Commitments and Contingencies

12 Months Ended

Apr. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Note 4. Commitments and Contingencies

Operating Leases

As of April 30, 2012, we lease the following facilities under non-cancelable operating lease agreements:

· One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as our corporate headquarters and consists of approximately 3,800 square feet of office space. The lease expires in April 2014. We incurred $71,000 of rental costs in fiscal 2012 relative to this lease. No rental costs were incurred in fiscal 2011 relative to this lease.

· 855 North Wolfe Street, Suite 619, Baltimore, Maryland 21205, which consists of approximately 1,650 square feet of laboratories and office space where we conduct operations related to our primary service offerings.  The lease expires in June 2014. We incurred $65,000 and $53,000 of rental costs relative to this lease in fiscal 2012 and 2011, respectively.

· 17 Hatidhar Street, Ra’anana, Israel, which consists of approximately 1,500 square feet and serves as office headquarters for Champions Oncology, Israel. The lease expires in July 2012; however the Company plans to extend this lease. We incurred $29,000 and $11,000 of rental costs relative to this lease in fiscal 2012 and 2011, respectively.

Future minimum lease payments due each fiscal year are as follows (in thousands):

2013	162,000
2014	141,000
Total	303,000

As we intend to extend the lease in Israel, of the minimum lease payments in the table above, $28,000 and $7,000 relate to anticipated future lease payments in fiscal 2013 and 2014, respectively.

Research and Development Materials Purchase Agreement

In February 2010, the Company entered into a research and development materials purchase agreement with a foreign hospital for the acquisition of TumorGrafts.  Under the agreement, the Company made monthly payments to the foreign hospital of approximately $37,000, commencing March 1, 2010 and ending April 1, 2011.  The accrued liability outstanding at April 30, 2011 was $147,000. The Company entered into a Mutual Release Agreement on December 15, 2011 and reversed this liability.

Legal Matters

The Company is party to certain legal matters arising in the ordinary course of its business.  The Company has evaluated its potential exposure to these legal matters and noted no such exposures. The Company is not aware of any other matters that would have a material impact on the Company’s financial position or results of operations.

Registration Payment Arrangements

The Company has entered into registration rights agreements in connection with a private placement of its securities, which closed during April 2011 and is discussed more fully in Note 7.  This registration rights agreement contains provisions that may call for the Company to pay penalties in certain circumstances.  This registration payment arrangement primarily relates to the Company’s ability to file a registration statement within a particular time period, have a registration statement declared effective within a particular time period and to maintain the effectiveness of the registration statement for a particular time period.  The Company does not believe it is probable that penalty payments will be made for the registration rights agreement discussed above and, accordingly, has not accrued for such potential penalties as of April 30, 2012 and 2011.