Company: ANIX
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013000
Chunk: 55

Company: Anixa Biosciences Inc
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 Income Tax Disclosures,
to require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income
taxes paid. 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 are currently evaluating the impact of this guidance on our
consolidated financial statements and related disclosures.

    14

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 are currently evaluating the impact of this guidance
on our consolidated financial statements and related disclosures.

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 July 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