Company: ANIX
Filing Date: 2025-03-11
Form Type: 10-Q
Source: 0001493152-25-009854
Chunk: 15

Company: Anixa Biosciences Inc
Filing Date: 2025-03-11
Form: 10-Q
Item: Part I, Item 8
Chunk 15
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. The amendments in this
update should be applied prospectively, with an option to apply them retrospectively, and are effective for fiscal years beginning after
December 15, 2024 for public entities. We began a detailed assessment of the impact that this guidance will have on our consolidated financial
statements and related disclosures, and our analysis is currently ongoing.

In March 2024, the FASB issued
Accounting Standards Update 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic
220-40): Disaggregation of Income Statement Expenses, to improve the disclosures about a public business entity’s expenses and to
provide more detailed information about the types of expenses in commonly presented expense captions. The amendments in this update should
be applied either prospectively or retrospectively, and are effective for fiscal years beginning after December 15, 2026, and interim
periods beginning after December 15, 2027. We began a detailed assessment of the impact that this guidance will have on our consolidated
financial statements and related disclosures, and our analysis is currently ongoing.

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8. INCOME TAXES

We recognize deferred tax assets
and liabilities for the estimated future tax effects of events that have been recognized in our financial statements or tax returns. Under
this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases
of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation
allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. We have provided a full
valuation allowance against our deferred tax asset due to our historical pre-tax losses and the uncertainty regarding the realizability
of these deferred tax assets.

We have substantial net operating
loss carryforwards for Federal and California income tax returns. These net operating loss carryforwards could be subject to limitations
under Internal Revenue Code section 382, the effects of which have not been determined by the Company. We have no unrecognized income
tax benefits as of January 31, 2025 and October 31, 2024 and we account for interest and penalties related to income tax matters, if any,
in general and administrative expenses.

9. LEASES

We lease approximately 2,000 square
feet of office space at 3150 Almaden Expressway, San Jose, California (our principal executive offices) from