Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2018 | Feb. 28, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Ocean Power Technologies, Inc. | |
Entity Central Index Key | 1,378,140 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 18,350,927 | |
Trading Symbol | OPTT | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 14,369 | $ 8,421 |
Marketable securities | 25 | 25 |
Restricted cash- short-term | 382 | 334 |
Accounts receivable | 48 | |
Unbilled receivables | 2 | 296 |
Litigation receivable | 350 | |
Other current assets | 767 | 622 |
Total current assets | 15,895 | 9,746 |
Property and equipment, net | 657 | 170 |
Restricted cash- long-term | 154 | 154 |
Other noncurrent assets | 3 | 3 |
Total assets | 16,709 | 10,073 |
Current liabilities: | ||
Accounts payable | 234 | 586 |
Accrued expenses | 1,689 | 3,059 |
Litigation payable | 350 | |
Warrant liabilities | 241 | 323 |
Current portion of capital lease obligations | 31 | 35 |
Deferred credits payable current | 600 | 600 |
Total current liabilities | 3,145 | 4,603 |
Long-term portion of capital lease obligations | 1 | 23 |
Deferred rent | 140 | |
Total liabilities | 3,286 | 4,626 |
Commitments and contingencies | ||
Ocean Power Technologies, Inc. stockholders' equity: | ||
Preferred stock, $0.001 par value; authorized 5,000,000 shares, none issued or outstanding | ||
Common stock, $0.001 par value; authorized 50,000,000 shares, issued 18,424,939 and 6,313,996 shares, respectively | 18 | 6 |
Treasury stock, at cost; 74,012 and 48,065 shares, respectively | (300) | (263) |
Additional paid-in capital | 208,130 | 193,234 |
Accumulated deficit | (194,284) | (187,370) |
Accumulated other comprehensive loss | (141) | (160) |
Total stockholders' equity | 13,423 | 5,447 |
Total liabilities and stockholders’ equity | $ 16,709 | $ 10,073 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 31, 2018 | Apr. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,424,939 | 6,313,996 |
Treasury stock, shares | 74,012 | 48,065 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 221 | $ 289 | $ 593 | |
Cost of revenues | 363 | 193 | 615 | |
Gross profit/(loss) | (142) | 96 | (22) | |
Operating expenses: | ||||
Product development costs | 1,318 | 950 | 3,398 | 3,894 |
Selling, general and administrative costs | 1,576 | 1,617 | 4,964 | 4,859 |
Total operating expenses | 2,894 | 2,567 | 8,362 | 8,753 |
Operating loss | (2,894) | (2,709) | (8,266) | (8,775) |
Gain/(loss) due to the change in fair value of warrant liabilities | 14 | (104) | 82 | 1,161 |
Interest income, net | 42 | 24 | 51 | 26 |
Other income | 4 | 4 | ||
Foreign exchange gain/(loss) | 52 | (26) | 107 | (20) |
Loss before income taxes | (2,782) | (2,815) | (8,022) | (7,608) |
Income tax benefit | 1,119 | 698 | 1,119 | 698 |
Net loss | $ (1,663) | $ (2,117) | $ (6,903) | $ (6,910) |
Basic and diluted net loss per share | $ (0.09) | $ (0.37) | $ (0.48) | $ (1.84) |
Weighted average shares used to compute basic and diluted net loss per share | 18,150,494 | 5,783,494 | 14,441,383 | 3,763,564 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,663) | $ (2,117) | $ (6,903) | $ (6,910) |
Foreign currency translation adjustment | 11 | 3 | 19 | (38) |
Total comprehensive loss | $ (1,652) | $ (2,114) | $ (6,884) | $ (6,948) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Jan. 31, 2018 - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Apr. 30, 2017 | $ 6 | $ (263) | $ 193,234 | $ (187,370) | $ (160) | $ 5,447 |
Balance, shares at Apr. 30, 2017 | 6,313,996 | (48,065) | ||||
Net loss | (6,903) | (6,903) | ||||
Stock based compensation | 250 | 250 | ||||
Issuance of restricted stock, net | ||||||
Issuance of restricted stock, net, shares | 178,756 | |||||
Sale of stock, net of financing costs | $ 12 | $ 14,635 | $ 14,647 | |||
Sale of stock, net of financing costs, shares | 11,932,187 | |||||
Acquisition of treasury stock | $ (37) | (37) | ||||
Acquisition of treasury stock, shares | (25,947) | |||||
Adoption of accounting standard update related to stock compensation accounting (ASU 2016-09) | $ 11 | $ (11) | ||||
Other comprehensive loss | 19 | 19 | ||||
Balance at Jan. 31, 2018 | $ 18 | $ (300) | $ 208,130 | $ (194,284) | $ (141) | $ 13,423 |
Balance, shares at Jan. 31, 2018 | 18,424,939 | (74,012) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (6,903) | $ (6,910) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Foreign exchange (gain)/loss | (107) | 20 |
Depreciation | 79 | 104 |
Loss on disposal of property, plant and equipment | 5 | |
Compensation expense related to stock option grants and restricted stock | 250 | 998 |
Change in fair value of warrant liabilities | (82) | (1,161) |
Payment for litigation settlement | (500) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 48 | |
Unbilled receivable | 294 | (286) |
Other assets | (8) | (53) |
Accounts payable | (356) | (186) |
Accrued expenses | (1,399) | 461 |
Deferred rent | 2 | |
Unearned revenues | (39) | |
Net cash used in operating activities | (8,177) | (7,552) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (25) | (25) |
Maturities of marketable securities | 25 | 75 |
Leasehold improvements and purchase of equipment | (554) | (22) |
Net cash (used in) provided by investing activities | (554) | 28 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock and related warrants, net of costs | 14,647 | 12,150 |
Payment of capital lease obligations | (26) | (70) |
Acquisition of treasury stock | (37) | (122) |
Net cash provided by financing activities | 14,584 | 11,958 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 143 | (55) |
Net increase in cash, cash equivalents and restricted cash | 5,996 | 4,379 |
Cash, cash equivalents and restricted cash, beginning of period | 8,909 | 7,030 |
Cash, cash equivalents and restricted cash, end of period | 14,905 | 11,409 |
Supplemental schedule of cash flows information: | ||
Cash paid for interest | 3 | 4 |
Supplemental disclosure of noncash investing activities: | ||
Acquisition of leasehold improvements and equipment through accounts payable | 3 | |
Acquisition of leasehold improvements and equipment through accrued expenses | 13 | |
Noncash investing and financing activities | $ 16 |
Background, Basis of Presentati
Background, Basis of Presentation and Liquidity | 9 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Background, Basis of Presentation and Liquidity | (1) Background, Basis of Presentation and Liquidity a) Background Ocean Power Technologies, Inc. (the “Company”) was founded in 1984 in New Jersey, commenced business operations in 1994 and re-incorporated in Delaware in 2007. The Company is developing and commercializing its proprietary systems that generate electricity by harnessing the renewable energy of ocean waves. The Company uses proprietary technologies that convert the mechanical energy created by the heaving motion of ocean waves into electricity. The Company has designed and continues to develop the PowerBuoy™ product line which is based on modular, ocean-going buoys, which the Company has been periodically ocean testing since 1997. The Company markets its PowerBuoys™ in the United States and internationally. Since fiscal 2002, government agencies have accounted for a significant portion of the Company’s revenues. These revenues were largely for the support of product development efforts. The Company’s goal is that an increased portion of its revenues be from the sale or lease of products and maintenance services, as compared to revenue to support its product development efforts. As the Company continues to advance its proprietary technologies, it expects to continue to have a net decrease in cash from operating activities unless and until it achieves positive cash flow from the planned commercialization of products and services. b) Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The interim operating results are not necessarily indicative of the results for a full year or for any other interim period. Further information on potential factors that could affect the Company’s financial results can be found in the Company’s Annual Report on Form 10-K for the year ended April 30, 2017 filed with the Securities and Exchange Commission (“SEC”) and elsewhere in this Form 10-Q. c) Liquidity/Going Concern The consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has experienced substantial and recurring losses from operations, which have contributed to an accumulated deficit of $194.3 million as of January 31, 2018. As of January 31, 2018, the Company had approximately $14.4 million in cash and cash equivalents on hand. The Company generated revenues of $0.3 million and $0.6 million during each of the nine months ended January 31, 2018 and 2017. Based on the Company’s cash, cash equivalents and marketable securities as of January 31, 2018, the Company believes that it will be able to finance its capital requirements and operations into at least the quarter ending April 30, 2019. The Company will require additional equity and/or debt financing to continue its operations. The Company cannot provide assurances that it will be able to secure additional funding when needed or at all, or, if secured, that such funding would be on favorable terms. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. Management is evaluating different strategies to obtain the required additional funding for future operations. These strategies may include, but are not limited to, continued pursuit of business opportunities, additional funding from current or new investors, officers and directors; borrowings of debt; a public offering of the Company’s equity or debt securities; partnerships and/or collaborations. There can be no assurance that any of these future-funding efforts will be successful. In fiscal 2017 and the nine months ended January 31, 2018, the Company has continued to make investments in ongoing product development efforts in anticipation of future growth. The Company’s future results of operations involve significant risks and uncertainties. Factors that could affect the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, risks from lack of available financing and insufficient capital, performance of PowerBuoys™, its inability to market and commercialize its PowerBuoys™, technology development, scalability of technology and production, dependence on skills of key personnel, concentration of customers and suppliers, deployment risks and laws, regulations and permitting. In order to continue to implement its business strategy, the Company requires additional equity and/or debt financing. The Company closed five equity financing arrangements during the 21-month period ended January 31, 2018. The Company does not currently have any committed sources of debt or equity financing, and the Company cannot assure that additional equity and/or debt financing will be available to the Company as needed on acceptable terms, or at all. Historically, the Company has raised capital through securities sales in the public capital markets. If sufficient additional financing is not obtained when needed, the Company may be required to further curtail or limit operations, product development costs, and/or selling, general and administrative activities in order to reduce its cash expenditures. This could cause the Company to be unable to execute its business plan, take advantage of future opportunities and may cause it to scale back, delay or eliminate some or all of its product development activities and/or reduce the scope of or cease its operations. On June 2, 2016, the Company entered into a securities purchase agreement, which was amended on June 7, 2016 (as amended, the “Purchase Agreement”) with certain institutional purchasers (the “June Purchasers”). Pursuant to the terms of the June Purchase Agreement, the Company sold an aggregate of 417,000 shares of Common Stock together with warrants to purchase up to an aggregate of 145,952 shares of Common Stock. Each share of Common Stock was sold together with a warrant to purchase 0.35 of a share of Common Stock at a combined purchase price of $4.60. The net proceeds to the Company from the offering were approximately $1.7 million, after deducting placement agent fees and estimated offering expenses payable by the Company, but excluding the proceeds, if any, from the exercise of the warrants issued in the offering. The warrants have an exercise price of $6.08 per share, became exercisable on December 3, 2016 (“Initial Exercise Date”), and will expire five years following the Initial Exercise Date. The Company paid the placement agents approximately $0.1 million as placement agent fees in connection with the sale of securities in the offering. The Company also reimbursed the placement agents $35,000 for their out of pocket and legal expenses in connection with the offering. On July 22, 2016, the Company entered into the Second Amendment to the Purchase Agreement (the “Second Amended Purchase Agreement”) with certain purchasers (the “July Purchasers”). Pursuant to the terms of the Second Amended Purchase Agreement, the Company sold an aggregate of 595,000 shares of Common Stock together with warrants to purchase up to an aggregate of 178,500 shares of Common Stock. Each share of Common Stock was sold together with a warrant to purchase 0.30 of a share of Common Stock at a combined purchase price of $6.75. The net proceeds to the Company from the offering were approximately $3.6 million, after deducting placement agent fees and estimated offering expenses payable by the Company, but excluding the proceeds, if any, from the exercise of the warrants issued in the offering. The Warrants were exercisable immediately at an exercise price of $9.36 per share. The Warrants will expire on the fifth (5th) anniversary of the initial date of issuance. On October 19, 2016, the Company sold 2,760,000 shares of common stock at a price of $2.75 per share, which includes the sale of 360,000 shares of the Company’s common stock sold by the Company pursuant to the exercise, in full, of the over-allotment option by the underwriters in a public offering. The net proceeds to the Company from the offering were approximately $6.9 million, after deducting underwriter fees and offering expenses payable by the Company. On May 2, 2017, the Company sold 6,192,750 shares of common stock at a price of $1.30 per share, which includes the sale of 807,750 shares of the Company’s common stock sold by the Company pursuant to the exercise, in full, of the over-allotment option by the underwriters in a public offering. The net proceeds to the Company from the offering were approximately $7.2 million, after deducting underwriter fees and offering expenses payable by the Company. On October 23, 2017, the Company sold 5,739,437 shares of common stock at a price of $1.42 per share in a best efforts public offering. The net proceeds to the Company from the offering were approximately $7.4 million, after deducting placement fees and offering expenses payable by the Company. On December 1, 2017, the Company filed a registration statement on Form S-3 with the SEC using a “shelf” registration process, which became effective December 12, 2017. Under this shelf registration process, we may from time to time sell any combination of the securities described in the registration statement in one or more offerings for an aggregate offering price of up to $30 million. The amount to be registered under the shelf registration consists of up to $30 million of an indeterminate amount of common stock, preferred stock, debt securities, warrants and/or units. There is also being registered under the shelf registration a currently indeterminate number of (i) shares of common stock or other securities of us as may be issued upon conversion of, or in exchange for, convertible or exchangeable debt securities and/or preferred stock registered under the registration statement, or (ii) shares of preferred stock, common stock, debt securities or units as may be issued upon exercise of warrants registered by the registration statement, as the case may be. As of January 31, 2018, the Company has not issued any securities under this registration statement. The sale of additional equity or convertible securities could result in dilution to stockholders. If additional funds are raised through the issuance of debt securities, these securities could have rights senior to those associated with the Company’s Common Stock and could contain covenants that would restrict its operations. Financing may not be available in amounts or on terms acceptable to the Company, or at all. If the Company is unable to obtain required financing, it may be required to reduce the scope of its operations, including its planned product development and marketing efforts, which could materially and adversely harm its financial condition and operating results. If the Company is unable to secure additional financing, it may be forced to cease operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Consolidation The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the recoverability of the carrying amount of property and equipment; fair value of warrant liabilities, valuation allowances for receivables and deferred income tax assets; estimated costs to complete projects; and percentage of completion of customer contracts for purposes of revenue recognition. Actual results could differ from those estimates. The current economic environment, particularly the macroeconomic pressures in certain European countries, has increased the degree of uncertainty inherent in those estimates and assumptions. (c) Revenue Recognition The Company’s contracts are either cost plus or fixed price contracts. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee. Under cost plus contracts, a profit or loss on a project is recognized depending on whether actual costs are more or less than the agreed upon amount. The Company has two types of fixed price contracts, firm fixed price and cost-sharing. Under firm fixed price contracts, the Company receives an agreed-upon amount for providing products and services specified in the contract, a profit or loss is recognized depending on whether actual costs are more or less than the agreed upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a portion of the costs on a specific project. Under cost sharing contracts, an amount corresponding to the revenue is recorded in cost of revenues, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product development expense. Generally, revenue under fixed price or cost-plus contracts is recognized using the cost to cost percentage-of-completion method, measured by the ratio of costs incurred to total estimated costs at completion. In certain circumstances, revenue under contracts that have specified milestones or other performance criteria may be recognized only when the customer acknowledges that such criteria have been satisfied. If an arrangement involves multiple deliverables, the delivered items are considered separate units of accounting if the items have value on a stand-alone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately or competitor prices for similar products or services. In addition, recognition of revenue (and the related costs) may be deferred for fixed price contracts until contract completion if the Company is unable to reasonably estimate the total costs of the project prior to completion. These contracts are subject to interpretation and management may make a judgment as to the amount of revenue earned and recorded. Because the Company has a small number of contracts, revisions to the percentage-of-completion determination, management interpretation or delays in meeting performance and contractual criteria or in completing projects may have a significant effect on revenue for the periods involved. Upon anticipating a loss on a contract, the Company recognizes the full amount of the anticipated loss in the current period. Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are normally billed and collected within one year. Billings made on contracts are recorded as a reduction of unbilled receivables, and to the extent that such billings and cash collections exceed costs incurred plus applicable profit margin, they are recorded as unearned revenues. (d) Cash, Cash Equivalents, Restricted Cash and Security Agreements Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in a money market account. January 31, 2018 April 30, 2017 (in thousands) Checking and savings accounts $ 1,233 $ 4,241 Overnight repurchase account - 4,180 Money market account 13,136 - $ 14,369 $ 8,421 Restricted Cash and Security Agreements A portion of the Company’s cash is restricted under the terms of two security agreements. One agreement is between the Company and Barclays Bank. Under this agreement, the cash is on deposit at Barclays Bank and serves as security for letters of credit and bank guarantees that are expected to be issued by Barclays Bank on behalf of OPT LTD, one of the Company’s subsidiaries, under a credit facility established by Barclays Bank for OPT LTD. The credit facility is approximately €0.3 million ($0.4 million) and carries a fee of 1% per annum of the amount of any such obligations issued by Barclays Bank. The credit facility does not have an expiration date, but is cancelable at the discretion of the bank. As of January 31, 2018, there was €0.3 million ($0.4 million) in letters of credit outstanding under this agreement. The second agreement is between the Company and Santander Bank. Under this agreement, the cash is on deposit at Santander Bank and serves as security for letter of credit issued by Santander Bank for the lease of new warehouse/office space in Monroe Township, New Jersey. The agreement cannot be extended beyond January 31, 2025, and is cancelable at the discretion of the bank. Restricted cash includes the following: January 31, 2018 April 30, 2017 (in thousands) Barclay's Bank Agreement $ 382 $ 334 Santander Bank 154 154 $ 536 $ 488 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. January 31, 2018 April 30, 2017 (in thousands) Cash and cash equivalents $ 14,369 $ 8,421 Restricted cash- short term 382 334 Restricted cash- long term 154 154 $ 14,905 $ 8,909 (e) Marketable Securities Marketable securities with original maturities longer than three months but that mature in less than one year from the balance sheet date are classified as current assets. Marketable securities that the Company has the intent and ability to hold to maturity are classified as investments held-to-maturity and are reported at amortized cost. The difference between the acquisition cost and face values of held-to-maturity investments is amortized over the remaining term of the investments and added to or subtracted from the acquisition cost and interest income. As of January 31, 2018, and April 30, 2017, all of the Company’s investments were classified as held-to-maturity. (f) Foreign Exchange Gains and Losses The Company has invested in certain certificates of deposit and has maintained cash accounts that are denominated in British pounds sterling, Euros and Australian dollars. These amounts are included in cash, cash equivalents, restricted cash and marketable securities on the accompanying consolidated balance sheets. Such positions may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain/(loss)” in the accompanying consolidated statements of operations. (g) Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives (three to seven years) of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs are charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. (h) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances, bank certificates of deposit and trade receivables. The Company invests its excess cash in highly liquid investments (principally, short-term bank deposits, Treasury bills, Treasury notes and money market funds) and does not believe that it is exposed to any significant risks related to its cash accounts, money market funds or certificates of deposit. The table below shows the percentage of the Company’s revenues derived from customers whose revenues accounted for at least 10% of the Company’s consolidated revenues for at least one of the periods indicated: Three months ended January 31, Nine months ended January 31, Customer 2018 2017 2018 2017 Mitsui Engineering & Shipbuilding 0 % 56 % 75 % 83 % U.S. Department of Defense Office of Naval Research 0 % 44 % 25 % 17 % 0 % 100 % 100 % 100 % The loss of, or a significant reduction in revenues from a current customer could significantly impact the Company’s financial position or results of operations. The Company does not require its customers to maintain collateral. (i) Warrant Liabilities The Company’s warrants to purchase shares of its common stock are classified as warrant liabilities and are recorded at fair value. The warrant liabilities are subject to re-measurement at each balance sheet date and the Company recognizes any change in fair value in its consolidated statements of operations within “Change in fair value of warrant liabilities.” The Company will continue to adjust the carrying value of the warrants for changes in the estimated fair value until such time as these instruments are exercised or expire. At that time, the liabilities will be reclassified to “Additional paid-in capital”, a component of “Stockholders’ equity” on the consolidated balance sheets. (j) Net Loss per Common Share Basic and diluted net loss per share for all periods presented is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Due to the Company’s net losses, potentially dilutive securities, consisting of outstanding stock options and non-vested performance-based shares, were excluded from the diluted loss per share calculation due to their anti-dilutive effect. In computing diluted net loss per share, options to purchase shares of common stock, warrants on common stock and non-vested restricted stock issued to employees and non-employee directors, totaling 915,183 for the three and nine months ended January 31, 2018 and 680,429 for the three and nine months ended January 31, 2017, were excluded from each of the computations as the effect would be anti-dilutive due to the Company's losses. (k) Share-Based Compensation Costs resulting from all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The following table summarizes share-based compensation related to the Company’s share-based plans by expense category for the three and nine months ended January 31, 2018 and 2017: Three months ended January 31, Nine months ended January 31, 2018 2017 2018 2017 (in thousands) Product development $ 5 $ 135 $ 11 $ 418 Selling, general and administrative 72 235 239 580 Total share-based compensation expense $ 77 $ 370 $ 250 $ 998 (l) Deferred Rent On March 31, 2017, the Company signed a new 7-year lease for approximately 56,000 square feet in Monroe Township, New Jersey that will be used as warehouse/production space and the Company’s principal offices and corporate headquarters. The lease was classified as an operating lease. Rent payments relating to the Monroe premises are subject to annual increases. The minimum monthly payments will vary over the 7-year term of the lease. The Company will record rent expense on a straight-line basis over the 7-year term of the lease. The difference between rent expense and the monthly lease payment will go to a deferred rent/prepaid rent account. The Landlord has provided the Company a tenant improvement allowance in an amount up to, but not exceeding, $137,563 to be applied to the cost of tenant improvement work. The Company recorded lease incentive liability to deferred rent. The Company will release the lease incentive liability on a straight-line basis over the 7-year term to rent expense. (m) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606).” In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”, In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842 In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718).” In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”, In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, |
Marketable Securities
Marketable Securities | 9 Months Ended |
Jan. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | (3) Marketable Securities Marketable securities with initial maturities greater than three months but that mature within one year from the balance sheet date are classified as current assets and are summarized as follows: January 31, 2018 April 30, 2017 (in thousands) Certificate of Deposit $ 25 $ 25 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accrued Expenses | (4) Accrued Expenses Accrued expenses consist of the following at January 31, 2018 and April 30, 2017. January 31, 2018 April 30, 2017 (in thousands) Project costs $ 44 $ 898 Contract loss reserve 199 238 Employee incentive payments 554 643 Accrued salary and benefits 389 484 Legal and accounting fees 197 478 Accrued taxes payable 132 132 Other 174 186 $ 1,689 $ 3,059 |
Deferred Credits Payable
Deferred Credits Payable | 9 Months Ended |
Jan. 31, 2018 | |
Deferred Credits Payable | |
Deferred Credits Payable | (5) Deferred Credits Payable During the year ended April 30, 2001, in connection with the sale of common stock to an investor, the Company received $0.6 million from the investor in exchange for an option to purchase up to 500,000 metric tons of carbon emissions credits generated by the Company during the years 2008 through 2012, at a 30% discount from the then-prevailing market rate. If the Company received emission credits under applicable laws and failed to sell to the investor the credits up to the full amount of emission credits covered by the option, the investor was entitled to liquidated damages equal to 30% of the aggregate market value of the shortfall in emission credits (subject to a limit on the market price of emission credits). Under the terms of the agreement, if the Company did not become entitled under applicable laws to the full amount of emission credits covered by the option by December 31, 2012, the Company was obligated to return the option fee of $0.6 million, less the aggregate discount on any emission credits sold to the investor prior to such date. In December 2012, the Company and the investor agreed to extend the period for the sale of emission credits until December 31, 2017. As of January 31, 2018, the Company has not generated any emissions credits eligible for purchase under the agreement. As a result, the Company anticipates returning the option fee of $0.6 million. Therefore, the $0.6 million is reflected in the consolidated balance sheets within “Deferred credits payable current” as of January 31, 2018 and April 30, 2017, respectively. |
Warrants
Warrants | 9 Months Ended |
Jan. 31, 2018 | |
Warrants | |
Warrants | (6) Warrants On June 2, 2016, the Company entered into a securities purchase agreement, which was amended on June 7, 2016 (as amended, the “June Purchase Agreement”) with certain institutional purchasers (the “June Purchasers”). Pursuant to the terms of the June Purchase Agreement, the Company sold an aggregate of 417,000 shares of Common Stock together with warrants to purchase up to an aggregate of 145,952 shares of Common Stock. Each share of Common Stock was sold together with a warrant to purchase 0.35 of a share of Common Stock at a combined purchase price of $4.60. The warrants have an exercise price of $6.08 per share, became exercisable on December 3, 2016 (“Initial Exercise Date”), and will expire five years following the Initial Exercise Date. On July 22, 2016, the Company entered into a Second Amendment to the Purchase Agreement (the “Second Amended Purchase Agreement”) with certain institutional purchasers (the “July Purchasers”). Pursuant to the terms of the Second Amended Purchase Agreement, the Company sold an aggregate of 595,000 shares of Common Stock together with warrants to purchase up to an aggregate of 178,500 shares of Common Stock. Each share of Common Stock was sold together with a warrant to purchase 0.30 of a share of Common Stock at a combined purchase price of $6.75. The Warrants were exercisable immediately at an exercise price of $9.36 per share. The Warrants will expire on the fifth (5th) anniversary of the initial date of issuance. Both sets of warrants contain a feature whereby they could require the transfer of assets and therefore are classified as a liability in accordance with ASC 480. As such, the warrants had a value of $0.2 million and $0.3 million at January 31, 2018 and April 30, 2017, respectively, as reflected within “Warrant liabilities” in the unaudited consolidated balance sheets. An unrealized gain and unrealized loss of approximately $14,000 and $104,000 for the three months ended January 31, 2018 and 2017, and a unrealized gain of approximately $82,000 and $1,161,000 for the nine months ended January 31, 2018 and 2017, respectively, were included within “Change in fair value of warrant liability” in the consolidated statements of operations. The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions: January 31, 2018 January 31, 2017 Dividend rate 0.0 % 0.0 % Risk-free rate 2.3% - 2.4 % 1.9 % Expected life (years) 3.5 - 3.8 4.5 - 4.9 Expected volatility 137.5% - 145.2 % 129.0% - 138.2 % |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Jan. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | (7) Stock-Based Compensation In 2007, the Company’s 2006 Stock Incentive Plan (the “2006 Plan”) became effective. A total of 80,321 shares were authorized for issuance under the 2006 Plan. In 2009, an amendment to the 2006 Plan was approved by the Company’s stockholders, increasing the aggregate number of shares authorized for issuance by 85,000 shares to 165,321. On October 2, 2013, a further amendment to the 2006 Plan was approved by the Company’s stockholders, increasing the aggregate number of shares authorized for issuance by an additional 80,000 shares to 245,321. The Company’s employees, officers, directors, consultants and advisors were eligible to receive awards under the 2006 Plan. The 2006 Plan was administered by the Company’s board of directors, who were authorized to delegate authority to one or more committees or subcommittees of the board of directors or to the Company’s officers. The 2006 Plan was terminated in December 2015 and unused shares in that plan were transferred to the 2015 Omnibus Incentive Plan. In 2015, upon approval by the Company’s stockholders, the Company’s 2015 Omnibus Incentive Plan (the “2015 Plan”) became effective. A total of 240,703 shares were authorized for issuance under the 2015 Omnibus Incentive Plan, including shares available for awards under the 2006 Stock Incentive Plan remaining at the time that plan terminated, or that were subject to awards under the 2006 Stock Incentive Plan that thereafter terminated by reason of expiration, forfeiture, cancellation or otherwise. On October 21, 2016 upon approval by the Company’s stockholders the Company increased the number of shares authorized for issuance to 640,703. If any award under the 2006 Stock Incentive Plan or 2015 Plan expires, is cancelled, terminates unexercised or is forfeited, those shares become again available for grant under the 2015 Plan. The 2015 Plan will terminate ten years after its effective date, in October 2025, but is subject to earlier termination as provided in the 2015 Plan. As of January 31, 2018, the Company has 84,393 shares available for future issuance under the 2015 Plan. On January 18, 2018, the Company’s Board of Directors adopted the Company’s Employment Inducement Incentive Award Plan (the “2018 Inducement Plan”) pursuant to which the Company reserved 500,000 shares of common stock for issuance under the Inducement Plan. In accordance with Rule 5635(c)(4) and Rule 5635(c)(3) of the Nasdaq Listing Rules, awards under the Inducement Plan may only be made to individuals not previously employees of the Company (or following such individuals’ bona fide period of non-employment with the Company), as an inducement material to the individuals’ entry into employment with the Company. An award is any right to receive the Company’s common stock pursuant to the 2018 Inducement Plan, consisting of a performance share award, restricted stock award, a restricted stock unit award or a stock payment award. As of January 31, 2018, there were 97,297 shares outstanding and 402,703 shares available for grant under the 2018 Inducement Plan. (a) Stock Options The Company estimates the fair value of each stock option granted, for both service-based and performance-based vesting requirements, using the Black-Scholes option pricing model, assuming no dividends, and using the weighted average valuation assumptions noted in the following table. The risk-free rate is based on the US Treasury yield curve in effect at the time of grant. The expected life (estimated period of time outstanding) of the stock options granted was estimated using the “simplified” method as permitted by the SEC’s Staff Accounting Bulletin No. 110, Share-Based Payment. Three months ended January 31, Nine months ended January 31, 2018 2017 2018 2017 Risk-free interest rate N/A N/A 2.1 % 1.3 % Expected dividend yield N/A N/A 0.0 % 0.0 % Expected life (in years) N/A N/A 5.5 5.5 Expected volatility N/A N/A 128.2 % 96.2 % A summary of stock options under our stock incentive plans is detailed in the following table. Weighted Average Weighted Remaining Shares Average Contractual Underlying Exercise Term Options Price (In Years) Outstanding as of April 30, 2017 237,214 $ 14.64 7.6 Granted 170,664 $ 1.34 Exercised - $ - Cancelled/forfeited (14,211 ) $ 90.10 Outstanding as of January 31, 2018 393,667 $ 6.15 8.2 Exercisable as of January 31, 2018 222,293 $ 9.80 7.1 As of January 31, 2018, the total intrinsic value of outstanding and exercisable options was approximately $2,000 and $2,000, respectively. As of January 31, 2018, approximately 145,669 additional options were unvested, which had no intrinsic value and a weighted average remaining contractual term of 9.7 years. There was approximately $177,000 and $224,000 of total recognized compensation cost related to stock options during each of the nine months ended January 31, 2018 and 2017, respectively. As of January 31, 2018, there was approximately $147,000 of total unrecognized compensation cost related to non-vested stock options granted under the plans. This cost is expected to be recognized over a weighted-average period of 0.7 years. The Company typically issues newly authorized but unissued shares to satisfy option exercises under these plans. (b) Restricted Stock Compensation expense for non-vested restricted stock is generally recorded based on its market value on the date of grant and recognized ratably over the associated service and performance period. During the nine months ended January 31, 2018, the Company granted 211,881 shares subject to service-based vesting requirements and no shares subject to performance-based vesting requirements. The achievement or vesting requirement of the performance-based grants is tied to the Company’s total shareholder return (“TSR”) relative to the total shareholder return of three alternative energy Exchange Traded Funds as measured over a specific performance period. No vesting of the relevant shares will occur in instances where the Company’s TSR for the relevant period is below 80% of the peer group. However, additional opportunities to vest some or all of a portion of the shares in a subsequent period may occur. Compensation expense for these awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. Restricted stock issued and unvested as of January 31, 2018 included zero shares of unvested restricted stock subjected to performance-based vesting requirements. A summary of non-vested restricted stock under our stock incentive plans is as follows: Weighted Number Average Price per of Shares Share Issued and unvested at April 30, 2017 103,412 $ 3.99 Granted 211,881 $ 1.27 Vested (85,104 ) $ 4.67 Cancelled/forfeited (33,125 ) $ 2.00 Issued and unvested at January 31, 2018 197,064 $ 1.35 There was approximately $73,000 and $775,000 of total recognized compensation cost related to restricted stock for the nine months ended January 31, 2018 and 2017, respectively. As of January 31, 2018, there was approximately $0.2 million of total unrecognized compensation cost related to unvested restricted stock granted under our plans. This cost is expected to be recognized over a weighted average period of 2.2 years. (c)Treasury Stock During the nine months ended January 31, 2018 and 2017, 25,947 and 39,882 shares, respectively, of common stock were purchased by the Company from employees to pay taxes related to the vesting of restricted stock. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (8) Fair Value Measurements The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). GAAP specifies a three-level hierarchy that is used when measuring and disclosing fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. The following is a description of the three hierarchy levels. Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Active markets are considered to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in inactive markets. Level 3 Unobservable inputs are not corroborated by market data. This category is comprised of financial and non-financial assets and liabilities whose fair value is estimated based on internally developed models or methodologies using significant inputs that are generally less readily observable from objective sources. Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfers occurred. There were no transfers between any levels during the three and nine months ended January 31, 2018 and 2017. The following information is provided to help readers gain an understanding of the relationship between amounts reported in the accompanying consolidated financial statements and the related market or fair value. The disclosures include financial instruments and derivative financial instruments, other than investment in affiliates. Following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models and significant assumptions utilized. Warrant Liabilities The fair value of the Company’s warrant liabilities (refer to Note 6) recorded in the Company’s financial statements is determined using the Black-Scholes option pricing model and the quoted price of the Company’s common stock in an active market, volatility and expected life, is a Level 3 measurement. Volatility is based on the actual market activity of the Company’s stock. The expected life is based on the remaining contractual term of the warrants and the risk-free interest rate is based on the implied yield available on U.S. Treasury Securities with a maturity equivalent to the warrants’ expected life. The following table presents financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2018. Total Carrying Value in Consolidated Balance Sheet Quoted prices in active markets for identical assets or liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Warrant liabilities $ 241 $ — $ — $ 241 The following table presents financial assets and liabilities measured at fair value on a recurring basis as of April 30, 2017. Total Carrying Value in Consolidated Balance Sheet Quoted prices in active markets for identical assets or liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Warrant liabilities $ 323 $ — $ — $ 323 The following table provides a summary of changes in fair value of the Company’s warrant liabilities held at January 31, 2018. Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Total Warrant Liability (in thousands) Fair value – April 30, 2016 $ — Issuance 1,814 Transfers — Change in fair value (1,491 ) Fair value – April 30, 2017 $ 323 Change in fair value (82 ) Fair value – January 31, 2018 $ 241 There were no re-measured assets or liabilities at fair value on a non-recurring basis during the nine months ended January 31, 2018 and 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (9) Commitments and Contingencies (a) Litigation Shareholder Litigation and Demands The Company and certain of its current and former directors and officers are defendants in a derivative lawsuit filed on March 18, 2015 in the United States District Court for the District of New Jersey captioned Labare v. Dunleavy, et. al., On July 10, 2015, a second derivative lawsuit, captioned Rywolt v. Dunleavy, et al., Rywolt Labare Rywolt On April 21, 2016, a third derivative lawsuit, captioned LaCalamito v. Dunleavy, et al., LaCalamito On June 9, 2016, a fourth derivative lawsuit, captioned Pucillo v. Dunleavy, et al., Pucillo Pucillo Pucillo Pucillo Pucillo Labar Rywolt Pucillo On October 25, 2016, the Court approved and entered a Stipulation and Order that, among other things, (i) consolidated the four derivative actions; (ii) identified plaintiff Pucillo On October 23, 2017, the parties entered into a Stipulation and Agreement of Settlement to resolve the four consolidated derivative lawsuits. If approved by the Court, the settlement provides for, among other things, the Company to implement certain corporate governance changes, a $350,000 payment to the plaintiffs’ attorneys for attorneys’ fees and costs that will be made by the Company’s insurance carrier, dismissal of the derivative lawsuits, and certain releases. On November 21, 2017, the plaintiffs filed an unopposed motion seeking preliminary approval of the settlement. The Court has not yet ruled on that motion. The Company has accrued $350,000 related to this matter as a probable and reasonably estimable loss contingency during the nine months ended January 31, 2018. The Company also recorded a receivable of $350,000 from its insurance carrier with the offset to the statement of operations. On May 26, 2017, an attorney claiming to represent two stockholders sent the Company’s Board of Directors a Stockholder Litigation Demand letter (“Stockholder Demand”). The Stockholder Demand alleges that the voting of shares for the 1-for-10 reverse stock split at the 2015 annual meeting of stockholders held on October 22, 2015 was not properly counted, and further alleges that, although the Company reported the reverse stock split as having been passed, if the vote was properly counted the reverse stock split would not have been approved. The Stockholder Demand requests the Board of Directors either to deem the reverse stock split as ineffective and disclose the same or to seek a proper and effective stockholder ratification of the reverse stock split. In addition, the Stockholder Demand requests the Board of Directors to adopt and implement adequate internal controls and systems to prevent the alleged improper voting from recurring. On June 23, 2017, the Company responded to the Stockholder Demand, explained the procedures that were followed for the 2015 annual meeting of stockholders and provided the Oath of the Inspector of Elections and the Certificate of the Inspector of Elections that certified as accurate the results of the voting at the meeting including voting on the reverse stock split proposal. On June 26, 2017, the attorney representing the alleged stockholders replied to the Company’s response, further alleged that the proxy statement underlying the 2015 annual meeting provided voting instructions that allegedly misled the stockholders regarding whether their brokers could vote on the reverse stock split proposal, and renewed their requests of the Board. On July 24, 2017, the Company provided an additional response to the Stockholders Demand, denied the allegations, and declined to take any of the actions requested. Employment Litigation On June 10, 2014, the Company announced that it had terminated Charles Dunleavy as its Chief Executive Officer and as an employee of the Company for cause, effective June 9, 2014, and that Mr. Dunleavy had also been removed from his position as Chairman of the Board of Directors. On June 17, 2014, Mr. Dunleavy wrote to the Company stating that he had retained counsel to represent him in connection with an alleged wrongful termination of his employment. On July 28, 2014, Mr. Dunleavy resigned from the Board and the boards of directors of the Company’s subsidiaries. The Company and Mr. Dunleavy have agreed to suspend his alleged employment claims pending resolution of the derivatives litigation described above. Except for the pending settlement noted previously, we have not established any provision for losses relating to these claims and pending litigation. Due to the stages of these proceedings, and considering the inherent uncertainty of these claims and litigation, at this time we are not able to predict or reasonably estimate whether we have any possible loss exposure or the ultimate outcome of these claims. (b) Regulatory Matters SEC Investigation On February 4, 2015, the Company received a subpoena from the SEC requesting information related to the VWP Project. The Company has provided information to the SEC in response to that subpoena. As part of the same investigation, on July 12, 2016, the SEC issued second subpoena requesting information related to the Company’s April 4, 2014 public offering. The Company has provided information to the SEC in response to that subpoena. The SEC investigation is ongoing and the Company continues to cooperate with the SEC in its investigation. We are unable to predict what action, if any, might be taken by the SEC or its staff as a result of this investigation or what impact, if any, the cost of responding to the SEC’s investigation or its ultimate outcome might have on our financial position, results of operations or liquidity. We have not established any provision for losses relating to this matter. Spain IVA (sales tax) In June 2012, the Company received notice that the Spanish tax authorities are inquiring into its 2010 IVA (value-added tax) filing for which the Company benefitted from the offset of approximately $0.3 million of input tax. The Company believes that the inquiry will find that the tax credit was properly claimed and, therefore, no liability has been recorded. The Company issued two letters of credit totaling €0.3 million ($0.3 million) at the request of the Spanish tax authorities. On January 31, 2017 the Company has received $0.2 million from the Spanish tax authorities as a result of the conclusion of the inquiry. In addition, during February 2017, the Spanish tax authorities approved of the release of the two outstanding letters of credit. Spain Income Tax Audit The Company is currently undergoing an income tax audit in Spain for the period from 2008 to 2014, when its Spanish branch was closed. The branch reported net operating losses for each of the years reported. It is anticipated that the Company will be assessed a penalty relating to these tax years for these losses. The Company has estimated this penalty to be $132,000, and as such, for the period ended April 30, 2017 and January 31, 2018, the Company has recorded $132,000 for this penalty to Accrued expenses in its balance sheet. |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes New Jersey Net Operating Loss During the three and nine months ended January 31, 2018, the Company recorded an income tax benefit of $1.1 million, representing the proceeds from the sale of $11.4 million of New Jersey net operating loss carryforwards and research and development tax credits. During the three and nine months ended January 31, 2017, the Company recorded an income tax benefit of $0.7 million representing the proceeds from the sale of $7.8 million of New Jersey net operating loss carryforwards and research and development tax credits. Other than the sale of New Jersey net operating loss carryforwards, the Company did not recognize any consolidated income tax benefit (expense) during the three and nine month periods ended January 31, 2018 and 2017. The Company has recorded a valuation allowance to reduce its net deferred tax asset to an amount that is more likely than not to be realized in future years. Accordingly, the benefit of the net operating loss that would have been recognized was offset by changes in the valuation allowance. Recent Tax Legislation On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease for the Company from 34% to 21% effective for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. The TCJA reduced the U.S. federal statutory tax rate for the Company from 34% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 29.7%. This is the result of using the tax rate of 34% for the number of days from the start of the fiscal year until the date of rate change and the tax rate of 21% for the number of days from the date of rate change until the end of the fiscal year. However, based upon the Company’s historical losses, the Company continues to have a full valuation allowance against all deferred tax assets. We remeasured our deferred taxes to reflect the reduced rate that will apply when these deferred taxes are settled or realized in future periods. To calculate the remeasurement of deferred taxes, we estimated when the existing deferred taxes will be settled or realized and which deferred taxes will be settled within the current year at the 34% tax rate and those that will reverse after year end at the 21% tax rate. As of January 31, 2018, we have not completed our accounting for the tax effects of the TCJA, however there is no effect on the deferred tax provision since the company has a full valuation allowance. Uncertain Tax Positions The Company applies the guidance issued by the FASB for the accounting and reporting of uncertain tax positions. The guidance requires the Company to recognize in its consolidated financial statements the impact of a tax position if that position is more likely than not to be sustained upon examination, based on the technical merits of the position. We are currently undergoing an income tax audit in Spain for the period from 2008 to 2014, when our Spanish branch was closed. The branch reported net operating losses for each of the years reported. It is anticipated that we will be assessed a penalty relating to these tax years for these losses. We have estimated this penalty to be $132,000, and as such, for the period ended April 30, 2017 and January 31, 2018, we have recorded $132,000 for this penalty to Accrued expenses in the Balance Sheet. At January 31, 2018 the Company had no other unrecognized tax positions. The Company does not expect any material increase or decrease in its income tax expense in the next twelve months, related to examinations or uncertain tax positions. U.S. federal and state income tax returns were audited through fiscal 2014 and fiscal 2010 respectively. Net operating loss and credit carry forwards since inception remain open to examination by taxing authorities, and will continue to remain open for a period of time after utilization. |
Operating Segments and Geograph
Operating Segments and Geographic Information | 9 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Operating Segments and Geographic Information | (11) Operating Segments and Geographic Information The Company’s business consists of one segment as this represents management’s view of the Company’s operations. The Company operates on a worldwide basis with one operating company in the US and operating subsidiaries in the UK and in Australia. Revenues and expenses are generally attributed to the operating unit that bills the customers. During the nine months ended January 31, 2018 and 2017, the Company’s primary business operations were in North America. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | (a) Consolidation The accompanying consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | (b) Use of Estimates The preparation of the consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant items subject to such estimates and assumptions include the recoverability of the carrying amount of property and equipment; fair value of warrant liabilities, valuation allowances for receivables and deferred income tax assets; estimated costs to complete projects; and percentage of completion of customer contracts for purposes of revenue recognition. Actual results could differ from those estimates. The current economic environment, particularly the macroeconomic pressures in certain European countries, has increased the degree of uncertainty inherent in those estimates and assumptions. |
Revenue Recognition | (c) Revenue Recognition The Company’s contracts are either cost plus or fixed price contracts. Under cost plus contracts, customers are billed for actual expenses incurred plus an agreed-upon fee. Under cost plus contracts, a profit or loss on a project is recognized depending on whether actual costs are more or less than the agreed upon amount. The Company has two types of fixed price contracts, firm fixed price and cost-sharing. Under firm fixed price contracts, the Company receives an agreed-upon amount for providing products and services specified in the contract, a profit or loss is recognized depending on whether actual costs are more or less than the agreed upon amount. Under cost-sharing contracts, the fixed amount agreed upon with the customer is only intended to fund a portion of the costs on a specific project. Under cost sharing contracts, an amount corresponding to the revenue is recorded in cost of revenues, resulting in gross profit on these contracts of zero. The Company’s share of the costs is recorded as product development expense. Generally, revenue under fixed price or cost-plus contracts is recognized using the cost to cost percentage-of-completion method, measured by the ratio of costs incurred to total estimated costs at completion. In certain circumstances, revenue under contracts that have specified milestones or other performance criteria may be recognized only when the customer acknowledges that such criteria have been satisfied. If an arrangement involves multiple deliverables, the delivered items are considered separate units of accounting if the items have value on a stand-alone basis. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately or competitor prices for similar products or services. In addition, recognition of revenue (and the related costs) may be deferred for fixed price contracts until contract completion if the Company is unable to reasonably estimate the total costs of the project prior to completion. These contracts are subject to interpretation and management may make a judgment as to the amount of revenue earned and recorded. Because the Company has a small number of contracts, revisions to the percentage-of-completion determination, management interpretation or delays in meeting performance and contractual criteria or in completing projects may have a significant effect on revenue for the periods involved. Upon anticipating a loss on a contract, the Company recognizes the full amount of the anticipated loss in the current period. Unbilled receivables represent expenditures on contracts, plus applicable profit margin, not yet billed. Unbilled receivables are normally billed and collected within one year. Billings made on contracts are recorded as a reduction of unbilled receivables, and to the extent that such billings and cash collections exceed costs incurred plus applicable profit margin, they are recorded as unearned revenues. |
Cash, Cash Equivalents, Restricted Cash and Security Agreements | (d) Cash, Cash Equivalents, Restricted Cash and Security Agreements Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The Company invests excess cash in a money market account. January 31, 2018 April 30, 2017 (in thousands) Checking and savings accounts $ 1,233 $ 4,241 Overnight repurchase account - 4,180 Money market account 13,136 - $ 14,369 $ 8,421 Restricted Cash and Security Agreements A portion of the Company’s cash is restricted under the terms of two security agreements. One agreement is between the Company and Barclays Bank. Under this agreement, the cash is on deposit at Barclays Bank and serves as security for letters of credit and bank guarantees that are expected to be issued by Barclays Bank on behalf of OPT LTD, one of the Company’s subsidiaries, under a credit facility established by Barclays Bank for OPT LTD. The credit facility is approximately €0.3 million ($0.4 million) and carries a fee of 1% per annum of the amount of any such obligations issued by Barclays Bank. The credit facility does not have an expiration date, but is cancelable at the discretion of the bank. As of January 31, 2018, there was €0.3 million ($0.4 million) in letters of credit outstanding under this agreement. The second agreement is between the Company and Santander Bank. Under this agreement, the cash is on deposit at Santander Bank and serves as security for letter of credit issued by Santander Bank for the lease of new warehouse/office space in Monroe Township, New Jersey. The agreement cannot be extended beyond January 31, 2025, and is cancelable at the discretion of the bank. Restricted cash includes the following: January 31, 2018 April 30, 2017 (in thousands) Barclay's Bank Agreement $ 382 $ 334 Santander Bank 154 154 $ 536 $ 488 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. January 31, 2018 April 30, 2017 (in thousands) Cash and cash equivalents $ 14,369 $ 8,421 Restricted cash- short term 382 334 Restricted cash- long term 154 154 $ 14,905 $ 8,909 |
Marketable Securities | (e) Marketable Securities Marketable securities with original maturities longer than three months but that mature in less than one year from the balance sheet date are classified as current assets. Marketable securities that the Company has the intent and ability to hold to maturity are classified as investments held-to-maturity and are reported at amortized cost. The difference between the acquisition cost and face values of held-to-maturity investments is amortized over the remaining term of the investments and added to or subtracted from the acquisition cost and interest income. As of January 31, 2018, and April 30, 2017, all of the Company’s investments were classified as held-to-maturity. |
Foreign Exchange Gains and Losses | (f) Foreign Exchange Gains and Losses The Company has invested in certain certificates of deposit and has maintained cash accounts that are denominated in British pounds sterling, Euros and Australian dollars. These amounts are included in cash, cash equivalents, restricted cash and marketable securities on the accompanying consolidated balance sheets. Such positions may result in realized and unrealized foreign exchange gains or losses from exchange rate fluctuations, which are included in “Foreign exchange gain/(loss)” in the accompanying consolidated statements of operations. |
Property and Equipment | (g) Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives (three to seven years) of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Expenses for maintenance and repairs are charged to operations as incurred. Property and equipment is also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, then an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. |
Concentration of Credit Risk | (h) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances, bank certificates of deposit and trade receivables. The Company invests its excess cash in highly liquid investments (principally, short-term bank deposits, Treasury bills, Treasury notes and money market funds) and does not believe that it is exposed to any significant risks related to its cash accounts, money market funds or certificates of deposit. The table below shows the percentage of the Company’s revenues derived from customers whose revenues accounted for at least 10% of the Company’s consolidated revenues for at least one of the periods indicated: Three months ended January 31, Nine months ended January 31, Customer 2018 2017 2018 2017 Mitsui Engineering & Shipbuilding 0 % 56 % 75 % 83 % U.S. Department of Defense Office of Naval Research 0 % 44 % 25 % 17 % 0 % 100 % 100 % 100 % The loss of, or a significant reduction in revenues from a current customer could significantly impact the Company’s financial position or results of operations. The Company does not require its customers to maintain collateral. |
Warrant Liabilities | (i) Warrant Liabilities The Company’s warrants to purchase shares of its common stock are classified as warrant liabilities and are recorded at fair value. The warrant liabilities are subject to re-measurement at each balance sheet date and the Company recognizes any change in fair value in its consolidated statements of operations within “Change in fair value of warrant liabilities.” The Company will continue to adjust the carrying value of the warrants for changes in the estimated fair value until such time as these instruments are exercised or expire. At that time, the liabilities will be reclassified to “Additional paid-in capital”, a component of “Stockholders’ equity” on the consolidated balance sheets. |
Net Loss Per Common Share | (j) Net Loss per Common Share Basic and diluted net loss per share for all periods presented is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Due to the Company’s net losses, potentially dilutive securities, consisting of outstanding stock options and non-vested performance-based shares, were excluded from the diluted loss per share calculation due to their anti-dilutive effect. In computing diluted net loss per share, options to purchase shares of common stock, warrants on common stock and non-vested restricted stock issued to employees and non-employee directors, totaling 915,183 for the three and nine months ended January 31, 2018 and 680,429 for the three and nine months ended January 31, 2017, were excluded from each of the computations as the effect would be anti-dilutive due to the Company's losses. |
Share-Based Compensation | (k) Share-Based Compensation Costs resulting from all share-based payment transactions are recognized in the consolidated financial statements at their fair values. The following table summarizes share-based compensation related to the Company’s share-based plans by expense category for the three and nine months ended January 31, 2018 and 2017: Three months ended January 31, Nine months ended January 31, 2018 2017 2018 2017 (in thousands) Product development $ 5 $ 135 $ 11 $ 418 Selling, general and administrative 72 235 239 580 Total share-based compensation expense $ 77 $ 370 $ 250 $ 998 |
Deferred Rent | (l) Deferred Rent On March 31, 2017, the Company signed a new 7-year lease for approximately 56,000 square feet in Monroe Township, New Jersey that will be used as warehouse/production space and the Company’s principal offices and corporate headquarters. The lease was classified as an operating lease. Rent payments relating to the Monroe premises are subject to annual increases. The minimum monthly payments will vary over the 7-year term of the lease. The Company will record rent expense on a straight-line basis over the 7-year term of the lease. The difference between rent expense and the monthly lease payment will go to a deferred rent/prepaid rent account. The Landlord has provided the Company a tenant improvement allowance in an amount up to, but not exceeding, $137,563 to be applied to the cost of tenant improvement work. The Company recorded lease incentive liability to deferred rent. The Company will release the lease incentive liability on a straight-line basis over the 7-year term to rent expense. |
Recently Issued Accounting Standards | (m) Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606).” In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”, In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842 In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718).” In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments”, In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”, |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Schedule of Cash and Cash Equivalents | January 31, 2018 April 30, 2017 (in thousands) Checking and savings accounts $ 1,233 $ 4,241 Overnight repurchase account - 4,180 Money market account 13,136 - $ 14,369 $ 8,421 |
Schedule of Cash and Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. January 31, 2018 April 30, 2017 (in thousands) Cash and cash equivalents $ 14,369 $ 8,421 Restricted cash- short term 382 334 Restricted cash- long term 154 154 $ 14,905 $ 8,909 |
Schedule of Revenue by Major Customers by Reporting Segments | The table below shows the percentage of the Company’s revenues derived from customers whose revenues accounted for at least 10% of the Company’s consolidated revenues for at least one of the periods indicated: Three months ended January 31, Nine months ended January 31, Customer 2018 2017 2018 2017 Mitsui Engineering & Shipbuilding 0 % 56 % 75 % 83 % U.S. Department of Defense Office of Naval Research 0 % 44 % 25 % 17 % 0 % 100 % 100 % 100 % |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes share-based compensation related to the Company’s share-based plans by expense category for the three and nine months ended January 31, 2018 and 2017: Three months ended January 31, Nine months ended January 31, 2018 2017 2018 2017 (in thousands) Product development $ 5 $ 135 $ 11 $ 418 Selling, general and administrative 72 235 239 580 Total share-based compensation expense $ 77 $ 370 $ 250 $ 998 |
Restricted Cash [Member] | |
Schedule of Cash and Cash Equivalents and Restricted Cash | Restricted cash includes the following: January 31, 2018 April 30, 2017 (in thousands) Barclay's Bank Agreement $ 382 $ 334 Santander Bank 154 154 $ 536 $ 488 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities | Marketable securities with initial maturities greater than three months but that mature within one year from the balance sheet date are classified as current assets and are summarized as follows: January 31, 2018 April 30, 2017 (in thousands) Certificate of Deposit $ 25 $ 25 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following at January 31, 2018 and April 30, 2017. January 31, 2018 April 30, 2017 (in thousands) Project costs $ 44 $ 898 Contract loss reserve 199 238 Employee incentive payments 554 643 Accrued salary and benefits 389 484 Legal and accounting fees 197 478 Accrued taxes payable 132 132 Other 174 186 $ 1,689 $ 3,059 |
Warrants (Tables)
Warrants (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Warrants | |
Schedule of Fair Value Assumptions Used | The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions: January 31, 2018 January 31, 2017 Dividend rate 0.0 % 0.0 % Risk-free rate 2.3% - 2.4 % 1.9 % Expected life (years) 3.5 - 3.8 4.5 - 4.9 Expected volatility 137.5% - 145.2 % 129.0% - 138.2 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used for three and nine months ended January 31, 2018 and 2017. Three months ended January 31, Nine months ended January 31, 2018 2017 2018 2017 Risk-free interest rate N/A N/A 2.1 % 1.3 % Expected dividend yield N/A N/A 0.0 % 0.0 % Expected life (in years) N/A N/A 5.5 5.5 Expected volatility N/A N/A 128.2 % 96.2 % |
Schedule of Stock Option Activity | A summary of stock options under our stock incentive plans is detailed in the following table. Weighted Average Weighted Remaining Shares Average Contractual Underlying Exercise Term Options Price (In Years) Outstanding as of April 30, 2017 237,214 $ 14.64 7.6 Granted 170,664 $ 1.34 Exercised - $ - Cancelled/forfeited (14,211 ) $ 90.10 Outstanding as of January 31, 2018 393,667 $ 6.15 8.2 Exercisable as of January 31, 2018 222,293 $ 9.80 7.1 |
Schedule of Non vested Restricted Stock Activity | A summary of non-vested restricted stock under our stock incentive plans is as follows: Weighted Number Average Price per of Shares Share Issued and unvested at April 30, 2017 103,412 $ 3.99 Granted 211,881 $ 1.27 Vested (85,104 ) $ 4.67 Cancelled/forfeited (33,125 ) $ 2.00 Issued and unvested at January 31, 2018 197,064 $ 1.35 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2018. Total Carrying Value in Consolidated Balance Sheet Quoted prices in active markets for identical assets or liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Warrant liabilities $ 241 $ — $ — $ 241 The following table presents financial assets and liabilities measured at fair value on a recurring basis as of April 30, 2017. Total Carrying Value in Consolidated Balance Sheet Quoted prices in active markets for identical assets or liabilities (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (in thousands) Warrant liabilities $ 323 $ — $ — $ 323 |
Summary of Changes on Value of Warrant Liability | The following table provides a summary of changes in fair value of the Company’s warrant liabilities held at January 31, 2018. Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Total Warrant Liability (in thousands) Fair value – April 30, 2016 $ — Issuance 1,814 Transfers — Change in fair value (1,491 ) Fair value – April 30, 2017 $ 323 Change in fair value (82 ) Fair value – January 31, 2018 $ 241 |
Background, Basis of Presenta26
Background, Basis of Presentation and Liquidity (Details Narrative) $ / shares in Units, $ in Thousands | Oct. 23, 2017USD ($)$ / sharesshares | May 02, 2017USD ($)$ / sharesshares | Oct. 19, 2016USD ($)$ / sharesshares | Jul. 22, 2016USD ($)$ / sharesshares | Jun. 02, 2016USD ($)$ / sharesshares | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2018USD ($)agreements | Jan. 31, 2017USD ($) | Apr. 30, 2017USD ($) |
Accumulated deficit | $ 194,284 | $ 194,284 | $ 187,370 | |||||||
Cash and cash equivalents, at carrying value | 14,369 | 14,369 | $ 8,421 | |||||||
Revenues | $ 221 | $ 289 | $ 593 | |||||||
Number of financing agreements closed | agreements | 5 | |||||||||
Public offering price | $ 30,000 | |||||||||
Over-Allotment Option [Member] | ||||||||||
Number of common stock shares sold | shares | 807,750 | 360,000 | ||||||||
Securities Purchase Agreement [Member] | ||||||||||
Number of common stock shares sold | shares | 417,000 | |||||||||
Warrant to purchase shares common stock | shares | 145,952 | |||||||||
Class of warrant or right, number of securities called by each warrant or right | shares | 0.35 | |||||||||
Combined purchase price per share | $ / shares | $ 4.60 | |||||||||
Proceeds from issuance or sale of equity | $ 1,700 | |||||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 6.08 | |||||||||
Class of warrant or right, expiration period | 5 years | |||||||||
Securities Purchase Agreement [Member] | Placement Agents [Member] | Placement Agent Fees [Member] | ||||||||||
Payments of stock issuance costs | $ 100 | |||||||||
Securities Purchase Agreement [Member] | Placement Agents [Member] | Pocket and Legal Expenses [Member] | ||||||||||
Payments of stock issuance costs | $ 35 | |||||||||
Second Amended Purchase Agreement [Member] | ||||||||||
Number of common stock shares sold | shares | 595,000 | |||||||||
Warrant to purchase shares common stock | shares | 178,500 | |||||||||
Class of warrant or right, number of securities called by each warrant or right | shares | 0.30 | |||||||||
Combined purchase price per share | $ / shares | $ 6.75 | |||||||||
Proceeds from issuance or sale of equity | $ 3,600 | |||||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 9.36 | |||||||||
Class of warrant or right, expiration period | 5 years | |||||||||
Offering Agreement [Member] | ||||||||||
Number of common stock shares sold | shares | 5,739,437 | 6,192,750 | 2,760,000 | |||||||
Proceeds from issuance or sale of equity | $ 7,400 | $ 7,200 | $ 6,900 | |||||||
Share price | $ / shares | $ 1.42 | $ 1.30 | $ 2.75 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details Narrative) € in Thousands, $ in Thousands | Mar. 31, 2017USD ($)ft² | Jan. 31, 2018USD ($)shares | Jan. 31, 2017USD ($)shares | Jan. 31, 2018USD ($)shares | Jan. 31, 2017USD ($)shares | Jan. 31, 2018EUR (€) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) |
Antidilutive securities excluded from computation of earnings per share, shares | shares | 915,183 | 680,429 | 915,183 | 680,429 | ||||
Cumulative effect of new accounting principle in period of adoption | $ 11 | $ 11 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14,905 | $ 11,409 | $ 14,905 | $ 11,409 | $ 8,909 | $ 7,030 | ||
Monore Township [Member] | ||||||||
Term of lease | 7 years | |||||||
Area of land | ft² | 56,000 | |||||||
Tenant improvement work | $ 137,563 | |||||||
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment [Member] | ||||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 299 | $ 299 | $ 488 | $ 300 | ||||
Minimum [Member] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Maximum [Member] | ||||||||
Property, plant and equipment, useful life | 7 years | |||||||
One Agreement [Member] | Barclays Bank [Member] | ||||||||
Long-term line of credit | 400 | $ 400 | ||||||
Line of credit facility, commitment fee percentage | 1.00% | |||||||
Letters of credit outstanding, amount | $ 400 | $ 400 | ||||||
One Agreement [Member] | Barclays Bank [Member] | Euro [Member] | ||||||||
Long-term line of credit | € | € 300 | |||||||
Letters of credit outstanding, amount | € | € 300 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Cash and cash equivalents | $ 14,369 | $ 8,421 |
Checking and Savings Accounts [Member] | ||
Cash and cash equivalents | 1,233 | 4,241 |
Overnight Repurchase Account [Member] | ||
Cash and cash equivalents | 4,180 | |
Money Market Account [Member] | ||
Cash and cash equivalents | $ 13,136 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 | Jan. 31, 2017 | Apr. 30, 2016 |
RestrictedCash | $ 536 | $ 488 | ||
Cash and Cash Equivalents | 14,369 | 8,421 | ||
Restricted cash- short term | 382 | 334 | ||
Restricted cash- long term | 154 | 154 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14,905 | 8,909 | $ 11,409 | $ 7,030 |
Barclays Bank Agreement [Member] | ||||
RestrictedCash | 382 | 334 | ||
Santander Bank [Member] | ||||
RestrictedCash | $ 154 | $ 154 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Schedule of Revenue by Major Customers by Reporting Segments (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Revenues, percentage | 0.00% | 100.00% | 100.00% | 100.00% |
Mitsui Engineering & Shipbuilding [Member] | ||||
Revenues, percentage | 0.00% | 56.00% | 75.00% | 83.00% |
U.S. Department of Defense Office of Naval Research [Member] | ||||
Revenues, percentage | 0.00% | 44.00% | 25.00% | 17.00% |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Total share-based compensation expense | $ 77 | $ 370 | $ 250 | $ 998 |
Product Development [Member] | ||||
Total share-based compensation expense | 5 | 135 | 11 | 418 |
Selling, General and Administrative [Member] | ||||
Total share-based compensation expense | $ 72 | $ 235 | $ 239 | $ 580 |
Marketable Securities - Schedul
Marketable Securities - Schedule of Marketable Securities (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Certificate of Deposit | $ 25 | $ 25 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Project costs | $ 44 | $ 898 |
Contract loss reserve | 199 | 238 |
Employee incentive payments | 554 | 643 |
Accrued salary and benefits | 389 | 484 |
Legal and accounting fees | 197 | 478 |
Accrued taxes payable | 132 | 132 |
Other | 174 | 186 |
Accrued expenses total | $ 1,689 | $ 3,059 |
Deferred Credits Payable (Detai
Deferred Credits Payable (Details Narrative) $ in Thousands | Jan. 31, 2018USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2012USD ($) | Apr. 30, 2001USD ($)t |
Deferred Credits Payable | ||||
Customer advances or deposits, noncurrent | $ 600 | |||
Deferred credits payable option details | t | 500,000 | |||
Deferred credits payable market discount rate | 30.00% | |||
Deferred credits payable market liquidated damages rate | 30.00% | |||
Option fee amount | $ 600 | |||
Customer advances and deposits, current | $ 600 | $ 600 |
Warrants (Details Narrative)
Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jul. 22, 2016 | Jun. 02, 2016 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2017 |
Fair value adjustment of warrants | $ 14 | $ (104) | $ 82 | $ 1,161 | |||
Warrant [Member] | |||||||
Derivative liability, current | $ 200 | $ 200 | $ 300 | ||||
Securities Purchase Agreement [Member] | |||||||
Number of common stock shares sold | 417,000 | ||||||
Warrant to purchase shares common stock | 145,952 | ||||||
Class of warrant or right, number of securities called by each warrant or right | 0.35 | ||||||
Combined purchase price per share | $ 4.60 | ||||||
Warrant exercise price per share | $ 6.08 | ||||||
Class of warrant or right, expiration period | 5 years | ||||||
Second Amended Purchase Agreement [Member] | |||||||
Number of common stock shares sold | 595,000 | ||||||
Warrant to purchase shares common stock | 178,500 | ||||||
Class of warrant or right, number of securities called by each warrant or right | 0.30 | ||||||
Combined purchase price per share | $ 6.75 | ||||||
Warrant exercise price per share | $ 9.36 | ||||||
Class of warrant or right, expiration period | 5 years |
Warrants - Schedule of Fair Val
Warrants - Schedule of Fair Value Assumptions Used (Details) - Warrant [Member] | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Dividend rate | 0.00% | 0.00% |
Risk-free rate | 1.90% | |
Minimum [Member] | ||
Risk-free rate | 2.30% | |
Expected life (years) | 3 years 6 months | 4 years 6 months |
Expected volatility | 137.50% | 129.00% |
Maximum [Member] | ||
Risk-free rate | 2.40% | |
Expected life (years) | 3 years 9 months 18 days | 4 years 10 months 25 days |
Expected volatility | 145.20% | 138.20% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ in Thousands | Oct. 02, 2013 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Dec. 31, 2009 | Jan. 18, 2018 | Apr. 30, 2017 | Oct. 21, 2016 | Dec. 31, 2015 | Dec. 31, 2007 |
Share-based compensation expense | $ 77 | $ 370 | $ 250 | $ 998 | |||||||
Treasury Stock [Member] | |||||||||||
Treasury stock, shares, acquired | 25,947 | 39,882 | |||||||||
Employee Stock Option [Member] | |||||||||||
Stock based compensation, shares outstanding | 393,667 | 393,667 | 237,214 | ||||||||
Share-based compensation intrinsic value of outstanding | $ 2 | $ 2 | |||||||||
Share-based compensation options, exercisable intrinsic value | $ 2 | $ 2 | |||||||||
Share-based compensation unvested shares of stock options | 145,669 | 145,669 | |||||||||
Share-based compensation weighted average remaining contractual term | 9 years 8 months 12 days | ||||||||||
Share-based compensation expense | $ 177 | $ 224 | |||||||||
Unrecognized compensation cost related to non-vested stock options | $ 147 | $ 147 | |||||||||
Share-based compensation cost expected to recognize weighted-average term | 8 months 12 days | ||||||||||
Restricted Stock [Member] | |||||||||||
Share-based compensation expense | $ 73 | $ 775 | |||||||||
Share-based compensation cost expected to recognize weighted-average term | 2 years 2 months 12 days | ||||||||||
Unrecognized compensation cost related to unvested restricted stock | $ 200 | $ 200 | |||||||||
Restricted Stock [Member] | Service-based Vesting [Member] | |||||||||||
Number of restricted stock shares granted | 211,881 | ||||||||||
Restricted Stock [Member] | Performance-based Vesting [Member] | |||||||||||
Number of unvested restricted stock shares issued | 0 | 0 | |||||||||
Stock Incentive Plan 2006 [Member] | |||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 245,321 | 165,321 | 80,321 | ||||||||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized | 80,000 | 85,000 | |||||||||
Stock Incentive Plan 2015 [Member] | |||||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 640,703 | 240,703 | |||||||||
Sharebased compensation arrangement by sharebased payment award options outstanding contractual term | 10 years | ||||||||||
Common stock, capital shares reserved for future issuance | 84,393 | 84,393 | |||||||||
2018 Inducement Plan [Member] | |||||||||||
Common stock, capital shares reserved for future issuance | 500,000 | ||||||||||
Stock based compensation, shares outstanding | 97,297 | 97,297 | |||||||||
Stock based compensation, number of stock options granted | 402,703 | 402,703 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Employee Stock Option [Member] | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Risk-free interest rate | 2.10% | 1.30% | ||
Expected dividend yield | 0.00% | 0.00% | ||
Expected life (in years) | 0 years | 0 years | 5 years 6 months | 5 years 6 months |
Expected volatility | 128.20% | 96.20% |
Stock-Based Compensation - Sc39
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - Employee Stock Option [Member] | 9 Months Ended |
Jan. 31, 2018$ / sharesshares | |
Shares Underlying Options Outstanding, Beginning | shares | 237,214 |
Shares Underlying Options Outstanding, Granted | shares | 170,664 |
Shares Underlying Options Outstanding, Exercised | shares | |
Shares Underlying Options Outstanding, Cancelled/forfeited | shares | (14,211) |
Shares Underlying Options Outstanding, Ending | shares | 393,667 |
Shares Underlying Options Outstanding, Exercisable | shares | 222,293 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 14.64 |
Weighted Average Exercise Price, Granted | $ / shares | 1.34 |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price, Cancelled/forfeited | $ / shares | 90.10 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 6.15 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 9.80 |
Weighted Average Remaining Contractual Term (In Years), Beginning | 7 years 7 months 6 days |
Weighted Average Remaining Contractual Term (In Years), Ending | 8 years 2 months 12 days |
Weighted Average Remaining Contractual Term (In Years), Exercisable | 7 years 1 month 6 days |
Stock-Based Compensation - Sc40
Stock-Based Compensation - Schedule of Non vested Restricted Stock Activity (Details) - Non-vested Restricted Stock [Member] | 9 Months Ended |
Jan. 31, 2018$ / sharesshares | |
Number of Shares, Issued and unvested, Beginning | shares | 103,412 |
Number of Shares, Granted | shares | 211,881 |
Number of Shares, Vested | shares | (85,104) |
Number of Shares, Cancelled/forfeited | shares | (33,125) |
Number of Shares, Issued and Unvested, Ending | shares | 197,064 |
Weighted Average Price per Share, Issued and Unvested, Beginning | $ / shares | $ 3.99 |
Weighted Average Price per Share, Granted | $ / shares | 1.27 |
Weighted Average Price per Share, Vested | $ / shares | 4.67 |
Weighted Average Price per Share, Cancelled/forfeited | $ / shares | 2 |
Weighted Average Price per Share, Issued and Unvested, Ending | $ / shares | $ 1.35 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Liabilities, fair value adjustment | ||
Assets, fair value adjustment |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Warrant liabilities | $ 241 | $ 323 |
Fair Value, Measurements, Recurring [Member] | ||
Warrant liabilities | 241 | 323 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Warrant liabilities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Warrant liabilities | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Warrant liabilities | $ 241 | $ 323 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes on Value of Warrant Liability (Details) - Warrant Liability [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Apr. 30, 2017 | |
Fair value, beginning | $ 323 | |
Issuance | 1,814 | |
Transfers | ||
Change in fair value | (82) | (1,491) |
Fair value, ending | $ 241 | $ 323 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) € in Thousands, $ in Thousands | Oct. 23, 2017USD ($) | Oct. 22, 2015 | Jun. 30, 2012USD ($) | Jan. 31, 2018USD ($) | Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) | Jun. 30, 2012EUR (€) |
Estimated litigation liability, current | $ 350 | ||||||
Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | |||||||
Input tax | $ 300 | ||||||
Letters of credit outstanding, amount | $ 300 | ||||||
Foreign tax examination refund | $ 200 | ||||||
Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||||
Income tax examination, penalties expense | 132 | $ 132 | |||||
Foreign Tax Authority [Member] | Tax Authority, Spain [Member] | Euro [Member] | |||||||
Letters of credit outstanding, amount | € | € 300 | ||||||
Reverse Stock Split [Member] | |||||||
Stockholders' equity note, stock split, conversion ratio | 10 | ||||||
Stipulation [Member] | |||||||
Litigation settlement, amount awarded to other party | $ 350 | ||||||
Estimated litigation liability, current | 350 | ||||||
Insurance settlements receivable | $ 350 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2017 | |
Income tax (expense) benefit | $ (1,119) | $ (698) | $ (1,119) | $ (698) | |
Federal statutory tax rate | 29.70% | ||||
Unrecognized tax benefits | |||||
Maximum [Member] | |||||
Corporate tax rate | 34.00% | ||||
Federal statutory tax rate | 34.00% | ||||
Income tax rate, description | The TCJA reduced the U.S. federal statutory tax rate for the Company from 34% to 21% effective January 1, 2018. For fiscal year 2018, our blended U.S. federal statutory tax rate is 29.7%. This is the result of using the tax rate of 34% for the number of days from the start of the fiscal year until the date of rate change and the tax rate of 21% for the number of days from the date of rate change until the end of the fiscal year. We remeasured our deferred taxes to reflect the reduced rate that will apply when these deferred taxes are settled or realized in future periods. To calculate the remeasurement of deferred taxes, we estimated when the existing deferred taxes will be settled or realized and which deferred taxes will be settled within the current year at the 34% tax rate and those that will reverse after year end at the 21% tax rate. | ||||
Minimum [Member] | |||||
Corporate tax rate | 21.00% | ||||
Federal statutory tax rate | 21.00% | ||||
New Jersey Division of Taxation [Member] | |||||
Income tax (expense) benefit | |||||
Proceed from sale of loss carryforwards and tax credits | $ 11,400 | $ 7,800 | 11,400 | $ 7,800 | |
Tax Authority, Spain [Member] | Foreign Tax Authority [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||
Income tax examination, penalties expense | $ 132 | $ 132 |
Operating Segments and Geogra46
Operating Segments and Geographic Information (Details Narrative) | 9 Months Ended |
Jan. 31, 2018segments | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |