Company: ANIX
Filing Date: 2025-05-28
Form Type: 10-Q
Source: 0001641172-25-012701
Chunk: 24

Company: Anixa Biosciences Inc
Filing Date: 2025-05-28
Form: 10-Q
Item: Part I, Item 8
Chunk 24
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 financing activities was approximately $1,000, resulting from proceeds from the sale of common stock pursuant to an employee stock
purchase plan of approximately $4,000 offset by the net expense of approximately $3,000 resulting from the sale of 14,712 shares of common
stock in an at-the-market equity offering. As a result, our cash, cash equivalents, and short-term investments at April 30, 2025 decreased
approximately $4,327,000 to approximately $15,597,000 from approximately $19,924,000 at the end of fiscal year 2024.

CRITICAL ACCOUNTING POLICIES

The Company’s condensed
consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America.
In preparing these financial statements, we make assumptions, judgments and estimates that can have a significant impact on amounts reported
in our condensed consolidated financial statements. We base our assumptions, judgments and estimates on historical experience and various
other factors that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates under
different assumptions or conditions. On a regular basis, we evaluate our assumptions, 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