CSBR Champions Oncology Inc.

Risks

• We historically incurred losses from operating activities, may require significant capital and may never achieve sustained profitability.
• We may incur greater costs than anticipated, which could result in sustained losses.
• We may not be able to implement our business strategies which could impair our ability to continue operations.
• Our business could be adversely impacted by changes in FDA’s regulatory oversight of laboratory-developed tests such as our POS services that are currently under consideration or by other changes in the regulatory requirements applicable to our POS services imposed by the FDA or regulatory authorities in other countries in which our services are provided.
• Our laboratories are subject to regulation and licensure requirements, and the healthcare industry is highly regulated; we may face substantial penalties, and our business activities may be impacted, if we fail to comply.
• If our laboratory facilities are damaged or destroyed, or we have a dispute with one of our landlords, our business would be negatively affected.
• Any health crisis impacting our colony of laboratory mice could have a negative impact on our business.
• We have limited experience marketing and selling our products and may need to rely on third parties to successfully market and sell our products and generate revenues.
• We will continue to be dependent upon key employees.
• Because our industry is very competitive and many of our competitors have substantially greater capital resources and more experience in research and development, we may not succeed in selling or increasing sales of our products and technologies.
• If we are unable to protect our intellectual property, we may not be able to compete as effectively.
• If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.
• Claims by others that our products infringe their patents or other intellectual property rights could adversely affect our financial condition.
• Patients are unable to obtain reimbursement from third-party payers for our services, limiting the market acceptance of our services, and as a result we may not achieve significant revenues.
• TOS studies are subject to cancellation based on changes in customer’s development plans.
• Our ability to use our net operating loss carry-forwards and certain other tax attributes may be limited.
• We have a limited market for our common stock, which makes our securities very speculative.
• Investment in our common stock may be diluted if we issue additional shares in the future.
• Our stock price is volatile and therefore investors may not be able to sell their common stock at or above the price they paid for it.
• Certain provisions of our charter and bylaws and of our contractual agreements contain provisions that could delay and discourage takeover attempts and any attempts to replace our current management by shareholders.
• Our management and three significant stockholders collectively own a substantial majority of our common stock.
• We have not paid any cash dividends in the past and have no plans to issue cash dividends in the future, which could cause the value of our common stock to have a lower value than other similar companies which do pay cash dividends.
• If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they change their recommendations regarding our common stock adversely, the price of our common stock and trading volume could decline.