Revenue and Financial Performance - Revenue for the three months ended July 31, 2024 and 2023 was 0,withnosignificantrevenueexpectedfromlegacypatentlicensingactivities[86][95]−Revenuerecognitionisbasedonone−time,paid−uplicensefees,with100837,000 to 1,925,000inQ32024,drivenbyhigherexpensesinbreastcancervaccine(694,000) and CAR-T therapeutics (235,000)programs[89]−ResearchanddevelopmentexpensesfortheninemonthsendedJuly31,2024totaled4,920,000, a 1,766,000increasefrom2023,drivenbybreastcancervaccine(1,088,000) and CAR-T therapeutics (642,000) programs[99] - Research and development expenses are recognized as incurred, with advance payments deferred and expensed as services are performed[117] - Preclinical and clinical trial expenses are recognized based on services performed under contracts with research institutions, CROs, and CMOs[117] - Management estimates prepaid and accrued R&D costs by discussing progress with internal and external service providers and comparing to payments and invoices[118] - Internal compensation costs are allocated to R&D expenses based on management's estimates of employee time and effort[118] General and Administrative Expenses - General and administrative expenses decreased by 89,000 to 1,667,000inQ32024,primarilyduetoreduceddirectorstockoptioncompensation(97,000) and director fees (53,000)[90]−GeneralandadministrativeexpensesfortheninemonthsendedJuly31,2024increasedby893,000 to 5,748,000,primarilyduetohigherinvestorandpublicrelationsexpenses(611,000) and employee stock option compensation (128,000)[100]InterestIncomeandInvestments−Interestincomedecreasedby19,000 to 277,000inQ32024duetoloweraverageshort−terminvestmentbalances,despitehigherinterestrates[92]−InterestincomefortheninemonthsendedJuly31,2024increasedby132,000 to 883,000duetohigherinterestratesandincreasedshort−terminvestmentbalances[101]−Cash,cashequivalents,andshort−terminvestmentsdecreasedby3,099,000 to 20,745,000asofJuly31,2024,withthecompanyraising2,984,000 through an at-the-market equity offering[104][106] Cash Reserves and Funding - The company expects its current cash reserves to fund operations for at least the next 12 months, with the ability to raise an additional $97 million through its at-the-market equity program[104] Stock Option Valuation and Assumptions - The company uses the Black-Scholes pricing model and Monte Carlo Simulation to estimate fair value, requiring assumptions on expected term, volatility, risk-free interest rates, and dividend yield[115] - The expected term for employee stock options is determined using a simplified method, combining vesting and contractual terms, due to operational changes impacting historical performance[115] - The company estimates expected volatility based on historical share price volatility over a period equal to the expected term of the grants[115] - The risk-free interest rate is estimated using the implied yield of U.S. Treasury notes with terms matching the expected term of the grants[115] - The company assumes no dividend yield based on its history and expectation of not paying dividends in the future[115] Disclosure Controls and Procedures - The company's disclosure controls and procedures were deemed effective as of the end of the reporting period[120]
Anixa Biosciences(ANIX)2024-09-06 21:00