ANIX — Q3 FY2026 Financial Report Analysis

Anixa Biosciences has no product revenue. For a company like this, a quarter comes down to how much cash went out, what it paid for, and how long the money left will last. In fiscal Q3 2026 (the three months to July 31, 2026; Anixa's fiscal year ends October 31), the net loss attributable to shareholders grew 15% to $2.6 million. The cause was spending on manufacturing materials for the breast cancer vaccine's planned Phase 2 trial. Cash, cash equivalents and short-term investments ended at $13.9 million. That is only $1.3 million below where the fiscal year started, but only because Anixa sold $4.8 million of new shares during the nine months.

At a glance

• $6.1 million of cash used in operations over nine months, up 3% from $5.9 million a year earlier, even though the reported net loss shrank 7%. The cash Anixa actually spends on running the business did not fall.
• $13.9 million of cash and short-term investments at July 31, 2026. At the nine-month pace of about $2.0 million a quarter, that covers roughly 20 months before any further share sales. Management says it is enough for "significantly longer than 12 months."
• Share count up 4.8% since October 2025 (33.0 million to 34.6 million), mostly from 1,548,324 shares sold through an at-the-market program. That program can sell about $95 million more, so existing holders should expect further dilution, meaning each share owns a smaller slice of the company.

The quarter in numbers

Over the nine months the picture looks better on paper. The net loss attributable to shareholders fell to $7.69 million from $8.23 million, and the loss per share narrowed to $0.23 from $0.25. The quality check below explains why that improvement is mostly an accounting effect rather than lower spending.

What the spending bought

Anixa splits its research spending between two programs, which it reports as separate segments:

• Cancer vaccines: $921,000 in the quarter, up from $615,000. The filing attributes the increase mainly to "fluctuations in the timing of certain materials manufacturing activities" for the breast cancer vaccine, about $376,000 more than a year ago. The 10-Q also lists agreements covering "the manufacturing of materials necessary for the expected Phase 2 clinical trial of our breast cancer vaccine." The vaccine targets α-lactalbumin, a protein that healthy breast tissue makes only during breastfeeding but that reappears in many breast cancers, especially triple-negative breast cancer (TNBC), the deadliest type. Final Phase 1 data, presented in December 2025, met all primary endpoints. The trial reached its maximum tolerated dose without safety problems, and 74% of participants showed the immune response the protocol defined. The planned Phase 2 trial will give the vaccine before surgery to test whether it actually shrinks tumors. It still needs FDA consultations, a protocol, manufacturing and trial sites before it can start, and the filing gives no start date.
• CAR-T therapy (lira-cel): $405,000, down from $440,000. CAR-T means a patient's own immune T cells are re-engineered to attack cancer. Lira-cel targets a hormone receptor found on ovarian cancer cells. It is being tested at Moffitt Cancer Center in a Phase 1 dose-escalation trial, where each new group of patients gets a higher dose to find the highest safe level. In June 2026 the first patient in a new cohort received a dose 100 times higher than the first group, and the company says it "appeared to be safe and well-tolerated." Fourteen patients have been treated. Four have lived more than a year after treatment, and the longest-surviving patient has lived 28 months. The company itself calls this evidence "anecdotal": the trial is designed to test safety, it has no control group, and the patients had already failed other treatments. The full study could take two to three more years.

A third program, an ovarian cancer vaccine, costs Anixa very little. The National Cancer Institute's PREVENT program is paying for virtually all of its preclinical work.

What the headline numbers hide

• The smaller nine-month loss is mostly lower stock-based pay, not lower spending. Stock-based compensation is pay in shares or options: it counts as an expense but uses no cash. It fell to $2.13 million in the first nine months from $2.90 million a year earlier. Strip it out and cash used in operations rose to $6.12 million from $5.92 million. So the reported loss fell $560,000, but the actual cash outflow went up.
• Cash costs rose 31% in the quarter. Total operating expenses minus stock-based pay were about $2.07 million in Q3, against $1.58 million a year earlier. Research spending on that basis rose to about $1.04 million from $0.70 million. The rise in the headline loss (12% on expenses, 15% on the net loss) understates how much faster cash is going out.
• The cash balance held up because of share sales. Over nine months, Anixa raised $4.81 million net by selling 1,548,324 shares at an average gross price of about $3.24. Without that money, cash and investments would have fallen about $6.1 million instead of $1.3 million.
• Interest income is fading. It fell to $112,000 from $156,000 in the quarter, which the filing puts down to a smaller investment balance and lower interest rates. It now covers about 4% of operating expenses.
• Commitments ahead. Anixa says payments under its development and manufacturing agreements could total about $2.4 million over up to three years, depending on results. It also owes about $150,000 under license agreements over the next twelve months. Its office lease runs to 2029 at about $209,000 in total.
• No unusual items. The quarter had no revenue, no debt, no impairments and no restructuring charges. The only distortion is the one above: falling non-cash stock pay is making the reported loss look better than the cash.

Takeaway: Anixa's reported loss is improving on paper while the cash it actually spends is rising, driven by Phase 2 vaccine manufacturing. The $13.9 million balance looks stable only because new shares are sold as cash goes out, and a funded Phase 2 trial would likely mean faster spending and more share sales.

What to watch next

Management gives no financial guidance. It says cash will last "significantly longer than 12 months" from September 9, 2026, and that it saves money by having partners do the work: Cleveland Clinic runs the vaccine trials (the breast cancer Phase 1 was paid for by a Department of Defense grant to Cleveland Clinic), Moffitt runs the CAR-T trial, and the NCI pays for the ovarian vaccine work. That model is why the company spends only about $2 million a quarter. It also means the timing of the next milestones depends partly on partners' schedules.

Three things to watch:

1. The breast cancer vaccine Phase 2. Who pays for it matters: a grant or partner, or Anixa's own cash. A self-funded Phase 2 would likely push spending well above the current pace and shorten the roughly 20 months the cash covers today.
2. The lira-cel dose escalation. Watch whether the 100x cohort completes without serious side effects and whether the company sets a maximum tolerated dose. That would let the trial move on to measuring whether the treatment works.
3. ATM usage. With about $95 million of capacity left under the program, the share count in the fiscal 2026 10-K, expected around mid-January 2027, will show how much of the spending shareholders are funding through dilution.

Our view: the spending profile is disciplined for a company with two programs in clinical trials. But the trend has turned upward as the vaccine moves toward Phase 2, and the balance sheet has room for that step only if the company keeps selling shares.