# Champions Oncology, Inc.: Form 10-Q for the period ended Oct 31, 2025

- Company: [Champions Oncology, Inc.](/companies/csbr.md) (CIK 771856)
- Form: 10-Q
- Filed: 2025-12-15
- Accepted by EDGAR: Dec 15, 2025, 21:59 ET
- Period: 2025-10-31
- Accession: 0001628280-25-057082
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/771856/000162828025057082/csbr-20251031.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/771856/000162828025057082/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-10-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-08-01 to 2025-10-31 | $15.0m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months, 2025-05-01 to 2025-10-31 | $29.0m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-08-01 to 2025-10-31 | $7.3m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 6 months, 2025-05-01 to 2025-10-31 | $15.3m | us-gaap:CostOfGoodsAndServicesSold |
| Research and development | 3 months, 2025-08-01 to 2025-10-31 | $2.6m | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 6 months, 2025-05-01 to 2025-10-31 | $4.7m | us-gaap:ResearchAndDevelopmentExpense |
| Operating income | 3 months, 2025-08-01 to 2025-10-31 | $185.0k | us-gaap:OperatingIncomeLoss |
| Operating income | 6 months, 2025-05-01 to 2025-10-31 | −$342.0k | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-08-01 to 2025-10-31 | $18.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months, 2025-05-01 to 2025-10-31 | $33.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-08-01 to 2025-10-31 | $268.0k | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2025-05-01 to 2025-10-31 | −$169.0k | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-08-01 to 2025-10-31 | $0.02 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months, 2025-05-01 to 2025-10-31 | −$0.01 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-08-01 to 2025-10-31 | $0.02 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2025-05-01 to 2025-10-31 | −$0.01 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-08-01 to 2025-10-31 | 14,457,837 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months, 2025-05-01 to 2025-10-31 | 13,758,715 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months, 2025-05-01 to 2025-10-31 | −$1.1m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months, 2025-05-01 to 2025-10-31 | $288.0k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2025-10-31 | $8.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-10-31 | $21.3m | us-gaap:AssetsCurrent |
| Total assets | at 2025-10-31 | $30.2m | us-gaap:Assets |
| Current liabilities | at 2025-10-31 | $22.1m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-10-31 | $25.9m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-10-31 | $4.2m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 18,413 characters.

*The following discussion of our historical results of operations and our liquidity and capital resources should be read in conjunction with the condensed consolidated financial statements and related notes that appear elsewhere in this Report and our 2025 Annual Report.*

### Forward-Looking Statements

This Report contains certain “forward-looking statements,” which include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources. These forward-looking statements include, without limitation, statements regarding: proposed new programs; expectations that regulatory developments or other matters will not have a material adverse effect on our financial position, results of operations, or liquidity; statements concerning projections, predictions, expectations, estimates, or forecasts as to our business, financial and operational results, and future economic performance; and statements of management’s goals and objectives and other similar expressions concerning matters that are not historical facts. Words such as “may,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar expressions, as well as statements in future tense, identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.

Forward-looking statements speak only as of the date the statements are made. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to, those described in “Risk Factors” in Part I, Item 1A of our 2025 Annual Report, as updated in our subsequent reports filed with the SEC, including any updates found in Part II, Item 1A of this or other reports on Form 10-Q, if any. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

### Overview and Recent Developments

We are a technology-enabled research organization engaged in creating transformative technology solutions to be utilized in drug discovery and development. Our research center consists of a comprehensive set of computational and experimental research platforms. Our pharmacology, biomarker, and data platforms are designed to facilitate drug discovery and development at lower costs and increased speeds. 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 studies include in vivo studies that rely on implanting multiple tumors from our TumorBank in mice and testing the therapy of interest on these tumors. Studies may also include bioinformatics analysis that reveal the differences in the genetic signatures of the tumors that responded to a therapy as compared to the tumors that did not respond. Additionally, we provide computational or experimental support to identify novel therapeutic targets, select appropriate patient populations for clinical evaluation, identify potential therapeutic combination strategies, and develop biomarker hypothesis of sensitivity or resistance. These studies include the use of our in vivo, ex vivo, analytical and computational platforms.

We are engaged in the development and sale of advanced technology solutions and products to personalize the development and use of oncology drugs through our Translational Oncology Solutions ("TOS"). This technology ranges from computational-based discovery platforms, unique oncology software solutions, and innovative and proprietary experimental tools such as in vivo, ex vivo and biomarker platforms. Utilizing our TumorGraft Technology Platform (the "Platform"), a comprehensive bank of unique, well characterized Patient Derived Xenograft ("PDX") models, we provide select services to pharmaceutical and biotechnology companies seeking personalized approaches to drug development. 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.

We offer access to certain PDX model data via licensing agreements. As our Platform has been expanded over time with the collection of models and the enhancement of their characterization, we have developed a robust multi-omic dataset with substantial potential for both drug discovery and development. This dataset serves as a vital resource for both our pharmaceutical and biotechnology customer who gain access to model-specific data and further their research via licensed access.

We also offer Lumin Bioinformatics ("Lumin"), an oncology data-driven Software as a Service ("SaaS") program. Our Lumin software contains comprehensive information derived from our research services and clinical studies. Lumin leverages our large Datacenter coupled with analytics and artificial intelligence to provide a robust tool for computational cancer research. 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. 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 validate these targets for further drug development efforts.

We have a pipeline of targets at various stages of discovery and validation, with a select group that has progressed to therapeutic development. 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. All expenses associated with this part of our business are research and development and are expensed as incurred.

We regularly evaluate strategic options to create additional value from our drug discovery business, which may include, but are not limited to, potential spin-out transactions or capital raises.

### 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. 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 six months ended October 31, 2025 and 2024, the Company had a net loss of $230,000 and net income of $2.0 million, respectively. As of October 31, 2025, the Company had an accumulated deficit of approximately $80.1 million, negative working capital of $809,000 and cash of $8.5 million. For the six months ended October 31, 2025, the Company used cash flow in operations of approximately $1.1 million. Despite our negative working capital at this date and cash used in operations for the period, we believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least December 2026. Should the Company be required to raise additional capital, there can be no assurance that management would be successful in raising such capital on terms acceptable to us, if at all.

### Operating Results

The following table summarizes our operating results for the periods presented below (dollars in thousands):

|  | For the Three Months Ended October 31, 2025 | % of Revenue | 2024 | % of Revenue | % Change |
| --- | ---: | ---: | ---: | ---: | ---: |
| Oncology revenue | $15,035 | 100.0% | $13,489 | 100.0% | 11.5% |
| **Costs and operating expenses:** |  |  |  |  |  |
| Cost of oncology revenue | 7,262 | 48.3 | 7,428 | 55.1 | (2.2) |
| Research and development | 2,616 | 17.4 | 1,689 | 12.5 | 54.9 |
| Sales and marketing | 1,998 | 13.3 | 1,751 | 13.0 | 14.1 |
| General and administrative | 2,974 | 19.8 | 1,889 | 14.0 | 57.4 |
| Total costs and operating expenses | 14,850 | 98.8 | 12,757 | 94.6 | 16.4 |
| Income from operations | $185 | 1.2% | $732 | 5.4% | (74.7)% |

|  | For the Six Months Ended October 31, 2025 | % of Revenue | 2024 | % of Revenue | % Change |
| --- | ---: | ---: | ---: | ---: | ---: |
| Oncology revenue | $29,030 | 100.0% | $27,550 | 100.0% | 5.4% |
| **Costs and operating expenses:** |  |  |  |  |  |
| Cost of oncology revenue | 15,257 | 52.6 | 14,500 | 52.6 | 5.2 |
| Research and development | 4,698 | 16.2 | 3,143 | 11.4 | 49.5 |
| Sales and marketing | 3,853 | 13.3 | 3,430 | 12.5 | 12.3 |
| General and administrative | 5,544 | 19.1 | 4,416 | 16.0 | 25.5 |
| Loss on disposal of equipment | 20 | 0.1 | — | — | 100.0 |
| Total costs and operating expenses | 29,372 | 101.3 | 25,489 | 92.5 | 15.2 |
| Income (loss) from operations | $(342) | (1.3) | $2,061 | 7.5% | (116.6)% |

### Oncology Revenue

Oncology revenue, primarily derived from research services, totaled $15.0 million for the three months ended October 31, 2025, compared to $13.5 million for the same period in 2024, an increase of $1.5 million or 11.5%. Oncology revenue, primarily derived from research services, totaled $29.0 million for the six months ended October 31, 2025, compared to $27.6 million for the same period in 2024, an increase of $1.5 million or 5.4%.

Our revenues are comprised of the following:

| (in 000s) | Three Months Ended October 31, 2025 | 2024 | Six Months Ended October 31, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Pharmacology services | $14,515 | $12,498 | $27,745 | $25,567 |
| TOS license revenue | 157 | — | 468 | — |
| Other TOS revenue | 363 | 991 | 817 | 1,983 |
| Total oncology revenue | $15,035 | $13,489 | $29,030 | $27,550 |

#### Pharmacology Services

- Revenue increased for both the three- and six-month periods ended October 31, 2025 compared to the same periods in 2024, primarily due to an improvement in the bookings-to-revenue conversion rate. Bookings, which represent the total value of signed statements of work, convert to revenue over time as the Company fulfills its contractual performance obligations. Fewer study cancellations during the current periods allowed a larger portion of previously contracted work to convert to revenue. Management did not identify any other individually material factors affecting the year-over-year change.

#### TOS Data License Revenue

- Revenue for both the three and six months ending October 31, 2025 resulted from the sale of data licenses. There was no data license revenue for the three or six months ended October 31, 2024.

#### Other TOS Revenue

- Other TOS Revenue includes additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry and SaaS provided via Lumin.
- Our flow cytometry services revenue decreased approximately $555,000 for the three months ended October 31, 2025, as compared to 2024, and $1.1 million for the six months ended October 31, 2025, as compared to 2024, due to a decline in clinical bookings and a de-emphasis on this business unit. The decrease in Other TOS Revenue was also a result of a decrease in our SaaS revenues for both the three and six month periods ending October 31, 2025 as compared with 2024.

### Cost of Oncology Revenue

For the three months ended October 31, 2025, cost of oncology revenue decreased $166,000 or 2.2% to $7.3 million, as compared to $7.4 million in the prior year period. The decrease was primarily driven by lower outsourced lab service costs. For the six months ended October 31, 2025, cost of oncology revenue increased $757,000 or 5.2% to $15.3 million, as compared to $14.5 million in the prior year period. The increase resulted primarily from higher mice costs resulting from higher revenue and outsourced lab services, including radiolabeling work. Management anticipates that as this radiolabeling work transitions into Champions’ labs over the coming quarters it will result in an improvement in the overall cost structure which will reduce cost of oncology revenue.

### Research and Development

Research and development expense for the three months ended October 31, 2025 and 2024 were $2.6 million and $1.7 million, respectively, an increase of approximately $927,000 or 54.9%. Research and development expense for the six months ended October 31, 2025 and 2024 were $4.7 million and $3.1 million, respectively, an increase of approximately $1.6 million or 49.5%.

The significant components of research and development expense are comprised of the following:

| (in 000s) | Three Months Ended October 31, 2025 | 2024 | Six Months Ended October 31, 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Compensation | $839 | $713 | $1,652 | $1,318 |
| Laboratory Supplies | 658 | 502 | 1,295 | 992 |
| Mice Costs | 81 | 179 | 100 | 278 |
| Outside Services | 768 | 93 | 1,216 | 151 |

Research and development expense increased for both the three- and six-month periods ended October 31, 2025 compared to the prior-year periods. The increases were primarily driven by higher outsourced laboratory service costs, increased compensation expense, and greater use of laboratory supplies as the Company expanded its investment in the development of its data licensing platform and in Corellia, the Company’s wholly owned subsidiary focused on target discovery. Management did not identify any other individually material factors contributing to the period-over-period changes.

### Sales and Marketing

Sales and marketing expenses were $2.0 million for the three months ended October 31, 2025, compared to $1.8 million for the same period in 2024, an increase of $247,000 or 14.1%. For the six months ended October 31, 2025 sales and marketing expenses were $3.9 million, compared to $3.4 million for the prior year period, an increase of $423,000 or 12.3%. The increases for both the three and six month periods were primarily driven by higher compensation expense associated with expanding the commercial organization to support the growth of the Company’s data licensing business.

### General and Administrative

General and administrative expenses for the three months ended October 31, 2025 and 2024 were $3.0 million and $1.9 million, respectively, an increase of $1.1 million, or 57.4%. General and administrative expenses for the six months ended October 31, 2025 and 2024 were $5.5 million and $4.4 million, respectively, an increase of $1.1 million, or 25.5%. General and administrative expenses are primarily comprised of compensation, insurance, professional fees, IT and depreciation and amortization expenses. The increase for both the three and six month periods was primarily the result of an increase in compensation related to executive leadership changes and IT infrastructure expenses to support our investment in our data business.

### Cash Flows

The following discussion relates to the major components of our cash flows:

#### Cash Flows from Operating Activities

For the six months ended October 31, 2025, net cash used in operating activities was $1.1 million. The use of cash was primarily driven by a decrease in deferred revenue, which reflects lower upfront billings. For the six months ended October 31, 2024, net cash provided by operating activities was $28,000. The cash provided by operating activities was primarily due to income from operations offset by changes in our working capital accounts in the ordinary course of business.

#### Cash Flows from Investing Activities

Net cash used in investing activities for the six months ended October 31, 2025 and 2024 was approximately $288,000 and $94,000. Cash used in investing activities was for the purchases of lab and computer equipment.

#### Cash Flows from Financing Activities

Net cash provided by financing activities was $154,000 for the six months ended October 31, 2025 resulting from proceeds received for stock options exercises, partially offset by financing lease payments. Net cash provided by financing activities was $202,000 for the six months ended October 31, 2024, resulting from proceeds received for stock options exercises, partially offset by financing lease payments.

### Critical Accounting Estimates and Policies

There have been no changes to our critical accounting policies during the six months ended October 31, 2025. Critical accounting policies and the significant estimates made in accordance with such policies are regularly discussed with our Audit Committee. Those policies are discussed under “Critical Accounting Policies” in “Part II. Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” as well as in our Condensed Consolidated Financial Statements and the footnotes thereto, each included in our 2025 Annual Report.

### 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 do not guarantee any third-party debt.

## Market risk

As filed, 163 characters.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item.

## Controls and procedures

As filed, 2,657 characters.

### Evaluation of Disclosure Controls and Procedures

It is management’s responsibility to establish and maintain “disclosure controls and procedures” as such term is defined in Rule 13a-15(e) under the Exchange Act. Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. In designing and evaluating our disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily is required to apply its judgment in evaluating the relationship between the benefit of desired controls and procedures and the cost of implementing new controls and procedures.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

Our management has assessed the effectiveness of our internal control over financial reporting as of October 31, 2025. Based on that assessment, our management, including our Chief Executive Officer and our Chief Financial Officer, have concluded that our disclosure controls and procedures were effective as of October 31, 2025 at the reasonable assurance level in ensuring that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure. Further, management concluded that our condensed consolidated financial statements in this Report present fairly, in all material respects, the Company’s financial position, results of operations and cash flows as of the dates, and for the periods presented, in conformity with GAAP.

### Changes in Internal Control Over Financial Reporting

No changes in our internal control over financial reporting occurred during the fiscal quarter ended October 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 1,463 characters.

As a smaller reporting company under Rule 12-2 of the Exchange Act, we are not required to include risk factors in this Report. However, as of the date of this Report, there have been no material changes with respect to those risk factors previously disclosed in our 2025 Annual Report. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risks could arise that may also affect our business. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.

### Factors That May Adversely Affect our Results of Operations

Our results of operations may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond our control. Our business could be impacted by, among other things, downturns in the financial markets or in economic conditions, increases in oil prices, inflation, increases in interest rates, supply chain disruptions, declines in consumer confidence and spending, the effects of a resurgence or emergence of pandemic-like viruses, and geopolitical instability, such as the military conflicts in Ukraine and the Middle East. We cannot at this time fully predict the likelihood of one or more of the above events, their duration, or magnitude or the extent to which they may negatively impact our business.

Filed Dec 15, 2025.
Source: SEC EDGAR, the filing index for accession 0001628280-25-057082. Last ingested by Listed: Oct 24, 2026, 14:56 ET. No prices; not investment advice.