Company: ANIX
Filing Date: 2025-03-11
Form Type: 10-Q
Source: 0001493152-25-009854
Chunk: 16

Company: Anixa Biosciences Inc
Filing Date: 2025-03-11
Form: 10-Q
Item: Part I, Item 8
Chunk 16
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 an unrelated party pursuant
to an operating lease that, as amended, will expire on September 30, 2027, with an option to extend the lease an additional two years.
The base rent is approximately $5,000 per month and the lease provides for annual increases of approximately 3% and an escalation clause
for increases in certain operating costs. The lease, as amended, resulted in a right-of-use asset and lease liability of approximately
$250,000 with a discount rate of 12%. Rent expense was approximately $16,000 and $17,000, respectively, for the three months ended January
31, 2025 and 2024.

For operating leases, the lease
liability is initially and subsequently measured at the present value of the unpaid lease payments. The remaining 56-month lease term
as of January 31, 2025 for the Company’s lease includes the noncancelable period of the lease and the additional two-year option
period that the Company is reasonably certain to exercise. All right-of-use assets are reviewed for impairment when indications of impairment
are present.

As of January 31, 2025, the annual
minimum future lease payments of our operating lease liability were as follows (in thousands):

 SCHEDULE OF MINIMUM LEASE PAYMENTS 

    For Years Ended October 31, 
    Operating  Leases 
  
    2025 (remaining) 
    $47 
  
    2026 
     63 
  
    2027 
     64 
  
    2028 
     66 
  
    2029 
     63 
  
    Total future minimum lease payments, undiscounted 
     303 
  
    Less: Imputed interest 
     73 
  
    Present value of future minimum lease payments 
    $230 

    Balance as of January 31, 2025: 

    Operating lease liability 
    $36 
  
    Operating lease liability, non-current 
     194 
  
    Total 
    $230 

10. COMMITMENTS AND CONTINGENCES

Litigation Matters

Other than lawsuits related to
the enforcement of our patent rights, we are not a party to any material pending legal proceedings, nor are we aware of any pending litigation
or legal proceeding against us that would have a material adverse effect upon our results of operations or financial condition.

     14 

License Commitments

As of January 31, 2025, our commitments