Champions Oncology Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Hello. Hey, thanks, this is Maj Soueidan, by the way, from GeoInvesting. Relatively new to the story. I, although I follow the company for a long time but never really got into it much, and we started covering the company recently. This whole data thing really is very intriguing. So I have two questions right now. The first question being around -- forgive me for my ignorance regarding that subsidiary you talked about that you might have to raise some capital for that subsidiary. Can you give me some color in terms of are you raising money through subsidiary to the company's parent company or what does it mean for capital structure for the company? So that's one of the common capital raising mechanisms you're looking at to do that as an investor, how should I think about that? So I'll pause for that answer and then come back with my next question.

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Excellent. So you guys aren't going to have to raising equity for this, you're looking for just capital now outside CSBR's capital structure to help kind of fund this. So this isn't going to affect our ownership interest in not cash flow, right?

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Excellent. Alright, so on the data side, this new -- what you're doing now, I think it's very awesome, and I think it's where a lot of the industry is going or an opportunity that I think others are kind of exploring. Jensen has talked about it a little bit, I think even the administration talked about using AI to kind of help with cancer research. But the question I have more here is -- I mean, I know you're, this is kind of a new model for you and you're kind of maybe, I'm assuming kind of exploring how you're going to price the model. So this was all like like I guess a licensing fee, so are you exploring other ways of maybe selling this data as you move through this and understand it more and what your customers want? I'd like to understand maybe before I have my third question.what that might look like in the future. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 8:30PM, CSBR.OQ - Q3 2025 Champions Oncology Inc Earnings Call

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Okay, so over time, you would anticipate potentially if this works out that you'll have a mix of licensing like large licensing data, but also this maybe a recurring revenue component to some of the type of ranges you might you get, you might get into depending on the biotech company, right, from the company.

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Okay, and regardless of what you do, this is definitely a very high margin, high gross margin business that a lot of goes right to the bottom line. Okay, depending on license or recurring. Alright, so on the now in your last conference call you kind of mentioned and you mentioned it today kind of a little bit that a lot of this kind of data move this movement to go data licensing model, a lot of it came from actually customers were asking you, right, there's a lot of inbound kind of inquiries from your customers. So I'm wondering, how that -- is that where most of the interest is coming from with this new contract, for example, from an existing customer or a new customer. So I guess there's two things. What opportunity do you see with your own customer base, right? And do you see this as an opportunity to expand your customer base? That's --

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Okay. And then, when a customer maybe let's say they when like you like you had to like this time has a, buys a licensing arrangement with one big cup of data I'm assuming. Do you see the opportunity just one and done with the customer? Is there a reason for them to keep coming back? I like to understand that a little bit. I know there's an option for them to come back with $3 million here, but maybe talk --

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Okay, great, and just can you give me an idea, I guess an idea in terms of the competition you're seeing out there, and I think you said you wanted to be like a leader in this and where -- are you seeing a lot more companies that you compete against, do the same thing right now, or you think you are like one of the first ones really to kind of embark on this whole thing?

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Okay, my last question. Going back to your legacy business, are you seeing AI helping you in your own kind of you like to see business do your research for companies? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 11, 2025 / 8:30PM, CSBR.OQ - Q3 2025 Champions Oncology Inc Earnings Call

Question: Maj Soueidan - GeoInvesting, LLC - Analyst : Okay. Hey, thanks, man.

Question: George Maremma - Pareto Ventures - Analyst : Yeah, hi, thanks for taking my call. I had a question on this $5 million license deal. Kind of roughly speaking, of all your data, the entire pie, like how big a slice of the pie represented this deal? Is it 100%, 5%? Like how much data did they buy for $5 million out of the total data?

Question: George Maremma - Pareto Ventures - Analyst : Okay. And on your kind of go-to-market on this internally, do you have like dedicated sales people for this or how exactly are you marketing and selling this these data licenses currently?

Question: George Maremma - Pareto Ventures - Analyst : And did I hear earlier in the call that you do have a couple of few that are in the pipeline in 2025 here so far?

Question: George Maremma - Pareto Ventures - Analyst : Yeah, did I hear it right that you have two or three deals that are in the pipeline currently on data licensing deals?

Question: George Maremma - Pareto Ventures - Analyst : Okay. Thank you, Ronnie.