Company: ANIX
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013000
Chunk: 66

Company: Anixa Biosciences Inc
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 8
Chunk 66
---
 Treasury note with a term equal to the expected term of the underlying grants. We made the dividend yield
assumption based on our history of not paying dividends and our expectation not to pay dividends in the future.

We
will reconsider use of the Black-Scholes pricing model and the Monte Carlo Simulation if additional information becomes available in
the future that indicates another model would be more appropriate. If factors change and we employ different assumptions in future periods,
the compensation expense that we record may differ significantly from what we have recorded in the current period.

Research
and Development Expenses

We
recognize research and development expenses as incurred. Advance payments for future research and development activities are deferred
and expensed as the services are performed. We recognize our preclinical studies and clinical trial expenses based on the services performed
pursuant to contracts with research institutions, clinical research organizations (“CROs”), clinical manufacturing organizations
(“CMOs”), and other parties that conduct and manage various stages of research and development activities on our behalf.
Fees for such services are recognized based on management’s estimates after considering the activities and tasks completed by each
service provider in a given period, the time period over which services are expected to be performed, and the level of effort expended
in each reporting period.

At
each balance sheet date, management estimates prepaid and accrued research and development costs by discussing progress or stage of completion
of activities with internal personnel and external service providers, and comparing this information to payments made, invoices received,
and the agreed-upon contractual fee to be paid for such services in the applicable contract or statements of work.

In
addition, we allocate certain internal compensation costs to research and development expenses based on management’s estimates
of each employee’s time and effort expended.

EFFECT
OF RECENTLY ISSUED PRONOUNCEMENTS

We
discuss the effect of recently issued pronouncements in Note 7 of the condensed consolidated financial statements, included elsewhere
in this Report.

Item
3. Quantitative and Qualitative Disclosures About Market Risk. Not applicable.

Item
4. Controls and Procedures.

We
carried out an evaluation, under the supervision and with the participation of our management including our Chief Executive Officer and
our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule
13(a)-15(b) of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that
our disclosure controls and procedures are effective as of the