csbr-20251031

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended October 31, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from to

Commission file number 001-11504

CHAMPIONS ONCOLOGY, INC.

(Exact name of registrant as defined in its charter)


Delaware			52-1401755
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

One University Plaza, Suite 307			07601
Hackensack, New Jersey			(Zip Code)
(Address of principal executive offices)

(201) 808-8400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

CSBR

The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act:

None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated filer þ	Smaller reporting company ☑
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of common stock of the Registrant outstanding as of December 11, 2025 was 13,886,326.

DOCUMENTS INCORPORATED BY REFERENCE - None

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2025


	PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements.
	Condensed Consolidated Balance Sheets as of October 31, 2025 (unaudited) and April 30, 2025	4
	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended October 31, 2025 and 2024	5
	Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the Six Months Ended October 31, 2025 and 2024	6
	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended October 31, 2025 and 2024	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4.	Controls and Procedures	25

	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

CHAMPIONS ONCOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in Thousands)


	October 31, 2025		April 30, 2025
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	8,516	$	9,785
Accounts receivable, net	11,539		11,204
Prepaid expenses and other current assets	1,277		1,369

Total current assets	21,332		22,358


Operating lease right-of-use assets, net	4,348		5,080
Property and equipment, net	3,951		4,375
Other long-term assets	196		196
Goodwill	335		335

Total assets	$	30,162	$	32,344

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	5,993	$	4,248
Accrued liabilities	2,188		2,556

Current portion of operating lease liabilities	1,525		1,471
Other current liability	97		135
Deferred revenue	12,338		15,443

Total current liabilities	22,141		23,853

Non-current operating lease liabilities	3,744		4,634

Other non-current liabilities	46		85

Total liabilities	$	25,931	$	28,572

Stockholders’ equity:
Common stock, $.001 par value; 200,000,000 shares authorized; 14,006,659 and 13,897,503 shares issued; and 13,886,326 and 13,777,170 outstanding as of July 31, 2025 and April 30, 2025, respectively	14		14
Treasury stock, at cost	(708)		(708)
Additional paid-in capital	84,985		84,358
Accumulated deficit	(80,121)		(79,892)

Total stockholders’ equity attributable to Champions Oncology, Inc.	4,170		3,772

Noncontrolling interest	61		—

Total stockholders' equity	4,231		3,772

Total liabilities and stockholders’ equity	$	30,162	$	32,344

The accompanying notes are an integral part of these condensed consolidated financial statements.

CHAMPIONS ONCOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Amounts)


	Three Months Ended October 31,				Six Months Ended October 31,
	2025		2024		2025		2024

Oncology revenue	$	15,035	$	13,489	$	29,030	$	27,550

Costs and operating expenses:
Cost of oncology revenue	7,262		7,428		15,257		14,500
Research and development	2,616		1,689		4,698		3,143
Sales and marketing	1,998		1,751		3,853		3,430
General and administrative	2,974		1,889		5,544		4,416
Loss on disposal of equipment	—		—		20		—

Total costs and operating expenses	14,850		12,757		29,372		25,489

Income (loss) from operations	185		732		(342)		2,061


Other income, net	70		7		145		11

Income (loss) before provision for income taxes	255		739		(197)		2,072
Provision for income taxes	18		11		33		31

Net income (loss)	$	237	$	728	$	(230)	$	2,041

Less: net loss attributable to noncontrolling interest	31		—		61		—

Net income (loss) attributable to Company's common shares	$	268	$	728	$	(169)	$	2,041

Net income (loss) per common share outstanding
basic	$	0.02	$	0.05	$	(0.01)	$	0.15
diluted	$	0.02	$	0.05	$	(0.01)	$	0.15

Weighted average common shares outstanding
basic	13,791,913		13,593,766		13,758,715		13,593,766
and diluted	14,457,837		14,016,953		13,758,715		14,029,666

The accompanying notes are an integral part of these condensed consolidated financial statements.

CHAMPIONS ONCOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY)

(Dollars in Thousands)


	Common Stock			Treasury Stock			Additional Paid-in Capital		Non-Controlling Interest		Accumulated Deficit		Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balance April 30, 2025	13,897,503	$	14	120,333	$	(708)	$	84,358	$	—	$	(79,892)	$	3,772
Stock-based compensation	—	—		—	—		178		30		—		208



Issuance of common stock on exercise of stock options	11,251	—		—	—		24		—		—		24



Net loss	—	—		—	—		—		—		(466)		(466)
Balance July 31, 2025	13,908,754	$	14	120,333	$	(708)	$	84,560	$	30	$	(80,358)	$	3,538
Stock-based compensation	—	—		—	—		218		31		—		249



Issuance of common stock on exercise of stock options	97,905	—		—	—		207		—		—		207



Net income	—	—		—	—		—		—		237		237
Balance October 31, 2025	14,006,659	$	14	120,333	$	(708)	$	84,985	61		$	(80,121)	$	4,231



	Common Stock			Treasury Stock			Additional Paid-in Capital		Accumulated Deficit		Total Stockholders' Equity/ (Deficiency)
	Shares	Amount		Shares	Amount
Balance April 30, 2024	13,714,099	$	14	120,333	$	(708)	$	83,384	$	(84,593)	$	(1,903)
Stock-based compensation	—	—		—	—		258		—		258



Net income	—	—		—	—		—		1,313		1,313
Balance July 31, 2024	13,714,099	$	14	120,333	$	(708)	$	83,642	$	(83,280)	$	(332)
Stock-based compensation	—	—		—	—		9		—		9
Issuance of common stock on exercise of stock options	105,137			—	—		276		—		276

Net income	—	—		—	—		—		728		728
Balance October 31, 2024	13,819,236	$	14	120,333	(708)		$	83,927	$	(82,552)	$	681

The accompanying notes are an integral part of these condensed consolidated financial statements.

CHAMPIONS ONCOLOGY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in Thousands)


	Six Months Ended October 31,
	2025		2024
Operating activities:
Net (loss) income	$	(230)	$	2,041

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Stock-based compensation	457		267

Depreciation and amortization expense	715		848
Loss on disposal of equipment	20		—

Gain on termination of operating lease	(9)		—
Operating lease right-of use assets	734		583
Allowance and estimated credit losses	(16)		(280)


Changes in operating assets and liabilities:
Accounts receivable	(319)		(664)
Prepaid expenses and other current assets	92		635

Accounts payable	1,722		(947)
Accrued liabilities	(367)		74



Operating lease liabilities	(829)		(655)
Deferred revenue	(3,105)		(1,874)

Net cash (used in) provided by operating activities	(1,135)		28

Investing activities:
Purchase of property and equipment	(288)		(94)




Net cash used in investing activities	(288)		(94)

Financing activities:

Proceeds from exercise of options	231		276
Finance lease payments	(77)		(74)







Net cash provided by financing activities	154		202

(Decrease) Increase in cash	(1,269)		136
Cash at beginning of period	9,785		2,618

Cash at end of period	$	8,516	$	2,754

Non-cash investing activities:




Equipment purchased in accounts payable	$	23	$	—

The accompanying notes are an integral part of these condensed consolidated financial statements.

CHAMPIONS ONCOLOGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Organization, Use of Estimates and Basis of Presentation

Champions Oncology, Inc. (the "Company", or "we", or "our") is engaged in drug discovery and development through data-driven research strategies and innovative pharmacology, biomarker and data platforms. The Company’s TumorGraft Technology Platform (the "Platform"), a comprehensive bank of unique, well characterized "Patient Derived XenoGrafts" (PDX) models, is an approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. The Company provides a technology platform to pharmaceutical and biotechnology companies using proprietary TumorGraft studies, which the Company believes may be predictive of how drugs may perform in clinical settings. Utilizing the Platform, the Company offers multiple services to pharmaceutical and biotechnology companies seeking personalized approaches to drug development. By performing studies to predict the efficacy of oncology drugs, our Platform is designed to facilitate drug discovery with lower costs and increased speed of drug development as well as increased adoption of existing drugs.

The Company has four operating subsidiaries: Champions Oncology (Israel), Limited, Champions Oncology U.K. Limited, Champions Oncology, S.R.L. (Italy), and Corellia A.I. Inc. ("Corellia"). For the three and six months ended October 31, 2025 and 2024, there were no revenues earned by these subsidiaries.

The Company’s foreign subsidiaries' functional currency is the U.S. dollar. Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company’s international operations.

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company operates in one reportable business segment. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries in which it holds a controlling financial interest. Intercompany transactions and accounts have been eliminated. Non-controlling interests represent the portion of the equity in consolidated subsidiaries not attributable to the company. The non-controlling interests' share of the net assets, net income, and comprehensive income is separately presented in the condensed consolidated financial statements where applicable.

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted. The April 30, 2025 condensed consolidated balance sheet in the accompanying interim condensed consolidated financial statements was derived from audited condensed consolidated financial statements. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual condensed consolidated financial statements for the fiscal year ended April 30, 2025, as filed in the Company's Annual Report on Form 10-K with the SEC on July 23, 2025 (the "Annual Report"). In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations for a full fiscal year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Note 2. Significant Accounting Policies

The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in our 2025 Annual Report and there have been no changes to the Company's significant accounting policies during the six months ended October 31, 2025.

Liquidity

The Company's liquidity needs have typically arisen from the funding of its research and development programs and the launch of new products and services, working capital requirements, and other strategic initiatives. Historically, the Company has met these cash requirements through cash on hand, working capital management, and sales of products and services. In the past, the Company has also received proceeds from certain private placements and public offerings of our securities. For the six months ended October 31, 2025, the Company had a net loss of approximately $237,000, an accumulated deficit of approximately $80.1 million, negative working capital of $809,000 and cash of $8.5 million. Despite the negative working capital, we believe that our cash on hand, together with expected cash flows from operations, are adequate to fund operations through at least the next twelve months from the filing of this report. Should the Company be required to raise additional capital or seek to obtain financing, there can be no assurance that management would be successful in raising such capital or obtaining such financing on terms acceptable to us, if at all.

Earnings Per Share

Basic net income or loss per share is computed by dividing the net income or loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock options.

A reconciliation of net income (loss) and number of shares used in computing basic and diluted earnings per share was as follows:



	Three Months Ended October 31,				Six Months Ended October 31,
(Dollars in Thousands)	2025		2024		2025		2024
Basic net income (loss) per share computation:
Net income (loss) attributable to common stockholders	$	268	$	728	$	(169)	$	2,041
Weighted Average common shares – basic	13,791,913		13,593,766		13,758,715		13,593,766
Basic net income (loss) per share	$	0.02	$	0.05	$	(0.01)	$	0.15

Diluted net income (loss) per share computation:


Net income (loss) attributable to common stockholders	$	268	$	728	$	(169)	$	2,041

Weighted Average common shares	13,791,913		13,593,766		13,758,715		13,593,766
Incremental shares from assumed exercise of stock options	665,924		423,187		—		435,900
Adjusted weighted average share – diluted	14,457,837		14,016,953		13,758,715		14,029,666

Diluted net income (loss) per share	$	0.02	$	0.05	$	(0.01)	$	0.15

The following table reflects the total potential common stock instruments outstanding at October 31, 2025 and 2024 including those that could have an effect on the future computation of dilution per common share, had their effect not been anti-dilutive.


	October 31,
	2025	2024



Total common stock equivalents	2,420,026	907,979

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606 ("ASC 606"), Revenue from Contracts with Customers. The objective of the standard is to establish a single comprehensive revenue recognition model that is designed to create greater comparability of financial statements across industries and jurisdictions. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services.

All revenue is generated from contracts with customers. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions.

The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. 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. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract.

Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement.

The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12.

Pharmacology Study and Other Services

The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service.

The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation.

License Revenue

The Company also enters into contracts to provide access to certain PDX model data via a license agreement with payments based on a fixed-fee arrangement. The Company's current data licenses contain a single performance obligation of delivering access to the licensed data. The Company recognizes this license revenue at a point in time when the performance obligation is satisfied by delivery of the access to the data.

Incremental Costs of Obtaining a Contract (Sales Commissions)

Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred.

Accounts Receivables, Unbilled Services and Deferred Revenue

In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Unbilled services are classified as a component of accounts receivable on the balance sheet.

Accounts receivable are customer obligations due under normal trade terms. The Company extends credit to its customers based on their creditworthiness and historical data and performs ongoing credit evaluations of our customers’ financial condition. The Company maintains a provision for estimated credit losses related to accounts receivable for future expected bad debt resulting from the inability or unwillingness of our customers to make required payments. We estimate our provision for estimated credit losses based on relevant information such as historical experience, current economic conditions, and future expectations of specifically identified customer balances. This provision is adjusted as appropriate to reflect current conditions. After all attempts to collect a receivable have failed, the receivable is written off against the provision. We do not obtain collateral from our customers to secure accounts receivable.

Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue is recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the condensed consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year.

Segment Reporting

Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the Company’s chief operating decision maker (“CODM”) and relied upon when making decisions regarding resource allocation and assessing performance. When evaluating the Company’s financial performance, the CODM reviews total revenues, total expenses, and expenses by functional classification, using this information to make decisions on a Company-wide basis.

The Company currently operates in one reportable segment pertaining to oncology services. The CODM for the Company is the Chief Executive Officer (the “CEO”). The Company’s CEO reviews operating results on an aggregate basis and manages the Company’s operations on a consolidated basis for the purpose of evaluating financial performance and allocating resources. Accordingly, the Company has determined that it has a single reportable and operating segment structure. The CEO uses net income or loss as well as revenue results to allocate resources in the annual budgeting and forecasting process and also uses that measure as a basis for evaluating financial performance regularly by comparing actual results with established budgets and forecasts. All significant expense categories are presented on our condensed Consolidated Statements of Operations. The measure of segment assets is reported on the condensed Consolidated Balance Sheet as total assets. Segment revenues and expenses are identical to that disclosed in the accompanying condensed Consolidated Statements of Operations.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period’s presentation.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Improvements to Tax Disclosures” (Topic 740). The new guidance is intended to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and the income taxes paid information disclosed. The ASU is effective retrospectively for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted this ASU as of May 1, 2025 and it has been included in the required disclosures in our financial statements since.

In November 2024 and January 2025, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures" (Subtopic 220-40) "Disaggregation of Income Statement Expenses" and ASU 2025-01 "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures" (Subtopic 220-40): Clarifying the Effective Date". The new guidance is intended to enhance transparency and disclosures by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The ASU is effective for the first annual reporting periods after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material.

Note 3. Accounts Receivable, Unbilled Services and Deferred Revenue

Accounts receivable and unbilled services were as follows (in thousands):


	October 31, 2025		April 30, 2025		May 1, 2024
Accounts receivable	$	5,381	$	6,835	$	4,886
Unbilled services	7,171		5,398		5,941
Total accounts receivable and unbilled services	12,552		12,233		10,827
Less: Allowances for doubtful accounts and estimated credit losses	(1,013)		(1,029)		(1,301)
Total accounts receivable, net	$	11,539	$	11,204	$	9,526

Allowances for doubtful accounts and estimated credit losses were as follows (in thousands):



Beginning balance April 30, 2025	$	(1,029)
Plus: Provision for credit losses and doubtful accounts	(13)
Less: Reversal of provision for credit losses and doubtful accounts, net	29
Less: Reversal for amounts subsequently collected	—
Less: Write offs	—
Ending balance October 31, 2025	$	(1,013)

Deferred revenue was as follows (in thousands):


	October 31, 2025		April 30, 2025		May 1, 2024
Deferred revenue	$	12,338	$	15,443	$	12,094

Note 4. Revenue from Contracts with Customers

Oncology Revenue

The following table represents disaggregated revenue for the three and six months ended October 31, 2025 and 2024 (in thousands):


	Three Months Ended October 31,				Six Months Ended October 31,
	2025		2024		2025		2024
Pharmacology services	$	14,515	$	12,498	$	27,745	$	25,567
TOS data license revenue	157		—		468		—
Other TOS revenue	363		991		817		1,983

Total oncology revenue	$	15,035	$	13,489	$	29,030	$	27,550

Translational Oncology Solutions ("TOS") license revenue represents revenue from the sale of a license to access certain of the Company's PDX data. Other TOS revenue represents additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry services and software-as-a-service ("SaaS") provided via our Lumin Bioinformatics software ("Lumin").

Note 5. Property and Equipment

Property and equipment is recorded at cost and primarily consists of laboratory equipment, computer equipment and software, capitalized software development costs, and furniture and fixtures. Depreciation and amortization is calculated on a straight-line basis over the estimated useful lives of the various assets ranging from three to nine years. Property and equipment consisted of the following (table in thousands):


	October 31, 2025		April 30, 2025
Furniture and fixtures	$	246	$	246
Computer equipment and software	2,175		2,165
Capitalized software development costs	1,888		1,888
Laboratory equipment	11,655		11,323
Assets in progress	49		124
Leasehold improvements	317		317

Total property and equipment	16,330		16,063
Less: Accumulated depreciation and amortization	(12,379)		(11,688)

Property and equipment, net	$	3,951	$	4,375

Depreciation and amortization expense was $357,000 and $399,000 for the three months ended October 31, 2025 and 2024, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $318,000 and $362,000 for the three months ended October 31, 2025 and 2024, respectively.

Depreciation and amortization expense was $715,000 and $848,000 for the six months ended October 31, 2025 and 2024, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $638,000 and $774,000 for the six months ended October 31, 2025 and 2024, respectively.

As of October 31, 2025 and April 30, 2025, property, plant and equipment included gross assets held under finance leases of $1.0 million. Related depreciation expense was approximately $39,000 and $37,000 for the three months ended October 31, 2025 and 2024, respectively, and $77,000 and $74,000 for the six months ended October 31, 2025 and 2024, respectively.

During the three months ended July 31, 2025, the Company disposed of lab equipment with a cost of $44,000 and accumulated depreciation of $24,000 as of the disposal date, resulting in a loss on disposal of equipment recorded of $20,000. The Company did not dispose of any equipment during the three months ended October 31, 2025. During the three and six months ended October 31, 2024, the Company did not dispose of any equipment.

Finance Lease

During fiscal year 2023, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $368,000 at inception through June 2027. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. The present value of the minimum future obligations of $368,000 was calculated based on an interest rate of 3.5%. Depreciation and amortization expense related to this finance lease was $19,000 and $18,000 for the three months ended October 31, 2025 and 2024, respectively, and $38,000 and $36,000, for the six months ended October 31, 2025 and 2024, respectively. Interest on the related finance lease liability was approximately $1,100 and $1,800 for the three months ended October 31, 2025 and 2024, respectively. Interest on the related finance lease liability was approximately $2,400 and $3,700 for the six months ended October 31, 2025 and 2024, respectively.

During fiscal year 2022, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $370,000 at inception through December 2025. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. At the commencement of the commitment, the present value of the minimum future obligations of $370,000 was calculated based on an interest rate of 3.25%. Depreciation and amortization expense related to this finance lease was $20,000 and $19,000 for the three months ended October 31, 2025 and 2024, respectively, and $39,000 and $38,000, for six months ended October 31, 2025 and 2024, respectively. Interest on the related finance lease liability was less than $1,000 for the three and six months ended October 31, 2025. Interest on the related finance lease liability was less than $1,000 for the three months ended October 31, 2024 and approximately $1,900 for the six months ended October 31, 2024.

As noted above, the Company's financing leases are for laboratory equipment. The associated liabilities for these leases are classified on the condensed consolidated balance sheets within other current and other non-current liabilities. The weighted average remaining lease term of these leases is 1.40 years.

Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands):


	October 31, 2025		April 30, 2025
Financing lease net asset	$	143	$	220
Current portion of financing lease liabilities	97		60
Non-current portion of financing lease liabilities	46		160

Future minimum lease payments due each fiscal year as follows (in thousands):


2026 (remaining)	$	60
2027	80
2028	7


Total undiscounted liabilities	147
Less: Imputed interest	(4)

SEC Form 10-Q filed by Champions Oncology Inc.