ANIX

Business Context and Reporting Period

Company: Anixa Biosciences, Inc. (ANIX)
Filing Type: Form 10-Q (Unaudited)
Period Ended: April 30, 2026
Business Overview: Anixa is a biotechnology company developing therapies and vaccines for oncology. Key programs include lira-cel (a CAR-T therapy for ovarian cancer developed by subsidiary Certainty Therapeutics) and vaccines for breast and ovarian cancer. The company has no commercial revenue and relies on equity financing and collaborations.

Key Financial Metrics

Note: The company holds no long-term debt. Total liabilities consist primarily of accrued expenses and operating lease liabilities.

Material Changes vs. Prior Period

• Expense Reduction: Total operating expenses decreased by approximately $1.0 million (16%) to $5.36 million for the six months ended April 30, 2026, compared to $6.39 million in the prior year period. This was driven by lower stock-based compensation and reduced employee compensation costs.
• Research & Development (R&D): R&D expenses declined by $514,000 to $2.36 million. The decrease was attributed to lower stock-based compensation ($195,000) and reduced costs for the breast cancer vaccine and CAR-T programs, partially offset by increased legal fees.
• General & Administrative (G&A): G&A expenses decreased by $512,000 to $3.00 million, primarily due to reductions in stock-based compensation and patent-related costs.
• Interest Income: Interest income dropped by $121,000 to $242,000 due to lower interest rates and a reduced balance of short-term investments.
• Liquidity: Total cash and short-term investments decreased by approximately $1.49 million to $13.69 million, despite raising $2.87 million net from an at-the-market equity offering during the period.

Outlook, Risks, and Management Commentary

• Clinical Progress:
  • lira-cel (Ovarian Cancer): Phase 1 dose-escalation trial is ongoing. Thirteen patients have been treated across four dose cohorts. The treatment has been well-tolerated, with anecdotal signs of efficacy including extended survival (one patient survived 28 months; four survived one year or more).
  • Breast Cancer Vaccine: Phase 1 trial enrollment completed in June 2025, with final data presented in December 2025. Primary endpoints were met, and immune responses were observed in 74% of subjects. The company is preparing to initiate a Phase 2 neo-adjuvant trial.
  • Ovarian Cancer Vaccine: Pre-clinical development is supported by the NCI's PREVENT program, requiring no material financial expenditure by Anixa.
• Liquidity & Capital Resources: Management believes existing cash and investments ($13.69 million) are sufficient to fund operations for at least the next 12 months. The company maintains an effective at-the-market equity program with approximately $97 million remaining capacity.
• Risks: The company has no revenue from therapeutics and expects none in the near term. Future profitability depends on licensing technologies to large pharmaceutical companies, which is uncertain and dependent on clinical trial results. The company has a history of losses and an accumulated deficit of $256.8 million.

Investor Verification Checklist

• Cash Runway: Verify the sufficiency of the $13.69 million cash balance against the projected burn rate for the upcoming Phase 2 breast cancer vaccine trial and continued CAR-T development.
• Equity Dilution: Monitor the utilization of the at-the-market offering program, as the company raised $2.87 million in the last six months to fund operations.
• Clinical Milestones: Confirm the timeline and regulatory status for the initiation of the Phase 2 breast cancer vaccine trial.
• Noncontrolling Interest: Note the noncontrolling interest of approximately $1.25 million related to The Wistar Institute's stake in the Certainty Therapeutics subsidiary.
• Stock-Based Compensation: Review the impact of stock-based compensation ($1.46 million for the six months) on the reported net loss versus the non-GAAP cash burn.