Avid Bioservices (CDMO) 10-Q 9 Dec 19 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Oct. 31, 2019	Nov. 30, 2019
Cover [Abstract]
Entity Registrant Name	Avid Bioservices, Inc.
Entity Central Index Key	0000704562
Document Type	10-Q
Document Period End Date	Oct. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--04-30
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		56,338,143
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Emerging Growth Company	false
Small Business	true
Interactive Data Current	Yes
Incorporation State Country Name	DE
Entity File Number	001-32839

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Oct. 31, 2019	Apr. 30, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 33,960	$ 32,351
Accounts receivable	7,422	7,374
Contract assets	6,110	4,327
Inventory	7,809	6,557
Prepaid expenses and other current assets	926	709
Total current assets	56,227	51,318
Property and equipment, net	26,990	25,625
Operating lease right-of-use assets	21,381	0
Restricted cash	350	1,150
Other assets	302	302
TOTAL ASSETS	105,250	78,395
CURRENT LIABILITIES:
Accounts payable	6,126	4,352
Accrued payroll and related costs	3,360	3,540
Contract liabilities	22,199	14,651
Operating lease liabilities	1,241	0
Other current liabilities	746	619
Total current liabilities	33,672	23,162
Operating lease liabilities, less current portion	22,394	0
Deferred rent, less current portion	0	2,072
Other long-term liabilities	0	93
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value; 5,000 shares authorized; 1,648 shares issued and outstanding at October 31, 2019 and April 30, 2019, respectively	2	2
Common stock, $0.001 par value; 150,000 shares authorized; 56,338 and 56,136 shares issued and outstanding at October 31, 2019 and April 30, 2019, respectively	56	56
Additional paid-in-capital	613,325	613,615
Accumulated deficit	(564,199)	(560,605)
Total stockholders' equity	49,184	53,068
Total liabilities and stockholders' equity	$ 105,250	$ 78,395

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Oct. 31, 2019	Apr. 30, 2019
Statement of Financial Position [Abstract]
Preferred stock par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000	5,000
Preferred stock, shares issued	1,648	1,648
Preferred stock, shares outstanding	1,648	1,648
Common stock par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000	150,000
Common stock, shares issued	56,338	56,136
Common stock, shares outstanding	56,338	56,136

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Income Statement [Abstract]
Revenues	$ 18,313	$ 10,178	$ 33,567	$ 22,767
Cost of revenues	14,953	9,844	29,121	21,241
Gross profit	3,360	334	4,446	1,526
Operating expenses:
Selling, general and administrative	3,534	2,816	7,993	6,031
Loss on lease termination	355	0	355	0
Total operating expenses	3,889	2,816	8,348	6,031
Operating loss	(529)	(2,482)	(3,902)	(4,505)
Interest and other income, net	99	119	308	181
Loss from continuing operations before income taxes	(430)	(2,363)	(3,594)	(4,324)
Income tax benefit	0	173	0	173
Loss from continuing operations, net of tax	(430)	(2,190)	(3,594)	(4,151)
Income from discontinued operations, net of tax	0	739	0	739
Net Loss	(430)	(1,451)	(3,594)	(3,412)
Comprehensive loss	(430)	(1,451)	(3,594)	(3,412)
Series E preferred stock accumulated dividends	(1,442)	(1,442)	(2,523)	(2,523)
Net loss attributable to common stockholders	$ (1,872)	$ (2,893)	$ (6,117)	$ (5,935)
Basic and Diluted net (loss) income per common share attributable to common stockholders: Continuing Operations	$ (0.03)	$ (0.06)	$ (0.11)	$ (0.12)
Basic and Diluted net (loss) income per common share attributable to common stockholders: Discontinued Operations	0	0.01	0	0.01
Net loss per common share attributable to common stockholders	$ (0.03)	$ (0.05)	$ (0.11)	$ (0.11)
Weighted average basic and diluted shares outstanding	56,253	56,009	56,210	55,889

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, shares at Apr. 30, 2018	1,648	55,689
Beginning balance, value at Apr. 30, 2018	$ 2	$ 55	$ 614,810	$ (559,129)	$ 55,738
Series E preferred stock dividends			(2,162)		(2,162)
Cumulative-effect adjustment to accumulated deficit pursuant to adoption of ASU				2,739	2,739
Common stock issued under Employee Stock Purchase Plan, shares		40
Common stock issued under Employee Stock Purchase Plan, value			114		114
Exercise of stock options, shares		334
Exercise of stock options, value		$ 1	1,157		1,158
Stock-based compensation expense			622		622
Net loss				(3,412)	(3,412)
Ending balance, shares at Oct. 31, 2018	1,648	56,063
Ending balance, value at Oct. 31, 2018	$ 2	$ 56	614,541	(559,802)	54,797
Beginning balance, shares at Jul. 31, 2018	1,648	55,990
Beginning balance, value at Jul. 31, 2018	$ 2	$ 55	615,040	(558,351)	56,746
Series E preferred stock dividends			(1,081)		(1,081)
Common stock issued under Employee Stock Purchase Plan, shares		40
Common stock issued under Employee Stock Purchase Plan, value			114		114
Exercise of stock options, shares		33
Exercise of stock options, value		$ 1	143		144
Stock-based compensation expense			325		325
Net loss				(1,451)	(1,451)
Ending balance, shares at Oct. 31, 2018	1,648	56,063
Ending balance, value at Oct. 31, 2018	$ 2	$ 56	614,541	(559,802)	54,797
Beginning balance, shares at Apr. 30, 2019	1,648	56,136
Beginning balance, value at Apr. 30, 2019	$ 2	$ 56	613,615	(560,605)	53,068
Series E preferred stock dividends			(2,162)		(2,162)
Common stock issued under Employee Stock Purchase Plan, shares		47
Common stock issued under Employee Stock Purchase Plan, value			187		187
Exercise of stock options, shares		127
Exercise of stock options, value			431		431
Vesting of restricted stock units		28
Stock-based compensation expense			1,254		1,254
Net loss				(3,594)	(3,594)
Ending balance, shares at Oct. 31, 2019	1,648	56,338
Ending balance, value at Oct. 31, 2019	$ 2	$ 56	613,325	(564,199)	49,184
Beginning balance, shares at Jul. 31, 2019	1,648	56,238
Beginning balance, value at Jul. 31, 2019	$ 2	$ 56	613,395	(563,769)	49,684
Series E preferred stock dividends			(1,081)		(1,081)
Common stock issued under Employee Stock Purchase Plan, shares		47
Common stock issued under Employee Stock Purchase Plan, value			187		187
Exercise of stock options, shares		53
Exercise of stock options, value			173		173
Stock-based compensation expense			651		651
Net loss				(430)	(430)
Ending balance, shares at Oct. 31, 2019	1,648	56,338
Ending balance, value at Oct. 31, 2019	$ 2	$ 56	$ 613,325	$ (564,199)	$ 49,184

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends paid per share	$ 0.65625	$ 0.65625	$ 1.3125	$ 1.3125

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,594)	$ (3,412)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,467	1,325
Stock-based compensation	1,254	622
Loss on lease termination	355	0
Loss on disposal of assets	13	0
Gain on sale of research and development assets	0	(1,000)	[1]
Changes in operating assets and liabilities:
Accounts receivable	(48)	(443)
Contract asssets	(1,783)	(2,204)
Inventory	(1,252)	(1,478)
Prepaid expenses and other assets	(217)	(93)
Accounts payable	(86)	880
Accrued payroll and related expenses	(180)	(735)
Contract liabilities	7,548	(2,715)
Other accrued expenses and current liabilities	(61)	(774)
Assets and liabilities of discontinued operations	0	(4,134)
Net cash provided by (used in) operating activities	3,416	(14,161)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(985)	(446)
Proceeds from sale of research and development assets	0	6,000
Net cash (used in) provided by investing activities	(985)	5,554
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	431	1,158
Proceeds from issuance of common stock under employee stock purchase plan	187	114
Dividends paid on preferred stock	(2,162)	(2,162)
Principal payments on finance lease	(78)	(74)
Net cash used in financing activities	(1,622)	(964)
Change in cash, cash equivalents and restricted cash	809	(9,571)
Cash, cash equivalents and restricted cash, beginning of period	33,501	43,415
Cash, cash equivalents and restricted cash, end of period	34,310	33,844
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Unpaid purchases of property and equipment	1,860	434
Property and equipment acquired under finance lease	$ 0	$ 245
[1]	The gain on sale of research and development assets before income taxes was recorded in connection with the $1.0 million we received from Oncologie, Inc. ("Oncologie") under the September 2018 Asset Assignment and Purchase Agreement pursuant to which we sold to Oncologie our r84 technology, which included the assignment of certain licenses, patents and other assets useful and/or necessary for the potential commercialization of the r84 technology.

1. Description of Company and B

1. Description of Company and Basis of Presentation	6 Months Ended
	Oct. 31, 2019
Organization And Business Description
Description of Company and Basis of Presentation	Note 1 – Description of Company and Basis of Presentation Avid Bioservices, Inc. is a contract development and manufacturing organization (“CDMO”) that provides a comprehensive range of services from process development to Current Good Manufacturing Practices (“CGMP”) commercial manufacturing focused on biopharmaceutical products derived from mammalian cell culture for biotechnology and pharmaceutical companies. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to quarterly reports on Form 10-Q, and accordingly, they do not include all of the information and disclosures required by U.S. GAAP for annual financial statements. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2019, as filed with the SEC on June 27, 2019. The condensed consolidated balance sheet at April 30, 2019 has been derived from audited financial statements at that date. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Results of operations for interim periods covered by this Quarterly Report on Form 10-Q may not necessarily be indicative of results of operations for the full fiscal year or any other interim period. The unaudited condensed consolidated financial statements include the accounts of Avid Bioservices, Inc. and its subsidiaries. All intercompany accounts and transactions among the consolidated entities have been eliminated in the unaudited condensed consolidated financial statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts, as well as disclosures of commitments and contingencies in the financial statements and accompanying notes. Actual results could differ materially from those estimates and assumptions. Certain prior period amounts within the accompanying unaudited condensed consolidated financial statements have been reclassified to conform to the current period presentation. These reclassifications did not affect our financial position, net loss, cash flows as of and for the periods presented. Discontinued Operations For all periods presented, the operating results of our former research and development segment have been excluded from continuing operations and reported as income from discontinued operations, net of tax, in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss (Note 7).

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Oct. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Information regarding our significant accounting policies is contained in Note 2, “Summary of Significant Accounting Policies”, of the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2019. Revenue Recognition Revenue is recognized from services provided under our customer contracts, which we have disaggregated into manufacturing and process development revenue streams. Manufacturing revenue Manufacturing revenue generally represents revenue from the manufacturing of customer products recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a manufacturing contract, a quantity of manufacturing runs are ordered and the product is manufactured according to the customer’s specifications and typically only one performance obligation is included. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The products are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of their product during the entire manufacturing process and can make changes to the process or specifications at their request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. Process development revenue Process development revenue generally represents revenue from services associated with the custom development of a manufacturing process and analytical methods for a customer’s product. Process development revenue is recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet their specifications and typically only one performance obligation is included. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of their product as the product is being created or enhanced by our services and can make changes to their process or specifications upon request. The following table summarizes our manufacturing and process development revenue streams for the three and six months ended October 31, 2019 and 2018 (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Manufacturing revenue $ 15,989 $ 7,243 $ 28,897 $ 17,543 Process development revenue 2,324 2,935 4,670 5,224 Total revenues $ 18,313 $ 10,178 $ 33,567 $ 22,767 The timing of revenue recognition, billings and cash collections results in billed trade receivables, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to accounts receivable on the balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities convert to revenue as we perform our obligations under the contract. During the three and six months ended October 31, 2019, we recognized revenue of $6.4 million and $12.6 million, respectively, for which the contract liability was recorded in a prior period. During the three and six months ended October 31, 2018, we recognized revenue of $3.1 million and $10.0 million, respectively, for which the contract liability was recorded in a prior period. We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we do not have any unsatisfied performance obligations for contracts greater than one year as of October 31, 2019. Leases On May 1, 2019, we adopted the Accounting Standards Update (“ASU”) No. 2016-02, Leases We determine if an arrangement is or contains a lease at inception. Our operating leases with a term greater than one year are included in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, less current portion in our condensed consolidated balance sheet at October 31, 2019. Right-of-use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate which represents an estimated rate of interest that we would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. Our operating leases may include options to extend the lease which are included in the lease term when it is reasonably certain that we will exercise a renewal option(s). Operating lease expense is recognized on a straight-line basis over the expected lease term. We elected the post-transition practical expedient to not separate lease components from non-lease components for all existing leases. We also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases. Restricted Cash Under the terms of three separate operating leases related to our facilities (Note 3), we are required to maintain, as collateral, letters of credit. During the quarter ended October 31, 2019, $0.8 million of restricted cash that was pledged as collateral under two of such letters of credit was released back to us. As of October 31, 2019 and April 30, 2019, restricted cash of $0.4 million and $1.2 million, respectively, was pledged as collateral under these letter(s) of credit. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows (in thousands): October 31, 2019 April 30, 2019 October 31, 2018 April 30, 2018 Cash and cash equivalents $ 33,960 $ 32,351 $ 32,694 $ 42,265 Restricted cash 350 1,150 1,150 1,150 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 34,310 $ 33,501 $ 33,844 $ 43,415 Inventory Inventory consists of raw materials inventory and is valued at the lower of cost, determined by the first-in, first-out method or net realizable value. We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as deemed necessary. Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of various equipment and leasehold improvements primarily associated with our manufacturing facilities, is not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of October 31, 2019 and April 30, 2019. All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands): October 31, 2019 April 30, 2019 Leasehold improvements $ 21,132 $ 20,574 Laboratory and manufacturing equipment 13,137 12,858 Computer equipment and software 4,719 4,644 Furniture, fixtures and office equipment 685 528 Construction-in-progress 3,334 1,590 Total property and equipment, gross $ 43,007 $ 40,194 Less: accumulated depreciation and amortization (16,017 ) (14,569 ) Total property and equipment, net $ 26,990 $ 25,625 Depreciation and amortization expense for the three and six months ended October 31, 2019 was $0.7 million and $1.5 million, respectively. Depreciation and amortization expense for the three and six months ended October 31, 2018 was $0.7 million and $1.3 million, respectively. Impairment Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the six months ended October 31, 2019 and 2018, there were no indicators of impairment of the value of our long-lived assets. Stock-Based Compensation We account for stock options, restricted stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. The fair value of restricted stock units is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of October 31, 2019, there were no outstanding stock-based awards with market or performance conditions. Comprehensive Loss Comprehensive loss is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is equal to our net loss for all periods presented. Fair Value Measurements Fair value is defined as 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. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of October 31, 2019 and April 30, 2019, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents, which are primarily invested in money market funds with one major commercial bank, are carried at fair value based on quoted market prices for identical securities (Level 1 input). In addition, there were no transfers between any Levels of the fair value hierarchy during the six months ended October 31, 2019 and 2018. Income Taxes The income tax benefit recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss during the three and six months ended October 31, 2018 resulted from the “Intraperiod Tax Allocation” rules under ASC 740: Income Taxes Recent Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) , Measurement of Credit Losses on Financial Instruments. , Effective Dates In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,

3. Leases

3. Leases	6 Months Ended
	Oct. 31, 2019
Lessee Disclosure [Abstract]
Leases	Note 3 – Leases We currently lease office, manufacturing and warehouse space in four buildings under three separate non-cancellable operating lease agreements. All of our leased facilities are located in close proximity in Tustin, California, have original lease terms ranging from 7 to 12 years, contain two multi-year renewal options, and scheduled rent increases of 3% on either an annual or biennial basis. With respect to multi-year renewal options, a multi-year renewal option was used in determining the right-of-use asset and lease liability for two of our leases as we considered it reasonably certain that we would exercise such renewal options. In addition, two of our leases provide for periods of free rent, lessor improvements and tenant improvement allowances, of which, certain of these improvements have been classified as leasehold improvements and are being amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease. The operating lease right-of-use assets and liabilities on our October 31, 2019 condensed consolidated balance sheets primarily relate to these facility leases. In September 2019, we entered into a lease amendment to terminate an operating lease for one of our non-manufacturing facilities that was primarily utilized for warehouse space. The lease termination was primarily driven by our efforts to reduce costs by leveraging available warehouse space in our other facilities, which in aggregate will save us approximately $1.3 over the next four years. In connection with the termination of this lease, we removed the corresponding operating lease right-of-use asset and liability balances from our balance sheet and recognized a loss of $0.4 million, which amount is included in loss on lease termination in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended October 31, 2019. Additionally, the lease termination released $0.3 million of restricted cash that was pledged as collateral under a letter of credit required by the terminated lease. Our operating lease expense for the three and six months ended October 31, 2019 was $0.9 million and $1.8 million, respectively, and is included in our accompanying unaudited condensed consolidated statements of operations and comprehensive loss as either cost of revenues or selling, general and administrative expense, depending on the leased asset. Cash paid for amounts included in the measurement of lease liabilities for the six months ended October 31, 2019 was $1.6 million and is included in net cash used in operating activities in our accompanying unaudited condensed consolidated statements of cash flows. As of October 31, 2019, the maturities of our operating lease liabilities were as follows (in thousands): Fiscal Year Ending April 30, Total 2020 (remaining period) $ 1,539 2021 3,135 2022 3,159 2023 3,174 2024 3,249 Thereafter 22,020 Total lease payments $ 36,276 Less: imputed interest (12,641 ) Total operating lease liabilities $ 23,635 The balance sheet classification of our operating lease liabilities was as follows (in thousands): October 31, 2019 Operating lease liabilities $ 1,241 Operating lease liabilities, less current portion 22,394 Total operating lease liabilities $ 23,635 As of October 31, 2019, the weighted average remaining lease term and weighted average discount rate of our operating leases was 10.8 years and 8.1%, respectively.

4. Stockholders' Equity

4. Stockholders' Equity	6 Months Ended
	Oct. 31, 2019
Equity [Abstract]
Stockholders' Equity	Note 4 – Stockholders’ Equity Termination of Rights Agreement (Series D Preferred Stock) On March 16, 2006, we entered into a Rights Agreement with Rights Agent named therein, which agreement was subsequently amended and restated on March 16, 2016 (as amended, the “Rights Agreement”). The Rights Agreement was designed to strengthen the ability of our Board of Directors to protect the interests of our stockholders against potential abusive or coercive takeover tactics and to enable all stockholders to receive the full and fair value of their investment in the event that an unsolicited attempt is made to acquire us. Under the Rights Agreement, our Board of Directors declared a dividend of one preferred share purchase right (the “Right”) for each share of our common stock held by our stockholders of record as of the close of business on March 27, 2006, each of which Right entitled the holder thereof to purchase a fraction of a share of our Series D Participating Preferred Stock, par value $0.001 per share, at the price specified in the Rights Agreement. The Rights were only exercisable if a person or group acquired 15% or more of our outstanding common stock or announced a tender offer or exchange offer which, if consummated, would have resulted in ownership by a person or group of 15% or more of our outstanding stock. On September 23, 2019, the Rights Agreement was further amended to accelerate the scheduled expiration date of the Rights Agreement from the close of business on March 16, 2021 to the close of business on September 23, 2019, and effectively terminate the Rights Agreement and the Rights granted thereunder as of such expiration date. Our Board of Directors elected to terminate the Rights Agreement and the Rights granted thereunder based on their recent evaluation of the effectiveness of, and the need for, a stockholder rights plan and consideration of current corporate governance practices and proxy advisory guidelines. In connection with the termination of the Rights Agreement, we filed a Notification of Removal from Listing and/or Registration under Section 12(b) of the Securities Exchange Act on Form 25 with the SEC on September 23, 2019, in order to withdraw the Rights from registration under Section 12(b) of the Securities Exchange Act of 1934, as amended, which deregistration is expected to be effective 90 days after the filing date. Series E Preferred Stock Dividends Holders of our 10.50% Series E Convertible Preferred Stock $0.001 par value per share (“Series E Preferred Stock”), are entitled to receive cumulative dividends at the rate of 10.50% per annum based on the liquidation preference of $25.00 per share, or $2.625 per annum per share, which dividends are payable quarterly in cash, on or about the 1 st Declaration Date Record Date Payment Date Cash Dividends Paid Dividend Per Share (in thousands) 6/5/2019 6/17/2019 7/1/2019 $ 1,081 $ 0.65625 9/4/2019 9/16/2019 10/1/2019 1,081 0.65625 Total $ 2,162 $ 1.31250 Each share of Series E Preferred Stock is convertible into a number of shares of our common stock determined by dividing the liquidation preference of $25.00 per share Series E Preferred Stock by the then-current conversion price per share, currently $21.00 per share, rounded down to the nearest whole number. As of October 31, 2019, if all of our issued and outstanding shares of Series E Preferred Stock were converted at the conversion price of $21.00 per share, the holders of our Series E Preferred Stock would receive an aggregate of 1,961,619 shares of our common stock. However, because the conversion price of our Series E Preferred Stock is subject to adjustment from time to time in accordance with the applicable provisions of our certificate of incorporation, we have reserved the maximum number of shares of our common stock that could be issued upon the conversion of our Series E Preferred Stock upon a change of control event assuming our shares of common stock are acquired for consideration of $5.985 per share or less. In this scenario, each outstanding share of our Series E Preferred Stock would be converted into 4.14 shares of our common stock, or 6,826,435 shares in the aggregate.

5. Equity Compensation Plans

5. Equity Compensation Plans	6 Months Ended
	Oct. 31, 2019
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	Note 5 – Equity Compensation Plans Stock Incentive Plans As of October 31, 2019, we had an aggregate of 7,106,600 shares of our common stock reserved for issuance under our stock incentive plans, of which 3,906,628 shares were subject to outstanding stock options and restricted stock units (“RSUs”) and 3,199,972 shares were available for future grants of stock-based awards. Stock Options The following summarizes our stock option transaction activity for the six months ended October 31, 2019: Stock Options Grant Date Weighted Average Exercise Price (in thousands) Outstanding at May 1, 2019 3,274 $ 7.51 Granted 683 $ 5.74 Exercised (127 ) $ 3.42 Canceled or expired (278 ) $ 4.35 Outstanding at October 31, 2019 3,552 $ 7.57 Restricted Stock Units The following summarizes our RSUs transaction activity for the six months ended October 31, 2019: Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at May 1, 2019 200 $ 4.32 Granted 194 $ 5.91 Vested (28 ) $ 3.62 Forfeited (11 ) $ 4.48 Outstanding at October 31, 2019 355 $ 5.24 Employee Stock Purchase Plan The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which eligible employees are allowed to purchase shares of our common stock through payroll deductions at a price equal to 85% of the lower of the fair market value our common stock as of the first trading day of the offering period or on the last trading day of the six-month offering period. Employee participants are limited to purchase no more than $25,000 of stock in any one calendar year. On October 9, 2019, our stockholders approved an amendment to the ESPP to extend its term for an additional five years to October 21, 2025 and to change the commencement dates of the offering periods from May 1 and November 1 of each year, to January 1 and July 1 of each year. During the six months ended October 31, 2019, 47,526 shares of our common stock were purchased under the ESPP at a purchase price of $3.94 per share. As of October 31, 2019, we had 1,148,735 shares of our common stock reserved for issuance under the ESPP. Stock-Based Compensation Stock-based compensation expense for the three and six months ended October 31, 2019 and 2018 was comprised of the following (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Cost of revenues $ 245 $ 85 $ 431 $ 170 Selling, general and administrative 406 240 823 452 Total stock-based compensation $ 651 $ 325 $ 1,254 $ 622 As of October 31, 2019, the total estimated unrecognized compensation cost related to non-vested employee stock options and non-vested RSUs was $4.6 million and $1.6 million, respectively. These costs are expected to be recognized over weighted average vesting periods of 2.90 years and 3.31 years, respectively.

6. Net Loss per Common Share

6. Net Loss per Common Share	6 Months Ended
	Oct. 31, 2019
Earnings Per Share [Abstract]
Net Loss per Common Share	Note 6 – Net Loss Per Common Share Basic net loss per common share is computed by dividing our net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period, excluding the dilutive effects of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Diluted net loss per common share is computed by dividing our net loss attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding during the period plus the potential dilutive effects of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock outstanding during the period. Net loss attributable to common stockholders represents our net loss plus Series E Preferred Stock accumulated dividends. Series E Preferred Stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared). The potential dilutive effect of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, and warrants outstanding during the period are calculated in accordance with the treasury stock method, but are excluded if their effect is anti-dilutive. The potential dilutive effect of our Series E Preferred Stock outstanding during the period was calculated using the if-converted method assuming the conversion of Series E Preferred Stock as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. However, because the impact of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, warrants, and Series E Preferred Stock are anti-dilutive during periods of net loss, there was no difference between basic and diluted loss per common share amounts for the three and six months ended October 31, 2019 and 2018. The calculation of weighted average diluted shares outstanding excludes the dilutive effect of the following weighted average outstanding stock options, unvested RSUs and shares of common stock expected to be issued under our ESPP as their impact is anti-dilutive during periods of net loss (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Stock options 197 235 133 186 RSUs 66 56 63 31 ESPP 12 16 6 9 Total 275 307 202 226 The calculation of weighted average diluted shares outstanding also excludes the following weighted average outstanding stock options, unvested RSUs, warrants, and Series E Preferred Stock (assuming the if-converted method), as their exercise prices or conversion price were greater than the average market price of our common stock during the respective periods, resulting in an anti-dilutive effect (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Stock options 2,866 2,239 2,855 2,600 RSUs – – 108 – Warrants – 12 – 25 Series E Preferred Stock 1,979 1,979 1,979 1,979 Total 4,845 4,230 4,942 4,604

7. Discontinued Operations

7. Discontinued Operations	6 Months Ended
	Oct. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Note 7 – Discontinued Operations As a result of the sale of our PS-targeting and r84 technologies in February 2018 and September 2018, respectively (as described in Note 10 of the Notes to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2019), the abandonment of our remaining research and development assets, and the strategic shift in our corporate direction to focus solely on our CDMO business, the operating results of our former research and development segment have been excluded from continuing operations and reported as income from discontinued operations, net of tax, in the accompanying unaudited condensed consolidated financial statements for all periods presented. The following table is a reconciliation of the pre-tax income from discontinued operations to the income from discontinued operations, net of tax, as presented in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for the three and six months ended October 31, 2018. There were no operating results from discontinued operations for the three and six months ended October 31, 2019 (in thousands): Gain on sale of research and development assets before income taxes (1) $ 1,000 Income tax expense (261 ) Income from discontinued operations, net of tax $ 739 _____________ (1)

8. Subsequent Events

8. Subsequent Events	6 Months Ended
	Oct. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 8 – Subsequent Events On December 4, 2019, our Board of Directors declared a quarterly cash dividend of $0.65625 per share on our outstanding Series E Preferred Stock. The dividend payment is equivalent to an annualized 10.50% per share, based on the $25.00 per share stated liquidation preference, accruing from October 1, 2019 through December 31, 2019. The cash dividend is payable on January 2, 2020 to holders of the Series E Preferred Stock of record on December 16, 2019.

2. Summary of Significant Acc_2

2. Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Oct. 31, 2019
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition Revenue is recognized from services provided under our customer contracts, which we have disaggregated into manufacturing and process development revenue streams. Manufacturing revenue Manufacturing revenue generally represents revenue from the manufacturing of customer products recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a manufacturing contract, a quantity of manufacturing runs are ordered and the product is manufactured according to the customer’s specifications and typically only one performance obligation is included. Each manufacturing run represents a distinct service that is sold separately and has stand-alone value to the customer. The products are manufactured exclusively for a specific customer and have no alternative use. The customer retains control of their product during the entire manufacturing process and can make changes to the process or specifications at their request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. Process development revenue Process development revenue generally represents revenue from services associated with the custom development of a manufacturing process and analytical methods for a customer’s product. Process development revenue is recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Under a process development contract, the customer owns the product details and process, which has no alternative use. These process development projects are customized to each customer to meet their specifications and typically only one performance obligation is included. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of their product as the product is being created or enhanced by our services and can make changes to their process or specifications upon request. The following table summarizes our manufacturing and process development revenue streams for the three and six months ended October 31, 2019 and 2018 (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Manufacturing revenue $ 15,989 $ 7,243 $ 28,897 $ 17,543 Process development revenue 2,324 2,935 4,670 5,224 Total revenues $ 18,313 $ 10,178 $ 33,567 $ 22,767 The timing of revenue recognition, billings and cash collections results in billed trade receivables, contract assets (unbilled receivables), and contract liabilities (customer deposits and deferred revenue). Contract assets are recorded when our right to consideration is conditioned on something other than the passage of time. Contract assets are reclassified to accounts receivable on the balance sheet when our rights become unconditional. Contract liabilities represent customer deposits and deferred revenue billed and/or received in advance of our fulfillment of performance obligations. Contract liabilities convert to revenue as we perform our obligations under the contract. During the three and six months ended October 31, 2019, we recognized revenue of $6.4 million and $12.6 million, respectively, for which the contract liability was recorded in a prior period. During the three and six months ended October 31, 2018, we recognized revenue of $3.1 million and $10.0 million, respectively, for which the contract liability was recorded in a prior period. We apply the practical expedient available under ASC 606 that permits us not to disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. In addition, we do not have any unsatisfied performance obligations for contracts greater than one year as of October 31, 2019.
Leases	Leases On May 1, 2019, we adopted the Accounting Standards Update (“ASU”) No. 2016-02, Leases We determine if an arrangement is or contains a lease at inception. Our operating leases with a term greater than one year are included in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, less current portion in our condensed consolidated balance sheet at October 31, 2019. Right-of-use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the net present value of lease payments, we use our incremental borrowing rate which represents an estimated rate of interest that we would have to pay to borrow equivalent funds on a collateralized basis at the lease commencement date. Our operating leases may include options to extend the lease which are included in the lease term when it is reasonably certain that we will exercise a renewal option(s). Operating lease expense is recognized on a straight-line basis over the expected lease term. We elected the post-transition practical expedient to not separate lease components from non-lease components for all existing leases. We also elected a policy to not apply the recognition requirements of ASC 842 for short-term leases.
Restricted Cash	Restricted Cash Under the terms of three separate operating leases related to our facilities (Note 3), we are required to maintain, as collateral, letters of credit. During the quarter ended October 31, 2019, $0.8 million of restricted cash that was pledged as collateral under two of such letters of credit was released back to us. As of October 31, 2019 and April 30, 2019, restricted cash of $0.4 million and $1.2 million, respectively, was pledged as collateral under these letter(s) of credit. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows (in thousands): October 31, 2019 April 30, 2019 October 31, 2018 April 30, 2018 Cash and cash equivalents $ 33,960 $ 32,351 $ 32,694 $ 42,265 Restricted cash 350 1,150 1,150 1,150 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 34,310 $ 33,501 $ 33,844 $ 43,415
Inventory	Inventory Inventory consists of raw materials inventory and is valued at the lower of cost, determined by the first-in, first-out method or net realizable value. We periodically review raw materials inventory for potential impairment and adjust inventory to its net realizable value based on the estimate of future use and reduce the carrying value of inventory as deemed necessary.
Property and Equipment	Property and Equipment Property and equipment is recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets, generally ranging from three to ten years. Amortization of leasehold improvements is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the remaining lease term. Construction-in-progress, which represents direct costs related to the construction of various equipment and leasehold improvements primarily associated with our manufacturing facilities, is not depreciated until the asset is completed and placed into service. No interest was incurred or capitalized as construction-in-progress as of October 31, 2019 and April 30, 2019. All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands): October 31, 2019 April 30, 2019 Leasehold improvements $ 21,132 $ 20,574 Laboratory and manufacturing equipment 13,137 12,858 Computer equipment and software 4,719 4,644 Furniture, fixtures and office equipment 685 528 Construction-in-progress 3,334 1,590 Total property and equipment, gross $ 43,007 $ 40,194 Less: accumulated depreciation and amortization (16,017 ) (14,569 ) Total property and equipment, net $ 26,990 $ 25,625 Depreciation and amortization expense for the three and six months ended October 31, 2019 was $0.7 million and $1.5 million, respectively. Depreciation and amortization expense for the three and six months ended October 31, 2018 was $0.7 million and $1.3 million, respectively.
Impairment	Impairment Long-lived assets are reviewed for impairment in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. Long-lived assets are reported at the lower of carrying amount or fair value less cost to sell. For the six months ended October 31, 2019 and 2018, there were no indicators of impairment of the value of our long-lived assets.
Stock-Based Compensation	Stock-Based Compensation We account for stock options, restricted stock units and other stock-based awards granted under our equity compensation plans in accordance with the authoritative guidance for stock-based compensation. The estimated fair value of stock options granted to employees in exchange for services is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is recognized as expense on a straight-line basis over the requisite service periods. The fair value of restricted stock units is measured at the grant date based on the closing market price of our common stock on the date of grant, and is recognized as expense on a straight-line basis over the period of vesting. Forfeitures are recognized as a reduction of stock-based compensation expense as they occur. As of October 31, 2019, there were no outstanding stock-based awards with market or performance conditions.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive loss is equal to our net loss for all periods presented.
Fair Value Measurements	Fair Value Measurements Fair value is defined as 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. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy: · Level 1 – Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 – Observable inputs other than quoted prices included in Level 1, such as assets or liabilities whose values are based on quoted market prices in markets where trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. · Level 3 – Unobservable inputs that are supported by little or no market activity and significant to the overall fair value measurement of the assets or liabilities; therefore, requiring the company to develop its own valuation techniques and assumptions. As of October 31, 2019 and April 30, 2019, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents, which are primarily invested in money market funds with one major commercial bank, are carried at fair value based on quoted market prices for identical securities (Level 1 input). In addition, there were no transfers between any Levels of the fair value hierarchy during the six months ended October 31, 2019 and 2018.
Income Taxes	Income Taxes The income tax benefit recognized in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss during the three and six months ended October 31, 2018 resulted from the “Intraperiod Tax Allocation” rules under ASC 740: Income Taxes
Recent Accounting Standards Not Yet Adopted	Recent Accounting Standards Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) , Measurement of Credit Losses on Financial Instruments. , Effective Dates In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,

2. Summary of Significant Acc_3

2. Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Oct. 31, 2019
Accounting Policies [Abstract]
Disaggregation of revenue	Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Manufacturing revenue $ 15,989 $ 7,243 $ 28,897 $ 17,543 Process development revenue 2,324 2,935 4,670 5,224 Total revenues $ 18,313 $ 10,178 $ 33,567 $ 22,767
Schedule of Restricted Cash	October 31, 2019 April 30, 2019 October 31, 2018 April 30, 2018 Cash and cash equivalents $ 33,960 $ 32,351 $ 32,694 $ 42,265 Restricted cash 350 1,150 1,150 1,150 Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows $ 34,310 $ 33,501 $ 33,844 $ 43,415
Schedule of property and equipment	October 31, 2019 April 30, 2019 Leasehold improvements $ 21,132 $ 20,574 Laboratory and manufacturing equipment 13,137 12,858 Computer equipment and software 4,719 4,644 Furniture, fixtures and office equipment 685 528 Construction-in-progress 3,334 1,590 Total property and equipment, gross $ 43,007 $ 40,194 Less: accumulated depreciation and amortization (16,017 ) (14,569 ) Total property and equipment, net $ 26,990 $ 25,625

3. Leases (Tables)

3. Leases (Tables)	6 Months Ended
	Oct. 31, 2019
Lessee Disclosure [Abstract]
Schedule of maturities of operating lease liabilities	Fiscal Year Ending April 30, Total 2020 (remaining period) $ 1,539 2021 3,135 2022 3,159 2023 3,174 2024 3,249 Thereafter 22,020 Total lease payments $ 36,276 Less: imputed interest (12,641 ) Total operating lease liabilities $ 23,635
Schedule of operating lease liabilties	October 31, 2019 Operating lease liabilities $ 1,241 Operating lease liabilities, less current portion 22,394 Total operating lease liabilities $ 23,635

4. Stockholders' Equity (Tables

4. Stockholders' Equity (Tables)	6 Months Ended
	Oct. 31, 2019
Equity [Abstract]
Dividend Activity	Declaration Date Record Date Payment Date Cash Dividends Paid Dividend Per Share (in thousands) 6/5/2019 6/17/2019 7/1/2019 $ 1,081 $ 0.65625 9/4/2019 9/16/2019 10/1/2019 1,081 0.65625 Total $ 2,162 $ 1.31250

5. Equity Compensation Plans (T

5. Equity Compensation Plans (Tables)	6 Months Ended
	Oct. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	Stock Options Grant Date Weighted Average Exercise Price (in thousands) Outstanding at May 1, 2019 3,274 $ 7.51 Granted 683 $ 5.74 Exercised (127 ) $ 3.42 Canceled or expired (278 ) $ 4.35 Outstanding at October 31, 2019 3,552 $ 7.57
Schedule of RSU activity	Shares Weighted Average Grant Date Fair Value (in thousands) Outstanding at May 1, 2019 200 $ 4.32 Granted 194 $ 5.91 Vested (28 ) $ 3.62 Forfeited (11 ) $ 4.48 Outstanding at October 31, 2019 355 $ 5.24
Share-based compensation expense	Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Cost of revenues $ 245 $ 85 $ 431 $ 170 Selling, general and administrative 406 240 823 452 Total stock-based compensation $ 651 $ 325 $ 1,254 $ 622

6. Net Loss per Common Share (T

6. Net Loss per Common Share (Tables)	6 Months Ended
	Oct. 31, 2019
Earnings Per Share [Abstract]
Antidilutive shares	Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Stock options 197 235 133 186 RSUs 66 56 63 31 ESPP 12 16 6 9 Total 275 307 202 226 Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Stock options 2,866 2,239 2,855 2,600 RSUs – – 108 – Warrants – 12 – 25 Series E Preferred Stock 1,979 1,979 1,979 1,979 Total 4,845 4,230 4,942 4,604

7. Discontinued Operations (Tab

7. Discontinued Operations (Tables)	6 Months Ended
	Oct. 31, 2019
Discontinued Operations and Disposal Groups [Abstract]
Reconciliation discontinued operations	Gain on sale of research and development assets before income taxes (1) $ 1,000 Income tax expense (261 ) Income from discontinued operations, net of tax $ 739	[1]
[1]	The gain on sale of research and development assets before income taxes was recorded in connection with the $1.0 million we received from Oncologie, Inc. ("Oncologie") under the September 2018 Asset Assignment and Purchase Agreement pursuant to which we sold to Oncologie our r84 technology, which included the assignment of certain licenses, patents and other assets useful and/or necessary for the potential commercialization of the r84 technology.

2. Summary of Significant Acc_4

2. Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Revenues	$ 18,313	$ 10,178	$ 33,567	$ 22,767
Manufacturing Revenue [Member]
Revenues	15,989	7,243	28,897	17,543
Process Development Revenue [Member]
Revenues	$ 2,324	$ 2,935	$ 4,670	$ 5,224

2. Summary of Significant Acc_5

2. Summary of Significant Accounting Policies (Details - Restricted Cash) - USD ($) $ in Thousands	Oct. 31, 2019	Apr. 30, 2019	Oct. 31, 2018	Apr. 30, 2018
Accounting Policies [Abstract]
Cash and cash equivalents	$ 33,960	$ 32,351	$ 32,694	$ 42,265
Restricted cash	350	1,150	1,150	1,150
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$ 34,310	$ 33,501	$ 33,844	$ 43,415

2. Summary of Significant Acc_6

2. Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands	Oct. 31, 2019	Apr. 30, 2019
Property and equipment, gross	$ 43,007	$ 40,194
Less: Accumulated depreciation and amortization	(16,017)	(14,569)
Total property and equipment, net	26,990	25,625
Leasehold Improvements [Member]
Property and equipment, gross	21,132	20,574
Laboratory and manufacturing equipment [Member]
Property and equipment, gross	13,137	12,858
Computer Equipment and software [Member]
Property and equipment, gross	4,719	4,644
Furniture, fixtures and office equipment [Member]
Property and equipment, gross	685	528
Construction in Progress [Member]
Property and equipment, gross	$ 3,334	$ 1,590

2. Summary of Significant Acc_7

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018	May 02, 2019	Apr. 30, 2019	Apr. 30, 2018
Right-of-use asset	$ 21,381		$ 21,381			$ 0
Operating lease liability	23,635		23,635
Depreciation and amortization	700	$ 700	1,467	$ 1,325
Revenue recognized previously accrued	6,400	3,100	12,600	10,000
Restricted Cash	$ 350	$ 1,150	350	1,150		$ 1,150	$ 1,150
Incurred interest			0
Impairment of long lived assets			$ 0	$ 0
ASC 842 [Member]
Right-of-use asset					$ 23,300
Operating lease liability					$ 25,500

3. Leases (Details - Maturities

3. Leases (Details - Maturities of Operating Lease Liabilities) $ in Thousands	Oct. 31, 2019USD ($)
Lessee Disclosure [Abstract]
2020 (remaining period)	$ 1,539
2021	3,135
2022	3,159
2023	3,174
2024	3,249
Thereafter	22,020
Total lease payments	36,276
Less: imputed interest	(12,641)
Total operating lease liabilities	$ 23,635

3. Leases (Details - Lease liab

3. Leases (Details - Lease liabilities) - USD ($) $ in Thousands	Oct. 31, 2019	Apr. 30, 2019
Lessee Disclosure [Abstract]
Operating lease liabilities	$ 1,241	$ 0
Operating lease liabilities, less current portion	22,394	$ 0
Total operating lease liabilities	$ 23,635

3. Leases (Details Narrative)

3. Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Lessee Disclosure [Abstract]
Operating lease expense	$ 900		$ 1,800
Operating lease payments			$ 1,600
Weighted average lease term	10 years 9 months 18 days		10 years 9 months 18 days
Weighted average discount rate	8.10%		8.10%
Loss lease termination	$ (355)	$ 0	$ (355)	$ 0

4. Stockholders' Equity (Detail

4. Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Preferred Stock Dividends	$ 1,081	$ 1,081	$ 2,162	$ 2,162
Dividends paid per share	$ 0.65625	$ 0.65625	$ 1.3125	$ 1.3125
Series E Preferred Stock [Member] | Dividends Paid 7/1/2019 [Member]
Preferred Stock Dividends			$ 1,081
Declaration Date			Jun. 5, 2019
Record Date			Jun. 17, 2019
Payment Date			Jul. 1, 2019
Dividends paid per share			$ 0.65625
Series E Preferred Stock [Member] | Dividends Paid 10/1/2019 [Member]
Preferred Stock Dividends			$ 1,081
Declaration Date			Sep. 4, 2019
Record Date			Sep. 16, 2019
Payment Date			Oct. 1, 2019
Dividends paid per share			$ 0.65625

4. Stockholders' Equity (Deta_2

4. Stockholders' Equity (Details Narrative) - Series E Preferred Stock [Member]	6 Months Ended
	Oct. 31, 2019shares
Common stock to be issued if Series E stock is converted	6,826,435
Each outstanding share that could be converted into common shares	4

5. Equity Compensation Plans (D

5. Equity Compensation Plans (Details - Option activity) - Equity Option [Member] shares in Thousands	6 Months Ended
	Oct. 31, 2019$ / sharesshares
Number of Options
Number of Options Outstanding, Beginning | shares	3,274
Number of Options Granted | shares	683
Number of Options Exercised | shares	(127)
Number of Options Cancelled or Expired | shares	(278)
Number of Options Outstanding, Ending | shares	3,552
Weighted Average Exercise Price
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 7.51
Weighted Average Exercise Price Granted | $ / shares	5.74
Weighted Average Exercise Price Exercised | $ / shares	3.42
Weighted Average Exercise Price Canceled | $ / shares	4.35
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 7.57

5. Equity Compensation Plans _2

5. Equity Compensation Plans (Details - RSU Activity) - RSUs [Member] shares in Thousands	6 Months Ended
	Oct. 31, 2019$ / sharesshares
RSU Shares
RSUs outstanding, beginning balance | shares	200
RSUs granted | shares	194
RSUs vested | shares	(28)
RSUs forfeited | shares	(11)
RSUs outstanding, ending balance | shares	355
Weighted Average Grant Date Fair Value
RSUs outstanding, beginning balance | $ / shares	$ 4.32
RSUs granted | $ / shares	5.91
RSUs vested | $ / shares	3.62
RSUs forfeited | $ / shares	4.48
RSUs outstanding, ending balance | $ / shares	$ 5.24

5. Equity Compensation Plans _3

5. Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Share based compensation	$ 651	$ 325	$ 1,254	$ 622
Cost of revenues [Member]
Share based compensation	245	85	431	170
Selling, general and administrative
Share based compensation	$ 406	$ 240	$ 823	$ 452

5. Equity Compensation Plans _4

5. Equity Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018
Employee Stock Purchase Plan [Member]
Stock reserved for issuance	1,148,735
Stock issued during period, ESPP	47,526
Price per share, ESPP	$ 3.94
RSUs [Member]
Unrecognized compensation cost weighted average vesting period	2 years 10 months 24 days	3 years 3 months 22 days
Unrecognized compensation cost related to non-vested RSUs	$ 4,600	$ 1,600
Stock Incentive Plans [Member]
Stock reserved for issuance	7,106,600
Stock Incentive Plans [Member] | Options and RSU's [Member]
Stock reserved for issuance	3,906,628
Stock Incentive Plans [Member] | Future Grants [Member]
Stock reserved for issuance	3,199,972

6. Net Loss per Common Share (D

6. Net Loss per Common Share (Details - Antidilutive shares) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Dilutive effect of shares on diluted shares outstanding	275	307	202	226
Stock Options
Dilutive effect of shares on diluted shares outstanding	197	235	133	186
RSUs [Member]
Dilutive effect of shares on diluted shares outstanding	66	56	63	31
Employee Stock Purchase Plan [Member]
Dilutive effect of shares on diluted shares outstanding	12	16	6	9

6. Net Loss per Common Share _2

6. Net Loss per Common Share (Details - Antidilutive shares, conversion price) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Dilutive effect of shares on diluted shares outstanding	275	307	202	226
If Converted Method [Member]
Dilutive effect of shares on diluted shares outstanding	4,845	4,230	4,942	4,604
If Converted Method [Member] | Stock Options [Member]
Dilutive effect of shares on diluted shares outstanding	2,866	2,239	2,855	2,600
If Converted Method [Member] | RSUs [Member]
Dilutive effect of shares on diluted shares outstanding	0	0	108	0
If Converted Method [Member] | Warrants
Dilutive effect of shares on diluted shares outstanding	0	12	0	25
If Converted Method [Member] | Series E Preferred Stock [Member]
Dilutive effect of shares on diluted shares outstanding	1,979	1,979	1,979	1,979

7. Discontinued Operations (Det

7. Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Oct. 31, 2019	Oct. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Gain on sale of research and development assets before income taxes			$ 0	$ 1,000	[1]
Income tax expense				(261)
Income from discontinued operations, net of tax	$ 0	$ 739	$ 0	$ 739
[1]	The gain on sale of research and development assets before income taxes was recorded in connection with the $1.0 million we received from Oncologie, Inc. ("Oncologie") under the September 2018 Asset Assignment and Purchase Agreement pursuant to which we sold to Oncologie our r84 technology, which included the assignment of certain licenses, patents and other assets useful and/or necessary for the potential commercialization of the r84 technology.