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What changed in CHAMPIONS ONCOLOGY, INC.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of CHAMPIONS ONCOLOGY, INC.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+98 added−109 removedSource: 10-K (2023-07-24) vs 10-K (2022-07-22)

Top changes in CHAMPIONS ONCOLOGY, INC.'s 2023 10-K

98 paragraphs added · 109 removed · 84 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

16 edited+2 added−3 removed42 unchanged
Biggest changeWe are also investing in the acquisition of sophisticated analytical platforms which allow scientists to derive deeper insights when using our pharmacology platforms. 5 Government Regulation The research, development, and marketing of our products, the performance of our legacy POS testing services, and the operation of our facilities are generally subject to federal, state, local, or foreign legislation, including licensure of our laboratory located in Rockville, Maryland by the State of Maryland and compliance with federal, state, local or foreign legislation applicable to the use of live animals in scientific testing, research and education.
Biggest changeGovernment Regulation The research, development, and marketing of our products, the performance of our legacy POS testing services, and the operation of our facilities are generally subject to federal, state, local, or foreign legislation, including licensure of our laboratory located in Rockville, Maryland by the State of Maryland and compliance with federal, state, local or foreign legislation applicable to the use of live animals in scientific testing, research and education. 5 The FDA has claimed regulatory authority over laboratory developed tests such as our legacy POS products, but has generally not exercised it.
Our goal is to leverage our unique Datacenter to establish elegant ways to better understand the molecular dynamics of cancer, and the development novel therapeutics. Competition Champions currently competes in three different markets: Research Services : Pharmaceutical companies rely on outsourcing preclinical studies to Clinical Research Organizations ("CROs").
Our goal is to leverage our unique Datacenter to establish elegant ways to better understand the molecular dynamics of cancer, and the development novel therapeutics. 4 Competition Champions currently competes in three different markets: Research Services : Pharmaceutical companies rely on outsourcing preclinical studies to Clinical Research Organizations ("CROs").
Our software development teams consist of bioinformatics scientists, mathematicians as well as software engineers. Lumin leverages Champions’ large Datacenter coupled with analytics and artificial intelligence to provide a robust tool for computational cancer research. It is the combination of the Datacenter and the analytics that create a unique foundation for Lumin.
Our software development teams consist of bioinformatics scientists, mathematicians as well as software engineers. Lumin leverages Champions’ large Datacenter coupled with analytics and artificial intelligence to provide a robust tool for computational cancer research. It is the combination of the Datacenter and the analytics that create the foundation for Lumin.
We perform studies which we believe may predict the efficacy of experimental oncology drugs or approved drugs as stand-alone therapies or in combination with other drugs and can stimulate the results of human clinical trials.
We perform studies which we believe may predict the efficacy of experimental oncology drugs or approved drugs as stand-alone therapies or in combination with other drugs and can simulate the results of human clinical trials.
These companies, as well as academic institutions, governmental agencies, and private research organizations also compete with us in recruiting and retaining highly qualified scientific, technical and professional personnel and consultants. Research and Development For the years ended April 30, 2022 and 2021, we spent approximately $9.4 million and $7.2 million, respectively, to further develop our platforms.
These companies, as well as academic institutions, governmental agencies, and private research organizations also compete with us in recruiting and retaining highly qualified scientific, technical and professional personnel and consultants. Research and Development For the years ended April 30, 2023 and 2022, we spent approximately $11.5 million and $9.4 million, respectively, to further develop our platforms.
Drug Discovery and Developmen t: Our Drug Discovery and Development business places us in a good position of also competing against the same customers of our Research Services and/or SaaS businesses: the global biopharmaceutical industry. The global oncology drug market is estimated to be $85B.
Drug Discovery and Developmen t: Our Drug Discovery and Development business places us in a good position of also competing against the same customers of our Research Services and/or SaaS businesses: the global biopharmaceutical industry. The global oncology drug market is estimated to be as high as $188B in 2023.
Once these 4 experimental technologies are established they are made available to our research and development and target discovery teams. • Continued development of computational power: We have developed sophisticated and innovative computational approaches. We continue to invest in the development of novel artificial intelligence, data structures, and analytics.
Once these experimental technologies are established they are made available to our research and development and target discovery teams. • Computational power: We have developed sophisticated and innovative computational approaches. We have also invested in the development of novel artificial intelligence, data structures, and analytics.
Revenue from this business has grown at an average annual growth rate of 28% since 2016 and represents the primary source of our current revenue stream.
Revenue from this business has grown at an average annual growth rate of 23% since 2018 and represents the primary source of our current revenue stream.
Human Capital Resources As of July 15, 2022, we had 230 full-time employees, including 78 with doctoral or other advanced degrees. Of our workforce, 181 employees are engaged in research and development and laboratory operations, 31 employees are engaged in sales and marketing, and 18 employees are engaged in finance and administration.
Human Capital Resources As of July 15, 2023, we had 230 full-time employees, including 73 with doctoral or other advanced degrees. Of our workforce, 176 employees are engaged in research and development and laboratory operations, 31 employees are engaged in sales and marketing, and 23 employees are engaged in finance and administration.
To keep up with new approaches, we continuously add new technologies to platform. We are currently investing in developing additional proprietary pharmacology platforms aimed at enhancing the scientific output and driving innovation in the oncology research sector. We are also investing in the development of sophisticated analytical platforms which allow scientists to derive deeper insights when using our pharmacology platforms.
We are currently investing in developing additional proprietary pharmacology platforms aimed at enhancing the scientific output and driving innovation in the oncology research sector. We are also investing in the development of sophisticated analytical platforms which allow scientists to derive deeper insights when using our pharmacology platforms.
We are subject to federal and international regulations with regard to shipment of hazardous materials, including the Department of Transportation and the International Air Transit Authority. These regulations require interstate, intrastate, and foreign shipments comply with applicable labeling, documentation, and training requirements.
The FDA has announced regulatory and guidance initiatives that could increase federal regulation of our business. We are subject to federal and international regulations with regard to shipment of hazardous materials, including the Department of Transportation and the International Air Transit Authority. These regulations require interstate, intrastate, and foreign shipments comply with applicable labeling, documentation, and training requirements.
Our discovery strategy utilizes our Datacenter, coupled with artificial intelligence and other advanced computational analytics, to identify novel therapeutic targets. We then employ the use of our proprietary experimental platforms to rapidly validate these targets for further drug development efforts. Our efforts center around three areas of focus: 1. Targeted therapy with drug conjugates 2. Immune oncology 3.
We then employ the use of our proprietary experimental platforms to rapidly validate these targets for further drug development efforts. Our efforts center around three areas of focus: 1. Targeted therapy with drug conjugates 2. Immune oncology 3.
Second, we utilize our legacy Personalized Oncology Services business to establish novel PDX models from patients who use this service. The PDX models are then deeply characterized at the phenotypic, molecular, and pharmacologic levels. This data characterization is then added to our DataCenter. • Adding new experimental technologies: The fields of oncology research and drug development are evolving rapidly.
Second, we maintain the ability to utilize our legacy Personalized Oncology Services business to establish novel PDX models from patients who use this service. The PDX models are then deeply characterized at the phenotypic, molecular, and pharmacologic levels.
We are investing in developing additional proprietary pharmacology platforms aimed at enhancing the scientific output and driving innovation in the oncology research sector.
We are investing in developing additional proprietary pharmacology platforms aimed at enhancing the scientific output and driving innovation in the oncology research sector. We are also investing in the acquisition of sophisticated analytical platforms which allow scientists to derive deeper insights when using our pharmacology platforms.
Our Current Strategy Our strategy is to use our various platform technologies to drive multiple synergistic revenue streams. We continue to build upon this with investments in research and development.
For the year ended April 30, 2023, revenues from our products and services totaled approximately $53.8 million, an increase of approximately 10% from the previous year. Our Current Strategy Our strategy is to use our various platform technologies to drive multiple synergistic revenue streams. We continue to build upon this with investments in research and development.
Insights developed using Lumin can provide the basis for biomarker hypotheses, reveal potential mechanisms of therapeutic resistance, and guide the direction of additional preclinical evaluations. Drug Discovery and Development Business We began investing in drug discovery in fiscal year 2021. Our nascent drug discovery and development business leverages the computational and experimental capabilities within our platforms.
Insights developed using Lumin can provide the basis for biomarker hypotheses, reveal potential mechanisms of therapeutic resistance, and guide the direction of additional preclinical evaluations. See Note 4 to the consolidated financial statements for further discussion as to impairment of Lumin assets in fiscal 2023.
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Our SaaS business development team is focused on identifying and selling subscriptions to new customers, ensuring a high level of use from these subscribers, and increasing our revenue from existing customers through the use of our cloud computing environment.
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Drug Discovery and Development Business Our nascent drug discovery and development business leverages the computational and experimental capabilities within our platforms. Our discovery strategy utilizes our Datacenter, coupled with artificial intelligence and other advanced computational analytics, to identify novel therapeutic targets.
Removed
Our sales approach is based on in informing our current research services customers and reaching out to new contacts within companies that we currently serve. For the year ended April 30, 2022, revenues from our products and services totaled approximately $49.1 million, an increase of approximately 20% from the previous year.
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This data characterization is then added to our DataCenter. • Adding new experimental technologies: The fields of oncology research and drug development are evolving rapidly. To keep up with new approaches, we continuously add new technologies to platform.
Removed
The FDA has claimed regulatory authority over laboratory developed tests such as our legacy POS products, but has generally not exercised it. The FDA has announced regulatory and guidance initiatives that could increase federal regulation of our business.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAlthough we may not be successful in obtaining financing through equity sales on terms that are favorable to us, if at all, any such sales that do occur could result in substantial dilution to the interests of existing holders of our common stock. 11 Additionally, the sale of a substantial number of shares of our common stock or other equity securities to any new investors, or the anticipation of such sales, could cause the trading price of our common stock to fall.
Biggest changeAlthough we may not be successful in obtaining financing through equity sales on terms that are favorable to us, if at all, any such sales that do occur could result in substantial dilution to the interests of existing holders of our common stock.
If any of these events happened, they could hurt our business and financial results. If our laboratory facilities are damaged or destroyed, or we have a dispute with one of our landlords, our business would be negatively affected. We currently utilize several office suites where our laboratories are located within one facility in Rockville, Maryland.
If any of these events happened, they could hurt our business and financial results. 7 If our laboratory facilities are damaged or destroyed, or we have a dispute with one of our landlords, our business would be negatively affected. We currently utilize several office suites where our laboratories are located within one facility in Rockville, Maryland.
In addition, courts outside the United States are sometimes less willing to protect trade secrets. Finally, our competitors may independently develop equivalent knowledge, methods and know-how. If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.
In addition, courts 8 outside the United States are sometimes less willing to protect trade secrets. Finally, our competitors may independently develop equivalent knowledge, methods and know-how. If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.
In addition, there is a risk of business interruption, violation of data privacy laws and regulations, litigation, and reputational damage from leakage of confidential information. Any interruption of our information technology systems could have operational, reputational, legal, and financial impacts that may have a material adverse effect on our business.
In addition, there is a risk of business interruption, 12 violation of data privacy laws and regulations, litigation, and reputational damage from leakage of confidential information. Any interruption of our information technology systems could have operational, reputational, legal, and financial impacts that may have a material adverse effect on our business.
In response, most countries around the world imposed quarantines and restrictions on travel and mass gatherings in an effort to contain the spread of the virus. Employers worldwide were also required to increase, as much as possible, the capacity 13 and arrangement for employees to work remotely.
In response, most countries around the world imposed quarantines and restrictions on travel and mass gatherings in an effort to contain the spread of the virus. Employers worldwide were also required to increase, as much as possible, the capacity and arrangement for employees to work remotely.
Such regulation and requirements are subject to change, and may result in additional costs or delays in providing our products to our customers. In addition, the healthcare industry in general is highly regulated in the United States at both the federal and state 7 levels.
Such regulation and requirements are subject to change, and may result in additional costs or delays in providing our products to our customers. In addition, the healthcare industry in general is highly regulated in the United States at both the federal and state levels.
Drug development programs, particularly those in early stages of development, may never be commercialized. Our future success depends, in part, on our ability to select successful product candidates, complete preclinical development of these product candidates and advance them to and through clinical trials.
Drug development programs, particularly those in early stages of development, may never be commercialized. 9 Our future success depends, in part, on our ability to select successful product candidates, complete preclinical development of these product candidates and advance them to and through clinical trials.
If the future growth and operating results of our business are not as strong as anticipated and/or our market capitalization declines, this could impact the assumptions used in calculating the fair value of goodwill or recoverability of our capitalized software development costs.
If the future growth and operating results of our business are not as strong as anticipated and/or our market capitalization declines, this could impact the assumptions used in calculating the fair value of goodwill or recoverability of any future capitalized software development costs.
Patent applications are maintained in secrecy in the United States and also are maintained in secrecy outside the United States until the application is published. Accordingly, we can conduct only limited searches to determine whether our technology 9 infringes the patents or patent applications of others.
Patent applications are maintained in secrecy in the United States and also are maintained in secrecy outside the United States until the application is published. Accordingly, we can conduct only limited searches to determine whether our technology infringes the patents or patent applications of others.
This significant concentration of share 12 ownership may also adversely affect the trading price for our common stock because investors may perceive disadvantages in owning stock in a company that is controlled by a small number of stockholders.
This significant concentration of share ownership may also adversely affect the trading price for our common stock because investors may perceive disadvantages in owning stock in a company that is controlled by a small number of stockholders.
These conditions include but are not limited to inflation, rising interest rates, availability of capital markets, energy availability and costs (including fuel surcharges), the negative impacts caused by pandemics and public health crises (including the COVID-19 pandemic), negative impacts resulting from the military conflict between Russia and the Ukraine, and the effects of governmental initiatives to manage economic conditions.
These conditions include but are not limited to inflation, rising interest rates, availability of capital markets, energy availability and costs (including fuel surcharges), the negative impacts caused by pandemics and public health crises (such as the COVID-19 pandemic), negative impacts resulting from the military conflict between Russia and the Ukraine, and the effects of governmental initiatives to manage economic conditions.
The spread of an infectious disease, including COVID-19, may also result in the inability of our suppliers to deliver supplies to us on a timely basis. In addition, health professionals may reduce staffing and reduce or postpone meetings with clients in response to the spread of an infectious disease.
The spread of an infectious disease, like COVID-19, may also result in the inability of our suppliers to deliver supplies to us on a timely basis. In addition, health professionals may reduce staffing and reduce or postpone meetings with clients in response to the spread of an infectious disease.
To the extent impairment occurs, the carrying value of our assets will be written down to an implied fair value and an impairment charge will be made to our income from continuing operations. Such an impairment charge could materially and adversely affect our operating results.
To the extent any future impairment occurs, the carrying value of our assets will be written down to an implied fair value and an impairment charge will be made to our income from continuing operations. Such an impairment charge could materially and adversely affect our operating results.
The amount of our income or losses and liquidity requirements may vary significantly from year-to-year and quarter-to-quarter and will depend on, among other factors: • the cost of continuing to build out our TumorGraft bank; • the cost and rate of progress toward growing our technology platforms; • the cost and rate of progress toward building our business units; • the cost of increasing our research and development; • the cost of renting our laboratory and animal testing facilities and payment for associated services; • the timing and cost of obtaining and maintaining any necessary regulatory approvals; • the cost of expanding and building out our infrastructure; and • the cost incurred in hiring and maintaining qualified personnel.
We believe that our cash on hand, together with expected cash flows from operations, are adequate to fund our operations through at least August 2024. 6 The amount of our income or losses and liquidity requirements may vary significantly from year-to-year and quarter-to-quarter and will depend on, among other factors: • the cost of continuing to build out our TumorGraft bank; • the cost and rate of progress toward growing our technology platforms; • the cost and rate of progress toward building our business units; • the cost of increasing our research and development; • the cost of renting our laboratory and animal testing facilities and payment for associated services; • the timing and cost of obtaining and maintaining any necessary regulatory approvals; • the cost of expanding and building out our infrastructure; and • the cost incurred in hiring and maintaining qualified personnel.
As of July 20, 2022, we had 13,522,441 shares of common stock issued and outstanding. The future issuance of all or part of the remaining authorized common stock would result in substantial dilution in the percentage of the common stock held by existing shareholders.
As of July 18, 2023, we had 13,544,228 shares of common stock issued and 13,459,539 outstanding. The future issuance of all or part of the remaining authorized common stock would result in substantial dilution in the percentage of the common stock held by existing shareholders.
The extent to which COVID-19 impacts our business will depend on future developments which are highly uncertain and cannot be predicted, including, but not limited to, new information which may emerge concerning the increased severity of the COVID-19 virus, the actions to contain COVID-19, or treat its impact.
The extent to which any spread of disease, like that of the COVID-19 pandemic, impacts our business will depend on future developments which are highly uncertain and cannot be predicted, including, but not limited to, information which may emerge concerning the spreading and severity of the any infectious diseases, the actions to contain these, or treat their impact.
Item 1A. Risk Factors You should carefully consider the risks described below together with all of the other information included in this Annual Report. The risks and uncertainties described below are not the only ones we face.
Item 1A. Risk Factors You should carefully consider the risks described below together with all of the other information included in this Annual Report. The risks and uncertainties described below are not the only ones we face. Additional risks not presently known, or those we currently consider insignificant, may also impair our business operations in the future.
To the extent that we raise additional funds by issuing equity securities or convertible debt securities in the future, our stockholders may experience significant dilution. Sale of additional equity and/or convertible debt securities at prices below certain levels will trigger anti-dilution provisions with respect to certain securities we have previously sold.
Sale of additional equity and/or convertible debt securities at prices below certain levels will trigger anti-dilution provisions with respect to certain securities we have previously sold.
Collectively, our officers, our directors and three significant stockholders own or exercise voting and investment control of approximately 67% of our outstanding common stock as of July 20, 2022.
Our management and four significant stockholders collectively own a substantial majority of our common stock. 11 Collectively, our officers, our directors and three significant stockholders own or exercise voting and investment control of approximately 71% of our outstanding common stock as of July 18, 2023.
The issuance of common stock for future services, acquisitions, or other corporate actions may have the effect of diluting the value of the shares held by existing shareholders, and might have an adverse effect on any market for our common stock.
The issuance of common stock for future services, acquisitions, or other corporate actions may have the effect of diluting the value of the shares held by existing shareholders, and might have an adverse effect on any market for our common stock. 10 To the extent that we raise additional funds by issuing equity securities or convertible debt securities in the future, our stockholders may experience significant dilution.
To become sustainably profitable, we will need to generate revenues to offset our operating costs, including our research and development and general and administrative expenses. We may not achieve or sustain our revenue or profit objectives.
Currently, the Company derives revenue primarily from research services, while pursuing efforts to further develop its drug discovery business units. To become sustainably profitable, we will need to generate revenues to offset our operating costs, including our research and development and general and administrative expenses. We may not achieve or sustain our revenue or profit objectives.
The statutes have the effect of making it more difficult to effect a change in control of a Delaware company. Our management and four significant stockholders collectively own a substantial majority of our common stock.
The statutes have the effect of making it more difficult to effect a change in control of a Delaware company.
Additional risks not presently known, or those we currently consider insignificant, may also impair our business operations in the future. 6 We historically incurred losses from operating activities, may require significant capital and may never achieve sustained profitability. For the years ended April 30, 2022 and 2021, the Company had net income of approximately $548,000 and $362,000, respectively.
We historically incurred losses from operating activities, may require significant capital and may never achieve sustained profitability. For the years ended April 30, 2023 and 2022, the Company had a net loss of approximately $5.3 million and net income of $548,000, respectively.
As of April 30, 2022, the Company has an accumulated deficit of approximately $72.0 million. As of April 30, 2022, we had working capital of $2.2 million and cash of $9.0 million. We believe that our cash on hand, together with expected cash flows from operations, are adequate to fund our operations through at least August 2023.
As of April 30, 2023, the Company has an accumulated deficit of approximately $77.3 million, negative working capital of $2.3 million, and a cash balance of $10.1 million. The Company also had cash provided by operations of approximately $4.0 million for the twelve months ending April 30, 2023.
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Currently, the Company derives revenue primarily from research services, while pursuing efforts to further develop its SaaS and drug discovery business units. We are investing resources to further grow our sales of all of our business units.
Added
During 2023, we recorded an asset impairment charge related to software development costs of $807,000, reducing the net book value to zero.
Removed
In fiscal 2021, we identified that there was a material weaknesses in our internal control over financial reporting, which if not remediated, could materially adversely affect our ability to timely and accurately report our results of operations and financial condition. We believe this material weakness has since been remediated as of the filing date of this Form 10-K.
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Additionally, the sale of a substantial number of shares of our common stock or other equity securities to any new investors, or the anticipation of such sales, could cause the trading price of our common stock to fall.
Removed
If we fail to maintain an effective system of internal controls, the accuracy and timing of our financial reporting may be adversely affected. As described in “Part II, Item 9A - Controls and Procedures,” of this Form 10-K we have concluded that there was a material weakness in our internal control over financial reporting in our prior fiscal reporting year.
Removed
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
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It is necessary for us to maintain effective internal control over financial reporting to prevent fraud and errors and to maintain effective disclosure controls and procedures so that we can provide timely and reliable financial and other information.
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Specifically, our risk assessment procedures over certain of our contractual arrangements requiring the payment of royalties for the licensing of technology from third-parties did not adequately identify the risks and consider the Company's obligations based on the recognition of oncology services revenue for the prior fiscal year.
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As a result, the Company had missing process level controls over the review of royalty arrangements and the timely determination and recognition of related liabilities.
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As further described in Part II, Item 9A in this Annual Report on Form 10-K, while we believe that we have implemented and carried out a remediation plan to remediate this material weakness, there can be no assurance that this will not occur in future reports.
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We may identify additional material weaknesses in our internal control over financial reporting in the future.
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If 8 we are unable to fully remediate this material weakness or we identify additional material weaknesses in our internal control over financial reporting in the future, we may not be able to analyze, record and report financial information accurately, and/or to prepare our financial statements within the time periods specified by the rules.
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If we are unsuccessful in advancing our research and development programs into clinical testing or in obtaining regulatory approval, our long-term business prospects will be harmed. Drug discovery programs, particularly those in early stages of development, may never be commercialized.
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Our future success in drug discovery depends, in part, on our ability to select successful product candidates, complete preclinical development of these product candidates and advance them to and through clinical trials.
Removed
Early-stage product candidates in particular require significant investment in development, preclinical studies and clinical trials, regulatory clearances and substantial additional investment before they can be commercialized, if at all. Our research and development programs related to drug discovery may not lead to commercially viable products for several reasons, and are subject to the risks and uncertainties associated with drug development.
Removed
For example, we may fail to identify promising product candidates, our product candidates may fail to be safe and effective in preclinical tests or clinical trials, or we may have inadequate financial or other resources to pursue discovery and development efforts for new product candidates.
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From time to time, we may establish and announce certain development goals for our product candidates and programs. However, given the complex nature of the drug discovery and development process, it is difficult to predict accurately if and 10 when we will achieve these goals.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe Company recognized zero and $43,000 of rental costs for fiscal 2022 and 2021, respectively. • VIA LEONE XIII, 14, Milan, Italy, which consists of laboratory and office space where the Company conducts operations related to its flow cytometry service offerings.
Biggest changeThe Company recognized $1.7 million of rental costs relative to this lease for fiscal 2023 and 2022, respectively. • VIA LEONE XIII, 14, Milan, Italy, which consists of laboratory and office space where the Company conducts operations related to its flow cytometry service offerings. The Company consolidated its lab and office space leases into one lease during fiscal 2023.
Item 2. Properties The Company currently leases its office and laboratory facilities under non-cancelable operating leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expenses totaled $1.9 million and $1.3 million for the years ended April 30, 2022 and 2021, respectively.
Item 2. Properties The Company currently leases its office and laboratory facilities under non-cancelable operating leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expenses totaled $1.9 million for the years ended April 30, 2023 and 2022, respectively.
The Company recognized $88,000 and $91,000 of rental costs relative to this lease for fiscal 2022 and 2021, respectively. • 1330 Piccard Drive, Suite 025, Rockville, MD 20850, which consists of laboratory and office space where the Company conducts operations related to its primary service offerings. The lease expires February 28, 2029.
The Company recognized $83,000 and $88,000 of rental costs relative to this lease for fiscal 2023 and 2022, respectively. • 1330 Piccard Drive, Suite 025, Rockville, MD 20850, which consists of laboratory and office space where the Company conducts operations related to its primary service offerings. The lease expires February 28, 2029.
The Company considers its facilities adequate for its current operational needs. The Company leases the following facilities: • One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease was renewed during fiscal 2022 and expires in November 2026.
The Company considers its facilities adequate for its current operational needs. The Company leases the following facilities: 13 • One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease expires in November 2026.
The Company recognized rental costs associated with these leases of $81,000 and zero for fiscal years 2022 and 2021, respectively. Item 3. Legal Proceedings None. Item 4. Mine Safety Disclosures None. PART II
The lease expires October 31, 2028. The Company recognized $98,000 and $81,000 of rental costs relative to these leases for fiscal 2023 and 2022, respectively. Item 3. Legal Proceedings None. Item 4. Mine Safety Disclosures Not applicable. PART II
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The Company recognized $1.7 million and $1.2 million of rental costs for fiscal 2022 and 2021, respectively. • 1405 Research Boulevard, Suite 125, Rockville, Maryland 20850, which consisted of laboratory and office space where the Company conducted operations related to its primary service offerings.
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The Company executed this lease on November 1, 2018 and it was set to expire in April 2024. The Company terminated this lease on June 30, 2020 and transitioned its activities from this location to the Piccard Drive location, as defined above, during the first quarter of fiscal 2021.
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The Company executed the lease for its laboratory space in June 2021, and commenced occupancy during the three months ended October 31, 2021. This lease expires May 2023. The Company 14 executed the lease for its office space on October 1, 2021. This lease expires in September 2027.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe table below sets forth the high and low bid prices of our common stock, as reported on Nasdaq for the periods shown: High Low Fiscal Year Ended April 30, 2022: First quarter $ 11.25 $ 8.45 Second quarter 11.00 9.23 Third quarter 10.38 7.60 Fourth quarter 8.93 7.06 High Low Fiscal Year Ended April 30, 2021: First quarter $ 10.89 $ 7.46 Second quarter 9.97 7.05 Third quarter 13.45 8.30 Fourth quarter 14.68 10.06 Approximate Number of Holders of Common Stock As of July 20, 2022 there were approximately 1,900 record holders of the Company’s common stock.
Biggest changeThe table below sets forth the high and low bid prices of our common stock, as reported on Nasdaq for the periods shown: High Low Fiscal Year Ended April 30, 2023: First quarter $ 9.53 $ 6.81 Second quarter 9.88 6.90 Third quarter 7.24 3.75 Fourth quarter 5.54 3.95 High Low Fiscal Year Ended April 30, 2022: First quarter $ 11.25 $ 8.45 Second quarter 11.00 9.23 Third quarter 10.38 7.60 Fourth quarter 8.93 7.06 Approximate Number of Holders of Common Stock As of July 18, 2023 there were approximately 1,900 record holders of the Company’s common stock.
Dividends Holders of our common stock are entitled to receive such dividends as may be declared by our Board of Directors. No dividends have been declared or paid with respect to our common stock and no dividends are anticipated to be paid in the foreseeable future.
Dividends 14 Holders of our common stock are entitled to receive such dividends as may be declared by our Board of Directors. No dividends have been declared or paid with respect to our common stock and no dividends are anticipated to be paid in the foreseeable future.
Any future decisions as to the payment of dividends will be at the discretion of our Board of Directors, subject to applicable law. Recent Sales by the Company of Unregistered Securities None. 15 Repurchases of Securities None. Use of Proceeds None. Item 6. Reserved
Any future decisions as to the payment of dividends will be at the discretion of our Board of Directors, subject to applicable law. Recent Sales by the Company of Unregistered Securities None.
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Repurchases of Securities On March 29, 2023, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $5.0 million of the Company’s common stock. The share repurchase program is designed in accordance with Rule 10b-18 of the Exchange Act.
Added
The shares may be purchased from time to time in the open market, as permitted under applicable rules and regulations, at prevailing market prices. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The program does not obligate the Company to acquire a minimum number of shares.
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As of April 30, 2023, the Company had purchased approximately 14,000 shares of its common stock, at an average price of $5.11 per share, totaling approximately $74,000 and leaving an available balance of approximately $4.9 million authorized by the Board for use in the program as of that date. Use of Proceeds None. Item 6. Reserved

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

36 edited+7 added−4 removed31 unchanged
Biggest changeThe increase in cash provided was primarily due to improving cash based operational results and an increase in deferred revenue. The increase in deferred revenue was primarily driven by cash received upon signing new studies, an indicator of the strength of the Company’s sales pipeline. Changes in our working capital accounts were in the ordinary course of business operating activities.
Biggest changeCash generated from operations in 2023 was primarily due to changes in our working capital accounts in the ordinary course of business and an increase in deferred revenue. Cash Flows from Investing Activities Net cash used in investing activities was $2.9 million and $2.4 million for the years ended April 30, 2023 and 2022, respectively.
Critical Accounting Policies 18 The following discussion of critical accounting policies identifies the accounting policies that require application of management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods.
Critical Accounting Policies The following discussion of critical accounting policies identifies the accounting policies that require application of management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods.
There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause.
There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, 18 and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause.
Stock-Based Payments 19 We typically recognize expense for stock-based payments based on the fair value of awards on the date of grant. We use the Black-Scholes option pricing model to estimate fair value.
Stock-Based Payments We typically recognize expense for stock-based payments based on the fair value of awards on the date of grant. We use the Black-Scholes option pricing model to estimate fair value.
Significant estimates of the Company include, among other things, accounts receivable realization, revenue recognition (replacement of licensed tumors), valuation allowance for deferred tax assets, recoverability of capitalized software development costs, and stock-based compensation and warrant assumptions.
Significant estimates of the Company include, among other things, accounts receivable realization, revenue recognition, valuation allowance for deferred tax assets, recoverability of capitalized software development costs, and stock-based compensation and warrant assumptions.
Capitalized costs are then amortized using the straight-line method over an estimated useful economic life of three years. Capitalized software development costs are stated at gross cost less accumulated amortization.
Capitalized costs are recorded as an asset and then amortized using the straight-line method over an estimated useful economic life of three years. Capitalized software development costs are stated at gross cost less accumulated amortization.
In the past, we have met these cash requirements through our cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities and sales of products and services. For the years ended April 30, 2022 and 2021, the Company had net income of approximately $548,000 and $362,000, respectively.
In the past, we have met these cash requirements through our cash on hand, working capital management, proceeds from certain private placements and public offerings of our securities and sales of products and services. For the years ended April 30, 2023 and 2022, the Company had a net loss of approximately $5.3 million and net income of approximately $548,000, respectively.
Research and Development Research and development expense was $9.4 million and $7.2 million for the years ended April 30, 2022 and 2021, respectively, an increase of $2.2 million or 30.3%.
Research and Development Research and development expense was $11.5 million and $9.4 million for the years ended April 30, 2023 and 2022, respectively, an increase of $2.2 million or 23.2%.
Our Lumin software contains comprehensive information derived from our research services and clinical studies. Lumin leverages Champions’ large Datacenter coupled with analytics and artificial intelligence to provide a robust tool for computational cancer research. It is the combination of the Datacenter and the analytics that create a unique foundation for Lumin.
Lumin leverages Champions’ large Datacenter coupled with analytics and artificial intelligence to provide a robust tool for computational cancer research. It is the combination of the Datacenter and the analytics that create a unique foundation for Lumin.
Other Income (Expense) Other expense was $24,000 and other income was $71,000 for the years ended April 30, 2022 and 2021, respectively. Other expense for the year ended April 30, 2022 resulted primarily from foreign currency transaction losses.
Other Expense Other expense, net was $11,000 and $24,000 for the years ended April 30, 2023 and 2022, respectively and resulted primarily from foreign currency transaction net losses offset by interest income.
Insights developed using Lumin can provide the basis for biomarker hypotheses, reveal potential mechanisms of therapeutic resistance, and guide the direction of additional preclinical evaluations. Our drug discovery and development business leverages the computational and experimental capabilities within our platforms.
Insights developed using Lumin can provide the basis for biomarker hypotheses, reveal potential mechanisms of therapeutic resistance, and guide the direction of additional preclinical evaluations. During fiscal 2023, we recorded an asset impairment related to Lumin software development costs of $807,000. Our drug discovery and development business leverages the computational and experimental capabilities within our platforms.
Our commercial strategy for the validated targets and therapeutics established from this business is wide-ranging and still being developed. It will depend on many factors, and will be specific for each target or therapeutic area identified. Any expenses associated with this part of our business are research and development and are expensed as incurred.
It will depend on many factors, and will be specific for each target or therapeutic area identified. Any expenses associated with this part of our business are research and development and are expensed as incurred.
Results of Operations The following table summarizes our operating results for the periods presented below (dollars in thousands): For the Years Ended April 30, 2022 % of Revenue 2021 % of Revenue % Change Oncology services revenue $ 49,109 100.0 % $ 41,040 100.0 % 19.7 % Costs and operating expenses: Cost of oncology services 23,632 48.1 21,446 52.3 10.2 Research and development 9,374 19.1 7,196 17.5 30.3 Sales and marketing 6,379 13.0 5,520 13.5 15.6 General and administrative 9,117 18.6 6,512 15.9 40.0 Total costs and operating expenses 48,502 98.8 40,674 99.2 19.2 Income from operations $ 607 1.2 % $ 366 0.8 % 65.8 % Oncology Services Revenue Oncology services revenue, which is primarily derived from research services, was $49.1 million and $41.0 million, for the years ended April 30, 2022 and 2021, respectively, an increase of $8.1 million, or 19.7%.
Results of Operations The following table summarizes our operating results for the periods presented below (dollars in thousands): For the Years Ended April 30, 2023 % of Revenue 2022 % of Revenue % Change Oncology services revenue $ 53,870 100.0 % $ 49,109 100.0 % 9.7 % Costs and operating expenses: Cost of oncology services 29,532 54.8 23,632 48.1 25.0 Research and development 11,545 21.4 9,374 19.1 23.2 Sales and marketing 7,002 13.0 6,379 13.0 9.8 General and administrative 10,240 19.0 9,117 18.6 12.3 Asset Impairment 807 1.5 — — 100.0 Total costs and operating expenses 59,126 109.7 48,502 98.8 21.9 (Loss) income from operations $ (5,256) (9.7) % $ 607 1.2 % (965.9) % Oncology Services Revenue Oncology services revenue, which is primarily derived from research services, was $53.9 million and $49.1 million, for the years ended April 30, 2023 and 2022, respectively, an increase of $4.8 million, or 9.7%.
Cash Flows The following discussion relates to the major components of our cash flows: Cash Flows from Operating Activities Net cash provided by (used in) operating activities was $6.5 million and ($1.7) million for the years ended April 30, 2022 and 2021, respectively.
Cash Flows The following discussion relates to the major components of our cash flows: 17 Cash Flows from Operating Activities Net cash provided by operating activities was $4.0 million and $6.5 million for the years ended April 30, 2023 and 2022, respectively. The decrease in cash provided by operations resulted primarily from the net loss realized in fiscal 2023.
We then assess the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent that recovery is not likely or there is insufficient operating history, a valuation allowance is established.
These differences result in deferred tax assets, which include tax loss carry-forwards, and liabilities, which are included within the consolidated balance sheet. We then assess the likelihood that deferred tax assets will be recovered from future taxable income, and to the extent that recovery is not likely or there is insufficient operating history, a valuation allowance is established.
To the extent a valuation allowance is established or increased in a period, we include an expense within the tax provision of the consolidated statements of operations. As of April 30, 2022 and 2021, we have established a full valuation allowance for all deferred tax assets.
To the extent a valuation allowance is established or increased in a period, we include an expense within the tax provision of the consolidated statements of operations.
This process involves estimating the actual current tax liability together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue, depreciation on property, plant and equipment, goodwill and losses for tax and accounting purposes. These differences result in deferred tax assets, which include tax loss carry-forwards, and liabilities, which are included within the consolidated balance sheet.
In preparing the consolidated financial statements, we are required to estimate income taxes in each of the jurisdictions in which we operate. This process involves estimating the actual current tax liability together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue, depreciation on property, plant and equipment, goodwill and losses for tax and accounting purposes.
By performing studies to predict the efficacy of oncology drugs, our Platform facilitates drug discovery with lower costs and increased speed of drug development as well as increased adoption of existing drugs. As part of our growth strategy, we launched Lumin Bioinformatics ("Lumin"), a new oncology data-driven software program, during fiscal 2021.
By performing studies to predict the efficacy of oncology drugs, our Platform 15 facilitates drug discovery with lower costs and increased speed of drug development as well as increased adoption of existing drugs. We also sell Lumin Bioinformatics ("Lumin"), an oncology data-driven software program which contains comprehensive information derived from our research services and clinical studies.
Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets. In preparing the consolidated financial statements, we are required to estimate income taxes in each of the jurisdictions in which we operate.
Accounting for Income Taxes We use the asset and liability method to account for income taxes. Significant management judgment is required in determining the provision for income taxes, deferred tax assets and liabilities and any valuation allowance recorded against net deferred tax assets.
Cash Flows from Investing Activities Net cash used in investing activities was $2.4 million and $3.2 million for the years ended April 30, 2022 and 2021, respectively. The cash used was for the investment in lab and computer equipment and software development.
The cash used was for the investment in lab and computer equipment. Cash Flows from Financing Activities Net cash provided by financing activities was $11,000 and $207,000 for the years ended April 30, 2023 and 2022, respectively.
As of April 30, 2022 and 2021, we recognized a liability for uncertain tax positions on the balance sheet relative to foreign operations in the amount of $181,000. We do not anticipate any significant unrecognized tax benefits will be recorded during the next 12 months. Any interest or penalties related to unrecognized tax benefits is recognized in income tax expense.
We do not anticipate any significant unrecognized tax benefits will be recorded during the next 12 months. Any interest or penalties related to unrecognized tax benefits is recognized in income tax expense.
Our discovery strategy utilizes our rich and unique Datacenter, coupled with artificial intelligence and other advanced computational analytics, to identify novel therapeutic targets.
Our discovery strategy utilizes our rich and unique Datacenter, coupled with artificial intelligence and other advanced computational analytics, to identify novel therapeutic targets. We then employ the use of our proprietary experimental platforms to rapidly validate these targets for further drug development efforts.
If the carrying value is determined not to be recoverable from future revenues, an impairment loss is recognized equal to the amount by which the carrying amount exceeds the future revenues. Accounting for Income Taxes We use the asset and liability method to account for income taxes.
If the carrying value is determined not to be recoverable from future revenues, an impairment loss is recognized equal to the amount by which the carrying amount exceeds the future revenues. During fiscal 2023, we recorded an asset impairment charge related to software development costs of $807,000.
The Company has not accrued penalties or interest during the year ended April 30, 2022. Accounting Pronouncements Being Evaluated In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses". This update requires immediate recognition of management’s estimates of current expected credit losses ("CECL"). Under the prior model, losses were recognized only as they were incurred.
The Company has not accrued penalties or interest during the year ended April 30, 2023 as we believe the liability for uncertain tax positions accurately reflects penalties and/or interest as of this date. Accounting Pronouncements Being Evaluated In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses".
Cost of Oncology Services Cost of oncology services were $23.6 million and $21.4 million for the years ended April 30, 2022 and 2021, respectively, an increase of $2.2 million or 10.2%.
Cost of Oncology Services Cost of oncology services were $29.5 million and $23.6 million for the years ended April 30, 2023 and 2022, respectively, an increase of $5.9 million or 25.0%. The increase in cost of oncology services was primarily from an increase in compensation 16 and supply expenses.
The increase was primarily due to the investments in new service capabilities and our drug discovery and development programs with the increase coming primarily from compensation and lab supply expenses. 17 Sales and Marketing Sales and marketing expense was $6.4 million and $5.5 million for the years ended April 30, 2022 and 2021, respectively, an increase of $0.9 million or 15.6%.
The increase was primarily due to the investments in new service capabilities and our drug discovery and development programs with the increase coming primarily from compensation, lab supply, and outsourced discovery expenses.
General and administrative expenses were primarily comprised of compensation, insurance, professional fees, IT, and depreciation and amortization expenses. The general and administrative expenses increase was primarily due to increases in non-cash expenses, compensation and IT expenses for data storage and to support the overall infrastructure growth of the company.
The general and administrative expenses increase was primarily due to increases in non-cash depreciation and amortization expenses.
Other income for the year ended April 30, 2021 was primarily attributable to a $75,000 gain on operating lease termination offset by foreign currency transaction losses. Liquidity and Capital Resources Our liquidity needs have typically arisen from the funding of our research and development programs and the launch of new products, working capital requirements, and other strategic initiatives.
Liquidity and Capital Resources Our liquidity needs have typically arisen from the funding of our research and development programs and the launch of new products, working capital requirements, and other strategic initiatives.
As of April 30, 2022, the Company had an accumulated deficit of approximately $72.0 million, working capital of $2.2 million and cash of $9.0 million. We believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least August 2023.
Despite our negative working capital at this date, we believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least August 2024.
Cash Flows from Financing Activities Net cash provided by financing activities was $0.2 million and $1.2 million for the years ended April 30, 2022 and 2021, respectively. Cash flows provided by financing activities was due to exercises of stock options and decreased from the prior year due to lower volume of exercises of options and warrants.
Cash flows provided by financing activities was due to exercises of stock options and decreased from the prior year due to lower volume of exercises. During fiscal 2023, cash provided by financing was offset by cash used to repurchase common stock per our stock buyback program.
We do not guarantee any third-party debt. Item 7A. Quantitative and Qualitative Disclosures About Market Risk Not applicable.
We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported results of operations or financial position. We do not guarantee any third-party debt. Item 7A. Quantitative and Qualitative Disclosures About Market Risk Not applicable.
We then employ the use of our proprietary experimental platforms to rapidly validate these targets for further drug development efforts. 16 We have a rich pipeline of targets at various stages of discovery and validation, with a select group that has progressed to therapeutic development.
We have a pipeline of targets at various stages of discovery and validation, with a select group that has progressed to early stage therapeutic development. Our commercial strategy for the validated targets and therapeutics established from this business is wide-ranging and still being developed.
The Company adopted this guidance on May 1, 2021 and it did not have an impact on its consolidated financial statements. Off-Balance Sheet Financing We have no off-balance sheet debt or similar obligations. We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported results of operations or financial position.
We are currently assessing the impact of this update on our consolidated financial statements but we do not expect the adoption of the pronouncement to have a material impact on our balance sheet or results of operations. Off-Balance Sheet Financing We have no off-balance sheet debt or similar obligations.
Gross margin was 52% for the twelve months ended April 30, 2022 compared to 48% for the twelve months ended April 30, 2021. The improvement in gross margin was the direct result of decreasing the Company’s reliance on outsourcing and leveraging revenue growth over the fixed cost component of cost of sales.
Gross margin was 45% for the twelve months ended April 30, 2023 compared to 52% for the twelve months ended April 30, 2022. The decrease in gross margin was the result of increasing costs in compensation and supplies to support revenue growth that didn't materialize as expected.
The new model is applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective for fiscal years beginning after December 15, 2022 for public entities qualifying as smaller reporting companies. Early adoption is permitted.
This update requires immediate recognition of management’s estimates of current expected credit losses ("CECL"). Under the prior model, losses were recognized only as they were incurred. The new model is applicable to all financial instruments that are not accounted for at fair value through net income. The standard is effective May 1, 2023 for the Company.
The increase was mainly due to compensation expense. Additionally, travel expense increased for our business development team as Covid-19 travel related restrictions eased. General and Administrative General and administrative expense was $9.1 million and $6.5 million for the years ended April 30, 2022 and 2021, respectively, a decrease of $2.6 million, or 40.0%.
General and Administrative General and administrative expense was $10.2 million and $9.1 million for the years ended April 30, 2023 and 2022, respectively, an increase of $1.1 million, or 12.3%. General and administrative expenses were primarily comprised of compensation, insurance, professional fees, IT, and depreciation and amortization expenses.
Removed
The increase in cost of oncology services was primarily from an increase in compensation and supply expenses resulting from the larger study sizes, and compensation expense for our SaaS platform. These increases were offset by a decrease in outsourced lab services.
Added
Sales and Marketing Sales and marketing expense was $7.0 million and $6.4 million for the years ended April 30, 2023 and 2022, respectively, an increase of $0.6 million or 9.8%.
Removed
We are currently assessing the impact of this update on our consolidated financial statements and have not yet determined the impact on our consolidated financial statements. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (ASC 740) — Simplifying the Accounting for Income Taxes.
Added
The increase was mainly due to compensation expense, driven by the continued expansion of our business development teams, and marketing initiatives, including increased conference attendance due to the easing of Covid restrictions.
Removed
ASU 2019-12 which modifies ASC 740 to simplify the accounting for income taxes. The ASU removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods.
Added
Asset Impairment During the fourth quarter of fiscal 2023, we assessed the recoverability of the Lumin capitalized software development costs by comparing the forecasted future revenues from Lumin sales, based on management’s best estimates and using appropriate assumptions and projections, to the carrying amount of the capitalized asset.
Removed
The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax 20 goodwill and allocating taxes to members of a consolidated group. ASU 2019-12 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020.
Added
Several factors were considered in this analysis, including, the decrease in Lumin revenue growth from the prior year, the deceleration of new Lumin bookings in the current year, and the strategic consideration for additional capital investment into the platform, sales team, and marketing campaigns to bolster awareness and growth.
Added
As the carrying value was determined not to be recoverable from future revenues, an impairment loss was recognized for the year ending April 30, 2023 equal to the amount by which the carrying amount exceeded the future revenues, or, its net book value at that date of $807,000. There were no impairment charges for the year ending April 30, 2022.
Added
As of April 30, 2023, the Company had an accumulated deficit of approximately $77.3 million, negative working capital of $2.3 million and cash of $10.1 million. For the twelve months ended April 30, 2023, the Company realized cash flow from operations of approximately $4.0 million.
Added
As of April 30, 2023 and 2022, we have established a full valuation allowance for all deferred tax assets. 19 As of April 30, 2023 and 2022, we recognized a liability for uncertain tax positions on the balance sheet relative to foreign operations in the amount of $181,000.

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