Cover
Cover - shares | 3 Months Ended | |
Jul. 31, 2024 | Sep. 10, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-11504 | |
Entity Registrant Name | CHAMPIONS ONCOLOGY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-1401755 | |
Entity Address, Address Line One | One University Plaza, Suite 307 | |
Entity Address, Postal Zip Code | 07601 | |
Entity Address, City or Town | Hackensack | |
Entity Address, State or Province | NJ | |
City Area Code | 201 | |
Local Phone Number | 808-8400 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | CSBR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 13,593,767 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000771856 | |
Current Fiscal Year End Date | --04-30 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 2,892 | $ 2,618 |
Accounts receivable, net | 9,032 | 9,526 |
Prepaid expenses and other current assets | 1,254 | 1,495 |
Total current assets | 13,178 | 13,639 |
Operating lease right-of-use assets, net | 5,963 | 6,252 |
Property and equipment, net | 5,272 | 5,721 |
Other long-term assets | 185 | 185 |
Goodwill | 335 | 335 |
Total assets | 24,933 | 26,132 |
Current liabilities: | ||
Accounts payable | 5,235 | 5,800 |
Accrued liabilities | 2,097 | 2,160 |
Current portion of operating lease liabilities | 1,369 | 1,337 |
Other current liability | 151 | 150 |
Deferred revenue | 10,312 | 12,094 |
Total current liabilities | 19,164 | 21,541 |
Non-current operating lease liabilities | 5,738 | 6,093 |
Other non-current liabilities | 363 | 401 |
Total liabilities | 25,265 | 28,035 |
Stockholders’ equity (deficiency): | ||
Common stock, $.001 par value; 200,000,000 shares authorized; 13,714,099 and 13,714,099 shares issued; and 13,593,766 and 13,593,766 outstanding as of July 31, 2024 and April 30, 2024, respectively | 14 | 14 |
Treasury stock, at cost | (708) | (708) |
Additional paid-in capital | 83,642 | 83,384 |
Accumulated deficit | (83,280) | (84,593) |
Total stockholders’ equity (deficiency) | (332) | (1,903) |
Total liabilities and stockholders’ equity (deficiency) | $ 24,933 | $ 26,132 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Jul. 31, 2024 | Apr. 30, 2024 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 13,714,099 | 13,714,099 |
Common stock, shares outstanding (in shares) | 13,593,766 | 13,593,766 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue, Product and Service [Extensible List] | Service [Member] | Service [Member] |
Oncology services revenue | $ 14,061 | $ 12,561 |
Costs and operating expenses: | ||
Cost, Product and Service [Extensible List] | Service [Member] | Service [Member] |
Cost of oncology services | $ 7,072 | $ 7,684 |
Research and development | 1,454 | 2,793 |
Sales and marketing | 1,679 | 1,696 |
General and administrative | 2,527 | 2,940 |
Total costs and operating expenses | 12,732 | 15,113 |
Income (loss) from operations | 1,329 | (2,552) |
Other income | 5 | 14 |
Income (loss) before provision for income taxes | 1,334 | (2,538) |
Provision for income taxes | 21 | 28 |
Net income (loss) | $ 1,313 | $ (2,566) |
Net income (loss) per common share outstanding | ||
Basic (in dollars per share) | $ 0.10 | $ (0.19) |
Diluted (in dollars per share) | $ 0.09 | $ (0.19) |
Weighted average common shares outstanding | ||
Basic (in shares) | 13,593,766 | 13,506,782 |
Diluted (in shares) | 14,042,379 | 13,506,782 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Apr. 30, 2023 | 13,544,228 | ||||
Beginning balance at Apr. 30, 2023 | $ 4,636 | $ 14 | $ (74) | $ 82,013 | $ (77,317) |
Beginning balance (in shares) at Apr. 30, 2023 | 14,422 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 423 | 423 | |||
Issuance of common stock on exercise of stock options (in shares) | 40,897 | ||||
Issuance of common stock on exercise of stock options | 12 | 12 | |||
Repurchase of common stock (in shares) | 101,015 | 101,015 | |||
Repurchase of common stock | (602) | $ (602) | |||
Net income (loss) | (2,566) | (2,566) | |||
Ending balance (in shares) at Jul. 31, 2023 | 13,484,110 | ||||
Ending balance at Jul. 31, 2023 | 1,903 | $ 14 | $ (676) | 82,448 | (79,883) |
Ending balance (in shares) at Jul. 31, 2023 | 115,437 | ||||
Beginning balance (in shares) at Apr. 30, 2023 | 13,544,228 | ||||
Beginning balance at Apr. 30, 2023 | 4,636 | $ 14 | $ (74) | 82,013 | (77,317) |
Beginning balance (in shares) at Apr. 30, 2023 | 14,422 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ (7,300) | ||||
Ending balance (in shares) at Apr. 30, 2024 | 13,593,766 | 13,714,099 | |||
Ending balance at Apr. 30, 2024 | $ (1,903) | $ 14 | $ (708) | 83,384 | (84,593) |
Ending balance (in shares) at Apr. 30, 2024 | 120,333 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 258 | 258 | |||
Net income (loss) | $ 1,313 | 1,313 | |||
Ending balance (in shares) at Jul. 31, 2024 | 13,593,766 | 13,714,099 | |||
Ending balance at Jul. 31, 2024 | $ (332) | $ 14 | $ (708) | $ 83,642 | $ (83,280) |
Ending balance (in shares) at Jul. 31, 2024 | 120,333 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | |
Operating activities: | |||
Net income (loss) | $ 1,313 | $ (2,566) | $ (7,300) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 258 | 423 | |
Depreciation and amortization expense | 449 | 445 | |
Operating lease right-of use assets | 289 | 270 | |
Allowance for doubtful accounts and estimated credit losses | (71) | 162 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 565 | (1,099) | |
Prepaid expenses and other current assets | 241 | 223 | |
Other long term assets | 0 | (169) | |
Accounts payable | (565) | 424 | |
Accrued liabilities | (63) | (178) | |
Operating lease liabilities | (323) | (292) | |
Deferred revenue | (1,782) | (1,634) | |
Net cash provided by (used in) operating activities | 311 | (3,991) | (6,100) |
Investing activities: | |||
Purchase of property and equipment | 0 | (668) | |
Net cash used in investing activities | 0 | (668) | |
Financing activities: | |||
Proceeds from exercise of options | 0 | 12 | |
Finance lease payments | (37) | 0 | |
Repurchases of common stock | 0 | (602) | |
Net cash used in financing activities | (37) | (590) | |
Increase (decrease) in cash | 274 | (5,249) | |
Cash at beginning of period | 2,618 | 10,118 | 10,118 |
Cash at end of period | $ 2,892 | $ 4,869 | $ 2,618 |
Organization, Use of Estimates
Organization, Use of Estimates and Basis of Presentation | 3 Months Ended |
Jul. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Use of Estimates and Basis of Presentation | Organization, Use of Estimates and Basis of Presentation Champions Oncology, Inc. (the "Company", "us", "we", and "our") is a technology-enabled research organization engaged in creating technology solutions to be utilized in drug discovery and development. The Company's research center operates in both regulatory and non-regulatory environments and consists of a comprehensive set of computational and experimental research platforms. Its pharmacology, biomarker, and data platforms are designed to facilitate drug discovery and development at lower costs and increased speeds. The Company has four operating subsidiaries: Champions Oncology (Israel), Limited, Champions Biotechnology U.K., Limited, Champions Oncology, S.R.L. (Italy), and Corellia A.I.. For the three months ended July 31, 2024 and 2023, there were no revenues earned by these subsidiaries. The Company’s functional currency for its foreign subsidiaries is the U.S. dollar. Transaction gains and losses are recognized in earnings. The Company is subject to foreign exchange rate fluctuations in connection with the Company’s international operations. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company operates in one reportable business segment. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, or the SEC. Intercompany transactions and accounts have been eliminated. Certain information related to the Company’s organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted. The April 30, 2024 condensed consolidated balance sheet in the accompanying interim condensed consolidated financial statements was derived from audited consolidated financial statements. The accounting policies followed in the preparation of these unaudited condensed consolidated financial statements are consistent with those followed in the Company’s annual consolidated financial statements for the fiscal year ended April 30, 2024, as filed in the Company's Annual Report on Form 10-K with the SEC on July 19, 2024 (the "Annual Report"). In the opinion of management, these unaudited condensed consolidated financial statements contain all material adjustments necessary to fairly state our financial position, results of operations and cash flows for the periods presented and the presentations and disclosures herein are adequate when read in conjunction with the Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations for a full fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Jul. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies The significant accounting policies used in the preparation of these condensed consolidated financial statements are disclosed in our 2024 Annual Report and there have been no changes to the Company's significant accounting policies during the three months ended July 31, 2024. Liquidity and Going Concern In accordance with Accounting Standards Codification ("ASC") Subtopic 205-40, Presentation of Financial Statements—Going Concern (“ASC 205-40”), the Company has the responsibility to evaluate whether conditions and/or events raise substantial doubt about its ability to meet its obligations as they become due within one year after the date that the financial statements are issued. As required under ASC 205-40, management’s evaluation should initially not take into consideration the potential mitigating effects of management’s plans that have not been fully implemented as of the date the financial statements are issued. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. In performing this evaluation, we concluded that under the standards of ASC 205-40 the following conditions raised substantial doubt about our ability to continue as a going concern: • a history of net losses, including a net loss of $7.3 million for the year ending April 30 2024; • cash used in operations of $6.1 million for the year ended April 30, 2024 and cash provided for the three months ended July 31, 2024 of $311,000; • working capital deficit of $6.0 million as of July 31, 2024; and • an accumulated deficit of $83.3 million as of July 31, 2024. The Company's liquidity needs have typically arisen from the funding of our research and development programs and the launch of new products, working capital requirements, and other strategic initiatives. Most recently, the Company has met these cash requirements through cash on hand, working capital management, and sales of products and services. In the past, the Company has also received proceeds from certain private placements and public offerings of our securities. While the Company believes it has strategies to increase revenues and reduce costs which can be implemented without disrupting the business or completely restructuring the Company, there can be no assurances. Should the Company be required to raise additional capital or seek to obtain financing, there can be no assurance that management would be successful in raising such capital or obtaining such financing on terms acceptable to us, if at all. The accompanying financial statements do not include any adjustments that might result from these uncertainties. Earnings Per Share Basic net income or loss per share is computed by dividing the net income or loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted-average number of shares of common stock plus dilutive potential common stock considered outstanding during the period. Such dilutive shares consist of incremental shares that would be issued upon exercise of the Company’s common stock options. The following table reflects these calculations. Note, as of July 31, 2023, all of the Company's potential common stock was considered anti-dilutive. Three Months Ended (Dollars in Thousands) 2024 2023 Basic net income (loss) per share computation: Net income (loss) attributable to common stockholders $ 1,313 $ (2,566) Weighted Average common shares – basic 13,593,766 13,506,782 Basic net income (loss) per share $ 0.10 $ (0.19) Diluted net income (loss) per share computation: Net income (loss) attributable to common stockholders $ 1,313 $ (2,566) Weighted Average common shares 13,593,766 13,506,782 Incremental shares from assumed exercise of stock options 448,613 — Adjusted weighted average share – diluted 14,042,379 13,506,782 Diluted net income (loss) per share $ 0.09 $ (0.19) The following table reflects the total potential share-based instruments outstanding at July 31, 2024 and 2023 including those that could have an effect on the future computation of dilution per common share, had their effect not been anti-dilutive due to the Company's net losses in the related periods: July 31, 2024 2023 Total common stock equivalents 1,131,624 1,766,752 Income Taxes Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient earnings history, a valuation allowance is established. The Company's ability to utilize net operating losses (“NOL”) carryforwards to offset future taxable income would be limited if the Company had undergone or were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code (the “IRC”). The Company adjusts the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of July 31, 2024 and April 30, 2024, the Company provided a valuation allowance for all net deferred tax assets as it is more likely than not that the assets will not be recovered based on an insufficient history of earnings. The Company reflects tax benefits only if it is more likely than not that the Company will be able to sustain the tax position, based on its technical merits. If a tax benefit meets this criterion, it is measured and recognized based on the largest amount of benefit that is cumulatively greater than 50% likely to be realized. The Company recorded $181,000 of liabilities related to uncertain tax positions relative to one of its foreign operations as of July 31, 2024 and April 30, 2024. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company did not recognize interest or penalties on its consolidated statements of operations during the three month period ended July 31, 2024 and 2023. The Company does not anticipate unrecognized tax benefits will be recorded during the next 12 months. The provision for income taxes for the three months ended July 31, 2024 and 2023 was $21,000 and $28,000, respectively. The provision is mainly attributable to taxable income earned in Israel and/or Italy relating to transfer pricing, and U.S. state income taxes for which net operating losses are limited. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606 ("ASC 606"), Revenue from Contracts with Customers. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. All revenue is generated from contracts with customers. The Company's arrangements are service type contracts that mainly have a duration of less than a year. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions. The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract. Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement. The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12. Pharmacology Study and Other Services The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service. The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation. Incremental Costs of Obtaining a Contract (Sales Commissions) Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred. Variable Consideration In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. Trade Receivables, Unbilled Services and Deferred Revenue In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Unbilled services are classified as a component of accounts receivable on the balance sheet. Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue is recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the condensed consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year. Accounting Pronouncements Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting” (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material. |
Accounts Receivable, Unbilled S
Accounts Receivable, Unbilled Services and Deferred Revenue | 3 Months Ended |
Jul. 31, 2024 | |
Receivables [Abstract] | |
Accounts Receivable, Unbilled Services and Deferred Revenue | Accounts Receivable, Unbilled Services and Deferred Revenue Accounts receivable and unbilled services were as follows (in thousands) July 31, 2024 April 30, 2024 May 1, 2023 Accounts receivable $ 4,722 $ 4,886 $ 3,843 Unbilled services 5,540 5,941 4,993 Total accounts receivable and unbilled services 10,262 10,827 8,836 Less: Allowances for credit losses and bad debt (1,230) (1,301) (825) Total accounts receivable, net $ 9,032 $ 9,526 $ 8,011 Allowances for credit losses and bad debt were as follows: Beginning balance April 30, 2024 $ 1,301 Plus: Provision for credit losses and bad debt — Less: Reversals for amounts subsequently collected (71) Less: Write offs — Ending balance July 31, 2024 $ 1,230 Deferred revenue was as follows (in thousands): July 31, 2024 April 30, 2024 May 1, 2023 Deferred revenue $ 10,312 $ 12,094 $ 12,776 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Jul. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Oncology Services Revenue The following table represents disaggregated revenue for the three months ended July 31, 2024 and 2023: Three Months Ended 2024 2023 Pharmacology services $ 13,069 $ 11,860 Other TOS revenue 992 684 Personalized oncology services — 17 Total oncology services revenue $ 14,061 $ 12,561 Other Translational Oncology Solutions ("TOS") revenue represents additional services provided to the Company's pharmaceutical and biotechnology customers, specifically flow cytometry services and software-as-a-service ("SaaS") provided via our Lumin Bioinformatics software ("Lumin"). |
Property and Equipment
Property and Equipment | 3 Months Ended |
Jul. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment is recorded at cost and primarily consists of laboratory equipment, computer equipment and software, capitalized software development costs, and furniture and fixtures. Depreciation and amortization is calculated on a straight-line basis over the estimated useful lives of the various assets ranging from three July 31, April 30, Furniture and fixtures $ 246 $ 246 Computer equipment and software 2,152 2,152 Capitalized software development costs 1,888 1,888 Laboratory equipment 11,506 11,506 Assets in progress 3 3 Leasehold improvements 317 317 Total property and equipment 16,112 16,112 Less: Accumulated depreciation and amortization (10,840) (10,391) Property and equipment, net $ 5,272 $ 5,721 Depreciation and amortization expense was $449,000 and $445,000 for the three months ended July 31, 2024 and 2023, respectively. Depreciation and amortization expense, excluding expense recorded under finance leases, was $412,000 and $409,000 for the three months ended July 31, 2024 and 2023, respectively. As of July 31, 2024 and April 30, 2024, property, plant and equipment included gross assets held under finance leases of $1.0 million. Related depreciation expense was approximately $37,000 and $36,000 for the three months ended July 31, 2024 and 2023, respectively. Capitalized Software Development Costs Under a Hosting Arrangement The Company accounts for the cost of computer software obtained or developed for internal use as well as the software development and implementation costs associated with a hosting arrangement ("internal-use software") that is a service contract in accordance and with ASC 350, Intangibles - Goodwill and Other ("ASC-350"). The Company capitalizes certain costs in the development of our internal-use software when the preliminary project stage is completed and it is probable that the project itself will be completed and the software will perform as intended. These capitalized costs include personnel and related expenses for employees and costs of third-party consultants who are directly associated with and who devote time to these internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades, increased functionality, and enhancements to the Company's internal-use software solutions are also capitalized. Costs incurred for training, maintenance, and minor modifications are expensed as incurred. Capitalized software development costs are amortized using the straight-line method over an estimated useful economic life of three years. Finance Lease During fiscal year 2023, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $368,000 at inception through June 2027. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. The present value of the minimum future obligations of $368,000 was calculated based on an interest rate of 3.5%. Depreciation and amortization expense related to this finance lease was $18,000 and $17,400 for the three months ended July 31, 2024 and 2023, respectively. During fiscal year 2022, the Company recognized a finance lease for laboratory equipment. This equipment was obtained as the result of a laboratory supplies purchase commitment with costs of approximately $370,000 at inception through December 2025. Cash payments for this lease are in the form of consideration for purchasing lab supplies under a purchase commitment agreement. At the commencement of the commitment, the present value of the minimum future obligations of $370,000 was calculated based on an interest rate of 3.25%. Depreciation and amortization expense related to this finance lease was $19,000 and $18,400 for the three months ended July 31, 2024 and 2023, respectively. The liabilities related to these finance leases are classified under other current liability and other non-current liabilities on the Company's balance sheet. The weighted average remaining lease term of these leases is 2.36 years. Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands): July 31, 2024 April 30, 2024 Financing lease net asset $ 333 $ 370 Current portion of financing lease liabilities 151 150 Non-current portion of financing lease liabilities 182 220 Future minimum lease payments due each fiscal year as follows (in thousands): 2025 (remaining) $ 120 2026 140 2027 80 2028 6 Thereafter — Total undiscounted liabilities 346 Less: Imputed interest (13) Present value of minimum lease payments $ 333 Refer to Note 7, Leases, for information on operating leases. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Jul. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments Stock-based compensation expense was recognized as follows (table in thousands): Three Months Ended 2024 2023 General and administrative $ 185 $ 184 Sales and marketing 40 66 Research and development 4 11 Cost of oncology services 29 162 Total stock-based compensation expense $ 258 $ 423 The Company has in place a 2021 Equity Incentive Plan and 2010 Equity Incentive Plan (collectively, the "Plans"). In general, these Plans provide for stock-based compensation to the Company’s employees, directors and non-employees. The Plans also provide for limits on the aggregate number of shares that may be granted, the term of grants and the strike price of option awards. 2021 Equity Incentive Plan As part of the 2021 Annual Shareholders Meeting, shareholders approved the adoption of the 2021 Equity Incentive Plan (“2021 Equity Plan”). The purpose of the 2021 Equity Plan is to grant (i) Non-statutory Stock Options; (ii) Incentive Stock Options; (iii) Restricted Stock Awards; and/or (iv) Stock Appreciation Rights (collectively, stock-based compensation) to its employees, directors and non-employees. Total stock awards under the 2021 Equity Plan shall not exceed 2 million shares of common stock. Options and Stock Appreciation Rights expire no later than ten years from the date of grant and the awards vest as determined by the Company's Board of Directors. Options and Stock Appreciation Rights have a strike price not less than 100% of the fair market value of the common stock subject to the option or right at the date of grant. As of July 31, 2024, approximately 1.3 million shares were available for issue under this plan. Stock Option Grants Black-Scholes assumptions used to calculate the fair value of options granted during the three months ended July 31, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Expected term in years 6 6 Risk-free interest rates 4.48% 3.95% Volatility 62.72% 62.83% Dividend yield —% —% The weighted average fair value of stock options granted during the three months ended July 31, 2024 and 2023 was $3.02 and $3.72, respectively. The Company’s stock options activity for the three months ended July 31, 2024 was a s follows: Directors Non- Total Weighted Weighted Aggregate Outstanding, April 30, 2024 1,883,166 36,331 1,919,497 $ 5.04 5.2 $ 2,172,000 Granted 1,000 — 1,000 4.90 9.8 Exercised — — — — Forfeited — — — — Canceled (500) — (500) 6.11 Expired — — — — Outstanding, July 31, 2024 1,883,666 36,331 1,919,997 5.04 5.0 $ 2,125,000 Vested and expected to vest as of July 31, 2024 1,883,666 36,331 1,919,997 5.04 5.0 $ 2,125,000 Exercisable as of July 31, 2024 1,551,829 3,750 1,555,579 4.74 4.1 $ 2,125,000 Share Repurchase Program On March 29, 2023, the Board of Directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $5.0 million of the Company’s common stock. The share repurchase program is designed in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The shares may be purchased from time to time in the open market, as permitted under applicable rules and regulations, at prevailing market prices. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The program does not obligate the Company to acquire a minimum number of shares. As of July 31, 2024, the Company had purchased 120,333 shares of its common stock, at an average price of $5.73 per share, totaling approximately $708,000 and leaving an available balance of approximately $4.3 million authorized by the Board for use in the program as of that date. |
Leases
Leases | 3 Months Ended |
Jul. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company accounts for its leases under FASB ASC Topic 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if applicable, or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Lease liabilities are increased by interest and reduced by payments each period, and the right-of-use asset is amortized over the lease term. For operating leases, interest on the lease liability and the amortization of the right-of-use asset result in straight-line rent expense over the lease term. Operating Leases The Company currently leases certain office equipment and its office and laboratory facilities under non-cancelable operating leases. Rent expense for operating leases is recognized on a straight-line basis over the lease term from the lease commencement date through the scheduled expiration date. Rent expense totaled $454,000 for the three months ended July 31, 2024 and 2023. The Company considers its facilities adequate for its current operational needs. The Company leases the following facilities: • One University Plaza, Suite 307, Hackensack, New Jersey 07601, which, since November 2011, serves as the Company’s corporate headquarters. The lease expires in November 2026. The Company recognized $19,000 of rent expense relative to this lease for both the three months ended July 31, 2024 and 2023. • 1330 Piccard Drive Suite 025, Rockville, MD 20850, which consists of laboratory and office space where the Company conducts operations related to its primary service offerings. The Company executed the original lease in January 2017. The lease was amended to expand the premises and extend the expiration date in March 2020 and again in December 2020. The operating commencement date was August 11, 2017. This lease expires in February 2029. The Company recognized $422,000 and $423,000 of rent expense relative to this lease for both the three months ended July 31, 2024 and 2023, respectively. • VIA LEONE XIII, 14, Milan, Italy, which consists of laboratory and office space where the Company conducts operations related to its flow cytometry service offerings. The Company executed separate leases for its laboratory space and office space during fiscal 2022. During fiscal 2023, the Company executed a new lease to consolidate its office and laboratory space at a new nearby location in Italy. The lease expires October 31, 2028 and it replaces the previous two leases, which were terminated during fiscal year 2023. The Company recognized $13,000 of rent expense relative to its current lease for both the three months ended July 31, 2024 and 2023. ROU assets and lease liabilities related to our current operating leases are as follows (in thousands): July 31, 2024 April 30, 2024 Operating lease right-of-use assets, net $ 5,963 $ 6,252 Current portion of operating lease liabilities 1,369 1,337 Non-current portion of operating lease liabilities 5,738 6,093 As of July 31, 2024, the weighted average remaining operating lease term and the weighted average discount rate were 4.49 years and 5.88%, respectively. As of July 31, 2023, the weighted average remaining operating lease term and the weighted average discount rate were 5.47 years and 5.87%, respectively. Future minimum lease payments due each fiscal year as follows (in thousands): 2025 (remaining) $ 2,180 2026 2,950 2027 2,916 2028 2,867 2029 2,392 Thereafter — Total undiscounted liabilities 13,305 Less: Imputed interest (6,198) Present value of minimum lease payments $ 7,107 The composition of total lease cost for three months ended July 31, 2024 and 2023 were as follows (in thousands): Three Months Ended July 31, 2024 2023 Operating lease costs $ 429 $ 416 Financing lease costs: Amortization of leased assets 37 36 Interest on lease liabilities 3 4 Total lease costs $ 469 $ 456 Refer to Note 5, Property and Equipment, for information on financing leases. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Jul. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Related party transactions include transactions between the Company and its shareholders, management, or affiliates. The following transactions were in the normal course of operations and were measured and recorded at the exchange amount, which is the amount of consideration established and agreed to by the parties. Consulting Services During both the three months ended July 31, 2024 and 2023, the Company paid an affiliate of a Board member $9,000 for consulting services unrelated to his duty as a Board member. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters The Company is not currently party to any legal matters to its knowledge. The Company is not aware of any other matters that would have a material impact on the Company’s financial position or results of operations. Registration Payment Arrangements The Company has entered into an Amended and Restated Registration Rights Agreement in connection with the March 2015 private placement. This Amended and Restated Registration Rights Agreement contains provisions that may call for the Company to pay penalties in certain circumstances. This registration payment arrangement primarily relates to the Company’s ability to file a registration statement within a particular time period, have a registration statement declared effective within a particular time period and to maintain the effectiveness of the registration statement for a particular time period. The Company has not accrued any liquidated damages associated with the Amended and Restated Registration Right Agreement as the Company has filed the required registration statement and anticipates continued compliance with the agreement. Royalties |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to common stockholders | $ 1,313 | $ (2,566) | $ (7,300) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 31, 2024 | |
Accounting Policies [Abstract] | |
Earnings Per Share | Earnings Per Share |
Income Taxes | Income Taxes Deferred income taxes have been provided to show the effect of temporary differences between the recognition of expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities, and their reported amounts in the consolidated financial statements. In assessing the realizability of deferred tax assets, the Company assesses the likelihood that deferred tax assets will be recovered through tax planning strategies or from future taxable income, and to the extent that recovery is not likely or there is insufficient earnings history, a valuation allowance is established. The Company's ability to utilize net operating losses (“NOL”) carryforwards to offset future taxable income would be limited if the Company had undergone or were to undergo an “ownership change” within the meaning of Section 382 of the Internal Revenue Code (the “IRC”). The Company adjusts the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Changes in valuation allowances from period to period are included in the tax provision in the period of change. As of July 31, 2024 and April 30, 2024, the Company provided a valuation allowance for all net deferred tax assets as it is more likely than not that the assets will not be recovered based on an insufficient history of earnings. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC") 606 ("ASC 606"), Revenue from Contracts with Customers. Under this standard, companies recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. All revenue is generated from contracts with customers. The Company's arrangements are service type contracts that mainly have a duration of less than a year. The Company recognizes revenue when control of these services is transferred to the customer in an amount, referred to as the transaction price, that reflects the consideration to which the Company is expected to be entitled in exchange for those services. The Company determines revenue recognition utilizing the following five steps: (1) identification of the contract with a customer, (2) identification of the performance obligations in the contract (promised goods or services that are distinct), (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations, and (5) recognition of revenue when, or as, the Company transfers control of the product or service for each performance obligation. The Company records revenues net of any tax assessments by governmental authorities, such as value added taxes, that are imposed on and concurrent with specific revenue generating transactions. The majority of the Company's revenue arrangements are service contracts that are completed within a year or less. There are a few contracts that range in duration between 1 and 3 years. Substantially all of the Company's performance obligations, and associated revenue, are transferred to the customer over time. Most of the Company's contracts can be terminated by the customer without cause. In the event of termination, the Company's contracts provide that the customer pay the Company for services rendered through the termination date. The Company generally receives compensation based on a predetermined invoicing schedule relating to specific milestones for that contract. Amendments to contracts are common. The Company evaluates each amendment which meets the criteria of a contract modification under ASC 606. Each modification is further evaluated to determine whether the contract modification should be accounted for as a separate contract or as a continuation of the original agreement. The Company accounts for amendments as a separate contract as they meet the criteria under ASC 606-10-25-12. Pharmacology Study and Other Services The Company generally enters into contracts with customers to provide oncology services with payments based on fixed-fee arrangements. At contract inception, the Company assesses the services promised in the contracts with customers to identify the performance obligations in the arrangement. The Company's fixed-fee arrangements for oncology services are considered a single performance obligation because the Company provides a highly-integrated service. The Company recognizes revenue over time using a progress-based input method since there is no single output measure that would fairly depict the transfer of control over the life of the performance obligation. Revenue is recognized for the single performance obligation over time due to the Company's right to payment for work performed to date and the performance does not create an asset with an alternative use. The Company recognizes revenue as portions of the overall performance obligation are completed as this best depicts the progress of the performance obligation. Incremental Costs of Obtaining a Contract (Sales Commissions) Under ASC 606, the costs of obtaining a contract can be expensed immediately, rather than capitalized and amortized, if the amortization period is one year or shorter. Sales commissions for the Company represent contract costs with a term of one year or less. Therefore, under ASC 606, the Company elected the practical expedient to expense these costs as incurred. Variable Consideration In some cases, contracts provide for variable consideration that is contingent upon the occurrence of uncertain future events, such as the success of the initial performance obligation. Variable consideration is estimated at the expected value or at the most likely amount depending on the type of consideration. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimate of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of its anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. Trade Receivables, Unbilled Services and Deferred Revenue In general, billings and payments are established by contractual provisions including predetermined payment schedules, which may or may not correspond to the timing of the transfer of control of the Company's services under the contract. In general, the Company's intention in its invoicing (payment terms) is to maintain cash neutrality over the life of the contract. Upfront payments, when they occur, are intended to cover certain expenses the Company incurs at the beginning of the contract. Neither the Company nor its customers view such upfront payments and contracted payment schedules as a means of financing. Unbilled services primarily arise when the revenue recognized exceeds the amount billed to the customer. Such situations occur due to divergences between revenue recognition and the invoicing milestones which are based on predetermined payment terms. Unbilled services are classified as a component of accounts receivable on the balance sheet. Deferred revenue consists of unearned payments received in excess of revenue recognized. As the contracted services are subsequently performed and the associated revenue is recognized, the deferred revenue balance is reduced by the amount of the revenue recognized during the period. Deferred revenue is classified as a current liability on the condensed consolidated balance sheet as the Company expects to recognize the associated revenue in less than one year. |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, “Segment Reporting” (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The ASU is effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on its financial statements and related disclosures, which is not expected to be material. |
Leases | The Company accounts for its leases under FASB ASC Topic 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded on the consolidated balance sheet as both a right-of-use ("ROU") asset and lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease, if applicable, or the Company’s incremental borrowing rate. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the lease commencement |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of the calculation of earnings (loss) per share, basic and diluted | The following table reflects these calculations. Note, as of July 31, 2023, all of the Company's potential common stock was considered anti-dilutive. Three Months Ended (Dollars in Thousands) 2024 2023 Basic net income (loss) per share computation: Net income (loss) attributable to common stockholders $ 1,313 $ (2,566) Weighted Average common shares – basic 13,593,766 13,506,782 Basic net income (loss) per share $ 0.10 $ (0.19) Diluted net income (loss) per share computation: Net income (loss) attributable to common stockholders $ 1,313 $ (2,566) Weighted Average common shares 13,593,766 13,506,782 Incremental shares from assumed exercise of stock options 448,613 — Adjusted weighted average share – diluted 14,042,379 13,506,782 Diluted net income (loss) per share $ 0.09 $ (0.19) |
Summary of antidilutive securities excluded from earnings per share calculations | The following table reflects the total potential share-based instruments outstanding at July 31, 2024 and 2023 including those that could have an effect on the future computation of dilution per common share, had their effect not been anti-dilutive due to the Company's net losses in the related periods: July 31, 2024 2023 Total common stock equivalents 1,131,624 1,766,752 |
Accounts Receivable, Unbilled_2
Accounts Receivable, Unbilled Services and Deferred Revenue (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Receivables [Abstract] | |
Summary of accounts receivable, unbilled services, and advanced billings | Accounts receivable and unbilled services were as follows (in thousands) July 31, 2024 April 30, 2024 May 1, 2023 Accounts receivable $ 4,722 $ 4,886 $ 3,843 Unbilled services 5,540 5,941 4,993 Total accounts receivable and unbilled services 10,262 10,827 8,836 Less: Allowances for credit losses and bad debt (1,230) (1,301) (825) Total accounts receivable, net $ 9,032 $ 9,526 $ 8,011 |
Accounts receivable, allowance for credit loss | Allowances for credit losses and bad debt were as follows: Beginning balance April 30, 2024 $ 1,301 Plus: Provision for credit losses and bad debt — Less: Reversals for amounts subsequently collected (71) Less: Write offs — Ending balance July 31, 2024 $ 1,230 |
Summary of advanced billings | Deferred revenue was as follows (in thousands): July 31, 2024 April 30, 2024 May 1, 2023 Deferred revenue $ 10,312 $ 12,094 $ 12,776 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of disaggregation of revenue | The following table represents disaggregated revenue for the three months ended July 31, 2024 and 2023: Three Months Ended 2024 2023 Pharmacology services $ 13,069 $ 11,860 Other TOS revenue 992 684 Personalized oncology services — 17 Total oncology services revenue $ 14,061 $ 12,561 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment consisted of the following (table in thousands): July 31, April 30, Furniture and fixtures $ 246 $ 246 Computer equipment and software 2,152 2,152 Capitalized software development costs 1,888 1,888 Laboratory equipment 11,506 11,506 Assets in progress 3 3 Leasehold improvements 317 317 Total property and equipment 16,112 16,112 Less: Accumulated depreciation and amortization (10,840) (10,391) Property and equipment, net $ 5,272 $ 5,721 |
Summary of assets and liabilities | Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands): July 31, 2024 April 30, 2024 Financing lease net asset $ 333 $ 370 Current portion of financing lease liabilities 151 150 Non-current portion of financing lease liabilities 182 220 July 31, 2024 April 30, 2024 Operating lease right-of-use assets, net $ 5,963 $ 6,252 Current portion of operating lease liabilities 1,369 1,337 Non-current portion of operating lease liabilities 5,738 6,093 |
Finance lease, liability, to be paid, maturity | Future minimum lease payments due each fiscal year as follows (in thousands): 2025 (remaining) $ 120 2026 140 2027 80 2028 6 Thereafter — Total undiscounted liabilities 346 Less: Imputed interest (13) Present value of minimum lease payments $ 333 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of allocation of share based compensation expense | Stock-based compensation expense was recognized as follows (table in thousands): Three Months Ended 2024 2023 General and administrative $ 185 $ 184 Sales and marketing 40 66 Research and development 4 11 Cost of oncology services 29 162 Total stock-based compensation expense $ 258 $ 423 |
Summary of valuation assumptions for stock options | Black-Scholes assumptions used to calculate the fair value of options granted during the three months ended July 31, 2024 and 2023 were as follows: Three Months Ended 2024 2023 Expected term in years 6 6 Risk-free interest rates 4.48% 3.95% Volatility 62.72% 62.83% Dividend yield —% —% |
Summary of stock option activity | The Company’s stock options activity for the three months ended July 31, 2024 was a s follows: Directors Non- Total Weighted Weighted Aggregate Outstanding, April 30, 2024 1,883,166 36,331 1,919,497 $ 5.04 5.2 $ 2,172,000 Granted 1,000 — 1,000 4.90 9.8 Exercised — — — — Forfeited — — — — Canceled (500) — (500) 6.11 Expired — — — — Outstanding, July 31, 2024 1,883,666 36,331 1,919,997 5.04 5.0 $ 2,125,000 Vested and expected to vest as of July 31, 2024 1,883,666 36,331 1,919,997 5.04 5.0 $ 2,125,000 Exercisable as of July 31, 2024 1,551,829 3,750 1,555,579 4.74 4.1 $ 2,125,000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 31, 2024 | |
Leases [Abstract] | |
Summary of assets and liabilities | Financing lease assets (lab equipment) and lease liabilities related to our current financing leases are as follows (in thousands): July 31, 2024 April 30, 2024 Financing lease net asset $ 333 $ 370 Current portion of financing lease liabilities 151 150 Non-current portion of financing lease liabilities 182 220 July 31, 2024 April 30, 2024 Operating lease right-of-use assets, net $ 5,963 $ 6,252 Current portion of operating lease liabilities 1,369 1,337 Non-current portion of operating lease liabilities 5,738 6,093 |
Schedule of future operating lease payments | Future minimum lease payments due each fiscal year as follows (in thousands): 2025 (remaining) $ 2,180 2026 2,950 2027 2,916 2028 2,867 2029 2,392 Thereafter — Total undiscounted liabilities 13,305 Less: Imputed interest (6,198) Present value of minimum lease payments $ 7,107 |
Summary of lease cost | The composition of total lease cost for three months ended July 31, 2024 and 2023 were as follows (in thousands): Three Months Ended July 31, 2024 2023 Operating lease costs $ 429 $ 416 Financing lease costs: Amortization of leased assets 37 36 Interest on lease liabilities 3 4 Total lease costs $ 469 $ 456 |
Organization, Use of Estimate_2
Organization, Use of Estimates and Basis of Presentation (Details) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 USD ($) segment subsidiary | Jul. 31, 2023 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of operating subsidiaries | subsidiary | 4 | |
Number of reportable segments | segment | 1 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 14,061 | $ 12,561 |
Operating Subsidiaries | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 0 | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | |
Accounting Policies [Abstract] | |||
Net income (loss) | $ 1,313,000 | $ (2,566,000) | $ (7,300,000) |
Net cash (used in) provided by operating activities | 311,000 | (3,991,000) | (6,100,000) |
Working capital deficit | 6,000,000 | ||
Accumulated deficit | 83,280,000 | 84,593,000 | |
Unrecognized tax benefits | 181,000 | $ 181,000 | |
Income tax penalties and interest expense | 0 | 0 | |
Unrecognized tax benefits anticipated during the next 12 months | 0 | ||
Provision for income taxes | $ 21,000 | $ 28,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2024 | |
Basic net income (loss) per share computation: | |||
Net income (loss) attributable to common stockholders | $ 1,313 | $ (2,566) | $ (7,300) |
Weighted Average common shares - basic (in shares) | 13,593,766 | 13,506,782 | |
Basic net income (loss) per share (in dollars per share) | $ 0.10 | $ (0.19) | |
Diluted net income (loss) per share computation: | |||
Net income (loss) attributable to common stockholders | $ 1,313 | $ (2,566) | |
Weighted Average common shares (in shares) | 13,593,766 | 13,506,782 | |
Incremental shares from assumed exercise of stock options (in shares) | 448,613 | 0 | |
Adjusted weighted average share - diluted (in shares) | 14,042,379 | 13,506,782 | |
Diluted net income (loss) per share (in dollars per share) | $ 0.09 | $ (0.19) |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Potentially Antidilutive Securities (Details) - shares | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Accounting Policies [Abstract] | ||
Total common stock equivalents (in shares) | 1,131,624 | 1,766,752 |
Summary of Significant Accounti
Summary of Significant Accounting Policies - Revenue Recognition (Details) - Few Contracts - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-02-01 | Jul. 31, 2024 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue arrangements by service contract period | 1 year |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue arrangements by service contract period | 3 years |
Accounts Receivable, Unbilled_3
Accounts Receivable, Unbilled Services and Deferred Revenue - Summary of Accounts Receivable and Unbilled Services (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 | Apr. 30, 2023 |
Receivables [Abstract] | |||
Accounts receivable | $ 4,722 | $ 4,886 | $ 3,843 |
Unbilled services | 5,540 | 5,941 | 4,993 |
Total accounts receivable and unbilled services | 10,262 | 10,827 | 8,836 |
Less: Allowances for credit losses and bad debt | (1,230) | (1,301) | (825) |
Total accounts receivable, net | $ 9,032 | $ 9,526 | $ 8,011 |
Accounts Receivable, Unbilled_4
Accounts Receivable, Unbilled Services and Deferred Revenue - Allowance for Credit Loss Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Accounts receivable, allowance for credit loss, beginning balance | $ 1,301 | $ 825 |
Plus: Provision for credit losses and bad debt | 0 | |
Less: Reversals for amounts subsequently collected | (71) | $ 162 |
Less: Write offs | 0 | |
Accounts receivable, allowance for credit loss, ending balance | $ 1,230 |
Accounts Receivable, Unbilled_5
Accounts Receivable, Unbilled Services and Deferred Revenue - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 | Apr. 30, 2023 |
Receivables [Abstract] | |||
Deferred revenue | $ 10,312 | $ 12,094 | $ 12,776 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Oncology services revenue | $ 14,061 | $ 12,561 |
Pharmacology services | ||
Disaggregation of Revenue [Line Items] | ||
Oncology services revenue | 13,069 | 11,860 |
Other TOS revenue | ||
Disaggregation of Revenue [Line Items] | ||
Oncology services revenue | 992 | 684 |
Personalized oncology services | ||
Disaggregation of Revenue [Line Items] | ||
Oncology services revenue | $ 0 | $ 17 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2024 | Jul. 31, 2023 | Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2024 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization | $ 449,000 | $ 445,000 | |||
Depreciation and amortization, excluding finance leases | 412,000 | 409,000 | |||
Finance lease, asset, gross | 1,000,000 | $ 1,000,000 | |||
Finance lease, depreciation and amortization | 37,000 | 36,000 | |||
Amortization of leased assets | $ 37,000 | 36,000 | |||
Finance lease, weighted average remaining lease term | 2 years 4 months 9 days | ||||
2023 Finance Lease | |||||
Property, Plant and Equipment [Line Items] | |||||
Finance lease costs | $ 368,000 | $ 368,000 | |||
Present value of minimum future obligations interest rate | 3.50% | ||||
Amortization of leased assets | $ 18,000 | 17,400 | |||
2022 Finance Lease | |||||
Property, Plant and Equipment [Line Items] | |||||
Finance lease costs | $ 370,000 | $ 370,000 | |||
Present value of minimum future obligations interest rate | 3.25% | ||||
Amortization of leased assets | $ 19,000 | $ 18,400 | |||
Capitalized software development costs | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives | 3 years | ||||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives | 3 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful lives | 9 years |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 16,112 | $ 16,112 |
Less: Accumulated depreciation and amortization | (10,840) | (10,391) |
Property and equipment, net | $ 5,272 | $ 5,721 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 246 | $ 246 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,152 | 2,152 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,888 | 1,888 |
Laboratory equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,506 | 11,506 |
Assets in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3 | 3 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 317 | $ 317 |
Property and Equipment - Financ
Property and Equipment - Finance Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Property, Plant and Equipment [Abstract] | ||
Financing lease net asset | $ 333 | $ 370 |
Current portion of finance lease | 151 | 150 |
Non-current portion of financing lease liabilities | $ 182 | $ 220 |
Property and Equipment - Fina_2
Property and Equipment - Finance Lease Future Minimum Lease Payments (Details) $ in Thousands | Jul. 31, 2024 USD ($) |
Property, Plant and Equipment [Abstract] | |
2025 (remaining) | $ 120 |
2026 | 140 |
2027 | 80 |
2028 | 6 |
Thereafter | 0 |
Total undiscounted liabilities | 346 |
Less: Imputed interest | (13) |
Present value of minimum lease payments | $ 333 |
Share-Based Payments - Allocati
Share-Based Payments - Allocation of Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 258 | $ 423 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 185 | 184 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 40 | 66 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4 | 11 |
Cost of oncology services | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 29 | $ 162 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Jul. 31, 2024 | Jul. 31, 2023 | Mar. 29, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value (in dollars per share) | $ 3.02 | $ 3.72 | |
Share repurchase program, authorized amount | $ 5,000 | ||
Treasury stock (in shares) | 120,333 | ||
Treasury stock average price (in dollars per share) | $ 5.73 | ||
Treasury stock approximate value | $ 708 | ||
Remaining repurchase amount | $ 4,300 | ||
Equity Incentive Plan 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 1,300,000 | ||
Expiration term of awards | 10 years | ||
Strike price as percent of market value | 100% | ||
Equity Incentive Plan 2021 | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 2,000,000 |
Share-Based Payments - Valuatio
Share-Based Payments - Valuation Assumptions for Stock Options (Details) | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Expected term (in years) | 6 years | 6 years |
Risk free interest rate (in percent) | 4.48% | 3.95% |
Volatility (in percent) | 62.72% | 62.83% |
Dividend yield | 0% | 0% |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jul. 31, 2024 | Oct. 31, 2023 | Apr. 30, 2024 | |
Total | |||
Outstanding, beginning balance (in shares) | 1,919,497 | ||
Granted (in shares) | 1,000 | ||
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Canceled (in shares) | (500) | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 1,919,997 | ||
Vested and expected to vest (in shares) | 1,919,997 | ||
Exercisable (in shares) | 1,555,579 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 5.04 | ||
Granted (in dollars per share) | 4.90 | ||
Exercised (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Canceled (in dollars per share) | 6.11 | ||
Expired (in dollars per share) | 0 | ||
Outstanding, ending balance (in dollars per share) | 5.04 | ||
Vested and expected to vest (in dollars per share) | 5.04 | ||
Exercisable (in dollars per share) | $ 4.74 | ||
Weighted Average Remaining Contractual Life (Years) | |||
Outstanding (in years) | 5 years | 5 years 2 months 12 days | |
Outstanding, granted (in years) | 9 years 9 months 18 days | ||
Vested and expected to vest (in years) | 5 years | ||
Exercisable (in years) | 4 years 1 month 6 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 2,125 | $ 2,172 | |
Vested and expected to vest | 2,125 | ||
Exercisable | $ 2,125 | ||
Directors and Employees | |||
Total | |||
Outstanding, beginning balance (in shares) | 1,883,166 | ||
Granted (in shares) | 1,000 | ||
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Canceled (in shares) | (500) | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 1,883,666 | ||
Vested and expected to vest (in shares) | 1,883,666 | ||
Exercisable (in shares) | 1,551,829 | ||
Non- Employees | |||
Total | |||
Outstanding, beginning balance (in shares) | 36,331 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Canceled (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 36,331 | ||
Vested and expected to vest (in shares) | 36,331 | ||
Exercisable (in shares) | 3,750 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Operating leases, rent expense | $ 454 | $ 454 |
Weighted average remaining lease term (in years) | 4 years 5 months 26 days | 5 years 5 months 19 days |
Weighted average discount rate, percent | 5.88% | 5.87% |
Corporate Headquarters | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, rent expense | $ 19 | $ 19 |
Rockville, MD | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, rent expense | 422 | 423 |
Milan Italy | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases, rent expense | $ 13 | $ 13 |
Leases - ROU Assets and Lease L
Leases - ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jul. 31, 2024 | Apr. 30, 2024 |
Leases [Abstract] | ||
Operating lease right-of-use assets, net | $ 5,963 | $ 6,252 |
Current portion of operating lease liabilities | 1,369 | 1,337 |
Non-current portion of operating lease liabilities | $ 5,738 | $ 6,093 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jul. 31, 2024 USD ($) |
Future minimum lease payments due each fiscal year as follows | |
2025 (remaining) | $ 2,180 |
2026 | 2,950 |
2027 | 2,916 |
2028 | 2,867 |
2029 | 2,392 |
Thereafter | 0 |
Total undiscounted liabilities | 13,305 |
Less: Imputed interest | (6,198) |
Present value of minimum lease payments | $ 7,107 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Leases [Abstract] | ||
Operating lease costs | $ 429 | $ 416 |
Financing lease costs: | ||
Amortization of leased assets | 37 | 36 |
Interest on lease liabilities | 3 | 4 |
Total lease costs | $ 469 | $ 456 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Related Party | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 0 | |
Board Member | Board Member One | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 9 | $ 9 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) | 3 Months Ended | |
Jul. 31, 2024 | Jul. 31, 2023 | |
Commitments and Contingencies [Line Items] | ||
Royalty expense | $ 81,000 | $ 73,000 |
Minimum | ||
Commitments and Contingencies [Line Items] | ||
Royalty fee per tumor sample | $ 0 | |
Royalty payment, as percent of contract price | 2% | |
Maximum | ||
Commitments and Contingencies [Line Items] | ||
Royalty fee per tumor sample | $ 30,000 | |
Royalty payment, as percent of contract price | 20% |