Company: ANIX
Filing Date: 2025-03-11
Form Type: 10-Q
Source: 0001493152-25-009854
Chunk: 24

Company: Anixa Biosciences Inc
Filing Date: 2025-03-11
Form: 10-Q
Item: Part I, Item 8
Chunk 24
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 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 end of the period covered by this Report.

There was no change in our internal
control over financial reporting during the three months ended January 31, 2025, that has materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting.

 19 

PART II.
OTHER INFORMATION

Item 1. Legal
Proceedings.

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