Q3 2025 Champions Oncology Inc Earnings Call

Greetings and welcome.

Operator: Welcome to the Champions Oncology 3rd Quarter Fiscal Year 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.

Speaker Change: Welcome to the champions oncology third quarter fiscal year 2025 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation, but he won't should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host.

Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded.

Ronnie Morris: I will now turn the conference over to your host, Ronnie Morris, Chief Executive Officer. You may begin. Good afternoon. I am Ronnie Morris, CEO of Champions Oncology. Joining me today is David Miller, our Chief Financial Officer. Thank you for joining us for our quarterly earnings. Before I begin, I'll remind you that we'll be making forward-looking statements during today's call and that actual results could differ materially from what is described in those statements. Additional information on factors that could cause results to differ is available in our Forms 10-Q and Form 10-K. A reconciliation of non-GAAP financial measures that may be discussed during the call to GAAP financial measures is available in the earnings release.

Ronnie Morris: Ronnie Morris Chief Executive Officer, you may begin.

Speaker Change: Good afternoon, Hi, Ronnie Morris Champions oncology, joining me today is David Miller, our Chief Financial Officer. Thank you for joining us for our quarterly earnings call.

Ronnie Morris: Before I begin I will remind you that we are making forward looking statements during today's call.

Ronnie Morris: Actual results could differ materially from what is described in those statements additional information on factors that could cause results to differ.

Ronnie Morris: Is available in our forms 10-Q and Form 10-K, a reconciliation of non-GAAP financial measures that may be discussed during the call to GAAP financial measures is available in the earnings release.

Ronnie Morris: Q3 marked a transformative quarter for Champions Oncology, underscored by our record revenue of $17 million and the successful closure of our inaugural data deal. Our core services business remains at the forefront, driven by our industry-leading PDX Bank and its precisely characterized multi-omic data, which has become the foundation for the pharmacology studies that have been used broadly by the biopharma industry. Throughout the year, we have dedicated ourselves to strengthening our teams and refining our processes, resulting in enhanced quality, increased efficiency, and scalability, which in turn have led to improved cost management and profitability. As we look ahead, we maintain a cautiously optimistic outlook for a rebound in our industry sector, with customers beginning to expand their R&D budgets, and a slight recovery in the capital-raising environment for biotech industry.

Ronnie Morris: Q3 marked a transformative quarter for champions oncology underscored by a record revenue of $17 million in the successful closure of our inaugural data deal.

Ronnie Morris: Our core services business remains at the forefront driven by our industry, leading pdx bank and it's precisely characterize multi omics data.

Ronnie Morris: It does become the foundation for the Pharmacology studies that have been used broadly by the Biopharma industry.

Ronnie Morris: The year, we have dedicated ourselves to strengthening our teams and refining our processes, resulting in enhanced quality increased efficiency and scalability, which in turn has led to improved cost management and profitability.

Ronnie Morris: As we look ahead, we maintain a cautiously optimistic outlook for a rebound in our industry sector with customers beginning to expand their R&D budgets and a slight recovery in the capital raising environment for biotech industry.

Ronnie Morris: Despite the mild improvement in the sector, the environment remains tight leading to potential performance volatility, however the overall trend suggests promising opportunities for long-term growth. a significant Differentiator for Champions has always been our PDX bank, offering pharmaceutical and biotech companies invaluable insights for drug development. By consistently expanding our collection of unique tumor models and enhancing their characterization, we have developed a robust multi-omic data set with substantial potential for both drug discovery and development. This data set serves as a vital resource for our pharma partners who gain access to model-specific data. With the rise of AI, which can extract deeper insights from the biological data, the demand for our data set has notably increased in both breadth and depth.

Ronnie Morris: Despite the mild improvement in this sector the environment remains tight leading to potential performance volatility. However, the overall trend suggests promising opportunities for long term growth.

Ronnie Morris: Significant.

Ronnie Morris: The differentiator for champions has always been our pdx bank offering pharmaceutical and biotech companies invaluable insights for drug development.

Ronnie Morris: I consistently expanding our collection of unique tumor models and enhancing their characterization. We have developed a robust multi omics data set with substantial potential for both drug discovery and development.

Ronnie Morris: Datasets serves as a vital resource for our pharma partners, who gained access to model specific data with the rise of AI, which can extract deeper insights from the biological data the demand for our data set has notably increase in both breadth and depth rec.

Ronnie Morris: Recognizing this shift, we are actively exploring ways to extract greater value from this data. The recently closed data deal exemplifies our strategic vision where we licensed our existing deep multi-omic data set while also acquiring prospective omic data sets from our unique bank of tumor models. This continued expansion of our data set aligns with our mission to create the world's most comprehensive biological data set from a clinically relevant tumor population. Such a data set aims to bridge the gaps in existing data used for AI and ML-mediated discovery workflows, ultimately transforming how the biopharmaceutical industry approaches target and biomarker discovery as well as pipeline management.

Ronnie Morris: Recognizing this shift we are actively exploring ways to extract greater value from this data.

Ronnie Morris: The recently closed data deal exemplifies our strategic vision, where we licensed our existing deep multi omics dataset, while also acquiring perspective I'll make datasets from our unique bank of tumor models.

Ronnie Morris: This continued expansion of our dataset aligns with our mission to create the world's most comprehensive biological dataset from a clinically relevant tumor population.

Ronnie Morris: Such a dataset aims to bridge the gaps and existing theater using.

Ronnie Morris: Used for AI and ml mediated disc.

Ronnie Morris: Discovery workflows, ultimately transforming how the bio pharmaceutical industry approaches target and bio market discovery as well as pipeline management.

Ronnie Morris: Over the past few years, we have worked diligently to enhance this data platform, pioneering the use of deep multi-omic data sets in oncology discovery. The biopharmaceutical sector is now recognizing the immense untapped value within this type of data set, shifting away from classical data sets that offer broad insights but lack depth. We are well positioned to take the lead in this evolving landscape, generating significant traction and enthusiasm for our initiative to build the world's deepest clinically relevant multi-omic data set.

Ronnie Morris: Over the past few years, we have worked diligently to enhance this data platform pioneering the use of deep multi omics datasets in oncology discovery. The biopharmaceutical sector is now recognizing the immense untapped value within this type of dataset shifting away from classical datasets that offer broad insights, but lack.

Ronnie Morris: <unk> depth.

Ronnie Morris: We are well positioned to take the lead in this evolving landscape generating significant traction and enthusiasm for our initiative to build the world's deepest clinically relevant multi omics dataset. However.

Ronnie Morris: However, I must question that while we are excited about the initial validation of our strategy and continue to engage with other potential customers to build our opportunity pipeline, it remains premature to forecast the number of deals, their average size, or the frequency with which they will occur. Consequently, we are not yet in a position to project the data revenue contribution to our overall results or its impact on our bottom line. In the coming quarters, we hope to secure additional deals that will provide clarity on these important questions.

Ronnie Morris: However, I must caution that while we are excited about the initial validation of our strategy and continue to engage with other potential customers to build our opportunity pipeline. It remains premature to forecast the number of deals the average size or the frequency with which they will occur.

Ronnie Morris: Consequently, we are not yet in a position to projected data revenue contribution to our overall results or its impact on our bottom line and.

Ronnie Morris: In the coming quarters, we hope to secure additional deals that will provide clarity on these important questions regarding <unk>. Our wholly owned drug development subsidiary, we are highly optimistic about the targets and compounds. We have developed using our proprietary data. Our team is actively engaged in discussions to raise.

Ronnie Morris: Regarding Corellia, our wholly owned drug development subsidiary, we are highly optimistic about the targets and compounds we have developed using our proprietary data. Our team is actively engaged in discussions to raise capital for the company, while carefully weighing the impact on our bottom line results. Despite the challenging funding environment, we have partnered with experienced bankers to bolster our capital raising efforts, and both we and our advisors remain hopeful about the outlook.

Ronnie Morris: Capital for the company, while carefully weighing the impact on our bottom line results. Despite the challenging funding environment. We are partner with experienced bankers to bolster our capital raising efforts and both we and our advisers remain hopeful about the outlook.

Ronnie Morris: In summary, as highlighted during this call, Q3 was a ground-breaking quarter for us. We are excited about the potential of our core business, and although we face some challenges, we believe we are on a path towards long-term growth. The successful completion of our first data deal represents an initial validation of our strategic vision, signifying that our data asset is poised to evolve into a trendsetter.

Ronnie Morris: In summary, as highlighted during this call Q3 was a groundbreaking quarter for US we are excited about the potential of our core business and although we faced some challenges. We believe we are on a path towards long term growth. The successful completion of our first data deal represents an initial validation of our strategic.

Ronnie Morris: Vision, signifying that our data asset is poised to evolve into a trend.

Ronnie Morris: Transformative Data Business for Champions.

Ronnie Morris: Trends formative data business for champions now I will hand, the call over to <unk>.

David Miller: Now I will hand the call over to David Miller for a more detailed review of our financial results. Thanks, Ronnie.

Ronnie Morris: David Miller for a more detailed review of our financial results.

Speaker Change: Thanks, Ronny our full results on form.

David Miller: Our full results on Form 10-Q will be filed with the SEC by Monday, March 17. As Ronnie highlighted, we had a record-breaking quarter, with total revenue surpassing $17 million and adjusted EBITDA hitting a record high. Research service revenue was $12.5 million, compared to $12 million in the year-ago period, and our data revenue contribution was $4.5 million, reinforcing the early traction of our new platform. On a gap basis, our income from operations for the third quarter was $4.5 million compared to a loss of $2.6 million in the prior year. This included $600,000 in non-cash expenses related to stock-based compensation and depreciation.

Ronnie Morris: Thank you.

Speaker Change: By Monday March 17.

Speaker Change: Johnny highlighted we had a record breaking quarter with total revenue, surpassing 70 million and adjusted EBITDA hitting a record high.

Speaker Change: Research services revenue was $12 5 million compared to $12 million in the year ago period, and our data revenue contribution was $4 5 million, we enforce reinforce.

Speaker Change: Traction on our new platform on.

Speaker Change: On a GAAP basis, our income from operations for the third quarter was $4 5 million compared to a loss of $2.

In the prior year.

Speaker Change: This included 600000 in non cash expenses related to stock based compensation and depreciation.

David Miller: Excluding these items, adjusted EBITDA was a record $5.2 million compared to an adjusted loss of $1.7 million in the prior year.

Speaker Change: Excluding these items adjusted.

EBITDA was a record $5 2 million compare.

Speaker Change: Compared to an adjusted loss of $1 7 million in the prior year.

David Miller: turning the focus to our cash-based results. Total cost of sales was $6.6 million, compared to $7.8 million in our third quarter of last year, a decrease of 16%. The decrease was primarily due to a reduction in salary expense, other lab costs, and outsourced lab services. Our gross margin for the quarter was 61%, listed by the high margin data revenue. Our research service margins also improved, increasing to 48% compared to 35% in the same period last year. Our research service margins will fluctuate over the next two quarters with some expected volatility in revenue and cost of sales, but we anticipate long-term margin expansion exceeding 50% as long-term revenue grows.

Speaker Change: Turning the focus to our cash based results.

Speaker Change: Total cost of sales.

Speaker Change: Compared to $7 8 million in our third quarter of last year.

Speaker Change: A decrease of 16%.

Speaker Change: The decrease was primarily due to <unk>.

Speaker Change: Salary expense, although labcorp and help select labs.

Speaker Change: Our gross margin for the quarter was 61% lifted by the high margin data revenue.

Speaker Change: Our recent extraordinary margins also.

Speaker Change: Increasing to 48% compared to 35%.

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: This slide just will fluctuate.

Speaker Change: With some expected volatility in value added sales.

Speaker Change: But we anticipate long term margin expansion.

Speaker Change: 8% is long term revenue growth.

David Miller: Our operating expenses reflected our commitment to disciplined cost management. Our energy expense declined 500,000, or 21%, to $1.7 million as we optimized spending while maintaining key investments in our core business. Our sales and marketing expenses remained stable at $1.8 million, and our G&A expense declined $200,000 to $1.8 million, primarily due to reductions in salary.

Speaker Change: Our operating expenses reflected our commitment to disciplined cost management.

Speaker Change: Our R&D expense declined 500000, or 21% to $1 7 billion as we optimized spending while maintaining key investments in our core business.

Speaker Change: Our sales and marketing expenses remained stable at $1 8 billion and our G&A expense declined too much.

Speaker Change: 8 million, primarily due to reductions in salary expense.

David Miller: Summarizing our year to date with those two three-quarters total revenue was $45 million compared to $36 million in the first three quarters of 2024, an increase of 22%. Total cost of sales was $21 million, compared to $21.9 million, a difference of 900,000.04%. Total gross margin was 53% compared to 40% for the same period last year, with the improvement coming from the high margin data revenue along with the operational efficiencies implemented, which enabled us to improve on our remedy conversion and maintain our cost. Research service margins were 48% compared to 40% for the three quarters ended January 21st, 2020.

Speaker Change: Summarizing our year to date was built three quarters.

Speaker Change: <unk> revenue was $45 million compared to 36.

Speaker Change: 2024, an increase of 20%.

Speaker Change: Total cost of sales was 21 billion compared to 21 9.900 million of 4%.

Speaker Change: Total gross margin was 53% compared to 40 or 40% from the same period last year.

Speaker Change: It will be coming from the high margin data revenue along with the operational efficiencies implemented which enabled us to improve on our revenue conversion and maintain a headquarter.

Speaker Change: Service margins were 48% compared to 40% for the three quarters ended January 31st 2024.

David Miller: And total operating expenses were down approximately $3.8 million compared to last year, primarily from deductions in R&D expense.

Speaker Change: And total operating expenses were down approximately $3 8 million compared to last year, primarily from reductions in R&D spend.

David Miller: There was a public adjustment of $8.3 million, compared to adjusted loss of $4.8 million through nine months of fiscal 2020.

Speaker Change: There was no.

Speaker Change: Eight 3 million compared to adjusted loss of $4 8 million through nine months of fiscal 2024.

David Miller: Now turning to cash. We ended the quarter with 3.2 million cash on the balance sheet and no debt. For the quarter, cash generated by operating activities was $900,000 and cash used in investment activities was approximately $500,000. The net $400,000 quarterly increase in cash was primarily from an improvement in operational results offset by an increase in accounts receivable. Our balance sheet is solid and our cash position is poised to increase in the coming quarters as our long-term operational results continue to improve and we collect on our new data revenue stream.

Speaker Change: Now turning to cash.

Speaker Change: Ended the quarter with $3 2 million of cash on the balance sheet and no debt.

Speaker Change: Third quarter cash generated by operating activities was 900000 and cash used in investing activities was approximately 500000.

Speaker Change: The net 400000 quarterly increase in cash was primarily promising and preventing the operational adult all.

Speaker Change: And accounts receivable.

Speaker Change: Our balance our balance sheet is solid and our cash conversion is twice the increase in the coming quarters and our long term operational results continue to improve.

Speaker Change: We collect data revenue stream.

Speaker Change: To summarize Q3 was a milestone quarter with ready.

David Miller: Q3 was a milestone quarter with record-breaking financial performance and successful execution of our first data licensing agreement. While we anticipate short-term volatility in research revenue, we remain confident in our long-term growth trajectory. We have reaffirmed our full-year revenue growth guidance of 10-15% and continue to focus on expanding our data business, enhancing profitability, and driving shareholder value.

Speaker Change: The performance and successful execution of our first data licensing agreement.

Speaker Change: While we anticipate short term volatility and research revenue, we remain confident in our long term growth trajectory, we reaffirm our full year revenue growth guidance of 10%, 15% and <unk> to focus on extending our database is enhancing profitability and driving shareholder value.

David Miller: We look forward to updating you on our progress during our year-end earnings call in July.

Speaker Change: Forward to updating you on our progress during our year end earnings call in July.

Operator: will now open the call to Q&A. Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star 1 if you have a question or comment.

Speaker Change: We will now open the call to Q&A.

Speaker Change: Thank you at this time, we will be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset.

Speaker Change: Before pressing the star keys, one moment, please while we poll for questions. Once again. Please press star one if you have a question.

Speaker Change: Or comment first question comes from Matt Hewitt with Craig Hallum. Please proceed.

Matt Hewitt: First question comes from Matt Hewitt with Craig Hallam. Please proceed.

Tolfe Cormenon: Hello, this is Tolfe Cormenon for Matt Hewitt. So I don't know if I missed this. You guys kind of cut out there for a little bit, but regarding the licensing deal, could you please indicate like how it's constructed, constructed? And are there any other opportunities in the pipeline? Thank you.

Speaker Change: Hello. This is Tom calling on for Matt Hewitt. So I don't know if I missed this you guys kind of cut out there for a little bit but regarding the licensing deal could you. Please indicate like how it's constructed constructed and are there any other opportunities in the pipeline. Thank you.

Ronnie Morris: Yeah, so the licensing deal that we signed was for a portion of our data and it was a one-time fee and in terms of the pipeline, we are actively talking to multiple partners and customers from the biotech and pharma industry about the power and the value of our data and That's something that we hope to continue to discuss over the next coming quarter. Okay, thank you.

Speaker Change: Yeah. So.

Speaker Change: The licensing deal that we signed.

Speaker Change: It was for a portion of our data.

Speaker Change: And it was a one time fee.

Speaker Change: And in terms of the pipeline, we are actively talking to multiple partners and customers from the biotech and pharma industry about the power and the value of our data and.

Speaker Change: That's that's something that we.

Speaker Change: We hope to continue to discuss over the next coming quarters.

Speaker Change: Yeah.

Speaker Change: Okay. Thank you and then given the uncertainty we've seen in the past few weeks regarding tariffs budget cuts.

Ronnie Morris: And then, given the uncertainty we've seen the past few weeks regarding tariffs, budget cuts... Do you see any impact on your conversations with customers about those? Yeah, I don't know if the tariffs themselves necessarily have impacted us. But certainly, it continues to be a tighter environment out there. And it's something we watch carefully, I think, you know, to a certain extent, you know, based on our superior are superior. reputation as well as, you know, that we work with many, many companies. I think it's shielded us a little bit from the environment, but it still remains a tight environment out there, especially in the biotech.

Speaker Change: Do you see any impact on your conversations with customers about those.

Speaker Change: Yeah, I don't know if the tariffs themselves necessarily have impacted us, but certainly it.

Speaker Change: It continues to be a tighter environment out there.

Speaker Change: And it's something we watch carefully I think you know to a certain extent you know based on our superior.

Speaker Change: Our superior.

Speaker Change: Reputation as well as you know.

Speaker Change: That we work with many many companies I think it's shielded us a little bit from the environment, but it still remains.

Speaker Change: Eight environment out there, especially in the biotech set.

Ronnie Morris: Sector, and so I don't know if the tariffs have had any specific effect, and it could be too early to see those effects, but certainly, you know, with regards to the biotech sector in general, I think it's still not as strong as we had seen it a couple years ago and as strong as we would like it.

Speaker Change: Our sector and so I I don't know if the tariffs have had any specific effect in it and it could be too early to see those effects, but certainly you know with regards to the biotech sector in general I think it's still not as strong as we had seen it a couple of years ago and as strong as well.

Speaker Change: We would like it.

Ronnie Morris: Okay, so then I would take it with the... Weakness you're seeing in the biotech sector. How is that directly translating to the implementation of these early studies and the demand from customers there? Or is that not as direct as I'm... I think it certainly had. In effect, I think we have done as we've talked about many years, we've done a lot to weather that both on, you know, Trying to be more careful with our customer base and focusing more on some of the larger biopharmas over the last year and a half as well as on the operational side just making sure we're Our processes are in place and we're much more efficient and scalable.

Speaker Change: Okay. So then I would take it with the <unk>.

Speaker Change: Weakness, you're seeing in the biotech sector.

Speaker Change: How is that directly translating to the implementation of these early studies.

Speaker Change: And.

Speaker Change: The demand from customers, there or is that not as direct as I'm thinking.

Speaker Change: I think it's certainly had.

Speaker Change: In effect.

Speaker Change: I think we have done is we've talked about many years, we've done a lot to whether that both on you know.

Speaker Change: Hum.

Speaker Change: Trying to be more careful with our customer base and focusing more on some of the larger biopharma is over the last year and a half.

Speaker Change: As well as on the operational side, just making sure where we're.

Speaker Change: Our processes are in place and we're much more efficient and scalable so.

Ronnie Morris: So I think we've attacked the It's a tough environment, both from a customer acquisition as well as an expense perspective. Having said that, it is still a challenging environment out there, but I think we've been handling it well.

Speaker Change: I think we've attacked the.

Speaker Change: The tough environment both from.

Speaker Change: No.

Speaker Change: <unk> it.

Speaker Change: Customer acquisition as well as an expense perspective, having said that you know it is still a challenging environment out there, but I think we've been handling it well.

Ronnie Morris: Have you seen like Have you seen anything that gives you, um... Hope, coming up in maybe starting this year, that there will be a turnaround in customer demand, specifically in biotech. I think that it's I think that there's certainly still a lot of investment in the pharma and biotech. There's still certainly a lot of investment in oncology. There are definitely pockets of certain types of research that are being done. . Targeted Therapies that that continue to be exciting. So while I would say it's definitely still a mildly challenging time, I think there's still a lot of activity.

Speaker Change: Have you seen like.

Speaker Change: Have you seen anything that gives you.

Speaker Change: Hope coming up in May be starting this year that there will be a turnaround in customer demand specifically in biotech.

Speaker Change:

Speaker Change: I think that it's sector specific I think that you know I think that there's there's there's certainly still a lot of investment and in in.

Speaker Change: The pharma and biotech there's still certainly a lot of investment in it.

Speaker Change: Ecology, there are definitely pockets.

Speaker Change: Of certain certain certain types of.

Speaker Change: Targeted therapies that.

Speaker Change: And that continue to be exciting so while.

Speaker Change: Well I would say, it's definitely still a mildly challenging time I think there's still a lot of activity.

Ronnie Morris: And I think it's certainly slightly better than it was let's say a year and a half ago. So there are some silver linings. I just don't think that it's gotten back to the place where we saw it a couple of years ago and we're all wanted to get.

Speaker Change: And I think it's certainly slightly better than it was let's say a year and a half ago. So.

Speaker Change: There are some silver linings I, just don't think that it's gotten back to the place where we saw it a couple of years ago and we're all.

Speaker Change: Wanted to get to.

Speaker Change: Yeah.

Tolfe Cormenon: Okay, that's all for me. Thank you.

Speaker Change: Okay. That's all for me thank you.

Speaker Change: Welcome.

Operator: Once again, if you have a question or a comment, please press star one on your touchtone phone.

Speaker Change: Once again, if you have a question or comment. Please press star one on your Touchtone phone. The next question comes from March seven with G. O investing please proceed.

Maj Salbin: The next question comes from Maj Salbin with GEO Investing. Please proceed. Hello. Hey, thanks. That's Maj Swayde-Ann, by the way. Relatively new to the story, although I followed the company for a long time, but never really got into it much. We just started covering the company recently. This whole data thing really is very intriguing, so I have two questions. The first question being around – forgive me too for my ignorance regarding that subsidiary you talked about. You might have to raise some capital for that subsidiary.

Speaker Change: Hello, Hey, Thanks, that's my.

Speaker Change: Just wait and by the way from Juno Destiny realm.

Speaker Change: Relatively new to the story Oh life, all the coming for a long time, but never really got into March and we started covering the company recently.

Speaker Change: It doesn't hold that a thing really as a very intriguing. So I have two questions right now.

Speaker Change: First question being around forgive me change my ignorance regarding at that subsidiary you talked about you might have to raise some capital for that subsidiary.

Ronnie Morris: Can you give me some color in terms of, are you raising money through the subsidiary, through the company's parent company, and what does that mean for capital structure for the company? So that's one of the common capital raising mechanisms you're looking at to do that. And as an investor, how should I think about that? So I'll pause for that answer and then come back with my next question. Yeah, so a couple of years ago when we decided that our data, and we had become profitable and we decided that we really wanted to focus a little more on our data, we had a couple different kind of vectors that we were looking at.

Can you give me some color in terms of are you raising money through subsidiaries of the company's parent company, but what does it mean for capital structure for the company.

Speaker Change: So that's you know what are the common capital raising mechanism youre looking at to do that and as an industrial how should I.

Speaker Change: Think about that so I'll pause for that answer and then come back with my next question.

Speaker Change: Yeah. So.

Speaker Change: Couple of years ago, when we decided that our data and we will become profitable and we decided that we really wanted to have.

Speaker Change: Focus a little more on our data we had a couple of different kind of vectors that we were looking at one was just the raw data and the value of the data.

Ronnie Morris: One was just the raw data and the value of the data, and one of the others was we had this data, we had a lot of deep biological data, a lot of response data, and we felt that would be a great place to see if we could find some targets and start to develop some against these novel targets. And that's kind of what we set out to do. We're really excited about that effort.

Speaker Change: And one of the others was we had this data we had a lot of deep.

Speaker Change: The biological data a lot of response data and we felt like that would be a great place to.

Speaker Change: See if we can find some targets and start to develop some.

Speaker Change: <unk> drugs against these novel targets and that's kind of what we set out to do.

Speaker Change: We're really excited about that effort. It's it's a separate company. It's a separate team legally it's been separated from champions. It's a true spin out wholly owned because we're right now have been the only one funding at AR, but.

Ronnie Morris: It's a separate company. It's a separate team. Legally, it's been separated from Champions. It's a true spin-out, wholly owned because we're right now have been the only one funding it. But we got to the point now where Champions can't compete against continue to fund it because we really wanted to get to phase one, phase two trials, and that requires a lot of capital. So we're out there raising capital. Our expectation after we raise the capital is that Champions will retain a percentage of those businesses. It will be an asset. It will have a different investor base, which is a different type of investor base than Champions Oncology investor base.

Speaker Change: But we got to the point now where champions cant Ken.

[laughter] continue to fund it because we really wanted to get to phase one phase two trials.

Speaker Change: And that requires a lot of capital so we're out there raising.

Speaker Change: On capital our expectation after we raised the capital is that.

Speaker Change: The champions will retain a percentage of those businesses it will be an asset.

Speaker Change: It will have a different investor base.

Speaker Change: And which is a different type of investor base than champions oncology Investor base, It's more of a drug discovery investor base.

Maj Salbin: It's more of a drug discovery investor base. And that's kind of how we're thinking about this, and that's what we're out there trying to raise money for. Excellent. So you guys aren't going to have to raise an equity for this. You're looking for just capital now outside CSBR's capital structure to help kind of fund. It's not going to affect the cash flow. It's only going to be an asset that hopefully if we raise money attractive valuation is going to be additive to the cash flow. to the value of a Champions shareholder. Excellent, excellent. All right.

Speaker Change: And that's kind of how we're thinking about this and that's what we're out there trying to raise money for.

Excellent.

Speaker Change: So you guys aren't good out there raising equity for this year, you're looking for just capital outside the U S. B Arctic Apple structure to help kind of fundus <unk>.

Speaker Change: This isn't a matter of fact.

Speaker Change: Ownership interest and does he cannot go out with asphalt right yeah, correct, its not going to affect the cash flow and it's only going to be an asset that hopefully if we raise money at attractive valuation is gonna be.

Speaker Change: Additive to the east to the.

Speaker Change: To the value of the champions shareholder.

Speaker Change: Excellent excellent alright, so on the data side of the business this new.

Ronnie Morris: So on the data side, this new... What you're doing now I think is 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. the administration has talked about using AI to kind of help with cancer research, but the question I have more here is, I mean, I know this is kind of a new model for you and you're kind of maybe, I'm assuming kind of, for that. Thank you. in the future.

Speaker Change: What are you doing now I think it's very very awesome, and I think that's where a lot of the industry is going or.

Speaker Change: Or an opportunity that I think others are kind of exploring the Jensen has talked about it a little bit I think that's I think even though.

Speaker Change: This race has talked about using AI to kind of help with cancer research.

Speaker Change: But the question I have more here is I mean, I know, you're just kind of a new bottle for you and you kind of maybe I'm assuming kind of.

Speaker Change: Exploring how are you going to price the models.

Speaker Change: This was felt like it was I guess a licensing fee.

Speaker Change: So are you exploring other ways that may be selling this data as you look through to understand it more in what your customers want I'd like to understand maybe.

Speaker Change: And my third question, you know what that might look like.

Speaker Change: In the future.

Ronnie Morris: Yeah, we're exploring all aspects of you know, so if you think about We have an asset that we believe is valuable, it's our data. And then there are customers, and customers come in different sizes and flavors. And there's a couple of different ways you can license that data. You can license it out for a fee, for a license fee, you can license it out for a fee plus some type of royalty or milestones, and there's all these different levers. So we're certainly having discussions to certain... Smaller biotechs, they're obviously much more interested in potentially giving royalties and milestones for some of the larger pharma.

Speaker Change: Yeah we're.

Speaker Change: We're exploring all aspects of it so if you think about.

Speaker Change: We have an asset that we believe is valuable it's our data and then there are customers and <unk> customers come in different.

Speaker Change: Sizes, and flavors and and there's you know a couple of different ways. You can license that data you can license it out for a fee for a license fee you can license it out for a fee plus some type of royalty and milestones and.

Speaker Change: There's all these different levers, you know and and and so we're certainly.

Speaker Change: We're certainly having discussions.

Speaker Change: So to a certain.

Speaker Change: Smaller biotechs. They are obviously much more interested in essentially giving royalties and milestones for some of the larger pharma, they're more interested in just I'm paying for license fees. So everyone's a little bit different we're looking at we're looking at different models.

Ronnie Morris: They're more interested in just paying for license fees. So everyone's a little bit different. We're looking at different models. Right now for us, the most important thing is to understand the value and to speak to enough customers to really get them to understand the value of our data and to use some of our data so they can understand why this is so valuable. So that's the first step and that's kind of the step we're in right now. 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 may be a recurring revenue component to some of the type of arrangements you might get into, depending on the biotech company, right?

Speaker Change: Right now for US the most important thing is to understand the value and to speak to a enough customers to really get them to understand the value of our data.

Speaker Change: And to use some of our data and play with their data. So they can understand why this is so.

Speaker Change: So valuable so that's the first step and that's kind of the step we're in right now.

Speaker Change: Okay. So over time, you would anticipate potentially at this well.

Speaker Change: Next out that you'll have a mix of licensing.

Speaker Change: Large licensing data, but also just maybe a recurring revenue component to some of the.

Speaker Change: Type of range that you might get you might get into depending on the biotech company right what I'm Gonna company. Yeah. It's certainly something we think about a lot and we're looking at different models and we're not reinventing. The wheel is these have been done before.

Ronnie Morris: Or pharma company. Yeah, it's certainly something we think about a lot, and we're looking at different models. And we're not reinventing the wheel, these have been done before. And so, we're trying to learn, and we're trying to understand what the market will bear. And it's going to be a little bit different for different customers, but we're early on, and right now, we're just, you know, so we're excited about the first deal, which is proof of concept, and we have a couple others in the pipeline, and, you know, as we continue to go, I anticipate, like the rest of our business, we'll, you know, We will continue to evaluate other opportunities and other possibilities.

Speaker Change: And so we're trying to learn and we're trying to understand.

Speaker Change: What the market will bear.

Speaker Change: And it's going to be a little bit different for dish.

Different customers, but.

Speaker Change: We're early on and and right now we're just you know so we're excited about the first deal which was a proof of concept and we have a couple of others in the pipeline and you know as as we continue to go I anticipate like the rest of our business.

Speaker Change: Well you know.

Speaker Change: We will.

Speaker Change: To evaluate them.

Speaker Change: Other opportunities in other.

Speaker Change: Other possibilities of of.

Ronnie Morris: how we structure deals. Okay, and regardless of what you do, this is definitely a very high margin, high gross margin business that a lot of it flows right to the bottom line. Okay, depending on license and where we're occurring. All right, so on the, now on 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 movement, this movement to go data licensing model, a lot of it came from actually customers were asking you, right, there was a lot of inbound kind of inquiries from your customers.

Speaker Change: How we structure deals.

Speaker Change: Okay and in regards to what you did and this is definitely a very high margin high gross margin did yesterday.

Speaker Change: Right Okay.

Speaker Change: Pending out license to more 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 a lot of.

Speaker Change: This kind of data movement. This movement to go down a licensing or.

Speaker Change: Model.

Speaker Change: Lot of it came from actually customers were asking you write to me, there's a lot of inbound kind of inquiries from your customers.

Ronnie Morris: So I'm wondering, you know, how that is that where most of the interest is coming from with this new contract, for example, from a existing customer or 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? Yeah, I think it's both. You have to remember, we work with between 400 and 500 of the pharma and biotech companies. So we work with a large number of the biopharma companies within oncology. So we're fairly well known, and we work with a lot of them.

Speaker Change: So I'm wondering you know how of that is that where most of the interest is coming from with this new contract for example from a existing comp.

Speaker Change: Customer or new customer.

Speaker Change: I guess, there's two things and what opportunity you see with your own customer base right.

Speaker Change: And do you see this as an opportunity to expand your customer base.

Speaker Change: That's yeah.

Speaker Change: Yeah, I think it's both you have to remember we work with between four and 500 of the pharma and biotech companies. So we work with a large number of the biopharma companies within oncology. So it's so we're fairly well known and we work with a lot of them. So it's not like so yes.

Ronnie Morris: So it's not like – so yes, you know, we certainly have a large audience. We're out there talking to them about our data. Clearly, still, the bread and butter and the core business is the largest part of our business where people send us. you know, their compounds and we do studies for them and we give them a lot of valuable insights on their drugs. But the plan is to both for our customer base and for our non-customer base. to be going out there and talking to people about the value of our data and why we think it's important.

Speaker Change: We certainly have a large audience.

Speaker Change: We're out there talking to them about our data.

Speaker Change: Clearly still the bread and butter in the core business is the largest part of our business, where where people send us.

Speaker Change: You know their compounds and we do studies for them and we would give them a lot of a lot of valuable insights on their drugs, but the plan is to both for our customer base and for our non customer base.

Speaker Change: To be going out there and talking to people about the value of our data and why we think it's important.

Ronnie Morris: Okay, and when a customer maybe, let's say, like this time has a, you know, buys a licensing arrangement with one big, you know, one big cup of data, I'm assuming, you know, do you see the opportunity? Is this one and done with the customer? Is there a reason for them to keep coming back? I'd like to understand that a little bit. And I know there's an option for them to come back with $3 million here, but maybe talk about that a little bit. I see data, and this is, I think, a little bit of the difference between us and a lot of other groups.

Speaker Change: Okay, and then and when when a customer may be let's say when.

Speaker Change: At this time and have that.

Speaker Change: They'll buy a licensing arrangement with one big lumping up of data I'm assuming.

Speaker Change: You know you see the opportunity is as wide as one and done with the customer and is there a reason for them to keep coming back.

Speaker Change: I understand that a little bit.

Speaker Change: There's the option for them to come back with $3 million year.

Speaker Change: But.

Speaker Change: Yeah, it would be.

Speaker Change: I thought that we'd see data.

Speaker Change: And this is I think a little bit of a difference between us and a lot of other groups. We've always seen data is something that continues to grow. So so we have a hunt Oh excuse me. An example, we have 100 lung cancer patients and you know our first layer of their data many years ago was it you know.

Ronnie Morris: We've always seen data as something that continues to grow. So we have a hundred, I'll give you an example, we have a hundred lung cancer patients and, you know, our first layer of data many years ago was a genomic profile. And then we went to a transcriptome profile, and then we went to, and then we added a layer of proteomics and phosphoproteomics, and then we added other layers. So we continue to add layers so that the deeper understanding of the interactions of all the pathways within that tumor and also the interaction with different responses that that tumor has had, both in the clinic and in the PDX model.

Speaker Change: [laughter] profile and then we went to a transcriptome profile and then we went to and then we added a layer of proteomics and faucet proteomics and then we've added other layers. So we continue to add layers. So that so that the deeper understanding of the.

Speaker Change: Actions of all the pathways within that tumor and and also the interaction with different responses that that tumor has had both in the clinic and in the Pdx models. So we keep we keep enriching the data and and that's the beauty of kind of our bank and our <unk>.

Ronnie Morris: So we keep enriching the data, and that's the beauty of kind of our bank and our data. So as there's more opportunities to get... more refined with a characterization. We keep characterizing these tumors and understanding the biology deeper and deeper. And now with the advent of AI, you know, before it was much, much more complicated because we created a ton of data, but now with the advent of AI, these data sets just become. more and more important and there's a lot that can be generated and learned from it. So yes, our plan is to continue to generate more data from these data sets and that seems to be resonating well with our customers.

Speaker Change: Data, so as there's more opportunities to to get.

Speaker Change: More refined with the characterization, we keep characterizing these tumors and understanding the biology deeper and deeper and now with the advent of AI.

Speaker Change: Before was much much more complicated because we created a ton of data, but but now with the advent of AI.

Speaker Change: These datasets just become.

Speaker Change: More and more important and there's a lot that can be generated and learn from it. So.

Speaker Change: So yes, you know our plan is to continue to generate more data from these datasets and.

Speaker Change: That seems to be resonating well with our customers.

Maj Salbin: Okay, great, great.

Speaker Change: Okay, great great and.

Maj Salbin: And just can you give me an idea, like an idea in terms of the competition you're seeing out there? I think you said you wanted to be like a leader in this. Where are you seeing a lot more companies?

Speaker Change: Just can you give me an idea I guess an idea in terms of the competition, you're seeing out there I E. I think you said you wanted to be like a leader in this and.

Speaker Change: Where are you seeing a lot more companies.

Ronnie Morris: 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? Yeah, so I think a lot of companies have been selling data for a long time. I think for a long period of time, most of the companies have been selling very, what I would call longitudinal data with hundreds of thousands of patients with a small amount of data on each patient. We're one of the first who are doing it a little bit differently where not as many patients, but with each patient and each tumor, we're going very deep and really understanding the interactions at a very deep level.

Speaker Change: That you compete against you do the same thing right now or do you think you are like one of the first one is really the kind of embarked on this whole thing.

Speaker Change: Yeah. So I think a lot of companies have been selling data for a long time I think for a long period of time most of the companies have been selling very what I would call longitudinal data with hundreds of thousands of patients with a small amount of data on each page.

Speaker Change: And we're one of the first who are who are are or aren't doing a little bit different they were not as many patients, but with each patient in each tumor, we're going very deep and really understanding the interactions.

Speaker Change: At a very deep.

Ronnie Morris: molecular, and at a biological level. So, from a discovery standpoint, from understanding, you know, the effect of a drug on the biology of a tumor, and looking for new targets, I think we have a very unique approach. And I think it's, you know, the right time for it, because the capabilities with AI and machine learning really avail this type of a data set. to be able to unearth some of the deeper insights. So that's kind of a little bit of a different approach that I think is the right time for this right now, and that's our goal.

Speaker Change: Molecular and <unk> and a biological level. So from a discovery standpoint from understanding you know the effect of a drug on the biology of the tumor and looking for new targets.

Speaker Change: We have a very unique approach and I think it's the right time for it because the capabilities with AI and machine learning really.

Speaker Change: Avail. This type of a dataset.

Speaker Change: To be able to on Earth. Some of the deeper insights. So that's kind of a little bit of a different approach that I think is the right time for this right now and.

Speaker Change: That's our goal.

Ronnie Morris: Okay, my last question, going back to your legacy business, are you are you seeing AI helping you in your own? kind of legacy business, do your research for companies. Not so much yet, we haven't really seen that effect yet. It doesn't mean it's not going to come, it's just right now we haven't really seen the impact of that on kind of the core business. Okay.

Speaker Change: Okay and my last question.

Speaker Change: I'm going back to your legacy business or you are you seeing AI, helping you on your own.

Speaker Change: Kind of your legacy business still your unit you researched for companies.

Speaker Change: Not so much yet we haven't really seen.

Speaker Change: That effect yet it it doesn't mean, it's not going to come it just it just right now we are.

Speaker Change: Haven't really seen the impact of that kind of the core business.

Maj Salbin: Hey, thanks, man. and you're welcome.

Speaker Change: Okay, Hey, Thanks man.

Speaker Change: You're welcome.

Edward Gilmore: The next question is from Edward Gilmore, private investor. Edward, please proceed. Thank you. Hi, Ronnie. Thanks for taking my call. I just had a couple of quick questions. On the AI side of things with the data, do you see potential for the data to be used outside of drug discovery and research, for example, maybe more in a clinical setting with identification and evaluation of tumors? You mean in terms of a biomarker approach? Yes. Yeah, I've always felt, I mean, we've always felt that there's two real best uses for are our data for the deep data of understanding these tumors.

Edward Gilmore: The next question is from Edward Gilmore Private Investor Edward Please proceed.

Thank you Hi, Ronny Thanks for taking my call I just had a couple of quick questions.

Edward Gilmore: On the on the AI side of things with the data do you see potential for the data to be used outside of a drug discovery and research for example, maybe more in a clinical setting with the identification and evaluation of tumors.

Edward Gilmore: You mean, you mean in terms of like of a biomarker approach.

Edward Gilmore: Yes.

Edward Gilmore: Yeah, I've always felt I mean, we've always felt that there's two real best uses for our our our data for the deep data or understanding these tumors and one was from.

Ronnie Morris: And one was from a discovery perspective, and the other was from a kind of a biomarker perspective. The discovery perspective is a better path right now. The biomarker path is still a super interesting path. It's just that, for whatever reason, most of the biopharma over the last 10 years have not been that interested in finding the right biomarker. for the drug, a lot of reasons for that. And I know they talk about biomarkers a lot, but we really haven't seen. that much interest in really understanding what is that super patient population that they should only go for in a trial.

Edward Gilmore: From a discovery perspective, and the other was from a kind of a biomarker perspective.

Edward Gilmore: Yeah.

Edward Gilmore: The discovery perspective is kind of a it is a better path.

Edward Gilmore: Right now the biomarker path is still a super interesting path. It's just that you know for for whatever reason most of the biopharma over the last 10 years have not been that interested in finding the right biomarker.

Edward Gilmore: For <unk> for their drug lot of reasons for that and I know they talk about Biomarkers law, but we really haven't seen that.

Edward Gilmore: That much interest in really understanding what what is that super patient population that they should only go for in a trial I think it is important to them to kind of figure out the trial to make sure. The trial is successful, but I don't know that they're super.

Ronnie Morris: I think it's important to them to kind of figure out the trial to make sure the trial is successful, but I don't know that they're super... They're super keen on finding that very specific biomarker that's going to restrict or, you know, just kind of narrowly pick out the patients in the clinic that are only going to work for that drug. So it certainly could be a... super good. It's certainly a super smart way to use our data to also look for... Clinical Biomarkers, but as of yet, that I don't think has been. the driving force for people to use our data as much.

Edward Gilmore: They're super keen on finding that very specific biomarker, that's going to restrict or you know just kind of.

Edward Gilmore: Narrowly pick out the patients in the <unk>.

Edward Gilmore: Clinic that are that are only going to work for that drug. So E. It certainly could be a.

Edward Gilmore: Super good.

Edward Gilmore: Certainly, it's certainly a super smart way to use our data to also look for a quote.

Edward Gilmore: Clinical biomarkers, but as of yet that I don't think has been.

Edward Gilmore: The driving force for people to use our data as much.

Edward Gilmore: Okay, thanks. We'll stay tuned for that.

Edward Gilmore: Okay. Thanks, So we'll stay tuned for that and then just the second question. A couple of weeks ago, you guys put out a press release about the upcoming association for cancer Research meeting and announced that you had a number of abstracts that were accepted for presentation. There I Wonder if you could just you know from your perspective.

Ronnie Morris: And then the second question, a couple weeks ago, you guys put out a press release about the upcoming Association for Cancer Research meeting and announced that you had a number of abstracts that were accepted for presentation there. I wonder if you could just, you know, from your perspective to investors, kind of give a little bit more color on that and, you know, how excited you are and what you kind of expect to come from that. Because I know AI is going to be a heavy topic that's mentioned and talked about a little bit. Yeah, we, you know, we have always been an organization that's kind of not so much like a CRO, but more of a scientific leader.

Edward Gilmore: There's kind of give a little bit more color on that and you know how how excited you are and what you kind of expect to come from that because I know, there's a I was going to be a heavy topic. That's mentioned we've talked about this.

Edward Gilmore: Yeah. We you know we have always been an organization that's kind of not so much like our cero, but more of a.

Ronnie Morris: And that's the way our partners. I think it was important for us to show that we continue to be on the cutting edge doing a lot of R&D and just just continuing to you know, be innovative and thinking about how do we How do we develop the assays to just help the pharma partners that we work with just to develop the best drugs and to get the best... Preclinical Package is going to give them the best chance in the clinic. So we're excited about the continued number of posters because it shows that we just We continue to innovate, we continue to think of ourselves as an R&D organization to a certain extent and we're excited about it.

Edward Gilmore: Scientific leader and that's the way our partners.

Edward Gilmore: Yes, I think it was important for us to show that we continue to be on the cutting edge doing a lot of R&D and just just continuing to.

Edward Gilmore:

Edward Gilmore: No.

Edward Gilmore: Innovative in and thinking about.

Edward Gilmore: How do we.

Edward Gilmore: Uh huh.

How do we develop the assays to just help the pharma partners that we work with just to develop the best drugs and could get get the best.

Edward Gilmore: Preclinical package is going to give them the best chance in the clinic. So we're excited about the continued number of posters because it shows that we just.

Edward Gilmore: We continue to.

Edward Gilmore: We continue to think of ourselves as an R&D organization to a certain extent.

Edward Gilmore: And we're excited about it and certainly those abstracts will become available and you'll be able to read them.

Ronnie Morris: And certainly those abstracts will become available and you'll be able to read them.

Edward Gilmore: Okay, thank you.

Edward Gilmore: Okay. Thank you sorry, one more quick question on the Pdx data side do you have a team set up internally to that's leading that as far as like how you do customer acquisition or whats kind of the go to market strategy. There and then I'll drop off in terms of what in terms of what I'm not sure I understand the question.

Edward Gilmore: And sorry, one more quick question. On the PDX data side, do you have a team set up now internally that's leading that as far as like how you do customer acquisition? Or what's what's kind of the go to market strategy there? And then I'll drop off in terms of what in terms of what I'm not trying to send a question. In terms of how you're communicating to prospective customers about how they can find out that they have access to be able to license the data, if they're pharma or biotech company, just just how they're discovering that they can find terms of the data side.

Speaker Change: In terms of how you're communicating to prospective customers about how.

Speaker Change: They can find out that they have access to be able to license the data if they're pharma or biotech company, just how they're discovering that they can see them in terms of the data side.

Ronnie Morris: In terms of data side. Yeah, we have a separate We have a separate team that handles. We have a separate team that handles the data side. We also have a team that handles just the core business, but there's a lot of crossover between, because it's a lot of the same customers, so there's a lot of crossover between the regular. Sales Team, the Business Development Team, as well as the team that's handling the data strategy.

Speaker Change: In terms of the data side, yes, we have a separate we we have a separate team that handles.

Speaker Change: We have a separate team to handle the data side. We also have a team that handles just the core business, but there's a lot of the.

Speaker Change: Crossover between because there's a lot of the same customers. So there's a lot of crossover between the regular.

Speaker Change: Sales team in the business development team as well as the team that is handling the data strategy.

George Morema: Okay, thank you.

Speaker Change: Okay. Thank you.

Speaker Change: Welcome.

George Morema: The next question is from George Morema with Pareto Ventures, please proceed. 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, you know, the entire pie, like how big a slice of the pie represented this deal? Is it 100%? 5%? How much data did they buy for $5 million out of the total data?

Speaker Change: The next question is from George Maremma with perennial ventures. Please proceed.

George Maremma: Yeah, Hi, Thanks for taking my call.

George Maremma: A question on this $5 million license deal.

Kind of roughly speaking of all your data you know the entire pie how big a slice of the pie represented this deal is it on a percent 5%.

George Maremma: How much data do they buy for $5 million out of the total data.

Ronnie Morris: Yeah, that isn't something that we have publicly announced. We don't really talk about kind of how much people pay for different data. Different people have different deals, depending on early, late.

George Maremma: Yeah that isn't something that we have publicly announced we don't really talk about kind of how much people pay for tech data.

George Maremma: Different people have different deals depending on early late.

Ronnie Morris: So that that isn't something that that we have spoken about publicly.

George Maremma: So that is something that that we have spoken about them publicly.

Ronnie Morris: 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? Yeah, we have a dedicated team. We have a general manager, Matt Newman, we brought in the head of our data sciences, we have a couple of business Development, people who have a lot of experience in this area. So yeah, we have a team now assembled. It's a fairly new team over the last six months to a year, but we have a dedicated team that's out there talking about our data.

George Maremma: Okay and.

George Maremma: On your kind of go to market on this internally do you have like dedicated salespeople for this or how exactly are you marketing and selling this these data licenses currently.

Met Newman: Yeah, we have a dedicated team we have a general manager met Newman, we brought in the head of our data Sciences, we have a couple of business.

Met Newman: Development people, who have a lot of experience in this area.

Met Newman: So yeah, we have a team now assembled its a fairly new team over the last six months to a year, but we have a dedicated team that's out there talking about our data.

George Morema: And did I hear earlier in the call that you do have a couple few that are in the pipeline in 2025 here so far? I'm sorry, can you repeat that? You cut out for a second. Yeah, did I hear it right that you have two or three deals that are in the pipeline currently on data licensing deals? I believe what you heard was we have a pipeline and we continue to talk to people and we didn't mention... We didn't mention the number of deals that are in the pipeline. And again, I think that, that, that I'll just add that, you know, some of the deals will be large, some of the deals will be medium, some of the deals will be I think the goal is to get people to utilize our data and continue to make them a believer and use more and more data over time.

Speaker Change: And did I hear earlier in the call that you do have a couple a few that are in the pipeline in 2025 here so far.

I'm, sorry can you repeat that you cut out for sale.

Speaker Change: Yeah did I hear right that you have a two or three deals that are in the pipeline currently on data licensing deals.

I believe what you heard was we have a pipeline and we continue to talk to people and we didn't mention we didnt mentioned the number of deals that are in the pipeline.

Speaker Change: And again I think that that that I'll just add that you know some of the deals will be large some of the deals will be medium and some of the deals will be.

Speaker Change: Small and I think the goal is to get people to utilize our data and continue to make them, a believer and use more and more data over time so.

Ronnie Morris: Okay. All right. Thank you, Ronnie.

Speaker Change: Okay.

Ronnie Morris: Thank you Ronnie.

Speaker Change: Youre welcome.

Operator: If there are any remaining questions, please indicate so by pressing star 1. We have no further questions in the queue.

Speaker Change: If there are any remaining questions. Please indicate so by pressing star one.

Speaker Change: We have no further questions in the queue I'd like to turn the floor back to management for closing remarks.

Ronnie Morris: I'd like to turn the floor back to management for closing remarks. As we mentioned, this is an exciting quarter for Champions Oncology. having our fiscal year-end call mid-July, so until then, stay tuned, and we're excited about the progress that we're making, and we look forward to... following up with everybody. Thank you for joining.

Speaker Change: Thank you very much as we mentioned this is an exciting quarter for champions oncology, we look forward to.

Speaker Change: Having our.

Speaker Change: Hmm fiscal year end call mid July so and until then stay tuned and we're excited about the progress that we're making and we look forward to.

Speaker Change: Following up with everybody. Thank you for joining.

Operator: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

Speaker Change: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.