Champions Oncology Inc (NASDAQ:CSBR), a leading global technology-enabled biotech that is transforming drug discovery through innovative AI-driven pharmaco-pheno-multiomic integration, stock fell 5.83% (As on December 14, 11:48:05 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY 23 has reported the adjusted revenue growth of 21 percent to $14.3 million in the third quarter of FY 22, due to continued demand for the services, leading to larger pharmacology studies in both the in-vivo and ex-vivo platforms. However, due to the economic climate, the company saw an increase in cancellations during the quarter which will impact the revenue in the second half of the year. Accordingly, the company has revised the full year growth target to be in the 10% – 15% range.

Total costs and operating expenses for the second quarter of fiscal 2023 were $14.3 million compared to $11.5 million for the second quarter of fiscal 2022, an increase of $2.8 million or 23.9%. For the second quarter of fiscal 2023, Champions reported income from operations of $7,000, including $119,000 in stock-based compensation and $560,000 in depreciation and amortization expenses, compared to income from operations of $263,000, inclusive of $134,000 in stock-based compensation and $346,000 in depreciation and amortization expenses, in the second quarter of fiscal 2022. Excluding stock-based compensation, depreciation and amortization expenses, Champions reported adjusted EBITDA for the quarter of $686,000 compared to $743,000 in the prior year period. Discovery targets progressing along the development timeline; expectation to advance to preclinical phase testing in calendar 2023

For the three- months ended October 31, 2022, total gross margin was 48% compared to 52% for the three-months ended October 31, 2021. Pharmacology services margin was 51% vs 53% in the year ago period. The lower margin resulted from an increase in study related expenses against lower than expected revenue conversion. Research and development expense for the three-months ended October 31, 2022 was $2.6 million, an increase of $305,000 or 13.3%, compared to $2.3 million for the three-months ended October 31, 2021. The increase was primarily from compensation and lab supply expenses related to the investment in our therapeutic discovery platform. Net cash provided by operating activities was $3.3 million for the three months ended October 31, 2022. The Company ended in the quarter in a strong cash position with cash on hand of $10.8 million and no debt.