software development costs of $807,000 during fiscal 2023[136]. Tax and Regulatory Matters - As of April 30, 2023, the company established a full valuation allowance for all deferred tax assets[137]. - The company recognized a liability for uncertain tax positions related to foreign operations amounting to $181,000 as of April 30, 2023[138]. - The company is currently assessing the impact of ASU No. 2016-13 on its consolidated financial statements, effective May 1, 2023, but does not expect a material impact[139]. - The company has no off-balance sheet debt or similar obligations[140].