Company: ANIX
Filing Date: 2025-03-11
Form Type: 10-Q
Source: 0001493152-25-009854
Chunk: 22

Company: Anixa Biosciences Inc
Filing Date: 2025-03-11
Form: 10-Q
Item: Part I, Item 8
Chunk 22
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 judgments and estimates and make changes accordingly.

We believe that, of the significant
accounting policies discussed in Note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year
ended October 31, 2024, the following accounting policies require our most difficult, subjective or complex judgments:

    ●
    Revenue Recognition,

    ●
    Stock-Based Compensation, and

    ●
    Research and Development Expenses.

Revenue Recognition

Our revenue has been derived solely
from technology licensing and the sale of patented technologies. Revenue is recognized upon transfer of control of intellectual property
rights and satisfaction of other contractual performance obligations to licensees in an amount that reflects the consideration we expect
to receive.

Our revenue recognition policy
requires us to make certain judgments and estimates in connection with the accounting for revenue. Such areas may include determining
the existence of a contract and identifying each party’s rights and obligations to transfer goods and services, identifying the
performance obligations in the contract, determining the transaction price and allocating the transaction price to separate performance
obligations, estimating the timing of satisfaction of performance obligations, determining whether a promise to grant a license is distinct
from other promised goods or services and evaluating whether a license transfers to a customer at a point in time or over time.

Our revenue arrangements provide
for the payment, within 30 days of execution of the agreement, of contractually determined, one-time, paid-up license fees in settlement
of litigation and in consideration for the grant of certain intellectual property rights for patented technologies owned or controlled
by the Company. These arrangements typically include some combination of the following: (i) the grant of a non-exclusive, retroactive
and future license to manufacture and/or sell products covered by patented technologies owned or controlled by the Company, (ii) a covenant-not-to-sue,
(iii) the release of the licensee from certain claims, and (iv) the dismissal of any pending litigation. In such instances, the intellectual
property rights granted have been perpetual in nature, extending until the expiration of the related patents. Pursuant to the terms of
these agreements, we have no further obligations with respect to the granted intellectual property rights, including no obligation to
maintain or upgrade the technology, or provide future support or services. Licensees obtained control of the intellectual property rights
they have acquired upon execution of the agreement. Accordingly, the performance obligations from these agreements were satisfied and
100% of the revenue was recognized upon the execution of the agreements.

Stock-Based