Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2021 | Jun. 18, 2021 | Oct. 31, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Avid Bioservices, Inc. | ||
Entity Central Index Key | 0000704562 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2021 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --04-30 | ||
Is Entity a Well-known Seasoned Issuer? | Yes | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 409,300,000 | ||
Entity Common Stock, Shares Outstanding | 61,097,671 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Emerging Growth Company | false | ||
Small Business | true | ||
Entity Shell Company | false | ||
Interactive Data Current | Yes | ||
Incorporation State Country Name | DE | ||
Entity File Number | 001-32839 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 169,915 | $ 36,262 |
Accounts receivable | 18,842 | 8,606 |
Contract assets | 6,112 | 3,300 |
Inventory | 11,871 | 10,883 |
Prepaid expenses | 1,064 | 712 |
Total current assets | 207,804 | 59,763 |
Property and equipment, net | 37,455 | 27,105 |
Operating lease right-of-use assets | 18,691 | 20,100 |
Restricted cash | 350 | 350 |
Other assets | 1,210 | 302 |
TOTAL ASSETS | 265,510 | 107,620 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,257 | 5,926 |
Accrued payroll and related costs | 8,794 | 3,019 |
Contract liabilities | 50,769 | 29,120 |
Current portion of operating lease liabilities | 1,355 | 1,228 |
Note payable | 0 | 4,379 |
Other current liabilities | 761 | 808 |
Total current liabilities | 70,936 | 44,480 |
Convertible senior notes, net | 96,949 | 0 |
Operating lease liabilities, less current portion | 19,889 | 21,244 |
Total liabilities | 187,774 | 65,724 |
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares and 1,648 shares issued and outstanding at respective dates | 0 | 2 |
Common stock, $0.001 par value; 150,000 shares authorized; 61,069 and 56,483 shares issued and outstanding at respective dates | 61 | 56 |
Additional paid-in-capital | 637,534 | 612,909 |
Accumulated deficit | (559,859) | (571,071) |
Total stockholders' equity | 77,736 | 41,896 |
Total liabilities and stockholders' equity | $ 265,510 | $ 107,620 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 1,648 |
Preferred stock, shares outstanding | 0 | 1,648 |
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 61,069 | 56,483 |
Common stock, shares outstanding | 61,069 | 56,483 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | |||
Revenues | $ 95,868 | $ 59,702 | $ 53,603 |
Cost of revenues | 66,561 | 55,770 | 46,379 |
Gross profit | 29,307 | 3,932 | 7,224 |
Operating expenses: | |||
Selling, general and administrative | 17,064 | 14,517 | 12,846 |
Loss on lease termination | 0 | 355 | 0 |
Total operating expenses | 17,064 | 14,872 | 12,846 |
Operating income (loss) | 12,243 | (10,940) | (5,622) |
Interest and other income, net | 133 | 482 | 293 |
Interest expense | (1,164) | (8) | (11) |
Income (loss) from continuing operations before income taxes | 11,212 | (10,466) | (5,340) |
Income tax benefit | 0 | 0 | 284 |
Income (loss) from continuing operations, net of tax | 11,212 | (10,466) | (5,056) |
Income from discontinued operations, net of tax | 0 | 0 | 841 |
Net income (loss) | 11,212 | (10,466) | (4,215) |
Comprehensive income (loss) | 11,212 | (10,466) | (4,215) |
Series E preferred stock accumulated dividends | (4,455) | (4,686) | (4,686) |
Impact of Series E preferred stock redemption | (3,439) | 0 | 0 |
Net income (loss) attributable to common stockholders | $ 3,318 | $ (15,152) | $ (8,901) |
Net income (loss) per share attributable to common stockholders, basic and diluted - Continuing operations | $ 0.06 | $ (0.27) | $ (0.17) |
Net income (loss) per share attributable to common stockholders, basic and diluted - Discontinued operations | 0 | 0 | 0.01 |
Earnings per share | $ 0.06 | $ (0.27) | $ (0.16) |
Weighted average common shares outstanding - Basic | 58,222 | 56,326 | 55,981 |
Weighted average common shares outstanding - Diluted | 59,426 | 56,326 | 55,981 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 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 | (4,325) | (4,325) | |||
Cumulative-effect adjustment to accumulated deficit pursuant to adoption of ASU | 2,739 | 2,739 | |||
Common stock issued under equity compensation plans, shares | 446 | ||||
Common stock issued under equity compensation plans, value | $ 1 | 1,535 | 1,536 | ||
Stock-based compensation expense | 1,595 | 1,595 | |||
Net income | (4,215) | (4,215) | |||
Ending balance, shares at Apr. 30, 2019 | 1,648 | 56,135 | |||
Ending balance, value at Apr. 30, 2019 | $ 2 | $ 56 | 613,615 | (560,605) | 53,068 |
Series E preferred stock dividends | (4,325) | (4,325) | |||
Common stock issued under equity compensation plans, shares | 348 | ||||
Common stock issued under equity compensation plans, value | 1,120 | 1,120 | |||
Stock-based compensation expense | 2,499 | 2,499 | |||
Net income | (10,466) | (10,466) | |||
Ending balance, shares at Apr. 30, 2020 | 1,648 | 56,483 | |||
Ending balance, value at Apr. 30, 2020 | $ 2 | $ 56 | 612,909 | (571,071) | 41,896 |
Series E preferred stock dividends | (4,455) | (4,455) | |||
Conversion of Series E preferred stock to common stock, shares converted | (28) | ||||
Conversion of Series E preferred stock to common stock, shares issued | 34 | ||||
Redemption of Series E preferred stock, shares | (1,620) | ||||
Redemption of Series E preferred stock, value | $ (2) | (40,488) | (40,490) | ||
Common stock issued, net of issuance costs, shares | 3,833 | ||||
Common stock issued, net of issuance costs, value | $ 4 | 32,137 | 32,141 | ||
Common stock issued under equity compensation plans, shares | 719 | ||||
Common stock issued under equity compensation plans, value | $ 1 | 3,983 | 3,984 | ||
Equity component of convertible senior notes | 42,431 | 42,431 | |||
Purchase of capped calls related to convertible senior notes | (12,837) | (12,837) | |||
Stock-based compensation expense | 3,854 | 3,854 | |||
Net income | 11,212 | 11,212 | |||
Ending balance, shares at Apr. 30, 2021 | 61,069 | ||||
Ending balance, value at Apr. 30, 2021 | $ 61 | $ 637,534 | $ (559,859) | $ 77,736 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Common Stock | |||
Payment of stock issuance costs | $ 2,359 | ||
Series E Preferred Stock [Member] | |||
Dividends paid | $ 2.705 | $ 2.625 | $ 2.625 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 11,212 | $ (10,466) | $ (4,215) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 3,453 | 3,091 | 2,746 |
Stock-based compensation | 3,854 | 2,499 | 1,595 |
Amortization of debt discount and issuance costs | 916 | 0 | 0 |
Loss on disposal of assets | 0 | 13 | 127 |
Gain on sale of research and development assets | 0 | 0 | (1,000) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (10,236) | (1,232) | (3,620) |
Contract assets | (2,812) | 1,027 | (1,439) |
Inventory | (988) | (4,326) | 1,701 |
Prepaid expenses and other assets | (1,260) | (3) | (28) |
Accounts payable | (608) | 802 | 2,125 |
Accrued payroll and related costs | 5,775 | (521) | 976 |
Contract liabilities | 21,649 | 14,469 | (5,371) |
Other accrued expenses and current liabilities | 227 | 474 | (642) |
Assets and liabilities of discontinued operations | 0 | 0 | (4,550) |
Net cash provided by (used in) operating activities | 31,182 | 5,827 | (11,595) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (9,864) | (3,812) | (1,502) |
Proceeds from sale of property and equipment | 0 | 0 | 46 |
Proceeds from sale of research and development assets | 0 | 0 | 6,000 |
Net cash (used in) provided by investing activities | (9,864) | (3,812) | 4,544 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | 138,464 | 0 | 0 |
Purchases of capped calls related to convertible senior notes | (12,837) | 0 | 0 |
Proceeds from issuance of common stock, net of issuance costs | 32,141 | 0 | 0 |
Proceeds from issuance of common stock under equity compensation plans | 3,984 | 1,120 | 1,536 |
(Repayment of) proceeds from note payable | (4,379) | 4,379 | 0 |
Dividends paid on preferred stock | (4,455) | (4,325) | (4,325) |
Redemption of preferred stock | (37,051) | 0 | 0 |
Impact of preferred stock redemption | (3,439) | 0 | 0 |
Principal payments on finance lease | (93) | (78) | (74) |
Net cash provided by (used in) financing activities | 112,335 | 1,096 | (2,863) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 133,653 | 3,111 | (9,914) |
Cash, cash equivalents and restricted cash, beginning of period | 36,612 | 33,501 | 43,415 |
Cash, cash equivalents and restricted cash, end of period | 170,265 | 36,612 | 33,501 |
Supplemental disclosures of cash flow information | |||
Interest paid | 5 | 8 | 11 |
Supplemental disclosures of non-cash activities: | |||
Unpaid purchases of property and equipment | 3,939 | 772 | 318 |
Decapitalization of right-of-use assets upon lease termination and/or modification | 0 | 1,469 | 0 |
Property and equipment acquired under finance lease | $ 0 | $ 0 | $ 245 |
1. Description of Company and B
1. Description of Company and Basis of Presentation | 12 Months Ended |
Apr. 30, 2021 | |
Organization And Business Description | |
Description of Company and Basis of Presentation | Note 1 – Description of Company and Basis of Presentation We are a dedicated contract development and manufacturing organization (“CDMO”) that provides a comprehensive range of services from process development to Current Good Manufacturing Practices (“CGMP”) clinical and commercial manufacturing, focused on biopharmaceutical drug substances derived from mammalian cell culture for biotechnology and pharmaceutical companies. Effective January 5, 2018, we changed our name to Avid Bioservices, Inc. in connection with our transition to a dedicated CDMO and the discontinuation of our research and development activities. For the fiscal 2019 period 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 Consolidated Statements of Operations and Comprehensive Loss. For additional information on the discontinuation of our research and development segment, refer to Note 11, Sale of Research and Development Assets Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Avid Bioservices, Inc. and our subsidiaries. All intercompany accounts and transactions among the consolidated entities have been eliminated in the consolidated financial statements. The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and on various other assumptions that are believed to be reasonable under the circumstances. Accounting estimates and judgements are inherently uncertain and actual results could differ materially from these estimates. Segment Reporting Our business operates in one operating segment. Accordingly, we reported our financial results for one reportable segment |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 12 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Cash and Cash Equivalents We consider all short-term investments readily convertible to cash, without notice or penalty, with an initial maturity of 90 days or less to be cash equivalents. Restricted Cash Under the terms of an operating lease related to one of our facilities (Note 4), we are required to maintain a letter of credit as collateral. Accordingly, at April 30, 2021 and 2020, restricted cash of $0.4 million was pledged as collateral under the letter of credit. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows (in thousands): As of April 30, 2021 2020 2019 Cash and cash equivalents $ 169,915 $ 36,262 $ 32,351 Restricted cash 350 350 1,150 Total cash, cash equivalents and restricted cash $ 170,265 $ 36,612 $ 33,501 Revenue Recognition On May 1, 2018, we adopted Accounting Standards Codification (“ASC”) No. 2014-09, Revenue from Contracts with Customers Under ASC 606, we recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. Revenue recognized from services provided under our customer contracts are 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 at a specified scale, where the product is manufactured according to the customer’s specifications and typically includes only one performance obligation. 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 its product during the entire manufacturing process and can make changes to the process or specifications at its 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 its specifications and typically includes only one performance obligation. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by our services and can make changes to its process or specifications upon request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. The following table summarizes our manufacturing and process development revenue streams (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Manufacturing revenues $ 83,678 $ 52,046 $ 43,432 Process development revenues 12,190 7,656 10,171 Total revenues $ 95,868 $ 59,702 $ 53,603 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, 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 consolidated 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 fiscal years ended April 30, 2021 and 2020, we recognized revenue of $27.3 million and $13.6 million, respectively, for which the contract liability was recorded in a prior period. The transaction price for services provided under our customer contracts generally reflects our best estimates of the amount of consideration to which we are entitled in exchange for providing goods and services to our customers. In determining the transaction price, we considered the different sources of variable consideration including, but not limited to, discounts, credits, refunds, price concessions or other similar items. We have included in the transaction price some or all of an amount of variable consideration, utilizing the most likely method, only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The actual amount of consideration ultimately received may differ. Management may be required to exercise judgement in estimating revenue to be recognized. Judgement is required in identifying performance obligations, estimating the transaction price, estimating the stand-alone selling prices of identified performance obligations, and estimating the progress towards the satisfaction of performance obligations. If actual results in the future vary from our estimates, the estimates will be adjusted, which will affect revenues in the period that such variances become known. Changes in estimates for variable consideration resulted in an increase in revenues of $1.1 million for the fiscal year ended April 30, 2021 and a decrease in revenues of $1.5 million for the fiscal year ended April 30, 2020. There were no material adjustments in estimates for variable consideration for the fiscal year ended April 30, 2019. 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. As of April 30, 2021, we do not have any unsatisfied performance obligations for contracts greater than one year. Accounts Receivable Accounts receivable generally represent amounts billed services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. We apply judgment in assessing the ultimate realization of our receivables and we estimate an allowance for doubtful accounts based on various factors, such as the aging of our receivables, historical experience, and the financial condition of our customers. Based on our analysis of our accounts receivable balances as of April 30, 2021 and 2020, we determined no allowance for doubtful accounts was necessary. Concentrations of Credit Risk and Customer Base Financial instruments that potentially subject us to a significant concentration of credit risk consist of cash and cash equivalents, accounts receivable and contract assets. We maintain our cash balances primarily with two major commercial banks and our deposits held with each bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial banks holding our cash balances to the extent of the cash amounts recorded on the accompanying Consolidated Balance Sheets exceed the amount of government insurance limits provided on our deposits. Our accounts receivable from amounts billed for services provided under customer contracts are derived from a small customer base. Most contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. At April 30, 2021 and 2020, approximately 98% of our accounts receivable were due from six customers. Our contract assets are reclassified to accounts receivable when our rights to consideration become unconditional. At April 30, 2021 and 2020, approximately 97% and 96%, respectively, of our contract assets were attributable to six customers. Our revenues are derived from a small customer base. Historically, these customers have not entered into long-term contracts because their need for drug supply depends on a variety of factors, including a product’s stage of development, the timing of regulatory filings and approvals, the product needs of their collaborators, if applicable, their financial resources and the market demand with respect to a commercial product. The table below identifies each of our customers that accounted for 10% or more of our total revenues during any of the fiscal years ended April 30, 2021, 2020 and 2019: Customer Geographic Location 2021 2020 2019 Halozyme Therapeutics, Inc. U.S. 51% 28% 30% Gilead Sciences, Inc. U.S. 16 24 – IGM Biosciences, Inc. U.S. * 11 * Acumen Pharmaceuticals, Inc. U.S. * 11 * Coherus BioSciences, Inc. U.S. * 10 13 ADC Therapeutics America Inc. U.S. * * 21 ______________ * Represents a percentage less than 10% of our total revenues. We attribute revenue to the individual countries where the customer is headquartered. Revenues derived from U.S. based customers were approximately 100%, 99% and 95% for the fiscal years ended April 30, 2021, 2020 and 2019, respectively. Leases On May 1, 2019, we adopted 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 (ROU) assets, operating lease liabilities and operating lease liabilities, less current portion in our consolidated balance sheets. ROU 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 ROU 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. Operating lease expense is recognized on a straight-line basis over the expected lease term. We have elected not to apply the recognition requirements of ASC 842 for short-term leases. We have also elected the practical expedient to not separate lease components from non-lease components. 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 asset, which are generally as follows: Description Estimated Useful Life Leasehold improvements Shorter of estimated useful life or lease term Laboratory and manufacturing equipment 5 – 10 years Computer equipment and software 3 – 5 years Furniture, fixtures and office equipment 5 – 10 years 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 April 30, 2021 and 2020. All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands): April 30, 2021 2020 Leasehold improvements $ 23,000 $ 21,130 Laboratory and manufacturing equipment 20,793 15,033 Computer equipment and software 5,541 5,334 Furniture, fixtures and office equipment 843 685 Construction-in-progress 8,372 2,564 Total property and equipment, gross 58,549 44,746 Less: accumulated depreciation and amortization (21,094 ) (17,641 ) Total property and equipment, net $ 37,455 $ 27,105 Depreciation and amortization expense for the fiscal years ended April 30, 2021, 2020 and 2019 was $3.5 million, $3.1 million and $2.7 million, respectively. Capitalized Software Implementation Costs We capitalize certain implementation costs incurred under a cloud computing hosting arrangement. Costs incurred during the application development stage related to the implementation of the hosting arrangement are capitalized and included within other assets on the accompanying Consolidated Balance Sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the term of the associated hosting arrangement when it is ready of its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. As of April 30, 2021, we had capitalized software implementation costs of $0.9 million. We did not have any capitalized implementation software costs as of April 30, 2020. 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. If such events or changes in circumstances arise, we compare the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the long-lived assets are determined to be impaired, any excess of the carrying value of the long-lived assets over its estimated fair value is recognized as an impairment loss. For the fiscal years ended April 30, 2021 and 2020, there were no indicators of impairment of the value of our long-lived assets and no cumulative impairment losses were recognized as of April 30, 2021. Fair Value of Financial Instruments The carrying amounts in the accompanying Consolidated Balance Sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and note payable approximate their fair values due to their short-term maturities. 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 April 30, 2021 and 2020, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents of $158.8 million and $27.6 million, respectively, are invested in money market funds with two major commercial banks, are carried at fair value based on quoted market prices for identical securities (Level 1 inputs). In addition, the outstanding principal amount of our convertible senior notes of $143.8 million approximates its estimated fair value at April 30, 2021 given the short period of time between the issuance of such notes in March 2021 (Note 3) and our fiscal year ended April 30, 2021. We had no convertible senior notes outstanding as of April 30, 2020. 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 ASC 718, Compensation – Stock Compensation Debt Discount and Issuance Costs Debt discount and issuance costs related to convertible senior notes are recorded as deductions that net against the principal value of the debt and are amortized to interest expense over the contractual term of the debt using the effective interest method (Note 3). Income Taxes We utilize the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes The income tax benefit recognized in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended April 30, 2019 resulted from the “Intraperiod Tax Allocation” rules under ASC 740, which requires the allocation of an entity’s total annual income tax provision among continuing operations and, in our case, discontinued operations. Accordingly, a tax benefit was recorded in continuing operations with an offsetting tax expense recorded in discontinued operations (Note 11). Comprehensive Income (Loss) Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is equal to our net income (loss) for all periods presented. Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
3. Debt
3. Debt | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Note 3 – Debt Note Payable On April 17, 2020, we entered into a promissory note (the “Note”) with City National Bank, the lender, evidencing an unsecured loan pursuant to the U.S. Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “CARES Act”) of approximately $4.4 million (the “PPP Loan”). We applied for and received the PPP Loan pursuant to the then published PPP qualification and certification requirements. On April 23, 2020, the SBA, in consultation with the Department of Treasury, issued new guidance that created uncertainty regarding the qualification requirements for a PPP Loan (the “New Guidance”). In light of the New Guidance, we determined it appropriate to pay off the entire amount of the PPP Loan. Accordingly, on May 12, 2020, we paid off in full the principal and interest on the PPP Loan, resulting in the termination of the Note. Convertible Senior Notes On March 12, 2021, Avid SPV, LLC (the “Issuer”), a wholly-owned finance subsidiary of Avid Bioservices, Inc. (the “Company”), issued $143.8 million in aggregate principal amount of 1.250% exchangeable senior notes due 2026 (“Convertible Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act, which aggregate principal amount included the $18.8 million issued pursuant to the initial purchasers’ full exercise of their option to purchase additional principal amount of Convertible Notes. The net proceeds we received from the issuance of Convertible Notes was $138.5 million, after deducting initial purchaser discounts and other debt issuance related expenses of $5.3 million. The Convertible Notes are governed by an indenture dated March 12, 2021 (as subsequently amended or supplemented, the “Indenture”) between the Issuer, the Company and U.S. Bank National Association, as trustee (the “Trustee”). On April 30, 2021, the Company and the Issuer entered into an Agreement and Plan of Merger (the “Merger Agreement”). Pursuant to the Merger Agreement, the Issuer was merged with and into the Company effective April 30, 2021, with the Company as the surviving corporation (the “Merger”). In connection with the Merger, on April 30, 2021, the Company, the Issuer and the Trustee, entered into a first supplemental indenture, pursuant to which the Company agreed to assume all obligations under the Indenture, along with the Convertible Notes issued thereunder, and was discharged from its guarantor obligations under the guarantee set forth in the Indenture. The Convertible Notes are senior unsecured obligations and accrue interest at a rate of 1.250% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The Convertible Notes mature on March 15, 2026, unless earlier redeemed or repurchased by us or converted at the option of the holders. The Convertible Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election in the manner and subject to the terms and conditions provided in the Indenture. The initial conversion rate for the Convertible Notes is approximately 47.1403 shares of our common stock per $1,000 principal amount, which represents an initial conversion price of approximately $21.21 per share of our common stock. The conversion rate is subject to adjustments upon the occurrence of certain events in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert their Convertible Notes in connection with such a fundamental change, as defined in the Indenture. Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding September 15, 2025, only under the following circumstances: (1) During any fiscal quarter commencing after the fiscal quarter ending July 31, 2021, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) During the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price (as defined in the Indenture) per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the exchange rate on each such trading day; (3) If we call any or all of the Convertible Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; and (4) Upon the occurrence of specified corporate events as described in the Indenture. On or after September 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders at their option may convert their Convertible Notes at any time, regardless of the foregoing circumstances. We may not redeem the Convertible Notes prior to March 20, 2024. On or after March 20, 2024, the Convertible Notes are redeemable for cash, whole or in part, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If we undergo a fundamental change (as defined in the Indenture), holder may require us to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding the redemption date. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, the trustee or the holders of at least 25% in aggregate principle amount of the outstanding Convertible Notes may declare the entire principal of all the Convertible Notes plus accrued and unpaid interest to be immediately due and payable. In accordance with accounting guidance for debt with conversion and other options, we separated the Convertible Notes into debt and equity components. The carrying amount of the debt component on the date of the issuance was $99.7 million and was determined based on a binomial lattice model, which yielded an effective discount rate of 8.78% and was derived with the assistance of a third party valuation. The equity component was allocated a value of $44.1 million, representing the difference between the par value of the Convertible Notes and the fair value of the debt component. The equity component is not remeasured as long as it continues to meet the conditions for equity classification, and the equity component was recorded as additional paid-in capital within stockholders’ equity on the Consolidated Balance Sheet at April 30, 2021. The difference between the principal amount of the Convertible Notes and the debt component, or the debt discount, is amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes. The debt component is classified as a long-term liability as of April 30, 2021. In accounting for the issuance costs related to the Convertible Notes, we allocated the total amount incurred to the debt and equity components of the Convertible Notes based on their relative values. Issuance costs attributable to the debt component were $3.7 million and are being amortized to interest expense using the effective interest method over the contractual term of the Convertible Notes. Issuance costs attributable to the equity component were $1.6 million and were netted with the equity component in additional paid-in capital. The net carrying amount of the debt component of the Convertible Notes is as follows (in thousands): April 30, 2021 Principal $ 143,750 Unamortized debt discount (43,189 ) Unamortized issuance costs (3,612 ) Net carrying amount $ 96,949 The net carrying amount of the equity component of the Convertible Notes is as follows (in thousands): April 30, 2021 Equity component (debt discount) $ 44,051 Issuance costs (1,620 ) Net carrying amount $ 42,431 Interest expense recognized related to the Convertible Notes is as follows (in thousands): Year Ended April 30, 2021 Contractual interest expense $ 245 Amortization of debt discount 862 Amortization of issuance costs 54 Total interest expense $ 1,161 Capped Call Transactions In connection with the issuance of the Convertible Notes, we entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institution counterparties (the “Option Counterparties”). We used $12.8 million of the net proceeds from the issuance of the Convertible Notes to pay the cost of the Capped Calls. The Capped Calls cover, subject to customary anti-dilution adjustments, the aggregate number of shares of our common stock that initially underlie the Convertible Notes, and are generally expected to reduce the potential dilution of our common stock upon any conversion of the Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap, based on the cap price of the Capped Calls. The cap share price of the Capped Calls is approximately $28.02 per share, which represents a premium of 75% over the last reported sale price of our common stock on March 9, 2021 and is subject to certain adjustments under the terms of the Capped Calls. However, there would nevertheless be dilution upon conversion of the Convertible Notes to the extent that such market price exceeds the capped share price as measured under the terms of the Capped Calls. We evaluated the Capped Calls under ASC 815-10 and determined that it should be accounted for as a separate transaction from the Convertible Notes and that the Capped Calls met the criteria for equity classification. Therefore, the cost of $12.8 million to purchase the Capped Calls were recorded as a reduction to additional paid-in capital in the Consolidated Balance Sheet at April 30, 2021. The Capped Calls will not be subsequently remeasured as long as the conditions for equity classification continue to be met. |
4. Leases
4. Leases | 12 Months Ended |
Apr. 30, 2021 | |
Lessee Disclosure [Abstract] | |
Leases | Note 4 – Leases We currently lease office, manufacturing, laboratory and warehouse space in four buildings under three separate non-cancellable operating lease agreements. 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. A multi-year renewal option was included in determining the ROU 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 ROU assets and liabilities on our Consolidated Balance Sheets for the fiscal years ended April 30, 2021 and 2020 primarily relate to these facility leases. In September 2019, we terminated an operating lease for one of our non-manufacturing facilities that was primarily utilized for warehouse space. In connection with the termination of this lease, we removed the corresponding operating lease right-of-use asset and liability balances from our Consolidated Balance Sheet and recognized a loss of $0.4 million, which amount is included in loss on lease termination in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended April 30, 2020. Certain of our facility leases require us to pay property taxes, insurance and common area maintenance. While these payments are not included as part of our lease liabilities, they are recognized as variable lease cost in the period they are incurred. The components of lease cost for the fiscal years ended April 30, 2021 and 2020, were as follows (in thousands): April 30, 2021 2020 Operating lease cost $ 3,151 $ 3,339 Variable lease cost 676 603 Short-term lease cost 388 171 Total lease cost $ 4,215 $ 4,113 Operating lease expense under the prior lease standard was $2.9 million for the fiscal year ended April 30, 2019. Supplemental consolidated balance sheet and other information related to our operating leases as of April 30, 2021 and 2020 were as follows (in thousands, expect weighted average data): April 30, 2021 2020 Assets Operating lease ROU assets $ 18,691 $ 20,100 Liabilities Current portion of operating lease liabilities $ 1,355 $ 1,228 Operating lease liabilities, less current portion 19,889 21,244 Total operating lease liabilities $ 21,244 $ 22,472 Weighted average remaining lease term 9.6 years 10.5 years Weighted average discount rate 8.0% 8.0% Cash paid for amounts included in the measurement of lease liabilities for the fiscal years ended April 30, 2021 and 2020 was $3.0 million and $3.1 million, respectively, and is included in net cash used in operating activities in our Consolidated Statements of Cash Flows. As of April 30, 2021, the maturities of our operating lease liabilities, which includes those derived from lease renewal options that we considered it reasonably certain that we would exercise, were as follows (in thousands): Fiscal Year Total 2022 $ 2,995 2023 3,010 2024 3,086 2025 3,171 2026 3,250 Thereafter 15,517 Total lease payments 31,029 Less: imputed interest (9,785 ) Total operating lease liabilities $ 21,244 |
5. Stockholders' Equity
5. Stockholders' Equity | 12 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Note 5 – Stockholders’ Equity Series E Preferred Stock Redemption and Dividends On February 12, 2014, we filed with the Secretary of State of the State of Delaware a Certificate of Designations of Rights and Preferences (the “Certificate of Designations”) to designate the 10.50% Series E Convertible Preferred Stock (the “Series E Preferred Stock”). The Certificate of Designations designated 2,000,000 shares of Series E Preferred Stock out of our 5,000,000 shares of authorized but unissued shares of preferred stock. We classified the Series E Preferred Stock as permanent equity in accordance with FASB ASC Topic 480, Distinguishing Liabilities from Equity During the fourth quarter of fiscal 2021 and prior to the redemption discussed below, holders of our Series E Preferred Stock converted an aggregate of 28,168 shares of Series E Preferred Stock into 33,514 shares of our common stock determined by dividing the liquidation amount of $25.00 per share by the conversion price of $21.00 per share, rounded down to the nearest whole number. On April 12, 2021 (the “Redemption Date”), we redeemed all then current remaining outstanding shares of our Series E Preferred Stock at a per share price equal to the $25.00 liquidation amount plus accrued and unpaid dividends up to, but excluding, the Redemption Date. In connection with the completed redemption, we incurred a charge of $3.4 million related to the excess of the redemption value paid upon redemption over the carrying value of our Series E Preferred Stock which is included in impact of preferred stock redemption in the Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended April 30, 2021. As a result of the completed redemption, our Series E Preferred Stock is no longer issued and outstanding. Holders of our Series E Preferred Stock were 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, and were payable quarterly in cash, on or about the first day of each January, April, July, and October. In addition, in April 2021, accrued and unpaid dividends of $0.08021 per share was paid to holders of Series E Preferred Stock in connection with the redemption of our Series E Preferred Stock discussed above. For the fiscal years ended April 30, 2021, 2020 and 2019, we paid aggregate cash dividends of $4.5 million, $4.3 million and $4.3 million, respectively. Sale of Common Stock In December 2020, we completed an underwritten public offering pursuant to which we sold 3,833,335 shares of our common stock at the public offering price of $9.00 per share, including 500,000 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares. The aggregate gross proceeds we received from the public offering were $34.5 million, before deducting underwriting discounts and commissions and other offering related expenses of $2.4 million. During the fiscal years ended April 30, 2020 and 2019, we had no offerings of our common stock. Warrants As of April 30, 2021 and 2020, we had no warrants issued or outstanding. Shares of Common Stock Authorized and Reserved for Future Issuance As of April 30, 2021, 61,068,579 shares of our common stock were issued and outstanding. Our common stock outstanding as of April 30, 2021 excluded the following shares of common stock reserved for future issuance (in thousands): Shares Stock Incentive Plans 6,290 Employee Stock Purchase Plan 1,076 Conversion of Convertible Senior Notes 6,776 Total common stock reserved for future issuance 14,142 |
6. Equity Compensation Plans
6. Equity Compensation Plans | 12 Months Ended |
Apr. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plans | Note 6 – Equity Compensation Plans Stock Incentive Plans The Avid Bioservices, Inc. 2018 Omnibus Incentive Plan (the “2018 Plan”) is a stockholder-approved plan, which provides, among other things, the ability for us to grant stock options, restricted stock units and other forms of stock-based awards. The 2018 Plan replaced our 2009, 2010 and 2011 Stock Incentive Plans (the “Prior Plans”). However, any awards outstanding under the Prior Plans as of the 2018 Plan’s effective date continue to remain subject to and be paid under the applicable Prior Plan, and any shares subject to outstanding awards under the Prior Plans that subsequently expire, terminate, or are surrendered or forfeited for any reason without issuance of shares automatically become available for issuance under the 2018 Plan. In addition, we currently maintain three expired stock incentive plans referred to as the 2005, 2003 and 2002 Stock Incentive Plans (collectively, the “Expired Plans”). No future grants of stock-based awards can be issued from the Expired Plans, however, all outstanding awards granted under the Expired Plans will remain subject to the terms of the Expired Plans until they are exercised, canceled or expired. The 2018 Plan, the Prior Plans, and the Expired Plans are collectively referred to as the “Stock Plans”. As of April 30, 2021, we had an aggregate of 6,289,557 shares of our common stock reserved for issuance under the Stock Plans, of which 3,689,364 shares were subject to outstanding stock options and restricted stock units and 2,600,193 shares were available for future grants of stock-based awards. Stock Options Stock options granted under our Stock Plans are granted at an exercise price not less than the fair market value of our common stock on the date of grant. Stock option grants to employees generally vest in equal annual installments over a four-year period from the date of grant and stock option grants to non-employee directors generally vest over a period of one to three years from the date of grant. Stock options granted under the 2018 Plan have a contractual term of seven years; however, the maximum contractual term of any stock option granted under the Stock Plans is ten years. The estimated fair value of stock options is measured at the grant date, using a fair value based method, such as a Black-Scholes option valuation model, and is amortized as stock-based compensation expense on a straight-line basis over the requisite service period of the award, which is generally the vesting period. The use of a valuation model requires us to make certain estimates and assumptions with respect to selected model inputs. The expected volatility is based on the daily historical volatility of our common stock covering the estimated expected term. The expected term of options granted reflects actual historical exercise activity and assumptions regarding future exercise activity of unexercised, outstanding options. The risk-free interest rate is based on U.S. Treasury notes with terms within the contractual life of the option at the time of grant. The expected dividend yield assumption is based on our expectation of future dividend payouts. We have never declared or paid any cash dividends on our common stock and currently do not anticipate paying such cash dividends. The fair value of stock options on the date of grant and the weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model were as follows: Fiscal Year Ended April 30, 2021 2020 2019 Risk-free interest rate 0.32% 1.86% 2.81% Expected life (in years) 4.69 5.06 5.57 Expected volatility 81.42% 77.45% 76.56% Expected dividend yield – – – The following summarizes our stock option transaction activity for the fiscal year ended April 30, 2021: Stock Options (in thousands) Grant Date Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (1) (in thousands) Outstanding at May 1, 2020 2,896 $ 6.20 Granted 914 $ 7.68 Exercised (559 ) $ 6.39 Canceled or expired (121 ) $ 7.23 Outstanding at April 30, 2021 3,130 $ 6.56 5.41 $ 46,452 Vested and expected to vest 3,130 $ 6.56 5.41 $ 46,452 Exercisable at April 30, 2021 1,458 $ 6.46 4.75 $ 21,787 ______________ (1) Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 30, 2021, which was $21.41 per share. The weighted-average grant date fair value of options granted during the fiscal years ended April 30, 2021, 2020 and 2019 was $4.74, $3.74 and $3.30 per share, respectively. The aggregate intrinsic value of stock options exercised during the fiscal years ended April 30, 2021, 2020 and 2019 was $3.9 million, $0.7 million and $0.5 million, respectively. Cash received from stock options exercised during fiscal years ended April 30, 2021, 2020 and 2019 totaled $3.6 million, $0.9 million and $1.3 million, respectively. We issue shares of common stock that are reserved for issuance under the Stock Plans upon the exercise of stock options, and we do not expect to repurchase shares of common stock from any source to satisfy our obligations under our compensation plans. As of April 30, 2021, the total estimated unrecognized compensation cost related to non-vested stock options was $5.5 million. This cost is expected to be recognized over a weighted average vesting period of 2.55 years based on current assumptions. Restricted Stock A restricted stock unit (“RSU”) represents the right to receive one share of our common stock upon the vesting of such unit. RSUs granted to employees generally vest in equal annual installments over a four-year period from the date of grant and RSUs granted to non-employee directors generally vest over a period of one to three years from the date of grant. The estimated fair value of RSUs is based on the closing market value of our common stock on the date of grant and is amortized as stock-based compensation expense on a straight-line basis over the period of vesting. The following summarizes our RSUs transaction activity for the fiscal year ended April 30, 2021: Shares (in thousands) Weighted Average Grant Date Fair Value Outstanding at May 1, 2020 307 $ 5.23 Granted 356 7.29 Vested (89 ) 5.27 Forfeited (14 ) 5.64 Outstanding at April 30, 2021 560 $ 6.52 The weighted-average grant date fair value of RSUs granted during the fiscal years ended April 30, 2021, 2020 and 2019 was $7.29, $5.91 and $4.28 per share, respectively. The total fair value of RSUs vested during the fiscal years ended April 30, 2021 and 2020 was $0.7 million and $0.3 million, respectively. No RSUs vested during the fiscal year ended April 30, 2019. As of April 30, 2021, the total estimated unrecognized compensation cost related to non-vested RSUs was $2.8 million. This cost is expected to be recognized over a weighted average vesting period of 2.64 years. Employee Stock Purchase Plan The Avid Bioservices, Inc. 2010 Employee Stock Purchase Plan (the “ESPP”) is a stockholder-approved plan under which employees can purchase shares of our common stock, based on a percentage of their compensation, subject to certain limits. The purchase price per share is equal to the lower of 85% of the fair market value of our common stock on the first trading day of the six-month offering period or on the last trading day of the six-month offering period. 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 six-month offering periods from May 1 and November 1 of each year to January 1 and July 1 of each year. During the fiscal years ended April 30, 2021, 2020 and 2019, a total of 72,409, 47,526 and 75,148 shares of our common stock were purchased, respectively, under the ESPP at a weighted average purchase price per share of $5.84, $3.94 and $3.44, respectively. As of April 30, 2021, we had 1,076,326 shares of our common stock reserved for issuance under the ESPP. The fair value of the shares purchased under the ESPP was determined using a Black-Scholes option valuation model (see explanation of valuation model inputs above under “Stock Options”) and is recognized as expense on a straight-line basis over the requisite service period (or six-month offering period). The weighted average grant date fair value of purchase rights under the ESPP during fiscal years ended April 30, 2021, 2020 and 2019 was $3.17, $1.81 and $1.49, respectively, based on the following weighted-average Black-Scholes option valuation model inputs: Fiscal Year Ended April 30, 2021 2020 2019 Risk-free interest rate 0.14% 2.08% 2.26% Expected life (in years) 0.50 0.50 0.50 Expected volatility 75.50% 56.71% 71.10% Expected dividend yield – – – Stock-based Compensation Expense Stock-based compensation expense included in our Consolidated Statements of Operations and Comprehensive Income (Loss) was comprised of the following (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Cost of revenues $ 1,404 $ 922 $ 474 Selling, general and administrative expense 2,450 1,577 1,121 Total $ 3,854 $ 2,499 $ 1,595 Due to the utilization of our tax carryforward attributes, no tax benefits have been recognized in the Consolidated Statements of Cash Flows. |
7. Income Taxes
7. Income Taxes | 12 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – Income Taxes Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. At April 30, 2021, management assessed the realizability of deferred tax assets and evaluated the need for a valuation allowance for deferred tax assets on a jurisdictional basis. This evaluation utilizes the framework contained in ASC 740 wherein management analyzes all positive and negative evidence available at the balance sheet date to determine whether all or some portion of our deferred tax assets will not be realized. Under this guidance, a valuation allowance must be established for deferred tax assets when it is more-likely-than-not that the asset will not be realized. In assessing the realization of our deferred tax assets, management considers all available evidence, both positive and negative. In concluding on the evaluation, management placed significant emphasis on guidance in ASC 740, which states that “a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome.” Based upon available evidence, it was concluded on a more-likely-than-not basis that all deferred tax assets were not realizable as of April 30, 2021. Accordingly, a valuation allowance of $111.4 million has been recorded to offset our deferred tax asset. The valuation allowance decreased $6.7 million and $1.4 million for the years ended April 30, 2021 and 2020, respectively. We are subject to taxation in the United States and various states jurisdictions. We have not been notified that we are under audit by the IRS or any state taxing authorities, however, due to the presence of NOL carryforwards, all of the income tax years remain open for examination in each of these jurisdictions. At April 30, 2021, we had federal net operating loss carry forwards of approximately $406.7 million. The federal net operating loss carry forwards generated prior to January 1, 2018 expire in fiscal years 2022 through 2038. The federal net operating loss generated after January 1, 2018 of $19.6 million can be carried forward indefinitely. Utilization of net operating losses generated subsequent to 2020 are limited to 80% of future taxable income. We also have California state net operating loss carry forwards of approximately $272.1 million at April 30, 2021, which begin to expire in fiscal year 2029. We also have other state net operating loss carry forwards of approximately $0.9 million at April 30, 2021, which begin to expire in fiscal year 2037. Additionally, the future utilization of our net operating loss carry forwards to offset future taxable income may be subject to an annual limitation, pursuant to Internal Revenue Code Section 382, as a result of ownership changes that may have occurred previously or that could occur in the future. A Section 382 analysis has been completed through April 30, 2021, which it was determined that no significant change in ownership had occurred. However, ownership changes occurring subsequent to April 30, 2021 may impact the utilization of net operating loss carry forwards and other tax attributes. At April 30, 2021, we had $5.8 million and $3.3 million of federal and California research and development credit carry forwards. The California research credits do not expire and the federal credits begin to expire in in fiscal year 2026. The provision for income taxes on our income (loss) from continuing operations for the fiscal years ended April 30, 2021, 2020 and 2019 is comprised of the following (in thousands): 2021 2020 2019 Federal income taxes at statutory rate $ 2,355 $ (2,197 ) $ (1,120 ) State income taxes, net of valuation allowance – – (48 ) Expiration and adjustments of deferred tax assets 451 2,588 2,507 Change in federal valuation allowance 2,450 (1,664 ) (2,480 ) Stock-based compensation (240 ) 1,138 1,309 Research and development credits (4,958 ) – – Other, net (58 ) 135 (452 ) Income tax expense (benefit) $ – $ – $ (284 ) Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and deferred tax liabilities at April 30, 2021 and 2020 are as follows (in thousands): 2021 2020 Net operating losses $ 109,663 $ 114,105 Research and development credits 7,566 – Stock-based compensation 2,776 2,573 Deferred revenue 1,086 810 Lease liabilities 6,260 6,324 Debt issuance costs 470 – Accrued liabilities and other 942 1,197 Accrued compensation 2,263 – Total deferred tax assets 131,026 125,009 Less valuation allowance (111,388 ) (118,137 ) Total deferred tax assets, net of valuation allowance 19,638 6,872 Deferred tax liabilities: Fixed assets (1,404 ) (1,216 ) ROU assets (5,508 ) (5,656 ) Beneficial conversion feature (12,726 ) – Total deferred tax liabilities (19,638 ) (6,872 ) Net deferred tax assets $ – $ – In accordance with ASC 740, we are required to recognize the impact of an uncertain tax position in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. An uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained upon examination by the tax authorities. Unrecognized tax positions at April 30, 2021 and 2020 are as follows (in thousands): 2021 2020 Unrecognized tax positions, beginning of year $ – $ – Gross increase – prior period tax positions 1,600 – Unrecognized tax positions, end of year $ 1,600 $ – It is our policy, in accordance with authoritative guidance, to recognize interest and penalties related to income tax matters in interest expense and interest and other income, net, respectively, in our consolidated statements of operations and comprehensive income (loss) for the fiscal years ended April 30, 2021 and 2020. If recognized, none of the unrecognized tax positions would impact our income tax benefit or effective tax rate as long as our net deferred tax assets remain subject to a full valuation allowance. We do not expect any significant increases or decreases to our unrecognized tax positions within the next 12 months. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, the creation of certain refundable employee retention credits, and technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property. The CARES Act did not have a material impact on our income tax provision for the years ended April 30, 2021, or 2020. On June 29, 2020, the state of California enacted Assembly Bill No. 85 (AB 85) suspending California net operating loss utilization and imposing a cap on the amount of business incentive tax credits companies can utilize, effective for tax years 2020, 2021 and 2022. This bill is not anticipated to materially impact our income tax provision. |
8. Net Income (Loss) Per Common
8. Net Income (Loss) Per Common Share | 12 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 8 – Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed by dividing our net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing our net income (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, Series E Preferred Stock, and Convertible Notes outstanding during the period. Net income attributable to common stockholders represents our net income less Series E Preferred Stock accumulated dividends and impact of Series E Preferred Stock redemption. 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 and Convertible Notes outstanding during the period are calculated using the if-converted method assuming the conversion of Series E Preferred Stock and Convertible Notes as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands, expect per share amounts): Fiscal Year Ended April 30, 2021 2020 2019 Numerator Net income (loss) $ 11,212 $ (10,466 ) $ (4,215 ) Series E preferred stock accumulated dividends (4,455 ) (4,686 ) (4,686 ) Impact of Series E preferred stock redemption (3,439 ) – – Net income (loss) attributable to common stockholders $ 3,318 $ (15,152 ) $ (8,901 ) Denominator Weighted average common shares outstanding, basic 58,222 56,326 55,981 Effect of dilutive securities: Stock options 909 – – RSUs 272 – – ESPP 23 – – Weighted average common shares outstanding, dilutive 59,426 56,326 55,981 Net income (loss) per share, basic: $ 0.06 $ (0.27 ) $ (0.16 ) Net income (loss) per share, dilutive $ 0.06 $ (0.27 ) $ (0.16 ) The following table presents the potential dilutive securities excluded from the calculation of diluted net income (loss) per share for the periods presented as the effect of their inclusion would have been anti-dilutive (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Stock options 829 2,795 2,851 RSUs – 83 68 ESPP – 7 11 Warrants – – 13 Series E Preferred Stock 1,864 1,979 1,979 Convertible senior notes 928 – – Total 3,621 4,864 4,922 |
9. Employee Benefit Plan
9. Employee Benefit Plan | 12 Months Ended |
Apr. 30, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Note 9 – Employee Benefit Plan We maintain a 401(k) Plan pursuant to section 401(k) of the Internal Revenue Code that allows participating employees to defer a portion of their compensation on a tax deferred basis up to the maximum amount permitted by the Internal Revenue Code. We match 50% of employee contributions of up to 6% of their annual eligible compensation. Total expense recognized by us for matching contributions to the 401(k) Plan for the fiscal years ended April 30, 2021, 2020 and 2019 was $0.5 million, $0.5 million and $0.4 million, respectively. |
10. Commitments and Contingenci
10. Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies In the ordinary course of business, we are at times subject to various legal proceedings and disputes. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions, if any, are reviewed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. We currently are not a party to any legal proceedings, the adverse outcome of which, in management’s opinion, individually or in the aggregate, would have a material adverse effect on our consolidated financial condition or results of operations. In March 2020, the World Health Organization declared the novel coronavirus disease (“COVID-19”) outbreak a global pandemic and recommended containment and mitigation measures worldwide. Since the announcement we have been monitoring this closely, and although the COVID-19 pandemic has not had a significant impact on our operations to date, the ultimate duration and severity of the outbreak and its impact on the economic environment and our business is highly uncertain. Accordingly, we cannot provide any assurance that the COVID-19 pandemic will not have a material adverse impact on our operations or future results. The extent to which the COVID-19 pandemic may impact our future business, strategic initiatives, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to the duration, spread, severity and resurgence of the COVID-19 pandemic, the effects of the COVID-19 pandemic on our workforce, customers and vendors and the remedial actions and stimulus measures adopted by local and federal governments, and the extent to which normal economic and operating conditions can resume. |
11. Sale of Research and Develo
11. Sale of Research and Development Assets | 12 Months Ended |
Apr. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Research and Development Assets | Note 11 – Sale of Research and Development Assets In February 2018, we entered into an Asset Assignment and Purchase Agreement (the “February 2018 Purchase Agreement”) with OncXerna Therapeutics, Inc. (“OncXerna”) (formerly known Oncologie, Inc.), pursuant to which we sold to Oncologie the majority of our research and development assets, which included the assignment of certain exclusive licenses related to our former phosphatidylserine (“PS”)-targeting program, as well as certain other licenses and assets useful and/or necessary for the potential commercialization of bavituximab. Pursuant to the February 2018 Purchase Agreement, we received an aggregate of $8.0 million from OncXerna, of which $3.0 million was received in fiscal year 2018 and $5.0 million was received in fiscal year 2019. We are also eligible to receive up to an additional $95.0 million in the event that OncXerna achieves certain development, regulatory and commercialization milestones with respect to bavituximab. In addition, we are eligible to receive royalties on net sales that are upward tiering into the mid-teens in the event that OncXerna commercializes and sells products utilizing bavituximab or the other transferred assets. As of April 30, 2021, no development, regulatory or commercialization milestones have been achieved by OncXerna under the February 2018 Purchase Agreement. OncXerna is responsible for all future research, development and commercialization of bavituximab, including all related intellectual property costs and all other future liabilities and obligations arising out of the ownership of the transferred assets. In September 2018, we entered into a separate Asset Assignment and Purchase Agreement (the “September 2018 Purchase Agreement”) with OncXerna, pursuant to which we sold to OncXerna 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. Pursuant to the September 2018 Purchase Agreement, we received $1.0 million from OncXerna, which amount was paid in fiscal year 2019. We are also eligible to receive up to an additional $21.0 million in the event that OncXerna achieves certain development, regulatory and commercialization milestones with respect to r84. In addition, we are eligible to receive royalties on net sales ranging from the low to mid-single digits in the event that OncXerna commercializes and sells products utilizing the r84 technology. As of April 30, 2021, no development, regulatory or commercialization milestones have been achieved by OncXerna under the September 2018 Purchase Agreement. OncXerna is responsible for all future research, development and commercialization of r84, including all related intellectual property costs and all other future liabilities and obligations arising out of the ownership of the transferred assets. Discontinued Operations As a result of the sale of our PS-targeting and r84 technologies, 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 from our former research and development segment have been excluded from continuing operations and presented as discontinued operations in the accompanying consolidated financial statements for all periods presented. During the fiscal year ended April 30, 2019, we recorded a gain of $1.0 million upon the completion of the February 2018 Purchase Agreement, which amount is included in income from discontinued operations, net of tax, in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal year ended April 30, 2019. The results of operations from discontinued operations presented below include certain allocations that management believes fairly reflect the utilization of services provided to the former research and development segment. The allocations do not include amounts related to general corporate administrative expenses or interest expense. Therefore, these results of operations do not necessarily reflect what the results of operations would have been had the former research and development segment operated as a stand-alone segment. There were no operating results from discontinued operations for the fiscal years ended April 30, 2021 and 2020. The following table summarizes the results of discontinued operations for the fiscal year ended April 30, 2019 (in thousands): Other income $ 125 Gain on sale of research and development assets before income taxes 1,000 Income tax expense 284 Income from discontinued operations, net of tax $ 841 |
12. Selected Quarterly Financia
12. Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Apr. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial data (unaudited) | Note 12 – Selected Quarterly Financial Data (Unaudited) The following is a summary of our unaudited quarterly results for each of the two most recent fiscal years (in thousands, except per share amounts): Fiscal Year Ended April 30, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 25,392 $ 21,064 $ 21,806 $ 27,606 Gross profit $ 8,544 $ 6,418 $ 6,202 $ 8,143 Total operating expenses $ 3,825 $ 4,166 $ 4,018 $ 5,055 Interest and other income (expense), net (1) $ 11 $ 32 $ 23 $ (1,097 ) Net income $ 4,730 $ 2,284 $ 2,207 $ 1,991 Series E preferred stock accumulated dividends $ (1,442 ) $ (1,442 ) $ (1,442 ) $ (1,211 ) Impact of Series E preferred stock redemption (2) $ – $ – $ – $ (3,439 ) Net income (loss) attributable to common stockholders $ 3,288 $ 842 $ 765 $ (2,659 ) Basic and diluted net income (loss) per common share attributable to common stockholders (3) $ 0.06 $ 0.01 $ 0.01 $ (0.04 ) Fiscal Year Ended April 30, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 15,254 $ 18,313 $ 13,585 $ 12,550 Gross profit (loss) $ 1,086 $ 3,360 $ 785 $ (1,299 ) Total operating expenses (4) $ 4,459 $ 3,889 $ 2,996 $ 3,528 Net loss $ (3,164 ) $ (430 ) $ (2,104 ) $ (4,768 ) Series E preferred stock accumulated dividends $ (1,442 ) $ (1,442 ) $ (1,442 ) $ (1,442 ) Net loss attributable to common stockholders $ (4,606 ) $ (1,872 ) $ (3,546 ) $ (6,210 ) Basic and diluted net loss per common share attributable to common stockholders (3) $ (0.08 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) _______________ (1) Interest and other income (expense), net, for the fourth quarter ended April 30, 2021 includes aggregate interest expense of $1.2 million related to our Convertible Notes issued in March 2021 (Note 3). (2) On April 12, 2021 we redeemed our outstanding shares of Series E Preferred Stock at a per share price equal to the $25.00 liquidation amount plus accrued and unpaid dividends up to, but excluding, the redemption date (Note 5). In connection with the completed redemption, we incurred a charge of $3.4 million related to the excess of the redemption value paid upon redemption over the carrying value of our Series E Preferred Stock. (3) Basic and diluted net income (loss) per common share attributable to common stockholders was the same for all periods presented. (4) Total operating expenses for the second quarter of fiscal year ended April 30, 2020 includes a loss on lease termination of $0.4 million (Note 4). |
2. Summary of Significant Acc_2
2. Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all short-term investments readily convertible to cash, without notice or penalty, with an initial maturity of 90 days or less to be cash equivalents. |
Restricted cash | Restricted Cash Under the terms of an operating lease related to one of our facilities (Note 4), we are required to maintain a letter of credit as collateral. Accordingly, at April 30, 2021 and 2020, restricted cash of $0.4 million was pledged as collateral under the letter of credit. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows (in thousands): As of April 30, 2021 2020 2019 Cash and cash equivalents $ 169,915 $ 36,262 $ 32,351 Restricted cash 350 350 1,150 Total cash, cash equivalents and restricted cash $ 170,265 $ 36,612 $ 33,501 |
Revenue Recognition | Revenue Recognition On May 1, 2018, we adopted Accounting Standards Codification (“ASC”) No. 2014-09, Revenue from Contracts with Customers Under ASC 606, we recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. Revenue recognized from services provided under our customer contracts are 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 at a specified scale, where the product is manufactured according to the customer’s specifications and typically includes only one performance obligation. 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 its product during the entire manufacturing process and can make changes to the process or specifications at its 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 its specifications and typically includes only one performance obligation. Each process represents a distinct service that is sold separately and has stand-alone value to the customer. The customer also retains control of its product as the product is being created or enhanced by our services and can make changes to its process or specifications upon request. Under these agreements, we are entitled to consideration for progress to date that includes an element of profit margin. The following table summarizes our manufacturing and process development revenue streams (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Manufacturing revenues $ 83,678 $ 52,046 $ 43,432 Process development revenues 12,190 7,656 10,171 Total revenues $ 95,868 $ 59,702 $ 53,603 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, 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 consolidated 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 fiscal years ended April 30, 2021 and 2020, we recognized revenue of $27.3 million and $13.6 million, respectively, for which the contract liability was recorded in a prior period. The transaction price for services provided under our customer contracts generally reflects our best estimates of the amount of consideration to which we are entitled in exchange for providing goods and services to our customers. In determining the transaction price, we considered the different sources of variable consideration including, but not limited to, discounts, credits, refunds, price concessions or other similar items. We have included in the transaction price some or all of an amount of variable consideration, utilizing the most likely method, only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The actual amount of consideration ultimately received may differ. Management may be required to exercise judgement in estimating revenue to be recognized. Judgement is required in identifying performance obligations, estimating the transaction price, estimating the stand-alone selling prices of identified performance obligations, and estimating the progress towards the satisfaction of performance obligations. If actual results in the future vary from our estimates, the estimates will be adjusted, which will affect revenues in the period that such variances become known. Changes in estimates for variable consideration resulted in an increase in revenues of $1.1 million for the fiscal year ended April 30, 2021 and a decrease in revenues of $1.5 million for the fiscal year ended April 30, 2020. There were no material adjustments in estimates for variable consideration for the fiscal year ended April 30, 2019. 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. As of April 30, 2021, we do not have any unsatisfied performance obligations for contracts greater than one year. |
Accounts Receivable | Accounts Receivable Accounts receivable generally represent amounts billed services provided under our customer contracts and are recorded at the invoiced amount net of an allowance for doubtful accounts, if necessary. We apply judgment in assessing the ultimate realization of our receivables and we estimate an allowance for doubtful accounts based on various factors, such as the aging of our receivables, historical experience, and the financial condition of our customers. Based on our analysis of our accounts receivable balances as of April 30, 2021 and 2020, we determined no allowance for doubtful accounts was necessary. |
Concentrations of Credit Risk and Customer Base | Concentrations of Credit Risk and Customer Base Financial instruments that potentially subject us to a significant concentration of credit risk consist of cash and cash equivalents, accounts receivable and contract assets. We maintain our cash balances primarily with two major commercial banks and our deposits held with each bank exceed the amount of government insurance limits provided on our deposits. We are exposed to credit risk in the event of default by the major commercial banks holding our cash balances to the extent of the cash amounts recorded on the accompanying Consolidated Balance Sheets exceed the amount of government insurance limits provided on our deposits. Our accounts receivable from amounts billed for services provided under customer contracts are derived from a small customer base. Most contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. At April 30, 2021 and 2020, approximately 98% of our accounts receivable were due from six customers. Our contract assets are reclassified to accounts receivable when our rights to consideration become unconditional. At April 30, 2021 and 2020, approximately 97% and 96%, respectively, of our contract assets were attributable to six customers. Our revenues are derived from a small customer base. Historically, these customers have not entered into long-term contracts because their need for drug supply depends on a variety of factors, including a product’s stage of development, the timing of regulatory filings and approvals, the product needs of their collaborators, if applicable, their financial resources and the market demand with respect to a commercial product. The table below identifies each of our customers that accounted for 10% or more of our total revenues during any of the fiscal years ended April 30, 2021, 2020 and 2019: Customer Geographic Location 2021 2020 2019 Halozyme Therapeutics, Inc. U.S. 51% 28% 30% Gilead Sciences, Inc. U.S. 16 24 – IGM Biosciences, Inc. U.S. * 11 * Acumen Pharmaceuticals, Inc. U.S. * 11 * Coherus BioSciences, Inc. U.S. * 10 13 ADC Therapeutics America Inc. U.S. * * 21 ______________ * Represents a percentage less than 10% of our total revenues. We attribute revenue to the individual countries where the customer is headquartered. Revenues derived from U.S. based customers were approximately 100%, 99% and 95% for the fiscal years ended April 30, 2021, 2020 and 2019, respectively. |
Leases | Leases On May 1, 2019, we adopted 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 (ROU) assets, operating lease liabilities and operating lease liabilities, less current portion in our consolidated balance sheets. ROU 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 ROU 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. Operating lease expense is recognized on a straight-line basis over the expected lease term. We have elected not to apply the recognition requirements of ASC 842 for short-term leases. We have also elected the practical expedient to not separate lease components from non-lease components. |
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, net | 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 asset, which are generally as follows: Description Estimated Useful Life Leasehold improvements Shorter of estimated useful life or lease term Laboratory and manufacturing equipment 5 – 10 years Computer equipment and software 3 – 5 years Furniture, fixtures and office equipment 5 – 10 years 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 April 30, 2021 and 2020. All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands): April 30, 2021 2020 Leasehold improvements $ 23,000 $ 21,130 Laboratory and manufacturing equipment 20,793 15,033 Computer equipment and software 5,541 5,334 Furniture, fixtures and office equipment 843 685 Construction-in-progress 8,372 2,564 Total property and equipment, gross 58,549 44,746 Less: accumulated depreciation and amortization (21,094 ) (17,641 ) Total property and equipment, net $ 37,455 $ 27,105 Depreciation and amortization expense for the fiscal years ended April 30, 2021, 2020 and 2019 was $3.5 million, $3.1 million and $2.7 million, respectively. |
Capitalized Software Implementation Costs | Capitalized Software Implementation Costs We capitalize certain implementation costs incurred under a cloud computing hosting arrangement. Costs incurred during the application development stage related to the implementation of the hosting arrangement are capitalized and included within other assets on the accompanying Consolidated Balance Sheets. Amortization of capitalized implementation costs is recognized on a straight-line basis over the term of the associated hosting arrangement when it is ready of its intended use. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. As of April 30, 2021, we had capitalized software implementation costs of $0.9 million. We did not have any capitalized implementation software costs as of April 30, 2020. |
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. If such events or changes in circumstances arise, we compare the carrying amount of the long-lived assets to the estimated future undiscounted cash flows expected to be generated by the long-lived assets. If the long-lived assets are determined to be impaired, any excess of the carrying value of the long-lived assets over its estimated fair value is recognized as an impairment loss. For the fiscal years ended April 30, 2021 and 2020, there were no indicators of impairment of the value of our long-lived assets and no cumulative impairment losses were recognized as of April 30, 2021. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts in the accompanying Consolidated Balance Sheets for cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and note payable approximate their fair values due to their short-term maturities. |
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 April 30, 2021 and 2020, we do not have any Level 2 or Level 3 financial assets or liabilities and our cash equivalents of $158.8 million and $27.6 million, respectively, are invested in money market funds with two major commercial banks, are carried at fair value based on quoted market prices for identical securities (Level 1 inputs). In addition, the outstanding principal amount of our convertible senior notes of $143.8 million approximates its estimated fair value at April 30, 2021 given the short period of time between the issuance of such notes in March 2021 (Note 3) and our fiscal year ended April 30, 2021. We had no convertible senior notes outstanding as of April 30, 2020. |
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 ASC 718, Compensation – Stock Compensation |
Debt Discount and Issuance Costs | Debt Discount and Issuance Costs Debt discount and issuance costs related to convertible senior notes are recorded as deductions that net against the principal value of the debt and are amortized to interest expense over the contractual term of the debt using the effective interest method (Note 3). |
Income Taxes | Income Taxes We utilize the liability method of accounting for income taxes in accordance with ASC 740, Income Taxes The income tax benefit recognized in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended April 30, 2019 resulted from the “Intraperiod Tax Allocation” rules under ASC 740, which requires the allocation of an entity’s total annual income tax provision among continuing operations and, in our case, discontinued operations. Accordingly, a tax benefit was recorded in continuing operations with an offsetting tax expense recorded in discontinued operations (Note 11). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is the change in equity during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income (loss) is equal to our net income (loss) for all periods presented. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and other Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity |
2. Summary of Significant Acc_3
2. Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows (in thousands): As of April 30, 2021 2020 2019 Cash and cash equivalents $ 169,915 $ 36,262 $ 32,351 Restricted cash 350 350 1,150 Total cash, cash equivalents and restricted cash $ 170,265 $ 36,612 $ 33,501 |
Disaggregation of revenue | The following table summarizes our manufacturing and process development revenue streams (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Manufacturing revenues $ 83,678 $ 52,046 $ 43,432 Process development revenues 12,190 7,656 10,171 Total revenues $ 95,868 $ 59,702 $ 53,603 |
Concentration of revenues | The table below identifies each of our customers that accounted for 10% or more of our total revenues during any of the fiscal years ended April 30, 2021, 2020 and 2019: Customer Geographic Location 2021 2020 2019 Halozyme Therapeutics, Inc. U.S. 51% 28% 30% Gilead Sciences, Inc. U.S. 16 24 – IGM Biosciences, Inc. U.S. * 11 * Acumen Pharmaceuticals, Inc. U.S. * 11 * Coherus BioSciences, Inc. U.S. * 10 13 ADC Therapeutics America Inc. U.S. * * 21 ______________ * Represents a percentage less than 10% of our total revenues. |
Schedule of estimated useful lives of property | Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related asset, which are generally as follows: Description Estimated Useful Life Leasehold improvements Shorter of estimated useful life or lease term Laboratory and manufacturing equipment 5 – 10 years Computer equipment and software 3 – 5 years Furniture, fixtures and office equipment 5 – 10 years |
Schedule of property and equipment | All of our property and equipment are located in the U.S. Property and equipment consist of the following (in thousands): April 30, 2021 2020 Leasehold improvements $ 23,000 $ 21,130 Laboratory and manufacturing equipment 20,793 15,033 Computer equipment and software 5,541 5,334 Furniture, fixtures and office equipment 843 685 Construction-in-progress 8,372 2,564 Total property and equipment, gross 58,549 44,746 Less: accumulated depreciation and amortization (21,094 ) (17,641 ) Total property and equipment, net $ 37,455 $ 27,105 |
3. Debt (Tables)
3. Debt (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of net carrying amount of the debt component | The net carrying amount of the debt component of the Convertible Notes is as follows (in thousands): April 30, 2021 Principal $ 143,750 Unamortized debt discount (43,189 ) Unamortized issuance costs (3,612 ) Net carrying amount $ 96,949 |
Schedule of net carrying amount of the equity component | The net carrying amount of the equity component of the Convertible Notes is as follows (in thousands): April 30, 2021 Equity component (debt discount) $ 44,051 Issuance costs (1,620 ) Net carrying amount $ 42,431 |
Schedule of Interest expense | Interest expense recognized related to the Convertible Notes is as follows (in thousands): Year Ended April 30, 2021 Contractual interest expense $ 245 Amortization of debt discount 862 Amortization of issuance costs 54 Total interest expense $ 1,161 |
4. Leases (Tables)
4. Leases (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Lessee Disclosure [Abstract] | |
Schedule of lease costs | The components of lease cost for the fiscal years ended April 30, 2021 and 2020, were as follows (in thousands): April 30, 2021 2020 Operating lease cost $ 3,151 $ 3,339 Variable lease cost 676 603 Short-term lease cost 388 171 Total lease cost $ 4,215 $ 4,113 |
Balance sheet classification of operating lease liabilities | Supplemental consolidated balance sheet and other information related to our operating leases as of April 30, 2021 and 2020 were as follows (in thousands, expect weighted average data): April 30, 2021 2020 Assets Operating lease ROU assets $ 18,691 $ 20,100 Liabilities Current portion of operating lease liabilities $ 1,355 $ 1,228 Operating lease liabilities, less current portion 19,889 21,244 Total operating lease liabilities $ 21,244 $ 22,472 Weighted average remaining lease term 9.6 years 10.5 years Weighted average discount rate 8.0% 8.0% |
Schedule of maturities of operating lease liabilities | As of April 30, 2021, the maturities of our operating lease liabilities, which includes those derived from lease renewal options that we considered it reasonably certain that we would exercise, were as follows (in thousands): Fiscal Year Total 2022 $ 2,995 2023 3,010 2024 3,086 2025 3,171 2026 3,250 Thereafter 15,517 Total lease payments 31,029 Less: imputed interest (9,785 ) Total operating lease liabilities $ 21,244 |
5. Stockholders' Equity (Tables
5. Stockholders' Equity (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Equity [Abstract] | |
Schedule of common stock reserved for future issuance | Our common stock outstanding as of April 30, 2021 excluded the following shares of common stock reserved for future issuance (in thousands): Shares Stock Incentive Plans 6,290 Employee Stock Purchase Plan 1,076 Conversion of Convertible Senior Notes 6,776 Total common stock reserved for future issuance 14,142 |
6. Net Income (Loss) Per Common
6. Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Schedule of stock option activity | The following summarizes our stock option transaction activity for the fiscal year ended April 30, 2021: Stock Options (in thousands) Grant Date Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (1) (in thousands) Outstanding at May 1, 2020 2,896 $ 6.20 Granted 914 $ 7.68 Exercised (559 ) $ 6.39 Canceled or expired (121 ) $ 7.23 Outstanding at April 30, 2021 3,130 $ 6.56 5.41 $ 46,452 Vested and expected to vest 3,130 $ 6.56 5.41 $ 46,452 Exercisable at April 30, 2021 1,458 $ 6.46 4.75 $ 21,787 ______________ (1) Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 30, 2021, which was $21.41 per share. |
Schedule of RSU activity | The following summarizes our RSUs transaction activity for the fiscal year ended April 30, 2021: Shares (in thousands) Weighted Average Grant Date Fair Value Outstanding at May 1, 2020 307 $ 5.23 Granted 356 7.29 Vested (89 ) 5.27 Forfeited (14 ) 5.64 Outstanding at April 30, 2021 560 $ 6.52 |
Share-based compensation expense | Stock-based compensation expense included in our Consolidated Statements of Operations and Comprehensive Income (Loss) was comprised of the following (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Cost of revenues $ 1,404 $ 922 $ 474 Selling, general and administrative expense 2,450 1,577 1,121 Total $ 3,854 $ 2,499 $ 1,595 |
Equity Option [Member] | |
Fair value valuation assumptions | The fair value of stock options on the date of grant and the weighted-average assumptions used to estimate the fair value of the stock options using the Black-Scholes option valuation model were as follows: Fiscal Year Ended April 30, 2021 2020 2019 Risk-free interest rate 0.32% 1.86% 2.81% Expected life (in years) 4.69 5.06 5.57 Expected volatility 81.42% 77.45% 76.56% Expected dividend yield – – – |
Employee Stock Purchase Plan [Member] | |
Fair value valuation assumptions | The weighted average grant date fair value of purchase rights under the ESPP during fiscal years ended April 30, 2021, 2020 and 2019 was $3.17, $1.81 and $1.49, respectively, based on the following weighted-average Black-Scholes option valuation model inputs: Fiscal Year Ended April 30, 2021 2020 2019 Risk-free interest rate 0.14% 2.08% 2.26% Expected life (in years) 0.50 0.50 0.50 Expected volatility 75.50% 56.71% 71.10% Expected dividend yield – – – |
7. Income Taxes (Tables)
7. Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | The provision for income taxes on our income (loss) from continuing operations for the fiscal years ended April 30, 2021, 2020 and 2019 is comprised of the following (in thousands): 2021 2020 2019 Federal income taxes at statutory rate $ 2,355 $ (2,197 ) $ (1,120 ) State income taxes, net of valuation allowance – – (48 ) Expiration and adjustments of deferred tax assets 451 2,588 2,507 Change in federal valuation allowance 2,450 (1,664 ) (2,480 ) Stock-based compensation (240 ) 1,138 1,309 Research and development credits (4,958 ) – – Other, net (58 ) 135 (452 ) Income tax expense (benefit) $ – $ – $ (284 ) |
Deferred income taxes | Significant components of our deferred tax assets and deferred tax liabilities at April 30, 2021 and 2020 are as follows (in thousands): 2021 2020 Net operating losses $ 109,663 $ 114,105 Research and development credits 7,566 – Stock-based compensation 2,776 2,573 Deferred revenue 1,086 810 Lease liabilities 6,260 6,324 Debt issuance costs 470 – Accrued liabilities and other 942 1,197 Accrued compensation 2,263 – Total deferred tax assets 131,026 125,009 Less valuation allowance (111,388 ) (118,137 ) Total deferred tax assets, net of valuation allowance 19,638 6,872 Deferred tax liabilities: Fixed assets (1,404 ) (1,216 ) ROU assets (5,508 ) (5,656 ) Beneficial conversion feature (12,726 ) – Total deferred tax liabilities (19,638 ) (6,872 ) Net deferred tax assets $ – $ – |
Schedule of unrecognized tax positions | Unrecognized tax positions at April 30, 2021 and 2020 are as follows (in thousands): 2021 2020 Unrecognized tax positions, beginning of year $ – $ – Gross increase – prior period tax positions 1,600 – Unrecognized tax positions, end of year $ 1,600 $ – |
8. Net Loss per Common Share (T
8. Net Loss per Common Share (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands, expect per share amounts): Fiscal Year Ended April 30, 2021 2020 2019 Numerator Net income (loss) $ 11,212 $ (10,466 ) $ (4,215 ) Series E preferred stock accumulated dividends (4,455 ) (4,686 ) (4,686 ) Impact of Series E preferred stock redemption (3,439 ) – – Net income (loss) attributable to common stockholders $ 3,318 $ (15,152 ) $ (8,901 ) Denominator Weighted average common shares outstanding, basic 58,222 56,326 55,981 Effect of dilutive securities: Stock options 909 – – RSUs 272 – – ESPP 23 – – Weighted average common shares outstanding, dilutive 59,426 56,326 55,981 Net income (loss) per share, basic: $ 0.06 $ (0.27 ) $ (0.16 ) Net income (loss) per share, dilutive $ 0.06 $ (0.27 ) $ (0.16 ) |
Antidilutive shares | The following table presents the potential dilutive securities excluded from the calculation of diluted net income (loss) per share for the periods presented as the effect of their inclusion would have been anti-dilutive (in thousands): Fiscal Year Ended April 30, 2021 2020 2019 Stock options 829 2,795 2,851 RSUs – 83 68 ESPP – 7 11 Warrants – – 13 Series E Preferred Stock 1,864 1,979 1,979 Convertible senior notes 928 – – Total 3,621 4,864 4,922 |
11. Sale of Research and Deve_2
11. Sale of Research and Development Assets (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued operations summary | The following table summarizes the results of discontinued operations for the fiscal year ended April 30, 2019 (in thousands): Other income $ 125 Gain on sale of research and development assets before income taxes 1,000 Income tax expense 284 Income from discontinued operations, net of tax $ 841 |
12. Selected Quarterly Financ_2
12. Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial information for each of the two most recent fiscal | The following is a summary of our unaudited quarterly results for each of the two most recent fiscal years (in thousands, except per share amounts): Fiscal Year Ended April 30, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 25,392 $ 21,064 $ 21,806 $ 27,606 Gross profit $ 8,544 $ 6,418 $ 6,202 $ 8,143 Total operating expenses $ 3,825 $ 4,166 $ 4,018 $ 5,055 Interest and other income (expense), net (1) $ 11 $ 32 $ 23 $ (1,097 ) Net income $ 4,730 $ 2,284 $ 2,207 $ 1,991 Series E preferred stock accumulated dividends $ (1,442 ) $ (1,442 ) $ (1,442 ) $ (1,211 ) Impact of Series E preferred stock redemption (2) $ – $ – $ – $ (3,439 ) Net income (loss) attributable to common stockholders $ 3,288 $ 842 $ 765 $ (2,659 ) Basic and diluted net income (loss) per common share attributable to common stockholders (3) $ 0.06 $ 0.01 $ 0.01 $ (0.04 ) Fiscal Year Ended April 30, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 15,254 $ 18,313 $ 13,585 $ 12,550 Gross profit (loss) $ 1,086 $ 3,360 $ 785 $ (1,299 ) Total operating expenses (4) $ 4,459 $ 3,889 $ 2,996 $ 3,528 Net loss $ (3,164 ) $ (430 ) $ (2,104 ) $ (4,768 ) Series E preferred stock accumulated dividends $ (1,442 ) $ (1,442 ) $ (1,442 ) $ (1,442 ) Net loss attributable to common stockholders $ (4,606 ) $ (1,872 ) $ (3,546 ) $ (6,210 ) Basic and diluted net loss per common share attributable to common stockholders (3) $ (0.08 ) $ (0.03 ) $ (0.06 ) $ (0.11 ) _______________ (1) Interest and other income (expense), net, for the fourth quarter ended April 30, 2021 includes aggregate interest expense of $1.2 million related to our Convertible Notes issued in March 2021 (Note 3). (2) On April 12, 2021 we redeemed our outstanding shares of Series E Preferred Stock at a per share price equal to the $25.00 liquidation amount plus accrued and unpaid dividends up to, but excluding, the redemption date (Note 5). In connection with the completed redemption, we incurred a charge of $3.4 million related to the excess of the redemption value paid upon redemption over the carrying value of our Series E Preferred Stock. (3) Basic and diluted net income (loss) per common share attributable to common stockholders was the same for all periods presented. (4) Total operating expenses for the second quarter of fiscal year ended April 30, 2020 includes a loss on lease termination of $0.4 million (Note 4). |
1. Description of Company and_2
1. Description of Company and Basis of Presentation (Details Narrative) | 12 Months Ended |
Apr. 30, 2021Number | |
Organization And Business Description | |
Segments | 1 |
2. Summary of Significant Acc_4
2. Summary of Significant Accounting Policies (Details - Restricted Cash) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 169,915 | $ 36,262 | $ 32,351 | |
Restricted cash | 350 | 350 | 1,150 | |
Total cash, cash equivalents and restricted cash | $ 170,265 | $ 36,612 | $ 33,501 | $ 43,415 |
2. Summary of Significant Acc_5
2. Summary of Significant Accounting Policies (Details - Revenue) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues | $ 95,868 | $ 59,702 | $ 53,603 |
Manufacturing Revenue [Member] | |||
Revenues | 83,678 | 52,046 | 43,432 |
Process Development Revenue [Member] | |||
Revenues | $ 12,190 | $ 7,656 | $ 10,171 |
2. Summary of Significant Acc_6
2. Summary of Significant Accounting Policies (Details - Percentage breakdown) | 12 Months Ended | ||||||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |||||
Halozyme Therapeutics, Inc [Member] | |||||||
Customer revenue as a percentage of revenue | 51.00% | 28.00% | 30.00% | ||||
Gilead Sciences, Inc. [Member] | |||||||
Customer revenue as a percentage of revenue | 16.00% | 24.00% | |||||
Acumen Pharmaceuticals, Inc. [Member] | |||||||
Customer revenue as a percentage of revenue | [1] | 11.00% | [1] | ||||
IGM Biosciences, Inc. [Member] | |||||||
Customer revenue as a percentage of revenue | [1] | 11.00% | [1] | ||||
Coherus BioSciences, Inc. | |||||||
Customer revenue as a percentage of revenue | [1] | ||||||
ADC Therapeutics America [Member] | |||||||
Customer revenue as a percentage of revenue | [1] | [1] | 21.00% | ||||
Coherus Biosciences, Inc. [Member] | |||||||
Customer revenue as a percentage of revenue | 10.00% | 13.00% | |||||
[1] | Represents a percentage less than 10% of our total revenues. |
2. Summary of Significant Acc_7
2. Summary of Significant Accounting Policies (Details - Useful life) | 12 Months Ended |
Apr. 30, 2021 | |
Leasehold Improvements [Member] | |
Useful lives of property and equipment | Shorter of estimated useful life or lease term |
Laboratory and Manufacturing Equipment [Member] | |
Useful lives of property and equipment | 5-10 years |
Computer Equipment and software [Member] | |
Useful lives of property and equipment | 3-5 years |
Furniture, fixtures and office equipment [Member] | |
Useful lives of property and equipment | 5-10 years |
2. Summary of Significant Acc_8
2. Summary of Significant Accounting Policies (Details - Property and Equipment) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Property and equipment, gross | $ 58,549 | $ 44,746 |
Less: Accumulated depreciation and amortization | (21,094) | (17,641) |
Total property and equipment, net | 37,455 | 27,105 |
Leasehold Improvements [Member] | ||
Property and equipment, gross | 23,000 | 21,130 |
Laboratory and manufacturing equipment [Member] | ||
Property and equipment, gross | 20,793 | 15,033 |
Computer Equipment and software [Member] | ||
Property and equipment, gross | 5,541 | 5,334 |
Furniture, fixtures and office equipment [Member] | ||
Property and equipment, gross | 843 | 685 |
Construction in Progress [Member] | ||
Property and equipment, gross | $ 8,372 | $ 2,564 |
2. Summary of Significant Acc_9
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | May 02, 2018 | |
Restricted cash | $ 350 | $ 350 | $ 1,150 | |
Adjustment to accumulated deficit | (559,859) | (571,071) | ||
Revenue recognized for which the contract liability was recorded in the prior year | 27,300 | 13,600 | ||
Increase decrease in revenues | 1,100 | (1,500) | ||
Allowance for doubtful accounts | 0 | 0 | ||
Interest expense on construction in progress | 0 | 0 | ||
Depreciation and amortization | 3,453 | 3,091 | $ 2,746 | |
Impairment of long-lived assets | 0 | 0 | ||
Capitalized software implementation costs | 900 | 0 | ||
Cash equivalents | 158,800 | 27,600 | ||
Senior convertible notes balance | $ 143,500 | $ 0 | ||
Adoption of ASC 606 [Member] | ||||
Adjustment to accumulated deficit | $ 2,700 | |||
Sales Revenue Net [Member] | UNITED STATES | ||||
Concentration risk percentage | 100.00% | 99.00% | 95.00% | |
Accounts Receivable [Member] | Six Customers [Member] | ||||
Concentration risk percentage | 98.00% | 98.00% | ||
Contract Assets [Member] | Six Customers [Member] | ||||
Concentration risk percentage | 97.00% | |||
Contract Assets [Member] | Eight Customers [Member] | ||||
Concentration risk percentage | 96.00% |
3. Note Payable (Details - Debt
3. Note Payable (Details - Debt component) - Debt Component [member] $ in Thousands | Apr. 30, 2021USD ($) |
Principal | $ 143,750 |
Unamortized debt discount | (43,189) |
Unamortized issuance costs | (3,612) |
Net carrying amount | $ 96,949 |
3. Note Payable (Details - Net
3. Note Payable (Details - Net carrying amount equity component) - Equity component [member] $ in Thousands | Apr. 30, 2021USD ($) |
Equity component (debt discount) | $ 44,051 |
Issuance costs | (1,620) |
Net carrying amount | $ 42,431 |
3. Note Payable (Details - Inte
3. Note Payable (Details - Interest expense) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Amortization of debt discount | $ 916 | $ 0 | $ 0 |
Convertible Notes [Member] | |||
Contractual interest expense | 245 | ||
Amortization of debt discount | 862 | ||
Amortization of issuance costs | 54 | ||
Total interest expense | $ 1,161 |
3. Note Payable (Details Narrat
3. Note Payable (Details Narrative) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | |||
Mar. 12, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 17, 2020 | Apr. 30, 2019 | |
Proceeds from convertible notes | $ 138,464 | $ 0 | $ 0 | ||
Payment of capped calls | $ 12,837 | $ 0 | 0 | ||
Reduction in additional paid-in-capital | $ 2,739 | ||||
Promissory note [Member] | |||||
Proceeds from loan | $ 4,400 | ||||
Maturity date | Apr. 21, 2022 | ||||
Convertible Senior Notes [Member] | |||||
Debt face amount | $ 143,800 | ||||
Proceeds from convertible notes | $ 138,500 | ||||
Effective discount rate | 8.78% | ||||
Debt issuance costs | $ 5,300 | ||||
Maturity date | Mar. 15, 2026 | ||||
Interest rate | 1.25% | ||||
Payment of capped calls | $ 12,800 | ||||
Reduction in additional paid-in-capital | (12,800) | ||||
Convertible Senior Notes [Member] | Initial Purchasers Full Exercise [Member] | |||||
Debt face amount | 18,800 | ||||
Convertible Senior Notes [Member] | Debt Component [Member] | |||||
Debt face amount | $ 99,700 | ||||
Effective discount rate | 8.78% | ||||
Debt issuance costs | $ 3,700 | ||||
Convertible Senior Notes [Member] | Equity Component [Member] | |||||
Debt face amount | 44,100 | ||||
Debt issuance costs | $ 1,600 |
4. Leases (Details - Components
4. Leases (Details - Components of lease) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Lessee Disclosure [Abstract] | ||
Operating lease cost | $ 3,151 | $ 3,339 |
Variable lease cost | 676 | 603 |
Short-term lease cost | 388 | 171 |
Total lease cost | $ 4,215 | $ 4,113 |
4. Leases (Details - Operating
4. Leases (Details - Operating leases assets and liabilities) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Lessee Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 18,691 | $ 20,100 |
Operating lease liabilities | 1,355 | 1,228 |
Operating lease liabilities, less current portion | 19,889 | 21,244 |
Total operating lease liabilities | $ 21,244 | $ 22,472 |
Weighted average lease term | 9 years 7 months 6 days | 10 years 6 months |
Weighted average discount rate | 8.00% | 8.00% |
4. Leases (Details - Maturities
4. Leases (Details - Maturities of Operating Lease Liabilities) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Lessee Disclosure [Abstract] | ||
2022 | $ 2,995 | |
2023 | 3,010 | |
2024 | 3,086 | |
2025 | 3,171 | |
2026 | 3,250 | |
Thereafter | 15,517 | |
Total lease payments | 31,029 | |
Less: imputed interest | (9,785) | |
Total operating lease liabilities | $ 21,244 | $ 22,472 |
4. Leases (Details Narrative)
4. Leases (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Lessee Disclosure [Abstract] | |||
Operating lease expense | $ 2,900 | ||
Operating lease payments | $ 3,000 | $ 3,100 | |
Loss on lease termination | $ 0 | $ (355) | $ 0 |
5. Stockholders' Equity (Detail
5. Stockholders' Equity (Details - Common stock outstanding) shares in Thousands | Apr. 30, 2021shares |
Common stock reserved for future issuance | 14,142 |
Convertible Senior Notes [Member] | |
Common stock reserved for future issuance | 6,776 |
Stock Incentive Plans [Member] | |
Common stock reserved for future issuance | 6,290 |
Employee Stock Purchase Plan [Member] | |
Common stock reserved for future issuance | 1,076 |
5. Stockholders' Equity (Deta_2
5. Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | |
Dividends paid | $ 4,455 | $ 4,325 | $ 4,325 | |
Proceeds from sale of common stock | $ 32,141 | 0 | 0 | |
Series E Preferred Stock [Member] | ||||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | ||
Redemption value | $ 3,400 | |||
Redemption price | $ 25 | $ 25 | ||
Liquidation preference price per share | 2.625 | 2.625 | ||
Accrued and unpaid dividends per share | $ 0.08021 | $ 0.08021 | ||
Dividends paid | $ 4,500 | $ 4,300 | $ 4,300 | |
Stock converted, shares converted | 28,168 | |||
Common Stock | ||||
Stock converted, shares issued | 33,514 | |||
Common Stock | Public Offering [Member] | ||||
Stock issued new, shares | 3,833,335 | |||
Proceeds from sale of common stock | $ 34,500 | |||
Payment of stock issuance costs | $ 2,400 | |||
Warrants [Member] | ||||
Warrants issued | 0 | |||
Warrants outstanding | 0 | 0 | 0 |
6. Equity Compensation Plans (D
6. Equity Compensation Plans (Details - Assumptions) - Equity Option [Member] | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Risk-free interest rate | 0.32% | 1.86% | 2.81% |
Expected life (in years) | 4 years 8 months 9 days | 5 years 22 days | 5 years 6 months 25 days |
Expected volatility | 81.42% | 77.45% | 76.56% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
6. Equity Compensation Plans _2
6. Equity Compensation Plans (Details - Option activity) - Equity Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Apr. 30, 2021USD ($)$ / sharesshares | ||
Number of Options | ||
Number of Options Outstanding, Beginning | shares | 2,896 | |
Number of Options Granted | shares | 914 | |
Number of Options Exercised | shares | (559) | |
Number of Options Cancelled or Expired | shares | (121) | |
Number of Options Outstanding, Ending | shares | 3,130 | |
Exercisable and expected to vest | shares | 3,130 | |
Exercisable at period end | shares | 1,458 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price Outstanding, Beginning | $ / shares | $ 6.2 | |
Weighted Average Exercise Price Granted | $ / shares | 7.68 | |
Weighted Average Exercise Price Exercised | $ / shares | 6.39 | |
Weighted Average Exercise Price Canceled | $ / shares | 7.23 | |
Weighted Average Exercise Price Outstanding, Ending | $ / shares | 6.56 | |
Weighted Average Exercise Price, Exercisable and expected to vest | $ / shares | 6.56 | |
Weighted Average Exercise Price Exercisable, at period end | $ / shares | $ 6.46 | |
Weighted Average Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Life (in years) Outstanding | 5 years 4 months 28 days | |
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest | 5 years 4 months 28 days | |
Weighted Average Remaining Contractual Life (in years) Exercisable, at period end | 4 years 9 months | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value Outstanding | $ | $ 46,452 | [1] |
Aggregate Intrinsic Value vested and expected to vest | $ | 46,452 | [1] |
Aggregate Intrinsic Value Exercisable at period end | $ | $ 21,787 | [1] |
[1] | Aggregate intrinsic value represents the difference between the exercise price of an option and the closing market price of our common stock on April 30, 2021, which was $21.41 per share. |
6. Equity Compensation Plans _3
6. Equity Compensation Plans (Details - RSU Activity) - RSUs [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
RSU Shares | |||
RSUs outstanding, beginning balance | 307 | ||
RSUs granted | 356 | ||
RSUs vested | (89) | ||
RSUs forfeited | (14) | ||
RSUs outstanding, ending balance | 560 | 307 | |
Weighted Average Grant Date Fair Value | |||
RSUs outstanding, beginning balance | $ 5.23 | ||
RSUs granted | 7.29 | $ 5.91 | $ 4.28 |
RSUs vested | 5.27 | ||
RSUs forfeited | 5.64 | ||
RSUs outstanding, ending balance | $ 6.52 | $ 5.23 |
6. Equity Compensation Plans _4
6. Equity Compensation Plans (Details - Assumptions ESPP) - Employee Stock Purchase Plan [Member] | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Risk-free interest rate | 0.14% | 2.08% | 2.26% |
Expected life (in years) | 6 months | 6 months | 6 months |
Expected volatility | 75.50% | 56.71% | 71.10% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
6. Equity Compensation Plans _5
6. Equity Compensation Plans (Details - Share based compensation) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share based compensation | $ 3,854 | $ 2,499 | $ 1,595 |
Cost of revenues [Member] | |||
Share based compensation | 1,404 | 922 | 474 |
Selling, general and administrative | |||
Share based compensation | $ 2,450 | $ 1,577 | $ 1,121 |
6. Equity Compensation Plans _6
6. Equity Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Stock reserved for issuance | 14,142,000 | ||
Proceeds from exercise of stock options | $ 3,600 | $ 900 | $ 1,300 |
Employee Stock Purchase Plan [Member] | |||
Stock issued during period, ESPP | 72,409 | 47,526 | 75,148 |
ESPP weighted average purchase price | $ 5.84 | $ 3.94 | $ 3.44 |
Weighted average grant date fair value, other than options | 3.17 | 1.81 | 1.49 |
Stock Option [Member] | |||
Weighted-average grant date fair value of options granted | $ 4.74 | $ 3.74 | $ 3.30 |
Aggregate intrinsic value of stock options exercised | $ 3,900 | $ 700 | $ 500 |
Unrecognized compensation costs related to non-vested stock options | $ 5,500 | ||
Unrecognized compensation cost weighted average vesting period | 2 years 6 months 18 days | ||
RSUs [Member] | |||
Unrecognized compensation cost weighted average vesting period | 2 years 7 months 21 days | ||
Fair value of RSUs vested | $ 700 | $ 300 | |
Unrecognized compensation cost related to non-vested RSUs | $ 2,800 | ||
Weighted average grant date fair value, other than options | $ 7.29 | $ 5.91 | $ 4.28 |
Stock Incentive Plans [Member] | |||
Stock reserved for issuance | 6,290,000 | ||
Stock Incentive Plans [Member] | Options and RSU's [Member] | |||
Stock reserved for issuance | 3,689,364 | ||
Stock Incentive Plans [Member] | Future Grants [Member] | |||
Stock reserved for issuance | 2,600,193 | ||
Employee Stock Purchase Plan [Member] | |||
Stock reserved for issuance | 1,076,000 |
7. Income Taxes (Details - Prov
7. Income Taxes (Details - Provision for Income taxes) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at statutory rate | $ 2,355 | $ (2,197) | $ (1,120) |
State income taxes, net of valuation allowance | 0 | 0 | (48) |
Expiration and adjustments of deferred tax assets | 451 | 2,588 | 2,507 |
Change in federal valuation allowance | 2,450 | (1,664) | (2,480) |
Share-based compensation | (240) | 1,138 | 1,309 |
Research and development | (4,958) | 0 | 0 |
Other, net | (58) | 135 | (452) |
Income tax expense (benefit) | $ 0 | $ 0 | $ (284) |
7. Income Taxers (Details - Def
7. Income Taxers (Details - Deferred income taxes) - USD ($) $ in Thousands | Apr. 30, 2021 | Apr. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 109,663 | $ 114,105 |
Research and development credits | 7,566 | 0 |
Share-based compensation | 2,776 | 2,573 |
Deferred revenue | 1,086 | 810 |
Lease liabilities | 6,260 | 6,324 |
Debt issuance costs | 470 | 0 |
Accrued liabilities and other | 942 | 1,197 |
Accrued compensation | 2,263 | 0 |
Total deferred tax assets | 131,026 | 125,009 |
Less valuation allowance | (111,388) | (118,137) |
Net deferred tax assets | 19,638 | 6,872 |
Deferred tax liabilities: | ||
Fixed assets | (1,404) | (1,216) |
ROU assets | (5,508) | (5,656) |
Beneficial conversion feature | (12,726) | 0 |
Total deferred tax liabilities | (19,638) | (6,872) |
Net deferred tax assets | $ 0 | $ 0 |
7. Income Taxes (Details - Unre
7. Income Taxes (Details - Unrecognized tax positions) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax positions, beginning of year | $ 0 | $ 0 |
Gross increase - prior period tax positions | 1,600 | 0 |
Unrecognized tax positions, end of year | $ 1,600 | $ 0 |
7. Income Taxes (Details Narrat
7. Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Deferred tax asset valuation allowance | $ 111,388 | $ 118,137 | |
Valuation allowance decreased | 6,700 | 1,400 | |
Unrecognized tax benefits from uncertain tax positions | 0 | 0 | |
Income tax penalties or interest | 0 | 0 | $ 0 |
Income tax penalties or interest accrued | 0 | $ 0 | |
Federal [Member] | |||
Net operating loss carry forward | $ 406,700 | ||
Operating loss carryforward expiration dates | 2021 through 2038 | ||
Research and development credit carry forwards | $ 5,800 | ||
California [Member] | |||
Net operating loss carry forward | $ 272,100 | ||
Operating loss carryforward expiration dates | 2020 | ||
Research and development credit carry forwards | $ 3,300 | ||
Other state [Member] | |||
Net operating loss carry forward | $ 900 |
8. Net Income (Loss) Per Comm_2
8. Net Income (Loss) Per Common Share (Details - Reconcilation of per share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 1,991 | $ 2,207 | $ 2,284 | $ 4,730 | $ (4,768) | $ (2,104) | $ (430) | $ (3,164) | $ 11,212 | $ (10,466) | $ (4,215) |
Series E preferred stock accumulated dividends | (1,211) | (1,442) | (1,442) | (1,442) | $ (1,442) | $ (1,442) | $ (1,442) | $ (1,442) | (4,455) | (4,686) | (4,686) |
Impact of Series E preferred stock redemption | $ (3,439) | $ 0 | $ 0 | $ 0 | (3,439) | 0 | 0 | ||||
Net income (loss) attributable to common stockholders | $ 3,318 | $ (15,152) | $ (8,901) | ||||||||
Weighted average common shares outstanding, basic | 58,222 | 56,326 | 55,981 | ||||||||
Stock options | 909 | 0 | 0 | ||||||||
RSUs | 272 | 0 | 0 | ||||||||
ESPP | 23 | 0 | 0 | ||||||||
Weighted average common shares outstanding, dilutive | 59,426 | 56,326 | 55,981 | ||||||||
Net income (loss) per share, basic | $ 0.06 | $ (0.27) | $ (0.16) | ||||||||
Net income (loss) per share, diluted | $ 0.06 | $ (0.27) | $ (0.16) |
8. Net Income (Loss) Per Comm_3
8. Net Income (Loss) Per Common Share (Details - Antidilutive shares) - shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Dilutive effect of shares on diluted shares outstanding | 3,621 | 4,864 | 4,922 |
Stock Options | |||
Dilutive effect of shares on diluted shares outstanding | 829 | 2,795 | 2,851 |
RSUs [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 0 | 83 | 68 |
Employee Stock Purchase Plan [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 0 | 7 | 11 |
Warrants | |||
Dilutive effect of shares on diluted shares outstanding | 0 | 0 | 13 |
Series E Preferred Stock [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 1,864 | 1,979 | 1,979 |
Convertible Senior Notes [Member] | |||
Dilutive effect of shares on diluted shares outstanding | 928 | 0 | 0 |
9. Employee Benefit Plan (Detai
9. Employee Benefit Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Retirement Benefits [Abstract] | |||
Company matching contributions to 401(k) plan | $ 500 | $ 500 | $ 400 |
11. Sale of Research and Deve_3
11. Sale of Research and Development Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 841 |
Discontinued Operations [Member] [Default Label] | |||
Other income | 125 | ||
Gain on sale of research and development assets before income taxes | 1,000 | ||
Income tax expense | 284 | ||
Income (loss) from discontinued operations, net of tax | $ 841 |
11. Sale of Research and Deve_4
11. Sale of Research and Development Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Gain on sale of assets | $ 0 | $ (13) | $ (127) |
Discontinued operations | |||
Gain on sale of assets | $ 1,000 |
12. Selected Quarterly Financ_3
12. Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Revenues | $ 27,606 | $ 21,806 | $ 21,064 | $ 25,392 | $ 12,550 | $ 13,585 | $ 18,313 | $ 15,254 | ||||||||||||
Gross profit (loss) | 8,143 | 6,202 | 6,418 | 8,544 | (1,299) | 785 | 3,360 | 1,086 | $ 29,307 | $ 3,932 | $ 7,224 | |||||||||
Total operating expenses | 5,055 | 4,018 | 4,166 | 3,825 | 3,528 | [1] | 2,996 | [1] | 3,889 | [1] | 4,459 | [1] | ||||||||
Interest and other income (expense), net | [2] | (1,097) | 23 | 32 | 11 | |||||||||||||||
Net (loss) income | 1,991 | 2,207 | 2,284 | 4,730 | (4,768) | (2,104) | (430) | (3,164) | 11,212 | (10,466) | (4,215) | |||||||||
Series E preferred stock accumulated dividends | (1,211) | (1,442) | (1,442) | (1,442) | (1,442) | (1,442) | (1,442) | (1,442) | (4,455) | (4,686) | (4,686) | |||||||||
Impact of Series E preferred stock redemption | (3,439) | 0 | 0 | 0 | $ (3,439) | $ 0 | $ 0 | |||||||||||||
Net income (loss) attributable to common stockholders | $ (2,659) | $ 765 | $ 842 | $ 3,288 | $ (6,210) | $ (3,546) | $ (1,872) | $ (4,606) | ||||||||||||
Basic and diluted net income (loss) per common share attributable to common stockholders | $ (0.04) | [3] | $ 0.01 | [3] | $ 0.01 | [3] | $ 0.06 | [3] | $ (0.11) | [3] | $ (0.06) | [3] | $ (0.03) | [3] | $ (0.08) | [3] | $ 0.06 | $ (0.27) | $ (0.16) | |
[1] | Total operating expenses for the second quarter of fiscal year ended April 30, 2020 includes a loss on lease termination of $0.4 million (Note 4). | |||||||||||||||||||
[2] | Interest and other income (expense), net, for the fourth quarter ended April 30, 2021 includes aggregate interest expense of $1.1 million related to our Convertible Notes issued in March 2021 (Note 3). | |||||||||||||||||||
[3] | Basic and diluted net income (loss) per common share attributable to common stockholders was the same for all periods presented. |